SOURCE: Quest Minerals & Mining Corp.

June 21, 2006 13:27 ET

Quest Minerals & Mining Files Lawsuit Against Community Trust Bank

PATERSON, NJ -- (MARKET WIRE) -- June 21, 2006 -- Quest Minerals & Mining Corp. (OTCBB: QMMG) , a Kentucky based operator of energy and mineral related properties, announced today that it has filed a complaint in the United States District Court for the Eastern District of Kentucky against Community Trust Bank of Ashland, Kentucky, and several individuals, seeking in excess of $100,000,000 in compensatory damages plus treble and punitive damages for fraud, negligence, gross negligence as well as violations of federal and state RICO statutes.

Quest alleges that Community Trust Bank allowed certain of its officers and employees and several co-conspirators to engage in a check-kiting scheme that resulted in the misappropriation of at least $500,000 from Quest and damage to the shareholders of Quest in the amount of $108,325,000 by destroying Quest's ability to do business and ultimately causing Quest to cease operations at its sole operating mine at Slater's Branch, Kentucky, forcing it to raise additional funding under difficult circumstances, radically reducing the value of the shares of Quest, and otherwise destroying the good name and credibility of Quest.

Quest's counsel, Dennis Kelley of Ashland, Kentucky, stated, "We have brought this action against Community Trust to recover massive losses that Quest and its stockholders have incurred as a result of Community Trust's malfeasance. In my opinion, Community Trust oversaw the activities of the branch manager in question and either failed to understand that fraud was present or overlooked the fraud in order to increase bank profits. Further, Community Trust certainly failed to warn Quest's Board of the manager's illegal activities. We intend to aggressively pursue our goal of recovering fair value from Community Trust for the harm caused to Quest, its business, and its stockholders by Community Trust's actions."

Quest's new President, Eugene Chiaramonte, Jr., added, "Community Trust's actions have caused Quest and its stockholders substantial harm. We are bringing this lawsuit to recover fair value for that harm to our stockholders and to hold the bank responsible for its wrongdoings. We believe that this case will expose the nature and extent of the illegalities that occurred at the bank, and we are committed to seeing it through."

About Quest Minerals & Mining

Quest Minerals & Mining Corp., or Quest, acquires and operates energy and mineral related properties in the southeastern part of the United States. Quest focuses its efforts on properties that produce quality compliance blend coal. For more information on Quest Minerals & Mining Corp., please visit our website at www.questminerals.com.

Forward-Looking Statements

Certain matters discussed in this press release are "forward-looking statements." These forward-looking statements can generally be identified as such because the context of the statement will include words, such as Quest Minerals and Mining "expects," "should," "believes," "anticipates" or words of similar import. Similarly, statements that describe Quest Minerals and Mining's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, including the financial performance of Quest Minerals and Mining, as appropriate, which could cause actual results to differ materially from those currently anticipated, including, but not limited to, lack of revenue producing operations, lack of working capital, debt obligations, judgments and lien claims against Quest and certain of its assets, difficulties in refinancing short term debt, difficulties in accelerating sales growth, difficulties identifying and acquiring complementary businesses, restrictive covenants in its existing credit facilities, fluctuations in coal, oil & gas, and other energy prices, general economic conditions in markets in which Quest does business, extensive environmental and workplace regulation by federal and state agencies, and other general risks related to its common stock, and other uncertainties and business issues that are detailed in its filings with the Securities and Exchange Commission. These forward-looking statements are only made as of the date of this press release and Quest Minerals and Mining does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Contact Information

  • CONTACT:
    Quest Minerals & Mining Corp.
    Eugene Chiaramonte, Jr.
    973-684-0075