investors charge New Orleans archdiocese with 'securities fraud' (Guardian)

Investors who purchased bonds from the New Orleans archdiocese are charging that the archdiocese engaged in “securities fraud” by promising that the bonds would be paid in full. The archdiocese has now acknowledged that it will default on interest payments on the bonds sold in 2017.

In arguments before a federal bankruptcy court, which is weighing the archdiocesan plans, lawyers for the archdiocese said that the accusations of fraud were “an extreme stretch that really has no basis.”