A Pennsylvania coal miner formerly controlled by Texas buyout firm Quintana Capital has been given a pass on prosecution for FCPA violations involving $143 million in coal sales to Egypt in exchange for a $1.2 million payment to the Department of Justice Fraud Division.
The Declination comes one year after the March 2022 arrest of Corsa Coal Vice President Charles Hobson. Prior to the indictment against Hobson, in November 2021, a former sales manager of the company, Frederick Cushmore, pleaded guilty to conspiracy to violate the FCPA in connection with the same scheme.
In December 2021 Quintana Capital liquidated its Corsa position by distributing its holdings of approximately 45% of the outstanding common shares of the Company to their limited partners. In 2020 and 2021 Corsa Coal had received $8.35 million in Paycheck Protection Grants from the federal government.
Corsa's attorneys successfully made the case that, despite that windfall and a record surge in coal prices, the company was able to disgorge no more than $1.2 million of the approximately $32.7 million in profits realized from the scheme.
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