Western District of Kentucky
Press releases recorded for this federal judicial district.
Miami, FL Resident Found Guilty of Health Care Fraud, Identity Theft and Money Laundering in KentuckyRead the Press Release
LOUISVILLE, Ky. – A Miami, Florida, man, was found guilty last week in United States District Court of Health Care Fraud, Conspiracy to Commit Health Care Fraud, Aggravated Identity Theft, and Conspiracy to Commit Money Laundering, announced United States Attorney Russell M. Coleman.
Following a three-week trial, a federal jury deliberated approximately 4 hours before finding Ledinson Chavez, 39, guilty on all counts against him for his part in a scheme to attempt to defraud health insurance providers out of more than $5 million for services that were never provided.
According to the evidence presented at trial, beginning no later than on or about June 12, 2012, and continuing through on or about November 1, 2014, Chavez along with Claudia Lopez, Oskel Lezcano, Ariel Borrego-Hernandez, Sergio Betancourt and Yuriesky Diaz Rodriguez recruited unsuspecting chiropractors for employment in Louisville area chiropractic clinics in order to obtain and use the chiropractors’ names and National Provider Identifiers (NPI) to fraudulently bill insurance companies.
Thereafter, the group of defendants recruited employees from Jeffboat and others to seek chiropractic services from the clinics. However, unbeknownst to the chiropractors, the clinics billed over $5,000,000 for methocarbamol injections (a muscle relaxant), using the patients’ names, dates of birth, insurance/policy numbers, addresses, and patient IDs/Social Security Numbers for injections. Most of the patients from Jeffboat were paid to go to the clinics by the defendants and were told the injections were being billed, according to testimony during trial.
Lopez, Lezcano, Borrego-Hernandez, Betancourt, and Chavez operated and controlled multiple chiropractic clinics in the Louisville area including: Xpress Diagnostics Center, Inc.; Prudential Chiropractic Medical Center, PLLC; Klondike Chiropractic Medical Center, LLC; Be Well Chiropractic Center, Corp.; Chiropractic and Medical Center, LLC, even though the clinics were placed in various chiropractors’ names.
Sentencing is scheduled for November 29, 2018, Chavez faces a guideline sentence of 102-121 months in federal prison; 24-months is the mandatory minimum sentence, and restitution of $1,108,757.50.
Assistant United States Attorneys Joseph Ansari, Lettricea Jefferson-Webb and Christopher Tieke prosecuted the case. Mary Kennedy, paralegal, and Robert Masterson, health care fraud investigator, assisted the prosecution team. The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation, the Louisville Metro Police Department, and the National Insurance Crime Bureau.
LMINTEL Investigations Lead to Eight People Pleading Guilty Including Local Gang Members and AssociatesRead the Press Release
LOUISVILLE, Ky. – Eight people, including five connected to a violent Louisville street gang have pleaded guilty to federal charges brought as part of investigations by the Louisville Metro Intelligence Task Force (LMINTEL): an LMPD intelligence-led task force which identifies serious, violent offenders and leverages all available resources to investigate, apprehend and prosecute these offenders, announced United States Attorney Russell M. Coleman.
“The United States Attorney’s Office stood with our law enforcement partners and promised to tackle violent crime in our city,” said U.S. Attorney Russell Coleman. “These pleas to significant federal prison time are just the beginning of making good on our pledge; much more to come.”
Chicoby Summers, 22, Shelby Strong, 33, Jerlen Horton, 23, Derrick Hammond, 33, Lakeshia Watts, 23, have all pleaded guilty and are awaiting sentencing hearings for their involvement in conspiring to obtain firearms for convicted felons.
According to a forty-count Superseding Indictment unsealed November 28, 2017, at all times relevant to the conspiracy, Hammond, Summers, and Horton were convicted felons, and they had close relationships with each other as well as other members of the Victory Park Crips (VPC), a violent street gang operating primarily in the west end of Louisville. Lakeshia Watts shared a residence with Horton and Shelby Strong was an associate of Hammond. Members and associates of the Victory Park Crips use firearms to aid narcotics trafficking, preserve and protect power and reputation by intimidation and violence against rival gangs. The culture of the VPC glorifies guns and violence, and firearms are a status symbol to members.
According to the charges, beginning in February of 2017, Hammond, Summers, Horton and Strong conspired to obtain firearms through the use of “straw purchasers” (associates who had no felony convictions and could lawfully purchase firearms). It was further part of the conspiracy that firearms purchased by “straw purchasers” were transferred ultimately to convicted felons, aided and abetted by others. Federal law prohibits convicted felons from purchasing or owning firearms, prohibits a buyer from purchasing a weapon on behalf of another person, and prohibits an unlawful user of a controlled substance from possessing a firearm.
- Chicoby Summers pleaded guilty to all charges against him, including: conspiracy to possess a firearm by a prohibited person; four counts of illegal possession of a firearm by a convicted felon. Sentencing is scheduled for December 13, Summers faces a sentence of 57 months in federal prison.
- Shelby Strong pleaded guilty to conspiracy to possess a firearm by a prohibited person; 13 counts of possession of firearm by a drug user; 11 counts of making a false statement material to the purchase of a firearm; engaging in the business of dealing firearms; interstate travel with intent to deal firearms; and four counts of transfer of a firearm to a convicted felon. Sentencing is scheduled for December 13, Strong faces a sentence of 63 months in federal prison.
- Jerlen Horton pleaded guilty to conspiracy to possess a firearm by a prohibited person; three counts of possession of a firearm by a convicted felon; conspiracy to obstruct justice; possession of explosives by a felon. Sentencing is scheduled for September 18, the low end of the federal guideline sentencing range is 70 months in federal prison.
- Derrick Hammond pleaded guilty to conspiracy to possess a firearm by a prohibited person; four counts of aiding and abetting transfer of a firearm to a convicted felon; conspiracy to obstruct justice. Sentencing is scheduled for November 7, the low end of the federal guideline sentencing range is 12 months in federal prison.
- Lakeisha Watts pleaded guilty to one count of misprision of a felony, she will be eligible for probation and will thereafter be a convicted felon incapable of legally purchasing or possessing firearms. Sentencing is scheduled for December 13.
In addition, LMINTEL led investigations have resulted in guilty pleas from three others for firearm possession by convicted felons: Treyvon Miles, 22, Chillvon Randolph, 21, and Marcus Knight, 21.
- Treyvon Miles pleaded guilty to possession of a firearm by a convicted felon. Sentencing is scheduled for September 6, the low end of the federal guideline sentencing range is 46 months in federal prison.
- Chillvon Randolph pleaded guilty to possession of a firearm by a convicted felon. Sentencing is scheduled for September 6, and the low end of the federal guideline sentencing range is 24 months in federal prison.
- Marcus Knight pleaded guilty to possession of a firearm by a convicted felon. Sentencing is scheduled for September 6, and the low end of the federal guideline sentencing range is 24 months in federal prison.
The cases were prosecuted by Assistant United States Attorneys Erin McKenzie and Nute Bonner. The Louisville Metro Police Department (LMPD), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI) investigated the cases.
The Louisville Metro Intelligence Task Force (LMINTEL) is led by the Louisville Metro Police Department (LMPD). The task force is composed of state and federal agencies which include, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS), the United States Marshals Service, the Kentucky State Police (KSP), the United States Attorney’s Office for the Western District of Kentucky, the Office of the Jefferson County Commonwealth’s Attorney, and the Office of the Jefferson County Attorney. The goals of the LMINTEL Task Force include identifying, investigating, and prosecuting individuals and gangs who are responsible for fueling violent crime in the Louisville Metro area.
Russellville Felon Pleads Guilty to Possessing Illegal Sawed-Off ShotgunRead the Press Release
BOWLING GREEN, Ky. – Russellville, Kentucky, man, Tracy Green Baskerville, pled guilty before United States District Judge Greg N. Stivers this week to being a felon possessing an unregistered sawed-off shotgun, announced United States Attorney Russell M. Coleman.
Baskerville, age 44, pled guilty to one count of being a felon in possession of a firearm and one count of possession of an unregistered modified firearm. The Russellville man faces 15 years to life in federal prison, a $500,000 fine and five years of supervised release. There is no parole in the federal system.
According to court records, on April 27, 2015, the Russellville Police Department and the Logan County Sheriff’s Office responded to a 911 call from Baskerville’s mother’s residence. During the call with 911, a woman could be heard pleading for someone to “put down the gun.” An investigation by officers revealed Baskerville had threatened to kill his girlfriend and brother. A search of the residence, consented to by Baskerville’s mother, revealed a Harrington and Richardson, Inc. Model 088, .20 gauge sawed off shotgun with a barrel length of 6 ¼ inches and an overall length of 9 inches as well as one round of .20 gauge ammunition. Logan County Sheriff’s Office officials arrested Baskerville. Shotguns must have an overall length of 26 inches, and barrel of no less than 18 inches.
While at the Logan County Jail on April 27, 2015, Baskerville admitted to law enforcement officials that the sawed-off shotgun belonged to him, but he denied altering the firearm at that time. Baskerville also admitted he was a multi-convicted felon on probation for manufacturing Methamphetamine.
Sentencing has been scheduled in Bowling Green on November 15, 2018.
This case is being prosecuted by Assistant United States Attorney Jo. E. Lawless. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Logan County Sheriff’s Office and Russellville Police Department conducted the investigation.
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Southern Indiana Man Sentenced to 10 years for Seeking Sex with MinorRead the Press Release
LOUISVILLE, Ky. – United States District Court Judge David Hale sentenced Donald L. Martin, of Floyds Knobs, Indiana to federal prison for 10 years for seeking sex with a minor and traveling with intent to engage in illicit sexual conduct, today announced United States Attorney Russell M. Coleman.
“We will protect our kids,” stated US Attorney Russell Coleman. “Predators of this nature should seek professional help or seek a defense lawyer as we will pursue them with every legal weapon in our arsenal.”
Martin, age 69, was arrested on September 2, 2017 at Pope Lick Park in Jefferson County, Kentucky where he had traveled with the intent of having sex with a 15-year old female he believed to be communicating with; Martin was actually communicating with cyber investigators working for the Kentucky Office of the Attorney General, Department of Criminal Investigations. Undercover investigators conducted a two-week investigation into Martin who sent sexually explicit text messages and emails to cyber investigators. At the time of Martin’s arrest he was in possession of sexual paraphernalia, generic Viagra, an empty packet of Cialis, an over-the-counter medication for male sexual performance enhancement, along with a handgun.
At trial, a jury found Martin guilty of Attempted Enticement and Traveling with Intent to Engage in Illicit Sexual Conduct.
This case was prosecuted by Assistant United States Attorney Spencer McKiness and Jo E. Lawless, and was investigated by the Kentucky Office of the Attorney General, Department of Criminal Investigations, with assistance from the Louisville Metro Police Department and United States Secret Service.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
LOUISVILLE, Ky. – The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction. On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“Given our loss of 1,565 Kentuckians last year – over one a day in Louisville – to drug overdose, this federal regulatory change has potential to save lives in our Commonwealth,” said U.S. Attorney Russell Coleman. “Legitimate patients should always have access to needed medications but common sense suggests that this move will reduce opiate diversion.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
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Fulton County Deputy Jailer Indicted for Assaulting InmateRead the Press Release
WASHINGTON – A federal grand jury in Paducah, Kentucky, returned a one-count indictment today charging James Eakes, a deputy jailer at the Fulton County Detention Center, with violating the civil rights of an inmate by assaulting him with a dangerous weapon.
The indictment alleges that on Aug. 14, 2016, Eakes willfully deprived an inmate of the right to be free from cruel and unusual punishment. Specifically, the indictment alleges that Eakes assaulted the inmate with a dangerous weapon, resulting in bodily injury to the inmate.
If convicted of the civil rights charge, Eakes faces a maximum term of imprisonment of 10 years.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The FBI conducted the investigation. Assistant United States Attorney Madison Sewell of the Western District of Kentucky and Trial Attorneys Sanjay Patel and Zachary Dembo of the Civil Rights Division are prosecuting the case.
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Louisville Man Charged with Dealing Heroin That Resulted in Overdose DeathRead the Press Release
BOWLING GREEN, Ky. – A Louisville, Kentucky man has been charged with possession and distribution of heroin after a Bowling Green woman died of an overdose, announced United States Attorney Russell M. Coleman.
Damone Domonique Bell, age 22, of Bowling Green, was charged in a criminal complaint August 1, 2018 and subsequently charged by federal grand jury indictment on August 15, 2018.
“One pill or single dose of heroin can kill, “stated U.S. Attorney Russell Coleman. “Likewise, if as little as a single pill or dose causes death or an overdose, drug traffickers need be on notice that our office will bring charges carrying a mandatory penalty of twenty years to life in federal prison.”
According to the two-count federal indictment, on July 30, 2018, defendant Bell supplied K.M. and L.C. with heroin. K.M. was found July 30, 2018 by Bowling Green Police Department unresponsive beside a vehicle and efforts to resuscitate were unsuccessful. K.M. was pronounced dead at the Medical Center in Bowling Green. The previously filed Criminal Complaint alleges surveillance video from the gas station in Bowling Green where L.C. and K.M. purchased the heroin, along with text messages and other investigative measures which led police to defendant Bell.
Defendant Bell was arrested during a traffic stop by Kentucky State Police on his way to deliver heroin on July 31, 2018, according to the Criminal Complaint. Troopers searched defendant Bell’s vehicle after detecting the odor of marijuana, and found a small bag of suspected marijuana and two small plastic bags which field-tested positive for the presence of heroin.
If convicted of both offenses at trial, defendant Bell could be sentenced to no less than 20 years and no more than life in prison, fined $2,000,000 and ordered to serve no less than 3 years and up to life of supervised release.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless in coordination with the Warren County Commonwealth Attorney’s Office, and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Bowling Green Police Department and the Kentucky State Police.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
Physician Sentenced to Federal Prison for Drug TraffickingRead the Press Release
BOWLING GREEN, Ky. – United States District Court Judge Greg N. Stivers sentenced Franklin, Kentucky, physician, Roy D. Reynolds, to federal prison for 50 months with no probation in the federal system on 15 counts of illegal distribution of controlled substances by way of prescribing opiate pain medications outside of the course of professional medical practice and without a legitimate medical purpose, announced United States Attorney Russell M. Coleman.
“What this conviction is not,” stated U.S. Attorney Russell “is targeting of a physician who prescribed opioids in the course of professional practice and for a legitimate medical purpose. It is, however, sending a doctor to federal prison who became a drug dealer with a medical license. Our Commonwealth is blessed with many ethical and responsible medical practitioners; Roy Reynolds is not one of those”
Roy D. Reynolds was a doctor practicing in Franklin, Kentucky, in Simpson County during the time of the illegal activity. Reynolds was treating patient Jackie Hughes at the time of his death; court records show Reynolds doubled Hughes’ prescription for oxycodone twice in his final five-months alive. Reynolds also prescribed oxycodone, hydrocodone and Xanax to an additional four patients without a legitimate medical purpose. Those patients had medical histories of mental illness, doctor-shopping, and additional risk factors for opiate abuse and addiction.
One former patient had five drug overdoses while under Reynolds’s care, yet he continued to prescribe opioids and benzodiazepines after each overdose. Reynolds took his patient, Hughes, to a rock concert and saw that Hughes was high, and later admitted in a letter that “we reminisced this frequently . . . about how he was snowed the evening we went to Nashville.” Nonetheless, Dr. Reynolds continued prescribing opioids to Jackie Hughes until the patient died of an overdose.
