West Virginia Governor Sues Greensill Over $700 Million Debt | West Virginia

The Republican Governor of West VirginiaJim Justice has revealed that he is personally responsible for hundreds of millions of dollars in loans taken out by his mining companies.

In a new court filing on Friday, justice blamed UK and Australia-based Greensill Bank, which controversial links to the former British Prime Minister David Cameronfor $700 million of its debt.

Greensill made its profits by guaranteeing loans and providing cash advances. This collapsed in March, leaving justice responsible for the loans in question.

The same month, the Republican sued Greenery in federal court in New York, alleging that Greensill “perpetrated a continuous and highly profitable fraud” by hiding his own financial risk.

Justice sought loans from Greensill in 2018 after his coal company Bluestone declined after passing under the ownership of a Russian company.

“When the Russians got Bluestone, what happened to Bluestone? It just fell apart,” Justice told reporters this week.

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

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

In the UK, the Financial Conduct Authority has launched an official investigation into Greensill after allegations of fraud and criminal activity.

Cameron has come under scrutiny for his lobbying for Greensill. He owns refuse any wrongdoing. At the end of May, the British Chancellor, Rishi Sunak, refuse give special treatment to the bank which is now bankrupt following a intensive campaign by Cameron.

Justice is also liable for a $368 million debt to Virginia-based Carter Bank & Trust. Additionally, his companies could owe $3.2 million in federal fines and lawsuits over allegations of non-delivery of coal.

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

Darcy J. Skinner