A grand jury indicted Falzone on charges of theft in office and obstructing official business, said Ryan Miday, a spokesman for Prosecutor Bill Mason.
State investigators also looked into missing items -- including guns and drugs -- from the department's evidence room, Miday said. But neither they nor an independent investigator appointed by the village could not determine who was responsible for taking the items.
The police department could not account for $11,000, drugs and eight guns that were confiscated during a number of separate police busts.
Falzone could not be reached for comment.
He resigned in February, giving no reason for ending a police career that spanned four decades. Falzone had been on paid leave since The Plain Dealer reported in November eight guns and heroin and cocaine worth thousands of dollars was missing from the police property room.
He has said most discrepancies resulted from poor record keeping and that the problem has been fixed.