Scott Construction Equipment
It is unfortunate that the government chose to place Mr. Wagner and his company in the information filed against Michael Conrad. It is odd since Mr. Wagner and his employees are still working hard to provide additional materials to the grand jury in order to allow it to complete its investigation.
The CES employees have also consented to interviews with FBI agents about all aspects of Construction Equipment & Supply, and its relationship with Castalia Farms and Mr. Conrad.
Castalia Farms was brought to Construction Equipment & Supply by Mr. Conrad through a former employee of CES. That former employee, who became a part owner of CES, told the FBI at the very first meeting involved in this investigation that he was responsible for at least 75 percent of the contacts with Castalia Farms, not Mr. Wagner.
It should be noted that Mr. Wagner and his company have cooperated fully with the FBI and the U.S. Attorney’s office over the last two years. Thousands and thousands of documents have been provided, and there have been multiple interviews with Mr. Wagner, all of which have been recorded.
It is important to note that Castalia Farms was an unusual customer. It was a real farm and needed a wide variety of constructiontype equipment and supplies in order to operate. But its function was to wine and dine OI customers who flew in on corporate jets to fish for trout, hunt pheasant and trap shoot while enjoying steak and lobster provided by OwensIllinois.
On many occasions Mr. Conrad would ask that unusual goods and services be purchased by CES for OI. These goods and services were to be billed by CES as construction equipment rentals, all as directed by Mr. Conrad. These included tickets to MIS, tickets to Cavaliers games, presents from Bed, Bath & Beyond which were apparently left in the guest rooms, not to mention a variety of other services. Indeed one expenditure was the rental of a suite at Kalahari for the family of a former CEO of OwensIllinois. Mr. Conrad asked that this too be paid for by CES and then billed as equipment.
On other occasions it was explained to Mr. Wagner that Mr. Conrad had said he needed to spend his budget for the particular year or it might be reduced, and so he directed CES to bill for goods and services that would not in fact be needed until the following year. Sometimes Mr. Wagner was told that Mr. Conrad wanted to spread the charge over two years, which would mean there were times when billing occurred when the rentals were not in fact in place.