Senator Jim Justice (R-WV) has agreed to pay over $5 million to settle a tax debt that dates back to 2009. The settlement was formalized following a complaint filed by the U.S. Department of Justice (DOJ) in federal court in Beckley, West Virginia, on August 4, 2023. The complaint stated that Justice and his wife, Cathy Justice, owed $5,164,739.75 in federal income taxes, penalties, and interest.
The DOJ’s filing indicated that the Justices had “neglected or refused to make full payment” despite prior notifications from the Treasury Department. On the same day, the DOJ and the Justices jointly moved to settle the outstanding amount, which brings to a close a significant financial dispute involving the senator.
Jim Justice, who served as the governor of West Virginia from 2017 until his election to the Senate last year, inherited a coal mining and agricultural business from his father. At one point, he was declared a billionaire, thanks in part to his business dealings. In 2009, he sold Bluestone Coal Corporation for $436 million in cash, along with an undisclosed amount in shares, to a Russian company named Mechel. Justice has publicly criticized the subsequent management of the business, describing it as a “god-awful mess.”
In a notable turn of events, Justice repurchased Bluestone from Mechel in 2015 for merely $5 million. Since then, he has faced various lawsuits aimed at settling outstanding debts, including unpaid mining fees, safety violation fines, and withheld royalty payments to a subsidiary of Mechel, Caroleng Investments.
The financial troubles surrounding Justice have been compounded by legal challenges. In June 2022, a federal judge in Delaware mandated that Justice sell six family-owned companies to address a $10 million debt owed to Caroleng Investments. This ruling followed the seizure and sale of a helicopter tied to another firm associated with the senator.
This settlement highlights the ongoing financial scrutiny faced by Justice, who has maintained a high profile in both state and national politics. His dog, Babydog, has also gained attention, becoming a beloved figure among constituents since Justice took office.
