Freedom Industries CEO Faces Bankruptcy Fraud, Wire Fraud, Perjury Charges (Elk River MCHM Spill)

CHARLESTON, W.Va. - A West Virginia executive faces charges of lying to protect his personal wealth from lawsuits after his company spilled chemicals into 300,000 people's water supply in January, according to a criminal complaint Monday.

The complaint unsealed Monday in U.S. District Court in Charleston charges Freedom Industries President Gary Southern with bankruptcy fraud, wire fraud and lying under oath. If convicted of all the charges, he faces up to 30 years in prison. In a sworn affidavit, FBI Special Agent James F. Lafferty II testified that Southern downplayed his role with Freedom on the stand in U.S. Bankruptcy Court in Charleston multiple times. Lafferty says he made similar claims to federal workplace safety regulators.

The filing states Southern is trying to protect his net worth of at least $7.7 million from dozens of lawsuits already filed over the spill and any potential new ones creditors may introduce. Many businesses sued Freedom, Southern, the regional water company and other related parties because a tap-water ban shuttered their operations for days.

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n bankruptcy court, Southern described his role before the purchase as a "part-time, financial type consultant to help the owners of that business get their finances and systems kind of back on track." He said he was involved only "superficially" in Chemstream's purchase of Freedom. He also told a committee of creditors, under oath, that he was not part of the Freedom organization before the acquisition, the affidavit states.

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http://www.brandonsun.com/business/breaking-news/company-president-in-west-virginia-chemical-spill-faces-fraud-lying-under-oath-charges-285177121.html?thx=y