Eastern District of Kentucky

LEXINGTON, Ky. — Jose Alejandro Diaz -Tinoco, 35, Luis Eduardo Salto-Garcia 31, and Reynaldo Aviles- Hernandez 44, all Mexican Nationals, have each pled guilty to several federal crimes, including illegal re-entry to the United States after a previous deportation.

In the course of Diaz Tinoco’s his guilty plea, he admitted that he had previously been deported from the United States after being convicted of a felony drug trafficking offense in California.  Tinoco admitted he unlawfully re-entered the United States prior to being arrested by the Kentucky State Police, on April 4, 2018, when he was in possession of $13,360 in cash.  Immigration records show that Diaz-Tinoco has been deported from the United States on at least two prior occasions.

In the course of Luis Eduardo Salto-Garcia’s guilty plea, he admitted that he had previously been deported from the United States, and that he had unlawfully re-entered the United States prior to being arrested on March 1, 2018, by the Lexington Police, for unlawfully possessing a stolen firearm and a domestic violence offense.   Immigration records show that Salto-Garcia has been deported from the United States on at least one prior occasion.   

In the course of Reynaldo Aviles-Hernandez’s guilty plea, he admitted that he had previously been deported from the United States and had unlawfully re-entered the United States.  He further admitted to using a fake United States social security card and other documents to obtain employment in Fayette County.  Immigration records show that Aviles-Hernandez has been deported from the United States on at least three prior occasions.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Kristoffer Cortex, Acting Assistant Field Office Director, ICE; Chief Lawrence Weathers, Lexington Police Department; and Richard Sanders, Commissioner of the Kentucky State Police, jointly made the announced the guilty pleas.

The investigations were conducted by ICE, KSP, and the Lexington Police.  The United States was represented in the cases by Assistant United States Attorney Roger W. West.

Diaz-Tinoco, Salto-Garcia, Aviles-Hernandez are currently scheduled to appear for sentencing, before Chief United States District Judge Karen K. Caldwell, on DATE.  Their sentences will be imposed by the Court, after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.

 

LEXINGTON, Ky. – Preferred Care Inc. (Preferred Care); its Stanton, Kentucky skilled nursing facility, Stanton Nursing and Rehabilitation Center (Stanton Nursing); owner, Thomas D. Scott; Preferred Care Partners Management Group (PCPMG); and certain other affiliated entities have agreed to pay $540,000 to the United States and the Commonwealth of Kentucky, to resolve allegations that Stanton Nursing billed Medicare and the Kentucky Medicaid program for fraudulently inflated skilled nursing services and providing materially substandard care, in violation of the False Claims Act. 

Preferred Care and its related entities own or operate approximately one-hundred skilled nursing facilities throughout the United States, including Stanton Nursing and twenty other facilities in Kentucky.  Preferred Care’s facilities, including Stanton Nursing, are managed by PCPMG and related entities.  Preferred Care, Stanton Nursing, and PCPMG, along with related entities in Kentucky and New Mexico, declared Chapter 11 bankruptcy, in November 2017, in the Bankruptcy Court for the Northern District of Texas.  The respective bankruptcy courts approved the settlement on June 26, 2018. 

The United States alleged that Preferred Care, PCPMG, Stanton Nursing, and certain related entities violated the False Claims Act by submitting, or causing the submission of, false claims to Medicare and Medicaid.  Medicare reimburses skilled nursing facilities based on a patient’s resource utilization group, or RUG level, which is determined based on the anticipated amount of skilled therapy and skilled nursing services required by the patient.  The United States alleged that, from July 1, 2012 through October 31, 2017, Preferred Care, PCPMG, and Stanton Nursing improperly coded patients for higher amounts of skilled nursing services than they needed or received, resulting in higher payments from Medicare.

The Settlement also resolves the government’s allegations that, from July 1, 2012 through April 30, 2015, certain patients at Stanton Nursing received materially substandard or worthless services. 

“The United States is committed to protecting our senior community by ensuring that taxpayer dollars are not misspent and nursing facility residents are receiving appropriate, high quality care,” said Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky.  “This settlement, reached in cooperation with our partners at the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse, highlights our efforts to combat healthcare fraud, waste, and abuse, and hold accountable those who fraudulently deprive government health care programs of vital resources.” 

“Protecting the health and safety of Medicare and Medicaid patients is our top priority,” said Derrick L. Jackson, the Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Settlements like this one hold skilled nursing facilities responsible for providing the best possible care to our beneficiaries.”

“My office works every day to protect Kentucky’s most vulnerable citizens and to seek justice for our seniors who have been physically abused,” Kentucky Attorney General Andy Beshear said.  “Our work on this case is an example of our ongoing commitment and the commitment of our federal partners to stop those who harm our seniors by not giving them the very best care and service.”

The allegations were originally brought in lawsuits filed by defendants’ former employees Susan Helton and Joseph Donchatz, 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. 

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

This matter was handled as part of the Elder Justice Initiative of the Department of Justice (https://www.justice.gov/elderjustice/).  In June 2016, the United States Attorney’s Offices for the Eastern District and Western District of Kentucky formed an Elder Justice Task Force (https://www.justice.gov/usao-edky/elder-justice-task-force).  The Task Force was assembled to foster a collaborative working relationship among federal, state, and local agencies charged with protecting the elderly.  The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions, or involves financial fraud schemes.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).

This settlement is the result of an investigation by the U.S. Attorney’s Office for the Eastern District of Kentucky, U.S. Department of Justice Civil Division’s Commercial Litigation Branch, Office of Inspector General of the U.S. Department of Health and Human Services, and Kentucky Attorney General’s Office of Medicaid Fraud and Abuse.  The cases are captioned U.S. ex rel. Doe v. Preferred Care Inc., et al. (E.D. Ky.) and U.S. ex rel. Donchatz v. Stanton Health Facilities, L.P., et al. (E.D. Ky.). 

Largest Health Care Fraud Enforcement Action in Department of Justice History Resulted in 76 Doctors Charged and 84 Opioid Cases Involving More Than 13 Million Illegal Dosages of Opioids

 

WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced yesterday 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.  Thirty state Medicaid Fraud Control Units also participated in today’s arrests.  In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse. 

Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Inspector General Daniel R. Levinson of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Director Alec Alexander of the Centers for Medicare and Medicaid Services (CMS) Center for Program Integrity and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).

Yesterday’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.  In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units. 

The charges announced yesterday aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.   

“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions.  “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history.  This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”

“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar.  “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings.  The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims.  Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.

Cases that have been indicted in the Eastern District of Kentucky are:

• United States v. Kimberly Jones (6:18-cr-00030 E.D. Ky.):  Kimberly Jones, a licensed pharmacist in Williamsburg, Kentucky, is charged with 26 counts of distributing oxycodone or oxymorphone, one count of maintaining a drug involved premises, and one count of health care fraud.  The Indictment alleges that Jones, the owner of Kim’s Hometown Pharmacy in Williamsburg, repeatedly filled prescriptions for oxycodone and oxymorphone outside the scope of professional practice, while also billing insurers for prescription drugs that were never dispensed to patients.  The Indictment was unsealed following Jones’s arrest on June 26, 2018.  The case is assigned to United States District Judge Gregory F. Van Tatenhove and is set for trial on August 21, 2018.  Jones faces a maximum sentence of 20 years imprisonment if convicted on the controlled substance offenses and 10 years if convicted of health care fraud.    
   
• United States v. Gary McPherson (6:18-cr-00031 E.D. Ky.):  Gary McPherson, a licensed pharmacist, is charged with theft of pre-retail medical products in violation of 18 U.S.C. § 670.  The charge stems from McPherson’s theft of pharmaceutical drugs from Kim’s Hometown Pharmacy in Williamsburg, Kentucky, in May 2018.   The Indictment was unsealed on June 26, 2018, and McPherson will appear in court on July 11, 2018, for arraignment.  The case is assigned to United States District Judge Gregory F. Van Tatenhove.  McPherson faces a maximum sentence of five years imprisonment if convicted.   
   
  The Medicare Fraud 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. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
   
  A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
   

 

LEXINGTON, Ky. – Fernando Rafael Lara Salas, age 40, who had previously used the aliases of Jesus Ruiz Vega, Francisco Garcia and Cristobal Palacios Garcia, was sentenced today, to 353 months in prison, by U.S. District Judge Danny C. Reeves.  In January, Lara Salas was tried and convicted of multiple offenses, including drug trafficking, firearms and immigration offenses.  His drug trafficking convictions included conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute more than five kilograms of cocaine, and possession with intent to distribute fentanyl, methamphetamine, and tramadol.  Lara Salas’ firearms convictions included possession of a firearm in furtherance of a drug-trafficking crime, possession of a firearm as a convicted felon, and possession of a firearm by an alien.  Lara Salas was also convicted of unlawfully re-entering the United States after previously being deported for a felony drug offense.

Two co-defendants in the case, Jorge De Jesus Macias Pedroza and Nestor Barron, were also convicted and previously sentenced by Judge Reeves, to terms respective terms of imprisonment of 188 and 120 months.  All three men will be required to serve 85% of their sentences.

The joint investigation by federal and state law enforcement into the drug trafficking activities of Lara Salas began in August 2016 and culminated with the execution of search warrants at Lara Salas’ residence in Lexington and a cargo trailer located in a remote location in Franklin County.  The search of Lara Salas’ home resulted in the seizure of 6 kilograms of cocaine, more than 50 grams of methamphetamine, a 9 mm firearm and $110,000 in U.S. currency.  Evidence found in the cargo trailer revealed that Lara Salas and others utilized the trailer for the preparation of fentanyl for distribution.  Agents located packaging material consistent with a kilogram quantity of a controlled substance.  The packaging contained a residual amount of fentanyl, an extremely potent opioid.  Also located in the trailer were five kilograms of tramadol, a Schedule IV controlled substance that is commonly used by drug traffickers as a cutting agent for fentanyl and heroin, and boxes of latex gloves.  The investigation was a cooperative effort led by investigators with the Drug Enforcement Administration (DEA); the Department of Homeland Security, Immigration and Customs Enforcement (ICE); and the Lexington Police Department.

“Without the outstanding work of our law enforcements partners, this prosecution would not have been possible.  Their efforts removed dangerous drugs from our streets, made our community safer, and saved lives.  Prosecuting those who sell drugs in our community will continue to be a core priority of our Office,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.   

United States Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Kristoffer Cortex, Acting Assistant Field Office Director, ICE; and Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police, jointly announced the sentence.

LEXINGTON, Ky.— Melvin Tremayne Mahone,  31, of Lexington, was sentenced to 15 years in federal prison by Chief United States District Judge  Karen Caldwell for Trafficking in more than 40 grams of Fentanyl and Possession of Firearms in Furtherance of Drug Trafficking.

On October 20, 2016, a search warrant was executed at Mahone’s residence, on American Avenue in Lexington.  During the arrest and search of Mahone, officers located approximately 60 grams of fentanyl concealed in his underwear.  Fentanyl can be lethal in the 2 milligram range.  In close proximity to Mahone were two loaded firearms.  Mahone has a prior federal felony conviction for drug trafficking.  Mahone pleaded guilty to the charges in March.

Under federal law, Mahone 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 8 years.

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

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

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.

LONDON, Ky. – A Middlesboro, Ky. resident was indicted yesterday on federal charges of attempted production of child pornography and receiving, distributing, and possessing child pornography.

A federal grand jury in London returned the four-count indictment against 30-year-old Jordan Ryan Turner, a teacher and assistant basketball coach at Bell County High School.  Turner was originally arrested on a state charge of using electronic means to induce a minor to engage in sexual activities.  A federal criminal complaint was filed against Turner and those charges were presented to the grand jury, which returned the indictment. 

Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Richard Sanders, Commissioner of Kentucky State Police, jointly announced the charges.

The KSP and FBI have jointly conducted the investigation. Assistant U.S. Attorney Greg Rosenberg represents the United States in the case.

Trial is currently scheduled for September 4, 2018.  If convicted on all counts, Turner faces a mandatory minimum of 15 years and maximum of 90 years in prison.  However, any sentence following a conviction would come after the Court considers the U.S. Sentencing Guidelines and relevant federal statutes.

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

 

ASHLAND, Ky. – The U.S. Attorney’s Office has filed a civil lawsuit against an Ashland addiction treatment specialist, Dr. Rose O. Uradu, and her substance abuse treatment center, Ultimate Care Medical Services, LLC d/b/a Ultimate Treatment Center, alleging that they defrauded the both Medicare and Medicaid programs, and that they violated the Controlled Substances Act.

The lawsuit alleges that the defendants sought and received payments from Medicare and Medicaid for services that were not actually provided to patients.  According to the complaint, between January 2013 and September 2014, defendants billed these government programs for “evaluation and management” services purportedly provided to patients who visited the clinic to receive daily methadone doses for their substance abuse treatment.  Evaluation and management services typically include performance of an examination of the patient, a patient history, and medical decision-making.  The complaint alleges that Ultimate Treatment Center did not perform these services when patients received their methadone doses, but billed Medicare and Medicaid for the services anyway.  According to the complaint, defendants falsely documented the performance of evaluation and management services in the patients’ medical records, including by electronically copying notes from one visit to the next – for days, weeks, and even months.

The complaint further alleges that during the period July 2013 to December 2014, defendants billed Medicare and Medicaid for complex urine drug testing that was not actually performed.

The lawsuit contends that billing for services not provided violates the False Claims Act.  If found liable, the defendants will have to repay Medicare and Medicaid three times the amount of the Government’s loss for the fraud, in addition to financial penalties of $5,500 to $11,000 per false claim.  According to the complaint, the Government’s loss exceeds $1 million. 

The lawsuit also alleges that, for a three-month period in 2014, Dr. Uradu issued buprenorphine prescriptions to twice as many patients as is permitted by law.  Buprenorphine is marketed under the brand names Suboxone and Subutex, and is used medically in the treatment of opioid addiction.  Because buprenorphine has the potential for diversion and abuse by recreational users, it is a controlled substance regulated by law.  According to the complaint, Dr. Uradu was only permitted to treat 100 patients with buprenorphine drug products, but repeatedly exceeded her patient limit.   Specifically, the complaint alleges that three months in a row, she wrote prescriptions for buprenorphine for more than 200 unique patients – twice her limit.  The complaint contends that Dr. Uradu violated the Controlled Substances Act each time she wrote a prescription over her limit.  Under that law, if found liable, Dr. Uradu is subject to a financial penalty of up to $25,000 for each violation. 

Finally, the complaint further alleges that during the period January 1, 2017 to April 28, 2017, Ultimate Treatment Center failed to maintain complete and accurate records of the clinic’s methadone and buprenorphine inventories, as is required by law.  According to the complaint, Ultimate Treatment Center’s records did not account for the equivalent of 45 bottles of methadone oral solution, and 22 bottles of buprenorphine tablets.  The complaint contends that Ultimate Treatment Center’s failure to keep accurate records violates the Controlled Substances Act.  Under that law, Ultimate Treatment Center is subject to a financial penalty of up to $10,000 for each recordkeeping violation.

The lawsuit is captioned United States v. Rose O. Uradu, M.D., et al., Civ. No. 18-66.  The investigation preceding the complaint was conducted by agents with the U.S. Drug Enforcement Administration, Federal Bureau of Investigation, and the Kentucky Attorney General’s Medicaid Fraud and Abuse Control Unit.  Assistant U.S. Attorney Christine Corndorf will represent the United States in this case.  

COVINGTON, Ky. – Joshua D. Jett, 34, formerly of Maysville, Kentucky, was sentenced today to 360 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute heroin and fentanyl causing death.

Jett pled guilty, in June 2017, and admitted that he conspired with Kristian Bellamy and others to distribute heroin and fentanyl during the summer of 2016, and that drugs they distributed through that conspiracy caused a death on August 1, 2016.  Jett and Bellamy regularly purchased what they believed to be heroin from Cincinnati and transported it back to Maysville, for use and distribution.  They sold the drugs to several users on August 1, 2016; one of them, Amanda Hill-Borgmann, overdosed – on what was determined to be heroin and fentanyl – and died.

Under federal law, Jett 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 5 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 (DEA), jointly announced the sentence.  The investigation was conducted by the DEA.  The United States was represented by Assistant United States Attorney Tony Bracke.

LONDON, Ky. – A federal grand jury in London, Kentucky, today returned a two-count indictment charging Brandon McIntosh, a former deputy of the Rockcastle County Sheriff’s Office, with violating the civil rights of an arrestee by using excessive force against him and then filing a false report to obstruct the investigation of that assault.

The indictment alleges that on Nov. 6, 2016, McIntosh assaulted P.D., an arrestee, using a dangerous weapon and resulting in bodily injury to P.D.  The indictment further alleges that McIntosh filed a report falsely stating that, as McIntosh approached P.D., P.D. became very combative and that McIntosh used the least amount of force to get P.D. under control. 

If convicted, McIntosh faces a maximum term of imprisonment of 10 years on the civil rights charge and twenty years on the obstruction charge.

An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.

The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Hydee Hawkins of the Eastern District of Kentucky and Trial Attorney Mary J. Hahn of the Civil Rights Division are prosecuting the case.

LEXINGTON, Ky. – A Lexington man, who previously admitted to being a felon in possession of a firearm, was sentenced today to 120 months in prison.  This term has also been ordered to run consecutively to pending state court sentences.           

Chief U.S. District Judge Karen K. Caldwell sentenced Antoine Lamar Burns, 36 years old, for unlawful possession of a firearm by a person convicted of a felony.           

Burns previously admitted that, beginning in June 2015 and continuing through October 2015, he possessed a Bersa .380 semiautomatic pistol, after having been convicted of a felony offense.  According to the plea agreement, Burns fired several shots at someone he suspected was cooperating with law enforcement, threatened and pointed the firearm at a former girlfriend, attempted to have his girlfriend make a false statement about ownership of the firearm, and attempted to hide the firearm in his girlfriend’s vehicle.  Burns pleaded guilty in February.           

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

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

The investigation was conducted by ATF and Lexington Police. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Ron L. Walker, Jr.

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.

COVINGTON, Ky. – A Cincinnati man was convicted today by a federal jury in Covington for conspiring to distribute carfentanil in the Boone County Jail Work Camp resulting in death.

After slightly under three hours of deliberations following a five day trial, the jury convicted 41 year old Johnny L. Shelton of conspiracy to distribute carfentanil resulting in death.           

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 deceased body in the work camp during the early morning hours of October 16, 2016.             

Shelton and others were indicted in March of 2017.  Two other members of the conspiracy, Chad Prodoehl and Gordon Wanser have been convicted in connection with this conspiracy.  Prodoehl was sentenced to 25 years in prison on May 29, 2018.  Wanser is still awaiting sentencing. 

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 announced the conviction.

The investigation was conducted by the DEA and the Boone County Sheriff’s Department.  The United States was represented by Assistant United States Attorneys Anthony Bracke and Wade Napier.

Shelton will appear for sentencing on October 18, 2018.  He faces a term of life imprisonment due to prior felony drug trafficking convictions.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.

SOMERSET, KY. – Federal, state and local law enforcement officials met yesterday in Somerset, to discuss initiatives of the U.S. Attorney’s Office and the Department of Justice that are designed to combat drug trafficking and violent crime.

Approximately 40 officials, including local prosecutors, police chiefs and sheriffs, met at the Center for Rural Development, to discuss current trends in drug trafficking and violent crime affecting the south central region of Kentucky.  Representatives from Appalachia High Intensity Drug Trafficking Area (AHIDTA) gave an intelligence briefing on the current trends.   

U.S. Attorney Robert M. Duncan, Jr., his executive staff, and members of federal law enforcement agencies, have been traveling across the Eastern District of Kentucky and meeting with local law enforcement to provide information on two major initiatives:  the Department’s Project Safe Neighborhoods Enforcement Initiative and the U.S. Attorney’s Opiate/Opioid Prosecution Initiative.  Attendees were given an overview of each initiative and provided tools, both to help them combat these problems on a local level and to develop appropriate cases for the prosecution of individuals under federal law.   

“Our goal is to establish and maintain partnerships with local and state law enforcement, in a joint effort to remove violent offenders from our communities,” said U.S. Attorney Robert M. Duncan, Jr.  “We also want to do our part in fighting the opioid epidemic, by providing tools to our local partners to assist in fighting the drug scourge impacting our communities.” 

This is the third such meeting conducted by U.S. Attorney Duncan and was hosted and organized by Chief William Hunt of the Somerset Police Department.  U.S. Attorney Duncan previously met with law enforcement partners in Ashland and Pikeville. 

LONDON, Ky., — Timothy Lawson, 31, of Manchester, Ky., was sentenced today, to  32 years in federal prison, by United States District Judge Claria Horn Boom, on counts of brandishing and discharging a firearm during a carjacking.

Lawson entered a guilty plea to the charges in November of last year.  According to the plea agreement, on July 21, 2016, Lawson unlawfully entered the residence and waited on the homeowner to return.  When the homeowner arrived, Lawson met her, brandished a stolen shotgun, and threatened to kill her if she did not give him the keys to her vehicle.  The homeowner complied and Lawson drove off in her vehicle.  A short time later, Lawson wrecked the stolen vehicle and a family who saw the wreck and stopped to render assistance.  Lawson then approached their vehicle, and again brandished the shotgun.  Lawson also discharged the shotgun, firing a shot over the top of the family’s vehicle.  Lawson ordered the family out of the vehicle, which he then stole.  Lawson subsequently fled from the police and was arrested several days later.   

Under federal law, Lawson 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; Stuart Lowrey, Special Agent In-Charge of the ATF; Richard Sanders, Commissioner of the Kentucky States Police; Chris Fultz, Chief of the Manchester Police Department; Kelly Shouse, Owsley County Sheriff; and Kevin Johnson, Clay County Sheriff, jointly announced the sentence.

The investigation was conducted by the ATF, the Kentucky State Police, the Manchester Police Department, the Owsley County Sheriff’s Office, and the Clay County Sheriff’s Office. The government 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. 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.

LONDON, Ky. — Donnie Garland, 52, of Corbin, Ky., was sentenced Tuesday to 30 years in federal prison, by United States District Court Judge Gregory F. Van Tatenhove, for distributing methamphetamine, possessing with intent to distribute 50 grams or more of a methamphetamine mixture, possessing a firearm in furtherance of his drug trafficking crimes, and possessing a firearm following a felony criminal conviction. 

A federal jury convicted Garland of these charges, following a two-day trial, in August of 2017.  During the trial, video evidence revealed that Garland sold methamphetamine, on five different occasions, and that he possessed firearms or had armed guards stationed outside of his location, during some of these sales.  Evidence in the case also included a search of Garland’s residence, which uncovered more than 150 grams of methamphetamine, more than120 grams of marijuana, nearly 700 pills, and 11 firearms.  This conviction represents the sixth time Garland has been convicted of a drug trafficking offense, which qualified him as an Armed Career Criminal under Federal law. 

Garland 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 8 years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge of the FBI Louisville Field Division; Richard Sanders, Kentucky State Police Commissioner; and Mike Smith, Knox County Sheriff, jointly made the announcement.  The United States was represented by Assistant United States Attorney Andrew H. Trimble.

LONDON, Ky.— Richard Walker, 33, of Manchester, Ky., was sentenced Tuesday to 16 years in federal prison, by United States District Court Judge Gregory F. Van Tatenhove, for conspiracy to distribute 500 grams or more of a methamphetamine mixture. 

Walker pleaded guilty to the charges in February of 2017.  During his guilty plea, Walker admitted that he had regularly obtained kilogram quantities of methamphetamine and sold it in Laurel County and Clay County, Kentucky.  These charges were related to the seizure of more than five pounds of methamphetamine from Walker, in May of 2016.  

Under federal law, Walker must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for 10 years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Chris Fultz, Manchester Police Chief, jointly made the announcement.  The United States Marshals Service and the Kentucky State Police also assisted in the investigation.  The United States was represented by Assistant United States Attorney Andrew H. Trimble.

LEXINGTON, Ky. – According to court records unsealed today, four men from Carlisle, Kentucky were indicted on June 6, 2018, for engaging in crop insurance fraud and money laundering-related offenses.           

A federal grand jury in Lexington returned a twenty-count indictment charging 34-year-old Bradley Price, 27-year-old Brandon Price, 57-year-old Jimmy Price, and 58-year-old Lonnie Brierly with multiple counts of making false statements to influence the Federal Crop Insurance Corporation (“FCIC”) and companies the FCIC reinsures; one count each of committing a conspiracy to commit an offense against the United States; and one count of conspiracy to commit money laundering.           

The indictment alleges that as early as 2009, the Prices and Brierly, all agricultural producers in Bourbon and Nicholas Counties, falsely understated their tobacco production to insurance companies, in order to claim damage to their crop and receive insurance indemnity payments to which they were not entitled.  These indemnity payments are funded by the federal government, through the FCIC.  For this conduct each defendant is charged with multiple counts of making false statements to influence the FCIC.  The indictment also charges each defendant with conspiracy to commit crop insurance fraud.  According to the indictment, the Prices and Brierly sold the tobacco they falsely claimed not to have produced, and, working with others, “hid” this production by making it appear as if the tobacco they sold had been purchased from Clay’s Tobacco Warehouse instead of produced on their respective farms. 

Finally, according to the Indictment, the Prices and Brierly conspired with each other and others to launder the proceeds of the sales of their hidden tobacco by funneling money through Farm Credit Mid-America, an agricultural lending cooperative, in violation of federal money laundering statutes.

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 the Prices and Brierly to appear in court has not yet been scheduled.  For each charge of making false statements to the FCIC, the Prices and Brierly face up to 30 years in prison and a fine of $1,000,000.  For the conspiracy to violate federal law charge, each faces up to 5 years in prison and a fine of $250,000.  For the remaining money laundering charge, each faces 20 years’ imprisonment and a $1,000,000 fine.  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.

 

Covington, Ky. — Ronald Barnett Hill, 49, of Ft. Mitchell, Kentucky, was sentenced today to 30 months in federal prison by United States District Judge David Bunning for embezzling $248,000 from his wife’s employee benefit plan. 

Hill previously admitted that, in January, July and November 2013 he withdrew a total of $248,000 from a 401(k) account belonging to his wife.  The 401(k) account was part of a defined contribution pension plan subject to Title I of the Employee Retirement Income Security Act of 1974.  Hill owned and operated TPS Solutions, a corporation located in Kenton County, and as such was a fiduciary of the 401(k) funds held in accounts of its employees, including his wife.  Hill stole nearly all of the money in his wife’s account by fraudulently completing a hardship withdrawal form, forging his wife’s signature, and signing the form as the Trustee authorized to complete the withdrawal.  Hill pleaded guilty to the charges in March 2018.         

Under federal law, Hill must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office. 

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

The investigation was conducted by the Federal Bureau of Investigation and the United States Department of Labor, Employee Benefits Security Administration.  The United States was represented by former Assistant United States Attorney Robert K. McBride and Assistant United States Attorney Wade T. Napier.

Largest Increase in AUSAs in Decades Allocates Two Prosecutors to the Eastern District of Kentucky to Focus on Violent Crime and Civil Enforcement

 

LEXINGTON, Ky. – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky, announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, increase civil enforcement efforts, and help roll back the devastating opioid crisis.

In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas.  Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.  The Eastern District of Kentucky will receive two of the positions.

“Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions.  "We have a saying in my office that a new federal prosecutor is ‘the coin of the realm.’  When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed.  I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher.  These exceptional and talented prosecutors are key leaders in our crime fighting partnership.  This addition of new Assistant U.S. Attorney positions represents the largest increase in decades."

In the Eastern District of Kentucky, one of these AUSAs will focus on prosecuting violent crime cases.  “President Trump and Attorney General Sessions have prioritized reducing violent crime, through investigation and prosecution of the ‘worst of the worst’ offenders.  With this new position, we intend to do just that,” stated U.S. Attorney Duncan.  “The new violent crime AUSA will work with our federal, state, and local partners to help protect the public and keep our communities safe and will prosecute cases arising from the Project Safe Neighborhoods initiative, a multi-agency partnership aimed at reducing violent crime and gun violence.”

The other AUSA position will focus on conducting affirmative civil enforcement actions, including bringing actions against medical professionals for over prescribing opioids and submitting fraudulent claims for reimbursement to the federal government.  “As directed by Attorney General Sessions, we will use every available tool, including through the use of civil enforcement measures, to stop the spread of the opioid epidemic,” stated U.S. Attorney Duncan.  “This new civil enforcement AUSA position will add to an already productive affirmative civil enforcement practice.”

To see more information on the locations of the 311 Assistant United States Attorney positions click here. 

 

LONDON, Ky. — William Timothy Sutton, 55, of Corbin, Ky., was sentenced today to 360 months in federal prison, by United States District Court Judge Gregory VanTatenhove, on four counts of interstate murder-for-hire and one count of possession of firearms by a convicted felon.  

Sutton was found guilty by a federal jury in January of this year. The evidence at trial established that, in March of 2017, while incarcerated in the Whitley County Detention Center, Sutton offered to pay a fellow inmate to murder the Whitley County Attorney, the Whitley/McCreary County Commonwealth’s Attorney, and two ex-girlfriends.  The evidence further established that Sutton mailed a letter to a relative from jail, asking the relative to provide the would-be hitman with one of Sutton’s own firearms to further the scheme.  Law enforcement became aware of the plan, interceded, and ultimately arrested Sutton.

“The sentence imposed illustrates the seriousness of the offense,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.  “Through his abhorrent actions, the defendant victimized four people and attempted to undermine the sanctity of the judicial process and the rule of law.” “Protecting the public from violence and ensuring the integrity of our system of justice are core principles of the Department of Justice and central priorities of our Office.  In our efforts to make our community safer, we will continue to confront and prosecute criminal conduct that undermines these principles.” 

“I want to commend the work of our valued law enforcement partners, whose efforts made this prosecution possible. Their work on this investigation thwarted a significant threat to the victims’ safety and to the integrity of our judicial system.” 

“ATF is committed to working with our law enforcement partners to protect citizens from those who threaten public safety through violent criminal behavior,” stated Stuart L. Lowrey, Special Agent In-charge, ATF Louisville Division. Defendant Sutton is a convicted felon who illegally possessed a firearm and threatened the lives of public servants committed to keeping our communities safe.  We support today’s lengthy sentence as a deterrent to this criminal behavior.”

Under federal law, Sutton 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.

United States Attorney Duncan; Stuart L. Lowrey, Special Agent In-Charge, ATF; and Commissioner Rick Sanders of the Kentucky State Police, jointly announced the sentence.

The ATF, the Kentucky State Police, and the Whitley County Detention Center conducted the investigation.  Assistant United States Attorney W. Samuel Dotson 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.

          PIKEVILLE, Ky. – Yesterday, in proceedings at the U.S. District Court in Pikeville, Chief Judge Karen K. Caldwell sentenced the following defendants for drug trafficking and firearms convictions, in three separate cases.

Jeffrey Isaac, 61, of Melvin, Ky., was sentenced to 12 years’ imprisonment, and 3 years of supervised release, after he was convicted by a jury of conspiring to distribute oxycodone pills and possessing a firearm in furtherance of a drug trafficking crime.  The proof at trial established that Isaac was a leader of the drug trafficking conspiracy. 

Leroy Little, 67, of  Pike County, Ky., was sentenced to 10 years’ imprisonment, and 3 years of supervised release, after pleading guilty to conspiring to distribute 5 kilograms or more of cocaine. 

Brandy Watts, 35, of Fisty, Ky., was sentenced to just over 3 years’ imprisonment, and 3 years of supervised release, after she pleaded guilty to being a felon in possession of a firearm.  Watts and her boyfriend, Justin Slone, were found in possession of several schedule II controlled substances and multiple firearms.  Slone was previously convicted and sentenced.  

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; and Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police, jointly announced the sentences.

The cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  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, local strategies to reduce violent crime.

COVINGTON, Ky., — Chad H. Prodoehl, 35, of Independence, Ky., was sentenced today, to 300 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute carfentanil resulting in death.

Prodoehl was convicted in December 2017, following a three-day trial.  The evidence at trial established that, while he was an inmate at the Boone County Jail work camp, in Burlington, Ky., Prodoehl conspired with others to smuggle drugs into the work camp.  Prodoehl was permitted to leave the camp on work release; and on October 15, 2016, he brought drugs, including carfentanil, back to the camp and distributed them.  Several inmates used the drugs and one inmate, Timothy Marcum, overdosed and died as a result.

Under federal law, Prodoehl 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 (DEA), jointly made the announcement. 

The investigation was conducted jointly by the DEA and Boone County Sheriff’s Department.  The United States was represented by Assistant United States Attorneys Elaine K. Leonhard and Anthony J. Bracke.

 

LEXINGTON, Ky. – A Cabot, Arkansas man, who previously admitted paying hundreds of thousands of dollars in bribes to receive millions of dollars of construction work, was sentenced today to 27 months in prison.

U.S. District Court Judge Danny C. Reeves sentenced 50-year-old Rocky Williams for the crime of conspiracy to commit honest services fraud.           

Williams previously admitted that he conspired with James Newton, an employee at Saint Joseph Hospital in Lexington, Kentucky, between 2009 and 2012.  Williams admitted that he paid over $500,000 in bribes to Newton, concealing them as payments of credit card and fuel bills, vehicle and rent payments, and gifts such as a motorcycle, an all-terrain vehicle, vacations, golf club memberships, a pool table, furniture, and home furnishings.  In exchange, Newton, the Executive Director of Facilities responsible for assigning Saint Joseph Hospital’s general contracting work, steered over $8,000,000 of construction jobs to Williams’s company, ZaneRock Construction.

Williams pleaded guilty to conspiracy to defraud Saint Joseph Hospital, on December 17, 2017.  Newton, 52-years-old and most recently living in Pace, Florida, had previously pleaded guilty to the same charge, on September 15, 2017.  Williams and Newton were both given sentences of 27 months in federal prison, and both will share responsibility for repaying $532,660 in restitution to Saint Joseph Hospital.  Williams will report to prison on August 27, 2018.  Newton began his prison sentence on March 12, 2018.

Under federal law, Williams and Newton must serve 85 percent of their prison sentences; and upon their release, they will both be under the supervision of the U.S. Probation Office for three additional years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, Federal Bureau Investigation, jointly announced the sentence.  The investigation was conducted by the FBI.  The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Neeraj Gupta.

COVINGTON, Ky. – Garret Gadd, 45, of Walton, Kentucky, was sentenced today to 264 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute methamphetamine.

Gadd pled guilty, in February 2018, and admitted that he conspired with others to distribute more than 150 grams of crystal methamphetamine.  Gadd had multiple prior felony convictions relating to methamphetamine distribution.  A codefendant, Regina Gripshover, was sentenced to 46 months, in March.  

Under federal law, Gadd 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 ten 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 Northern Kentucky Drug Strike Force and the Drug Enforcement Administration.  The United States was represented by Assistant United States Attorney Tony Bracke.

COVINGTON, Ky. – Frederick D. Lewis, 38, of Newport, Kentucky, was sentenced today to 150 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute heroin and fentanyl.

Lewis pled guilty, in February 2018, and admitted that he led a conspiracy of five or more people responsible for distributing more than 100 grams of heroin and more than 160 grams of fentanyl.  Lewis was on federal supervised release, for a 2011 conviction for conspiracy to distribute crack cocaine, when he committed his new offense.  The 150-month prison term includes a sentence of 30 months for violation of the terms of his supervised release. 

Under federal law, Lewis 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 ten 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 Robert Nader, Chief of the Covington Police Department, jointly made the announcement. 

The investigation was conducted by the Covington Police Department and the Federal Bureau of Investigation’s Safe Streets Task Force.  The United States was represented by Assistant United States Attorney Tony Bracke.

PIKEVILLE, Ky. – Former Kentucky State Representative Wendell Keith Hall, 58, of Pikeville, was sentenced today to two years in prison, by Chief United States District Judge Karen K. Caldwell, for Aggravated Identity Theft.  Judge Caldwell ordered that the sentence run consecutively, as required by law, to the 84-month prison sentence Hall is already serving for his 2015 conviction on bribery-related charges.  In the bribery case, Hall, who owned coal mines and various coal industry-related businesses, was convicted by a Federal jury of paying a state mine reclamation inspector for favorable inspections and other favors related to the inspector’s job. 

In February of this year, pursuant to a plea agreement, Hall pleaded guilty to one count of another, six-count indictment.  The Aggravated Identity Theft offense was committed while Hall was pending trial and sentencing in the earlier case.  The charge arose from Hall’s submission of fake documents to certify to another company, with which he had business contracts, that he had the required worker’s compensation and liability insurance coverage.   Hall admitted that he caused the fake documents to be created and that they bore the forged name of an insurance executive, which was the basis of the identity theft charge.   

Under federal law, Hall 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 to run concurrently with his other supervised release.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, Federal Bureau Investigation, jointly made the announcement.

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

WASHINGTON – The former Treasurer of Jackson County, Kentucky was indicted today for stealing over $160,000 from the Jackson County government and misusing the identities of two other Jackson County employees to facilitate her thefts.  Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky, Special Agent in Charge Amy Hess of the FBI’s Louisville, Kentucky Field Division and Richard Sanders, Commissioner of the Kentucky State Police, made the announcement. 

Beth N. Sallee, 37, of McKee, Kentucky, was charged in a 10-count indictment with four counts of wire fraud, four counts of theft from a program receiving federal funds, and two counts of aggravated identity theft.  A date for Sallee to appear in court has not yet been scheduled.  

The indictment alleges that Sallee misused her position to write a number of checks payable to herself without the approval of the Jackson County Fiscal Court.  Sallee allegedly deposited these checks into her own personal checking account or for cash.  Over time, those unauthorized checks totaled approximately $161,808.23.  To enable her scheme, Sallee allegedly forged the signatures of at least two other Jackson County employees on the checks, and later attempted to conceal her scheme by removing pages of Jackson County financial documents, obscuring page numbers with whiteout, and requesting the removal of check images from bank statements that were to be given to an auditor. 

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

Any indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The former Treasurer of Jackson County, Kentucky was indicted today for stealing over $160,000 from the Jackson County government and misusing the identities of two other Jackson County employees to facilitate her thefts.  Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky, Special Agent in Charge Amy Hess of the FBI’s Louisville, Kentucky Field Division and Richard Sanders, Commissioner of the Kentucky State Police, made the announcement.  

Beth N. Sallee, 37, of McKee, Kentucky, was charged in a 10-count indictment with four counts of wire fraud, four counts of theft from a program receiving federal funds, and two counts of aggravated identity theft.  A date for Sallee to appear in court has not yet been scheduled.   

The indictment alleges that Sallee misused her position to write a number of checks payable to herself without the approval of the Jackson County Fiscal Court.  Sallee allegedly deposited these checks into her own personal checking account or for cash.  Over time, those unauthorized checks totaled approximately $161,808.23.  To enable her scheme, Sallee allegedly forged the signatures of at least two other Jackson County employees on the checks, and later attempted to conceal her scheme by removing pages of Jackson County financial documents, obscuring page numbers with whiteout, and requesting the removal of check images from bank statements that were to be given to an auditor.  

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

Any indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

LEXINGTON, Ky. – Two Mexican National men residing in Louisville, Kentucky were convicted of conspiracy to distribute five kilograms or more of cocaine, after a three-day jury trial that concluded yesterday in the U.S. District Court in Lexington.  Imanol Pineda Penaloza, 37, and Efrain Villa Villanueva, 24, were both found guilty of all charges.  A third defendant, Sergio Aguilar Piedra, 25, had previously entered a guilty plea to the same drug-trafficking charge.

The proof at trial established that all three men participated in the conspiracy, which lasted 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.  And, during 2016 and 2017, the defendants continued to distribute kilogram quantities of cocaine and other drugs, in Louisville, Kentucky.

Pineda and Villa are both scheduled to be sentenced by Judge Danny C. Reeves on August 24, 2018.  Piedra is scheduled to be sentenced on August 17, 2018.  Each man faces a minimum of 10 years in prison and up to life imprisonment.

“The jury found that the defendants distributed significant quantities of cocaine over a three-year period, and they now will face significant punishment for their criminality,” stated United States Attorney Robert M. Duncan, Jr.  “I want to commend law enforcement for their work on this investigation.  As a result of strong law enforcement cooperation and partnerships among federal and local law enforcement, the community has been made safer and these defendants are being held accountable.”     

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; and Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police, jointly announced the verdict.

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, local strategies to reduce violent crime.

