Construction Equipment Sandusky Ohio
The owner of Construction Equipment & Supply was federally indicted on a number of charges in connection to a vast fraud scheme.
On Wednesday, U.S. Attorney Steven Dettelbach announced a 32-count indictment against Scott Wagner, 51, owner of the Old Railroad Road business.
Wagner now stands accused of several instances of criminal conspiracies, wire fraud, mail fraud, money laundering and destruction of records, according to U.S. attorney spokesperson Michael Tobin.
Wagner allegedly conspired with Michael Conrad, 48, of Castalia, who pleaded guilty to a $6 million embezzlement during his time as caretaker of Castalia Farms, an Owens-Illinois retreat center on Heywood Road.
Wagner not only funneled money through Owens-Illinois and his construction supply company, he also allegedly defrauded Kyklos Bearing International on Perkins Avenue, and Sawyer Structural Steel of Holland, Ohio.
During his schemes with Castalia Farms, Wagner allegedly submitted false invoices to Conrad, who then passed them on to Owen-Illinois, Dettelbach said. The billings were often for equipment rentals that never occurred, the purchase of supplies that never occurred, or the purchase of supplies far in excess of what was actually delivered.
In one example, O-I was billed $350, 000 for 532 days of a tree grinder rental — “in reality, the grinder was not at Castalia Farms for nearly all (that) time, ” Dettelbach stated.
In another instance in October 2010, Conrad submitted a nearly $48, 000 invoice for landscaping work to O-I, when in fact, the work was being done at Wagner's Perkins Township home.
Wagner's alleged involvement with KBI was similar to his dealings with O-I — officials said Wagner and a KBI employee submitted false invoices for goods that were never delivered by Construction Supply & Equipment.
And at the Holland steel business, Wagner allegedly conducted the same kind of scheme, along with Sawyer Steel general manager Tom Walters Jr.
There, Wagner and Walters again submitted false invoices, Dettelbach said.
Walters was also indicted for his role in the alleged crimes, and is charged with conspiracy and mail fraud.
The case is now being prosecuted by assistant U.S. Attorney Gene Crawford, who's also handling Conrad's case.