Ex-Geauga County IT director, daughter accused of stealing $1.8 million in public money
CHARDON, Ohio Jan 30 2018 — Geauga County’s former chief technology officer and his daughter are accused of stealing more than $1.8 million in public money through a corruption scheme that played out over an eight-year period, officials said.
Stephen T. Decatur authorized payments from Geauga County to SMCS Tech, a Fairlawn company owned and operated by his daughter Stephanie E. Stewart, and a second vendor from 2010 to 2017. The companies then sent cashier’s checks to Decatur, who put the money into his personal account, according to a 334-count indictment filed in Geauga County Common Pleas Court.
A Geauga County judge has also appointed a special prosecutor to investigate how the county auditor’s office approved hundreds of transactions without contracts, and whether those approvals violated the state law that requires a bidding process for public contracts worth more than $50,000, Geauga County Prosecutor James Flaiz and Sheriff Scott Hildenbrand said Monday at a news conference.
“Decatur, as the chief IT guy for the whole county, had all the keys to the kingdom,” Hildenbrand said. “[This] affected every one of the offices in the county.”
Decatur, 59, of Chester Township, faces hundreds of charges of engaging in a pattern of corrupt activity, aggravated theft, theft in office, money laundering, telecommunications fraud and having an unlawful interest in a public contract in the scheme, according to his indictment.
Stewart, 35, of Akron, is charged with engaging in a pattern of corrupt activity, aggravated theft, complicity to commit theft in office, money laundering, telecommunications fraud, receiving stolen property and complicity to having an unlawful interest in a public contract, according to her indictment.
Decatur’s attorney, Laurence Turnbow, said Monday that he was “shocked” by the number of charges included in the indictment, but he declined to comment further because he had not finished reading the 57-page document.
Court records do not list an attorney for Stewart.
Decatur worked for Geauga County for 13 years before he was arrested Oct. 25, officials said. Stewart was arrested Monday morning, Flaiz said at the news conference.
Decatur posted a $25,000 bond following his first court appearance and remains free, officials said. Stewart was taken to the Geauga County Jail following her arrest.
Their next court appearances have not yet been scheduled.
Officials initially identified $259,700 in payments Decatur authorized to SMCS Tech, according to a complaint filed in Chardon Municipal Court. Investigators discovered the additional payments to the second vendor later, Flaiz said Monday afternoon.
Flaiz declined to identify the second vendor, citing an ongoing investigation that could result in additional people being charged in the scheme. The vendor — which Flaiz described as a “legitimate company” that has done business with Geauga County for years — took money for services and directed the money to SMCS Tech, Flaiz said.
“We are committed to prosecuting the people who have been indicted, and I do expect there might be additional indictments in the future,” Flaiz said.
Decatur and Stewart primarily used the stolen funds for day-to-day living expenses, Flaiz said.
Decatur misled investigators, officials said. In one instance, Decatur told sheriff’s deputies he would help them find a missing computer worth $3,500. Investigators eventually found the computer at Decatur’s house, Hildenbrand said.
Decatur’s pension account is frozen, and the prosecutor’s office has filed liens against property owned by him and Stewart, Flaiz said.
Officials filed a claim with Geauga County’s insurance provider to recoup at least some of the stolen funds, Flaiz said.
“My goal is to recover 100 percent of the money,” Flaiz said. “That’s what I intend to do.”
Special prosecutor Brian T. Kostura of the law firm McGlinchey Stafford is leading the investigation into the auditor’s office, Flaiz said.
Geauga County Auditor Frank Gliha, who also authorized the payments to SMCS Tech, said after Decatur’s arrest that he frequently authorizes payments for county services and would not knowingly approve any payments related to criminal misconduct.
Hundreds of services were approved without contracts, officials said. Decatur did some of the work himself and pocketed the money, Flaiz said.
“There were no contracts. There was no competitive bidding for these services,” Flaiz said.
Gliha was not immediately available for comment following Monday’s news conference.
The prosecutor’s office hired the forensic accounting firm Skoda Minotti to assist in the investigation, Flaiz said. The county treasurer’s office also assisted in the investigation.