LEXINGTON, Ky. – On Friday, a Mexican National, Hector Salas-Pina, 40, was sentenced to 127 months in federal prison.  United States District Judge Danny C. Reeves sentenced Salas-Pina for conspiracy and possession with the intent to distribute cocaine and unlawful re-entry into the United States, after a previous deportation for an aggravated felony.

Salas-Pina was tried and convicted of the drug charges, in February of this year.  The evidence at trial established that Salas-Pina obtained six kilograms of cocaine, from other individuals who had concealed it in the axles of a trailer.  Salas-Pina drove a vehicle and the trailer to Lexington, to be delivered to a cocaine dealer for sale in Lexington.  On May 17, 2017, members of the Lexington Police Department, in conjunction with the FBI and KSP, made a stop of the vehicle and trailer and subsequently located the cocaine.  The street value of the cocaine is approximately $600,000.  Following the trial, Salas-Pina entered a guilty plea to re-entry charge.

Under federal law, Salas- Pina must serve 85 percent of his prison sentence; and upon release, he will be deported from the United States. 

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, FBI; Kristoffer Cortez, Acting Assistant Field Office Director , Department of Homeland Security, U.S. Immigration and Customs Enforcement; Richard Sanders, Commissioner of the Kentucky State Police: and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.

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

 FBI Releases 2017 Statistics on Law Enforcement Officers Killed and Assaulted
 

LEXINGTON, Ky. – Attorney General Sessions and Robert M. Duncan, Jr., the U.S. Attorney for the Eastern District of Kentucky, , will recognize the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week and comment on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.

U.S. Attorney Duncan will be giving the keynote address at the Northern Kentucky Police Officers Memorial Service, at the Northern Kentucky Officers Memorial site in Covington, Kentucky, on May 16th at 7:00 p.m.  Several other events are scheduled throughout the area, to include the Kentucky State Police Memorial Service, on May 21st at 6:00 p.m. in Frankfort, and the Kentucky Law Enforcement Memorial Service, in Richmond on May 24th at 11:00 a.m.  Many local communities will also honor their fallen officers.

 “One officer death is too many,” Attorney General Sessions said.  “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high.  At the Department of Justice, we honor the memories of the fallen and we pray for their families.  We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us.  As always, we have their backs and they have our thanks.”

“National Police Week offers us the opportunity to reflect about all the men and women in law enforcement who lost their lives in service to their communities, including those who made the ultimate sacrifice here, in our District,” stated U.S. Attorney Duncan.  “National Police Week is also a chance for us to publicly thank our law enforcement partners in the Commonwealth of Kentucky for all they do for us.  These brave men and women daily protect the public and uphold the rule of law.  We support their efforts and are committed to helping them reduce violent crime and the drug epidemic.  Please join me in offering thanks to law enforcement officers across the Commonwealth for their service.” 

According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016, when 118 law enforcement officers were killed in line-of-duty incidents.

Additionally, in 2017, there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officers were killed in line-of-duty incidents as a result of felonious acts.

For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today.

In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day, to honor law enforcement officers killed or disabled in the line of duty.  The resolution also created National Police Week, as an annual tribute to law enforcement service and sacrifice.  

During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty, and commitment in keeping our communities safe.

The list of names of all 93 fallen officers nationwide was formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018.  For more information about other National Police Week events, please visit www.policeweek.org.

To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.

LEXINGTON, Ky. — Timothy Harris, of Louisville, Ky., was sentenced Friday evening to 40 years in federal prison, by United States District Judge Danny C. Reeves, for conspiracy to distribute heroin and methamphetamine. 

Between 2015 and 2016, Harris imported heroin and methamphetamine into Pulaski County, Kentucky, to supply other drug dealers and users in the area.  Harris used the same pipeline to transport firearms from Somerset to Louisville.  Evidence in the case revealed that Harris routinely carried a firearm to protect his drug trafficking activity and also attempted and to hire a hit-man to kill local individuals. In June of 2016, law enforcement found Harris in possession of approximately three pounds of methamphetamine.  Harris pled guilty in December of 2017.

Others conspiring with Harris, to transport methamphetamine, heroin, or firearms between Somerset and Louisville, have also recently been sentenced.  They include Maurice Sydnor (240 months), Paul Dupree (168 months), Christopher Glover (102 months), Joseph Epperson (100 months), Cathy Jose (48 months), and Natasha Marcum (36 months). 

Under federal law, Harris and his co-conspirators must serve 85 percent of their respective prison sentences; and upon release, they will be under the supervision of the United States Probation Office. 

“I want to commend the efforts of all the law enforcement agencies involved in this important case,” stated United States Attorney Robert M. Duncan, Jr.  “Because of cooperation and strong partnerships, several dangerous individuals were removed from southeastern Kentucky, and our communities have been made safer. The lengthy sentences imposed send a clear message that drug trafficking, threats of violence, or illegal possession of weapons will not be tolerated in this District.”   

United States Attorney Duncan; Stuart Lowrey, Special Agent in Charge of ATF, Louisville Field Division; Richard Sanders, Kentucky State Police Commissioner; and Greg Speck, Pulaski County Sheriff, jointly made the announcement.  The Lake Cumberland Area Drug Task Force, Louisville Metropolitan Police Department, and the Kentucky State Police Drug Enforcement Special Investigations East and West Sections also assisted in the investigation.   Assistant United States Attorney Andrew H. Trimble 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 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.

LEXINGTON, Ky. – Isaac Basilio Rosas, 33, of Los Angeles, was sentenced to 9 years in federal prison, by Chief United States District Judge Karen K. Caldwell, for conspiracy to transport at least five kilograms of cocaine.

Basilio previously admitted that, on April 21, 2017, he and three other passengers transported approximately 80 bricks of cocaine from Van Nuys Airport in Southern California to Bluegrass Airport in Lexington, on a private plane. Each brick weighed approximately a kilogram.  Basilio pleaded guilty to the charges in January 2018.  Two other passengers of the plane, Robert Carlson and Cedric Fajardo, have also pleaded guilty and are awaiting sentencing.

Under federal law, Basilio must serve 85 percent of his prison sentence.  Basilio is a Mexican National and will be deported from the United States after completing his sentence.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; and Steven L. Igyarto, Resident Agent in Charge, Department of Homeland Security, Homeland Security Investigations; and Richard Sanders, Commissioner of the Kentucky State Police, jointly made the announcement.

The Department of Homeland Security and the Kentucky State Police conducted the investigation.  Assistant United States Attorney Dmitriy Slavin represented the United States.

LEXINGTON, Ky. – Bryan Kenneth McCloud, 35, formerly of Dayton, Ohio, was sentenced today to 192 months in federal prison, by United States District Judge David L. Bunning, for drug distribution and weapons offenses.

McCloud pled guilty in October 2017 and admitted that he possessed approximately 20 grams of crystal methamphetamine, with the intent to sell it.  McCloud also admitted that he possessed two firearms, including an AK-47 rifle, in furtherance of his drug trafficking.  McCloud was arrested in Newport, Kentucky, at the conclusion of a high-speed chase that ended when he crashed his vehicle into a residence.  McCloud had four prior robbery convictions in his criminal record. 

Under federal law, McCloud 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 10 years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.  The Bellevue Police Department and the Federal Bureau of Investigation’s Safe Streets Task Force conducted the investigation.  Assistant United States Attorney Tony Bracke 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 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.

LEXINGTON, Ky. – A Cincinnati physician, who was convicted of illegally distributing oxycodone pills, was sentenced yesterday to 60 months in federal prison and a fine of $500,000.

Chief U.S. District Judge Karen K. Caldwell sentenced 61 year old Alan Arnold Godofsky for illegally distributing large quantities of oxycodone pills, outside the scope of professional practice and not for a legitimate medical purpose.           

Testimony at his trial revealed that Godofsky was hired as a locum tenens physician at the Central Kentucky Bariatric and Pain Management clinic in Georgetown, where he wrote prescriptions for primarily oxycodone pills. According to testimony at trial, Godofsky conducted minimal exams, spending very little time with patients (some who were cooperating witnesses for the government) before prescribing large quantities of oxycodone pills.  During his relatively brief employment at the clinic, Godofsky prescribed in excess of 500,000 oxycodone pills.

A federal jury found Godofsky guilty of the charges in October 2017.           

The owner of the clinic, Ernest William Singleton, was previously convicted of conspiring to illegally distribute oxycodone and money laundering offenses and three other physicians from the clinic also entered guilty pleas, for illegally distributing oxycodone pills while at the clinic.  

“The Defendant’s conduct was a severe breach of the trust of his legitimate medical duty,” stated United States Attorney Robert M. Duncan, Jr.  “His sentence should serve as a deterrent for other medical professionals who put greed over patient care and help fuel the opiate crisis through their unlawful actions.”   

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

United States Attorney Duncan, and D. Christopher Evans, Special Agent in Charge, DEA, jointly announced the sentence.

The Drug Enforcement Administration conducted the investigation with assistance from the Kentucky State Police, Kentucky Board of Medical Licensure and the Kentucky Board of Pharmacy. Assistant U.S. Attorney Ron L. Walker, Jr. represented the United States.

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 law enforcement agencies, in their National Prescription Drug Take Back Day, Saturday, April 28th, from 10 a.m. to 2 p.m.  The DEA and local agencies will be providing the public its 15th 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 sites:

          Lexington - Kentucky American Water, 2300 Richmond Rd.

          Cynthiana – Harrison County Sheriff’s Office, 113 W. Pike St.

          Danville – City Hall, 445 W. Main St.

          Frankfort – Franklin County Health Department, 851 East-West Connector            

          Harrodsburg – Mercer County Sheriff’s Office, 207 W. Lexington St.

          Midway – Midway City Hall, 101 E. Main St.

          Nicholasville – Walmart, 1024 N. Main St.

          Paris – Walmart, 305 Letton Dr.

          Richmond – Kentucky State Police Post 7, 699 Eastern Bypass

          Winchester – Winchester Police Department, 16 S. Maple St.

          Versailles – Kroger, 212 Kroger Way

The DEA cannot accept liquids, needles, or sharps, only pills or patches.  The service is free and anonymous, no questions asked.

