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Former Massey Energy CEO Indicted

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Jackie TortoraFor those of you who have been following the Massey Energy story, the Mine Workers (UMWA) passed along this news yesterday:

United States Attorney Booth Goodwin announced that a federal grand jury today returned an indictment charging Donald L. Blankenship, former Chief Executive Officer of Massey Energy Company, with four criminal offenses. The indictment charges Blankenship with conspiracy to violate mandatory federal mine safety and health standards, conspiracy to impede federal mine safety officials, making false statements to the United States Securities and Exchange Commission (SEC) and securities fraud. The indictment alleges that from about Jan. 1, 2008, through about April 9, 2010, Blankenship conspired to commit and cause routine, willful violations of mandatory federal mine safety and health standards at Massey Energy’s Upper Big Branch mine, located in Raleigh County, West Virginia. The indictment alleges that during this same period of time, Blankenship was part of a conspiracy to impede and hinder federal mine safety officials from carrying out their duties at Upper Big Branch by providing advance warning of federal mine safety inspection activities, so their underground operations could conceal and cover up safety violations that they routinely committed.

The indictment further alleges that after a major, fatal explosion occurred at Upper Big Branch on April 5, 2010, Blankenship made and caused to be made false statements and representations to the SEC concerning Massey Energy’s safety practices prior to the explosion. Additionally, the indictment alleges that, after this explosion, Blankenship made and caused to be made materially false statements and representations, as well as materially misleading omissions, in connection with the purchase and sale of Massey Energy stock.

The FBI and the United States Department of Labor’s Office of Inspector General are in charge of the investigation. United States Attorney Booth Goodwin, Counsel to the United States Attorney Steven Ruby and Assistant United States Attorney Gabriele Wohl are handling the prosecution. The four counts charged carry a maximum combined penalty of 31 years’ imprisonment.

Click here to view a copy of the indictment. An indictment is only an allegation, and the defendant is presumed innocent unless and until proven guilty.

The Massey Energy Upper Big Branch (W. Va.) deadly blast killed 29 in 2010. Families of the victims reacted to the indictment yesterday.

This article originally appeared in AFL-CIO.org on November 14, 2014. Reprinted with permission. http://www.aflcio.org/Blog/Corporate-Greed/Former-Massey-Energy-CEO-Indicted

About the Author: Jackie Tortora is the blog editor and social media manager at the AFL-CIO.

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Feds Crack Down on America’s Worst Bosses-But Fines Still Trivial

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Time and time again, inspectors found that miners at the Big Branch coal mine in West Virginia were trudging through inches-deep drifts of combustible coal dust. The mining company, Massey Energy, paid the fine, stalled through endless procedural challenges or just ignored the citation all together. The bottom line was that the dust kept piling up…until disaster struck.

In late April, the federal Occupational Safety and Health Administration unveiled a new program to get tough on the worst offenders, the Severe Violator Enforcement Program (SVEP). Beginning in June, the SVEP will step up enforcement against employers that have shown “indifference” to the safety of their workers through “willful, repeated, or failure-to-abate violations.”

Combustible dust violations will be a high enforcement priority for SVEP, as will amputation hazards, unsafe excavation practices, and silica dust exposure.

Fines for safety violations have been increased only once in the last 40 years. Needless to say, they haven’t kept pace with inflation.

OSHA, which is part of the Department of Labor, plans to increase the costs of non-compliance. Right now, the stiffest possible penalty for a serious violation, i.e., an infraction that could kill or seriously injure someone, is just $7,000. The current maximum penalty for a willfull violation is $70,000. Under the SVEP, the average penalty for a severe infraction will rise from about $1,000 to $3,000-$4,000.

Still a pretty trivial penalty for risking someone’s life or limb, but it’s a step in the right direction.

This post originally appeared in Working In These Times on May 3, 2010. Reprinted with permission.

About the Author: Lindsay Beyerstein, a former InTheseTimes.com political reporter, is a freelance investigative journalist in New York City. Her work has appeared in Salon.com, Slate.com, AlterNet.org, The New York Press, The Washington Independent, RH Reality Check and other news outlets. Beyerstein writes a daily foreign affairs bulletin for the UN Foundation’s UN Dispatch website and covers healthcare for the Media Consortium. She is the winner of a 2009 Project Censored Award. She blogs at Majikthise.

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