Eastern District of Kentucky

LEXINGTON, Ky. — A Lawrenceburg, Kentucky, man, Joseph G. Peavler, 53, admitted, in federal court on Friday, committing wire fraud and assisting in the preparation of a false income tax return.       

Peavler pleaded guilty before U.S. District Court Judge Danny C. Reeves. In his plea agreement, Peavler admitted that between 2004 and 2018, he managed a warehouse owned by someone else and, during that time, he devised a plan to rent space in the warehouse to two separate entities, keeping the money for himself without knowledge or authority by the owners. That fraud scheme was furthered by interstate wire communications. Peavler also admitted to failing to declare this rent money on his tax returns, for each of the years he received the rent.                     

Peavler was indicted in October 2019.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge for the Louisville Division of FBI; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, jointly announced the guilty plea.

The investigation was conducted by the FBI and IRS. The United States was represented by Assistant U.S. Attorneys Erin Roth and Ken Taylor. 

Peavler is scheduled to be sentenced on May 1, 2020 at 10 a.m. He faces up to 23 years in prison and a maximum fine of $500,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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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LEXINGTON, Ky.- A Jackson, Kentucky, woman admitted in federal court today she solicited kickbacks from a toxicology laboratory in exchange for urine drug testing referrals, lied to law enforcement agents about the kickback she received, and then attempted to cover up the kickback by requesting the alteration of certain financial records.

Theresa C. Merced, 80, pleaded guilty today to one count of violating the Eliminating Kickbacks in Recovery Act (EKRA), 18 U.S.C. § 220; one count of making false statements, 18 U.S.C. § 1001; and one count of attempted tampering with records, 18 U.S.C. § 1512, before U.S. District Court Chief Judge Danny C. Reeves.         

Merced, the office manager of a substance abuse treatment clinic in Jackson, Ky., admitted that between December 2018 and August 2019, she solicited kickbacks from the CEO of a toxicology lab in exchange for urine drug test referrals. According to the plea agreement, in August 2019 the CEO delivered to Merced a $4,000 check as part of a larger package of promised inducements.  Merced caused the check to be cashed.  When Merced was questioned about the check by law enforcement agents in September 2019, she denied knowledge of it, and stated that the $4,000 was probably a loan from the lab CEO to her husband.  Shortly after her interview with the agents concluded, Merced called the lab CEO and asked that he alter the lab’s financial records so that the entry for the $4,000 check would say “rent/loan,” consistent with the lie she told the agents. 

EKRA, enacted by Congress in October 2018 as part of a broader package of legislation aimed at combatting the opioid crisis, prohibits, among other things, the solicitation or receipt of kickbacks in exchange for the referral of urine drug testing services.  Merced’s EKRA conviction is believed to be the first in the nation.    

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Field Office, and Kentucky Attorney General Daniel Cameron jointly announced the guilty plea.

The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, and the Kentucky Office of Attorney General, Medicaid Fraud Control Unit. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Paul McCaffrey. 

Merced is scheduled to be sentenced on May 1, 2020. She faces up to 20 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes. 

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LONDON, Ky. – Charles W. Warfield, 51, of Artemis, Kentucky, was convicted by a federal jury on Tuesday, for his role in a methamphetamine conspiracy and unlawful possession of a firearm by a convicted felon.  

The proof at trial established that Warfield purchased and distributed methamphetamine in Laurel and Knox Counties.  Warfield and a co-conspirator traveled to Louisville and brought back 14 ounces of methamphetamine for distribution.  Social media records and witness testimony also established that Warfield attempted to trade a .45 caliber handgun for methamphetamine. At the time Warfield possessed the firearm, he was a convicted felon.   

Co-defendants Jonathan Harper, Derwin Julien, Lawrence Collinsworth, Cortez Evans, Tasha Wernicke, Jordan Britt, Scott Hensley, Amy Mosley, Lindsey Rose, Darryl Moore, Thorold Johnson, Bobby Hamilton, Rickie Eubanks, Eddie Hoskins, Justin Collins, and Ralph Jones have each pled guilty to their roles in the methamphetamine trafficking conspiracy.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco and Firearms; Sheriff Mike Smith, Knox County Sheriff’s Office; and Chief Col. Rusty Hedrick, Corbin Police Department, jointly announced the convictions.

The investigation was conducted by the ATF, Knox County Sheriff’s Office, and the Corbin Police Department.  The United States was represented in the case by Assistant U.S. Attorney Jenna E. Reed.   

Warfield is scheduled to appear for sentencing on April 24, 2020, in London. Warfield faces up to 40 years in prison and a $5 million fine on the methamphetamine conviction.  He also faces up to 10 years in prison and a $250,000 fine on the firearm conviction. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.

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COVINGTON, Ky. – A Maysville, Kentucky, man, Charles Wesley Bruener III, 33, who previously admitted to carjacking and threatening two individuals with a firearm in the course of the offense was sentenced Friday to 199 months in prison by U.S. District Court Judge David Bunning.          

Bruener previously admitted that, on March 2, 2018, he fled from police in Falmouth, Kentucky, in a Ford Taurus. According to his plea agreement, officers pursued Bruener, and he eventually crashed the vehicle, breaking the hip of his girlfriend, Tiffany Thompson, who was a passenger in the Taurus. Bruener admitted that following the crash, he approached a nearby home, entered without permission, and waved a firearm at the home’s two occupants in order to steal their GMC truck and continue his flight from police. According to his plea agreement, Bruener admitted that when one of the victims in the home initially refused to comply, Bruener struck her, causing minor injuries. Bruener then pointed the gun to threaten a second occupant of the home and obtained the keys to the truck. Bruener and Thompson fled in the stolen truck and crashed it during a second police pursuit, further injuring Thompson’s broken hip. After Bruener and Thompson were arrested, officers recovered two stolen firearms and methamphetamine from the crime scenes. 

Bruner pleaded guilty in September 2019. According to documents filed in the case, Bruener has previously been convicted of felony offenses, including receiving stolen property and robbery.           

Under federal law, Bruener must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 5 years after his release from prison.  The court ordered that the federal sentence run consecutively to the 17 year Kentucky prison term that Bruener is presently serving for other state charges.

Thompson pleaded guilty in October of 2018 to being a convicted felon in possession of a firearm. According to court documents, Thompson has prior convictions for felony drug trafficking and drug possession. She was sentenced in February 2019 to 78 months in prison and 3 years of supervised release. 

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Tommy Estevan, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Pendleton County Sheriff Craig Peoples, jointly announced the sentence.

The investigation was conducted by Pendleton County Sheriff’s Office and ATF. The United States was represented by Assistant U.S. Attorney Tony Bracke.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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. For more information about Project Guardian, please see https://www.justice.gov/ag/about-project-guardian.

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LONDON, Ky. – A London woman, Jennifer L. Moore, 51, was sentenced Monday to 168 months in federal prison, by United States District Judge Robert E. Wier, for carjacking, two armed bank robberies, and brandishing a firearm during a crime of violence.     

According to Moore’s guilty plea agreement, Moore asked someone for a ride outside of St. Joseph Hospital in London; and during the ride, she pulled out a loaded handgun and demanded the van.  Moore then drove the van to Forcht Bank in London, disguised herself, and demanded that the tellers provide her all their $100 dollar bills from their drawers.  In her plea agreement, Moore further admitted to keeping her handgun displayed and repeatedly telling employees she would kill them.  Moore left Forcht Bank with $16,088.00.

Moore then drove the stolen van to Cumberland Valley National Bank, where she once again demanded the bank tellers’ cash and threatened their lives.  Similarly, Moore motioned to her loaded firearm while demanding the employees move faster.  Moore left CVNB with $14,481.00.  Moore brandished and carried a loaded 9mm semiautomatic pistol throughout the robberies and then led law enforcement on a brief high speed chase, which ended with her attempt to run on foot.     

Moore pled guilty to the offenses on July 1, 2019.  Under federal law, she must serve 85 percent of her prison sentence; and upon her release, she will be under the supervision of the United States Probation Office for five years.   

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Special Agent in Charge, FBI Louisville Field Division; and Darrel Kilburn, Chief of Police London Police Department (PD), jointly made the announcement. 

The investigation was conducted by the FBI London Office and London Police Department.  The United States was represented by Assistant U.S. Attorney Jenna Reed. 

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LEXINGTON, Ky. –A Lexington man, Marcellis Means, 24, was sentenced Friday to 57 months in federal prison, by Chief U.S. District Judge Danny C. Reeves, for one count of being a convicted felon in possession of a firearm.

According to Means’ guilty plea agreement, on July 10, an officer made contact with him and another occupant of a parked vehicle, outside of a business near Patchen Drive in Lexington.  Means admitted that, when the officer made contact, he quickly exited the vehicle and began to flee on foot.  During the foot pursuit, Means removed a firearm from his waistband, resulting in the officer discharging his firearm. Means was apprehended by law enforcement shortly thereafter, and then admitted he was attempting to get rid of the firearm during the pursuit.  Officers were able to locate the firearm discarded by Means.  The firearm was found loaded and chambered with ammunition, and confirmed to be stolen.  Means was a convicted felon, having previously been convicted of Assault Second Degree in 2015, and was prohibited from possessing the firearm.

Under federal law, Means must serve 85 percent of his sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of three years.

The investigation was conducted by the ATF and the Lexington Police Department, in conjunction with the Kentucky State Police.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge, ATF, Louisville Field Division; Lawrence Weathers, Chief of Police, Lexington Police Department; and Chad White, Deputy Commissioner, Kentucky State Police, jointly made the announcement.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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LEXINGTON, Ky. – Damon Bristol Hardy, of Versailles, Kentucky, was sentenced on Friday to 190 months in federal prison, by Chief United States District Judge Danny C. Reeves, for possession with intent to distribute fentanyl and heroin.

