Catholic lobbyist resigns over ’07 securities fraud conviction

RENO - A legislative lobbyist for the Nevada Catholic Conference resigned after the diocese began investigating his previously undisclosed conviction in a securities fraud case.

John Cracchiolo had represented the conference and its bishops as a registered lobbyist in the Legislature since 2007. He told the Reno Gazette-Journal that talking about what happened was "too painful for us as a family" and declined to comment further.

His criminal record didn't show up in a background check at the time of his hiring, according to Brother Matthew Cunningham, chancellor for the Diocese of Reno. A review began about three weeks ago after a tip from a caller, Cunningham said.

"He was also volunteering at Saint Gall Catholic Church in Gardnerville, teaching religious education," Cunningham said.

Diocese officials learned Cracchiolo and his partner in Irvine, Calif.-based Endocare Inc., a company that made a device used to treat cancerous tumors, were indicted in April 2007 by a federal grand jury in Santa Ana, Calif. The 27 counts included wire fraud, securities fraud and lying on financial records.

In a deal with prosecutors in August 2008, Cracchiolo pleaded guilty to one felony count of obstructing a proceeding with the Securities and Exchange Commission. He was sentenced July 13, 2009, to three years of probation, court records show. He also was ordered to pay back $60,715 collected through a fraud scam, $10,378 in interest and a $50,000 civil penalty.