UPDATE | Marchionda facing 105 counts in corruption probe
YOUNGSTOWN — Developer Dominic Marchionda and affiliated businesses were indicted today on 105 criminal counts related to allegedly engaging in a pattern of corrupt activity, theft, tampering with records and money laundering related to three development projects in the city.
DOWNLOAD: Marchionda indictment documents
The investigation, which began more than two years ago, accuses Marchionda, 58, of Poland, of illegally obtaining money from the city as well as the state and/or federal government for the Flats at Wick student housing complex as well as projects to turn the Erie Terminal Place and Wick Towers into downtown apartment complexes.
The indictment alleges Marchionda, a number of his companies and other people – including an unnamed “public official who works for the city of Youngstown” – of illegally scheming to obtain the public funds.
In the case of Flats at Wick, U.S. Campus Suites LLC, a company controlled by Marchionda, received $1.2 million from the city’s water and sewer funds and then sent $1 million back to the city to buy a fire station property on Madison Avenue for the project.
Once the $1 million was received by the city, it was “placed into the general fund of the city of Youngstown in violation of Ohio law under the direction of David Bozanich,” the city’s finance director, the indictment reads.
Bozanich hasn’t been indicted, but the investigation is ongoing and he had search warrants executed on his house and the property of his girlfriend, where he was living, in July.
The indictment states that Marchionda took the remaining $200,000 – the difference between the $1.2 million grant and the $1 million he gave back to the city – and transferred $70,000 to a company he owned and then transferred funds to himself to pay for “personal expenses like his medical expenses, the Poland Swim Club, personal bounced checks fees, the Holy Family Facilities fund, real estate taxes, dental bills and other personal bills, person[al] debt and investment purposes. The funds were not spent on water or sewer related issues.”
“Allegations such as those contained in this indictment must be treated seriously and investigated thoroughly. This investigation and prosecution is a collaborative effort amongst several offices, and I want to thank the Auditor of State and officials in Mahoning County for their efforts,” said Attorney General DeWine.
“What our investigators found is deeply disturbing,” Auditor Dave Yost said. “Our team has worked this investigation for more than two years. They were tenacious and tireless in seeking justice, and there is more to come.”
This ongoing case is being investigated by the Ohio Auditor of State’s Public Integrity Assurance Team with the assistance of the Mahoning County Sheriff’s Department. The Ohio Attorney General’s Office is serving as special assistant prosecutor with Mahoning County in this case.
Developer Dominic Marchionda and affiliated businesses were indicted today on 105 criminal counts related to alleged corrupt activity, theft, and money laundering related to three development projects in the city.