Eastern District of Kentucky
Press releases recorded for this federal judicial district.
Lexington Man Sentenced to 480 Months for Production and Distribution of Child PornographyRead the Press Release
LEXINGTON, Ky.— A Lexington man, Justin Tyler Ainslie, 25, was sentenced to 480 months in federal prison on Thursday, by U.S. District Judge Karen Caldwell, for the production and distribution of child pornography.
According to the Ainslie’s plea agreement, starting in June 2020, law enforcement received two cyber tips about an online user who had uploaded child sexual abuse material to social media platforms. A search of Ainslie’s residence resulted in the seizure of multiple electronic devices that contained 11,524 images and 1,501 videos of child sexual abuse material. The production charge was based upon a review of Ainslie’s phone that revealed photos that Ainslie admitted to taking. The photos depicted child sexual abuse material of minor females.
Ainslie was originally indicted in Eastern District of Kentucky (EDKY) for the distribution of child pornography charge and then charged in the Western District of Kentucky (WDKY) for production of child pornography. Ainslie consented to a transfer of the WDKY charges to the EDKY for his guilty plea and sentencing.
Ainslie pleaded guilty in March 2022.
Under federal law, Ainslie must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life. Additionally, Ainslie will be required to pay $138,500 in restitution.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentencing.
The investigation was conducted by the Department of Homeland Security - Homeland Security Investigations and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Fayette County Man Pleads Guilty to Distributing Fentanyl Resulting in Overdose DeathRead the Press Release
LEXINGTON, Ky. – A Lexington man, Keon Lamont Lee, 31, pleaded guilty on Wednesday, to distributing fentanyl resulting in an overdose death.
According to his guilty plea, in February of 2021, Lee illegally provided fentanyl to someone, who overdosed and died. Lee had obtained two bags of controlled substances from his dealer – one contained cocaine, the other fentanyl. Lee regularly sold cocaine to the victim. Intending to distribute cocaine, Lee distributed fentanyl to the victim, who used the drugs, overdosed, and died. Text messages from both the victim’s and Lee’s phones confirmed these events and Lee provided a confession to law enforcement.
Lee was indicted in March 2022
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
Lee is currently scheduled to be sentenced on April 28. He faces a sentence of 20 years to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
The investigation was conducted by the DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorneys David Kiebler and Todd Bradbury.
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Fayette County Man Sentenced to 32 Years for Cocaine and Fentanyl TraffickingRead the Press Release
LEXINGTON, Ky. – A Lexington man, Maurice A. Taylor, 44, was sentenced on Thursday to 385 months in federal prison, by Chief U.S. District Judge Danny C. Reeves, for two counts of possession with intent to distribute cocaine (five kilograms and 500 grams) and one count of possession with intent to distribute 400 grams of fentanyl.
According to Taylor’s plea agreement, law enforcement was conducting an investigation into a residence that was being used to unload large shipments of illegal drugs. On or about October 19, 2020, a trailer arrived at the residence and was pulled into the garage. Shortly thereafter, Taylor had a woman come to the residence, where Taylor placed an item in her vehicle. When she was stopped by police, she was in possession of approximately three kilograms of cocaine. Inside the residence, police also found approximately 182 grams of a substance containing fentanyl.
Later, law enforcement was conducting a similar investigation, at a second residence, also involving the unloading of large shipments of drugs from a trailer. On or about August 19, 2021, Taylor was followed to this second residence, where he waited for the resident to arrive. Upon her arrival, they went into the residence and stayed for a few minutes. Taylor then exited the residence with something under his shirt. When he was apprehended, he was in possession of approximately one kilogram of cocaine and $18,166 in cash. After his arrest, a search warrant was executed at the second residence, where law enforcement found an additional 7.9 kilograms of fentanyl.
Taylor pleaded guilty in July 2022.
“The defendant was dealing in massive amounts of illicit drugs, including more than eight kilograms of fentanyl, ” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Fentanyl can be deadly in very small amounts – as little as two milligrams – meaning he had millions of potentially lethal doses of this incredibly dangerous drug. For that reason, there can be little question that this investigation and arrest saved countless lives and dodged a massive impact on our community. He unquestionably deserves the sentence imposed and I commend the dedicated work of all our law enforcement partners, whose efforts made this prosecution possible – and this community safer.”
"For years, Mr. Taylor has trafficked illicit drugs throughout the Lexington community wreaking havoc on countless families," said Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office. "Through steadfast collaboration with the Lexington Police Department, DEA, U.S. Attorney 's Office - EDKY, he will now spend the better part of the rest of his life incarcerated. Today's sentence should send a clear message to those dealing illegal drugs, you will be held accountable."
“Individuals who cause harm and misery in their community through the sale of illicit drugs should bear the full brunt of the justice system,” said J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division. “Mr. Taylor preyed on vulnerable people and he must now account for his misdeeds by spending decades housed in a federal prison.”
“It takes all of us to keep our communities safe. I want to thank all of our federal partners who worked with the Lexington Police Department to apprehend and prosecute Mr. Taylor, said Chief Lawrence Weathers, Lexington Police Department. “Because of these efforts, we were able to stop an individual from supplying dangerous narcotics in our community.”
Under federal law, Taylor must serve 85 percent of his prison sentence. He will be under the supervision of the U.S. Probation Office for eight years after his release from prison.
United States Attorney Shier; FBI SAC Cohen; DEA SAC Scott; and Lexington Police Chief Weathers, jointly announced the sentencing.
The investigation was conducted by the FBI, DEA, and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Roger West.
This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.
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Ashland Man Convicted of Distributing and Possessing Child PornographyRead the Press Release
ASHLAND, Ky.- An Ashland, Ky., man was convicted on Friday by a federal jury in Ashland for charges related to child pornography.
After one hour of deliberations, following a three-day trial, the jury convicted 70-year-old Adam Fonso Childers of distributing and possessing child pornography.
According to testimony at trial, Childers was identified as being in the top 10 list of individuals sharing child pornography in Kentucky via a peer-to-peer file sharing program. An investigation was initiated and, between October 5-6, 2020, Childers was found to have distributed multiple files of child pornography using the peer-to-peer file sharing network. A search warrant was then obtained for Childers’ home. The search revealed that, over decades, Childers had acquired multiple forms of media found to contain child pornography. This media included magazines he acquired in the 1970s, binders of printed materials, multiple disks, seven external hard drives, and a desktop computer. In total, Childers possessed hundreds of thousands of images and videos of child pornography, include depictions of minors under the age of 12 engaged in sexually explicit activity.
Childers was indicted in March 2022.
“Not only did the defendant possess thousands of images of minors engaged in sexually explicit conduct, but he was also prolific in sharing them with others,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Combatting this despicable conduct is a core priority for our office and is critical to protecting our communities’ vulnerable youth. We commend the dedicated efforts of our law enforcements partners; without it, this prosecution would not have been possible.”
"Children are one of the Commonwealth’s most precious resources, yet one of its most vulnerable. Every year, thousands of minors fall victim to online predators seeking to exploit their innocence," said Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office. "Through dedicated work by FBI Louisville and our law enforcement partners, Mr. Childers’ conviction ensures that at least one predator will no longer cause irreparable harm to our society."
“Children are amongst the most valuable assets in our community, the Ashland Police Department will continue to proudly stand in defense of children and pursue those persons who foolishly attempt to exploit them,” said Chief W. Todd Kelley, Ashland Police Department.
U.S, Attorney Shier; FBI Special Agent in Charge Cohen; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Chief W. Todd Kelley, Ashland Police Department, jointly announced the conviction.
The investigation was conducted by FBI, KSP, and the Ashland Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Erin Roth and Mary Melton.
Childers will appear for sentencing on May 8, 2023. He faces a maximum of 20 years in prison on each count of conviction. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Scott County Man Sentenced for Wire FraudRead the Press Release
LEXINGTON, Ky. – A Georgetown, Ky., man, Ralph Tackett, 66, was sentenced to 33 months in federal prison on Monday, by Chief U.S. District Judge Danny C. Reeves, for wire fraud.
According to the agreed facts presented, Tackett was the treasurer of a church in Georgetown, who embezzled a total of $512,042.00, in part through the commission of wire fraud. Tackett admitted, among other facts, that from December 2015 until July of 2019, he stole money directly from the church, by transferring funds to pay on his personal credit cards, by issuing checks which he deposited into his own personal and business accounts for his own benefit, and by unlawfully transferring money in other ways, to meet the demands of a third-party. Throughout this time, Tackett concealed the true nature of the church’s expenditures from the church Pastor and Board members, by exploiting his position of trust and the access he wielded as the organization’s treasurer. The church endured substantial financial hardship as a result of Tackett’s theft.
As part of his sentence, Tackett was ordered to pay restitution in the amount of $532,807.46 to the church. This amount includes the amount of money he embezzled directly, as well as the additional costs the church was found to have incurred as a direct result of Tackett’s crime.
Under federal law, Tackett must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant United States Attorney Tashena A. Fannin.
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Man Sentenced for Integral Role in Sophisticated International Fraud SchemeRead the Press Release
LEXINGTON, Ky. – A Romanian national was sentenced on Monday to 89 months in prison for his role in a transnational, multimillion-dollar scheme to defraud American victims. He is the 24th member of the organized criminal group to be sentenced, of the 28 who were charged.
Ionut-Razvan Sandu, 35, of Romania, pleaded guilty in April 2022 to conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense. Four other defendants pleaded guilty to this offense and were sentenced for their roles in the conspiracy between Nov. 16 and 18, 2022, including: Rafael-Liviu Cucu, 33, of Romania to 61 months; Alexandru-Catalin Calin, 40, of Romania, to 61 months; Ciprian-Ionut Filip, 37, of Romania to 70 months; and Gabriel Constantin Georgescu, 37, of Romania to 63 months.
“This highly organized and sophisticated syndicate stole directly from the pockets of hard-working Americans. The criminals then used digital currency to launder their ill-gotten gains,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s result is proof that the Criminal Division and our law enforcement partners will never stop pursuing cybercriminals who target the American public—no matter where these criminals reside, and no matter what tools they use to hide.”
“Cybercrime is an increasingly prevalent means for criminals to prey on the public, causing victims, from across the United States, to lose millions of dollars,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “To continue to protect Americans against organized cybercrime, cooperation and coordination among law enforcement is essential. This case is the result of a massive, years-long effort by the U.S. Secret Service to coordinate the investigation of this crime and identify and apprehend the offenders. I commend the exceptional work done by all our law enforcement partners, and we are proud to have joined this cooperative effort to prosecute this significant cyber fraud scheme.”
“Financial crimes that take place in the cyber domain have a very real impact on everyday Americans and their families,” said Special Agent in Charge Robert Holman of the U.S. Secret Service Louisville Field Office. “The Secret Service remains committed to investigating such crimes, and we appreciate the continued support of our local, state, federal, and international law enforcement partners as we work together to bring those responsible to justice.”
According to plea documents, beginning as early as October 2014, Sandu and other members of the criminal organization collectively developed a process and offered a service by which co-conspirators based in the United States and abroad would launder the proceeds of online auction fraud.
