GRIMY TIMES EXCLUSIVE
A Sandusky businessman has been convicted of multiple counts of fraud related to his dealings with Castalia Farms, a hospitality facility owned by Owens-Illinois, Inc. Scott C. Wagner, 53, of Perkins Township, Ohio, was found guilty of conspiracy to commit wire fraud, conspiracy to commit money laundering, and multiple counts of wire fraud, mail fraud, concealment of money laundering and of use of criminally derived property.
According to trial testimony and documents filed in the case, Wagner controlled the day-to-day operations of his company, Construction Equipment & Supply (CES), and submitted false invoices to Castalia Farms manager Michael Conrad. These invoices, which were then passed on to Owens-Illinois, Inc., included equipment rentals that never occurred, purchases of construction supplies and other goods that never occurred, and purchases of construction supplies that were far in excess of what was actually delivered.
One egregious example of Wagner’s scheme involved a piece of equipment used to grind trees and other vegetation, which was rented to Castalia Farms for 532 days. However, according to court documents, the grinder was not at Castalia Farms for nearly all the time it was billed to Owens-Illinois, Inc. as a rental. As a result, the company was overbilled by more than $350,000.
In another scheme, Wagner submitted a fraudulent invoice to Owens-Illinois, Inc. for $47,925 worth of landscaping work, purportedly done at Castalia Farms. However, the work was actually done at Wagner’s personal residence, and the company paid the invoice in December 2010.
Wagner’s crimes were uncovered through an investigation by the Federal Bureau of Investigation, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Adam Hollingsworth.
Scott C. Wagner, 53, of Perkins Township, Ohio, was convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, and multiple counts of wire fraud, mail fraud, concealment of money laundering and of use of criminally derived property.
City and State: Sandusky, Ohio
EXACT DATE: Not specified
Sentence or outcome: Conviction
Dollar amounts: $350,000 and $47,925
Defendant/respondent: Scott C. Wagner
Key Facts
- State: Ohio
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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