Eastern District of Kentucky

LEXINGTON, Ky. – United States Attorney Robert M. Duncan Jr., will be joined with federal, state, and local partners to have a roundtable discussion about Red Ribbon Week (October 23-31) and the impact of the week on central Kentucky.

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

          Todd Kuehnlein, Resident Agent in Charge, Drug Enforcement Administration

          Major Mike Rogers, Kentucky State Police

          Mayor of Lexington, Linda Gorton

          Sheriff Kathy Witt, Fayette County Sheriff’s Department

Chief Lawrence Weathers, Lexington Police Department

 

Where:         U.S. Attorney's Office

Eastern District of Kentucky

260 W. Vine Street, Suite 300

Lexington, Kentucky, 40507

 

When:             Thursday, Oct. 24, 2019 at 11 a.m.

 

LEXINGTON, Ky. - A Lexington man, Juan Gomez, 29, who was found guilty by a federal jury in June, of possession with the intent to distribute heroin and methamphetamine, was sentenced today to 235 months in federal prison, by Chief United States District Judge Danny Reeves.      

The evidence presented at his trial established that Gomez was originally charged in December 2015, with possession with intent to distribute heroin, after he wrecked his vehicle into a telephone pole and the heroin was found in his vehicle. Then, in July 2017, while intoxicated, Gomez wrecked his vehicle into the back of an off duty University of Kentucky police officer.  A search of the vehicle yielded over 15 pounds of crystal methamphetamine, several pounds of marijuana, and approximately $60,000 in drug proceeds.                              

Under federal law, Gomez must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years. Additionally, Gomez was ordered to forfeit $60,131.

“Investigating and prosecuting drug distribution cases like this one is and will continue to be a significant priority for our Office,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The defendant intended to distribute two types of dangerous drugs – heroin and methamphetamine – that have both caused great damage to our District. The sentence imposed by the Court reflects the seriousness of the defendant’s conduct and the devastating impact of these drugs on those that use them. Working with our partners in law enforcement, we are committed to holding drug traffickers like the defendant accountable for their actions and stopping the flow of drugs into our communities.”

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

The investigation was conducted by the Lexington Police Department and the Drug Enforcement Administration (DEA).  The United States was represented by Assistant U.S. Attorneys Roger W. West and Tashena Fannin.

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WASHINGTON – Today, the Department of Justice announced it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.

“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”

“Preventing school violence is critically important. We are appreciative that the Department of Justice provided the additional resources to schools in the Eastern District of Kentucky,” said Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky. “These resources will help ensure a safe and secure learning environment for students and ultimately make schools and communities safer.”    

The grants award more than $1.7 million in funding to prevent violence in schools in the Eastern District of Kentucky. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.

The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:

• Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
• Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
• Train law enforcement to help deter student violence against others and themselves;
• Improve notification to first responders through implementation of technology that expedites emergency notifications;
• Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
• Train school officials to intervene when mentally ill individuals threaten school safety; and
• Provide training and technical assistance to schools and other awardees in helping implement these programs.

For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV

About the Office of Justice Programs:

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, 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 justice system. More information about OJP and its components can be found at www.ojp.gov.

 

About the Office of Community Oriented Policing Services:

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

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LEXINGTON, Ky. – A Floyd County, Kentucky-based physician pleaded guilty Thursday for his role in unlawfully distributing opioids by pre-signing blank prescriptions that were ultimately completed by others and delivered to patients not seen by him. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office, Special Agent in Charge D. Christopher Evans of the U.S. Drug Enforcement Administration’s (DEA) Louisville Field Division and Director Michelle Rudovich of the Kentucky Medicaid Fraud Control Unit (MFCU) made the announcement.

Mohammed A.H. Mazumder, M.D., 48, of Prestonsburg, Kentucky, pleaded guilty to one count of conspiracy to unlawfully distribute controlled substances.  He is scheduled to be sentenced on Feb. 19, 2020, by U.S. District Judge Gregory F. Van Tatenhove of the Eastern District of Kentucky, who accepted his plea. 

Mazumder was a licensed physician employed by a family practice clinic located in Prestonsburg, Kentucky.  A substantial part of the clinic’s practice was pain management, and Mazumder routinely prescribed controlled substances, including opioids, to patients of the clinic.  According to admissions made as part of his plea agreement, on occasion, when Mazumder was planning to be absent from the clinic, in anticipation of patients nevertheless coming to the clinic, Mazumder pre-signed prescriptions for opioids, which later were completed by other staff members of the clinic and ultimately delivered to patients not seen by Mazumder.  Specifically, as part of his plea, Mazumder admitted to pre-signing prescriptions for opioids prior to traveling abroad.  

“This medical professional conspired to unlawfully distribute controlled substances and violated his oath to do no harm,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “He was supposed to serve the needs of his patients; instead, he contributed to the opioid epidemic, allowing powerful opioids to be unnecessarily prescribed, even when he was not physically present at his medical clinic, by using pre-signed prescriptions. We are proud to work in partnership with our law enforcement colleagues as part of the ARPO Strike Force and to help combat this dangerous and illegal conduct.”

HHS-OIG, the DEA and the Kentucky MFCU investigated the case. Assistant Chief Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case. 

The Fraud Section leads the ARPO Strike Force.  Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills.

# # #

Seven former Osteo Relief Institutes (ORIs) and their owners have agreed to pay the United States collectively more than $7.1 million to resolve False Claims Act allegations that they knowingly billed Medicare for medically unnecessary viscosupplementation injections and medically unnecessary knee braces, the Justice Department announced today. 

“Billing Medicare for medically unnecessary items and procedures puts patients at risk and wastes taxpayer funds,” said Assistant Attorney General Jody Hunt of the Civil Division. “Today’s settlement demonstrates that the Department of Justice will pursue companies and individuals who seek to benefit at the expense of federal health care programs and their beneficiaries.”

“Providers who bill the Medicare system must do so in a manner that is consistent with good patient care,” said Erica MacDonald, U.S. Attorney for the District of Minnesota. “When individuals and entities permit financial motivation to cloud their judgment, our office is committed to addressing these abuses. We very much appreciate the tireless investigative efforts of our law enforcement partners at the Federal Bureau of Investigation and Health and Human Services in pursuing this nationwide investigation.”

“This settlement demonstrates that the U.S. Attorney’s Office will continue to identify and hold accountable those healthcare providers who improperly bill medically unnecessary services,” said Robert M. Duncan Jr., U.S. Attorney for the Eastern District of Kentucky. “It is also an example of our commitment to identify those who seek to defraud the government, as well as to work with whistleblowers, who play a critical role in helping keep entities honest, and are encouraged to report suspected waste, fraud, and abuse by those billing federal programs.”

“Providing unnecessary care in an effort to increase profits is illegal and may put patients at risk,” said Lamont Pugh, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “The OIG’s five-year compliance agreement in the Osteo Relief Institutes case is designed to ensure such alleged behavior will not be repeated.”

Viscosupplementation is a treatment for osteoarthritis, in which a doctor injects a gel-like fluid into a patient’s knee joint to act as a lubricant and to supplement the natural properties of joint fluid.  The government alleged that these clinics administered viscosupplementation injections to patients who did not need them, used multiple brands of viscosupplements successively on patients without clinical support, and used discounted viscosupplements reimported from foreign countries.  The government also alleged that they provided unnecessary custom knee braces to patients.

The ORI clinics and their owners in Phoenix, Arizona; San Diego, California; Lexington, Kentucky; Wall Township, New Jersey; Dallas, Texas; and San Antonio, Texas have agreed collectively to pay the United States $6 million, and the clinic in Colorado Springs, Colorado, has agreed to pay the United States approximately $1.13 million to resolve its role in the submission of false claims to Medicare for medically unnecessary viscosupplementation and braces. 

Contemporaneous with the civil settlement, the settling ORI clinics and related parties entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General.  The CIA requires implementation of comprehensive compliance controls and annual ORI clinics claims reviews by an Independent Review Organization.

The allegations resolved by today’s settlement were identified by a government investigation that arose out of a critical analysis of Medicare claims data. The settlement also resolves a lawsuit filed against the ORIs and their owners under the False Claims Act’s qui tam provisions, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act allows the government to intervene and take over the action, as it did, in part, in this case. The whistleblower in this action will receive $857,550.

The government’s settlement in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

The matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Minnesota, the U.S. Attorney’s Office for the Eastern District of Kentucky, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against defendants are allegations only, and there has been no determination of liability.

A Floyd County, Kentucky-based physician pleaded guilty today for his role in unlawfully distributing opioids by pre-signing blank prescriptions that were ultimately completed by others and delivered to patients not seen by him. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office, Special Agent in Charge D. Christopher Evans of the U.S. Drug Enforcement Administration’s (DEA) Louisville Field Division and Director Michelle Rudovich of the Kentucky Medicaid Fraud Control Unit (MFCU) made the announcement.

