Archdiocese Denies Priest Was Framed : Courts: The Catholic Church reacts angrily to Father David Piroli’s claim that embezzled cash was planted in his rooms and car.

Reacting angrily to a Simi Valley priest’s allegation this week that another priest framed him for embezzlement, the Catholic Archdiocese of Los Angeles attacked the claim Thursday as “a gross injustice” and said there is no proof to back it up.

Father David Dean Piroli, 37, is on trial for charges that he embezzled $60,000 in parishioners’ donations from two Ventura County churches--St. Peter Claver in Simi Valley and Sacred Heart in Saticoy.

On Tuesday, attorney Richard Beada said in court he will defend Piroli with a countercharge--that Father James McKeon, former head pastor at St. Peter Claver, was actually stealing the money and planted the cash in Piroli’s car and rectory rooms because Piroli was about to blow the whistle on him.

McKeon had access to the same collection money and church bank accounts as Piroli, Beada argued, and worried that Piroli was going to report to the diocese that he was skimming so much cash that “the church (was) on the verge of collapse.”

Beada also told the court he would have witnesses testify that McKeon was seen at a West Hollywood gay bathhouse. He gave the judge a videotape that he said proved that assertion.

Beada said McKeon apparently was stealing money from the church to support this activity as “a regular part of his lifestyle.”

Ventura County Superior Court Judge Allan L. Steele said he would allow Beada to use the counter-allegations to defend Piroli, but he refused to let jurors see or hear any evidence concerning allegations of homosexuality. McKeon has declined to comment.

Steele also rejected the prosecution’s bid to show jurors evidence that a male prostitute was the man who was with Piroli when Hollywood police arrested him in May, 1992, and found small amounts of cocaine and $10,000 cash in his church car.

Steele said Deputy Dist. Atty. Mary Peace can argue that Piroli was close with Israel Palacios, but unless she produces a record of a conviction she cannot say that Palacios was a prostitute.

But on Thursday, Father Gregory Coiro, spokesman for the archdiocese, issued this written statement:

“As the victim of the crimes for which Father David Piroli is on trial, the Archdiocese is reluctant to comment on the case which is being competently prosecuted by the Ventura County District Attorney’s Office.

“However, considering allegations made by the defense attorney, Richard Beada, we must declare in no uncertain terms that we are just as appalled as Assistant District Attorney Mary Peace who called Mr. Beada’s assertions ‘outrageous and unsupported.’ ”

The archdiocese statement concluded, “It is a gross injustice when an individual, who is not on trial, is victimized in open court by allegations that are unsubstantiated and which are so defamatory of one’s good name.”

Coiro declined any further comment, saying, “Other than the statement, we are saying nothing else about this case.”

Beada, who has been barred by a court-imposed gag order from making further comment on the case, could not be reached Thursday.

Jury selection continued Thursday, and testimony is expected to begin next week. Piroli faces two felony counts of grand theft.