Fevola has agreed to train with Casey on a trial basis, with the Demons only finding out through a press statement released by Fevola's management group Velocity Sports.
Schwab did not hide his displeasure at the decision.
"We're disappointed. But only to the extent that I think it's contrary to the alignment. An alignment is about having an alignment of views as well as a legal and financial alignment," Schwab told Melbourne radio station 3AW.
"It's also about having an alignment of understanding and this was outside of that. We move on and we have to work with what we have to work with but we want it known that it was something we didn't support."
Schwab said the Demons' concerns with Casey signing Fevola had nothing to do with the off-field issues that have followed him in recent years, but rather the impact it will have on the development of its young players, particularly forward Lucas Cook, who was their first-round draft choice last year.
"We felt both clubs were about the development of young players. We've got a young list, we've got a number of tall players coming through that area of the ground. We made our position clear," he said.
"The fact they've made their own call is a position that they can take but we've made it known it is something we didn't support. We don't feel it is in the best interests of either club."
Schwab said the Demons and the Scorpions have had a good working relationship in their two-year alignment but Fevola's potential arrival at Casey was an example of problems that can arise with VFL-AFL alignments.
"I think all clubs will consistently assess what is the best model for them and we will continue to assess that from our point of view. The one thing we will never compromise is the long-term development of our players, and when these decisions are made, it potentially does that," he said.
"We have an alignment to make sure it is the best development model. If it ceases to be the best development model, we have to reconsider our position.
"There are always lessons learnt and there are certain things that have to be worked through and talked through and this will clearly be one of them."
