Former Youngstown finance director David Bozanich listens to testimony Monday morning before Mahoning County Common Pleas Judge Maureen Sweeney. Staff photo / R. Michael Semple

YOUNGSTOWN — A retired fraud investigator for the Ohio Auditor’s Office testified that David Bozanich’s ex-wife told FBI officials she suspected her former husband received illegal benefits from city vendors when he was Youngstown finance director.

That initial meeting with Joyce Bozanich, who is now known as Joyce Pallante, was Sept. 15, 2010 — around the time of the couple’s divorce — and five days later the FBI began an investigation of the couple’s taxes, Chris Rudy, the retired fraud investigator, said during a Thursday pretrial hearing.

The hearing finished its fourth day Thursday in front of Mahoning County Common Pleas Judge Maureen Sweeney.

The hearing resumes Feb. 12 with Feb. 19 scheduled for it to continue if necessary. The judge will then rule on whether to dismiss some or all of the charges in a 101-count indictment against Bozanich, developer Dominic Marchionda and 10 of the latter’s affiliated companies. Former Youngstown Mayor Charles Sammarone is also listed in the indictment and is being tried separately.

Tony Sano, a retired FBI agent, testified Monday that he investigated Bozanich in 2012 and 2013, related to Raymond Briya, a former chief financial officer for MS Consultants Inc., giving Bozanich free meals and paying his golf fees to help get his company city business without the knowledge of MS officials.

The FBI never prosecuted Bozanich or Briya.

But the allegations against Bozanich are detailed in the state indictment, unsealed Aug. 30, 2018.

Briya pleaded guilty to five felonies in Sept. 16, 2019, and is supposed to testify when this hearing resumes.

CASH, MEALS, GIFTS

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 over a 15-year period to “benefit himself by bribing public officials.”

The defense is seeking to get some or all of the counts in the indictment dismissed for violations of attorney-client privilege, exceeding the statute of limitations and for duplicity, meaning some of the accusations are listed in more than one count.

At Thursday’s hearing, it appeared as though prosecutors were in agreement that accusations in a bribery count against Bozanich that Briya paid for 80 to 100 meals between Jan. 1, 2006, and July 31, 2013, and seven other bribery counts that Briya paid for Bozanich’s golf fees, happened at the same time. That could lead to the eventual dismissal of at least the bribery count alleging free meals.

Besides Rudy, the only other witness to testify Thursday was Marti Kane, the city’s human resources supervisor.

She testified that Bozanich resigned as finance director Dec. 28, 2012, and was rehired effective Jan. 1, 2013, by Sammarone, who was mayor at the time.

“His benefits never stopped,” said Kane, who added that was unusual because in most retire-rehire cases there’s a two-month waiting period to get medical insurance and life insurance. But she added there isn’t a formal city policy on the matter.

The issue of Bozanich not losing his benefits could be an issue related to arguments about statute of limitations.

Ohio Revised Code states the statute of limitations for felony offenses is six years. But “for an offense involving misconduct in office by a public servant, (it is) at any time while the accused remains a public servant, or within two years thereafter.”

Bozanich’s final day as finance director was Dec. 31, 2017.

The indictment was unsealed Aug. 30, 2018.

PUBLIC FUNDING

The indictment alleges Bozanich assisted people — including Marchionda through Philip Beshara, former president of B&B Contractors and Developers who is cooperating with prosecutors — who sought public funding for economic-development projects in exchange for money, golf fees, meals and trips exceeding $125,000.

Marchionda is accused of misspending 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.

The two, along with Marchionda’s 10 associated companies, are charged with engaging in a pattern of corrupt activity, bribery, aggravated theft, money laundering, tampering with records and receiving stolen property.

They’ve all pleaded not guilty.

When the hearing resumes, Rudy will continue his testimony. Briya will also be a witness and Beshara, who testified last Friday, is expected to be recalled.

During his testimony last week, Beshara said he gave $20,000 in cash to Bozanich in spring 2009. He wasn’t asked why, but the indictment alleges Beshara did it so Bozanich would give a city water grant to Marchionda for the Flats at Wick project.

Beshara admitted he is under FBI investigation for embezzling $1 million to $2 million from B&B and that he “suggested” subcontractors pay him to do business with the company.

dskolnick@tribtoday.com