SEC sues Washington Archdiocese's CFO for alleged fraud while at AOL

Published: 2008-05-21

WASHINGTON (CNS) -- J. Michael Kelly, chief financial officer of the Archdiocese of Washington, is among eight former America Online executives who have been named in civil lawsuits filed by the Securities and Exchange Commission in connection with an alleged accounting scheme that inflated the company's reported advertising revenues. The SEC filed one suit against Kelly, former CFO at AOL Time Warner, and three other former executives May 19 in federal court in New York City. A second lawsuit named four other former executives, but the SEC said that group settled the suit. Attorneys for Kelly and the others named with him chose not to settle their lawsuit because they said they did not participate in any illegal activity, according to published reports. Archdiocesan communications director Susan Gibbs told Catholic News Service May 20 that news about the lawsuit became known soon after it was filed. She said Kelly has been associated with the archdiocese and has served on the archdiocesan Catholic Charities board for two years. He has worked pro bono as archdiocesan CFO for the last year and has been assisting with the reorganization of the finance department as a permanent CFO moves into the position, she explained.

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