Advisor: Former CEO Indicted for Mine Explosion Deaths - Where Does Insurance Fit In?
Donald L. Blankenship, the former chief executive of Massey Energy Co. was recently indicted on federal charges stemming from the 2010 coal mine explosion which killed 29 miners at its Upper Big Branch mine. The Mine Safety and Health Administration (MSHA) concluded that safety violations (Massey was cited for 369 violations) contributed to the coal dust explosion.
The federal prosecutors alleged Blankenship conspired to violate federal mine safety standards and to impeded the federal mine safety investigation. In addition, he is accused of making false statements to the U.S. Securities and Exchange Commission (SEC), and committing related securities fraud. Mines are known dangerous environments. How can an energy company best protect it's mine workers while protecting itself and its directors in these situations?