Geauga County embezzlement case: Texas executives arraigned

Two Woodlands, Texas-based IT company executives accused in the embezzlement of Geauga County funds were arraigned May 8 in Geauga County Common Pleas Court.

ITERSource Corp., along with its president, 63-year-old Eugene Krus Jr., and vice president, 73-year-old William Kelly Jr., pleaded not guilty to 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.

Judge Forrest W. Burt set a personal recognizance bond for each defendant. A pretrial has been scheduled for July 19.

ITERSource is a vendor that was used by the Geauga County Auditor’s Office from 2009 through 2017.

The grand jury indictments of the corporation and its leaders are related to the investigation into former Geauga County IT Director Stephen Decatur, who is accused of stealing about $1.8 million from the county.

According to Geauga County Prosecutor James Flaiz:

During the investigation into irregularities that were discovered in the auditor’s office, it was learned that the former IT director was using his daughter’s company, SMCS Tech, for county IT work. While looking into SMCS Tech, it was discovered that SMCS Tech had been receiving significant wire transfers from 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.

Decatur, a 59-year-old Chester Township resident, and his daughter, 35-year-old Stephanie Stewart of Akron, were previously charged in a 334-count indictment. A pretrial in their case is scheduled for June 20.

Krus and Kelly are each facing four counts.

A phone message seeking comment was left for Houston-based defense attorney William Rucker.

Decatur and Stewart, who remain free on bond, have waived their right to speedy trials. Their next pretrial is scheduled for June 20.

Then-County Auditor Frank Gliha resigned from office after the scandal came to light.