LOGAN, W.Va. — A Logan County man pleaded guilty in federal court Tuesday for his role in a kickback scheme while he was an employee of a subsidiary of Arch Coal, U.S. Attorney Carol Casto announced.
Chadwick Lusk, 35, of Davin, admitted to honest services mail fraud while employed as a purchasing agent at the Mountain Laurel Mining Complex. He said he defrauded the Mingo Logan Coal Company of its right to honest services by receiving illegal cash kickbacks in a crib block kickback scheme, Casto said in a news release.
Crib blocks are used to provide roof support in an underground mine.
Gary Roeher, owner of CM Supply, Co., said he paid Lusk a portion of the profits for the crib blocks that the Mingo Logan Coal Company purchased from CM Supply to use at Mountain Laurel. Roeher said he paid Lusk about $230,000 in cash kickbacks as part of the scheme.
As part of his plea agreement, Lusk has to pay $230,000 in restitution.
He faces up to 20 years in federal prison. Sentencing is set for Feb. 3.