CLEVELAND -- Joseph H. Smith, who worked for the Cleveland Catholic Diocese for several years, faces a 27-count indictment because he allegedly conspired to defraud the agency and the Internal Revenue Service.

Anton Zgoznik was also indicted.

Smith is charged with 23 counts and Zgoznik faces 15 counts. The charges include conspiracy to commit mail fraud, money laudering and making false personal income tax returns.

The indictment also said that Smith received kickbacks from Zgoznik in the amount of about $784,627.

Officials said Smith and Zgoznik conspired to defraud the diocese through a scheme involving outsourcing business from the diocese and its constituent organization to companies controlled by Zgoznik.

The indictment also alleges that the diocese paid about $17 million to Zgoznik's companies from 1996 through 2003.

Smith is currently the director of finance at the Columbus Diocese.