Feds Investigating Blackjewel For Fraud; Orders Documents Preserved

The Feds are investigating bankrupt coal company Blackjewel for fraud. In an emergency order filed late yesterday in the United States Bankruptcy Court in West Virginia the Federal Government asked the court to order Blackjewel to preserve any and all records pertaining to it’s business activities.

Assistant US Attorney, Fred Westfall wrote, that the investigation into potential violations of the False Claims Act began even before the bankruptcy filing, July 1st. Since the beginning of bankruptcy proceedings, lawyers for Blackjewel and the United States have discussed not only the allegations of fraud, but also the federal governments investigation into those allegations.