Reports detail that Justice and his family defaulted on loans in excess of $300 million, failed to pay sales taxes in excess of $3.5 million, and failed to pay penalties for unsafe working conditions in his mines.
These are the defaults reported in the news – yet failures to pay and collections are like a tightening noose reducing his access to capital and assets that could otherwise fund other payment obligations. As dominos fall, will his desperation and risk of corruption rise?
Specifically Reported Financial Troubles:
Based on a March 26, 2024 report by the Parkersburg New and Sentinel, in early February, a Virginia circuit judge ruled in favor of Carter Bank against Jim and Cathy Justice, as well as their son Jay. The court rejected arguments made by Justice’s attorneys to block the bank’s attempt to execute liens to collect on $300 million of loans subject to personal guarantees by the Justice family.
Jim Justice may be in a delicate position where he cannot, for the election’s sake, file for bankruptcy protection under the U.S. Bankruptcy Code given the bad optics that would impose on his candidacy. Without this protection, he and his family must defend against collection efforts as they arise one by one.
Apart from private creditors, on March 23rd The Inter-Mountain reported that Jim Justice’s Greenbriar resort faces state tax liens amounting to $3,500,000:
According to documents filed with the Greenbrier County Clerk’s Office, the State Tax Department’s Compliance Division issued seven notices of tax lien on Feb. 5 to the Greenbrier Hotel Corporation for consumer sales and use taxes and withholding taxes owed to the state, as well as owed interest and penalties.
Looking more closely, unpaid state taxes accrued from June through October 2023. The combined taxes, interest, and penalties exceeds $3,500,000. This very recent failure to pay mid to late 2023 taxes may indicate a rising cash flow problem. It is reasonable to have concern that they have similarly failed to pay more recent taxes and other obligations, but those are not yet in a status where collections can begin.
According to Fortune.com, Justice . . . also has been the subject of numerous court claims that he has been late in paying millions of dollars he owes in fines, such as for unsafe working conditions at his coal mines.
A Deeper Concern:
Jim Justice is a Democrat turned Republican during the Trump administration. Is it possible that his political epiphany was driven by knowledge of his precarious financial situation? If so, can we trust anything about his newfound politics?
To all conservatives in West Virginia, and anyone afraid of the strange drift toward diversity, equity and inclusion, as well as LGBTQ fanaticism, it is critical to vote for an actual conservative.
Rep. Alex Mooney, Justice’s primary opponent is a grounded and solid Freedom Caucus conservative who Trump endorsed for his House races. Jim Justice, with his apparently desperate circumstance, managed to extract President Trump’s endorsement for this Senate race, but his word cannot be trusted as the pressure of finanicial collapse bears down on him. We cannot miss another chance of driving the senate to the right and away from the establishment. Only Alex Mooney can bring us this win.
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