In a recent development, the legal battle between the City of Youngstown and former city finance director David Bozanich has escalated. Nearly three months after the city initiated a lawsuit against Bozanich and developer Dominic Marchionda, Bozanich has formally responded to the allegations in court. The city is seeking financial restitution for losses incurred due to a controversial development scheme that dates back to 2021. This response marks a significant turn in the ongoing saga, as Bozanich challenges the validity of the city's claims and calls for the dismissal of the case.

The roots of this dispute can be traced to a corruption scandal that rocked Youngstown in 2021. At the heart of the controversy are the Erie Terminal and Flats at Wick projects, which were central to a scheme involving both Bozanich and Marchionda. The city alleges that funds were improperly diverted from the city’s Water Fund to support Marchionda's ventures, resulting in substantial financial losses. Specifically, the city seeks repayment of $834,608 from Marchionda, along with the salary paid to Bozanich during his involvement in these activities.

Bozanich's defense hinges on the argument that the transactions in question were legitimate and approved by the appropriate municipal authorities. In his court filing, he contends that the city's lawsuit is frivolous and based on outdated transactions that have no standing under current law. Moreover, Bozanich asserts that the city did not suffer any economic harm as a result of his actions. He further criticizes the city for wasting taxpayer resources on pursuing what he deems to be meritless claims.

Adding another layer of complexity to the case, Marchionda has filed a counter-lawsuit against the city, seeking $1 million in compensation for wastewater upgrades and surplus property purchases. Both parties were previously convicted of crimes related to the scheme, which involved diverting city funds for Marchionda's projects through a bribery arrangement. Despite collecting $100,000 from Bozanich's insurance bond, the city maintains that it is still owed the remaining balance plus additional costs and fees.

As the legal proceedings unfold, the outcome remains uncertain. The city's efforts to recover its losses face strong opposition from both Bozanich and Marchionda, who are vigorously defending their positions. The resolution of this case will likely have far-reaching implications for the city's finances and governance practices, making it a critical moment in Youngstown's ongoing efforts to address past corruption.