Conn. Priest Pleads Guilty to Fraud

The Rev. Michael Jude Fay, a former priest, pleaded guilty to stealing hundreds of thousands of dollars from his church by setting up secret bank accounts.^[1] Fay pleaded guilty Wednesday to interstate transportation of money obtained by fraud, which carries a penalty of up to 10 years in prison, a $250,000 fine and required payment of restitution.^[2]

Federal prosecutors asserted Fay took between $1 million and $2.5 million over seven years, and while Fay disputed that he did admit taking between $400,000 and $1 million.^[3]

"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….My understanding is that it's by fraud," Fay said in court. ^[4]

According to an investigative report released last year by the Bridgeport Diocese, Fay shopped at Bergdorf Goodman, Saks Fifth Avenue, 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; furthermore the report stated that 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.^[5]

Fay and his federal criminal defense attorney, Lawrence Hopkins, declined to comment outside court. He was released on a $50,000 bond; sentencing is set for Dec. 4.^[6]

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 worth about a few hundred thousand dollars.^[7]

Transportation of stolen goods, securities, moneys, fraudulent State tax stamps, or articles used in counterfeiting is covered under 18 U.S.C. § 2314, where it states that whoever transports, transmits, or transfers in interstate or foreign commerce any goods, wares, merchandise, securities or money, of the value of $5,000 or more, knowing the same to have been stolen, converted or taken by fraud; or

whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transports or causes to be transported, or induces any person or persons to travel in, or to be transported in interstate or foreign commerce in the execution or concealment of a scheme or artifice to defraud that person or those persons of money or property having a value of $5,000 or more; or

whoever, with unlawful or fraudulent intent, transports in interstate or foreign commerce any falsely made, forged, altered, or counterfeited securities or tax stamps, knowing the same to have been falsely made, forged, altered, or counterfeited; or
Whoever, with unlawful or fraudulent intent, transports in interstate or foreign commerce any traveler’s check bearing a forged countersignature; or

whoever, with unlawful or fraudulent intent, transports in interstate or foreign commerce, any tool, implement, or thing used or fitted to be used in falsely making, forging, altering, or counterfeiting any security or tax stamps, or any part thereof—
Shall be fined under this title or imprisoned not more than ten years, or both.^[8]

This section shall not apply to any falsely made, forged, altered, counterfeited or spurious representation of an obligation or other security of the United States, or of an obligation, bond, certificate, security, treasury note, bill, promise to pay or bank note issued by any foreign government. This section also shall not apply to any falsely made, forged, altered, counterfeited, or spurious representation of any bank note or bill issued by a bank or corporation of any foreign country which is intended by the laws or usage of such country to circulate as money.^[9]

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^[1] John Christoffersen, Ex-Priest Pleads Guilty in Fraud Case, September 12, 2007, available at LEXIS, News Library, Wire News Services.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] 18 U.S.C. § 2314 (2007).
^[9] Id.