Last fall Americans turned in 456 tons (912,000 pounds) of prescription drugs at more than 5,300 sites operated by the DEA and almost 4,300 of its state and local law enforcement partners.  Overall, in its 14 previous Take Back events, DEA and its partners have taken in more than 9 million pounds—more than 4,500 tons—of pills.

“Four out five heroin addicts begin their downward spiral by abusing prescription opiates.  More often than not, the family medicine cabinet becomes the most readily available source for these drugs.  Twice each year the men and women of DEA, joined by our state and local partners in law enforcement, provide an opportunity for the public to safely dispose of their unwanted or unused prescription medication.   Please join in our fight, by participating in the Drug Take Back Day on April 28th, and help make a difference in your community,” stated D. Christopher Evans, Special Agent in Charge of the Louisville Field Division of the DEA.

This initiative addresses a vital public safety and public health issue.  Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.  The Substance Abuse and Mental Health Services Administration’s National Survey on Drug Use and Health shows year after year that the majority of misused and abused prescription drugs are obtained from family and friends, including someone else’s medication being stolen from the home medicine cabinet.

“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 unwanted pills, you can help stop a loved one from getting started misusing or abusing prescription drugs.”      

For more information about the disposal of prescription drugs or about the April 28 Take Back Day event, go to www.DEATakeBack.com

LEXINGTON, Ky. – George S. Hofmeister, 65, formerly of Lexington, was sentenced today to 41 months in federal prison, by Chief United States District Judge Karen K. Caldwell, for pension plan theft and money laundering. 

Hofmeister previously admitted that he embezzled money from the Hillsdale Hourly and Salaried Pension Plans.  Hofmeister was the Trustee of the Plans at the time.  Hofmeister also admitted that Plans’ assets were diverted for the benefit of his companies and his family’s trusts.  Hofmeister pleaded guilty to the charges in October 2017.  

Under federal law, Hofmeister 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 L. Joe Rivers, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration (EBSA), jointly made the announcement.  “Employer sponsored retirement plans serve a vital role in providing a financially secure retirement for American workers,” said Director Rivers.  “This case underscores EBSA’s commitment to pursing any individual who would divert these funds for their own enrichment.”

The investigation was conducted by the Department of Labor’s EBSA and Office of Inspector General and the Internal Revenue Service.  The United States was represented by Assistant United States Attorney Elaine K. Leonhard and former Assistant United States Attorney Robert K. McBride.

LEXINGTON, Ky. – Robert M. Duncan, Jr., the U.S. Attorney for the Eastern District of Kentucky, has announced changes to the leadership team for his Office.  The changes include creating an Executive Assistant United States Attorney position, promoting a new Criminal Chief, and replacing the manager of Ft. Mitchell Branch Office.      

“I believe the changes I am announcing will help the Office continue to be successful and strong,” stated U.S. Attorney Duncan.  “I am grateful for the opportunity to lead such an outstanding Office, with such dedicated public servants who are committed to the mission of justice.  I especially want to thank the men and women listed below who have agreed to help me serve in leadership of the Office.  I am confident that the leadership team will help me execute the priorities of the Department of Justice and continue to be of service to the citizens of the Eastern District of Kentucky.”   

The changes listed below became effective on April 18, 2018.

Carlton S. Shier, IV – First Assistant United States Attorney

 Mr. Shier will continue to serve as the First Assistant United States Attorney.  He has served as the First Assistant U.S. Attorney since April of 2013 and served as the Acting U.S. Attorney from January to November of 2017.  As First Assistant, Mr. Shier will continue to serve as second in command and act as United States Attorney in the absence of U.S. Attorney Duncan.  In addition to his executive duties, Mr. Shier will directly supervise the Administrative Division, Civil Division, the Community Relations functions, and the Litigation Support Unit. 

Effective April 27, 2018, Mr. Shier will also serve as Acting Administrative Officer, until a new Administrative Officer is selected.  Rhonda Trent, the current Administrative Officer, will retire on April 27, 2018, after more than 30 years of service with the government.    

Mr. Shier joined the USAO in 2010, as the Chief of the Civil Division.  Prior to joining the office, he served as the Deputy General Counsel for Kentucky’s health services agency, the Cabinet of Health and Family Services.  He has also served as a state court prosecutor, both with the Kentucky Attorney General’s Office and the Fayette County Attorney’s Office, and worked in the private practice of law in Lexington.  Mr. Shier received a J.D., in 1997, and an M.S., in Justice Administration, in 1994, from the University of Louisville.  He received his undergraduate degree from Centre College, in 1992.

“I am very appreciative of Carlton’s assistance to me as I have transitioned to the job of U.S. Attorney,” stated U.S. Attorney Duncan.  “Carlton has provided me with good advice, which I have, and will continue to rely on.  Carlton has a wealth of experience, from serving as both the First Assistant and as the Acting U.S. Attorney.  He is well respected for his legal skills and good judgment, and he is also a skilled administrator.  I appreciate very much his willingness to take on expanded responsibilities and for his continued service to the Office.” 

Kevin C. Dicken – Executive Assistant United States Attorney

Mr. Dicken will serve as the Executive Assistant United States Attorney.  As part of his executive duties, he will directly supervise the Office’s Criminal Division, Fraud Division, Appellate Division, and two Branch Offices, in Ft. Mitchell and London.  Mr. Dicken will also be involved in the District’s effort to reduce violent crime through the Project Safe Neighborhoods program.  Since 2010, Mr. Dicken has served as the Criminal Chief.  Prior to becoming Criminal Chief, Mr. Dicken served as Deputy Criminal Chief, supervising narcotics and white-collar crime, from 2007 to 2010.  From 1998 to 2007, Mr. Dicken served as the Lead OCDETF Attorney.  He joined the Office in 1995; and from then until 1998, he worked in the Office’s General Crimes Unit. 

Prior to joining the Office, Mr. Dicken served from 1987 to 1995 as a law clerk for two magistrate judges, in the Eastern District of Kentucky:  the Honorable James Cook and the Honorable James Todd.  Mr. Dicken graduated from the University of Kentucky College of Law in 1986 and from Alma College, in Michigan, in 1983.   

“Kevin is a skilled litigator and supervisor, and a respected leader within the Office,” stated U.S. Attorney Duncan.  “Kevin’s background and expertise make him especially well-suited for this new role.  I have relied on his advice throughout my career, and will continue to do so.  I am excited for him and our Office, and appreciate very much his willingness to continue to serve in leadership.”   

Ron L. Walker Jr. – Chief of the Criminal Division

Mr. Walker will serve as the Chief of the Criminal Division.  Mr. Walker has served as an Assistant United States Attorney (AUSA) since 1999, and previously served as the Deputy Criminal Chief and Lead Attorney for the OCDETF program.  He is formerly a partner in the law firm of Brooks & Fitzpatrick, practicing in the areas of education law, family law, civil rights, constitutional rights, personal injury, criminal law, probate law, and litigation.  Mr. Walker served as law clerk for Hon. George E. Barker, Judge, Fayette Circuit Court from 1987-1988.  He is a 1984 graduate of Furman University and he received his J.D. from the University of Kentucky College of Law, in 1987.

“Ron is a talented and respected prosecutor, both inside and outside the Office,” stated U.S. Attorney Duncan.  “He has served for several years with distinction as Deputy Criminal Chief, and I believe his transition to the role of Criminal Chief will be seamless.” 

Paul McCaffrey – Chief of the Fraud Division

Mr. McCaffrey will continue to serve as Chief of the Fraud Division, a hybrid unit comprised of white-collar criminal AUSAs, Affirmative Civil Enforcement AUSAs, and associated support staff.  Mr. McCaffrey joined the United States Attorney’s Office in February 2010, from private practice with an international law firm, and previously served as Deputy Chief of the Fraud Division and as Chief of the Civil Division.  In 2016, Mr. McCaffrey won an EOUSA Director’s Award, for Superior Performance as a Civil AUSA, for his work on a $40.9 million False Claims Act settlement involving unnecessary cardiac stents.  He is a graduate of the University of Kentucky and Washington University School of Law.

Christine Corndorf - Deputy Chief of the Fraud Division

Mrs. Corndorf will continue to serve as the Deputy Chief of the Fraud Division.  She will also supervise the Office’s Litigation Support Unit.  Mrs. Corndorf is responsible for supervising and handling affirmative civil matters, including those that arise under the False Claims Act, Controlled Substances Act, and civil rights statutes.  In her role as supervisor of the Office’s Litigation Support Unit, she oversees litigation support functions and leads the effort to manage the office’s discovery workflow.  Mrs. Corndorf is a member of the EOUSA eLitigation Working Group, through which she serves as a mentor to other offices across the country on eLitigation issues.   Prior to joining the U.S. Attorney’s Office, she worked in private practice at Simpson Thacher & Bartlett, in New York City, and at Fultz Maddox & Dickens, in Louisville, where she handled complex commercial litigation and internal investigations.  Earlier in her career, she served as a law clerk for the Hon. Faith S. Hochberg in the District of New Jersey.  She is a graduate of Dartmouth College and Stanford Law School.

Lee Gentry - Chief of the Civil Division

Mr. Gentry will continue to serve as the Chief of the Civil Division.  He has been an AUSA for 26 years and has done criminal prosecutions and defensive civil litigation, asset forfeiture, and financial litigation.  Mr. Gentry previously served as the branch supervisor of the London, Kentucky office and as Chief of the Civil Division.  Prior to coming to the Office, he was in private practice and served as a part-time Assistant Commonwealth Attorney.  Mr. Gentry is a retired 22-year veteran of the Army National Guard, where he served as a JAG officer and on active duty during the Iraq War.

Charles P. Wisdom Jr. – Chief of the Appellate Division  

 Mr. Wisdom will continue to serve as the Chief of the Appellate Division.  He joined our Office in 1991; and since 1998, he has supervised the Office’s appellate practice.  He served on an appellate working group, under the direction of the Attorney General’s Advisory Committee, from 2002 to 2009 and helped develop the Department of Justice’s appellate standards for United States Attorney’s Offices.  Mr. Wisdom is a graduate of the University of Louisville School of Law and a former law clerk for the late U.S. District Judge, the Hon. Charles M. Allen. 

Jason Parman – Branch Manager of the London Office

Mr. Parman will continue to serve as the Branch Manager of the London Branch Office.  He has been an AUSA for ten years and has served as the London branch manager since 2013.  Mr. Parman graduated from Eastern Kentucky University, with a degree in police administration, and from the University of Kentucky College of Law.  Prior to joining the Office, Mr. Parman worked as a criminal defense lawyer in both federal and state court, before serving as a United States Probation Officer for five years.

