BECKLEY, W.Va. — Two people tied to New West Virginia Mining Company will be sentenced later this year for federal income tax fraud.
Booth Goodwin, the U.S. Attorney for West Virginia’s Southern District, said James Trent, 55, of Rock View, and his girlfriend, Brandy Horvath, 39, of Mercer County, worked together to avoid reporting hundreds of thousands of dollars in income to the Internal Revenue Service over years.
Horvath plead guilty to the charges against her earlier this week. Trent entered his guilty plea last month.
Federal prosecutors said Trent appointed Horvath to serve as President of New West Virginia Mining in 2007 to conceal his interest in the company which mined coal for Riverside Energy near Gary in McDowell County.
During a three year period, IRS investigators said Horvath would withdrawal money from the company’s bank accounts for their personal use, but claimed those withdrawals were for business expenses.
Between 2007 and 2010, the investigation also showed Horvath had help from others in structuring regular cash withdrawals from the company’s bank accounts.
Horvath faces up to three years in prison and a $250,000 fine when she is sentenced in November. Trent will be sentenced in October.
Two accomplices have already plead guilty to their own charges and were sentenced to prison.