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  Jury Now Has Diocese Kickback Case

By James McCarty
Plain Dealer
September 28, 2007

http://blog.cleveland.com/metro/2007/09/jury_now_has_diocese_kickback.html

More than five weeks of testimony and thousands of documents should be enough evidence to convict a former accountant at the Cleveland Catholic Diocese of a criminal kickback scheme, Assistant U.S. Attorney John Siegel told a jury in his closing arguments Friday.

But if the jurors in federal court need more to convict Anton Zgoznik, Siegel urged them to listen again to a secretly-recorded 17-minute conversation between the defendant and his former business partner, Zrino Jukic, in which they discussed a plot to hatch a defense.

On the recording, Zgoznik can be heard pleading with Jukic to stick together and get their stories straight. Zgoznik testified earlier this week that the $784,000 he paid to former diocesan Chief Financial Officer Joseph Smith wasn't kickback money, but was actually executive compensation financed by the diocese and authorized by the Rev. John Wright, Smith's former boss and predecessor.

When Jukic denied on the recording that he ever spoke with Wright or Smith about the secret payments, Zgoznik became flustered.

"Zrino, let me tell you something, we're done if you don't say" Wright authorized the payments, Zgoznik said. "We'll say they wanted us to keep a confidential payroll going on...because they wanted to compensate the key executives of the diocese.

"It's gonna be our word against theirs."

In mounting a defense against the allegations, attorney Robert Rotatori told the jury the same recording contains evidence that Zgoznik was telling the truth about the payments.

"Zrino, we did not kick back any money," Zgoznik said at one point on the recording.

"I know, I know, absolutely none," Jukic replied. "We got sucked in. We didn't do anything."

Zgoznik, 40, of Kirtland Hills, is charged with multiple counts of conspiracy, money laundering, mail fraud and obstruction of justice. Smith, 50, of Avon, is scheduled to stand trial on similar charges at a later date.

Contact: jmccarty@plaind.com.

 
 

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