West Virginia’s Two Federal Prosecutors Say Those Involved In Illegal Acts During U.S. Capitol Insurrection Are Subject To Charges

Updated Thursday, Jan. 7 2021 at 4:30 p.m.

West Virginia’s two federal prosecutors say they will be working with colleagues in the U.S. Justice Department to investigate and hold to account those who took part in illegal activity during Wednesday’s insurrection at the U.S. Capitol by pro-Trump extremists.

U.S. Attorneys William Powell and Mike Stuart — who were appointed by President Donald Trump to serve West Virginia’s Northern and Southern districts, respectively — each issued statements condemning the violent takeover of the capitol building as Congress was certifying Joe Biden as the winner of the 2020 presidential election.

Powell and Stuart indicated they will assist in bringing charges against those who can be identified as taking part in any illegal activity in Washington D.C. on Wednesday.

“Anytime anyone violates federal law, he or she is subject to prosecution. This includes the actions seen yesterday at the U.S. Capitol building,” said Powell in a statement issued Thursday. “If we determine jurisdiction, and evidence warrants prosecution in the Northern District of West Virginia, I will not hesitate to prosecute to the fullest extent of the law.”

Acting U.S. Attorney Jeffrey Rosen said some charges will be announced Thursday and that the agency “will continue to methodically assess evidence, charge crimes and make arrests in the coming days and weeks to ensure that those responsible are held accountable under the law.”

“The Department of Justice is committed to ensuring that those responsible for this attack on our government and the rule of law face the full consequences of their actions under the law,” Rosen said. “Our criminal prosecutors have been working throughout the night with special agents and investigators from the U.S. Capitol Police, FBI, ATF, Metropolitan Police Department and the public to gather the evidence, identify perpetrators, and charge federal crimes where warranted.”

Stuart, of West Virginia’s Southern District, said he is already working with other officials in federal law enforcement. He said he backs Rosen’s position on the matter.

“My team is working with our counterparts in law enforcement and, as the facts dictate, are prepared to enforce the Rule of Law and the laws of these United States,” said Stuart in a Thursday statement. “I fully support and endorse the statement of Acting United States Attorney General Rosen regarding yesterday’s intolerable events.”

At least two West Virginians have so far been identified as taking part in the capitol protests.

Newly elected Del. Derrick Evans, R-Wayne, live streamed video as he joined other pro-Trump extremists in breaking into the capitol building. In a since-deleted Facebook video that was copied and shared across various social media, Evans was filming outside of the building before the crowd made its way inside.

“We’re in! We’re in! Derrick Evans is in the Capitol!” can be heard on the video.

Roger Hanshaw, speaker of the West Virginia House of Delegates, has said his office is assessing Evans’ role in the storming of the U.S. Capitol, while other Republicans and Democrats across the state are calling for him to resign or be expelled from the body. Many are calling for him to be prosecuted.

Evans has not returned West Virginia Public Broadcasting’s multiple requests for comment.

The Parkersburg News & Sentinel reported that city councilman Eric Barber also took part in Wednesday’s events at the capitol, although it is unclear the extent of his involvement. But the newspaper did report that Barber said that acts of violence went too far.

“I don’t think it should have been done, but I understand why people are angry,” Barber is quoted as saying about Wednesday’s events.

Representatives from Stuart’s and Powell’s office did not return a request for comment to say whether any West Virginians are being investigated for taking part in the storming of the capitol building. Federal prosecutors typically do not confirm or deny the existence of investigations until charges are made public through an indictment or an information.

However, a spokeswoman for Powell’s office did say that she believes that many of the potential charges will fall under the jurisdiction of the U.S. Attorney of the District of Columbia — unless plots to commit illegal acts took place in another district.

Officials with the U.S. Attorney’s office for the District of Columbia said charges related to 40 cases have been brought forth so far, with an additional 15 cases to be filed Thursday.

While it remains unknown if any West Virginians have or will be charged, the Department of Justice says specifics on any charges related to Wednesday are forthcoming.

Photographer Chris Jones of 100 Days in Appalachia is a fellow with Report for America.

