Justice Family Reaches Resolution With Bank Over Loans

A resolution to legal issues between West Virginia Gov. Jim Justice’s family and businesses and Virginia-based Carter Bank & Trust has been reached.

The Justice group of companies said in a statement released Wednesday by attorney Steve Ruby that they “successfully concluded a number of matters relating to Carter Bank and Trust (CB&T), one of the companies’ longtime financing partners,” the Bluefield Daily Telegraph reported.

The Republican governor’s coal and hospitality businesses filed a lawsuit in May against the bank over claims of deception. Justice was also personally on the hook for $368 million in remaining loan debt to that bank, according to court documents. The suit sought damages of $421 million related to financing arrangements of outstanding loans.

That action came after Carter Bank had filed suit regarding $58 million in loans that, they said, were “personally guaranteed” by Justice and his wife Cathy.

“The resolution marks a resumption of the companies’ previous business relationship with CB&T and will allow them to maximize performance in the current favorable markets in mining, hospitality, and agriculture,” the statement from Ruby said.

Vice President Mike Pence Visits West Virginia, Praises State COVID-19 Response

Vice President Mike Pence visited West Virginia on Saturday, meeting with Gov. Jim Justice, and several lawmakers,  for a roundtable discussion.

The meeting, which included Seema Verma, the administrator of the Centers for Medicare & Medicaid Services in the Trump administration, occurred ahead of a $25,000 a seat Trump campaign fundraising dinner that Pence will headline, set for Saturday evening at the Greenbrier Hotel in White Sulphur Springs.

“We are truly grateful for the leadership you have shown, your team has shown, your delegation to Washington has shown,” Pence said, praising state efforts as the nation continues to fight the coronavirus.

“It is clear that the people of West Virginia have put the health of your neighbors and those who are most vulnerable first,” the vice president said.

Pence assured that the federal government will provide resources to states to protect people but also to open up the economy.

“I want to commend you for the way the West Virginia economy has stayed open,” Pence added, noting that 83 percent of West Virginia’s small businesses are open today.

“That is a demonstration of the character and resilience of the people of this great state… We’re absolutely determined to partner with you until we bring West Virginia back to work and back to school,” he said.

Among those attending the discussion were U.S. Sen. Shelley Moore Capito, who is up for re-election against Democratic opponent Paula Jean Swearengin.

“If we get healthy, then the economy can get going again,” Moore said at the gathering, which was broadcast online Saturday.

Justice thanked Pence for the visit and turned his attention on schools, which are set to re-open on Sept. 8.

“If you’re going to open up America, you’ve got to open up America’s schools,” he said.

Justice noted the importance of getting children back in classrooms and acknowledged the burden on single parents, in particular, to help their children stay educated and continue to provide for families.

“West Virginia has been a model in a lot of ways,” Justice said. “We’re going to win this battle. We’re going cross this finish line. We’re going to go back to school but we’re going to do this safely.”

W.Va. Corrections Division Admits Error Led To Political Attack Ad

CHARLESTON, W.Va. (AP) — It was a textbook campaign ad, red meat for a tough race — a killer freed, a governor to blame and his Republican challenger promising to keep everyone safe.

But just hours after it aired, West Virginia corrections officials disputed the facts behind gubernatorial hopeful Woody Thrasher’s latest attack on Gov. Jim Justice, and admitted they’re responsible for the error.

The ad debuted Monday morning, criticizing Justice for releasing a convicted murderer as part of a deal to parole dozens of inmates during the coronavirus pandemic.

“Justice didn’t even check on who he let out,” Thrasher said in the advertisement, which was based on information from a Freedom of Information Act request filed with the state.

By Monday afternoon, the state corrections department said it had mistakenly listed the man among those released under the deal. Instead, the agency said he was actually let out for unrelated reasons, after doing his time and then serving 60 days for an alleged probation violation.

