LOUISVILLE, KY. - Federal prosecutors have charged the longtime accountant and bookkeeper for a Louisville injection molder with fraud in connection with the theft of nearly $70,000 from employees' 401(K) retirement plan. If convicted, Joseph Patrick Mattingly of Prospect, Ky., faces up to 10 years' imprisonment, a $500,000 fine and a three-year ``supervised release,'' said Hancy Jones, first assistant U.S. attorney in Louisville.
Jones would not comment on whether the firm, Magnum Tool & Mold Corp., alerted federal authorities to the alleged embezzlement, or if federal officials uncovered the theft in a crackdown started in March against theft from employee pension accounts. Some 400 similar federal investigations into pension fund diversions have been launched.
Mattingly was Magnum Mold's accountant and bookkeeper for 12 years before leaving in February 1994. He is accused of embezzling funds between November 1991 and October 1993.
Officials at Magnum Mold declined comment on the indictment, announced jointly Dec. 12 by the Labor and Justice departments. Mattingly could not be reached for comment.
Blaze demolishes Enviro-Tech plant
WINDSOR, ONTARIO-A fire fed by plastic dust destroyed a Windsor plastics recycler and forced the evacuation of nearby businesses.
The Windsor Fire Department said the blaze broke out about 5 p.m. Dec. 12 at Enviro-Tech Plastics Co. Ten employees in the building at the time were not injured. About 150 workers at a nearby Ford Motor Co. plant were evacuated.
Enviro-Tech washes and grinds post-consumer resins, and brokers off-spec resins. Fire investigators said the blaze probably started when acetylene gas ignited and was fed by plastic dust in the air. No damage estimate was available.
Mobil suing BPI, Inteplast over bags
WILMINGTON, DEL. - Mobil Oil Corp. of Houston has filed suit in U.S. District Court in Wilmington against BPI Packaging Technologies Inc. and Inteplast Corp., charging they infringed on Mobil's patented design for plastic grocery bags.
The suit, filed Dec. 12, alleged the two companies manufactured and distributed bags of the same design as Mobil's without a license. Mobil seeks a jury trial and an injunction barring sale or distribution of the bags by the defendants, as well as unspecified, tripled monetary damages.
Neither of the defendant companies could be reached for comment. BPI is a bag distributor based in Dighton, Mass. Inteplast, a resin and film manufacturer, is in Livingston, N.J.
Ivex scrapes offering, is stuck with debt
LINCOLNSHIRE, ILL. - Ivex Packaging Corp. scrapped plans for an initial public offering this year because of a volatile equity market, according to Frank V. Tannura, chief financial officer.
An IPO slated for late September or early October never went through, leaving the plastics and paper packaging firm still saddled with $330 million in long-term debt.
Ivex, based in Lincolnshire had $391 million in sales last year, $100 million from thermoformed plastic products, mainly food packaging. The company also extrudes polystyrene and PET film and PS sheet, some of which it uses in-house.
The firm had hoped to raise about $60 million toward repaying debt by putting up 4 million shares of its common stock.
Durakon wins $2.5 million contract
LAPEER, MICH. - Nissan Motor Corp. U.S.A. selected Durakon Industries Inc. as its sole supplier of pickup truck bedliners in a deal worth an estimated $2.5 million annually.
Durakon, which announced the new arrangement Dec. 11, said it will be the sole source of thermoformed high density polyethylene bedliners for the Nissan truck assembly plant in Smyrna, Tenn., and the automaker's U.S. dealer network.
The supplier said it currently is supplying over-rail bedliners to Nissan from its Lapeer plant, where it also has corporate headquarters. The new contract includes under-rail bedliners that will be installed as original equipment in Smyrna or offered through Nissan dealers.
Durakon expects to begin full production of the bedliners in early 1996. The firm will not have to add production capacity to handle the Nissan contract, said Thom Galas Sr., vice president and chief financial officer.