Pilla, Others Sued over Transactions

Plain Dealer
June 14, 2005

The former top attorney for the Catholic Diocese of Cleveland and 37 members of the diocese filed a lawsuit Monday against Bishop Anthony Pilla and several current and former diocesan officials demanding that they repay the diocese more than $2 million.

Santiago Feliciano, who left the diocese’s legal office in 2000, accuses Pilla in the lawsuit of shirking his responsibilities to diligently oversee diocesan assets, allowing millions of dollars of church money to be improperly funneled to one current and several former employees.

The lawsuit, filed in Cuyahoga County Common Pleas Court, cites evidence that former Chief Financial Officer Joseph Smith of Avon Lake received more than $678,000; former business consultant Anton Zgoznik of Hudson received more than $1 million; and cemeteries director Thomas Kelley of Rocky River received more than $330,000.

Diocesan spokesman Bob Tayek declined to comment, citing an ongoing FBI investigation into the transactions.

Pilla suspended Smith after the financial documents were made public last year. Smith resigned, and is now the CFO of the Diocese of Columbus.