The bishop of a small Chaldean Catholic community in the San Diego area has resigned amid charges that he embezzled $270,000 from his parish, Pope Leo XIV announced Tuesday.

Bishop Emanuel Shaleta pleaded not guilty to 17 felony charges, including money laundering, during a hearing attended by many of his supporters.

Shaleta, 69, is accused of embezzling from the St Peter Chaldean Catholic cathedral in El Cajon, east of San Diego.

He was arrested last week at San Diego international airport while trying to leave the country, according to the San Diego county sheriff’s office, which didn’t say where he was allegedly heading. Someone from Shaleta’s church provided a statement and documentation “showing potential embezzlement from the church”, it said.

Prosecutor Joel Madero said the allegations against Shaleta are connected to monthly rental payments of more than $30,000 from a tenant of the church’s social hall that allegedly were missing. He said there were discrepancies in church accounts and that Shaleta “provided completely unreasonable tales of where that money was going”.

The judge set bail at $125,000. Madero said Shaleta was a flight risk, but the bishop’s attorney said Thursday’s flight had been planned for a while.

During a recent mass, Shaleta addressed allegations against him, saying he has never “abused any penny of the church money”.

“On the contrary, I have done my best to preserve and manage the donations of the church properly,” he said at the time.

Shaleta’s attorney, Sharon Appelbaum, said she planned to show that the allegations were false. The priests of the Chaldean Catholic Eparchy of St Peter the Apostle released a statement expressing solidarity with Shaleta.

The Vatican said in its daily bulletin Tuesday that Leo had accepted Shaleta’s resignation under the code of canon law for Eastern Rite churches, which allows for the pope to agree if a bishop asks to step down.

Leo actually accepted the resignation when Shaleta presented it in February, but an announcement was not made until this week, according to the Vatican embassy in Washington. The Holy See appears to have waited to announce the decision to avoid interfering with the police investigation.

Leo named Bishop Saad Hanna Sirop as a temporary administrator.

Shaleta was ordained a priest of the Chaldean Catholic church in Detroit in 1984. He was named to the San Diego branch of the Eastern Rite Catholic church in the US in 2017.

The Chaldean Catholic church represents more than a million Aramaic-speaking Christians who are primarily from Iraq. While its beliefs align with Roman Catholic doctrine, including the Trinity and the divinity of Jesus, the church maintains its own distinct, ancient Eastern traditions and identity.