Ten former employees and vendors of Arch Coal subsidiary Mingo Logan have been charged in an alleged extortion schemes involving almost $2mn in kickbacks for work at the Mountain Laurel mine in West Virginia.
Former mine general manager David Runyon and others allegedly participated in a number of schemes in which vendors paid cash in return for continued business at the mine in Logan County. The activity occurred between 2006 and 2013, the charging documents said.
"The primary scheme encompassed four component schemes: a general rebuild kickback scheme, the miner/bolter rebuild kickback scheme, the construction work kickback scheme, and the contract labor kickback scheme," documents filed in US District Court for the Southern District of West Virginia said.
Others listed as defendants are Gary Griffith, Stephen Herndon, Scott Ellis, Alvis Porter, David Herndon, Ronald Barnette, Gary Roeher, Chadwick Lusk, and James Evans.
The documents describe transactions in which Runyon and others received money in exchange for guaranteeing that certain vendors received work contracts. Charges were also filed for tax evasion and making false statements.
Arch today told Argus that it had reported "certain irregularities" at the mine to federal authorities, and thanked the US attorney's office for its response.
Arch said the company is "deeply committed to maintaining the very highest ethical standards in everything we do. In keeping with that commitment, Arch requested the help of federal authorities to investigate potential misconduct involving vendors and mine personnel in West Virginia."
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