How One CEO's Culture of Fraud and Deception Led to Death
Don Blankenship, the pugnacious former CEO of Massey Energy, was known for a maniacal fixation with coal production. Now new details from federal investigators -- who discovered Massey kept two sets of books at the Upper Big Branch mine -- suggest deception and fraud were mainstays of the company.
Massey Energy is already facing an unknown number of federal fines for last year's UBB mine explosion that killed 29 workers. And some families of miners killed in the blast have filed lawsuits against the company. But this latest revelation could -- and should -- lead to criminal charges against Blankenship as well as other managers and possible some members of the board.
From NPR:
Mine owner Massey Energy kept two sets of records that chronicle safety problems. One internal set of production reports detailed those problems and how they delayed coal production. But the other records, which as reviewed by federal mine safety inspectors and required by federal law, failed to mention the same safety hazards. Some of the hazards that were not disclosed are identical to those believed to have contributed to the explosion.Prosecutors have already proven they're more than willing to issue criminal charges stemming from the worst U.S. mining disaster in 40 years. In February, a Massey Energy security chief was indicted on charges of lying to the FBI and trying to dispose of key documents.
This isn't some rogue employee. Massey was known to use intimidation tactics to discourage miners from reporting unsafe conditions. That Massey Energy had two sets of books, one of which was clearly intent on deceiving regulators, shows the company not only condoned this kind of behavior, but encouraged it.
It'll be interesting to see how Blankenship responds if prosecutors pounce. He'll have trouble proving he wasn't responsible or didn't know about the creative bookkeeping.
Blankenship has a long history at Massey Energy, where he rose quickly up the ranks by breaking its union mines in 1980s. To say he was deeply involved in virtually every aspect of the company, is an understatement. Blankenship was known for taking a particularly aggressive stance towards anything -- whether it was unions or safety inspectors -- that threatened coal production.
Related:
- Buyer Beware: Massey Energy Goes Rogue, and Its New Owner Eats Crow
- Massey Mining Disaster: 5 Awful Truths Exposed
- At Massey Energy, a Retiring CEO is Worth 7 Dead Miners
- Massey Energy Up for Sale: What It Means for CEO Blankenship and Shareholders
- The Man Behind the Massey Disaster: Donald Blankenship's Storied Career of Misdeeds