- BOOK REVIEW: 'The Garner Files': Jim Rockford a Curmudgeon? Say It Ain't So!
- Ona Speedway Precision Pump & Valve Imagery
- Marshall medical students provide treatment to more than a thousand Hondurans during international mission
- MILITARY-INDUSTRIAL COMPLEX: Defense Dept. Contracts for July 18, 2014
- Marshall Artists Series includes Icons from Jay Leno, Frankie Valli to Disney's Beauty and the Beast
- CSB Investigation Finds No Record of Inspections on Freedom Industries Chemical Storage Tanks
- Huntington’s Council Charter Committee Adds Recommendation to Lengthen Executive Search Time from 60 to 120 Days
- Marshall University Forensic Science Graduate Program again ranks number one in the nation on national assessment test scores
- Donna Underwood creates two scholarships to honor her late husband
- FNC Index: Home Prices Pick Up Momentum
Seven defendants charged to date in ongoing fraud investigation at Massey legacy mines
When approached by law enforcement in February 2013, Steele admitted to investigators that during the scheme, he illegally provided cash and other things of value to former Massey sourcing agents Joey R. Phalin, Edward Ellis Mullins, and Nicholas R. Coleman, in exchange for bogus invoices for payment that M&S Hydraulics knowingly had not provided. Between at least July 2007 through 2012, Steele falsely billed, through the sourcing agents, approximately $1.3 million for goods and services that were not provided.
The sourcing agents, who were generally responsible for ordering goods and services for mining operations from Alpha suppliers, participated in the illegal scheme to obtain goods for their own personal benefit. The sourcing agents hid numerous illegal transactions by creating false invoices.
Phalin, 36, of Crab Orchard, W.Va., was sentenced today to five years’ probation, the first three months of which are to be served on home confinement. Mullins, 41, of Peytona, W.Va., was sentenced yesterday to five years’ probation, the first ten months of which are to be served on home confinement. Coleman, 29, of Lester, W.Va. was sentenced yesterday to five years’ probation for his role in the scheme.
Through his cooperation, Steele identified other sourcing agents involved in the scheme. Last week, former sourcing agent Ricky R. Smith, of 49, Glen Daniels, was sentenced to 1 ½ years in federal prison. James Rodger Long II, 34, of Beckley, also a sourcing agent, was sentenced to 1 ½ years in prison.
Harold Wayne Brown, II, a former Alpha underground maintenance chief, previously pleaded guilty to making a false statement to federal authorities regarding benefits he had received from the false billing scheme. Brown, II, 41, of Madison, W.Va. is scheduled to be sentenced on Jan. 21, 2014.
The investigation was conducted by the FBI and the West Virginia State Police with cooperation from Alpha Natural Resource’s internal security team. Assistant United States Attorney Thomas Ryan is in charge of the prosecutions.
In June 2011, Alpha Natural Resources finalized the purchase of Massey, including the mining divisions located along WV Route 3 in Boone and Raleigh counties.