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DB-Half Cover Wrap.qxp 8/16/2013 5:05 PM Page 1 www.crainsdetroit.com Vol. 29, No. 34 AUGUST 19 – 25, 2013 ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Page 3 Aluminum unco Benjigates does house Feds investigate claim flipping with a twist of warehousing metal Donations dip, Gleaners tables $8M renovation to artificially raise prices National Heritage to add BY DUSTIN WALSH charters in metro Detroit CRAIN’S DETROIT BUSINESS or the past three years, concerns over F market-traded aluminum and its effect Inside on manufacturing have grown. And Goldman Sachs Group Inc.’s Romulus-based alu- Federal-Mogul looks to minum warehousing unit is now in the crosshairs of several civil antitrust lawsuits ignite interest in spark plug, and an investigation by federal regulators. Aluminum ingots such as these are st Beverage giants and smaller aluminum warehouses throughout Michigan. Fe Page 14 manufacturers, some of which have filed civil investigating whether the metal is be suits in the U.S. District Court for Eastern Michi- long periods to raise profits. Crain’s Lists gan in Detroit this month, say the stockpiles of aluminum held at Metro International Trade Ser- vestigate its practices. Detroit’s Largest Employers, vices LLC and other warehouses have caused prices to inflate by $5 billion since 2010. Currency cache Page 13 But experts say aluminum pricing is a mi- nor issue compared to the effect aluminum Metro International holds 1.46 This Just In warehousing is having on budget planning for ric tons of aluminum in its repo major aluminum consumers like MillerCoors houses in metro Detroit — or abo LLC and Coca-Cola Inc. of aluminum traded on the Lond Ex-Wayne State president Goldman is reportedly looking to sell Metro change and about 81 percent to return in faculty position International, which it acquired in 2010 from minum in the U.S. Canton Township-based W.F. Whelan Co. and Critics claim Metro Internati Former Wayne State Univer- Edward Schulak, president of ES Equities Inc., sity President Jay Noren will for $550 million, as regulators continue to in- See Alum return to the WSU School of Medicine as a professor in the fall semester. Noren, president of the university from 2008-10, is currently the provost at Khal- ifa University in Abu Dhabi. Noren received academic tenure as a part of his con- Health care tract as president, and is con- sidered to be returning to the faculty after an unpaid leave of absence, said Debbie Din- fraud buste gell, chairman of the WSU board of governors. He will be teaching in the Detroit task forces charge master’s of public health pro- investigating Medicare frau gram and will coordinate with the School of Business have made traction, gener Administration to establish 48 cases and 287 defendan a new joint administrative charges ranging from overb medicine program that will be managed by both schools. to phony diagnoses. Q&A w “It’s quite a dynamic peri- U.S. Attorney Barbara McQ od in the sector,” Noren told on Page 4 Crain’s via email, — Chad Halcom Learn secr FASTEST fastest-gro GROWING COMPANIES SEPT. 11 T To register, ple NEWSPAPER DBHalf Cover Wrap_CD Half cover wrap 8/6/2013 11:52 AM Page 1 $ , YOUR WEALTH IS ABOUT MORE THAN DOLLARS AND CENTS. 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Investments, investment services and insurance: Are Not FDIC Insured - Offer No Bank Guarantee - May Lose Value Are Not Insured By Any Federal Government Agency - Are Not A Deposit Insurance products made available through Fifth Third Insurance Agency, Inc. © Fifth Third Bank 2013. 20130819-NEWS--0001-NAT-CCI-CD_-- 8/16/2013 4:59 PM Page 1 ® www.crainsdetroit.com Vol. 29, No. 34 AUGUST 19 – 25, 2013 $2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Page 3 Aluminum uncoils Benjigates does house Feds investigate claim flipping with a twist of warehousing metal Donations dip, Gleaners TOM HENDERSON tables $8M renovation to artificially raise prices Neal Searle is president of Lotus Bank. National Heritage to add BY DUSTIN WALSH charters in metro Detroit CRAIN’S DETROIT BUSINESS Emails send or the past three years, concerns over market-traded aluminum and its effect Inside F on manufacturing have grown. And Goldman Sachs Group Inc.’s Romulus-based alu- Federal-Mogul