Mohammed A.H. Mazumder, M.D., 48, of Prestonsburg, Kentucky, pleaded guilty to one count of conspiracy to unlawfully distribute controlled substances.  He is scheduled to be sentenced on Feb. 19, 2020, by U.S. District Judge Gregory F. Van Tatenhove of the Eastern District of Kentucky, who accepted his plea. 

Mazumder was a licensed physician employed by a family practice clinic located in Prestonsburg, Kentucky.  A substantial part of the clinic’s practice was pain management, and Mazumder routinely prescribed controlled substances, including opioids, to patients of the clinic.  According to admissions made as part of his plea agreement, on occasion, when Mazumder was planning to be absent from the clinic, in anticipation of patients nevertheless coming to the clinic, Mazumder pre-signed prescriptions for opioids, which later were completed by other staff members of the clinic and ultimately delivered to patients not seen by Mazumder.  Specifically, as part of his plea, Mazumder admitted to pre-signing prescriptions for opioids prior to traveling abroad.    

HHS-OIG, the DEA and the Kentucky MFCU investigated the case.  Assistant Chief Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case. 

The Fraud Section leads the ARPO Strike Force.  Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills.

LEXINGTON, Ky. – An Indianapolis man was indicted Thursday for conspiring to launder money illegally obtained from victims of elder financial exploitation.

A federal grand jury in Lexington returned an indictment charging 33-year-old Ismaila Fafunmi, a Nigerian national who is a lawful permanent resident of the United States, with one count of conspiracy to commit money laundering.

According to court records, a female victim living in the Eastern District of Kentucky met an individual on an online dating website, and was eventually defrauded into believing she was in a romantic relationship with a member of the United States military, who was stationed abroad.  Through the course of their online communications, the perpetrator convinced the victim to send him money, electronics, and other items, to give him access to her bank accounts online, and to obtain a home equity line of credit to pay for his separation fee from the military.  In total, she lost approximately $200,000 at the direction of her supposed online companion.

These same records indicated there was another female victim, who was defrauded into believing a friend on Facebook had pointed her to an opportunity to win a grant.  She sent approximately $183,000 at the direction of the perpetrators, believing these up-front costs would lead to her award of the grant money.

According to the indictment, a portion of this money was either sent to Fafunmi himself, through the mail, or to individuals he recruited to receive money in bank accounts he had them set up, in and around the Indianapolis area.    

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.

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 indictment.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation.  The indictment was presented to the grand jury by Assistant U.S. Attorney Kathryn M. Anderson. 

A date for the defendant to appear in court has not yet been scheduled.  The defendant faces up to twenty years in prison for the money laundering conspiracy and a maximum fine of $500,000.  However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes. 

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

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LEXINGTON, Ky. - A Harrison County Constable and former Bourbon County firefighter was indicted today, for the producing child pornography.           

A federal grand jury in Lexington returned an indictment charging 36 year-old William Michael Fields Jr. with two counts of using a minor to engage in sexually explicit conduct for the purpose of creating a visual depiction of that conduct.           

The indictment alleges that Fields produced child pornography on March 17 and 23, 2019, each time in Bourbon County, Kentucky.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Chief Raymond Johnson of the Cynthiana Police Department, and John Condon, Special Agent in Charge of Homeland Security Investigations (HSI), jointly announced the indictment.

The investigation preceding the indictment was conducted by the Cynthia Police Department with assistance from HSI.  The indictment was presented to the grand jury by Assistant U.S. Attorneys Erin Roth and Mary Melton. 

A date for Fields to appear in court has not yet been scheduled. He faces up to 30 years in prison and a maximum fine of $5,000 for each count.  However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes. 

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

 

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LEXINGTON, Ky. – A Boyd County man was indicted Thursday on a charge of robbing the Bluegrass Community Federal Credit Union (BCFCU), located in Ashland, Kentucky.

Danny P. Chaffin, 37, of Boyd County, was charged with taking over $12,000 from BCFCU, a federally insured financial institution, on April 5, 2019. On Thursday, a grand jury in Lexington returned the single-count indictment charging Chaffin with violating 18 U.S.C. § 2113(a), the federal bank robbery statute.

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 Todd Kelley, Chief of the Ashland Police Department, jointly announced the indictment. The investigation preceding the indictment was conducted by the Ashland Police Department and the Federal Bureau of Investigation.

A date for Chaffin to appear in federal court has not yet been scheduled. He faces up to 20 years in prison and a fine of $250,000. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.

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

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FRANKFORT, Ky. – Joseph S. Gable, 63, of Shelbyville, Kentucky, was sentenced to 151 months in federal prison on Wednesday, by United States District Judge Gregory F. Van Tatenhove, for knowingly receiving child pornography.

Gable previously admitted that, in August of 2018, he knowingly received images of child pornography on his computer.  A forensic examination of Gable’s computer and electronic storage devices revealed 35,972 still images and 807 videos of child pornography, including some that depicted children under the age of 12 and some that depicted sadistic or masochistic conduct.

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

“Child pornography and child exploitation cases are some of the most important and impactful cases that law enforcement encounters,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We, along with our federal, state, and local law enforcement partners, are committed to holding accountable those who manufacture, possess, or receive child pornography.  To be clear, receiving child pornography is not a victimless crime.  The creation of these images causes untold harm to the children depicted, and their victimization continues each time an image is shared with someone else.  The defendant is well deserving of the sentence he received today.   

United States Attorney Duncan, Steve Igyarto, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI), and Andy Beshear, Kentucky Attorney General, jointly announced the sentence.

The investigation was conducted by HSI and the Kentucky Office of Attorney General’s Cyber Crimes Branch.  The United States was represented by Assistant United States Attorney David Marye.

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FRANKFORT, Ky. –Adlie Penman, 40, of Lexington, Kentucky, was sentenced to 72 months in federal prison on Wednesday, by United States District Judge Gregory F. Van Tatenhove, after pleading guilty to one count of being a convicted felon in possession of a firearm.

On November 19, 2018, officers with the Lexington Police Department responded to a residential noise complaint. While at the scene, officers observed Penman emerge from a tree line next door. Upon seeing police, Penman immediately tossed a loaded .22 caliber pistol, which was later recovered. Penman was a convicted felon, with multiple prior felony convictions including burglary and drug trafficking.

Under federal law, Penman must serve 85 percent of his 72 month sentence. Upon completion of his sentence, 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; 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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COVINGTON, Ky.  Robert Ramone Poe, 39, a Northern Kentucky man who was convicted of illegally possessing a firearm, was sentenced on Tuesday to 105 months in federal prison, by U.S. District Judge David L. Bunning.           

Poe is a convicted felon and, therefore, prohibited under federal law from possessing firearms and ammunition. 

In March 2019, Poe was arrested by the Northern Kentucky Drug Strike Force after a search of his Covington residence uncovered a 9 millimeter handgun in his bedroom, along with cocaine. Poe pleaded guilty to the charge in July 2019. 

Under federal law, Poe must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three 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, jointly announced the sentence.

The investigation was conducted jointly by the Northern Kentucky Drug Strike Force and ATF.  The United States was represented by Assistant U.S. Attorney Jennifer K. Weinhold

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LEXINGTON, Ky. – Marcos Salas Mendoza, 30, was sentenced to 22 years in federal prison for his role in a conspiracy to distribute cocaine, fentanyl, and acetylfentanyl, and to launder drug proceeds.

The investigation into Salas’ criminal activities began in 2018 and was jointly conducted by the Drug Enforcement Administration and the Lexington Division of Police. As part of the overall scheme to distribute drugs and to launder money, Salas, co-defendant Marcos Gonzalez Garfias, and others routinely smuggled drugs and drug proceeds in the axles of vehicles to avoid detection by law enforcement. Gonzalez Garfias previously pleaded guilty to the same offenses and is scheduled to be sentenced on November 1.

According to court documents, when agents executed a search warrant at Salas’s “stash house” in Lexington, they found multiple disassembled axles. The agents found large quantities of controlled substances concealed within those automotive parts and concealed within numerous appliances, such as the dishwasher, microwave oven, stove and refrigerator. Overall, agents located a total of over 3 kilograms of fentanyl nearly 1 kilogram of acetylfentanyl, and nearly 10 kilograms of cocaine from the search of the residence and a storage unit. Agents also located $134,000 in drug proceeds at the stash house.

A total of approximately $257,000 in drug proceeds was seized and forfeited as a result of the investigation. Salas admitted in his plea agreement that the drug proceeds were destined for Mexico to members of the larger drug trafficking organization to promote their drug-trafficking activities.

