Bolingbrook Property Manager One of Nine Charged in Kickback Scheme

A 48-year-old Chicago man who managed an office building and warehouse in is being charged with mail fraud for his part in an alleged fraudulent billing and kickback scheme, FBI officials said last week.

According to an FBI release, the principal owner and six top executives of Krahl Construction and two employees of a former general contractor, together with two former employees of client companies, were indicted for causing losses of $9 million and $400,000 respectively to the two client companies, while the former employees of those firms allegedly received kickbacks.

According to the indictment, the defendants fraudulently inflated the cost of renovation projects performed by Krahl and caused the creation of false documents to support the inflated costs, resulting in overbilling at least $15 million to Company A, which suffered actual losses of at least $9 million, and losses of approximately $400,000 to Company B.

Company B, the release said, was identified a property management firm located in Chicago that hired Krahl to develop commercial property in known as the Tallgrass project, located near the intersection of Remington Boulevard and Veterans Parkway.

Timothy Scannell, 48, of Chicago, and vice-president of Company B, managed the three-story Tallgrass office building and warehouse, which Krahl was hired to remodel.

According to the indictment, Scannell allegedly solicited and accepted kickbacks from Krahl, including payments totaling approximately $100,000, as well as renovations on his home totaling approximately $19,500.

In exchange for the kickbacks, Scannell promised to take favorable action on behalf of Krahl as requested and as opportunities arose, including agreeing to help Krahl obtain contracts from Company B, while Scannell was employed at Company B, the release said.

The indictment seeks approximately $119,500 from Scannell.

Others indicted include:

• Krahl President John Paderta, 52, of Fontana, WI, and formerly of Burr Ridge;
• Krahl CFO Thaddeus Stepniewski, 50, of Lisle;
• Krahl Executive Vice President Doug Harner, 47, of Chicago;
• Krahol project manager Scott Mousel, 48, of New Orleans and formerly of Lisle;
• Krahl project manager John Bak, 37, of Ringwood;
• Krahl project manager assistant Heather Ellis, 34, of Midlothian;
• Krahl project manager assistant Erin Scott, 36, of Clarendon Hills;
• Property manager Scott Solano, 40, of Burr Ridge.

All nine defendants were charged together in a 16-count indictment, the release said.

For more on the scheme, CLICK HERE.