Eastern District of Kentucky
Press releases recorded for this federal judicial district.
London Man Sentenced to 248 Months for Trafficking in Methamphetamine and Firearms chargesRead the Press Release
LONDON, Ky., — Bobby Green, 42 of London, was sentenced this week to 248 months in prison, by United States District Court Judge Gregory F. Van Tatenhove, for conspiracy to distribute methamphetamine, four counts of possession with the intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking offense, and possession of a firearm by a convicted felon.
Green had previously pled guilty to the drug offenses, but went to trial on the firearms charges. Following a 2-day trial, a federal jury sitting in London found Green guilty of the firearms offenses, in August of 2018.
Under federal law, Green must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowery, Special Agent in Charge, ATF;, and Richard Sanders, Commissioner of the Kentucky State Police, jointly made the announcement.
The investigation was conducted by the ATF and the KSP. The United States was represented by Assistant United States Attorney W. Samuel Dotson.
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 Attorney General 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, local strategies to reduce violent crime.
London Man Sentenced to 210 Months for Conspiracy to Distribute Oxycodone and OxymorphoneRead the Press Release
LONDON, Ky. — David Lee Davis, 47 of Williamsburg, Ky., was sentenced this week, to 210 months in federal prison, by United States District Court Judge Gregory F. Van Tatenhove, for conspiracy to distribute oxycodone and oxymorphone.
Davis previously admitted that he had obtained controlled substances by purchasing other people’s prescriptions, and then selling the pills. A search warrant executed in Whitley County, Kentucky uncovered a digital video recorder. The recorder revealed that approximately 100 drug transactions had occurred from within the residence. Davis was a participant in several of those transactions and pled guilty to the charge in July of 2018. Davis has multiple prior drug trafficking convictions.
Under federal law, Davis 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 six years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and D. Christopher Evans, Special Agent in Charge, Drug Enforcement Administration, jointly made the announcement.
The investigation was conducted by the DEA. The United States was represented by Assistant United States Attorney Jason D. Parman.
Flatwoods Woman Sentenced to 24 months for Conspiracy to Distribute FentanylRead the Press Release
ASHLAND, Ky. — Haley Nicole Young, 25, of Flatwoods, Kentucky, was sentenced today, to 24 months federal in prison, by United States District Judge David L. Bunning, for conspiracy to distribute fentanyl.
In April 2017, Young was arrested in Ashland, and was found in possession of 209 grams of fentanyl. Young admitted to the transportation of the fentanyl from Detroit, Michigan. The recovered fentanyl was to be distributed in Kentucky and West Virginia. Fentanyl is an extremely powerful opioid, which can be lethal in the two-milligram range.
Under federal law, Young must serve 85 percent of her prison sentence; and upon her release, she will be under the supervision of the United States Probation Office for four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, FBI; Richard Sanders, Commissioner of the Kentucky State Police; Todd Kelley, Chief of the Ashland Police; and Hank Dail, Chief of the Huntington Police, jointly announced the sentence.
The investigation was conducted by the FBI, Kentucky State Police, the Ashland Police Department, and the Huntington Police Department. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
Former Central Kentucky Businessman Sentenced to 36 Months for the Illegal Transportation and Storage of Hazardous WasteRead the Press Release
LEXINGTON, Ky. – A former Central Kentucky businessman, who currently resides in Austin, Texas, was sentenced in U.S. District Court today. Kenneth Gravitt, 63, was sentenced, to 36 months, by Chief U.S. District Judge Karen Caldwell, on convictions relating to the illegal storage, transportation and disposal of hazardous waste.
In May of this year, Gravitt pleaded guilty to one count of conspiracy to commit crimes related to the handling of hazardous waste and one count of illegal storage of hazardous waste. The hazardous waste in this case consisted of old television and computer monitors that contained Cathode Ray Tubes (CRTs), which have large amounts of toxic lead. For a number of years, Gravitt operated Global Environmental Services (GES), in Georgetown, Kentucky, which was in the business of recycling electronic waste. The facts established that beginning around 2013, GES contracted with various businesses and entities to collect and recycle large numbers of devices containing CRTs. Over time, as GES took in far more of these electronic devices than it could process, it began to send crushed CRTs for disposal, to a Central Kentucky landfill that did not have a license to handle such materials. On a separate occasion in October 2015, GES illegally buried large quantities of CRT bearing devices behind its Georgetown facility. Investigators also found large numbers of CRTs in GES managed warehouses in Cynthiana and Winchester. The estimated costs to clean all the sites was several million dollars.
“The illegal disposal of hazardous waste endangers us all,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We have these prohibitions for a reason: they protect the environment, public health, public funds, and the safety of people in our community. When people endanger the community merely to serve their own interests, that conduct simply has to be prosecuted.”
"The defendant in this case put human health and the environment at risk by improperly storing and disposing of hazardous wastes," said Special Agent in Charge Andy Castro of EPA's criminal enforcement program in Kentucky. "This case shows that companies and their top executives who knowingly violate hazardous waste laws will be prosecuted."
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Andy Castro, Special Agent in Charge, Environmental Protection Agency’s Criminal Enforcement Program for Kentucky; and Jon Maybriar, Director, Kentucky Department of Environmental Protection, Division of Waste Management, jointly made the announcement. The investigation was conducted by the Office of Inspector General of the United States Environmental Protection Agency and the Kentucky Department of Environmental Protection, Division of Waste Management. The case was prosecuted by Assistant United States Attorneys Ken Taylor and Erin Roth.
Cincinnati Man Sentenced to 342 Months for Conspiring to Distribute Heroin and Crack CocaineRead the Press Release
COVINGTON, Ky. – Ronald Crittenden, 66, of Cincinnati, was sentenced today to 342 months in federal prison, by United States District Judge David L. Bunning, for conspiring to distribute heroin and crack cocaine. Crittenden was also sentenced to 10 years of supervised release, to be served after completion of his prison term.
Crittenden was convicted of conspiring with others to distribute over 1.4 kilograms of heroin and over 5.8 kilograms of crack cocaine, in 2016 and 2017. He directed the actions of multiple addicted women, who worked as prostitutes and drug couriers for his benefit. Crittenden supplied these addicts with heroin and cocaine, each day, to ensure their continued compliance. Agents seized ten firearms from his residence during the execution of a search warrant. Court documents showed that Crittenden had been convicted of felony drug trafficking offenses on three prior occasions.
Crittenden was indicted in November 2017, along with other members of the conspiracy. All entered guilty pleas. Tiffany Glass was sentenced to 42 months in prison; Kenneth Eva was sentenced to 21 months in prison; and a third Defendant, Susan Page, is set for sentencing on December 20, 2018. Under federal law, each Defendant must serve at least 85 percent of their prison sentence.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly made the announcement. The investigation was conducted by the Drug Enforcement Administration, the Cincinnati Police Department, and the Elsmere Police Department. The United States was represented by Assistant United States Attorney Tony Bracke.
Cincinnati Man Sentenced to Life in Prison for Causing a Fatal OverdoseRead the Press Release
COVINGTON, Ky. – Johnny L. Shelton, 41, of Cincinnati, was sentenced today to life in prison, by United States District Judge David L. Bunning, for conspiring to distribute carfentanil resulting in death.
Shelton was convicted in June 2018, following a five-day jury trial. According to testimony at trial, Shelton led a conspiracy to smuggle carfentanil, an extremely powerful opioid, into the Boone County Jail Work Camp, on or about October 15, 2016. Evidence revealed that Timothy Marcum, a fellow inmate, consumed some of the carfentanil and died. Jailers found Marcum’s body, in the work camp, during the early morning hours of October 16, 2016.
Under federal law, Shelton will not be eligible for release from prison. The life sentence was mandated because Shelton’s conduct caused death and he had a prior conviction for drug trafficking. Court documents showed that Shelton was convicted of felony drug trafficking offenses on five prior occasions in Ohio. Other members of the conspiracy have been previously sentenced. Chad Prodoehl was tried, convicted, and sentenced to 300 months in prison, in May 2018. Gordon Wanser pled guilty and was sentenced to 43 months in prison, in July 2018.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly made the announcement. The investigation was conducted by the Drug Enforcement Administration. The United States was represented by Assistant United States Attorneys Tony Bracke and Wade Napier.
Maysville Man Sentenced to 240 Months for Drug Trafficking that Resulted in Fatal OverdoseRead the Press Release
COVINGTON, Ky. – Iseral Jordan Grayson, 24, of Maysville, Ky., was sentenced today to 240 months in federal prison, by United States District Judge David L. Bunning, for drug distribution that resulted in an overdose death.
Grayson pled guilty in March 2018 and admitted that he conspired with others to distribute controlled substances that caused the death of Jazlyn Dudley. Specifically, Grayson obtained heroin and other drugs in Cincinnati and brought it back to Maysville, Kentucky, to use and distribute on September 29, 2016. He distributed some of the drugs that evening to multiple individuals, including Jazlyn Dudley. The drugs contained heroin and fentanyl and caused Ms. Dudley to suffer a fatal overdose.
Under federal law, Grayson 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 five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly made the announcement. The investigation was conducted by the Drug Enforcement Administration. The United States was represented by Assistant United States Attorney Tony Bracke.
Paris Farmer Indicted for Crop Insurance FraudRead the Press Release
LEXINGTON, Ky. – A Paris man was indicted by a federal grand jury today, and charged with engaging in crop insurance fraud.
The grand jury, sitting in Lexington, returned a five-count indictment charging 49-year-old Keith A. Foley with four counts of making false statements to influence the Federal Crop Insurance Corporation (“FCIC”) and companies the FCIC reinsures, and one count of conspiring to commit wire fraud in the course of defrauding private insurance companies.
The indictment alleges that as early as crop year 2010, Foley, a tobacco producer in Bourbon and Jessamine Counties, hid his tobacco production from insurance companies, in order to claim damage to his crop sufficient to trigger crop insurance indemnity payments or generate larger indemnity payments, which are funded by the federal government through the FCIC. The indictment also charges Foley with conspiracy to commit wire fraud, for the purpose of profiting through the filing of false and fictitious insurance claims. The wire fraud conspiracy count alleges that Foley submitted Tobacco Test Sheets to his private insurance companies that were supposed to accurately reflect the amount of damage to his tobacco crop. Instead, according to the indictment, Foley, with the help of others, submitted Tobacco Test Sheets that were slightly altered duplicates of those submitted for other producers or that he had already submitted. Additionally, the indictment charges that Foley’s private crop insurance policy claim for crop year 2015 included a duplicated photograph submitted on another producer’s insurance claim.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Michael A. Christmas, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Division; Christopher Altemus, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Dwayne Depp, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The indictment was presented to the grand jury by Assistant U.S. Attorneys Kathryn M. Anderson and Erin M. Roth.
A date for Foley to appear in court has not yet been scheduled. For each charge of making false statements to the FCIC, Foley faces up to 30 years in prison and a fine of $1,000,000. For the conspiracy to commit wire fraud, Foley 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 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.
London Cardiologist Sentenced to 42 Months for Health Care FraudRead the Press Release
LONDON, Ky. – Yesterday, London physician Dr. Anis Chalhoub was sentenced, by U.S. District Court Judge Gregory F. Van Tatenhove, to serve 42 months in federal prison for health care fraud. In April 2018, a federal jury returned a guilty verdict, after hearing evidence that Dr. Chalhoub defrauded Medicare, Medicaid, and other insurers by implanting medically unnecessary pacemakers in his patients, and causing the unnecessary procedures and follow-up care to be billed to health insurance programs.
