The diocese says the Rev. Michael Jude Fay died on Saturday morning. Fay, who had prostate cancer, was serving a three-year sentence at Butner Federal Correctional Complex in North Carolina after being convicted in December 2007.
No further details were available.
Fay's death came a day a judge refused to dismiss a suit against the diocese by a former bookkeeper at St. John Roman Catholic Church. Bethany D'Erario says she was harassed for exposing Fay's crimes.
Fay set up secret bank accounts and spent the money on international travel, expensive gifts and a Florida condominium.
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