Developer And OV Mall Indicted
Youngstown grand jury hears corruption allegationsArticle Photos
YOUNGSTOWN, Ohio - Developer Anthony Cafaro Sr. and the Ohio Valley Mall Co. are among those named in a 73-count racketeering and bribery indictment returned Thursday by a Mahoning County, Ohio, grand jury.
Defendants in the case also include a Mahoning County commissioner and the county auditor, along with two former county officials. Charges allege "a pattern of corrupt activity" involving company and public officials, according to the indictment.
A special grand jury investigating Mahoning County's 2006 purchase of the Oakhill Renaissance Place says the Cafaro Co., along with current and former Mahoning County office holders, illegally conspired to block the purchase.
The indictment charges seven officials and three businesses. Those indicted include Cafaro Sr., retired head of Youngstown-based real estate developer Cafaro Co., as well as sitting Mahoning County Commissioner John McNally, Auditor Michael Sciortino and former Treasurer John Reardon.
Also indicted were Cafaro's sister, Flora Cafaro; former Mahoning County Jobs and Family Services Director John Zachariah; attorney Martin Yavorcik, who was a previous candidate for county prosecutor; and three businesses: the Cafaro Co., Cafaro-affiliated Ohio Valley Mall Co. in St. Clairsville and Marion Plaza Inc.
Charges range from engaging in a pattern of corrupt activity to conspiracy, perjury, bribery, money laundering, tampering with records, disclosure of confidential information, conflict of interest, filing false financial disclosure statements and soliciting or accepting improper compensation.
The indictment lists the Ohio Valley Mall Co. and the Marion Plaza Inc. as owners of Garland Avenue Real Estate, which includes in its holdings the McGuffey Plaza, where some of the Mahoning County government offices that could have moved to Oakhill Renaissance Place were located.
The indictment alleges, among other things, that the Ohio Valley Mall Co. and Marion Plaza were involved in "money laundering, tampering with records, perjury, bribery and soliciting or receiving improper compensation." The indictment also alleges those named formed an enterprise involving many of the same charges to help block Mahoning County's purchase of the building. The pattern of corrupt activity is alleged to have taken place between February 2004 and December 2008.
In 2008, several players in the saga, including McNally, Reardon and Anthony Cafaro, were asked to submit records to the grand jury pertaining to Oakhill.
According to the court documents filed Thursday, the Cafaros, McNally, Reardon, Sciortino, Zachariah and Yavorcik committed bribery during their conspiracy to keep the building's purchase from proceeding. A statement released by the special prosecutors on the case states some of those charged are accused of committing ethics violations in attempts to conceal their participation in the conspiracy, including providing or accepting money, free legal services, campaign contributions, disclosing confidential information and the offer to guaranty a loan made by a national bank.
Anthony Cafaro, McNally, Reardon, Sciortino and Zachariah are all charged with multiple counts of bribery and perjury.
Among the allegations, McNally is accused of illegally disclosing confidential information, and Sciortino and Reardon are accused of filing false financial disclosure statements with the Ohio Ethics Commission. All three are accused of conflict of interest. McNally and Sciortino are charged with soliciting or accepting improper compensation.
Yavorchik and Flora Cafaro each face counts of money laundering.
Those indicted are expected to be arraigned Tuesday before Common Pleas Court Judge Maureen Sweeney.
The Oakhill Renaissance building purchase has been embroiled in controversy since commissioners Anthony Traficanti and David Ludt decided to purchase it in federal bankruptcy court in 2006 and move the county's Department of Job and Family Services and Child Support Enforcement Agency from its location in the Cafaro-owned McGuffey Plaza to Oakhill.
Ludt and Traficanti, along with county Administrator George Tablack, said the condition of the buildings, maintenance costs and high rent at the McGuffey Plaza made it cheaper and easier for the county to move into a building the county owned.
However, Reardon, Sciortino and McNally opposed the move, saying that Oakhill was also decrepit and that upkeep there would bankrupt the county. The Cafaros also sued to stop the move, filing a taxpayers lawsuit in 2006. They lost on just about every count.
Lorain County Prosecutor Dennis Will, special prosecutor on the case, and Paul Nick of the Ohio Ethics Commission did not return messages seeking comment. McNally and Sciortino also did not return messages.
In a statement, Anthony Cafaro said he plans to plead innocent. He called the charges "meritless."
"I look forward to proving my innocence. The taxpayers of Mahoning County are now paying for the ill-advised decision to purchase Oakhill Renaissance Place. My warnings about the costs to the taxpayers have been correct. This unfounded indictment will not silence my opposition to irresponsible governance.
The Cafaro Co., in a statement, also refuted the allegations.
