Freedom Industries Execs Indicted Over Elk River Spills
By Sara Jerome,
@sarmje
Freedom Industries, the company behind the chemical spill that contaminated drinking water for 300,000 West Virginians this year, found itself in the spotlight again this month—and once again, it's not from a flattering angle.
In December, "the FBI added a criminal case against the former president of Freedom Industries, Inc.," CNN reported.
"Gary Southern, an executive of Charleston, West Virginia-based Freedom since 2009, was arrested and accused of lying during bankruptcy proceedings in hopes of protecting about $8 million in personal assets," Bloomberg reported.
According to an FBI complaint, the allegations against Southern range from fraud to lying under oath. He "was charged with bankruptcy fraud, wire fraud, and lying under oath during the company’s bankruptcy proceedings following the massive spill," Think Progress reported.
FBI Special Agent James Lafferty "said in a sworn affidavit that Southern, in an attempt to protect his personal fortune of nearly $8 million and shield himself from lawsuits, developed a scheme to distance himself from the company and 'deflect blame' to other parties," the report said.
After the leak was found, Southern "engaged in a pattern of deceitful behavior, which included numerous false and/or fraudulent statements" about his role, Lafferty said, per Bloomberg.
Southern is not the only one in trouble for what happened to the Elk River.
Also in December, the U.S. Attorney General’s office filed "an indictment against four executives of the company that contaminated drinking water for 300,000 West Virginians this past January, alleging violations of the Clean Water Act," including Southern, Think Progress reported.
Along with Southern, ex-president Dennis Farrell, former secretary William Tis, and former vice president Charles Herzing are also named in the indictment.
"Freedom Industries’ executives are accused of 'fail[ing] to exercise reasonable care in its duty to operate the [chemical storage facility] in a safe and environmentally-sound manner,' and that their failure to exercise care was the primary reason for the historic spill," the report said.
During a major spill in January, a Freedom Industries’ chemical facility leaked coal-processing chemical 4-methylcyclohexane methanol into the Elk River.