Cardinal Facing Possible Prison Sentence: Vatican's High-Stakes Trial

Recently, a multi-million-pound investment in a luxurious London property turned sour, a previously influential Vatican cardinal clandestinely recorded a conversation with the pope, and a female security consultant was accused of misusing church funds on high-end fashion brands. This scandalous saga, referred to as the Vaticans "trial of the century," uncovered a range of financial misconduct that has cost the Holy See millions of dollars.

The criminal trial in Vatican City has lasted two and a half years and involves 10 defendants, including a cardinal for the first time. Giovanni Angelo Becciu, a once powerful figure in the Vatican, is facing the possibility of prison time if convicted of embezzlement and abuse of office. The verdicts in the case are expected on Saturday, and any longer sentences would be served at an Italian prison, as the Vatican has limited prison facilities.

The cardinal has consistently refused to acknowledge the accusations against him. However, prior to the start of the trial, the pope relieved his previously trusted aide of his role as head of the Vatican's department for canonizing saints and revoked his voting rights in any future conclave.

The trial has been a crucial assessment for Pope Francis and his ongoing effort to promote transparency and accountability in the Vatican's renowned opaque finances. Throughout his time as pope, he has worked to reform the Vatican's bank, implement a financial oversight system, and clamp down on illicit payments and conflicts of interest.

Pope Francis and Cardinal Giovanni Angelo Becciu stand together during the canonization mass of two new saints in St. Peter's Square, Vatican City, on October 9, 2022.

The London investment

The Vatican's purchase of a large property in Chelsea, southwest London, came under scrutiny in a trial. Originally a car showroom for Harrods, the Holy See spent around $400 million over several years on the deal, only to incur losses of $150 million after selling the asset. Vatican prosecutors alleged that the church had been swindled out of millions by overpaying for the property, with middlemen reaping substantial profits and those in charge of the deal being negligent.

The Holy See initially allocated $200 million to a fund managed by Raffaele Mincione, a London-based Italian financier, who held a 45% stake in the Chelsea property. Cardinal Becciu, who was then chief of staff, approved the initial investment. The remaining half of the building was owned by Mincione.

From left, Cardinal Raymond Burke, Pope Francis and Bishop Joseph Strickland

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The original intention was to convert the building into apartments, but the Vatican was unhappy with the investment, which prosecutors claimed led to significant financial losses for the church. They allege that Mincione overvalued the building and that the Secretariat of State was unaware of a £75 million ($96 million) mortgage on the property. Beccius' successor, Edgar Peña Parra, opted to purchase the building outright but had to pay a substantial fee to Mincione.

Another financier, Gianluigi Torzi, was brought in to assist with the property purchase, but he is accused of arranging a deal that left him in control of the building and resulted in the Vatican essentially purchasing an "empty box." Senior Vatican officials claim they were not adequately informed about this arrangement and had to pay Torzi millions to extricate themselves from the deal. The Vatican has announced that the trial will begin in July 2021, and prosecutors have filed a 500-page indictment outlining the alleged crimes.

Both Torzi and Mincione are two of the ten defendants in the case, which was heard in a special room within the Vatican museums. Torzi faced charges of extortion, money laundering, fraud, and embezzlement, while Mincione was accused of embezzlement, abuse of office, fraud, and money laundering. Both individuals have denied the allegations against them. Additionally, Mincione has initiated legal action against the Holy See in the London courts.

Mincione stated to CNN that the case against him "lacks evidence" and that the Vatican "has failed to demonstrate that it purchased the property at an inflated price or incurred financial losses." He emphasized that independent reports from financial services firm PriceWaterhouseCoopers supported the property valuations and that the Vatican was aware of the Deutsche Bank loan on the building and of "alternative lower values." Mincione also argued that the Vatican's decision to acquire the property led to a premature halt in the building's planning permission. He asserted that his legal action against the Holy See in London aimed to "clear my name," expressing "100 percent confidence" in winning the case.