“Fentanyl is potentially lethal at very low levels – a dose as small as 2 milligrams can be deadly. The defendant is responsible for conspiring to distribute nearly 6 pounds of fentanyl and over a pound of acetylfentanyl- enough to kill well over one million people,” said United States Attorney Robert M. Duncan Jr. “I commend the cooperative efforts of the Lexington Police Department and DEA in this investigation.  Removing these large quantities of deadly drugs from the community undoubtedly saved lives. The lengthy sentence imposed by the Court reflects the dangerousness of the defendant’s conduct and should serve as a warning to others involved in similar drug trafficking activities.”            

Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky; Daniel Dodds, Acting Special Agent in Charge, DEA Louisville and Lawrence Weathers, Chief of Police, Lexington Division of Police, jointly announced the indictment. Assistant United States Attorney Todd Bradbury prosecuted the case on behalf of the United States.

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LEXINGTON, Ky. – Leonard Glover, 32, of Frankfort, pleaded guilty in federal court Thursday, before U.S. District Judge Gregory Van Tatenhove, to distribution of more than 10 grams of acetylfentanyl, a fentanyl analogue.            

As part of his guilty plea, Glover admitted that, on June 11, he sold 13 grams of acetylfentanyl to a confidential informant for $900. He was indicted in May 2019.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Dan Dodds, Special Agent in Charge of the DEA; and Charles Adams, Chief of the Frankfort Police Department, jointly announced the guilty plea.

The investigation was conducted by the U.S. Drug Enforcement Administration and the Frankfort Police Department. The United States was represented by Assistant U.S. Attorney David Kiebler. 

Glover is scheduled to be sentenced on Jan. 23, 2020 in Frankfort, Kentucky. 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 its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.

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

 

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LEXINGTON, Ky. – Anthony McIntosh, 28, of Detroit, was sentenced Friday to 27 months in federal prison, by United States District Judge Danny C. Reeves, for possession with intent to distribute fentanyl.           

In June 2018, Lexington Police officers apprehended McIntosh and located 21 grams of fentanyl in his vehicle. In his plea agreement, McIntosh admitted that he intended to sell the fentanyl to others.           

Under federal law, McIntosh must serve 85 percent of his prison sentence. After his sentence, he will be under the supervision of the U.S. Probation Office for three years following his release and will have to pay a $3,600 fine.

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

The investigation was conducted by the U.S. Drug Enforcement Administration and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney David 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.— Roberto Bernal Salas, 32, pleaded guilty Thursday to possessing and intending to distribute three kilograms of cocaine and 122 gram of crack cocaine.

In his guilty plea, Salas admitted that he possessed and intended to sell over three kilograms of cocaine and over 122 grams of crack cocaine found by law enforcement in Salas’s home in Lexington. Salas also admitted that the amount of $33,000 seized from his home represented proceeds from the sale of a kilogram of cocaine. Salas was indicted by a grand jury in July 2019.

Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, James Robert Brown Jr., Special Agent in Charge FBI Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement today after Salas entered his guilty plea.

The investigation was conducted by FBI and Lexington Police Department. The United States was represented in the case by Assistant United States Attorney Roger W. West.

Salas is currently scheduled to appear for sentencing before United States District Court Judge Karen K. Caldwell in Lexington on Jan. 9, 2020, at 10:30 a.m.

Salas faces a maximum prison sentence of not less than 5 years but not more than 40 years. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal sentencing statutes.

— END —

LEXINGTON, Ky. – Chris D. Lewis, 49, of Lexington, was sentenced Thursday to 60 months in federal prison, by United States District Judge Karen K. Caldwell, for possession with intent to distribute 40 grams or more of fentanyl.       

According to his plea agreement, in December 2018, Lexington Police officers apprehended Lewis and located 58 grams of fentanyl and 13 grams of methamphetamine in his coat pocket. Lewis further admitted that he intended to distribute the fentanyl to other persons.           

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

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

The investigation was conducted by the U.S. Drug Enforcement Administration and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney David 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. – Jeffery L. Barnett, 49, of Winchester was sentenced to 300 months in federal prison by United States District Judge Danny C. Reeves, for the possession with the intent to distribute more than 100 grams of heroin and possession of a firearm by a convicted felon.  

According to the plea agreement, a federal search warrant was executed at Barnett’s residence in Winchester, on March 11, 2019.  ATF agents and KSP detectives located over 100 grams of a heroin/fentanyl mix that was meant for sale and seized over $2,000 in drug proceeds.  A subsequent search was executed at a nearby storage unit leased by Barnett, and 19 stolen firearms were discovered.  Barnett has five prior felony drug trafficking convictions and qualified as a “Career Offender” under federal law.

“The defendant’s criminal history, the type and quantity of drug he intended to distribute, and the numerous firearms he illegally possessed, directly led to his lengthy sentence,” said United States Attorney Robert M. Duncan, Jr. “I commend the cooperation and dedicated work of ATF and KSP in building the investigation that led to this prosecution and conviction.”      

Barnett previously pleaded guilty on June 10.

“Repeat violent offenders are a threat to the safety and security of our communities,” stated ATF Acting Special Agent in Charge Tommy Estevan of the Louisville Field Division. “All too often, drug dealers use guns to further their violent criminal activities. Today’s sentence reflects ATF’s ongoing commitment to working with our law enforcement partners to reduce violent crime and make our communities safer for everyone.”

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for ATF; and Richard W. Sanders, Commissioner of the Kentucky State Police, jointly made the announcement.

The investigation was conducted by the ATF and the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Roger W. West. 

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LAUREL, Ky. - Dylan Brewer, 23, of Harlan County, pleaded guilty Monday to possession with the intent to distribute over 500 grams of methamphetamine and possession of a firearm in furtherance of drug trafficking crime, before U.S. Magistrate Judge Edward B. Atkins. 

 According to the plea agreement, law enforcement stopped Brewer’s vehicle in Bell County, Kentucky, on July 13, and found two kilograms of methamphetamine and a loaded firearm hidden in a speaker box in the back seat. During the investigation, law enforcement learned that Brewer had been obtaining methamphetamine in Georgia and traveling to Harlan County to distribute it. 

“Reducing the availability of dangerous drugs and protecting the public are two of our most important priorities,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Prosecuting armed methamphetamine traffickers, like the defendant, satisfies both. This prosecution, and others like it, reinforce a simple message:  dealing meth with a gun will likely result in a long stay in a federal prison.” 

U.S. Attorney Duncan; Dan Dodds, Acting Special Agent in Charge of the DEA Louisville Field Division; Richard Sanders, Commissioner of Kentucky State Police; Kyle Dunn, Pineville Police Chief; Mitch Williams, Bell County Sheriff; and Mike Smith, Knox County Sheriff, jointly announced the guilty plea. The United States was represented by Assistant U.S. Attorney Andrew H. Trimble. 

Brewer’s sentencing hearing has not yet been set. He faces a minimum of 15 years in prison, with a maximum of life, and a maximum fine of $20 million. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

— END —

 

LEXINGTON, KY- A Lexington, Kentucky, woman, who previously admitted to sending false information concerning explosives threatening the University of Kentucky campus was sentenced Tuesday to 6 months in prison.

U.S. District Court Judge Danny Reeves sentenced 20-year-old, Haily Loriane Duvall for communicating false threats regarding explosives.           

Duvall previously admitted of using Snapchat to communicate threats to the University of Kentucky community on November 7 and 8 of 2018. According to the plea agreement, Duvall created a second account and used it to further disseminate the created threats. Duvall also informed other University of Kentucky students about the Snapchat communications, contacted the University of Kentucky Police Department and reported the threats, and also made contact with a local news reporter to attempt to publicize the alleged threat. After being confronted by law enforcement, Duvall admitted to being responsible for the threats and that the threats would be seen as a serious expression of intent to commit harm to University of Kentucky students and faculty.

Duvall pleaded guilty on June 24. Under federal law, Duvall must serve 85 percent of her prison sentence and will be under the supervision of the U.S. Probation Office for 3 years, which includes 6 months at home incarceration. Duvall must also pay a $1,800 fine.   

“Using the internet to make threatening communications, even if those threats are a hoax, is a serious criminal offense. The defendant’s actions were not harmless. She caused law enforcement to needlessly respond to her hoax, potentially taking them away from real emergencies, and substantially disrupted activities at the University of Kentucky and the campus area,” said United States Attorney Robert M. Duncan, Jr. “Prosecution of these hoax cases should serve notice that this conduct is unacceptable, and hopefully, it will deter others from engaging in similar behavior.”    

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Special Agent in Charge James Robert Brown, Jr. of the FBI’s Louisville, Kentucky Field Division, and Joe Monroe, Chief of the University of Kentucky Police Department, jointly announced the sentence.

The investigation was conducted by the University of Kentucky Police Department and the FBI. The United States was represented by Assistant U.S. Attorney Andrew T. Boone.

— END —

 

LONDON, Ky. – Jason William Graves, 40, of Gray, Ky., pleaded guilty to being a felon in possession of a firearm on Tuesday.

