An Irish priest accused of misappropriating millions of dollars in the United States will be released on bail if he can pay 10 per cent of the €400,000 bond required by the Palm Beach law authorities in Florida.
Mgr John Skehan (79) from Co Kilkenny remained in police custody in Palm Beach County jail in Florida last night charged with "grand theft" of about $100,000 (€79,000).
An arrest warrant has also been issued for Father Francis Guinan (63) from Co Offaly on the same charge. His whereabouts are unknown to police.
Both priests are accused of using up to $8.6 million in church funds to buy property, holidays and other assets, according to investigators.
Delray police said the priests had skimmed cash from collection plates and bequests to the church over a number of years and subsequently channelled the money into secret "slush funds" used to pay personal bills.
Mgr Skehan, a pastor at St Vincent Ferrer Catholic Church in Delray Beach for about 40 years, was arrested at Palm Beach International Airport on Wednesday night as he returned from a trip in Ireland where he is believed to own a pub in Co Kilkenny and a cottage in Co Clare.
Three years ago, Mgr Skehan was succeeded by Father Guinan at St Vincent Ferrer Catholic Church.
Florida law department officials have said that in the case of Rev Guinan, church funds were used to finance a lavish lifestyle that included visiting casinos in Las Vegas.
He is also said to have had what a police affidavit described as an "intimate relationship" with a former bookkeeper at St Patrick's Catholic Church and contributed to the woman's credit card bills and her child's school tuition fees using church funds.
Bishop Gerald M Barbarito of the diocese of Palm Beach said the two priests were placed on administrative leave and will not have permission "to exercise publicly their priestly ministry" until the criminal matter is resolved.
He added that an internal diocesan investigation is taking place.