Contact: R. T. Neary, Chairman, Coalition To Save Catholic Health Care, 508-359-4551, RTNeary@Verizon.net 

MEDFIELD, Mass., Oct. 26, 2011 /Christian Newswire/ -- The question whether there was a breach of law in the transfer of the 6-hospital Caritas Christi Health Care System of The Archdiocese of Boston, to a new creation of controversial Cerberus Capital Management L.P. of New York, has been raised with the long-overdue release of the Caritas' FY2010 audit figures by Ernst and Young LLC.

"The audit shows that the figure presented to Supreme Court Justice Francis X. Spina at a formal hearing overstated by $97,000,000 the amount for the estimated unfunded pension liability now shown on page 16 of the Notes to Consolidated Financial Statements of the auditor" said R.T. Neary, Chairman of The Coalition To Save Catholic Care.

"Caritas claimed the $260,000,000 liability on October 21, 2010, while the Ernst and Young audit now estimates it to be $163,000,000 for the fiscal year ending Sept. 30, 2010. That is a major discrepancy and calls for investigation," Neary concluded. 

The Coalition To Save Catholic Health Care has voiced opposition to the negotiations throughout the Massachusetts government's approval process by pointing out many irregularities.  The Boston Globe and other media were echoing Caritas officials' statements and labeled Caritas in articles as being  "saddled with debt" and "struggling."

Bernard L. Madoff, the notorious Ponzi-schemer, once had a "feeder fund" as a part of Cerberus.  "This should have raised red flags across the entire horizon during the process," added Neary.

"The $16,787,000 operating profit for FY 2010 revealed in the audit by the reputable Ernst and Young firm is also in diametric opposition to Caritas' statements of being in severe financial difficulties," said John O'Gorman, the Coalition's Director of Research.  "These tales of woe were reiterated by Caritas officials throughout the approval process," he added.

Attorney General Martha Coakley, the Department of Public Health, and the Massachusetts Supreme Judicial Court all placed their official stamp of approval on the transaction before the transfer of Caritas Christi's assets to the new Cerberus entity in November 2010.