Between 2007 and 2011, Dr. Chalhoub implanted approximately 234 pacemakers in patients at St. Joseph London hospital. The evidence at trial showed that dozens of those patients’ pacemakers were medically unnecessary, under well-established national guidelines and Medicare coverage rules. A number of patients testified at trial that Dr. Chalhoub pressured them into getting the procedures and told them misleading information about their health conditions. For instance, several patients recalled Dr. Chalhoub telling them that they might die without a pacemaker. Sinus node dysfunction, the diagnosis Dr. Chalhoub gave the patients, is a non-fatal condition. The jury also heard evidence that Medicare, Medicaid, and other insurers suffered hundreds of thousands of dollars in losses from Dr. Chalhoub’s unnecessary procedures.
“The evidence established that the defendant violated his medical oath and placed greed over patient care,” said United States Attorney Robert M. Duncan, Jr. “The defendant performed unnecessary medical procedures and needlessly put lives at risk so that he could submit false claims seeking reimbursement for the unnecessary medical procedures. Our Office, in conjunction with our law enforcement partners, will continue to aggressively pursue medical professionals who are willing to so callously risk the health and safety of others.”
“This doctor violated his oath to do no harm,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “His reckless behavior has earned him jail time for surgically implanting pacemakers that patients did not need in order to fatten his pocket.”
In addition to his term of imprisonment, Dr. Chalhoub must pay a $50,000 fine and must also repay $257,515 to Medicare, Medicaid, and other private insurers who were financial victims of his scheme. After Dr. Chalhoub is released from prison, he will be supervised by the U.S. Probation Office for three years, and the court has prohibited him from practicing cardiology during that time.
United States Attorney Duncan; Derrick L. Jackson, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Division; and Michael A. Christman, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Division, jointly announced the sentence.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the U.S. Attorney’s Office for the Eastern District of Kentucky. Assistant United States Attorneys Andrew E. Smith and Paul C. McCaffrey represented the United States in the case.
United States Attorney Duncan Appoints District Election Officer in Support of Department of Justice Election Day ProgramRead the Press Release
Assistant U.S. Attorney Ken Taylor will serve as the District Election Officer andwill field calls from the public regarding allegations of fraud or voting rights abuses
LEXINGTON, Ky. – United States Attorney Robert M. Duncan, Jr. announced today that Assistant United States Attorney (AUSA) Ken Taylor will lead the efforts of his Office, in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018 general election. AUSA Taylor has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Kentucky; and in that capacity, he will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Duncan said, “Every citizen must be able to vote without interference or discrimination and to have their vote counted, without it being stolen or diminished because of fraud or abuse. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process, by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts of intimidation or harassment. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Duncan has confirmed that AUSA/DEO Taylor will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 859-685-4874.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. For all Kentucky based complaints, FBI personnel can be reached by the public at 1-844-596-6721 or [email protected].
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Duncan said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Justice Department's Criminal Divison Creates Appalachian Regional Prescription Opioid Strike Force to Focus on Illegal Opioid PrescriptionsRead the Press Release
LEXINGTON, Ky. - Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division today announced the formation of the Appalachian Regional Prescription Opioid Strike Force (ARPO Strike Force), a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for nine federal districts in five states, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA). The mission of the ARPO Strike Force is to identify and investigate health care fraud schemes in the Appalachian region and surrounding areas, and to effectively and efficiently prosecute medical professionals and others involved in the illegal prescription and distribution of opioids.
Assistant Attorney General Benczkowski was joined in the announcement by U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky; U.S. Attorney Russell M. Coleman for the Western District of Kentucky; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; U.S. Attorney William J. Powell for the Northern District of West Virginia; U.S. Attorney Michael B. Stuart for the Southern District of West Virginia; U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee; U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee; U.S. Attorney D. Michael Dunavant for the Western District of Tennessee; U.S. Attorney Jay E. Town for the Northern District of Alabama; Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division; Deputy Inspector General for Investigations Gary L. Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Administrator John J. Martin of the DEA Diversion Control Division.
“While the opioid epidemic continues to inflict untold pain and suffering on people across the country, the devastation in the Appalachian region and adjacent areas has been particularly staggering,” said Assistant Attorney General Benczkowski. “It is all the more reprehensible when unscrupulous physicians and pharmacies contribute to the epidemic by illegally supplying dangerous prescription painkillers. Working with our partners in U.S. Attorney’s Offices and law enforcement, the Appalachian Regional Prescription Opioid Strike Force will combat illegal prescription opioids and health care fraud by holding accountable corrupt medical professionals who seek to profit off the crisis of opioid addiction.”
“The creation of the Appalachian Regional Prescription Opioid Strike Force is consistent with the Department’s commitment to combat the opioid crisis with all available tools, said U.S. Attorney Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky. “The ARPO Strike Force prosecutors, working in partnership with Assistant United States Attorney’s in our Office and law enforcement officers in our District, will be focused on reducing access to opioids, including by investigating and prosecuting those medical professionals that unlawfully distribute opioids, putting greed over patient care and well being. We will remain diligent in the pursuit of this important mission.”
“The creation of the Appalachian Regional Prescription Opioid Strike Force will bring together critical resources from the FBI and our partners to fight health care fraud in this region and the growing opioid epidemic that faces the United States,” said FBI Assistant Director Johnson. “Healthcare fraud touches every corner of the United States, and through this strike force, the FBI will continue our tireless work to combat illegal opioid prescriptions and bring to justice those medical professionals who put their greed over the health and wellbeing of their patients.”
“The opioid epidemic has had a devastating impact on Americans across the country, including the people of the Appalachian region,” said HHS-OIG Deputy Inspector General for Investigations Cantrell. “The Strike Force model is a proven mechanism to target illicit conduct and hold accountable criminals involved in illegal opioid prescription and distribution schemes. We will continue to work closely with our federal, state, and local law enforcement partners to curb this damaging epidemic.”
“Our nation’s opioid crisis requires us to work with unprecedented urgency in attacking drug diversion at every level,” said DEA Assistant Administrator Martin. “These joint strike force efforts will save lives, while allowing us to better target and bring to justice those who facilitate addiction and profit at the expense of the weakest and most afflicted.”
Prior to this announcement, the HCF Unit operated Medicare Fraud Strike Force’s in 12 locations across the United States including Miami, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; Baton Rouge and New Orleans, Louisiana; Tampa/Orlando, Florida; Chicago, Illinois; and Dallas, Texas, along with a Corporate Strike Force located in Washington, D.C., and the Newark/Philadelphia Regional Medicare Fraud Strike Force. The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI, HHS-OIG and the DEA.
The ARPO Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the nine U.S. Attorney’s Offices in the region, and special agents with the FBI, HHS-OIG and DEA. The ARPO Strike Force will operate out of two hubs based in the Cincinnati/Northern Kentucky, and Nashville, Tennessee, areas, supporting the nine districts that make up the ARPO Strike Force region. In addition, the APRO Strike Force will work closely with other various federal law enforcement agencies, including the U.S. Postal Inspection Service and IRS Criminal Investigation, and State Medicaid Fraud Control Units.
The ARPO Strike Force will target criminal conduct associated with the improper prescription and distribution of prescription opioids and other dangerous narcotics throughout the Appalachian region and surrounding areas – focusing on criminal conduct by physicians, pharmacists, and other medical professionals. The ARPO Strike Force will also investigate and prosecute violations of health care fraud whenever such fraud is detected throughout the region.
In June, Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III noted the success of the Strike Force model while announcing the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. More information can be obtained at https://www.justice.gov/opa/documents-and-resources-june-28-2018.
In August, Assistant Attorney General Benczkowski announced the Newark/Philadelphia Medicare Fraud Strike Force, which focuses on health care fraud and illegal opioid prescriptions in the Newark/Philadelphia region.
The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the prosecutors in the 12 Medicare Fraud Strike Force locations have charged over 4,000 defendants who collectively have falsely billed the Medicare program for over $14 billion. Since January 2017, the HCF Unit has charged over 85 defendants, including 33 doctors with the illegal prescription of opioids (nearly 30 million pills).
U.S. Attorney Supports Taking Back Unused Prescription Drugs on October 27thRead the Press Release
LEXINGTON, Ky. – Robert M. Duncan, Jr., the U.S. Attorney for the Eastern District of Kentucky, announces his support and encouragement for the DEA and Lexington Police Department, in their National Prescription Drug Take Back Day, Saturday, October 27th, from 10 a.m. to 2 p.m. The DEA and local agencies will be providing the public its 16th opportunity in the past 7 years to take an easy step to help prevent pill abuse and theft, by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Bring your pills for disposal to the following site:
Lexington - Kentucky American Water, 2300 Richmond Rd.
The DEA cannot accept liquids, needles, or sharps, only pills or patches. The service is free and anonymous, no questions asked.
“I strongly support the efforts of DEA and our other law enforcement partners in reducing unlawful access to prescription drugs,” stated U.S. Attorney Duncan. “The DEA and the other agencies involved in Take Back Day provide a vital resource in fighting the opioid problem in the Commonwealth. Far too often, the path to addiction starts with experimentation with legitimately prescribed prescription opioids found in the home. By participating in Take Back Day and disposing of unused pills, you can help prevent a loved one from misusing or abusing prescription drugs.”
For more information about the disposal of prescription drugs or about the October 27th Take Back Day event, go to www.DEATakeBack.com.
Two Tennessee Men Convicted of Pharmacy Burglary and Drug TraffickingRead the Press Release
Case involved dozens of pharmacy burglaries across the Southeast and trafficking in the stolen pills
LONDON, Ky. – Two men from Grundy County, Tennessee were convicted Friday, by a federal jury sitting in London, of a conspiracy to break into pharmacies across the southeast United States and subsequently sell the stolen pills, including oxycodone and hydrocodone.
After a day-and-a-half of deliberations, following a four-day trial, the jury convicted 51-year-old James “Ronnie” Jones and 41-year-old Tony Britton of conspiracy to distribute Schedule II controlled substances. The jury also convicted Britton of the burglary of Stephanie’s Down Home Pharmacy in Corbin, on January 26, 2014.
According to testimony at trial, Jones and Britton worked with others to steal oxycodone and other pills from small, independent pharmacies through nighttime burglaries. The stolen pills would then be sold primarily in central Tennessee. The evidence revealed that the conspiracy was responsible for many dozens of burglaries across a five-year span, including several in eastern and western Kentucky.
Both Jones and Britton were indicted in November 2017.
Co-defendants Robert Nunley, 46, Christopher Land, 56, Anthony Bosio, 45, Randy Stiefel, 54, Kenneth Britton, 40, and Jamie Sweeton, 43, were also indicted and have all pleaded guilty.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Christopher Evans, Special Agent in Charge of the Drug Enforcement Administration’s Louisville Field Division; David Rausch, Director of the Tennessee Bureau of Investigation, and Clint Shrum, Sherriff of Grundy County, Tennessee, jointly announced the convictions.
The investigation was conducted by the DEA, the Tennessee Bureau of Investigation, and the Grundy County Sheriff’s Office, in partnership with several local police departments. The United States was represented in the case by Assistant U.S. Attorney Greg Rosenberg.
Jones and Britton will appear for sentencing on February 19, 2019. Jones faces a maximum of 20 years in prison and Britton faces a maximum of 40 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing the sentence.
Medical Equipment Company Agrees to Pay $5.25 Million to Resolve Allegations of Fraudulent Claims for Compounded Medical CreamsRead the Press Release
LEXINGTON, Ky. – Cooley Medical Equipment, Inc., an Eastern Kentucky medical equipment supplier headquartered in Prestonsburg, Kentucky, has agreed to pay $5,254,912 to resolve allegations that it violated the False Claims Act by submitting false or fraudulent claims that misrepresented the ingredients used in certain compounded medical creams.
