Eastern District of Kentucky
Press releases recorded for this federal judicial district.
Mercer County Man Sentenced to 408 Months for Drug Trafficking and Possession of Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky.— A Harrodsburg, Ky., man, John Michael Essex, 58,was sentenced to 408 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after being convicted of possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute heroin, and possession of a firearm by a convicted felon.
According to the evidence presented at trial, on July 7, 2019, deputies with the Mercer County Sheriff’s Office executed a search warrant on a property being occupied and rented by Essex. During the search officers located approximately 354 grams of methamphetamine and 69 grams of a mixture of heroin and fentanyl, in multiple baggies packaged for distribution. A Remington rifle was also located in a vehicle belonging to the Essex. Essex had previously been convicted of a felony and was prohibited from possessing a firearm.
Essex was convicted in August 2021.
Under federal law, Essex 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 Office; and Sheriff Ernie Kelty, Mercer County Sheriff’s Office; announced the sentence.
The investigation was conducted by DEA and the Mercer County Sherriff’s Office, with assistance from the Danville Police Department, Lincoln County Sherriff’s Office, and the Kentucky State Police Special Response Team. 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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Shelby County Man Pleads Guilty to Discharging Oil in Violation of Clean Water ActRead the Press Release
FRANKFORT, Ky. – A Shelbyville, Kentucky, man, John Affourtit, 65, pleaded guilty on Tuesday, before U.S. District Judge Gregory VanTatenhove, to knowingly discharging a harmful quantity of oil into a waterway of the United States.
According to his plea agreement, beginning in March 2017, Affourtit signed an agreement with a company to remove and dispose of the waste material at the company’s abandoned zinc plating facility. In completing the contract, Affourtit admitted to pumping oil waste from the machinery pits into a large 500-gallon water trailer that he had rented. He then took the trailer to his residential property in Shelby County where he discharged it, and it went into a creek that ran through his property. The creek is a perennial stream that flows into waters that are part of the Salt River, a traditional navigable waterway. Affourtit had also disposed of other waste materials, including a container of hazardous waste, from the zinc plating facility on his property in an earthen berm.
Affourtit was indicted in August 2020.
“After agreeing to properly dispose of hazardous materials, the defendant instead chose to endanger the environment and the people that live nearby,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “Dangerous choices like this have consequences and the defendant must now face those. We appreciate the dedicated work of our law enforcement partners, whose efforts make this prosecution possible.
“The defendant’s willful disregard of the Clean Water Act put nearby residents and the environment at unnecessary risk,” said Special Agent in Charge Charles Carfagno of EPA’s Criminal Investigation Division in Atlanta. “EPA will continue to hold accountable those that choose to deliberately violate our environmental laws.”
Acting U.S. Attorney Shier; Special Agent in Charge Carfagno; and Anthony R. Hatton, Commissioner, Kentucky Department of Environmental Protection, jointly announced the guilty plea.
The investigation was conducted by EPA-CID and Kentucky Department of Environmental Protection. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
Affourtit is scheduled to be sentenced on February 17, 2022 at 3:30 p.m. He faces a maximum of three years in prison and a fine of not more than $250,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Elkhorn City Attorney Sentenced to 41 Months for Bank Fraud and Filing False Tax ReturnsRead the Press Release
PIKEVILLE, Ky.— An Elkhorn City, Ky., attorney, Timothy Belcher, 56, was sentenced on Tuesday, to 41 months in federal prison and ordered to pay $817,000 in restitution, by U.S. District Judge Robert Wier, for bank fraud and false statements on a tax return.
According to Belcher’s plea agreement, he was a licensed attorney practicing in Pike County, who agreed to represent a client and her minor daughter in a wrongful death lawsuit. In 2004, a settlement was reached in the lawsuit, where half of the settlement would be distributed to the victim and the other half would be distributed among the three children. The funds were placed into an escrow account for the children.
Belcher admitted that, from July 2012 to December 2018, he transferred money from that escrow account to his law practice and used those funds for his personal and business expenses. Also, in his plea agreement, Belcher admitted that he knowingly failed to report the money he embezzled from the settlement account on his taxes.
Belcher pleaded guilty in July 2021.
Under federal law, Belcher 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.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; and Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation, jointly announced the indictment.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The United States was represented by Assistant U.S. Attorney Andrea Mattingly Williams.
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Pikeville Man Convicted of Wire Fraud and Healthcare FraudRead the Press Release
PIKEVILLE, Ky.- A Pikeville man was convicted on Monday by a federal jury in Pikeville for wire fraud and health care fraud.
After two hours of deliberation, following a five-day trial, the jury convicted 36-year-old Eugene Sisco III of one count of wire fraud and one count of health care fraud.
According to the evidence at trial, Sisco operated several medication assisted treatment (“MAT”) clinics in Pike, Floyd, and Harlan Counties that offered treatment to patients suffering from opioid addiction. These clinics were enrolled as providers in the Kentucky Medicaid program, and under Kentucky law were required to bill that insurance program for MAT services rendered to Medicaid patients. The evidence demonstrated that Sisco deceived patients into paying $200-$300 per month in cash for treatment at his clinics, despite having Medicaid insurance, by falsely claiming his clinics were not eligible to bill Medicaid for the counseling services they provided. The evidence at trial showed that the cash payments from patients totaled around $5 million between May 2016 and October 2019. At the same time, Sisco caused his clinics to bill Medicaid for MAT services, receiving around $5 million in reimbursements from that program as well.
The jury also found that Sisco engaged in a health care fraud scheme, by causing his laboratory, Toxperts, LLC, to bill for medically unnecessary urine drug testing of samples collected from patients at his clinics. The physician witnesses at trial testified that they did not order this urine drug testing, and that some of it was done at Sisco’s direction for billing purposes, as opposed to any medical reason. Sisco is not a doctor or medical professional.
Sisco was indicted in November 2020.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Daniel Cameron, Attorney General of Kentucky; and Col. Phillip Burnett, Jr., Commissioner, Kentucky State Police; announced the conviction.
The investigation was conducted by FBI, KSP, and the Office of the Attorney General, Office of Medicaid Fraud and Abuse. The United States was represented in the case by Assistant U.S. Attorney Paul McCaffrey.
Sisco will appear for sentencing on March 8, 2022 at 11 a.m. He faces a maximum of 20 years for the wire fraud charge and 10 years maximum for the health care fraud. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Ashland Man Sentenced to 152 Months for Armed Methamphetamine TraffickingRead the Press Release
ASHLAND, Ky.— An Ashland man Steven Halley, 28, was sentenced to 152 months in federal prison on Monday, by U.S. District Judge David Bunning, after pleading guilty to possession with intent to distribute five grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to Halley’s plea agreement, he admitted that, on September 30, 2020, he was stopped by law enforcement for carless driving, in Boyd County. He was not a licensed driver and had methamphetamine and a handgun in the car. Law enforcement found him in possession of a .38 gun and 23.98 grams of methamphetamine. Halley was prohibited from possessing a firearm due to prior felony convictions.
Halley pleaded guilty in July 2021.
Under federal law, Halley 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.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Bobby Jack Woods, Sheriff, Boyd County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the DEA and the Boyd County Sheriff’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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Cincinnati Man Sentenced to 250 Months for Fentanyl and Heroin TraffickingRead the Press Release
COVINGTON, Ky.— A Cincinnati man, Clarence Toney, 41, was sentenced to 250 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after pleading guilty to the distribution of fentanyl and heroin and violating his supervised release conditions. Toney was classified as a career offender.
In his guilty plea, Toney admitted that, on six separate occasions in Covington, he sold a mixture or substance containing a detectable amount of fentanyl to a confidential informant working with the Covington Police Department. On two of the six occasions, the substance he sold also included a detectable amount of heroin. In addition to pleading guilty to the charges, Toney also admitted that his actions violated the conditions of his supervised release for a previous drug trafficking conviction.
Toney pleaded guilty in July 2021.
Under federal law, Toney 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 six years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Col. Robert Nader, Chief of Police, Covington Police Department, announced the sentence.
The investigation was conducted by the FBI and the Covington Police Department. The United States was represented by Assistant U.S. Attorney Kyle M. Winslow.
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Former State Employee Sentenced for Conspiracy to Illegally Import Prescription DrugsRead the Press Release
LEXINGTON, Ky. - A former Kentucky state employee, Howard Stanley Head, Jr., 59, was sentenced in federal court on Monday, to 12 months and 1 day in prison, by U.S. District Judge Gregory F. Van Tatenhove, for conspiracy to import misbranded prescription drugs. He was also fined $1,000 and ordered to forfeit $30,275 in unlawful gains.
From July 2015 to October 2019, Head regularly made online purchases of thousands of tablets of erectile dysfunction drugs, from overseas suppliers. These drugs were not authorized for entry into the United States and did not satisfy Food and Drug Administration (FDA) regulations for proper labelling. Additionally, Head is not a doctor or pharmacist, and had no legal authority to prescribe, dispense, transport or otherwise handle prescription medications.
After obtaining the shipments of generic erectile dysfunction drugs, Head resold them at a profit, to customers in Frankfort and other parts of Kentucky. While operating this illegal business, in some instances, Head used his state email account to order shipments and contact customers.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Mark McCormack, Special Agent in Charge of the FDA, Office of Criminal Investigations, Washington Field Office; and Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by FDA Office of Criminal Investigations and the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Will Moynahan.
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Perry County Man Sentenced to 270 Months for Federal Charges of Kidnapping and Armed Drug TraffickingRead the Press Release
LONDON, Ky— A Perry County man, Thomas Hamblin, 65, was sentenced to 270 months in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, after previously being convicted of conspiracy to distribute 500 grams or more of cocaine, possession of a firearm in furtherance of that conspiracy, possession of a firearm as a convicted felon, kidnapping, and conspiracy to commit a kidnapping.
According to evidence presented at trial, Hamblin was working with others, including Bobby Sizemore, Robert Keith Caudill, and Doyle Back, to obtain kilogram quantities of cocaine, and to sell that cocaine to others in the Perry County area. Evidence further revealed that, after an attempted drug deal, Hamblin coordinated with others, including Luke Holbrook and Michael Rayburn, to kidnap and assault two victims in Tazewell, Tennessee. Specifically, Hamblin recruited Luke Holbrook into the plot and provided him with a firearm and ammunition. Holbrook, assisted by Rayburn and another individual, then held two victims at gun point, tied them up with duct tape, assaulted them with a baseball bat, and interrogated them, in an attempt to retaliate against them and recover Hamblin’s money or drugs. Portions of this kidnapping and assault were recorded on a cell phone that was recovered from the scene. That same cell phone revealed that Hamblin was contacted in the middle of the assault and kidnapping.
Hamblin was convicted of the charges in June 2021.
Hamblin’s co-defendants have been sentenced to the following:
- Bobby Sizemore, 64, of Cornettsville, Ky., was sentenced to 30 months and two years of supervised release.
- Michael Rayburn, 39, of London, Ky., was sentenced to 135 months and three years of supervised release.
- Luke Holbrook, 51, of Seco, Ky., was sentenced to 163 months of three years of supervised release.