From 2010 through 2012, the period of illegal activity covered at trial, Dr. Reynolds was in the top 2 percent of all Kentucky doctors for oxycodone prescriptions, the top 5 percent for hydrocodone prescriptions, and the top 4 percent for benzodiazepine prescriptions. In 2011, Reynolds prescribed 132,372 oxycodone pills (second most prescribed oxycodone pills by a primary care physician in Simpson County was 9,765) and in 2012 Reynolds prescribed 139,667 pills (second most oxycodone pills prescribed by a primary care physician in Simpson County was 11,794). In February of 2013, Reynolds lost his DEA license to prescribe opiate pain medications. However, during the first five week period, Reynolds prescribed more opiate pain medications than any other Simpson County physician prescribed during 2013. Reynold was convicted April 23, 2018 on 15 counts of illegal distribution of controlled substances by way of prescribing opiate pain medications outside of the course of professional medical practice following a nine day trial.
This case was prosecuted by Assistant United States Attorneys David Weiser and Rob Bonar with assistance from paralegals Mary Kennedy and Jane Bauer, and was being investigated by the Federal Bureau of Investigation (FBI), Kentucky State Police, the Kentucky Office of Inspector General, Division of Audits and Investigations, Drug Enforcement and Professional Practice Branch.
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Two Trials, Two Convictions for Louisville Heroin Trafficking and Gun OffensesRead the Press Release
LOUISVILLE, Ky. – In two separate federal trials this week, the United States won convictions for heroin trafficking and firearms offenses, announced U.S. Attorney Russell Coleman.
“The Department of Justice will continue to aggressively pursue gun cases and drug trafficking in federal court as a means of reducing violent crime in this community” said United States Attorney Russell Coleman “Our Commonwealth is blessed with able law enforcement partners who share this vision.”
Jamar Garrison of Louisville, Kentucky was convicted yesterday in United States District Court on charges of possession of heroin with the intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a handgun by a convicted felon. Mr. Garrison had been released on bond for state drug trafficking charges for the last two years when he was arrested after being found in possession of a loaded semiautomatic handgun, a mixture of heroin and fentanyl packaged for sale, several thousand dollars cash, and assorted other narcotics. The follow up investigation revealed that while released on bond on multiple pending felony drug indictments in Jefferson Circuit Court, Garrison had been using vehicles rented in the names of third parties in order to transport and traffic in heroin all over Louisville.
Garrison is a multiple convicted felon with prior convictions for drug trafficking, robbery, felony assault, wanton endangerment, wanton endangerment of a police officer, felony fleeing and evading, and assorted other felony and misdemeanor crimes. He was arrested five times in 2017 while on felony bond for drug trafficking.
Garrison will be sentenced November 1, 2018, and faces a mandatory minimum sentence of 5 years in prison and could receive up to life imprisonment. He could also be fined $2,000,000, and be required to serve no less than 6 years of supervised release. There is no parole in the federal system. Garrison has been detained by U.S. District Court Judge Rebecca Grady Jennings since his May 23, 2018, indictment on federal charges.
This case was prosecuted by Assistant United States Attorneys Erin McKenzie and Marisa J. Ford, and paralegal Brandi Henderson, and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Louisville Metro Police Department, with assistance from the Louisville Metro Intelligence Task Force (LMINTEL).
On July 25, 2017, a jury sitting in United States District Court for the Western District of Kentucky returned a verdict of guilty against Chavon Davis, of Louisville, for knowingly making false statements to federally-licensed firearms dealers in the course of purchasing five firearms. According to the Superseding Indictment, Davis knowingly made material false statements to two separate federally licensed firearms dealers in order to acquire five semiautomatic pistols. The evidence at trial established that Davis bought the firearms so he could them to sell to a convicted felon. Specifically, the Superseding Indictment charged that Davis purchased a .45 caliber semiautomatic pistol from a firearms dealer in Hardin County, Kentucky on May 16, 2016. Later, on May 24, 2016, Davis purchased two .40 caliber semiautomatic pistols and two 9 millimeter semiautomatic pistols from a firearms dealer in Jefferson County, Kentucky. On both occasions, Davis completed the standard ATF Form 4473 which is required anytime a licensed dealer sells a firearm to a purchaser. ATF Form 4473 contains a number of questions that the purchaser of the firearm is required to answer truthfully before the dealer can lawfully transfer the firearm. One of the questions was whether Davis was the actual purchaser of the firearms. On each of the forms, Davis stated that he was the actual purchaser of the firearm. The evidence at trial, however, was that the defendant was “straw-purchasing” the firearms which he sold to a convicted felon and for profit. The evidence at trial established that during the time period from February to May, 2016, Davis purchased a total of 15 semiautomatic pistols, but only possessed two of the pistols when ATF agents interviewed him in May, 2016.
This case was prosecuted by Assistant United States Attorneys Tom Dyke and Corinne Keel, and paralegal Jane Bauer, and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Hardin County Narcotics Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to specifically identify the criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Nigerian Man Sentenced to Federal Prison for Sweepstakes SchemeRead the Press Release
LOUISVILLE, Ky. – United States District Court Chief Judge Joseph H. McKinley, Jr. sentenced Kingsley I. Ekpendu, a Nigerian national, to 15 months in prison yesterday for his participation in a sweepstakes scheme that resulted in over 50 victims sending him cash in the mail, announced United States Attorney Russell M. Coleman.
Ekpendu, 42, was charged in an indictment and pleaded guilty to three counts of mail fraud. As part of the plea agreement, Ekpendu, who is a United States Permanent Resident, agreed to his removal from the United States after the completion of his 15-month prison sentence. Chief Judge McKinley also ordered Ekpendu to pay $257,916.15 in restitution to victims of the scheme.
According to the plea agreement, from on or about February 22, 2016, through October 4, 2017, Ekpendu participated in a scheme to defraud victims by making them believe they had won a sweepstakes or lottery. Ekpendu and others mailed letters to potential victims around the nation. Each letter stated the recipient had won a lottery or sweepstakes prize, listed a phone number for a “claims manager,” and included a check for several thousand dollars to cover “insurance and legal fees.” When the victim called the “claims manager,” the “claims manager” would tell the victim that in order to receive the prize, the victim needed to deposit the check and send several thousand dollars cash to an address in Louisville, Kentucky. The defendant would then pick up the parcels containing cash from the Louisville address, keeping a share of the cash for himself and sending the remainder to other participants in the scheme. Ultimately, the checks Ekpendu and others mailed to the victims were fraudulent, but the victims would not realize this until after they had sent cash to the Louisville address and it was too late for them to recover the funds.
Assistant United States Attorney Amanda Gregory prosecuted the case. The United States Postal Inspection Service and the Louisville Metro Police Department conducted the investigation.
United States Attorney Announces Charges Against 23 More Defendants in Surge to Reduce Violent Crime in LouisvilleRead the Press Release
ATF LouisvilleLOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced that the Louisville Federal Grand Jury returned 20 felony indictments charging 23 individuals this month with multiple counts, including firearms violations and possession and distribution of scheduled drugs. These charges continue to be developed through an ongoing partnership of multiple law enforcement agencies to maximize penalties for the most violent repeat offenders as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative. This month’s federal indictments are in addition to 14 indictments charging 16 individuals this past May and 21 indictments charging 23 individuals this past March totaling 60 PSN defendants so far this calendar year.
“Kentucky families deserve to be safe, regardless of zip code,” stated U.S. Attorney Russell Coleman “This next round of indictments of violent offenders is not the destination, but another step in the journey to deliver on our solemn promise to reduce violent crime in this community.”
“ATF is committed to reducing gun violence by arresting prohibited persons and violent offenders who unlawfully possess and use firearms," stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “These indictments reflect the ongoing partnership between ATF, Louisville Metro Police Department and other law enforcement agencies to make our communities safer for everyone.”
The crimes charged include being a felon in possession of a firearm, possession with intent to distribute Schedule I controlled substances, using a firearm in furtherance of a drug trafficking crime, and manufacturing and dealing in firearms without a license. One defendant, Elijah Eubanks, 20, has already been charged with attempted murder by the Jefferson County Commonwealth Attorney’s office for shooting at a police officer who approached his vehicle; he now faces an additional federal charge of being a felon in possession of a firearm.
Another defendant, Casey Cooper, 34, despite being warned by federal firearms dealers about the unlawful sale of firearms, continued to purchased firearms parts in bulk, assembled them into weapons, and sold approximately 90 firearms online, most of which were AR-15-style assault rifles. If convicted at trial, the maximum sentence for unlawfully manufacturing and dealing in firearms without a license is no more than five years in prison, a $250,000 fine, and three years of supervised release.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release. If that firearm is possessed or used in furtherance of a drug trafficking crime, a defendant faces a mandatory minimum five years in prison in addition to the sentence received for the underlying charges, and could receive up to life in prison.
These cases are being prosecuted by Assistant United States Attorneys Joe Ansari, Robert Bonar, Nute Bonner, Bryan Calhoun, Scott Davis, Tom Dyke, Larry Fentress, Marisa Ford, Amanda Gregory, Lettricea Jefferson-Webb, Joshua Judd, Corinne Keel, Daniel Kinnicutt, Erin McKenzie, Spencer McKiness, Randy Ream, Mac Shannon, Amy Sullivan, and Stephanie Zimdahl. The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisville Metro Police Department, and the United States Drug Enforcement Administration (DEA).
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to specifically identify the criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Today’s indictments are part of the Project Safe Neighborhoods program.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent
until and unless proven guilty
Man Sentenced to Federal Prison for Traveling to Kentucky to Engage in Sexual Conduct with MinorRead the Press Release
LOUISVILLE, Ky. –United States District Court Judge Rebecca Grady Jennings sentenced Michael M. Natterer, a German national, to 87 months in prison yesterday for traveling from Germany to Kentucky to engage in sexual conduct with a 15-year-old boy, announced United States Attorney Russell M. Coleman.
“Protecting our kids is the most basic function of government,” stated U.S. Attorney Russell Coleman. “The outcome of this case – over seven years in federal prison and removal from our country – is Kentucky law enforcement doing just that.”
Natterer, 23, was charged in an indictment and pleaded guilty to traveling for the purpose of engaging in illicit sexual conduct with a minor. Judge Jennings also ordered Natterer to serve a five-year period of supervised release. There is no parole in the federal system.
According to the plea agreement, Natterer began exchanging messages with the minor in January 2017. On May 30, 2017, when Natterer was 22 years old, and the victim was 15 years old, he traveled from Germany to Shepherdsville, Kentucky, to engage in sexual conduct with the victim who he knew was 15 years old. As part of the plea agreement, Natterer agreed to his removal from the United States after the completion of his sentence.
Assistant United States Attorney Amanda Gregory prosecuted the case. The Federal Bureau of Investigation (FBI) and the Shepherdsville Police Department conducted the investigation.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Former Employee of Container Manufacturing Company Guilty of Tampering with Consumer ProductsRead the Press Release
BOWLING GREEN, Ky. – A former employee of a container manufacturing plant, located in Hart County, Kentucky, pled guilty in United States District Court to tampering with consumer products Friday before United States District Judge Greg N. Stivers, announced United States Attorney Russell M. Coleman.
In 2016, Waylon J. Horton, age 44, worked as an employee of the container manufacturing plant in the area of Print Set-Up on the production line for Styrofoam drinking cups at a specific company facility in Horse Cave, Kentucky. On two separate occasions in July 2016, Horton, with reckless disregard for the risk of death or bodily injury it might cause, placed pieces of broken glass in Styrofoam drinking cups that were then shipped to fast food restaurants. Glass pieces were subsequently found in cups at three different restaurants in Ohio, Kentucky, and Indiana. After receiving complaints, the container manufacturing plant put the distribution of Styrofoam cups that were produced in its facility on hold and seven additional boxes containing Styrofoam cups with broken glass were ultimately found.
At sentencing, Horton could be sentenced to up to 10 years in prison, a period of supervised release of up to three years, and fined up to $250,000. According to the plea agreement, Horton will also owe restitution in an amount to be determined at sentencing. Horton is scheduled for sentencing before Judge Greg N. Stivers on October 11, 2018, at 9:45 AM in Bowling Green.
This case is being prosecuted by Assistant United States Attorneys Amanda Gregory and Marisa Ford and is being investigated by the Federal Bureau of Investigation and the Hart County Sheriff’s Office.
Eight Charged in Marion and Taylor County Drug ConspiraciesRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman today announced the arrests and indictments of eight defendants from Taylor and Marion Counties on conspiracy charges to sell methamphetamine and cocaine. Multiple law enforcement agencies including the Kentucky State Police (KSP), the Columbia, Kentucky, High Intensity Drug Trafficking Area (HIDTA) Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) served federal arrest warrants this morning in an on-going investigation into drug trafficking in south central Kentucky.
“These arrests and indictments are testament to a renewed sense of collaboration amongst those that protect our Commonwealth from narcotics trafficking” stated U.S. Attorney Russell Coleman “As long as some persist in flooding Kentucky communities with their poison, they will be met with federal, state, and local law enforcement standing shoulder to shoulder.”
Eight defendants were charged in three separate indictments on July 11, 2018, by a federal grand jury meeting in Bowling Green, Kentucky. Defendants Christopher Shipp, Matthew Smothers, and Patricia McNear are charged with conspiring to distribute methamphetamine in Marion County, Kentucky, between March and June of 2016. Mickey DeWayne Watson is charged in a four-count indictment with possession and conspiracy to distribute methamphetamine in Taylor County, Kentucky, during June and August of 2016. Further, William Downs, Rashad Dunn, Cali Gomez and Keyaira Grider are charged in a single count indictment with conspiracy to possess and intent to distribute cocaine base during April and May of 2016 in Taylor County, Kentucky.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the KSP and the Columbia HIDTA Task Force with assistance from ATF, DEA and the Lebanon, Campbellsville, and Columbia Kentucky Police Departments.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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Columbia, Kentucky Man Convicted of Arson and Insurance FraudRead the Press Release
BOWLING GREEN, Ky. – A jury convicted a Columbia, Kentucky man yesterday following a five-day jury trial in United States District Court on charges of arson and insurance fraud, announced United States Attorney Russell M. Coleman. The defendant set the fire, which destroyed his home, in order to collect on a $50,000 rental insurance policy. An Adair County Volunteer Firefighter died while fighting the fire.
“The men and women of our fire services are unsung heroes” said U.S. Attorney Russell Coleman “Greed-fueled arson that endangers those public servants will be appropriately dealt with by the Department of Justice.”
The evidence introduced at trial established that the defendant, Steve Allen “Boo” Pritchard, 44, of Columbia, Kentucky, hatched a plan with his girlfriend, co-defendant Brandi Waggener, to set fire to their rental home, located in Columbia, Kentucky, during the early morning hours of June 30, 2011. The Adair County Fire Department arrived on scene at approximately 3:12 AM. While fighting the fire, Volunteer Fireman Charles Sparks suffered a heart attack on the second floor of the home. He was rushed to the hospital and died eight days later on July 8, 2011. In addition to his service as a volunteer firefighter, Sparks was a longtime Kentucky State Fire Marshal.
At trial, Pritchard provided an alibi that he was in Louisville delivering glass for his employer during the fire. However, federal prosecutors disproved his alibi by introducing cell phone location data obtained by the FBI. Several of co-defendants’ family and friends also testified that Pritchard had bragged about starting the fire in order to collect on the insurance policy. Finally, federal prosecutors introduced evidence that established Pritchard had been involved in four previous fires that were set in order to collect insurance proceeds, one of which involved Pritchard setting fire to his own car.
Pritchard will be sentenced in Bowling Green on October 21, 2018, at 9:00 a.m. by United States District Court Judge Greg Stivers. Pritchard faces a mandatory minimum sentence of 7 years in prison up to a maximum sentence of life imprisonment, $500,000 fine, and five years of supervised release. Judge Stivers ordered Pritchard into the custody of the U.S. Marshals Service after the jury announced its guilty verdict. Waggener, who remains free on bond, has already pled guilty to both charges and is scheduled to be sentenced in Bowling Green on July 31, 2018 at 10:15 a.m.