In his guilty plea agreement, Hardy admitted that on April 2, 2019, in Woodford County, he possessed and intended to distribute 6.8 grams of a mixture that contained fentanyl and heroin.  Hardy also agreed to abandon $587 in cash and various drug paraphernalia seized from him.  Hardy admitted that he threw the controlled substances away, as he fled from the police.

Due to his prior criminal history, which included convictions for third-degree assault (police / probation officer) and first-degree trafficking in a controlled substance (heroin), Hardy was subject to an enhanced sentence.

Under federal law, Hardy must serve a minimum of 85 percent of his prison sentence.  He will be under the supervision of the United States Probation Office for six years after being released.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge, DEA Louisville Field Division; and Chief Mike Murray, Versailles Police Department, jointly announced the sentence.

The investigation was directed by the Versailles Police Department and the Drug Enforcement Administration.  The United States was represented by Special Assistant U.S. Attorney James T. Chapman.

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FRANKFORT, Ky. – A Shelbyville, Kentucky, man, Elder Rene Carrillo-Cruz, 28, was sentenced to 72 months in federal prison on Thursday, by United States District Judge Gregory F. Van Tatenhove, for distributing child pornography.

Carrillo-Cruz previously admitted that in March 2018, he knowingly distributed at least one video containing child pornography over the Internet.  The investigation was the result of a Cyber Tipline report from the National Center for Missing and Exploited Children (NCMEC).  As a result of the Cyber Tip, the Kentucky State Police conducted an investigation, which led them to obtain a search warrant that revealed evidence of the distribution of child pornography by Carrillo-Cruz.             

Under federal law, Carrillo-Cruz must serve a minimum of 85 percent of his prison sentence.  He will be under the supervision of the United States Probation Office for 20 years after being released.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky;  Steve Igyarto, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI); and Rick Sanders, KSP Commissioner, jointly announced the sentence.

The investigation was conducted by the DHS-HSI and KSP.  The United States was represented by Assistant United States Attorney David Marye.

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LEXINGTON, Ky.– The Justice Department’s Office of Justice Programs today announced awards of more than $333 million to help communities affected by the opioid crisis. $9,980,656 will help public safety and public health professionals in the Eastern District of Kentucky combat substance abuse and respond effectively to overdoses. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a visit with local, state and federal officials in West Virginia, one of the states hardest hit by the epidemic.

“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said PDAAG Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”

With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.

“The opioid crisis is one of the most acute problems we face in the Eastern District of Kentucky, and solving it will take a coordinated response by all stakeholders, including law enforcement, the healthcare and treatment community, and many others,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We are grateful for the support of the Department of Justice, as these awards will undoubtedly assist law enforcement and public health efforts in our District, and throughout the Commonwealth.”     

The awards announced today support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.

The following awards were made to organizations in the Eastern District of Kentucky

• Kentucky Justice and Public Safety Cabinet- $4,990,407
• Kentucky Administrative Office of the Courts-$2,500,000
• Kentucky Cabinet for Health and Family Services- $990,249
• Mountain Comprehensive Care Center, Inc.- $750,000
• Kentucky Justice and Public Safety Cabinet- $750,000

Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov

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LEXINGTON, Ky. – Lawrence Westbrook III, 41, of Lexington, was sentenced to 300 months in federal prison on Friday, by Chief United States District Judge Danny C. Reeves, for offenses involving methamphetamine trafficking and illegal firearms possession.

Westbrook previously pleaded guilty to two counts of possession with the intent to distribute methamphetamine, two counts of possession of a firearm in furtherance of a drug trafficking crime, and one count of possession of a firearm by a convicted felon.

According to his plea agreement, on June 23, 2018, Lexington Police made contact with Westbrook during a traffic stop in Lexington, where officers located approximately 159 grams of methamphetamine, as well as a loaded firearm he used to further his drug trafficking activity.  After being released from custody, by posting a state issued bond, Westbrook admitted to being arrested again in August, where he was found in possession of additional methamphetamine for sale.  Officers located approximately $11,000 in U.S. currency, on top of a stolen, loaded firearm used in furtherance of his drug trafficking.

Westbrook had prior felony convictions, having previously been convicted of Assault with a Firearm on a Person in 2001 and of being a Convicted Felon in Possession of a Firearm in 2015.

Under federal law, Westbrook must serve 85 percent of his sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of five years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Special Agent in Charge, ATF, Louisville Field Division; and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly made the announcement.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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LEXINGTON, Ky. – Jacquolyn S. Walls-Land, 37, previously of Junction City, Kentucky, was sentenced to 270 months in federal prison, on Monday, before Chief United States District Judge Danny C. Reeves, for the production of child pornography.

According to the evidence at the trial of her co-defendant Richard Derringer, Jacquolyn Walls-Land, who previously pleaded guilty to one count of using a minor to engage in sexually explicit conduct for the purpose of producing child pornography, took videos of the minor female victim while Derringer sexually abused the victim.  The sexual abuse, and recording of it, occurred on March 11, 2018.  The evidence established that Derringer forced the minor victim to smoke methamphetamine with him, on multiple occasions, during an approximate 3-hour period while the sexual abuse occurred.  Derringer even took hits of the methamphetamine himself and then exhaled into the minor victim’s mouth.  The minor victim reported the sexual abuse and forced drug use to her mother, approximately 8 hours after the abuse ended, and the minor victim was taken to a local hospital, where she tested positive for methamphetamine. 

Walls-Land’s co-defendant, Richard Derringer was sentenced to 100 years in federal prison earlier this month.  Under federal law, Walls-Land must serve 85 percent of her prison sentence.  Walls-Land will be under the supervision of the U.S. Probation Office for 30 years, following her release.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Richard Sanders, Commissioner, Kentucky State Police, jointly announced the sentence. 

The investigation was conducted by the FBI and Kentucky State Police.  Assistant U.S. Attorneys David Marye and Mary Melton represented the United States. 

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LEXINGTON, Ky. –Timothy Carl Ling, a former FMC Lexington inmate, was sentenced in federal court to 28 months in prison, by U.S. District Judge Danny C. Reeves, for making false allegations against prison staff and illegally possessing morphine.

In his plea agreement, Ling admitted that, over the course of several months in 2016 and 2017, he knowingly made false accusations against members of FMC Lexington’s staff.  Specifically, Ling admitted to falsely alleging that a nurse provided him with an un-prescribed morphine pill, and he admitted to falsely accusing an accountant of accepting prepaid credit cards or money orders in exchange for providing contraband to inmates.  Ling’s misrepresentations wrongfully caused the staff members to be subject to internal investigations, when, in reality, they had done nothing wrong.  Related to Ling’s fraudulent accusation against the nurse, Ling admitted to illicitly purchasing an un-prescribed morphine pill from another inmate and providing it to a prison official under the guise of having obtained the pill from the nurse.

Ling admitted in his plea agreement that his motives for creating false and fictitious stories about prison staff included attempting to gain consideration for a reduction of his sentence. Instead, as a result of his false reports, Ling must now spend an additional 28 months in prison, consecutive to his prior sentence.

Under federal law, Ling must serve, at a minimum, 85 percent of his prison sentence.  He will be under the supervision of the United States Probation Office for three years after being released.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and William Hannah, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General (DOJ OIG) Chicago Field Office, jointly announced the sentence.

The investigation was directed by the DOJ OIG Chicago Field Office.  The United States was represented by Special Assistant U.S. Attorney James T. Chapman.

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Ten former National Football League (NFL) players have been charged in the Eastern District of Kentucky for their alleged roles in a nationwide fraud on a health care benefit program for retired NFL players. 

The alleged fraud targeted the Gene Upshaw NFL Player Health Reimbursement Account Plan (the Plan), which was established pursuant to the 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 wives and their dependents – up to a maximum of $350,000 per player.  According to the charging documents, over $3.9 million in false and fraudulent claims were submitted to the Plan, and the Plan paid out over $3.4 million on those claims between June 2017 and December 2018.

“Ten former NFL players allegedly committed a brazen, multi-million dollar fraud on a health care plan meant to help their former teammates and other retired players pay legitimate, out-of-pocket medical expenses,” said Assistant Attorney General Benczkowski.  “Today’s indictments underscore that whoever you are, if you loot health care programs to line your own pockets, you will be held accountable by the Department of Justice.”

“The defendants are alleged to have developed and executed a fraudulent scheme to undermine a health care benefit plan established by the NFL – one established to help their former teammates and colleagues pay for legitimate medical expenses,” said U.S. Attorney Robert M. Duncan Jr., for the Eastern District of Kentucky. “The defendants allegedly submitted false claims to the plan and obtained money for expensive medical equipment that was never purchased or received, depriving that plan of valuable resources to help others meet their medical needs. We have prioritized the investigation and prosecution of health care fraud in our office, and we appreciate the partnership we share with the Criminal Division and the FBI in pursuing these important matters.”

“This investigation serves as an illustration of the rampant and deliberate scams against health care plans occurring daily throughout the country,” said FBI Special Agent in Charge George L. Piro of the Miami Field Office.  “In this case, these fraudsters pocketed money from the Gene Upshaw National Football League Health Reimbursement Account Plan that was intended for former NFL players who are ill or infirm.  Over 20 FBI field offices participated in this investigation which demonstrates the level of commitment we have to rooting out this type of fraud.”

Two separate indictments filed in the Eastern District of Kentucky outline two alleged conspiracies involving different players related to the same scheme to defraud the Plan. Those charged in the indictments are the following:

• Robert McCune, 40, of Riverdale, Georgia, is charged with one count of conspiracy to commit wire fraud and health care fraud, nine counts of wire fraud and nine counts of health care fraud. 
   
• John Eubanks, 36, of Cleveland, Mississippi; Tamarick Vanover, 45, of Tallahassee, Florida; and Carlos Rogers, 38, of Alpharetta, Georgia, are each charged with one count of conspiracy to commit wire fraud and health care fraud, two counts of wire fraud and two counts of health care fraud. 
   