- Robert Caudill, 41, of Cornettsville, Ky., was sentenced to 78 months and five years of supervised release.
- Doyle Back, 41, of London, Ky., was released based on time served (approximately 449 days) and received three years of supervised release.
Under federal law, Hamblin and his co-defendants must serve 85 percent of their prison sentence. Upon Hamblin’s release from prison, he will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the DEA Louisville Field Division; Vic Brown Executive Director of AHIDTA; Minor Allen, Chief of the Hazard Police Department; Nancy Hale, President/CEO of Operation UNITE; Jeremy Meyers, Chief of the Tazewell Police Department; Bob Brooks, Sheriff of the Claiborne County Tennessee Sherriff’s Department, and Commissioner Phillip “PJ” Burnett, Jr., Commissioner of the Kentucky State Police, announced the sentence.
The investigation was conducted by the DEA, the Hazard Police Department, Operation UNITE, the Tazwell Tennessee Police Department, the Claiborne County Sheriff’s Department, and the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Drew 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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement.
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Mt. Sterling Man Pleads Guilty to Armed RobberyRead the Press Release
LEXINGTON, Ky. – A Mt. Sterling, Ky., man, Larry A. Crump, 37, has pled guilty, before U.S. District Judge Dannv C. Reeves, to Hobbs Act Robbery, bank robbery, possession of a firearm in furtherance of a violent crime, and being a convicted felon in possession of a firearm.
According to his guilty plea agreement, Crump admitted to robbing the Cash N Check in Mt. Sterling, on November 16, 2020, and the Peoples Bank of Mt. Sterling, on November 20, 2020, at gunpoint. Crump also admitted to using a stolen firearm in the commission of the bank robbery and being a felon in possession of a firearm. The amount of money taken from Cash N Check was approximately $900 and the amount of money stolen from the Peoples’ Bank was approximately $37,000. Law Enforcement agents recovered approximately $20,000 from the residence of one of Crump’s relatives. Crump was on parole at the time of the commission of the offenses.
Crump was indicted in March 2021.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Norman Arflack, U.S. Marshal for the Eastern District of Kentucky; Chief Terry Landrum, Chief of Police, Mt. Sterling Police Department; and Jessica Stewart, Bath County Sheriff, announced the guilty plea.
The investigation was conducted by the FBI, ATF, U.S. Marshals, Mt. Sterling Police Department, and the Bath County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Roger West.
Crump is scheduled to be sentenced on January 21, 2022. Crump faces a minimum of seven years in prison, and a maximum of life imprisonment. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
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Lawrenceburg Man Sentenced to 180 Months for Armed Methamphetamine TraffickingRead the Press Release
FRANKFORT, Ky.— A Lawrenceburg, Ky., man, Denero Evans, 32, was sentenced to 180 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, after pleading guilty to possession with intent to distribute 500 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to Evans’ guilty plea agreement, on January 3, 2021, law enforcement conducted a traffic stop on his vehicle and found him in possession of three bags of marijuana, a backpack with a loaded .380 pistol, and three cellophane wrapped packages containing 1,306 grams of methamphetamine. There was also $10,000 in cash wrapped in a rubber band in the driver’s side floorboard.
Evans had previously been convicted of trafficking in controlled substances, in October 2016, in Franklin Circuit Court.
Evans pleaded guilty in July 2021.
Under federal law, Evans 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.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Brian Taylor, Chief of Police, Lawrenceburg Police Department, announced the sentence.
The investigation was conducted by the DEA and the Lawrenceburg Police Department. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
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Richmond Man Sentenced to 312 Months for Methamphetamine Trafficking and Illegal Possession of a FirearmRead the Press Release
COVINGTON, Ky. – A Richmond, Kentucky man, Lavone Dixon, 36, was sentenced to 312 months in prison, by U.S. District Judge David Bunning, for possession of methamphetamine with the intent to distribute it and being a felon in possession of a firearm.
According to testimony at his trial, on September 17, 2019, Dixon traveled to Dayton, Ohio, to pick up more than three ounces of crystal methamphetamine for distribution. He was arrested in Grant County, Kentucky, while in route to Richmond with the methamphetamine. Agents executed a search warrant on Dixon’s residence and located three firearms concealed inside. Dixon was a convicted felon at the time of these offenses and was prohibited from possessing firearms. Testimony indicated that Dixon had, several times a month since 2016, traveled to Dayton for large quantities of methamphetamine and heroin and distributed those drugs in the Richmond area.
Dixon was convicted of the charges in May 2021.
Under federal law, Dixon must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years, following his release.
Carlton S. Shier IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives; and Col. Phillip Burnett, Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kentucky State Police, Gateway Area Drug Task Force and the Madison County Drug Task Force, and the Miami Valley Bulk Smuggling Task Force. The United States was represented in the case by Assistant U.S. Attorney Tony Bracke.
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Letcher County Teacher Convicted of Producing Child Pornography and CyberstalkingRead the Press Release
LONDON, Ky. – A Letcher County Middle School teacher was convicted late Wednesday, by a federal jury sitting in London, of producing child pornography and cyberstalking a student.
The jury convicted Charles Evans Hall Jr., 48, after 30 minutes of deliberations, following a three-day trial.
According to the evidence at trial, Hall persuaded a child to setup a secret Snapchat account. Hall then manipulated the child into creating and transmitting sexually explicit pictures and videos over a seven-month period. Hall used physical molestation to coerce and entice the minor into producing additional images.
The Kentucky State Police (KSP) seized Hall’s cell phone on November 20, 2018. Despite that, Hall still used Instagram to engage in cyberstalking. Hall repeatedly contacted the victim, asking her to destroy evidence, and ultimately threatened the child when she did not help him do so. KSP then arrested Hall on November 30, 2018. Despite that, Hall had his cellmate communicate with a co-conspirator, outside of the jail, to continue the cyberstalking campaign against the child, using Facebook. Hall told the victim to make another statement to law enforcement, to clear him of the charges. Hall also used his mother’s public Facebook page to relay messages to the victim.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation (FBI) Louisville Division; and Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the jury’s verdict.
The investigation was conducted by the FBI and the Kentucky State Police Electronic Crimes Branch. The United States was represented in the case by Assistant U.S. Attorney Jenna E. Reed.
Hall will appear for sentencing on February 22, 2022. He faces a maximum of 35 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing the sentence.
This case was brought 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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Pulaski County Constable Sentenced to 140 Months for Conspiring to Violate the Civil Rights of OthersRead the Press Release
LONDON, Ky. – A former Pulaski County Constable, Michael Wallace, 47, of Somerset, Ky., was sentenced to 140 months in prison, by U.S. District Judge Robert Wier, after previously being convicted of violating the civil rights of persons within Pulaski County and possession with intent to distribute methamphetamine.
According to the evidence at trial, Wallace and fellow Constable Gary Baldock, 56, worked together to violate the civil rights of individuals, by fabricating evidence that was used as a basis to arrest, to search, and to seize the property of others. Both Wallace and Baldock were also found guilty of illegally possessing methamphetamine, which they used to plant evidence on potential suspects.
Wallace and Baldock were convicted of the charges by a federal jury in June 2021.
“Wallace betrayed the trust placed in him, abused his authority to violate the rights of others, and did a grave disservice to the law enforcement community,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “Instead of enforcing the law and protecting the public, he turned to corruption and self-interest. His prison sentence is well-deserved and should serve this message: such conduct has severe consequences and should not reflect on the hard work and dedication of so many in law enforcement – including the FBI agents who investigated this case and made this prosecution possible.”
“Wallace took an oath to faithfully protect and serve the citizens of Pulaski County. By blatantly violating that oath, he betrayed his community and those officers who work hard every day to gain the trust of the people they serve,” said Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office. “With his sentencing, Wallace is being held accountable for his deplorable actions, and the FBI will continue to do everything in its power to bring corrupt police officers to justice.”
Under federal law, Wallace 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 four years.
Acting United States Attorney Shier and Special Agent in Charge Cohen, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Jason Parman.
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United States Settles with Private School to Resolve Allegations of Disability DiscriminationRead the Press Release
LEXINGTON, Ky. – The United States has reached a settlement with Sayre School (Sayre), a Lexington-based private school, resolving allegations of disability discrimination and taking steps to ensure that individuals with disabilities have equal access to the school’s facilities.
The settlement agreement resolves a compliance review, initiated in 2016 by the United States, under the Americans with Disabilities Act (ADA), after receiving a complaint about physical access barriers for individuals with mobility disabilities, at Sayre’s Lower School. Sayre is a private, nonsectarian school in Lexington that serves more than 600 students from pre-kindergarten through twelfth grade. As a private elementary and secondary school, Sayre is a “public accommodation” that is subject to the requirements of Title III of the ADA.
Following an on-site architectural assessment of Sayre’s campus, the United States concluded that numerous buildings on Sayre’s campus contained physical barriers to access in violation of the ADA. As part of the resolution between the parties, Sayre:
- Has taken broad remedial action to remove architectural barriers in school buildings across its campus, to ensure access for individuals with disabilities;
- Consulted with the United States during construction of its new Lower School to ensure the building was ADA-compliant; and
- Will renovate its playground facilities to ensure that they are readily accessible to, and usable by, children with disabilities.
“Under federal law, public accommodations like Sayre School have an obligation to provide facilities that do not discriminate against students with disabilities,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “Though this settlement, Sayre has agreed to address access barriers on its campus and safeguard ongoing compliance. The Department of Justice remains committed to doing its part to ensure that children with disabilities have equal access to their school facilities.”
“Sayre School appreciates the opportunity to work with the Department of Justice to ensure that our campus is inclusive and accessible to all students, faculty, and visitors,” said a statement released by Sayre. “By improving the accessibility of our campus, we have further enhanced our learning environment.”
This matter was handled by Assistant U.S. Attorneys Hydee Hawkins and Carrie Pond, in consultation with the Civil Rights Division’s Disability Rights Section.
For more information about the Civil Rights Division and the laws it enforces or to file an online complaint regarding a potential civil rights violation, please visit civilrights.justice.gov. Individuals seeking additional information about the ADA can call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
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Georgia Man Sentenced to 120 Months for Attempted Online Enticement of a MinorRead the Press Release
ASHLAND, Ky. — A Columbus, Ga., man, Eric Duane Elmore, 48, was sentenced to 120 months in federal prison on Monday, by U.S. District Judge David L. Bunning, after pleading guilty to attempted online enticement.
According to Elmore’s guilty plea agreement, he admitted to corresponding with a 15-year-old victim, beginning in late 2018. When the conversations became sexual in nature, the victim told a school counselor about the messages, who then contacted law enforcement. Law enforcement then gained authorized control of the online account and continued the conversations with Elmore, which ultimately led to Elmore discussing travel to Kentucky to meet with the victim for sexual purposes.
Elmore pleaded guilty in June 2021.
Under federal law, Elmore must serve 85 percent of his prison sentence. Upon his release from prison will be under the supervision of the U.S. Probation Office for 15 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Colonel Phillip Burnett, Commissioner, Kentucky State Police, announced the sentence.
