WARREN, Ohio – A Trumbull County Common Pleas Court’s ruling has helped clear a path for a future sale of more than 360 industrial acres in Champion and Warren townships that was once home to Copperweld Steel Corp.

Just when such a sale could occur, however, is anyone’s guess as officials untangle other issues with the site.

Judge Sarah Thomas Kovoor on Feb. 5 granted an entry of default in a foreclosure action against defendant Warren Steel Holdings LLC, the current owner of the property, according to documents filed with the court. 

Other defendants named are TMS International Corp., Scrap Metal Services LLC, Lincoln Recycling Inc., Motion Industries Inc. and Songer Steel Services Inc. 

“This is the next step,” said Ed Anthony, Warren Township trustee. Issues such as delinquent real estate taxes and unresolved environmental matters are among the other concerns that need to be addressed before any sale could move forward. “There are a lot of parts to this,” he said. 

Foreclosure Action

Optima Acquisitions LLC, based in Miami, filed the foreclosure complaint June 27 against Warren Steel, the troubled steel producer that acquired the former Copperweld Steel – then known as CSC Ltd. – out of bankruptcy in 2001. 

A default judgment is often issued because none of the defendants responded to the complaint in a timely manner after being duly served. Attorneys representing Optima filed a motion seeking default Dec. 22, 2025, and a telephone hearing on the matter was held Feb. 4.

In this case, the court found that each of the defendants “failed to plead or otherwise defend within the time permitted by law, and has not appeared in this action.”

According to the foreclosure complaint, Optima tendered a $15 million loan to Warren Steel in August 2014, as the steel company prepared to resume operations. Warren Steel pledged the sprawling plant and land as collateral to obtain the loan, court documents show.

The note remains unpaid, the suit alleges, and Optima Acquisitions requested the court award it the first position on the land and buildings and place the property up for sale.

Mordechai Korf, Optima’s manager and CEO, signed the loan agreement, according to court papers. Korf is also listed as president of Warren Steel and signed on behalf of that company as well.

Documents filed with the court show that Optima sent a letter to Warren Steel on May 8, 2025, demanding payment on the $15 million loan, plus interest of $16,113,698.63, bringing the total owed to $31,113,698.63.

Optima’s filing requests that the proceeds of any sale be used to pay the company’s claims, court papers say.

The Trumbull County auditor has appraised the land and buildings owned by Warren Steel at just $1.6 million. 

Environmental Cleanup, Delinquent Taxes

Warren Township’s Anthony said there are lingering environmental issues with the land that need to be closed out before an auction or sale of the property is conducted, all of which requires approval by the court.

“Things are moving slowly, but things are getting better over there as far as getting the property cleaned up,” he said. “They’ve done a lot over the last three years, but there’s still some work, so it’s a process.”

In October, the Ohio Environmental Protection Agency moved to intervene in the foreclosure matter. The Ohio EPA said it wanted to ensure that all environmental cleanup at the property is completed and that a consent order and covenant signed in 2022 is enforced, according to documents filed with the court. The court approved the Ohio EPA’s motion to intervene later that month.

In 2016, the state of Ohio sued Warren Steel over environmental issues left over after the steel mill closed permanently in 2016. The state won a $1.1 million judgment, and a settlement was eventually reached that included the company. 

Under the settlement, Warren Steel was to pay a total of $1,122,852.57 in civil penalties, of which $472,852 would be paid to the state’s Environmental Protection Remediation Fund, while $150,000.57 is to be paid to Ohio’s Water Pollution Control Administration Fund. 

The balance of the penalty – $500,000 – was to be paid to an interest-bearing Supplemental Environmental Project fund, administered by the Eastgate Regional Council of Governments. 

Warren Steel is also responsible for fitting the bill for all cleanup costs at the site. The cleanup must also be approved by the Ohio EPA.

Also left over from the closure is a legacy of delinquent property taxes. According to county auditor records, Warren Steel owes a total of $192,261.64 on two large parcels – one in Warren Township and the other in Champion Township. In 2024, the company entered a payment agreement with the Trumbull County treasurer.

Auditor’s data show that the company is delinquent on $68,431.24 and will owe another $24,569.66 in 2026 on the Warren Township parcel. The Champion Township parcel shows $86,228.59 in delinquent taxes, with another $23,395.50 owed for 2025 payable in 2026, according to auditor’s records.

“We’re definitely keeping apprised at what’s going on there, but our main goal is to try to recover some of those delinquent taxes and then market the site to a prominent business,” Anthony said.

He said he’s received inquiries from at least two parties about the site, one a local operation and another from outside Ohio.

International Fraud Scheme

The case became more complicated when Warren Steel was named in a complex money-laundering scheme that originated from Ukrainian oligarchs who held ownership interest in the company.

Federal prosecutors said Igor Kolomoisky – a former owner and director of Ukraine-based PrivatBank – and his associates misappropriated funds from the institution and then laundered them through shell companies overseas before sending them to the United States.

Some of this money was used to acquire assets in the U.S., including real estate in Cleveland, Texas and Kentucky and businesses such as Warren Steel, authorities say. These assets in turn served as collateral to secure additional loans for the Ukrainian businessmen, prosecutors said.

According to a May 2019 civil suit filed by PrivatBank in the Court of Chancery in Delaware, Kolomoisky and his associates funneled $622.8 million in fraudulently obtained loans into their U.S. interests. Court documents say about $9 million went to Warren Steel between 2010 and 2013. 

“There’s so much involved in this,” Anthony said. “But I hope the end result for us is that we recoup some taxes and we’re able to get that property cleaned up and ready to go. We’re still a ways away from that yet.”