Bethany D'Erario, bookkeeper at the time, and the church's Parochial Vicar Rev. Michael Madden, spearheaded the effort to expose Fay, hiring a private investigator in May 2006. The investigator's report leaked to the media, detailing Fay's lavish lifestyle, for which parishioners footed the bill.
Details of D'Erario's proposed lawsuit have not been made public, though statements from those involved indicate that it is related to her resignation from St. John Parish in August 2006.
"No lawsuit has been filed yet," D'Erario's representative Michael Sherman said, "but we have sent a letter to the diocese and the church."
Sherman, a Stamford-based attorney, would not comment further on the nature of the case, saying he did not feel comfortable doing so "until or if something is filed."
Attorney Daniel L. Schwartz, of Day Pitney LLP in Stamford, acknowledged the receipt of the letter on behalf of the diocese and church and stated that he is in the process of preparing a letter in response to D'Erario's.
"We have reviewed the claims that have been threatened and we have determined they come without merit," Schwartz said.
Schwartz released a statement that can be viewed on the diocese Web site stating, "It would be inappropriate to discuss the details [of the letter] at this time."
The statement also notes that the letter is the first time D'Erario has broached the subject of her resignation since leaving the parish.
"We note that Mrs. D'Erario voluntarily resigned from Saint John Parish in August 2006, approximately 18 months ago, and this is the first time that she has raised any claims regarding her resignation."
Fay pleaded guilty in December 2007 to interstate transportation of money obtained by fraud and was sentenced to more than three years in prison. Fay was accused of stealing $1.3 million from the parish from 1999 to 2006.
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