The investigation was conducted by the FBI 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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Former Bath County Deputy Sheriff Pleads Guilty to the Production of Child PornographyRead the Press Release
LEXINGTON, Ky. – A Morehead, Ky., man, and former Bath County Deputy Sheriff, Joshua Preece, 40, pleaded guilty on Tuesday, before U.S. District Judge Karen Caldwell to the enticing a minor victim to engage in sexually explicit conduct for the purpose of producing child pornography.
According to Preece’s plea agreement, on November 5, 2018, he admitted to answering a call about a minor victim who was acting out of control at her residence and transporting the victim to a remote area in Bath County. At the remote location, Preece admitted to sexually assaulting the victim and later asking for photos via Snapchat. When reviewing Preece’s phone, law enforcement found multiple sexually explicit images.
Preece was indicted in April 2021.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Robert Holman, Special Agent in Charge, United States Secret Service; and Colonel Phillip Burnett, Commissioner, Kentucky State Police; jointly announced the guilty plea.
The investigation was conducted by U.S. Secret Service and KSP. The United States was represented by Assistant U.S. Attorney David Marye.
Preece is scheduled to be sentenced on February 1, 2022. He faces a minimum of 15 years and not more than 30 years in prison, a fine of not more than $250,000, and a term of supervised release of not less than five years and up to life. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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 Sentenced to 262 Months for Armed Cocaine TraffickingRead the Press Release
LEXINGTON, Ky.— A Lexington, Ky., man, Jymie S. Salahuddin, 53, was sentenced to 262 months in federal prison on Tuesday, by Senior U.S. District Judge Joseph Hood, after pleading guilty to possession with intent to distribute cocaine and possession of firearms in furtherance of drug trafficking.
According to Salahuddin’s plea agreement, on September 19, 2020, while serving a parole violation warrant, law enforcement stopped Salahuddin’s vehicle and found him in possession of 79.42 grams of cocaine and a large amount of currency. A search of his vehicle also revealed a .40 pistol and a .380 pistol, along with additional currency. Salahuddin admitted that he possessed the cocaine with the intent to distribute it, and that he possessed the firearms in furtherance of his drug trafficking.
Salahuddin pleaded guilty in July 2021.
Under federal law, Salahuddin 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 six years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Police Chief, Lexington Police Department, announced the sentence.
The investigation was conducted by ATF and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos
This is another 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. 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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Lexington Man Sentenced to 27 Months for Bank Fraud and Aggravated Identity TheftRead the Press Release
LEXINGTON, Ky.— Vonnie McDaniels, 32, of Lexington, Kentucky, was sentenced to 27 months in federal prison on Monday by Chief U.S. District Judge Danny C. Reeves, after being convicted of bank fraud and aggravated identity theft.
McDaniels obtained a $382,500 commercial loan from Kentucky Bank in August 2019 under false pretenses, and used the loan proceeds to purchase an office building in Frankfort, Kentucky that was being leased by the Commonwealth of Kentucky. According to the evidence at trial, during the loan application process, McDaniels gave the bank falsified financial records and other information, which misrepresented his assets and liabilities, and modified key terms of the lease agreement with the state. The state terminated the lease in December 2019. In March 2020, McDaniels requested loan forbearance from Kentucky Bank, falsely claiming that the reason he was unable to repay the loan was that the state of Kentucky had suspended rent payments under the lease due to the COVID-19 pandemic. To corroborate this lie about the pandemic, McDaniels fabricated a letter from a state employee purporting to suspend lease payments at the office building, and used the name and signature of that employee.
McDaniels was convicted in June 2021.
Under federal law, McDaniels must serve 85 percent of his prison sentence, and upon he release from prison will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Edward J. Gray, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; and Kathy Enstrom, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspector General; jointly announced the sentence.
The investigation was conducted by the FBI and FDIC-OIG. The United States was represented by Assistant United States Attorney Paul McCaffrey.
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Lexington Man Sentenced to 120 Months for Investment FraudRead the Press Release
LEXINGTON, Ky. —A Lexington, Ky., man, William S. Evans, III, 69, was sentenced to 120 months in federal prison Tuesday, by U.S. District Court Judge Karen K. Caldwell, for commodities fraud and wire fraud.
Evans, doing business as Turning Point Investments, purported to be a professional investor and solicited substantial amounts of money from numerous friends and acquaintances as investments, into a fund that he would manage by investing on the commodity futures market. According to his plea agreement, he accepted funds from more than 20 investors, amounting to nearly $17 million, and invested a portion of that money on the commodity futures market, without registering as a commodity pool operator. Evans convinced investors to turn over savings and liquidate their retirement accounts, promising substantial gains, low-risks, and coverage for any tax penalties. He reported back to his investors that there were substantial gains on their investments, paid out distributions upon request, and continuously solicited more investments. However, in reality, Evans lost nearly all the funds he invested on the commodity futures market, paid people distributions out of other people’s investments, and spent some of the investment funds on personal expenditures.
Evans pleaded guilty in June 2021. Evans was also ordered to pay restitution in the amount of $16,934,773.40.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Robert Holman, Special Agent in Charge, United States Secret Service; and Charles Vice, Commissioner, Kentucky Department of Financial Institutions; made the announcement.
The investigation was conducted by the United States Secret Service and Kentucky Department of Financial Institutions, with assistance from the U.S. Commodity Futures Trading Commission. The United States was represented by Assistant United States Attorney Kathryn Anderson.
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Whitley County Man Pleads Guilty to KidnappingRead the Press Release
LONDON, Ky. — A Corbin, Kentucky, man, Douglas M. Edmonson, 38, pleaded guilty on Thursday, before U.S. District Judge Robert E. Wier, to kidnapping.
According to the investigation and his guilty plea, Edmonson and his three co-defendants lured a victim to a location in Tennessee, using an unrelated party’s Facebook account. Edmonson and his co-defendants then forced the victim into a vehicle and transported her to Corbin. The victim was bound, blindfolded, and repeatedly assaulted during the 2-day kidnapping. The investigation revealed that Edmonson and his co-defendants employed firearms, as well as explosive devices during the kidnapping. On August 11, 2018, ATF agents were called to the kidnapping scene in Corbin, and assisted in locating and detonating several homemade pipe bombs.
Edmonson was indicted in September 2019. Edmonson’s co-defendants, Dallas Chain Perkins, Bryanna Soper , and Erik Peace, previously entered guilty pleas to kidnapping and are also awaiting sentencing.
“After being lured, restrained, and held for drugs or ransom, the victim in this case was threatened with firearms and homemade explosives, then brutally beaten, burned, and repeatedly assaulted,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “While nothing can make up for the unspeakable suffering the victim endured here, she knows that those who did this to her will now face the consequences of their appalling conduct. I want to commend the work of our law enforcements partners. Without their efforts, this result would not have been possible.”
“This defendant was an armed drug trafficker and part of a group that reigned terror and committed heinous acts of violence in our rural communities,” said ATF Special Agent In Charge R. Shawn Morrow of the Louisville Field Division. “I commend the efforts of the ATF agents and our Kentucky State Police partners who worked diligently on this year-long investigation to help bring a sense of justice to the victim. I hope this case sends the message that ATF and our law enforcement partners will not standby and allow these acts of violence.”
The investigation was conducted by the ATF and KSP, with assistance provided by the Williamsburg Police Department. The United States was represented by Assistant U.S. Attorney Jenna E. Reed.
Edmonson is scheduled to be sentenced on January 17, 2022. All 4 defendants face a maximum of Life in prison and a $250,000 fine. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Cincinnati Man Sentenced to 192 Months for Production of Child PornographyRead the Press Release
COVINGTON, Ky.— A Cincinnati, Ohio, man, Kevin Villamar, 29, was sentenced to 192 months on Friday, by U.S. District Judge David L. Bunning, after previously pleading guilty to the production of child pornography.
According to his plea agreement, Villamar admitted to traveling from Ohio to Boone County, Kentucky, on August 8, 2020, to engage in illicit sexual conduct with a minor. Villamar filmed the sexual conduct on his iPhone and sent the video of the conduct over Instagram to the victim, who was a minor.
Villamar pleaded guilty in June 2021.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; and Edward J. Gray., Special Agent in Charge, FBI, Louisville Field Office; and Sheriff Michael A. Helmig, Boone County Sheriff’s Office, announced the sentencing.
The investigation was conducted by the FBI and Boone County Sheriff’s Ofice. The United States was represented by Assistant U.S. Attorney Kyle Winslow.
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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Richmond Man Sentenced to 240 Months for Methamphetamine Trafficking and Firearm ChargesRead the Press Release
LEXINGTON, Ky.— A Richmond, Kentucky, man, John William Lawson, 57, was sentenced on Thursday to 240 months in prison, by U.S. District Judge Gregory Van Tatenhove, for distribution of more than 500 grams of methamphetamine, distribution of heroin, possession of a firearm in furtherance of drug trafficking, and possession of firearms by a convicted felon.
According to testimony at trial, Lawson was arrested after a traffic stop during which officers located a loaded handgun, drug paraphernalia, and more than $23,000 in United States currency. Subsequent search warrants at Lawson’s residence in Madison County revealed more than one pound of methamphetamine, which was determined to be 100% pure. The search also resulted in the seizure of an additional $57,000 in United States currency, thousands of Xanax pills, and several firearms.
Lawson was convicted in May 2021.
Under federal law, Lawson 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, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the Drug Enforcement Administration’s Louisville Field Division; Chief James Ebert, Richmond Police Department, and Sheriff Mike Coyle, Madison County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the DEA, the Madison County AHIDTA Task Force, the Richmond Police Department, and the Madison County Sheriff’s Office. The United States was represented in the case by Assistant U.S. Attorneys Todd Bradbury and David Kiebler.
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. t 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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Corbin Man Sentenced to 25 Years for Production of Child PornographyRead the Press Release
LONDON, Ky. — A Corbin, Ky., man, Andrew J. Kerr, 32, was sentenced on Tuesday, to 25 years in federal prison, by U.S. District Judge Claria Horn Boom, for production of child pornography.
From August 2020 through November 2020, Kerr recorded multiple videos of himself engaging in sexual acts with a minor victim. Kerr further transmitted the explicit images of the victim on Snapchat, a social media platform. Finally, Kerr saved and stored images and videos of the minor victim on his cell phone. In 2008, Kerr was convicted by the Commonwealth of Kentucky of Criminal Abuse in the First Degree for abusing a 12-year-old child.
Kerr pleaded guilty in June 2021.
Under federal law, Kerr 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 Life.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet Jr., Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police, announced the sentence.
The investigation was conducted by the Department of Homeland Security-HSI and Kentucky State Police Electronic Crimes Branch. The United States was represented by Assistant U.S. Attorney Jenna E. Reed.
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Belfry Man Sentenced to 197 Months for Conspiracy to Distribute 500 grams or more of MethamphetamineRead the Press Release
LONDON, Ky.— A Belfry, Ky., man, Brian Keith Wells, 45, was sentenced on Monday to 197 months in prison, by U.S. District Judge Robert E. Wier, for conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine.
