Former Freedom Industries President Gary Southern is facing two new criminal charges this week, after a federal grand jury in Beckley handed up an indictment that supersedes the one issued last month. <\/p>\n
The 38-page, 14-count indictment, deletes one previous count against Southern and adds two new charges related to the governments allegation that Southern lied about his role in running Freedom to protect his personal wealth from the companys bankruptcy proceeding and from civil lawsuits filed over the January 2014 chemical leak. <\/p>\n
One of the new counts accuses Southern of fraud by interstate commercial carrier, regarding Southerns previously publicized transfer of $6.5 million from one financial account to an annuity account with creditor protection. The new count specifies that this transfer was made with an envelope containing his personal check ... delivered by [a] private and commercial interstate carrier. <\/p>\n
The other new count accuses Southern of bankruptcy fraud, alleging that he was responsible for a statement of financial affairs, to be filed with the bankruptcy court that did not list him as having been a former Freedom officer. <\/p>\n
The new indictment, made public Wednesday, does not include a previous charge of scheme to defraud in bankruptcy court, regarding an application filed in the bankruptcy case seeking to have Southerns legal costs covered by the company. The original indictment had alleged Southern misled the bankruptcy court in that application by not making clear his role at Freedom. <\/p>\n
Southern, one of six former Freedom officials facing criminal charges, is free on a $100,000 unsecured bond. He has pleaded not guilty and trial is scheduled for March 10. <\/p>\n
If convicted on all counts, Southern, 58, of Charleston, would face a maximum statutory sentence of 88 years in prison, before federal sentencing guidelines were applied to the case. The original indictments charges carries a maximum sentence of 68 years in prison. The new count alleging fraud by interstate commercial carrier carries a maximum sentence of 20 years. <\/p>\n
Three other former Freedom officials -- Dennis P. Farrell, William E. Tis, Charles E. Herzing -- were also indicted in mid-December, and the charges against them were repeated in the new indictment adding charges against Southern. Farrell, Tis and Herzing each face three misdemeanor charges of violating the Clean Water Act. <\/p>\n
Court dates have not yet been set for Freedom Industries or for two other company officials, Michael Burdette and Robert Reynolds, on charges against them related to the MCHM leak. Freedom has said it has reached a plea agreement with U.S. Attorney Booth Goodwin. Burdette and Reynolds were charged through documents called informations, rather than grand jury indictments, which is usually an indication that a plea deal is in the works. <\/p>\n
Reach Ken Ward Jr. at kward@wvgazette.com<\/a>, 304-348-1702 or follow @kenwardjr on Twitter. <\/p>\n <\/p>\n Read more:<\/p>\n Freedom's Southern faces additional charge<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Former Freedom Industries President Gary Southern is facing two new criminal charges this week, after a federal grand jury in Beckley handed up an indictment that supersedes the one issued last month. The 38-page, 14-count indictment, deletes one previous count against Southern and adds two new charges related to the governments allegation that Southern lied about his role in running Freedom to protect his personal wealth from the companys bankruptcy proceeding and from civil lawsuits filed over the January 2014 chemical leak Continue reading