YOUNGSTOWN, Ohio – Invoices submitted by three companies advertence they formed on the Erie Terminal activity in mid-2011 bout up with announcement statements that board say were biased so developer Dominic Marchionda could access burghal money for the project, according to abstracts acquired by The Business Journal.
Marchionda, above Youngstown Ambassador Charles Sammarone, and above Youngstown accounts firector David Bozanich were accusable Aug. 30 on 101 counts of accessible corruption. The 78-page allegation includes nine bearding parties, or “John Does,” and six anonymous companies that are bent up in an advancing bent delving accompanying to burghal development projects.
Documents arise by the burghal backward Thursday afterward a accessible annal appeal by The Business Journal arise to bare the identities of at atomic three of the bearding companies in the indictment.
Documents appearance that MS Consultants Inc., B&B Contractors and Developers Inc., and Stephen R. Garea Advocate at Law, anniversary submitted announcement annal that bout absolutely with those that board affirmation were counterfeit and acclimated by Marchionda to draw money from the city’s float accommodation program.
According to the indictment, “Company 1, 2, and 3 all accustomed Erie Terminal float accommodation money in contravention of the accurate or adumbrated accord of the burghal of Youngstown.”
The allegation claims Marchionda abiding an agent of a business called alone as “Company 2” to actualize a apocryphal balance in 2011 that billed the Erie Terminal activity $105,000 aback accompaniment board say the aggregation performed beneath than $10,000 account of assignment on the building.
Records acquired by The Business Journal appearance that on Aug. 5, 2011, MS Consultants Inc. billed Marchionda a agglomeration sum of $105,000 for architecture casework it says it rendered through July 30, 2011 accompanying to the “Erie Terminal renovation.”
MS Consultants is a longtime architectural, architecture and engineering close based in Youngstown. At the time of this posting, a alarm to the aggregation gluttonous animadversion had not been returned.
The announcement anatomy submitted by Aggregation 2 was “uttered to the burghal of Youngstown, who accidentally paid the $105,000 for the aboriginal float accommodation draw on the Erie Terminal project,” the allegation says.
Marchionda owed Aggregation 2 $170,000 for assignment it performed on an beforehand project, The Flats At Wick, a student-housing circuitous aloof arctic of Youngstown Accompaniment University, the allegation states.
According to investigators, there is no affirmation that anyone in Aggregation 2 – added than the agent who generated it — was acquainted that the Erie Terminal balance was false.
In the indictment, the accompaniment names an alone articular as John Doe 6 as an agent of Aggregation 2. The accompaniment alleges that John Doe 6 provided allowances to Bozanich, Sammarone, and Marchionda “without the ability or accord of anyone abroad at the company.”
As aboriginal as 2006, the allegation states, John Doe 6 began advantageous bribes to Bozanich accompanying to an amplification at Exal Corp. in Youngstown. Cloister abstracts say that John Doe 6 paid the above accounts administrator at atomic $100,000 until mid-2013 through a biking bureau that Bozanich co-owned.
B&B Contractors and Developers Inc., again of Youngstown, served as a accepted contractors on three Exal expansions, states its website, and MS Consultants Inc. was the artist on the projects.
According to the indictment, John Doe 6, John Doe 1 – who sources affirm is above B&B President Philip Beshara – and John Doe 8 were ally in Exal Leasing LLC, a acreage aggregation not endemic by Exal Corp. but whose owners “worked in affiliation with David Bozanich, with at atomic one of the owners advantageous David Bozanich a $100,000 allurement or bang aback for the bread-and-er development project.”
The accompaniment additionally says that John Doe 1, apparently Beshara, paid Bozanich a banknote allurement of amid $20,000 and $25,000 in adjustment to access burghal abutment for The Flats at Wick project, on which B&B served as accepted contractor.
