Southwest Virginia Coal Dealer Indicted For Fraud
|U.S. Attorney’s Office November 19, 2012|
GREENEVILLE, TN—A federal grand jury in Greeneville returned an indictment on November 14, 2012, against Dale Edward Stanley, 53, of Clintwood, Virginia, for wire fraud involving a scheme to defraud Eastman Chemical Company (Eastman), Kingsport, Tennessee, on spot market purchases of coal.
Stanley appeared in court on November 19, 2012, before U.S. Magistrate Judge Dennis H. Inman. Stanley was released pending arraignment, which has been set for 1:30 p.m., November 26, 2012, in U.S. District Court, in Greeneville.
If convicted, Stanley faces a term of 20 years in prison on each count, a $250,000 fine, and three years of supervised release.
According to the indictment on file with the U.S. District Court and attached to this release, Stanley, the owner of Mountain Energy Resources Inc., Norton, Virginia, contracted with Eastman to provide steam coal, which was to have a high BTU rate and low ash rate. It is alleged that Stanley provided Eastman with lower quality coal, concealing the lower quality coal by placing it under higher quality coal in rail cars sent to Eastman. Stanley is also alleged to have paid an employee of a testing service to submit unrepresentative samples for testing. The indictment also sets out 22 wire communications from early 2010 to February 2012, where invoices were sent by fax or email to Eastman for payment.
This indictment is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Neil Smith and Suzanne Kerney-Quillen will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.