WKYC
August 20, 2007
http://www.wkyc.com/news/news_article.aspx?storyid=73073&provider=gnews
Cleveland—A trial that could expose alleged secret funds inside the Cleveland Catholic Diocese began Monday.
A former assistant treasurer of the Diocese is accused of financial mismanagement, including defrauding the Diocese, and of tax evasion.
U.S. Attorneys claim two men came up with a scheme to enrich themselves at the expense of the Cleveland Catholic Diocese.
One of those men went on trial Monday: Anton Zgoznik, who used to work as a Diocese assistant treasurer.
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He left, opening an accounting firm that received $17.5 million from 1996-2003 from the Diocese, according to the federal indictment.
It alleges Zgoznik's companies kicked back about $800,000 to Joseph Smith, the Diocese's former chief financial officer, who faces similar charges.
But Zgoznik's lawyers say top church officials commonly routed millions of dollars using secret accounts. And they claim the Diocese has destroyed records that would shed light on those accounts.
"Minutes of financial council meetings are not there beyond 2002, and that's when a lot of financial transactions were approved and disclosed," said Bob Rotatori, Zgoznik's attorney.
The Diocese maintains it has done nothing wrong.
"The Diocese is not on trial here," said Diocese spokesman Robert Tayek. "It is a victim of the alleged crimes against these defendants."
Jury selection in the federal trial began Monday. The trial is expected to last 3-4 weeks.
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