Brooklyn Diocese Shells Out $27.5 Million Over Homosexual Abuse

The two pastors in residence at St. Lucy's-St. Patrick's at the time, Fr. Stephen P. Lynch and Fr. Frank Shannon, were named as co-defendants in the suit, accused of ignoring clear warning signs surrounding Serrano's behavior.

"The record is clear that Lynch and Shannon had knowledge that for years Serrano often had several boys ... sleep over at his apartment," Judge Loren Baily-Schiffman wrote. "In fact, both Lynch and Shannon testified that they visited Serrano on numerous occasions when young boys were present."

"The record in this case at bar is replete with evidence of Serrano's inappropriate behavior with sexual implications that continued for years even after he was told to stop," she added.

In a comment to The New York Daily News, Lynch admitted seeing Serrano hug children inappropriately on a few occasions but claimed ignorance of the abuse.

"Apparently he was a very sick person. I guess a lot of signals were missed, unfortunately, probably by myself and others," Lynch said. "I'm terribly saddened. If there was anything I could do, or think of to make amends or help (the boys) or heal them I would certainly be most anxious to do that."

In his deposition, Lynch also testified he witnessed Serrano kissing a young boy on the lips, but when asked about the incident by the Daily News, the priest pledged ignorance.

"I don't have a memory of that at all," he claimed.

Church secretary Beatrice Ponnelle confirmed Serrano's predatory behavior, noting in her testimony that boys as young as seven or eight were seen in his office doing homework while sitting on Serrano's lap.

In fighting the allegations against it, the diocese argued it was not responsible for the abuse, owing to the fact that Serrano was a volunteer. But victims' attorneys refuted this assertion, noting that Serrano was paid a church stipend and worked from an office on church property.

Even so, in announcing the settlement Tuesday, the diocese sought to minimize its responsibility: "Mr. Serrano was a volunteer worker at a local parish," it said in its statement, "he was not clergy or an employee of the diocese or parish."