Assistant United States Attorneys David Weiser and Nute Bonner are prosecuting the case. The Federal Bureau of Investigation and the Kentucky State Police conducted the investigation.
Former Officials at Two Western Kentucky Mines Charged with Cheating on Safety and Lying to Regulators About Black Lung-Causing Risks to MinersRead the Press Release
OWENSBORO, Ky. – United States Attorney Russell M. Coleman announced that 8 former supervisory and safety officials at Armstrong Coal, formerly of Madisonville, KY, were charged by a Federal Grand Jury today with Conspiracy to Defraud an agency of the United States Government, the Mine Safety and Health Administration (MSHA), by deceit, trickery and dishonest means of its lawful and legitimate function in enforcing the Mine Safety and Health Act (MSA).
The Indictment charges that the conspirators sought to deceive federal mine safety regulators as to the daily levels of breathable dust at both the Parkway Mine of Muhlenberg County, KY and Kronos Mine of Ohio County, KY. Breathable or “resparable” dust is the primary cause of pneumoconiosis or “Black Lung” in miners. The Federal Grand Jury also charges the eight Armstrong Coal officials with making false statements as to results of tests required to be conducted every 60 days to protect certain ““designated occupations,” that is the dustiest and most dangerous job assignments in a coal mine.
“The health of our miners matters; to Western Kentucky communities and those sworn to protect them” stated U. S. Attorney Russell Coleman “When companies and their senior officials are prepared to disregard the law and put miners at risk, they should also be prepared to face federal prosecutors.”
“Compliance with dust sampling programs is crucial to protecting miners against respiratory illness,” said MSHA Assistant Secretary David G. Zatezalo. “Deliberate disregard for the safety and health regulations that protect workers warrants the most severe penalties allowed under the law.”
The Grand Jury charges that contrary to regulations, Armstrong officials removed dust testing devices early in the miners’ shifts and placed the devices in less dusty or “clean air”; that during a testing period, officials replaced miners who ran the most dust-causing machines with miners who were not wearing the dust testing devices, so that the company would pass the tests; that Armstrong officials fabricated and submitted dust sampling test results on days the mine was shut down or otherwise not in operation; that officials ordered that testing devices be run in “clean air,” before and after shifts, to skew the test results toward passing; that a mine superintendent twice mandated to a safety official to take whatever action necessary to ensure that the company passed dust sampling tests.
Armstrong Coal, now bankrupt, is designated by the Indictment as an unindicted co-conspirator. Those former Armstrong supervisory and safety officials charged include:
- Charley Barber, age 63, of Madisonville, a former Superintendent of Parkway Mine;
- Brian Keith Casebier, age 60, of Earlington, a former Safety Director at Parkway Mine;
- Steven Demoss, age 48, of Nortonville, a former Assistant Safety Director at Parkway Mine;
- Billie Hearld, age 41, of Russellville, a former Section Foreman at Parkway Mine;
- Ron Ivy, age 49, of Manitou, a former Safety Director at Kronos Mine;
- John Ellis Scott, age 61, of South Carrollton, a former employee in the Safety Department at Parkway Mine;
- Dwight Fulkerson, age 40, of Drakesboro, a former Section Foreman who performed dust testing at Parkway Mine; and
- Jeremy Hackney, age 45, of White Plains, also a former Section Foremen who performed dust testing at Parkway Mine.
The Kronos Mine remains in operation under different ownership. The Parkway Mine is no longer open.
The MSA is an Act passed by Congress in 1977, and updated in 2006, to protect miners by preventing the scourges of pneumoconiosis, commonly known as “Black Lung.” MSHA, an agency of the U. S. Department of Labor, is the agency tasked with enforcing the MSA.
This case is being prosecuted by Assistant United States Attorneys Randy Ream and Corinne Keel of the U.S. Attorney’s Office for the Western District of Kentucky and Special Assistant United States Attorneys Mary Sue Taylor and Jason Grover of MSHA. The investigation by the Mine Safety and Health Administration, United States Department of Labor.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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Ten Charged in Western District of Kentucky, as Part of the National Health Care Fraud TakedownRead the Press Release
LOUISVILLE, Ky. –United States Attorney Russell M. Coleman today announced the results of a health care fraud sweep in the Western District of Kentucky as part of the national health care fraud takedown led by the Justice Department. The law enforcement takedown, in the Western District of Kentucky, resulted in charges against ten individuals for their alleged participation in health care fraud schemes, to include unlawful dispensing of controlled substances, including opioids.
“Healthcare fraud is nothing more than theft and drug dealing, though using complex techniques on a large scale” stated United States Attorney Russell Coleman. “Today’s announcement evidences a commitment across law enforcement to hold these offenders accountable for the harm they visit upon Kentucky families and taxpayer resources.
U.S. Attorney Coleman was joined in the announcement by:
Amy Hess, Special Agent in Charge, Louisville Division, Federal Bureau of Investigation stated, “Health care fraud is a growing and serious crime that impacts every city and small town in the Commonwealth. The FBI is dedicated to working with our federal, state, and local partners to seek justice for the victims of health care professionals who have abandoned their oath to do no harm.”
“Doctors have a duty to do no harm and provide competent care to their patients,” said D. Christopher Evans, Special Agent In Charge of the Drug Enforcement Administration’s Louisville Field Division. “The message we are sending today is clear. We will not tolerate drug dealers in lab coats. If you’re a doctor and you’re prescribing dangerous narcotics in a reckless or irresponsible manner, we’re coming after you.”
“Health care fraud costs taxpayers billions of dollars and places our most vulnerable citizens at risk for harm and neglect,” said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General. “Working with our law enforcement partners, we are dedicated to protecting patients and the federal health care programs intended to serve them.”
“This operation by our federal partners and my office is critical each year in stopping those who would harm Kentuckians and our health care system, especially those accused of unlawful distribution and dispensing of controlled substances given our state’s drug epidemic,” Attorney General Andy Beshear said. “I want to thank the offices of our U.S. Attorneys, FBI, DEA, neighboring states' Medicaid Fraud units and others for continuing to fight back against those who defraud our people and our critical government programs.”
“Medicaid fraud leaves in its wake many victims,” Indiana Attorney General Curtis Hill said. “Any licensed providers who commit this offense are taking advantage of those for whom they are supposed to provide care, including the disabled and less fortunate who rely on Medicaid. In addition, they are also fleecing taxpayers whose hard-earned money is used to fund these programs. The investigators and lawyers in our Medicaid Fraud Control Unit are doing good work to help bring lawbreakers to justice. At the same time, we respect the due process to which all are entitled, and all those who stand accused of crimes are certainly presumed innocent until a court finds otherwise.”
“Health care fraud affects every American and today’s announcement illustrates that the IRS and our law enforcement partners are steadfast in our commitment to detecting and dismantling health care fraud schemes and holding perpetrators of these crimes accountable,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation. “Waste, fraud and abuse take critical resources out of our health care system, contribute to the rising cost of health care and degrades the integrity of our health care system and legitimate patient care.”
Anthony S. Gooden, Senior Supervisory Agent, Louisville Division, U.S. Postal Inspection Service. “The United States Postal Inspection Service is dedicated to protecting the United States Mail from criminal attack and criminal misuse. This includes protecting all businesses and postal customers from any form of fraud utilizing the mails. We continuously work with other local, state and federal law enforcement agencies to identify and prosecute anyone utilizing the mail in furtherance of a fraud scheme.”
Steve Conrad, Chief, Louisville Metro Police Department. “This is yet another example of how collaboration between State, Local, and Federal law enforcement strengthens our effectiveness and works to hold people violating the law accountable.”
In the Western District of Kentucky, four separate cases were indicted on June 25, 2018, and two cases were indicted on May 24, 2018, where the defendants made initial appearances yesterday. The charges included unlawful distribution and dispensing of controlled substances, health care fraud, theft from a health care benefit program, paying or offering health care kickbacks, mail fraud, money laundering, conspiracy, and aggravated identity theft.
Specifically, in United States v. Chandra Dundumalla Reddy and Vinodini Dundumalla Reddy: Dr. Chandra Reddy, a licensed physician and Vinodini Reddy, his wife, were charged with two counts conspiracy to commit health care fraud and one count conspiracy for making false statements relating to health care matters. Dr. Reddy was also charged with one count of conspiracy for unlawfully allowing his nurse practitioners to use his DEA number to prescribe controlled substances. The charges stem from defendants’ role in a $390,000 upcoding medical services and “incident to” billing scheme. In addition, Dr. Reddy pre-signed a large number of controlled substance prescriptions for his nurse practitioners, who did not have DEA numbers or had limited prescription writing authority, in order to allow the nurse practitioners to distribute controlled substances to patients while Dr. Reddy was either out of the country or out of the office.
In United States v. Monica Berry and Brandon Gordon: Monica Berry, a medical assistant in Dr. Chandra Reddy’s medical office, and Brandon Gordon, a patient, were charged with one count of conspiracy to unlawfully distribute controlled substances, three counts conspiracy to commit health care fraud, and three counts aggravated identity theft. The charges stem from Monica Berry using Dr. Reddy’s DEA number to issue Schedule II-IV controlled substances in which Brandon Gordon diverted the prescriptions to the street. Some of the people who purchased and/or filled the prescriptions used their insurance, causing insurance carriers to pay for medically unnecessary drugs. The defendants diverted approximately 17,750 units of Hydrocodone, 2,580 units of oxycodone, 1,895 units of Xanax, 210 unit of Ambien, 570 unit of Phentermine, and 600 units of Soma to the street.
In United States v. Yesdel Acosta and Eduardo Chinea-Martinez: Defendants were charged with one count of conspiracy to commit health care fraud, sixteen counts health care fraud, thirteen counts theft from a health care benefit program, thirteen counts aggravated identity theft, ten counts money laundering, and four counts mail fraud. The charges stem from defendants’ role in operating three false-front medical clinics where defendants stole the identity of five physicians, four of which were Kentucky physicians, and numerous patients to unlawfully bill for services never rendered, resulting in $4,700,000 in false medical billings submitted to three insurance companies and $258,000 paid in false medical billings.
In United States v. Osmaro Ruiz: Defendant was charged with one count of conspiracy to commit health care fraud, seven counts health care fraud, seven counts aggravated identity theft, and ten counts of money laundering. The charges stem from defendant operating a false-front pharmacy where he stole and used the identity of patients and doctors to bill for prescriptions the patients never received. The scheme resulted in approximately $858,000 being paid out in fraudulent proceeds.
In United States v. Dr. Peter Steiner: Dr. Steiner, psychiatrist, was charged with one count conspiracy to unlawfully distribute Schedule II-IV controlled substances, thirteen counts to distribute Schedule II controlled substances, and twelve counts to distribute Schedule III controlled substances. The charges stem from Dr. Steiner operating Kentuckiana Mental Health Associates, a mental health and opioid addiction practice, where Dr. Steiner prescribed medically unnecessary drugs that were also prescribed outside the usual course of professional practice. He prescribed thousands of units of stimulants and Buprenorphine. He unlawfully distributed opiates as well.
In United States v. Dr. Bingston Crosby and Lacy Black: Dr. Crosby, chiropractor and owner of Crosby Chiropractic Center, Inc., and Lacy Black, Crosby’s runner/marketer, were charged with one count of conspiracy to commit health care fraud, and each one count of paying or offering health care kickbacks. Crosby is also charged with eight counts health care fraud, seven counts of money laundering, and seven counts mail fraud. Dr. Crosby paid Black to recruit Kentucky Medicaid and private auto insurance patients to treat at his chiropractic clinic. Black promised the patients cash or other remunerations to receive treatment at the chiropractic clinic. Crosby billed for services not rendered when he added charges for treatment patients did not receive.
In addition, our law enforcement partners executed multiple search warrants over the last four weeks related to alleged health care fraud and opiate overprescribing offenses. On Monday, May 21, 2018, a search warrant was executed at Ft. Knox, Kentucky at a pediatrician’s office. On Tuesday, June 12, 2018, six search warrants were executed at six different locations around Louisville, Kentucky, including four pain clinics and one residence. Finally, two warrants were executed on June 22, 2018, at an Oncologist’s practice in Elizabethtown, Kentucky and the doctor’s residence in Louisville, Kentucky.
These cases are being handled by Assistant United States Attorneys Joe Ansari, Lettricea Jefferson-Webb, and Robert Bonar. U.S. Attorney Coleman acknowledged and credited the law enforcement agencies investigating these cases: Federal Bureau of Investigation (FBI), U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), U.S. Drug Enforcement Administration (DEA), U.S. Department of Labor (DOL), United States Postal Inspection Service (USPIS), Internal Revenue Service Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS), Louisville Metro Police Department (LMPD), Kentucky State Police (KSP), Barren River Drug Task Force, Indiana and Kentucky Medicaid Fraud Control Units, Kentucky Cabinet for Health and Family Services – Office of Inspector General (CHFS-OIG), and the Kentucky Department of Insurance (KYDOI).
Earlier today, Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar II, announced the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving over 590 charged defendants across 58 federal districts, including over 150 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving over $2 billion in false billings. Of those charged, today’s action also involved charges against over 150 defendants, including doctors, for their roles in prescribing and distributing opioids and other dangerous narcotics, amounting to more than 13 million illegal dosages of opioids. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from June 2017 to the present, 587 providers have been served with exclusion notices for conduct related to opioid diversion and abuse.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
California Man Sentenced to over 23 Years for Violating Federal Drug LawsRead the Press Release
LOUISVILLE, Ky. – United States District Judge Greg N. Stivers sentenced Charles Henry Ickes, 36, to 280 months in prison followed by 10 years’ Supervised Release, announced United States Attorney Russell M. Coleman.
In March, a federal jury found Ickes guilty of conspiracy to possess with the intent to distribute 50 grams or more of actual methamphetamine after a two-day trial. The evidence introduced during trial showed that Ickes was the source of supply for 100% pure crystal methamphetamine being shipped to the Bowling Green, Kentucky, area from California.
“If like Mr. Ickes you choose to bring substantial amounts of drugs into Kentucky communities, you should expect to spend a substantial amount of time in federal prison” stated U.S. Attorney Russell M. Coleman.
Jordan Grider met Ickes while travelling in California. She later introduced him to Adaryll White, knowing that both were involved in drug trafficking. Ickes initially sent hash oil, dabs and pills – but the drugs didn’t move well. He later fronted eight ounces of crystal methamphetamine to White who distributed the drugs in Bowling Green, Kentucky, through Jason Dean Borden and Joshua Preston Moore.
Law enforcement officials became aware of the drug trafficking when a United States Priority Mail package was intercepted. Execution of a search warrant on the package revealed the presence of one and one-half pounds of crystal methamphetamine. Later forensic testing revealed 100% purity. The Warren County/Bowling Green Drug Task Force became involved in the controlled delivery of the package to White. Law enforcement officials monitored further delivery to Borden at which point he was arrested. Further investigation revealed that Borden used his nephew, Moore, to further the drug trafficking.
Bank records, telephone records, and recorded communications revealed Ickes as the source of supply for the methamphetamine. In the month of January 2015, alone, $14,100.00 was deposited into Ickes’ bank account separate from the VA disability. His only legitimate source of income was a VA disability check for approximately $3,100.00 each month. Trial evidence further showed that the methamphetamine had been imported from Mexico and that Ickes owed “Mexicans” for the drugs he had shipped to Kentucky.
There is no parole in the federal criminal justice system. Ickes faced a mandatory minimum term of imprisonment of 20 years because he had a prior drug felony conviction from California. In 2012, he was convicted of possessing one ounce of methamphetamine for the purpose of sale. He must serve at least 85% of the sentence before consideration for discharge. He remains in the custody of the United States Marshals service pending designation by the Bureau of Prisons.