Graves, who was previously convicted of being a felon in possession of a firearm in 2013, acknowledged that he illegally possessed two firearms on June 23, 2019.  Graves faces up to 10 years in federal prison, followed by three years of federal supervised release, and a fine of not more than $250,000.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, made the announcement today.

Assistant United States Attorney R. Nicholas Rabold is prosecuting the case on behalf of the United States.  The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Graves' sentencing is scheduled for Tuesday, January 14, 2020, at 10:00 a.m., at the United States District Court in London.

– END –

LEXINGTON, Ky.—Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. 

            Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

            Throughout the past two years, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.   According to FBI’s Uniform Crime Report released this week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.

                “The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”

            “The Project Safe Neighborhoods program is a cornerstone of our violent crime reduction efforts.  Drawing on the strong partnerships among our federal, state, and local law enforcement, we are protecting the public and holding the most violent offenders accountable for their criminal actions,” said United States Attorney Robert M. Duncan, Jr. “We recognize there is still work to be done, and we remain committed to this important public safety initiative.”         

As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions across the Eastern District of Kentucky over the past year:

Enforcement Actions

            In January 2018, federal, state, and local law enforcement agencies created the Fayette County Violent Crime Task Force.  The Task Force focuses investigative and prosecutorial resources on those individuals responsible for violent crime and significant drug trafficking in this area, particularly those who commit acts of violence while armed with a firearm and those who commit armed drug trafficking. 

                “Working in a collaborative way with stakeholders across our community as part of the Project Safe Neighborhoods program is producing positive results in Lexington,” Chief Lawrence Weathers said. “Patrol officers are building relationships with residents, detectives are coordinating investigations with other law enforcement agencies, and we are developing solid cases with prosecutors.  The effectiveness of the Project Safe Neighborhoods model cannot be overstated.”

            The Agencies participating in this effort include the ATF, DEA, FBI, Lexington Police Department, the Fayette County Sheriff’s Office, Lexington Community Corrections, the Fayette County Public Schools Law Enforcement Division, the Fayette County Attorney’s Office, the Fayette Commonwealth’s Attorney’s Office, and the United States Attorney’s Office.

            “ATF strives to be ‘no better partner’ to other law enforcement agencies,” stated ATF Acting Special Agent in Charge Tommy Estevan of the Louisville Field Division.  “During the past year, ATF and these agencies investigated illegal sources of crime guns and persons who illegally possessed or used guns to commit violent crimes in the Lexington area.  Together, we pursued ‘traffickers and trigger pullers’ with every resource, including new ballistic technology and other crime gun intelligence to disrupt the shooting cycle.  ATF remains committed to the continued success of Project Safe Neighborhoods and this comprehensive approach to public safety.”

      In response to recent shootings and related criminal activity, law enforcement in Fayette County have worked proactively to identify and apprehend those responsible.  Illegally possessing or using a firearm in criminal activity will likely result in a lengthy sentence of imprisonment. 

In the past year, our established partnerships have been an integral factor in our PSN prosecutions. Some examples of these prosecutions include:

• Keith A. Jefferson, 26, of Lexington, who was sentenced to 100 months in federal prison for possession of a firearm by a convicted felon. Read more.

 

• Gregory Thomopolous, 39, of Lexington, who was an Armed Career Criminal and sentenced to 262 months in federal prison for armed drug trafficking. Read more.

 

• D’Vonta Middlebrooks, 24, of Lexington, who was sentenced to 115 months in federal prison for possession of a firearm by a convicted felon. Read more.

 

Community Partnerships

            In addition to enforcement efforts aimed at removing the most violent offenders from our streets, law enforcement personnel have engaged in community outreach and education.  Working with the City of Lexington’s ONE LEX initiative, PSN participants have attended community safety days, provided information about community resources available, and served as mentors to school children in Fayette County. Read more about the coordinated efforts to reduce violent crime in Lexington.

            “PSN is not only about vigorous prosecution of violent crime, it also about a commitment to crime prevention, problem solving and community partnerships. We recognize the need for more complex solutions that not only seek positive outcomes for victims, but also strive for long-term solutions for defendants, potential defendants, and the community at large,” said Fayette Commonwealth’s Attorney Lou Anna Red Corn.  “It is my hope, that as our community partnerships grow, we will earn and keep the trust of the communities where crime has the greatest impact.”

Improvements to Community Safety

• For the second consecutive year, the estimated number of national violent crimes decreased when compared with the previous year’s statistics, according to FBI figures released today. In 2018, the number of violent crimes was down 3.3 percent from the 2017 number.

 

• The 2018 statistics also show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants. The violent crime rate fell 3.9 percent when compared with the 2017 rate.

 

• According to statistics released earlier this year by the Lexington Police Department, violent crime in Lexington decreased by 13 percent in 2018, compared to 2017.  This decrease included declines in homicides (down 21 percent), robberies (down 21 percent), aggravated assaults (down 11 percent), and shootings (down 23 percent).  Additionally, shots fired calls decreased by 9 percent.  Preliminary data through July 2019 shows a 9.1 percent decrease in Part I crime as compared to year to date in 2018.            

 

These enforcement actions and partnerships are 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 Department of Justice reinvigorated PSN in 2017 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

PIKEVILLE, Ky.- A Millstone, Kentucky, man, who previously admitted to distributing cocaine and being a convicted felon in possession of a firearm, was sentenced Friday to 140 months in federal prison.

U.S. District Judge Robert E. Wier sentenced Charles Perry Jr, 56, for distributing cocaine and illegal possession of a firearm. Perry pleaded guilty June 7, 2019.

Under federal law, Perry 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; Tommy Estevan, Acting Special Agent in Charge, ATF Louisville Field Division; and Commissioner Richard Saunders, Kentucky State Police, jointly announced the sentence.

The investigation was conducted by ATF and KSP. The United States was represented by Assistant U.S. Attorney Jenna Reed.

— END —

LEXINGTON, Ky. – Lavonte Harmon, 33, of Lexington, was sentenced Thursday to 80 months in federal prison, by United States District Judge Danny C. Reeves, for possession with intent to distribute acetylfentanyl, a fentanyl analogue.  

In December 2018, Lexington Police officer executed a search warrant on Harmon’s vehicle and residence, seizing 13 grams of acetylfentanyl, 17 grams of cocaine, $4,474 cash, and drug trafficking paraphernalia. In his plea agreement, Harmon admitted that he intended to distribute the drugs and agreed to forfeit the $4,474.            

Under federal law, Harmon must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years following his release. Harmon will also have to pay a $1,500 fine, imposed by the court.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Daniel D. Dodds, Acting Special Agent in Charge of the DEA; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.

The investigation was conducted by the U.S. Drug Enforcement Administration and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney David 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.— A Lexington man was indicted Thursday for robbing several Lexington businesses.

A federal grand jury in Lexington returned an indictment charging 54-year-old Jackie B. Love with five counts of robbery.           

The indictment alleges that Love robbed five different business around Fayette County on different occasions, from April 19-25, 2019. During these robberies, the indictment alleges Love unlawfully took, or attempted to take, personal property from the store clerk(s) against their will by means of actual and threatened force, violence, and fear of injury, by taking United States currency from the store when he threatened them with a firearm.  Court documents allege that Love was able to take $1,255 collectively. The Lexington Police arrested Love on April 26, 2019.           

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

The investigation preceding the indictment was conducted by ATF and Lexington Police Department. The indictment was presented to the grand jury by Assistant U.S. Attorney Cynthia Rieker.

A date for Love to appear in court has not yet been scheduled. He faces up to 20 years in prison, a maximum fine of $250,000, and three years of supervised release. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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

 

— END —

 

Lexington, Ky- Five defendants, who previously admitted to conspiring to distribute thousands of oxycodone pills throughout Richmond, Kentucky and surrounding areas, were sentenced this week.  

U.S. District Court Judge Karen Caldwell sentenced, Malik Chapman, Douglas Mayfield, Ryan Jones, Victoria Grimes, and Alyssa Parrish to 84 months, 40 months, 40 months, 18 months, and 18 months respectively. Four other defendants involved in the case, Patsy Wardle, Shannon Allen, Bianca Pennington, and Robert May, were previously sentenced in August to 148 months, 72 months, 41 months, and 40 months, respectively. 

According to plea agreements and trial evidence, Malik Chapman, Shannon Allen, Bianca Pennington, Patsy Wardle, and others, worked together to distribute oxycodone throughout Richmond, Kentucky and surrounding areas. Chapman, assisted by Grimes and Parrish, was responsible for transporting oxycodone pills from Detroit, Michigan to Richmond, Kentucky, where Allen and Pennington would further distribute the pills to local drug dealers, like Wardle, May, Mayfield, and Jones. Wardle also acted a source of supply for Allen at times. 

