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Former Catholic Diocese Accountant Arranged Kickbacks

POSTED: 2:56 pm EDT October 2, 2007
UPDATED: 3:33 pm EDT October 2, 2007

A jury reached a verdict Tuesday in the trial of a former accountant for the Cleveland Catholic Diocese who faced conspiracy and other charges concerning $784,000 in payments made to a diocese official.

Anton Zgoznik, 40, of the Cleveland suburb Kirtland Hills, was found guilty of conspriacy and 14 counts that he arranged unauthorized kickbacks to his former boss, Joseph Smith, 50, when Smith was chief legal and financial officer for the diocese.

Zgoznik sat calmly with his hands folded on the defense table while the verdict was read in federal court. He showed no emotion other than a slight frown.

The U.S. District Court jury started deliberations Friday afternoon. After a weekend break, jurors resumed Monday morning and returned with a verdict Tuesday afternoon.

The defense said during the five-week trial that the payments amounted to extra executive compensation authorized by church officials in a pattern of secret financial dealings.

Zgoznik tearfully denied wrongdoing during his testimony at trial and said he was a middleman who handled payments between diocesan leaders and a valued lay employee who could have commanded a higher salary elsewhere.

Zgoznik testified the diocese boosted Smith's compensation through him but that he did not know it was wrong to do so. He said he was loyal to the diocese when the payments were made.

The prosecution portrayed the payments as unauthorized kickbacks in return for accounting work contracted out to Zgoznik's private business by the diocese.

The diocese, which includes eight counties and about 780,000 Catholics, has claimed it was victimized by a scheme.




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