Bluefield Daily Telegraph, Bluefield, WV

October 16, 2012

5 named in coal check allegation

By KATE COIL
Bluefield Daily Telegraph

ABINGDON, Va. — Five West Virginia coal operators and employees were indicted in Virginia Monday on federal charges related to a $10 million check-cashing scheme under investigation by the Internal Revenue Service and the U.S. Attorney’s Office.

William “Bill” F. Adams Jr., 53, of Yukon; David Cline, 53, of Panther; Joshua David Cline, 27, of Mohawk; Michael W. Dunlap, 62, of Sumerco; and John B. Ward, 40, of War were each indicted on charges including conspiracy to violate federal law.

According to the U.S Attorney’s Office in Abingdon, the charges stem from a “check-cashing scheme” designed to hide the withdrawal of money from coal and coal-related companies by coal operators.

 J.D. “Dot” McReynolds, 75, of Tazewell, Va., is the owner of mining supply companies and a trucking company with operations in both states. McReynolds has already pleaded guilty to felony charges.

United States Attorney Timothy J. Heaphy said McReynolds provided cash and fraudulent invoices to coal operators — including the five men indicted Monday — who in turn paid McReynolds a 10 percent fee in checks written to him personally or to one of McReynolds’ businesses.

To obtain cash for the scheme, Heaphy said McReynolds and the other parties structured more than $10 million in cash out of financial institutions in Virginia and West Virginia. The subjects were able to evade currency transaction reporting requirements by making multiple withdrawals of $10,000 or less.

Adams has been charged with 15 counts of causing the structuring of currency transactions to avoid reporting requirements. David Cline is charged with 22 counts of causing the structuring of currency transactions to avoid reporting requirements, and his son Joshua Cline is charged with 22 counts of causing the structuring of currency transactions to avoid reporting requirements and one count of making false statements under oath.

Dunlap is charged with 57 counts of wire fraud and 24 counts of causing the transportation of $5,000 or more in proceeds of fraudulent activity. Ward is charged with 31 counts of causing the structuring of currency transactions to avoid reporting requirements.

Assistant United States Attorney Randy Ramseyer is prosecuting the case on behalf of the United States. The case is being investigated by the Bristol, Va., Office of the Internal Revenue Service Criminal Investigation. The United States Attorney’s Office in Charleston and the Internal Revenue Service Criminal Investigation are assisting in the prosecutions.

Carl Blevins, 59, of Tazewell, Va., previously pleaded guilty to felony tax evasion in the scheme and was sentenced to five years in prison and a $250,000 fine.

In addition to McReynolds, 15 other Virginia and West Virginia residents have pleaded guilty in the check-cashing scheme. The following subjects are awaiting sentencing:

• Sandra M. Addair, 43, of War is facing five years and a $250,000 fine.

• Henry L. Barnett, 62, of Tazewell, Va., is facing five years and a $250,000 fine.

• David L. Cordill, 56, of Doran, Va., is facing five years and a $250,000 fine.

• Billy Ray Dotson, 58, of Meadowview, Va., is facing five years and a $250,000 fine.

• Darrell Felts, 53, of Ballard is facing five years and a $250,000 fine.

• Jeffrey K. Justus, 60, of Pounding Mill, Va., is facing five years and a $250,000 fine.

• Charles E. “C.E.” McReynolds, 42, of Vallscreek is facing five years and a $250,000 fine.

• Truong V. Nguyen, 55, of Tazewell, Va., is facing five years and a $250,000 fine.

• Hung Q. Nguyen, 55, of Iaeger is facing five years and a $250,000 fine.

• Melvin Parsley, 46, of Williamson, is facing five years and a $250,000 fine.

• Angela D. Payne, 40, of War is facing five years and a $250,000 fine.

• Mike Poskas, 61, of North Tazewell, Va., is facing five years and a $250,000 fine.

• David M. Raber, 52, of Tazewell, Va., is facing five years and a $250,000 fine.

• Clinton Ramey, 55, of Abingdon, Va., is facing five years and a $250,000 fine.

• Allen H. Workman, 55, of Williamson is facing five years and a $250,000 fine.

— Contact Kate Coil at kcoil@bdtonline.com