The convicted ex-CEO of Massey, Don Blankenship, won't have to worry about paying $28 million in restitution to a coal producer after a federal judge ruled on Monday. Blankenship was charged over the mine explosion that killed 29 people.
Judge Irene Berger said ex-Massey Energy chief Blankenship is not obliged to pay Alpha Natural Resources, which acquired Massey after the blast in 2011, ABC News Go reports. The judge's decision was favorable for the ex-CEO of the Virginia-based coal company because it avoids an extensive blow to his personal fortune. Blankenship earlier refuted to disclose his personal assets to the prosecutors. The coal company filed bankruptcy in August.
"We are pleased by the ruling. It is obviously correct," said William Taylor, Blankenship's lead defense attorney. "It is hard to see how Alpha could acquire Massey at a discounted price knowing of its problems and claim to be a victim in this case."
Blankenship was charged of a misdemeanor conspiracy after admitting guilty to violating safety standards at its upper Big Branch Mine located in southern West Virginia, according to Denver Post. The ex-CEO of the coal company faces a maximum one year sentencing and has to pay $250,000 penalties. He is due to be detained on Wednesday. He was cleared of felony charges that could have sent him to a jail term of 30 years.
As per Berger's order, the coal company incurred $10 million in mine safety violation fines. It also allotted $4.3 million in representing seven former Massey officers and workers who joined the investigation in the mine explosion, CNBC reports. The order also claimed that Alpha spent $13.5 million to collaborate with the investigation of the Upper Big Branch's explosion.
The lawyers of the ex-CEO of the coal company also filed a motion to discharge 94 other from former Massey coal miners and family members' claims for restitution. Alpha and the U.S. attorney's office in the South Virginia haven't commented on Berger's ruling.
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