"We learned (Thursday) that a Mahoning County Grand Jury has returned an indictment against The Cafaro Co. and two related entities. These charges arise out of a 2006 taxpayer lawsuit that challenged the decision of the Mahoning County Board of Commissioners to purchase Oak Hill Renaissance Place. The taxpayer lawsuit raised concerns about the hidden, multi-million dollar costs to the Mahoning County taxpayers of purchasing Oakhill. The lawsuit brought by Ohio Valley Mall Co. exercised its right as a taxpayer to oppose wasteful and excessive spending of taxpayer monies. Subsequent events have proven that this opposition to the multi-million dollar purchase of the Oakhill facility was correct.
"The Cafaro Co. and its related entities are innocent of these meritless allegations."
Facebook
MySpace
Digg
Stumble
Mixx
Fark
del.icio.us
LiveSpaces
|
TheRealityPolice
|
|
|---|---|
|
08-02-10 8:06 AM
|
Hoopie:"according to several money managers and consultants who I listen to." Please tell us who you listen to, because they are incompetent and we need to avoid them at all costs. atodd: There is also a new development in Wash PA sitting; the JCPenney was supposed to go there, at the last minute it had to remain in the old mall - not sure about now, but that was LAST YEAR. Writing on the wall. I used to work for some "well connected folks" up north; my boss was indicted along w/a bunch of Y'Town mafia - last I heard, he was in the WPP.
|
|
atoddh
|
|
|
08-01-10 3:26 PM
|
Ellis:They may have gravitated to drugs.Definitely construction and usually government related projects as in this case.
|
|
beach1
|
|
|
08-01-10 10:32 AM
|
these elected officials must be democrats because if they were republicans it would be in headlines!!!!!!!!!!! the liberal a.p. does all it can to protect all democrats and the dems will win in nov.because the news media will not allow them to get beat,watch the news they are already beating up on repubs with media like nbc,cnn,abc,pbs,etc!!
|
|
EllisWyatt
|
|
|
08-01-10 8:45 AM
|
The "mafia" is not very powerful in the sense that Cosa Nostra does not run the illegal gambling, numbers, policy, drug dealing or political corruption in Wheeling anymore. But that does not mean that there is not organized crime. Political corruption, scams, payoffs, theft of tax dollars, using one's position to benefit one's business and/or the business of their cronies, using the bureaucracy of government to hurt competitors and help themselves-I am sure that these things still occur. The only difference is, they are carried out not by organized crime family members but, rather, by certain interrelated family members and their business partners. Corruption is alive and well in West Virginia. But it is not controlled by the mafia. In fact, if you rounded up all of the Cosa Nostra guys from Pittsburgh, West Virginia, Youngstown and Cleveland, you might have 20 guys, none of whom is younger than 65. Corruption is expected in Youngstown and WV.
|
|
atoddh
|
|
|
07-31-10 11:51 PM
|
robo: The mob frequently puts their money into legitimate venures such as commercial real estate.John Gotti Jr.,now out of prison,lives on rent from NYC commercial holdings the family still ownes. One does wonder about mob influence in WV politics going forward.
|
|
robojock
|
|
|
07-31-10 11:27 PM
|
The mob link is also quite intriguing as it is true that many mob holdouts have went into politics. In fact, here are several facts regarding the recent Clinton wedding. Chelsea's new in laws are both mob linked criminals / political criminals. The Slick Willy and Overthehillary are both staying at the home of the Soros clan, even more criminals. Honestly people, does it get any better....or worse?
|
|
robojock
|
|
|
07-31-10 11:23 PM
|
Part of the process that the OV must undertake is a fact check on politics. The OV can not keep voting in the same old "gang" and expect some giant change. Additionally, the OV must do what the US Govt. is forgetting how to. That is treating businesses and wealth building visionaries with respect, instead of as enemies and unfettered tax sources.
|
|
Wheeldog
|
|
|
07-31-10 10:43 PM
|
(cont.) Downsizing is not easy, especially after the past few decades of almost continuous vigorous economic growth. However, the future will be far less generous and much more challenging economically and geopolitically. Growth can no longer be taken for granted. National, state and local governments will be forced to triage their priorities and commitments. Many businesses have already begun this process. Large shopping malls are artifacts of an age that is quickly fading into history. Eventually, the general downsizing will impact suburban developments resulting in the reversal of people leaving the cities for the burbs. This process can be far more orderly and efficient if governments begin seriously planning for economic contraction.
|
|
Wheeldog
|
|
|
07-31-10 10:25 PM
|
"Additional retail or service will not work," atoddh. I agree with both you and Ellis on this point. Service jobs are essentially paying someone to do something that you don't want to do for yourself. They are not wealth generating jobs. However, I believe that the OV region and many other communities and areas face a very long period of a shrinking economy. It would be great to reestablish the manufacturing base of the OV. However, given the state of the national and global economy that is highly unlikely in the foreseeable future. Even if the economy were to significantly improve it would take a couple of decades to rebuild the manufacturing base of the region. Wheeling and the general region should be following the example of Detroit in finally beginning to face and come to grips with the reality of a long term economic slowdown.
