Coal Crook Peters Gets a Year in Federal Prison

CHARLESTON, W.Va. – Michael James Peters, 42, of Concord, North Carolina, is heading to federal prison after being sentenced to one year for deliberately misleading the United States Department of Agriculture. The scheme revolved around a $9 million USDA-backed business loan secured with coal from Nicholas County, West Virginia, which Peters then quietly siphoned off to cover personal debts.

Peters, the part owner, president, and operator of Taylor Rose Energy (TRE), secured the $9,065,165 loan in July 2014 from a Georgia bank with the promise of converting 146,954 tons of cannel coal from Dixie, Nicholas County, into “smokeless” briquettes for the Irish market. The USDA Rural Development Business and Industry loan program guaranteed a hefty 90 percent of the loan – a guarantee Peters exploited. Court documents reveal a calculated deception from the start.

By January 2015, Peters was already drowning in debt, owing over $1.3 million to Aces High Coal Sales Inc. of London, Kentucky. Instead of addressing the looming financial crisis honestly, Peters authorized Aces High to remove more than 80,000 tons of the very coal pledged as collateral to satisfy his debt. He then failed to disclose this critical information to the Georgia bank, effectively stealing from the loan guarantee.

When the inevitable default loomed, Peters concocted a lie. He told the Georgia bank that 90 percent of the coal was simply “missing.” A subsequent site visit by bank and USDA representatives in May 2015 revealed the truth, but Peters doubled down on the deceit. He falsely claimed Aces High had removed the coal without his consent, desperately trying to shift blame and conceal his own fraudulent actions. He admitted to this lie at his plea hearing.

United States Attorney Will Thompson announced the sentencing, praising the meticulous work of the U.S. Department of Agriculture-Office of Inspector General (USDA OIG). United States District Judge Irene C. Berger handed down the one-year prison sentence, followed by three years of supervised release. Peters was also ordered to pay $1,375,000 in restitution and a $25,000 fine – a small price for a man who tried to play the system and defraud both the government and the bank.

Assistant United States Attorney Andrew J. Tessman prosecuted the case. Court documents related to Case No. 2:22-cr-159 are available on PACER. This case serves as a stark reminder that financial crimes, even those cloaked in the guise of legitimate business, will be pursued and prosecuted to the fullest extent of the law. The U.S. Attorney’s Office for the Southern District of West Virginia has a press release available on their website.