Under federal law, the defendants must serve 85 percent of their prison sentence and will be under the supervision of the U.S. Probation Office for 3 years.

“The distribution of opioids, such as oxycodone pills, remains a significant issue in central Kentucky, particularly in Madison County,” 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 Madison County and elsewhere in our region.”           

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Daniel D. Dodds, Acting Special Agent in Charge, DEA, Louisville Field Division; Commissioner Richard Sanders, Kentucky State Police; Chief James Ebert, Richmond Police Department; Sheriff Mike Coyle, Madison County Sheriff’s Department; and Chief David Gregory, Berea Police Department jointly announced the sentences.

The investigation was conducted by DEA, Richmond Police Department, and Appalachian HIDTA Madison County Drug task Force. The United States was represented by Assistant U.S. Attorneys Lauren Tanner Bradley and Paco Villalobos.

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 —

 

LONDON, Ky- Michael Virgil Woodham, 45, of Bessemer, Alabama was sentenced to 109 months in prison by U.S. District Court Judge Robert E. Wier for receiving child pornography.

According to Woodham’s plea agreement, he knowingly received a visual depiction from a Pulaski County resident, and the visual was of a minor engaging in sexually explicit conduct. The defendant admitted that he knew that the visual depiction was of a minor.

Michael Virgil Woodham pleaded guilty March 8.           

Under federal law, Woodham must serve 85 percent of his prison sentence. Upon release, he will be under the supervision of the U.S. Probation Office for 15 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 Johnnie Sharp, Jr., Special Agent in Charge, FBI Birmingham, Alabama Division, jointly announced the sentence.

The investigation was conducted by FBI. The United States was represented by Assistant U.S. Attorney Jenna Reed.

— END —

LONDON, Ky. - Stephen Ushery, Jr., of Cincinnati, was sentenced Wednesday to 130 months in federal prison, by United States District Judge Robert E. Wier, for conspiracy to distribute one kilogram or more of heroin. 

The conviction followed a two and a half year investigation that established Ushery as a drug supplier, who traveled from his home in Cincinnati to distribute multi-ounce quantities of heroin to several other local drug dealers in the Pulaski County area. In his plea agreement, Ushery admitted that between 2015 and 2018, he was responsible for distributing over one kilogram of heroin into the Eastern District of Kentucky. Ushery’s heroin distribution conspiracy ended in September of 2018, when law enforcement arrested him and raided the apartment he was using as his base of drug distribution in Somerset, finding nearly 50 grams of heroin and over $5,000 in drug proceeds.

Several of Ushery’s co-conspirators have also been sentenced in connection with their heroin trafficking activities, including Chad Puchalski (sentenced to 180 months), Sonie Meatchem, Jr. (sentenced to 70 months), Diana Chiree Sullivan (47 months), Samantha Pointer (39 months), Kimberly Ann Sweeten (33 months), and Tyler Hargis (20 months).        

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

“Combatting the trafficking of dangerous drugs, particularly heroin, is a fundamental priority for our Office,” said United States Attorney Robert M. Duncan, Jr. “The defendant’s transportation and distribution of significant quantities of heroin adversely impacted the lives of many in the Pulaski County area.  I commend the work of the federal, state, and local law enforcement agencies involved in helping hold this defendant, and his co-defendants, accountable for their actions.”

 

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge of the DEA; Sheriff Greg Speck, Pulaski County Sheriff’s Office; Chief Tony Duncan, Somerset Police Department; Director Wayne Conn, Lake Cumberland Drug Task Force; Commissioner Richard Sanders, Kentucky State Police; and Chief Brian Carter, Mt. Vernon Police Department, collectively announced the sentence.

The investigation was conducted by the DEA, the Pulaski County Sheriff’s Office, the Somerset Police Department, the Kentucky State Police, the Lake Cumberland Drug Task Force, and the Mount Vernon Police Department. The United States was represented by Assistant U.S. Attorney Andrew H. Trimble.

— END —

LEXINGTON, Ky. – Harvey O. Isaac, 30, of Lexington was sentenced to 10 years in federal prison for the distribution of fentanyl that caused the overdose death of another by US District Court Judge Danny C. Reeves.

On April 12, 2017, Isaac and Shannon Hixon, 43, of Detroit, distributed a quantity of fentanyl to an individual identified as K.F., a U.S. Army veteran, who used the fentanyl and died as a result. The Lexington Police Department opened an investigation into the death that ultimately led to charges being placed against Isaac and Hixon. 

Isaac was also sentenced to five years supervised release after his 10 years in prison.

On July 25, 2019, Hixon was found guilty, after a four day jury trial, of the distribution of fentanyl resulting in the overdose death of K.F., as well as conspiring to distribute oxycodone and fentanyl. Hixon is awaiting sentencing on December 6 before Chief Judge Reeves. Hixon faces a minimum of 20 years imprisonment, up to a maximum of life in prison.    

 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 Lawrence Weathers, Lexington Police Department jointly announced Isaac’s sentencing.

The investigation was conducted by the DEA and the Lexington Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Roger W. West and Assistant United States Attorney Todd Bradbury. 

— END —

 

The former treasurer of Jackson County, Kentucky, was sentenced today to 45 months in prison followed by three years of supervised release.

U.S. District Judge Claria Horn Boom sentenced Beth N. Sallee, 39, of McKee, Kentucky, in the U.S. District Court for the Eastern District of Kentucky.  Sallee was also ordered to pay $161,808.23 in restitution for devising a multi-year scheme to defraud the Jackson County Fiscal Court of over $160,000 and for misusing the identity of a Jackson County employee to facilitate her theft.    

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, United States Attorney Robert M. Duncan of the Eastern District of Kentucky, Special Agent in Charge James Robert Brown Jr. of the FBI’s Louisville Field Division and Richard Sanders, Commissioner of the Kentucky State Police, made the announcement.  

Sallee pleaded guilty on Feb. 4, 2019, to one count of wire fraud and one count of aggravated identity theft.  As part of her plea, Sallee admitted that beginning in 2013, she misused her position to write a number of checks, totaling approximately $161,808.23, payable to herself without the approval of the Jackson County Fiscal Court.  Sallee proceeded to either deposit these checks into her personal checking account or exchange these checks for cash.  The unauthorized checks drew on various Jackson County Fiscal Court accounts, including the Department of Emergency Services grant, payroll and general fund accounts.

To enable her scheme, Sallee forged the signature of other Jackson County employees on unauthorized checks without their knowledge or permission.  She later attempted to conceal her scheme by removing pages of Jackson County financial documents, obscuring page numbers with Wite-Out and requesting the deletion of check images from bank statements that were to be given to an auditor. 

The FBI and the Kentucky State Police conducted the investigation.  Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Andrew T. Boone of the Eastern District of Kentucky prosecuted the case.

 

LONDON, Ky.—The former treasurer of Jackson County, Kentucky, was sentenced today to45 months in prison followed by three years of supervised release and ordered to pay $161,808.23 in restitution for devising a multi-year scheme to defraud the Jackson County Fiscal Court of over $160,000 and for misusing the identity of a Jackson County employee to facilitate her theft.

Beth N. Sallee, 39, of McKee, Kentucky, was sentenced in the U.S. District Court for the Eastern District of Kentucky by U.S. District Judge Claria Horn Boom. Sallee pleaded guilty on Feb. 4, 2019, to one count of wire fraud and to one count of aggravated identity theft. As part of her plea, Sallee admitted that beginning in 2013, she misused her position to write a number of checks, totaling approximately $161,808.23, payable to herself without the approval of the Jackson County Fiscal Court. Sallee deposited these checks into her own personal checking account or for cash.  The unauthorized checks drew on various Jackson County Fiscal Court accounts, including the Department of Emergency Services grant, payroll, and general fund accounts. 

According to the plea agreement, in order to enable her scheme, Sallee forged the signature of other Jackson County employees on unauthorized checks without their knowledge or permission. She later attempted to conceal her scheme by removing pages of Jackson County financial documents, obscuring page numbers with white-out, and requesting the removal of check images from bank statements that were to be given to an auditor. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, United States Attorney Robert M. Duncan, Jr., for the Eastern District of Kentucky, and Special Agent in Charge James Robert Brown, Jr. of the FBI’s Louisville, Kentucky Field Division and Richard W. Sanders, Commissioner of the Kentucky State Police, made the announcement.  

“This case presents another example of a selfish and corrupt official, who stole taxpayer money and spent it on herself,” said United States Attorney Duncan. “Disgraceful conduct like this erodes the public’s faith in government institutions and causes lasting damage. Combatting these betrayals of trust is critical, both to holding people accountable and to repairing the public’s faith.  Prosecuting public corruption will remain a fundamental priority for our Office.”       

