Former Freedom Industries president faces new fraud charge stemming from bankruptcy case

Former Freedom Industries President Gary Southern faces a new federal fraud charge stemming from the company's bankruptcy.

A federal grand jury in Beckley, West Virginia, handed up a superseding indictment on Wednesday against Southern and three other former Freedom executives. The indictment charges Southern with a new count of fraud by interstate commercial carrier and restates the charges in the original indictment.

The new count alleges that Southern sent a $6.5 million personal check to an insurance company to be deposited in an annuity account as part of a bankruptcy fraud scheme. The alleged scheme included attempting to protect some assets from possible verdicts and judgments stemming from a Jan. 9, 2014, chemical spill in West Virginia.

Southern's lawyer, Robert Allen, didn't immediately return telephone and email messages Thursday morning.