According to Wells’ plea agreement, beginning in November 2018 and continuing until on or about February 2020, in Pike County, Ky., and elsewhere, Wells conspired with others to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
Wells pleaded guilty in April 2021.
Under federal law, Wells must serve 85 percent of his prison sentence, and upon his release from prison will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Scott, Special Agent in Charge, DEA, Louisville Field Division; Edward J. Gray, Acting Special Agent in Charge, Louisville Field Office; and Colonel Phillip Burnett, Commissioner, Kentucky State Police, announced the sentence.
The investigation was conducted by the DEA, FBI, and KSP. The United States was represented by Assistant U.S. Sam Dotson.
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Former Kentucky Warehouse Owner, Former Crop Insurance Agent Sentenced for Charges Related to Crop Insurance FraudRead the Press Release
LEXINGTON, Ky.— Michael McNew, former resident of Mt. Sterling, was sentenced to 86 months in federal prison today by U.S. District Court Judge Karen C. Caldwell for conspiracy to commit wire fraud, in furtherance of a crop insurance fraud scheme. Shortly thereafter, Roger Wilson, resident of Mt. Sterling, was sentenced to 12 months in federal prison, also by Judge Caldwell, for conspiracy to commit crop insurance fraud.
McNew, 51, was a crop insurance adjuster until 2012, when he became a crop insurance agent. According to his plea agreement, in his role as an adjuster, he agreed with agricultural producers to inflate or fabricate the damage to their crops and falsify the number of acres of crop planted when preparing adjustments on their claims of loss on federal Multi-Peril Crop Insurance (“MPCI”) policies. As an insurance agent, he admitted to committing fraud on MPCI claims of loss, as well as private claims of loss to his contracted employer, ARMtech Insurance Services. He continued to inflate or falsify acreage reported and damage to crop and assisted with submission of generic photograph of loss that falsely purported to show damage to a particular producer’s farm. He also admitted he submitted applications for crop insurance for individuals he knew were not farmers, but were relatives or friends of his farmer co-conspirators, in order to spread out losses and obtain better guarantees. In total, McNew admitted to causing a total loss of more than $23,000,000.
Wilson, 88, owned Clay’s Tobacco Warehouse, a tobacco warehouse, grading station, and auction house in Mt. Sterling, Kentucky. In his Plea Agreement, he admitted that from September 2013 until at least May 2018, he arranged for farmers to purchase poor quality tobacco, so they could use this tobacco to get fake grades to apply to their insurance claims of loss, which resulted in inflated indemnity payments. Documents filed with the Court demonstrated that Wilson also produced fake sales receipts, shipping reports, and bale tags, all in efforts to facilitate fraudulent crop insurance claims of loss. These documents showed that Wilson was responsible for over $9,000,000 in losses to the federal government.
McNew pleaded guilty in October 2020. Wilson pleaded guilty in May 2021.
Under federal law, McNew must serve 85 percent of his sentence, while Wilson must serve his entire sentence. Upon their release from prison, they will be under the supervision of the United States Probation Office for a period of three years. McNew must also pay restitution of $19,596,936. Wilson’s restitution order is still pending before the Court.
Other recent crop insurance fraud sentencings have resulted in the following sentences:
- Ronnie Jolly, 50, of Paris, Ky., was sentenced on August 13, 2021, to 36 months in prison and five years of supervised release.
- Bradley Price, 38, of Carlisle, Ky., was sentenced on August 20, 2021, to 30 months in prison and three years of supervised release.
- Brandon Price, 30, of Paris, Ky., was sentenced on August 20, 2021, to six months in prison and three years of supervised release.
- Jimmy Price, 61, of Carlisle, Ky., was sentenced on August 20, 2021, to six months in prison and three years of supervised release.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, Jason M. Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Edward J. Gray, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly made the announcement.
The investigations were conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency Special Investigations Staff, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The United States is represented by Assistant United States Attorneys Erin Roth and Kathryn Anderson.
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Breathitt County Man Pleads Guilty to Armed Marijuana TraffickingRead the Press Release
FRANKFORT, Ky. – A Lost Creek, Ky., man, Kevin Combs, 32, pleaded guilty on Thursday, before U.S. District Judge Gregory Van Tatenhove, to cultivating more than 50 marijuana plants and brandishing a firearm in relation to a drug trafficking crime.
According to Combs’ guilty plea agreement, on July 16, 2020, Kentucky State Police law enforcement responded to an investigation regarding suspected marijuana plants. At the location, Combs confronted one of the officers with a stainless-steel, loaded revolver pistol. When the officer told Combs to lower his pistol, he refused, ran away, and hid the pistol. The pistol was subsequently recovered as evidence. Combs further admitted to cultivating over 50 marijuana plants on the property that was part of the investigation.
Combs has several prior state felony convictions, including fleeing and evading law enforcement, escape, trafficking in a controlled substance first degree, and trafficking in a controlled substance second degree.
Combs was indicted in October 2020.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Colonel Phillip Burnett, Commissioner, Kentucky State Police, announced the guilty plea.
The investigation was conducted by ATF and Kentucky State Police. The United States was represented by Assistant U.S. Attorney Roger West.
Combs is scheduled to be sentenced on January 1, 2022. He faces a maximum of 20 years on the marijuana charge and not less than seven years on the firearm charge, which must run consecutively to other sentences. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Lexington Man Sentenced to 28 Years for Federal Drug and Firearm ChargesRead the Press Release
LEXINGTON, Ky. — A Lexington man, Marquis Antonio Tompkins, 42, was sentenced on Friday, by Chief U.S. District Judge Danny C. Reeves, to 336 months (28 years) in prison, followed by 6 years of supervised release, after being convicted of multiple counts of distributing heroin and fentanyl, as well as being a convicted felon in possession of a firearm.
According to evidence presented at trial, Tompkins sold a combination of fentanyl and heroin, on five separate occasions in Lexington, between February 2020 and March 18, 2020. The jury also found that Tompkins possessed a Taurus .40 caliber pistol, after having been previously convicted of a prior felony offense. Tompkins had four prior felony convictions, two for distributing cocaine, one for use of a firearm in the commission of a drug offense, and one for being a felon in possession of a firearm. Based on his prior criminal history Tompkins was determined to be a Career Offender, under federal law. Additionally, Tompkins was on supervised release from a prior conviction when he was charged with the present offenses.
Under federal law, Tompkins 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 six years.
“For the fifth time, this Defendant has been convicted of a felony drug trafficking or firearm offense,” said Carlton S. Shier, IV, Acting Untied States Attorney for the Eastern District of Kentucky. “His drug trafficking, illegal possession of guns, continued defiance of the law, and status as a Career Offender undoubtedly justify the substantial sentence he was given.”
“This sentence sends a strong message and will protect the community by removing an armed criminal from our streets,” said R. Shawn Morrow, Special Agent in Charge of the ATF, Louisville Field Division. “We are committed to making our communities a safe place. As part of that commitment, ATF, along with our local law enforcement partners, will continue to aggressively investigate, arrest and pursue prosecution of these offenders.”
Acting United States Attorney Shier; Special Agent in Charge Morrow; and Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by ATF, the Gateway Area High Intensity Drug Trafficking Area (HITDA) Task Force, and the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Roger West.
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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Alexandria Couple Indicted for Harboring AliensRead the Press Release
COVINGTON, Ky. - An Alexandria, Ky., couple was indicted on Thursday, on four counts of harboring aliens and one count of conspiracy to harbor aliens.
A federal grand jury sitting in Covington returned the indictment charging Yun Zheng, a.k.a. Wendy, 50, and Yan Qui Wu, a.k.a. Jason, 48, with four counts of concealing, harboring, or shielding a person for commercial and private financial gain, and one count of conspiracy to conceal, harbor, or shield persons for commercial and private financial gain.
The indictment alleges that, beginning in November 2014 and continuing through November 2017, Zheng and Wu illegally harbored four individuals for their commercial and private financial gain.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Lucas T. Cooper, Chief of the Alexandria Police Department, jointly announced the indictment.
The investigation preceding the indictment was conducted by the Department of Homeland Security- HIS and the Alexandria, Kentucky Police Department. The indictment was presented to the grand jury by Assistant U.S. Attorneys Kyle Winslow and David Marye.
A date for Zheng and Wu to appear in court has not yet been scheduled. For each of the five counts, they face up to ten years in prison, up to $250,000 fine, and restitution. However, any sentence following a conviction would be imposed by the Court, after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Former NFL Players Plead Guilty to Nationwide Health Care Fraud SchemeRead the Press Release
WASHINGTON – Three former National Football League (NFL) players have pleaded guilty for their roles in a nationwide scheme to defraud a health care benefit program for retired NFL players. A total of 15 defendants have pleaded guilty in connection with this scheme.
Clinton Portis, 40, of Fort Mill, South Carolina, and Tamarick Vanover, 47, of Tallahassee, Florida, pleaded guilty on Friday. Robert McCune, 40, of Riverdale, Georgia, pleaded guilty on August 24. The former players admitted to participating in a scheme to defraud the Gene Upshaw NFL Player Health Reimbursement Account Plan (the Plan). The Plan was established pursuant to the NFL’s 2006 collective bargaining agreement and provided for tax-free reimbursement of out-of-pocket medical care expenses that were not covered by insurance, and that were incurred by former players, their spouses, and their dependents – up to a maximum of $350,000 per player.
According to court documents, Portis caused the submission of false and fraudulent claims to the Plan on his behalf over a two-month period, obtaining $99,264 in benefits for expensive medical equipment that was not actually provided. Vanover recruited three other former NFL players into the fraudulent scheme and assisted them in causing false and fraudulent claims to be submitted to the Plan, obtaining $159,510 for expensive medical equipment that was not actually provided. McCune orchestrated the nationwide fraud, which resulted in approximately $2.9 million in false and fraudulent claims being submitted to the Plan and the Plan paying out approximately $2.5 million on those claims between June 2017 and April 2018.
Portis and Vanover pleaded guilty two days after a trial against them resulted in a hung jury and a mistrial on certain counts against Vanover. McCune, the third defendant in that trial, pleaded guilty to all charges against him on the second day of trial. A retrial on the charges against Portis and Vanover had been scheduled to begin today.
Portis and Vanover were originally indicted, along with McCune and seven other defendants, in the Eastern District of Kentucky in December 2019 for their roles in the fraud. Since the initial charges were announced, five additional retired NFL players were charged in the scheme. All 12 of the other defendants charged have pleaded guilty to conspiracy to commit health care fraud: Joseph Horn, Correll Buckhalter, Carlos Rogers, James Butler, Etric Pruitt, Ceandris Brown, John Eubanks, Antwan Odom, Darrell Reid, Anthony Montgomery, Fredrick Bennett, and Donald “Reche” Caldwell, who passed away in June 2020.
Portis and Vanover pleaded guilty to conspiracy to commit health care fraud and agreed to pay full restitution to the Plan. Portis is scheduled to be sentenced on Jan. 6, 2022, and Vanover is scheduled to be sentenced on Jan. 22, 2022. They each face a maximum penalty of 10 years in prison.
