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Trump pardoned man involved in $14M coal fraud scheme

Former President Donald Trump pardoned Johnny Phillips, one of several people sentenced to prison in 2016 over their role in a fraudulent coal business scheme that defrauded investors of more than $14 million.

Phillips was sentenced to 30 months in prison for his role in the wire fraud and mail fraud scheme, a December 2016 press release from the U.S. Attorney's Office for the Eastern District of Tennessee states. A statement from the Trump administration said the pardon was supported by Sen. Rand Paul, R-Ky., and numerous members of the community.

"Mr. Phillips is known as an upstanding citizen and is a valued member of his community," the administration wrote in a press release announcing multiple pardons.

The scheme involved advertising the development of specialty coal that New Century Coal Inc. claimed was used to manufacture computer electronics. The U.S. Attorney release said no such coal was ever developed by the company and 90% of the funds were "diverted to support the extravagant lifestyles" of the participants in the scheme.

According to the Knoxville News Sentinel, a jury convicted Phillips in the conspiracy but acquitted him of money laundering and financial restructuring. The newspaper reported Phillips served his sentence, but that a pardon would mean he would not have a felony on his record.