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W.Va. man gets probation in coal kickback scheme

February 4, 2015

CHARLESTON, W.Va. (AP) — A Logan County man has been sentenced to five years’ probation for his role in a scheme involving the Arch Coal Mountain Laurel Mining Complex in Sharples.

Stephen B. Herndon of Holden was sentenced Tuesday in U.S. District Court in Charleston in connection with what the government calls a multi-million dollar scheme.

Last July, the 37-year-old Herndon pleaded guilty to structuring a transaction to evade federal reporting requirements. He also admitted that he and a business partner paid hundreds of thousands of dollars in kickbacks in exchange for business that was directed to a company in which he was a part owner.

Herndon has agreed to forfeit $132,000 to the United States. That represents a portion of the funds involved in and traced to the structuring scheme.

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