According to court documents, Georgescu, Filip, and other co-conspirators posted false advertisements to popular online auction and sales websites, such as eBay, for goods that did not actually exist. Members of the conspiracy created fictitious online accounts to post these advertisements and communicate with victims, sometimes using the stolen identities of Americans to do so. The advertisements typically marketed the sale of used vehicles or similar goods and targeted working-class Americans.
Members of the conspiracy used several tactics to convince victims to send money for the advertised goods. For example, they impersonated a military member who needed to sell the advertised item before deployment. In furtherance of the scheme, the defendants delivered invoices to the victims bearing trademarks of reputable companies to make the transaction appear legitimate. The defendants also set up call centers to impersonate customer support, address questions, and alleviate concerns over the advertisements.
Once victims had sent payment, members of the conspiracy engaged in a complex money laundering scheme offered by Sandu and others wherein U.S.-based conspirators received victim funds, converted those funds to cryptocurrency, and transferred proceeds in the form of cryptocurrency to foreign-based money launderers. Those foreign-based money launderers, such as Cucu and Calin, would then work with other members of the conspiracy to convert the bitcoin back into fiat currency. Sandu was held responsible for laundering over $3.5 million worth of fraudulent proceeds. To date, law enforcement has identified over 900 victims of this scheme.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime), the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime), and the Supreme Prosecutor’s Office of Cassation of the Republic of Bulgaria. The Justice Department’s Office of International Affairs and Criminal Division’s Money Laundering and Asset Recovery Section provided significant support.
This case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kathryn M. Dieruf of the U.S. Attorney’s Office for the Eastern District of Kentucky.
Individuals who believe they may be victims of the online auction fraud scheme described herein are encouraged to visit the following website to obtain more information: www.justice.gov/usao-edky/information-victims-large-cases.
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Knott County Man Sentenced to 298 Months for Armed Fentanyl and Methamphetamine TraffickingRead the Press Release
PIKEVILLE, Ky. – A Pippa Passes, Ky., man, Tony Minor, 44, was sentenced on Tuesday to 298 months in federal prison, by U.S. District Judge Robert Wier, for possession with intent to distribute methamphetamine and fentanyl, and possession of a firearm in furtherance of drug trafficking.
According to Minor’s plea agreement, on February 10, 2022, law enforcement attempted to stop a vehicle in which Minor was an occupant. Minor ran from law enforcement, who eventually apprehended him and found baggies, a scale, and over 100 grams of methamphetamine on his person. Law enforcement then searched Minor’s residence and found additional drugs, including over 40 grams of fentanyl and a loaded firearm. Minor possessed this firearm to protect himself from the dangers of drug trafficking and was not legally permitted to possess the firearm because he was a convicted felon.
Minor pleaded guilty to the current charges in August 2022. Minor was previously convicted of a drug trafficking felony in the Knott County Circuit Court.
Under federal law, Minor must serve 85 percent of his prison sentence. He will be under the supervision of the U.S. Probation Office for eight years after his release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; and Sheriff Dale Richardson, Knott County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the FBI, KSP, and Knott County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Man Sentenced for Integral Role in Sophisticated International Fraud SchemeRead the Press Release
A Romanian national was sentenced today to 89 months in prison for his role in a transnational, multimillion-dollar scheme to defraud American victims. He is the 24th member of the organized criminal group to be sentenced, of the 28 who were charged.
Ionut-Razvan Sandu, 35, of Romania, pleaded guilty in April 2022 to conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense. Four other defendants pleaded guilty to this offense and were sentenced for their roles in the conspiracy between Nov. 16 and 18, 2022, including: Rafael-Liviu Cucu, 33, of Romania to 61 months; Alexandru-Catalin Calin, 40, of Romania, to 61 months; Ciprian-Ionut Filip, 37, of Romania to 70 months; and Gabriel Constantin Georgescu, 37, of Romania to 63 months.
“This highly organized and sophisticated syndicate stole directly from the pockets of hard-working Americans. The criminals then used digital currency to launder their ill-gotten gains,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s result is proof that the Criminal Division and our law enforcement partners will never stop pursuing cybercriminals who target the American public—no matter where these criminals reside, and no matter what tools they use to hide.”
“Cybercrime is an increasingly prevalent means for criminals to prey on the public, causing victims, from across the United States, to lose millions of dollars,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “To continue to protect Americans against organized cybercrime, cooperation and coordination among law enforcement is essential. This case is the result of a massive, years-long effort by the U.S. Secret Service to coordinate the investigation of this crime and identify and apprehend the offenders. I commend the exceptional work done by all our law enforcement partners, and we are proud to have joined this cooperative effort to prosecute this significant cyber fraud scheme.”
“Financial crimes that take place in the cyber domain have a very real impact on everyday Americans and their families,” said Special Agent in Charge Robert Holman of the U.S. Secret Service Louisville Field Office. “The Secret Service remains committed to investigating such crimes, and we appreciate the continued support of our local, state, federal, and international law enforcement partners as we work together to bring those responsible to justice.”
According to plea documents, beginning as early as October 2014, Sandu and other members of the criminal organization collectively developed a process and offered a service by which co-conspirators based in the United States and abroad would launder the proceeds of online auction fraud.
According to court documents, Georgescu, Filip, and other co-conspirators posted false advertisements to popular online auction and sales websites, such as eBay, for goods that did not actually exist. Members of the conspiracy created fictitious online accounts to post these advertisements and communicate with victims, sometimes using the stolen identities of Americans to do so. The advertisements typically marketed the sale of used vehicles or similar goods and targeted working-class Americans.
Members of the conspiracy used several tactics to convince victims to send money for the advertised goods. For example, they impersonated a military member who needed to sell the advertised item before deployment. In furtherance of the scheme, the defendants delivered invoices to the victims bearing trademarks of reputable companies to make the transaction appear legitimate. The defendants also set up call centers to impersonate customer support, address questions, and alleviate concerns over the advertisements.
Once victims had sent payment, members of the conspiracy engaged in a complex money laundering scheme offered by Sandu and others wherein U.S.-based conspirators received victim funds, converted those funds to cryptocurrency, and transferred proceeds in the form of cryptocurrency to foreign-based money launderers. Those foreign-based money launderers, such as Cucu and Calin, would then work with other members of the conspiracy to convert the bitcoin back into fiat currency. Sandu was held responsible for laundering over $3.5 million worth of fraudulent proceeds. To date, law enforcement has identified over 900 victims of this scheme.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime), the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime), and the Supreme Prosecutor’s Office of Cassation of the Republic of Bulgaria. The Justice Department’s Office of International Affairs and Criminal Division’s Money Laundering and Asset Recovery Section provided significant support.
This case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kathryn M. Dieruf of the U.S. Attorney’s Office for the Eastern District of Kentucky.
Individuals who believe they may be victims of the online auction fraud scheme described herein are encouraged to visit the following website to obtain more information: www.justice.gov/usao-edky/information-victims-large-cases.
Bourbon County Man Sentenced to 97 Months for Armed Fentanyl Trafficking and Possession of a Firearm by a Convicted FelonRead the Press Release
FRANKFORT, Ky. – A Paris, Ky., man, Jalen Jones, 26, was sentenced on Thursday to 97 months in federal prison, by U.S. District Judge Gregory VanTatenhove, for distribution of fentanyl, carrying a firearm during a drug trafficking crime, and possession of a firearm by a convicted felon.
According to Jones’ plea agreement, on November 28, 2021, Jones was found in possession of 12.5 grams of fentanyl, following a traffic stop. He was arrested but later released on bond conditions. Following that release, law enforcement conduct three controlled purchases of fentanyl and firearms from Jones. Jones admitted that he was prohibited from owning firearms, as he had been previously convicted of felony offenses.
Jones pleaded guilty to the current charges in October 2022. Jones previously had been convicted of two counts of trafficking a controlled substance in April 2015, and wanton endangerment in April 2015.
Under federal law, Jones must serve 85 percent of his prison sentence. He will be under the supervision of the U.S. Probation Office for six years after his release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; and Chief Myron Thomas, Paris Police Department, jointly announced the sentence.
The investigation was conducted by ATF, the Paris Police Department, and the Bluegrass Narcotics Task Force. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Two Northern Kentucky Men Sentenced for Armed Drug TraffickingRead the Press Release
COVINGTON, Ky.— A Covington man, Anthony Michaelis, 34, and an Alexandria, Ky., man, Blake Barnes, 23, were sentenced to 258 months and 60 months in federal prison, respectively, on Tuesday, by U.S. District Judge David Bunning, for possession of controlled substances, including fentanyl, methamphetamine, and cocaine, with intent to distribute them, and brandishing a firearm in furtherance of their drug trafficking.
According to Michaelis’ plea agreement, on January 16, 2022, individuals at a Circle K store in Dayton, Ky., approached police and told officers that two men, later identified as Michaelis and Barnes, had approached them at a gas pump and offered to sell them controlled substances. During this encounter, Michaelis pulled out a handgun and pointed it at the group. Law enforcement subsequently located Michaelis and Barnes and recovered the handgun. Barnes was wearing a backpack that contained over 12 grams of fentanyl and over 3 grams of actual methamphetamine. Officers located a bag of white powder containing over 23 grams of cocaine in the Michaelis’s pants pocket. In 2021, Michaelis had previously been found with over 70 grams of cocaine and 346 grams of marijuana that he intended to distribute, as well as $5,320.00 in currency.
Michaelis pleaded guilty to the charge in August 2022. Barnes pleaded guilty in September 2022. Michaelis has previous felony convictions for robbery, assaulting a police officer, and assaulting a prison inmate.
Under federal law, both must serve 85 percent of their prison sentences. Upon their release from prison, Michaelis will be under the supervision of the U.S. Probation Office for six years, and Barnes will be under supervision for five years.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Chief David Halfhill, Dayton Police Department; and Chief Brian Valeni, Covington Police Department, jointly announced the sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Dayton Police Department; and the Covington Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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Michigan Man Sentenced to 105 Years for Armed Drug Trafficking and Attempted RobberyRead the Press Release
LONDON, Ky.— A Flint, Michigan man, Charles Ray Edwards, 39, was sentenced to 105 years in federal prison on Tuesday, by U.S. District Judge Robert E. Wier, after being convicted of armed drug trafficking and attempted robbery.
In July 2022, Edwards was convicted of heroin trafficking, fentanyl trafficking, conspiracy to distribute both substances, felon in possession of a firearm, use of a firearm in furtherance of the drug trafficking, and for his role in an attempted Hobbs Act robbery at a convenience store. His trafficking and robbery offenses involved three shooting victims, including the death of a bystander in the convenience store.
According to testimony at trial, Edwards was dealing heroin and fentanyl in Southeastern Kentucky region. As part of his drug trafficking crimes, Edwards wounded two individuals in a shooting incident in Knox County. Then, during the attempted robbery, a bystander in the store was shot and killed. Edwards has a prior felony conviction and was prohibited from possessing firearms.
