DETROIT, Sept. 30, 2013 /Christian Newswire/ -- Nonprofits St. Vincent de Paul Detroit and Maryland-based Planet Aid have filed suit in Federal Court against Houston-based American Textile Recycling Services (ATRS), alleging the for-profit company illegally removed and disposed of their clothing donation bins located throughout metro Detroit including Pontiac, Milford, Jackson, Allan Park, Lincoln Park, Bloomfield Township. The suit states, further, that ATRS crossed state lines and used the U.S. mail system to carry out this fraudulent enterprise in violation of the Civil RICO statute - causing St. Vincent and Planet Aid to incur tens of thousands of dollars in damages.
After removing the donation bins, in many cases, ATRS, a for profit company, installed their own collection boxes, suggesting that it is on behalf of the Humane Society to collect items. ATRS is alleged to be in violation of the Civil Racketeer Influenced and Corrupt Organizations Act, or RICO.
"These bins, often seen in front of shopping centers and grocery stores, are a major source of donations and revenue for these charities, which solely benefit needy individuals and their families," said attorney Daniel Dalton of Bloomfield Hills, Mich. based Dalton Tomich, plc. "ATRS sought to line their own pockets while depriving those who depend on St. Vincent and Planet Aid for help."
ATRS targeted and started removing donation boxes in October of 2012, drafting letters and contacting the store managers on properties where the bins were located, telling them that they would remove the boxes. ATRS would then remove competing boxes and install their own. Boxes were removed in Pontiac, Allen Park, Milford as well as Jackson. After removal, the contents of the bins were confiscated and the bins scraped for metal at Jackson, Michigan area scrap yards.
"The entire process was conceived by ATRS to maliciously harm and steal from St. Vincent de Paul, Planet Aid and other nonprofits," added Dalton. "We are looking forward to the court system hearing this case and taking corrective action."
The federal lawsuit, filed by St. Vincent DePaul and Planet Aid is currently pending in the United States District Court in Detroit, Michigan. A Motion for a Preliminary Injunction has been filed along with the complaint where St. Vincent DePaul and Planet Aid has asked for the Court to enjoin ATRS from taking their bins. The motion is pending before the Honorable Judge Denise Page Hood.
