Coal company charged with defrauding Eastman

POSTED: 5:43 PM Nov 19 2012

A federal indictment released Monday charged a southwest Virginia coal company with trying to defraud Eastman Chemical Company.

According to the indictment, Dale Edward Stanley, the owner of Mountain Energy Resources in Norton, Virginia, contracted with Eastman to provide a high-quality steam coal.

It is alleged that Stanley provided Eastman with lower-quality coal by concealing it under higher-quality coal in rail cars sent to Eastman.

If convicted, 53-year-old Stanley faces a term of 20 years in prison on each count, plus a $250,000 fine.