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Items seized from Youngstown finance director, attorney disclosed
YOUNGSTOWN
Bozanich, Garea Evidence Inventory
Document
Evidence Inventory for searches related to a state probe into the legality of more than $2 million given by the city from its water and wastewater funds to NYO Property Group.
Several computers and other electronic equipment, financial records, income-tax returns, a safe, $66,700 in cash and four suits were seized at the home and law office of Atty. Stephen Garea and the homes of city Finance Director David Bozanich and his girlfriend.
The Ohio Auditor’s office, the lead investigator on the case, Wednesday filed with the Mahoning County Clerk of Courts office a list of what was removed from the four properties during a July 6 search.
The searches were related to a state probe into the legality of more than $2 million given by the city from its water and wastewater funds to NYO Property Group, a prominent downtown developer.
Bozanich declined to comment Wednesday to The Vindicator except to say he’s continuing to do his job as finance director. Attempts Wednesday to reach Garea were unsuccessful.
The search warrants, which remain sealed, were conducted at:
7842 Walnut St., Unit B, Boardman, Bozanich’s residence, where neighbors say his sister lives.
355 Devonshire Drive, Boardman, the residence of Panzy Eldridge, Bozanich’s girlfriend, where it’s presumed the finance director lives.
3722 Starr Centre Drive, Suite A, Canfield, the law office of Stephen Garea.
3780 Fawn Drive, Canfield, Garea’s residence.
The only items taken from Bozanich’s Walnut Street home were a safe and 40 photographs, according to the auditor’s inventory list.
Seized from Eldridge’s home were Bozanich’s “financial records,” “loan records,” check registers, tax returns and five computers.
In comparison to Bozanich, several more items were taken from Garea’s home and office.
Taken from Garea’s law office were four computers, numerous thumb drives and CDs, bank statements including a $100,000 deposit slip, construction contracts, tax returns for at least six years and other income documents, duplicate checks, appointment calendars and other papers.
Taken from a closet at Garea’s residence were $66,700 in cash – in $100 and $50 bills – and four suits, the list states.
Also removed from the house were at least four computers, three power cords, nine DVD disks, three thumb drives, and income tax records.
The investigation focuses on three projects done by NYO subsidiaries, operated by developer Dominic J. Marchionda, that received $2.27 million from the city’s water and wastewater funds.
On March 16, records were seized at NYO’s downtown office and at Marchionda’s Poland home by law-enforcement agencies, led by the state auditor’s office.
Garea served as Marchionda’s attorney on the deals with Bozanich as the city’s finance director heavily involved in the negotiations.
The largest project was $1.2 million to U.S. Campus Suites LLC in November 2009 for the Flats at Wick student-housing project. Then, Marchionda’s company paid $1 million to the city for a fire station property on Madison Avenue for the project, netting the company $200,000.
At the time, the city was projecting a general-fund deficit for the end of 2009, but the influx of $1 million in part helped avoid the city’s shortfall. Without such a transaction, the city would not have been able to move $1 million from the water and wastewater funds to the general fund.
U.S. Campus Suites is leasing the station back to the city for $10 annually.
The city originally agreed to sell the fire station for $10 in May 2009 to Marchionda, according to a city ordinance from that time. That sale price increased in November to $1 million, according to a board of control contract.
The city also gave Erie Terminal Place, an NYO subsidiary, $350,000 in water and wastewater funds in 2011 for its Erie Terminal Place apartment project, and then $220,000 two years later for improvement work at that downtown property.
Also, $500,000 in those funds went to Wick Properties LLC, also an NYO subsidiary, in 2015 for the apartment/extended-stay Wick Tower that opened in November of that year.
Among the items seized by the state auditor’s office from Garea’s law office were files about the Flats at Wick and Wick Tower.