TRUMBULL COUNTY Official probes possible fraud

One councilman said he was surprised at the high cost of products.
By STEPHEN SIFFand PEGGY SINKOVICH
VINDICATOR TRUMBULL STAFF
WARREN -- The sky-high prices Trumbull County taxpayers paid for toilet-bowl cleaner, air freshener and sanitary napkins could be more than bad bargain hunting, a county official said.
A review of county records found that county commissioners routinely paid more than the catalog price for products from Envirochemical. The county prosecutor is reviewing bills from the Bedford Heights company, which collected more than $923,000 from Trumbull County over the past six years.
"In general, when prices are so outrageous, fraud can be inferred," said Prosecutor Dennis Watkins.
Watkins would not discuss the status of his investigation into Envirochemical, one of a half-dozen companies that he recommended county commissioners drop in September.
A Trumbull County grand jury has met at least twice on the matter. No indictments have been issued.
In Lyndhurst, where Envirochemical Inc. co-owner Barry Jacobson is mayor, a case of his company's toilet-bowl cleaner costs $25. Trumbull County taxpayers paid as much as $169 a case for the same product, Jacobson confirmed.
Much lower prices
Envirochemical offered lower prices on numerous items to Lyndhurst, the Cleveland suburb where Jacobson was councilman, then mayor.
The company sold supplies to Lyndhurst starting in at least 1996, said city finance director Tony Ianiro.
Jacobson was elected to city council in 1996. He stopped selling to the city in 2001, the year he was appointed mayor.
"There was never any issue that there was in any way illegality involved," said Atty. Rich Carbone, the village solicitor. "I believe that he voluntarily said that since he was named mayor, he would stop doing it."
State law generally prohibits city council members or mayors from doing business with the cities they help run. However, an exception exists if the city began doing business with a company before its employee got into office, and if the product or service can't be found more cheaply anywhere else.
Looked into prices
Carbone said he investigated the issue when Jacobson became mayor and determined that his company's prices were best.
"We talked to the department heads who buy the supplies and they said the supplies could not have been purchased cheaper anywhere else," he said.
Lyndhurst city officials, however, said competitive bids were not sought.
Envirochemical didn't sell more than about $1,000 worth of supplies a year to Lyndhurst, he said. Jacobson said he offered supplies to Lyndhurst at his cost.
"I was surprised at the high cost we were paying for some of the products," said Councilman Michael J. O'Brien. "I was also surprised at how a company can give away products to one municipality and charge such high prices to another. It appears the company was making up the difference on the backs of Trumbull County taxpayers."
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