A priest at a Catholic church in Ontario, Canada is under investigation by the police after he told a bishop that he gambled and lost more than $500,000 from a fund earmarked for refugee sponsorship.

Father Amer Saka of the St. Joseph Chaldean Catholic Church in London, Ontario admitted to Bishop Emanuel Shaleta that he lost the money that was to be used to help resettle Iraqi refugees in Canada, the Toronto Star reported.

"He called me on the phone and . . . said he lost all the money. I said, 'How?' He said, 'Gambling,'" Shaleta told the Star. The phone conversation took place last Feb. 23.

"We believe that Father Saka has a serious gambling problem and that the funds may have been used for that purpose. Since there is an investigation going on, we cannot confirm what he's saying," Shaleta said.

He said he suspended Saka after learning about the missing church money.

Shaleta took Saka for voluntary treatment at Southdown Institute, a Toronto facility for priests battling problems such as addiction, depression and sexually abusive behavior.

London police said they received a complaint on Feb. 24 about the missing church fund.

"An investigation is underway," said spokesperson Const. Sandasha Bough.

No charges have yet been filed against Saka.

A church representative said it is treating the incident "very seriously" but declined to comment further, citing the ongoing investigation.

The Chaldean Catholic Church is based in Baghdad and represents Catholics from Iraq and neighbouring countries and is under the Vatican.

The Toronto-based Chaldean eparchy was founded with the blessing by Pope Benedict XVI less than five years ago when Iraqis continued to arrive in Canada.

According to Monsignor Murray Kroetsch, chancellor of the Roman Catholic Diocese of Hamilton, which runs the refugee sponsorship, Saka was the leader of a constituent group raising funds to sponsor refugees from Iraq.

Kroetsch said the Hamilton diocese filed up to 20 applications sponsored by Saka for refugees from Iraq and 10 of them have arrived in Ontario.

The Hamilton diocese has taken the responsibility for the refugees' support following the incident.

"We want to assure the refugees that our part of our agreement is looked after and that money will be provided to help them feel secure and help them find their footing in the country," he said.

Holders of sponsorship agreements must support refugees for at least one year after they arrive in Canada.

"They're somewhat vulnerable, and now they may be even more fearful . We need to assure them that we're not just going to abandon them," Kroetsch said.

A sponsorship costs about $6,000 a person, or about $20,000 to $25,000 for a family of four, said Shaleta.

"It is wrong for a priest to go and gamble. It's against the rules," he said.