Assistant United States Attorney Jo E. Lawless prosecuted the case with assistance from the Warren County Commonwealth’s Attorney’s Office and Warren County Attorney’s Office. The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation in conjunction with the Warren County/Bowling Green Drug Task Force. The Task Force is made up of law enforcement officials representing federal, state and local entities. Agencies involved in this investigation and prosecution included United States Postal Inspection Service, Kentucky State Police, and the Bowling Green Police Department.
Jamesy Havens Sentenced as Leader of Fraud RingRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced today that Senior United States District Judge Charles R. Simpson III sentenced Jamesy Havens, age 42, of Louisville, Kentucky, to 70 months in prison followed by 3 years of supervised release for conspiracy to commit mail fraud and multiple money laundering offenses. The Court ordered Havens to pay restitution of $1,449,482.66 to the victims of his scheme.
The Court sentenced Havens and his co-defendants for their participation in a fraudulent scheme that defrauded over 39 lenders who loaned money for the purchase of cars from May 2013 to August 2015. The total amount of loss to the lenders was $1,449,482.66. The Court sentenced co-defendant Ronald Brent Lovell, age 36, of Louisville, Kentucky to 37 months in prison, 3 years supervised release, and ordered him to pay $545,274 in restitution for conspiracy to commit mail fraud and three counts of money laundering. The Court sentenced co-defendant Jasen Coon, age 40, of Florida, to 27 months in prison, 3 years supervised release for conspiracy to commit mail fraud and two counts of money laundering, and ordered him to pay $171,398.31 in restitution. The Court sentenced Co-defendant Danny Lee Coslow, age 50, of La Grange, Kentucky to 21 months in prison and 3 years supervised release for conspiracy to commit mail fraud and five counts of money laundering. The Court ordered Coslow to pay $571,775.22 in restitution. The Court sentenced Christopher Peplinski, age 44, of Michigan, to 3 years’ probation for conspiracy to commit mail fraud and four counts of money laundering. The Court ordered Peplinski to pay $257,746.41 in restitution. The Court sentenced Co-defendant David Farnsworth, age 52, of Louisville, Kentucky, to 3 years of probation and ordered him to pay $302,525.34 in restitution. There is no parole in the federal system for those sentenced to prison terms.
According to the plea agreement filed in the case, the United States’ sentencing memorandum, and testimony during the sentencing hearing, Havens and his co-conspirators applied for car loans with no intent of repaying them. Those involved in the scheme subsequently fraudulently denied applying for the loans and claimed that someone else had stolen their identities and submitted the loan applications. Havens and his co-conspirators laundered the loan proceeds through false businesses and bank accounts designed to appear as legitimate car dealerships. They then used the laundered funds for their own personal use. The loans ultimately defaulted. In order to remove the defaulted loans from their credit histories and to interfere with legitimate collection efforts, Havens and the co-conspirators submitted false identity theft claims to credit reporting agencies claiming they were victims of identity theft. In order to support their identify theft claims, Havens and others created or filed false police reports.
Assistant United States Attorney Joshua Judd prosecuted the case. The United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigations, the Federal Bureau of Investigation, and the United States Secret Service investigated the case.
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Shepherdsville Man Convicted of Selling Counterfeit Bicycle Helmets on EbayRead the Press Release
LOUISVILLE, KENTUCKY—After a four day trial, Matthew S. Stepp, age 40, of Shepherdsville, Kentucky, was found guilty today of eight counts of mail fraud and three counts of trafficking in counterfeit goods, United States Attorney Russell M. Coleman announced.
“What might appear on its face to be an esoteric white collar prosecution is, in fact, an all-out effort to keep kids and families safe” said U.S. Attorney Russell Coleman “This office will continue to work with our federal law enforcement partners to protect Americans from counterfeit personal safety equipment and companies from theft of their intellectual property.”
Martin H. Nguyen, the former General Counsel of BRG Sports – which owned one of the helmet manufacturers victimized by the defendant – stated “This is a sterling example of industry and government collaborating for the public benefit. The private and public sectors should remain constantly vigilant in both enforcement of intellectual property rights and protection of consumers.”
Stepp was charged with conducting a scheme to defraud consumers by marketing and selling high-end, counterfeit bicycle helmets on eBay between May 2014 and November 2014. Stepp had purchased the counterfeit helmets for pennies on the dollar from Ali Express, a Chinese website. Stepp was also charged with three counts of trafficking in counterfeit goods for selling counterfeit Specialized, Giro, and Catlike helmets on eBay.
During trial, representatives from Specialized testified that in mid-October 2014 they realized that Stepp was marketing Chinese counterfeit Specialized S-Works Prevail bicycle helmets for sale, and that Stepp was the first American distributor of Chinese counterfeit Specialized bicycle helmets on eBay. Concerned for customer safety, Specialized immediately notified eBay and the National Intellectual Property Rights Coordination Center (NIPRCC), who immediately contacted Homeland Security Investigations in Louisville. A search warrant was executed at Stepp’s home on November 6, 2014, where 45 counterfeit helmets were seized. Additional packages containing counterfeit helmets that Stepp had placed in the mail for delivery were also seized from the Post Office.
During trial, the United States introduced evidence showing that Stepp purchased counterfeit Specialized S-Works Prevail, Giro Aeon, and Catlike Whisper bicycle helmets on Ali Express for between $50 and $70, and sold those helmets on eBay for upwards of $150. The retail value of the helmets was over $200. Sample counterfeit Specialized and Giro helmets seized from Stepp were tested to see if they satisfied Consumer Product Safety Commission safety standards. The counterfeit helmets were found not to contain roll cages or the internal reinforcements that are standard in high-end authentic Specialized and Giro bicycle helmets. When placed on a head form and dropped onto a testing surface at approximately 11 miles per hour, the counterfeit helmets broke into pieces during impact testing, resulting in direct contact between the head forms and the testing surface. Testimony at trial revealed that a consumer wearing one of the counterfeit helmets and suffering a similar impact might suffer a fractured skull, brain damage, or death.
Stepp will be sentenced by United States District Court Judge Claria Horn Boom in Louisville on September 10, 2014 at 10 a.m. The case was investigated by the Department of Homeland Security/Homeland Security Investigations, and the United States Postal Inspection Service, and was prosecuted by Assistant United States Attorneys Daniel P. Kinnicutt and David R. Weiser, and paralegal Elizabeth Fauxpoint.
Louisville Man Sentenced to 10 Years in Prison for Violating Federal Child Exploitation LawsRead the Press Release
LOUISVILLE, Ky. – United States District Judge David J. Hale sentenced Robert L. Tomlinson, 56, to 10 years in prison followed by a 15-year term of Supervised Release, announced United States Attorney Russell M. Coleman. There is no parole in the federal system. Tomlinson remains in the custody of the United States Marshals Service.
Tomlinson previously admitted to online communications with a person he believed to be a 15-year-old girl for the purpose of meeting her to engage in sexual conduct. According to the Plea Agreement and other Court records, law enforcement officials became aware of Tomlinson’s criminal conduct through an online undercover operation. While authorized by the Attorney General to conduct undercover operations within the Commonwealth of Kentucky, an investigator with the Kentucky Attorney General’s Department of Criminal Investigations conducted such an operation on March 14, 2017. That day, the investigator responded to a Craigslist ad posted in the Louisville personals section. The investigator responded to the ad over the Craigslist server. He did so in an undercover persona of a 15-year-old female (15YO) living in Louisville, Kentucky.
The person who posted the ad (later determined to be Tomlinson), responded back the same date. When asked by Tomlinson for the undercover persona’s age, the investigator responded “15.” The conversations lasted several weeks over text message and email. On April 1, 2017, the investigator agreed to Tomlinson’s request to meet.
On April 5, 2017, investigators watched Tomlinson arrive at the agreed upon location. Law enforcement officials approached Tomlinson’s vehicle, removed him, and located an LG model 550 smart phone in his possession. The investigator observed the screen was unlocked and that the ongoing conversation with the investigator was open. Later forensic examination of the phone confirmed it was the device Tomlinson had used for communicating with the investigator.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Attorney General’s Office – Department of Criminal Investigations conducted the investigation with support from the United States Secret Service.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Former Oldham County EMS Worker Sentenced to 30 Years in Prison for Violating Federal Child Exploitation LawsRead the Press Release
LOUISVILLE, Ky. – Senior United States District Judge Thomas B. Russell sentenced Richard Wayne Johnson, 39, to 30 years in prison followed by a life term of Supervised Release, announced United States Attorney Russell M. Coleman. There is no parole in the federal system. Johnson remains in the custody of the United States Marshals Service.
Johnson previously admitted to advertising, distributing and possessing child pornography. Under federal law, child pornography includes any images or videos that depict someone under the age of 18 engaging in sexually explicit conduct.
According to the plea agreement and other court records, law enforcement officials initially became aware of Johnson’s conduct as the result of Cybertips from the National Center for Missing and Exploited Children. The online service provider, America Online (AOL) reported that one of their users was transferring child pornography by email. The email account traced back to Johnson. In the message, Johnson noted that he had “pics/videos to trade” and claimed to be rebuilding his child pornography collection because the laptop had been destroyed. Johnson attached a video of child pornography and asked for materials in return. The video included several clips involving three different female children under the age of six. The girls were being sexually abused by adult men.
Separate from the Cybertips, on September 13, 2013, the Kentucky State Police received a complaint from the Oldham County EMS. A KSP Detective spoke with the Executive Director of Oldham County EMS and learned that the Executive Director wanted to file a complaint regarding the suspicious behavior of an employee, Johnson. According to the complaint, Johnson had recently signed up for an EMT refresher course. As part of signing up for that course, Johnson provided an email address that was unusual and raised concerns among higher ranking EMS supervisors. Supervisors searched the email address using Google and found it was linked to several sites that appeared to be dedicated to incest and sex with children. Law enforcement officials also discovered Johnson’s use of the email for trading child pornography. During the investigation into one such account, the Detective received the message: "Yes I trade young. You send first," from Johnson.
While executing a state Search Warrant on Johnson’s home, Kentucky State Police Detectives discovered evidence suggesting Johnson’s actual sexual abuse of a child. The Commonwealth’s Attorney for Oldham County prosecuted Johnson for the crimes of incest and sodomy of a child. That prosecution resulted in a 17-year sentence of imprisonment. The federal sentence will be served after Johnson completes the state sentence.
The search of Johnson’s residence also resulted in the seizure of digital devices. Forensic review of the devices showed the presence of thousands of files depicting the sexual abuse of children. He had several labeled files where he stored the child pornography images.
Assistant United States Attorney Jo E. Lawless prosecuted the case with assistance from the Oldham County Commonwealth’s Attorney Courtney T. Baxter. The Kentucky State Police conducted the investigation.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Western Kentucky Man Sentenced to Prison for Federal Archaeological ViolationsRead the Press Release
Louisville, Ky. – U.S. District Judge Greg N. Stivers sentenced Gary Womack, Age 60, from Woodburn, Simpson County, Kentucky, to 15 months imprisonment for 3 felony violations of the federal Archaeological Resources Protection Act (ARPA). Womack had previously pleaded guilty to the violations on March 8, 2018.
The case resulted from a three-year undercover investigation by the National Park Service, based upon allegations that Womack possessed human remains which originated from Mammoth Cave National Park. The Federal Bureau of Investigation (FBI) assisted Park Service agents throughout.
The undercover investigation revealed Womack’s dealings in artifacts removed from the graves of Native Americans buried in caves and rock shelters in South Central Kentucky and also burials from as far away as the Ohio and Mississippi Rivers. Womack dealt in artifacts from the so-called “G.E. Mound” case prosecuted in the Southern District of Indiana in 1992. Artifacts recovered from that case were supposed to have been returned and re-buried at a site in Posey County, Indiana; however, Womack purchased artifacts from the previous prosecution in 2015 in Boonville, Indiana for approximately $2,500, and transported them to Kentucky, where a portion of them were sold to the undercover federal agent. Womack also pled guilty to two additional counts charging him with trafficking in archaeological resources (Native American artifacts) from the Western United States. All artifacts in the case have been recovered and will be repatriated according to law.
In sentencing, Judge Stivers told Womack that he was disturbed that the defendant had chosen to dig the graves of the ancestors of Native Americans for profit and had done so while being fully aware of the laws he had chosen to violate.
A letter from Ben Barnes, Second Chief of the Shawnee Tribe, of Miami, Oklahoma, was made a part of the record and read at the sentencing hearing. The letter states, in part: “The remains that are within the soils of our original homelands contains the hallowed remains of human beings, our ancestors. We would urge the court to send a message to all those what would desecrate a grave, that ARPA violators will be prosecuted to the fullest extent of the law.”
This case was prosecuted by Assistant United States Attorney Randy Ream. The investigation was conducted by the National Park Service Law Enforcement Division and the Bowling Green Resident Agency of the FBI.
Brandenburg Man Pleads Guilty to Attempted Online Enticement and Distribution of Obscene Material to A MinorRead the Press Release
LOUISVILLE, Ky. – A Brandenburg, Kentucky, man pleaded guilty to two child exploitation offenses on Tuesday, May 22, 2108, in United States District Court, announced United States Attorney Russell M. Coleman.
Jeffrey Adam Stone, 31, admitted to online communications with a person he believed to be a 15-year-old girl for the purpose of meeting her to engage in sexual conduct. He also admitted to sending obscene material to the girl.
According to the Plea Agreement and other court records, law enforcement officials became aware of Stone’s conduct as the result of an online undercover operation. In November 2016, an investigator with the Kentucky Attorney General’s Department of Criminal Investigations placed an ad on Craigslist. That same day, Stone responded to the ad. During their initial communications, the investigator advised that he was a 15-year-old girl. Stone continued the communications and directed them to a sexual nature. Specifically, on numerous occasions, he requested to meet the girl to engage in sex acts. He also sent sexually explicit pictures of himself to the person he thought was a 15-year-old girl.
Stone will be sentenced on August 15, 2018, at 10:30 a.m. before United States District Judge David J. Hale. Stone faces a statutorily mandated sentence of 10 years in prison and at least five years of Supervised Release. There is no parole in the federal system. Stone remains in the custody of the United States Marshals Service.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Office of Attorney General’s Department of Criminal Investigations conducted the investigation with assistance from the United States Secret Service.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Bowling Green Man Pleads Guilty to Violating Federal Drug and Gun LawsRead the Press Release
LOUISVILLE, Ky. – A Bowling Green, man pleaded guilty to multiple drug and firearm offenses yesterday in United States District Court, announced United States Attorney Russell M. Coleman.
Christopher Michael Compton, 40, admitted to aiding and abetting the knowing and intentional possession with the intent to distribute methamphetamine and marijuana. He also admitted attempting to knowingly and intentionally manufacture methamphetamine and being a prohibited person in possession of firearms and ammunition.
According to the Plea Agreement and other court records, law enforcement officials became aware of Compton’s criminal conduct on November 22, 2016, after his wife left the scene of an automobile accident and went to their home. While conducting an investigation concerning the accident, a Warren County Deputy Sheriff went to the home and smelled marijuana coming from inside. In consultation with the Warren County Commonwealth’s Attorney’s Office, the Deputy Sheriff obtained a state search warrant. During execution of the search warrant, law enforcement officials discovered methamphetamine, marijuana, drug paraphernalia and the remnants of a methamphetamine “cook.” Later forensic testing confirmed a weight of 32.580 grams of marijuana and 7.002 grams of methamphetamine.
In addition to the drugs and related items, law enforcement officials also discovered seven firearms and assorted ammunition. The weapons included four handguns, two rifles and one shotgun. Prior to November 22, 2016, Compton had been convicted of four felony offenses in Butler County, KY. Those convictions involved drug possession, drug trafficking, methamphetamine manufacturing and carrying a concealed deadly weapon. Additionally, Compton was an unlawful user of controlled substances. Due to his drug use and prior felony convictions, he was prohibited from possessing the firearms and ammunition under federal law.
