Gregory Schroeder

Gregory Schroeder, 61, 212 W. Emeline St., Milford, former director of buildings and grounds for Warsaw Community Schools, has been arrested on initial charges of corrupt business influence, official misconduct, bribery and theft.

He is being held on $5,000 surety and $250 cash bond.

A second individual, Brian K. Stowers, has been arrested by Kentucky State Police, in connection with the case. Stowers has been charged with corrupt business influence, aiding, inducing or causing official misconduct, bribery and theft. He is currently being held in the Shelby County, Ky., jail awaiting extradition.

Warsaw Police report on Oct. 27, 2014, Schroeder admitted to WCSC officials he had been receiving illegal monetary kickbacks in return for providing business to Continental Maintenance Specialties Inc., and its owner Stowers. Schroeder, whose position with the Warsaw Community Schools qualifies under Indiana Code as a public servant, purchased mostly consumable goods from the business.

An investigation into the incident revealed Schroeder personally received approximately $115,620.87 in illicit kickbacks, which included a Harley Davidson motorcycle, between the years 2006 and 2012. Purchases from Continental Maintenance Specialists occurred annual from 2005/2006 through 2013/2014 school years.

It is estimated Schroeder over-purchased items from Continental Maintenance Specialties, Inc., in the amount of $828,151.34.

Warsaw Police Department was aided in their investigation by the Warsaw Community School Corporation and the Indiana State Board of Accounts.