West Virginia Secretary of State, Federal Prosecutor Warn Against Election Tampering

West Virginia’s chief elections officer and a federal prosecutor announced they are looking into an possible attempted intrusion into the state’s election system last year. The two officials held a news conference Tuesday to make note of the incident and to promote election security as part of October’s designation as National Cybersecurity Awareness Month.

Secretary of State Mac Warner said Tuesday he referred a matter to the United States Attorney’s Office that might have been an unsuccessful attempt to gain access to the state election system during the 2018 election cycle.

Warner said the incident occurred during the rollout of a mobile voting pilot for uniformed overseas absentee voters. During the pilot rollout, Warner said application vendor and Boston-based company Voatz identified activity that could have been an attempt to gain access to the system.

Warner has touted the Voatz application as a means to give wider election access to military absentee voters. However, the concept of online voting — including those on mobile applications, like Voatz — has been highly scrutinized by election and cybersecurity experts in the wake of the 2016 election. 

“In last year’s election, we detected activity that may have been an attempt to penetrate West Virginia’s mobile voting process,” Warner said. “No penetration occurred and the security protocols to protect our election process worked as designed.”

Warner also said no votes were tampered with and the integrity of the election was not compromised.

U.S. Attorney for the Southern District of West Virginia Mike Stuart held a press conference with Warner Tuesday at the federal courthouse in Charleston. 

Stuart said his office and the FBI are investigating the incident, although no determination has yet been made whether any federal laws were broken. He provided no further details on the investigation.

Even so, Warner and Stuart noted that October is National Cybersecurity Awareness Month — a period recognized by the U.S. Department of Homeland Security “to raise awareness about the importance of cybersecurity and to ensure that all Americans have the resources they need to be safer and more secure online.”

The two officials used the Tuesday news conference to warn against uninvited attempts to breach the West Virginia’s election system.

“This announcement today is to warn people that any attempt to hack an election will be fully investigated by the FBI and turned over to prosecutors when appropriate,” Warner said. 

Stuart echoed Warner’s remarks, stating that his office is prepared to pursue criminal charges against those who attempt to tamper with the state’s election system. 

“If you are a party – any party – or an individual – any individual – that intentionally compromises or attempts to intentionally compromise our election systems, the security related to our election systems, or the legitimacy of the votes cast by citizens, my office will prosecute you to the fullest extent of the law,” Stuart said. “Free and fair elections are a critical foundation to the maintenance of liberty.”

Federal Prosecutors Say WV Gov. Justice Responsible For Some Fines Against Family Company

U.S. federal prosecutors on Tuesday said they will seek a court ruling to hold West Virginia Gov. Jim Justice and his son, Jay Justice, personally accountable for a $1.23 million civil fine imposed on one of the family’s coal businesses, Justice Energy Company, Inc.

 

In a court filing, U.S. Attorney for the Southern District of West Virginia Mike Stuart said after deposing company executives, including the governor’s son, federal prosecutors concluded the company is “in reality, a shell corporation with no real independent and separate corporate existence.”

Stuart said the governor and his son are “the alter egos” for the company and is moving for the Justices to be held personally responsible for the civil contempt fine levied on Justice Energy.

The $1.23 million civil fine stems from a 2013 case over unpaid business debts. As the Ohio Valley ReSource reported in October, Virginia-based James River Equipment sued to recover roughly $150,000 in unpaid fees for mining equipment, service, and parts sold to Justice Energy.

Justice Energy had also agreed to a payment plan, but stopped making payments after just two.

Two years after being ordered to pay the debt company representatives repeatedly failed to show up for court hearings. U.S. District Judge Irene Bergerheld Justice Energy in contempt of court to a tune of $30,000 per day, totalling $1.23 million. Justice Energy appealed the fines, butlost in 4th U.S. Circuit Court of Appeals last August.

In the months since, Berger allowed federal prosecutors to depose Justice Energy employees to get a better picture of the company’s assets.

“Corporate Shell”

In the memorandum filed Tuesday, Stuart noted prosecutors deposed multiple executives including the governor’s son. Prosecutors also deposed James Miller, secretary and treasurer of Justice Energy, and Stephen Ball, vice president and general counsel for the company, referred to as JEC in the filing.

