012720...R MARCHIONDA 3...Youngstown...01-27-20...Developer Dominic Marchionda, left, sits with former Youngstown finance director David Bozanich, center, and attorney Brian R. Downey, Wick LLC, right, while listening to testimony during a hearing in Mahoning County Common Pleas Judge Maureen A. Sweeny's courtroom Monday morning...by R. Michael Semple

YOUNGSTOWN — Attorney Stephen Garea, a key prosecution witness in a case alleging corrupt activities at city hall, testified that he didn’t urge a well-connected businessman to bribe ex-Youngstown finance director David Bozanich on behalf of developer Dominic Marchionda.

Garea said Monday during a Mahoning County Common Pleas Court hearing that he asked Philip Beshara, a former president of B&B Contractors and Developers Inc. and a prominent local Democratic political donor, to talk to Bozanich about helping Marchionda get city funding for the latter’s Flats at Wick student-housing complex. But Garea said he never asked Beshara to give money to Bozanich.

The indictment doesn’t specifically state Garea urged Beshara to bribe Bozanich, but mentions he asked him to “make Dave happy” or “take care of Dave.”

Beshara testified Friday that he gave $20,000 to Bozanich in an envelope at a Boardman restaurant in spring 2009. He was never asked the reason why he gave the money.

The pretrial hearing in front of Maureen Sweeney, which finished its third day Monday, is to provide information — along with several motions filed under seal — to the judge who will rule on whether to dismiss some or all of the charges in a 101-count indictment against Bozanich, Marchionda and 10 of latter’s associated companies. Ex-Youngstown Mayor Charles Sammarone is also listed in the indictment but is being tried separately.

Defense attorneys have raised questions about the statute of limitations as well as whether prosecutors violated attorney-client privilege, specifically related to Garea, who has represented Bozanich and Marchionda.

But through the three days of testimony, prosecutors have had witnesses establish that they didn’t tell anyone about their alleged crimes until questioned by investigators. Prosecutors say the statute of limitations starts to run when the crimes become known and all of the charges are timely.

The indictment was unsealed Aug. 30, 2018, and includes charges of engaging in a pattern of corrupt activity, bribery, aggravated theft, money laundering, tampering with records and receiving stolen property. All of the defendants have pleaded not guilty.

COOPERATING

Garea said he Monday he met six times with law enforcement officials, starting in 2017, and is cooperating with them. He hasn’t been charged with any crimes. He said he is “not sure” if the state will charge him.

Garea testified that he waived about $7,000 to $10,000 in legal fees he contends Bozanich owed him from a neighborhood dispute the former finance director’s wife was experiencing. He said he did so after the city, purportedly at the direction of Bozanich, gave a $1.2 million water loan to Marchionda for the Flats at Wick project. Marchionda then turned around and gave the city $1 million to purchase the North Side fire station, now closed, with the money going to the city’s struggling general fund. Marchionda was able to keep the remaining $200,000 and do whatever he wanted with it, the indictment alleges.

Garea said he didn’t charge Bozanich the legal fees because he was expecting Marchionda to use a portion of the money he received from the city to pay fees he owed him.

But under cross-examination, Garea said he never told Bozanich he wasn’t going to ask him for the money. Also, Ralph E. Cascarilla, Bozanich’s attorney, said it was Bozanich’s wife and not his client who owed the money to Garea.

John F. McCaffrey, attorney for Marchionda and nine of his affiliated companies listed in the indictment, raised violations of attorney-client privilege during his questioning of Garea. Garea said he acted as an attorney as well as a business adviser.

Questions were raised Monday about $66,700 taken from Garea’s home in July 2017 after investigators executed a search warrant. Garea said most of the cash was money he saved with some coming from winning at golf. He insisted the money wasn’t illegally obtained and that he kept the money stored in suits on a shelf in a closet because he doesn’t “trust banks.” He said he wanted to save $100,000 for his retirement.

To date, about $55,000 has been returned to Garea, who said he didn’t know why the state is holding the rest of the money.

While Garea’s testimony took about four hours, with several breaks, the only other witness Monday was on the stand for about 15 minutes.

RESUMES THURSDAY

Tony Sano, a retired FBI agent, said he investigated Bozanich in 2012 and 2013 and alleged that Raymond Briya, a former chief financial officer for MS Consultants Inc., gave Bozanich free meals and paid his golf fees. The indictment alleges Briya did this to help get his company city business without the knowledge of MS officials.

Briya, who pleaded guilty to five felonies, is supposed to testify when the hearing resumes Thursday. Briya admitted he gave more than $100,000 in cash, meals, gifts and golf benefits to Bozanich over a decade, and at least $9,000 in cash to Sammarone when he was mayor. He also pleaded guilty to providing a false invoice for Marchionda in 2011 for his Erie Terminal Place project, lied about that to a grand jury, and took between $75,000 and $150,000 from MS without the company’s knowledge over a 15-year period to “benefit himself by bribing public officials.”

Also expected to testify Thursday are Marti Kane, the city’s human resources supervisor, and Chris Rudy, a retired fraud investigator for the Ohio Auditor’s Office.

Rudy testified for more than two hours Friday when Sweeney abruptly ended the second day of the hearing after Cascarilla asked for a bill of particulars giving specific dates of the 80 to 100 free meals Briya allegedly paid for Bozanich.

An amended bill of particulars has since been provided by prosecutors.

The indictment alleges Briya, Beshara and another person gave $100,000 to Bozanich to push a project that didn’t materialize.

It also contends Marchionda misspent at least $600,000 in city funds on personal items in addition to misusing money obtained from the city, state and federal governments for the Flats at Wick, Erie Terminal Place and Wick Tower downtown-housing projects.