West Virginia Governor Sues Greensill for $ 700 Million Debt | West Virginia
West Virginia Republican Governor Jim Justice has revealed that he is personally responsible for hundreds of millions of dollars in loans taken out by his mining companies.
On Friday, in a new court case, justice blamed $ 700 million of its debt on UK and Australia-based Greensill Bank, which has controversial ties to former British Prime Minister David Cameron.
Greensill has made his profits by guaranteeing loans and providing cash advances. It collapsed in March, leaving Justice responsible for the loans in question.
That same month, the Republican sued Greensill in New York federal court, alleging that Greensill “perpetrated continuous and very profitable fraud” while hiding his own financial risk.
Justice asked Greensill for loans in 2018, as his Bluestone coal company was declining after it came under the ownership of a Russian company.
“When the Russians had Bluestone, what happened to Bluestone? It completely came to naught, ”Justice told reporters this week.
The latest record in the case shows that the governor and his wife, Cathy Justice, and their son Jay Justice personally guaranteed payment for the Bluestone loans.
The Justice family said they accepted the loans on the understanding that repayments would not be due until 2023. Justice and its companies are now seeking damages from Greensill.
In the UK, the Financial Conduct Authority has opened a formal investigation into Greensill after allegations of fraud and criminal activity.
Cameron has come under scrutiny for his lobbying for Greensill. He denied any wrongdoing. At the end of May, British Chancellor Rishi Sunak denied giving special treatment to the now collapsed bank following an intensive campaign by Cameron.
Justice is also responsible for a $ 368 million debt owed to Virginia-based Carter Bank & Trust. In addition, its companies could owe $ 3.2 million in federal penalties and lawsuits for failing to deliver coal.
Forbes recently removed Justice from its list of billionaires. The governor called the loans “a burden on our family beyond belief.”