CHARLESTON, W.Va. Bankruptcy fraud charges against former top Freedom Industries official Gary Southern are far from the end of a federal criminal investigation of the January 2014 chemical leak into the Elk River, U.S. Attorney Booth Goodwin said Tuesday.

I do anticipate there will be further results very soon, Goodwin said, when asked if Kanawha Valley residents should expect more charges related to the leak of MCHM that contaminated drinking water for hundreds of thousands of people in Charleston and surrounding communities.

On Monday, Southern was charged in a federal criminal complaint with bankruptcy fraud, lying in a bankruptcy case and committing wire fraud by filing false documents in Freedoms ongoing bankruptcy proceeding.

Federal authorities allege that Southern lied to cover up his role in operating Freedoms Etowah Terminal chemical storage site as part of a scheme to protect his personal wealth from legal actions over the companys Jan. 9 leak.

The charges against Southern were filed in federal court in Charleston, and kept under seal by U.S. Magistrate Judge Dwane L. Tinsley until Southern could be arrested in Florida, where he owns a house on Marco Island.

This was a necessary and appropriate action taken in the course of our ongoing investigation into the chemical leak from Freedom Industries, Goodwin explained.

On Tuesday in federal court in Fort Myers, Florida, U.S. Magistrate Judge Carol Mirando released Southern on a $100,000 unsecured bond, denying a request by prosecutors that he be forced to post a $500,000 secured bond to assure that he appears for further proceedings in the case. Southern had requested release on $25,000 unsecured bond. Court records show Southern is scheduled to make another court appearance Dec. 18 in Charleston.

We deny the allegations, said Charleston lawyer Bob Allen, who represents Southern, and we will defend against them vigorously.

Federal authorities allege that Southern lied about his role in running Freedom and its Etowah Terminal along the Elk River in an effort to avoid personal liability for the conditions that led to the leak of MCHM and other chemicals.

For example, Southern testified that he was not part of the Freedom organization prior to December 2013, testifying at a Jan. 21 bankruptcy court hearing that he worked for Freedom only as a part-time financial-type consultant.

See the original post here:

Goodwin: More coming on Freedom criminal probe