Michael James Peters, False Statements, West Virginia 2023

A North Carolina business owner has pleaded guilty to lying to the United States Department of Agriculture regarding the Nicholas County coal he pledged as collateral for a $9 million USDA-backed business loan.

Michael James Peters, 42, of Concord, North Carolina, was part owner, president, and operator of Taylor Rose Energy (TRE). On July 24, 2014, TRE obtained a $9,065,165 loan from a Georgia bank to buy out investors’ interest in approximately 146,954 tons of cannel coal in Dixie, Nicholas County.

The USDA Rural Development Business and Industry loan program guaranteed 90 percent of the loan. Peters was unable to repay the USDA-backed loan and did not inform the Georgia bank that coal pledged as the loan’s collateral was being taken to address a debt to Aces High Coal Sales Inc. of London, Kentucky.

Peters told the Georgia bank that 90 percent of the coal was ‘missing’ from the Dixie site. On May 8, 2015, representatives from the bank and the USDA visited the Dixie site to investigate the removal of the collateralized coal. Peters falsely told USDA and bank representatives that Aces High had removed the coal from the site without his permission.

Peters pleaded guilty to making a false statement to a representative of the United States Department of Agriculture. Peters is scheduled to be sentenced on January 19, 2023, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.

Peters also agreed to pay $1,375,000 in restitution. The case was investigated by the U.S. Department of Agriculture-Office of Inspector General (USDA OIG). Assistant United States Attorney Andrew J. Tessman is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-159.