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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of West Virginia

Tuesday, June 30, 2015

Former Arch Coal employee sentenced for lying about his role in kickback scheme

Charleston, W.Va.  – United States Attorney Booth Goodwin announced that Gary Griffith, 63, of Oceana, West Virginia, was sentenced today in federal court in Charleston to six months in federal prison, three years of supervised release, and a $5,000 fine.  Griffith, who pled guilty last summer, admitted he made a materially false statement in a federal matter.  Griffith also admitted that he lied about receiving kickbacks as an employee of the Mountain Laurel Mining Complex, a coal mine in Logan County, West Virginia, associated with a wholly-owned subsidiary of Arch Coal.

Griffith, the former maintenance manager at Mountain Laurel, admitted he and mine general manager David E. Runyon received cash kickbacks in the amount of at least $250,000 from an individual associated with the North American Rebuild Company, Inc (NARCO) since approximately 2002.  NARCO provided shuttle cars to Arch Coal’s Ben Creek mine, and later at the Mountain Laurel Mining Complex.  Griffith admitted that an individual, on behalf of NARCO, paid kickbacks to Griffith and Runyon for each shuttle car ordered for the mines.  Griffith denied receiving kickbacks when questioned by federal agents.

Griffith was also ordered to pay $250,000 in restitution to Arch Coal, Inc.

Today’s charge stems from an investigation being conducted by the FBI, IRS Criminal Investigation, United States Postal Inspection Service, and the West Virginia State Police.  Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.

Updated June 30, 2015