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WORKS FOR RELIGIOUS Atlomeyfor INST1TUTE

UNITED STATESDISTRICTCOURT OF DISTRICT CAI-IFORNIA NORTHERN

CaseNo. C 99-4941MMC DECTARATION OF AWOCATO

EMIL ALPEzuN'CtAI, Plaintiffs' vs. OF VATICAN BANK (INSTITUTE wOI{KS)' et al' RELICIOUS
Defcnd!nts,

Hii${'$3"?'#liS COMPI,AINT

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herebydeclareas follows: l, Ar r'.Fralzo GrandeStevens' Supreme the bar ofTulin' ltaly as well as et the ltalian to I. I am a.nAttorney lic-4nced practioeat ofthc ltallan ofthe National ForensicBosrd (i e Chairman court in Rome. I havebeenihe President 8nd for the Stateofvatican City (the Holy See)' For arcund fiffeenyea$, I have beenthe attomey Bar), is via Carmine2' Tudn' ltaly' My Romc officc addrets is: rhe lOR, My presentwotk address viadel Ca$iodoro 15, Rome' ItaIY' and bcliof' the facts contaitcd in this 2. Exccpt as to those mattsrs $atcd on irformatiod to jfcalled as a witnessI could testify competently are basedon my personalknowledge'ard decla.ratio! said facts,

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of ofthe IOR' theCovernmenl and 3. I am ditectlyfamiliarwith thetegalstruclure thepracticcs ofstate' thestateofvatican City andthc Secretary Plaintifls'Third AfiendedComplaint'I lOR's Motionto Dismiss 4. ln suppoltofDefcndant offer rhefollowing: siructurcis the 5. The institutional structureof thc IOR is asfollows: al the headofthe of is This Commisrion composed five Cardinal Commission"' Cardinalaia,or "Cardinals' Conmissione by ofthe IOR is headed Sodaro Commission Pontili ThcCardinal's by \.vho appoillted the Sovereign are City State-The Conunission of of the Angelo,who is presently Secretaiy State tle Vatican Cardinal of is of Commissioo to reviewoompliance theIOR at meets lessttwiceperyea!. Thepnmarypulpose that ofthe IOR to cnsure its asscts on nortns'anoto check thepatrimony with its intemalstatutory of members theOversiSht and alsoapPoints removes level.Thiscommission at .main a saiisfactory below)' fi[tction is discussed council (whose the betwcen an is Commission to Prcvide ilstitutionatlink Theprimaryroleof thcCardinals' 6 overtheIOR' pulposes oversiSht and City State theIOR for goven[ngot ofthc Vaticaq govcrnment to Thisroughlycoresponds anopetatlve ot 7. Below this levelis theDirezione' Ditcctorate ofthis of administration thcIOR' Thc mcmbels on carries thecveryday "Boardof Directors"which Cornnission This ofthe Cardinsls' Council$bject to approvBl by boad areapPointed th' Oversight ofthe IOR' activities fic! is boaJd rsponsible theoperational dndtheBoard the thc bctween Cadinals'Cotnmission' Prlate' relationship E. This institutional ofth structure Marchl' 1990itheorganizationat daled Pontifls'Chirograph is setfonh in fte Sovcreign to March I' lgg0 According thc dsted or givenfurtherdetailin thc Sl4'r'rto' "by'laws" IOR is whichcaIIbe sucdin its ownname Law JuridicPeNon' the ad theby'laws, IOR is a Canon Chirographs btween or mission rclationship Nothingin thefu[darnental its own lcgalrPresentativ andwhichhas the between old andthenew changed was City StaieCiovcrttnent substanidlly IOR atd the Vatican tbe
legal structuje of the IOR' 0!e Sant' healt of VaticanCity, in a tower near 9. The IOR is locstedin the vcry Arr'la Gate' lls
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predecessor institutionswere locatedin the sane placeaDdthe IOR has neverhad any branchoffice outsideofthe Vatican City. This centraland exclusivephysicallocation reflectsthe fact, described below, that the IOR performscentralfirancial functionsfor the Vatican City StateGovemmenr. 10. The IOR is not a citizcn of$e United Statessnd is not createduoder the Iaws ofaoy fiird cou ry (i.e. it is created under the Laws ofthe Vatican State). I l, Thc IOR peform an essential function in the economicgovedfiient ofthe Stateof Vatican City. Ajnong the other bodies that perform such firnctions gre the Plefectue for Economic Affairs and the Administration ofthe Patlimonyofthe Holy See. The IOR carriesout the mission and policy go8lsof

