Bankrupt Wyoming Coal Company Under Investigation

October 7, 2019 4:15 am

CASPER, Wyo. (AP) – A new court filing has revealed the federal government began a fraud investigation into coal company Blackjewel LLC prior to the company’s sale last week of two Wyoming  coal mines.  The Casper Star-Tribune reports the document filed Saturday indicates the investigation also preceded Blackjewel’s July bankruptcy filing.  Court documents say Blackjewel owes the federal government about $50 million.  The court filing says the government has been investigating Blackjewel’s potential violations of the False Claims Act, which holds corporations liable for defrauding the government.  The government has asked a West Virginia federal bankruptcy court to delay discharging Blackjewel of its debts, which would allow the investigation to continue.  A federal judge approved the sale of the Eagle Butte and Belle Ayr mines to Eagle Specialty Materials without Blackjewel’s debt obligations.