PITTSBURGH Two scrap-trading firms have filed a Racketeer Influenced and Corrupt Organizations (Rico) Act lawsuit against two scrap veterans and a slew of businesses for allegedly selling them both the same four containers in a stainless steel scrap deal.
Akjay International LLC, Madison, Conn., and International Alloys Inc., Mendham, N.J., have filed suit in U.S. District Court in New Jersey against PTP Consulting LLC and its owner, Salvatore Davi of Myrtle Beach, S.C., and Creed F. White of Freeland, Md., and his companies, Atlantic Coast Aluminum Recycling, Hanover Resource Recovery, Scrap Transport LLC, Waynesboro Recycling and White Metal Recycling, all located in Dallastown and Hanover, Pa. Also named in the lawsuit is Whites son, Joshua White of Gettysburg, Pa.
An Akjay executive met Davi in 2012 after hearing him speak at a scrap convention, according to court documents, and in December, Davi called Akjay to say he was brokering on his own and offered to sell Akjay six containers of stainless steel scrap. The loads were to be exported from the Port of New York and New Jersey in Newark, N.J.
Davi forwarded an e-mail from Creed White that contained certified scale slips as well as photographs of the loads, which were sourced from Joshua White, according to the lawsuit, and Akjay wired $200,812 to a PTP bank account. The lawsuit alleges that Davi then sold four of the same containers of scrap to International Alloys, which sent $129,343 to a PTP account.
In February this year, Akjay was made aware that one of the containers that arrived in Taiwan contained no stainless scrap, the lawsuit alleges, and an inspection of additional containers found they contained plastic chips, steel drums of caked soil and waste dross. The lawsuit alleges that Davi knew the containers didnt contain scrap metal.
Creed White told AMM that he was unaware of the lawsuit and that his son has not worked with him for years.
Davi could not be reached for comment.
Editor's note: Due to a reporting error, the article incorrectly implied that all containers mentioned in the lawsuit filed by Akjay International LLC, Madison, Conn., and International Alloys Inc., Mendham, N.J., were sold to both parties. The actual number of containers that are alleged to have been double-sold is four.