Try-except-finally paradox

[Jessica Ross]

I found something like this in a StackOverflow discussion.
>>> def paradox():
...     try:
...             raise Exception("Exception raised during try")
...     except:
...             print "Except after try"
...             return True
...     finally:
...             print "Finally"
...             return False
...     return None
... 
>>> return_val = paradox()
Except after try
Finally
>>> return_val
False

I understand most of this.
What I don't understand is why this returns False rather than True. Does the finally short-circuit the return in the except block?