The law firm that represented Dominic Marchionda and a dozen of his companies during a public corruption case is suing the developer, his wife and the companies saying it is owed $613,073 in unpaid legal fees.

The lawsuit, filed in Cuyahoga County Common Pleas Court by the Tucker Ellis law firm, also contends Marchionda fraudulently transferred ownership of his Poland home to his wife, Jacqueline “with the actual intent to hinder, delay or defraud.”

Marchionda couldn’t be reached Wednesday to comment on the lawsuit.

The breach-of-contract lawsuit states Marchionda and nine of the companies retained Tucker Ellis in 2017 “to represent them as legal counsel in connection with the defense of a criminal investigation pursued” by the state and the Mahoning County Prosecutor’s Office. The three other companies were retained by Tucker Ellis a year later “to represent them as legal counsel in connection with a continuation of the criminal investigation,” according to the lawsuit.

Marchionda and the companies — along with former Youngstown Finance Director David Bozanich and ex-Mayor Charles Sammarone — were indicted Aug. 30, 2018, on 101 criminal counts contending public corruption related to three of Marchionda’s properties.

PLEA DEALS

They took plea deals to lesser counts.

Marchionda pleaded guilty to four felony counts of tampering with records, all occurring on Oct. 6, 2011, admitting he used false invoices to get money from Youngstown for his Erie Terminal Place downtown-housing project to pay bills he owed for Flats at Wick, a student-housing development.

He was sentenced to five years of probation and 1,250 hours of community service.

During the case, Marchionda was represented by John F. McCaffrey, a Tucker Ellis partner.

The lawsuit states Marchionda gave a promissory note on March 10, 2020, to Tucker Ellis for an original principal amount owed of $1,104,433. He signed an amended promissory note on July 2, 2020, stating he owed $1,504,463 to the law firm.

The lawsuit states Marchionda owes $613,073 to the law firm as of Monday, which included unpaid principal, interest at a default rate of 7.5 percent as of Aug. 16, late fees and other amounts due under the terms of the note.

Documentation in the lawsuit shows Marchionda last made a payment of $448 to Tucker Ellis on Feb. 5, 2021. The lawsuit states Marchionda made “false or misleading representations” in the amended note and admitted in “writing his inability to pay.”

“Defendants accepted and benefited from the legal services, but have refused and failed to pay Tucker Ellis for the full value of those legal services,” according to the lawsuit.

PROPERTIES

The lawsuit also states Marchionda transferred ownership of his Poland home to his wife, Jacqueline, on June 8, 2020, “in exchange for zero consideration or for far less than the fair-market value of the property.”

This was, the lawsuit contends, a “fraudulent transfer” with “the actual intent to hinder, delay or defraud Tucker Ellis”

Tucker Ellis sued Jacqueline because of the property transfer. The law firm is seeking an injunction against the couple for “further disposition” of “any property fraudulently transferred and the appointment of a receiver to take charge of any property fraudulently transferred between” the two.

The lawsuit states Marchionda may have transferred additional properties to “others yet to be identified” in a similar scheme.

It’s the latest problem for Marchionda, who used to be one of downtown Youngstown’s largest property owners.

In addition to being sentenced Sept. 3, 2020, on the four felonies, Marchionda no longer owns most of the downtown properties. He’s sold some and turned over ownership Feb. 22 of the Flats at Wick, Marchionda’s first downtown project, after he and his wife defaulted on a $5.5 million loan.

The state auditor announced Nov. 4, 2021, that it was seeking $7.87 million in findings for recovery against Marchionda, his wife, several of his companies, a business partner and Bozanich.

The largest finding of $6.58 million was for an unpaid 2013 state energy loan for Wick Towers, a downtown apartment complex developed by Marchionda.

The findings are still unpaid.

dskolnick@vindy.com