[ChickenCityRoller]

24,000 pounds of nickel stolen from LP business
11/10/2007, 10:55 am
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LA PORTE — Following a tip, officials at Casting Services in La Porte learned Friday that more than 24,000 pounds of nickel shot, worth around $300,000, had been stolen from them sometime since Sept. 28.

The tip, received Friday in the form of an anonymous letter, indicated that a maintenance worker had been taking nickel shot from pallets located inside the factory. Company officials were unaware of the missing shot because it had not been inventoried since Sept. 28, according to a La Porte City Police report.

Although the letter named a specific individual in the theft, company officials told police no one by that name is employed at the factory. However, a person with the same last name as the person identified in the letter was located. Police plan to question that employee.

[Roger Kaputnik]

I think the market for nanny cams is gonna explode.

[Ang]

http://thenewsdispatch.com/main.asp?Sectio...amp;TM=42071.57

Firm VP: Metal Theft May Have Been Inside Job

Stan Maddux
For The News-Dispatch

LA PORTE - The theft of $300,000 in metal from a La Porte manufacturing company might have been an inside job, a possibility police are exploring in hopes of solving the case.

During the last six weeks, 24,000 pounds of nickel shot has been taken from Casting Service, 300 Philadelphia, a maker of gray and ductile iron castings to customer specifications.

Company Vice President Joe Walker told investigators the nickel shot was stored in drums on pallets inside the business.

He said the thefts occurred sometime after the last inventory Sept. 28 and weren't discovered until Friday, when the company received an anonymous letter reporting the thefts.

Two employees were named in the letter as suspects but, so far, there have been no arrests, police said. According to company officials, the nickel is used as an alloy to treat and enhance the physical properties of the metal used in the castings.

The theft at Casting Services on La Porte's East Side may be another example of stealing metal to turn a quick buck at area scrap yards.

Midwest Metal Products in Michigan City reported Oct. 24 the theft of roughly 1,000 pounds of scrap metal kept in Dumpsters outside the plant. The metal is sold to recyclers who have the metal melted down for reuse, said Geoff Wendt, the company's owner.

No arrests have been made in that case.

His scrap metal is worth much less, commanding anywhere from $220 to $350 per ton, Wendt, said.

"This is a form of income for us," said Wendt, whose firm generates 20,000 to 30,000 pounds of scrap every week.

[Roger Kaputnik]

What is being done to police the scrapyards taking this stuff? Aren't they supposed to be recording the names of the sellers?

[Ang]

Unless they do ID verification, just taking names won't work. I mean, Paris Hilton, Johnny Cochrain, and George Bush could always turn in scrap metal, you know?

[mcstumper]

If it is so valuable, then why is it sitting in an unsecured area with no video surveilance? If this is covered under their umbrella policy (or would that be P&L?), you can guarantee that their insurer will insist that they either take the appropriate security measures or get dropped.

[Ang]

If it is so valuable, then why is it sitting in an unsecured area with no video surveilance? If this is covered under their umbrella policy (or would that be P&L?), you can guarantee that their insurer will insist that they either take the appropriate security measures or get dropped.

I work in insurance. Something of this type would be covered under a property policy, but getting the company to pay for this type of loss would be very difficult. Reason being, how would you assess a value to it? For one, you could only estimate the weight of what was stolen and cannot actually prove how much was there (unless you weighed at the end of the day-every day). For two, the rates vary on how much scrap is worth depending on the current market. You could do a current market value, I suppose, as of the day it was stolen, but then we go back to proving exactly how much was taken to begin with. Third, scrap really couldn't be considered "contents" because it's not actually kept inside the building and it is scrap. So you would need to have a special endorsement to cover it and that endorsement would have to state specifically how you would prove exactly how much was taken and what means would be used to assess the value. And if you did, theft deductables are typically higher than normal deductables on a commercial policy (if each theft is less than the deductable, is it worth it?). Therefore, stolen scrap would have to be written off as a loss--same as "shrink" in the retail world.