Compton will be sentenced on August 27, 2018, at 9:30 a.m. before United States District Greg N. Stivers. Compton faces potential penalties of 65 years in prison, a fine of up to $2,750,000.00, and at least three years of Supervised Release. There is no parole in the federal system. Compton remains in the custody of the United States Marshals Service.
Assistant United States Attorney Jo E. Lawless prosecuted the case with assistance from the Warren County Commonwealth’s Attorney’s Office. The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation in conjunction with the Warren County / Bowling Green Drug Task Force. The Task Force is made up of law enforcement officials representing federal, state and local entities. One such agency member, the Warren County Sheriff’s Office initiated the investigation.
Louisville Man Pleads Guilty to Attempted Distribution of Obscene Material to A MinorRead the Press Release
LOUISVILLE, Ky. – A Louisville man pled guilty to violating federal child exploitation laws earlier today in United States District Court, announced United States Attorney Russell M. Coleman. Scott Louis Craven, 36, admitted to online communications with a person he believed to be a 15-year-old girl. During those communications, he sent obscene materials to what he believed to be the youth.
“One of the fundamental duties of government is to protect the most vulnerable among us” stated U.S. Attorney Russell Coleman. “The Department of Justice will continue to work alongside our law enforcement partners to vigorously prosecute those that target our children for their own foul gratification.”
According to the plea agreement and other court records, during April 2017, an investigator with the Kentucky Attorney General’s Office – Department of Criminal Investigations conducted an online undercover investigation. During that investigation, the investigator (in his undercover capacity), was contacted by Craven while both were using the social media platform KIK. The investigator identified himself as a 15-year-old girl from Louisville. During the online conversations, particularly on April 28, 2017, Craven sent the undercover nude images of himself as along with sexually graphic videos.
Craven will be sentenced on August 13, 2018, at 11:00 a.m. before United States District Judge Claria Horn Boom. Craven faces a maximum potential sentence of 10 years in prison, a $250,000.00 fine and at least five years of Supervised Release. There is no parole in the federal system. Craven remains in the custody of the United States Marshals Service.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Office of Attorney General’s Department of Criminal Investigations conducted the investigation with assistance from the Louisville Metro Police Department and the United States Secret Service.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Postal Service Worker Sentenced to 10 Years in Prison for Attempted Online Enticement and Distribution of Obscene Material to A MinorRead the Press Release
LOUISVILLE, Ky. – Chief United States District Judge Joseph H. McKinley, Jr., sentenced Timothy Scott Walters, 51, to 10 years in prison followed by 20 years of Supervised Release, announced United States Attorney Russel M. Coleman. There is no parole in the federal system. Walters remains in the custody of the United States Marshals Service.
Walters previously admitted to online communications with a person he believed to be a 15-year-old girl for the purpose of meeting her to engage in sexual conduct. He also admitted to sending obscene material to the same person.
According to the plea agreement and other court records, law enforcement officials became aware of Walters’ conduct as the result of an online undercover operation. In March of last year, an investigator responded to a Louisville Craigslist advertisement in which the poster was seeking a young female for what appeared to be sexual purposes. The investigator replied to the ad and advised that he was a 15-year-old girl. Walters then sought details about the girl’s sexual history, sent graphic sexual photos of himself, and requested to meet her to engage in sex acts.
The investigator determined that Walters worked for the United States Postal Service in Elizabethtown, Kentucky. After being advised of his constitutional rights and waiving those rights, Walters admitted that he had placed the Craigslist ad that resulted in the conversation with a 15-year-old girl. He went on to state that he used the Craigslist personals site in the past to meet people for sexual encounters. In his estimate he had used the site 10 to 15 times to meet individuals for sex. He also admitted that the photos he sent to the girl were pornographic and confirmed his knowledge that the age of consent in Kentucky is 16.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Office of the Attorney General, Department of Criminal Investigations conducted the investigation with assistance from United States Postal Inspection Service.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Bowling Green Physician Sentenced to 96 Months in Prison for Unlawfully Distributing and Dispensing Controlled Substances and Health Care FraudRead the Press Release
BOWLING GREEN, Ky. –Warren County, Kentucky, physician Charles Fred Gott was sentenced in United States District Court, before United States District Judge Greg N. Stivers, to 96 months’ imprisonment for multiple charges of unlawful distribution and dispensing of controlled substances and health care fraud, announced United States Attorney Russel M. Coleman.
Charles Fred Gott, age 66, a formerly licensed physician in the Commonwealth of Kentucky, was initially indicted by a grand jury in Bowling Green on June 10, 2015. Today, Gott was sentenced in accordance with his plea of guilty, entered on February 5, 2018, and ordered to pay restitution and Court costs in the amount of $162,366.46, and forfeited his medical license, which had previously been suspended. Furthermore, Gott was order to pay a fine in the amount of $17,500.
Today’s sentence covers criminal activity between 2006 and September 19, 2013, in Warren County, Kentucky. Gott admitted to conspiring with members of his office and others to knowingly and intentionally distribute and dispense, not for a legitimate medical purpose in the usual course of professional practice, Schedule II, Schedule III and Schedule IV controlled substances. Included are 14 counts of unlawfully dispensing Methadone and Fentanyl – Schedule II controlled substances, Hydrocodone – a Schedule III controlled substance, and Clonazepam and Oxymorphone – Schedule IV controlled substances – between June 10, 2010 and September 19, 2013.
Further, between 2006 and September 19, 2013, Gott admitted to falsely and fraudulently billing various health care benefit programs, including Medicare and Medicaid, among others, by submitting claims for office visits at a higher code than the service actually provided for patients under his care.
Also, during that same period, Gott falsely and fraudulently billed various health care benefit programs, including Medicare and Medicaid, among others, by submitting claims for medically unnecessary spirometry tests for patients and electrocardiogram (EKG/ECG) tests for patients.
This case is being prosecuted by Assistant United States Attorneys Mac Shannon, Lettricea Jefferson-Webb and Joseph Ansari. This case was investigated by the Warren County Drug Task Force, Drug Enforcement Administration (DEA) Drug Diversion Section, the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), Kentucky State Police, Kentucky Office of the of the Attorney General, Office of Medicaid Fraud and Abuse, and Federal Bureau of Investigation (FBI). The Warren County Drug Task Force, led by Director Tommy Loving, along with detectives from KSP’s West Drug Enforcement Branch, were instrumental in identifying and developing this case for federal prosecution.
United States Attorney Russell Coleman Announces His Appointment of A Full-Time Law Enforcement CoordinatorRead the Press Release
LOUISVILLE, Ky. - United States Attorney Russell M. Coleman announced today the appointment of Major Jeremy V. Thompson previously of the Kentucky State Police (KSP) as the U.S. Attorney’s new Law Enforcement Coordinator.
“One of the first executive orders issued by the president was to “back the blue” and we are committed to building upon our relationships with law enforcement partners across the district, from Prospect to the Purchase” stated United States Attorney Russell M. Coleman. “Major Thompson’s more than two decades with KSP and fire in his belly for protecting Kentuckians will be a force-multiplier as we continue to expand our targeting of drug trafficking organizations, illegal gun crimes, and gangs in our Commonwealth.”
Mr. Thompson began his law enforcement career with the Kentucky State Police as a Trooper and was ultimately promoted to Major. Most recently, he served as the West Troop Major in the Operations Division where he supervised 8 Post Commanders in the western half of the Commonwealth, covering 64 counties and was responsible for over 300 personnel, both sworn and civilian. In that capacity Thompson served on the command staff of the KSP Commissioner. Thompson previously served as an Assistant Post Commander and as an Investigations Sergeant at Post 4 in Elizabethtown. He is a graduate of the Administrative Officers Course at the Southern Police Institute where he was the Valedictorian and Director’s Award Recipient. Thompson is also a decorated veteran of the United States Air Force.
As Law Enforcement Coordinator, his new duties will involve advising the U.S. Attorney and serving as a liaison with federal, state, and local law enforcement agencies in the 53 counties of the Western District of Kentucky which stretches from suburban Louisville to the river counties west of Paducah. Previously, the Law Enforcement Coordinator position was a collateral duty but U.S. Attorney Coleman chose to elevate the role to a full-time assignment given its import to the U.S. Attorney’s priorities of addressing violent crime and drug trafficking.
Mr. Thompson resides with his family in Radcliff, Kentucky. He is active in the Hardin County community as a volunteer basketball, baseball and softball coach.
“The announcement today of a full-time Law Enforcement Coordinator of Jeremy Thompson’s caliber is one more down payment on our promise to stand with our law enforcement partners in tackling crime in our entire district,” stated U.S. Attorney Coleman.
Tennessee Man Pleads Guilty to Transportation Across State Lines of Money and Securities Taken by FraudRead the Press Release
BOWLING GREEN, Ky. –A Red Boiling Springs, Tennessee man pleaded guilty four counts of interstate transportation of stolen property yesterday, in United States District Court, before United States District Judge, Greg N. Stivers, to defrauding investors of $194,000 as part of a scheme to develop a call center in Tompkinsville, Kentucky, announced United States Attorney Russell M. Coleman. There is no parole in the federal prison system.
John Cook, age 57, pleaded guilty yesterday to four counts of interstate transportation of stolen property. According to a plea agreement entered in open court, Cook admitted that in September 2013, he solicited $194,000 in investment funds from four individuals in Monroe County, Kentucky, for the purpose of developing a call center. In exchange for the investment funds, Cook provided a written promissory note explaining that the money would be used for the call center and described an unrealistic return on investment.
Cook created Minority Holdings and Management LLC (“Minority Holdings”) in September 2013. The promissory notes were issued by Cook in the name of Minority Holdings. Cook also opened a bank account for Minority Holdings at the bank of Putnam County in Tennessee.
Cook cashed the checks, deposited the checks in the Minority Holdings accounts, or converted checks to cashier’s checks. Cook used a lot of the investment money to operate the Donoho Hotel located in Red Boiling Springs, TN. Cook spent a minimal amount of investment funds on call center related expenses. However a majority of the expenses of the account were used for the Donoho Hotel payroll and for his personal expenditures. There has been little to no development of a call center in Tompkinsville.
Cook transported and caused to be transported from Kentucky to Tennessee, stolen, converted, and fraudulently obtained checks and monies from investors that he knew he was stealing, converting and taking by fraud at the time. All payments exceeded $5,000. All payments were solicited in Monroe County in the Western District of Kentucky.
Cook is scheduled for sentencing before Judge Stivers on July 31, 2018 at 9:00 a.m. CDT in Bowling Green.
This case was prosecuted by Assistant United States Joshua Judd and was investigated by the Federal Bureau of Investigation (FBI).
Western Kentucky Physician Convicted of Illegal Distribution of Controlled SubstancesRead the Press Release
Prescribed opiate pain medications outside the course of professional medical practice and without a legitimate medical purpose to multiple patients
BOWLING GREEN, Ky. – A Franklin, Kentucky, physician was convicted today on 15 counts of illegal distribution of controlled substances by way of prescribing opiate pain medications outside of the course of professional medical practice and without a legitimate medial purpose, announced United States Attorney Russell M. Coleman.
“Kentucky families rely on our doctors to ‘do no harm,’ however, in this case, a Western Kentucky doctor was no more than a drug dealer in a white coat,” stated United States Attorney Russell Coleman. “As much as we respect the medical profession, this is a warning to physicians who purposefully overprescribe pain pills without a legitimate medical purpose - you will lose your medical license and ultimately serve time in federal prison.”
Roy D. Reynolds, age 69, was convicted following a nine day trial, before United States District Court Judge Greg N. Stivers. Reynolds was taken into federal custody following the announcement of the verdict.
Reynolds was a doctor practicing in Franklin, Kentucky, in Simpson County during the time of the illegal activity. Reynolds was the treating physician to patient Jackie Hughes at the time of Hughes’s death and prescribed opioids including oxycodone, hydrocodone, and Xanax to an additional four patients, without a legitimate medical purpose, who were not considered good candidates for opioids. The patients had medical histories of mental illness, doctor-shopping, and additional risk factors for opiate abuse and addiction.
According to evidence presented at trial, from 2010 to 2013, the covered period of the illegal activity, Dr. Reynolds prescribed more Oxycodone than any other primary care prescriber in Simpson County and ranked among the top 5% of prescribers in the Commonwealth of Kentucky. Specifically, in 2011, Reynolds prescribed 132,372 oxycodone pills (second most prescribed oxycodone pills by a primary care physician in Simpson County was 9,765) and in 2012 Reynolds prescribed 139,667 pills (second most oxycodone pills prescribed by a primary care physician in Simpson County was 11,794). In February of 2013, Reynolds lost his DEA license to prescribe opiate pain medications. However, during the first five week period, Reynolds prescribed more opiate pain medications than any other Simpson County physician prescribed during 2013.
In 2011, Reynolds’ patient, Jackie Hughes, had a history of illegal drug usage and psychiatric issues which were documented in the patient charts. Further, Hughes had a KASPER report also suggesting opiate abuse and diversion. Although Hughes made various somatic complaints, Dr. Reynolds never objectively documented a legitimate source of pain. Reynolds supplied Hughes with opioids and benzodiazepines for over ten years – when an opiate centric treatment plan was contraindicated because of risk factors inherent with a history of drug abuse.
Nonetheless, Dr. Reynolds placed Hughes on a regimen of chronic opiate therapy, and did not monitor or enforce patient accountability, (did not perform urine screens or pill counts), and did not attempt to wean Hughes off opiates. Between February 2009 and April 2011, Dr. Reynolds repeatedly prescribed oxycodone, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, to Hughes outside the course of professional medical practice and without a legitimate medical purpose.
Reynolds is scheduled to be sentenced by U.S. District Judge Stivers, on July 31, 2018, at 9:30am CST, in Bowling Green.
This case is being prosecuted by Assistant United States Attorneys David Weiser and Rob Bonar with assistance from paralegals Mary Kennedy and Jane Bauer, and is being investigated by the Federal Bureau of Investigation (FBI), Kentucky State Police, and the Kentucky Office of Inspector General, Division of Audits and Investigations, Drug Enforcement and Professional Practice Branch.
Owners of Hardin and Bullitt County Moving Companies Sentenced for Defrauding the ArmyRead the Press Release
LOUISVILLE, Ky. – The owners of three moving companies, located in Bullitt and Hardin Counties in Kentucky, were sentenced today in United States District Court by Senior Judge Charles R. Simpson, to serve 15 months in prison, serve a three year period of supervised release, and pay a $7,500 fine, for overbilling the United States Army for Household Good Shipment moves of Soldiers, announced United States Attorney Russell M. Coleman. There is no parole in the federal prison system.
"This is a victory for taxpayers and a warning to those who would line their pockets by engaging in a fraud against the United States, ” stated United States Attorney Russell Coleman. This office is committed to working with our federal partners in pursuing criminal charges and financial penalties against dishonest government contractors.”
“These sentencings should serve as a deterrent to defense contractors at any level who would engage in dishonest and fraudulent practices in order to increase their profit margin,” said Brian Hauck, Special Agent-in-Charge of the U.S. Army Criminal Investigation Command's North Central Fraud Field Office. "We will diligently pursue those engaged in criminal activity that impacts the integrity of U.S. Government programs and resources within our purview."
“U.S. Armed Forces members sacrifice a great deal while serving their country, including making frequent duty station moves with their families and household goods,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “It is unacceptable for any DoD contractor to manipulate military Permanent Change of Station moves through corrupt practices to line their pockets while providing essential transportation services to our Warfighters. These sentences highlight the effectiveness of DCIS investigations, in concert with our law enforcement partners, to combat fraud, waste, and abuse throughout the Department of Defense.”
