A Youngstown developer has filed a counter suit against the city after the city sued him and another former city official for alleged misuse of funds.

According to court records, developer Dominic Marchionda and two of his affiliated companies U.S. Campus Suites LLC and Erie Terminal Place LLC filed a counter suit responding to the city's allegations.

The complaint, filed by the city in November accuses the Marchionda, as well as city former City Finance Director David Bozanich of misappropriating funds from the city's water and wastewater projects for projects including the Flats at Wick student housing and the Erie Terminal renovation.

In one instance, it is alleged that the two used a city grant intended for water improvements at the Flats at Wick to purchase a fire station instead.

Additionally, the complaint alleged that Marchionda submitted fraudulent invoices to receive additional grant funding for the Erie Terminal project beyond what was justified by the work completed.

Marchionda responded to these allegations in a counter suit stating the city knew about "misappropriated fund" since an Ohio Audior of State's Report for 2010 was filed in December of 2012, but did not take any action until after the statute of limitation expired.

Marcionda went on to accuse the city of breach of contract stating that the city was to provide a $1.2 million water and waste water grant to U.S. Campus Suites per an agreement between the two parties.

The counter suit alleges after the transfer of funds to U.S. Campus Properties, the city received $1 million for the fire station while the company spent more than the $1.2 million on the water project.

The suit states that if the city's complaint is not barred by the statute of limitations, U.S. Campus Properties demands the $1 million received from the city as a result of the transaction.

In regards to the allegations related to the Erie Terminal project, the suit mentioned a lawsuit between the city and Erie Terminal Place regarding damages caused by a city road project.

The suit states that the current complaint is brought to "harass or maliciously injure" Erie Terminal Place.

You can read much more about the city's allegations in our related coverage below.

RELATED COVERAGE: