Two Arrested For Corrupt Business Influence, Official Misconduct, Bribery, Theft
July 28, 2016 at 4:25 p.m.
By Staff Report-
Charges against Schroeder include corrupt business influence, a Class C felony; official misconduct, a Class D felony; bribery, a Class C felony; and theft, a Class D felony.
According to a WPD press release, Kentucky State Police also arrested Brian K. Stowers on a warrant that was obtained by WPD through the Kosciusko County Prosecutor’s office. Stowers is the owner of Continental Maintenance Specialties Inc.
Stowers is currently being held in Shelby County, Ky., awaiting extradition. He is being charged with corrupt business influence, a Class C felony; aiding, inducing or causing official misconduct, a Class D felony; bribery, a Class C felony; and theft, a Class D felony.
On Oct. 27, Schroeder admitted to WCS officials that he had been receiving illegal monetary kickbacks in return for providing business to Continental Maintenance Specialties Inc. and Stowers.
The Times-Union reported in its Oct. 28 edition that Schroeder was terminated after the school corporation learned he allegedly had received kickback payments over a number of years.
Schroeder, whose position with WCS qualifies under Indiana Code as a public servant, purchased mostly consumable goods from Continental Maintenance Specialties Inc., according to the WPD release.
A WPD investigation into the incident found Schroeder personally received approximately $115,620.87 in illicit kickbacks, which included a Harley Davidson motorcycle, between 2006 and 2012. Purchases from Continental Maintenance Specialties occurred annually during the school year from 2005-06 through 2013-14. The press release states Schroeder over-purchased items from Continental Maintenance Specialties Inc. in the amount of an estimated $828,151.34.
A press release from WCS states the last kickback payment that Schroeder received was Sept. 24, 2012. During that same time period, Schroeder also allegedly participated in the over-purchase and over-usage of chemical products sold by Continental Maintenance Specialties. During those years, WCS underwent multiple regular audits conducted by the Indiana State Board of Accounts. Those audits did not reveal any discrepancies linked to this matter. WCS is pursuing all available remedies for financial restitution from Schroeder, Continental Maintenance Specialties Inc. and Stowers, according to the WCS release.
“Through an internal evaluation and in consultation with the State Board of Accounts, WCS implemented additional controls regarding procurement and purchasing of supplies that are designed to eliminate such misconduct. Additionally, WCS immediately began training all employees to recognize and report any potential financial improprieties. All of these measures send a strong message that the Board of School Trustees will not tolerate this illegal activity,” the WCS press release states.
WPD was aided in its investigation by WCS and the Indiana State Board of Accounts.
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Charges against Schroeder include corrupt business influence, a Class C felony; official misconduct, a Class D felony; bribery, a Class C felony; and theft, a Class D felony.
According to a WPD press release, Kentucky State Police also arrested Brian K. Stowers on a warrant that was obtained by WPD through the Kosciusko County Prosecutor’s office. Stowers is the owner of Continental Maintenance Specialties Inc.
Stowers is currently being held in Shelby County, Ky., awaiting extradition. He is being charged with corrupt business influence, a Class C felony; aiding, inducing or causing official misconduct, a Class D felony; bribery, a Class C felony; and theft, a Class D felony.
On Oct. 27, Schroeder admitted to WCS officials that he had been receiving illegal monetary kickbacks in return for providing business to Continental Maintenance Specialties Inc. and Stowers.
The Times-Union reported in its Oct. 28 edition that Schroeder was terminated after the school corporation learned he allegedly had received kickback payments over a number of years.
Schroeder, whose position with WCS qualifies under Indiana Code as a public servant, purchased mostly consumable goods from Continental Maintenance Specialties Inc., according to the WPD release.
A WPD investigation into the incident found Schroeder personally received approximately $115,620.87 in illicit kickbacks, which included a Harley Davidson motorcycle, between 2006 and 2012. Purchases from Continental Maintenance Specialties occurred annually during the school year from 2005-06 through 2013-14. The press release states Schroeder over-purchased items from Continental Maintenance Specialties Inc. in the amount of an estimated $828,151.34.
A press release from WCS states the last kickback payment that Schroeder received was Sept. 24, 2012. During that same time period, Schroeder also allegedly participated in the over-purchase and over-usage of chemical products sold by Continental Maintenance Specialties. During those years, WCS underwent multiple regular audits conducted by the Indiana State Board of Accounts. Those audits did not reveal any discrepancies linked to this matter. WCS is pursuing all available remedies for financial restitution from Schroeder, Continental Maintenance Specialties Inc. and Stowers, according to the WCS release.
“Through an internal evaluation and in consultation with the State Board of Accounts, WCS implemented additional controls regarding procurement and purchasing of supplies that are designed to eliminate such misconduct. Additionally, WCS immediately began training all employees to recognize and report any potential financial improprieties. All of these measures send a strong message that the Board of School Trustees will not tolerate this illegal activity,” the WCS press release states.
WPD was aided in its investigation by WCS and the Indiana State Board of Accounts.
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