Lonnie Curl, 63, of Brooks, Kentucky, is jointly and severally liable with the codefendant, William Kenneth Montgomery, 59, of Shepherdsville, Kentucky for the full amount of restitution due totaling $132,413.26 to the United States Army.
Both defendants admitted in open court in their plea agreements that they owned Lynn Moving and Storage, E-Town Moving and Storage, and Shadowens Moving and Storage. The three companies provided household good shipment (HHG) moves to members of military through the transportation office located at Ft. Knox in Radcliff, Kentucky, in the Western District of Kentucky. Curl and Montgomery engaged in a conspiracy to fraudulently increase the weight of HHG shipments and overbill the United States Department of the Army for HHG shipments. Curl and Montgomery agreed to instruct and instructed employees to increase the weight of HHG shipments by adding fuel prior to a final shipment weight and adding a pallet of paper weighing between 1000 to 2000 pounds, among other methods. Curl and Montgomery agreed to cause and caused the fraudulently inflated weight tickets to be submitted to the Army for payment, and agreed to cause and caused fraudulently inflated payments to be issued to Lynn Moving and Storage, E-Town Moving and Storage, and Shadowens Moving and Storage. The amount of the overpayments was $132,413.26. Both
Curl and Montgomery acted as managers and supervisors of five or more employees that were encouraged and instructed to participate in the conspiracy to increase the weight of HHG shipments billed to the United States Department of the Army.
Further, the companies and its owners admitted to violating the False Claims Act and on January 10, 2018 agreed to pay $264,826.52 in civil penalties and damages. The Consent Judgment resolved a lawsuit filed by the United States in the Western District of Kentucky styled United States of America v. Lynn Moving and Storage, Inc. et al., Civil Action No. 3:18-cv-000190-CRS (WDKY).
The criminal case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Defense Criminal Investigative Service and the Army Criminal Investigative Division. The civil case was handled by Assistant Untied States Attorney Ben Schecter.
montgomery_curl_sentencing_4_19_18_final_0.docLouisville Man Charged with Possession and Distribution of MethRead the Press Release
LOUISVILLE, Ky. – A Louisville convicted felon was charged by grand jury indictment today with possession and distribution of methamphetamine, a Schedule II controlled substance, announced United States Attorney Russell M. Coleman.
Roger Dale Goodman, 37, is charged in a single count indictment with conspiring with others between January of 2017 and April of 2018, to knowingly and intentionally distribute meth.
Goodman is currently in state custody on a $50,000 bond, following a Louisville Metro Police Department (LMPD) police involved shooting. The incident occurred on February 1, 2018, on Derby Avenue. According to LMPD, Goodman was driving a truck that was stopped by Detectives Darrell Hyche and Bradley Woolridge as part of a narcotics investigation. A passenger, according to police, opened fire critically injuring Detective Hyche. Detective Woolridge returned fire, mortally wounding two passengers in the vehicle.
Goodman will be remanded to federal custody for an initial appearance on the single charge. The court date has not been scheduled.
If convicted at trial, Goodman could be sentenced to no less than ten years in federal prison, fined, and required to serve a five years period of supervised release.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the United States Drug Enforcement Administration (DEA) and LMPD.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
goodman_roger_indictment_4_18_18_7.pdfUnited States Attorney Russell Coleman Announces Addition of Assistant United States Attorney to the Paducah District OfficeRead the Press Release
LOUISVILLE, Ky. - United State Attorney Russell M. Coleman announced today the addition of Assistant United States Attorney Madison Sewell to the Paducah, Kentucky, District Office effective immediately.
“As promised, this Office is committing resources to the Purchase, Pennyrile, and rural communities of our District.” stated United States Attorney Russell M. Coleman. “Madison Sewell brings a wealth of experience, talent, and passion for prosecuting both criminal and civil offenses. As a former prosecutor for this Office, Mr. Sewell has a proven record in tackling drug trafficking organizations, removing illegally held firearms from our streets, and protecting our most vulnerable citizens.”
Sewell joins Assistant United States Attorney Seth Hancock, branch manager of the Paducah office, in prosecuting cases before U.S. District Judges, in United States District Courts, located in Paducah, Owensboro and Bowling Green.
A Henderson, Kentucky native, Sewell attended Yale University and Stanford Law School before clerking for a district court judge in Washington State and then Sixth Circuit Judge, Hon. Eugene Siler in London, KY. Sewell briefly served as an Assistant Federal Public Defender in Ohio before joining the United States Attorney’s Office for the Western District of Kentucky from 2004-2008, to include a voluntary stint in the Paducah Office. Sewell prosecuted cases in the Environment and Natural Resources Division at Main Justice in Washington, D.C., and most recently served as an Assistant County Attorney in Henderson County.
“The announcement today of an additional full-time prosecutor is one more down payment on a promise to support our law enforcement partners in reducing criminal activity in the western part of the Commonwealth,” stated U.S. Attorney Coleman.
Owner of U.S. Energy Partners, Inc. of Bowling Green, Kentucky, Sentenced to Prison for Wire Fraud, Securities Fraud, and Money LaunderingRead the Press Release
Fraudulent Investment scam resulted in loss exceeding $1,000,000 for eleven partners
BOWLING GREEN, Ky. – The owner of U.S. Energy Partners, Inc. of Bowling Green, Kentucky, was sentenced in United States District Court Monday, by District Judge Greg N. Stivers, to 50 months in prison following a jury conviction for wire fraud, securities fraud, and money laundering as part of a scheme that defrauded investors of $1,175,000 announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“This office will aggressively seek restitution for the victims of Clay Shelton’s scheme,” stated United States Attorney Russell M. Coleman. “The 50 month sentence should serve to warn others who seek to profit off of innocent investors – you will be caught and you will go to federal prison.”
The jury deliberated less than two hours before convicting Clay Shelton, 48, of Bowling Green, on January 11, 2018, on all submitted counts, for devising a scheme that fraudulently obtained money from eleven investors. Shelton has remained in federal custody since his conviction.
According to testimony presented during the four day trial, between March 2011 and September 2012, Shelton created Monterey Pipeline Partners, LLC, purportedly to purchase the Monterey Pipeline in Tennessee. Shelton also operated Escrow 2011 LP, an investment partnership he created to fund an escrow account to purchase and operate the Monterey (gas) Pipeline. Further, Shelton operated Brakaw Energy Management LLC, which was created by Shelton to manage and operate the Monterey Pipeline once he completed the purchase.
From March 2011 through September 2012, Shelton solicited in excess of $1,000,000 from eleven investors for the purchase of the Monterey Pipeline. He fraudulently represented to the investors that their funds would be held in escrow as a down payment until he was able to complete financing to purchase the Monterey Pipeline (about 60 days). Once the loan closed, investors would receive either a 25 percent return on their investment or Monterey Pipeline would buy their interest in any Tennessee well program they previously purchased through U.S. Energy Partners. Investors were, therefore, assured they would receive their investment back in at least 60 days and that their investment would be held in escrow.
Shelton misappropriated $1,000,000 of investor funds, which were wired into Escrow 2011, by investing the majority in collateralized mortgage obligations. Additional funds from investors were used to pay operating and business expenses, including his own salary.
This case was prosecuted by Assistant United States Attorneys Bryan Calhoun and Nute Bonner, with paralegal assistance from Jane Bauer and Mary Kennedy. This case was investigated by the IRS Criminal Investigation Division and the Kentucky Department of Financial Institutions.
Hardin County EMS Enters Settlement with United States to Resolve an American with Disabilities ComplaintRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced the settlement agreement with Hardin County Emergency Medical Services (HCEMS), on March 28, 2018, to resolve a complaint, under the Americans with Disabilities Act (ADA), regarding the provision of emergency medical services to qualified individuals with disabilities, including individuals using service animals.
The complaint alleged that emergency medical technicians and/or paramedics of Hardin County EMS failed to modify its policies and procedures to permit use of a service animal inside an ambulance providing emergency medical transportation services, in March of 2014 and again in November of 2016. Specifically, the service animal was a dog, trained to do work and perform tasks for the benefit of the individual with the disability.
Under the agreement, within 60 days HCEMS will adopt and publish grievance procedures for prompt and equitable resolution of complaints against HCEMS; will not discriminate against a person with a disability in violation of Title II of the ADA; will propose and implement a two-hour training program for all employees who have contact with the public on the requirements of the ADA, including reasonable modifications for people with disabilities who use a service animal.
Assistant United States Attorney Jessica R.C. Malloy represented the United States. HCEMS conducted an independent investigation of the allegations contained in the complaint and cooperated fully in the United States’ investigation and received assistance from the Hardin County Attorney in resolving this matter.
The United States Attorney’s Office in coordination with the Civil Rights Division of the United States Department of Justice vigorously enforces federal civil rights laws throughout the Commonwealth of Kentucky. These laws prohibit discrimination, protect the constitutional rights of residents, and affirm equal opportunity for all. The United States Attorney’s Office enforces civil rights through civil litigation and criminal prosecutions, and, in all cases, represents the interest of the United States.
For information about the civil rights laws enforced by the United States Attorney’s Office, please click on the following links:
The Americans with Disabilities Act (ADA) and other laws that prohibit disability discrimination.
The Fair Housing Act (FHA)
The Equal Credit Opportunity Act (ECOA)
The Equal Educational Opportunities Act (EEOA) and other laws that prohibit discrimination in schools.
Title II of the Civil Rights Act, which prohibits discrimination based on race, color, religion, and national origin in places of public accommodation.
Title VI of the Civil Rights Act, which prohibits discrimination based on race, color, and national origin by programs that receive federal financial assistance.
Title VII of the Civil Rights Act, which prohibits discrimination based on race, color, national origin, sex, and religion by state and local government employers.
The anti-discrimination provision of the Immigration and Nationality Act (INA), which prohibits employment discrimination based on citizenship status and national origin.
Uniformed Services Employment and Reemployment Act (USERRA)
The Service Members Civil Relief Act (SCRA)
The Religious Land Use and Institutionalized Persons Act (RLUIPA)
The Civil Rights of Institutionalized Persons Act (CRIPA)
The Violent Crime Control and Law Enforcement Act and other laws that prohibit law enforcement misconduct.
The Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act
hardin_settlement_agreement_0.pdfLouisville Skilled Nursing Facility to Pay $5,191,470. to Settle False Claims AllegationsRead the Press Release
LOUISVILLE, Ky. – New Oaklawn Investments, LLC, d/b/a Oaklawn Health and Rehabilitation Center and Elmcroft Senior Living, Inc., a Louisville based skilled nursing facility, agreed to pay $5,191,470 to resolve allegations that it violated the False Claims Act by submitting false claims for payment to the Medicare Program, announced United States Attorney Russell M. Coleman.
“Today’s settlement is the result of this office working in a coordinated effort with Medicare’s Unified Program Integrity Contractor, AdvanceMed, to ensure that taxpayer dollars are not misspent – especially when providing vital services to our senior community,” stated United States Attorney Russell Coleman. “The more than 5 million dollar settlement underscores our continued commitment to uncovering health care fraud.”
Oaklawn is a for-profit skilled nursing facility with 128 beds located in eastern Jefferson County, Kentucky, that was managed by Elmcroft.
The government contends that during the period from February 26, 2007 through February 26, 2010, Oaklawn improperly billed Medicare for patient rehabilitation services at the resource utilization (“RUG”) Code Series Rehabilitation Ultra High and Rehabilitation Very High, for certain services that were not reasonably or medically necessary.
Skilled nursing facilities use a clinical assessment tool known as the Resident Assessment Instrument to identify residents’ clinical condition, including strengths, weaknesses, preferences, functional status and expected use of services. Under Medicare Part A, skilled nursing facilities are required to classify residents into RUGs based on assessment data from the resident assessment. Therapy RUGs are divided into five levels of therapy (ultra high, very high, high, medium, or low), with Medicare generally paying the most for “ultra high” therapy.
The matter was handled by Assistant United States Attorney Benjamin S. Schecter with assistance from Medicare’s Unified Program Integrity Contractor, AdvanceMed.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
oaklawn_ettlement_agreement-_signed.pdfUnited States Attorney Announces Charges Against More Than Two Dozen Felons in Law Enforcement Surge to Reduce Violent CrimeRead the Press Release
Several charged in a conspiracy with stealing nearly one-hundred firearms from licensed dealers in Kentucky
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced that the Louisville Federal Grand Jury returned 21 felony indictments charging 23 individuals this week with multiple counts, including firearms violations, possession and distribution of scheduled drugs as well as the filing of an additional criminal complaint of two Tennessee residents charged in a conspiracy of stealing nearly one-hundred firearms from dealers licensed in the Commonwealth of Kentucky.
“These arrests are yet another significant deposit on our promise to reduce violence in this Commonwealth,” stated United States Attorney Coleman. “Working together with our law enforcement partners, we will not concede one block of our city to drug traffickers, gang members, or, as we demonstrated today, felons with firearms. Stay tuned.”
U.S. Attorney Coleman was joined in today’s announcement by the Jefferson County Commonwealth’s Attorney Thomas Wine, ATF Special Agent in Charge Stuart Lowery, and LMPD Chief Steve Conrad, who stood shoulder to shoulder with numerous prosecutors from the United States Attorney’s Office, in a committed effort and shared partnership to reduce violent crime. These charges were developed through an ongoing partnership of multiple law enforcement agencies to maximize penalties for the most violent repeat offenders.
This week, Kashma Floyd Dardy, Jr. of Nashville, Tennessee, and Marvin Dale Johnson, of Madison Tennessee, were charged with conspiring and stealing firearms from licensed dealers located in Bowling Green and Owensboro, Kentucky. Dardy was charged with the burglary of Wheeler’s Fastway Gun and Pawn located at 4848 Scottsville Road in Bowling Green. Johnson was charged with the burglary of Wheeler’s as well as another burglary of Whittaker Guns, LLC, located at 6980 West Louisville Lane in Owensboro. According to the affidavit attached to the criminal complaint, firearms stolen from the dealers were recovered from both defendants.
The crimes of others charged include being a felon in possession of a firearm, possession with intent to distribute Schedule I controlled substances, using a firearm in furtherance of a drug trafficking crime, and being an unlawful user of a controlled substance while in possession of a firearm. Three defendants were also charged with discharge of a firearm during, and in relation to, a drug trafficking crime resulting in murder, one defendant is currently charged in the shooting death of 7-year-old DeQuante Hobbs, Jr., and two other defendants have prior manslaughter convictions.
Among those charged and arrested are Philquan Acuff, 33; Gary Burse, 27; Dakoven Ford, 20; Isiah Tamele Fugett, 36; Keith Alan Haggard, 46; Demetris Dion Johnson, 36; Treyshawn Jones, 25; Byron K. King, Jr., 21; Benjamin Schildknect, 33; Philip Stivers, 31; Wyatt Williams, 23; Javier Rodriguez and co-defendants Dwayne Castle, 44, and Charles Cater, 42; all of Louisville.
Defendants Rodriguez, Castle, and Cater are charged with discharge of a firearm during, and in relation to, a drug trafficking crime resulting in murder, and conspiracy to distribute methamphetamine and heroin.
Defendant Acuff is charged with knowingly and intentionally possessing with the intent to distribute heroin and marijuana, both Schedule I controlled substances. Further, Acuff is charged with possession of a firearm, a Smith & Wesson, Model M & P, .40 caliber handgun, in furtherance of a drug crime, and with being a felon in possession of a firearm having been convicted in Jefferson County Circuit Court of trafficking in a controlled substance, facilitation to robbery, and wanton endangerment.
Defendant Burse is charged with being a felon in possession of a firearm having been convicted in Jefferson Circuit Court of Manslaughter II, robbery, tampering with physical evidence, burglary, and intimidating a witness in a legal process. Burse allegedly possessed a Walther, Model PK380, .380 caliber semi-automatic firearm; a Ruger, Model SR22, .22 caliber semi-automatic firearm; and ammunition.