McCune pleaded guilty to conspiracy to commit wire fraud and health care fraud, 13 counts of health care fraud, 11 counts of wire fraud, and three counts of aggravated identity theft. McCune is scheduled to be sentenced on Nov. 19. He faces a maximum penalty of 20 years in prison for conspiracy to commit wire fraud and health care fraud, 10 years for each count of health care fraud, 20 years for each count of wire fraud, and two years for each count of aggravated identity theft.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
This case was investigated by the FBI and included efforts by various FBI Field Offices and Resident Agencies, including Augusta, Georgia; Birmingham and Mobile, Alabama; Cleveland, Ohio; Chicago, Illinois; Columbia, South Carolina; Dallas and Houston, Texas; Denver, Colorado; Jackson, Mississippi; Lexington, Kentucky; New Orleans, Louisiana; Miami, Jacksonville, and Tampa, Florida; Newark, New Jersey; Los Angeles, San Diego, Sacramento, and Newport Beach, California; Phoenix, Arizona; Salt Lake City, Utah; and Washington, D.C.
Trial Attorneys John (Fritz) Scanlon and Alexander J. Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case.
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Ft. Thomas Man Sentenced to 33 Months for Wire Fraud and Tax EvasionRead the Press Release
COVINGTON, Ky. — A Fort Thomas, Ky., man, Kevin R. Welsch, 48, was sentenced on Thursday, by Chief U.S. District Judge Danny C. Reeves, to 33 months, after previously pleading guilty to federal charges of wire fraud and tax evasion.
In his guilty plea, Welsch admitted defrauding clients of the debt collection business he owned and operated, RCC Services, Inc. Specifically, he admitted to collecting debts on behalf of creditors and keeping the money for his own use. He also admitted to collecting more than debtors owed (sometimes making multiple, unauthorized debits from their accounts) and charging his clients for fees/expenses that he never actually incurred. Finally, Welsch admitted evading taxes in the process.
Welsch pleaded guilty in May 2021.
Under federal law, Welsch 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. Restitution has yet to be determined.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation; Edward J. Gray., Acting Special Agent in Charge, FBI Louisville Field Office and Casey Kilgore, Chief of Police, Ft. Thomas Police Department, announced the sentencing.
The investigation was conducted by the IRS CI, the FBI, and the Ft. Thomas Police Department. The United States was represented in the case by Assistant United States Attorney Elaine K. Leonhard.
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Former Big Sandy Prison Employee Sentenced for Methamphetamine Trafficking and Bribery ChargesRead the Press Release
LEXINGTON, Ky. — A former Cook Supervisor at United States Penitentiary Big Sandy, Hank Williams, 56, of Weeksbury, Kentucky, was sentenced Monday to 210 months in federal prison, by Senior U.S. District Judge Joseph M. Hood, following his convictions for conspiracy to distribute 50 grams or more of methamphetamine, accepting a bribe by a public official, and using a communication device to facilitate a felony offense.
According to Williams’ plea agreement, he admitted to conspiring with an inmate, Librado Navarette, 34, and others, to distribute 50 grams or more of methamphetamine. Williams, a public official, also accepted bribes from Navarette, and others, and used the U.S. mail to possess and distribute the controlled substances.
Williams pleaded guilty in June 2021. Navarette pleaded guilty in July 2021 and is scheduled to be sentenced in October.
Under federal law, Williams 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 five years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; William Hannah, Special Agent in Charge, Department of Justice- Office of Inspector General, Chicago Field Office, Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Division; Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburg Division; and Michael Bosse, Chief of the Georgetown Police Department, announced the sentence.
The investigation was conducted by the Department of Justice’s Office of the Inspector General, the FBI, the United States Postal Inspection Service, and the Georgetown Police Department. The United States was represented by Assistant U.S. Attorney Ron Walker.
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Romanian National Man Sentenced to 140 Months for Money Laundering ConspiracyRead the Press Release
LEXINGTON, Ky.— A Romanian National, Adrian Mitan, 36, was sentenced to 140 months in federal prison on Friday, by U.S. District Judge Robert Wier, after pleading guilty for his role in three separate schemes charged across three separate indictments: a money laundering conspiracy arising from online auction fraud scheme (commonly referred to as eBay fraud), a credit card phishing and brute-force attack scheme, and a vishing scheme, all designed to steal money from Americans.
According to his plea agreement, Mitan worked in conjunction with others to post advertisements for goods to sales websites like Craigslist. Once they convinced U.S. based victims to pay for the item, they laundered the money through a sophisticated operation that included the Eastern District of Kentucky.
Mitan also agreed that he was involved in a credit card fraud scheme that involved phishing for credit card information from victims and then brute force attacking point of sale systems to obtain all necessary data to create new cloned credit or debit cards. He further admitted to then using those cloned cards to withdraw substantial sums from ATMs. A network of U.S.-based coconspirators would convert this money to bitcoin and send the proceeds over seas to the Defendant. According to his Plea Agreement, the Defendant possessed roughly 16,000 unique credit or debit card codes.
Finally, the Defendant conceded that he participated in a vishing scheme, obtaining debit or credit card codes by hacking into small businesses’ Voice over Internet Protocol systems and then deploying a script to contact financial institution customers to defraud them in providing their personal debit and credit card codes. Mitan admitted that he and his coconspirators obtained codes for roughly 2,130 access devices, targeting more than ten financial institutions’ customers.
Mitan pleaded guilty in January 2020.
Under federal law, Mitan must serve 85 percent of his prison sentence.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Assistant Director Michael D’Ambrosio, U.S. Secret Service, Office of Investigations; Colonel Phillip Burnett, Commissioner, Kentucky State Police; Chief Lawrence Weathers, Lexington Police Department; Jonathan Larsen of the IRS-Criminal Investigations (IRS-CI) New York Field Office; and Special Agent in Charge Kenneth Cleevely, U.S. Postal Service – Office of Inspector General (USPS-OIG); announced the sentence.
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 Forces (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Criminal Division’s Money Laundering and Asset Recovery Section provided significant support and the Criminal Division’s Office of International Affairs provided significant support in securing and coordinating the arrests and extraditions from Romania of more than a dozen defendants.
This case was prosecuted by Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the U.S. Attorney’s Office for the Eastern District of Kentucky and Senior Trial Attorney Timothy C. Flowers and Senior Counsel Frank H. Lin of the Criminal Division’s Computer Crime and Intellectual Property Section.
Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases. Tips to avoid becoming a victim of online auction fraud can be found here on the U.S. Secret Service’s website.
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Justice Department Obtains Settlement from Kentucky Landlord and Rental Manager to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
LEXINGTON, Ky.– The Justice Department today announced it has reached an agreement with defendants Gus and Penny Crank to resolve a Fair Housing Act lawsuit alleging that Gus Crank sexually harassed female tenants while managing a Dayton, Kentucky rental property owned by his wife, Penny Crank.
Under the consent order entered by the U.S. District Court for the Eastern District of Kentucky, the Cranks must pay $48,000 in damages to four female tenants harmed by Gus Crank’s harassment and a $2,000 civil penalty to the United States. The Cranks are also prohibited from being involved in property management of rental units in the future; Penny Crank recently sold the rental property where Gus Crank’s harassment occurred.
The United States’ lawsuit alleged that Gus Crank’s harassment spanned a period of ten years. The allegations included that Gus Crank engaged in unwelcome sexual touching, offered to reduce monthly rental payments in exchange for sex, made unwelcome sexual comments and advances, made intrusive and unannounced visits to female tenants’ homes to further his sexual advances and evicted or threatened to evict female tenants who objected to or refused his sexual advances.
“No woman should ever have to endure sexual harassment to secure housing for herself or her family,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment is unacceptable and illegal, and the Justice Department will continue to vigorously enforce the Fair Housing Act to combat this type of discrimination and to obtain relief for victims.”
“Sexual harassment in housing deprives its victims of the safety and security that their home is supposed to provide,” said Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “That makes our convincing enforcement of the Fair Housing Act critical to ensuring that victims can gain relief from this disgraceful conduct and seek a safe and secure home for their families.”
This case was jointly litigated by attorneys in the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Kentucky. The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s Initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the Initiative in October 2017, the Department of Justice has filed 22 lawsuits alleging sexual harassment in housing and recovered over $4 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
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Frankfort Man Convicted of MurderRead the Press Release
LONDON, Ky. - A Frankfort, Kentucky man, Patrick Baker, 43, was convicted on Wednesday, by a federal jury sitting in London, of first-degree murder committed during a drug trafficking crime.
After 6 hours of deliberation, following an approximately 3-week trial, the jury convicted Patrick Baker of one count of first-degree murder during a drug trafficking crime. According to testimony at trial, Baker fatally shot Donald L. Mills, Jr., 29, during an armed home invasion on May 9, 2014 in the Stinking Creek community. Mr. Mills’ pregnant wife and children were held at gunpoint while Baker ransacked the victims’ home for oxycodone pills. Baker entered the Mills’ home posing as a United States Marshal.
According to the evidence at trial, the KSP firearm forensics’ laboratory tied shell casings recovered from the victim’s master bedroom to Baker’s Kel Tec PF9. The Kel Tec 9mm was later recovered from a mud pit in Bell County past the “Bridge to Nowhere.” A surveillance video from the London Dollar General showed Baker purchasing plastic handcuff approximately 7 hours before the murder. The same handcuffs were later recovered feet from where the victim was fatally shot. Furthermore, cell tower data was used to trace Baker’s movements throughout May 8th and 9th, 2014 from London, to Stinking Creek, to Bell County.
Baker was indicted in May 2021.
“At its core, this case was about one thing: Patrick Baker’s role in the death of Donald Mills,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “Having heard the evidence, the jury found him guilty. I want to commend the steadfast work of our law enforcement partners and our trial team. This case warranted their dedication, and the jury’s verdict justifies their thorough effort.”
“Today’s guilty verdict sends a significant message and demonstrates our commitment to justice,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Division. “The result of this case would not have been possible without the excellent work of the ATF London Office, our law enforcement partners, and the United States Attorney’s Office. An examination of the evidence was overwhelmingly in support of Patrick Baker’s guilt. This case is a strong example of the work ATF is doing, every day, to combat violent crime in our communities.”
Acting United States Attorney Shier; Special Agent in Charge Morrow; and Colonel Phillip Burnett, Jr., Commissioner, Kentucky State Police, jointly announced the conviction.
The investigation was conducted by Bureau of Alcohol, Tobacco, Firearm and Explosives and the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Jenna Reed.
Baker will appear for sentencing on December 21, 2021. He faces up to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Nigerian National Sentenced to 51 Months for Laundering Proceeds of Online Elder ExploitationRead the Press Release
LEXINGTON, Ky. - A Nigerian National residing in Indianapolis, Ismaila Fafunmi, was sentenced to 51 months in federal prison on Friday, by U.S. District Judge Karen Caldwell, for charges related to a money laundering operation, which laundered the proceeds of romance fraud and grant fraud schemes targeting senior citizens.