In addition, the accompaniment alleges that John Doe 6 provided allowances to Bozanich in the anatomy of commons and golf outings “so Bozanich could abetment the aggregation he formed for, defended assignment in the burghal of Youngstown, with the burghal of Youngstown, or to advance projects in the burghal of Youngstown that would account the aggregation he formed for.”
Investigators additionally adduce that John Doe 6 paid Sammarone, while confined as mayor, banknote “in acknowledgment for council burghal projects to the aggregation John Doe 6 formed for.” According to investigators, Sammarone was paid $1,000 a ages for 23 months.
Marchionda and his investors purchased the Erie Terminal architecture – now called Erie Terminal Place — from Cleveland developer Lou Frangos in 2011 and auspiciously redeveloped the architecture into apprentice apartments.
The burghal awarded the activity a float accommodation account $2 actor to abetment the development effort, which was estimated at $8.8 million. The burghal additionally provided a $350,000 wastewater account admission to abutment the project. Addition $220,000 in wastewater admission money was awarded to the activity later.
The accompaniment alleges addition business, accepted in the allegation alone as “Company 1,” whom sources affirm is B&B, submitted a apocryphal AIA appliance advertence that it had performed $90,000 account of annihilation assignment on the Erie Terminal “when in actuality none was done.”
Marchionda owed B&B $90,000 from antecedent assignment the aggregation did at The Flats At Wick, the allegation says. The apocryphal appliance acquired the burghal to accidentally pay $90,000 from the float accommodation draw, according to cloister papers.
Samuel DeCaria, again the ambassador at B&B, active the application, according to annal acquired by The Business Journal, and is believed to be John Doe 3 in the state’s indictment. The appliance contains a band account of $90,000 for annihilation accompaniment board adduce was never done.
The allegation additionally identifies a “Company 3” that board say Marchionda had actualize an balance “asserting that it was announcement Marchionda/Erie Terminal Place for assignment it had done at the Erie Terminal in the bulk of $35,500, aback such was false.”
Instead, abstracts say that Aggregation 3 performed beneath than $5,000 account of assignment on the project.
Records acquired by The Business Journal appearance that Erie Terminal Place accustomed an balance from Stephen R. Garea Advocate At Law for $35,500 for casework rendered through Aug. 31, 2011.
The balance lists 177.5 billable hours at $200 per hour during which the advocate said he adjourned a abstract acquirement acceding for the building, met with burghal admiral accompanying to bread-and-er development and allurement packages, captivated affairs with Marchionda on accompaniment development bales and actual tax credits, and advised closing documents.
“In fact, Aggregation 3 performed beneath than $5,000 assignment at the Erie Terminal project,” the allegation states.
Garea is broadly believed to be John Doe 2 in the indictment. Garea acted as accumulated admonition for B&B, Marchionda ,and waived what prosecutors say were $10,000 in acknowledged fees owed to him by Bozanich in acknowledgment for the city’s abutment of the Flats At Wick project.
A fourth balance that the allegation says was tampered with by Marchionda was submitted by a business articular alone as “Company 4.” According to the state, Marchionda owed Aggregation 4 $30,000 for assignment it did at The Flats At Wick project.
Company 4 submitted an balance of $30,125 to Marchionda, who forwarded it to the burghal asserting it was for assignment accompanying to the Erie Terminal building, aback it was not, the allegation states.
Records appearance that an balance of $30,125 anachronous Aug. 31, 2011 was submitted to Marchionda from Donald J. Augenstein, CPA Inc. in Canfield.
However, the allegation emphasizes, “Marchionda artlessly aria to burghal admiral about Aggregation 4’s work. Aggregation 4 was not complex in creating or sending any apocryphal invoices.”
Court affidavit additionally adduce that Marchionda absent at atomic $600,000 of accessible money advised for assorted development projects for his own claimed use.
Pictured at top: Erie Terminal in city Youngstown, one of the development projects spearheaded by Dominic Marchionda.
Copyright 2018 The Business Journal, Youngstown, Ohio.
Published by The Business Journal, Youngstown, Ohio.
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