Friday, July 16, 2010

Feds Accuse Beloved Ohio Priest of Hiding $1 Million

The Rev. Samuel Ciccolini has stepped aside as executive director of the Interval Brotherhood Home.

The well-known alcohol and drug treatment center announced the move in a statement Wednesday — the day after the Roman Catholic priest, better known as ''Father Sam,'' was charged in federal court with banking and tax-related offenses.

''The issues facing Father Sam involve his personal banking transactions and his individual tax returns,'' the statement said.

''Since this matter involves his personal activities, there has been no effect on IBH's financial condition. These issues do not include or impact IBH.''

The statement said Ciccolini, 68, who founded the nonprofit in Coventry Township in 1970 and has been its only executive director, ''has taken voluntary leave from IBH until this matter is resolved.''

It also called his service ''exemplary.''

Ed Stanford, assistant director of administration and finance at IBH, will serve as interim executive director in Ciccolini's absence.

Interval Brotherhood Home leaders met Wednesday morning with officials from Summit County Alcohol, Drug Addiction and Mental Health Services to share the news and assure them the criminal charges are not related to the nonprofit.

ADM, a taxpayer-supported agency, provides annual operating funding — $2.67 million this year — to the nonprofit. The total budget for IBH this year is $4.1 million, the agency said.

''We're confident that both the [IBH] Foundation and Interval Brotherhood Home have good fiscal controls and obviously are thoroughly audited on an annual basis,'' said Bill Harper, the executive director at ADM.

''And we're confident that the unfortunate situation with Father Ciccolini doesn't involve the Interval Brotherhood Home.''

The Akron priest has been charged with one count of structuring financial transactions to evade reporting requirements and one count of making and subscribing a false tax return.

He is accused of depositing $1,038,680 in bank branches in the Akron area from April 2003 to June 2003 by making 139 individual cash transactions, federal authorities say.

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.

Authorities contend Ciccolini deposited lower amounts so as not to trigger the reporting requirement.

Ciccolini also is accused of filing a tax return in 2004 claiming income for the previous year of $101,064, when it was $407,062, according to
the charge.

An arraignment date has not been set.

The Diocese of Cleveland issued a two-sentence statement Wednesday:

''This matter is in the hands of federal authorities. We have no further comment at this time.''

Federal authorities have declined to discuss details of the case.

It's unclear why Ciccolini would want to evade banking requirements, where he got more than $1 million and why the charges surfaced seven years after the alleged offenses.

Ciccolini's reported income from IBH Foundation Inc., a related nonprofit to the Interval Brotherhood Home, increased substantially in recent years.

He serves as administrator of the foundation, which had $15.5 million in assets in 2008, according to filings with the Internal Revenue Service.

In 2003, the foundation reported paying him $5,600.

Five years later, his reported annual compensation from the foundation soared to $83,414 with an average workweek of 10 hours.

The foundation supports the Interval Brotherhood Home, ''especially in the area of acquiring and/or building major fixed assets,'' according to the organization's tax filings.

In 2008, IBH reported paying Ciccolini $99,615, an increase from $96,719 the previous year and $85,922 in 2003, according to federal tax filings.

The Interval Brotherhood Home posted operating losses in recent years, the organization's federal income tax filings show.

IBH reported a loss of $54,069 on revenue of $4.1 million in 2008, the most recent year for which public information is available.

Ciccolini, a diocesan priest whose residence is at Immaculate Conception church in the Kenmore area of Akron, is on a retreat and unavailable for comment, the nonprofit has said.

''Our hopes and prayers are with him,'' Harper said.

''He has been an amazing role model and amazing influence on so many people struggling with addiction. It's unfortunate.''

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