The investigation was conducted by the FBI and the Kentucky State Police. Trial Attorney Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Andrew T. Boone of the Eastern District of Kentucky prosecuted the case.                                                    

# # #

LEXINGTON, Ky. – Wayne Russell Fugate, 49, of Lexington was sentenced on Monday, by Chief United States District Judge Danny C. Reeves, to 97 months in federal prison for buying and selling stolen firearms and for being a convicted felon in possession of over 25 stolen firearms.

Beginning in 2017, the eastern Kentucky area, as well as areas in Tennessee and Ohio, experienced a number of vehicle break-ins where firearms were stolen. A law enforcement task force led to the arrest of Dario Adrian Mauriz-Cruz, 27, and Jeremy D. Stidham, 27, as suspects in these break-ins. The investigation determined that Fugate acted as a “fence” for Stidham and Cruz, buying stolen firearms from them.

According to Fugate’s plea agreement, investigators executed a search warrant at his residence in Lexington, in November 2017. There, they located 22 stolen firearms and over 2,000 rounds of ammunition. Further investigation recovered six more stolen firearms purchased by Fugate. Fugate admitted to selling firearms to at least 11 others. Fugate had a prior federal felony conviction for being an unlawful user of controlled substances in possession of firearms. 

Both Stidham and Cruz pleaded guilty to federal firearms charges, in August 2019.  Cruz, also a convicted felon, was sentenced to ten years in prison for his role in stealing the firearms. Stidham was sentenced to 100 months.   

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for ATF Louisville Field Division; Richard W. Sanders, KSP Commissioner; Chief Lawrence Weathers, Lexington Police Department; Michael Helmig, Boone County Sheriff; Matt Sparks, Rowan County Sheriff; Ernie Kelty, Mercer County Sheriff; and Mike Coyle, Madison County Sheriff, collectively announced the sentencing.

The investigation was conducted by the ATF, Boone County Sheriff’s Office, the Kentucky State Police, Lexington Police Department, Madison County Sheriff’s Office, Mercer County Sheriff’s Office, and Rowan County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Roger W. West. 

— END —

LEXINGTON, Ky. —Mikhy Farrera-Brochez, a 34-year-old man originally from Winchester, Kentucky, was sentenced to 24 months in federal prison Friday, by United States Chief District Judge Danny C. Reeves, for sending extortionate communications to the Government of Singapore and its Ministry of Health and using the means of identification of over 14,200 people as leverage in his extortion attempt.

According to trial testimony, Farrera-Brochez obtained access to a database belonging to the Singaporean Ministry of Health that listed the private identifying and medical information of thousands of people in Singapore living with HIV, including more than 50 U.S. citizens. Farrera-Brochez sent the database to his mother in Kentucky, and retrieved it when he returned to Kentucky in 2018.

On January 22, Farrera-Brochez sent an email to several officials of the Government of Singapore that included three links to places on the internet where he had put copies of the database. Farrera-Brochez made several demands in that email. On February 18, Farrera-Brochez sent a second email to officials of the Government of Singapore threatening to publish the database if his demands were not met.

Farrera-Brochez was convicted on June 4. In addition to the sentencing, Farrera-Brochez was also ordered to forfeit to the federal government the electronic devices and Google accounts that he used in his crimes. Upon release from prison, Farrera-Brochez will be on supervised release for 3 years.                                    

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge of the FBI, jointly made the announcement.

“The defendant’s conduct was serious and significant, affecting thousands of people across the world,” said United States Attorney Robert M. Duncan, Jr. “The defendant unlawfully obtained the private, personal identifying information of more than 14,000 people, including American citizens, and used this information in an attempt to extort the government of a foreign nation.  Without the hard work of law enforcement personnel, the defendant could have caused significant additional harm, by publishing this personal and private information.” 

The investigation was conducted by the FBI with assistance from the Kentucky State Police. The United States was represented by Assistant United States Attorney Dmitriy Slavin and Special Assistant United States Attorney James Chapman.

— END —

LEXINGTON, Ky. – Ronald Mark Harrison, 49, of Lexington, Kentucky, was sentenced to 33 months in federal prison on Friday, by United States District Judge Danny C. Reeves, for acquiring firearms through the making of false statements.

In June 2017 and February 2018, Harrison purchased several firearms from Bud’s Gun Shop in Lexington. During the purchases, Harrison provided false information to the store claiming to be the true purchaser of these firearms when, in fact, he was obtaining the firearms on behalf of a co-defendant, Lawrence Westbrook III, a convicted felon. These types of transactions are commonly known as “straw purchases” and are prohibited under federal law. Harrison previously pled guilty to two counts involving the acquisition of these firearms. As part of his plea, Harrison further admitted to obtaining other firearms and later trading them to Westbrook in exchange for narcotics.

On August 23, Westbrook pled guilty to charges involving the possession of methamphetamine with the intent to distribute, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Westbrook is set to be sentenced on December 13. He faces up to life in prison and a maximum fine of $5 million. However, any sentence will be imposed by the Court after consideration of the United States Sentencing Guidelines and applicable federal sentencing statutes.

Under federal law, Harrison 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 3 years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Stuart L. Lowery, 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.

– END –

 

 

 

COVINGTON, Ky. – A Newport, Kentucky, man was sentenced in federal court on Thursday, by U.S. District Judge David L. Bunning, to five years of probation and 30 days of intermittent confinement for committing Social Security fraud.

According to his guilty plea, from July 2013 through April 2018, Robert Howard, 57, defrauded the Social Security Administration by continuing to fraudulently receive his father’s Title II Social Security benefits, after his father’s death, and knowingly concealing his father’s death from the SSA.  Howard admitted to calling the Florence, Ky., SSA office and impersonating his deceased father, in an attempt to ensure wrongful continuation of monthly payments.  The total amount that Howard fraudulently received from the SSA was $82,565.10.  As part of the sentence, the district court ordered Howard to repay this amount in restitution.

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, Atlanta Field Division, 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.

 

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LEXINGTON, Ky. – United States Attorney Robert Duncan will have press availability in Lexington on Friday, Sept. 27, 2019 at 3 p.m., along with Robert Brown, Jr., Special Agent in Charge of the FBI to discuss a sentencing.

Where:         U.S. Attorney's Office

Eastern District of Kentucky

260 W. Vine Street, Suite 300

Lexington, Kentucky  40507

When:          Friday, Sept. 27, 2019 at 3 p.m.

 

COVINGTON, Ky. – A Latonia, Kentucky, man who previously admitted to illegally possessing nine Social Security cards and aggravated identity theft, was sentenced today to 40 months in prison, by U.S. District Court Judge David L. Bunning

Jesse Bryant, 37, pleaded guilty to the charges in June 2019.  According to his plea agreement, at the time the identification documents were discovered in the vehicle that Bryant was driving, law enforcement also discovered stolen credit cards and equipment used to make or alter stolen identification documents.

Under federal law, Bryant must serve 85 percent of his/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, and the Yvonne DiCristoforo, Special Agent in Charge for the United States Secret Service, jointly announced the sentence.

The investigation was conducted by the United States Secret Service. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Laura K. Voorhees.

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LONDON, Ky. – Keisha Pelote, 33, of Waldorf, Maryland, was indicted on Wednesday, on one count of possession with intent to distribute buprenorphine, aka Suboxone, and one count of attempting to provide it to an inmate in a federal prison.

The Indictment alleges that Pelote possessed the drug with the intent of distributing it and attempted to introduce it into FCI Manchester.

If convicted of the drug trafficking charge, Pelote faces up to 10 years of imprisonment, a $500,000.00 fine, and at least two years of federal supervised release.  If convicted of attempting to introduce the buprenorphine into FCI Manchester, shefaces up to 20 years imprisonment, a $250,000 fine, and three years of federal supervised release.

Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, made the announcement after a federal grand jury in London returned the indictment.

Assistant United States Attorney R. Nicholas Rabold is prosecuting the case on behalf of the United States. The investigation preceding the indictment was conducted by the Bureau of Prisons, with the assistance of the Department of Homeland Security.

Pelote’s appearance before the United States District Court has not yet been set.

An indictment by a grand jury is an accusation only, and individuals charged in an indictment are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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LONDON, Ky.- Charles R. Hubbard, 56, of Pineville, Kentucky, was sentenced to 94 months in federal prison Monday, for conspiring with others to distribute an aggravated amount of methamphetamine in Harlan County and Bell County, by U.S. District Judge Robert E. Wier. 

According to Hubbard’s plea agreement, he participated in a methamphetamine distribution conspiracy from January 2018 through January 1, 2019.  Hubbard’s plea agreement further states that he worked with Crystal Leach and others to procure methamphetamine in or around Tennessee for distribution throughout both Harlan County and Bell County. On January 24, 2018, Hubbard possessed over 50 grams of methamphetamine in Harlan County. On August 24, 2018, Hubbard possessed approximately 26 grams of methamphetamine in Bell County. As part of his plea, Hubbard forfeited $930.00 in drug proceeds.       