“Charles Edwards was trafficking in dangerous drugs, attempted to hold up a store, was involved in multiple shootings – one resulting in the death of a bystander – and did all this with firearms he was prohibited from possessing,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “There is little question his conduct warrants the sentence imposed, and that our communities will now be safer for his incarceration. We will prioritize the prosecution of those who engage in such reckless and destructive violence and continue to do our part to protect our communities. We hope this will provide some sense of justice to the victims and are grateful for the critical efforts of our law enforcement partners.”
“ATF’s core mission is to protect the public from violent criminals like Charles Edwards,” said ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “Armed drug trafficking and violence go hand in hand. Today, Edwards was held accountable for his actions because of the hard work of our ATF London Office, Kentucky State Police, Williamsburg Police Department, and the U.S. Attorney’s Office. This investigation demonstrates our continued commitment to stopping violent criminals and the drug traffickers that plague our Eastern Kentucky communities.”
United States Attorney Shier; ATF SAC Morrow; Colonel Phillip Burnett Jr., Commissioner, Kentucky State Police; and Chief Jason Caddell, Williamsburg Police Department, jointly announced the sentence.
The investigation was conducted by the ATF, KSP, and Williamsburg Police Department. The United States was represented in the case by Assistant U.S. Attorneys Jenna Reed and Jason Parman.
This case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. The PSN program involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Jessamine County Man Sentenced to 20 Years in Prison for Production of Child PornographyRead the Press Release
LEXINGTON, Ky.— A Nicholasville, Ky., man, Noah James Grimes, 30, was sentenced to 20 years in federal prison on Monday, by U.S. District Judge Karen C. Caldwell, after pleading guilty to enticing a minor to engage in sexually explicit conduct outside the United States, with the purpose of producing a visual depiction of that conduct.
According to Grime’s guilty plea, a minor victim from Ontario, Canada, told their parent that someone had taken sexually explicit pictures of them at daycare. That person had been talking on a video chat with Grimes around the time the pictures were taken. Law enforcement discovered that the person who had taken the sexually explicit photos of the minor had been asked to do so by Grimes and had previously sent pictures of herself to Grimes, when she was a minor. A search warrant of Grimes phones revealed more than a hundred images of minor males, under the age of 12. Grimes admitted to knowingly persuading someone to produce sexually explicit images outside the United States and having those images sent to him.
Grimes pleaded guilty to the charge in January 2022.
Under federal law, Grimes must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Chief Frank Bergen, Hamilton Police Department, Ontario, Canada; and Chief Bryan MacCulloch, Niagara Regional Police Service, Ontario, Canada, jointly announced the sentence.
The investigation was conducted by the FBI, the Hamilton Police Department and Niagara Regional Police Service. The United States was represented by Assistant U.S. Attorney David Marye.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Final Defendant Sentenced to Life in Prison for Role in Deadly Lexington KidnappingsRead the Press Release
LEXINGTON, Ky. — A Lexington man, Ramon Camacho Zepeda, 54, was sentenced to life in in federal prison, on Friday, by U.S. District Judge Karen Caldwell, after previously being convicted of conspiracy to commit kidnapping and interstate transportation of stolen automobiles.
According to evidence presented at trial, the charges stemmed from the kidnappings of two individuals, identified in court records as J.O. and M.A.T.O. Both victims were killed during the commission of the kidnappings. Their bodies were discovered in the trunk of a Volkswagen Jetta, on September 11, 2017, at 430 Blue Sky Parkway, in Lexington. That location was an automotive repair business owned by J.O. Two vehicles belonging to J.O. were stolen during the offenses and transported to Wilkes-Barre, Pennsylvania. Evidence presented at trial revealed that Camacho Zepeda and Diaz Barraza were distributing kilogram quantities of cocaine and heroin in Lexington, and that J.O. had incurred a debt to them, based on his involvement in the drug trafficking. Testimony by a pathologist from the Kentucky Medical Examiner’s Office established that J.O.’s cause of death was attributed to “chop wounds” to the head and asphyxiation. The second victim, M.A.T.O., died from asphyxiation.
Zepeda, Rosario Diaz Barraza, 32, of Phoenix, and John Carlos Betancourt, 27, of Penuelas, Puerto Rico, were convicted at trial in April 2022. Diaz Barraza was sentenced in September 2022 to 35 years in prison, followed by five years of supervised release. Betancourt was sentenced in July 2022 to 84 months in prison, followed by three years of supervised release.
Additionally, Serrano-Jimenez pled guilty as charged to conspiracy to commit kidnapping in the case. On October 6, 2022, he received 168 months in prison, followed by five years of supervised release. Finally, Jose Felix Tlatenchi, of Wilkes- Barre, pled guilty to an information as an accessory after the fact to the kidnapping. He was sentenced to 120 months and a term of SR
Under federal law, Zepeda must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
“This sentence brings to close the prosecution of a horrific crime,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Unfortunately, in addition to the severe damage of abuse and addition, the illegal drug trade often brings with it dramatic violence. Here, two people brutally lost their lives, and the sentences imposed are unquestionably warranted. Bringing those responsible for this awful crime to justice involved tireless, dedicated, and remarkable work, by both our trial team and our law enforcement partners, across several states. Those who continue to engage in this dangerous trade should know that we are committed and will continue to use all the resources available to us to combat it.”
“This case perfectly illustrates the brutal nature of drug trafficking; two individuals suffered a violent end because they got mixed up with the wrong crowd,” said Special Agent in Charge J. Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “Lexington is a safer community today, with one more violent offender sentenced to prison for committing these barbaric acts.”
United States Attorney Shier; DEA Special Agent in Charge Scott; Colonel Phillip Burnett, Commissioner, Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentencing.
The lengthy investigation was conducted primarily by the Lexington Police Department, the Drug Enforcement Administration, and the Kentucky State Police. Multiple additional law enforcement agencies also provided valuable assistance, including the Wilkes-Barre, Pennsylvania Police Department, the Reading, Pennsylvania Police Department, the Pennsylvania State Police, the New York City Police Department, the Harlingen, Texas Police Department, and the U.S. Department of Homeland Security Investigations. The United States was represented in the case by Assistant U.S. Attorneys Todd Bradbury and Francisco Villalobos.
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Williamsburg Woman Sentenced for Social Security FraudRead the Press Release
LONDON, Ky. – A Williamsburg, Ky., woman, Jennifer Lee West, 60, was sentenced Tuesday to 4 months in federal prison, by U.S. District Judge Robert Wier, for committing Social Security fraud.
According to court documents, in December 2005, West requested to be the representative payee for a “Lorene Bryant,” who was receiving SSI benefits through the Social Security Administration. However, that person did not exist; this was actually a false alternative identity of the defendant’s mother. The defendant, with knowledge that this was not a real person, was fraudulently approved as the representative payee and falsely represented herself to be the child of the false identity. From 2006 through 2020, the Defendant perpetuated the fraud, by annually completing false Representative Payee Reports. The total loss of taxpayer funds from the fraud was $117,615.
West was also ordered to pay $117,615 in restitution.
Following her release from prison, West will be under the supervision of the U.S. Probation Office for two years. Her supervised release conditions also include two months of home detention and 40 hours of community service per year.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky, and Marvin D. Mauldin, Resident Agent-in-Charge, SSA Office of the Inspector General, jointly announced the sentence.
The investigation was conducted by SSA-OIG. The United States was represented by Special Assistant U.S. Attorney James Chapman.
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Boyd County Man Sentenced to Life for Violent KidnappingRead the Press Release
ASHLAND, Ky. – A Catlettsburg, Ky., man, Jonathan Lee Smithers, 41, was sentenced to life in federal prison on Monday, before U.S. District Judge David Bunning, following his conviction for kidnapping.
In his guilty plea agreement, Smithers admitted that, on May 1, 2022, he physically abused a victim with whom he had been in a romantic relationship. Then, under threat of force and using a firearm, he made the victim accompany him to a store, where he brandished the weapon, assaulted her with the weapon, and confined her inside the vehicle. Smithers then drove her to the Flatwoods area. After again confining her inside the vehicle, Smithers stopped the vehicle and forced her to exit. Thereafter, still armed, he forced her to accompany him on foot, requiring her to climb fences, trespass on private property, and navigate random routes around the area for several hours. She was eventually able to escape and hide from Smithers, and law enforcement found her collapsed at a gas station.
After the victim’s escape, Smithers remained in the area on foot. Local law enforcement responded and Smithers was spotted coming out of the woods. When approached by law enforcement, Smithers shot the responding officer in the throat. The wounded officer survived life-threatening injuries.
“Not only did he use a firearm to abduct, terrify, and assault someone he was in a relationship with, he shot and seriously wounded a law enforcement officer responding to the scene,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Fortunately, through the dedicated work of our law enforcement partners, he must now pay the costs of his astonishing conduct. Protecting our communities from violence is one of our highest priorities and we assume this sentence will serve as an example of the considerable consequences that can face those who engage in such stark acts of violence.”
“Today’s sentence ensures that an incredibly violent offender has been removed from the streets and will no longer be a threat to society. Mr. Smithers not only tragically kidnapped his trusted partner and led her on a series of terrorizing demands, but he then seriously wounded a local police officer,” said Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office. “FBI Louisville is grateful to our federal, state, and local law enforcement partners for their dedication to keeping our communities safe and will continue to work tirelessly to protect our citizens from violent criminals.”
United States Attorney Shier; Special Agent in Charge Cohen; Colonel Phillip Burnett, Commissioner of the Kentucky State Police; Chief Todd Kelley, Ashland Police Department; and Chief David Smith, Flatwoods Police Department, jointly announced the sentence.
The investigation was conducted by the FBI, KSP, Ashland Police Department, and Flatwoods Police Department. The United States was represented by Assistant U.S. Attorney Erin Roth.
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Boyd County Man Sentenced to 108 Months for Fentanyl Trafficking and Possession of Firearm by a Convicted FelonRead the Press Release
ASHLAND, Ky. – An Ashland man, Thomas Bentley, 38, was sentenced on Friday to 108 months in federal prison, by U.S. District Judge David Bunning, for possession with intent to distribute 40 grams of more of fentanyl and being a felon in possession of a firearm.
According to his plea agreement, on March 18, 2022, law enforcement responded to trespassing call from a store in Cannonsburg, Ky., and when they arrived at the scene, they found Bentley, in his car in the parking lot. Bentley was found with 53.8 grams of a heroin and fentanyl mixture, drug paraphernalia, $2,826 in cash, and a loaded firearm. Bentley admitted that he had previously been convicted of a felony and was prohibited from possessing a firearm.
Bentley had been convicted of possession of heroin, in February 2021. Bentley pleaded guilty to the current charge in August 2022.
Under federal law, Bentley must serve 85 percent of his prison sentence. He will be under the supervision of the U.S. Probation Office for four years after his release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Sheriff Bobby Jack Woods, Boyd County Sherriff’s Office, jointly announced the sentence.
The investigation was conducted by the DEA and Boyd County Sherriff’s Office. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Estill County Man Sentenced to 71 Months for Illegal Possession of a Firearm as Convicted FelonRead the Press Release
LEXINGTON, Ky. – An Irvine, Ky., man, Farrell Marcum, 58, was sentenced on Friday to 71 months in federal prison, by Chief U.S. District Judge Danny Reeves, for possession of a firearm as a convicted felon.
