Aracoma Contracting LLC charged in federal information - Beckley, Bluefield & Lewisburg News, Weather, Sports

Aracoma Contracting LLC charged in federal information

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Federal prosecutors say Aracoma Contracting LLC structured hundreds of cash withdrawals from the Bank of Mingo to avoid bank reporting requirements and avoid paying employment taxes, an Aug. 14 information states.

The information filed in U.S. District Court for the Southern District of West Virginia accused Aracoma of structuring transactions in increments of $10,000 or less to evade reporting requirements.

Prosecutors say from January 2009 through April 2012, Aracoma — which is an employee-leasing company providing contract labor services to West Virginia coal mining operations — would contact Bank of Mingo employees before withdrawing money, telling employees how much they wanted to withdraw and who would be coming to the Williamson location to get the money.

The information continues, asserting Bank of Mingo employees would provide Aracoma cash in the amount that had been requested, which sometimes totaled more than $10,000.

Prosecutors say Bank of Mingo employees failed to file a currency transaction report, which violated U.S. Code, "allowing defendant Aracoma's pattern of structuring activity to not be reported to the Internal Revenue Service, as required by law," the information states.

The information asserts Aracoma used the money to pay employees in cash to avoid employment taxes and also used the money to bribe a BrickStreet Mutual Insurance Company employee.

The information sought Aracoma Contracting to forfeit $405,000 to the government.