• Clinton Portis, 38, of McLean, Virginia; Ceandris Brown, 36, of Fresno, Texas; James Butler, 37, of Atlanta, Georgia; and Fredrick Bennett, 35, of Port Wentworth, Georgia, are each charged with one count of conspiracy to commit wire fraud and health care fraud, one count of wire fraud and one count of health care fraud.
   
• Correll Buckhalter, 41, of Colleyville, Texas, and Etric Pruitt, 38, of Theodore, Alabama, are charged with one count of conspiracy to commit wire fraud and health care fraud. 

In addition, the government has filed notice that it intends to file criminal informations charging Joseph Horn, 47, of Columbia, South Carolina, and Donald “Reche” Caldwell, 40, of Tampa, Florida, with conspiracy to commit health care fraud in the Eastern District of Kentucky.

The indictments charge that the scheme to defraud involved the submission of false and fraudulent claims to the Plan for expensive medical equipment – typically between $40,000 and $50,000 for each claim – that was never purchased or received.  The expensive medical equipment described on the false and fraudulent claims included hyperbaric oxygen chambers, cryotherapy machines, ultrasound machines designed for use by a doctor’s office to conduct women’s health examinations and electromagnetic therapy devices designed for use on horses. 
 
According to allegations in the indictments, McCune, Eubanks, Vanover, Buckhalter, Rogers and others recruited other players into the scheme by offering to submit or cause the submission of these false and fraudulent claims in exchange for kickbacks and bribes that ranged from a few thousand dollars to $10,000 or more per claim submitted.  As part of the scheme, the defendants allegedly fabricated supporting documentation for the claims, including invoices, prescriptions and letters of medical necessity.  After the claims were submitted, McCune and Buckhalter allegedly called the telephone number provided by the Plan and impersonated certain other players in order to check on the status of the false and fraudulent claims.
 
This case was investigated by the FBI and is being prosecuted by the Health Care Fraud Unit of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Kentucky.  The investigation 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, Alexander J. Kramer and Thomas J. Tynan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Paul C. McCaffrey and Andrew E. Smith of the Eastern District of Kentucky are prosecuting the cases. 

LEXINGTON, Ky. – Richard Eugene Derringer, 47, previously of Junction City, Kentucky, was sentenced to 100 years in federal prison, on Wednesday, before Chief United States District Judge Danny C. Reeves, for the production of child pornography and distribution of methamphetamine. 

In August 2019, Derringer was convicted by a jury of using a minor to engage in sexually explicit conduct, for the purpose of producing child pornography; conspiracy to use a minor to engage in sexually explicit conduct, for the purpose of producing child pornography; possession of child pornography; and distribution of methamphetamine. Derringer was acquitted of one count of attempted distribution of child pornography.

According to the evidence at trial, Jacquolyn Walls-Land, who previously pleaded guilty to one count of using a minor to engage in sexually explicit conduct for the purpose of producing child pornography, took videos of the minor female victim while Derringer sexually abused the victim.  The sexual abuse, and recording of it, occurred on March 11, 2018. The evidence established that Derringer forced the minor victim to smoke methamphetamine with him, on multiple occasions, during an approximate 3-hour period while the sexual abuse occurred. Derringer even took hits of the methamphetamine himself and then exhaled into the minor victim’s mouth. The minor victim reported the sexual abuse and forced drug use to her mother, approximately 8 hours after the abuse ended, and the minor victim was taken to a local hospital, where she tested positive for methamphetamine. 

Derringer’s co-defendant, Jacquolyn Walls-Land, will be sentenced on December 16, 2019.  She faces a mandatory minimum sentence of fifteen years in prison, and up to 30 years, and a maximum fine of $250,000.  However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.

“The production of child pornography is one of the most despicable crimes that law enforcement investigates and our Office prosecutes,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The facts of this case are particularly egregious and the defendant’s abuse of the victim certainly warrants the life sentence he received. It should present a clear message that we are committed to holding accountable those who commit acts of abuse and who manufacture child pornography. Because the victim showed remarkable bravery in reporting the crime, law enforcement was able to prevent the defendant from preying on others.”

United States Attorney Duncan; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Richard Sanders, Commissioner, Kentucky State Police, jointly announced the sentence. 

The investigation was conducted by the FBI and Kentucky State Police. Assistant U.S. Attorneys David Marye and Mary Melton represented the United States. 

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LEXINGTON, Ky. – Barry E. Sanders, 64, the former owner and CEO of Trailblazers, Inc., an auto and truck parts supply business formerly located in Lexington, was sentenced today, by Senior U.S. District Judge Joseph M. Hood, to 18 months imprisonment for bankruptcy fraud. 

Sanders had previously admitted in U.S. District Court that, while Trailblazers, Inc. was in the process of contemplating bankruptcy in the summer of 2013, he transferred $315,000 from the business to his personal banking accounts, using four cashier’s checks.  Sanders then knowingly concealed the receipt of those funds, by failing to report the cash transfers on Trailblazers’ corporate bankruptcy filings in August 2013, as required by federal bankruptcy law. 

Under federal law, Sanders must serve 85 percent of his prison sentence.  Sanders will be under the supervision of the U.S. Probation Office for three years, following his release.

Robert M. Duncan, Jr., U. S. Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentence. 

The investigation leading to Sanders’ conviction was conducted by the Federal Bureau of Investigation.  The United States was represented by Assistant U.S. Attorneys Erin Roth and Will Moynahan. 

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FRANKFORT, Ky. – Christopher G. Hickerson, a Fleming County Magistrate and tobacco farmer, pleaded guilty in U.S. District Court on Monday, before U.S. District Judge Gregory Van Tatenhove, to charges of conspiracy to commit crop insurance fraud and tax fraud.

According to his plea agreement, Hickerson admitted that from Crop Year 2009 to Crop Year 2016, he made material misrepresentations on his federal crop insurance paperwork, for the purpose of getting money from the federal government that he was not entitled to receive.  He admitted that he produced more tobacco crop than he reported to his insurance company, hiding that tobacco by selling it in other people’s names or simply not reporting it to his insurance adjuster.

In his plea agreement, Hickerson acknowledged that in Crop Year 2014, he accomplished this through an agreement, with Debra Muse and another individual identified as R.W., to obtain fake grade sheets and tobacco sales receipts from Clay’s Tobacco Warehouse, which he could submit to his insurance adjuster.  Hickerson admitted that the grade sheets – which showed that his tobacco was no-grade or low-grade – were for tobacco that either did not exist or did not belong to him.  Hickerson further admitted to failing to report all of his tobacco sales on his tax returns in 2012, 2013, and 2015. 

Hickerson is scheduled to be sentenced on April 29, 2020.  He faces up to five years in prison on the conspiracy to commit crop insurance fraud conviction and three years in prison on the tax fraud conviction.  He faces a $250,000 fine on each charge.  Before imposing a sentence, the Court will take into consideration the U.S. Sentencing Guidelines and federal sentencing statutes.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Bethanne Dinkins, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; Heather Manzano, Deputy Administrator for Compliance, United States Department of Agriculture-Risk Management Agency; and Willie Skeens, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the conviction.  The United States was represented by Assistant U.S. Attorneys Erin Roth and Kathryn Anderson.

— END —

LEXINGTON, Ky. - A Detroit man, Shannon D. Hixon, 43, was sentenced to life in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after previously being convicted of conspiring to distribute oxycodone and fentanyl, and distribution of fentanyl resulting in an overdose death.        

Hixon was convicted at trial, in July 2019. According to the evidence, Hixon supplied thousands of Oxycodone 30 mg tablets to two individuals in Lexington, which were then transported to Morehead, Kentucky (Rowan County) and Salyersville, Kentucky (Magoffin County), and sold to local dealers and drug users. Additionally, the evidence established that Hixon had supplied heroin and fentanyl to a group of users in Lexington, which included supplying a lethal quantity of fentanyl that was distributed to K.F., an Army veteran in rehab, causing K.F.’s overdose death.

Hixon has a prior conviction for Trafficking in a Controlled Substance First Degree, imposed by the Fayette Circuit Court, in May 2004.         

“The defendant, and other drug dealers who illegally distribute opioids, help fuel addictions and spread misery and death. Our Office has no greater priority than holding drug traffickers, particularly repeat offenders like the defendant, accountable for their criminal conduct. Because of his prior drug trafficking conviction, and because his drug dealing caused an overdose death, the defendant will spend the rest of his life in prison,” said Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky. “The sentence imposed should send a clear message – if you are of convicted of dealing drugs and causing a death you face a substantial punishment for your actions. We remain committed, along with our law enforcement partners, in pursuing these important cases to help vindicate the interests of the victims’ families and keep our communities safe.”   

United States Attorney Duncan; Daniel Dodds, Acting Special Agent in Charge, DEA Louisville Field Division; Chief Derrick Blevins, Morehead Police Department; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.

The investigation was conducted by the DEA, Morehead Police Department, and the Lexington Police Department. The United States was represented in the case by Assistant U.S. Attorney Roger W. West.

— END —

LONDON, Ky. - A Lexington, Kentucky, man, Michael Tutt, 51, was sentenced to 142 months on Tuesday, by U.S. District Judge Danny C. Reeves, for trafficking methamphetamine.           

According to Tutt’s plea agreement, he admitted that from November 2016 to July 2017, he conspired with others to distribute methamphetamine in Laurel and Fayette Counties.  Tutt further admitted to importing and distributing between 3 and 10 ounces of methamphetamine per week, every week for at least six months. According to his plea agreement, the drugs came from various sources based in the Louisville area and Atlanta area. Tutt admitted to selling the methamphetamine to various drug dealers, as well as users. The criminal conspiracy to distribute the drugs involved a number of co-defendants. 

Tutt was indicted on the charges in July 2017 and was the final member of the conspiracy to be sentenced.  His co-defendants have received the following sentences:  Ashley A. Evans (63 months); Alfredo Martinez (192 months); Katherine Miller (33 months); Rachell D. Peppers (92 months); Jacqueline M. Robinson (15 months); Brandon M. Rush (144 months); Christian Omar Torres (168 months); Marco Antonio Valencia-Fiesco (20 months); Lajoyia Whitney (31 months); Sandy Leon Whitney (5 months); and Abdul M. Wilkerson (66 months).

