Woman pleads in Geauga case

Akron woman pleads guilty for her role in embezzlement case

Stephanie Stewart has taken a guilty plea after being charged wtih her father, Geauga County’s former IT director, in a 334-count indictment that accused them of embezzling $1.8 million in county funds over a nearly eightyear period.

Stewart, of Akron, is pleading to one count of second-degree felony engaging in a pattern of corrupt activity.

According to court records, Stewart agrees to testify against any other individuals involved in the case.

She also has agreed to pay $481,304 in restitution. Geauga County Prosecutor Jim Flaiz said that money represents the amount she received in embezzled funds.

A sentencing/restitution hearing is scheduled for Jan. 4. She is facing up to eight years in prison and up to a $10,000 fine. Flaiz said they are seeking prison time for Stewart.

“I’m pleased to able to

“I’m pleased to able to resolve this case without the county incurring additional costs that would come with a trial,” — Geauga County Prosecutor Jim Flaiz

resolve this case without the county incurring additional costs that would come with a trial,” Flaiz said in an Oct. 24 phone interview.

An investigation began when it was discovered there were irregularities in the Geauga County Auditor’s Office. It was learned that Stewart’s father, Stephen Decatur, was using her company, SMCS Tech, for county information technology work.

While looking into SMCS Tech, it was discovered that the company had been receiving significant wire transfers from Woodlands, Texas-based IT company ITERSource. It was then learned that Decatur, who had previously done work for ITERSource before being employed by Geauga County, approached ITERSource in 2009 to supply IT services to Geauga County.

An arrangement was then made in which ITERSource would bill the county for IT services, keep a percentage of the money and use Decatur’s daughter’s company as a subcontractor.

ITERSource is a vendor

that was used by the Geauga County Auditor’s Office from 2009 through 2017. The company along with its president, 63-year-old Eugene Krus Jr., and vice president, 73-yearold William Kelly Jr., were indicted earlier this year on charges of complicity to aggravated theft of $1.5 million or more, complicity to commit having an unlawful interest in a public contract and complicity to commit theft in office.

Decatur, 59, died Oct. 1 at University Hospital in Cleveland. Flaiz said he had been out on bond and was in the hospital for about a month before he died.

“I am frustrated that the State of Ohio will not have its day in court,” Flaiz said in a statement confirming Decatur’s passing. “Through the criminal proceedings, my Office has frozen a number of Mr. Decatur’s assets, and we will continue to pursue his estate for monetary recovery for the taxpayers of Geauga County.”

ITERSource and Krus have change of plea hearings scheduled for Dec. 11. Charges against Kelly have been dropped. Flaiz said that Kelly joined the company after the embezzlement began and he did not have knowledge

that made him culpable.

Frank Gliha resigned from his position as county auditor in the wake of the scandal. He was sentenced in June on five-counts of dereliction of duty. Four of the five charges stemmed from the IT case. He pleaded guilty to those four charges and nocontest to the fifth.

On the first two charges, Gliha admitted to failing to secure competitive bids for products or services over $50,000. These incidents occurred in 2013 and 2014, said Special Prosecutor Bryan Kostura.

The two other dereliction of duty charges dealt with Gliha approving the purchase of equipment without approval from the Automatic Data Processing Board, and his failure to create a system of internal controls to prevent the abuse of public funds from 2011 to 2018.

Visiting Judge Robert Brown fined Gliha $1,250 and ordered him to pay court costs. The judge also forbid Gliha from running for public office for four years. A 90day jail term was suspended.

The prosecutor’s office said there was no evidence Gliha benefited from any of Decatur’s and Stewart’s alleged wrongdoing.