MOOREFIELD, W.Va. — Three individuals who formerly owned and operated of one of the state’s largest hardwood businesses have been cleared of all criminal charges.
Attorneys for John Crites Sr., John Crites II, and Kelly Crites, former officers of Allegheny Wood Products announced Thursday, a special federal prosecutor dismissed all charges in a case which stemmed from the company being placed in receivership and assets sold. A special prosecutor appointed to oversee the case filed a motion to dismiss the prosecution, citing the State’s lack of any evidence of wrongdoing. Chief United States District Judge Thomas S. Kleeh of the Northern District of West Virginia granted the motion.
“The Crites family were never guilty of any criminal action. You had certain creditors who attempted to jump line and use the criminal justice system to get preferential standing on payments,” said Attorney Isaac Sponaugle who represented John Crites II in the case. “They were owed money, we’re not trying to dispute that, but they were trying to use the criminal justice system to abuse the bankruptcy or general receivership action.”
On March 6, 2024, a U.S. District Judge in Northern West Virginia placed AWP under receivership. At its peak, AWP had 13 facilities in the Appalachian Hardwood Region. It employed over 800 people.
Sponaugle said soon after that, law enforcement in Hardy County took the extraordinary step of threatening the Crites family with criminal prosecution if the receivership claims of certain AWP vendors, including a Hardy County Commissioner, were not paid in full.
On March 25, 2024, the Sheriff of Hardy County filed two criminal complaints against John Crites On October 8, 2024, the Hardy County Prosecutor’s Office brought the same dismissed cases to a grand jury, this time adding charges against John Crites II’s sister, Kelly Crites, and his father, John Crites Sr, for the same offenses. The Crites family moved the case from the Circuit Court of Hardy County to federal court. Once in federal court, the Hardy County prosecutor admitted the Crites family had acted solely under the direction of the federally appointed receiver and effectively conceding that the prosecution’s case was groundless.
On February 25, 2025, the federal court appointed a special prosecutor to oversee the case, who later sought to drop all charges against the Crites family. The Special Prosecutor could not find any criminal wrongdoing by the Crites family. The federal court approved the motion. It dismissed all charges with prejudice against the Crites family. The charges were for obtaining goods by false pretenses. A preliminary hearing took place on April 16, 2024. The Magistrate Court of Hardy County dismissed the complaints. The State failed to show probable cause for any criminal offenses.
“This case shocks the conscience; it is an egregious example of what happens when prosecutors abuse their power,” said Steve Ruby, attorney for Kelly Crites in a press release. “The Crites family are honorable, law-abiding people who have contributed enormously to the state of West Virginia for more than 50 years. Their name was smeared by lawless prosecutors who brought fabricated charges and ultimately were forced to admit their case lacked any basis. Justice has prevailed.”
“Mr. Crites and I are glad that someone finally had the sense to put an end to this case that should have never been started,” said Mike Hissam, attorney for John Crites Sr.
“Mr. Crites is an honest man who never committed a crime in his life. This entire prosecution was a travesty from the beginning,” he said.
It’s unclear if any counter lawsuits are forthcoming. Sponaugle confirmed there were discussions about potential defamation and possibly wrongful use of the criminal justice system, but no decisions have been made.
“This has been devastating to them. Obviously, various factors attributed to the decline of Allegheny Wood Products, but they have a half-century reputation of paying bills on time and being an outstanding business and community leader. To tag this on and try to smear them and say they are criminals because of all this bad luck is really outrageous,” said Sponaugle.