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	Church Kickback Trial Nears End Associated Press, carried in Chronicle-Telegram September 28, 2007 http://www.chroniclet.com/2007/09/28/church-kickback-trial-nears-end/ Closing arguments set for today in trial of former diocese accountant CLEVELAND — Lawyers and the judge in the conspiracy trial of a former accountant for the Cleveland Catholic Diocese on Thursday wrestled with legal and financial complexities, seeking to make about 60 pages of jury instruction as clear as possible. U.S. District Judge Ann Aldrich then finished instructing the jury and set closing arguments for this morning in the case of Anton Zgoznik, who is charged with conspiracy, money laundering, mail fraud and obstruction of justice. The charges concern $784,000 in kickbacks to his former boss, Joseph Smith, former chief legal and financial officer for the diocese. Smith is to go on trial later on various charges. The defense said during the five-week trial that the payments amounted to extra executive compensation authorized by church officials in a pattern of secret financial dealings. Lawyers for Zgoznik sought to make sure jurors would not be confused by the instructions and mistake allegations against Smith with those against their client. Zgoznik, 40, of the Cleveland suburb Kirtland Hills, tearfully denied wrongdoing during his testimony at trial and said he was a middleman who handled payments between diocesan leaders and a valued lay employee who could have commanded a higher salary elsewhere. Zgoznik testified the diocese boosted Smith's compensation through him but that he did not know it was wrong to do so. He said he was loyal to the diocese but now felt abandoned. The prosecution portrayed the payments as unauthorized kickbacks Zgoznik made in return for church accounting work contracted out to his private business. The eight-county diocese of about 780,000 Catholics had said it was a victim in a scheme. A trial highlight was the testimony of retired Bishop Anthony M. Pilla, who said he felt betrayed when he learned about the payments.
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