FBI: Chemical Company Ex-Prez Committed Fraud in WV Drinking Water Case

"Gary Southern, the former Freedom Industries president, faces federal charges for allegedly lying about his role at the bankrupt firm to protect his personal fortune from legal actions over the January chemical spill at Freedom’s Elk River facility.

Southern is charged with bankruptcy fraud, false oath in a bankruptcy case and wire fraud, according to a criminal complaint filed Monday in federal court. The complaint was unsealed Monday after it was determined that he had been arrested.

In a sworn affidavit, FBI Special Agent James F. Lafferty II said that Southern’s scheme began shortly after the spill was detected on Jan. 9. Southern allegedly wanted to deflect blame for the spill that contaminated the tap water for 300,000 people and protect himself from lawsuits.
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Erin Beck reports for the Charleston Gazette December 8, 2014.