Western District of Kentucky
Press releases recorded for this federal judicial district.
Barren County, Kentucky Felon Sentenced to 100 Months in Prison for Theft of FirearmsRead the Press Release
Burglarized and stole firearms from Horton’s Guns
BOWLING GREEN, Ky. – A Barren County, Kentucky, convicted felon was sentenced in United States District Court, by District Court Judge Greg N. Stivers, to 100 months in prison for charges associated with the burglary and theft of firearms from Hortons Guns, located in Cave City, Kentucky, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“100 months in federal prison is real time,” stated United States Attorney Russell M. Coleman. “Theft of firearms from a licensed dealer can trigger a domino effect of violent crime that puts Kentucky families and officers at risk. Pursuing those who would steal firearms is a priority of our office and helps protect our Commonwealth.”
Eric Glen Stockton, 37, of Cave City, Kentucky, pleaded guilty to being a felon in possession of a firearm, and entered an Alford plea to the charge of stealing a firearm from a licensed dealer.
According to information presented in court, Stockton burglarized Horton’s Guns on October 3, 2014. During a traffic stop in February 2015, KSP discovered a stolen firearm from the burglary in Stockton’s girlfriend’s car and Stockton was a passenger. In May 2015, ATF retrieved two stolen rifles from the burglary from a cooperating witness who indicated Stockton had given him and his father the weapons.
The United States was prepared to present evidence at trial that included video surveillance from Horton’s Guns, recorded the day prior to the burglary, showing a person fitting the description of Stockton, taking photos with his cell-phone of firearms that were later stolen. Additional video surveillance captures an individual believed to be Stockton reaching down from the ceiling removing long guns, then dropping into the store and breaking a glass case to steal five handguns.
Stockton stole and possessed 8 firearms from Horton’s, valued at $6,488 and included: DPMS, model LR-243, .243 caliber semiautomatic rifle; Bushmaster, model XM15-E2S, .223 caliber semiautomatic rifle; Bushmaster, model XM15-E2S, .223 caliber semiautomatic rifle, Taurus, model PT 1911, .45 semiautomatic pistol; Taurus, model PT 1911, .45 semiautomatic pistol; Taurus, model PT 1911, .45 caliber semiautomatic pistol; Hi-Point, model JHP, .45 caliber semiautomatic pistol; and a Glock, model 23, .40 caliber semiautomatic pistol. Stockton is required to pay restitution for the stolen firearms. Only three of the eight were recovered.
Stockton is a convicted felon with conviction related to prior gun thefts including: receiving stolen property (firearm), in Hart Circuit Court, Hart County, Kentucky, on March 1, 2011; and receiving stolen property over $500, in Barren Circuit Court, Barren County, Kentucky, on March 8, 2011.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with assistance from Kentucky State Police, Cave City Police Department, and the Barren Edmonson Allen County Drug Task Force.
Former CFO of Insurance Brokerage Company Sentenced to 37 Months in Prison and Agreed to Pay $674,093 in Restitution for Embezzlement and Tax EvasionRead the Press Release
Money supported a family owned business, personal expenses and gambling activity
LOUISVILLE, Ky. – The former Chief Financial Officer of Market Finders Insurance Corporation was sentenced today in United States District Court, by Chief Judge Joseph H. McKinley, Jr., to 37 months in prison and agreed to pay $674,093 in restitution, for committing tax evasion and embezzlement announced United States Attorney Russell M. Coleman.
Sylvia Rebecca Smith, 63, of Louisville, was charged by criminal Information with one count of wire fraud for devising an embezzlement scheme to obtain money from her employer, Market Finders Insurance Corporation (“Market Finders”) and then diverting those funds to PBS Insurance Underwriting Corporation, and two counts of failing to report embezzled funds as income on her tax returns. At the time, Smith was the bookkeeper for PBS Insurance and her husband was the sole owner.
Smith admitted in a plea agreement, that from July of 2013 through April of 2015, while employed as CFO of Market Finders, she generated fraudulent loan checks from her employer and diverted it into the bank account of PBS.
