Kentucky man charged in coal mining Ponzi scheme based in Johnson City receives pardon from President Trump

A Kentucky man sentenced in federal court for a Ponzi scheme that had connections to Johnson City received a pardon from President Donald Trump.

Johnny Phillips was one of 12 defendants who received prison time in the case. Prosecutors testified that Phillips, John Hankins of Johnson City, who also went by the name of Brian Rose, and the others devised a plan to market a blue gem product through their New Century Coal business that at one time claimed to have a corporate office in Johnson City.

They also testified that the men and 10 others used investments of more than $14 million and lies of multiple coal mining operations to support their lavish lifestyles with luxury automobiles and big homes.

Rose was sentenced to 9 years in prison.

(IMAGE: L. Alverez / Associated Press)