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  Man Accused in Catholic Diocese Kickback Scheme Set for Trial

WTTE
May 11, 2008

http://www.wtte28.com/template/inews_wire/wires.regional.oh/37d7f001-www.wtte28.com.shtml

CLEVELAND — A federal trial is scheduled to begin tomorrow for a man who was once the top financial officer at the Cleveland Catholic Diocese.

Joseph Smith is accused of orchestrating a kickback scheme that lined his pockets with at least $784,000. He's pleaded not guilty to charges that include making false personal income tax returns, money laundering, mail fraud and conspiracy.

A co-defendant, Anton Zgoznik, was convicted in October and is scheduled to be sentenced June 18. Zgoznik was an accountant for the diocese.

Prosecutors say Zgoznik funneled in kickbacks to Smith through $17 million in outside auditing and consulting contracts with the church.

Church officials have denied any knowledge of illegal payments.

 
 

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