Render Unto Rome_ The Secret Life of Money in the Catholic Church - Jason Berry [136]
Lennon arrived as a virtuous counterweight to the sleazy, unfolding narrative about church finances. On August 16, 2006, a federal grand jury indicted Anton Zgoznik and Joseph Smith (who then resigned as CFO of the Columbus diocese) on an array of counts for money laundering, mail fraud, and filing false income tax returns. A pivotal charge centered on a 1996 agreement in which Father John Wright, identified in the indictment only as “the then Financial and Legal Secretary,” agreed to pay Smith $270,000 above his salary, as a bonus for staying on the job. The bill of particulars stated:
The understanding was that the payment would be in lieu of any additional raises for the next five years, other than cost-of-living increases. ZGOZNIK participated in the arrangement by helping to urge the Financial and Legal Secretary to agree to the payment and by helping transfer the Diocese funds under the arrangement.1
An attorney for Wright said he had been “duped” and “unfortunately placed his trust in individuals that [sic] abused that trust,” reported the Plain Dealer. “He didn’t give Smith a raise and then say, ‘Go put it in a secret fund and don’t tell anybody about it.’ ”
Zgoznik’s companies got $17.5 million from the diocese between 1996 and 2003, prosecutors said. In return, Zgoznik paid $784,000 to companies owned by Smith. Those payments were kickbacks, prosecutors said.2
Reading the account, Charlie Feliciano shook his head. Father Wright, who idolized Joe Smith and played golf with him and Anton, needed urging by Anton to embrace Joe’s sweetheart deal? Wright officiated at Anton’s wedding; he baptized his baby boy. Although Feliciano was glad to see the wheels of justice finally turn, the indictment was odd in its reliance on the passive voice. A special investments account “was set up” using the diocese’s not-for-profit tax ID. The only check signers were Joe Smith—and Father Wright.
Every indictment has a narrative strategy. Prosecutors develop a story line for judge and jury as the investigation settles on its targets. The prosecutors choose the key witnesses, and documents, to build a case. If necessary, some witnesses get immunity. Successful testimony typically comes from people who were victims, witnessed crimes or the steps that led to crimes, or had a role in such acts and are eager to avoid prison. If Father John Wright was “duped,” why was Pilla passive about Joe Smith’s heading down the road to manage diocesan finances in Columbus after being sacked in Cleveland?
Catholic Charities and the Catholic Diocese of Cleveland Foundation issued a joint statement that funds were “being properly managed to benefit children, the elderly, people who are poor and so many other important ministries.” Financial reports were posted. The diocese announced full cooperation with the U.S. Attorney and said it was “taking steps to recover lost funds … Any suggestion that the Diocese of Cleveland or its leadership approved or knew of the conduct alleged in the indictment at issue is flatly wrong and inaccurate.”3
LENNON’S AGENDA TAKES SHAPE
On January 30, 2007, Bishop Lennon, his spokesman, and a nun on his staff met with the FutureChurch founders Father Lou Trivison and Sister Chris Schenk, along with two of their colleagues. They wanted to strike a dialogue for preserving parishes and foster cordial ties without conflict or censure from the bishop. In Pilla’s final year, the diocese had forced FutureChurch to vacate rented space at St. Mark parish; the group moved to a storefront office in the inner-ring town of Lakewood.
Bishop Lennon listened, nodding occasionally as Sister Chris cited a national study which found that 40 percent of merged parishes lost members, while churches that stayed open with “parish directors” did better.4 When she was done, Lennon noted that he’d been in Cleveland for eight months; why hadn’t he seen them before? Unsure whether it was a threat or a compliment, she took the question as rhetorical.