Former Cleveland diocesan official indicted in alleged kickback scheme

Published: 2006-08-18

CLEVELAND (CNS) -- The former chief finance and legal officer of the Cleveland Diocese was indicted by a federal grand jury Aug. 16 in connection with an alleged kickback scheme that authorities say netted him nearly $785,000. Joseph F. Smith, now the finance director for the Diocese of Columbus, was named in a 23-count indictment. Smith's friend and former Cleveland diocesan employee Anton Zgoznik was charged with 15 counts in the indictment. The indictment alleges that the men conspired to defraud and obtain money from the Cleveland Diocese and then tried to cover their actions by falsifying tax returns and other documents. Both Smith, 50, and Zgoznik, 39, are charged with mail fraud, conspiracy to commit mail fraud, obstruction of tax laws and conspiracy to defraud the Internal Revenue Service. Smith, who lives in the Columbus suburb of Dublin, also is charged with money laundering and filing false personal income tax returns. Zgoznik also faces charges of aiding and assisting preparation of a false corporate income tax document and returns.

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