Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, September 1, 1993                   TAG: 9309010126
SECTION: VIRGINIA                    PAGE: C-3   EDITION: NEW RIVER VALLEY 
SOURCE: Associated Press
DATELINE: ABINGDON                                LENGTH: Medium

BUSINESSMAN SENTENCED IN COAL COMPANY SCHEME

Robert S. "Sarge" Painter, 55, owner and operator of Abbs Valley Electric Co., pleaded guilty in May to racketeering conspiracy, conspiracy to defraud the United States of income taxes, and the illegal dumping of hazardous wastes.

U.S. District Judge Samuel Wilson sentenced Painter to 30 months in prison for racketeering conspiracy, 30 months for conspiracy to defraud the U.S., and to 24 months for illegally dumping hazardous wastes. The terms will be served concurrently.

Wilson said Painter would have to forfeit assets seized by the federal government. Painter also received three years supervised release.

The violations were discovered during a tax audit, federal officials said. Painter made cash payments to coal company employees and furnished them with prostitutes. He urged the employees to direct their employers' business to Abbs Valley Electric and to accept false billings for the company, which repaired and sold electric mining motors for the coal industry.

The conspiracy to defraud the United States of income taxes charge involved the diversion of income and Abbs Valley Electric checks payable to a sham company, federal officials said.

Howard Cook Jr., 44, a former purchasing agent for Island Creek Coal Co., and Sherri P. Bailey, 33, Painter's daughter, also were sentenced to prison terms and ordered to forfeit assets seized by the government, while four other defendants were sentenced to probation.

Sherri Bailey, who pleaded guilty to conspiracy to defraud the United States of income taxes and to aiding and assisting the filing of a false corporate tax return for Abbs Valley Electric, was sentenced to four months in prison for each count. The sentences will be served concurrently.

Cook, who pleaded guilty to conspiracy to defraud the United States of income taxes and mail fraud, also received a sentence of four months for each count, to be served concurrently.

David W. Bailey, 32, Sherri Bailey's husband, and Gerald Lee Tabor, 54, who each pleaded guilty to one count of conspiracy to defraud the United States of income taxes, each were sentenced to two years probation and 50 hours of community service.

Albert Harless, who pleaded guilty to a misdemeanor charge of aiding and abetting the failure to file Internal Revenue Service form 1099, was sentenced to two years probation and 50 hours of community service.

Richard Weiner, 74, Painter's brother-in-law, pleaded guilty to one count of conspiracy to defraud the United States of income taxes. He was sentenced to one year probation.