Under federal law, Tutt and his co-defendants must serve 85 percent of their prison sentences.  Tutt will be under the supervision of the U.S. Probation Office for five years, following his release.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentence.

The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney William Samuel Dotson. 

— END —

LEXINGTON, Ky. – On November 27, a federal jury sitting in Lexington found Richard C. Duerson and Jennifer G. McFarland, both of Richmond, Kentucky, guilty of conspiring to distribute 500 grams or more of methamphetamine and 500 grams or more of cocaine.

In addition to the conspiracy charge, both were also found guilty of individual counts of possession with intent to distribute the drugs.

According to the evidence at trial, on March 2, 2019, officers with the Richmond Police Department obtained and executed a search warrant on Duerson’s apartment in Richmond.  During the search, in Duerson’s bedroom, officers located quantities of cocaine and over 50 grams of methamphetamine, including 661 pills containing methamphetamine, as well as approximately $10,000 in cash wrapped in a sock in the bedroom closet.

After Duerson’s arrest, officers investigated several recorded phone calls he made to McFarland from the Madison County Detention Center, discussing the removal of various items from his apartment.  On March 8, 2019, officers obtained a second search warrant, for McFarland’s Richmond residence.  During this search, officers located approximately 303 grams of methamphetamine, 679 grams of cocaine, several firearms, and multiple items used for mixing and preparing narcotics for sale.

Duerson and McFarland will appear for sentencing on March 6, 2020.  On the conspiracy conviction, Duerson faces a sentence of 15 years to life in prison, while McFarland faces a sentence of 10 years to life in prison.  Duerson also faces 5 to 40 years for possession with the intent to distribute methamphetamine and up to 20 years in prison for possession with the intent to distribute cocaine.  McFarland faces 5 to 40 years in prison for each conviction for possession with the intent to distribute.  However, any sentence will be imposed by the Court, after its consideration of the United States Sentencing Guidelines and any applicable federal sentencing statutes.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Daniel Dodds, Acting Special Agent in Charge, DEA, and James Ebert, Chief of Police, Richmond Police Department, jointly made the announcement.  At trial, the United States was represented by Assistant United States Attorney Francisco Villalobos II.

– END –

LEXINGTON, Ky. - A Danville, Kentucky, man, Lamar M. Ford, 32, was sentenced to 282 months in federal prison on Monday, by Chief U.S. District Judge Danny Reeves, for trafficking 40 grams or more of fentanyl.           

In his plea agreement, Ford admitted that, on September 20, 2018, he trafficked 15 grams of fentanyl, from his residence in Danville. He further admitted that law enforcement seized an additional 56.7 grams of fentanyl from his residence and vehicle. The total amount of fentanyl seized was approximately 72 grams.   

Ford pleaded guilty to the charge in March 2019.  Ford has seven prior felony convictions, including two prior drug trafficking conviction, which qualified Ford as a “Career Offender” under federal law.

Under federal law, Ford must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 8 years, following his release.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Daniel Dodds, Acting Special Agent in Charge, DEA Louisville; and Sheriff Derick Robbins, Boyle County Sheriff’s Department, jointly announced the sentence.

The investigation was conducted by the DEA and Boyd County Sheriff’s Office. The United States was represented by Roger West. 

— END —

COVINGTON, Ky. – Timothy Fairless, 51, of Newport, Kentucky, was sentenced today to 156 months in federal prison, for conspiracy to distribute methamphetamine, by U.S. District Judge David Bunning. Fairless was also sentenced to 5 years of supervised release, following completion of his prison term. 

Fairless previously admitted to conspiring with numerous others to distribute more than 1.5 kilograms of crystal methamphetamine, between August 2016 and March 2018. According to the plea agreement, numerous packages of crystal methamphetamine were sent through the mail from California by J. James Alarcon to Fairless, at various addresses in northern Kentucky.  Fairless admitted to then distributing the methamphetamine to multiple individuals engaged in retail-level trafficking. Agents also seized seven firearms from conspiracy members in the course of the investigation.  

Fairless was indicted in May 2018 and was the final member of the conspiracy to be sentenced.  The following individuals were previously sentenced: Walter Nash received 240 months in prison; J. James Alarcon received 168 months; Dawson Hendricks received 138 months; Christopher Shouse received 120 months; Ryan Dawson received 60 months; Alisha Jones received 46 months; Cassie Scrivner received 39 months; Jennifer Ramos received 25 months; and Wanda Nash received 21 months. Under federal law, each Defendant must serve at least 85 percent of their prison sentence.

“Methamphetamine trafficked in the United States today is more potent and more dangerous than ever before.  It is most frequently manufactured in Mexico and smuggled across the Southwest Border, from where it is shipped or transported across the country,” said U.S. Attorney for the Eastern District of Kentucky Robert M. Duncan Jr. “The defendants’ illegal receipt of shipments of methamphetamine in the U.S. mails contributed to methamphetamine use in northern Kentucky.”          

U.S. Attorney Duncan, Eastern District of Kentucky; Christopher White, Assistant Inspector in Charge, Pittsburgh Division, Cincinnati Field Office, of the United States Postal Inspection Service; Chief Tom Grau, Florence Police Department; and Chief Robert Nader, Covington Police Department, jointly announced the sentences.

“People who use the mail to distribute dangerous drugs cause great harm to our communities, and they also place USPS employees at risk of exposure, not only to dangerous substances, but also to the violent crimes associated with drug dealers,” said Assistant Inspector in Charge for USPIS, Christopher White.

“The sentences imposed by the Court reflect the severity of the conduct and underscore the seriousness of the methamphetamine threat we face. I commend the work conducted and the cooperation exhibited by personnel from the United States Postal Inspection Service, the Covington Police Department, and the Florence Police Department,” said US Attorney Duncan. “Because of the dedicated efforts of the law enforcement personnel involved, the defendants are being held accountable for their actions.”

The investigation was conducted by the United States Postal Inspection Service, the Florence Police Department, and the Covington Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.

— END —

COVINGTON, Ky. - A Detroit man, Aaron Smith, 46, who previously admitted to possessing over 300 grams of heroin with the intent to sell it, was sentenced Wednesday to 90 months in federal prison by U.S. District Judge David L. Bunning.

According to Smith’s guilty plea, he admitted to possessing 308 grams of heroin in route from Detroit, with the intention to deliver and distribute the heroin in Lexington, Kentucky. He was stopped on Interstate 75 by law enforcement, who seized the drugs which were hidden behind the dashboard of the vehicle.

Smith pleaded guilty in May 2019. Smith was previously convicted in 2012, for trafficking in heroin and codeine, in the Jefferson Circuit Court.

Under federal law, Smith must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for 5 years.

Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, and Commissioner Richard Sanders, Kentucky State Police, jointly announced the sentence.

The investigation was conducted by Kentucky State Police. The United States was represented by Assistant U.S. Attorney Wade Thomas Napier.

— END —

LEXINGTON, Ky. – To close the 2019 Fiscal Year, the United States Department of Justice awarded 51 grants, amounting to more than $72.4 million to support public safety and crime fighting initiatives throughout the Commonwealth of Kentucky, announced Western District United States Attorney Russell Coleman and Eastern District United States Attorney Robert M. Duncan Jr.

“These are significant federal resources coming to Kentucky for one purpose, to keep families safer in all 120 counties of our Commonwealth,” said U.S. Attorney for the Western District of Kentucky Russell Coleman.

“We appreciate the Department’s support in funding these important public safety and criminal justice initiatives,” said U.S. Attorney for the Eastern District of Kentucky Robert Duncan Jr. “These grants help make the entire Commonwealth a safer place.”

The 51 grants cover cities in both the Eastern and Western Districts of Kentucky, six cities (Bowling Green, Frankfort, Lexington, Louisville, Paducah, Radcliff) alongside five counties (Christian County, Daviess County, Madison County, Kenton County, Warren County) are receiving funding through the Office of Justice Programs’ Bureau of Justice Assistance (BJA) and the Edward Byrne Memorial Justice Assistance Grant (JAG) program. Under the JAG program, the cities will receive a total amount of $968,160 to support a broad range of activities to prevent and control crime based for their own state and local needs and conditions. The Kentucky Justice and Public Safety Cabinet also received $2.1 million in funding under the JAG program. JAG funds will be used to support all components of the criminal justice system, from multi-jurisdictional drug and gang task forces, to crime prevention and domestic violence programs, courts, corrections, treatment, justice information enforcement, and programs aimed at reducing crime and/or enhancing public/officer safety.

The Kentucky Justice and Public Safety Cabinet will also receive $30,568,043 from the Office for Victims of Crime VOCA (Victims of Crime Act Formula Program) Victim Assistance Formula. The Justice and Public Safety Cabinet was also awarded grants through the Office of Justice Programs’ Bureau of Justice Assistance (BJA) through the United States Attorney’s offices Project Safe Neighborhoods, the Residential Substance Abuse Treatment (RSAT) for state Prisoners Program, State Justice Statistics Program for Statistical Analysis Centers, and Paul Coverdell Forensic Science Improvement Grants Program Formula.

The Kentucky Department for Corrections (KYDOC) was awarded $923,138 through the Bureau of Justice Assistance Innovations in Supervision Initiative (ISI): Building Capacity to Create Safer Communities. ISI funds will be used to develop place-based supervision strategies to reduce distances between clients, supervision offices and treatment centers.

The Kentucky Cabinet for Health and Family Services will receive $990,249 through the Bureau of Justice Assistance Comprehensive Opioid Abuse Site Based Program: Harold Rogers Prescription Drug Monitoring Program (PDMP) aimed at enhancing KASPER. The Cabinet will use the grant funds to engage one full time grant law enforcement liaison, and one full time grant criminal epidemiologist who will support law enforcement requests for PDMP data and assistance. The grant liaison will work with five pharmacist consultants already employed by KASPER to provide knowledge of criminal investigations and prosecutions of offenders violating state and federal control substances laws.