According to Court records, Fafunmi was involved in a network that was comprised of several layers. The initial layer consisted of scammers using computers in Nigeria who preyed on elderly citizens of the United States by impersonating romantic companions eager to make lasting relationships on dating websites or by offering fake federal grants to senior citizens. For his part, Fafunmi admitted in his Plea Agreement that, beginning in June 2018, he and his co-conspirators would set up fake profiles on dating websites profiling American men, often military members. The purpose of the scams was to defraud United States-based victims of their money.
If the victims sent money by bank deposit, Fafunmi and his co-conspirators would create bank accounts in various names to retrieve the fraudulent funds. Victims also sent money in the form of cash and postal money orders to addresses belonging to Fafunmi and his co-conspirators. Fafunmi and his co-conspirators would retain a portion of the victims’ funds, and then convert the remainder to wire transfers, to be sent back to co-conspirators in Nigeria.
Two victims of the scheme lived in Kentucky. One sent more than $200,000 in funds, gift cards, and electronic devices, to a person she believed to be her boyfriend. Another sent over $170,000, for what she believed to be fees associated with a federal grant. Fafunmi received portions of these funds, kept some of the money, and sent the remainder abroad.
Fafunmi pleaded guilty in August 2020.
Under federal law, Fafunmi 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 3 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Edward J. Gray, Acting 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 Kathryn Anderson.
This case is being prosecuted as part of the Department of Justice’s efforts to identify and prosecute those persons who facilitate elder financial exploitation. The Department of Justice’s Elder Justice Mission, being carried out through the Kentucky Elder Justice Task Force, is to seek justice for victims of elder financial exploitation. Anyone who knows someone who may be a victim of an elder financial exploitation, is encouraged to contact law enforcement.
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Whitley County Man Sentenced to 27 Years for Producing Child PornographyRead the Press Release
LONDON, Ky. - A Williamsburg, Ky., man, Amos Sparkman, 26, was sentenced Thursday, to 27 years in federal prison for production of child pornography, by U.S. District Judge Claria Horn Boom.
According to his plea agreement, in October 2020, Sparkman started an online relationship with a minor female using the social media platform Snapchat. Sparkman confessed to a sexual relationship with the minor and possessed a video of the minor performing sexual acts on Sparkman. Sparkman admitted that he used the minor victim to produce visual depictions of the minor engaging in sexually explicit conduct and that the depictions were then transported using Snapchat.
Sparkman was previously convicted of Harassment and Physical Contact with a child and of Sexual Abuse, Second Degree of another minor. Sparkman was a registered sex offender at the time he produced child pornography with his third minor victim. When law enforcement arrested Sparkman, he stated he was planning to meet another girl.
Sparkman was indicted in January 2020 and entered a guilty plea on March 2, 2021.
Under federal law, Sparkman must serve 85 percent of his prison sentence, and upon his release from prison will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Edward J. Gray-, Acting Special Agent in Charge, FBI, Louisville Field Office, and Colonel Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI with assistance from the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Jenna E. Reed.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the 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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Trimble County Man Sentenced to 180 Months for the Distribution of Child PornographyRead the Press Release
FRANKFORT, Ky. – A Bedford, Ky., man, Leonard J. Andrew, Jr., 36, was sentenced on Tuesday to 180 months in federal prison, by U.S. District Judge Gregory VanTatenhove, for the distribution of child pornography.
According to his plea agreement, on February 7, 2018, Andrew admitted to sending multiple explicit videos and images of minors to at least two different recipients via Facebook Messenger. The videos and images sent by Andrew contained images of minors engaged in sexual activity and were sent to recipients outside of Kentucky.
Andrew pleaded guilty in November 2020.
Under federal law, Andrew must serve 85 percent of his prison sentences. Andrew will be under the supervision of the U.S. Probation Office for 25 years, following his release
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Colonel Phillip Burnett, Commissioner, Kentucky State Police; jointly announced the sentences.
The investigation was conducted by the DHS-HSI and KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was brought 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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Two Former Federal Medical Center Correctional Officers Indicted for Civil Rights Violations, including Sexual Abuse of InmatesRead the Press Release
LEXINGTON, Ky. – In separate indictments, two former Correctional Officers, who worked for the Bureau of Prisons’ Federal Medical Center in Lexington, have been indicted for federal civil rights and sexual abuse violations.
A federal grand jury sitting in Lexington returned an indictment charging Christopher Brian Goodwin, 45, of Winchester, Ky., of one count of deprivation of rights under color of law, one count of aggravated sexual abuse by force, seven counts of abusive sexual contact, three counts of sexual abuse of a ward, and one count of providing a prohibited object to an inmate.
Goodwin’s indictment alleges that on several occasions, between April 2019 and September 2019, he engaged in sexual conduct with four inmates in BOP custody. The indictment alleges that on at least one of those occasions, he sexually abused an inmate by using a threat that if the victim did not comply, they would be subjected to death, bodily injury, or kidnapping. Goodwin is also alleged to have provided cigarettes to an inmate
In a separate indictment, Hosea Lee, Jr., 42, of Phenix City, Al., was charged with two counts of deprivation of rights under color of law, two counts of aggravated sexual abuse by force or threat, eight counts of sexual abuse of a ward, two counts of abusive sexual contact, and one count of providing a prohibited object to an inmate.
Lee’s indictment alleges that, between August 2019 and December 2019, he engaged in sexual conduct with five inmates in BOP custody. It is alleged that Lee sexually abused two of the victims by using a threat that their families and children would be killed or harmed if they did not comply. Lee’s indictment also alleges that he was a drug treatment specialist and illegally provided Suboxone to an inmate, among other prohibited items.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; William J. Hannah, Special Agent in Charge, Department of Justice Office of the Inspector General, Chicago Filed Office; and Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Office, announced the indictment.
The investigation preceding the indictment was conducted by the DOJ OIG and the FBI. The cases are being handled by Assistant U.S. Attorneys Tashena Fannin and Kate K. Smith.
Goodwin is scheduled to appear for his initial appearance on Friday, July 30 in Lexington, and Lee is scheduled to appear for his initial appearance on Friday, August 6, also in Lexington. For their respective charges, they each face up to one year in prison of the deprivation of rights under color of law charge; up to life in prison for the aggravated sexual abuse charges; up to 15 years for the sexual abuse of a ward charges; up to two years for the sexual abuse by force; up to 20 years for providing a narcotic to an inmate charge; and up to six months for providing other prohibited objects to an inmate. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Mount Washington Laboratory Agrees to Pay $1.2 Million to Resolve Allegations of False Claims for Urine Drug Testing ServicesRead the Press Release
LEXINGTON, Ky. – Bluewater Toxicology, LLC, a clinical laboratory in Mount Washington, Ky., has agreed to pay $1,252,403.40 to resolve civil allegations that it violated the False Claims Act, a federal law that prohibits submitting false or fraudulent claims to the federal government.
According to the settlement agreement, the Unites States alleged three issues relating to claims for urine drug testing services that Bluewater submitted to Medicare, Kentucky Medicaid, Indiana Medicaid, TRICARE, and CHAMPVA. First, the United States alleged that Bluewater submitted claims that mispresented the number of drug classes tested. Specifically, the United States contended that from January 2016, through September 2018, Bluewater submitted claims for definitive urine drug tests of 22 or more drug classes. The United States alleged that these claims were false because Bluewater tested for fewer than 22 drug classes. By billing as if they tested for a greater number of classes, Bluewater secured higher reimbursements to which it was not entitled.
Second, the United States alleged that from January 2016, through December 2017, Bluewater submitted certain claims without sufficient documentation to support the treating medical physician’s intent to order the test that was billed. By billing for these tests, Bluewater again secured reimbursements to which it was not entitled.
Finally, the United States alleged that Bluewater billed Medicare for specimen validity testing, a quality control process used to analyze a urine specimen to ensure that it has not been diluted or adulterated. Since January 2014, Medicare’s guidance has stated that specimen validity testing should not be separately billed to Medicare. The United States alleged that Bluewater nonetheless submitted claims to Medicare for specimen validity testing during the period October 2014 to May 2016.
“Whenever the valuable resources of government health care programs are dissipated, to those who are not entitled to them, that diminishes the ability of these critically important programs to meet the needs of their beneficiaries,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “We must all remain committed to doing our part to protect the fiscal security of these vital resources.”
This matter arose from Bluewater’s self-disclosure of false claims for urine drug testing services. Because Bluewater self-disclosed the misconduct, it was able to resolve its liability for only 1.5 times the amount of monetary loss caused by its false claims. By statute, the False Claims Act imposes liability for three times the amount of loss suffered by the government.
Healthcare providers may voluntarily disclose self-discovered evidence of fraud to the U.S. Department of Health & Human Services Office of Inspector General. More information about how to self-disclose misconduct under the Provider Self-Disclosure Protocol is available at https://oig.hhs.gov/compliance/self-disclosure-info/protocol.asp.
The United States also encourages anyone with information about potential fraud, abuse, or mismanagement of Medicare or Medicaid funds to call the U.S. Department of Health and Human Services’ hotline at 800-HHS-TIPS (800-447-8477). False Claims Act allegations can also be brought under the qui tam provisions of the Act, which encourage whistleblowers to bring suit on behalf of the United States and potentially share in any financial recovery.
This investigation was conducted by the United States Attorney’s Office for the Eastern District of Kentucky, the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse Control, the Indiana Attorney General’s Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services Office of Inspector General, the Defense Health Agency’s Program Integrity Division, and the Department of Veterans Affairs’ Office of Inspector General. The United States was represented by Assistant United States Attorney Meghan Stubblebine.
The settlement resolves claims asserted by the United States; there has been no determination of liability.
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Fleming County Magistrate Sentenced to 66 Months for Crop Insurance Fraud and Tax FraudRead the Press Release
FRANKFORT, Ky. – Christopher G. Hickerson, 47, a Fleming County Magistrate and farmer, was sentenced to 66 months in federal prison Wednesday, by U.S. District Judge Gregory Van Tatenhove, for conspiracy to commit crop insurance fraud and tax fraud.
The evidence presented established that, from 2009 until 2016, Hickerson filed false claims of loss on his Multi-Peril Crop Insurance (“MPCI”) policies. MPCI policies are federally sponsored crop insurance policies, which are funded through taxpayer money. In his plea agreement, Hickerson admitted to committing crop insurance fraud with the assistance of coconspirators Roger Wilson, former owner of Clay’s Tobacco Warehouse, and Debra Muse, former employee at Clay’s Tobacco Warehouse, by obtaining fake Clay’s Tobacco Warehouse sales receipts and grading reports that made it appear as though he produced and sold poor quality tobacco, and then submitting those on his claims of loss. Testimony during a sentencing hearing revealed that Hickerson employed other schemes to defraud the federal crop insurance program, including by placing crop insurance policies in his family member and friends’ names covering his own crop. As a result, Hickerson fraudulently caused a loss of nearly $1 million to the taxpayer-funded insurance program.
Hickerson further admitted that he underreported his crop sales income in 2012, 2013, and 2015. This caused a second loss to the federal government – this time to the IRS – of more than $150,000 in unpaid taxes.
