When a New York newspaper reported on his lavish lifestyle, the Rev. Gregory Malia told the Daily News: "I work hard. I make good money. How I spend it - that is my business."
The paper reported Sunday that Malia was a fixture in fashionable nightclubs, spending thousands of dollars on liquor and tips.
The Right Rev. Paul Marshall says the Episcopal Diocese of Bethlehem took the action because priests are supposed to observe "normal standards of modest living."
Malia is a businessman who served part-time in the clergy, most recently at St. James Episcopal Church in Susquehanna County.