Specifically, during the relevant time period, the defendant devised a scheme to embezzle funds from Market Finders and Market Finders Insurance Premium Budget Corp. (“Market Finders Premium Budget”), a subsidiary of Market Finders, by creating fraudulent insurance financing contracts between Market Finders Premium Budget and existing insurance clients of PBS Insurance without the knowledge of those existing clients. Smith admitted to manipulating the records so that her theft of funds would not be detected by her employer.
Smith admitted that she and her husband used a portion of the fraudulent loan proceeds to fund her husband’s business and to pay for personal expenses for herself and her husband and to pay for gambling activity.
Further, Smith used a portion of the proceeds to make payments on the previous loans she had falsely created from Market Finders Premium Budget. When the scheme was discovered by Market Finders and brought to an end, Smith had not repaid approximately $674,093.
Additionally, Smith admitted to failing to report approximately $258,504 in embezzled funds as income for tax year 2013 and omitted approximately $514,696 in embezzled funds as income for tax year 2014 on Form 1040 of the U.S. Individual Income Tax Return.
This case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and is being investigated by the Louisville Metro Police Department, the Internal Revenue Service, and the Federal Bureau of Investigation.
Bowling Green Physician Guilty of Conspiring to Unlawfully Distribute and Dispense Controlled Substances and Health Care FraudRead the Press Release
BOWLING GREEN, Ky. – United States Attorney Russell M. Coleman today announced the guilty plea by former Warren County, Kentucky, physician Charles Fred Gott to multiple charges of unlawful distribution and dispensing of controlled substances and health care fraud, in United States District Court, before United States District Judge Greg N. Stivers.
Charles Fred Gott, age 66, a formerly licensed physician in the Commonwealth of Kentucky, was initially indicted by grand jury in Bowling Green on June 10, 2015. According to the terms of the plea agreement, Gott has agreed to serve a sentence of 96 months in prison, and pay restitution in an amount to be determined at sentencing. Gott is scheduled for sentencing by Judge Stivers, in Bowling Green, on May 7, 2018, at 9am.
Today’s plea agreement covers criminal activity between 2006 and September 19, 2013, in Warren County, Kentucky. In court today, 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.
Gott is further subject to forfeiture to the United States government any and all proceeds derived from unlawful activity as a result of the offenses and forfeiture of his license to practice medicine.
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, Office of the Attorney General, Medicaid Fraud and Abuse Division 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.
Paducah, Kentucky Office Manager Sentenced to 65 Months in Prison for Embezzling from Her EmployerRead the Press Release
Ordered to pay $747,455.30 in restitution
PADUCAH, Ky. – The office manager for Utilities Dynamics, Inc. was sentenced to 65 months in prison and ordered to pay restitution, by Senior Judge Thomas B. Russell, in United States District Court today, for wire fraud and identity theft as part of a scheme to defraud the company of $747,455.30 announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“Insider theft from private employers happens all too often – with losses that affect hiring, pay, and often solvency of the entire company,” stated United States Attorney Russell Coleman. “Anyone who believes this will go unnoticed, should look at the fate of Ms. Roberts who will spend more than five years in prison and must return every stolen dime.”
Kristen Renee Roberts, 39, of Calvert City, Kentucky, was charged in a criminal Information with one count of wire fraud and one count of aggravated identity theft as part of a scheme to defraud her employer of over $700,000 during an eight year period.
Roberts pleaded guilty and acknowledged that beginning in June of 2009 and continuing until October of 2017, while office manager for Utilities Dynamics, Inc., she was responsible for all of the Company’s accounts payable, accounts receivable, employee payroll, QuickBooks functions, and banking requirements. She also had access to the Company’s company credit cards and banking account information.
Roberts admitted to using the company credit cards for unauthorized purchases for the benefit of herself and her family. Further, Roberts admitted to making unauthorized purchases with company credit cards that were in her own name and to using the company credit card of K.B., without K.B.’s knowledge or authorization. Roberts knew she did not have authority to use K.B.’s credit card but did so with the intent to defraud both K.B. and the Company.