Thrasher has been highly critical of the Republican governor in the lead up to the June 9 primary election. He previously was Justice’s commerce secretary but resigned after numerous complaints about poor management of a program he oversaw, to provide housing assistance for victims of a devastating flood in 2016.

The parolee, 35-year-old Michael David Day, was convicted of killing a homeless Vietnam veteran when he was teenager. He was sentenced to life in prison but was paroled in 2017 after a U.S. Supreme Court decision ruled it unconstitutional for juveniles to receive mandatory life sentences. Day was jailed again in January on an alleged probation violation and released March 27.

The headline to this story was updated at 12 p.m. on Wednesday, May 6, to more accurately reflect which state agency was responsible for the error.

Manchin at a Political Crossroads with Decision on Gubernatorial Run

Joe Manchin is once again at a career crossroads that says as much about the West Virginia politician as it does the state of American politics.

The Democrat says he’ll decide right after Labor Day whether to stick with being in the U.S. Senate, where he was just reelected for a six-year term, or make a run for West Virginia governor in 2020.

In some ways, it’s almost a risk-free political choice because Manchin can try to return to the governor’s office, the job he had before joining the Senate, without forfeiting his Senate seat or complicating his party’s drive to control Congress.

If he decides to run for governor and wins, conceivably he could even temporarily name his own successor in the Senate. But as a rare Democrat who can win a statewide race in a state that has fallen hard for President Donald Trump, Manchin’s decision will be telling.

On the one hand, the Senate may be losing its luster as Manchin, whose party is in the minority, is bumping up against the limits of Democrats’ power. Yet rather than continue trying to work with president, as he is known to do, Manchin probably would have to confront Trump, who has been an ally of incumbent Republican Gov. Jim Justice.

So far, Manchin appears to be keeping a quiet counsel, traveling the state this past week, but holding his thinking close. He declined a request for an interview with The Associated Press.

“I’ve had a lot of inquiries they want me to come back home,” Manchin told CBS’ “Face the Nation” in an interview Aug. 18. “I have people think that maybe I should stay.”

Manchin has offered few clues even to his own party.

Over a dozen state senators questioned Manchin at a closed-door meeting this spring, warning that his indecisiveness is hamstringing other Democratic hopefuls while giving Trump and the national Republicans ample time to assemble behind Justice, according to Sen. Roman Prezioso, the Democratic leader of the GOP-majority state Senate.

Manchin kept mum, telling the lawmakers he needed time to talk to his family before making up his mind.

“They were pressing him hard,” Prezioso said. “It was like a family get-together at Christmas – arguing, wanting to choke each other and then we were all friends at the end.”

Justice, a billionaire whose businesses have been trailed by lawsuits alleging unpaid bills , has bet on the state’s love of Trump to carry him through damaging news stories and into a second term.

In April, he hired current and former Trump staffers to lead his 2020 campaign after a federal subpoena was sent to his administration and state Republican committees approved “no confidence” resolutions in him. During a spat with Senate Republicans over an education bill this summer, Justice proclaimed he and Trump are “bound at the hip” as a top GOP lawmaker called him an “embarrassment” and demanded his resignation.

“The president is really popular in West Virginia and the governor’s ability to ride those coattails could take a lot off the problems he’s having,” said Marybeth Beller, a political scientist who teaches at Marshall University in West Virginia.

The results of Manchin’s last election, in which he ran against a Trump-backed opponent for his Senate seat, could also inform his political calculations. He narrowly won reelection by just over 3% after the president held rallies in West Virginia for his opponent, a stark contrast to the 24% walloping he put on his challenger in 2012.

There’s also payback to consider.

Manchin was governor from 2005 to 2010, until he left to run for the Senate, but he very publicly considered returning home to run again for governor again in the 2016 race. Instead, Manchin endorsed Justice, who ran for governor as a Democrat in 2016. Manchin threw his weight behind the businessman to help Justice win support from fellow Democrats and eventually edge out a crowded field of competitors. But less than a year later, in front of a roaring Trump rally crowd, Justice announced he was switching parties because Democrats had “walked away” from him.

