Friday, August 24, 2007


A former accountant for the Cleveland Catholic Diocese testified Thursday that his business partner, Anton Zgoznik, routinely inflated bills and doctored invoices submitted to the diocese.

Zgoznik is on trial in U.S. District Court for charges related to what prosecutors say was a kickback scheme with the diocese's former chief financial officer, Joseph Smith, who will stand trial later this year.

During his second day on the witness stand, Zrino Jukic said the diocese paid him and Zgoznik $17.5 million over five years. Many of those payments were based on falsified billing receipts, Jukic said.

Read the whole story...

Ok, if the bills were inflated and the diocese is innocent of corruption, why did the diocesan accountants pay the inflated bills?

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