The federal government has been conducting a fraud investigation into coal company Blackjewel LLC since before the company’s July bankruptcy.
The Casper Star-Tribune reports that court documents filed October 5 claim that Blackjewel owes the federal government about $50 million. After failing to obtain funding from a key creditor, the insolvent company shut down its mining operations in Kentucky and Wyoming..
The court filing explained the government has been investigating Blackjewel’s potential violations of the False Claims Act, which holds corporations liable for defrauding the government.
The government asked a West Virginia federal bankruptcy court to delay discharging Blackjewel of its debts, which would allow