Hubbard pleaded guilty to conspiracy to distribute 50 grams or more of a methamphetamine mixture on June 6.

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

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 Commissioner Richard W. Sanders, Kentucky State Police, jointly announced the sentence.

The investigation was conducted by the FBI London Office, KSP, Appalachian High Intensity Drug Trafficking Area (AHIDTA) Appalachian Narcotics Task Force, the Harlan County Sherriff’s Office, the Bell County Sherriff’s Office, and the Pineville Police Department.  The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed. 

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LONDON, Ky.- A Flat Lick, Kentucky man, Jerry “Rabbit” Cox, 70, admitted to drug trafficking in federal court on Monday.

Cox pled guilty to distributing a quantity of pills containing oxycodone and hydrocodone, before U.S. Magistrate Judge Hanly A. Ingram. Cox admitted to selling oxycodone 30 mg pills to an informant on April 17, 2018, from his residence in Knox County, and hydrocodone pills from his business in Knox County on April 26, 2018.                       

Cox was indicted in June 2019.

Robert M. Duncan Jr., U.S. Attorney for the Eastern District of Kentucky, Daniel Dodds, acting Special Agent in Charge, DEA Louisville Field Division, and Commissioner Richard W. Sanders, Kentucky State Police, jointly announced the guilty plea.

The investigation was conducted by the Drug Enforcement Administration and the Kentucky State Police. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jason D. Parman. 

A sentencing date has not yet been set. He faces up to 20 years in prison and a maximum fine of $1 million. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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Lexington, KY- Two Mexican Nationals, illegally residing in the U.S., and one Nicholasville, Ky., man, who previously admitted to transporting more than 100 kilograms of marijuana from Phoenix, Az., to Nicholasville, Ky., were sentenced on Thursday.

 U.S. District Court Judge Karen Caldwell sentenced, Fabian Zavala-Romero, 42, Jonathan Mendoza-Ricardo, 30, and Jesus Sabino Castro-Quinones, 38, to 68 months, 68 months, and 60 months respectively. Another defendant involved in the case, Fabian Noperi, 35, is scheduled for sentencing in October.

 According to plea agreements, Zavala, Castro, Noperi, and Mendoza, admitted that they conspired to transport marijuana from Phoenix to Nicholasville for the purpose of distributing the marijuana in Kentucky. The amount of marijuana they intended to distribute was more than 100 kilograms.

Under federal law, Zavala, Castro, and Mendoza must serve 85 percent of their prison sentence and will be under the supervision of the U.S. Probation Office for 4 years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Steven L. Igyarto, Resident Agent in Charge for Homeland Security Investigations, and Todd Justice, Chief of Police for Nicholasville Police Department, jointly announced the sentence.

The investigation was conducted by Homeland Security Investigations and the Nicholasville Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Lauren Tanner Bradley.

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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FRANKFORT, Ky. – On Tuesday, Joshua Bybee, 23, of Frankfort, Kentucky, was sentenced to 18 months in federal prison by United States District Judge Gregory F. Van Tatenhove for making a false statement in the acquisition of a firearm.

Bybee had previously pleaded guilty to one count involving the making of a false statement during the purchase of a firearm. On January 14, 2019, Bybee entered Dan’s Discount Jewelry and Pawn in Frankfort, a federally licensed firearms dealer, and attempted to purchase a 9mm pistol. In his attempt, Bybee represented that he was not legally prohibited from purchasing or possessing a firearm when, in fact, he was subject to two separate domestic violence orders from two different individuals. Both domestic violence orders restrained Bybee from harassing, stalking, or threatening individuals covered under the order. Additionally, both orders prohibited the Bybee from possessing a firearm while each order was in effect. Federal law prohibits the possession of firearms by persons subject to domestic violence orders.  The business declined to sell the firearm to Bybee after a background check revealed the domestic violence orders.

Bybee must serve 85 percent of his 18 month 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 making of false statements in an attempt to obtain a firearm is a serious felony offense, especially when the person is prohibited for possessing firearms by domestic violence orders,” said United States Attorney Robert M. Duncan, Jr. “The defendant attempted to conceal the existence of his domestic violence orders by misrepresenting his status to the federally licensed firearms dealer.  Fortunately, the background check worked; it prevented the sale, kept the firearm out of the hands of a an individual already subject to two court orders due to violence, and helped prevent a more dangerous situation.”       

The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Tommy Estevan, Acting Special Agent in Charge, ATF, Louisville Field Division, 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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London, KY- Shiloh Adams, 34, of Jeremiah, Ky., and Mitchell Adams, 35, of Whitesburg, Ky., were sentenced Tuesday, to 150 months in prison and 94 months in prison respectively, by United States District Judge Claria Horn Boom, for drug trafficking and possession of a firearm in furtherance of drug trafficking.

According to their plea agreements, in November 2018, the Adams’ traveled from Letcher County, Ky., to Louisville, Ky., to purchase methamphetamine for purposes of distribution in the Eastern District of Kentucky. Law enforcement stopped the Adams’ vehicle on the return trip to Letcher County.  During a search of the vehicle, officers found over 50 grams of methamphetamine a .540 caliber pistol, and $10,249 in cash.

Shiloh Adams pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking. Mitchell Adams pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine.

Under federal law, the Defendants must serve 85 percent of their prison sentence. Shiloh Adams and Mitchell Adams will be under the supervision of the U.S. Probation Office for six years and five years respectively.

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

 The investigation was conducted by the Louisville Police Department and the ATF’s Ashland Office. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna Reed.  

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Ft. Mitchell, Ky. – An Independence man was convicted late Thursday, by a federal jury sitting in Covington, of distributing child pornography.

The jury convicted Michael Clark, 49, after four hours of deliberations, following a four-day trial.

According to the evidence at trial, Clark distributed child pornography, on five different occasions, to a law enforcement officer via BitTorrent, which is a peer-to-peer file-sharing network. A search warrant was executed at Clark’s residence in April 2018. A computer was seized and a forensic examination revealed evidence of the child pornography. 

Clark was indicted in in November 2018. 

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Andy Beshear, Kentucky Attorney General, Steven L. Igyarto, Resident Agent in Charge for Homeland Security Investigations, and Michael “Spike” Jones, Sheriff of Kenton County Police Department, jointly announced the jury’s verdict.

The investigation was conducted by the Kenton County Police Department, the Kentucky Office of Attorney General, and Homeland Security Investigations. The United States was represented in the case by Assistant U.S. Attorney Elaine K. Leonhard. 

Clark will appear for sentencing, before U.S. District Judge David L. Bunning, on January 3, 2020. He faces a maximum of 20 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing the sentence.

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A federal jury in Kentucky found two men guilty of conspiring to use more than $206,670 of corporate funds to make contributions to the campaign of a candidate for United States Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC). 

Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky and Special Agent in Charge James Robert Brown Jr. of the FBI’s Louisville Field Office made the announcement.

Following a five-week trial, the jury convicted Gerald G. Lundergan of Lexington, Kentucky, of one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction.  The jury convicted Dale C. Emmons of Richmond, Kentucky, of one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements and two counts of causing the falsification of documents with the intent to obstruct and impede. 

According to the evidence presented at trial, Lundergan used the funds of S.R. Holding Company Inc. (S.R. Holding), a company he owned, to pay for services provided by consultants and vendors to a campaign for a United States Senate seat in the 2014 election cycle.  The candidate for this seat was Lundergan’s daughter, Alison Lundergan Grimes.  The evidence established that Lundergan caused the issuance of a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls and campaign consulting, between July 2013 and December 2015. 

The corporate contributions also included monthly payments from S.R. Holding to Emmons and his company during this period.  Emmons provided services to the campaign and sought and received compensation from Lundergan and S.R. Holding.   Emmons also used the funds of his corporation, Emmons & Company Inc., to pay other vendors and a campaign worker for services rendered to the campaign.  Those services included recorded telephone calls, technological support services, and other campaign-related expenses. 

The evidence established that Lundergan and Emmons concealed these activities from other officials associated with the campaign.  Their concealments caused the campaign unwittingly to file false reports with the FEC because the reports failed to disclose the source and amount of the corporate contributions. 

Deputy Chief Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith are prosecuting the case.  

 

FRANKFORT, Ky. – A federal jury sitting in Frankfort found Gerald G. Lundergan, of Lexington, Ky., and Dale C. Emmons, of Richmond, Ky., guilty of conspiring to use more than $206,670 of corporate funds to make contributions to the campaign of a candidate for United States Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC). 

Brian A. Benczkowski, Assistant Attorney General of the Department of Justice’s Criminal Division; Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; and James Robert Brown, Jr., Special Agent in Charge of the Federal Bureau of Investigation’s Louisville Field Office, made the announcement.

