Giuliani Defends, Employs Priest Accused of Molesting Teens

In addition to the allegations that Priest F was personally involved in the sexual abuse, the grand jury also said that Priest F became instrumental in a church policy that used "deception and intimidation" to keep the church scandal quiet.

Click here to see photos of Giuliani and the Priest.

Placa served as a lawyer for the diocese in dealing with allegations of abuse against other priests and, according to the grand jury report, claimed he had saved the church hundreds of thousands of dollars in his handling of possible litigation.

Lawyers for alleged victims say Placa would often conduct interviews, in his priest garb, without making it clear he was the church lawyer.

"He was a wolf in sheep's clothing," said Melanie Little, a lawyer for several alleged victims of sexual abuse by other priests in the diocese.

"He was more concerned with protecting the priests, protecting the reputation of the diocese and protecting the church coffers than he was protecting the children," said Little.

Since going to work for Giuliani Partners, the former mayor and the priest have continued to be close.

Placa accompanied Giuliani and his wife Judith on a trip to Rome earlier this year.

Through a spokeswoman at Giuliani Partners, Sunny Mindel, Placa declined requests to comment on the allegations to ABCNews.com.

Mindel also declined to specify what Placa does for the firm or how much he is paid.

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"Mr. Giuliani can do what he wants with his money, but he has to pay the price for people like myself who disagree with employing known child molesters," Tollner said.

While no longer allowed to perform priestly duties or appear in public as a priest, Placa continues to maintain a residence at a church rectory in Great Neck on New York's Long Island.

According to New York property records, Placa also co-owns, with another priest, a waterfront apartment in lower Manhattan in Battery Park City, valued at more than $500,000.

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