Court pulls plug on Toney tornado-shelter business

Published 4:52 pm Tuesday, April 3, 2012

A Madison County judge — citing an “alarming scope and magnitude of violations wrought on consumers”— has ordered a Toney-based tornado shelter company and its owners to stop making and selling shelters.

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The judge also fined the owners $30,000 and appointed a receiver to prevent the owners from diverting money needed to repair or replace dangerous shelters, upgrade inadequate shelters, reimburse those who never received shelters and, if any money remains, cover fines and court costs.

In a 13-page order filed Tuesday in Madison County Circuit Court, Circuit Judge Dennis Odell granted the state of Alabama’s request to prevent Grady Holt, Leslie A. Holt, SafeSteel Inc and Tornado Masters of Alabama from doing further business.

Evidence shows the company built about 220 shelters last year on promises that violate the Deceptive Trade Practices Act of Alabama.  Each violation of the count can result in a $2,000 fine.

Although the court had already issued a temporary restraining order against the business on March 5 that prevented the owners from selling shelters, Tuesday’s order effectively pulled the plug on the business.

Following complaints about SafeSteel Inc. and Tornado Masters of Alabama, which the court determined were one and the same company in all but their legal form, Alabama Attorney General Luther Strange sought the injunction against the company and its owners.

After hearing testimony from two witnesses — Dr. Donald Kinser for the state and Larry Keith Dunbar for the defendants, Odell found the Holts violated the Deceptive Trade Practices Act when they did the following since opening in 2006:

• Deceived consumers by advertising that all of their shelters were certified as compliant with standards referred to as FEMA 320, which would mean they offered nearly absolute protection against any tornado;

• Created the misunderstanding that their shelters’ designs were affiliated with or certified by Texas Tech University;

• Misrepresented that all their shelters would withstand an EF5 tornado;

• Represented illegally that their shelters were a higher quality than they are;

• Sold shelters that did not meet FEMA 320 status despite advertising otherwise;

• Made false and misleading statements about the reason for price deductions by “creating” and distributing fraudulent and misleading and supposed “USDA grants” to consumers;

• Failed to deliver shelters in a reasonable time and in at least one case, failed to deliver a shelter at all.

The judge noted in his order that the defendants failed to establish any defense against the allegations. Their sole witness, Dunbar, was refuted because he had never inspected any of the Holts’ shelters. 

The Tornado Masters of Toney website has been taken down and replaced with a notice directing former customers to receiver William J. Gibbons Jr. at

bill@gibbonsandfurman.com.