Elaine Leonhard – Branch Manager of the Ft. Mitchell Office

Mrs. Leonhard will serve as the new Branch Manager of the Ft. Mitchell Office.  She replaces Bob McBride who recently left government service for private practice, after a thirty-year career. 

Mrs. Leonhard has served as an Assistant United States Attorney since 2006, prosecuting a wide variety of criminal cases, including violent crime, drug trafficking, immigration, child pornography, and white-collar crime.  Prior to joining the Office, she clerked for U.S. District Judge David L. Bunning.  Mrs. Leonhard graduated from Northern Kentucky University’s Chase College of Law, where she was a member and editor of the Northern Kentucky Law Review and a member of the Moot Court Board.  She received her undergraduate degree from the University of Cincinnati, where she was a member of Phi Beta Kappa, in 2001.

“I am pleased to welcome Elaine to the leadership team,” said U.S. Attorney Duncan.  “Elaine has had a wide range of experiences during her career with the Office, and I believe that she is well-suited for her new role.” 

Hydee R. Hawkins – Senior Litigation Counsel 

Mrs. Hawkins will continue to serve as the Senior Litigation Counsel.  She has been an AUSA in the Eastern District of Kentucky since August of 2002.  In addition to her duties as Senior Litigation Counsel, Mrs. Hawkins serves as the Criminal Discovery Coordinator and the Civil Rights Coordinator.  She handles criminal and civil cases involving civil rights violations.   Mrs. Hawkins previously worked at the Kentucky Attorney General’s Office and the Kentucky State Police legal office.  She moved to Kentucky nineteen years ago, after working as a local prosecutor in California.  Mrs. Hawkins graduated from Oakland University, in Rochester, Michigan, in 1988 and received her J.D., from the University of San Diego School of Law, in 1991.  

Other Office Points of Contact 

In addition to the management team, the following AUSAs serve as Office points of contact for various Department of Justice priorities, including the opiate and opioid reduction efforts, Project Safe Neighborhoods program, the Project Safe Childhood program, immigration enforcement, and terrorism-related matters. 

Todd Bradbury – Organized Crime Drug Enforcement Task Force (OCDETF) Lead Attorney and Opioid Coordinator

Andrew Smith – Opioid Fraud and Abuse Healthcare Coordinator

Cynthia Rieker – Project Safe Neighborhood Coordinator

David Marye – Project Safe Childhood Coordinator

Andrew Boone – Anti-Terrorism Coordinator 

The United States Attorney’s Office for the Eastern District of Kentucky prosecutes criminal and civil matters on behalf of the United States of America and defends claims against the federal government in the 67 eastern-most counties of the Commonwealth of Kentucky.  The Office employs a staff of approximately 45 AUSAs and 45 support staff and contractors. 

 

– END –

 

 

COVINGTON, Ky. – On Tuesday, Nathan W. Balser, 31, of Campbell County, Kentucky, was sentenced to nearly 22 years in prison, by United States District Judge David Bunning, for Production of Child Pornography. 

Balser previously admitted that, in January 2017, he took sexually explicit videos of his daughter, who was only 11 years old at the time.  Balser pleaded guilty to the charges in December 2017. 

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

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Steven L. Igyarto, Resident Agent in Charge, Homeland Security/ICE and Chief Craig Sorrell, Campbell County Police Department, jointly made the announcement.

The Department of Homeland Security Investigation, Immigration and Customs Enforcement and the Campbell County Police Department conducted the investigation.  Former Assistant United States Attorney Robert K. McBride and Assistant United States Attorney Wade T. Napier represented the United States.

LEXINGTON, Ky. – Kevin Labracio Frazier, 31, of Greenville, N.C., was found guilty today, by a federal jury sitting in Lexington, of assault resulting in serious bodily injury.         

After approximately 40 minutes of deliberations following a one-day trial, the jury convicted Frazier of assaulting another inmate in a federal prison facility.            

According to testimony at trial, Frazier, an inmate at the Federal Medical Center in Lexington, assaulted another inmate, which resulted in the victim suffering facial fractures and a deep laceration under his eye that required sutures.  The evidence revealed that Frazier repeatedly punched the victim in the head and face, resulting in the victim briefly losing consciousness and being transported to the University of Kentucky for medical treatment.             

Frazier was indicted in February of 2018.           

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, FBI Louisville, jointly announced the verdict.

The investigation was conducted by Federal Bureau of Investigation and the Bureau of Prisons.  The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Ron L. Walker, Jr. 

Frazier will appear for sentencing on July 20, 2018.  He faces a maximum of ten years in prison.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing his sentence.

LONDON, Ky. – On April 11, 2018, a federal jury convicted London physician Dr. Anis Chalhoub of health care fraud.  The jury returned its guilty verdict after twelve days of trial, during which it heard 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.

United States Attorney Robert M. Duncan, Jr., Derrik L. Jackson, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Division; and Amy Hess, Special Agent in Charge for the Federal Bureau of Investigation, Louisville Field Division, jointly announced the verdict. 

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.

Chalhoub is currently scheduled to be sentenced on August 14, 2018 in London, Kentucky, by U.S. District Court Judge Gregory F. Van Tatenhove.  He faces a maximum of 10 years imprisonment.

LEXINGTON, Ky.  – Michael D. Jackson, 37, and Brandi Stamper, 27, both of Lexington, pleaded guilty today, to conspiracy to distribute fentanyl, cocaine, and crack cocaine; to being a convicted felons in possession of firearms; and to possession of firearms in furtherance of drug trafficking.  

In their guilty pleas, Jackson and Stamper both admitted that they maintained a residence, on Norway Street in Lexington, in January 2017.  At that time, the Lexington Police Department executed a search warrant at the residence, locating more than 140 grams of fentanyl, more than 500 grams of powder cocaine, and more than an ounce of crack cocaine.  Lexington Police also located three pistols, scales for weighing drugs, more than $80,000, and a vehicle purchased with drug proceeds.  The firearms were found in close proximity to the drugs.  Norway Street is three blocks from Lafayette High School.

“The drugs seized in this case represented an enormous risk to our community,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.  “Fentanyl can be lethal in the 2 milligram range, which means the fentanyl seized in this case constituted tens of thousands of potentially lethal doses.  The great work of our law enforcement partners led to these convictions; made our community safer; and saved lives – perhaps many, many lives.  We will continue to focus our efforts on combatting the opioid crisis and prosecuting this disgraceful conduct that endangers us all.”   

United States Attorney Duncan; Stuart Lowrey, Special Agent in Charge, ATF; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the guilty pleas.

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

Both Jackson and Stamper are currently scheduled to appear for sentencing, before Chief United States District Judge Karen K. Caldwell, in Lexington, on July 26, 2018.  Jackson faces a minimum sentence of 20 years and Stamper faces a minimum sentence of 15 years.  Any sentence, however, will be imposed by the Court, after consideration of the United States Sentencing Guidelines and the applicable federal statutes governing 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 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.

LEXINGTON, Ky. – Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.

“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”

“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”

“Your home is supposed to be a safe space, a place for you to pursue your life and shelter your family; it should never be a place where intimidation or threats, from landlords or others, force people to endure sexual harassment,” said Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky.  “Our job, at the Department of Justice, is to aggressively combat this illegal and despicable conduct and help ensure that people can safely pursue their lives in a space a home is supposed to be.”

In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters.  The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.

The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.

Because of these promising results, the Department is rolling out three major components to the Initiative.

First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.

Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.

Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.

In the Eastern District of Kentucky, as part of its Civil Rights Initiative, the Office has collaborated with numerous agencies, including law enforcement agencies, the Kentucky Commission on Human Rights, the Lexington Fair Housing Council, and a variety of social service agencies, in an effort to combat sexual harassment in housing. The initiative includes outreach efforts, training sessions, and the investigation of allegations involving sexual harassment in housing.  The goal is to hold accountable landlords and others who prey on vulnerable citizens simply looking to maintain a home for themselves and their families.

More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. Locally, you can contact the U.S. Attorney’s Office at 859-233-2261 or visit our website at www.justice.gov/usao-edky.  If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.

LEXINGTON, Ky. - The U.S. Attorney’s Office for the Eastern District of Kentucky, along with the Fayette Commonwealth’s Attorney’s Office, the Fayette County Attorney’s Office, the Lexington Police Department, and the Office of the Fayette County Sheriff will commemorate National Crime Victims’ Rights Week (NCVRW), April 8-14, 2018, at the Lexington Crime Victims’ Rights Luncheon, on April 11, 2018.  The luncheon is a collaboration of local law enforcement partners, to raise awareness about crime victims’ issues and rights and introduce the community to the important resources and services available.  According to the most recent Bureau of Justice Statistics survey, victims experience more than five million violent crimes and nearly 15 million property crimes a year.

This local partnership will commemorate the advancement of victims’ rights and highlight issues surrounding victimization at this event at 11:30 am, at the Fayette County Circuit Courthouse Multi-Purpose Room.  During the event, the U.S. Attorney’s Office will honor Rajbir Datta, an Assistant United States Attorney, with the Office’s Danny Ray Smith Crime Victims’ Rights Award.  Danny Ray Smith, the first Victim-Witness Coordinator at the U.S. Attorney’s Office, was a champion in advocating for expanded support and services to communities affected by crime.  Datta will receive the award for his tireless efforts to pursue restitution for victims in a significant fraud case that affected hundreds of victims.  The other law enforcement partners will be presenting awards as well.

The Office for Victims of Crime (OVC) of the U.S. Department of Justice leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week, by promoting victims’ rights and honoring crime victims and those who advocate on their behalf.  This year’s theme—Expand the Circle:  Reach All Victims—highlights how the investment of communities in crime victims expands the opportunity for victims to disclose their victimization, connect with services, and receive the support they need.  The theme also acknowledges the many barriers facing victims of crime especially those with disabilities, LGBTQ victims, older adults, speakers with limited English proficiency, American Indians and Alaska Natives, and others from historically marginalized communities.

“Victims’ rights are of great importance in the criminal justice system, and I take very seriously my Office’s duty to ensure that victims’ voices are heard,” stated United States Attorney Robert M. Duncan, Jr.  “I am proud to partner with members of the law enforcement community to honor and renew our commitment to victims of crime.”   

