On August 16, 2006, Joseph H. Smith, former chief finance and legal officer of the Catholic Diocese of Cleveland was indicted by a federal grand jury in connection with an alleged kickback scheme that federal authorities believed netted him nearly $785,000.
The 23 count indictment alleged that Smith conspired to defraud the Cleveland Diocese and falsified tax returns and other documents. Smith was found guilty on six tax-related charges including conspiracy to defraud the Internal Revenue Service on July 3, 2008.
Smith was sentenced today, December 11, 2008, to one year and one day in federal prison.