Under federal law, Hickerson must serve 85 percent of his sentence. Upon his release from prison, he will be under the supervision of the United States Probation Office for a period of three years. Hickerson must also pay restitution that will be determined later by the Court.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky;
Jason M. Williams, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Division; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance, Fraud Investigation Division, jointly announced the sentence.
The investigation was conducted by the USDA, FBI, IRS, and the Kentucky Department of Insurance. The United States was represented by Assistant U.S. Attorneys Kathryn Anderson and Erin Roth.
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Berea Man Sentenced to 214 Months for Production of Child PornographyRead the Press Release
FRANKFORT, Ky. — A Berea, Ky., man, Bradley Scott Helton, 33, was sentenced on Thursday to 214 months in federal prison, by U.S. District Judge Gregory VanTatenhove, for using a minor to produce child pornography.
According to Helton’s plea agreement, on May 16, 2020, he communicated with a 7-year-old victim, via an app called “Kiss Kiss: Spin the Bottle.” Helton admitted to chatting with the victim, sending the victim sexual videos and pictures, and requesting the victim send sexual videos in return. Helton admitted that he persuaded and used the 7-year-old victim to engage in sexually explicit conduct, for the purpose of producing a visual depiction of that conduct. He further admitted that the images traveled in interstate commerce when the victim, who was in Texas, sent them to him, in Kentucky, via the app.
Helton pleaded guilty in March 2021.
Under federal law, Helton must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 25 years, following his release from prison.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Colonel Phillip Burnett, Commissioner of the Kentucky State Police, announced the sentence.
The investigation was conducted by DHS-HSI 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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Perry County Woman Pleads Guilty to Union EmbezzlementRead the Press Release
LONDON, Ky. – A Bulan, Ky., woman, Linda Shepherd, 54, pleaded guilty on Monday, June 28, before U.S. Magistrate Judge Hanly A. Ingram, to embezzling assets from a labor union.
According to Shepherd’s guilty plea agreement, from April 2011 to March 2018, she was employed as the financial secretary of United Steelworkers (USW) Local 14637, the union for employees of Appalachian Regional Healthcare, in Hazard, Kentucky. As financial secretary, Shepherd was responsible for paying the union’s bills and maintaining its financial records. USW policy dictated that a union officer’s salary compensated the individual for personal time spent doing union business. “Lost time” is only paid when an officer has membership approval to miss work to conduct union business. Shepherd admitted to misappropriating union funds by paying herself for lost time in instances when she did not lose wages. She also admitted to unauthorized use of union funds to pay for meals and pay herself for unauthorized services rendered.
In total, between May 12, 2011 and March 20, 2018, Shepherd willfully misappropriated $39,491.69 in union funds. These additional payments were not included in the annual union report that disclosed officer compensation to the membership.
“Linda Shepherd used her position as a financial secretary to steal money from a union representing workers in her community,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “In order to enrich herself, she betrayed a trust placed in her and damaged the financial well-being of an organization designed to protect the interests of its members. She is now facing the consequences of her crime.”
“Safeguarding financial integrity in labor unions and combating fraud is a high priority for the U.S. Department of Labor,” said Megan Ireland, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “While the vast majority of union officials do their work diligently and without incident, Linda Shepherd betrayed the trust placed in her by the USW membership and embezzled over $39,000 from the USW, while collecting a salary from her employer and the union, at the expense of the USW and its members. OLMS will continue to work with our partners to identify criminal violations and pursue appropriate legal action when someone unlawfully exploits their union position to enrich themselves without regard to the best interests of union members.”
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky and Megan Ireland, District Director, DOL Office of Labor-Management Standards , jointly announced the guilty plea.
The investigation was conducted by the Department of Labor. The United States was represented by Assistant U.S. Attorney Kate Smith.
Shepherd is scheduled to be sentenced on November 1. She faces a maximum of five years in prison and a fine of up to $250,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Dry Ridge Man Sentenced to 264 Months for Armed Methamphetamine TraffickingRead the Press Release
COVINGTON, Ky. – A Dry Ridge, Kentucky, man, Paul Stapleton, 48, was sentenced Friday to 264 months in federal prison, by U.S. District Judge David Bunning, for conspiring to distribute 500 grams or more of methamphetamine and possession of a short-barreled shotgun in furtherance of his drug trafficking.
Stapleton led a conspiracy that distributed more than 1.5 kilograms of crystal methamphetamine throughout Northern Kentucky. Agents seized significant amounts of methamphetamine in Campbell and Grant Counties, on October 21, 2019, and seized multiple firearms, including two short-barreled shotguns from the Grant County residence that was the focus of the conspiracy. Stapleton had four prior felony convictions for drug offenses and committed these crimes while on parole.
Several of Stapleton’s co-conspirators have already been sentenced to prison terms: Steven Green (96 months); Steven Ballard (15 months); Lee Grimm (72 months); Donald Kaylor (54 months); A.J. Phillips (120 months); Dewey Phillips (36 months); George Pickett (37 months); Crystal Prewitt (54 months); Joseph Dylan Smith (50 months); Morgan Smith (12 months and one day); April Stapleton 60 months; Jeremy Thomas (54 months); and Amber Turner (18 months).
Stapleton pleaded guilty in April 2021.
Under federal law, the defendants must serve 85 percent of their prison sentences. Upon his release, Stapleton will also be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Christopher Conners, Director of the Northern Kentucky Drug Strike Force; and Colonel Lee Estepp, Chief of the Bellevue Police Department, jointly announced the sentences.
The investigation was conducted by ATF, the Northern Kentucky Drug Strike Force, and the Bellevue Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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Atlanta Area Man Convicted of Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. – An Ellenwood, Georgia man was convicted late Thursday, by a federal jury sitting in London, of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
Following a four-day trial before United States District Judge Robert E. Wier, the jury convicted 36-year-old Quinton Troy Hall of engaging in a conspiracy to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. The jury also found that Hall had a previous, final conviction for a serious violent felony, specifically Aggravated Assault.
The evidence at trial established that Hall traveled from Atlanta into Corbin, Kentucky to distribute methamphetamine. Hall supplied several different methamphetamine dealers in Whitley, Knox, and Laurel Counties. Records established Hall moved drug proceeds through Western Union wire transfers, Green Dot cards, and Money Gram. Four eyewitnesses testified that Hall was armed when dealing in the Eastern District of Kentucky. According to testimony at trial, Hall engaged in violent debt collection tactics, including assaulting co-conspirators with firearms. On January 24, 2020, the Henry County Sheriff’s Office Gang Suppression and Vice Unit executed a warrant at Hall’s Georgia residence. Officers seized a Sig Sauer p250, Taurus GZC 9mm, Taurus Judge pistol, Keltec subgun 2000 rifle, Aero Precision X15 rifle, and Radom Pioneer Arms Hellpup. Hall attempted to flee by climbing up into the attic.
Hall was indicted in May 2020 along with eleven co-conspirators, all of whom have been convicted. The case ultimately involved the seizure of 13 firearms, over $10,000 in U.S. Currency, and several kilograms of methamphetamine. The conspiracy involved the following convictions:
- Angelia Hammons, 47, of Corbin, was convicted of conspiracy to distribute methamphetamine on July 28, 2020.
- Larry Tyler Hammons, 25, of Corbin, was convicted of conspiracy to distribute methamphetamine on December 21, 2020.
- Glennis Reed Nantz, 49, of Woodbine, Kentucky, was convicted of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking on December 14, 2020.
- Tramone Horne, 36, of Buffalo, New York, was convicted of conspiracy to distribute methamphetamine on December 17, 2020.
- Alexander Lebeau, 27, of London, was convicted of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense on January 26, 2021.
- Krysten Powell, 27, of Corbin, was convicted of conspiracy to distribute methamphetamine on December 9, 2020.
- Johnathon Ray Proffitt, 29, of London, was convicted of conspiracy to distribute methamphetamine and felon in possession of a firearm on December 2, 2020.
- Dustin Walters, 37, of Woodbine, Kentucky, was convicted of conspiracy to distribute methamphetamine on December 14, 2020.
- Larry Elkins, 39, of Calhoun, Georgia, was convicted of conspiracy to distribute methamphetamine.
- Jennifer Folgman, 41, of Corbin, was convicted of conspiracy to distribute methamphetamine on July 6, 2020.
- Glennis Kody Nantz, 26, of Corbin, was convicted of conspiracy to distribute methamphetamine in a related indictment on May 28, 2020.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Robert S. Morrow, Special Agent in Charge, ATF Louisville Field Division; and Chief Rusty Hedrick, Corbin Police Department, jointly made the announcement.
The investigation was conducted by the ATF and Corbin Police Department, with assistance from Georgia’s Henry County Sheriff’s Office. The United States was represented in the case by Assistant U.S. Attorney Jenna E. Reed.
Hall will appear for sentencing on October 29, 2021. He faces a mandatory minimum sentence of 15 years and a maximum of life imprisonment. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement.
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Perry County Man Convicted on Federal Charges of Kidnapping and Cocaine TraffickingRead the Press Release
LONDON, Ky. - A Perry County man was convicted on Monday, by a federal jury sitting in London, of conspiracy to distribute 500 grams or more of cocaine, possession of a firearm in furtherance of that conspiracy, possession of a firearm as a convicted felon, kidnapping, and conspiracy to commit a kidnapping.
The jury convicted 65-year-old Thomas Hamblin following a five-day trial, and approximately four hours of deliberations.
According to evidence at trial, Hamblin was working with others, including Bobby Sizemore, Robert Keith Caudill, and Doyle Back, to obtain kilogram quantities of cocaine, and to sell that cocaine to others in the Perry County area. Evidence further revealed that, after an attempted drug deal, Hamblin coordinated with others, including Luke Holbrook and Michael Rayburn, to kidnap and assault two victims in Tazewell, Tennessee. Specifically, Hamblin recruited Luke Holbrook into the plot and provided him with a firearm and ammunition. Holbrook, assisted by Rayburn and another individual, then held two victims at gun point, tied them up with duct tape, assaulted them with a baseball bat, and interrogated them, in an attempt to retaliate against them and recover Hamblin’s money or drugs. Portions of this kidnapping and assault were recorded on a cell phone that was recovered from the scene. That same cell phone revealed that Hamblin was contacted in the middle of the assault and kidnapping.
Thomas Hamblin was indicted in July of 2020, following an investigation by the DEA, the Hazard Police Department, Operation UNITE, the Tazwell Tennessee Police Department, the Claiborne County Sheriff’s Department, and the Kentucky State Police.
All of Hamblin’s co-defendants have pled guilty. Holbrook and Rayburn pled guilty to kidnapping. Rayburn was sentenced to 135 months in prison and Holbrook awaits sentencing. Sizemore, Back, and Caudill have all pled guilty to drug charges and are awaiting sentencing.