Cooley previously operated a pharmacy in Prestonsburg that in 2015 began making compounded medical creams. Compounding pharmacies, like Cooley’s, prepare customized medications for individual patients, usually by mixing ingredients in order to create a prescription cream. Cooley billed these prescriptions to government insurers, including Medicare, Kentucky Medicaid, and the Department of Veterans Affairs, Veterans Health Administration (known as CHAMPVA). Cooley was required by CHAMPVA and Kentucky Medicaid to obtain their prior authorization in order to use bulk powder forms of Lidocaine and Prilocaine as ingredients in its compounded creams. Without such prior authorization, Kentucky Medicaid and CHAMPVA would not reimburse Cooley for the creams. Medicare, through its Part D program, does not cover bulk powder ingredients at all.
Rather than go through the prior authorization process, or face limited reimbursement from Medicare Part D, Cooley misrepresented the nature of its Lidocaine and Prilocaine ingredients in its claims to federal insurers, falsely stating that Cooley’s compounded medical creams were made with cream-based Lidocaine and Prilocaine ingredients, instead of the bulk powder Cooley actually used. This practice led to the submission of thousands of false claims by Cooley between January 2015 and December 2016, and millions of dollars in improper reimbursements. Cooley did voluntarily self-disclose this misconduct to the United States Attorney’s Office, took proactive steps to resolve the problem, and no longer operates a compounding pharmacy.
Under the terms of the settlement agreement, Cooley will be allowed to pay back the $5,254,912, plus interest, over a period of 6 years. Because Cooley self-disclosed the misconduct, it was able to resolve its liability for only 1.5 times the amount of monetary loss caused by its false claims; by statute, the False Claims Act typically imposes liability for 3 times the amount of loss suffered by the government. In addition, because of Cooley’s self-disclosure, the United States Department of Health and Human Services, which administers the Medicare and Medicaid programs, has agreed not to pursue any administrative action against Cooley that would exclude it from further participation in those federal programs.
“The Department of Justice, and our Office, take seriously the responsibility to aggressively pursue False Claims Act cases, as payment of false or fraudulent claims reduces the pool of money available to pay legitimate claims,” stated United States Attorney Robert M. Duncan, Jr. “Recovering false or fraudulent payments is an essential component of our Affirmative Civil Enforcement efforts and defends the financial integrity of these government programs. We will continue to prioritize these important cases.”
This settlement was a result of an investigation by the United States Attorney’s Office for the Eastern District of Kentucky and the United States Food and Drug Administration, Office of Criminal Investigation (FDA-OCI). An investigation of individuals within Cooley who were responsible for this misconduct is ongoing. Assistant United States Attorney Paul McCaffrey handled the matter for the United States. Cooley admits the allegations contained in the Settlement Agreement, but there been no judicial determination of liability.
California Man Sentenced for CyberstalkingRead the Press Release
LEXINGTON, Ky. – Jesse L. Kessler, of Fallbrook, California, was sentenced today, for using an electronic communication service to intimidate or harass another person in another state.
United States District Judge Danny C. Reeves sentenced 35-year-old Kessler to 24 months in federal prison, to be followed by six months’ community confinement. Kessler pleaded guilty, in July of 2018, to one count of cyberstalking. He admitted that after ending his relationship with his ex-girlfriend, he began sending electronic communications to her, her new boyfriend, and her father, which became increasingly frequent, threatening, and intimidating. Kessler emailed, texted, called, and otherwise electronically messaged the victim and her family and friends from a period of roughly June of 2017, until his arrest in February of 2018. Among these messages, Kessler emailed his ex-girlfriend, “You’ll both be seeing me soon but I’m not so stupid as to tell you exactly when. I’m back on the east coast so it will be much easier. For him, I’ll be the last person he ever sees. For you ... It’s you’ll be the last person I ever see.”
Under federal law, Kessler must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the United States Probation Office for three years, which includes the six months of community confinement.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Michael A. Christman, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Division, jointly announced the sentence. The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The United States was represented by Assistant U.S. Attorney Kathryn Anderson.
Stanford Man Sentenced to 30 Months for Computer Intrusion CrimesRead the Press Release
LEXINGTON, Ky. – Colton Grubbs, 21, of Stanford, Kentucky, was sentenced to 30 months in federal prison, by United States District Judge Joseph M. Hood, for conspiracy to unlawfully access computers in furtherance of a criminal act, conspiracy to commit money laundering, and the illegal removal of property to prevent its lawful seizure.
Grubbs previously admitted to designing, marketing, and selling a software, called LuminosityLink, that Grubbs knew would be used by some customers to remotely access and control their victims’ computers without the victims’ knowledge or consent. Among other malicious features, LuminosityLink allowed Grubbs’ customers to record the keys that victims pressed on their keyboards, surveil victims using their computers’ cameras and microphones, view and download the computers’ files, and steal names and passwords used to access websites. Directly and indirectly, Grubbs offered assistance to his customers on how to use LuminosityLink for unauthorized computer intrusions through posts and group chats on websites such as HackForums.net. In his plea agreement, Grubbs admitted to selling this software for $39.99 apiece to more than 6,000 customers. These customers, and their victims, were located throughout the United States and around the world.
“Our modern society is dependent on computers, mobile devices, and the use of the internet,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “People simply have to have confidence in their ability to use these modern instruments to transact their business, privately communicate, and securely maintain their information. It is essential that we vigorously prosecute those who erode that confidence and illicitly gain access to computer systems and the electronic information of others. Everyone benefits when this deceitful conduct is discovered, investigated, and prosecuted.”
“The sentence announced today would not have been possible without the cooperation of our partners in the private sector and international law enforcement, specifically the Palo Alto Networks Unit 42 and the United Kingdom’s Southwest Regional Cyber Crime Unit,” said Michael A. Christman, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Division. “The FBI is committed to strengthening these relationships and finding innovative ways to counter cybercrime. Cybercrime is worldwide epidemic, and this case is an example how strong partnerships can hold criminals accountable no matter where they are.”
Under federal law, Grubbs 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 a term of three years. In addition to his sentence of incarceration, Grubbs must also forfeit the proceeds of his crimes, including 114 bitcoin, presently valued at more than $725,000, which was seized by the Federal Bureau of Investigation.
United States Attorney Duncan and Special Agent in Charge Christman jointly made the announcement. The case was investigated by the FBI and additional assistance was provided by Palo Alto Networks Unit 42 the United Kingdom’s Southwest Regional Cyber Crime Unit.
Danville Man Found Guilty of Drug TraffickingRead the Press Release
LEXINGTON, Ky. – Carl Wayne Bartleson, Jr., 46, of Danville, Kentucky was convicted yesterday, in the U.S. District Court in Lexington, following a three-day jury trial. Bartleson was convicted on all counts, including one count of conspiracy to distribute heroin and fentanyl and four counts of distribution of heroin and fentanyl.
On February 21, 2017, three people fatally overdosed in Boyle County, Kentucky, from the use of controlled substances, including the powerful opioid fentanyl. Several others overdosed, but survived, all within a five-day period surrounding the fatalities. The spike in overdoses led the Boyle County Sheriff’s Office to work with the Drug Enforcement Administration, to determine the source of the drugs. The joint investigation led to the arrest and indictment of Bartleson, as a local supplier of heroin, fentanyl, and acrylfentanyl, a dangerous analogue of fentanyl that is even more potent. Sentencing has been set for February 14, 2019, in Lexington, before Chief United States District Judge Karen K. Caldwell. Bartleson faces a maximum sentence of 30 years in prison. The sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
“The opioid epidemic is devastating our community and we remain committed to using every tool available to combat this blight,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We will continue to prosecute those who callously and indiscriminately peddle this poison and we commend the collaboration and commitment of our law enforcement partners. Their work in this case lead to the conviction of a dangerous drug trafficker, and helped make our community safer.”
U.S. Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; and Derek Robbins, Boyle County Sheriff, jointly announced the conviction. Assistant United States Attorneys Todd Bradbury and Francisco Villalobos prosecuted the case on behalf of the United States.
Laurel County Man and Relatives Sentenced to 23 Years for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. — Michael Shane McCormick, Sr., 52, of Corbin, Kentucky, was sentenced Tuesday to 23 years in federal prison, by United States District Gregory F. Van Tatenhove, for conspiring to distribute methamphetamine, possessing a firearm in furtherance of that drug trafficking offense, and possessing a firearm as a convicted felon. McCormick, Sr.’s sentence was enhanced because his criminal history qualified him as a career offender and armed career criminal.
A man hunt for Michael Shane McCormick, Jr. led federal investigators to the residence of his father, Michael Shane McCormick, Sr., where they found over 100 grams of methamphetamine and eight loaded firearms, located strategically around the residence that McCormick, Sr. shared with his girlfriend Robin Lawson. Further investigation revealed that McCormick, Jr. and his girlfriend, Lindsey Johnson, had been importing kilogram quantities of methamphetamine from Georgia to Kentucky, to supply other drug dealers, including Joseph Money (McCormick, Sr.’s brother) and Medgitt Koontz Wood, IV. McCormick, Sr. pled guilty to the indictment.
Others conspiring with McCormick, Sr., to obtain and distribute methamphetamine, have also recently pled guilty and been sentenced, including Michael Shane McCormick, Jr. (188 months), Joseph Money (144 months), Lindsey Johnson (108 months), Medgitt Koontz Wood, IV (92 months), and Robin Lawson (46 months). Under federal law, the defendants must serve 85 percent of their prison sentences; and upon their release, they will be under the supervision of the United States Probation Office.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge of the ATF; Chris Evans, Special Agent in Charge of the DEA; and Richard Sanders, Kentucky State Police Commissioner, jointly made the announcement. The United States was represented by Assistant United States Attorney Andrew H. Trimble.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions 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.
Leader of Laurel and Whitley County Methamphetamine Trafficking Organization Sentenced to 17 YearsRead the Press Release
LONDON, Ky. — April Sizemore Bowling, 31, of Corbin, Kentucky, was sentenced Tuesday to 17 years in federal prison, by United States District Judge Robert E. Wier, for conspiring to distribute methamphetamine.
A federal investigation revealed that, for more than a year, Bowling lead a drug trafficking organization that was importing kilogram quantities of methamphetamine into the Eastern District of Kentucky, from a source of supply in Georgia. Bowling worked together with Jeffrey Cole, Jessica Flannery, and Melody LeMar to obtain, transport, and sell that methamphetamine in Laurel, Whitley, and Clay counties. The conspiracy was responsible for bringing in excess of 45 kilograms of methamphetamine from Georgia to Kentucky.
Bowling, Cole, LeMar, and Flannery pled guilty to the charges against them earlier this year. Cole was previously sentenced to 14 years in federal prison, while LeMar and Flannery were each sentenced to 38 months and 33 months, respectively. Under federal law, the defendants must serve 85 percent of their prison sentence; and upon their release, they will be under the supervision of the United States Probation Office.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Michael Christman, Special Agent in Charge of the FBI; Chris Evans, Special Agent in Charge, Drug Enforcement Administration; Derrick House, Chief of the London Police Department; and John Root, Laurel County Sheriff, jointly made the announcement. The United States was represented by Assistant United States Attorney Andrew H. Trimble.
U.S. Attorney Duncan Announces Progress in Making Communities Safer through Project Safe NeighborhoodsRead the Press Release
LEXINGTON, Ky. – One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Jeff Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven 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.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
Throughout the past year, the United States Attorney’s Office for the Eastern District of Kentucky has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make neighborhoods safer for everyone.
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. The Agencies participating in this effort include the ATF, DEA, FBI, Lexington Police Department, the Fayette County Sheriff’s Office, the Fayette County Detention Center, the Fayette County Public Schools Law Enforcement Division, the Fayette Commonwealth’s Attorney’s Office, and the United States Attorney’s Office.
