New Century Coal Fraud Ends in Lengthy Prison Sentences for Ten Individuals

[nitpicker]

https://www.justice.gov/usao-edtn/pr/new-century-coal-fraud-ends-lengthy-prison-sentences-ten-individuals

Department of Justice
U.S. Attorney’s Office
Eastern District of Tennessee

FOR IMMEDIATE RELEASE
Monday, December 12, 2016

New Century Coal Fraud Ends in Lengthy Prison Sentences for Ten Individuals

Scheme was based in Johnson City, Tennessee

GREENEVILLE, Tenn. – U.S. District Judge J. Ronnie Greer has sentenced 10 men to a collective total of 284 months in federal prison for their roles in the operation of a fraudulent investor scheme which defrauded 168 investors of more than $14 million dollars. The judge also ordered terms of supervised release by the U.S. Probation office, special assessments and $14,092,205 in restitution to the victims of the scheme.

The 10 men and their prison sentences include: Brian C. Rose, 37, Piney Flats, Tenn., 108 months; Hugh Sackett, 86, Anderson, S.C., 12 months; Robert McGregor, 38, Bowling Green, Ky., 12 months; Johnny D. Phillips, 35, Bowling Green, Ky., 30 months; Dallas McRae, 46, Orlando, Fla., 24 months; Thomas Berry, 36, Bowling Green, Ky., 27 months; Jason Smith, 41, Franklin, Ky., 27 months; David Rose, 66, Louisville, Ky., 18 months; Jim Robinson, 57, New Albany, Ind., two months; and Brent Loveall, 33, Louisville, Ky., 24 months.

Brian Rose led New Century Coal, which advertised that it developed Blue Gem coal, a special type of coal used in the manufacture of computer electronics. New Century Coal staff sold shares in nine different limited partnerships and falsely represented the existence of coal reserves, profitability, and ownership of the coal mines. No coal was ever developed and 90 percent of the investor funds was diverted to support the extravagant lifestyles of the men referenced above, including thoroughbred horses, multiple homes, ARCA Truck Racing, and extensive travel.
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