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of City. theState Vatican activityoflhe State vaticanCity is position of ofthe IOR in thefinancial 12. The centra.l confinocd by thc Corstitulio ApostoltcdPastorror!.t that hasprovidedfor a Committeeofcardiaals powerto suPervise effectiveness thc ofthe IOR'Sactivily. (hcaded Cardinal that Sodano) hasultimate by assets econornic institutc. for msnaging ' whichrefe6 to th"special Anicle 24 of &at documenl, to to colltmittcd it. , ," refers thc IOR. Professor Counsel' of ofthe Presideot thOversiSht matters cometo thedttention 13. vy'hen which involve Lelio scaletti, commendatorE ofth DiEctor Geneml caloia,or to thesftention Angeto to refened theyalecommonly about loR's activities, the decision or anysortoipolicy decision, strategic the In who decidcs how to procced' suchcases, IOR follo{'s, and ofState, ofthe Secretary theattention c.nsidcrsin thebestinte!sls that ofthe loR to follow,anyadvice the secretary it hasbeenthecustom

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ofthe IoR in uponmy cxperienoe workingwith bothrcpresentatives z0 ofthe vaticanStat.This i9based of andwilh the SecrtarY Stote. by ofthe IOR aremanaged the IoR i$elf opelstions 14. I canalsoaddthat,whiie theday-m-day to and ofthe IOR is attuned responsive the and the for (asit is natural ajuridicalperson) custom practice Pontiffs temporal ofti SoveEign dclegate \ahois thehighest of policyvisionofthe Searetary State, and DirectorCcneml it authority over Vatican City State For this reason, is the practiceof the President asthe of in ofthe IoR to reportto CardinalSodano his caPacity Secletaryof Stateand aschainnan

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that snd commission, to fumishhim with anyinfomationandrecords he.equires'ln this cardinal's in importance theIOR, cant'estb ofPanicular function, all maltels fo! of the sense, Secreta.ry State's conlrolovcr the ofstatc hasconsidelable the role. defined ar|activesupervisory Hence, Secretary as of that (including and budget opetations) heconsiders oflOR activities and programrlliDg execution interest. State a'td to the 15.The IOR oflersandprforms followingservices thevaticar!State its temporal the ttetween vtrious Valican State housefor payments Pontiff. It actsasa clea.ring head,the SovereiSn a'1d the Paymcnt workswithin theStaleIt opemtcs electronic a lt agencics. finances vaiefy of reliSious at territory'Thisseniceis provided lessth8ncost'and Vatic$ State throughout ATM networkin place the as for the a5a serviceto the Vatican State.It manages pe$ion system its own employces well asall ofth VaticsnCiry the ofthc VaiicanState.lD this way,theIOR supports operations o6er employes in State its own lenitory' and for System IOR cmPloyees othet goveming Pcnsion the 16. The structucandregulations js employees virtuallyidcntical, valicanSta1e lo ofState'srequest' at ofPiouspurposes, the Secretary with thIOR'Smission 17. In keeping of to available theStat Pontiff, theIOR makes ofthe Sovcrcign dclcgat as his capacity tcmporal the flmds to puBuc its piousPurposes ln this sense IOR is usedto forward vatican City Govenunent relations ofvatican City foreign calryout State City, andto othcrwise of ofthe State Vatican thegoals objctives. for managcmcni for 18. At thc cndofeacbyear,oncethefundsncccssary thcIOR'S moncy goals to are fiurds madeavailable theHoly Seeto csrryout its remaining are piouspurposes setaside, No is funds'no sucbpayment made'howevcr' profil suJlicicnt has when fundr$anagement not produced is keptby the IoR. for assistance the IOR' prgvided {inancial occasions on 19. ltre HotySeebas, ptst that 'Ihe IOR is a limitddcpo$tory institlltionlt is notopento lhepublicin the sense the 20. orders' ofthe Holy See'religious members employes' State limi(edto Vatican a.re depositors essentially

