Hughes pleads guilty to theft, tax fraud

BY LAYLI WHYTE
Staff Writer

The Rev. Hughes RUMSON - After pleading guilty to three counts of a 27-count indictment, the Rev. Joseph Hughes, former pastor of Holy Cross Church, faces a maximum sentence of 20 years in state prison.

At his plea hearing May 4, Hughes admitted to theft by deception, a second-degree crime, and filing fraudulent tax returns and failure to pay state income taxes, both third-degree crimes.

His sentencing will take place on June 2 in the courtroom of Superior Court Judge Bette E. Uhrmacher.

Assistant Prosecutor John F. Loughrey said that the state recommends a five-year prison sentence for Hughes.

Hughes, 61, would also be expected to repay $2 million to Holy Cross Church, $120,229 in back taxes for the years 1997 through 2004, and fines of $180,000.

In a written statement, the Rev. Michael Manning, Hughes' replacement at Holy Cross, said that parishioners are relieved to now have all the facts about the case.

"The facts hurt," according to Manning, "but eventually will hasten the healing already begun and promote an atmosphere of openness and honesty in the parish. We pray for Father Hughes and those whom his actions harmed."

The original indictment brought by the Prosecutor's Office included eight second-degree counts of theft by deception and one third-degree count of theft by deception, as well as 18 tax-related charges for filing false New Jersey State tax returns and failure to pay state taxes for each calendar year, beginning in 1997 and ending in 2004.

Hughes turned himself in to the Rumson Police Department in November 2004, after an audit of Holy Cross by the Diocese of Trenton revealed financial incongruities and misappropriations in the church's bookkeeping, according to former First Assistant Prosecutor Robert J. Honecker Jr., who held the press conference in November after the arrest.

The audit came as the result of a proposal by Hughes to expand Holy Cross Church and school.

As part of that audit, Hughes was required to disclose all bank accounts in the church's name. But he allegedly had a previously undisclosed bank account at Shrewsbury State Bank in the name of Holy Cross, and all bank statements were mailed to a post office box in Sea Bright, accord-

ing to the Prosecutor's Office.

Last week, Hughes admitted that he had, in his position at the church, overseen parish funds and had control over the accounts in the name of Holy Cross Church.

According to Honecker, when that account was discovered and reviewed, it was found that a great deal of personal expenses were paid out of that account.

Hughes allegedly used nonparish credit cards for personal expenses amounting to $390,000 and checks written out of the bank account to cash totaling $137,000. There had also allegedly been transfers from other parish accounts into the Shrewsbury State Bank account.

Honecker said that the account was unknown to the parish bookkeeper.

It was found that during the previous three years, Hughes allegedly spent in excess of $500,000 of church money, much of which was donations and fundraising proceeds, although the diocese contends that the funds raised for the expansion of the church were not touched by Hughes.

Hughes allegedly spent the money on expensive cars, lavish vacations, fancy dinners and jewelry, according to the Prosecutor's Office.

Hughes also allegedly bought a car and jewelry and funded several vacations and dinners for David Rogers, 25, Howell, who is listed on church records as the operations supervisor with a salary of $50,000 annually.

The mortgage on Rogers' home on North Woods Place, in Howell, was apparently paid for by Hughes, who also allegedly spent $58,000 on a 2004 BMW for Rogers while leasing a similar car for himself, according to Honecker.

Rogers has not been charged with any crime.

The church expansion process, which was spearheaded by Hughes, and which led to the audit, had been in the works for more than a decade and was finally approved in April 2004.