“Of course Joe’s going to feel betrayed by that,” said Prezioso.

Steady jabs back-and-forth have ensued between Justice and Manchin, even as the senator remains a question mark over the governor’s race.

In a March news release about then-special counsel Robert Mueller, Justice made room to call Manchin “one of those loud Washington liberals” who hasn’t embraced Trump. Zeroing in on a more local issue, Justice laid blame on Manchin for the state’s neglected road system.

Manchin returned fire, saying “knowing Jim Justice’s character, it’s not a surprise for him to make a comment like this. He blames others for the work he hasn’t done.”

And when state officials were celebrating a $37 million settlement with the opioid distributor McKesson in May, Manchin was quick to criticize the dollar figure. In a stinging statement, he said Justice didn’t “care enough to fight for the money that West Virginia deserves.”

Given their history, a 2020 race between the former friends and current foes could roil the state’s political landscape, and get downright dirty in the process.

“We’re looking at it and I want to do what I can to help my state of West Virginia,” Manchin told CBS. “It’s always been about West Virginia for me.”

August 30, 1968: Wally Barron Acquitted of Federal Charges

On August 30, 1968, Wally Barron was acquitted of federal charges stemming from alleged money kickbacks and rigged state contracts during the time he was governor. Several of Barron’s associates weren’t so fortunate. His road commissioner, Burl Sawyers; Deputy State Road Commissioner, Vincent J. Johnkoski; Finance and Administration Commissioner Truman Gore; longtime Barron friend Bonn Brown of Elkins; and Clarksburg auto dealer Fred Schroath were all convicted in the kickback scheme. 

But the former governor didn’t escape his legal problems for long. It was soon rumored that Barron and his wife, Opal, had bribed the jury foreman—the lone jury holdout for acquitting Barron. In 1971, a federal jury indicted both Barrons for bribery, claiming the former first lady had passed $25,000 in a brown paper bag to the jury foreman’s wife.

Wally Barron pleaded guilty to a new indictment of conspiracy, bribery, and obstruction of justice in exchange for the charges being dropped against his wife. He was sentenced to 25 years in prison and served four. He died in 2002 at age 90. Opal Barron died in 2010 at age 95.

Gov. Justice on a Budget Before Midnight: 'We are on the Cusp'

Editor’s Note: This is a developing story. For more, visit our live blog on the latest from the final night of the Legislature’s Regular Session. 

Just two hours before the end of the 60th and final day of the 83rd West Virginia Legislature’s First Regular Session, Governor Jim Justice said he and Senate President Mitch Carmichael have struck a deal to run a revenue bill that would help push through a budget before midnight.

“To just tell it like it is, I’ve been really pessimistic for the last 36 hours. Until about 2 o’clock today. About 2 o’clock today, the momentum changed and all of the sudden there became a real hope and real optimism,” said Justice during a 10 p.m. Saturday news conference in the Governor’s Reception Room.

“I really believe that we are not there yet, but I do believe that we are on the cusp,” he cautioned. Those words come along with the knowledge that the Legislature needs to close a nearly half a billion dollar budget hole.

Justice outlined a proposal that he said calls a consumer tax increase, a “rich man’s tax” and a business tax.

The bill would call for a 4.5 cent increase on the gas tax, as well as a 1 percent increase on the consumer sales tax, according to Justice during the news conference. He said it doesn’t cut K-12 education and would still provide a 2 percent increase for teachers and also would provide aid to veterans.

“Let’s be hopeful that, at the close of business tonight, we’re there.  Wouldn’t it have been something to have pulled that off in the bleakest of bleakest times?” Justice said. 

Justice acknowledged that he still needs the support of the House of Delegates if and when his deal with Carmichael makes its way through the Senate.

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