YOUNGSTOWN CONFIDENTIAL– CORRUPTION STORIES OF INTEREST

ONCE AGAIN THE CITY OF YOUNGSTOWN HAS MADE THE NATIONAL HEADLINES ABOUT THE POLITICAL CORRUPTION AND DEVIOUS ACTS THAT HAVE MADE MONEY FOR CROOKED POLITICIANS.  FOR YEARS THE WATER DEPARTMENT HAS USED MUCH OF ITS FUNDS  AS A CASH COW TO BE USED FOR PONZI SCHEMES .

DOMINIC MARCHIONDA, A PROMINENT DOWNTOWN PROPERTY OWNER AND HIS AFFILIATED BUSINESSES ARE ACCUSED IN A 105- COUNT INCITEMENT OF A SCHEME “TO FUNNEL GOVERNMENT MONEY” TO HIMSELF THROUGH VARIOUS COMPANIES TO LIVE A LAVISH LIFESTYLE AND ENRICH HIMSELF.

THE 73 INDICTMENTS BY MAHONING COUNTY ALSO ALLEGES AN UNNAMED CITY OFFICIAL HELPED MARCHIONDA  IN EXCHANGE FOR $25,000 BRIBE IN SPRING OF 2009.

A SOURCE WITH KNOWLEDGE OF THE LENGTHY INVESTIGATION SAID THE CITY OFFICIAL IS FINANCE DIRECTOR , DAVID BOZANICH .THERE ARE HINTS IN THE INDICTMENT THAT POINT TO BOZANICH INCLUDING A LINE THAT STATES TO INSURE A MARCHIONDA PROJECT, INCLUDE THAT $ 25,000 IS NEEDED TO TAKE CARE OF DAVE.

BOZANICH ,WHO IS BEING INVESTIGATED FOR POSSIBLE INDICTMENT OF 105 COUNTS, COULDN’T BE REACHED MONDAY BY THE VINDICATOR ,TO COMMENT, HE HASN’T BEEN CHARGED,AND MAYOR JOHN McNALLY SAYS HE HAS NO PLANS TO FIRE OR DISCIPLINE THE FINANCE DIRECTOR.BOZANICH HAD SEARCH WARRANTS EXECUTED ON HIS HOUSE AND RESIDENCE OF HIS GIRLFRIEND WHERE HE WAS LIVING.

ALSO ON THE SAME DAY AS BOZANICH’S RAID, INVESTIGATORS SIZED MONEY AND A COMPUTER FROM THE HOME AND LAW OFFICE OF ATTY STEVEN GAREA AS PART OF THIS INVESTIGATION. GAREA SERVED AS MARCHIONA’S ATTORNEY ON DEALS WITH THE CITY.HE ALSO  HAS NOT BEEN INDICTED.

THE CRIMES IN THE INDICTMENTS ARE ALLEGED TO OCCURRED BETWEEN MAY 1,209 AND JAN.2016.  JOHN McCAFFREY MARCHIONDA’S ATTORNEY SAID THE STAT ALLEGES THAT MARCHIONDA’S DEVELOPMENT  WAS ACCOMPLISHED THROUGH THEFT AND DECEIT.MARCHIONDA’S INDICTMENTS ON CRIMINAL CHARGES ARE

  • One count of engaging in a pattern of corrupt activity
  • Four counts of aggravated theft
  • 65 counts of money laundering
  • 15 counts of tampering with records
  • Eight counts of telecommunication fraud
  • five counts of receiving stolen property
  • One count of falsification
  • One count of attempted security writing by deception
  • One count of theft.

Also indicted Monday were other  Marchionda-run companies which are scheduled to be arraigned Oct.10th in common pleas court

 TO BE CONTINUED:part II

“Allegations such as those contained in the incitements must be treated seriously and investigated thoroughly. This investigation   involves  several offices. I want to thank the Auditor of state and officials in Mahoning County for their efforts” said Attorney General Mike De Wine.

What our investigation found is very disturbing Auditor Dave Yost said. The indictment  alleges Marchionda spent grants and funds received from Youngstown  water  and wastewater department . Also funds and loans from the city in addition to money from state and federal to develop the projects.

He is is accused of improperly spending $ 600,000 from city funds on personal debts, and to pay costs unrelated to the purpose for which they were provided.Marchionda provided false billing records to city of Youngstown officials A company controlled by Marchionda received $1.2 million from the city’s water and wastewater funds and then sent $1 million back to the city to buy a fire station on Madison Ave.on the North Side for the project.

The million dollars was” placed into the genera Fund of the city of Youngstown in violation of Ohio Law under the direction of  David Bozanich” the indictment reads. Marchionda took remaining $200,00 and transferred $70,000 to a company he owned and than transferred to himself  to pay for personal expenses such as the Poland swum club,personal bounces- checks fees. this include many other personal debts and and investments.

The funds were not spent on water or sewer related issues. McNally said city council reviewed and approved the fire station deal in 2009,and the board of control- the Mayor ,Law Director and finance director.determined it to be appropriate.

The city also loaned $ 2 million to US Campus Suites that was to be solely used for the project. The indictment contends Marchionda used it for the personal purposes and not permitted by the loan agreement with the city of Youngstown.

That trend continued with float loans received by other LLC proprieties. Typically when monies were deposited into the accounts (the companies than transferred by phone call,wire or email by Dominic Marchionda to Rubino Construction Inc. who then distributed funds for unlawful purposes transferring hundreds of thousands of dollars back to Marchionda.

The city in 2011 gave $350,00o in water and wastewater funds went to a company owned by Marchionda that developed Eire Terminal and $220,000 two years later for improvement work at the property.. The list of fraud allocations go on and on.

The indictment also accuses Marchoinda of theft related to his improperly taking between $ 1,000 and $ 7,5000 from the Rich Center for Autism This is corruption at its best. the citizens of Youngstown have been deceived for years and fail to complain..When we thought the mob was gone, a new enterprise took its place; Its called THE LOCAL POLITICIANS.

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