BECKLEY, W.Va. — The former president of Freedom Industries was charged with two additional fraud counts in a 14-count superseding indictment in connection with last year’s chemical spill that created a water-contamination emergency.
The original indictment cited Gary Southern and three other Freedom officials for allegedly violating federal environmental laws in the operation of the tank farm. Those included violations of the federal Clean Water Act and the federal Refuse Act.
MORE: Read superseding indictment of Gary Southern
While one count in the original indictment was dropped, the new charges allege Southern had a $6.5 million personal check deposited on Feb. 7, 2014, as part of a scheme to defraud the government in Freedom’s bankruptcy case. The second charge alleges Southern approved a false statement that did not list him as an officer of Freedom Industries.
The superseding indictment means all the defendants—including Southern and former owners William Tis, Charles Herzing and Dennis Farrell—must be re-arraigned on the charges.
Southern is individually charged with scheming to defraud in a bankruptcy case, scheming to defraud by wire, fraud by interstate commercial carrier, making a false oath and account in a bankruptcy case. He and the other three former owners are accused of unlawful discharge of refuse, negligent discharge of a pollutant, and negligent violation of permit condition.
The spill of MCHM on Jan. 9, 2014, occurred at the company’s tank farm along the Elk River in Charleston. The water contamination led to a do-not-use order that affected more than 300,000 residents in parts of nine counties.
The superseding indictment was handed up Wednesday by a federal grand jury meeting in Beckley.