The Catholic Charities of Louisville Inc. has been awarded $919,476 under the Sustaining Capacity to Provide Comprehensive Services through the Office of Victims of Crime. Catholic Charities will implement the Central Kentucky Comprehensive Services Project to sustain capacity to provide services to survivors of human trafficking through implementation of a comprehensive services model. The initiative will include in-house services, and collaborations with community partners for housing, mental health services, medical services, and education services.

A full list of OJP Award Data is available at this link: https://ojp.gov/funding/Explore/OJPAwardData.htm

###

FRANKFORT, Ky.— Lamar Anthony Martin, 36, of Richmond, Kentucky, was sentenced to 156 months in federal prison on Friday, by United States Federal Judge Gregory F. VanTatenhove, for his convictions on trafficking in cocaine and being a convicted felon in possession of firearms.   

According to Martin’s plea agreement, he admitted to trafficking cocaine on four separate occasions, from January to April 2018. Martin also admitted to illegally owning firearms, which he stored at both his and his mother’s residence.

Martin pleaded guilty in June 2019. Martin was previously convicted of Trafficking a Controlled Substance First Degree, by the Madison Circuit Court, in February 2003.

Under federal law, Evans must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for six years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Tommy Estevan, Acting Special Agent in Charge of the ATF Louisville Field Division, jointly made the announcement.

The investigation was conducted by ATF. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

– END –

COVINGTON, Ky. - Jeremy Garey, 44, of Burlington, Kentucky, has been indicted on federal charges of Production and Distribution of Child Pornography.

The indictment alleges that, over the course of several months during 2017, Garey knowingly employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct, for the purpose of producing visual depictions. The indictment also alleges that Garey knowingly distributed child pornography. Garey appeared for his arraignment on November 15, 2019, in United States District Court.            

The investigation preceding the indictment was conducted jointly by the Ft. Wright Police Department and Federal Bureau of Investigation (FBI). If anyone has additional information related to the case, they are encouraged to contact the FBI, at 859-341-3901.

Garey’s next appearance before the United States District Court is scheduled for January 10, 2020; his trial is currently scheduled for January 21, 2020. If convicted, Garey faces a maximum of 30 years in prison. However, any sentence following conviction would be imposed by the court after its consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.

            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.

— END —

LEXINGTON, Ky. — Gregory Lee Hruby, 65, of Brazoria, Texas, was sentenced on Friday to 30 years in federal prison, by U.S. District Court Judge Gregory F. Van Tatenhove, for crossing state lines to engage in sexual acts with minors who had not attained the age of 12 and for possessing visual depictions of minors engaging in sexually explicit conduct.

According to trial testimony, Hruby communicated with an undercover law enforcement agent, who responded to a post that Hruby had placed on the Whisper Application.  In the communications, the undercover officer portrayed herself as the mother of 9 and 11 year-old daughters, who was willing to permit Hruby to engage in sex with them.  Hruby engaged in text and telephone conversations with the undercover officer, indicating his interest in engaging in sexual intercourse with the fictitious minors.  Hruby was arrested after law enforcement officers met him at the airport in Lexington, on October 19, 2018, following his arrival on a flight from Houston, Texas.  Hruby also had child pornography images on his phone.  

Hruby was previously convicted of all three charges in July 2019.

Under federal law, Hruby must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for the remainder of his life.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steve Igyarto, Special Agent in Charge, Department of Homeland Security – Homeland Security Investigations (DHS-HSI); and Kentucky Attorney General Andy Beshear jointly announced the sentencing.

The investigation was conducted by DHS-HSI and the Cyber Crimes Branch of the Office of the Attorney General of Kentucky. The United States was represented by Assistant U.S. Attorneys David A. Marye and Tashena A. Fannin.

– END –

LEXINGTON, Ky. - Dylan Lee Jarrell, 22, of Anderson County, Ky., admitted in federal court that he transmitted a threatening communication in interstate commerce, committed cyberstalking, made a false statement to federal law enforcement officers, and possessed a firearm in furtherance of a crime of violence. Jarrell pleaded guilty to the charges today, before U.S. District Judge Gregory F. Van Tatenhove.   

According to his plea agreement, Jarrell admitted that in 2018 he began to plan and prepare to conduct an act of violence against occupants of Shelby County High School, which Jarrell had previously attended as a student. Over time, Jarrell also developed an alternative plan to kill an individual identified as D.B., and then kill himself, in a murder-suicide.  Jarrell took several actions in furtherance of the plans, including acquiring a firearm. 

In May 2018, using a Reddit account and user screen name later confirmed to be his, Jarrell posted public messages about previous mass school shootings, which evidenced a serious expression of his intent. Based on the Reddit posts, on May 30, 2018, a special agent from the FBI questioned Jarrell at his residence in Anderson County. Jarrell was warned it was a crime to lie to an FBI special agent. During the interview, Jarrell claimed not to have any knowledge about the Reddit posts or the user screen name.  At the time Jarrell made these statements, he knew them to be false. 

From July to September 2018, Jarrell made posts on Instagram using an account he created. On September 24, 2018, Jarrell transmitted a communication, via Instagram, to an account used by D.B., in which Jarrell threatened to commit an act of violence upon D.B. 

On August 22, 2018, Jarrell purchased an American Tactical Omni Maxx P3 Hybrid 5.56 caliber semi-automatic rifle.  Throughout August and September 2018, Jarrell obtained other items, including a bump stock for the rifle, large capacity magazines, ammunition, and body armor.  In his plea agreement, Jarrell acknowledged obtaining these items in furtherance of his planned school shooting, or alternatively, the murder-suicide.

Jarrell also created and used an account under his own name on Facebook. On October 17, 2018, using Facebook, Jarrell sent two harassing messages to an account associated with K.B.  The Defendant understood those communications would reasonably be expected to cause substantial emotional distress to K.B. 

On October 18, 2018, personnel from the FBI and Kentucky State Police responded to Jarrell’s residence in Anderson County, and questioned him about his Reddit and Facebook activities.  This time, Jarrell admitted he composed and sent the Reddit and Facebook messages.  Jarrell provided the law enforcement officers his cell phone, which revealed Jarrell’s plans to attack Shelby County High School and D.B.  Jarrell admitted to investigators that he formulated these plans and that he acquired the firearm in furtherance of the plans.            

Jarrell was indicted in May of 2019.   

“Dylan Jarrell manifested a clear intent to commit horrific acts of violence on innocent persons in our District and elsewhere,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Fortunately, because of the thorough work of dedicated law enforcement officers, Jarrell’s plans were thwarted and lives were almost certainly saved. I commend the law enforcement personnel involved in this investigation for their professionalism and commitment to keeping the public safe from harm. We are proud to stand with them in this continued fight.”

“The FBI takes credible threats of violence seriously, and preventing mass causality events is a top priority. As the Jarrell investigation indicates, the FBI will work closely with the Kentucky State Police and our law enforcement partners to bring to justice those who issue these threats,” said James Robert Brown Jr., Special Agent in Charge, FBI Louisville Field Office. “I want to encourage the public to remain vigilant and to report this behavior to law enforcement immediately. In this instance, with the public’s help, the FBI and KSP saved lives.”

“The Kentucky State Police commends our trooper and all the other officers and law-enforcement agencies involved in apprehending this dangerous criminal before he was ever able to harm a single individual,” said Commissioner Richard Sanders, Kentucky State Police. “If trooper Satterly had not looked beyond the initial complaint of online misconduct by Jarrell, it is not hard to imagine what atrocities may have been committed by this individual.”

U.S. Attorney Duncan, James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Commissioner Sanders, Kentucky State Police jointly announced the guilty plea.

The investigation was conducted by FBI and KSP. The United States was represented by Assistant U.S. Attorney Andrew T. Boone. 

Jarrell is scheduled to be sentenced on April 1, 2020 at 11 a.m. He faces up to 5 years in prison on the threatening communication, cyberstalking, and false statement charges, and at least 5 years on the firearms charge, consecutive to the other offenses.  He also faces a maximum fine of $250,000. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal statutes. 

— END —

LEXINGTON, Ky.— Aaron Antonio Evans, 29, of Lexington, was sentenced to 60 months in federal prison on Thursday, by United States District Judge Karen K. Caldwell, after pleading guilty to trafficking more than 10 grams of acetylfentanyl.

According to Evans’ plea agreement, he admitted to trafficking more than 10 grams of acetylfentanyl on February 6, 2019. Acetylfentanyl is an extremely powerful analogue of the opioid fentanyl.

Evans pleaded guilty in June 2019. 

Under federal law, Evans must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for four years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Special Agent in Charge for ATF; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.

The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney David C. Kiebler.

This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.

– END –

LEXINGTON, Ky. - Tevye T. Jones, 21, of Lexington, pleaded guilty Thursday to illegal possession of a firearm and cocaine, before U.S. District Judge Karen K. Caldwell.            

Jones admitted to possessing a Glock .357 caliber pistol, during a traffic stop.  According to his plea agreement, Jones also admitted that during the stop officers found a small bag of cocaine.                       

Jones was indicted on the charges in May 2019. In 2017, Jones was previously convicted of the felony Robbery Second Degree, in the Fayette Circuit Court.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for ATF; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the guilty plea.

The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Cynthia T. Rieker. 

Jones is scheduled to be sentenced on Feb. 18, 2020. He faces up to 10 years in prison and a maximum fine of $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.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

— END —

LEXINGTON, Ky. - Jody Shipman, 28, of Lexington, pleaded guilty Wednesday to carjacking, with the intent to inflict serious bodily harm or death, before Chief U.S. District Judge Danny C. Reeves.          

