POLITICS: GOP senator forks over millions after DOJ sues – USSA News

West Virginia GOP Senator Jim Justice and his wife, Cathy, have agreed to settle a federal lawsuit seeking more than $5.1 million in unpaid income taxes, penalties and interest tied to the 2009 tax year.

Knewz.com has learned that the swift resolution came just hours after the Department of Justice filed a civil complaint on behalf of the IRS, alleging that the couple failed for years to satisfy long-outstanding tax liabilities.

GOP senator initially ‘refused or neglected’ to pay the IRS

The lawsuit, filed in the U.S. District Court for the Southern District of West Virginia, asserted that the IRS made repeated attempts to collect the debt but that the Justices “refused or neglected to pay.”

The complaint was filed almost exactly 10 years after the agency first assessed the taxes.

Shortly after the filing, the parties submitted a joint motion for a consent judgment.

Under the agreement, the couple accepted a $5.16 million judgment as of August 4, 2025, with additional statutory interest and penalties continuing to accrue until the balance is fully paid. According to reports, the IRS had previously placed liens totaling more than $8 million on the couple’s assets.

Tax dispute stems from 2009 sale of Bluestone Coal Corporation

The tax dispute stems from Justice’s 2009 sale of Bluestone Coal Corporation, the family business, to the Russian company Mechel for roughly $436 million.

In 2015, Mechel sold the business back to him at a price more than 99% lower than the original sale.

Despite the extraordinary nature of the transaction, Justice’s financial troubles have deepened.

A Forbes report from January stated that Justice’s net worth is “less than zero,” citing extensive debt and legal obligations.

The previous year, a federal judge ordered him to sell six of his companies to satisfy various financial judgments.

Discussing Mechel’s ownership of Bluestone, Justice said, “You also need to remember that the Russians … bought Bluestone from our family, and then turned it into a god-awful mess you have ever seen in the world.”

GOP senator has long-standing debt issues

Senator Justice entered the Senate in 2025 after two terms as governor. He won the seat vacated by Democrat Joe Manchin, defeating Democrat Glenn Elliott in the general election.

It has been reported that his business empire has long been marked by legal and financial strain, including disputes over taxes, loans and corporate obligations.

Senator Justice’s financial controversies predate his statewide political career

In 2016, NPR reported that Senator Justice’s companies failed to pay millions in mine-safety penalties, labeling him “the nation’s top mining safety delinquent.”

The investigation also found that while fines and taxes remained overdue, Justice contributed nearly $2.9 million in loans and in-kind support to his gubernatorial campaign.