North Carolina priest banned from Catholic university after sexual misconduct report remains in parish ministry
Father Steven Costello is no longer welcome at Divine Mercy University.

A Diocese of Raleigh priest suspended in 2024 after church officials received a report that he engaged in “consensual” sexual behavior “between adults” is banned from the university where he used to be a professor, the school confirmed to me.
Father Steven Costello “will not be permitted to participate in any future work or activities” at Divine Mercy University, an official with the Catholic graduate school based in Sterling, Virginia told me by email. The official said that this decision was made after the university learned about the sexual misconduct reports against Fr. Costello in 2024. Divine Mercy University did not say whether or not Fr. Costello’s alleged misconduct involved anyone associated with the university.
Father Costello was a part-time professor at DMU from August 2019 to December 2020, the university said.
In March 2024, the Diocese of Raleigh informed parishioners at St. Paul in New Bern that their Parochial Vicar would be placed on leave immediately to enter an intensive, outpatient treatment program to address issues regarding boundaries and inappropriate behaviors which counter the vows of priestly chastity, the Sun Journal reported.
The diocese restored Fr. Costello to ministry at St. Paul in October 2024. Upon the news of Fr. Costello’s return, a note in the parish bulletin reminded parishioners that priests “share our human weaknesses” and “are tempted to sin and discouragement as are we, needing to be ministered to, as do we, to be consoled and forgiven, as do we.”
On March 28, I emailed Fr. Costello:
Divine Mercy University recently confirmed to me that they banned you from their institution after they heard of your misconduct reports. Does your parish know that your former university feels you're too unsafe to interact with students?
Also, did your alleged misconduct involve someone under your spiritual care? If so, do you acknowledge such behavior as predatory? What safeguards has your parish put in place?
I did not receive a reply from Fr. Costello.
The Diocese of Raleigh recently announced that Fr. Costello will be elevated from Parochial Vicar at St. Paul to “Administrator” on June 24.
The Diocese of Raleigh has not responded to email requests for comment.
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What happened has nothing to do with the university or anyone who went there. They are simply saying they learned about his suspension and he’s isn’t welcome to collaborate in the future. He’s a sinner like all of us and that’s between him and God.
He should have been laicized the minute this was confirmed. End of story.