Roberts also admitted to electronically debiting the bank account of the Company in order to make payments on her own personal credit cards and the personal credit cards of her family.
Finally, because Roberts controlled the Company’s payroll, she also was able to overpay herself using direct deposits from the Company’s bank account into her personal bank account. Roberts would conceal these overpayments to herself by creating fake payroll payments to other employees within the Company and then deposit that money into her own account. She would also conceal these overpayments by creating fake invoices within the Company’s QuickBooks accounting software to various vendors used by the Company where the payments to these vendors were actually payments into her personal bank account.
This case was prosecuted by Assistant United States Attorney Nute Bonner and was investigated by the McCracken County Sheriff’s Office.
Hart County Kentucky Felon Sentenced to 70 Months for Unlawful Possession of Multiple FirearmsRead the Press Release
BOWLING GREEN, Ky. – A Hart County, Kentucky, felon was sentenced to serve 70 months in prison followed by three years of Supervised Release, by United States District Judge Greg N. Stivers, in United States District Court yesterday, for unlawful possession of firearms announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
Rodney Earl Staples, 52, of Munfordville, admitted on June 16, 2017, to the unlawful possession of a firearm. Law enforcement officials became aware of Staples’ criminal conduct during a follow-up investigation relating to his father’s business as a federal firearms’ licensee and the suspected transfer of firearms to his convicted felon sons. On August 21, 2013, law enforcement officials seized twelve firearms (11 long guns and one revolver), from Staples’ residence. He claimed that the firearms belonged to his then 10-year-old son.
Staples was convicted on June 6, 2006, in Hart Circuit Court, Hart County, Kentucky, in case number 05-CR-00152, with the attempted manufacture of methamphetamine, possession of a controlled substance – first degree, and trafficking in marijuana.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The investigation
Firearms charged in Staples casewas led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Lexington Man Sentenced to 30 Years in Prison for Threatening to Murder A Federal Prosecutor and Solicitation to Murder an Officer of the United StatesRead the Press Release
LEXINGTON, Ky. – United States Attorney Russell M. Coleman today announced the 30 year sentence of a Mexican National, formerly living in Lexington, by United States District Judge Danny C. Reeves, in United States District Court, for threatening to murder an Assistant United States Attorney and solicitation to murder an officer of the United States.
"The full power of the United States will be brought against those who place our prosecutors and federal officers at risk," stated United States Attorney Russell Coleman. "Today's thirty year sentence should give pause to those who are considering threatening those who protect our commonwealth."
Edgar Villa-Castaneda, 43, was found guilty on October 17, 2017, following a two-day trial, of both charges in a two-count indictment returned on February 2, 2017. According to information presented at trial, on about August 5, 2015, and September 22, 2015, in Woodford County, Kentucky, Villa-Castaneda threatened to murder then Assistant United States Attorney (AUSA) Robert M. Duncan, Jr.
Specifically, Villa-Castaneda, was incarcerated at the Woodford County Detention Center (WCDC) in February 2015, pending federal drug charges filed by then (AUSA) Duncan. On September 22, another inmate at the WCDC, contacted his lawyer and reported that Villa-Castaneda, using the nickname “Flaco” was attempting to hire someone to kill AUSA Duncan. On September 24, 2015, the inmate’s lawyer notified FBI Special Agent John Whitehead that Villa-Castaneda was attempting to hire someone to kill AUSA Duncan. During an interview with the FBI, the inmate explained that he and Villa-Castaneda became cellmates at the WCDC in September 2015, and that within hours Villa-Castaneda began talking to him about his hatred for AUSA Duncan. Villa-Castaneda believed that he and his incarcerated son were being unfairly targeted and erroneously being portrayed as major drug dealers by AUSA Duncan. Sometime over the next twenty-four hours, Villa-Castaneda asked the inmate if he knew anyone that could “whack” AUSA Duncan for him. Villa-Castaneda said he would pay $25,000 to have it done. Villa-Castaneda stated he currently had $15,000 hidden in radio speakers at his sister's house and he would pay an additional $10,000 after the job was done.
