Thursday, February 23, 2012

What if there actually were a price to pay for the 1%'s crimes of predation against the rest of us?

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A bad night at the Upper Big Branch mine -- to folks
like Don Blankenship, just a cost of doing business?


"They're moving up in the food chain. This will cause some sleepless nights for people high up in the corporate ladder."
-- Kentucky miners' lawyer Tony Oppegard, quoted by the NYT's Sabrina Tavernise in "Mine Supreintendent Charged in 2010 Disaster"

by Ken

First off, let me say that I'm not so sure about those "sleepless nights" for the mining bigwigs. But I'm guessing that this development will at least get their attention, and get them thinking about deeper questions than "Who did we pay off, or not pay off enough?"

So no, I don't think we've advanced into a New Era of Accountability. But the charging of a third mine supervisor (the NYT had to correct its report that he was "indicted" to indicate that he was merely "charged") in the wake of the 2010 disaster at the Upper Big Branch mine in West Virginia does raise the possibly alarming -- to the economic elites -- specter of facing paying a price for making your business economic pillage, plunder, and rape. And in this case not just economic.

Howie and I have written a fair amount about the West Virginia disaster
(see, most recently, Howie's December 11 post "India Commits A Big No-No -- Holds Elites Responsible For Something; West Virginia, On The Other Hand...") and the shocking irresponsibility of the mine owner, Massey Energy, and its head cheese, Don Blankenship. So let me make clear that by "paying a price," I don't mean the kinds of fines that predatory corporate execs of Donny's ilk have come to accept as a cost of doing business.

Actually, in the U.S. mining industry, fines don't even appear to be thought of as a cost of doing business, since the companies seem to regard payment of fines as optional. Massey Energy certainly doesn't seem to have taken them seriously. What I guess Don Blankenship and his kind consider a cost of doing business would be little mishaps like the one at Upper Big Branch. You know, a few miners maimed or killed here, a dozen there, a couple of dozen way over there -- hey, it's not as if there's any shortage of would-be miners.

I would say that something like justice has been done when erstwhile Don Blankenship and his top lieutenants begin conducting business meetings from their lockups on Death Row. (For the record, Massey Energy was sold last year to Alpha Natural Resources. I'm going to trust the prosecutors to get liabilities sorted out in time for the start of the trials and executions.)

Oh yes, here's the gist of the story.
Mine Superintendent Charged in 2010 Disaster

By SABRINA TAVERNISE

Federal prosecutors filed charges Wednesday against Gary May, a superintendent of the West Virginia coal mine where an explosion left 29 dead in 2010, continuing an emotional case that has been closely watched by the mining industry and the families of the dead miners.

Mr. May is the third mine supervisor to be charged in the disaster, the worst mining accident in the United States in 40 years. Last year charges were brought against two others -- the mine's security chief and a foreman who had not been at the mine on the day of the explosion.

But Mr. May, one of the mine's two superintendents, is the most senior, and industry observers say the charges against him are an indication that prosecutors are getting closer to the executives who ran the company, Massey Energy, which has since been bought by Alpha Natural Resources.

"They're moving up in the food chain," said Tony Oppegard, a Kentucky lawyer who defends miners. "This will cause some sleepless nights for people high up in the corporate ladder."

The way the charges were filed -- directly to the court by prosecutors from the United States attorney's office, instead of by a grand jury indictment -- indicates that Mr. May is cooperating with prosecutors, a strategy that observers say could eventually lead prosecutors to top executives, including Don L. Blankenship, the former head of Massey, who state investigations concluded had enforced a culture of cutting corners and ignoring risks for the sake of profit.

The charges, filed in federal court in West Virginia, include conspiracy to defraud the United States by impeding a federal agency, a felony that is punishable by up to five years in prison.

The charging document paints a picture of deception with Mr. May at its center, directing workers to falsify record books and speaking to them in code as a way of warning that inspectors were coming.

According to a person close to the investigation, those phrases included "bringing in a load of blocks," and "it's raining outside" or "there's a hailstorm outside." Another warning phrase was "I had a hamburger (or cheeseburger) for dinner last night," the person said.

The conspiracy charges against Mr. May were an unusual strategy, lawyers said. Few violations qualify as federal felonies under existing law, and law enforcement has been hampered by weak misdemeanor penalties. A conspiracy charge allows prosecutors to be more flexible in their strategy, and if it is successful, could give them a tool to reach senior mine officials who have traditionally been insulated from criminal charges because they are rarely involved in actual coal mining.

Mr. May began working at the Upper Big Branch mine, as it was known, in February 2008 as a foreman, according to the charging document. He was promoted to superintendent in 2009 and held that position through April 5, 2010, when the explosion happened.

In a statement e-mailed to reporters, Alpha said that Mr. May became an employee of an Alpha subsidiary after that company acquired Massey Energy last year. It said he had been placed on administrative leave.

At the heart of the charges is an accusation that Mr. May knowingly misled federal inspectors from the Mine Safety and Health Administration when they made regular checks to ensure that the mine was safe, signaling to workers on site, sometimes using code phrases, that inspectors were about to arrive. That allowed them to conceal violations for which they would have otherwise been penalized.

Charges also include making changes in the ventilation system in the mine just before federal inspectors arrived to make it appear that the parts of the mine being examined by inspectors had better air than they actually did. . . .
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