ABINGDON, Va. (AP) — Four men were sentenced Thursday for their roles in a two-state, $10 million coal industry check-cashing scheme that involved kickbacks and illegal currency transactions to evade taxes.
The four are among 23 coal operators and employees in West Virginia and Virginia who have pleaded guilty to felony charges in a complex conspiracy from 2007 through February 2011. Two others were convicted after a two-week jury trial and await sentencing. The offenders have forfeited more than $3 million.
In U.S. District Court in Abingdon, J.D. "Dot" McReynolds of Tazewell, Va., was sentenced to six months of home confinement and ordered to forfeit $500,000. U.S. Attorney Timothy Heaphy said McReynolds, 77, has terminal cancer and was given credit for cooperating with the government.
Charles Edward McReynolds II, 44, of Vallscreek, W.Va., was sentenced to three months in prison. Timothy Gregory Allen, 43, of Hurley, Va., and Kermit Clayton Wiley, 64, of Princeton, W.Va., were sentenced to six months. Wiley also forfeited $50,000.
The 2012 indictment said McReynolds owned mining supply companies and a trucking company with operations in both states. He and his associates provided cash and fraudulent invoices to coal operations in exchange for a 10 percent fee, which the coal operators included in checks to McReynolds. McReynolds and his associates evaded currency transaction reporting requirements by making multiple cash withdrawals of $10,000 or less.