Former assistant treasurer convicted of defrauding Cleveland Diocese

Published: 2007-10-04

CLEVELAND (CNS) -- A former assistant treasurer for the Cleveland Diocese was convicted in federal court Oct. 2 for his part in a kickback scheme to defraud the diocese and the Internal Revenue Service. Anton Zgoznik, 40, of Kirtland Hills showed no emotion as the verdict was read in Judge Ann Aldrich's packed courtroom. The jury took only a day and a half to find Zgoznik guilty of 15 federal counts including conspiracy to commit mail fraud, mail fraud, conspiracy to defraud the IRS, obstructing tax laws, and assisting in the preparation of false corporate income tax documents and returns. Assistant U.S. Attorney John Siegel said he was pleased with the verdict. However, he would not comment on what sentence he would recommend or whether Zgoznik will be asked to testify against co-defendant Joseph Smith, a former diocesan chief financial officer who is accused of 23 counts in the same alleged kickback scheme. Smith, who had been attending the trial daily, was not in the courtroom for the verdict. His trial will be at a later date.

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