Financial Fraud: Nine Former Supervisory Charged For Conspiracy To Defraud An Agency Of The United States Government
One Of The Most Senior Level Former Coal Company Officials In Ky Charged For Defrauding Regulators About Black-Lung Causing Risks To Miners
Nine former supervisory and safety officials charged
MADISONVILLE, Ky. – United States Attorney Russell M. Coleman announced the charging of an additional former supervisor and safety official from Armstrong Coal, in addition to the 8 previous officials charged by a Federal Grand Jury, for conspiracy to defraud an agency of the United States government by deceit, trickery and dishonest means.
The Indictment charges that the conspirators sought to deceive federal mine safety regulators as to the daily levels of breathable dust at both the Parkway Mine of Muhlenberg County, KY and Kronos Mine of Ohio County, KY. Breathable or “respirable” dust is the primary cause of pneumoconiosis or “Black Lung” in miners. The Federal Grand Jury also charges the nine Armstrong Coal officials with making false statements as to results of tests required to be conducted every 60 days to protect certain “designated occupations,” that is the dustiest and most dangerous job assignments in a coal mine.
In addition to the previous charges announced in July of 2018, a federal Grand Jury has now indicted Glendal “Buddy” Hardison, the former manager of all Armstrong Coal western Kentucky mines. The Grand Jury charges that Hardison allegedly met with co-Defendant Ron Ivy and an unindicted co-conspirator in 2013, and ordered them to do whatever they had to do to “make the pumps come in.”
“West Kentucky miners are about action, not just happy talk,” stated U.S. Attorney Russell Coleman. “As we showed today, the United States will continue to aggressively go up the chain to hold accountable those who made calculated business decisions that placed our miners at grave risk.”
“Miners’ safety and health is our top priority,” said David G. Zatezalo, Assistant Secretary of the U.S. Department of Labor’s Mine Safety and Health Administration (MSHA), which conducted the investigation that led to the charges. “If supervisors and safety officials are breaking the law, we’ll do everything we can to ensure that the laws are enforced and miners receive the protections they deserve.”
The Grand Jury charges that contrary to regulations, Armstrong officials removed dust testing devices early in the miners’ shifts and placed the devices in less dusty or “clean air”; that during a testing period, officials replaced miners who ran the most dust-causing machines with miners who were not wearing the dust testing devices, so that the company would pass the tests; that Armstrong officials fabricated and submitted dust sampling test results on days the mine was shut down or otherwise not in operation; that officials ordered that testing devices be run in “clean air,” before and after shifts, to skew the test results toward passing; that a mine superintendent twice mandated to a safety official to take whatever action necessary to ensure that the company passed dust sampling tests.