CCR, correct me if I'm wrong....

[ChickenCityRoller]

I work in insurance. Something of this type would be covered under a property policy, but getting the company to pay for this type of loss would be very difficult. Reason being, how would you assess a value to it? For one, you could only estimate the weight of what was stolen and cannot actually prove how much was there (unless you weighed at the end of the day-every day). For two, the rates vary on how much scrap is worth depending on the current market. You could do a current market value, I suppose, as of the day it was stolen, but then we go back to proving exactly how much was taken to begin with. Third, scrap really couldn't be considered "contents" because it's not actually kept inside the building and it is scrap. So you would need to have a special endorsement to cover it and that endorsement would have to state specifically how you would prove exactly how much was taken and what means would be used to assess the value. And if you did, theft deductables are typically higher than normal deductables on a commercial policy (if each theft is less than the deductable, is it worth it?). Therefore, stolen scrap would have to be written off as a loss--same as "shrink" in the retail world.

CCR, correct me if I'm wrong....

In the case of the castings company, the nickel shot is a raw material, not scrap. People need to remember that simply because something is called "SCRAP" doesn't mean that it's not worth money or a form of income. It's simply a term for byproduct which is generated during a manufacturing process. A company is not required to put surveillance on everything worth money. There are many more things worth more than scrap or raw material (customer lists, manufacturing processes, intellectual property, etc.) and to have cameras or recorders on everything would be uncomfortable at best re: 1984 or Fahrenheit 451.
It should be very simple for the company to come up with a number on how much was stolen. It sounds like they do a monthly inventory; they know how much they bought and how much was used.
I don't think that the insurance company is going to bat an eye on paying this. First off, they have to pay it, second off; they aren't going to risk getting a huge policy holder like that company upset over $300,000.

[ChickenCityRoller]

For those interested, here is a copy of the State Law. It's fairly new. Whoever drafted it up, obviously has no knowledge of metals. I'm currently working on getting this law changed. My problem is thier definition of valuable metal: "Copper, aluminum and aluminum alloy worth more than $100" It should cover any type of metal regardless of material. $100 is $100. It doesn't cover stainless steel, tooling steel, titanium, etc.


Information Maintained by the Office of Code Revision Indiana Legislative Services Agency
07/02/2007 07:10:33 PM EDT
IC 25-37.5
ARTICLE 37.5. DEALERS IN VALUABLE METALS

