Coal baron will swap mountaintop castle for prison bunk

  • Bloomberg
  • Wednesday, April 6, 2016 1:15pm
  • Business

Six years after 29 miners were killed in a West Virginia coal dust explosion, the man who ran the mining company like a fiefdom — a coal baron and power broker who earned millions of dollars a year — learned Wednesday he’s prison-bound.

Donald Blankenship, who presided over his coalfields from a mountaintop castle, was sentenced Wednesday to a year in prison and a $250,000 fine, the maximum punishment after his misdemeanor conviction for conspiring to flout mine-safety rules. In December he became the first chief executive officer in U.S. history found guilty of a workplace-safety crime, prosecutors said.

Blankenship, 66, stood stone-faced Wednesday as U.S. District Judge Irene Berger handed down the sentence and then denied his request to remain free on bond while he appeals. The former Massey Energy CEO, who didn’t testify at trial, denied Wednesday that he masterminded a scheme to evade mining regulations and speed-up coal production.

“It’s important for everyone to know that I am not guilty of any crime,” Blankenship told Berger. “There’s no direct evidence that I committed any crime.”

While Blankenship apologized in court to the families of the miners killed in the 2010 Upper Big Branch explosion, relatives heckled him as the former coal baron was interviewed outside the federal courthouse in Charleston, West Virginia.

“How come you never come to apologize to me personally? You don’t have a heart!” Tommy Davis, a former Massey miner whose brother Charles was killed in the explosion, shouted at Blankenship. “For six years, he never apologized,” Davis told reporters later through tears. “He’s got family to hug him. I’ve got tombstones.”

Blankenship’s lawyers argued that the former top executive, cleared of securities fraud and making false statements, didn’t deserve to be locked up. “Probation will provide ample warning and deterrence” to other mine operators, the lawyers said in court papers.

William Taylor, Blankenship’s lead lawyer, argued Wednesday that federal prosecutors in West Virginia charged the coal baron for political purposes. He noted Booth Goodwin, who stepped down as U.S. Attorney in Charleston in December to run for governor, had made Blankenship’s conviction the centerpiece of his campaign.

Blankenship’s conviction is being trumpeted “as the reason to vote” for Goodwin even though the defense expects an appeals court to conclude “the government did not prove” the former CEO committed any crime, Taylor told the judge.

A blunt taskmaster who bullied underlings and controlled virtually all of Massey’s operations, Blankenship turned the mining company into the U.S.’s fourth-largest coal producer. West Virginia officials said Massey grew into a “towering presence in the Appalachian coalfields,” with workers’ homes flying the company’s flag, a picture of a flame leaping out of an M.

Blankenship, a Republican, spent heavily to back politicians and judges friendly to the coal industry, according to state reports. He spent $3 million in 2004 to support a candidate for the West Virginia Supreme Court of Appeals. The winning judge later helped overturn a $50 million jury award against some of Massey’s units. In 2009, the U.S. Supreme Court ruled that the judge shouldn’t have participated in the case.

Investigators began probing the fatal blast at the Upper Big Branch facility, located about 30 miles (50 kilometers) south of Charleston, the state capital, immediately after rescue crews removed workers’ remains.

A state panel concluded that Massey managers forced miners to ignore basic safety measures, such as controlling coal dust and ensuring the mine had proper ventilation, as part of a push to increase production. The company operated the site in a “profoundly reckless manner,” the panel said.

Blankenship disputed the state findings, contending the explosion was caused by a stray spark from a mining machine and federal regulators had refused to allow Massey to use the company’s preferred ventilation plan.

The disaster should’ve sparked reforms on mine safety, said Phil Smith, spokesman for the United Mine Workers of America in Triangle, Virginia. But if changes didn’t come within weeks or months of the deaths of the miners, Smith said he doesn’t expect them to come now.

“Don Blankenship deserves to go to jail, for that is surely where he belongs,” Smith said. “Although this sentence will not begin to make him atone for his crimes, there is a higher court he will answer to someday, and I have complete faith that the justice he receives there will be more than adequate.”

Prosecutors argued at trial that Blankenship pushed managers to emphasize coal production over safety concerns so he could fatten his annual compensation packages. Annual coal tonnage figured into the CEO’s bonus pool, according to court filings.

At trial, prosecutors presented evidence showing that in 2009 alone Blankenship made more than $18 million. He stepped down as Massey’s top executive in 2010 with a $12 million retirement package. Five months later Alpha Resources Inc. acquired the company for $7.1 billion.

“Mr. Blankenship gambled with the lives of miners all for the sake of money,” Assistant U.S. Attorney Steve Ruby told Berger Wednesday. Ruby has been nominated to replace Goodwin as U.S. Attorney in Charleston.

Officials of Alpha, which filed for bankruptcy protection in August, asked for $28 million in restitution from Blankenship to cover legal expenses and fines tied to the Upper Big Branch disaster. The judge denied the request earlier this week along with restitution requests from miners’ families.

Even though Blankenship didn’t take the witness stand during his trial, his own words came back to haunt him as jurors reviewed internal memos and listened again and again over seven weeks to recordings he secretly made of telephone conversations.

Blankenship said Massey managers should keep quiet about safety issues and focus on what “pays the bills,” according to one memo. Their job, he said, was simply to “run coal.”

It’s likely the Bureau of Prisons will assign him to a minimum-security facility because of his short stay, said Larry Levine, who served 10 years in federal prisons and now advises on how to survive time behind bars.