|
|
wvjeeper
|
|
|
07-31-10 9:12 PM
|
can we get more details?
|
|
atoddh
|
|
|
07-31-10 7:54 PM
|
Wheel:The proposed 30 billion for smaller banks(small business) is probably intended to prop them up during the coming commercial real estate bust.The bust will wipe out their capital for lending.Huntington is an example of a regional bank that will be heavily impacted.
|
|
walksabout
|
|
|
07-31-10 7:48 PM
|
a demochrolinic
|
|
walksabout
|
|
|
07-31-10 7:47 PM
|
december following the democratic political cleansing there must be a demand to see the docs.
|
|
walksabout
|
|
|
07-31-10 7:40 PM
|
saw buzzards soaring overheand today. went to investigate the possible reason. a democratic fund raising going on. no surprise there.
|
|
atoddh
|
|
|
07-31-10 7:35 PM
|
Wheel:retail real estate depends on consumption which in turn depends on employment.Employment is not increasing and after 99 weeks unemplyment benefits run out leaving many destitute.The OV has a real problem as it was declining already prior to the W-P closures.The only solution is a new manufacturing initiative/direction: Pittsburgh style per Ellis.Additional retail or service will not work.
|
|
EllisWyatt
|
|
|
07-31-10 6:39 PM
|
Driving to the suburbs for shopping and housing is an efficient use of resources but busing kids over an hour to school each way in the Information Age IS an efficient use of resources?
|
|
atoddh
|
|
|
07-31-10 6:30 PM
|
Yes Wheel it will be.Elizabeth Warren has been sounding the alarm.The situation in Morgantown is a good example:Suncrest Center.They have acres of unoccupied space already built with debt depite the relative prosperity of Morgantown.Huntington will be stuck with it.
|
|
Wheeldog
|
|
|
07-31-10 4:53 PM
|
James Kunstler, a writer, characterizes the explosion of far flung suburbs and mega malls as the greatest misallocation of resources in human history. It is a living arrangement with no future, because they are excessively energy inefficient and difficult to maintain. They are completely dependent on the willingness of people to drive long distances for shopping, education, employment, etc and on the construction and maintenance of expensive highways, roads, streets, water and sewer systems and other infrastructure. It is a house of cards on a shaky foundation.
|
|
Wheeldog
|
|
|
07-31-10 4:42 PM
|
"It is a symptom of what is comming in the commercial market collapse," attoddh. I get the same impression from my reading. A meltdown of commercial real estate will be phase 2 of the ongoing financial decline.
|
|
atoddh
|
|
|
07-31-10 4:33 PM
|
Hopie:The properties are now worth far less than the debt on them so they have negative equity.This lowers bank capital and puts the owners underwater also. If payments can not be made forclosure will occur just as in housing.But the numbers are huge with potential commercial buyers generally unable to obtain financing. Everything depends on consumption which is down. We may have upwards of an actual 20% unemployment in the US in 2011.
|
|
atoddh
|
|
|
07-31-10 3:53 PM
|
wvhoppie:Ms. Warren,head of the Fed oversight committe,very recently commented that many,many banks would soon be upside down on their commercial loans. It is the next big housing-like bubble to hit banking;especially regionals. Consumers are not spending as they once did. The repurchase of the Downtown buildings - for no purpose - may have been an analog of this Ohio situation.
|
|
EllisWyatt
|
|
|
07-31-10 10:58 AM
|
They should bring RICO indictments against certin former public officials and their cronies. They have been engaged in ongoing criminal conspiracies. "It's true, I have a lot of friends in politics. But they wouldn't be my friends for very long if they found out my business was narcotics instead of gambling, which they regard as a harmless vice. But drugs is a dirty business. No, it doesn't make any difference to ME what a man does for a living, you understand? But you're business is a little dangerous."
|
|
daddybig8
|
|
|
07-31-10 10:02 AM
|
more money for the mall
|
|
SphinxRising58
|
|
|
07-31-10 10:02 AM
|
Gee, who would ever ever thought it possible, elected officials involved in mob activity, lol Apparently some people do not pay attention to who they vote for, as if they did, they would have learned long ago that many local mafia figures not only have relatives working in law, but that many politicians have marrried females with mafia close ties, lol
|
|
formerohvalleyresident
|
|
|
07-31-10 9:56 AM
|
Yeah Hoopie, Commercial Real Estate is a good investment right now if you need to launder profits from drugs sales, prostitution, gambling, etc. With 10% unemployment the normal for next 29 months of the one term Obama Administration, commercial RE will continue to tank.
|