A $30 million fraud and racketeering lawsuit accusing Frost Bank, a Texas wealth manager, and a prominent family of orchestrating a massive embezzlement scheme has taken a sharp turn, as the defendants argue the case belongs in arbitration — not federal court.
In filings Monday before U.S. District Judge Reed C. O’Connor in Fort Worth, Frost Bank wealth manager Urbin McKeever said South African packaging manufacturer Chemcraft (PTY) Ltd. is attempting to relitigate claims that have already been sent to arbitration.
The Accusations: A Scheme Born in Grief
Chemcraft’s lawsuit, lodged July 17, alleges that McKeever joined forces with David, Craig, and Katrina McAlpine, along with Frost Bank of Texas, Frost Brokerage Services Inc., and Frost Investment Services LLC, to siphon millions through a pattern of bank fraud, laundering, and false statements.
The alleged scheme ignited in April 2021, just weeks after the death of Chemcraft’s founder, Gilroy McAlpine. With the patriarch gone, the suit claims his relatives in Texas — aided by Frost’s financial network — seized the opportunity to loot assets from Chemcraft’s U.S. subsidiary, Sturdi Packaging Inc.
According to the complaint, Gilroy’s accounts showed modest withdrawals of $170,745 over six years. After his death, withdrawals allegedly exploded to nearly $10 million in just two years, with large sums moving within days of his passing.