OVC and the U.S. Attorney’s Office, along with our local partners, encourage widespread participation in the week’s events and in other victim-related observances throughout the year.  The U.S. Department of Justice will host OVC’s annual National Crime Victims’ Service Awards Ceremony, in Washington, D.C., to honor outstanding individuals and programs that serve victims of crime.

For additional information about this year’s National Crime Victims’ Rights Week, and how to assist victims in your community, please contact Jenny Parker, Victim Assistance Specialist, at 859-685-4906, or visit U.S. Attorney’s Office website, at www.justice.gov/usao-edky.  For additional ideas on how to support victims of crime, visit OVC’s website at www.ovc.gov.

LEXINGTON, Ky. – Leon A. Smith, a former wealth manager for professional athletes, was sentenced today to 51 months in federal prison for stealing nearly $1.3 million from his clients and misusing their identities. 

U.S. District Court Judge Joseph M. Hood sentenced 45-year-old Smith, now of Batesville, Indiana, for wire fraud, identity theft, and money laundering.  In addition to the 51-month term of incarceration, Judge Hood ordered Smith to forfeit $1,298,506.82, the approximate gross proceeds of his offense. 

During two separate guilty plea hearings in November and December 2017, Smith admitted that he had misused his clients’ personal and financial information to transfer their funds into his own bank accounts and to open unauthorized credit cards and other lines of credit in their names.  Smith also admitted that he concealed his activities from his clients by changing passwords to restrict his clients’ access to their accounts and by fabricating expense reports that used fake expenses to explain the low account balances that resulted from his thefts.  Smith admitted that this scheme began in September 2011 and continued through January 2015. 

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Christopher Altemus, Special Agent in Charge, IRS-CI; Amy Hess, Special Agent in Charge, FBI; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.  The investigation was conducted by the IRS-CI, the FBI, and the Lexington Police Department.  The United States was represented by Assistant United States Attorneys Andrew T. Boone and Kathryn M. Anderson. 

LEXINGTON, Ky.,  — Delvagio Christopher Lax,33, of Lexington, KY, was sentenced today to 37 months years in prison by United States Senior District Court Judge Joseph M. Hood for Possession of a Firearm by a Convicted Felon.  Judge Hood also ordered Lax to pay a fine of $5,000.

Lax previously admitted that on October 6, 2017, while living on Mt. McKinley Way in Lexington, he possessed a .45 caliber Taurus pistol while in a conflict with neighbors. Lax admitted that prior to the incident offense he had been convicted of the felony offenses of Possession of Cocaine on two occasion and Facilitation to Commit Manslaughter First Degree in 2012 in Fayette County. Lax pleaded guilty to the charges in January of this year.

Under federal law, Lax must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for 3 years.

Robert M. Duncan, Jr. United States Attorney for the Eastern District of Kentucky, Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, Richard Sanders, Commissioner of the Kentucky State Police and Chief Lawrence Weathers, Lexington police Department, jointly made the announcement today after the sentencing.

The Federal Bureau of Investigation, Kentucky State Police and The Lexington Police Department as part of a Safe Streets Task Force to reduce violent crimes in the city of Lexington conducted the investigation.  Assistant United States Attorney Roger W. West represented the United States.

This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

An Eastern Kentucky man pleaded guilty today for his role in assisting a former Social Security disability lawyer escape from federal custody.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division and Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division made the announcement.

Curtis Lee Wyatt, 48, of Raccoon, Kentucky, pleaded guilty to one count of conspiracy to escape from custody before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky.  Sentencing has been scheduled for June 29, before Judge Reeves.

In September 2017, Wyatt was charged in a seven-count indictment with conspiracy to escape, instigating and assisting escape, conspiracy to commit failure to appear, aiding and abetting failure to appear, and making false statements to the FBI in connection with his role in assisting former Social Security disability lawyer Eric Christopher Conn escape from federal custody. The indictment alleges that Conn, while on home confinement after pleading guilty to two federal offenses but before being sentenced, escaped from custody by severing an electronic monitoring device from his ankle during a court-approved visit to Lexington, Kentucky on June 2, 2017, and fled to the Mexican border.  According to the indictment, Conn ultimately failed to appear for his sentencing hearing on July 14, 2017.

As part of his guilty plea, Wyatt admitted that he conspired with Conn to escape from custody by, in the months prior to Conn’s escape, assessing security measures at various pedestrian checkpoints along the United States-Mexican border and advising Conn of whether identification was checked upon exiting the United States.  Wyatt further admitted that on the day prior to Conn’s escape, he provided Conn with a Faraday bag for the purpose of suppressing the signal emitted from Conn’s electronic monitoring device, as well as with an escape vehicle that Wyatt had previously purchased with cash, registered in Montana and secreted in a parking garage in Pikeville, Kentucky.

Conn is scheduled to proceed to trial on the escape charges on June 11, 2018 in Lexington before Judge Reeves.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI and SSA-OIG investigated the case.  Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorneys Ann Marie Blaylock and Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.

LEXINGTON, Ky., – Stanford Ray Coleman, 47, of Detroit, Michigan, was sentenced today to 340 months [28 years] in prison by United States District Court Judge Danny C. Reeves for Conspiracy to Distribute Oxycodone.  Judge Reeves also ordered Coleman to pay a fine of $15,000.

Coleman was previously found guilty by a jury of the charge.  The evidence at trial established that Coleman was the supplier of large amounts of oxycodone 30 mg tablets to street and mid-level dealers in the Mt. Sterling area.  Coleman would travel to the Mt. Sterling area from Detroit and Atlanta at regular intervals.  Coleman would bring thousands of oxycodone 30 mg tablets to local dealers in and around Mt. Sterling.  These local distributors would in turn sell the oxycodone 30 mg tablets to smaller dealers and to users of oxycodone in Mt. Sterling.  Coleman used at least five fictitious names to conceal his identity and his presence in this area.  Coleman was found to be responsible for 5,000 oxycodone 30 mg tablets pills from May 2015 to July 2015.  Coleman has also been convicted of two prior drug trafficking offenses qualifying him as a “Career Offender.” The jury convicted Coleman in December of 2017 after a 4-day trial.

Under federal law, Coleman must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for 8 years.  Judge Reeves ordered that this federal sentence run be served consecutive to a Fayette County felony offense for drug distribution.

Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, Stuart Lowery, Special Agent in Charge, ATF, Richard Sanders, Commissioner, Kentucky State Police, Chief David Charles, Mt. Sterling Police Department jointly made the announcement today after the sentencing.

The ATF, Kentucky State Police, Mt. Sterling Police Department conducted the investigation. Assistant United States Attorney Roger W. West represented the United States.

This case were prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

LEXINGTON, Ky. – Brandon Darrell Martin, age 28, of Winchester  Ky., pleaded guilty today to Possession of Firearms by a Convicted Felon. 

In the course of his guilty plea, Martin admitted that, having previously been convicted of a drug trafficking felony and two theft felonies, he knowingly pawned at least five firearms.  These firearms included a semi-automatic pistol, two rifles and two shotguns.  All these firearms had actually been stolen in residential burglaries in Clark County.  Martin pawned them at pawn shops in Lexington.  Martin was indicted in January 2018.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge ATF;  James Fugate Chief of the Versailles Police Department; and  Berl Perdue, Jr. Clark County Sheriff,  jointly announced the guilty plea.

The investigation was conducted by the ATF, Versailles Police Department, and Clark County Sheriff’s Office.  The United States was represented in the case by Assistant United States Attorney Roger W. West.

Martin is currently scheduled to appear for sentencing before Senior United States District Judge Joseph M. Hood, in Lexington, on June 25, 2018, at 10:30 a.m.  Martin faces a maximum of 10 years in prison.

This case were prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

LEXINGTON Ky. – Two Nicholasville, Ky., men were indicted today for using social media to post a false threat about a prospective shooting at one or more Jessamine County schools and for using social media to harass and intimidate an individual victim with those same threats. 

A federal grand jury in London returned an indictment charging 18-year-old Tristan Kelly and 19-year-old Cody Ritchey with one count of conveying false information and hoaxes and one count of cyberstalking.  The indictment alleges that Kelly and Ritchey used Snapchat to spread false information that a third individual would attack Jessamine County schools with firearms and to harass K.S., an innocent victim, with threats that caused K.S. substantial emotional distress.  According to the indictment, Kelly and Ritchey spread the false information and threats on or about February 17, 2018. 

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 indictment was presented to the grand jury by Assistant U.S. Attorney Andrew Boone. 

A date for Kelly and Ritchey to appear in federal court has not yet been scheduled.  They face up to 5 years in prison and a fine of $250,000 for each charge.  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. 

LEXINGTON, Ky. — Melvin T. Mahone, Jr., age 30, of Lexington  Ky., pleaded guilty today to possession with the intent to distribute more than 40 grams of fentanyl and to possessing firearms in furtherance of the distribution of fentanyl. 

In the course of his guilty plea, Mahone admitted to living in a house on American Avenue in Lexington on October 20, 2016, when members of the Lexington Police Department executed a search warrant.  Mahone was found to be in possession of 60.6 grams of fentanyl, which he intended to sell to street level users.  Fentanyl is a highly addictive and dangerous drug that has been responsible for many of overdose deaths in Kentucky over the past two years. 

During the course of the guilty plea, Mahone also admitted to the possession of a loaded .38 caliber revolver and a loaded .22 caliber semi-automatic assault type rifle.  These two firearms were found in close proximity to Mahone.  Mahone acknowledged that the firearms were used in furtherance of the distribution of fentanyl.  Mahone also admitted that he had previously been convicted of the federal drug trafficking felony of conspiracy to distribute oxycodone in 2008.  Mahone was indicted by a grand jury in April of 2017.

Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, Chief Lawrence Weathers, Lexington Police Department and Stuart Lowery, Special Agent in Charge,  Alcohol tobacco and Firearms, jointly made the announcement today after Mahone entered his guilty plea.

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

Mahone is currently scheduled to appear for sentencing before United States District Court Chief Judge Karen K. Caldwell in Lexington  on June 26, 2018, at 11:00 a.m.  Mahone  faces a mandatory minimum prison sentence of 15 years. 

This case were prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.