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E-waste Recycling July 24, 2020 04:00:24 PM

Lawsuit Alleges Forgery by Former E-Scrap Company Employees

Paul Ploumis
ScrapMonster Author
5R Processors had been one among the companies allegedly involved in the CRT stockpiling controversy.

Lawsuit Alleges Forgery by Former E-Scrap Company Employees

SEATTLE (Scrap Monster): A former Wisconsin state senator has filed a lawsuit against former employees of a shuttered e-scrap company. In his filing, Kevin Shibilski alleged that former executives of Ladysmith, Wisconsin-headquartered now defunct 5R Processors furnished false information to dupe him into the project.

5R Processors had been one among the companies allegedly involved in the CRT stockpiling controversy. The former employees had recently pleaded guilty to storing and transporting hazardous waste without necessary permits and are awaiting sentencing. They had roped in the former senator, by persuading him to sign an agreement to invest in the company, so as to save it from financial crisis.

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The executives hid several hundreds of thousands of dollars in unpaid tax liabilities and presented wrong information about the company’s partnership with ongoing environmental programs, by falsifying books and records. According to information presented to Shibilski, the company owed only around$315,000 in unpaid payroll taxes, whereas the original liabilities were much higher than that. The records also showed manipulated inventory of CRT stockpiles, the lawsuit said.

The lawsuit also alleges a bank and its top officials for being part of the fraudulent activities by the 5R employees.

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