By Stephen Appezzato
LINCROFT – The Church of St. Leo the Great filed a civil lawsuit earlier this month against its former finance director, accusing him of misappropriating more than $1.5 million in parish funds over a period of at least six years and using the money to cover personal expenses ranging from home renovations to sports tickets.
The filing was followed by an online petition from parishioners, calling for a change in its church leadership.
The suit, filed Aug. 8 in Superior Court, names defendant Joseph Manzi, who served as the church’s director of Finance, Operations and Development until his termination June 26, 2025.
According to the complaint, Manzi began that position March 1, 2014. In his role, he reported directly to the Rev. John T. Folchetti and oversaw the administration of the parish’s operating account, including payment of expenses, payroll, accounts receivable, human resources and bookkeeping.
The lawsuit alleges that instead of fulfilling his fiduciary duty, “Manzi systematically, secretly, and dishonestly utilized parish funds for his own personal benefit.”
St. Leo’s said the alleged actions were discovered on or about July 31, 2025, when the parish bursar and bookkeeping staff investigated a charge on a parish credit card being closed. Upon review, they found charges tied to a Cadillac owned by Manzi, according to the lawsuit.
According to the plaintiff, after a deeper review more than six years of unauthorized spending was uncovered. The complaint states that Manzi used parish credit card accounts to pay for “tickets to sporting events; personal vehicles; construction projects on his personal home; landscaping; gift cards; expenses related to his daughter’s wedding; his own personal taxes; meals and cigars.”
The complaint further alleges Manzi destroyed some monthly credit card statements and used parish funds to pay expenses directly through automatic debits.
In the filing, Parish offi- cials contend the total uncovered to date exceeds $1.5 million, and that Manzi has not reimbursed the parish. The church also claimed that operating funds may have been used to cover mortgage payments and renovation costs on Manzi’s Atlantic Highlands home, which is valued at about $1.4 million.
St. Leo’s is being repre- sented by Timothy M. Jabbour of the law firm Tressler LLP in Morristown. At this time, no attorney for Manzi has been named in the case to provide comment about the matter.
The church is pursuing several remedies in court, including compensatory, consequential (indirect losses) and punitive damages, equitable disgorgement of Manzi’s compensation dating back to 2019 (repayment of wages), a constructive trust on his home, and an order requiring him to return all parish property in his possession, including financial records, emails and employee data. The parish is also seeking attorneys’ fees, costs and interest.
In a statement from the Diocese of Trenton posted on St. Leo’s website, the church said concerns about possible financial improprieties surfaced recently and were confirmed through a preliminary investigation by the parish and the diocese.
“The Parish and Diocese took immediate steps to address them. These allegations were reported to both local and state law enforcement. Civil remedies are being explored in connection with all misappropriated funds,” the statement reads.
“The Parish and Diocese are continuing to investigate this matter and have committed full cooperation with law enforcement efforts. As this is a subject of a law enforcement investigation and civil litigation, we are not able to comment further at this time.”
In a letter addressed to parishioners, church leadership said the lawsuit “will not prevent Saint Leo the Great Parish from working every day to live our mission – to serve parishioners and the community in God’s name with the greatest of love and compassion.”
“It is a time to give thanks for the many faithful families who make this parish the wonderful place that it is. We ask you all to stand together in our shared faith and to pray for a swift and just conclusion to this troubling chapter,” the letter said.
The parish also clarified that “only one individual” is named in the lawsuit – the former finance director. “We know of no involvement by any other staff members in this matter,” the letter stated.
Following news of the civil case, an online petition was launched calling for new parish leadership. The petition closed with 242 signatures supporting a letter sent to the Bishop of Trenton calling for the removal of Folchetti as pastor “to restore trust, accountability, and transparency in our leadership.”
The letter notes Manzi’s alleged misappropriation of funds occurred under Folchetti’s oversight, and “the failure to detect and prevent such a massive financial loss over many years has gravely undermined the trust of our parish and school community.”
St. Leo the Great parish operates a kindergarten through eighth-grade school on the church’s campus.
“In addition, parishioners and parents have not received timely, direct communication from parish leadership regarding this lawsuit or its potential implications for the parish and school. Tuition increases and fundraising efforts continue without transparency about how our community’s funds are safeguarded,” the letter continues.
The latest update on the petition lists numerous leaders of the Diocese to whom the letter was sent and requests they bring the matter to Bishop David M. O’Connell.
When asked about this, the Diocese referred The Two River Times to their online statement, noting they cannot comment on the matter as it is the subject of litigation.
It remains unclear whether St. Leo’s or the diocese will pursue criminal charges in addition to the civil case. When asked about this, the Monmouth County Prosecutor’s office referred The Two River Times to the state Division of Criminal Justice and did not provide comment.
The parish said only that it is cooperating fully with law enforcement.
The article originally appeared in the August 21 – 27, 2025 print edition of The Two River Times.
