Two years ago, the chief financial officer of the Cleveland diocese resigned after suspicions of financial impropriety. He was then, oddly, immediately hired by the Columbus diocese. Who knows why.
Anyway, yesterday, the fellow was indicted for his Cleveland efforts:
The finance director for the Columbus Roman Catholic Diocese was indicted by a federal grand jury yesterday on 23 counts of taking nearly $800,000 in kickbacks while working in Cleveland.
Joseph Smith, 50, was hired by then-Columbus Bishop James A. Griffin in 2004 after Smith quit as chief financial officer for the Cleveland Catholic Diocese amid the kickback allegations.
At the time, Griffin said Smith had been "strongly and positively" recommended for the Columbus job by a Cleveland auxiliary bishop, despite the allegations. A spokesman for the Cleveland Diocese, however said then that Columbus Diocese officials had never asked for a recommendation.
The case has been under investigation by federal authorities since then.
Smith could not be reached for comment at his home in Dublin or his office. But one of his attorneys, Philip Kushner of Cleveland, said Smith believes he is innocent and will fight the charges.
Kushner said Smith does not intend to resign while the case is pending and has not been asked to step down.
The former chief financial officer of the Catholic Diocese of Cleveland used money put into church collection baskets to pay for a Florida condo, his children’s tuition and a resort membership under a $784,000 kickback scheme, according to charges filed Wednesday.
Joseph Smith was the highest-ranking lay employee at the diocese before he resigned in 2004. He was charged with 23 counts, including conspiracy, mail fraud, money laundering and obstruction in U.S. District Court.
Anton Zgoznik, Smith’s friend and former diocesan employee, was charged with 15 counts, including conspiracy, money laundering, mail fraud and obstructing.
"He followed all of the directions," Rotatori said. "He did nothing wrong except be a good soldier for the diocese."
Much of the money passed between the men originally came from the 233 parishes across eight counties that make up the Cleveland diocese.
Prosecutors said that from 1996 through 2003, Smith approved more than $17.5 million in inflated payments from the diocese to companies owned by Zgoznik. Some of the money, which was said to be for "consulting services," was diverted to Smith and Zgoznik.
Zgoznik, 39, of Kirtland Hills, paid $784,000 in consulting fees to companies owned by Smith for work that was never done, prosecutors said.
Robert Tayek, the spokesman for the Cleveland diocese, expressed sympathy for Smith.
"We pray for a just resolution and for Mr. Smith and his family," Tayek said.
Beware, beware the "consultant" fee…
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