According to his plea agreement, on March 29, 2021, law enforcement received a call from a local hospital that a man had been shot. It was later discovered that the man had been shot at Marcum’s residence, where Marcum told him to get off his property and then shot the man while he was leaving the property in his car. At the residence, law enforcement found Marcum in possession of the firearm. Marcum admitted that he knew he was a convicted felon and was prohibited from possessing a firearm.
Marcum was previously convicted of being a felon in possession of a firearm and possession of a stolen firearm. Marcum pleaded guilty to the current charge in August 2022.
Under federal law, Marcum must serve 85 percent of his prison sentence. He will be under the supervision of the U.S. Probation Office for three years after his release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; and Sheriff Christ Flynn, Estill County Sherriff’s Office, jointly announced the sentence.
The investigation was conducted by ATF and the Estill County Sherriff’s Office. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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High-Ranking Aryan Circle Gang Leader and Member Sentenced on Racketeering-Related ViolationsRead the Press Release
Two members of the Aryan Circle were sentenced this week for crimes they committed as part of their roles in the white supremacy prison gang.
William Glenn Chunn, aka Big Head, 40, of Conroe, Texas, was sentenced yesterday to life imprisonment for Racketeer Influenced and Corrupt Organizations (RICO) violations stemming from his leadership in the organization. On Nov. 26, 2021, he was convicted by a jury in the Eastern District of Texas of racketeering conspiracy for an attempted murder he ordered relating to a violent stabbing. On Oct. 3, he was also convicted by a jury in the Southern District of Mississippi of Violent Crime in Aid of Racketeering (VICAR) Attempted Murder and is awaiting sentencing in that case.
According to court documents and evidence presented at trial, Aryan Circle is a race-based and violent prison gang with hundreds of members operating throughout the country, both inside and outside of prisons. The Aryan Circle enforces its rules and promotes discipline among its members, prospects, and associates through threats, intimidation, and acts of violence including, but not limited to, acts involving assault and murder. Members are required to follow the orders of higher-ranking members without question.
Evidence presented at trial demonstrated that Chunn is one of the highest-ranking Aryan Circle leaders in the nation. He used his leadership role to order violent stabbings against rival gang members and other victims, as well as to seek out and retaliate against those he believed were cooperating with law enforcement.
In another case, Mitchell Farkas, aka Lifter, 52, of Baton Rouge, Louisiana, was sentenced on Dec. 5 to 30 years in prison for VICAR Attempted Murder and related charges stemming from his role in a separate violent prison stabbing he committed on behalf of the Aryan Circle. On Aug. 10, he was convicted by a jury in the Eastern District of Kentucky. Evidence presented at trial demonstrated that Farkas, along with another Aryan Circle member, stabbed an inmate at USP Big Sandy in Martin County, Kentucky, who the Aryan Circle believed had violated gang rules. As a result, the victim permanently lost vision in one eye.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Brit Featherston for the Eastern District of Texas, and U.S. Attorney Carlton S. Shier, IV for the Eastern District of Kentucky made the announcement.
The cases were investigated by the following agencies: the ATF; DEA; BOP; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) Prosecutor’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office. The Organized Crime Drug Enforcement Task Forces provided valuable assistance.
Trial Attorney Rebecca Dunnan of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Christopher Rapp for the Eastern District of Texas, and Assistant U.S. Attorney Gregory Rosenberg for the Eastern District of Kentucky prosecuted the cases.
Pikeville Medical Center to Pay $4.39 Million to Resolve Alleged Controlled Substance Act Violations That Allowed Drug DiversionRead the Press Release
LEXINGTON, Ky. — The United States Attorney’s Office for the Eastern District of Kentucky announced that Pikeville Medical Center (“PMC”) has agreed to pay the United States $4,394,600 in civil penalties, to resolve allegations that its violations of the Controlled Substances Act’s (“CSA”) recordkeeping provisions resulted in significant diversion of dangerous opioids from its pharmacy. The settlement is one of the nation’s largest relating to CSA recordkeeping violations involving allegations of drug diversion at a hospital. The settlement is the third-largest civil penalty ever obtained from a hospital system under the CSA.
As a registrant with the U.S. Drug Enforcement Administration (“DEA”), PMC had certain recordkeeping obligations, which included maintaining complete and accurate records of each controlled substance received, dispensed, and disposed. DEA has the authority to inspect the records of registrants like PMC, to verify that their records are complete, accurate, and in compliance with the CSA.
In settlement documents, the Government contends that over a two-year period, PMC violated multiple provisions of the CSA relating to recordkeeping, including by failing to maintain complete and accurate inventories and dispensing records for Schedule II controlled substances. The Government alleges that as a result of these failures, a PMC pharmacy technician was able to divert more than 60,000 dosage units of oxycodone, hydrocodone, and methadone from PMC’s narcotics vault and Pyxis MedStations, from January 1, 2016, through September 7, 2018. The controlled substances diverted from PMC ultimately were distributed by the pharmacy technician’s husband to the community. Both the PMC pharmacy technician and her husband have pled guilty to violating 21 U.S.C. § 846, conspiracy to distribute Schedule II controlled substances, in the matter of United States v. Perry et al., 7:20-cr-12.
“As the opioid crisis continues to plague communities in Kentucky, hospitals like PMC have a responsibility and critical role to play. They must ensure that controlled substances are carefully tracked and protected against theft and loss, so that these drugs are not diverted for illegal uses,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “My office will continue to seek appropriate civil penalties from healthcare providers who are careless with their recordkeeping and fail to provide effective safeguards against drug diversion.”
“All DEA registrants, to include hospitals and healthcare providers, are obligated to adhere to the strict record-keeping requirements outlined in the Controlled Substances Act; failure to do so often leads to the diversion of controlled substances,” said Special Agent in Charge Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “The size of this fine shows how serious this situation is. Hopefully, Pikeville Medical Center will do a better job in the future with their record keeping and the resulting harm inflicted on the community can be reversed.”
As part of the settlement, PMC has entered into a three-year Memorandum of Agreement with DEA, which prescribes the hospital’s drug-handling responsibilities going forward. These steps include:
- Permitting DEA personnel to enter its registered location at any time during regular business hours without an administrative inspection warrant, and without prior notification to PMC, to verify compliance with the Memorandum of Agreement;
- Conducting an inventory of select controlled substances every six months and providing the results to DEA;
- Investigating and documenting any concerns about diversion, employee theft, or significant loss of controlled substances;
- Reporting suspicious controlled substance incidents to DEA on a quarterly basis; and
- Providing mandatory training on federal laws and regulations pertaining to controlled substances for all employees and contract personnel who have access to controlled substances.
PMC cooperated with the DEA’s investigation and self-reported the diversion. As recognized in the Memorandum of Agreement, PMC took substantial steps to address its deficiencies in its handling of controlled substances before the settlement was entered.
A main objective of the CSA is controlling illegitimate traffic in controlled substances. To prevent the diversion of controlled substances, the CSA regulates persons and entities that manufacture, distribute, and dispense controlled substances. The Government’s investigation and resolution of this matter illustrates its continued emphasis on combating the prescription opioid crisis by ensuring that opioids are not diverted. Anyone with concerns about prescription drug diversion can report them to the DEA, by submitting a tip at https://www.dea.gov/submit-tip.
The case was investigated by the Drug Enforcement Administration’s London Resident Office Diversion Group, with assistance from the Kentucky Board of Pharmacy, and handled by the U.S. Attorney’s Office’s Affirmative Civil Enforcement section, including Assistant U.S. Attorneys Meghan Stubblebine and Mary Melton. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Florida Company Sentenced to $2.5 Million Fine for Unlawful Distribution of Anabolic SteroidsRead the Press Release
FRANFORT, Ky. — A Florida company, Modern Therapy, LLC, was sentenced on Friday to pay a $2.5 million fine by U.S. District Judge Gregory VanTatenhove for the unlawful distribution of anabolic steroids.
Modern Therapy operated out of Hallandale Beach, Florida. According to its plea agreement, it marketed anabolic steroids, human growth hormone, and related products to customers over the Internet. Anabolic steroids are a Schedule III controlled substance and may only be issued pursuant to a valid prescription for a legitimate medical purpose. Modern Therapy paid physicians for use of their electronic signatures, which were applied to anabolic steroid prescriptions for customers the doctors never examined. Modern Therapy sold and shipped steroids, HGH, and related products to customers across the country, including numerous Kentucky customers. According to Modern Therapy’s plea agreement, between January 1, 2014 and February 1, 2020, the company received more than $25 million in customer payments for these illegally distributed products.
Modern Therapy pleaded guilty to a conspiracy to unlawfully distribute controlled sustances in June 2022. In addition to the $2.5 million fine, the sentence includes an $11 million forfeiture money judgment. In a parallel civil forfeiture case, Modern Therapy agreed to forfeit three Florida residential properties purchased with proceeds of its crime, and $125,589 in currency seized from its bank accounts.\
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and George Scavdis, Special Agent in Charge, Metro Washington Field Office, U.S. Food and Drug Administration - Office of Criminal Investigations (FDA-OCI), jointly announced the sentence.
This investigation was conducted by FDA-OCI, with substantial assistance from the Kentucky State Police - Drug Enforcement/Special Investigations (DESI - East); the West Virginia State Police; the Harrison County Sheriff’s Office; the Broward County (Florida) Sheriff’s Office - Money Laundering Task Force; the Kentucky Cabinet for Health & Family Services - Office of Inspector General - Drug Enforcement & Professional Practices Branch, and the Florida Department of Health - Bureau of Enforcement. The United States was represented by Assistant U.S. Attorney Paul McCaffrey.
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Nashville Man Sentenced to 25 Years for Armed Methamphetamine Trafficking in KentuckyRead the Press Release
LONDON, Ky. – A Nashville, Tenn., man, Marlon Jermaine Johnson, 39, was sentenced Tuesday to 25 years in federal prison, by U.S. District Judge Claria Horn Boom, for possession with intent to distribute 500 grams or more of methamphetamine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm as a convicted felon.
According to evidence at trial, on November 18, 2019, Johnson led law enforcement officers with the Knox County Sheriff’s Department on a high-speed chase, through residential streets in Corbin, before crashing into a gate and a parked car. Johnson then fled on foot, into a cemetery, where he was ultimately apprehended. During a search of his vehicle, law enforcement located more than a kilogram of methamphetamine and a loaded firearm.
Johnson was convicted in July 2022.
Under federal law, Johnson must serve 85 percent of his prison sentence. He will be under the supervision of the U.S. Probation Office for five years after his release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division; and Sheriff Mike Smith, Knox County Sherriff’s Office, jointly announced the sentence.
The investigation was conducted by the Drug Enforcement Administration, the Knox County Sheriff’s Office, and Operation UNITE. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Fayette County Man Sentenced for Wire Fraud Related to COVID-19 ReliefRead the Press Release
LEXINGTON, Ky. – A Lexington man, Shaan Ti Diyali, 37, was sentenced on Monday to six months in federal prison, by U.S. District Judge Karen Caldwell, for wire fraud.