Shipman admitted to two, separate carjackings, in Lexington, in January and February 2019.  According to his plea agreement, in January 2019, Shipman approached a woman at her apartment, demanded her vehicle, phone, and wallet, and threatened her with force.  Shipman also admitted to approaching a second female victim, at St. Joseph Hospital in February, forcing her inside her vehicle and driving her to an ATM machine, to withdraw money from her account.                      

Shipman was indicted in August 2019.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge, ATF Louisville Field Division; and Lawrence Weathers, Chief, Lexington Police Department, jointly announced the guilty plea.

The investigation was conducted by the Lexington Police Department and ATF.  The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.

Shipman is scheduled to be sentenced on Feb. 21, 2020.  He faces up to 15 years in prison and a maximum fine of $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. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

— END —

LEXINGTON, Ky. - Rakim Moberly, 29, of Lexington, pleaded guilty Wednesday to possession of a firearm by a convicted felon, trafficking in fentanyl, and possession of a firearm in furtherance of drug trafficking, before Chief U.S. District Judge Danny C. Reeves. 

Moberly admitted to illegally possessing a stolen firearm. According to his plea agreement, officers arrested Moberly for possessing the firearm and took him to the Fayette County Detention Center. While at the detention center, Moberly discarded drugs that were on his person. Later, officers the drugs where Moberly had been seated..                         

Moberly was indicted in August 2019. Moberly was previously convicted of Robbery Second Degree, Wanton Endangerment First Degree, and Criminal Mischief First Degree, by the Fayette Circuit Court, in 2016.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge, ATF Louisville Field Division; and Lawrence Weathers, Chief, Lexington Police Department, jointly announced the guilty plea.

The investigation was conducted by the Lexington Police Department and ATF. The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.

Moberly is scheduled to be sentenced on Feb. 28, 2020. He faces up to 35 years in prison and a maximum fine of $1.5 million. 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 is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

— END —

FRANKFORT, Ky. - A Lawrenceburg, Kentucky man was convicted Wednesday by a federal jury in Frankfort for receiving, distributing, and possessing child pornography.        

After deliberating for an hour, following a two-day trial, the jury convicted 48-year old William Richard Smith of seven counts of receipt, one count of distribution, and one count of possession of visual depictions involving minors engaged in sexually explicit conduct.           

According to testimony at trial, Smith distributed 25 child pornographic videos to an investigator with the Kentucky Office of Attorney General (OAG), Cyber Crimes Branch, who was performing an undercover investigation using an online peer-to-peer network. After identifying Smith as the individual who distributed these images, a search warrant was executed on Smith’s residence, during which several electronic devices were seized. Evidence from the forensic examination of those devices revealed that, in addition to distributing child pornography, Smith possessed 1,622 sexually explicit visual depictions of minors as of the date of the search warrant and had been receiving those visual depictions using a peer-to-peer network since May 2016.

 Smith was indicted in February 2019.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, John Condon, Special Agent in Charge of Homeland Security Investigations (HSI), and Andy Beshear, Kentucky Attorney General, jointly announced the conviction.

The investigation was conducted by the Kentucky OAG Cyber Crimes Branch and HSI. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys David Marye and Mary Melton. 

Smith will appear for sentencing on April 1, 2020. He faces a maximum of 20 years in prison for each count. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

— END —

LEXINGTON, Ky. – Michael R. McReynolds Jr., 32, of Lexington, was indicted on Wednesday by a federal grand jury, on charges related to two separate robberies of the same Lexington pharmacy, in September and October 2019.

The five-count indictment against McReynolds charges him with two counts of interference with commerce by robbery, two counts of carrying and using a firearm during a crime of violence, and one count of possession of oxycodone with the intent to distribute.

The indictment alleges that on September 27 and October 18, 2019, McReynolds stole money and controlled substances from Hubbard and Curry Pharmacy, by means of actual and threatened force, violence, and fear of injury.  During each robbery, the defendant is alleged to have also brandished, carried, and used a firearm. The indictment further alleges that on October 21, 2019, the defendant possessed oxycodone with the intent to distribute.

The investigation into these offenses was conducted by agents with the DEA, in conjunction with the Lexington Police Department.

A date for McReynolds to appear in Court on the charges has not yet been scheduled.  For each count of robbery, McReynolds faces a maximum sentence of 20 years and a $250,000 fine.  For each count involving the firearm, McReynolds faces a maximum sentence of life and a $250,000 fine.  However, any sentence following a conviction would be imposed by the Court after its consideration of the United States Sentencing Guidelines and applicable federal sentencing statutes.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Special Agent in Charge of the DEA; and Lawrence Weathers, Chief of the Lexington Police Department, jointly made the announcement.

Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

– END –

LEXINGTON, Ky. – An Alabama man admitted in federal court Wednesday that over the course of four months in 2018, he robbed five banks by intimidation in Kentucky, Tennessee, and Georgia.

Maxwell Hayslip, 27, pleaded guilty to five bank robberies by intimidation, before Chief United States District Judge Danny C. Reeves.  As part of his guilty plea, Hayslip and admitted that, between August 7 and November 13, 2018, he robbed banks in Lexington, Kentucky; Murfreesboro, Tennessee; Nashville, Tennessee; Bowling Green, Kentucky; and Carrollton, Georgia.  Hayslip admitted that he wrongfully obtained over $14,000 over the course of his robbery spree, and he agreed to pay that total amount back in restitution.  According to his plea agreement, he was captured by law enforcement in Alabama, soon after the Lexington robbery.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Lawrence Weathers, Chief of the Lexington Police Department; Michael Bowen, Chief of the Murfreesboro Police Department; Steve Anderson, Chief of the Metropolitan Nashville Police Department; Doug Hawkins, Chief of the Bowling Green Police Department; and Joel Richards, Chief of the Carrollton Police Department, jointly announced the convictions.

Local law enforcement agencies in each respective jurisdiction investigated Hayslip, and the federal investigation was directed by the Federal Bureau of Investigation.  The United States was represented by Special Assistant U.S. Attorney James T. Chapman.

Hayslip is scheduled to be sentenced on Feb. 21, 2020, at 11 a.m., before Chief Judge Reeves in federal court in Lexington.  Based on the five robberies, he faces up to 100 years in prison, as well as a maximum fine of $1.25 million.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and applicable federal sentencing statutes.

– END –

LEXINGTON, Ky. – LabTox, LLC, a clinical laboratory in Lexington, has agreed to pay $2,101,335 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.

The allegations relate to urine drug testing services LabTox provided to Medicare and Kentucky Medicaid beneficiaries.  According to the settlement agreement, from January 2014 to March 2015, LabTox billed Medicare and Kentucky Medicaid for qualitative urine drug screens completed by a high complexity method.  The United States alleged that these claims were false because LabTox misrepresented the complexity of its testing method:  the method was actually low complexity, not high complexity, as LabTox claimed.  By billing the screens as high complexity, LabTox secured higher reimbursements to which it was not entitled. 

The United States further alleged that LabTox 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 been explicit that specimen validity testing should not be separately billed to Medicare.  The United States alleged that LabTox nonetheless submitted claims to Medicare for specimen validity testing during the period January 2014 to February 2016.

“Millions of Americans count on the medical benefits they receive from the Medicare and Medicaid programs,” said Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky. “Ensuring that improper billing practices and payments do not deplete the limited resources available to these health care programs is absolutely critical.  We will continue to combat inappropriate billing of claims and endeavor to protect the critical resources of these taxpayer-funded programs.  That truly benefits us all.”    

In addition to agreeing to pay the $2,101,335 settlement amount, LabTox also entered into an Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General.  The Integrity Agreement requires, among other things, that LabTox appoint a Chief Clinical Officer to oversee issues related to clinical decision-making, ensure that requisition forms provide clarity about medical reasonableness and necessity and programmatic payment amounts, and retain an Independent Review Organization to conduct quarterly claims reviews.

“LabTox allegedly sent false and fraudulent bills to Medicare and Kentucky Medicaid.  Such actions could drain critically-needed resources from these taxpayer-funded health plans,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG’s settlement in the LabTox case is designed to ensure such alleged behavior will not be repeated.”      

The matter arose from an affirmative investigation following a tip reported to the U.S. Department of Health and Human Services hotline.  The United States encourages anyone with information about potential fraud, abuse, or mismanagement of Medicare or Medicaid funds to contact the 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 share in any financial recovery.

The investigation was conducted by the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse Control, the U.S. Department of Health and Human Services Office of Inspector General, and the U.S. Attorney’s Office for the Eastern District of Kentucky. The United States was represented by Assistant United States Attorney Christine Corndorf.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

– END –

FRANKFORT, Ky. – Jeffery Scott West Jr., 39, of Frankfort, was sentenced on Friday, to 108 months in federal prison by United States District Judge Gregory F. Van Tatenhove.  West had previously plead guilty to one count of being a convicted felon in possession of a firearm.

According to his plea agreement, on November 27, 2018, West admitted that officers observed him attempting to kick a loaded firearm under a couch while the officers were attempting to execute an arrest warrant on another person inside a residence in Frankfort.  West further admitted that officers were able to seize the firearm, detain West, and confirm that he was prohibited from possessing a firearm, having several prior felony convictions.

Under federal law, West must serve 85 percent of his 108 month sentence.  Upon completion of his term, he will be under the supervision of the United States Probation Office for a period of three years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan , Acting Special Agent in Charge, ATF, Louisville Field Division; Norman Arflack, United States Marshal for the Eastern District of Kentucky; and Charles Adams, Chief of Police, Frankfort Police Department, jointly made the announcement.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

– END –

FRANKFORT, Ky. - A Fort Campbell soldier was convicted Thursday, by a federal jury in Frankfort, for using the internet to attempt to persuade, induce, or entice a minor to engage in sexual activity.           

After deliberating for two hours, following a three-day trial, the jury convicted 27-year old Daniel J. Zulawski of attempted online enticement of a minor.           

