Trial date set in Cleveland diocesan fund kickback scheme case

Published: 2006-08-30

CLEVELAND (CNS) -- A Nov. 6 trial date has been set before U.S. District Judge Ann Aldrich for two former Cleveland diocesan employees accused in an alleged kickback scheme involving nearly $785,000 in diocesan funds. Joseph F. Smith, now finance director for the Diocese of Columbus, and his friend, Anton Zgoznik, who once worked under Smith, pleaded not guilty Aug. 23 to a total of 27 counts stemming from a two-year investigation into financial irregularities. The men were indicted Aug. 16 by a federal grand jury. The indictment alleges that Smith and Zgoznik conspired to defraud and obtain money from the Diocese of Cleveland and then tried to cover their actions by falsifying tax returns and other documents. Smith, 50, and Zgoznik, 39, together are charged with conspiracy to commit mail fraud, eight counts of mail fraud, one count of conspiracy to defraud the Internal Revenue Service and one count of obstructing tax laws. Smith also faces eight counts of money laundering and four counts of filing false personal income tax returns. Zgoznik faces four additional counts of aiding and assisting preparation of a false corporate income tax document and returns.

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