Two former Oglesby employees indicted

NORWALK — A Cleveland-based attorney for Oglesby Construction Inc. said two former high ranking officials indicted on federal charges are no longer with the company. John F. McCaffrey an attorney at Tucker Ellis, LLP told the Reflector Monday that neither Jerry Reichert nor Adam Reichert are still employed with Oglesby following the indictments and said the company is cooperating with investigators. "Last week, Oglesby Construction learned that former employee and owner Jerry Reichert and Adam Reichert were indicted by a Federal Grand Jury for engaging in a scheme to manipulate data submitted as to the amount of paint and glass beads actually used to complete pavement marking contracts the company had with various state transportation agencies," McCaffrey said in a written statement. "Oglesby Construction has not been charged in connection with the alleged scheme committed by the Reicherts. Oglesby Construction has fully cooperated with law enforcement throughout the investigation." The indictment was filed Wednesday in federal court and the Reicherts have yet to appear before a federal judge, according to The (Toledo) Blade. Gerald E. Reichert and his son, Adam M. Reichert, who worked for Olgesby Construction Inc., are each charged with conspiracy, major fraud against the United States and destruction of records and tangible objects in U.S. District Court in Toledo. The allegations stem from Jan. 1, 2013, through Jan. 1, 2018. Oglesby Construction, headquartered in Norwalk, often contracted paint-striping services with state transportation departments in Ohio, Kentucky, and West Virginia, and they also worked with general contractors who contracted directly with state and local government, according to the indictment. Beginning about 2013, the father and son devised a scheme to defraud the states in the contracts and assistance programs by over-reporting the amount of paint and glass beads used to complete pavement-marking contracts. They did so by submitting false and fraudulent reports to state regulators showing that paint-striping crews used more paint and glass beads that were actually used, the indictment states. The Secretary of the U.S. Department of Transportation approved various highway construction projects which provided funds to state and local governments to complete large portions of their paint-striping contracts, according to court records. Oglesby Construction was paid using these federal funds — receiving in excess of $1 million — and the company also completed contracts that were funded entirely by state funds. According to the indictment, Gerald Reichert, who had managed the construction company's pavement marking operations since the 1980s, fostered a culture of "cheating on paint-striping contracts by instructing truck crews to use less paint and glass beads in their work while reporting to regulators that they used the appropriate amount specified in the contract." The Blade reported Adam Reichert, in an Oct. 26, 2015, email allegedly sent to a Kentucky Transportation Cabinet employee, indicated the company strove to "perform at the highest levels, work tirelessly and invest great resources to complete this project in an efficient and positive workmanship manner," and the company was willing to take a 30 percent deduction in payment "in order to keep good faith" with state regulators, the indictment shows. However, the scheme really led to increased profit and reduced the loss for each pavement-marking contract, the paper reported. According to The Blade report, Kentucky regulators discovered an apparent manipulation on a data logging system on a paint-striping truck and confronted an employee in June 2016. In response, the Reicherts directed employees to delete false spreadsheet templates from their computers and to remove other cheat devices on paint-striping trucks in order to conceal the scheme. Allison Dunn of The (Toledo) Blade contributed to this story.