Cleveland Diocese ex-CFO, under FBI for alleged $750,000 bribe, gets same Job with Columbus Diocese

http://theclevelandcatacombs.blogspot.com/ ^ | August 20, 2004 | James F. McCarty

[Knock3Times]

Diocese of Cleveland ex-CFO [accused of accepting more than $750,000 from an accounting firm he had hired to work for the diocese] to get Same Job with Diocese of Columbus

http://www.cleveland.com/search/index.ssf?/base/living/1093029328165640.xml?lrnew

Diocese ex-CFO to get same job in Columbus

Cleveland official resigned under a cloud of suspicion

Friday, August 20, 2004

James F. McCarty Plain Dealer Reporter

The deposed chief financial officer of the Cleveland Catholic Diocese has a new job as the next CFO of the Diocese of Columbus.

Joseph Smith resigned from the Cleveland diocese in January under a cloud of suspicion, accused of accepting more than $750,000 from an accounting firm he had hired to work for the diocese.

The FBI is investigating the payments, and the diocese's insurance company reportedly has filed a claim against Smith to recoup the money - neither of which apparently deterred the Columbus diocese from hiring him as its new finance director.

A Cleveland diocesan official said the Columbus diocese was made aware of the criminal investigation, as well as the circumstances of Smith's leaving after more than 20 years of employment in the state's largest diocese.

"No recommendation concerning employment was requested, and none was provided," said spokesman Bob Tayek, reading from a news release.

Few people involved were willing to talk about Smith's hiring when contacted Thursday.

Several phone messages left with Smith were not returned. Real-estate records show he has listed his five-bedroom, 5½-bathroom brick home in Avon Lake for sale. Asking price: $579,900.

Tayek confirmed there is a criminal investigation but declined to comment further. FBI special agent Bob Hawk declined to acknowledge that an investigation exists.

Robin Miller, a spokeswoman for the Columbus dio cese, confirmed that Smith recently was hired as its director of finance, and that he would take over the job from the outgoing chief financial officer in October.

Miller could not confirm Tayek's claim that Columbus diocesan officials were told of the criminal investigation.

Bishop James Griffin, head of the Columbus diocese, previously served as assistant chancellor in Cleveland before taking over the Ohio capital diocese in 1983. He was attending a bishops conference in Michigan on Thursday and was unavailable for comment.

Several lay people with ties to the Cleveland diocese, but who asked not to be named, said Griffin is well-acquainted with Smith, 47, the Cleveland diocese's former highest-ranking and highest-paid lay employee.

Smith owns a marketing firm called Tee Sports Inc. that runs golf tournaments, including charity events for the Columbus and Cleveland dioceses.

Smith's downfall in Cleveland began after documents were sent anonymously in December to the diocese and a lawyer. The documents detailed the flow of money from a Mentor-based accounting business operated by Anton Zgoznik to companies affiliated with his friend, Smith. Checks for "consulting fees" totaling $750,000 were written to Smith's companies over six years.

The accounting firm of Ernst & Young recently completed an investigation of the Zgoznik- Smith transactions, and the findings were turned over to the diocese's insurance company for review, Tayek said. He declined to provide details.

A layman with knowledge of the case said the insurance company paid an unspecified damage claim to the Cleveland diocese, then filed a claim against Smith to recoup the money.

If Smith fails to pay, the insurance company likely would sue Smith for damages, the layman said.

_____________________________________________________________________________________ My thoughts.

To me, this sounds like a pay off for Joe Smith to keep his mouth shut. Could it have anything to do with the other FBI investigation into the actions of Bishop Pilla?

You might want to look at this story that appeared on Freerepublic a while back and start connecting some dots. But could these people really be so stupid...and so corrupt???

FBI Investigating Cleveland's Bishop Pilla?

_____________________________________________________________________________________

[Knock3Times]

Here is the previous story posted here:

http://www.freerepublic.com/focus/f-religion/1110376/posts

FBI Investigating Cleveland's Bishop Pilla?


