US attorney identified the man as Mountain Energy Resources owner Dale Edward Stanley.
Stanley, 53, appeared before US magistrate Dennis Inman in Greeneville on Monday and was released pending arraignment, which is scheduled for November 26.
“Stanley … contracted with Eastman to provide steam coal, which was to have a high [British thermal unit] rate and low ash rate,” Killian said.
“It is alleged that Stanley provided Eastman with lower quality coal, concealing the lower quality coal by placing it under higher quality coal in rail cars sent to Eastman.”
The accused also allegedly paid a testing service worker to submit unrepresentative testing samples.
Invoices concerning the case total more than $US5.25 million.