The Vatican has initiated an investigation regarding claims that the Eastern Catholic bishop of San Diego, California, was involved in embezzlement and frequently traveled to a brothel in Tijuana. This was reported on February 19.
Bishop Emmanuel Shareta, a Chaldean Catholic member, has already submitted his resignation to the Vatican. Documents connected to the allegations were reviewed by Catholic Pillars.
At St. Peter Chaldean Cathedral in El Cajon, California, members of the Parish Finance Council noticed unusual banking patterns that raised suspicions of potential embezzlement. Reports suggest that in November 2024, it was found that funds from a social hall rental, typically around $33,990 monthly, were being moved from the diocese’s accounts, in addition to donations intended for the needy. Normally, these funds should’ve come from an outside management firm.
Bishop Emmanuel Hana Shareta is accused of misappropriating hundreds of thousands of dollars from diocese and charitable funds meant for the poor. Checks totaling at least $427,345 have been linked to him.
— Amy Reichert (@amyforsandiego) February 23, 2026
When questioned, Shareta allegedly claimed he asked for cash payments to personally help the needy, suggesting these were refunds for rent. However, reports indicate he lacked any supporting documentation and couldn’t explain why he hadn’t received the funds from a charity-designated account.
Finance committee members reportedly identified that eight months’ worth of rent checks came from the financial aid account and were supposedly signed by Shareta.
Estimates indicate that between $427,345 and $1 million may have been embezzled. Shareta is also said to have used a “redemption” method, collecting $30,000 in cash from parishioners for registering deceased family members for mass.
The possible fraud was reported to Cardinal Christophe Pierre and the local Sheriff’s Department in 2025, according to sources close to the Vatican. A forensic accountant was sent to examine Shareta’s financial dealings before deciding on legal action.
The Vatican has also opened an investigation into claims of sexual misconduct. Reports allege that Shareta frequently crossed the border into Tijuana for visits to well-known strip clubs associated with prostitution.
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A private investigator claimed Shareta made many late-night trips each month and continued these visits “several times a week” even after inquiries were made. Investigative reports indicated that Shareta was seen moving from a discreet parking area to a club that human rights advocates describe as a location where trafficked individuals are exploited.
Investigators remarked that Shareta’s conduct has raised numerous red flags, considering his position. Furthermore, there were claims he’d been seen at the residence of a former female colleague.
As of the time of reporting, the Vatican had yet to accept Shareta’s resignation. Both St. Peter’s Chaldean Cathedral and the local Sheriff’s Department did not respond to requests for comments.