“JEC has no substantive assets, has not engaged in true corporate activities, and is dominated and controlled by a limited liability company and certain corporations that are dominated and controlled by James C Justice II and James C. Justice III (“the Justices”), the shareholders of the corporate entity that ultimately controls JEC,” the document states.

The filing was first reported by Taylor Kuykendall with S&P Global.

The memo cites portions of the interviews federal prosecutors conducted. In them, prosecutors said, Jay Justice, who took over control of the majority of the Justice coal companies, was “not involved in JEC’s day-to-day business.” Justice also told prosecutors all major financial decisions related to the company would be made by him personally.

Stuart noted Justice Energy’s sole stated purpose is to operate the Red Fox Surface Mine located in McDowell County. A review of the company’s finances showed it owns almost nothing associated with the mine. The mining permit is held by Blue Stone Coal Corporation, the coal reserves are held by Rowland Land Company, and Blue Stone Coal Sales Corporation sells the coal mined there. Jay Justice is listed as president for all of these companies, the document states.

Another company that supplies equipment to the site, Blue Stone Resources, also owned by the Justices, has liens associated with it. Stuart notes different Blue Stone companies pay employees and even file taxes on behalf of Justice Energy.

Furthermore, unaudited balance sheets for Justice Energy provided to the U.S. attorney’s office show “little to no available funds.”

“There is no doubt that JEC was and is nothing more than a corporate shell dominated and controlled by James C. Justice II, James C. Justice III, and their business instrumentalities,” the filing states, noting the company has no money, no assets and does not own the Red Fox mine it claims to be operating.

Last week, Berger gave Justice Energy a week to submit a proposal outlining how it will pay the $1.23 million fine by no later than Jan. 1, 2020.

Growing Legal Problems

This is the second time in a month that the U.S. Dept of Justice has taken action against the Justice family companies. In May, prosecutors filed suit to recover more than $4 million in delinquent fines for mine safety violations assessed by the Mine Safety and Health Administration.  

U.S. Attorney Mike Stuart Holds Invite-Only Anti-Marijuana Event

An invitation only Wednesday event in Charleston was billed as a symposium on marijuana, but skewed towards opposition of the drug’s legalization for medical and recreational purposes.  The event, titled The Colorado Experiment: A Look Back and What You Need to Know, touched on ecological, medical, public safety and law enforcement positions related to marijuana — with all of the speakers standing in opposition to reforms that would provide wider access to the drug.

Mike Stuart, the U.S. Attorney for the Southern District of West Virginia, hosted the event alongside the Appalachia High Intensity Drug Trafficking Area (HIDTA), a regionally-focused federal task force aimed at curbing drug trafficking and the National Marijuana Initiative, a program administered by the federally run HIDTAs.

Officials from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Rocky Mountain High Intensity Drug Trafficking Area; a former U.S. Attorney from Colorado, a hospital pharmacist; a research ecologist and the executive director of a non-profit opposed to legalization and commercialization were among the speakers.

The event comes as federal agencies continue to delve into marijuana’s potential effects through research but have yet to reach a final conclusion. Wednesday’s presentations — which focused exclusively on oppositional viewpoints on marijuana — also come at a time when national trends indicate the American public and state governments are increasingly supportive of legalization.

According to the National Conference of State Legislatures, 33 states, the District of Columbia, Guam and Puerto Rico allow marijuana for medical use. Ten states and D.C. have legalized the drug for recreational purposes. It remains illegal on the federal level.

Public opinion polling by Gallup and the Pew Research Center — conducted separately and both released in October 2018 — indicate roughly two-thirds of Americans support the legalization of marijuana.

While that research doesn’t drill down on opinions at the state level, polling from Orion Strategies suggests support for marijuana legalization in West Virginia — for doctor-prescribed medical purposes and for recreational purposes for citizens over the age of 21 — has been increasing in recent years.

Data released in 2018 show 67 percent of West Virginians polled support medical marijuana if prescribed by a doctor and 34 percent of West Virginians for recreational purposes. Those numbers are up from the earliest-recorded data from Orion, which show 52 percent of West Virginian polled supported medical marijuana and 20 percent supported legalization for recreational purposes in 2015.

But some presenters warned that public opinion on the subject does not equal a safe product.

