Banner
News

O’Neal Steel and Leeco Steel prevail in RICO/fraud lawsuit

July 29, 2014 - In January 2011, O’Neal Steel Inc. and Leeco Steel LLC, instituted a lawsuit to recover damages sustained as a result of having been sold steel on the basis of fraudulent representations of its quality. The defendants were David Chatkin, Lance Chatkin, Bruce Adelstein, Ryan Chatkin, Von Argyle, General Purpose Steel, Inc., and World Wide Steel Unlimited, Inc. Claims were made for violations of the Racketeering Influenced and Corrupt Organizations Act (RICO), conspiracy to violate RICO, and under Alabama law for fraud, wantonness and conspiracy to commit wantonness. After a two and a half week trial in Birmingham, Alabama, on June 25, 2014, a jury rendered verdicts in favor of O’Neal and Leeco for $17,000,000 in RICO damages and $100,000,000 in punitive damages. 

According to Bill Jones, Vice-Chairman of O’Neal Industries, the parent company of O’Neal and Leeco, the jury verdict sends a clear message on behalf of the steel industry:  “Manufacturers and distributors trust that the steel supplied to them is as represented, especially in critical structural applications, and consumers have to believe that the products they use will meet the required safety standards. This verdict shows that fraud has no place in the steel service center industry. General Purpose and Worldwide are out of business, and several of the individual defendants have filed for bankruptcy. While we are not likely to recover all of the damages the jury has awarded to us, this case wasn’t about money. It was about doing the right thing and holding accountable those who put property and lives at risk.”

The case was tried in the Northern District of Alabama before the Honorable Karon O. Bowdre. O’Neal and Leeco were represented by Crawford S. McGivaren, Jr., Annette Kinderman and Wesley Fain of the Birmingham law firm Cabaniss, Johnston, Gardner, Dumas & O’Neal.

O’Neal Steel and Leeco Steel are one of more than a dozen companies that comprise parent company O’Neal Industries, Inc.

Current Issue

MM-Cover-10-14-current

October 2014

ON THE COVER: 
Gearing up for 2015
Tackling foreign policies, regulations, trade balances and capital plans, here are forecasts for virtually everything.

MM-Digital-button-current1

Subscribe: PRINT/DIGITAL MAGAZINE - eNEWSLETTERS

Midwest-MM-home-ad-5

Advertisement

Modern Metals on Twitter

White Papers

More White Papers >
Banner

Industry Partners

Alloy Bar Products

Custom Rubber Products

Metals Distribution

Service Centers

Sierra Alloys Royal Rubber Co. ThyssenKruppnMaterials NA Heidtman Steel Products

Aluminum

Cutting Software

Perforated & Expanded Metal

North American Steel Alliance
Channel Alloys SigmaTEK Systems McNichols Co. Reliance Steel & Aluminum Company

Bar

Cutting Systems

Plasma Technology

Thickness Gauges

Gerdau Messer Cutting Systems, Inc. ESAB Welding & Cutting Products Compusource Corporation

Bevelers

Drilling

Plate

Enmark Systems, Inc.
Steelmax Hougen Manufacturing, Inc. Allor Manufacturing Inc.

Stainless Steel

CNC Cutting (Plasma, Waterjet, Laser, Router)

Financial Services

Artco Group Stainless Sales Corp.
Multicam Inc. BMO Harris Bank Churchill Steel Plate Ltd Straub Metal International

Coated Coil

GE Capital Finance Ranger Steel

Stainless, Nickel, Aluminum, Pipe, Tube & Bar

American Nickeloid Metals

Investment Banking

Precision Grinding

Prudential Stainless & Alloys, L.P.
Centria Coating Services Brown Gibbons Lang & Company Joco Precision Grinding

Steel

Metal Coaters

Laser Technology

Profiling Software

ArcelorMittal

Coil Processing

AltaMAR, Inc. FastCam Pty Ltd. Central Steel Service, Inc.
Bradbury Group Amada America, Inc.

Rolled and Extruded Aluminum Products

Parker Steel Co.
Braner USA LVD Strippit Aleris Rolled Products SSAB
Burghardt + Schmidt GmbH Mitsubishi Laser-MC Machinery Systems, Inc.

Sawing Technology

Summit Steel Corporation
Butech Bliss

Machining Centers

Behringer Saws, Inc.

Steel Fabrication

Formtek-Maine Handtmann CNC Cosen International, Inc. Voortman Corporation
Herr-Voss Stamco

Material Handling

Cut Technologies Metal

Titanium

IMS Systems, Inc. Canrack Metal Center Systems DoALL Sawing Products TSI Titanium
Leveltek Samuel Strapping Systems HE&M Saw

Tooling

Machine Concepts Steel Storage Systems Inc. Kasto Carlson Tool & Manufacturing Corp.
Red Bud Industries The Caldwell Group, Inc. Metlsaw Systems

Tube & Pipe

Tishken

Metal Alloy Analysis & Verification

Sawblade.com Independence Tube Corp.

Copper & Brass

Thermo Scientific Niton Analyzers Scotchman Industries, Inc. National Tube Supply Company
Christy Metals Inc.

Metal Finishing & Deburring

Wikus Saw Technology Specialty Pipe & Tube
Farmer's Copper Supermax Tools

 

Turnkey Finishing System

 

 

 

Intellifinishing

 

 

 

Waterjet

 

 

 

TECHNI Waterjet

TrendPublishing

twitter facebook linkedin rss

 

FFJ-1114-brandingcovers