Retired Trumbull County judge to hear city's lawsuit against former Youngstown official, developer
Retired Trumbull County Common Pleas Court Judge Wyatt McKay has been appointed to preside over the City of Youngstown's lawsuit against former Finance Director David Bozanich, businessman Dominic Marchionda, and several associated companies, alleging misuse of public funds intended for development projects.
The Ohio Supreme Court made the appointment after all Mahoning County Common Pleas Judges declined to hear the case. The order did not say why the judges asked to recuse themselves from the case.
The lawsuit accuses the defendants of misappropriating funds from the city's Water and Wastewater Funds for projects including the Flats at Wick student housing and the renovation of the Erie Terminal.
The city alleges that Bozanich and Marchionda orchestrated a scheme to divert funds for personal gain. In one instance, it's claimed that a city grant intended for water-related improvements at the Flats at Wick project was instead used to purchase a fire station.
The lawsuit also alleges that Marchionda submitted fraudulent invoices to receive additional grant funds for the Erie Terminal project beyond what was justified by the work completed.
Bozanich and Marchionda have previously faced criminal charges related to this scheme. Bozanich served a year in prison for bribery and tampering with records, while Marchionda received probation for the same.
Bozanich served as Youngstown's Finance Director from 1993 until his resignation in 2017,
The city seeks to recover the misappropriated funds, totaling more than $800,000, plus interest and court costs. Additionally, the city wants Bozanich to forfeit any salary earned during the period of misconduct.
Marchionda, Erie Terminal Place LLC, and US Campus Suites LLC have denied the allegations, claiming the lawsuit is barred by the statute of limitations and that the city breached its agreement with the developer.
Judge McKay's first order was to give Youngstown more time to respond to a motion from the defendants to disqualify the law firm representing the city in the case.
The plaintiffs' motion claims that law firm Roetzel & Andress recently merged with a law firm that employed two attorneys who formerly represented Marchionda, U.S. Campus Suites, and Erie Terminal Place.
The motion alleges that the two attorneys may have confidential information about the defendants, prohibiting them from handling the Youngstown case.
The city has until February 17 to respond to the motion.