A judge in Salerno handed the 77-year-old prelate a ten-month suspended sentence on 18 July.
He and two other men were charged with defrauding the Region of Campania of more than €2.5 million in public funds in order to refurbish an archdiocesan community centre and transform it into a luxury seaside hotel.
The fraud charges stem from 2006, when the archdiocese was in the midst of restoring a non-profit holiday village it has long operated on Salerno's southern coast.
The archdiocese stood to profit by transforming its rustic holiday campground into an up-market hotel.