Hamblin will appear for sentencing on October 26, 2021, and he faces from 10 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.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the DEA Louisville Field Division; Vic Brown Executive Director of AHIDTA; Minor Allen, Chief of the Hazard Police Department; Nancy Hale, President/CEO of Operation UNITE; Jeremy Meyers, Chief of the Tazewell Police Department; Bob Brooks, Sheriff of the Claiborne County Tennessee Sherriff’s Department, and Commissioner Phillip “PJ” Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the convictions. The United States was represented in the case by Assistant U.S. Attorney Andrew H. 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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement
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Former Colorado Man Sentenced to 51 Months for Failure to Register as a Sex Offender and Possession of an Unregistered FirearmRead the Press Release
LEXINGTON, Ky. – A former Colorado resident, Brendan Camous, 27, was sentenced Tuesday, to 51 months in federal prison, by U.S. District Court Judge Karen Caldwell, for failure to register as a sex offender and possession of an unregistered firearm.
According to Camous’s plea agreement, a 2014 conviction in Colorado required Camous to register as a sex offender. Camous last registered as a sex offender in January 2015 and never again updated his address in Colorado – or any other state, including Kentucky. In April 2017, the U.S. Marshals Service began investigating Camous for violations of Sex Offender Registration and Notification Act (SORNA). Evidence obtained from a rural property in Nicholas County, Kentucky indicated that Camous resided in a shack on the property with another sex offender, Clinton Peterson. Following an August 2019 criminal complaint against both Camous and Peterson, for violations of SORNA, a U.S. Marshals-led task force apprehended the two in Bath County, Kentucky, on September 17, 2020. At the time of the arrest, law enforcement located an unregistered sawed-off shotgun under Camous’s bed in the home that he shared with Peterson.
Camous pleaded guilty in April of 2021 to the SORNA violation and possession of an unregistered firearm.
Under federal law, Camous must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 10 years, following his release.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Norman Euell Arflack, U.S. Marshal for the Eastern District of Kentucky; Commissioner Phillip Burnett, Jr., Kentucky State Police (KSP); Shawn Morrow, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF); and Jeff Sidles, Nicholas County Sheriff, announced the sentencing.
The investigation was conducted by the U.S. Marshals Service, ATF, KSP, and the Nicholas County Sheriff’s Office. The U.S. Attorney’s Office was represented by Assistant U.S. Attorneys David Marye and Mary Melton.
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Two Pulaski County Constables Convicted of Conspiring to Violate the Civil Rights of OthersRead the Press Release
LONDON, Ky. – Two Pulaski County Constables were convicted late Friday, by a federal jury sitting in London, of federal civil rights violations and possession with intent to distribute methamphetamine.
After approximately three and a half hours of deliberations, following a five-day trial, the jury convicted Michael Wallace, 47, of Bronston, Ky., and Gary Baldock, 56, of Somerset, Ky., of violating the civil rights of persons within Pulaski County, and of possession with intent to distribute methamphetamine.
According to the evidence at trial, Wallace and Baldock worked together to violate people’s civil rights by fabricating evidence, which was used as a basis to arrest, to search, and to seize the property of others. Both Wallace and Baldock were also found to have possessed methamphetamine, for the purpose of planting the drug on potential suspects.
“This case is a disgraceful example of a grave betrayal of trust, a profound violation of the rights of others, and a real danger to our community,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “When those charged with enforcing the law and protecting the public turn instead to corruption, self-interest, and violating the rights of others, that does enduring damage to our communities. It also undermines the hard work and true dedication of so many. I want to thank the FBI and our trial team for the hard work and dedication that lead to these guilty verdicts.”
"As evidenced by the jury's guilty verdict, the actions of the two Pulaski County constables were not only harmful to the individuals they swore under oath to protect, but they also undermined public trust and confidence in law enforcement," said Special Agent in Charge Robert Brown of the FBI’s Louisville Field Office. "The FBI will not tolerate those who abuse their authority for their own personal gain and is committed to rooting out public corruption at all level."
Acting United States Attorney Shier and Special Agent in Charge Brown jointly announced the verdicts.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Jason Parman.
Wallace and Baldock will appear for sentencing on October 18, 2021. They each face up to 10 years for the civil rights convictions; Baldock faces up to 20 years for the methamphetamine conviction; and Wallace faces a minimum of five years, up to 40 years, for the methamphetamine conviction. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Boone County Man Sentenced to 126 Months for Armed Methamphetamine TraffickingRead the Press Release
COVINGTON, Ky.— Larry Ray Clemons, 40, of Burlington, Ky., was sentenced to 126 months in federal prison on Thursday, by U.S. District Judge David Bunning, after pleading guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to Clemons’ guilty plea agreement, on August 31, 2020, law enforcement executed a search warrant at his address and found 13.74 grams of methamphetamine and cash in his pants pockets. Law enforcement also found an additional 46.74 grams of methamphetamine, a loaded 9mm handgun, additional cash, and a digital scale in the residence. Clemons admitted that he intended to distribute the methamphetamine and that he possessed the firearm for protection in his drug trafficking.
Clemons was previously convicted of illegal possession of a controlled substance, in 2018. Clemons pleaded guilty to the federal charges in March.
Under federal law, Clemons 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 four years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Office; and Sheriff Michael Helmig, Boone County Sheriff’s Office, announced the sentence.
The investigation was conducted by the DEA and the Boone County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Amanda Harris.
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Acting U.S. Attorney Observes 16th Annual World Elder Abuse Awareness DayRead the Press Release
LEXINGTON, Ky. — The Acting U.S. Attorney for the Eastern District of Kentucky, Carlton S. Shier , IV, joins the entire Department of Justice in observing the 16th Annual World Elder Abuse Awareness Day and joins the international voices condemning elder abuse, neglect, and exploitation.
The Department of Justice is committed, through its department-wide Elder Justice Initiative (EJI), to preventing and prosecuting fraud on America’s seniors.
“World Elder Abuse Awareness Day is an opportunity to reaffirm our commitment to protecting elderly Americans,” said Acting U.S. Attorney Shier. “We simply must prioritize protecting the elderly from the many forms of abuse they face, including financial, physical, and sexual abuse, exploitation, and neglect. While law enforcement has a primary role in this effort, we need to remember that everyone has a role. Friends and family should actively intercede when they are concerned that elderly loved ones are at risk of abuse, exploitation, or neglect. Elderly populations are at much greater risk; so, we must all be vigilant in watching over elderly friends and family, become knowledgeable about the various and prominent forms of elder abuse, and learn how to report it to the appropriate authorities. Our elderly deserve that commitment and protection.”
The COVID-19 pandemic has created unprecedented challenges, particularly for the elderly. Not only are seniors among those most susceptible and affected by the disease, but they also acutely feel the effects of pandemic precautions. During the pandemic, seniors are more isolated from their families, friends, and loved ones, making them more vulnerable to bad actors who would exploit the public health emergency to prey on the elderly, particularly with fraud schemes. This year especially, World Elder Abuse Awareness Day is an important reminder of the dangers.
In its role, and with cooperation from local, state, and federal partners, the U.S. Attorney’s Office prioritizes combating elder financial exploitation. Two recent examples of Eastern District of Kentucky elder fraud cases include:
- U.S. vs. Fafunmi et al.: In August 2020, Ismaila Fafunmi, pleaded guilty to money laundering charges related to a romance fraud and grant fraud scheme. In his plea agreement, Fafunmi admitted that he worked in conjunction with others, who communicated through online chats, to perpetrate a scheme to defraud U.S. citizens through a romance scheme, which targeted women over the age of 50. Fafunmi and his co-conspirators would set up fake profiles on dating websites profiling American men, often military members. Fafunmi’s co-conspirators would engage in conversations with victims through the dating website, making the victims believe they were in a romantic relationship with the fictitious profile. Fafunmi, who was located in the United States, would then help to move the funds from the victim to his coconspirators, located abroad. Read more: https://www.justice.gov/usao-edky/pr/nigerian-national-pleads-guilty-romance-fraud-and-grant-fraud-scheme
- U.S. v. Teegarden: In October 2020, Rebecca Teegarden was sentenced to 36 months for theft by a bank employee and aggravated identity theft. Between 2013 and 2019, Teegarden was employed as a bank teller and admitted to repeatedly using customers’ names and account numbers to make miscellaneous debit cash withdrawals from the customers’ bank accounts, without the customers’ consent. Teegarden held the cash in her teller drawer and later converted the money to her own use, by depositing it into her or her mother’s bank accounts. Teegarden admitted that she selected the accounts of her victims because those customers were elderly and did not regularly monitor their accounts In total, Teegarden admitted that she stole $79,086.00 from victims who were customers at the Bank.. Read more: https://www.justice.gov/usao-edky/pr/bracken-county-woman-sentenced-36-months-theft-bank-employee-and-aggravated-identity
Another example of the U.S. Attorney’s Office’s efforts includes participation in the Kentucky Elder Justice Task Force, a cooperative effort that brings together the law enforcement 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.
More broadly, other Department of Justice elder fraud initiatives include:
- National Elder Fraud Hotline: Last year, the Department of Justice launched a National Elder Fraud Hotline: 833-FRAUD-11. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
- Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the strike force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices, along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in strike force districts brought cases against more than 140 sweep defendants.
- Annual Elder Justice Sweep: In March of 2020, the Department announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.
- Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute “money mule” activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019, actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 money mules in the previous year.
- Holding foreign-based perpetrators and those who flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
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Lawrence County Attorney Indicted for Wire Fraud and Federal Program TheftRead the Press Release
LEXINGTON, Ky. - In a newly unsealed federal indictment, the County Attorney for Lawrence County and his legal secretary have been indicted on charges of conspiracy to commit wire fraud, wire fraud, and federal program theft.
On Thursday, June 3, a federal grand jury in Lexington returned an indictment charging Michael T. Hogan, 53, and his wife, Joy M. Hogan, 41, with one count of conspiracy to commit wire fraud, and charging Michael Hogan with nine counts of wire fraud, and five counts of federal program theft.
The indictment alleges that 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. It is alleged that 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. The indictment alleges that, between March 8, 2013 and April 30, 2020, Michael Hogan paid Joy Hogan more than $365,000, from the Lawrence County Delinquent Tax Account.
The indictment also alleges that Michael Hogan defrauded the Lawrence County Child Support Enforcement Office, part of the Kentucky Cabinet for Health and Family Services. It is alleged Hogan billed the program for far more hours than he actually worked. It is also alleged Michael Hogan paid employees working for his private law firm with funds from the Child Support Enforcement office.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Robert Brown, Special Agent in Charge, FBI, Louisville Field Office; and Colonel Phillip Burnett, Commissioner, Kentucky State Police; jointly announced the indictment.
The investigation preceding the indictment was conducted by the FBI and KSP. The case is being handled by Assistant U.S. Attorney Kate Smith.
Michael Hogan’s initial appearance is June 9 at 11 a.m., and Joy Hogan is scheduled to appear on Friday, June 11, at 1 p.m. On the wire fraud charges, they face up to 20 years in prison and a fine of no more than $250,000 or twice the amount of gain or loss. On the federal program theft charges, Michael Hogan faces up to 10 years in prison and a fine of no more than $250,000. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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