W.Va. Governor Justice Takes New Trade Issues | News, Sports, Jobs
CHARLESTON – While avoiding giving specific details due to ongoing court cases, Gov. Jim Justice told reporters on Tuesday to wait and see the financial drama unfolding in his businesses.
“Regarding my personal affairs and everything, or the personal affairs of my family, sit down and wait for the final results.” Justice said Tuesday during its COVID-19 briefing now twice a week from the State Capitol Building.
West Virginia MetroNews reported on Monday that Virginia-based Carter Bank and Trust has filed a lawsuit with a local court asking for more than $ 58 million in delinquent loans to two justice-owned companies – the Greenbrier Sporting Club Inc. and the Oakhurst Club LLC. The Carter lawsuit comes more than a month after Justice, First Lady Cathy Justice and several companies in the Justice family filed a civil case in U.S. District Court for the Southern District of West Virginia against Carter executives Bank.
Justice is seeking damages of $ 421 million from the bank, which the governor said engaged in anti-competitive behavior, breach of contract and breach of its fiduciary obligations.
The Justice Firms have about $ 368 million in loans outstanding with Carter Bank, all guaranteed by Justice himself, his wife and son Jay, who runs Justice’s coal and farm businesses.
In court documents submitted last week, members of the Carter Bank board called the Justice trial a “Delayed tactics” to avoid paying their obligations. Two of the loans, including one for the Greenbrier Resort, are said to have matured on June 1. The federal court case was filed the day before.
“(Justice) filed this case purely as a delaying tactic against repaying the loans they owe to defendant Carter Bank,” wrote Booth Goodwin, a lawyer representing Carter Bank. Goodwin is the former U.S. District Attorney for the Southern District of West Virginia and challenged justice in the governor’s Democratic primary in 2016.
“Collectively, (justice) owes Carter Bank hundreds of millions of dollars,” Goodwin continued. “Although Carter Bank has worked several times and in cooperation with (Justice) over the years to restructure and / or extend various loans, in early 2021 Carter Bank informed (Justice) that it will not renew or extend two loans maturing on their own terms on June 1, 2021.
The West Virginia Record also reported Monday that Jill Justice, the governor’s daughter and responsible for operating the Greenbrier Resort, had more than $ 8 million in tax liens filed against her in March by the IRS covering tax periods in 2009, 2011, 2012, 2013 and 2017. The biggest amount – $ 6.5 million – was when Jill was still in medical school.
“We just like to point out the wrong” Justice said in response to questions about the two stories on Tuesday. “At the end of the day what we need to do is just step back and see where this thing finally ends and know that my efforts are wholeheartedly to lead this state as governor and do the right things… J I have children, I have lawyers, I have a group of people who take care of all of this.
According to its 2021 financial disclosure report with the West Virginia Ethics Commission, Justice owns 112 companies. Only seven of these companies were placed in blind trusts as of April 30, 2017, shortly after the court took office. Blind trusts are used by elected officials to entrust their affairs to third parties while avoiding possible conflicts of interest.
Justice has handed over control of his private businesses to Jay, who runs the coal and farming businesses, and his daughter Jill, who runs the Greenbrier Resort. But justice has long been accused of always being active in the day-to-day management of its businesses.
In June, the Wall Street Journal reported that Justice – along with Cathy Justice and Jay Justice – had guaranteed more than $ 700 million in loan guarantees taken out for Bluestone Resources Inc. in 2018 to Greensill Capital. Bluestone is the umbrella of Justice’s coal and agricultural interests.
Greensill, now defunct, had sold the Bluestone loans and other loans to Credit Suisse Group investment funds. Credit Suisse is working with the Justice-owned company on the refund, but Bluestone filed a lawsuit against Greensill in March. Justice said news about the Greensill case could come out today.
“Just sit back and watch and wait until… the end result”, says justice. “If the truth prevails you will see a very positive outcome for the Carter Bank saga and absolutely the Greensill situation… it will be a tremendous outcome. If bad things prevail, it could be very, very difficult for our family. “
(Adams can be contacted at [email protected])