Each day will start at 6 a.m. as a loudspeaker blares, “The Compound is Now Open!” Levine said. Blankenship will probably be assigned a demeaning job and may not get to pick whether he sleeps on a bottom or top bunk bed, the consultant said. Meals will feature beans, rice and tortillas.

“It’s going to be a rude awakening for somebody who made $18 million in salary and bonuses one year to go to making 12 cents an hour scrubbing showers and toilets,” Levine said.

Former coal baron Donald Blankenship was sentenced to a year in prison for evading mine-safety rules in one of the final chapters of a fatal mine explosion that was the worst U.S. coal industry accident in almost 40 years.

U.S. District Judge Irene Berger in Charleston, West Virginia, also fined the ex-Massey Energy chief executive officer $250,000 and denied his request to remain free during appeal. Berger ordered Blankenship to report to prison as soon as the Federal Bureau of Prisons orders him to.

Families of some of the 29 miners killed in the 2010 Upper Big Branch mine blast watched from the courtroom gallery on Wednesday as prosecutors urged the judge to send a message to the coal industry by jailing Blankenship.

Blankenship “clearly occupied a position of private trust and abused that trust,” Berger said.

Jurors concluded in December that Blankenship set up a scheme to circumvent safety standards and tip off workers to surprise inspections to speed up coal production at the Massey mine. The panel cleared the former CEO of felony charges involving securities fraud and making false statements, which would have carried longer prison terms.

Blankenship’s lawyers said in court filings that prosecutors unfairly sought to portray the former West Virginia power broker as a monster who callously sent miners to their deaths to add to his personal fortune. They said he deserved no more than probation and a fine.

Blankenship’s conviction capped a five-year effort by prosecutors to hold the former CEO and his underlings accountable for safety violations that led to the explosion at the mine, about 30 miles south of Charleston.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Allan and Frances Peterson, a woodworker and artist respectively, stand in the door of the old horse stable they turned into Milkwood on Sunday, March 31, 2024, in Index, Washington. (Ryan Berry / The Herald)
Old horse stall in Index is mini art gallery in the boonies

Frances and Allan Peterson showcase their art. And where else you can buy a souvenir Index pillow or dish towel?

Everett
Red Robin to pay $600K for harassment at Everett location

A consent decree approved Friday settles sexual harassment and retaliation claims by four victims against the restaurant chain.

magniX employees and staff have moved into the company's new 40,000 square foot office on Seaway Boulevard on Monday, Jan. 18, 2020 in Everett, Washington. magniX consolidated all of its Australia and Redmond operations under one roof to be home to the global headquarters, engineering, manufacturing and testing of its electric propulsion systems.  (Andy Bronson / The Herald)
Harbour Air plans to buy 50 electric motors from Everett company magniX

One of the largest seaplane airlines in the world plans to retrofit its fleet with the Everett-built electric propulsion system.

Simreet Dhaliwal speaks after winning during the 2024 Snohomish County Emerging Leaders Awards Presentation on Wednesday, April 17, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Simreet Dhaliwal wins The Herald’s 2024 Emerging Leaders Award

Dhaliwal, an economic development and tourism specialist, was one of 12 finalists for the award celebrating young leaders in Snohomish County.

Lynnwood
New Jersey company acquires Lynnwood Land Rover dealership

Land Rover Seattle, now Land Rover Lynnwood, has been purchased by Holman, a 100-year-old company.

Szabella Psaztor is an Emerging Leader. (Olivia Vanni / The Herald)
Szabella Pasztor: Change begins at a grassroots level

As development director at Farmer Frog, Pasztor supports social justice, equity and community empowerment.

Simreet Dhaliwal is an Emerging Leader. (Olivia Vanni / The Herald)
Simreet Dhaliwal: A deep-seated commitment to justice

The Snohomish County tourism and economic specialist is determined to steer change and make a meaningful impact.

Nathanael Engen, founder of Black Forest Mushrooms, an Everett gourmet mushroom growing operation is an Emerging Leader. (Olivia Vanni / The Herald)
Nathanael Engen: Growing and sharing gourmet mushrooms

More than just providing nutritious food, the owner of Black Forest Mushrooms aims to uplift and educate the community.

Owner and founder of Moe's Coffee in Arlington Kaitlyn Davis poses for a photo at the Everett Herald on March 22, 2024 in Everett, Washington. (Annie Barker / The Herald)
Kaitlyn Davis: Bringing economic vitality to Arlington

More than just coffee, Davis has created community gathering spaces where all can feel welcome.

Emerging Leader John Michael Graves. (Ryan Berry / The Herald)
John Michael Graves: Champion for diversity and inclusion

Graves leads training sessions on Israel, Jewish history and the Holocaust and identifying antisemitic hate crimes.

Gracelynn Shibayama, the events coordinator at the Edmonds Center for the Arts, is an Emerging Leader. (Olivia Vanni / The Herald)
Gracelynn Shibayama: Connecting people through the arts and culture

The Edmonds Center for the Arts coordinator strives to create a more connected and empathetic community.

Eric Jimenez, a supervisor at Cocoon House, is an Emerging Leader. (Olivia Vanni / The Herald)
Eric Jimenez: Team player and advocate for youth

As an advocate for the Latino community, sharing and preserving its traditions is central to Jimenez’ identity.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.