San Diego Catholic Bishop Accused Of Frequenting Tijuana's Hong Kong Gentlemen’s Club Arrested At Airport On Embezzlement And Money Laundering Charges

The head of one of the largest Eastern Catholic dioceses in the United States was arrested Thursday at San Diego International Airport while allegedly attempting to leave the country, marking a dramatic escalation in a widening scandal that has shaken San Diego’s Chaldean Catholic community.

Bishop Emanuel Hana Shaleta, the leader of the Chaldean Catholic Eparchy of St. Peter the Apostle of San Diego, was taken into custody on March 5 by deputies with the San Diego County Sheriff’s Fraud Unit as he prepared to board an international flight. Authorities say the arrest follows a months-long financial investigation involving alleged misuse of church funds, in a story. 

According to the Sheriff’s Office, Shaleta faces eight felony counts of embezzlement, eight counts of money laundering, and an enhancement for aggravated white-collar crime. He was booked into San Diego Central Jail and is being held on $125,000 bail, along with a hold under California Penal Code section 1275.1, which requires the court to verify that bail funds were not obtained through illicit means.

Investigators say the case began on August 19, 2025, when a representative from St. Peter Chaldean Catholic Church in El Cajon contacted authorities and provided documents suggesting potential financial misconduct involving parish funds. After an initial review, the case was transferred to the Sheriff’s Fraud Unit, which conducted a detailed investigation before making the arrest.

The arrest comes just weeks after reports surfaced, first brought to light locally right here at SanDiegoVille, alleging irregular financial activity connected to the church. According to investigative reporting by Catholic news outlet The Pillar, financial records suggested that hundreds of thousands of dollars in church revenue may have been diverted through a series of unusual transactions involving cash payments and reimbursements from accounts intended for charitable purposes.

Documents reviewed in that reporting indicated that rent payments from a tenant leasing a church-owned social hall were allegedly directed to be paid in cash to Shaleta personally rather than deposited into church accounts. The reporting alleged that the missing rental income was later replaced through checks drawn from a cathedral charity fund intended to support assistance for the poor.

The records reportedly showed at least eight months of such reimbursements totaling more than $427,000. Sources cited in the reporting suggested that when other questionable transactions are included, the total amount potentially involved could approach or exceed $1 million.

Shaleta has publicly denied any wrongdoing. During remarks at a Mass on February 22 at St. Peter’s Cathedral in El Cajon, the bishop told parishioners that he had never misused church funds and described the accusations as part of a coordinated campaign against him.

“I have never in my priestly life or episcopal life abused any of the Church money,” Shaleta said during the service, according to a video of the remarks. “On the contrary, I have done my best to preserve and manage the donations of the Church properly.”

The bishop told congregants that some of the funds in question had been given to him by donors with instructions to distribute money directly to people in need. He maintained that the money was used for charitable purposes and said critics within the church hierarchy had taken documents from parish files and reported them to the Vatican without his knowledge.

The arrest also follows a separate canonical investigation ordered by the Vatican last year after the financial allegations surfaced. The inquiry was overseen by Archbishop José Gomez of Los Angeles on behalf of the Dicastery for the Eastern Churches.

According to church reporting, Shaleta submitted a letter of resignation from his leadership position earlier this year, though the Vatican has not publicly announced whether the resignation has been accepted.

In addition to the financial allegations, Shaleta has also faced scrutiny over claims of personal misconduct included in investigative reports submitted to Vatican officials. A report prepared by a San Diego-based private investigator and former FBI agent alleged that the bishop had made repeated late-night crossings into Tijuana and was observed entering Hong Kong Gentlemen’s Club, a venue widely described in reporting as operating as a brothel near the U.S.–Mexico border.

The investigator reported observing Shaleta’s vehicle parked in a lot designated for patrons of the establishment and documented the bishop walking across the border and boarding transportation associated with the club. Shaleta has not publicly addressed those allegations directly.

The investigator’s report also referenced a longstanding personal relationship between Shaleta and a woman who previously served as a parish secretary when he was a pastor in Michigan. According to the report, the two share a joint bank account and have maintained close personal contact for years, including after Shaleta’s transfer to Canada and later to San Diego.

Other reports claim that investigators also documented frequent visits between the bishop and the woman’s residence, as well as her access to his home.

Born in 1956 in Fishkhabour, Iraq, Shaleta was ordained as a priest in 1984 and later served in the Chaldean Catholic Church in both the United States and Canada. In 2017, Pope Francis appointed him bishop of the Chaldean Catholic Eparchy of St. Peter the Apostle of San Diego, a jurisdiction that serves tens of thousands of Chaldean Catholics across 19 western states.

The San Diego-based diocese has long been an important spiritual and cultural hub for members of the Chaldean Catholic community, many of whom trace their roots to Iraq and other parts of the Middle East.

The arrest marks what appears to be an unprecedented moment for the U.S. Catholic Church. According to reporting by The Pillar, Shaleta may be the first sitting diocesan bishop in the United States to be arrested on felony charges related to financial crimes. Authorities have not disclosed the full scope of the alleged financial scheme or whether additional charges could follow as investigators continue reviewing financial records.

The case now moves into the criminal court system as prosecutors determine how to proceed with the charges. Anyone with information related to the investigation is encouraged to contact the San Diego County Sheriff’s Office at 858-285-6111. Anonymous tips may also be submitted through Crime Stoppers at 888-580-8477.

Originally published on March 5, 2026.