Coal Crook Peters Gets a Year for Loan Lie

CHARLESTON, W.Va. – Michael James Peters, 42, of Concord, North Carolina, is headed to federal prison after being sentenced today for deliberately misleading federal investigators about a multi-million dollar coal deal gone sour. Peters received one year in prison, followed by three years of supervised release, after pleading guilty to making a false statement to the United States Department of Agriculture.

The scheme centered around Taylor Rose Energy (TRE), a company owned and operated by Peters. In July 2014, TRE secured a hefty $9,065,165 loan from a Georgia bank, backed 90 percent by the USDA, intending to purchase approximately 146,954 tons of cannel coal located in Dixie, Nicholas County, West Virginia. The stated plan? To convert the coal into “smokeless” briquettes for the Irish home heating market. A classic smokescreen, it turns out.

But Peters was already in a bind. By January 2015, he owed over $1.3 million to Aces High Coal Sales Inc. of London, Kentucky. Instead of addressing the debt honestly, Peters quietly allowed Aces High to haul off over 80,000 tons of the very coal pledged as collateral for the USDA-backed loan. He never bothered to inform the Georgia bank about this quiet transfer of assets, effectively robbing them – and ultimately, taxpayers – of their security.

When the loan inevitably went south, Peters spun a web of lies. He told the Georgia bank that 90 percent of the coal was simply “missing.” During a site visit in May 2015, with representatives from both the bank and the USDA present, Peters compounded the deception. He falsely claimed Aces High had removed the coal without his consent, attempting to shift blame and conceal his own culpability. The truth, laid bare at his plea hearing, revealed a calculated effort to mislead investigators.

United States Attorney Will Thompson didn’t mince words. The sentence, handed down by United States District Judge Irene C. Berger, reflects the seriousness of the offense. Peters was also ordered to pay $1,375,000 in restitution to those defrauded by his actions and a $25,000 fine. Assistant United States Attorney Andrew J. Tessman prosecuted the case, building a solid case based on documented evidence and Peters’ own admission of guilt.

The U.S. Department of Agriculture-Office of Inspector General (USDA OIG) conducted the investigation, highlighting the agency’s commitment to rooting out fraud and abuse within its programs. Court documents related to Case No. 2:22-cr-159 are available on PACER, and a copy of the press release can be found on the U.S. Attorney’s Office for the Southern District of West Virginia website. Peters’ attempt to play fast and loose with a $9 million loan has cost him dearly – and serves as a warning to others who think they can pull a fast one on the federal government.

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