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Prosecutor details charges against Marchionda
Marchionda Bill of Particulars
Document
Bill of Particulars in State of Ohio v. Dominic Marchionda
By Justin Wier
YOUNGSTOWN
Downtown developer Dominic J. Marchionda falsified documents to cover up his misuse of state, federal and local funds and stole money from a charity to buy his wife jewelry, according to a court document filed Thursday.
Prosecutors filed a bill of particulars in Mahoning County Common Pleas Court detailing the 105 charges against downtown real-estate developer Dominic J. Marchionda and his companies.
LINK: VIEW DOCUMENTS HERE.
The filing states prosecutors examined more than 50 bank accounts controlled by or associated with Marchionda.
Marchionda is accused of stealing money from government grants to fund a “lavish, country-club lifestyle and improve his status in the community,” beginning with the Flats of Wick project, which opened in 2010, and carrying through to the Wick Tower project in 2015 and 2016.
Marchionda received $4.77 million in funds from the city of Youngstown for the Flats at Wick, Erie Terminal Place and Wick Tower projects. The indictment accuses Marchionda of improperly spending at least $600,000.
The money prosecutors claim was stolen originated from water utility grants and float loans from the city and federal brownfield and energy-loan funding, which passed through the state, according to the filing. Prosecutors allege Marchionda and his companies lied to obtain the funds or violated the terms by which they could use the money and falsified documents to cover up the abuse.
The filing claims John Doe 8 was aware the money would be misspent and received benefits from more than one person for assisting in obtaining the money. A source with knowledge of the lengthy investigation into Marchionda said John Doe 8 is city Finance Director David Bozanich.
Bozanich has told The Vindicator he is innocent of any wrongdoing related to the indictment of Marchionda.
In one example, Marchionda transferred $45,000 of a $1.2 million water utility grant received from the city into a personal account using personal expenses including doctor’s appointments and the Youngstown Country Club fees, according to the filing.
“Of the $1.2 million ... grant possibly $130,000 was spent upon a water related purpose,” the filing states.
Marchionda used $1 million to purchase a fire station from the city.
After the city received the $1 million, it was “placed into the general fund of the city of Youngstown in violation of Ohio law under the direction of David Bozanich,” the indictment reads.
At the time of the transaction, the city was projecting a general-fund deficit. The $1 million, in part, helped avoid a shortfall. The city cannot move money from its water and wastewater funds to its general fund.
In a typical transaction as described in the filing, Marchionda would transfer money to Rubino Construction, which would in turn transfer the money into accounts controlled by or associated with Marchionda.
The filing further alleges Marchionda, with the help of others, falsified invoices provided to the city accounting for money spent on Erie Terminal Place.
Marchionda claimed 96 percent of the plumbing work had been done on the project when he knew only 59 percent of the work had been done, according to emails reproduced in Thursday’s filing.
In another instance, Marchionda billed the city for $90,000 in demolition work when prosecutors claim no demolition work had been done.
On federal loan grant applications, Marchionda allegedly claimed someone else was the president of Rubino Construction – a company he operates and has been the president of since 2006.
Other counts regard alleged attempted theft from Key Bank.
The bill of particulars reproduces emails in which Key Bank asset recovery agents accuse Marchionda of “consistently stone-wall[ing]” collections agents.
Marchionda told agents he received a $4.8 million refinance loan from partners when he took a $5.3 million loan from Morgan Stanley and refused to provide paperwork documenting the loan, the filing says.
An internal email from Key Bank reproduced in the filing claims “Dominic’s personal financial statement contains more fraudulent items” that included listing $4,500 in bonds as $45,000 in bonds.
Key Bank reported the activity to law enforcement.
Finally, the filing accuses Marchionda of using a check from an account associated with a golf tournament that raises funds for the Rich Center for Autism to purchase jewelry for his wife in September 2011.
Marchionda used the check to pay $1,747 of the $3,722 transaction.
The case remains under investigation, and the auditor’s office suggested more indictments will follow.
Marchionda next will appear in court March 16.