- FMA
- The Fabricator
- FABTECH
- Canadian Metalworking
Categories
- Additive Manufacturing
- Aluminum Welding
- Arc Welding
- Assembly and Joining
- Automation and Robotics
- Bending and Forming
- Consumables
- Cutting and Weld Prep
- Electric Vehicles
- En Español
- Finishing
- Hydroforming
- Laser Cutting
- Laser Welding
- Machining
- Manufacturing Software
- Materials Handling
- Metals/Materials
- Oxyfuel Cutting
- Plasma Cutting
- Power Tools
- Punching and Other Holemaking
- Roll Forming
- Safety
- Sawing
- Shearing
- Shop Management
- Testing and Measuring
- Tube and Pipe Fabrication
- Tube and Pipe Production
- Waterjet Cutting
Industry Directory
Webcasts
Podcasts
FAB 40
Advertise
Subscribe
Account Login
Search
O’Neal Steel, Leeco Steel prevail in RICO/fraud lawsuit
- June 27, 2014
- News Release
- Metals/Materials
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, Ala., on June 25, 2014, a jury rendered verdicts in favor of O’Neal and Leeco for $17 million in RICO damages and $100 million 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.”
Related Companies
subscribe now
The Fabricator is North America's leading magazine for the metal forming and fabricating industry. The magazine delivers the news, technical articles, and case histories that enable fabricators to do their jobs more efficiently. The Fabricator has served the industry since 1970.
start your free subscription- Stay connected from anywhere
Easily access valuable industry resources now with full access to the digital edition of The Fabricator.
Easily access valuable industry resources now with full access to the digital edition of The Welder.
Easily access valuable industry resources now with full access to the digital edition of The Tube and Pipe Journal.
Easily access valuable industry resources now with full access to the digital edition of The Fabricator en Español.
- Podcasting
- Podcast:
- The Fabricator Podcast
- Published:
- 04/16/2024
- Running Time:
- 63:29
In this episode of The Fabricator Podcast, Caleb Chamberlain, co-founder and CEO of OSH Cut, discusses his company’s...
- Trending Articles
AI, machine learning, and the future of metal fabrication
Employee ownership: The best way to ensure engagement
Steel industry reacts to Nucor’s new weekly published HRC price
Dynamic Metal blossoms with each passing year
Metal fabrication management: A guide for new supervisors
- Industry Events
16th Annual Safety Conference
- April 30 - May 1, 2024
- Elgin,
Pipe and Tube Conference
- May 21 - 22, 2024
- Omaha, NE
World-Class Roll Forming Workshop
- June 5 - 6, 2024
- Louisville, KY
Advanced Laser Application Workshop
- June 25 - 27, 2024
- Novi, MI