HUBBARD TOWNSHIP Former partners in landfill plan sue to get money back

They say the company's principals committed fraud.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
HUBBARD -- The officers of Trans Rail America Inc., which is proposing to operate a landfill in Hubbard Township, are being sued by their former business partners.
George L. Csatary and Judith O. Nagy filed the $650,000 lawsuit in Trumbull County Common Pleas Court alleging that Frederick V. Hudach of Hubbard Township and Robert A. Frank of Camp Hill, Pa., principals of Trans Rail, committed fraud, breach of contract and civil conspiracy.
They say in the lawsuit that Frank and Hudach owe them $150,000 for nonpayment of a loan.
Other defendants in the suit are Eco-Waste Management Inc., Financial Opportunities Inc. and Trans Rail, all with mailing addresses at Hudach's Chestnut Ridge Road home, and Evanel Consultants at Frank's Camp Hill address.
Trans Rail is proposing to use land on Mount Everett Road in Hubbard Township to operate a landfill in which construction and demolition material would be dumped.
The proposal is opposed by some area residents and township trustees.
Complaint
Csatary and Nagy say in their complaint that they were introduced to Frank and Hudach in 2002 about a possible landfill.
Csatary and Nagy say they were told by Frank and Hudach, owners of Evanel Consultants, that Evanel had an option to buy 243 acres on Mount Everett from Midwest Steel & amp; Alloy Corp. According to the complaint, Csatary, Nagy, Hudach and Frank initially agreed to start up two companies -- Eco-Waste to buy the property and Financial Opportunities to manage and operate the landfill. Each owned 25 percent of the companies.
To finance the business venture, the complaint says, Eco-Waste borrowed $130,000 in October 2002 from Alexander and Jutka Fenyes, a Cleveland couple. They received a promissory note in exchange for the loan.
The complaint said that after Eco-Waste received the money, Frank and Hudach forced Csatary and Nagy to resign their positions with Eco-Waste and Financial Opportunities.
The suit says that Frank and Hudach used a portion of the $130,000 that was supposed to go to Eco-Waste on unrelated business purposes and the balance to buy the Mount Everett land through Trans Rail, a Maryland-based company. Csatary and Nagy did not know Frank and Hudach had formed Trans Rail in June or July 2003.
The complaint says that when Eco-Waste and Financial Opportunities did not pay the Fenyes the money owed them on April 30, 2003, Csatary and Nagy paid the $150,000 -- the $130,000 principal plus interest -- to save their reputations.
Frank and Hudach could not be reached for comment.
Atty. Michael Cyphert of Cleveland, who represents Trans Rail, did not return a message seeking comment.
Plaintiffs' charges
The plaintiffs' attorney, Keith E. Blada of Cleveland, says in the complaint that Frank and Hudach would eventually profit from Financial Opportunities' management of the landfill and Financial Opportunities' 20 percent interest in Eco-Waste.
"Frank's and Hudach's control over Eco-Waste, Financial Opportunity and Trans Rail were exercised in such a manner as to commit fraud and illegal acts against the plaintiffs, Fenyes and others," Blada wrote.
"The project itself is a good project" if environmental regulations are followed, Nagy said Tuesday. "All I want is my money back."
The case, assigned to Judge Peter Kontos, seeks return of the $150,000 plus $500,000 in punitive damages.
yovich@vindy.com