August 5, 2021

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West Virginia governor sues Greensill over $700m debt | West Virginia

The Republican Governor of West Virginia, Jim Justice, announced that he is personally liable for hundreds of millions of dollars in loans taken out by his coal mining companies.

In a new trial on Friday, the judiciary blamed the collapsed Greensill Bank, based in the UK and Australia controversial connections to the former British Prime Minister David Cameron, for $ 700 million of his debt.

Greensill made its profits by guaranteeing loans and making cash advances. It collapsed in March, making Justice liable for the loans in question.

That same month the Republican sued Green swell in federal court in New York, claiming that Green swell “Committed a continuous and highly profitable fraud” by hiding his own financial risk.

Justice applied for loans from Greensill in 2018 when its Bluestone coal company declined after being owned by a Russian company.

“When the Russians got Bluestone, what happened to Bluestone? It has melted into absolutely nothing, ”Justice told reporters this week.

The latest file in the case shows that the governor and his wife Cathy Justice and son Jay Justice personally guaranteed the payment of the loans for Bluestone.

The Justice family said they took out the loans with the understanding that repayments would not be due until 2023. Justice and his companies are now demanding damages from Greensill.

In the UK, the Financial Conduct Authority opened a formal investigation into Greensill following allegations of fraud and criminal activity.

Cameron has come under intense scrutiny for lobbying Greensill. He has refused any wrongdoing. At the end of May, the British Chancellor Rishi Sunak refused Special treatment of the now collapsed bank after one intense campaign by Cameron.

Justice is also responsible for a $ 368 million debt to Virginia-based Carter Bank & Trust. In addition, its companies could owe $ 3.2 million in federal fines and lawsuits for allegations that they failed to supply coal.

Forbes recently removed Justice from its list of billionaires. The governor called the loans “an incredible burden on our family”.