Fizzled ‘coke’ deal costs Harrison trader $3.6M

A Harrison “coke” trader who sued his partner for $117,000 for allegedly shirking loan repayments will have to fork over nearly $3.6 million instead.

U.S. District Judge Philip M. Halpern approved the judgment against PBR Sales LLC on July 29 in favor of Liberty Petroleum Trading International.

The “coke” in question was pet coke, a byproduct of petroleum refining that is used to fuel cement kilns.

PBR Sales is owned by Pratap Sapra, who lived in Chappaqua until he lost his home to foreclosure in 2017.

Later that year, PBR Sales and Liberty Petroleum Trading, based in Phoenix, agreed to work together on business deals and to share profits equally.

PBR identified Saeed Al-Moallim Trading Group of Saudi Arabia as a source of pet coke, and Shree Cement Ltd. of Bangur City, India, as a buyer.

In 2018, PBR and Liberty bought 50,000 metric tons of coke for $3 million, according to court records, sold it to Shree Cement for nearly $4.8 million, and arranged for the coke to be delivered to India from Saudi Arabia.

Six months later, PBR accused Liberty of failure to repay three loans totaling $117,000. The complaint did not explain what went wrong.

Liberty responded with counterclaims. PBR had made no loans, it stated. Instead, Liberty had borrowed nearly $3 million from a New York lender to buy the pet coke.

PBR had allegedly notified Liberty that the coke was “either ready for shipment, had been loaded or was ”¦ on its way” to India.

In fact, Liberty claimed, none of the coke was delivered to a ship that was docked and ready for loading.

Sapra allegedly indicated that PBR would get a refund from the Al-Moallim Trading Group, but failed to do so.

Liberty sued the Al-Moallim Group and discovered that PBR had canceled the coke deal and arranged to buy aluminum alloys instead.

Attorney Gary M. Fellner withdrew as PBR”™s attorney last year because his client had failed to pay fees. U.S. District Judge Vincent Briccetti repeatedly ordered PBR to find new counsel, but the company failed to do so.

“Having ignored multiple court orders,” Briccetti ruled in November, “the court concludes plaintiff has abandoned its case.”

PBR moved for a default judgment.

U.S. Magistrate Judge Paul E. Davison concluded on June 22 that Liberty should be awarded $3,583,308 in damages from PBR, for financing costs and lost profits. Judge Halpern adopted Davison”™s recommendations.