For West Virginians getting their drinking water from the Elk River , the pungent aftertaste from a chemical spill in January has lingered in the legal system , with more than 60 lawsuits filed . On Monday , the FBI added a criminal case against the former president of Freedom Industries , Inc. , the company whose storage tank leaked more than 7,000 gallons of a black licorice-scented chemical used to clean coal . Representatives of the company were not immediately available for comment . Gary Southern lied to dodge responsibility for the spill , according to the criminal complaint filed in a West Virginia federal court . Southern , who was arrested on Monday after the filing , was released on bond and can only travel between West Virginia and Florida , where he has homes . Complaint : False impression . Southern lied under oath , saying he had just taken on leadership responsibilities at Freedom only days before the spill , FBI Special Agent James Lafferty wrote in the complaint . He wanted to leave an impression that -- because of that -- he could hardly be held responsible , the complaint said . In reality , Southern had been a leading executive at the company since 2009 , when he became chief operating officer , Lafferty wrote . Then there was the matter of the former president 's paycheck . In a bankruptcy filing on behalf of the company , Southern made an application to further collect his check using the same justification -- he had not been in charge long , when the tank containing 4-methylcyclohexane methanol ( MCHM ) sprung a leak . He later withdrew the application to keep collecting the check , according to the complaint . Complaint : Deception worked . But the alleged deception worked , the FBI agent wrote . A committee for creditors swallowed the line , saying it believed Southern had been involved with Freedom for just a short time . `` ... Southern 's goal in making the false and/or deceptive statement is to protect his assets from legal judgments that may result from lawsuits ... , '' the complaint said . Southern faces charges of lying under oath , bankruptcy fraud , and also wire fraud for transferring much of his wealth out of his bank account . Southern , who is also the target of two lawsuits , has $ 7.7 million in assets , the complaint said , and he moved $ 6.5 million from his Wells Fargo bank account into an annuity account with Jackson National Life Insurance Company , Inc. Nausea , headaches , rashes . The chemical was discovered leaking on January 9 into the Elk River , which supplies the city of Charleston with water . A do-not-use order was issued to 300,000 residents , some of whom could not drink or bathe in their water for more than a week . MCHM is not directly lethal but can cause nausea , vomiting , dizziness , headaches , diarrhea and skin rashes . A month after the spill , tap water tests in 10 homes detected MCHM still in the water supply , albeit at levels within the state 's legal limit . Freedom Industries , Inc. , in a settlement reached with plaintiffs , agreed to transfer $ 2.9 million into a trust fund to be used for `` the greater good . ''
FBI : Gary Southern tried to give the impression that he had not been with company long . The intent was to make it seem like he could not be held responsible . In reality , he had been with the company for about five years , the complaint read . Comment: