Fresno diocese bankruptcy could include parish building funds, pastor warns

Catholic parishes across the Diocese of Fresno stand to lose most or all of the money parishioners raised in yearslong capital campaigns, after the diocese's Chapter 11 bankruptcy proceeding upended earlier assurances that project funds would be protected.

Monsignor Perry Kavookjian, pastor of St. Elizabeth Ann Seton Catholic Church in Bakersfield, told his congregation Aug. 16 that a legal update last month contradicted the diocese's prior promise that money earmarked for construction would be shielded from creditors if deposited into a shared diocesan fund. 

According to a livestream recording reported by 23ABC, Monsignor Kavookjian said, “When the diocese first filed for bankruptcy, we were assured that parish monies would remain untouched, especially those funds earmarked for our building project. Last month, all the clergy met with our attorneys who told us that parish funds on deposit with the diocese were not protected.”

His parish alone stands to lose $9.5 million raised toward a new building, he said, adding that he was especially concerned for poorer parishes such as Our Lady of Guadalupe, which has spent years fundraising for its new church.

Zeale News reached out to the Diocese of Fresno for comment on Monsignor Kavookjian’s remarks but received no response.

“Even though parishes deposited funds with the diocese indicating that they were earmarked for certain purposes, the diocese apparently did not take adequate measures to separate these dedicated funds from the general fund,” Monsignor Kavookjian said.

Diocese spokesman Chandler Marquez said in an email to The Bakersfield Californian that the situation “is a matter of significant importance involving several members of our internal team” but declined to elaborate. Another diocesan spokesperson gave a similarly narrow explanation to local television station 23ABC, saying the diocese does not comment on pending litigation.

Monsignor Kavookjian told The Bakersfield Californian that he wrote to Bishop Joseph V. Brennan to express disappointment over a lack of transparency in how the diocese handles parish funds, warning the episode could drive parishioners away or erode their trust in diocesan leadership. Brennan responded “graciously,” Monsignor Kavookjian said, telling him he hoped each parish would be treated equitably and proportionately as the bankruptcy proceeds.

The diocese filed for Chapter 11 protection in July 2025 to address more than 150 clergy sexual abuse claims, many decades old, after a 2019 state law temporarily lifted California’s statute of limitations for such lawsuits. 

Monsignor Kavookjian said he has met with the parish’s financial council to try to protect its remaining funds, though he declined to detail what steps that might involve. Parishioners who donated to the building fund this month may contact the church office for a refund.