“Combatting violent crime is a cornerstone priority for the Department of Justice and our Office,” said United States Attorney Robert M. Duncan, Jr. “As part of the enhanced PSN efforts, federal, state, and local law enforcement personnel are working in partnership to reduce violent crime in Lexington and throughout the Eastern District of Kentucky. These law enforcement partnerships have been effective and have resulted in innumerous violent offenders being removed from our streets, making our communities safer. While we are encouraged by the successes thus far, we recognize there is more work to be done. We are committed to continuing in this important endeavor; it truly benefits us all.”
“Local, state and federal law enforcement and prosecutors are communicating and coordinating like never before in Fayette County and we are seeing some good results,” stated Lou Anna Red Corn, Fayette Commonwealth’s Attorney.
“The partnerships fostered by the Project Safe Neighborhoods initiative, greatly enhances the total community public safety philosophy of the Lexington Police Department and the Lexington Fayette Urban County Government,” said Lawrence Weathers, Lexington Chief of Police. “Through partnering with the U.S. Attorney, the Commonwealth’s Attorney, the Fayette County Sheriff’s Department, the Fayette County Public School Police, as well as other Federal Law Enforcement agencies, concrete plans and actions have been developed that have led to effective and efficient enforcement measures which have had a direct impact on, not just violent crime, but overall crime as well.”
“Working with our law enforcement partners, ATF continues to drive the reduction of violent firearm crimes through technical expertise and by focusing investigations on trigger-pullers and traffickers who pose the greatest threat to our communities,” stated Stuart Lowrey, Special Agent in Charge of the ATF Louisville Division. “ATF remains committed to the continued success of Project Safe Neighborhoods and this comprehensive approach to public safety.”
“The PSN program has a proven track record of bringing together law enforcement agencies to share information, share resources, and work together to apprehend and prosecute the most violent offenders,” said Kathy Witt, Sheriff of Fayette County. “The revitalization and enhancement of PSN is a positive development for our community and communities across America.”
“The message should be clear; the FBI is fully committed to eliminating violent crime in the Commonwealth of Kentucky,” said Michael A. Christman, Acting Special Agent in Charge of Louisville Division, FBI. “As part of the Project Safe Neighborhoods, the FBI will continue to work with our law enforcement partners at the federal, state, and local levels to bring those who have not received this message to justice.”
Enforcement Actions
In marking the one-year anniversary of the revitalized PSN program, here are a few examples of law enforcement successes in Lexington, during the past year:
- Antoine Lamar Burns, 36, of Lexington, was sentenced on June 26, 2018, to 10 years in federal prison, for being a convicted felon in possession of a firearm. In his guilty plea, Burns admitted to possessing a .380 caliber pistol, firing shots at someone he believed was cooperating with law enforcement, and pointing the firearm at a former girlfriend.
- Melvin Mahone, 31, of Lexington, was sentenced on June 29, 2018, to 15 years in federal prison, for trafficking in over 40 grams of fentanyl and possession of firearms in furtherance of drug trafficking.
- Michael D. Jackson, 37, and Brandi Stamper, 30, both of Lexington, were sentenced in July 2018, for their roles in conspiring to distribute over 40 grams of fentanyl and possession of firearms in furtherance of drug trafficking. Jackson was sentenced to 25 years in federal prison, and Stamper was sentenced to 15 years.
- Devvin Anglen, 28, of Lexington, a convicted felon, pled guilty in Fayette Circuit Court to possession of a firearm and Persistent Felony Offender charges, after a traffic stop led to the discovery of a weapon in the car and social media video of him firing two handguns at a local range.
- Billy Lane, 36 of Lexington, pled guilty in Fayette Circuit Court to trafficking in controlled substances and Persistent Felony Offender charges, and was sentenced to serve 15 years in March of 2018. The execution of a search warrant in hotel room led to the discovery of heroin, cocaine, and other contraband that Lane was trying to destroy.
- Akeem Lyvers, 22, of Lexington, pled guilty in Fayette Circuit Court to felony trafficking charges, including forfeiture of approximately $3,000 and a handgun with a “drum” magazine that held dozens of rounds, and was sentenced to serve 8 years in prison.
Community Partnerships
“We recognize that enforcement alone is not enough, and sustained success requires a comprehensive approach,” said U.S. Attorney Duncan. “As part of that approach, Fayette County Violent Crime Task Force participants have engaged neighborhood organizations, to help us deter violent crime and prevent recidivism. As part of the PSN initiative, Fayette County Violent Crime Task Force participants have also worked in prevention and re-entry efforts, and are working with the Fayette County Public Schools’ after-school programs to provide tutoring and mentorship to children. This truly community effort is essential to combatting the threat.”
“As a prosecutor, holding offenders accountable is always my first priority, which usually means incarceration in gun violence cases,” said Commonwealth’s Attorney Red Corn. “But my office, and other Task Force participants, are also very involved in PSN’s prevention, intervention, and re-entry work. Recently, in support of our PSN efforts, I attended a meeting of parolees and probationers who are beginning community supervision. The Public Library and a local mental health non-profit were also in attendance, sharing information about available education and mental health services. It is PSN’s comprehensive approach to violent crime reduction that I believe will make a long term difference in public safety in our community.”
“The Project Safe Neighborhoods partnership initiative has helped remove several violent offenders from our streets, while also helping to improve existing community relationships and create new ones,” said Chief Weathers. “This helps build community trust and government accountability by letting everyone in the community know that Project Safe Neighborhoods and its partners are serious about public safety.”
Improvements to Community Safety
Statistically, both nationally and locally, the PSN program is achieving positive results. For example:
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information we have for 2018 gives reason for optimism and evidences that our efforts are continuing to pay off. Specifically, public data from 60 major cities shows that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
- According to publicly available crime data from the Lexington Police Department, for the period of January 1 – August 31, 2018, robberies, aggravated assaults, breakings and entering, larcenies, and auto thefts are all down, when compared to January 1 – August 31, 2017.
- Through September 15, 2018, there have been 62 assaults with firearms reported in Lexington. There were 94 assaults with firearms reported in 2017.
- In 2018 through, August 31, there have been 19 homicides in Lexington. In 2017, there were 28 homicides.
“The PSN program is based on strong partnerships,” said U.S. Attorney Duncan. “We will strive to build on our shared successes, recognizing there is still work to be done,” said U.S. Attorney Duncan. “We look forward to continued partnerships, to developing new ones, and to making further progress. This endeavor truly advances everyone’s interests.”
Learn more about Project Safe Neighborhoods.
Justice Department Awards More Than $30 Million to Project Safe Neighborhoods to Combat Violent CrimeRead the Press Release
NOTE: The Revised FY 2018 PSN Funding Allocation Amounts can be found here.
WASHINGTON – Attorney General Sessions today commemorated the reinvigoration of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. In support of the Department’s PSN programs throughout the country, the Attorney General also announced awards of almost $28 million in grant funding to combat violent crime through PSN and another $3 million for training and technical assistance to develop and implement violent crime reduction strategies and enhance services and resources for victims of violent crime. Over the past year, the Department has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make American neighborhoods safer.
The Eastern District of Kentucky received $185,994 in grant funding to support PSN efforts.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
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.
Through the enhanced PSN, the Department is targeting the most violent criminals in the most violent areas, utilizing policing tools that did not exist even a few years ago. Tools like crime gun intelligence centers (CGIC), which combine intelligence from gunshot detection systems, ballistics, gun tracing, and good old-fashioned police work, help to develop real-time leads on the “traffickers and trigger pullers” who are fueling the violence in their communities. By using modern technologies and cutting-edge police work, the Justice Department is deploying resources strategically to provide the greatest return on our community-based anti-violence efforts.
United States Attorneys across the country are using powerful federal laws against the criminals driving the violent crime in their communities. In fiscal year 2018, the Department brought cases against more violent criminals than ever before—increasing by approximately 15 percent than the Department’s previous record set just last year. Additionally, in 2018 the Department set another record by charging approximately 20 percent more criminals with federal firearms offenses than it had in 2017, which is the most in the Department’s history.
The Department has already started to observe positive signs of progress. The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent. The preliminary information for 2018 shows that the Department’s efforts are continuing to pay off. Public data from 60 major cities show that violent crime decreased by nearly five percent in those cities in the first six months of 2018 compared to the same period one year earlier.
The grants announced today build on Attorney General Sessions’ commitment to reducing violent crime in America, as directed by President Trump’s February 2017 Executive Order. The Department has distributed additional resources and built up strong partnerships with local law enforcement in communities plagued by violent crime. Since the announcement of the reinvigoration of the PSN program in October 2017, the Department of Justice has increased the number of federal prosecutors focused on violent crime by over 300, directed its resources to improving cooperation between federal and local law enforcement agencies, restored local control of police agencies by reining in excessive use of consent decrees, reformed civil asset forfeiture and restored asset-sharing with state and local law enforcement, and helped fund over 800 hundred officers in police departments across America.
Department of Justice Grant Awards Announce More Than $70 Million to Support School Safety and $64 Million to Improve State Criminal Record SystemsRead the Press Release
Awards in Kentucky include substantial grants to the Kentucky Office of Homeland Security, the Kentucky State Police, Whitley County, and the City of Beattyville
WASHINGTON – U.S. Attorney Robert M. Duncan, Jr. joined the Department of Justice today in announcing more than $70 million in grant funding, to bolster school security, educate and train students and faculty, and support law enforcement officers and first responders who arrive on the scene of a school violence incident. In Kentucky $200,000 was awarded to the Kentucky Office of Homeland Security, $496,803 to the Kentucky State Police, $339,004 to Whitley County, and $358,485 to the City of Beattyville.
These grants are in addition to the funding to the National Association of School Resource Officers (NASRO), announced by Attorney General Sessions last week, to expand and update their curriculum to better support training programs. These grants combined will better protect students, teachers, faculty, and first responders across the United States. Additionally, the Department is awarding more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems, which will help law enforcement and increase the effectiveness of background checks.
“President Trump and his administration will ensure the safety of every American school," Attorney General Jeff Sessions said. "Earlier this year he signed into law the STOP School Violence Act, which provides grant funding to develop anonymous school threat reporting systems, to implement school building security measures, and to train students, school personnel, and law enforcement on how to prevent school violence. Today I am announcing $70 million in these grants to hundreds of cities and states across America. These grants will go a long way toward giving young people and their families both safety and peace of mind.”
“The grant funds provided by the Department of Justice will assist our state and local partners in the Commonwealth,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “These funds evidence the Department’s strong commitment to helping find solutions to the problems associated with school violence.”
The Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA) and the Office of Community Oriented Policing Services (COPS Office) together are making more than 220 awards to jurisdictions across the country to help make schools more secure. The awards, granted through three funding streams, will provide new technology for reporting systems and other threat deterrent measures and create school safety training and education programs for school administrators, staff, students, and first responders. This includes the support for existing crisis intervention teams and the creation of new ones.
- BJA’s STOP School Violence Threat Assessment and Technology Reporting Program will provide 68 awards valued at more than $19 million. This funding supports training to create and operate threat assessment and crisis intervention teams and to develop technology for local or regional anonymous reporting systems. This technology may be in the form of a mobile phone application, hotline, or website.
- The STOP School Violence Prevention and Mental Health Training Program, also managed by BJA, will provide training and education on preventing violence and effectively responding to related mental health crises. This program will fund 85 awards at nearly $28 million.
- The COPS Office School Violence Prevention Program (SVPP) will provide nearly $25 million to 91 jurisdictions for school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence against others and self, target hardening measures, and technology for expedited notification of law enforcement during an emergency.
The grants are authorized by the STOP School Violence Act, which are intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.
The Department also announced that it has awarded more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems. These grants are administered by the Bureau of Justice Statistics, part of OJP. Approximately $43 million in funding will be administered through the National Criminal History Improvement Program (NCHIP), and nearly $21 million will be awarded under the National Instant Criminal Background Check System (NICS) Act Record Improvement Program. These grant programs help states automate and upgrade records accessed by the firearms background check system. This year, at the direction of the Attorney General, the Department prioritized funding for projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.
