-Caveat Lector-

Priest Charged With Smuggling $2.4B

By TOM HAYS
.c The Associated Press

NEW YORK (AP) - A Catholic priest who took a vow of poverty was charged
Wednesday with trying to smuggle into the country $2.4 billion in fake
Treasury notes.

The Rev. Mario Beato-Prieto, 35, a Spanish citizen who was running a
parochial school in the Philippines, was arrested Tuesday at Kennedy Airport
after U.S. Customs agents discovered he was carrying the fake currency in his
luggage.

Prosecutors said the priest tried to sell 24 phony $100 million notes through
a broker. He also had $2,000 in cash, plus a document indicating he had
access to another $65 billion in fake currency.

But the notes looked more like $100 million bills adorned with a likeness of
Grover Cleveland, marred by typos and runny ink.

They were confiscated after the priest arrived on a flight from South Korea.

It was not immediately clear what the penalty Beato-Prieto would face if
convicted.

The bald, skinny priest was wearing faded blue jeans Wednesday when he
appeared for arraignment in Brooklyn federal court. After he pleaded innocent
to a charge of foreign transport of false documents, two fellow Spanish
priests - like Beato-Prieto, members of the Augustinian order - asked the
Magistrate Cheryl Pollak to release him into their custody.

``It's very nice two priests are here, but there's obviously something about
this defendant they don't know,'' she said.

Defense lawyer Abraham Clott also explained that the church could not raise
bail because Augustinians take a vow of poverty.

The judge said she would free Beato-Prieto on Thursday if the four priests
living at the Holy Rosary rectory signed a $25,000 bond. The defendant would
be under church arrest, confined to the rectory and the chapel when not in
court.

At the request of the priests, the judge also agreed that Beato-Prieto could
help say Mass.

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