W.Va. Democrats wants Senate Ethics to investigate Justice

CHARLESTON – The West Virginia Democratic Party is calling on the United States Senate Ethics Committee to investigate what it calls “serious allegations” involving U.S. Senator Jim Justice and his handling of The Greenbrier resort.

Justice, a Republican, and his family are in an aggressive two-front court fight over control of The Greenbrier after a creditor tied to Omni Hotels bought nearly $300 million of the resort’s debt and moved to put it into receivership.

The Democrats say recent filings raise “troubling claims” that revenue generated by The Greenbrier was diverted to support unrelated, failing business ventures and to finance luxury purchases, including private jets and helicopters while Justice and Justice-owned businesses fell behind on obligations such as state sales taxes, federal income taxes and employee health insurance payments.

“These issues paint a deeply disturbing picture of misplaced priorities and a pattern of behavior that raises serious ethical and legal questions,” West Virginia Democratic Party Chair Mike Pushkin said. “West Virginians deserve to know whether one of our United States Senators has been using the Greenbrier Resort as a personal piggy bank while workers and taxpayers are left holding the bag.

“The Senate Ethics Committee must act immediately. And if these allegations are substantiated, Jim Justice should resign without delay. No one — no matter how wealthy or powerful — is above the law.”

When asked for comment regarding the Democrats’ call for an investigation, said he stands firm.

“For me, serving West Virginia has never been about a title,” Justice told The West Virginia Record. “It’s been a lifelong mission. As a businessman, as governor, and now in the Senate, my only goal has been to work for the people of my state.

“It’s a shame to see that kind of dedication questioned for the sake of a political point, but I know the people of this state know my heart. I’ve never wavered in my commitment to them, and I’m certainly not going to start now."

The Justice family owes anywhere from $289 million to $360 million on loans tied to The Greenbrier and related businesses. Carter Bank, their longtime lender, sold that debt to White Sulphur Springs Holdings, an entity backed by TRT Holdings, which is the Texas-based parent of Omni Hotels & Resorts.

After buying the debt, TRT filed in federal court to have a receiver appointed over The Greenbrier and related assets, which could strip operational control from the Justices. TRT says the Justices repeatedly missed payments and violated a series of forbearance agreements, so they are now enforcing their rights as secured lenders.

TRT’s federal suit seeks receivership over The Greenbrier and its businesses, arguing revenue has been diverted to other Justice entities and pointing to alleged unpaid taxes and lapses in employee health and retirement contributions as signs of financial distress. They argue the resort is worth less than the total debt and needs an additional $100 to $200 million in capital improvements, effectively wiping out the Justice family’s equity.

Justice, his family and their companies sued TRT/Omni last month in Greenbrier Circuit Court to block what they call a deceptive takeover attempt. In the amended complaint, they allege a “multi-year scheme” to “snatch The Greenbrier from the local and longstanding ownership of the Justice family” through unlawful acquisition and use of confidential financial information and anticompetitive conduct.

The Justices say TRT and Carter Bank acted in bad faith during refinancing talks, including allegedly reneging on a prior deal that would have allowed Justice to settle all Carter debt for about $300 million and violating standstill/confidentiality agreements while TRT positioned itself to buy the loans.

The Justice amended filing claims around $500 million in damages tied to alleged harm to business partners, revenue and reputation. They ask the court to halt any transfer of ownership and unwind TRT’s loan purchase.

A receivership case is pending in federal court over The Greenbrier and related Justice businesses. A judge has set a hearing to determine next steps that could affect who controls operations in the near term.

In state court, the Justice family’s suit against TRT/Omni and related entities has been amended with new allegations, including that the Omni owners improperly acquired Greenbrier loans in violation of prior agreements and are trying to replace local staff with personnel from Omni’s Homestead resort.

Court records show, during an April 6 meeting about the issue, Justice suggested TRT/Omni could not get a fair trial in West Virginia because of he “had influence over or appointed all the state court judges in West Virginia.”

“That allegation alone should send shockwaves through every corner of our state,” Pushkin said. “If a sitting U.S. Senator is suggesting that our courts are compromised because of his influence, that is not just unethical, it is a direct threat to the integrity of our judicial system and the rule of law.”

Pushkin called on Justice to immediately clarify those claims.

“If Jim Justice is going to make or allow claims that he ‘controls’ judges in West Virginia, then he owes the public full transparency,” Pushkin said. “He should immediately name the specific judges he believes he influences, and those names should be submitted to the West Virginia Supreme Court for review. Judges in this state are bound by the Code of Judicial Conduct to remain impartial.

“Any suggestion otherwise demands immediate scrutiny.”

Democratic Party Vice Chairwoman Teresa Toriseva noted the effect on West Virginians who work for Justice companies.

“While these allegations describe millions being shifted between businesses and spent on luxury assets, we have seen workers at Justice-owned companies struggle with unpaid benefits and uncertainty,” Toriseva said. “If these claims are true, it represents a fundamental betrayal of the people who built those businesses and the communities that depend on them.”