looks to minum warehousing unit is now in the Lotus Bank into crosshairs of several civil antitrust lawsuits BLOOMBERG NEWS ignite interest in spark plug, and an investigation by federal regulators. Aluminum ingots such as these are stacked in Page 14 Beverage giants and smaller aluminum warehouses throughout Michigan. Feds are manufacturers, some of which have filed civil investigating whether the metal is being stored for court battle suits in the U.S. District Court for Eastern Michi- long periods to raise profits. Crain’s Lists gan in Detroit this month, say the stockpiles of aluminum held at Metro International Trade Ser- vestigate its practices. Company, execs face Detroit’s Largest Employers, vices LLC and other warehouses have caused prices to inflate by $5 billion since 2010. Currency cache Page 13 But experts say aluminum pricing is a mi- discrimination suit nor issue compared to the effect aluminum Metro International holds 1.46 million met- ric tons of aluminum in its reported 34 ware- warehousing is having on budget planning for BY TOM HENDERSON This Just In houses in metro Detroit — or about 28 percent major aluminum consumers like MillerCoors CRAIN’S DETROIT BUSINESS LLC and Coca-Cola Inc. of aluminum traded on the London Metal Ex- Ex-Wayne State president Goldman is reportedly looking to sell Metro change and about 81 percent of LME alu- Novi-based Lotus Bancorp Inc. and its at- to return in faculty position International, which it acquired in 2010 from minum in the U.S. torneys will be in a strange position this Canton Township-based W.F. Whelan Co. and Critics claim Metro International uses an week in the Oakland County Circuit Court Former Wayne State Univer- Edward Schulak, president of ES Equities Inc., of Judge Denise Langford Morris. sity President Jay Noren will for $550 million, as regulators continue to in- See Aluminum, Page 25 Strange because Lotus was founded in return to the WSU School of 2007 by members of the local Indian and Medicine as a professor in east Asian business community to create a the fall semester. bank, Lotus Bank, that would serve the com- Noren, president of the mercial lending needs of Indian and east university from 2008-10, is Asian businesses and business owners. currently the provost at Khal- Most of those who invested in the bank ifa University in Abu Dhabi. were of Indian descent. Most of its board Noren received academic members are Indian. The bank’s name tenure as a part of his con- Health care comes from the flower that is a powerful tract as president, and is con- symbol of purity in the Buddhist religion. sidered to be returning to the And yet, the bank holding company, the faculty after an unpaid leave bank and three members of upper manage- of absence, said Debbie Din- fraud busters ment find themselves being sued over alle- gell, chairman of the WSU gations that they have violated the federal board of governors. Elliott-Larsen Civil Rights Act of 1976 by He will be teaching in the Detroit task forces charged with discriminating against Indians. master’s of public health pro- investigating Medicare fraud The lawsuit is based on a series of emails gram and will coordinate have made traction, generating in 2010 and 2011 by the bank’s president, with the School of Business Neal Searle, and one of its executive vice Administration to establish 48 cases and 287 defendants on presidents, Richard Bauer, who is also the a new joint administrative charges ranging from overbilling bank’s CFO. They are being sued, as is chief medicine program that will lending officer John Westerheide, who was be managed by both schools. to phony diagnoses. Q&A with U.S. Attorney Barbara McQuade the recipient of some of the emails, which “It’s quite a dynamic peri- contain highly derogatory comments about od in the sector,” Noren told on Page 4 Indians. Crain’s via email, One, by Bauer, said that “the only good — Chad Halcom See Lotus, Page 27 Learn secrets from the region’s TITLE SPONSOR FASTEST fastest-growing companies GROWING COMPANIES SEPT. 11 The Colony Club, Detroit • 5 – 9 p.m. To register, please visit crainsdetroit.com/events NEWSPAPER 20130819-NEWS--0002-NAT-CCI-CD_-- 8/16/2013 5:17 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS August 19, 2013 MICHIGAN BRIEFS Acquisition of distributor will ing Co.