Ex-CFO says Bishop Pilla Had Hidden Account

Diocese denies charges by indicted financial officer

Former Cleveland Catholic Bishop Anthony Pilla received $177,000 in money and furniture over a decade from an off-the-books church account set up to hide the transactions, a former diocesan official said.

The accusation came in a 40-page motion filed Friday in U.S. District Court by lawyers representing Joseph Smith, the former diocesan chief financial officer. Lawyers for Anton Zgoznik, a former diocesan employee, later joined the motion.

Smith and Zgoznik are accused of defrauding the Cleveland Catholic Diocese out of at least $784,000 over seven years in an elaborate kickback scheme. The two men maintain they simply followed orders from diocesan supervisors, including Pilla, and are taking the fall for the church's poorly managed finances.

A diocesan spokesman denied Smith's accusations.