On November 24, 2015, Villa-Castaneda was questioned by FBI special agents at the Grayson County Detention Center. Villa-Castaneda was read his Miranda rights, and signed a form stating he understood his rights and understood he was waiving those rights before admitting to making the threats and soliciting an inmate to assist in the murder of AUSA Duncan.
The Honorable Robert M. Duncan, Jr. currently serves as the United States Attorney for the Eastern District of Kentucky having received an appointment by President Donald Trump.
Due to recusal by the United States Attorney’s Office for the Eastern District of Kentucky, this case was prosecuted by Assistant United States Attorney for the Western District of Kentucky, A. Spencer McKiness, and was investigated by the Federal Bureau of Investigation (FBI).
Convicted Felon Sentenced to Five Years in Prison for Unlawful Possession of FirearmsRead the Press Release
LOUISVILLE, Ky. – United States District Judge David J. Hale sentenced a Louisville man to 5 years in prison yesterday, followed by 3 years of Supervised Release for violating federal gun laws, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
Last September, Lugene Floyd, 44, pled guilty to being a felon in possession of firearms. According to the plea agreement and other court records, on April 27, 2016, law enforcement officials executed a search warrant on Floyd’s residence in Louisville, Kentucky. During execution of the search warrant, law enforcement officials discovered six firearms and numerous rounds of ammunition. The firearms included handguns and rifles.
Prior to April 27, 2017, Floyd had been convicted of several felony offenses in Jefferson County, Kentucky. The prior convictions involved drug and firearms offenses.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms & Explosives and Louisville Metro Police Department conducted the investigation as part of a joint effort to combat violent crime in Louisville.
Indiana Man Sentenced to 20 Years in Prison for Travelling Across State Lines to Engage in Sex with MinorsRead the Press Release
LOUISVILLE, Ky. – Today, United States District Judge David J. Hale sentenced a Lexington, Indiana, man to 20 years in prison followed by 20 years of Supervised Release for violating federal child exploitation laws, announced United States Attorney Russel M. Coleman. There is no parole in the federal system.
Last September, Jeffrey Lee Justice, 57, pled guilty to travelling from Indiana to Kentucky to engage in sexual activity with a 14-year-old girl. According to the plea agreement and other court records, law enforcement officials became aware of Justice’s conduct as the result of an online undercover operation.
On November 22, 2016, an investigator with the Kentucky Attorney General’s Department of Criminal Investigations, acting in undercover capacity, created a Craigslist ad in Louisville, Kentucky, under the personals tab. The ad did not include any statement requesting sexual contact from responders. That same day, Justice contacted the investigator through the Craigslist e:mail server. During the communications, the investigator stated that he was a caretaker for two minor children. Justice requested to meet the children for sexual activity.
Justice, who lived in Indiana, arrived at the agreed upon location. Law enforcement officials watched him drive into the parking lot in Jefferson County, Kentucky, on November 28, 2016. Justice had an LG VS425 smartphone in his possession at the time of his arrest. A state search warrant executed on the phone revealed that it was the device used to communicate with the investigator.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Office of Attorney General’s Department of Criminal Investigations 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."
Elizabethtown Man Pleads Guilty to Attempted Online Enticement and Distribution of Obscene Material to A MinorRead the Press Release
LOUISVILLE, Ky. – An Elizabethtown man pled guilty to two child exploitation offenses yesterday in United States District Court, announced United States Attorney Russel M. Coleman.
Timothy Scott Walters, 51, 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 ad indicating that the person who placed the ad was “looking for a sub girl to please me, the younger the better”. The investigator replied to the ad an advised that he was a 15-year-old girl. Walters asked 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 that the age of consent in Kentucky is 16.
Walters will be sentenced on May 11, 2018, at 11:00 a.m. before Chief United States District Judge Joseph H. McKinley, Jr. Walters 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. Walters 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 Postal Inspectors.
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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."
