He places a cigarette in an ashtray and seems to say “I shouldn’t” before snorting white powder off a plate in a video obtained by The Sun on Sunday.
It came at the end of a two-day bender when he invited friends to his parish home.
Crossan has admitted taking drugs. He confessed: “It was just the one night and that was it. I do not have an issue with drugs.”
A source said revellers went back to Fr Crossan’s house at 11am for seven hours after a party host asked them to leave.
They were stunned to see Nazi memorabilia including flags, hats and an eagle with a swastika on a plinth on his mantelpiece.
A source said: “Stephen said he was a social worker but told us the truth when we realised he lived on church grounds. He’d been drinking beers and Jack Daniels as well as taking coke.
“The house was lovely but we were stunned to see the Nazi stuff. It was all over the house. At one point Stephen put on a cap and did the Nazi salute.
“It’s shocking. He’s supposed to be an upstanding member of society. He shouldn’t be taking drugs.”
Fr Crossan lives on the grounds of St Patrick’s Church in Banbridge, Northern Ireland.
The ex prison chaplain said of the memorabilia: “I’m no Nazi. I collect historical stuff. There’s stuff there from every country.”