NEW HAVEN, Conn. (AP) – A former Darien priest pleaded guilty Wednesday to stealing hundreds of thousands of dollars of church money by setting up secret bank accounts to pay for a life of luxury, including traveling around the world and buying a condominium.
Rev. Michael Jude Fay, who resigned last year as pastor of St. John Roman Catholic Church, pleaded guilty in federal court to interstate transportation of money obtained by fraud. He set up hidden accounts he called the Bridget Fund and the Don Bosco account to commit the fraud.
“A religious leader who secretly uses contributions made to a church for his own personal benefit destroys the confidence and trust of everyone who donates money to a religious institution or charity,” said U.S. Attorney Kevin O’Connor. “Prosecutions of this kind of serious criminal conduct should serve as a message that no one is above the law.”
Investigators working for the Bridgeport Diocese last year said that Fay, 56, used church money for limousines, stays at top hotels around the world, jewelry and clothing from Italy. He also bought a condominium in Florida with another man.
Prosecutors said Fay took between $1 million and $2.5 million over seven years, but the priest has disputed that. He admitted to taking between $400,000 and $1 million.
Fay, dressed in a dark suit with a bandage on his hand, said he has undergone chemotherapy for prostate cancer but learned Wednesday that the treatment was not working.
“It’s my understanding, your honor, that I used church monies, parish monies for means and for needs other than means and needs of the parish or the parishioners of the parish,” Fay said. “My understanding is that it’s by fraud.”
Fay and his attorney, Lawrence Hopkins, declined to comment outside of court.
The Bridgeport Diocese last year released its investigators’ report on the priest’s lavish lifestyle.
Bridgeport Bishop William Lori, who ordered the investigation by Deloitte Financial Advisory Services, said he was shocked and angered by the findings.
Lori has faced criticism for his handling of the scandal, especially when it emerged that another priest and the church bookkeeper hired a private investigator to look into Fay. The pair said they decided to hire the investigator after they met with Lori and Fay was not removed, according to the report.
Lori said after he was made aware of potential financial misconduct he took swift action to stop Fay from using church credit cards, notify civil authorities and to force his resignation.
The church report, which was limited to the past six years, calculated the “potential financial loss” at $1.4 million.
Fay, pastor since 1991, told church officials that the money was used to help needy parishioners and for other legitimate church-related expenses. The report acknowledges some of the money may have been used for legitimate expenses, but said Fay failed to document his claims.
Fay also said he received money from parishioners, his family and the other man, Cliff Fantini. Fantini has described himself as a “very good friend,” but denied the two men were romantically involved.
Fay also charged $500 fees when he gave lectures.
Lori, who has met with parishioners in response to the scandal, noted that priests are to lead simple lives free of luxuries. But the report painted a picture of a priest who felt entitled to a lifestyle that more closely resembled those of some of his wealthy parishioners.
Fay shopped at Bergdorf Goodman, Saks Fifth Avenue and Nordstrom, drove a Jaguar, attended a sports club, bought jewelry from Cartier, spent $130,000 for limo rides for himself and his mother, and stayed at hotels such as the Ritz Carlton, Hotel De Paris and the Four Seasons Hotel, the report found. He spent tens of thousands of dollars on home furnishings and meals and more than $20,000 to mark the 25th anniversary of his ordination, according to the church report.
He faces up to 10 years in prison and a $250,000 fine when he is sentenced on Dec. 4. He also must make restitution. Fay was released on a $50,000 bond.
The diocese issued a statement Wednesday thanking federal authorities for investigating the case.
“We pray that today’s announcement will help the Saint John Parish community put a sad chapter of its history behind it and finalize the healing process that has been so ably overseen by its pastor, Father Frank McGrath,” the diocese said.
Fay remains unauthorized to function as a priest, church officials said. The parish has received restitution in the form of cash, real estate, and personal property with an approximate value of a few hundred thousand dollars, church officials said.
Church officials also said they have implemented stronger financial controls and procedures.
AP-ES-09-12-07 1747EDT
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