Posted on 04/02/2004 3:54:29 PM PST by Diago


A Quinn Martin Production … The FBI investigation into the activities of suspended Cleveland Catholic Diocese CFO Joseph H. Smith … who was put on a leave of absence by Bishop Anthony Pilla for allegedly receiving $750,000 in payments from firms that did business with the church … is also actively questioning how Pilla could not have been aware of Smith's activities, according to a source who has had contact with the federal probe. The Free Times hears that the connection between Smith and a well-known insurance broker, who is close to the bishop, is also under study, as well as other businesses possibly run out of the church. In addition, sources tell the Free Times that at least 40 priests were encouraged to take their automobile business, after the monthly car allowance was increased by the bishop, to a relative of the bishop — and what's more, that the Plain Dealer has sat on this story for way more than a year. Word has it that Cleveland, which once had one of the highest churchgoing rates in the country, has seen it drop nearly in half over the last few years. Could it be because of the priest- issue and how the local diocese has handled it?

[Diago]

An earlier Free Times Story 3-24-04:

Mr. Smith Goes to Church … Word is that suspended Cleveland Catholic Diocese CFO Joseph H. Smith … who was put on leave because of accusations that he allegedly received $750,000 in payment from firms that did business with the diocese… has let it be known to people at St. John's Cathedral that “he's not going to take it alone.” The Nose continues to hear that 60 Minutes II is collecting information about the Smith Affair and has increased interest in doing a follow-up story after Bishop Anthony Pilla's recent comment that he may have transferred “about three” alleged pedophile priests … a statement that was refuted in a Free Times story by former diocese top lawyer Charlie Feliciano … who appeared in a 60 Minutes story in 2002. In regard to Smith, legal sources tell the Free Times that the FBI is looking into self-dealing, as well as expensive, no-bid contracts for services and insurance that were steered to friends and relatives. Feliciano told the FT , “How Smith can avoid being indicted is beyond me.” The Cleveland Diocese ranks with Boston as having one of the biggest pedophile priest problems in the U.S. So why has it been ignored by Cleveland's establishment media ?

[Diago]

One more, Knock:

Free Times 1-24-04:

Is Part 2 in the Works? … Word reaches The Nose that in the aftermath of the Free Times publication on 12/24/03 of the cover story, “ The Bishop's Lawyer: A Question of Faith ,” 60 Minutes II and Ed Bradley are considering doing a follow-up on the Cleveland Catholic Diocese and its treatment of Bishop Pilla's former in-house legal counsel, Santiago “Charlie” Feliciano … What is also sparking renewed interest by 60 Minutes II are the recent reports about the suspension of diocese CFO Joseph H. Smith for questionable business practices, including allegedly receiving $750,000 in payments from firms who do business with the diocese ... In addition to his other “business,” The Nose has been told by several sources connected with the diocese that Smith allegedly ran a for-profit tax preparation service for priests within the diocese and charged them for doing their taxes. This came about, sources tell The Nose, after Smith had the diocese declare its priests “independent contractors” in order to limit liability in the case of lawsuits. Of course, sanity prevailed when the IRS said priests were employees of the diocese. Previously, The Nose has been told that tax assistance was performed as a free service by the diocese legal office.

[Diago]

From yesterday's Plain Dealer:

The deposed chief financial officer of the Cleveland Catholic Diocese has a new job as the next CFO of the Diocese of Columbus.

Joseph Smith resigned from the Cleveland diocese in January under a cloud of suspicion, accused of accepting more than $750,000 from an accounting firm he had hired to work for the diocese.

The FBI is investigating the payments, and the diocese's insurance company reportedly has filed a claim against Smith to recoup the money - neither of which apparently deterred the Columbus diocese from hiring him as its new finance director.

A Cleveland diocesan official said the Columbus diocese was made aware of the criminal investigation, as well as the circumstances of Smith's leaving after more than 20 years of employment in the state's largest diocese.

"No recommendation concerning employment was requested, and none was provided," said spokesman Bob Tayek, reading from a news release.

Few people involved were willing to talk about Smith's hiring when contacted Thursday.

Several phone messages left with Smith were not returned. Real-estate records show he has listed his five-bedroom, 5½-bathroom brick home in Avon Lake for sale. Asking price: $579,900.