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irl at rnoney destined, least part'for worksofpiety' who andpersons deposit aftertenyea$ Tlere is tecotds ofthe IOR to not retain and 21. It is thecustom practice at who workcd theIOR in theyea$ of WorldWsr li' and presently employee, I knowofno person, no liquidated will of 22. The IOR is a creature thosoverei8J'l andcouldbe woundup gndits assets the thst to According theChirogaPh hascreated IoR asa Ca$o[Iaw ofthe sovereign. by direction wouldorly bemadewith to Any changes the by-laws juddicalperson, IOR cannot change bylaws. its tbe Pontiff. ofthe Sovcrcign final appmval to birth to theIOR wasa capilalcontribulion its sntccedent 23. The originof thefrlndthatgave LeoXIU in 1887' by cteatcd Pope ad Causas, the institution, Conn ission Plas piousacts As puposeis to pronrote person whose fundamental Law Juridic 24. IOR is a Canon nor States' or of in or not such,it does manufacturc sellanygoods eitherlhe State Califomia tbeUnited of publioin eithe'theState Califomiao( theUniledStates' to docsit sellaIIysctviccs thc general for agent lcgalnotificatio$in eitherthestateof califomia or the 25, IOR hasno rcgistered UnitedSlates. or ihe United of 26. loR hasno oflicesor ot$erfacilityof 8nykind in eithetthe State Cdlifomig StAtes. ofcaliforrdaor the in or not 27. toR does owa lcasc rcntanyrcalpropcrty citherthc State UnitedStates. of in based eithertheState Califomiaor theUnitedStstcs' 28. IOR hasno cmployeca of in eithertheState any 8nd no 29. IOR conducts advertising docsnot market products Califomisor theUnitedSlates. by telex,or fax number whichit may number' tclePhone 30' IoR hasoo mailingof otheraddrcss' ofcaliforflia or theUnitedStates' in bereached eithcrthc State with ofdirecto$ andcouncil(charged day-to-day offhe board 31. Noneoftbe members or of ofeithertheState Califomia theUnitedStates' of opetations) IOR is a rssident of or operations management anyotherentity the not 32. IOR does diiectot control day'to-dey

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WOITKS a Aflornqyfor tNsTlTuIE FoR R.eLtGlOUs

6 1 I I IO

UNITED STATASDISTRICTCOIJRT OF NORTTIERNDTSTRICT CA!|fORMA ctle No. C 99'4941MMC

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3 | .m dilccrty funili$ r.,irbtlr l.gal lrflsiutr anCtlo pr..riccr ot dr tOR, lh. covalD!|.rt o, ot $! Sir^ra vdicr$ City |nd tha S.(r!tr y of St|t4. 4. 16c'rPpol ofDcfnd&t IOR'! Molion ro Dilrnis! PlEinnffr, Third /JlEndcd Corplatll, I otfcr rbc folloe/in8:
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ir lo plgvid funhor inforo.rion rctlicd rr, rh. cq.rporirio, ot bt lOA.'t Conmirt:on. Cardhalizie, ot'!cr!dln b ' Corrurirsion" rcferledro in roy Dcchr|tto{ ot Av! 0!116Ft4olo Cunda St.vror ln Suppoflot Dcf.nd!,rr IOR'J Morjoo !o DiirDt3rPlrisrdf!' ?bird Compl.irl rnd lh particrdlr ro d.tdl th! dcnpi!rritutioaat linb bcrefccn IOR'3 C!di!dr' A.rnond.d thc CoEsoi.riot gDdrhsSov.ruocar of Ar st.ra of Vadc|! Cry rncnlioncdia lrn|$rgh 6 of Iny Fevio{t drclrrdon. 6. Ofrlr 6v! rrcmbcr, ottb IOR'I cordlndt' Cos|tni$ion, rhc firrl. Atlt.lo C.dl6.l Sodalo, ii laror|! tl|! 3ir hllboir rad.iAgc{dlaCa in $. co.dindt' ColhS. b ll|G S.crctdrt 6t s(.ic ol tlu Sr{r. V!.ior! Clly,.nd i. | !u.nb.r of C&Cosrlcit ofcrrilirrl| qnd8i3hoF! (Codirlr, di cardinati . Vct.cvi) ot lhc Soctarsyof 3 c'r Offlc., tlt conSrltsliou fo! th. Docttit!' of thc Faltlr !h. Conir.grtion otEilboPr ud iha Confrslotion tor E st!l! Chrrch't Tht rc'9nd, Jobn Jo"Pb Crrihd O'Coaror, wA!,lsrtl hh t!..n! d.!t!, . |nrftb.! ot th. Ccuacil tot $. Studyof Orllrlrt||ond &d Eco{lomFPrlbletlt of tlF Holy s'c' tdr a tncmbr' of Ib! Coi'|rcil o( cddin'ls !d {,rthio tl* s..tEt{ry ofsLr|! t Ofrt..'.Dd 'lro h'ld biSbofficd wilhio tbt Rotlto Ct|!ld"

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cJ|d BishoPs wit'bit rlte sicrcl.ty of Socicriar of Aposloltc Llfc' b n nEmb$ of t}! Corncrt of C'Jdinrlt df lht cosncll lo lb' Scctchrv |9 ' ft"lb'r sr4E's Omc!, lrd .lto bctd bill oficc withb thc Holy St' C.nrfll flf rhc Slnod ot Biiborg. ?. In tutDm.rr, rll tivc dtttrbct! (ifolt co||nti tb' lo!8_!lrhg' b{r' t'4dDtly 'Lct'ttd C|rdinrl

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