Evidence presented at trial established that Diyali’s personal information was used to apply for an Economic Injury Disaster Loan (EIDL) for an insurance business via an online portal. Diyali received an EIDL of $49,000. Once he received the funds, Diyali placed the funds in Robinhood, a stock exchange. Ultimately, Diyali lost all of the money he received from the EIDL. The evidence further established that the insurance business never conducted any business and never made income, rendering the income that was stated in the EIDL application false.
Diyali testified that he had no intent to defraud the United States, that a friend, whom he trusted, told him that the money was “free money,” and that his friend used Diyali’s personal information to apply for the loan. However, Diyali also admitted that he actually received the funds into his personal bank account and placed the funds into his Robinhood account.
Diyali was convicted in August 2022.
Under federal law, Diyali must serve 85 percent of his prison sentence. He will also be under the supervision of the U.S. Probation Office for two years after his release from prison. Diyali is also required to pay restitution to the United States.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; and Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; and Daniel Cameron, Kentucky Attorney General, jointly announced the sentences.
The investigation was conducted by the FBI, the Kentucky Attorney General’s Office, and the United States Small Business Administration. The United States was represented by Assistant U.S. Attorneys Ken Taylor and Andrea Mattingly Williams.
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Ohio Woman Sentenced to 168 Months for Methamphetamine ConspiracyRead the Press Release
COVINGTON, Ky – A Mason, Ohio, woman, Amanda Baker, 38, was sentenced on Tuesday to 168 months in prison, by U.S. District Judge David Bunning, for conspiracy to distribute 50 grams or more of methamphetamine.
According to her plea agreement, Baker was involved in a conspiracy that distributed multiple kilograms of crystal methamphetamine in Northern Kentucky and Southern Ohio. Law enforcement seized almost two kilograms of crystal methamphetamine from Baker and a co-conspirator, Jeremy Anderson, on April 26, 2021, at a hotel in Covington, Kentucky.
Baker pleaded guilty in August 2022.
Anderson was sentenced to 138 months in prison on August 16, 2022.
Under federal law, each Defendant must serve 85 percent of their prison sentence. Both will also be under the supervision of the U.S. Probation Office for five years after their release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Keith Martin, Special Agent in Charge, DEA Detroit Field Division; Scott Hardcorn, Director of the Northern Kentucky Drug Strike Force; and Brian Valenti, Chief of the Covington Police Department, jointly announced the sentences.
The investigation was conducted by the Drug Enforcement Administration, the Northern Kentucky Drug Strike Force, and the Covington Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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Cincinnati Man Sentenced to 262 Months for Methamphetamine and Fentanyl ConspiracyRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Tamar Pope, 36, was sentenced Tuesday to 262 months in federal prison, by U.S. District Judge David Bunning, for conspiracy to distribute 50 grams or more of methamphetamine and 400 grams or more of fentanyl, as well as aiding and abetting the distribution of 50 grams of methamphetamine.
According to his plea agreement, Pope supplied more than 30 pounds of crystal methamphetamine and 15 pounds of fentanyl to a conspiracy that distributed these substances in Northern Kentucky and Southern Ohio. Law enforcement seized significant amounts of methamphetamine from various conspiracy members in Kentucky and Ohio during the investigation.
Pope has four previous convictions for drug trafficking and had been released from prison in 2019.
Pope pleaded guilty to the current charges in June 2022.
Five other defendants have already been sentenced for their roles in the conspiracy. Robert Pflug was sentenced to 144 months; Holly McHenry was sentenced to 180 months; Thomas Powers was sentenced to 48 months; Travis Lelesch was sentenced to 84 months; and Allie Skirvin was sentenced to 202 months.
Under federal law, each Defendant must serve 85 percent of their prison sentence. Pope will be under the supervision of the U.S. Probation Office for five years after his release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Keith Martin, Special Agent in Charge, DEA Detroit Field Division; Bryan Allen, Chief of the Villa Hills Police Department; and Christopher Fangman, Chief of the Newport Police Department, jointly announced the sentences.
The investigation was conducted by the Drug Enforcement Administration, the Villa Hills Police Department, and the Newport Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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Wayne County Man Sentenced to 180 Months for Methamphetamine TraffickingRead the Press Release
LONDON, Ky.— An Albany, Ky., man, Jeremy Lynch, 42, was sentenced to 180 months in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, for conspiracy to distribute 500 grams or more of methamphetamine.
According to Lynch’s plea agreement, on February 25, 2019, law enforcement searched a hotel room occupied by Lynch, finding approximately one pound of methamphetamine. Additionally, law enforcement searched a vehicle being used by Lynch, finding another pound of methamphetamine. Lynch admitted that he was in possession of the methamphetamine and intended to distribute it to others in the Wayne County area.
Lynch had previously been convicted of a serious drug felony, manufacturing methamphetamine, in Jefferson County Circuit Court. Lynch pleaded guilty to the current charge in July 2022.
Under federal law, Lynch must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Chief Joey Hoover, Monticello Police Department; and Director Wayne Conn, Lake Cumberland Drug Task Force, jointly announced the sentence.
The investigation was conducted by the DEA, Monticello Police Department, and Lake Cumberland Drug Task Force. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
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Pulaski County Man Sentenced to 120 Months for Methamphetamine TraffickingRead the Press Release
LONDON, Ky.— A Somerset, Ky., man, Mark A. Bauer, 35, was sentenced to 120 months in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, for conspiracy to distribute 500 grams or more of methamphetamine.
According to Bauer’s plea agreement, he developed a relationship with multiple suppliers of methamphetamine, and he regularly obtained multi-ounce quantities for the purpose of distributing it to others in the area. On January 5, 2020, law enforcement served an arrest warrant on Bauer, finding multiple bags of methamphetamine on his person.
Bauer pleaded guilty in July 2022.
Under federal law, Bauer must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Chief William Hunt, Somerset Police Department; and Sheriff Greg Speck, Pulaski County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by FBI, Somerset Police Department, and the Pulaski County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
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Boyle County Man Sentenced to 360 Months for Production of Child PornographyRead the Press Release
LEXINGTON, Ky.— A Danville, Ky., man, Casey Scott Armstrong, 47, was sentenced to 360 months in federal prison on Monday, by U.S. District Judge Karen Caldwell, for production of child pornography.
Armstrong’s plea agreement confirms that, in March 2021, Armstrong began sharing methamphetamine with a minor female and, in May 2021, Armstrong began engaging in sexual acts with the same minor, later producing two videos of himself engaging in sex with the minor. The plea agreement also confirms that Armstrong gave methamphetamine and engaged in sex with another minor female in August 2021.
Armstrong pleaded guilty in August 2022.
Under federal law, Armstrong must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Filed Office; and Chief Tony Gray, Danville Police Department jointly announced the sentence.
The investigation was conducted by the FBI and Danville Police Department. The United States was represented by Assistant U.S. Attorneys Erin Roth and Mary Melton.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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U.S. Attorney’s Office Announces Agreement to Ensure Access to Medications for Opioid Use Disorder at Fayette County Detention CenterRead the Press Release
LEXINGTON, Ky. – United States Attorney Carlton S. Shier, IV, announced Tuesday that an agreement has been reached with the Lexington-Fayette Urban County Government’s Department of Community Corrections, to ensure that people who take medication to treat opioid use disorder (OUD) can remain on their medication while in custody at Fayette County Detention Center (FCDC), as required by the Americans with Disabilities Act (ADA).
The agreement resolves a U.S. Attorney’s Office ADA compliance review of FCDC, in which it was determined that, as a matter of policy, the facility did not provide most individuals with OUD with methadone and buprenorphine, medications that treat OUD. The settlement agreement requires FCDC to revise its policies to provide access to all three forms of medications to people with OUD and ensure that decisions about treatment are based on an individualized determination by qualified medical personnel.
“Eastern Kentucky has long been on the front lines of the opioid epidemic and our office remains committed to a comprehensive approach to fighting this public health crisis, including enforcement of the ADA’s requirements safeguarding treatment,” said U.S. Attorney Shier. “Access to medications that treat opioid use disorder saves lives, and we commend the Lexington-Fayette Urban County Government’s Department of Community Corrections for working collaboratively with our office to implement a policy that ensures access to this important treatment for the people in its custody.”
OUD is considered a disability under the ADA, which requires that jails and prisons maintain the medications of individuals in treatment for their OUD. Methadone and buprenorphine (including brand names Subutex and Suboxone) are approved by the Food and Drug Administration to treat OUD. According to the U.S. National Institute on Drug Abuse (NIDA), methadone and buprenorphine help diminish the effects of physical dependency on opioids. When taken as prescribed, these medications are safe and effective.
This matter was handled by Assistant U.S. Attorney Carrie Pond, as part of an ongoing effort by the U.S. Attorney’s Office to enforce the ADA, seeking to eliminate discriminatory barriers to treatment for OUD. It is the Department of Justice’s twenty-eighth agreement resolving allegations of ADA violations arising from OUD treatment and the U.S. Attorney’s Office’s second this year.
To find out more about the ADA or this settlement agreement, access the Department’s ADA website at http://www.ada.gov. For more information on the Office’s civil rights efforts or to report a potential violation of the ADA or other federal civil rights laws, please visit http://www.justice.gov/usao-edky/civil-rights
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Powell County Man Sentenced to 120 Months for Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. – A Beattyville, Ky., man, Byron Wathen, 47, was sentenced in federal court on Tuesday, to ten years in prison, by U.S. District Judge Karen Caldwell, for possession with the intent to distribute 50 grams or more of methamphetamine.
According to his plea agreement, on March 11, 2022, law enforcement found Wathen passed out, laying on his steering wheel at a car wash. During the incident, law enforcement located a pill pocket that contained a crystal substance and, elsewhere in his vehicle, a black bag containing 70 grams of methamphetamine, scales, and $6,613 in cash.
Wathen pleaded guilty in August 2022.
Under federal law, Wathen must serve 85 percent of his prison sentence. Upon his release, his three-year term of supervision by the U.S. Probation Office will commence.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Grant Faulkner, Chief of Police, Stanton Police Department, jointly announced the sentence.
The investigation was conducted by the DEA and the Stanton Police Department. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
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Lexington Man Sentenced to 100 Months for Fentanyl Trafficking and Possession of Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky. – Eyron Smith, 31, of Lexington, was sentenced in federal court on Monday, to 100 months in prison, by Chief U.S. District Judge Danny C. Reeves for possession with intent to distribute 40 grams or more of fentanyl and possession of a firearm by a convicted felon.
According to his plea agreement, on November 5, 2021, law enforcement executed a search warrant on Smith’s residence and vehicle and found him in possession of a loaded pistol and bags of heroin and fentanyl. Smith admitted that he possessed the drugs, and that he was a convicted felon and could not posses a firearm.
Smith pleaded guilty to the current charges in July 2022. Smith was previously convicted of complicity to wit reckless homicide in November 2016.
Under federal law, Smith must serve 85 percent of his prison sentence. Upon his release, he will be under supervision by the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Office; Lawrence Weathers, Chief of the Lexington Police Department; and Todd Justice, Chief of the Nicholasville Police Department, jointly announced the sentence.
