Monsignor Jose Ronaldo Ribeiro had been bishop of Formosa since 2014 when he was detained in March.
Local media said the 61-year-old allegedly spent some of the stolen collection and donation money to buy a gambling establishment and a cattle farm.
Six other priests were arrested around the same time for corruption and criminal association in Formosa, 80 kilometres (50 miles) from the capital Brasilia.
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