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| News Bishop Pilla 
      and Federal Case Diocese and Bishop Emeritus Anthony M. Pilla Respond to Recent Newspaper Stories Concerning Federal Case involving Former Employees. Diocese of Cleveland February 26, 2007 http://dioceseofcleveland.org/index.php?option=com_content&task=view&id=272&Itemid=326 On February 25th and February 18th, The Cleveland Plain Dealer Newspaper published stories concerning motions filed in a Federal court case by two former employees charged with conspiracy money laundering, fraud and tax evasion. The following statement serves to clarify the diocese position on this matter. In the case of the United States of America vs. Joseph H. Smith and Anton Zgoznik, the defendants are facing serious criminal charges in connection with a scheme to defraud the Diocese of Cleveland. The Diocese wants the defendants to have a fair trial without undue publicity; however, we are compelled to respond to the scurrilous accusations being made publicly by the defendants. It is a common tactic – but nevertheless – an unfortunate one. In motions filed in Court, Mr. Smith and Mr. Zgoznik have resorted to false statements, half truths and innuendo against those associated with the Diocese, including Bishop Emeritus of the Diocese, The Most Rev. Anthony M. Pilla and Father John Wright in an apparent attempt by the defendants to explain their conduct. Neither Bishop Pilla nor Fr. Wright participated in, approved, or was aware of Mr. Smith’s and Mr. Zgoznik’s illegal conduct.  Bishop Pilla stated, “During my tenure as Bishop of Cleveland, 
        Joseph H. Smith served as Chief Legal Counsel and Diocesan Finance Director 
        and I placed my full trust in him. My judgments in these matters were 
        based on Mr. Smith’s advice and counsel. I and the Diocese of Cleveland 
        cooperated fully with the federal authorities who investigated Mr. Smith’s 
        and Mr. Zgoznik’s conduct, as well as their explanations and other 
        allegations made by them. The diocesan records and all employees were 
        open and available to federal investigators. The result of that investigation 
        was the charges against Mr. Smith and Mr. Zgoznik only, and to my knowledge 
        no other improprieties were found.”  | ||
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