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.

Defense Strikes Back: Arbitration Mandated

McKeever countered in his brief that Chemcraft cannot dodge arbitration. He noted that Texas courts have already directed Chemcraft to arbitrate its disputes with Frost entities.

“Chemcraft is trying to end-run that ruling by suing McKeever in federal court,” his filing said. “Collateral estoppel bars this relitigation, and in any event, the claims are independently arbitrable.”

He further pointed out that disputes over Sturdi’s ownership and Frost accounts were previously settled in state court, where Chemcraft released certain claims. Following appeal, the Fort Worth Court of Appeals in March 2025 ruled arbitration clauses in account agreements covered “all claims and parties.”

A Family Trust in the Crosshairs

Founded in 1973 by Gilroy McAlpine, Chemcraft was folded into the Gilroy McAlpine Family Trust in 1995, with the intent of preserving assets for his adopted children in South Africa. The lawsuit argues that Gilroy’s U.S.-based relatives exploited his death to divert funds, conceal misappropriation, and frustrate oversight by the South African parent company.

What’s Next?

Judge O’Connor must now decide whether Chemcraft’s sweeping RICO and fraud claims — spanning accusations of theft, money laundering, and misuse of U.S. brokerage accounts — will be heard in federal court or pushed behind the closed doors of arbitration.

Counsel for the parties did not respond to requests for comment Wednesday.

Chemcraft is represented by Austin Champion and Thaís Amaral Dourado of Champion LLP and Juan Rodriguez of Carey Rodriguez LLP.
The Frost and McAlpine defendants are represented by Scott A. Wheatley, Allison B. Allman, Minoo S. Blaesche, and Christa L. Bunce of Jackson Walker LLP.