The Vatican has sacked a California Catholic bishop, Emanuel Shaleta, after the church headquarters accepted his resignation following accusations of stealing over $250,000 from the church coffer and secretly lounging with sex workers in a Mexican brothel.

Mr Shaleta’s resignation was approved by Pope Leo XIV on Tuesday, the same day the now former head of the Saint Peter the Apostle of San Diego of the Chaldeans was released from prison after meeting his $125,000 bail conditions.

“The Holy Father has accepted the resignation from the pastoral care of the eparchy of Saint Peter the Apostle of San Diego of the Chaldeans, United States of America, presented by Bishop Emanuel Hana Shaleta,” the Vatican said in a statement.

Mr Shaleta tendered his resignation letter to the pope in January.

Mr Shaleta was arrested at San Diego International Airport on Friday, on his way to Germany, with over $9,000 in cash, according to the New York Post.

Mr Shaleta’s arrest followed a tip received by the San Diego County Sheriff’s Office from a church official in August last year detailing the prelate’s alleged illegal dealings.

Mr Shaleta was subsequently charged with 15 felony counts relating to financial crimes, including embezzlement, money laundering and white-collar crime enhancement, but pleaded not guilty during his arraignment on Monday.

The media outlet noted that Mr Shaleta allegedly diverted money from the church’s property for personal use and later utilised charity funds to cover his tracks, with investigators said to have found at least $427,000 missing from the church’s finances and possibly up to $1 million.

It reported that a private investigator found that the defendant was a regular customer at the Hong Kong Gentleman’s Club in Tijuana’s Zona Norte red-light district, Mexico.

The embattled bishop denied any wrongdoing.

“I have never, in my episcopal life, used any penny of the church money,” Mr Shaleta said. “On the contrary, I have done my best to preserve and manage the donations.”