CHARLESTON, W.Va. — A North Carolina man has admitted to lying to U.S. Department of Agriculture officials about Nicholas County coal he offered as collateral for a loan.
Michael James Peters, 42, of Concord, North Carolina, was an owner of Taylor Rose Energy; he served as the company’s president and operator. The company had obtained a $9 million loan from Georgia bank to buy out investors’ interest in around 147,000 tons of cannel coal. The firm stated it planned to convert the coal into “smokeless” coal briquettes for consumer coal-burning home heating systems.
The federal agency’s Rural Development Business and Industry loan program guaranteed 90% of the loan.
Peters allowed Aces High Coal Sales Inc., of London, Kentucky, to remove more than 80,000 tons of coal from the Dixie site to settle a $1.3 million debt. Peters could not repay the USDA-backed loan and failed to inform the Georgia bank of the transaction. He told the bank that 90% of the coal was missing.
Bank representatives and USDA officials investigated the matter. Peters also told parties that Aces High Coal Sales Inc. removed the coal without his permission. Peters later stated he lied to representatives to redirect the investigation away from his actions.
Peters pleaded guilty to making a false statement to a representative of the United States Department of Agriculture. He faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine. He has agreed to pay restitution of more than $1.3 million.
Peters’ sentencing date is scheduled for Jan. 19, 2023.