Legal firm sues former downtown Youngstown developer for $613,000 | News, Sports, Jobs

The regulation agency that represented Dominic Marchionda and a dozen of his corporations throughout a public corruption case is suing the developer, his spouse and the businesses saying it’s owed $613,073 in unpaid authorized charges.

The lawsuit, filed in Cuyahoga County Widespread Pleas Courtroom by the Tucker Ellis regulation agency, additionally contends Marchionda fraudulently transferred possession of his Poland residence to his spouse, Jacqueline “with the precise intent to hinder, delay or defraud.”

Marchionda couldn’t be reached Wednesday to touch upon the lawsuit.

The breach-of-contract lawsuit states Marchionda and 9 of the businesses retained Tucker Ellis in 2017 “to characterize them as authorized counsel in reference to the protection of a felony investigation pursued” by the state and the Mahoning County Prosecutor’s Workplace. The three different corporations had been retained by Tucker Ellis a yr later “to characterize them as authorized counsel in reference to a continuation of the felony investigation,” in keeping with the lawsuit.

Marchionda and the businesses — together with former Youngstown Finance Director David Bozanich and ex-Mayor Charles Sammarone — had been indicted Aug. 30, 2018, on 101 felony counts contending public corruption associated to a few of Marchionda’s properties.

PLEA DEALS

They took plea offers to lesser counts.

Marchionda pleaded responsible to 4 felony counts of tampering with data, all occurring on Oct. 6, 2011, admitting he used false invoices to get cash from Youngstown for his Erie Terminal Place downtown-housing venture to pay payments he owed for Flats at Wick, a student-housing growth.

He was sentenced to 5 years of probation and 1,250 hours of group service.

Throughout the case, Marchionda was represented by John F. McCaffrey, a Tucker Ellis accomplice.

The lawsuit states Marchionda gave a promissory be aware on March 10, 2020, to Tucker Ellis for an unique principal quantity owed of $1,104,433. He signed an amended promissory be aware on July 2, 2020, stating he owed $1,504,463 to the regulation agency.

The lawsuit states Marchionda owes $613,073 to the regulation agency as of Monday, which included unpaid principal, curiosity at a default charge of seven.5 p.c as of Aug. 16, late charges and different quantities due beneath the phrases of the be aware.

Documentation within the lawsuit reveals Marchionda final made a cost of $448 to Tucker Ellis on Feb. 5, 2021. The lawsuit states Marchionda made “false or deceptive representations” within the amended be aware and admitted in “writing his incapacity to pay.”

“Defendants accepted and benefited from the authorized companies, however have refused and did not pay Tucker Ellis for the total worth of these authorized companies,” in keeping with the lawsuit.

PROPERTIES

The lawsuit additionally states Marchionda transferred possession of his Poland residence to his spouse, Jacqueline, on June 8, 2020, “in change for zero consideration or for a lot lower than the fair-market worth of the property.”

This was, the lawsuit contends, a “fraudulent switch” with “the precise intent to hinder, delay or defraud Tucker Ellis”

Tucker Ellis sued Jacqueline due to the property switch. The regulation agency is searching for an injunction in opposition to the couple for “additional disposition” of “any property fraudulently transferred and the appointment of a receiver to take cost of any property fraudulently transferred between” the 2.

The lawsuit states Marchionda could have transferred further properties to “others but to be recognized” in the same scheme.

It’s the most recent drawback for Marchionda, who was once one in every of downtown Youngstown’s largest property homeowners.

Along with being sentenced Sept. 3, 2020, on the 4 felonies, Marchionda not owns many of the downtown properties. He’s offered some and turned over possession Feb. 22 of the Flats at Wick, Marchionda’s first downtown venture, after he and his spouse defaulted on a $5.5 million mortgage.

The state auditor introduced Nov. 4, 2021, that it was searching for $7.87 million in findings for restoration in opposition to Marchionda, his spouse, a number of of his corporations, a enterprise accomplice and Bozanich.

The biggest discovering of $6.58 million was for an unpaid 2013 state power mortgage for Wick Towers, a downtown house advanced developed by Marchionda.

The findings are nonetheless unpaid.

dskolnick@vindy.com