The Department is also investing over $1 million in research to better understand the factors behind mass shooting incidents. The grant awards, made by the Department’s National Institute of Justice (NIJ), part of OJP, support scientific investigations that will examine factors that contribute to mass violence, identify any patterns in mass shootings, analyze psychological and social life histories of mass shooters and community-level predictors of mass violence, and will examine firearm purchasing patterns of known mass shooters in order to create a risk prediction tool.
For addition information on today’s grant announcements, visit www.bja.gov or www.cops.usdoj.gov.
NOTE: The breakdown of the STOP School Violence Grants can be found here: STOP School Violence Threat Assessment and Technology Reporting Program, STOP School Violence Prevention and Mental Health Training Program, and COPS Office School Violence Prevention Program
Local Leader of Mexican Drug Cartel Sentenced to Thirty-One Years for Drug Trafficking and Money LaunderingRead the Press Release
Co-Conspirators also convicted and sentenced to federal prison
LEXINGTON, Ky. – Ciro Macias Martinez, a citizen of Mexico illegally residing in Georgetown, Kentucky, was sentenced on Friday, in the U.S. District Court in Lexington by Judge Danny C. Reeves, to serve 31 years in federal prison for conspiracy to distribute methamphetamine and conspiracy to commit money laundering. Macias, 32, had previously pleaded guilty to both offenses.
In August 2016, the Drug Enforcement Administration in Lexington began its investigation of Macias, and multiple other individuals, for their roles in a sophisticated drug trafficking and money laundering organization operating in Central Kentucky, which was tied to Mexican drug cartels. Macias was the local head of the organization, responsible for distributing kilogram quantities of numerous drugs, including a very pure form of methamphetamine – commonly referred to as “ice” – cocaine, and heroin. The extensive investigation established that, in addition to distributing kilograms of the drugs, Macias was also responsible for collecting the proceeds and returning the money back to Mexico, to the larger drug trafficking organization. Macias admitted in his plea agreement that the organization used contract couriers to pick up large sums of bulk cash that constituted the drug proceeds, supporting larger criminal organization’s ongoing drug trafficking activities. During the investigation, DEA, in conjunction with the Lexington Police Department and the Kentucky State Police, seized and forfeited approximately $1.2 million.
Macias and the larger criminal organization also laundered money through the banking system, by making deposits at multiple banks in increments less than $10,000 per transaction, commonly referred to as “structuring deposits,” attempting to avoid certain federal and state bank reporting requirements. Several other individuals pleaded guilty to their roles in the money laundering, which involved banks in Tennessee and North Carolina and deposits totaling $100,000 or more on each trip. Arlenne Sosa, 23, pleaded guilty and was sentenced to three years in federal prison; Laura Ortiz, 23, also pleaded guilty and was sentenced to four years; and Smirna Ortiz, 21, was convicted at trial, in July 2018, and will be sentenced on November 2, 2018. She faces up to 20 years in federal prison.
The defendants must serve 85% of their respective prison sentences; and upon their release, they will each be under supervision by federal probation officers for additional terms. Macias, after serving his sentence, will face deportation to Mexico.
“Ciro Macias Martinez led a large scale drug trafficking and money laundering cell operating in central Kentucky, and the sentence imposed by the court underscores the severity of his criminal conduct,” stated Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Macias and his co-conspirators were responsible for distributing significant quantities of dangerous drugs, making millions of dollars, and engaging in a sophisticated money laundering scheme to use those ill-gotten proceeds to further their criminal enterprise. I commend the efforts of the law enforcement agencies involved in this investigation, and thank the agents, officers, and prosecutors for their dedicated service. Without their hard work, Macias and his associates would still be in business and our community less safe.”
United States Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police; and Richard Sanders, Commissioner of the Kentucky State Police, jointly made the announcement. Assistant United States Attorney Todd Bradbury represented the United States in the case.
Justice Department Awards Almost $320 Million to Combat Opioid Crisis, Eastern District of Kentucky to Receive More Than $3,700,000Read the Press Release
WASHINGTON – On the first day of National Substance Abuse Prevention Month, the Department of Justice announced it is awarding almost $320 million to combat the opioid crisis in America. The unprecedented funding will directly help those most impacted by the deadliest drug crisis in American history, including crime victims, children, families, and first responders.
"President Trump has made ending the opioid crisis a priority for this administration, and under his leadership, the Department of Justice has taken historic action," said Attorney General Jeff Sessions. "Today we are announcing our next steps: investing $320 million into all three parts of the President’s comprehensive plan to end the epidemic: prevention, treatment, and enforcement. We are attacking this crisis from every angle—and we will not let up until we bring it to an end."
In 2017, more than 72,000 Americans lost their lives to drug overdoses, an increase from the 64,000 overdose deaths in 2016, according to the Centers for Disease Control and Prevention. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues. October marks two important anti-drug events: Red Ribbon Week and National Prescription Drug Takeback Day. Red Ribbon Week takes place every year between October 23-31 and encourages students, parents, schools, and communities to promote drug-free lifestyles. The Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day, on October 27, aims to provide an opportunity for Americans to prevent overdose deaths and drug addictions before they start. DOJ expanded on DEA's Drug Takeback Days and has collected more than 2.7 million pounds of expired or unused prescription drugs since April 2017.
The Attorney General has been resolute in the fight against the drug crisis in America. The Department assigned more than 300 federal prosecutors to U.S. Attorneys’ offices and hired more than 400 DEA task force officers; announced the formation of Operation Synthetic Opioid Surge, a new program to reduce the supply of deadly synthetic opioids in high impact areas; and created a new data analytics program called the Opioid Fraud and Abuse Detection Unit, to assist 12 prosecutors sent to drug “hot spot districts.” The Department also charged more than 3,000 defendants with trafficking in heroin, fentanyl, or prescription drugs in FY 2017, announced the first-ever indictments of Chinese nationals for fentanyl trafficking, and scheduled variants of fentanyl to prevent illicit drug labs from circumventing the law. In addition, DOJ executed the largest ever health care fraud enforcement action, charging more than 600 defendants, and proposed rules consistent with President Trump's "Safe Prescribing Plan," requiring a reduction of ten percent in 2019 in manufacturing quotas. The Department dismantled AlphaBay, the largest criminal marketplace on the Internet and has already generated prosecutions in the fight against online drug trafficking through the Joint Criminal Opioid Darknet Enforcement Team (J-CODE).
The approximately $320 million awarded by the Department’s Office of Justice Programs (OJP) will be distributed to maximize effectiveness across the country. A breakdown of the grant funding can be found here.
In the Eastern District of Kentucky, the following recipients received grant funding to combat the opioid crisis:
The Lexington Fayette Urban County Government received $500,000 for law enforcement and first responders to respond to overdoses.
The Kentucky Cabinet for Health and Family Services received $543,188 for the Commonwealth’s Prescription Drug Monitoring Program.
The University of Kentucky Research Foundation received $1,000,000 to help local and state agencies leverage information from public health and public safety data and to analyze substance abuse issues and identify potential solutions from public health, treatment, and public safety perspectives.
The Northern Kentucky Legal Aid Society received $666,176 to help expand services for children and youth victimized as a result of the opioid crisis.
The Lexington Leadership Foundation, Inc., received $500,000 to create and provide mentoring services to children impacted by the opioid epidemic.
The Kentucky Administrative Office of the Court received $500,000 to enhance existing drug court programs.
“These grants provide unprecedented funding for those most impacted by the opioid crisis and will assist families and children, law enforcement, and first responders,” said United States Attorney Robert M. Duncan, Jr. “These grant awards evidence the Department of Justice’s commitment to address this crisis on multiple fronts, and recognize the need to support law enforcement, prevention, and treatment efforts.”
Nicholasville Men Sentenced for Social Media Threats Related to School Shooting HoaxRead the Press Release
LEXINGTON, Ky. – Two Nicholasville, Ky., men were sentenced today for using social media to harass and intimidate an acquaintance, with threats of a prospective shooting at a Jessamine County school.
United States District Judge Danny C. Reeves sentenced 18-year-old Tristan H. Kelly to 21 months in federal prison and 19-year-old Cody T. Ritchey to 27 months in federal prison. Kelly and Ritchey each pled guilty, in June 2018, to one count of cyberstalking. Kelly and Ritchey both admitted that they had worked together to create a Snapchat profile on February 17, 2018, using the name and picture of a third person who did not know about their actions. Kelly and Ritchey then used the profile to publish a series of posts suggesting that this third individual would use firearms to attack a Jessamine County public school, in February 2018. Among other posts, Kelly and Ritchey made references to the shooting that had occurred at Marjory Stoneman Douglas High School in Parkland, Florida, only days earlier.
Kelly and Ritchey also admitted that they used this Snapchat profile to send direct messages to K.S., an acquaintance of the two. Among other messages, Kelly and Ritchey told K.S. “you’re the reason im killin everybody make it stop,” and “send nudes and ill let you live.” As part of their plea agreements, Kelly and Ritchey both admitted that they understood these messages could reasonably be expected to cause substantial emotional distress.
Law enforcement immediately investigated the threats, identified Kelly and Ritchey as the source, and determined that the threats were a hoax.
“The defendants’ conduct was extremely serious, as reflected in the sentences imposed today by the Court,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “I commend the efforts of, and cooperation between, the local and federal law enforcement officers involved in the investigation. The defendants’ callous and alarming conduct, coming only days after the Stoneman Douglas High School shooting in Parkland, Florida, needlessly put people in fear of a similar tragedy and expended precious law enforcement resources. Deterring this type conduct is critical and we will continue to make that a priority for our Office.”
Under federal law, Kelly and Ritchey must each serve 85 percent of their prison sentences. Upon their release, they will each 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; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Todd Justice, Chief of the Nicholasville Police Department, jointly announced the indictment. The investigation preceding the indictment was conducted by the Nicholasville Police Department and the Federal Bureau of Investigation. The United States was represented by Assistant U.S. Attorney Andrew Boone.
Ohio Man Sentenced to 360 Months for Crossing State Line to Engage in Sex with a MinorRead the Press Release
FRANKFORT, Ky. — David Robert Dunn, 60, of Beavercreek, Ohio, was sentenced today to 30 years in federal prison, by United States District Judge Gregory F. Van Tatenhove, for crossing a state line (Ohio to Kentucky) with the intent to engage in a sexual act with a person who was under 12 years of age.
Earlier this year, Dunn admitted that, in September of 2016, he traveled from Ohio to Scott County, Kentucky, with the intent to engage in a sexual act with a minor who was less than 12 years old. Dunn had posted an internet ad, to which an undercover investigator with the Kentucky Attorney General’s Office responded. During the ensuing communications between the investigator and Dunn, Dunn unequivocally indicated that he was intending to have sex with the investigator’s fictitious 13 and 6 year-old daughters. On September 26, 2016, Dunn was met by the investigator and other law enforcement officers, at a pre-arranged location in Scott County, where he was arrested.
Under federal law, Dunn 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 five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steven Igyarto, Special Agent in Charge, Department of Homeland Security – Homeland Security Investigations; and Andy Beshear, Kentucky Attorney General, jointly made the announcement.
The investigation was conducted by the DHS-HIS and the Cyber Crimes Branch of the Kentucky Office of Attorney General. The United States was represented by Assistant United States Attorney David A. Marye.
Ft. Mitchell Man Sentenced to 97 Months for Receipt of Child PornographyRead the Press Release
LEXINGTON, Ky. – Jeffrey W. Harney, 53, of Ft. Mitchell, Kentucky, was sentenced today to 97 months in federal prison, by United States District Judge David L. Bunning, for receipt of child pornography. Harney was also order to pay $18,964.93 in restitution to the victims in this case.
