Feds charge Kentucky coal executive in embezzlement scheme

March 29, 2022 GMT

PINEVILLE, Ky. (AP) — A Kentucky coal executive embezzled millions from investors, according to federal authorities.

A federal grand jury indicted Rex G. Fought last week on a charge related to tax fraud, The Lexington Herald-Leader reported. Court document said Fought worked with others to steal millions of dollars between 2014 and 2019.

The indictment said Fought, 64, was the manager of Catalyst Resources, Rockhampton Energy and Covol Fuels No. 3 in eastern Kentucky during the alleged conspiracy. Fought worked with an unidentified controller at the three companies to funnel cash into his own pocket, according to the indictment.

Catalyst Resources was owned by investors, and Fought and the unidentified person created false financial statements and audit documents to provide to investors and lenders, according to the indictment.

The indictment said Fought filed returns in tax years 2015 through 2018 that didn’t include the income he received from the companies.

Fought is no longer with the companies, the newspaper reported. He faces up to five years in prison on the fraud charge.