Despite regulators ruling in 2021 that the Holy See had made progress with its financial reforms, they emphasized the need to strengthen efforts in holding senior clerics accountable for wrongdoing. Subsequently, it was announced that the trial, which would involve a cardinal as one of the defendants for the first time, would proceed, making Becciu the first cardinal to face criminal charges in a Vatican court. To enable this, Francis had to amend the law to permit bishops and cardinals to stand trial in a Vatican tribunal, as they had previously been immune from prosecution.

Becciu, who was responsible for approving the initial investment in the London property deal using church funds, has also been accused of embezzling over €125,000 ($136,000) from a Sardinian charity run by his brother. Additionally, he is alleged to have authorized €575,000 ($618,000) in payments from the Secretariat of State to Cecilia Marogna, a "security consultant" who claimed to be helping free a kidnapped nun in Africa. Vatican prosecutors argued that this money was used for personal purposes by Marogna, including spending over $54,000 on clothing, footwear, and fashion accessories from luxury brands like Prada, Gucci, and Hermes.

Pope Francis attends mass for the Virgin Mary of Guadalupe inside Saint Peter's Basilica at the Vatican, Tuesday, Dec. 12, 2023.

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In her 40s, Marogna has earned the nickname "the cardinals lady" due to her connection to Becciu. Images taken by Marogna inside the cardinal's apartment were shared on social media with captions such as "feeling at home" and "my paradise." When Vatican police informed Becciu that the funds transferred to Marogna were not being used as intended, he asked them to keep it secret, fearing it would bring serious harm to him and his family. During an interrogation, one witness was asked by prosecutors whether Becciu and Marogna had an intimate relationship, to which he denied. Both Becciu and Marogna have denied any improper relationship.

Marogna has denied any wrongdoing, stating that she used the Vatican funds for herself, her team, travel, and living expenses. She emphasized that she had established a "network of relationships in Africa and the Middle East" to assist Vatican diplomats and missionaries.

During the trial, the court was informed about a phone call Becciu had secretly recorded with the pope, in which he sought confirmation from the pontiff that Francis had approved payments to release the kidnapped nun. According to a transcript, the pope mentioned vaguely recalling a conversation about payments but repeatedly asked Becciu to clarify in writing what he wanted.

Continuing Efforts to Reform

The pope's ongoing effort to reform Vatican finances has highlighted the issue of appointing clerics without professional financial training to oversee large financial portfolios. Following the investigation of London property, Francis directed that the funds controlled by the Holy See's Secretariat of State be handled by a different Vatican entity, with experienced accountant Fabio Gasperini overseeing daily operations. In 2019, it was estimated that the Holy See's Secretariat of State managed assets of around $1 billion.

The recent development has evoked recollections of Roberto Calvi, who was the chairman of Banco Ambrosiano when it collapsed in 1982. The Vatican bank was the primary shareholder at the time.

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The Holy See holds a vast property portfolio in various cities, including Rome, Paris, and London, which originated from compensation received from Italy for the loss of the papal states, regions of Italy under papal rule until the 19th century. This was established in the 1929 Lateran Treaty, in which the Italian authorities acknowledged Vatican City as a sovereign entity. Most of the Vatican's properties are located in Rome and are used to accommodate church employees. The Vatican is mainly funded through donations from Catholics worldwide and revenue generated from tourists visiting the Sistine Chapel and Vatican museums.

During the Francis papacy, the Vatican started releasing annual financial reports, which have recently shown a deficit in income. Meanwhile, the Pope has been working to consolidate investments for greater transparency. The 2019 London property investment deal raised suspicion from the Vatican's internal monitoring system, leading to an investigation and subsequently a trial.

Vatican finances have historically been a source of scandal, and this case has evoked memories of Roberto Calvi, also known as "God's banker," who was found dead under Blackfriars Bridge in London in 1982. Calvi was the chairman of Banco Ambrosiano at the time of its collapse, and the Vatican bank was its main shareholder.

In 2019, the Pope condemned the London investment deal as a "scandal." This week, he emphasized to Vatican auditors the need for extreme vigilance against the peril of corruption.

Francis has taken numerous measures to address the Vatican's finances, but the trial highlights the ongoing challenges. The Pope has frequently cautioned that "the devil enters through the pockets."