[ninenot]

FWIW, the day of your liberation is at hand!

Rome takes VERY seriously those improprieties having to do with fraud and mis-appropriation of funds.

Be sure to email all the stories to the Papal Legate here in the USA>

[Diago]

An interesting take from Diogenes at http://www.cwnews.com/offtherecord/offtherecord.cfm:

A welcome diversion (of funds)? Like everyone else, I sometimes grow weary of the struggle. There are days when I read the headlines, shake my head, and ask myself, "Why is it always about sex? Why can't we have a good old-fashioned scandal about money?" Today was one of those days. I just couldn't face another story about a priest who chases boys, and a bishop who promotes him anyway. I wondered what it would be like if we had a different plot-line: say, a layman who's accused of wrongdoing, and complaints of financial rather than sexual misdeeds. Would the bishop still ignore the accusations and promote the man? I guess I must have been thinking out loud. Because I looked at the CWN site, and-- just like that!-- I had my answer.

Posted by: Diogenes Aug. 20, 2004 1:54 PM EST

[Diago]

FWIW, the day of your liberation is at hand!

Rome takes VERY seriously those improprieties having to do with fraud and mis-appropriation of funds.

Be sure to email all the stories to the Papal Legate here in the USA

I pray that you are right. This scandal really needs to get national attention and Rome's attention.

This quote from 5 months ago really tells the story:

Word is that suspended Cleveland Catholic Diocese CFO Joseph H. Smith … who was put on leave because of accusations that he allegedly received $750,000 in payment from firms that did business with the diocese… has let it be known to people at St. John's Cathedral that “he's not going to take it alone.

[Diago]

<<Back

Columbus diocese hires man who quit previous job amid financial controversy

COLUMBUS, Ohio -- A man who resigned as chief financial officer for the Cleveland Catholic Diocese amid financial controversy has been hired to supervise the finances of the Columbus Catholic Diocese.

Joseph H. Smith, 47, of Avon Lake, near Cleveland, will become the diocese's finance director in October, said diocesan spokeswoman Robin Miller.

Smith resigned from the Cleveland diocese in February after he was accused of accepting about $750,000 from an accounting firm he hired to work for the diocese. Smith has not been charged.

Cleveland diocesan spokesman Robert Tayek said the Columbus diocese has been told that a federal investigation of Smith is ongoing.

Special Agent Robert Hawk of the Cleveland FBI office would not comment on whether there is a probe of Smith.

Miller said she does not know whether the Columbus diocese was told of the allegations. She referred questions about Smith's hiring to Bishop James A. Griffin, who was attending a meeting of bishops and unavailable for comment.

A message was left Saturday at a number for Joseph Smith in Avon Lake.

Late last year, documents sent anonymously to the Cleveland diocese and a lawyer detailed how money from a Mentor accounting firm allegedly made its way into companies affiliated with Smith. Checks for "consulting fees," totaling $750,000, were written to the companies in a six-year period, according to the documents.

Smith worked for the Cleveland diocese for 20 years in the finance and legal office, Tayek said. He was chief financial officer for the past 10 years.

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[RFT1]

Kind of makes me glad that my parish is staffed by religous and is sort of an island in this diocese.

[Salvation]

Doesn't surprise me too much. Cleveland and Cincinati are zapped un my opinion.

[Tuco Ramirez]

How does staffing by religious protect your parish?

Have you seen the stories over the past few years out of the northeast? A lot of the thieves are religious; they have a lot more leeway in stealing (more access to funds, never prosecuted, etc.).

[mabelkitty]

You don't want anything that touched Cleveland.
If it weren't for Bill Mason's political ambitions, he would have done the right thing and investigated the more than 1,000 cases buried in the Anthony Pilla's closet. As such, he pursued ten cases and only a couple were retired clergy.
Corporate leaders have called for Pilla to resign, and because he refuses to do so, the Church is losing money.

[Diago]

bump, need to update.

[Religion Moderator]

I pulled your post. Cincinatti Enquirer is a Gannett publication - only titles and links are allowed.