Prosecutor says Father Sam embezzled more than $1 million in Ohio

The Rev. Samuel Ciccolini embezzled more than $1 million from the Interval Brotherhood Home Foundation through an elaborate scheme that involved falsifying invoices and financial records, federal authorities say.

The well-known Catholic priest better known as ''Father Sam'' confessed to the nonprofit and paid back the money only after authorities launched an investigation into his conduct, according to a 14-page document filed Tuesday in federal court.The document contains details never revealed before in the case, including the amount stolen and how Ciccolini deceived the nonprofit by billing the Interval Brotherhood Home Foundation for construction work and equipment that had been donated.''The community held him in high regard and had a tremendous amount of faith and trust in him,'' Assistant U.S. Attorney Robert Bulford wrote. ''He used all of this goodwill to take advantage of the situation and embezzled funds from the charity.
''The scheme was an elaborate subterfuge. There was deception at all levels along the way. He falsified invoices. He falsified financial records. He issued false checks of the not-for-profit.''Ciccolini, 68, who founded the Interval Brotherhood Home in 1970 and served as its executive director, is scheduled to be sentenced Friday in federal court in Cleveland on income tax and bank-related charges.A plea agreement recommends 18 to 24 months in prison, although his attorneys have asked for only house arrest given his career of helping others and cooperation with authorities.He has not been charged with theft.
Stanford, current executive director of IBH, and Tim Killian, president of the foundation, declined to comment Wednesday, saying they believe it is prudent to reserve comment until after the sentencing hearing.
As part of his scheme, Ciccolini recorded fictitious expenses for construction work and equipment that had been donated at no cost to the nonprofit, the court filing says. He then issued checks for the work and equipment, and kept the money himself, it says.''These payments did not go to the contractors as indicated in the books and records of the foundation,'' Bulford wrote. ''Instead, they were converted by Samuel Ciccolini into cash and official bank checks which were deposited in Ciccolini's accounts.''Between 2002 and 2006, the priest deposited more than $900,000 into his personal accounts, the court filing says. Ciccolini confessed to the board that he took about $1.2 million, the document says.It's unclear what the priest did with the money. In typical embezzlement cases, people spend it but he apparently kept the cash on hand because he was able to pay it back to the foundation, Bulford said.
Bulford also wrote that the priest used the foundation ''as a vehicle to increase his wealth.''
Authorities have said Ciccolini accumulated more than $1 million in personal wealth through bequests and other personal gifts given to him over his religious career.It's unclear what Ciccolini, who had few expenses as a priest, did with the embezzled money. In typical embezzlement cases, people buy houses and cars or gamble it away, but he apparently kept the cash on hand, because he was able to pay back the money to the foundation, Bulford said Wednesday.Ciccolini has not been charged with theft. Officials would not discuss that issue.Peter Cahoon, an attorney for Ciccolini, declined to comment on the court filing.Ciccolini's attorneys admitted in a court filing earlier this week that he had ''improperly transferred'' funds to his personal accounts.Ed Stanford, current executive director of IBH, and Tim Killian, president of the foundation, also declined to comment, saying they believe it is prudent to reserve comment until after the sentencing.
IBH officials previously have stated the case involved Ciccolini's personal finances and had nothing to do with the foundation.Ciccolini stepped aside as executive director of IBH after he was charged earlier this year with one count of structuring financial transactions to evade reporting requirements and one count of making and subscribing a false tax return. He pleaded guilty in July.Federal authorities say he deposited more than $1 million in bank branches in the Akron area from April to June 2003 by making 139 cash transactions.Banks are required to report deposits of more than $10,000 to federal authorities under the Bank Secrecy Act, which is designed to catch money laundering. Ciccolini deposited lower amounts to avoid the reporting requirement.He also filed a tax return in 2004 listing his income for the previous year as $101,064 when it was $407,062. Although he faced only one income tax charge, he has admitted other years' returns also were incorrect.