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Kickback Scheme Leads to 20-Year Prison Sentence
A Logan County man’s corrupt dealings have landed him a 20-year prison sentence. Chadwick Lusk, 35, of Davin, pleaded guilty to honest services mail fraud in connection with a kickback scheme that cheated a subsidiary of Arch Coal out of thousands of dollars.
Lusk, who worked as a purchasing agent at the Mountain Laurel Mining Complex, admitted to accepting cash kickbacks from Gary L. Roeher, owner of CM Supply, Co. The scheme involved crib blocks, used to provide roof support in an underground mine, and ran from September 2009 to at least March 2014.
Roeher paid Lusk 7.5% of the crib block sales price, amounting to approximately $230,000 in cash kickbacks. Lusk agreed to pay $230,000 in restitution as part of his plea agreement. The scheme was uncovered through an investigation by the FBI, the Criminal Investigation division of the IRS, the United States Postal Inspection Service, and the West Virginia State Police.
Lusk faces up to 20 years in federal prison when he is sentenced on February 3, 2017. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
The investigation into Lusk’s corrupt dealings was a joint effort between law enforcement agencies. The FBI, IRS, and West Virginia State Police worked together to bring the scheme to light. This case serves as a reminder of the importance of transparency and accountability in business dealings.
The case against Lusk highlights the need for vigilance in preventing corruption and ensuring that companies are not cheated out of their rightful profits. The investigation and prosecution of Lusk’s scheme demonstrate the commitment of law enforcement agencies to upholding the law and protecting the public’s trust.
As Lusk awaits his sentencing, the community is left to wonder how such a scheme could have gone undetected for so long. The answer lies in the complexity of the operation and the brazen nature of Lusk’s actions. It is a stark reminder that corruption can occur anywhere and that it is up to law enforcement agencies and the public to stay vigilant in preventing it.
The West Virginia State Police and its partners will continue to work tirelessly to root out corruption and bring those responsible to justice. In the meantime, the community can take solace in knowing that justice is being served and that those responsible will face the consequences of their actions.
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Key Facts
- State: West Virginia
- Category: White Collar Crime|Fraud & Financial Crimes|Public Corruption
- Source: DOJ Press Release â†â€â€
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