A Golden Triangle economic development leader says he believes lawsuits against a Columbus-based company that has proposed building a $1.2 billion aluminum mill could be on the horizon.
Joe Max Higgins, the CEO of the Golden Triangle Development LINK, told The Dispatch on Tuesday he is becoming more concerned about American Specialty Alloys and that several local investors are mulling the possibility of filing lawsuits against the company for misrepresenting its financial situation.
“Something’s not right here,” Higgins said.
American Specialty Alloys (ASA) incorporated in Mississippi and opened a Columbus office, just off Military Road, in March 2014. In November, the company issued a press release stating it planned to build a 1.4 million square foot plant that would employ 650-plus people somewhere “in the southeastern United States.”
The LINK had reserved a 826-acre site near the Golden Triangle Regional Airport for ASA’s proposed mill. Earlier this month, however, the site was placed back on the market after ASA failed to provide assurances requested by LINK officials, according to Higgins.
Now, there are claims that more irregularities surround the company and its CEO, Dr. Roger Boggs.
Higgins said four former ASA employees have contacted his office claiming they were unable to file for unemployment after being let go and that they had not received W-2 forms.
Higgins said he has been in contact with state officials who claim while Boggs registered ASA with the Secretary of State’s office, no documentation of Boggs paying state and federal withholdings can be found.
The state Department of Revenue did not return messages this morning by press time.
Boggs, when contacted by The Dispatch on Tuesday, confirmed that ASA had parted ways with several employees recently. However, he said, many ASA employees had been hired on a contract basis, which made them ineligible for unemployment. He added that many whose positions had been terminated we’re given a severance package and that ASA had treated them “very well.”
“We do follow the state laws,” Boggs said.
He said ASA has hired more people than it has fired in recent months.
The Dispatch contacted a former ASA associate Tuesday who claimed to be readying a lawsuit against Boggs. The associate, who spoke under the condition of anonymity, said Boggs has not paid money owed.
The associate said Boggs and the project both appeared legitimate initially, but that oddities prevailed.
“Within a very short time, it became apparent he was not what he represented, on any level,” the associate said.
Boggs told The Dispatch on Tuesday he was not ready to announce a location for the plant. In it’s November press release, ASA indicated that its proposed plant would begin operations in late 2016.
Higgins said the press release itself violated an agreement between ASA, LINK and state officials to not disclose the project until it had been finalized.
Boggs, however, said the release did not breach the agreement because it did not name a site, but simply stated a plant was coming.
Higgins — who said the LINK held the 826 acres for the company for nearly a year — said his initial interest in ASA’s potential stemmed from the company’s claim that Danieli, an Italian manufacturer of equipment used in steel production, had partnered with the group to provide supplies and funding. Higgins claims Boggs misrepresented Danieli’s involvement.
“He has represented since day one that Danieli is going to be the major equipment provider and funder of this,” Higgins said. “I have numerous emails from them denying that. They say they are the equipment provider only.”
A Danieli spokesperson did not respond to a request for comment from The Dispatch on Tuesday.
Higgins added while ASA officials claim the mill will be a $1.2 billion project, the LINK and state understood it to be a $650 million project.
Boggs called Higgins’ comments “saddening.”
“I’ve never had anything bad to say about Columbus or Joe Max,” Boggs said. “I respect the LINK, and I respect Joe Max.”
Boggs, in an interview Tuesday, dismissed the confusion and suggestion of disgruntled local investors. He said while ASA had local investors, the majority are based out of state or internationally.
“We’re a Mississippi company, incorporated in Mississippi, headquartered in Mississippi,” he said. “We’re building a new company and there are challenges to doing so. We have great partners locally and internationally, and we’re not going anywhere.”
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