Louisville Convicted Felon Sentenced to 110 Months for Threatening to Kill A Louisville Metro Intelligence (LM INTEL) Joint Task Force Member and Multiple Firearm ViolationsRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the sentence of a Louisville convicted felon, in United States District Court, by Senior Judge Thomas B. Russell, to 110 months in prison, followed by a three year period of supervised release, for threatening to kill a Louisville Metro Police Officer while engaged in the performance of his official duties, and for several firearms violations. There is no parole in the federal system.
“Threaten a federal task force member engaged in protecting this city and go to federal prison, period,” stated United States Attorney Russell Coleman. “Today’s nine year sentence is well-earned.”
Roman L. Brown, 26, admitted in court, that on April 12, 2017, he threatened to assault and threatened to kill an LM Intel Joint Task Force member, in order to impede, interfere, intimidate and retaliate against the LM Intel member while he was engaged in the performance of his duty. Further, on the same day, Brown threatened to assault a member of the immediate family of the LM Intel Joint Task Force member, while he was engaged in the performance of his official duty.
Brown further admitted to being a convicted felon in possession of a Glock Model 36, .45 caliber pistol, and a Zastava, AK-style 7.62 caliber pistol. While fleeing from police, Brown attempted to conceal his possession of the loaded AK-style 7.62 caliber pistol, by throwing it out the window of a moving vehicle. Brown was convicted in Jefferson County Circuit Court of Trafficking in a Controlled Substance First Degree, on September 18, 2013.
Brown was indicted with co-defendant Chicoby Summers. Both defendants were charged with counts of being a convicted felon in illegal possession of firearms. The charges against Summers are pending.
Louisville Metro Intel (LM Intel) is an intelligence-led task force which identifies serious, violent offenders and leverages all available resources to investigate, apprehend and prosecute these offenders. The LM Intel Joint Task Force was announced in January of 2017, and includes the United States Attorney’s Office, federal investigative agencies, state prosecutors and Louisville Metro Police.
This case was prosecuted by Assistant United States Attorneys Erin G. McKenzie and Nute Bonner, and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Louisville Metro Police Department.
Owner of U.S. Energy Partners, Inc. of Bowling Green, Kentucky, Convicted of 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 convicted of wire fraud, securities fraud, and money laundering today in United States District Court, for creating a scheme that defrauded investors of $1,175,000 announced United States Attorney Russell M. Coleman.
“At the end of the day, white collar fraudsters are still just thieves preying on the trusting,” stated United States Attorney Russell M. Coleman. “Now that the jury has returned this verdict against Shelton, the US Attorney’s Office will aggressively pursue restitution to seek to make the victims whole again.”
The jury deliberated less than two hours before convicting Clay Shelton, 48, of Bowling Green, on all submitted counts, for devising a scheme that fraudulently obtained money from eleven investors. Shelton was taken into custody and is scheduled for sentencing before District Judge Greg N. Stivers on April 9, 2018 at 9:30am.
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.
Shelton could be sentenced to no more than 20 years, fined, ordered to pay restitution, and serve a period of supervised release.
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.
Kentucky Moving Companies Enter into Consent Judgment to Resolve False Claims Allegations - Agree to Pay $264,826.52Read the Press Release
Overcharged shipping costs associated with moving members of the United States Armed Forces
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced entering into a Consent Judgment between several Kentucky moving companies and the United States over allegations that the companies defrauded the United States out of monies by systematically overbilling the United States Army for shipping costs associated with deploying and/or relocating United States Service personnel. The Consent Judgment will resolve 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).
Specifically, Lynn Moving and Storage, Inc., Shadowens Moving and Storage Company, Inc., both of Brooks, Kentucky, and E-Town Moving and storage, Inc., located in Elizabethtown, Kentucky, along with their individual owners, admitted to violating the False Claims Act and agreed to pay $264,826.52 in civil penalties and damages.
Having the same ownership and management, as alleged by the United States, the defendants engaged in a company-wide conspiracy between January 2009, and December 2014, to defraud the United States government by causing false, inflated weight tickets to be created in order to increase the weight of the shipments and the amount of payment to the companies by the military. The military’s Defense Personal Property Program (DP3) facilitates the shipment of service members’ household goods, unaccompanied baggage, privately owned vehicles, and other personal belongings. The program allows moving companies to bill for services that ties the freight rate of payment to the pounds moved and distance traveled.