Smart Approaches to Marijuana executive director Kevin Sabet likened marijuana legalization to tobacco. Sabet said tobacco’s health effects were unknown a century ago — but since then, research and public opinion have changed and the substance is generally understood to be harmful.

“It’s a brilliant marketing strategy,” Sabet, who also worked on drug policy in the Obama Administration, said of marijuana industry leaders and lobbyists who support legalization.

Sabet’s organization opposes legalization but specifically emphasizes a stance against commercialization. He said he believes research will ultimately lead to marijuana becoming the “next tobacco.”

But at least some potentially harmful effects of marijuana are linked to illegal growing practices and chemicals used in that process.

Dr. Mourad Gabriel, co-founder of the Integral Ecology Research Center and a faculty member at the University of California-Davis, detailed his own research that shows rodenticides (chemicals placed around illegal grow sites to deter rodents) are linked to harmful and potentially deadly effects on water and wildlife, specifically on fishers — a weasel-like mammal inhabiting the Pacific Northwest.

Gabriel urged stringent testing of marijuana to detect these harmful compounds. He also noted that his research has not focused on the potential effects these compounds may have on human life.

“What I worry about is an immuno-compromised individual — someone who may have cancer, someone may have AIDS — and they’re looking for an alleviation of their pain and suffering. They may turn to [medical marijuana] and what I would expect — as if that was a family member of mine — I would want to make sure that that material is 100 percent screened as any medical product and with the same stringent standards,” Gabriel said.

Dr. William Lynch, a pharmacist at Kennedy University Hospital in Cherry Hill, New Jersey, cited dozens of studies that link marijuana to mental health disorders, including depression, anxiety and psychosis. He also described an incident in which 19-year-old died after jumping off a building in Colorado while under the influence of an edible containing THC, an active ingredient found in marijuana.

Other speakers at Wednesday’s event said public support has increased as access to marijuana around the country has increased. However, they warned that increased potency — with some saying modern forms of marijuana is “not your parents’” version — and insufficient research should be a cause for concern in legalizing marijuana for any purpose.

At least one speaker at the event, National Marijuana Initiative director Ed Shemelya, has a history of assisting in the defeat of state-level marijuana legislation.

In 2015, the NMI assisted the Kentucky Baptist Convention in defeating a bill in the Kentucky General Assembly that would have legalized marijuana for medicinal purposes. According to Murray, Kentucky public radio station WKMS, Shemelya — who is a retired commander with the Kentucky State Police — reached out to the religious organization to help curb the bill’s passage.

At Wednesday’s event, Shemelya admitted that there is some scientific evidence that marijuana does have medicinal benefits — but cautioned that more time is needed to fully understand the effects of legalization.

The National Institutes of Health’s National Institute on Drug Abuse has yet to give a final say on marijuana’s medical benefits. The organization has stated that research conducted thus far on the subject “is mixed.”

“Some data suggest that medical cannabis treatment may reduce the dose of opioids required for pain relief, while another NIH-funded study found that cannabis use appears to increase the risk of developing nonmedical prescription opioid use and opioid use disorder. Though no single study is definitive, they cumulatively suggest that medical marijuana products may play a role in reducing the use of opioids needed to control pain but that these products don’t come without risk,” the organization states on its website.

Shemelya echoed the NIH’s position during his presentation Wednesday.

“For anyone to tell you there is no medicinal value — they are outright lying to you,” Shemelya said before suggesting that five to ten more years of research is needed before having a clear understanding of marijuana’s effects on health and other impacts of legalization.

Republican Sen. Mike Azinger, Senator-elect Eric Tarr and Del. Tom Fast were among the state lawmakers in attendance at the event. Democratic House of Delegates members Mike Pushkin and Andrew Robinson — who attended a portion of the event  — said they were invited only after requesting access through Stuart’s office.

Pushkin, who is an advocate for marijuana reforms and did not give a presentation Wednesday, called the event a “lecture series by a handpicked list of prohibitionists who used half truths and fear tactics to further a predetermined narrative.” He also suggested Stuart hold additional discussions that would involve supporters of legalization.

“I appreciate the invitation and the work that Mike Stuart and his staff put into this event. However, it would have been more meaningful and productive to hear people with differing viewpoints discuss the issue and attempt to reach a rational consensus,” Pushkin said. “I think the people would be better served if we could have an open discussion on the matter. I’d love to debate U.S. Attorney Mike Stuart on this issue in a public forum.”

