Bishop Domenico Mogavero of Sicily was a rabid critic of the so-called far right, a derogatory term used by the predatory left to marginalize patriots as fringe elements.
Some of the money is alleged to have been given to another priest who was suspended and jailed in 2011 for sexually assaulting another man, begging the question whether the corruption in the case may go deeper than merely fiscal.
The crime was reported Dec. 18, 2015.
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Bishop Domenico Mogavero, who oversees the diocese of Mazara Del Vallo near Trapani, was questioned on Thursday as part of an investigation into the illegal use of diocese funds between 2010 and 2011, Corriere della Sera reported.
Italy's financial police are investigating how €180,000 of Curia funds found their way into his personal account.
Also implicated in the probe is the ex-economist of the diocese, Father Franco Caruso, who allegedly squandered €250,000 of church money destined for charitable projects.
It has been alleged that some of the missing money was given to another local priest, Father Vito Caradonna, who Mogavero suspended in 2011 after the priest was sentenced to two years in jail for attempting to sexually assault another man.
Caruso was eventually removed from his position as economist by Mogavero in 2014.
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