Harney pled guilty in March 2018 and admitted that he used computer equipment to download child pornography from the internet. Law enforcement officers executed a search warrant on his residence and located approximately 3,640 images (including 1,199 videos) of child pornography on Harney’s computer equipment.
Under federal law, Harney 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 15 years. He will also have to register as a sex offender.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Mike Christman, Acting Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement. The investigation was conducted by the Federal Bureau of Investigation. The United States was represented by Assistant United States Attorney Tony Bracke.
Nonprofit Organization and Its Management Company Agree to Pay over $500,000 to Resolve Allegations of Grant FraudRead the Press Release
LEXINGTON, Ky. – The National Association of State Chief Information Officers, Inc. (NASCIO) and American Management Resources, Inc. (AMR) have agreed to pay the United States $528,575.82 to resolve allegations that they violated the False Claims Act by making false and misleading statements in connection with obtaining grants from the Department of Justice’s National Justice Information Sharing Initiative.
This civil settlement resolves allegations that NASCIO failed to disclose conflicts of interest related to its contract with AMR that were required to be disclosed under the grant program’s rules. The United States contends that the failure to disclose these conflicts of interest resulted in the DOJ approving grant funding that NASCIO would not have otherwise been awarded.
“This settlement sends a clear message that recipients of federally funded grants must strictly adhere to the regulations applicable to those grants and fully and fairly disclose the information called for under these grants,” stated Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Both NASCIO and AMR have responsibly and expeditiously addressed the concerns raised by the United States, and we expect other grant recipients who do not follow the applicable regulations will do the same.”
“This investigation demonstrates the DOJ-OIG’s commitment to ensure that tax payer dollars are used appropriately, and that only authorized grant recipients who follow regulations and provide full disclosure to the government receive DOJ grant funds,” stated William J. Hannah, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General’s (DOJ-OIG) Chicago Field Office.
This case was a result of an investigation by the DOJ-OIG Chicago Field Office and the United States Attorney’s Office for the Eastern District of Kentucky. Assistant United States Attorney Jennifer A. Williams handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Federal Court Orders $1.3 Million Judgment Against Toxicology Laboratory for Committing Healthcare FraudRead the Press Release
FRANKFORT, Ky. – The U.S. District Court has entered a civil judgment of $1,374,058, in favor of the United States and against Calloway Laboratories, Inc. (“Calloway”), a clinical laboratory based in Woburn, Massachusetts, holding Calloway liable for submitting false claims to federal healthcare programs, including Medicare and TRICARE.
This civil judgment, announced today by the U.S. Attorney’s Office, is part of a settlement agreement resolving False Claims Act allegations that, during the period May 2014 to November 2014, Calloway submitted false claims for payment for urine drug testing referred by physicians to whom Calloway provided free testing supplies. As part of the settlement agreement, Calloway acknowledged that it provided free testing supplies to physicians for the purpose of inducing or rewarding referrals of urine drug testing to Calloway. Calloway then submitted claims to Medicare and TRICARE seeking payment for the testing referred by these physicians.
The provision of free testing supplies to induce or reward referrals violates the Anti-Kickback Statute, a federal law that prohibits offering or providing anything of value to physicians to encourage the referral of services covered by federal healthcare programs. This conduct also violates the Stark Law, which prohibits a laboratory from billing Medicare for services referred by physicians with whom the laboratory has an improper financial relationship. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interest of the patient.
“Offering financial incentives to physicians in exchange for patient referrals undermines the integrity of our health care system,” said U.S. Attorney Robert M. Duncan, Jr. “Our office will continue to protect both patients and taxpayers by holding those who engage in kickback schemes accountable.”
The Government’s investigation began with the filing of a whistleblower lawsuit brought by a former Calloway employee under the qui tam provisions of the False Claims Act. Under the Act, private parties may bring suit on behalf of the government and may receive a portion of any federal recovery.
This matter was handled by the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; and the U.S. Attorney’s Office for the Eastern District of Kentucky. The United States was represented by Assistant U.S. Attorneys Christine Corndorf and Carrie B. Pond.
Department of Justice Announces ADA Settlement with Owner of Kentucky TheatersRead the Press Release
LEXINGTON, Ky. – The Department of Justice today announced a settlement agreement with the owner of four Kentucky theaters, resolving complaints alleging violations of the Americans with Disabilities Act (“ADA”). The complaints, filed with the Department, asserted that Tenth Frame Cinemas, LLC, in Mt. Sterling, Ky.; Danville Cinemas, LLC, in Danville, Ky.; Somerset Cinemas, LLC, in Somerset, Ky.; and Morehead Cinemas, LLC, in Morehead, Ky. had failed to provide adequate closed captioning technology, which would allow individuals with hearing and/or sight impairments to enjoy newly released movies. The ADA generally requires places of public accommodation to take the steps necessary to ensure that no individual with a disability is excluded, denied services, segregated, or otherwise treated differently than other individuals because of the absence of auxiliary aids and services.
The settlement agreement resolves the complaints without litigation and requires the owner/operator of the four theaters to (1) provide sufficient closed-captioning devices, receivers, and headsets, for the assisted listening systems and audio description technology, in the theaters; (2) provide necessary training to theater staff regarding the availability and use of the equipment; (3) properly test, repair and maintain the equipment; (4) establish procedures to notify the public if the equipment is inaccessible or non-functioning; (5) establish a policy regarding refunds and future viewings for individuals who have purchased tickets, but are unable to view movies because the equipment is non-functioning; and (6) advertise the availability of the equipment.
“The purpose of the ADA is to ensure that individuals with disabilities are included, and that services that are provided to the public are reasonably available to them,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “This settlement furthers that purpose, by making theater movies more accessible to individuals with disabilities in these Kentucky communities. We want to commend the theaters involved, both for their cooperation throughout the investigation and their willingness to reach a prompt resolution that benefits individuals with disabilities. We look forward to working together with them to implement the settlement agreement.”
People interested in finding out more about the ADA can call the Justice Department’s toll-free Information Line at 800-514-0383 (TDD), or access the ADA homepage at www.ada.gov.
Cold Spring Man Sentenced to 120 Months for Carjacking and Firearms OffenseRead the Press Release
FRANKFORT, Ky. — Christopher D. Pinguely, 35, of Cold Spring, Kentucky, was sentenced today to 10 years in federal prison, by United States District Judge Gregory F. VanTatenhove, for carjacking and possessing a firearm in furtherance of the carjacking.
Earlier this year, Pinguely admitted that, in September 2017, he carjacked a semi-truck in Henry County, by pointing a rifle at the truck driver and threatening to shoot him. Shortly after the carjacking, law enforcement officers, with the Gallatin County Sheriff’s Office and the Kentucky State Police, located Pinguely and the semi-truck in Gallatin County. Pinguely was in possession of a MP-15 rifle.
Under federal law, Pinguely 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 five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge, ATF; Richard Sanders, Commissioner of the Kentucky State Police; and Josh Neal, Gallatin County Sheriff, jointly made the announcement.
The investigation was conducted by the ATF, KSP, and Gallatin County Sheriff’s Office. 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. Attorney General Sessions 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, local strategies to reduce violent crime.
Three Individuals Plead Guilty to Large-Scale Drug TraffickingRead the Press Release
Prosecution involved more than five kilograms of cocaine, 200 grams of fentanyl, and $100,000 in seized currency
LEXINGTON, Ky. – Three people have pleaded guilty, in the U.S. District Court in Lexington, for their roles in distributing cocaine and fentanyl. Shontail M. Hocker, 42, of Lexington, pleaded guilty to conspiracy to distribute five kilograms or more of cocaine and to distribution of 40 grams or more of fentanyl. David Dewayne Morris, 48, and Kim Davis, 47, both of Louisville, Kentucky, pleaded guilty to distributing 2 kilograms of cocaine.
On February 9, 2018, while they were conducting surveillance of the defendants, agents with the Drug Enforcement Administration (DEA) observed a drug transaction. With the assistance of the Kentucky State Police, agents seized 2 kilograms of cocaine from the defendants in Shelby County, Kentucky. DEA agents and Lexington Police then obtained a search warrant for the residence of Shontail Hocker in Fayette County, where they seized more than 200 grams of fentanyl, $105,880.00 in U.S. currency, and metal presses used to process large quantities of controlled substances.
“The defendants in this case were dealing in massive quantities of dangerous drugs,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Without the outstanding work of our law enforcements partners, this prosecution would not have been possible. Their efforts removed these drugs from our streets, made our communities safer, and saved lives. Prosecuting those who deal in this scourge to our community will continue to be a core priority of our Office.”
Robert M. Duncan, Jr, United States Attorney for the Eastern District of Kentucky; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Richard Sanders, Commissioner of the Kentucky State Police, and Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police, jointly made the announcement.
Sentencing hearings for all three defendants are scheduled for December 10, 2018 at the federal courthouse in Lexington. Hocker and Morris each face 10 years to life in prison, while Davis faces 5 years to life. The U.S. District Court will impose their sentences, after its consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Tennessee Constable Sentenced to 10 Years for Illegally Distributing Opioids in KentuckyRead the Press Release
PIKEVILLE, Ky. — Bobby Roy Justice, 67, of Dandridge, Tennessee, and formerly of Pikeville, was sentenced yesterday to 10 years in federal prison, by Chief United States District Judge Karen K. Caldwell, for conspiring to distribute oxycodone pills. Justice was also ordered to pay a $60,000 fine.
A federal investigation into Justice revealed that, over a five-year period, Justice imported over 90,000 oxycodone pills, from suppliers in Florida, to the Pike County area for distribution. During one of the trips, the Kentucky State Police found Justice in possession of hundreds of pills and a firearm. Justice also used others to distribute pills on his behalf. Justice pled guilty to the charges against him in May of 2018.
Prior to his indictment, Justice was serving as a constable in Dandridge, Tennessee. He has since resigned that post.
Under federal law, Justice must serve 85 percent of his prison sentence, and, upon release, 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; Chris Evans, Special Agent in Charge, Drug Enforcement Administration; Amy Hess, Special Agent in Charge of the FBI; Richard Sanders, Kentucky State Police Commissioner, Derrick House, Chief of the London Police Department; and Carson Williams, Chief of the Dandridge Police Department jointly made the announcement. The United States was represented by Assistant United States Attorney Andrew H. Trimble.
Former Crop Insurance Agent Sentenced to 60 Months for Crop Insurance FraudRead the Press Release
LEXINGTON, Ky. – Debra Muse, 63, of Wallingford, Ky., was sentenced today to 60 months in federal prison, by United States District Judge Joseph M. Hood, for conspiracy to commit crop insurance fraud and crop insurance fraud. Muse was also ordered to pay $1,656,275 in restitution.
Muse pleaded guilty on April 16, 2018, and admitted to urging and assisting co-conspiring farmers to file false tobacco crop insurance claims with the Federal Crop Insurance Corporation (“FCIC”), with the intent to help the farmers obtain crop insurance proceeds to which they were not entitled. These crop insurance claims contained falsified reports of tobacco production. Muse, a crop insurance agent and employee at Clay’s Tobacco Warehouse during the period in question, admitted that she created multiple false documents, including Clay’s Tobacco Warehouse sale bills and shipping reports, to help farmers hide their crop production from their insurance adjusters and falsify the quality of the tobacco. These documents, which misrepresented the volume and quality of the farmers’ crop production, led to inflated payments from the farmers’ crop insurers, which are reinsured by the federal government.
Judge Hood found that, as a result of Muse’s fraud, she caused the federal government to pay out $5,917,515 in crop insurance indemnity payments to agricultural producers to which they were not entitled. The agricultural producers included Muse’s clients and the clients of other insurance agents, who used falsified documents Muse created in filing their own fraudulent insurance claims.