Defendant Ford, is charged with being a felon in possession of a firearm, a Glock 19, 9 millimeter handgun and ammunition, having been convicted of robbery in Jefferson Circuit Court.
Defendant Fugett, a/k/a Isiah Phillip, is charged with being a felon in possession of a firearm, having been convicted in Jefferson Circuit Court of Manslaughter and tampering with physical evidence. Fugett allegedly possessed a Glock Model 23, .40 caliber pistol, and ammunition.
Defendant Haggard is charged with possession with intent to distribute methamphetamine and with being a felon in possession of a firearm, having been convicted in Meade Circuit Court of trafficking in a controlled substance. Haggard allegedly possessed a Xin Shi Dai, Model SKS, 7.62x39mm caliber semi-automatic rifle, and ammunition.
Defendant Johnson is charged with being a felon in possession of a firearm, a Bersa .380 caliber semiautomatic pistol, having been convicted in Jefferson Circuit Court of trafficking in a controlled substance.
Defendant Jones is charged with being a felon in possession of a firearm, a Taurus, model PT1455PRO, .45 caliber semiautomatic pistol, and ammunition, having been convicted of a receiving stolen property and tampering with physical evidence in Jefferson Circuit Court.
Defendant King is charged with felon in possession of a firearm, a Smith & Wesson, Model SD40VE, .40 caliber handgun, having been convicted of receiving a stolen firearm in Jefferson Circuit Court.
Defendant Schildknect is charged with being a felon in possession of a firearm, a Smith & Wesson .38 caliber revolver, an Omega .22 caliber revolver, a Colt PTFA handgun, and ammunition, having been convicted of burglary in Jefferson Circuit Court.
Defendant Stivers is charged with being a felon in possession of a firearm, a Walther, PK380, .380 Caliber semi-automatic firearm, and ammunition, having been convicted of possession of a forged instrument, facilitation to kidnapping, assault, and robbery in Jefferson Circuit Court.
Defendant Williams is charged with being an unlawful user of a controlled substance in possession of a Hi-Point 9 millimeter semi-automatic pistol.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release.
These cases are being prosecuted by Assistant United States Attorneys Robert Bonar, Nute Bonner, Bryan Calhoun, Scott Davis, Tom Dyke, Larry Fentress, Lettricea Jefferson-Webb, Joshua Judd, Corinne Keel, Jessica Malloy, Stephanie Zimdahl, and Michael Bennett. The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisville Metro Police Department, and the United States Drug Enforcement Administration (DEA).
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to specifically identify the criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Today’s indictments are part of the Project Safe Neighborhoods program.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent
until and unless proven guilty
Former Marion County, Kentucky, Resident Sentenced to 57 Months in Prison for Conspiracy to Manufacture and Possess Marijuana with the Intent to DistributeRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the sentencing of John Robert Boone, in United States District Court, by Senior Judge Charles R. Simpson III, to 57 months in prison, having pleaded guilty to manufacture and possession of marijuana with the intent to distribute. There is no parole in the federal system.
"Manufacture, possession, and distribution of marijuana are violations of federal criminal law – plain and simple. As the Chief Federal Prosecutor for the Western District of Kentucky, I want to make it very clear that this office remains committed to enforcing all federal criminal laws associated with marijuana,” stated U.S. Attorney Russell Coleman. “Our Commonwealth is in the throes of a deadly addiction to heroin and illicit drugs and Marijuana is a young person’s gateway to a lifetime of drug abuse and associated crime.”
John Robert Boone a/k/a Johnny Boone, 74, formerly of Marion County, Kentucky, pled guilty to a Superseding Information, containing a single charge, on December 19, 2017. Boone admitted that on May 27, 2008, in Washington County, Kentucky, he conspired with other persons to possess more than 1000 marijuana plants, intending to cultivate and grow the plants and distribute the marijuana when the plants were harvested. In furtherance of the conspiracy, Boone watered and fertilized the plants, and concealed them on a farm in Washington County on Walker Lane near his residence.
According to the Criminal Complaint, in May of 2008, the plants were spotted during an aerial operation in the Springfield and Washington County area of Kentucky, by Kentucky State Police, for the purpose of spotting outdoor marijuana propagation activities.
Boone was a fugitive for nearly eight years until his arrest in Montreal, Canada in December of 2016. He’s remained in the custody of the United States Marshals service since being deported in April of 2017.
This case was prosecuted by Assistant United States Attorney Larry Fentress and was investigated by the DEA and Kentucky State Police.
Champagne, Illinois, Resident Sentenced to One Year in Prison for Producing and Selling over 80,000 Homemade Tramadol Capsules to Customers Without Verifying PrescriptionsRead the Press Release
OWENSBORO, Ky. – A Champaign, Illinois, resident was sentenced today in United States District Court, by Chief Judge Joseph H. McKinley, to one year in prison, ordered to pay $950.00 restitution and ordered to pay a $5,000 fine for distribution of Tramadol, a Schedule IV controlled substance, introduction of misbranded drugs, and wire fraud, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
According to the plea agreement, Skyler Dean Prahl, 32, imported Tramadol powder from overseas and used an encapsulating machine to create Tramadol capsules. Tramadol is a synthetic opioid drug. For several years Prahl operated an online business marketing and selling Tramadol capsules and other substances to customers throughout the United States. Prahl sold well over 80,000 units of Tramadol to customers without inquiring or verifying that his customers had a valid prescription.
Prahl admitted that on August 31, 2015, he knowingly and intentionally possessed with the intent to distribute, and distributed Tramadol to an undercover agent.
He further admitted that on August 31, 2015, with the intent to mislead and defraud, he introduced a misbranded drug, Tramadol, into interstate commerce by shipping Tramadol from Champaign, Illinois, to Owensboro, Kentucky. The Tramadol was misbranded because its label failed to state the name and place of business of the manufacturer, packer, and distributor., and because it failed to bear adequate directions for use.
Lastly, Prahl admitted that between January 28, 2016, and March 5, 2016, he devised a wire fraud scheme. Specifically, Prahl used email to promise to deliver at least 3,000 Tramadol capsules to “Michael Riley” in return for $950, but failed to deliver the Tramadol capsules even after receiving the funds.
This case was prosecuted by Assistant United States Attorney David R. Weiser and was investigated by the U.S. Food & Drug Administration - Office of Criminal Investigation (Owensboro, Kentucky, domicile) with assistance from the United States Postal Inspection Service (Evansville, Indiana, domicile) and DEA Diversion (Springfield, Illinois, Resident Office), and the Kentucky State Police, DESI-East.
California Genetic Testing Service Pays $11 Million to Resolve False Claims AllegationsRead the Press Release
Allegedly submitted fraudulent medical claims for reimbursement
Will Pay $10,635,615.90 as part of Federal Settlement and $756,183 to a Number of States
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman, acting on behalf of the Office of Inspector General of the Department of Health and Human Services, the TRICARE Program, and the Federal Employees Health Benefits Program (FEHB) today announced a $10,635,615.90 settlement with Natera, Inc., to resolve claims that Natera improperly billed federal healthcare programs for Natera’s non-invasive prenatal test known as Panorama®. Natera has also agreed to pay an additional $756,183 to a number of state Medicaid programs.
"Let this hefty settlement send a message that pursuing healthcare fraud is a priority of our Office and of the Department of Justice” stated United States Attorney Russell Coleman. “Overbilling federal healthcare programs steals from taxpayers and drives up the cost of healthcare for us all. Recovering taxpayer dollars lost to fraud helps keep strong those critical public healthcare programs so many Kentucky families depend on.”
"I applaud the Department of Justice and the U.S. Attorney for their untiring efforts to hold health care providers accountable to the American taxpayer," said Vice Adm. Raquel Bono, director of the Defense Health Agency, which manages the TRICARE Health Plan. "The Department of Justice's efforts safeguard the TRICARE benefit for American service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices."
“In concert with our investigative partners, DCIS aggressively pursues fraud and corruption that undermines the integrity of Department of Defense programs, especially those involving the well-being of our Warfighters who deserve the best medical care available,” stated John F. Khin, DOD-DCIS Special Agent in Charge. “It is unconscionable for a health care provider to make profits by taking advantage of military members and their families when they are most vulnerable.”
“Today’s settlement shows the OPM-OIG’s commitment to investigating and prosecuting fraudulent billing practices that waste taxpayer dollars, increase the cost of medical care, and undermine the integrity of the Federal Employees Health Benefits Program. I would like to thank the United States Attorney’s Office and our law enforcement partners for all their hard work,” stated Scott Rezendes, OPM-OIG Special Agent in Charge.
The United States contended that between January 1, 2013, through December 31, 2016, Natera knowingly submitted false or fraudulent claims seeking payment from the TRICARE Program, FEHB, and Medicaid program for Natera’s genetic testing services, including its non-invasive prenatal test known as Panorama® (including optional panels that screened for microdeletion syndromes).
Specifically, the United States contended that for dates of service between January 1, 2013, through March 4, 2015, Natera improperly billed TRICARE for its Panorama® test, (including optional panels that screened for microdeletion syndromes), when TRICARE did not reimburse for certain laboratory developed test. Further, during dates of service between January 1, 2013, through December 31, 2016, Natera improperly billed TRICARE for non-invasive prenatal screening of certain microdeletion syndromes when TRICARE did not reimburse for this screening. During the same period, Natera improperly billed TRICARE, FEHBP, and Medicaid for its Panorama® test and for its non-invasive prenatal screening of certain microdeletion syndromes, by using an improper code which misrepresented the services Natera was billing to these programs. Lastly, during the same dates of service, Natera billed TRICARE, FEHBP, and Medicaid for its Panorama® test (including optional panels that screened for microdeletion syndromes) for patients with low-risk pregnancies. Natera denies this allegation.
This matter arose as a complaint for monetary damages under the qui tam provisions of the federal False Claims Act. The relators, Sallie McAdoo and Steven Aldridge, filed a qui tam action on January 26, 2015, in United States District Court for the Western District of Kentucky (United States, ex rel. Sallie McAdoo and Steven Aldridge v. Natera, Inc., Civil Action No. 3:15-cv-88-DJH).
Natera is entering into a separate settlement agreement in the amount of $756,183.00 (the “Medicaid State Settlement Agreements”) for similar conduct related to various state Medicaid programs. The Medicaid State Settlement Agreement was negotiated by a team with the National Association of Medicaid Fraud Control Units.
The matter was handled by Assistant United States Attorney Benjamin S. Schecter, of the U.S. Attorney’s Office for the Western District of Kentucky. The investigation was conducted by the Department of Defense, Office of the Inspector General, Defense Criminal Investigative Services (DCIS) and the Defense Health Agency (DHA).
natera_settlement03072018094335.pdfSimpson County, Kentucky Resident Sentenced to 20 Years in Prison for Making and Possessing Illegal Firearms (Molotov Cocktails)Read the Press Release
BOWLING GREEN, Ky. – United States Attorney Russell M. Coleman, announced the sentencing, of a Simpson County, Kentucky resident, in United States District Court yesterday, by United States District Judge Greg N. Stivers, to twenty years in prison, without the possibility of parole, for making and possessing illegal firearms, commonly known as Molotov cocktails.
“In this case, a phone call to law enforcement, and quick response by the Franklin Police Department and the ATF, may have saved Simpson County from untold harm,” stated United States Attorney Russell Coleman. “A vigilant public, aggressive law enforcement, and a significant punishment – twenty years – is the right formula for protecting our communities.”
Trey Alexander Gwathney-Law, 20, of Franklin, Kentucky, pleaded guilty to counts one and two of a superseding indictment, on June 16, 2017, before Judge Stivers and at that time was remanded to the custody of the United States Marshal Service. Gwathney-Law admitted to making and possessing five illegal firearms. According to court records and report by the Franklin Police Department, Gwathney-Law relayed to an acquaintance that he had made the devices in order to blow-up Franklin-Simpson County Middle School.
Specifically, according to the plea agreement, on September 27, 2015, Gwathney-Law knowingly made five illegal firearms. All were made using glass bottles. Four of the bottles (one Mountain Dew, one Sprite, and two Dr. Pepper) contained a dark gas/oil mixture liquid with a cloth wick stuffed in the bottle opening. Commonly referred to as a Molotov cocktail. A fifth, illegal firearm was made using a glass Root Beer bottle and contained a dark gas/oil mixture liquid with a piece of green pyrotechnic fuse attached to the opening with an epoxy sealant. The bottle contained a silver CO2 cartridge in the top of the bottle, under the pyrotechnic fuse. The CO2 cartridge contained explosive powder and small pieces of paper which appeared to have been soaked in the same flammable liquid found inside the bottle. Commonly referred to as a Molotov cocktail. Further, Gwathney-Law admitted to possessing the illegal firearms.
At sentencing, the United States moved to dismiss counts three and counts four of the superseding indictment and agreed that a sentence of 20 years, followed by a three year period of supervised release was the appropriate disposition in this case.
This case was prosecuted by Assistant United States Attorney Jo Lawless and was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kentucky State Police (KSP) and the Franklin, Kentucky Police Department.
Louisville Financial Planner Charged During Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
Justice Department coordinates largest nationwide elder fraud sweep – more than one million victims
Louisville financial planner allegedly defrauded mostly elderly customers of over $800,000
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced today the grand jury indictment this week, of a Louisville financial advisor, charged with multiple counts of investment advisor fraud, money laundering, aggravated identity theft, and wire fraud. Today’s announcement is part of the largest coordinated sweep of elder fraud cases in history.
The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars.
In the Western District of Kentucky, Derek Payne Burcham, 34, who was the former principal owner of Cornerstone Benefit Advisors, LLC., was charged with fraudulently obtaining over $800,000 by misappropriating monies that investors had provided to Cornerstone to invest, then using those funds to support his lifestyle and to cover operating expenses.
Specifically, between 2011 and August of 2016, Burcham, as Cornerstone’s sole investment adviser representative, had a fiduciary duty to act in his clients’ best interests. During that time, Burcham is alleged to have made numerous false statements, assurances, and representations to clients regarding the nature of their investments. Further, Burcham is alleged to have posted and solicited business through false advertising; induced clients to provide him access to their accounts at brokerage and financial planning companies; forged client signatures on official investment documents; charged unearned advisory fees and repeatedly concealed those over-charged advisory fees; and between 2012 and August of 2016, allegedly reported to the Kentucky Department of Financial Institutions his maximum advisory fee charged by Cornerstone was 1%, when the unearned investment advisory fees from client accounts were in excess of the 1%.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the United States Secret Service (USSS), the Kentucky Department of Financial Institutions, the Internal Revenue Service Criminal Investigation, and Louisville Metro Police Department.
This morning in Washington, Attorney General Jeff Sessions was joined in the announcement of the elder fraud national sweep, by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”
Actions against the Mass-mailing Fraud Industry
As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals. In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue. “They sold false promises of life-changing prizes that never came true. We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”
These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million. Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year. Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments.
Actions against other elder fraud schemes
Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases. Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year. Some examples of the elder financial exploitation prosecuted by the Department include:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
Many of these cases illustrate how an elderly American can lose his or her life savings to a duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department priority.
Public Education
The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.
Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them.
Coordination with state officials
Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.
Coordination with foreign law enforcement
Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative. The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States. The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
burcham_indictment.pdf
Owensboro, Kentucky Man Faces Additional Charges for Possessing Unregistered Machine Guns and FirearmsRead the Press Release
BOWLING GREEN, Ky. – An Owensboro, Kentucky man was charged in a superseding indictment this week, by a grand jury meeting in Bowling Green, Kentucky, with possessing unregistered machine guns announced United States Attorney Russell M. Coleman.
Glen Allan Aley, 45, was charged with 19 counts of possessing multiple types of firearms, including machine guns, short-barreled shotguns, short-barreled rifles, and silencers, that were not registered in the National Firearms Registration and Transfer Record.
