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Justice May Have State Wages Garnished To Repay $847,000 Bank Loan

The notice orders the state Auditor to garnish 20 percent of Justice’s state wages after deduction of state and federal taxes, or the amount of his wages that exceed 50 times the federal hourly minimum wage.

Update: March 29. 2023 9:30 a.m.

Statement from state Auditor J.B. McCuskey’s office: “When we receive a wage garnishment order issued by a court, it is processed as directed by applicable statutes, rules and regulations. This is done without regard to whom the order is directed, whether a state official or employee, including the governor.”

Original Story

Gov. Jim Justice defaulted on a loan and may forfeit a portion of his state wages to pay it back.

Citizens Bank of West Virginia filed a document last week in the Circuit Court of Randolph County in Elkins that says Justice owes the bank $861,000, including more than $13,000 in unpaid interest and a $27 application fee.

Justice earns a $150,000 annual salary as governor. The wages will be withheld for a year unless the outstanding balance and interest is settled sooner, the document states.

Interest on the balance will accrue at 4 percent annually until the balance is paid.

The judgment was awarded on Oct. 18, and the interest penalty is as of March 14.

The judgment also names Bluestone Resources, a coal company Justice’s family owns.

The West Virginia Record reported last week that Citizens Bank loaned Bluestone more than $2.5 million in 2018 to purchase machinery and that Justice personally guaranteed the obligations. Citizens Bank accuses Justice and Bluestone of breach of contract.

Editor’s note: This story was updated to include the statement from the state auditor’s office.

Alabama Coke Plant Justice Family Owns Agrees To Pay $1 Million Penalty

The Bluestone Coke plant in North Birmingham had been cited for years for hazardous pollutants from its coking ovens.

This story has been updated with comments from Justice.

An Alabama industrial facility owned by the family of Gov. Jim Justice has been ordered to pay a nearly $1 million penalty.

Bluestone Coke, which operated in North Birmingham, Alabama, was ordered to pay a $925,000 fine for air pollution violations. That, according to the Southern Environmental Law Center, is the largest single penalty ever issued by the Jefferson County Department of Health.

The plant is currently not operating. If it resumes operation, it would be required to monitor its emissions. It would also be subject to more rigorous documentation of compliance.

In his COVID-19 briefing on Wednesday, Justice called the settlement “a pleasing outcome to all parties.”

“I think it’s good,” Justice said.

The plant had been cited for years for hazardous pollutants from its coking ovens.

The local health department went to court last year alleging Bluestone violated its permit and the federal Clean Air Act.

A ProPublica story in September showed pollution from Bluestone had a disproportionate impact on the Black neighborhoods surrounding the plant.

Bluestone Coke is a subsidiary of Bluestone Resources, one of the many companies Justice lists on his annual disclosure to the West Virginia Ethics Commission.

Company Owned by Gov. Jim Justice Giving Away Tickets to Event at Resort (Also Owned by Justice)

The Greenbrier resort has announced it’s giving away prizes and tickets to an upcoming golf tournament. A coal company controlled by the family of West Virginia Gov. Jim Justice is paying for the tickets.

The Professional Golfers’ Association will hold a tournament, dubbed “A Military Tribute”, at the Greenbrier resort from Sept. 9 to Sept. 15. The Associated Press reported the resort announced there are 30,000 tickets available for fans who register online starting Friday, Aug. 16.

During the tournament the resort says there will also be several drawings for a total of 150 prizes, those being valued at $1,000 or more. Those interested can also register online.

Tickets are courtesy of coal mining company Bluestone Resources. Justice owns both Bluestone and the Greenbrier resort.

West Virginia Gov. Jim Justice gives a speech during a Department of Tourism conference Wednesday, Sept. 19, 2018, at the Morgantown Event Center.

He and his companies have recently been under fire for being rife with conflicts of interest — the businessman turned governor operates dozens of companies regulated by state agencies he oversees.
The Greenbrier’s PGA announcement comes one day after the Charleston Gazette-Mail published a roughly 6,000-word expose on Justice and his conflicts of interest, in partnership with ProPublica.

Second Justice Company Steps in to Pay $1.23 Million Fine

Federal prosecutors have agreed to drop a motion seeking to hold West Virginia Gov. Jim Justice and his son, Jay Justice, personally accountable for a $1.23 million civil penalty levied against one of the family’s coal businesses, Justice Energy Company, Inc.

In an order filed Friday in the U.S. District Court for the Southern District of West Virginia, attorneys for Justice Energy proposed that another Justice company, Bluestone Resources, Inc., will pay the fine.

In exchange, federal prosecutors agreed to withdraw a motion seeking a court ruling that the Justices be held personally responsible for the civil contempt fine levied on Justice Energy because the company is, in effect “a shell corporation with no real independent and separate corporate existence.”

U.S. Attorney for the Southern District of West Virginia Mike Stuart in a court filing last week said after deposing company executives, including the governor’s son, federal prosecutors concluded the Justices were in practice “the alter egos” for the company and should be required to pay the fine.

In a statement regarding the settlement, Bluestone Resources CEO Tom Lusk expressed gratitude toward the U.S. attorney’s office and said “despite this disproportional penalty, the Justice Family has once again stepped up to pay an obligation.”

The Friday order, signed by U.S. District Judge Irene Berger, lays out a timeline for Bluestone Resources to pay the $1.23 million fine, which stems from a 2013 case over unpaid business debts to Virginia-based James River Equipment.

The company sued Justice Energy to recover roughly $150,000 in unpaid fees for mining equipment, services and parts. Two years after being ordered to pay the debt, and after company representatives repeatedly failed to show up for court hearings, Berger held Justice Energy in contempt of court to the tune of $30,000 per day, totaling $1.23 million. Justice Energy appealed the fines, but lostin 4th U.S. Circuit Court of Appeals last August.

Under the new order, Bluestone Resources will make three, $410,000 payments to satisfy the civil fine on behalf of Justice Energy.

The U.S. attorney’s office retains the right to refile the “alter ego” motion should Bluestone Resources fail to make the payments, according to the order.

The first payment is due June 17.

Company Adding 290 Coal-Mining Jobs in Three States

Bluestone Resources says it is hiring 290 more workers for its coal-mining operations in West Virginia, Kentucky and Virginia.

In West Virginia, the company says new jobs will be created at Keystone Surface Mine and at Bishop Surface Mine, which is reopening. Bluestone says it’s also looking for miners at its operations in Pike County, Kentucky, and in Wise, Virginia.

Jay Justice, who operates the mines for Justice Companies, says workers are being sought to operate all types of machinery. He says the company is looking to hire right away.

The company says a new training program for a small number of inexperienced workers is also being initiated.

Jim Justice-Owned Bluestone Resources Recalling 200 Southern W.Va. Miners

Some 200 miners in southern West Virginia could be back to work by the end of the summer after an announcement Monday from Bluestone Resources.

The Jim Justice owned Bluestone Resources announced in a press release they are starting the recall process for Coal Mountain mine located in Wyoming County.

Bluestone spokesman Tom Lusk said the process to notify laid-off miners of open positions began this week and is on a “fast track” to be completed in the next few days. He predicted the mine will return to full production within a month.

Lusk said the recall process at the Red Foxx mine in McDowell County will begin as soon as the Coal Mountain project is completed. The sites are expected to employ a total 200 miners.

Justice bought Bluestone Resources from the Russian-based Mechel OAO in February after selling to the company in 2009 for $436 million.

Justice owns mines in multiple states and is working with the federal Mine Safety and Health Administration to pay more than $1.5 million in penalties in Kentucky.

In May, Justice announced he’d seek the Democratic nomination for governor.