ABINGDON, Va. -- The owner of a McDowell County coal mine has been found not guilty of federal charges in a check cashing scheme.
David A. Cline, owner of Rock N Roll Coal Company, was found not guilty Feb. 5 after a 12-day trial in federal court in Abingdon, Va. Cline was represented by Bailey & Glasser, whose trial team was led by Mike Hissam with the assistance of Rod Smith and Ben Bailey.
Cline and four others were indicted in October 2012 and charged with one count of conspiring to violate federal law and 22 counts of causing the structuring of currency transactions to avoid reporting requirements.
His son Joshua Cline -- who was represented by John A. Carr, who worked closely with the Bailey & Glasser team -- also was charged with conspiracy, two counts of structuring and one count of making false statements under oath.
The others originally charged in the alleged scheme were William "Bill" F. Adams Jr., Michael W. Dunlap and John B. Ward. Dunlap entered into a plea agreement before the trial began.
The indictment alleged that the individuals named, together with two dozen others, conspired to obstruct the Internal Revenue Service from collecting federal taxes and engaged in a check cashing scheme designed to hide the withdrawal of cash in excess of $10 million from financial institutions.
The government's primary witness was J.D. "Dot" McReynolds, who sold cash, with an added 10 percent fee, to various coal operators and provided them with fraudulent invoices to disguise the cash purchases. McReynolds was able to structure the cash out of financial institutions in West Virginia and Virginia to evade transaction reporting requirements by making multiple withdrawals of $10,000 or less.
Cline denied the charges and denied any involvement in McReynolds' scheme. Cline's trial began Jan. 21. On Feb. 5, the jury started deliberations and later returned with the not guilty verdicts for David and Joshua Cline. They were the only two defendants acquitted of the charges.
"I couldn't be any happier for David and Josh Cline and for their families," Ben Bailey said in a statement. "For nearly two years, our client and his son have steadfastly maintained their innocence. They are thankful that the jury's verdict has borne that out and are justifiably relieved and anxious to return to their privacy.
"On a personal note, I am extremely proud of the hard work done by our trial team and gratified by this result."
Bailey & Glasser is headquartered in Charleston and has additional offices in Washington, D.C., Alabama, Delaware,
Bailey & Glasser gets not guilty verdict for client in check cashing scheme
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