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  Diocese Was Overbilled, Accountant Says

By James F. McCarty
The Plain Dealer
August 23, 2007

http://blog.cleveland.com/metro/2007/08/diocese_was_overbilled_account.html

A former accountant for the Cleveland Catholic Diocese testified in U.S. District Court today that his business partner, Anton Zgoznik, routinely inflated bills and doctored invoices that he submitted to the diocese.

Zgoznik is on trial for charges related to a kickback scheme with the diocese's former chief financial officer, Joseph Smith, who will stand trial later this year.

Zrino Jukic, during his second day on the witness stand, said the diocese paid him and Zgoznik $17.5 million over a five-year period. Jukic said many of those payments were based on falsified billing receipts.

Another potential government witness with knowledge of the case has said Zgoznik may have charged the diocese three times the amount due for the actual work that was performed. In return, prosecutors say, Zgoznik kicked back $784,000 to Smith.

"With some projects, every single bill was inappropriate," Jukic testified.

Defense attorney Bob Rotatori asked Jukic if he turned on his friend, Zgoznik, in an attempt to avoid prison. Jukic has not been charged with any crimes.

"I have no expectations," Jukic responded. "I hope my cooperation will be viewed in a favorable light."

 
 

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