Mountain Top Media
Lawsuit alleges Mine & Rail hid poor financial condition to obtain $30 million
LONDON, Ky. — A financial dispute tied to coal operations in Eastern Kentucky has landed in federal court, with an investment firm accusing a mining company and its leadership of fraudulently securing tens of millions of dollars while concealing serious financial problems.
In a lawsuit filed in federal court, Tacora Capital alleges that Mine & Rail Corporation and related entities misrepresented their financial condition to obtain roughly $30 million in investments and loans. The complaint also names several affiliated Australian companies and Australian members of Mine & Rail’s board of directors as defendants.
According to the lawsuit, Mine & Rail sought funding to support planned coal acquisitions in Eastern Kentucky, including assets connected to Coking Coal and Clintwood JOD. Tacora claims the company portrayed itself as financially stable and capable of completing the transactions, when in reality it was facing severe cash shortages and potential insolvency.
The complaint states Tacora initially provided $20 million through a convertible note, followed by an additional $7 million in loans after Mine & Rail reported unexpected funding gaps. Tacora alleges the defendants promised collateral security they ultimately could not deliver and failed to disclose contractual obligations that prevented the company from granting a senior lien on assets.
The dispute escalated in late January 2026, after Mine & Rail requested another $3 million addition to the note. Days later, the company disclosed what Tacora describes as an additional $15 million cash shortfall. Tacora claims that revelation exposed the company’s true financial condition and prompted the lawsuit.
Tacora is seeking compensatory and punitive damages of at least $30 million, along with attorney fees and other relief. The allegations have not been proven in court, and the defendants’ have not yet filed a response.
A copy of the full complaint follows:
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Louisa Police arrest three for opening bank accounts with fake government checks
LOUISA, Ky. — Louisa Police have arrested three people who they say were trying to open bank accounts with counterfeit government checks and fake IDs.
Officers had been investigating a fraudulent check scam when they were alerted to suspicious activity on Tuesday.
Officer Michael Housinger observed a van park at Little Caesar’s and a woman get out and walk across the street to Citizens Bank, while two men stayed in the van. The woman returned after a half-hour and drove to Dollar General, where the process was repeated at City National Bank.
Housinger went back to Citizens to alert them of a possible fake check scam and learned the woman had opened an account and deposited a government check for more than $12,000. The manager of Citizens called the City National manager about the case and learned the woman was opening an account there with a $32,000 government check, but she was using a different name and ID.
Police Chief Steven Wilburn then arrived at City National to question the woman, who was using Texas ID in the name of Vivian Powell to open an account. The police report says the woman immediately admitted the Texas ID was fake and produced a New Jersey driver’s license identifying her as Tina Dunfee, 48, of Trenton, N.J. A background check revealed Dunfee was wanted for opening a bank account in Lexington with a fake check.
Police then searched the van and found multiple fake government checks and fake IDs.
Dunfee and the men, identified as Cody Hughes, 29, of Colliersville, Tenn., and Kaysaun Madden, 41, of Brooksville, Fla., were all arrested. All three are now charged with possession of a forged instrument and engaging in organized crime.
All three were being held in the Big Sandy Regional Detention Center on 10-thousand dollar cash bonds, but Dunfee was released Thursday so she could be taken to the hospital for medical reasons. She will be returned to jail upon her release from the hospital.
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