(Bloomberg) -- A top Vatican official faced accusations of dishonesty in a London court as he answered why massive payment backed by false invoice was made to an agent linked to a controversial €350 million ($379 million) London real estate deal.

Archbishop Edgar Pena Parra, Pope Francis’ chief of staff, testified in a case bought by ex-banker Raffaele Mincione, who sued the Vatican to clear his name after being accused of fraud to inflate the price of the property in 2018 deal.

The case is part of a dispute that spilled into several countries over the Vatican’s €350 million investment in a former Harrods warehouse that was proposed for redevelopment. The Holy See sold the property for a massive loss to Bain Capital in 2022 for £186 million ($235 million).

“The invoice was false,” Parra said adding that the £5 million payout was intended as the “full and final settlement” to get rid of the agent acting for the Vatican in London. 

Mincione’s lawyer accused Parra of lying in response to a question linked to the invoice. “You are making that up as you go along, aren’t you? That last answer, I suggest to you, is a lie,” lawyer Charles Samek said. He denied lying to the court. 

“We were trapped,” Parra said, referring to the agents handling the deal.

The agent was later convicted of fraud and extortion after a criminal trial in the Vatican. The investigation led to charges against 10 people, including financial brokers, an Italian cardinal and a lawyer. 

Mincione, through who’s fund the Vatican’s investments were made, did not act in good faith, lawyers for the Holy See said in court documents. Mincione filed the suit to bring pressure on the Vatican’s justice office “or somehow ‘manage’ the understandably negative public relations consequences of being accused of having been involved in serious criminal activity.”

Pope’s Fear

Mincione saw higher value in redeveloping the warehouse into a luxury residential property but the property was turned into an office building out of fears that Pope Francis and the church would not want to be involved in a luxury residential development, the former banker told the court earlier this week. 

“God was not with them and Covid arrived,” the former banker said during his testimony, referring to the slump in commercial real estate after the pandemic. 

The Vatican’s lawyer alleged Mincione acted with conflict of interest in the deal and was unable to find a buyer before the Vatican bought all shares in the property. “I’m a tough cookie. I keep trying,” he countered.

Mincione was convicted over a 2014 investment by the secretariat worth about over $200 million into a fund. He challenged the conviction. In the UK claim filed in 2020, he urged the court to declare he acted in good faith. 

“I look forward to these issues being examined by an independent and internationally-respected judicial system,” Mincione said previously. His spokesman declined to comment further.

Lawyers for the Secretariat of the State of the Holy See didn’t immediately respond to an email for seeking further comment. 

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