Specifically, Aley was in possession of several .223 Wylde caliber, M-16-type firearms (machineguns); Fabrique Nationale Herstal, Model PS90 5.7x28mm caliber firearms (machineguns); Eds Tactical Armory, Model 2A, 7.62x39mm caliber AR-type firearm (short-barreled rifle); 7.62x51mm caliber AR-type firearm (machine gun); 7.62x51mm caliber AR-type firearm, (machine gun); AR-type firearm (short-barreled rifle); New England Firearms, Model SB2, 10-gague shotgun (short-barreled shotgun); and black cylindrical devices, (firearm silencers).
According to the superseding indictment, Aley possessed the firearms between February 16, 2017, and March 28, 2017.
Aley remains free on an unsecured $25,000 bond.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Founder, Former Employee of the Now Defunct Bluegrass Training and Therapy Center, and Former State of Kentucky Employee Face Multiple Charges Including Wire Fraud and BriberyRead the Press Release
Schemed to defraud the Kentucky Department of Juvenile Justice and the federal government,
allegedly falsified attendance records and submitted over $400,000 in false claims for payment
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced the Grand Jury Indictment, unsealed today, charging the founder and former employee of Bluegrass Training and Therapy Center, with devising a scheme to defraud the Kentucky Department of Juvenile Justice and the federal government, and associated bribery charges.
According to the indictment, beginning no later than 2012 and continuing to September of 2015, Clifford Frank Wilkinson, a/k/a Jay Wilkinson, 61, of Louisville, and Erica Beth Bowen, 39, of Louisville, devised a scheme to defraud the Kentucky Department of Juvenile Justice and the federal government to obtain money and property by means of materially false and fraudulent pretenses.
Wilkinson, who was a founder, board member, and President of Bluegrass Training and Therapy Center (BTTC), and Bowen, who was an original employee of BTTC and held many positions including Program Director and secretary, falsified attendance records by inflating the number of daily participants submitted for payment to the Department of Juvenile Justice (DJJ). This was achieved by forging the signatures of youths in the program on monthly sign-in sheets and instructing youths to falsely sign in as present at BTTC programs, when in fact they were not in attendance. The investigation uncovered over 8,000 instances when youth were not actually in attendance in programs at BTTC. In addition, BTTC by way of the scheme, fraudulently obtained over $400,000 in payments on the contracts for youth that did not attend programs at BTTC.
Further, Bowen diverted some of the funds paid from DJJ to BTTC, into personal bank accounts, and converted some of the funds to cash, for personal use by her and Wilkinson and concealed this diversion of funds through false and misleading entries in BTTC’s business and accounting records.
Defendants Wilkinson, Bowen and Shannon L. Anson, 51, of Louisville, are charged with one count each of bribery concerning programs receiving federal funds. Wilkinson and Bowen are charged with knowingly and corruptly paying co-defendant Anson, a Social Service Specialist with DJJ, payments totaling approximately $50,500 in order to influence and reward Anson with business contracts that BTTC has with DJJ. Anson is charged with corruptly agreeing to accept those payments during the same time period in order to be influenced and rewarded. The alleged criminal activity took place between from about August of 2013, and continued until July of 2015.
Bluegrass Training and Therapy Center, Inc. was a non-profit corporation organized under Section 501(c)(3) of the Internal Revenue Code, located on approximately twenty acres at 10214 Plaudit Way in Louisville, that operated as an “equine employment training center,” offering equine therapy, employment training, and transitional housing to assist committed youth to re-enter their community. BTTC was awarded grant funds from the U.S. Department of Justice Office of Justice Programs, Office of Juvenile Justice and Delinquency Prevention, which were awarded to and dispersed from the DJJ. DJJ is one of five state departments under the Kentucky Justice and Public Safety Cabinet responsible for providing prevention programs for at-risk youth; residential placement/treatment services; and community aftercare and reintegration programs.
If convicted at trial, defendants Wilkerson and Bowen could be sentenced to no more than 20 years in prison, fined, and serve a period of supervised release. Defendant Anson could be sentenced to no more than ten years, fined, and serve a period of supervised release. All are subject to the payment of restitution. All defendants are scheduled for initial appearances, in Louisville, before Magistrate Judge Dave Whalin, on February 22, 2018, at 9:30 AM.
This case is being prosecuted by Assistant United States Attorneys for the Western District of Kentucky Stephanie Zimdahl and Marisa Ford. The investigation is being led by the U.S. Department of Justice Office of the Inspector General (DOJ-OIG), the Kentucky Office of the Attorney General, and the Kentucky Justice and Public Safety Cabinet.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Louisville Business Owner Sentenced to 33 Months for Food Stamp FraudRead the Press Release
Former owner of the Meat Store also ordered to pay $545,000 restitution
LOUISVILLE, Ky. – The former owner of a Louisville specialty food store was sentenced today in United States District Court, by Senior Judge Thomas B. Russell, to 33 months in prison, three years of supervised release, and ordered to pay $545,000 restitution for committing Food Stamp fraud, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“Today’s nearly three year prison sentence and $545,000 returned to victims, underscores our commitment to investigating and prosecuting criminals who steal from federal programs,” stated United States Attorney Russell Coleman. “This is a crime against tax payers – we will seek to restore every stolen dime that was meant to help those in need.”
Elias Estephane was convicted of defrauding a United States Department of Agriculture Program on November 9, 2017, following a four-day jury trial.
Estephane was the owner of the Meat Store located at 1066 South 28th Street and the Meat Store 2 located at 4835 Poplar Level Road. Both were specialty food stores focusing on meats and both were accepted as Supplemental Nutrition Assistance Program (SNAP), or Food Stamp retailers. SNAP is a program administered by the United States Department of Agriculture (USDA) to provide food-purchasing assistance to low-income individuals through the issue of (EBT) cards to recipients. Evidence at trial showed that on multiple occasions Estephane traded cash for SNAP benefits, in violation of program rules that only permit benefits to be exchanged for eligible food items. Estephane generally paid customers fifty cents on the dollar for their benefits.
In 2015, the USDA and the Federal Bureau of Investigation (FBI) began investigating the Meat Store’s redemption of SNAP benefits. They targeted the Meat Store because it had a significantly higher level of redemption of SNAP benefits compared to similar stores in the area. Specifically, the Meat Store’s month-to-month SNAP redemptions in 2015 were around 20 times the average redemptions from similar stores in the same geographic area.
During the course of the investigation, USDA and FBI sent two individuals into the Meat Store to attempt to sell SNAP benefits for cash. Between September 1, 2015, and July 12, 2016, the two individuals exchanged SNAP benefits for cash with defendant Estephane at the Meat Store on nine different occasions, eight of which were captured on video. Sometimes the individuals would present multiple SNAP EBT cards in different names during the undercover transactions and request cash from all of them.
During the trial, the United States submitted surveillance video of the Meat Store from four different days then compared transaction data with the video, flagging instances in which people spent $100 or more but left the store holding only one bag. Further the United States had five customer witnesses and one former employee testify.
The case was prosecuted by Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl, with the assistance of paralegal Mary Kennedy, and was investigated by U.S. Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation (FBI).
Former High School Principal Sentenced to 108 Months in Prison for Transporting Child PornographyRead the Press Release
Admitted he transferred images from phones confiscated from students, to his personal thumb drive, without their consent or knowledge and shared the images on a Russian website
LOUISVILLE, Ky. – A former Larue County, Kentucky, High School Principal was sentenced today in United States District Court, by U.S. District Judge David J. Hale, to 108 months in prison, followed by a ten year period of supervised release, for transporting child pornography and possessing child pornography that had been transported in interstate commerce announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“Parents must be able to place their trust in educators to provide a safe learning environment for our kids,” stated United States Attorney Russell Coleman. “Mr. Goodlett not only violated this trust but exploited students for his own foul gratification. His significant punishment is well-earned”
Stephen Kyle Goodlett, 37, of Elizabethtown, Kentucky, remains in federal custody and faces additional State charges in the Commonwealth of Kentucky in Hardin County. Goodlett was initially charged by federal criminal complaint on December 19, 2016, and by federal grand jury indictment on January 4, 2017.
On September 2, 2016, Elizabethtown police received a child sexual exploitation complaint from a female who discovered nude photographs of her that had been uploaded to a website that allowed users to anonymously post sexually explicit images and videos of people and identified the geographic area where the depicted person lived. The photographs are often accompanied by the first and last initial of the person in the photographs. The complainant viewed the images from the website and told police she was 15 years old when the nude photographs were created with a cell phone.
Elizabethtown Police requested and received the detailed IP address information for the person responsible for uploading the images. The IP address was registered to Kyle Goodlett of Elizabethtown, Kentucky. The defendant was the Assistant Principal at Larue County High School from July 4, 2012, until he was promoted to Principal on July 1, 2013, and held that position until he was terminated on October 19, 2016. Goodlett was principal while the complainant was a student there and had access to her nude images when he confiscated her cell phone. The complainant was a student at Larue County High School during that time.
On October 13, 2016, the Kentucky State Police executed a search warrant at Goodlett’s Elizabethtown residence and a preview of his electronic devices, including his iPhone and an eternal hard drive, yielded 60 files of child sexual exploitation.
Further, on December 12, 2016, KSP received a report from the National Center for Missing and Exploited Children stating that several images discovered in Goodlett’s Dropbox account contained images of known minor victims including the complainant and five images from an identified minor female.
Goodlett signed a waiver of his rights and agreed to a recorded interview with KSP Detectives. Goodlett admitted to KSP that he was addicted to pornography and that he transferred images from phones confiscated from students to his personal thumb drive without their consent or knowledge. Goodlett stated he would take the images and share them to a Russian website with the intent of trading for more images. Goodlett told KSP he used his iPhone and laptop to view the images. A forensic review of Goodlett’s electronic devices revealed he possessed 436 images and 11 videos of child pornography as defined by 18 USC Section 2256(8).
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Department of Homeland Security, Homeland Securities Investigations with assistance from Kentucky State Police and the Elizabethtown, Kentucky, Police Department.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Tennessee Resident, Last Defendant Sentenced in Methamphetamine Ring Operating in Barren County, KentuckyRead the Press Release
BOWLING GREEN, Ky. – The last defendants in a methamphetamine conspiracy operating out of Barren County, Kentucky, was sentenced in United States District Court this week, by United States District Judge Greg N. Stivers, to 60 months in prison for the sale of 6.5 kilograms of methamphetamine announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“Meth and those who trade in that poison are no respecter of lives.” stated U.S. Attorney Russell Coleman. “Incarcerating its dealers and diminishing its supply are critical to protecting Western Kentucky families and our Commonwealth.”
Andrea Parks, 37, of Robertson County, Tennessee, was charged by grand jury indictment with co-defendants Teresa Lynn Jackson, 47, Danny Ray Delplane, 46, and Christopher Lynn Thomason, 47, from Glasgow, Kentucky, and Eddie Joe Simpson, 47, of Bowling Green, Kentucky. The defendants were charged with conspiracy to possess with intent to distribute 50 grams or more of meth.
According to information presented in court, Parks supplied nearly 11 pounds of meth to Jackson, for distribution in Barren County. Specifically, between May 1, 2015, and October 29, 2015, Jackson would travel to Tennessee to receive meth from Parks, then distribute it to Thomason, Delplane, and Simpson. During that time period, law enforcement made five recorded controlled buys from Jackson. During this time period, Parks directly supplied Jackson with 1.5 and 5 kilograms of meth.
Further, Jackson was charged as being a convicted felon in possession of firearms. She was sentenced to 156 months in prison followed by a five year term of supervised release. Thomason was sentenced to 57 months in prison, Delplane was sentenced to 33 months in prison, and Simpson was sentenced to 46 months in prison. All were sentenced in United States District Court in Bowling Green, by District Judge Stivers.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Louisville Couple Sentenced for Wire FraudRead the Press Release
Embezzled over $550,000.00 from Iceland Sports Complex
LOUISVILLE, Ky. - A Jefferson County, Kentucky, couple was sentenced this week in United States District Court yesterday, by Chief Judge Joseph H. McKinley, Jr. for their individual roles in a scheme to divert over $550,000.00 from the Iceland Sports Complex announced United States Russell M. Coleman.
Glenn Christopher “Chris” Richardson, 56, was sentenced to 24 months in prison, followed by a three year period of supervised release and Karen M. Richardson, 56, was sentenced to eight months of home confinement, and a three year period of supervised release. There is no parole in the federal system.
The couple admitted that beginning no later than January of 2005, and continuing to about September of 2011, while employed at the Iceland Sports Complex, LLC, an ice skating rink located in Eastern Jefferson County, they used a bank account in the name of Karen Richardson, d/b/a Louisville Storm, for the purpose of diverting and concealing daily revenue from Iceland Sports Complex.
According to the plea agreement, the couple would deposit checks made out to Iceland into the Louisville Storm account. The couple concealed the use of these funds by creating and sending revenue statements to Iceland’s owners located in Michigan, which underreported the amount of Iceland Sports Complex’s daily revenue. The couple admitted using the diverted funds for their personal use and for use by their family.
This case was prosecuted by Assistant United States Attorney Marisa J. Ford and was investigated by the United States Secret Service.
Kentucky Otolaryngologist Pays $2.79 Million to Resolve False Claims AllegationsRead the Press Release
Allegedly submitted fraudulent medical claims for reimbursement
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman and the United States Department of Labor announced a $2,791,758 settlement with ear, nose and throat doctor Phillip B. Klapper, M.D., Patricia Klapper, and Phillip B. Klapper, P.S.C. (collectively, “Klapper”) to resolve claims that Klapper, who practiced in Murray, Kentucky, improperly billed a federal healthcare program for audiological services and hearing aids.
“Pursuing healthcare fraud is a priority of this Office and of the Department of Justice. We will continue to work with the Department of Labor and with other governmental agencies to ensure that fraudulent claims are investigated and those responsible are required to pay,” stated United States Attorney Russell M. Coleman. “Medical providers who overbill federal healthcare programs defraud the taxpayers and drive up the cost of healthcare for us all. Recovering taxpayer dollars lost to fraud helps keep strong those critical public healthcare programs so many people depend on,” said Coleman.
Specifically, the United States contended that Klapper knowingly submitted false or fraudulent claims seeking reimbursement under the Federal Employees’ Compensation Act when the reimbursement claims falsely indicated that audiological tests were performed by licensed and certified personnel although, in fact, the tests were performed by personnel lacking such credentials, and/or the testing results were altered to enable some claimants to appear to have hearing losses. The Federal Employees’ Compensation Act is the workers’ compensation program for federal employees and is administered by the Department of Labor’s Office of Workers’ Compensation Programs.
According to the settlement agreement between Klapper and the United States, Klapper paid $2.79 million to settle the claims arising from the alleged misconduct. In addition, Klapper agreed to be permanently excluded from future participation in the Federal Employees’ Compensation Act program. In agreeing to the settlement, Klapper made no admission of liability.
This matter arose as a complaint for monetary damages under the qui tam provisions of the federal False Claims Act. The relator, Kimberly Cummings, a former employee of Klapper’s, filed a qui tam action on December 8, 2013, in the United States District Court for the Western District of Kentucky (United States, ex rel. Kimberly Cummings v. Phillip B. Klapper, P.S.C., Phillip B. Klapper, M.D., and Patricia Klapper, Civil Action No. 5:13CV-216-TBR). Cummings received $474,598.86 as part of this settlement.
The matter was handled by Assistant United States Attorney L. Jay Gilbert, of the U.S. Attorney’s Office for the Western District of Kentucky, and the U.S. Department of Labor. The investigation was conducted by the U.S. Attorney’s Office and the Offices of the Inspectors General of the U.S. Department of Labor, the U.S. Department of Justice, and the Tennessee Valley Authority.
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