CLEVELAND, OH – Two more men have been indicted in connection with a brazen scheme to siphon over $3.3 million from the Cuyahoga Heights School District. David Donadeo, age 39, formerly of Broadview Heights, Ohio, and Dennis Boyles, age 39, of Garfield Heights, Ohio, are now facing federal charges alongside previously indicted Joseph Palazzo, the District’s former IT Director.
The indictment, unsealed today, alleges a conspiracy to commit mail fraud and money laundering. Boyles also faces two counts of tax evasion and one count of filing a false tax return. According to the U.S. Attorney’s Office for the Northern District of Ohio, Palazzo, while employed as IT Director, used his position to submit bogus invoices for IT goods and services that never materialized.
These weren’t just a few dollars skimmed off the top. The indictment details a systematic operation where Palazzo, Donadeo, Boyles, and at least one other accomplice created “shell” companies. The District issued checks to these phantom vendors, and the stolen funds were split – half going to Donadeo, Boyles, and the unidentified co-conspirator, the other half allegedly funneled back to Palazzo as kickbacks. The total loss to the District: a staggering $3,333,448.
The scheme involved submitting invoices for fictitious software, hardware that was never delivered, or items already purchased through legitimate means. The companies listed on these invoices were nothing more than fronts, existing solely to launder the stolen money. Boyles, in a particularly galling move, allegedly failed to report his share of the ill-gotten gains on his tax returns for 2008, 2009, and 2010, resulting in $30,064 in unpaid taxes.
Federal investigators from the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, the State of Ohio Auditor’s Office, the Cuyahoga County Sheriff’s Office, and the United States Postal Inspection Service worked together to unravel this complex fraud. Assistant U.S. Attorneys Rebecca Lutzko, Perry Mastrocola, and James L. Morford are prosecuting the case.
It’s crucial to remember that an indictment is merely an accusation. Donadeo and Boyles are presumed innocent until proven guilty. However, if convicted, they face sentencing determined by the court, taking into account their criminal history (if any), their roles in the scheme, and the severity of the violations. The Grimy Times will continue to follow this case and bring you updates as they develop.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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