Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, May 27, 1993 TAG: 9305270093
SECTION: VIRGINIA PAGE: C-5 EDITION: METRO
SOURCE: Associated Press
DATELINE: ABINGDON LENGTH: Medium
Robert S. Painter, owner of Abbs Valley Electric Co., pleaded guilty in U.S. District Court to charges of racketeering, illegal hazardous-waste disposal and income tax fraud, U.S. Attorney E. Montgomery Tucker said.
Prosecutors say Painter conspired to defraud coal companies through false and inflated billings. They say he also provided cash and prostitutes to coal company employees.
Painter, 55, and six others were indicted in January.
Pleading guilty to charges of tax-fraud conspiracy were Painter's daughter, Sherri P. Bailey, 33; her husband, David W. Bailey, 32; Gerald L. Tabor, 54; Painter's brother-in-law, Richard Weiner, 74; and Howard Cook Jr., 44, a former purchasing agent for Island Creek Coal Co.
Sherri P. Bailey also pleaded guilty to a charge of aiding and assisting the filing of a false tax return, and Cook also pleaded guilty to mail fraud. Albert Harless, 38, another brother-in-law of Painter, pleaded guilty to aiding and abetting the failure to file tax forms.
Under the plea agreements, Painter and the Baileys are to forfeit real estate, assets and bank accounts of Abbs Valley Electric. Weiner agreed to forfeit $100,000 in cash, Tabor $10,000 and Cook $6,000.
The guilty pleas were accepted by U.S. District Judge Samuel Wilson. Remaining charges against each defendant were dismissed.
IRS agent Harrell Erwin said Painter made cash payments and provided prostitutes to coal company employees.
Painter hoped to urge the employees to direct business his way and accept false billings from the company, which repairs and sells electric mining motors for the coal industry, Erwin said.
Erwin said 35 to 40 coal companies were affected by about $986,000 in false billings from August 1985 until fall 1989.
The illegal-dumping charge involves 23 barrels of degreasing solvents that were placed near a highway in McDowell County, W.Va., in 1989.
Painter faces up to 30 years in prison and $750,000 in fines. Sherri P. Bailey faces up to eight years imprisonment and a $500,000 fine. David W. Bailey, Tabor and Weiner each face up to five years in prison and $250,000 fines. Cook faces up to 10 years in prison and a $500,000 fine. Harless faces up to one year in jail and a $100,000 fine.
Sentencing is set for Aug. 31.
by CNB