The investigation was conducted by ATF, Lexington Police Department, and Nicholasville Police Department. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.
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Campbell County Man Sentenced to 32 Months for Illegal Possession of a FirearmRead the Press Release
COVINGTON, Ky. – A Bellevue, Ky., man, Perrin George March V, 27, was sentenced in federal court on Tuesday, to 32 months in prison, by U.S. District Judge David Bunning, for illegal possession of a firearm.
According to March’s plea agreement, law enforcement executed a federal search warrant at his residence and found a fully loaded AK-47 pistol, ammunition, and large capacity magazines. March admitted that he knew he was currently subject to a domestic violence order and was prohibited from possessing a firearm or ammunition.
March pleaded guilty in July 2022.
Under federal law, March must serve 85 percent of his prison sentence. Upon his release, his three-year term of supervision by the U.S. Probation Office will commence.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
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Anderson County Man Sentenced to 276 Months for the Production of Child Sexual Abuse MaterialRead the Press Release
FRANKFORT, Ky.— A Lawrenceburg, Ky., man, David Allen Kiper, 34, was sentenced to 276 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, for the production of child sexual abuse material.
According to Kiper’s plea agreement, on March 31, 2021, law enforcement received a referral from the Australian Federal Police, in reference to a subject posting on a Russian website associated with the sexual exploitation of children. In an interview, Kiper admitted to using the Russian website to download sexually explicit images of children from the internet. Kiper further admitted that he had multiple sexually explicit images of children on his phone and to having a sexual interest in children. Kiper also admitted to producing a video of himself sexually abusing a three-year old minor.
Kiper pleaded guilty in August 2022.
Under federal law, Kiper must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Col. Phillip Burnett, Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the Department of Homeland Security - Homeland Security Investigations and KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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U.S. Attorney Shier Announces Environmental Justice Coordinators, Welcomes Reporting from Concerned CitizensRead the Press Release
LEXINGTON, Ky.—Carlton S. Shier, IV, the United States Attorney for the Eastern District of Kentucky, announced on Tuesday a new initiative to address environmental justice and public health concerns. U.S. Attorney Shier has designated two Assistant United States Attorneys, Emily Greenfield and Carrie Pond, as Environmental Justice Coordinators to coordinate the U.S. Attorney’s Office’s efforts to address those concerns. Members of the public may visit the website at https://www.justice.gov/usao-edky/environmental-justice for information on where to report environmental violations or public health issues, and how to report such concerns to the Environmental Justice Coordinators.
The Office’s reporting procedures are part of the Department of Justice’s Comprehensive Environmental Justice Enforcement Strategy, which seeks to advance environmental justice through timely and effective remedies for environmental violations and injuries to natural resources in “underserved communities that have been historically marginalized and overburdened, including low-income communities, communities of color, and Tribal and Indigenous communities.”
The Department of Justice enforces the Nation’s civil and criminal environmental laws, including the Clean Air Act, Clean Water Act, and hazardous waste laws. An intentional decision to violate these laws may be a federal crime. For example, intentionally discharging pollutants into a river without a permit, or bypassing a required pollution control device, is a criminal act that carries the possibility of incarceration and monetary fines. The Department also protects natural resources and handles cases relating to tribal rights and resources.
The district’s Environmental Justice Coordinators also will lead efforts to remedy environmental violations and contaminations by pursuing actions under the civil rights laws, worker safety and consumer protection statutes, and the False Claims Act. For example, a federal contractor who violates a contractual provision mandating the proper disposal of hazardous waste may be subject to liability under the False Claims Act; a landlord who leases a home without disclosing known information about lead-based paint may violate federal lead disclosure rules.
The Office will continue to partner and coordinate with the Environmental Protection Agency, law enforcement partners, local communities, and agencies across federal, state, and local governments to better serve the needs of disadvantaged communities and the mission of environmental justice throughout the Eastern District of Kentucky. To find out more information about Environmental Justice, learn about additional points of contact for federal agencies, or to contact our Coordinators, visit https://www.justice.gov/usao-edky/environmental-justice.
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Knoxville Man Sentenced to 5 Years for Multi-State Burglary Spree of Sports Cards BusinessesRead the Press Release
LEXINGTON, Ky. – Jason L. Cates, 38, was sentenced in federal court on Monday to five years in prison by Chief U.S. District Judge Danny C. Reeves for conspiring to transport stolen sports cards and other sports merchandise across state lines.
According to his plea agreement, from August 19, 2021, to October 14, 2021, Cates burglarized multiple sports cards businesses in Kentucky, Tennessee, Michigan, and Georgia, taking thousands of dollars of sports cards and other merchandise and transporting it across state lines back to his home in Knoxville, Tennessee. He then sold the cards to buyers he found online and kept the proceeds for his own financial benefit.
In addition to his prison sentence, Cates was also ordered to pay $289,266 in restitution and $50,000 as part of a forfeiture money judgment.
Under federal law, Cates must serve 85 percent of his prison sentence. Upon his release, his three-year term of supervision by the U.S. Probation Office will commence.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation (FBI), Louisville Field Office; Paul Noel, Chief of the Knoxville Police Department; Frank McCann, Chief of the Cartersville, Georgia Police Department; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the FBI, the Knoxville Police Department, the Cartersville Police Department and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Will Moynahan.
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Detroit Man Sentenced to over 15 Years for Methamphetamine Trafficking in Johnson and Magoffin CountiesRead the Press Release
PIKEVILLE, Ky. — A Detroit man, Jayshawn Robinson, 30, was sentenced on Friday to 185 months in prison, by U.S. District Judge Robert E. Wier, for his involvement in a conspiracy to distribute heroin and 500 grams or more of methamphetamine.
On August 12, 2021, a Johnson County Sheriff’s Deputy conducted a search of the residence of Charles Chandler in Johnson County. During the search, law enforcement seized over 500 grams of methamphetamine that Chandler had obtained from Jayshawn Robinson.
Robinson pleaded guilty to aggravated drug trafficking charges, in March 2022. According to Robinson’s plea agreement, between April of 2021 and August 12, 2021, he had been regularly importing drugs into Johnson and Magoffin Counties to supply drug dealers there, including Chandler.
Charles Chandler was sentenced to 90 months in prison, in June of 2022. Also charged in the conspiracy were Ashley and Cory Johnson of Magoffin County. For their roles in the conspiracy, Cory Johnson was sentenced to 46 months and Ashley Johnson was sentenced to 80 months.
Under federal law, the defendants must serve 85 percent of their prison sentences. Upon their release from prison, they will be under the supervision of the U.S. Probation Office.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Col. Phillip Burnett, Commissioner of the Kentucky State Police; and Doug Saylor, Sheriff of Johnson County, jointly announced the sentences.
The investigation was conducted by the DEA, the Johnson County Sheriff’s Department, Operation UNITE, and the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
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Fayette County Man Sentenced to 5 Years for Operating an Interstate Prostitution ServiceRead the Press Release
FRANKFORT, Ky. — A Lexington, Ky., man, Michael Allen Comberger, 57, was sentenced on Thursday to 60 months in federal prison, by U.S. District Judge Gregory VanTatenhove, for transporting an individual in interstate commerce with the intent to engage in prostitution.
According to Comberger’s plea agreement, he admitted to owning and operating an interstate prostitution business, named Fantasys Escort Service, out of Fayette County. To facilitate the prostitution business, Comberger used a website for the service and would showcase various female escorts in different locations in the United States. On the website, each escort’s pictures, biographical information, and hourly rates were listed. Comberger further admitted that he would set up appointments for the escorts, for commercial sex with customers; and, on multiple occasions, he drove them to their appointments, in other states. The money gained from the appointments for commercial sex was split between the escorts and Comberger. A fine of $10,000 was also imposed.
Comberger pleaded guilty in June 2022.
Under federal law, Comberger must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Erin Roth.
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U.S. Attorney Appoints Election Officer for the Eastern District of KentuckyRead the Press Release
United States Attorney Carlton S. Shier, IV announced today that Assistant United States Attorney (AUSA) Andy Boone will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program, for the upcoming November 8, 2022, general election. AUSA Boone has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Kentucky, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Shier said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department addresses these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
The right to vote is the cornerstone of American democracy. We all must ensure that those who are entitled to that right can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Boone will be on duty in this District while the polls are open.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. Any tips or other information regarding election fraud or abuses can be submitted through the FBI’s national tip line at 800-CALL-FBI or via www.tips.fbi.gov. Additionally, the FBI Louisville Division office can be reached at 502-263-6000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC, by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
United States Attorney Shier emphasized, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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Elliott County Man Sentenced to 100 Years for Child Exploitation OffensesRead the Press Release
ASHLAND, Ky.— An Elliott County man, Ronald Stinespring, 51, was sentenced to 100 years in federal prison on Monday, by U.S. District Judge David Bunning, after pleading guilty to three counts of using a minor to engage in sexually explicit conduct, one count of possession of material containing sexually explicit images of minors, and one count of obstruction of justice.
The investigation of this case began when a young girl knocked on a stranger’s door in Elliott County, Kentucky. The minor was dirty and appeared malnourished. She then revealed to law enforcement that she and two other females, had been repeatedly physically and sexually abused by Stinespring. She also stated she had not left Stinesping’s property in over two years. She then detailed some of the abuse she suffered there, including being made to sit on rocks for an extended period, being tied up with paracord, having water poured over her, and even being shocked with a stun gun – on the tops of her feet, in her armpits, and around her genitals.
Law enforcement then executed a series of search warrants at Stinespring’s Elliott County property, which was located approximately a mile and a half deep into the woods in a remote part of the county. As they approached the property, police encountered what they believed to be rudimentary roadblocks of logs and downed trees lying across the path. The house was a makeshift cabin constructed of clapboard and surrounded by pigs and goats. A search of the home revealed numerous electronic devices; it also revealed a fetal doppler, pregnancy tests, and birth control pills within the residence.
Stinespring’s electronic devices contained sexually explicit pictures and videos of all three victims, at times when some or all were minors. He admitted to producing these images and to possessing sexually explicit images of other minors that he obtained via the internet.
While incarcerated after his arrest, Stinespring authored a letter to one victim, attempting to coerce her into taking responsibility for the criminal conduct. The letter was sent through a third party and was written in an elaborate code consisting of a complex series of numbers. The code was ultimately broken, and the attempted obstruction of justice was discovered.
Stinespring pleaded guilty to the charges in May 2022.
Under federal law, Stinespring must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
“The victims in this case suffered unspeakable mental, physical, and sexual abuse,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Even in the context of child exploitation and abuse, the conduct was remarkable. Three young people were extensively and callously abused, over the course of years. While his conduct was truly appalling, fortunately, the sentence he must now serve is also noteworthy. It is our hope that it will assist the victims in their recovery from the abuse, provide them with some measure of justice, and prevent him from ever endangering other young victims again.”
"Crimes against children can be some of the most heinous crimes the FBI investigates. Innocent families are forever impacted by the perpetrators' deplorable actions," said Special Agent in Charge Jodi Cohen for the FBI Louisville Field Office. "Today's sentence is a reflection of how aggressively the FBI and our law enforcement partners will continue to pursue justice knowing children's lives are at stake."