Defendants inflated the net weight of numerous shipments by inflating the gross weights and/or deflating the tare weight (weight of the vehicle). Company employees accomplished this by adding fuel between the recording of the tare and gross weighs, adding personnel and pallets of paper when recording the gross weight and/or deliberately positioning the truck so that it was not fully on the scale, and removing equipment and packing materials when recording the tare weight.
Company owners routinely reminded crew members to engage in these practices, threatening termination should they refuse to do so.
In addition to the civil damages, owners William Kenneth Montgomery and Lonnie Curl were charged in United States District Court by Criminal Information, on November 28, 2017, with a single count of False Claims Conspiracy. If convicted at trial the defendants could be sentenced to no more than ten years in prison and fined up to $250,000. Montgomery and Curl are scheduled for a change of plea before Senior Judge Charles R. Simpson III, on January 25, 2018, in Louisville.
This case was investigated by the Department of Defense, Defense Criminal Investigative Service with assistance from the U.S. Army’s Criminal Investigation Command, Major Procurement Fraud Unit and is being prosecuted by Assistant United States Attorneys Benjamin S. Schecter and Joshua D. Judd.
Former Marion County, Kentucky, Resident Guilty of Conspiracy to Manufacture and Possess Marijuana with the Intent to DistributeRead the Press Release
Johnny Boone pled guilty, with sentencing to follow on March 15, 2017
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the guilty plea, by John Robert Boone, in United States District Court, before Senior Judge Charles R. Simpson III, to a single count of a Superseding Information on December 19, 2017.
John Robert Boone a/k/a Johnny Boone, formerly of Marion County, Kentucky, has remained in the custody of the United States Marshals Service after being deported from Montreal, Canada in April of 2017.
Yesterday afternoon, Boone pled guilty to a Superseding Information containing a single charge. Boone admitted yesterday 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 plea agreement, Boone faces a maximum prison term of five years, a fine of $250,000, and a possible three-year term of supervised release. Sentencing is scheduled for March 15th at 2:30, in Louisville, before Senior Judge Simpson.
This case is being prosecuted by Assistant United States Attorney Larry Fentress.
boone_-_superseding_information_002.docx boone_-_plea_agreement_002.docxFormer Louisville Area Teacher and Athletics Coach Sentenced to 72 Months in Prison for Violations of Child Exploitation LawsRead the Press Release
LOUISVILLE, Ky. – A Louisville man formerly employed by Kentucky Country Day of Louisville as a physical education teacher and assistant coach with the school’s athletics department was sentenced this week, in United States District Court, by Senior Judge Thomas B. Russell, to 72 months in prison and 20 years of supervised release, for violating child exploitation laws, announced United States Russell M. Coleman.
Matthew Graves, age 40, pleaded guilty to two counts of a federal indictment on September 8, 2017. According to the plea agreement, between the dates of December 8 and 9, of 2014, Graves, while in Kentucky, knowingly used KIK (a social media messaging application) to transport and receive images of minors engaged in sexually explicit conduct with another KIK user in Maryland.
At the time of sentencing, the United States moved for dismissal of Counts one and Counts two of the Indictment, and agreed that a sentence of 72 months was appropriate.
Graves was arrested by federal authorities on March 21, 2016, and has remained in in the custody of the U.S. Marshals Service.
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and was investigated by the FBI and LMPD.
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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 and click on the tab "resources."
Hart County, Kentucky, Resident Charged with Possession with Intent to Distribute Methamphetamine and Being A Convicted Felon in Possession of Multiple Firearms and AmmunitionRead the Press Release
BOWLING GREEN, – A Hart County, Kentucky, resident was charged today by grand jury indictment with intentionally possessing methamphetamine for the purpose of distribution, being a convicted felon in possession of multiple firearms and ammunition, and carrying a firearm during a drug trafficking crime announced United States Attorney Russell M. Coleman.
Tonya Nickson, 42, of Cave City, was arrested at her home on July 27, 2017, by the Metcalf County Kentucky Sheriff’s Department and is currently out of custody on bond.
