An attorney for Gary L. Southern, the former president of Freedom Industries, asked a federal judge Monday to immediately stay forfeiture proceedings against Southern, arguing federal prosecutors are trying to strip him of all assets accumulated throughout his working life. <\/p>\n
The allegations in the indictment against Southern dont show that his home in Florida or his Bentley were derived from the financial crimes he is accused of -- or that those assets relate in any way to Freedom Industries, Southerns attorney, Bob Allen, wrote in the motion. <\/p>\n
Earlier this month, federal prosecutors charged Freedom Industries and six of its owners, managers and employees with criminal violations of the Clean Water Act related to the January 2014 chemical leak that contaminated the drinking water of 300,000 people in Charleston and surrounding communities. <\/p>\n
Southern, Dennis P. Farrell, William E. Tis and Charles E. Herzing were each charged with three counts of violating federal environmental laws. Each man is charged with failing to meet a reasonable standard of care in running the company. <\/p>\n
Also, U.S. Attorney Booth Goodwin charged Freedom Industries, the bankrupt company, with the same three counts of criminal water pollution violations. The company was charged through a document called an information, rather than an indictment, a move that usually indicates the defendant has reached a plea deal with prosecutors. <\/p>\n
Also charged by information were former Freedom employees, plant manager Michael E. Burdette and Robert J. Reynolds, an environmental compliance officer. Both men were charged with one-count of violating the Clean Water Act. <\/p>\n
In January, Freedoms tank farm along the Elk River, the Etowah River Terminal, leaked about 10,000 gallons of coal-cleaning chemicals into the river. The primary leaked chemical was 4-methylcyclohexanemethanol, or MCHM. <\/p>\n
Southern has also been charged with profiting from the sale of goods to Freedom by companies that Southern owned or in which he had a substantial interest. In addition to the environmental charges, Southern faces six counts of bankruptcy fraud, one count of wire fraud and three counts of making false oaths or attempting to conceal his assets, all related to statements he made after the leak. <\/p>\n
The bankruptcy-related charges allege that Southern lied about his role with Freedom, claiming he was only a consultant to the company, not an executive, in an attempt to shield his personal wealth from lawsuits related to the leak. The U.S. Attorneys Office has sought warrants to seize more than $7 million from accounts belonging to Southern or a company he owns, saying they are profits from the crimes they allege. <\/p>\n
Goodwin said after Southern was indicted Dec. 17 that federal officials are seizing Southerns assets and that they will be held through the court proceedings. Allen wrote Monday that Southerns Bentley has already been seized. <\/p>\n
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Freedom's Southern: Feds shouldn't get assets during court proceedings<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" An attorney for Gary L. Southern, the former president of Freedom Industries, asked a federal judge Monday to immediately stay forfeiture proceedings against Southern, arguing federal prosecutors are trying to strip him of all assets accumulated throughout his working life. Continue reading