U.S. Attorney Shier; Special Agent in Charge Cohen; and Col. Phillip Burnett, Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI and the KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Owner and Chief Financial Officer of Perry County Business Convicted of Wire Fraud and Money Laundering ChargesRead the Press Release
LEXINGTON, Ky.- The owner and chief financial officer of a former business in Perry County were both convicted on Thursday, by a federal jury in Lexington, of conspiracy to commit wire fraud, multiple counts of wire fraud, and conspiracy to commit money laundering.
Following a six-day trial, the jury convicted 53-year-old Douglas William Vance of Richlands, Virginia, and 59-year-old Molly Irene McKinnon of Acworth, Georgia, of four counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of money laundering.
According to evidence at trial, from August 2016 through December 2018, Vance and McKinnon used falsified bank statements, financial reports, purchase orders, sales and production figures, and other fabrications, to convince different investors that each owned a controlling stake in a company called “Nex-Gen.” The company purported to produce “calcined coal” and other carbon-based products, in Chavies, Kentucky. The false and fabricated documents also convinced two companies to lend money to Nex-Gen, and it concealed the fact that Vance and McKinnon were misappropriating both investor and lender funds. The evidence presented at trial established that Vance and McKinnon worked together to defraud multiple investors and lenders out of more than $2 million.
Vance and McKinnon were indicted in June 2020.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the jury’s verdict.
The investigation was conducted by the FBI. The United States was represented in the case by Assistant U.S. Attorneys Gregory Rosenburg and James Chapman.
Vance and McKinnon will appear for sentencing on February 3, 2023. They face a maximum of 20 years in prison for each of the counts of conviction, plus any applicable restitution. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Pike County Man Convicted in Connection with Fentanyl Overdose DeathRead the Press Release
PIKEVILLE, Ky. – Justin Bryant, 38, of Shelbiana, Ky., was convicted on Friday by a federal jury in Pikeville of distributing fentanyl and para-fluorofentanyl that caused the death a victim. The jury also convicted Bryant of conspiring with others to distribute heroin, fentanyl, and para-fluorofentanyl.
The jury convicted Bryant of the charges following a three-day trial and about three hours of deliberations.
According to evidence at trial, on October 12, 2021, Bryant smuggled drugs into the Pike County Detention Center and distributed them. The drugs contained fentanyl and para-fluorofentanyl, and it resulted in the death of another individual in the jail.
Bryant was indicted on January 27, 2022.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the DEA Louisville Field Division, announced the conviction.
Bryant will appear for sentencing on February 7, 2023, and he faces a of sentence of 20 years to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
The investigation was conducted by the DEA. The United States was represented in the case by Assistant U.S. Attorney Andrew H. Trimble.
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Last Defendant Sentenced in Large Fentanyl Trafficking ConspiracyRead the Press Release
LEXINGTON, Ky. — A Richmond, Ky., man, Bud Hembree, 49, was sentenced on Tuesday to 230 months in prison, by Chief U.S. District Judge Danny Reeves, for conspiracy to distribute 40 grams of more of fentanyl and possession with intent to distribute fentanyl.
According to Hembree’s plea agreement, on December 14, 2020, law enforcement arrested Hembree and found approximately 17 grams of fentanyl on his person. Law enforcement monitored Hembree’s jail calls while he was detained, revealing that he directed his other co-defendants to distribute fentanyl while he was in jail.
Hembree pleaded guilty in May 2022. Hembree’s co-defendants have previously been sentenced for their roles in the conspiracy and received the following sentences:
- Leon H. Benson, 37, of Berea, Ky., received 105 months in prison, followed by six years of supervised release.
- Shanquenta V. Bulley, 27, from Berea, received 36 months in prison, followed by five years of supervised release.
- Claudia D. Gibson, 39, from Richmond, received 37 months in prison, followed by three years of supervised release.
- Justin M. Howell, 38, from Richmond, received 255 months in prison, followed by eight years of supervised release.
- Tiffany A. McCormick, 42, from Richmond, received 87 months in prison, followed by six years of supervised release.
- Joseph W. McElroy, 42, from Richmond, received 240 months in prison, followed by six years of supervised release.
- Misty D. Riddell, 30, from Berea, received 120 months in prison, followed by eight years of supervised release.
Under federal law, Hembree and his co-defendants must serve 85 percent of their prison sentences. Upon his release from prison, Hembree will be under the supervision of the U.S. Probation Office for six years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Col. Phillip Burnett, Commissioner, Kentucky State Police; Chief James Ebert, Richmond Police Department; Chief Eric Scott, Berea Police Department; and Sheriff Mike Coyle, Madison County Sheriff’s Office; jointly announced the sentences.
The investigation was conducted by the DEA, KSP, Madison County High Intensity Drug Trafficking Area (HIDTA) Task Force, Richmond Police Department; Berea Police Department; and Madison County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney David Kiebler.
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U.S Attorney’s Office Announces Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
LEXINGTON, Ky. – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“The targeting of elderly and vulnerable populations through fraud schemes is a significant threat and we simply must build on our efforts to combat this disgraceful conduct,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “The expansion of Transnational Elder Fraud Task Force is another tool to help us work with our federal, state, and local law enforcement partners to prosecute those who shamelessly look to cheat seniors out of their money, security, and peace of mind.”
From September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases of targeting elderly victims, involving more than 600 defendants, both bringing new cases and advancing those previously charged.
One example, from the Eastern District of Kentucky, was the extradition and conviction of Adedunmola Gbadegesin, 34, from Nigeria. He was charged along with three others, Olatunbosun Oluwakayode Ajayi, 40, of Atlanta, Otunuya Ineh Eqwem Livingstone, 46, of Houston, and Ismaila Fafunmi, 36, of Indianapolis, with conspiracy to commit money laundering. Gbadegesin and his co-conspirators collaborated to create fake online dating profiles, posted to online dating websites. As part of the conspiracy, they engaged in online chats, emails, and telephone calls with unwitting victims, who were located in the United States, including one in Lexington. The conspiracy employed others in the United States to receive money from the intended victims and transport that money back to Nigeria, through various means.
Additionally, with cooperation from local, state, and federal partners, the Eastern District of Kentucky has prioritized combatting elder financial exploitation. An example of that cooperation among law enforcement is the Kentucky Elder Justice Task Force, which brings together the resources of federal, state, and local agencies involved in protecting the elderly. For more information on the Kentucky Elder Justice Task Force, including how to report abuses, please visit: https://www.justice.gov/usao-edky/elder-justice-task-force.
Nationwide, the Department highlighted three efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims, and efforts to combat grandparent scams.
The Department announced that, as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice, it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has also notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Similarly, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6 a.m. to 11 p.m. ET. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Lexington Woman Sentenced for Wire Fraud and Money LaunderingRead the Press Release
LEXINGTON, Ky. – A Lexington woman, Jyoti Agrawal, 51, was sentenced to 42 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, for conspiracy to commit wire fraud, wire fraud, and money laundering.
According to evidence at her trial, Agrawal was a co-owner of the company ScienceTomorrow, with Subhadarshi Nayak. In December 2013, Agrawal agreed with Nayak to electronically submit a proposal containing a fabricated letter of support from a key subcontractor, in order to increase their chances of receiving a Phase II SBIR grant from the U.S. Department of Energy (DOE), in the amount of $999,266, to research and develop a scanning electron microscope detector. Agrawal knew the fake letter inflated the budget an out-of-state university had provisionally authorized in support of the project.
In 2014, the DOE awarded the Phase II grant to ScienceTomorrow, in part relying on this misrepresentation. Agrawal ultimately received more than a million dollars for the electron detector project from the DOE, and $500,000 from Kentucky’s state matching funds program, which depends on the lawful receipt of a federal grant award.
The evidence further showed that Agrawal had controlled the money and that Nayak left the project early on. Ultimately, the out-of-state university did not work on the project, as proposed, and received no payments. Bank records established Agrawal had personally accumulated over $440,000 of DOE grant funds during the two-year performance period. Agrawal also spent an additional $146,000 of the DOE Phase II funds on an Executive MBA degree in Chicago, during this time, partially supporting her money laundering conviction. Subsequently, Agrawal submitted false certifications to the DOE, stating all funds had been expended in accordance with the DOE’s terms and conditions; however, the evidence at trial revealed she hadunlawfully retained over $300,000 of the DOE funds she certified she had spent on the project.
A federal jury convicted Agrawal in April 2022. Nayak was sentenced in December 2021.
“When grants are fraudulently obtained and their funding is misappropriated, it is more than just a theft of money,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “The loss of taxpayer money is bad enough; but worthy applicants are also deprived of fair opportunities and the fundamental goals of the important programs are frustrated. It causes real damage and, as this prosecution and sentence confirm, can have real consequences.”
“Protecting the integrity of the Small Business Innovation Research and other grant programs is a priority for the EPA Office of Inspector General,” said Environmental Protection Agency Inspector General Sean O’Donnell. “We take seriously our responsibility to identify and investigate attempts by grantees to defraud the federal government and taxpayers.”
“This sentencing demonstrates the ongoing commitment of the Department of Energy Office of Inspector General to protect the DOE from fraud, waste and abuse. False claims and other misrepresentations related to Department grants will not be tolerated, whether in the SBIR program or any other,” said Department of Energy Inspector General Teri L. Donaldson, “I would like to thank our investigators and forensic accountants as well as the EPA OIG and the U.S. Attorney’s Office for their excellent work on this joint investigation.”
As part of her sentencing, Agrawal was ordered to pay restitution in the amount of $1,048,255.00 to U.S. Department of Energy and $500,000.00 to the Kentucky Cabinet for Economic Development, Office of Entrepreneurship and Small Business Innovation (SBIR state matching funds program).
Under federal law, Agrawal must serve 85 percent of her prison sentence; and upon her release from prison, she will be under the supervision of the U.S. Probation Office for three years.
United States Attorney Shier; Inspector General O’Donnell; Inspector General Donaldson and Cynthia Bruce, Special Agent in Charge, Defense Criminal Investigative Service, U.S. Department of Defense, jointly announced the sentence.
The investigation was conducted by the EPA-OIG, DOE-OIG, and DOD DCIS. The United States was represented by Assistant United States Attorney Tashena A. Fannin.
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Kenton County Woman Sentenced to 28 Months for Wire FraudRead the Press Release
COVINGTON, Ky. —An Independence, Ky., woman, Hachelle Alsip, 42, was sentenced on Wednesday to 28 months in federal prison, by U.S. District Judge David Bunning, for wire fraud.
According to Alsip’s plea agreement, in 2016, Victory Mortgage hired her as a loan funding representative to assist, in part, with distribution of funds with loans provided by the lending company to its borrowers. In 2021, Alsip caused two wire transfers totaling $507,000 to be made from one of Victory Mortgage’s business checking accounts, into a personal bank account belonging to her and her husband.
Alsip pleaded guilty in June 2022.
