National Alabama Under Fire for Fraud after Borrowing Money

Greg Aziz, chairman of Canadian rail car maker National Steel Car, was indicted by a Colbert County grand jury on securities fraud charges in connection with National Alabama Corp. He was arrested in Chicago when he came to the U.S. in late November.

National Alabama borrowed money from the Retirement Systems of Alabama to cover construction costs for a plant in the Shoals. The 10-count indictment charges that Aziz presented fraudulent financial information to RSA in connection with a loan and equity transaction.

If convicted, the charges could carry a 10-year prison sentence and require restitution of funds.

Since acquiring the Colbert County plant, RSA has struggled to find a tenant who could use the massive space. Navistar is now leasing part of the building, while another rail car maker, Freight Car America Inc., has begun building cars there.

Text by Nedra Bloom

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