Four search warrants have been executed at a home owned by Youngstown Finance Director David Bozanich, as well as the home and office of Attorney Stephen Garea and another woman.

The warrants are being conducted by the Ohio Auditor's Office with assistance from the Ohio Attorney General's Office, the Bureau of Criminal Identification and the Mahoning County Sheriff's office.

The raids are being conducted at  7842 Walnut Street, Unit B, Boardman, Ohio. 21 News has been told that the property is owned by Bozanich, but a relative, not Bozanich resides there.

Three other locations being searched include.

  • 3722 Starr Centre Drive, #A, Canfield, Ohio, office of Steve Garea
  • 3780 Fawn Drive, Canfield, Ohio, residence of Steve Garea
  • 4355 Devonshire Drive, Boardman, Ohio, residence of Panzy Eldridge, said to be an acquaintance of Bozanich.

The Ohio Attorney General's Office would not confirm or deny that the searches have any connection to an investigation into the relationship between prominent developer Dominic Marchionda and the city of Youngstown.

In March, investigators from the State Auditor's Office took evidence from Marchionda's downtown Youngstown office and Poland home.

Sources told 21 News at the time that a warrant used to search  Marchionda's home and office will also contained the names of three high-ranking Youngstown city officials.  

Sources also said that investigators were looking into the legality of how more than $2 million dollars from the city's water and wastewater funds were used.

The money was given to Marchionda for three economic development projects: Erie Terminal Place, Wick Tower and the Flats at Wick.

Several sources tell 21 News that the Flats at Wick project that involves student housing is at the forefront of the investigation.

It was back in 2009 when the city of Youngtown gave $1.2 million in water and wastewater funds to a subsidiary of NYO Property Group, money to go towards the purchase of the student apartments known as Flats at Wick.

Marchionda's company then paid $1 million to the city for a former fire station located at Madison Avenue and Elm near campus.

Mayor John McNally told 21 News at the time that the projects were approved by city officials long before he was in office.

Under former Youngstown Mayor Jay Williams' administration, the former law director did get an opinion on whether water and wastewater could be used for economic development projects from a Cleveland law firm.

The law firm Calfee, Halter and Griswold LLP wrote and issued the decision for the city of Youngstown in June of 2011.

In a letter attached to the legal opinion and issued to President of Youngstown City Council Charles Sammarone at the time, Law Director Iris Torres Guglucello wrote, "Surplus funds from water and wastewater may be used for grants to fund projects that repair, extend or enlarge water or wastewater works, and that Council has broad discretion to determine, in the first instance, if a contemplated expenditure is for that purpose."

Current Law Director Martin Hume defended the city's action saying, "The law allows us to use water and waste water for economic development purposes to expand the water and wastewater systems. And the city has used that to aid private developers in projects that involve putting new water lines and water and waste water type infrastructure. In each of the projects that has been approved, there's been an analysis that has determined that the net benefit to the city is worth the investment that we're making."

However, there are several sections of Ohio Law that seem to disagree that water and wastewater or "enterprise funds" can be used for anything other than what they were intended.

Ohio Revised Code Section 5705.10 says, "Money paid into any fund shall be used only for the purposes for which such fund is established."

Several sources explain it this way. Enterprise funds can only be used for the enterprise from which they are raised. And you need to be able to show that there is a connection between economic development and the utility fund you're taking it from.

21 News has crews at the locations being searched and will continue to follow this developing story.