“Protecting limited public resources and the integrity of our public insurance programs are priorities for our Office and the Department of Justice,” stated United States Attorney Robert M. Duncan, Jr. “The Defendant’s participation in this unlawful scheme to falsify documents resulted in significant losses to the FCIC. Her participation was instrumental to the scheme’s success and her criminal conduct harmed the integrity of the crop insurance system. We will continue to prioritize similar efforts to prosecute those who prey on public programs and appropriate taxpayer funds.
Under federal law, Muse must serve 85 percent of her prison sentence; upon her release, she will be under the supervision of the United States Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; Christopher Altemus, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Dwayne Depp, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the sentence. Assistant United States Attorneys Kathryn M. Anderson and Erin M. Roth represented the United States.
Grant County Man Sentenced to 14 Years for Distributing and Possessing Child PornographyRead the Press Release
COVINGTON, Ky. — Charles Moran, Jr., 44, of Grant County, Kentucky, was sentenced, last Thursday, to 14 years in federal prison, by United States District Judge David Bunning, for distributing and possessing child pornography.
Moran previously admitted that, in June 2017, he used his computer to download hundreds of images of child pornography and then made them available for sharing with other users of a peer-to-peer software. Unbeknownst to Moran, detectives with the Electronic Crimes Unit of the Campbell County Police Department were conducting online undercover investigations of child pornography. When Moran was arrested, in October 2017, investigators found over 1,000 images of child pornography on his computer, which depicted sex acts against children ranging in ages from 6 months old to teenagers. Moran pleaded guilty to the charges in May 2018.
Under federal law, Moran 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 a term of 25 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Craig Sorrell, Chief of the Campbell County Police, jointly made the announcement.
The investigation was conducted by the FBI and Campbell County Police Department. The United States was represented by Assistant United States Attorney Wade T. Napier.
Versailles Man Sentenced to 48 Months for Emailing Threats to Member of CongressRead the Press Release
LEXINGTON, Ky. – Scott W. Sulik, 54, of Versailles, Ky., was sentenced today to 48 months in federal prison, by United States District Judge Danny C. Reeves, for sending a series of emails containing threats to a Member of Congress.
Sulik pled guilty, in June 2018, and admitted to one count of cyberstalking. Beginning in September 2017, Sulik used an email account hosted by Google to send threats to an email address associated with a Member of the United States Congress. Sulik sent threatening emails to this address through December 2017. Among other things, Sulik threatened the Member of Congress by stating: “You put your family at risk . . .”; “. . . I’m threatening you.”; “What are you going to do before I erase you?”; and “Show me anyone who is going to protect you against me . . . .”
Under federal law, Sulik 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 Matthew R. Verderosa, Chief of the United States Capitol Police, jointly made the announcement. The investigation was conducted by the United States Capitol Police. The United States was represented by Assistant United States Attorney Andrew T. Boone.
Fleming County Farmer Indicted for Crop Insurance FraudRead the Press Release
LEXINGTON, Ky. – A Flemingsburg man was indicted today for engaging in crop insurance fraud.
A federal grand jury in Lexington returned a ten-count indictment charging 45-year-old Christopher G. Hickerson with multiple counts of making false statements to influence the Federal Crop Insurance Corporation (“FCIC”) and companies the FCIC reinsures, and two counts of committing a conspiracy to commit an offense against the United States.
The indictment alleges that as early as 2009, Hickerson, an agricultural producer of tobacco, winter wheat, and soybeans in Fleming County, hid his tobacco production from insurance companies, in order to claim damage to his crop sufficient to trigger crop insurance indemnity payments or generate larger indemnity payments, which are funded by the federal government through the FCIC. The indictment also charges Hickerson with two counts of conspiracy to commit crop insurance fraud with the help of others. The first conspiracy count alleges that Hickerson worked with others to obtain false quality adjustments on tobacco presented to graders as belonging to Hickerson, when in fact the tobacco belonged to others, in order to inflate his claim of loss. The second count alleges that Hickerson obtained crop insurance policies in others’ names, in order to take advantage of their new producer status. A new producer may receive a higher guarantee for their crop insurance than an individual who has a history of claiming losses.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; Christopher Altemus, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Dwayne Depp, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The indictment was presented to the grand jury by Assistant U.S. Attorneys Kathryn M. Anderson and Erin M. Roth.
A date for Hickerson to appear in court has not yet been scheduled. For each charge of making false statements to the FCIC, Hickerson faces up to 30 years in prison and a fine of $1,000,000. For the conspiracy to violate federal law charges, Hickerson faces up to 5 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 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.
Cattle Company and Veterinarian Indicted for False Health Certificates on LivestockRead the Press Release
LEXINGTON, Ky. – A veterinarian and a cattle company were indicted today for using false interstate certificates of veterinary inspection, to ship tens of thousands of cattle interstate, in violation of federal law.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky; Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; William Swartz, Area Director, United States Department of Agriculture Animal Plant Health Inspection Service; and Mark McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, made the announcement.
A federal grand jury in Lexington returned an indictment charging Eugene Barber & Sons, Inc. (“Barber & Sons”), a cattle company based in Lexington with one count of conspiracy, one count of moving cattle in violation of federal law, and one count of aiding and abetting a false statement. The indictment also charges veterinarian John M. Moran, 64, of Flemingsburg, Kentucky, with one count of conspiracy, one count of aiding and abetting moving cattle in violation of federal law, and one count of making a false statement.
The indictment alleges that Barber & Sons and Moran conspired to violate the Animal Health Protection Act, which protects the health and welfare of the public by preventing, detecting, and eradicating the spread of diseases in animals that are shipped within the United States. Federal law requires that an accredited veterinarian inspect cattle prior to their shipment, and then file certificates attesting to that inspection with appropriate state authorities. The indictment alleges that Moran falsely certified he had inspected the cattle Barber & Sons had shipped, when in fact he had merely pre-signed the interstate certificate of veterinary inspection without inspecting the cattle. According to the indictment, between January 28, 2013 and September 25, 2015, Moran certified at least 600 false interstate certificates of veterinary inspection for shipment of more than 60,000 cattle. In exchange, he was paid over $19,000 by Barber & Sons.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The USDA and FDA are investigating the case. Assistant U.S. Attorney Kate K. Smith is prosecuting the case. The Defendants’ initial appearance on the indictment is currently scheduled for September 21, 2018, at 10:30 a.m., in Lexington.
Frankfort Nurse Practitioner Pleads Guilty to Conspiring to Obtain Drugs with Forged PrescriptionsRead the Press Release
LEXINGTON, Ky. — Tiffany Miller, 39, of Frankfort, Ky., pleaded guilty yesterday to conspiring to obtain controlled substances by fraud.
In her guilty plea, Miller admitted that she agreed with others to use stolen prescriptions, which she had obtained from hospitals where she worked, to obtain the drugs. Miller forged the doctor’s names on stolen prescription forms for Ritalin and Adderall. Miller and others presented the forged prescriptions to numerous pharmacies in Central Kentucky. The prescription forms were taken from Baptist Health, in Lexington; Fleming County Hospital, in Flemingsburg; and Manchester Memorial, in Clay County. Miller and others were able to obtain more than 2,000 pills using the forged prescriptions. Miller was indicted by a grand jury in July of 2018.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Christopher Evans, Special Agent in Charge, D.E.A.; and Richard Sanders, Commissioner of the Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by D.E.A. and Kentucky State Police. The United States was represented by Assistant United States Attorney Roger W. West.
Miller is currently scheduled to appear for sentencing, before Senior United States District Judge Joseph M. Hood, in Lexington, on December 3, 2018, at 11:00 a.m. She faces a maximum prison sentence of 4 years. However, any sentence following conviction will be imposed by the Court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Two Indicted for Making Corporate Contributions to U.S. Senate CampaignRead the Press Release
The former president of a Kentucky-based corporation and a political consultant were both indicted today for using corporate funds to make contributions to the campaign of a candidate for U.S. Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky, and Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Office, made the announcement.
A federal grand jury in Lexington returned an indictment charging Gerald G. Lundergan, 71, of Lexington, Kentucky, with 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 indictment also charges Dale C. Emmons, 66, of Richmond, Kentucky, with 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.
The indictment alleges that 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 U.S. Senate in the 2014 election cycle. The candidate for this seat was Lundergan’s family member. The indictment alleges that Lundergan and another S.R. Holding employee issued 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 payments referenced in the indictment allegedly totaled $194,270.39 over time.
According to the indictment, these payments included $119,145.45 paid from S.R. Holding to Emmons and his company during this period for services to the campaign. 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. Over time, according to the indictment, Emmons paid $38,603.80 to these vendors for recorded telephone calls, technological support services, and other campaign-related expenses.
The indictment alleges that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments allegedly caused the campaign unwittingly to file false reports with the FEC, in that the reports failed to disclose the source and amount of the corporate contributions.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI is investigating the case. Trial Attorney Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith of the Eastern District of Kentucky are prosecuting the case.
Two Indicted for Making Corporate Contributions to U.S. Senate CampaignRead the Press Release
WASHINGTON – The former president of a Kentucky-based corporation and a political consultant were both indicted today for using corporate funds to make contributions to the campaign of a candidate for U.S. Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky, and Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Office, made the announcement.
A federal grand jury in Lexington returned an indictment charging Gerald G. Lundergan, 71, of Lexington, Kentucky, with 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 indictment also charges Dale C. Emmons, 66, of Richmond, Kentucky, with 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.
The indictment alleges that 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 U.S. Senate in the 2014 election cycle. The candidate for this seat was Lundergan’s family member. The indictment alleges that Lundergan and another S.R. Holding employee issued 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 payments referenced in the indictment allegedly totaled $194,270.39 over time.
According to the indictment, these payments included $119,145.45 paid from S.R. Holding to Emmons and his company during this period for services to the campaign. 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. Over time, according to the indictment, Emmons paid $38,603.80 to these vendors for recorded telephone calls, technological support services, and other campaign-related expenses.
The indictment alleges that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments allegedly caused the campaign unwittingly to file false reports with the FEC, in that the reports failed to disclose the source and amount of the corporate contributions.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI is investigating the case. Trial Attorney Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith of the Eastern District of Kentucky are prosecuting the case.
Lincoln County Man Sentenced for Firearm OffenseRead the Press Release
LEXINGTON, Ky. — Eddie Paul Harris, 69, of Lincoln County, Kentucky, has been sentenced, by Chief United States District Judge Karen K. Caldwell. On Thursday, August 23, 2018, he was formally sentenced for being a felon in possession of a firearm. Harris was found to be an armed career criminal and was sentenced to 180 months imprisonment.
Harris, who had previously been convicted of two murders, armed robbery, and second degree robbery, among other things, admitted to unlawfully possessing the firearm. On December 31, 2015, the Kentucky State Police Strategic Response Team, with the aid of local law enforcement, arrived at Harris’s residence to execute an arrest warrant. Harris refused to exit the premises. A witness, who had already exited the residence told officers that Harris was armed and intended to fire at officers, causing law enforcement to escalate its response. Ultimately, officers were able to apprehend Harris. Inside the residence, officers located a loaded, short-barreled Remington shotgun. Harris pleaded guilty to the charges in July 2018.
Under federal law, Harris 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 a period of five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowery, Special Agent in Charge, ATF; and Richard Sanders, Kentucky State Police, jointly made the announcement.
ATF and Kentucky State Police conducted the investigation. Assistant United States Attorney Lauren Tanner Bradley represented the United States.
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. Attorney General Sessions 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, local strategies to reduce violent crime.
Taking Action on the Opioid Crisis (Op-Ed)Read the Press Release
The latest statistics indicate that 72,000 Americans died from drug overdoses in 2017 – the highest death toll in a single year and a staggering figure. Nearly 30,000 of those deaths were attributable to one particularly deadly synthetic opioid – fentanyl.