Under federal law, Alsip must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Sheriff Michael Helmig, Boone County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the FBI and the Boone County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Kyle Winslow.
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Phoenix Man Sentenced to 35 Years for Role in Deadly KidnappingsRead the Press Release
LEXINGTON, Ky. — A Phoenix man, Rosario Diaz Barraza, 32, was sentenced to 35 years in federal prison, on Tuesday, by U.S. District Court Judge Karen Caldwell, after previously being convicted of conspiracy to commit kidnapping and interstate transportation of stolen automobiles.
According to evidence presented at trial, the charges stemmed from the kidnappings of two individuals, identified in court records as J.O. and M.A.T.O. Both victims were killed during the commission of the kidnappings. Their bodies were discovered in the trunk of a Volkswagen Jetta, on September 11, 2017, at 430 Blue Sky Parkway, in Lexington. That location was an automotive repair business owned by J.O. Two vehicles belonging to J.O. were stolen during the offenses and transported to Wilkes-Barre, Pennsylvania. Evidence presented at trial revealed that Camacho Zepeda and Diaz Barraza were distributing kilogram quantities of cocaine and heroin in Lexington, and that J.O. had incurred a debt to them, based on his involvement in the drug trafficking. Testimony by a pathologist from the Kentucky Medical Examiner’s Office established that J.O.’s cause of death was attributed to “chop wounds” to the head and asphyxiation. The second victim, M.A.T.O., died from asphyxiation.
Diaz Barraza was convicted at trial, in April 2022. Two additional defendants, Ramon Camacho Zepeda, 54, of Lexington, and John Carlos Betancourt, 27, of Penuelas, Puerto Rico, were also convicted for their roles in the kidnappings, in April 2022, and are awaiting sentencing.
Two other defendants, Jose Felix Tlatenchi, 39, of Wilkes-Barre, and Jean Michael Serrano-Jimenez, 31, of Hanover Township, Penn., previously entered guilty pleas relating to their involvement. Serrano-Jimenez pled guilty as charged to conspiracy to commit kidnapping, while Tlatenchi pled guilty as an accessory after the fact to the kidnappings. Both are also currently awaiting sentencing.
Under federal law, Diaz Barraza must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
“This was a brutal crime, and yet another example of the disturbing impact that illegal drug trafficking can have on communities,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Bringing those responsible for this awful crime to justice involved tireless, dedicated, and remarkable work, by both our trial team and our law enforcement partners, across several states. The conduct in this case more than warrants the sentence imposed and should serve as a warning to those who continue to engage in this dangerous trade. We will continue to use all the resources available to us to combat it.”
“This case further illustrates how violence and drug trafficking go hand-in-hand,” said Special Agent in Charge Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “The heinous and brutal nature of the killings in this particular instance are reflected in the lengthy prison sentence.”
United States Attorney Shier; DEA Special Agent Scott; Colonel Phillip Burnett, Commissioner, Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentencing.
The lengthy investigation was conducted primarily by the Lexington Police Department, the Drug Enforcement Administration, and the Kentucky State Police. Multiple additional law enforcement agencies also provided valuable assistance, including the Wilkes-Barre, Pennsylvania Police Department, the Reading, Pennsylvania Police Department, the Pennsylvania State Police, the New York City Police Department, the Harlingen, Texas Police Department and Homeland Security Investigations. The United States was represented in the case by Assistant U.S. Attorneys Todd Bradbury and Francisco Villalobos.
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Former Lawrence County Attorney Sentenced to 42 Months for Wire Fraud and Federal Program TheftRead the Press Release
FRANKFORT, Ky. – The former County Attorney for Lawrence County, Michael T. Hogan, and his wife and legal secretary, Joy M. Hogan, 41, were sentenced to 42 months and 12 months and one day, respectively, on Tuesday, by U.S. District Judge Gregory Van Tatenhove, for wire fraud. Michael Hogan was also sentenced for federal program theft.
According to the Hogans’ plea agreements, the Hogans conspired with each other to commit wire fraud by issuing checks from a second delinquent tax account for the Lawrence County Attorney’s Office, the statements for which went to their personal residence. Michael Hogan and Joy Hogan would routinely prepare “bonus” checks issued to Joy, and signed by Michael, paid with delinquent tax funds that should have been used on operating expenses for the Lawrence County Attorney’s Office. The Hogans deposited these checks in Joy’s personal account and the couple’s joint accounts and spent the funds on personal expenses. Michael Hogan admitted he personally benefitted from these payments and knew some of these payments were not reasonable in amount, nor beneficial to the public. According to the indictment, between March 8, 2013, and April 30, 2020, Michael Hogan paid Joy Hogan more than $365,000 from the Lawrence County Delinquent Tax Account.
Michael Hogan also admitted to defrauding the Lawrence County Child Support Enforcement Office, part of the Kentucky Cabinet for Health and Family Services. According to his plea agreement, Hogan billed the program for more hours than he actually worked.
“Michael Hogan turned to his own self-interests and used taxpayer money for his and his wife’s personal benefit,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “As an elected County Attorney, he was responsible for upholding the law; instead, he brazenly broke it, at the expense of those who elected him. His conduct will leave lasting damage, both from the theft and from the resulting loss of faith in government officials and law enforcement. His prosecution and sentence are the first steps in the effort to restore that faith.”
“Public corruption erodes the people’s trust in our government officials and fuels divisiveness in our community. We have been crystal clear that corruption, at any level, will not be tolerated in Kentucky, ” said Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office. “No one is above the law and the victim of this crime, the people of Kentucky, deserve better. Today’s sentence demonstrates that the FBI, and its law enforcement partners, will hold those who violate the public’s trust accountable for their actions."
As part of his plea agreement, Michael Hogan agreed to resign as the Lawrence County Attorney.
The Hogans pleaded guilty in March 2022.
Under federal law, the Hogans must serve 85 percent of their prison sentence. Upon their release from prison, both Michael and Joy Hogan will be under the supervision of the U.S. Probation Office for three years.
United States Attorney Shier; FBI Special Agent Cohen; and Col. Phillip Burnett, Commissioner, Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by the FBI and KSP. The United States was represented by Assistant U.S. Attorneys Kate Smith and James Chapman.
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Madison County Man Sentenced to 240 Months for Production of Child PornographyRead the Press Release
FRANFORT, Ky. — A Richmond, Ky., man, Scotty Dale Johnson, 51, was sentenced on Thursday, to 240 months in federal prison, by U.S. District Judge Gregory Van Tatenhove, for production of child pornography.
According to Johnson’s plea agreement, he created a Snapchat account, where he purported to be a teenage female. Using that account, Johnson then friended teenage boys, some of who he knew in real life and some he met online and engaged in sexual chatting with the boys. One victim, known by Johnson, was persuaded, induced, enticed, or coerced to send sexually explicit images of himself, via Snapchat, believing he was corresponding with a teenage female. The victim became suspicious that the account was fraudulent and eventually reported it to law enforcement.
Law enforcement eventually obtained a warrant for the Snapchat account and discovered that Johnson was corresponding with over 1000 different individuals, including several minor males. Johnson admitted that he attempted to, or did, persuade, entice, or coerce at least eight additional minor victims to produce sexually explicit images.
Johnson pleaded guilty in March 2021.
“This disgraceful conduct involved both predatory deception and sexual exploitation of a minor,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Sadly, this case serves as a stark reminder of the serious risks minors face when online. That means we must all be diligent in protecting them and demonstrating safe online activity. Due to the work of our enforcement partners, fortunately, this case can also serve as a warning to those who engage in this conduct: the consequences will likely be a significant prison sentence.”
"This case demonstrates the grave dangers that children face online, where predators can pretend to be anyone in order to target the most vulnerable among us,” said Special Agent in Charge Jodi Cohen, FBI Louisville. “With this sentencing, we have removed a dangerous child predator from our community, and a clear message has been sent that those who seek to exploit children will be held accountable.”
Under federal law, Johnson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
United States Attorney Shier; Special Agent in Charge Cohen; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Chief Joe Monroe, University of Kentucky Police Department, jointly announced the sentence.
The investigation was conducted by the FBI, KSP, and the University of Kentucky Police Department. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Boyd County Man Pleads Guilty to Violent KidnappingRead the Press Release
ASHLAND, Ky. – A Catlettsburg, Ky., man, Jonathan Lee Smithers, 41, pleaded guilty on Wednesday, before U.S. District Judge David Bunning, to a federal kidnapping charge.
According to Smithers’ plea agreement, on May 1, 2022, Smithers physically assaulted a victim with whom he was in a romantic relationship. Then, under threat of force and using a firearm, Smithers made the victim accompany him to a store, where he brandished the weapon, assaulted her with the weapon, and confined her in the vehicle. Smithers then drove her to the Flatwoods area. After again confining her in the vehicle, Smithers stopped the vehicle and forced her to exit. Thereafter, still armed, he forced her to accompany him on foot, requiring her to climb fences, trespass on private property, and traverse random routes around the area for several hours. She was eventually able to escape and hide from Smithers and law enforcement found her collapsed at a gas station. Smithers remained in the area on foot, was spotted coming out of the woods, and law enforcement responded. Upon being approached by law enforcement, Smithers shot the responding officer in the throat. The officer survived life-threatening injuries.
Pursuant to the plea agreement, Smithers faces a sentence of life imprisonment.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Col. Phillip Burnett, Commissioner, Kentucky State Police; Chief Todd Kelley, Ashland Police Department; Chief David Smith, Flatwoods Police Department; and Sheriff Matt Smith, Greenup County Sheriff’s Office, jointly announced the guilty plea.
The investigation was conducted by the FBI, KSP, Ashland Police Department, Flatwoods Police Department, and the Greenup County Sherriff’s Office. The United States was represented by Assistant U.S. Attorney Erin Roth.
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Franklin County Man Sentenced to 162 Months for Receiving of Child PornographyRead the Press Release
FRANFORT, Ky. — A man residing in Frankfort, Kentucky, Marcus Tate, 39, was sentenced on Friday to 162 months in federal prison, by U.S. District Judge Gregory VanTatenhove, for the receipt of child pornography.
According to Tate’s plea agreement, on May 13, 2017, he knowingly received sexually explicit videos and/or images of minors, using a peer-to-per file sharing program. Tate admitted that he knowingly searched for and received these images, and he knew the content was produced using minors engaged in sexually explicit conduct.
Tate pleaded guilty in February 2022.
Under federal law, Tate must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Col. Phillip Burnett, Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the Department of Homeland Security - Homeland Security Investigations and KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Fayette County Man Sentenced to 360 Months for the Production of Child PornographyRead the Press Release
LEXINGTON, Ky. —Christopher Wayne Livingood, 50, of Lexington, Ky., was sentenced on Friday to 360 months in federal prison, by Chief U.S. District Judge Danny Reeves, for production of child pornography.
According to Livingood’s plea agreement, he used the Kik social media application to communicate with another individual about sexual acts that he wanted to perform on a minor. Livingood also admitted to sending sexually explicit images of the minor to the same individual. In addition to the images he produced, he was also in possession of child sexual abuse material on various electronic devices.
Livingood pleaded guilty in May 2022.
Under federal law, Livingood must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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