According to testimony at trial, Zulawski traveled from Lexington to Frankfort after communicating with an undercover officer on the Kik application, during which they discussed his engaging in sexual relations with the undercover mother and her fictitious 11 and 13 year-old children.  Evidence revealed that Zulawski initially responded to a Craigslist ad posted by the undercover officer, which indicated she was a mother interested in incest.             

Zulawski was indicted in May 2018.  The criminal conduct occurred between January 16, 2018 and January 17, 2018.  He traveled from Lexington, where he was staying for a week of training for the U.S. Army, to Frankfort on January 17, 2018, when he was arrested.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Richard F. Ferretti, Special Agent in Charge, Louisville Field Office of the United States Secret Service; and Andy Beshear, Kentucky Attorney General, jointly announced the guilty verdict.

The investigation was conducted by the U.S. Secret Service, U.S. Army Criminal Investigation Command at Ft. Campbell, and the Kentucky Office of Attorney General’s Cyber Crimes Branch.  The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys David Marye and Will Moynahan. 

Zulawski will appear for sentencing on March 18, 2020. He faces a mandatory minimum of 10 years in prison and a maximum of life, as well as a maximum $250,000 fine. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

— END—

Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.

Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.

“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”

“Reducing gun violence in our District has been and will continue to be a fundamental priority for our Office,” said United States Attorney Robert M. Duncan, Jr. “Project Guardian will complement and amplify the proven violent crime reduction efforts of the Project Safe Neighborhoods program.  We will continue to work in partnership with federal, state, and local law enforcement, in our effort to protect the public by investigating and prosecuting the armed, violent criminals in our community.”

 “ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.” 

Project Guardian’s implementation is based on five principles:

1. Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.

2. Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.

Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.

3. Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.

4. Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety. 

Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.

5. Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.

Federal law enforcement represents only about 15 percent of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.  

###

LEXINGTON, Ky. – United States Attorney Robert M. Duncan Jr., will be joined with federal partner, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), to discuss gun violence in the Eastern District of Kentucky.  

Who:            Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky

Tommy Estevan, Acting Special Agent in Charge, ATF

Where:         U.S. Attorney's Office

Eastern District of Kentucky

260 W. Vine Street, Suite 300

Lexington, Kentucky, 40507

When:         Wednesday, Nov. 13, 2019 at 3:30 p.m.

LEXINGTON, Ky. – A Bath County woman, Della Mae Barnett, 62, was sentenced in federal court Thursday, to 12 months in prison, for committing Social Security fraud.

Barnett pleaded guilty in July 2019, before United States District Judge Karen K. Caldwell.  In Barnett’s plea agreement, she admitted that, from September 2006 to February 2016, she knowingly and willfully made false representations to the SSA, indicating that her husband did not live in the same household with her, to avoid his income making her ineligible to receive Supplemental Security Income benefits.  Her husband was, in fact, a household member, and his income would have impacted her entitlement to SSI benefits.

Barnett fraudulently received $77,003.00 from the SSA.  Barnett also admitted that her associated coverage, under the Kentucky Medicaid Program, was likewise fraudulent.  The total amount of inappropriate benefits expended by Kentucky Medicaid was $157,684.78.  As part of her sentence, the Court ordered Barnett to repay these amounts in restitution, totaling $234,687.78.

Under federal law, Barnett must serve, at a minimum, 85 percent of her prison sentence.  She will then be under the supervision of the United States Probation Office for three years, after being released.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Wayne R. Warren, Resident Agent-in-Charge, SSA Office of the Inspector General, Nashville Office, jointly announced the sentence.

The investigation was directed by the SSA-OIG.  The United States was represented by Special Assistant U.S. Attorney James T. Chapman.

– END –

LONDON, Ky. — Scott Patterson, 43, of Lily, Kentucky, was sentenced Friday to 140 months in federal prison, by United States District Court Judge Robert E. Wier, for conspiracy to traffic drugs and possessing a firearm in furtherance of drug trafficking.

Patterson pled guilty to the charges in June 2018.  According to his plea agreement, Patterson was obtaining methamphetamine, Xanax, marijuana, and oxycodone and was working together with others to sell these drugs in Laurel, Whitley, and Clay Counties.  Patterson also admitted to being armed during the course of his drug trafficking activities.  Patterson’s involvement in drug trafficking ended on June 2018, when he was arrested after breaking into a residence while possessing a firearm, methamphetamine, Xanax pills, and about $6,000 in drug proceeds. 

Patterson admitted in his plea agreement that he had been previously convicted to a felony offense related to the manufacture of methamphetamine in 2010. 

Four others who participated in the conspiracy have previously pled guilty and been sentenced, including:  Jake Messer (150 months), Josh Towe (121 months), Myra Vandenk (61 months), and Henry Hall (53 months).  Messer, Towe, and Hall all possessed firearms in connection to their drug trafficking offenses.  According to court documents, Hall’s residence was a target of a series of raids on July 4, 2018.  Over $300,000 in drug proceeds from Xanax sales was seized from Hall. 

The July 4, 2018 raids also included searches of the residence of Jeffrey Ghent and Ricky Melton, both of whom have also pled guilty and been sentenced as co-defendants of Patterson.  From Ghent’s residence, law enforcement seized nearly 300 grams of high purity crystal methamphetamine and four firearms.  From Melton’s residence, law enforcement seized methamphetamine, hydrocodone, oxycodone, Xanax, marijuana, over $27,000 in drug proceeds, and 22 firearms, 12 of which were loaded.  In connection with these offenses, earlier this year, Ghent was sentenced to 110 months in prison and Melton was sentenced to 120 months. 

Under federal law, each of these individuals must serve 85 percent of their prison sentence; and upon their release, they will be under the supervision of the United States Probation Office.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estavan, Acting Special Agent in Charge for the ATF Louisville Field Division; Richard Sanders, Commissioner of Kentucky State Police; Chris Fultz, Chief of Manchester Police Department; Patrick Robinson, Clay County Sheriff; Col. Rusty Hedrick, Chief of Corbin Police Department; and Roger W. Bird, Chief of Williamsburg Police Department, jointly made the announcement.

The investigation was conducted by ATF, Kentucky State Police, the Manchester Police Department, the Clay County Sheriff’s Department, the Corbin Police Department, and the Williamsburg Police Department. The United States was represented by Assistant United States Attorney Andrew H. Trimble.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

LONDON, Ky. – James Mills, of Barbourville, Kentucky, was sentenced Thursday to 121 months in federal prison, by United States District Judge Robert E. Wier, for conspiracy to distribute 50 grams or more of methamphetamine. 

James Mills pled guilty in July 2019. According to his plea agreement, Mills admitted to conspiring with others to distribute methamphetamine in Knox County, between December 2017 and September 2018. Mills also admitted, on one occasion, in July 2018, he distributed over 150 grams of high-purity methamphetamine.

Under federal law, James Mills must serve 85 percent of this prison sentence and will be under the supervision of the U.S. Probation Office for five years following his release.           

Travis Mills and Gretchen Delph have both pled guilty to charges connected to the same conspiracy. Mills will be sentenced on December 30, and Delph will be sentenced on December 9.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown Jr., Special Agent in Charge of the FBI; and Darrel Kilburn, Chief of the London Police Department, jointly made the announcement. The United States was represented by Assistant United States Attorney Andrew H. Trimble.

— END —

LONDON, Ky. – Travis Napier, 26, of Harlan County, was sentenced Friday to 181 months in federal prison, by United States District Judge Robert E. Wier, for charges related to armed methamphetamine trafficking.        

According to Napier’s plea agreement, on three occasions between February and June of 2018, his vehicle was stopped and searched, and law enforcement discovered a box containing multiple ounces of methamphetamine. Napier admitted that on two of those occasions, the box also contained a firearm and ammunition. On the third stop, a firearm was found elsewhere in the vehicle, along with a hatchet, brass knuckles, and nun chucks. The investigation revealed that, for more than a year, Napier had been traveling to Louisville to obtain methamphetamine, and returning to sell it in Harlan County. 

Napier’s co-conspirator, James Southard, was previously convicted and sentenced to 125 months in prison for his role in the offense.

 Under federal law, Napier and Southard must serve 85 percent of their prison sentences and will be under the supervision of the U.S. Probation Office for five years following their release.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge of the DEA Louisville Field Division; Richard Sanders, Commissioner of Kentucky State Police; Mike Smith, Knox County Sheriff; Leslie Smith, Harlan County Sheriff; and Winston Tye, Chief of the Barbourville Police Department, jointly announced the sentence. The United States was represented by Assistant U.S. Attorney Andrew H. Trimble. 

— END —

FRANKFORT, Ky.— Kian T. Christopher, of Frankfort, was sentenced to 64 months in federal prison on Thursday, by United States Federal Judge Gregory F. VanTatenhove, after pleading guilty to being a convicted felon in possession of a firearm.              

According to Christopher’s plea agreement, in August 2018, Frankfort Police Department officers were dispatched to the Veterans of Foreign Wars, where gunshots had been reported. In his plea agreement, Christopher admitted that officers observed him throwing a firearm on the ground at the scene and, during the investigation, officers also located multiple spent shell casings, along with a female inside with a gunshot wound.

Christopher pleaded guilty to the charges in May 2019. Christopher had previously been convicted of two counts of second degree robbery in 2013.

Under federal law, Christopher must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Special Agent in Charge for ATF; and Chief Charles Adams, Frankfort Police Department, jointly announced the sentence.

The investigation was conducted by the ATF and Frankfort Police Department.  The United States was represented by Assistant U.S. Attorneys Cynthia T. Rieker.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

– END –

FRANKFORT, Ky. – Two Frankfort brothers appeared in federal court on Thursday, before U.S. District Court Judge Gregory F. Van Tatenhove, and admitted to committing wage and hour offenses. One brother also admitted to knowingly receiving child pornography.        

Fei Guo Tang, 49, pleaded guilty to knowingly receiving visual depictions of a minor engaging in sexually explicit conduct and knowingly failing to pay workers minimum wages and time-and-a-half wages for hours worked in excess of 40 hours per week.