Our great Commonwealth knows the consequences of the crisis far too well. According to the Kentucky Office of Drug Control Policy’s 2017 Overdose Fatality Report, 1,468 Kentucky residents died of a drug overdose in 2017. Fentanyl was involved in 763 of those overdose deaths, accounting for 52% of all deaths – up from 47% in 2016.
Many would confirm the Eastern District of Kentucky is at “ground zero” in the overdose crisis. During 2017, in the 67 counties comprising our District, we had 894 of the Commonwealth’s overdose deaths, which accounts for approximately 61% of the resident overdose deaths for the entire state.
More alarmingly, the top five counties in the Commonwealth, with the highest per capita overdose death rates, are all in our District. Similarly, four of the top five counties, with the most fentanyl related overdose deaths, are also in our District – including Fayette County. Fayette County ranked second in fentanyl related overdose deaths in 2017, with 112 overdoses. Fayette County was also third for overdose deaths related to both heroin and fentanyl, with 33 additional deaths.
The statistics represent real people, who fell prey to the plague of addiction; but these are not just numbers on a page – they are friends and loved ones.
While prevention and treatment are critically important, law enforcement also plays a key role in fighting this crisis. The Department of Justice, under Attorney General Sessions, is fighting back, and is using every tool in the toolbox – and even creating new ones – to do so.
Our Office has received additional resources to combat the drug threat facing our District and we are committed to combatting the crisis with all the tools we have.
Earlier this month, the Attorney General announced Operation Synthetic Opioid Surge (SOS). SOS is based on a successful initiative in Manatee County, Florida, where law enforcement aggressively prosecuted fentanyl distribution cases, helping in the reduction of overdose death rates. The Manatee County program resulted in a significant number of federal prosecutions of those trafficking this poison.
As part of Operation SOS, our Office was one of ten selected to receive funding for a new prosecutor that will be dedicated to reducing access to illicit fentanyl. Working in partnership with DEA, the Lexington Police Department, and the Fayette Commonwealth Attorney’s Office, we will aggressively prosecute readily provable cases involving the distribution of fentanyl and other synthetic opioids – because with these drugs, there is no such thing as a small case. In working with our colleagues in law enforcement, we will strive to achieve meaningful results in reducing our overdose rates.
One year ago, the Attorney General also announced the formation of the Opioid Fraud and Abuse and Detection Unit, an innovative DOJ initiative that uses data and analytics to target heath care fraud related to prescription opioids. As a recipient of these resources, our Office will investigate and aggressively prosecute doctors who prey on opioid addiction here in Kentucky and defraud the government in the process.
Finally, as part of our mission to reduce access to all illegal drugs, we will continue our efforts in support of the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a multiagency effort to disrupt and dismantle the most significant drug trafficking and criminal organizations operating in our District and across the country. Our local OCDETF prosecutions have resulted in the seizure of enormous quantities of heroin, fentanyl, methamphetamine, and other drugs; the seizure of millions of dollars in drug proceeds; and the convictions of numerous drug traffickers. We will continue to prioritize these important investigations.
The work of law enforcement is critical to our success in combatting this crisis. It will continue to make a difference, reduce crime, and save lives.
Robert M. Duncan, Jr.
Mexican Nationals Illegally Residing in Kentucky Convicted in Large Cocaine-Trafficking ConspiracyRead the Press Release
LEXINGTON, Ky. – Three Mexican Nationals illegally residing in Louisville, Ky. were sentenced today, by U.S. District Judge Danny C. Reeves, for their roles in a conspiracy to distribute five kilograms or more of cocaine. A federal jury found Imanol Pineda Penaloza, 37, and Efrain Villa Villanueva, 24, guilty in May 2018. A third defendant, Sergio Aguilar Piedra, 25, entered a plea of guilty to the same charges. Imanol Pineda Penaloza was sentenced to a term of 340 months, while Efrain Villa Villanueva was sentenced to 200 months. Sergio Aguilar Piedra was previously sentenced to 125 months.
The evidence at trial established that all three men participated in the drug trafficking conspiracy from November 2015 until March 2018. In 2015, the Narcotics Enforcement Unit with the Lexington Police Department executed a search warrant, at an address on Lonan Court in Lexington, and seized nearly 19 kilograms of cocaine, approximately $400,000 in U.S. currency and two firearms. In 2016 and 2017, the defendants continued to distribute kilogram quantities of cocaine and other drugs, in Louisville and elsewhere. The amount of cocaine involved in the conspiracy was approximately 100 kilograms.
Each defendant must serve 85% of his federal prison sentence. Upon their release from prison, each defendant will face deportation to Mexico.
“The defendants were responsible for distributing an enormous amount of cocaine, and the significant sentences imposed underscore the seriousness of their illegal conduct,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The investigation and prosecution were successful because of the good work of and cooperation among federal, state, and local law enforcement, and I commend their efforts.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police; and Richard Sanders, Commissioner of the Kentucky State Police, jointly announced the sentences.
Lexington Man Pleads Guilty to Trafficking in Crack CocaineRead the Press Release
LEXINGTON, Ky. — Damine Alexander Green, 42, of Lexington, pleaded guilty today to the distribution of more than 28 grams of crack cocaine.
In the course of his guilty plea, Green admitted that, on May 2, 2018, he sold more than an ounce of crack cocaine. Green also admitted that he sold crack cocaine on two other occasions in Lexington.
Green had previously been convicted of three felony offenses for trafficking in cocaine, including being convicted of being a Persistent Felony Offender, in Fayette County, prior to the commission of this offense and was on parole at the time he committed this.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Stuart Lowery, Special Agent in Charge, ATF, jointly made the announcement.
The investigation was conducted by the ATF. The United States was represented in the case by Assistant United States Attorney Roger W. West.
Green is currently scheduled to appear for sentencing before United States District Judge Danny C. Reeves, on December 7, 2018. Green faces a minimum of 15 years and a maximum sentence of life in prison. However, any sentence following conviction will be imposed by the Court, after its consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
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. Attorney General Sessions 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, local strategies to reduce violent crime.
Grant County Man Sentenced to 120 Months for Trafficking in MethamphetamineRead the Press Release
COVINGTON, Ky. – Ryan McNerney, 41, of Dry Ridge, Ky., was sentenced yesterday to 120 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute methamphetamine.
McNerney pled guilty, in May 2018, and admitted to distributing between 50 and 150 grams of methamphetamine, in May 2017. McNerney sold significant amounts of crystal methamphetamine to an informant, on four occasions that month, and he admitted to additional sales of the drug.
Under federal law, McNerney 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 five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration; and Richard Sanders, Commissioner of the Kentucky State Police, jointly made the announcement. The investigation was conducted by the Drug Enforcement Administration and the Kentucky State Police. The United States was represented by Assistant United States Attorney Tony Bracke.
Richmond Man Pleads Guilty to Federal Drug Trafficking and Firearms OffensesRead the Press Release
LEXINGTON, Ky. — Dwayne Thomas Farmer, 36, of Richmond, Ky., pleaded guilty today to trafficking in methamphetamine, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of drug trafficking.
In the course of his guilty plea, Farmer admitted the, on June 27, 2017, law enforcement officers executed a search warrant at his Richmond apartment. During the search, officers seized over 220 grams of methamphetamine, which was in close proximity to two shotguns.
Farmer admitted that he had traded methamphetamine for the two shotguns, which were located in his bedroom, behind the couch. Farmer admitted that he kept the shotguns for protection and that he intended to sell the drugs. The street value of the methamphetamine was more than $20,000.
Farmer, was previously convicted of felony drug trafficking in Knox County, Tennessee and Whitley County, Kentucky, prior to his commission of the federal offenses resolved by his guilty plea.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowery, Special Agent in Charge, ATF Louisville, Christopher Evans, Special Agent in Charge DEA Louisville; and Chief James Ebert, Richmond Police Department jointly made the announcement.
The investigation was conducted by the ATF, DEA, the Richmond Police Department and the Madison County AHIDTA Task Force. The United States was represented by Assistant United States Attorney Roger W. West.
Farmer is currently scheduled to appear for sentencing before Chief United States District Judge Karen K. Caldwell, in Lexington, on December 19, 2018. Farmer faces up to life in prison. However, any sentence following conviction will be imposed by the Court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
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. Attorney General Sessions 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, local strategies to reduce violent crime.
Cincinnati Man Sentenced to 150 Months for Illegal Distribution of Crystal MethamphetamineRead the Press Release
COVINGTON, Ky. – Ronald Fryman, 38, of Cincinnati, was sentenced today to 150 months in federal prison, by United States District Judge David L. Bunning, for unlawful distribution of crystal methamphetamine.
Fryman previously pleaded guilty to unlawful distribution of crystal methamphetamine, on May 11, 2018. According to his guilty plea agreement, on July 21, 2016, Fryman sold an informant 27.5 grams of methamphetamine, in the parking lot of the Florence Mall, in Boone County. On September 22, 2016, the Defendant again sold an informant 25.7 grams of methamphetamine, near the same location. Both substances were confirmed to be actual methamphetamine, known as crystal methamphetamine. Fryman admitted that he was responsible for distributing at least 50 grams of the drug.
Fryman also admitted that he had previously been convicted of First Degree Possession of a Controlled Substance in Campbell County, in April of 2013.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), jointly made the announcement. The investigation was conducted by the DEA. The United States was represented by Assistant United States Attorney Laura Voorhees.
U.S. Attorney Duncan Supports Justice Department, DEA Proposal to Reduce Controlled Substances Manufactured in the United StatesRead the Press Release
LEXINGTON, Ky. –The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the six most frequently misused opioids for 2019, by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
“In the Eastern District of Kentucky, we have all seen and been touched by the tragic consequences of opioid abuse and addiction,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Illicit diversion of prescription opioids has been a significant catalyst for the epidemic and it is a critically important area to focus efforts to stem the tide. The proposed quota adjustment is another tool in this fight. We support the proposed adjustment, as it will reduce the amount of highly addictive opioids potentially available for illicit diversion.”
The press release announcing the proposal can be viewed at:
https://www.justice.gov/opa/pr/justice-department-dea-propose-significant-opioid-manufacturing-reduction-2019
Lexington Man Sentenced to 150 Months for Using Internet to Attempt to Entice Minors to Engage in Sexual ActivityRead the Press Release
LEXINGTON, Ky. - A Lexington man, who previously admitted to attempting to entice minors to permit him to engage in illicit sexual conduct, has been sentenced to 150 months in federal prison.
Yesterday, Senior U.S. District Judge Joseph M. Hood sentenced Timothy Mark Poynter, II, 33, for using the Internet, with his cellular telephone, to knowingly attempt to persuade, induce, entice, and coerce a minor, to engage in sexual activity.
According to the plea agreement, Poynter previously admitted to communicating with two different undercover law enforcement agents, who both responded to an ad Poynter posted on Craigslist.com. One undercover officer portrayed himself as the father of a 14-year old step-daughter, and the other officer posed as the mother of an 11-year old daughter. Poynter engaged in conversations during which he indicated his interest in engaging in sexual intercourse with both of the fictitious minors. He traveled to a meeting place in Lexington, designated by the undercover officer posing as the father, on April 26, 2017. Poynter admitted that he was the person who had been communicating with the officer, and that those communications contained sexually explicit conversations.
Poynter pleaded guilty to the charge in May of 2018.
Under federal law, Poynter must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for the remainder of his life.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steven Igyarto, Resident Agent in Charge, Department of Homeland Security, Homeland Security Investigations; Rick Sanders, Commissioner of the Kentucky State Police, and Kentucky Attorney General Andy Beshear jointly announced the sentence.
The investigation was conducted by Homeland Security Investigations, the Electronic Crimes Branch of the Kentucky State Police, and the Cyber Crimes Branch of the Office of the Attorney General of Kentucky. Assistant U.S. Attorney David A. Marye represented the federal government in the case.