(Wyo)-Feds Investigating Black Jewel Coal Company For Fraud
A new court filing reveals the federal government began a fraud investigation into coal company Blackjewel LLC prior to the company's sale last week of two Wyoming coal mines. In fact, the document filed Saturday indicates the investigation predated Blackjewel's July bankruptcy filing.
The court filing says the government has been investigating Blackjewel's potential violations of the False Claims Act, which holds corporations liable for defrauding the government, and that the company owes the federal government about $50-million dollars.
The government has asked a West Virginia federal bankruptcy court to delay discharging Blackjewel of its debts, which would allow the investigation to continue.
The federal judge who approved last week's sale of the Eagle Butte and Belle Ayr mines to Eagle Specialty Materials did not include Blackjewel's debt obligations in the deal.
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