Priest Accused of Spending $1.4m in Church Funds Pleads Guilty, WNBC, September 12, 2007

Priest Accused of Spending $1.4m in Church Funds Pleads Guilty

WNBC
September 12, 2007

http://www.wnbc.com/investigations/14096961/detail.html

NEW HAVEN, Conn. — A former Darien parish priest accused of spending $1.4 million of church money on luxuries entered a guilty plea Wednesday.

The Rev. Michael Jude Fay, former pastor of St. John Roman Catholic Church, pleaded guilty to interstate transportation of money obtained by fraud.

Rev. Michael Jude Fay

Fay spent church funds on trips to Europe, the Caribbean, and other parts of the United States, according to U.S. Attorney Kevin J.

O'Connor.

VIDEO: From Pulpit To Prison?

"A religious leader who secretly uses contributions made to a church for his own personal benefit destroys the confidence and trust of everyone who donates money to a religious institution or charity," O'Connor said. "Prosecutions of this kind of serious criminal conduct should serve as a message that no one is above the law."

A message seeking comment was left for Fay's attorney.

Fay resigned as pastor last May after serving at the Bridgeport Diocese from 1991 to 2006.

Investigators working for the Bridgeport Diocese last year said that Fay used church money for limousine rides, stays at top hotels around the world, jewelry, clothing from Italy. He also bought a condominium in Florida with another man. In December, Fay transferred his half to the parish to pay back some of the missing money.

Prosecutors said Fay took between $1 million and $2.5 million, but the priest has disputed that. He admitted to taking between $400,000 and $1 million.

The Bridgeport Diocese last year released the investigators' report on the priest's lavish lifestyle. About half the money he spent was kept in a secret bank account, according to the report.

Bridgeport Bishop William Lori, who ordered the investigation by Deloitte Financial Advisory Services, said he was shocked and angered by the findings.

Lori has faced criticism for his handling of the scandal, especially when it emerged that another priest and the church bookkeeper hired a private investigator to look into Fay. The pair said they decided to hire the investigator after they met with Lori and Fay was not removed, according to the report.

Lori said after he was made aware of potential financial misconduct he took swift action to stop Fay from using church credit cards and then to force his resignation.

The report, which was limited to the past six years, calculated the "potential financial loss" at $1.4 million. The review also identified an additional $350,000 deposited in Fay's personal account, but could not determine where the money came from.

Fay told church officials that the money was used to help needy parishioners and for other legitimate church-related expenses. The report acknowledges some of the money may have been used for legitimate expenses, but said Fay failed to document his claims.

Fay also said he received money from parishioners, his family and the other man, Cliff Fantini. Fantini has described himself as a "very good friend," but denied the two men were romantically involved.

Fay also charged $500 fees when he gave lectures.

Lori noted that priests are to lead simple lives free of luxuries. But the report painted a picture of a priest who felt entitled to a lifestyle that more closely resembled those of some of his wealthy parishioners.

Fay shopped at Bergdorf Goodman, Saks Fifth Avenue and Nordstrom, drove a Jaguar, attended a sports club, bought jewelry from Cartier, spent $130,000 for limo rides for himself and his mother, and stayed at hotels such as the Ritz Carlton, Hotel De Paris and the Four Seasons Hotel, the report found. He spent tens of thousands of dollars on home furnishings and meals and more than $20,000 to mark the 25th anniversary of his ordination, according to the report.

In December, Fay transferred his half of a luxury Florida condominium to the parish to pay back some of the missing money.

He faces up to 10 years in prison and a $250,000 fine when he is sentenced on December 4. He also must make restitution. Fay was released on a $50,000 bond.