Trial begins for Cleveland Diocese's former chief financial officer

Published: 2008-05-16

CLEVELAND (CNS) -- The Cleveland Diocese's one-time chief financial officer belied the trust of diocesan officials in engineering a kickback scheme involving nearly $785,000 in diocesan funds, Assistant U.S. Attorney John Siegel said in his opening salvo in the trial of Joseph Smith, the former CFO. "It was easy for people to trust him and trust his judgment," Siegel told the 11-woman, five-man jury in U.S. District Court in opening arguments May 14. But, he explained, that trust was misplaced. "Mr. Smith was making decisions for his own personal interest instead of what was best for the diocese," he said. Smith, 51, is charged with 23 felony counts including conspiracy to commit mail fraud and conspiracy to defraud the IRS, mail fraud, money laundering, making false personal income tax returns and endeavoring to obstruct tax laws. In response, defense attorney Phillip Kushner gave sympathetic opening arguments, even introducing Smith's wife, Ann, and the couple's two children who were in the courtroom. He said evidence will show that Smith did nothing illegal.

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