Vatican closes London property sale at a loss after scandal

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Vatican closes London property sale at a loss after scandal
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The Vatican said Friday it had finalized the sale of a London property that is the focus of a criminal trial in the Vatican courts, offloading the former Harrods warehouse for 186 million pounds (215 million euros, US$223 million).

The Vatican secretariat of state had poured some 350 million euros into the building and related fees and commissions paid to brokers -- losses that are at the heart of the accusations of fraud, embezzlement and extortion against 10 people on trial.

The scandal over the London property has convulsed the Vatican for three years and prompted Pope Francis to strip the secretariat of state of its 600-million-euro asset portfolio, which had essentially operated as a sovereign wealth fund not answerable to rigorous internal or external controls. Perlasca had initially been the leading suspect in the investigation, but flipped and began cooperating with prosecutors. He is now a leading witness for the prosecution and was granted the status of an injured party in the case, able to recover damages in the event of convictions.

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