According to his plea agreement, a forensic examination of Fei Ghou Tang’s telephone revealed five videos containing depictions of minors engaged in sexually explicit conduct.  Additionally, Fei Guo Tang failed to pay a total of $60,690.36 in required overtime and minimum wages to five of his employees.

Fei Zhou Tang, 51, pleaded guilty to knowingly making false statements on an Employer’s Quarterly Unemployment Wage and Tax Report and knowingly failing to pay workers time-and-a-half wages for hours worked in excess of 40 hours per week.

Fei Zhou Tang admitted that he knowingly made the false statements on the Employer’s Quarterly Wage and Tax Report by omitting the names of undocumented workers, on multiple quarterly unemployment forms, and failing to pay overtime wages to workers who worked more than forty hours per week. According to his plea agreement, Fei Zhou Tang failed to pay a total of $229,207.26 in required overtime and minimum wages to six employees.                     

Fei Guo Tang was initially indicted in March 2019.  He pleaded guilty to charges contained in a Second Superseding indictment, which was returned in May 2019.  His brother Fei Zhou Tang was initially indicted in July 2018.  He pleaded guilty to charges contained in a Second Superseding indictment, which was returned in June 2019.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jason Crosby, U.S. Department of State, Diplomatic Security Service, Supervisory Special Agent, Criminal Division Chief; Matthew Utley, Assistant District Director, Department of Labor Wage and Hour Division; Rafiq Ahmad Special Agent in Charge, DOL Office of Inspector General; Rod Owens, Special Agent in Charge, Social Security Administration, Office of Inspector General; and Kentucky Attorney General Andy Beshear jointly announced the guilty pleas.

The investigation was conducted by the Department of State, Department of Labor, Social Security Administration, Office of Inspector General, and the Kentucky Office of the Attorney General.  The United States was represented by Assistant U.S. Attorneys Hydee Hawkins, David Marye, and Dmitriy Slavin.

Fei Guo Tang is scheduled to be sentenced on February 26, 2020 at 10 a.m. He faces not less than five years and not more than 20 years for receiving child pornography. Fei Zhou Tang is also scheduled to be sentenced on February 26, 2020 at 11 a.m. He faces up to five years in prison and a maximum fine of $250,000 for making false statements. In addition, both brothers will be required to pay restitution, a money judgment in lieu of forfeiture, and a civil fine for failing to pay required wages.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

— END —

FRANKFORT, Ky- A Shelbyville, Kentucky, man Todd G. Harris, 33, who previously admitted to drug possession with the intent to distribute and possession of a firearm in furtherance of drug trafficking, was sentenced Wednesday by U.S. District Court Judge Gregory VanTatenhove to 108 months in prison.

According to his plea agreement, Harris was found unconscious in a wrecked vehicle in July 2018 by officers with the Shelbyville Police Department. Upon search, officers also located a Glock 9 mm and a bag containing marijuana and Xanax tablets. Harris admitted to possession with intent to distribute alprazolam and possession of a firearm in furtherance of drug trafficking. Harris was previously convicted of trafficking marijuana in 2014.    

Harris pleaded guilty in June 2019.          

Under federal law, Harris must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Tommy Estevan, Acting Special Agent in Charge for ATF, and Chief Bruce Gentry, Shelbyville Police Department, jointly announced the sentence.

The investigation was conducted by ATF and Shelbyville Police Department. The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

— END —

PIKEVILLE, Ky. - A Salyersville, Kentucky, woman, Kelsie Spencer, 25, was sentenced to 24 months in federal prison by United States District Judge Robert Wier on Tuesday, following her conviction for tampering with a controlled substance.       

According to Spencer’s plea agreement, while working as a nurse at Paul B. Hall Regional Medical Center, she removed vials of butorphanol tartrate (Stadol) from the drug supply area of the hospital, for her own personal use.  Spencer then injected a saline solution back into the vials, in order to conceal her criminal activity.  In her plea agreement, Spencer acknowledged that she acted with reckless disregard for the risk that another person would be placed in danger of death or bodily injury, if health care personnel had attempted to utilize these altered drugs on a patient that actually needed them.

 Spencer pleaded guilty in July 2019.

Under federal law, Spencer must serve 85 percent of her prison sentence and will be under the supervision of the U.S. Probation Office for three years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Mark S. McCormack, Special Agent in Charge for the Food and Drug Administration – Office of Criminal Investigations; and Commissioner Richard Sanders, Kentucky State Police, jointly announced the sentence.

The investigation was conducted by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Kentucky State Police. The United States was represented by Assistant U.S. Attorneys William S. Dotson and Andrew Trimble.

— END —

FRANKORT, Ky.- A Lexington, Kentucky, man admitted in federal court Wednesday that he trafficked 28 grams or more of crack cocaine.

Devaun Laquis Robertson, 27, pleaded guilty today to possession with intent to distribute cocaine base (crack cocaine) before U.S. District Court Judge Gregory VanTatenhove.   

According to Robertson’s plea agreement, in March 2019, Lexington Police searched his residence and found a digital scale with residue. In the plea agreement, he admitted also the officers then searched Robertson’s vehicle and found 39.446 grams of crack cocaine. Robertson admitted that he knowingly and intentionally possessed with intent to distribute the crack cocaine found in his vehicle.         

Robertson was indicted in August 2019.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Chief Lawrence Weathers of the Lexington Police Department, jointly announced the guilty plea.

The investigation was conducted by Lexington Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Cynthia T. Rieker. 

Robertson is scheduled to be sentenced on March 4, 2020.  He faces up to 40 years in prison and a maximum fine of $5 million. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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LEXINGTON, Ky. - Three Carlisle, Kentucky farmers admitted in federal court Thursday, before United States District Judge Karen Caldwell, that they committed crop insurance fraud-related offenses.

Bradley Price, 34, pleaded guilty to conspiring to commit money laundering.  According to his plea agreement, Bradley Price farmed tobacco in Nicholas and Bourbon Counties and carried federal crop insurance covering those crops in at least 2013 and 2014.  During those two years, Price admitted to working with individuals identified as E.P. and R.W. to hide his crop production from his crop insurance company.  The scheme involved Bradley Price providing his tobacco to E.P. to sell and then writing a check for that sales price to Clay’s Tobacco Warehouse.  In this way, it appeared that Bradley Price had purchased the tobacco he sold through E.P. from Clay’s Tobacco Warehouse, and Bradley Price never reported this crop production to his insurance company.  R.W. then wrote checks covering the price of the sale that tobacco, and E.P. applied 70 percent of those checks to Bradley Price’s bank account, keeping the 30 percent as his payment.  This meant that Bradley Price was paid for his crop production, while also receiving an insurance payment from his crop insurance company for damage to that same crop.

Jimmy Price, 57, and Brandon Price, 27, both pleaded guilty to conspiring to commit crop insurance fraud.  According to their plea agreements, Jimmy Price farmed tobacco in Nicholas and Bourbon Counties, and Brandon Price farmed tobacco in Nicholas County. Both carried federal crop insurance covering their tobacco in at least 2013 and 2014. In those years, both admitted to engaging in the same scheme as Bradley Price with E.P. and R.W., except that Jimmy and Brandon’s plea agreements state that Bradley Price handled concealing the scheme, after providing Bradley Price with blank checks drawn on their respective bank accounts.

All three defendants are scheduled to be sentenced on January 22, 2020. Bradley Price faces up to 20 years in prison and a maximum fine of $500,000 or twice the amount of loss.  Jimmy and Brandon Price face up to five years in prison and a maximum fine of $250,000 or twice the amount of loss.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky; Bethanne M. Dinkins, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General; James Robert Brown, Jr.,, Special Agent in Charge, Federal Bureau of Investigation; Christopher Altemus, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Dwayne Depp, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the guilty pleas.

The investigation was conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance.  The United States was represented by Assistant U.S. Attorneys Erin M. Roth and Kathryn A. Anderson.  

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Lexington, KY- Emmanuel Maurice Strange, who previously admitted to conspiring to distribute hundreds of oxycodone pills throughout Nicholasville, Kentucky, and surrounding areas, was sentenced this week.

U.S. District Court Chief Judge Danny C. Reeves sentenced Strange, who had no prior drug trafficking history, to 46 months imprisonment. Strange is the last of his co-defendants to be sentenced in the case. The other four defendants involved, Derald Johnson, Jami Oliver, Dave Barnett, and Roberto Avalos Gallegos, were previously sentenced to 67 months, 41 months, 37 months, and 18 months, respectively.       

According to plea agreements, Strange, Johnson, Oliver, Barnett, Avalos, and others, worked together to distribute oxycodone throughout Nicholasville, Kentucky and surrounding areas. Strange was responsible for transporting oxycodone pills from Detroit, Michigan to Nicholasville, Kentucky, where Barnett would further distribute the pills. Johnson, aided and abetted by Oliver, also supplied large quantities of oxycodone to Barnett, and were observed conducting a distribution to Avalos on the day of their arrest.                  

Under federal law, the defendants must serve 85 percent of their prison sentence.  Afterwards, Johnson will be under the supervision of the U.S. Probation Office for five years, and all other defendants will be under supervision for three years.

“The distribution of opioids, such as oxycodone pills, remains a significant issue in central Kentucky,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Our Office is committed to working with our law enforcement partners to hold opioid traffickers, like these defendants, accountable for their criminal conduct. I commend the hard work and cooperation of federal, state, and local law enforcement in dismantling a significant, multi-state drug trafficking operation that was responsible for the distribution of thousands of oxycodone pills in our region.”

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Daniel Dodds, Acting Special Agent in Charge, DEA, Louisville Field Division; Commissioner Chief Todd Justice, Nicholasville Police Department Drug Task Force jointly announced the sentences.

The investigation was conducted by DEA and Nicholasville Police Department’s Drug Task Force.  The U.S. Attorney’s Office was represented by Assistant U.S. Attorneys Lauren Tanner Bradley.

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