After two hours of deliberations following a five-week trial, the jury convicted Lundergan of one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC, and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction.  The jury convicted Emmons of one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements, and two counts of causing the falsification of documents with the intent to obstruct and impede. 

According to the evidence presented at trial, Lundergan used the funds of S.R. Holding Company, Inc. (S.R. Holding), a company he owned, to pay for services provided by consultants and vendors to a campaign for a United States Senate seat in the 2014 election cycle.  The candidate for this seat was Lundergan’s daughter, Alison Lundergan Grimes.  The evidence established that Lundergan caused the issuance of a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls, and campaign consulting, between July 2013 and December 2015. 

The corporate contributions also included monthly payments from S.R. Holding to Emmons and his company during this period.  Emmons provided services to the campaign and sought and received compensation from Lundergan and S.R. Holding.   Emmons also used the funds of his corporation, Emmons & Company, Inc., to pay other vendors and a campaign worker for services rendered to the campaign.  Those services included recorded telephone calls, technological support services, and other campaign-related expenses. 

“The jury’s verdict reinforces the fundamental principle that rules apply to everyone,” said United States Attorney Robert M. Duncan, Jr.  “The defendants' actions were deliberately designed to evade reporting requirements that serve to protect the integrity and transparency of federal elections.  Stated simply, they knew what they were doing was wrong. This prosecution would not have been possible without the dedicated work of the trial team and all our law enforcement partners.” 

The evidence established that Lundergan and Emmons concealed these activities from other officials associated with the campaign.  Their concealments caused the campaign unwittingly to file false reports with the FEC because the reports failed to disclose the source and amount of the corporate contributions. 

“Fairly and honestly selecting our country's leaders is at the very foundation of our democracy, and the integrity of the system must be protected,” said James R. Brown, Jr., Special Agent in Charge Louisville Field Office. “Today's conviction should serve notice that FBI Louisville and the U.S. Attorney's Office are fully committed to investigating and prosecuting those who wish to corrupt the election process.”   

The United States was represented by Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith and Deputy Chief Robert J. Heberle of the Criminal Division’s Public Integrity Section.

Lundergan and Emmons will appear for sentencing on January 22, 2020.  They each face up to 5 years in prison for the conspiracy conviction, each corporate campaign contribution conviction, and each false statement conviction; up to 20 years in prison for each obstruction conviction; and a maximum fine of $250,000 per conviction.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing the sentences. 

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LEXINGTON, Ky.—Edward J. Anderson, IV, 32, of Richmond, was sentenced Thursday to 130 months in federal prison, by United States District Judge Karen K. Caldwell, for possession with intent to distribute fentanyl and methamphetamine and possession of a firearm in furtherance of drug trafficking.

In September 2018, officers with the Madison County HIDTA Task Force, arrested Anderson outside his home in Madison County. During a search officers located approximately 8 ounces of fentanyl, approximately 24 ounces of methamphetamine, and a stolen 9mm handgun. During his plea, Anderson admitted the firearm possessed in furtherance of drug trafficking.

Under federal law, Anderson must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.

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

The ATF, Madison County HIDTA task force, and the Richmond Police Department conducted the investigation. 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.

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LONDON, Ky. – A Somerset, Ky., man was found guilty yesterday, by a federal jury sitting in London, of conspiring with co-conspirator Jason T. Castenir to run a complex and long-running Ponzi scheme.  During the scheme, they defrauded dozens of victims out of over $2.2 million, through three fake investments.

After a brief deliberation following an eight-day trial, the jury convicted 58-year-old Rodney Scott Phelps of one count of conspiracy to commit wire fraud and 12 additional counts of wire fraud.

According to the evidence presented at trial, Rodney Scott Phelps and Jason Castenir created Maverick Asset Management LLC (“MAM”) in 2012, as a private-equity firm.  Beginning around this time, and continuing until late 2014, Castenir and Phelps convinced a number of investors from across the country, including in Washington State, Ohio, Arizona, and Nevada, to invest in an opportunity to obtain an oil concession from the government of Belize.  They boasted of vast experience in successful oil exploration ventures and promised investors royalties on any oil extracted and a considerable interest rate on their investment, all of which was to be backed by Phelps’s multi-million dollar trust, in the name of Phelps Family Trust.  Investors raised hundreds of thousands of dollars for this investment, wiring those funds to MAM in Kentucky.  Evidence at trial revealed that Phelps and Castenir had little experience with successful oil ventures; there was no sizeable Phelps Family Trust; and they used the money they raised for MAM operating expenses, to pay themselves, and to make Ponzi payments back to other victim-investors. 

In a related scheme, Phelps convinced three victims from Tennessee to invest roughly $1.2 million with MAM to trade on various commodities markets, again boasting of MAM’s vast experience successfully trading on these markets, including with funds from the Phelps Family Trust, and convincing victims that the Phelps Family Trust backed their investment.  Phelps and Castenir invested roughly one-third of this money on commodities markets, losing almost all of it in short measure, but sent victims accounting statements detailing profits on their investments.  Phelps and Castenir spent the rest of the money on MAM operating expenses, personal profit, and Ponzi payments to other victim-investors.

In a third scheme, Phelps convinced two victims from Tennessee to pay $1 million to an escrow account earmarked for initiating the purchase of a casino in Tunica, Mississippi.  Phelps had committed to likewise pay $1 million from the Phelps Family Trust to match the victim investment, but never did.  Instead, Phelps and Castenir took this money from the escrow account to pay MAM operating expenses, invest on commodities and stock markets, personally profit, and for Ponzi payments to other victim-investors.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown Special Agent in Charge of the Federal Bureau of Investigation-Louisville Division, jointly announced the verdict.  The investigation was conducted by the Federal Bureau of Investigation, with assistance from the Commodities and Futures Trading Commission and the Internal Revenue Service-Criminal Investigation.  The United States was represented by Assistant United States Attorneys Kathryn M. Anderson and Kenneth R. Taylor.

Phelps will appear for sentencing on December 3, 2019.  He faces a maximum of 20 years in prison.  Castenir had previously pleaded guilty for his role in these offenses, and others, on August 18, 2017.  His sentencing is scheduled for September 24, 2019, and he likewise faces a maximum of 20 years in prison.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing the sentences. 

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LEXINGTON, Ky. – Warren Griffin, II, 50, of Lancaster, was sentenced to 60 months in federal prison Wednesday by United States District Judge Karen K. Caldwell for taking part in a $15 million employment tax fraud scheme.

Griffin will begin serving his new sentence after he finishes a 37-month term, from a 2018 conviction in the Southern District of Illinois, for being a felon in possession of a firearm.  He must also pay the Internal Revenue Service (IRS) $2.8 million in restitution.  Upon release from prison, Griffin will be on supervised release for three years.

According to his plea agreement, Griffin recruited and paid associates to open staffing companies and bank accounts, whose primary purpose was to hide from the IRS the fact that businesses run by Griffin and his co-defendant, Clarence Michel, Jr., had failed to pay $14,671,184 in owed federal payroll taxes.  Griffin obtained $2,118,584 of that money.  During this time, Griffin also underpaid his personal federal income taxes by $700,428.

Michel had previously pleaded guilty and been sentenced to 71 months in federal prison and ordered to pay over $19 million in restitution.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and William Chung, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, jointly announced the sentence. 

The investigation was conducted by the Internal Revenue Service-Criminal Investigation.  The United States was represented by Assistant U.S. Attorney Dmitriy Slavin.

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PIKEVILLE, Ky.— Jackson Noel, a pharmacist operating Buffalo Drug Inc., in Buffalo WV., was found guilty on Tuesday of conspiring to dispense and distribute oxycodone and oxymorphone.

Proof at trial established that as part of the conspiracy Noel unlawfully dispensed oxycodone and oxymorphone pills from the pharmacy to out-of-state customers, including customers from Kentucky.  Noel dispensed the pills on a cash only basis.        

According to the indictment, Noel began conspiring and distributing the drugs in June 2015 through December 2016 in Pike County, the Eastern District of Kentucky, and elsewhere.

Noel will be sentenced in December 2019 and faces up to 20 years in prison, as well as a $1 million fine and at least three years of supervision after release.

“The defendant’s unlawful dispensing of powerful opioid pills contributed to the crisis currently affecting the Appalachian region, and our District, specifically,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The jury’s verdict ensures that the defendant will be held accountable for his actions. I commend the efforts of the various law enforcement and regulatory agencies who played a role in this investigation.”    

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge of the DEA; and Richard W. Sanders, Commissioner, Kentucky State Police jointly announced the jury’s verdict.

The investigation was conducted by the DEA, KSP, Kentucky Office of the Attorney General, the Putnam County, West Virginia, Sheriff’s Office, and the West Virginia Board of Pharmacy. The United States was represented by Assistant U.S. Attorney Sam Dotson.

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