- Associated Press - Wednesday, May 13, 2015

BECKLEY, W.Va. (AP) - Ex-Freedom Industries President Gary Southern faces a new federal fraud charge stemming from the company’s bankruptcy.

A federal grand jury in Beckley issued a superseding indictment Tuesday against Southern and former Freedom executive Dennis Farrell. It charges Southern with a new count of lying under oath in bankruptcy court and restates charges in the previous indictment.

The new count says Southern lied in a bankruptcy hearing that he was only an employee of a company named Blackwater, which paid him as chief operating officer. It says Southern owned the company through a trust.

Southern could face up to 93 years in prison if convicted of federal pollution and fraud charges related to Freedom’s bankruptcy.

Southern’s lawyer, Robert Allen, declined comment Wednesday.

Southern and Farrell have an October trial date.



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