Stuart, whose job is to prosecute and enforce laws in federal court, has been a staunch and vocal opponent of marijuana reform, including legalization for medical and recreational use. He suggested throughout the event that everyone knows where he stands on the issue.

“If marijuana is legal, it’s legal. But it doesn’t mean there won’t be regulation and enforcement. It can be legal tomorrow. But I do know this about the marijuana lobby — we will either run that regime if it comes into West Virginia, or it will run us. So it’s important that even if it becomes legal, that we enforce regulations — and that we make sure there’s a level landscape for everybody,” Stuart said.

With a bill passed by the Legislature and signed by Gov. Jim Justice in 2017, West Virginia is slated to provide medical access to the drug on July 1, 2019. However, technical cleanups to the law failed to pass during the 2018 legislative session — leaving the launch of the state’s medical program in question.

Stuart, along with other anti-marijuana speakers at the event, acknowledged that national trends in state legislation indicates that legalization for recreational purposes often follows passage of medical marijuana laws.

“The goal here was to try to learn from the experience in Colorado and learn from the experience that we’ve seen on the west coast. And if we head down this path, how can we do it better? How can we avoid the mistakes those places have done?” Stuart asked.

While Stuart said he welcomes additional discussion on the matter that would include supporters of marijuana legalization, no events are currently scheduled through his office.

 

West Virginia U.S. Attorney to Hold Invitation Only Marijuana Symposium

A federal prosecutor will hold a symposium on marijuana Wednesday in Charleston. The invitation-only event will feature law enforcement officials and researchers opposed to marijuana legalization.

Mike Stuart, the U.S. Attorney for the Southern District of West Virginia, is hosting the event alongside a regional task force aimed at curbing drug trafficking. 

Featured speakers at the event include Dr. Mourad Gabriel, an ecologist who assists law enforcement in remediating illegal grow sites, and Kevin Sabet, executive director of Smart Approaches to Marijuana, a nonprofit that opposes legalization and commercialization. 

Stuart himself has also been a staunch and vocal opponent of marijuana reform, including legalization for recreational and medical use.

According to the National Conference of State Legislatures, 33 states, the District of Columbia, Guam and Puerto Rico allow marijuana for medical use. Ten states and D.C. have legalized the drug for recreational purposes. It remains illegal on the federal level.

West Virginia is slated to provide medical access to the drug on July 1, 2019, although technical cleanups to the law failed to pass during the 2018 legislative session.

Public opinion polling conducted by Gallup and Pew — released separately in October 2018 — indicate roughly two-thirds of Americans support the legalization of marijuana. 

Justice Loughry Indicted on Federal Charges of Fraud, Witness Tampering, Making False Statements

A grand jury in West Virginia’s southern district has indicted state Supreme Court Justice Allen Loughry on 22 counts. The charges include fraud, witness tampering and making false statements.

U.S. Attorney Mike Stuart says FBI agents arrested Loughry Wednesday morning and brought him to the Robert C. Byrd federal courthouse in Charleston for processing.

The 22-count indictment charges Loughry with sixteen counts of mail fraud, two counts of wire fraud, three counts of making false statements to a federal agent and one count of witness tampering.

Stuart said the maximum sentence for all charges total 395 years in prison, a fine of $5.5 million and a term of supervised release of up to 3 years.

“For the past several weeks, public officials across West Virginia have been quick to condemn Justice Loughry, perhaps with the hope that the crisis in public confidence with the Supreme Court could be expediently resolved by lodging all culpability on just one person – Justice Loughry,” Sturart said in a news release.

“That may or may not, however, be the case.  Our work continues on many fronts, including additional areas of corruption.  I urge public officials and the public to respect this process and allow the process to play out,” Stuart added.

The state supreme court suspended Loughry without pay earlier this month following an investigation that found he abused the prestige of his office. He is also accused of lying to the media, lawmakers and the public about his knowledge of high-cost renovations to the Supreme Court offices and improper use of state resources, including furniture and vehicles.

Following his suspension, legislative leaders of both parties and Gov. Jim Justice called for Loughry’s resignation.

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