IC 25-37.5-1
Chapter 1. Regulation of Dealers by State Police
IC 25-37.5-1-1
Definitions
Sec. 1. (a) When used in this chapter, "valuable metal" means any product made of copper, copper alloy, brass, aluminum, or aluminum alloy that is readily used or useable by a public utility, railroad, county, city or state highway department, public or private school, or an institution of higher education.
( As used in this chapter, "valuable metal dealer" means any individual, firm, corporation, limited liability company, or partnership engaged in the business of purchasing and reselling valuable metal either at a permanently established place of business or in connection with a business of an itinerant nature, including junk shops, junk yards, junk stores, auto wreckers, scrap metal dealers or processors, salvage yards, collectors of or dealers in junk, and junk carts or trucks.
© As used in this chapter, "purchase" means acquiring a valuable metal product or products by a valuable metal dealer in a single transaction of one hundred dollars ($100) or more for a consideration, but does not include purchases between scrap metal processing facilities (as defined in IC 8-12-1-3(d)).
(Formerly: Acts 1971, P.L.380, SEC.1; Acts 1972, P.L.11, SEC.11.) As amended by P.L.145-1990, SEC.1; P.L.8-1993, SEC.403.
IC 25-37.5-1-2
Record of purchases; form; retaining and filing copies; notice to law enforcement agencies
Sec. 2. (a) Except as provided in section 5 of this chapter, every valuable metal dealer in this state shall enter on forms provided by the state police department for each purchase of valuable metal the following information:
(1) The name and address of the dealer.
(2) The date and place of each purchase.
(3) The name, address, age, driver's license number or Social Security number of the person or persons from whom the valuable metal was purchased.
(4) The motor vehicle license number of the vehicle or conveyance on which the valuable metal was delivered to the dealer.
(5) The price paid for the metal.
(6) A description and weight of the valuable metal purchased.
( The completed form shall be kept in a separate book or register by the dealer and shall be retained for a period of two (2) years. Such book or register shall be made available for inspection by any law enforcement official at any time. Within twenty-four (24)
hours from the date of purchase of a valuable metal the valuable metal dealer shall notify the local law enforcement agency in writing or orally of the description of the purchase and the name of the individual who sold the product to the dealer. Notification is not required for such purchases if a bill of sale or other evidence of ownership is presented at the time of the sale of the product to the dealer from a public utility, railroad, county, city or state highway department, public or private school, or an institution of higher education.
(Formerly: Acts 1971, P.L.380, SEC.1; Acts 1972, P.L.11, SEC.11.) As amended by P.L.145-1990, SEC.2.
IC 25-37.5-1-3
Rule adoption; products list
Sec. 3. The superintendent of the state police department may adopt rules under IC 4-22-2 as may be necessary to administer and enforce the provisions and intent of this chapter. The superintendent shall also prepare and distribute a list to each valuable metal dealer describing valuable metal products of interest to public utilities, railroads, county, city or state highway departments, public or private schools, or an institution of higher education.
(Formerly: Acts 1971, P.L.380, SEC.1; Acts 1972, P.L.11, SEC.11.) As amended by Acts 1982, P.L.154, SEC.136; P.L.7-1987, SEC.134; P.L.145-1990, SEC.3.
IC 25-37.5-1-4
Separation of purchases; inspection
Sec. 4. Except as provided in section 5 of this chapter, every dealer shall hold each purchase of valuable metal requiring notification for at least five (5) working days from the date of notification:
(1) at his regular place of business; and
(2) separate and apart; so that it is readily identifiable from all other purchases. During this period, a dealer may not change the form of the valuable metal and shall permit any law enforcement officer to make inspection of the valuable metal purchased.
(Formerly: Acts 1971, P.L.380, SEC.1; Acts 1972, P.L.11, SEC.11.) As amended by P.L.145-1990, SEC.4.
IC 25-37.5-1-5
Exclusions
Sec. 5. The provisions of sections 2 and 3 of this chapter do not apply to purchases from persons, firms, limited liability companies, or corporations regularly engaged in the business of manufacturing valuable metals, the business of selling valuable metals at retail or wholesale, to the purchase of one dealer from another or the purchase from persons, firms, limited liability companies, or corporations engaged in either the generation, transmission or distribution of electric energy or in telephone, telegraph and other communications
if such persons, firms, limited liability companies, or corporations at the time of purchase, provide the dealer with a bill of sale or other written evidence of title to the valuable metal.
(Formerly: Acts 1971, P.L.380, SEC.1; Acts 1972, P.L.11, SEC.11.) As amended by P.L.8-1993, SEC.404.
IC 25-37.5-1-6
Forms
Sec. 6. The state police department shall prepare the forms provided for in section 2 of this chapter, shall make a reasonable supply of the forms available at the office of the county sheriff of each county and shall provide the forms to any individual upon request.
(Formerly: Acts 1971, P.L.380, SEC.1; Acts 1972, P.L.11, SEC.11.) As amended by Acts 1982, P.L.154, SEC.137.
IC 25-37.5-1-7
Violations
Sec. 7. A dealer who fails to comply with this chapter commits a Class A infraction.
(Formerly: Acts 1971, P.L.380, SEC.1; Acts 1972, P.L.11, SEC.11.) As amended by Acts 1978, P.L.2, SEC.2566; P.L.145-1990, SEC.5.

[Roger Kaputnik]

What does John Fogarty know about insurance??