Public authorities are not prosecuting. "Nothing criminal" was the decision. It is still possible for the IRS to go after Weakland because of his use of donated funds for personal reasons. However, I understand that some lay group "Friends of Weakland" has raised more than $300,000 to help "pay back" the money that Weakland misappropriated.
I think that he had full authority to use the funds, so it is a difficult legal case to prove that he did anything wrong. Morally, the concensus is that it was very wrong -- and stupid.
Is there a weakness in the law--public and/or canonical-- that allows the bishop to do what the head of no public charity could do? Who are these friends who are giving him money to refund? Do they think that he is somehow innocent, because of senility or other form of incompetence? I cannot see that at this distance.