Metal Management, Inc., headquartered in Chicago, announced that it has received a subpoena to produce documents before a federal grand jury sitting in South Bend, Indiana. The company received the subpoena Jan. 28th.
The company has been advised that the grand jury is investigating scrap metal pricing and purchasing in Indiana, Illinois, Ohio and Michigan. The company has advised the government that it intends to cooperate fully with the subpoena and the grand jury's investigation.
Robert Larry, executive vice president and CFO for Metal Management, said the subpoena is not an accusation or indictment of the company. Rather, the subpoena is a request for information for Metal Management. This would include records of various purchases. The subpoena is being termed a horizontal investigation, he added. The investigation is an industry-wide search for
According to Larry, the subpoena is part of a Department of Justice investigation that began in Florida several years ago. That continuing investigation moved to the Cleveland, Ohio area.
While Metal Management announced it received a subpoena, Larry says that he hears other companies in the four-state region received similar subpoenas.