According to the three-count federal Indictment, Nickson is a convicted felon having been convicted of a felony on April 4, 2006, in Hart County Circuit Court, for possession of a controlled substance.
At the time of her arrest, Nickson was in possession of 19 firearms including: a Kimber, model Micro 9, 9 millimeter semiautomatic pistol; Fratelli Tanfoglio, model Witness PS, 9 millimeter semiautomatic pistol; Fratelli Tanfoglio, model Witness P, 9 millimeter semiautomatic pistol; Smith and Wesson, model 15, .38 caliber revolver; Iver Johnson, model 55, .22 caliber revolver; Maadi Company model Helwan, 9 millimeter semiautomatic pistol; CZ, model C252, 7.62 Tokarev caliber semiautomatic pistol; American Tactical Imports, model Omni Hybrid, multi caliber lower receiver; Marlin, model 70PSS, .22 semiautomatic rifle; Norinco, model SKS, 7.62x39 caliber semiautomatic rifle; Norinco, model SKS, 7.62x39 caliber semiautomatic rifle; Mossberg, model 500C, 20 gauge pump shotgun; Marlin, model 60, .22 caliber semiautomatic rifle; Savage, model 10, .22-250 caliber bolt action rifle; Oregon Arms Inc., model Chipmunk, .22 caliber bolt action rifle; Marlin, model 81, .22 caliber rifle, no serial number; Browning, model Auto 5, 12 gauge semiautomatic shotgun; Winchester, model 1200, 12 gauge pump shotgun; Winchester, model 62A, .22 caliber rifle; and ammunition.
If convicted of the charges, Nickson could be sentenced to no more than 20 years for count one, no more than ten years for count two, and no less than five years for count three. Further, Nickson could be fined and ordered to serve a period of supervised release.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
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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Louisville-Area Drug Trafficking Organization DismantledRead the Press Release
Alleged to have sold large quantities of methamphetamine in Indiana and Kentucky
New Albany – Josh J. Minkler, United States Attorney for the Southern District of Indiana and Russell M. Coleman, United States Attorney for the Western District of Kentucky, announced today the dismantling of a large drug trafficking organization (DTO) selling methamphetamine in Indiana and Kentucky.
“Drug trafficking brings gun violence that many of our Midwestern communities are experiencing,” said Minkler. “Those who choose to sell drugs in our neighborhoods will experience the full brunt of federal law enforcement and realize the Ohio River will not stifle or cooperative effort between law enforcement agencies.”
“The Department of Justice and our law enforcement partners stood shoulder to shoulder last week to promise intelligence-driven targeting of these violent drug trafficking organizations harming this great city,” said U.S. Attorney Russell Coleman. “Today’s arrests are yet another deposit on this promise; stay tuned.”
Those charged in the Southern District of Indiana with conspiracy to distribute methamphetamine include: Clifton Jones, 31, Gregory Churchill, 33, and Stanley Duke, Jr., 41 all from Louisville; Billy Dale Sears, 44, Harry Edelen, 44, Roger Carroll, Jr., 47, from New Albany, Indiana; and Chad Albertson, 40, from Salem, Indiana. Duke faces an additional charge of possession of a firearm by a convicted felon.
The indictment alleges that Billy Dale Sears was the leader and supervisor of the DTO which conspired to distribute large quantities of methamphetamine. Sears would obtain the methamphetamine from Clifton Jones and Gregory Churchill who both lived in Louisville. Sears would then distribute the methamphetamine to mid-level dealers in New Albany, Jeffersonville, Salem and Louisville for redistribution throughout Southwestern Indiana and Northern Kentucky.
Throughout the conspiracy, it is alleged that the DTO sold methamphetamine on a “front’ basis, where defendants provided large quantities of methamphetamine on consignment to distributors. Payment was received after the sale by other distributors. The defendants also used telephones, using code language and text messages to discuss matters relative the trafficking operation.
In a separate indictment, returned by a grand jury in Louisville on December 5, 2017, and unsealed today, eleven defendants, all from Louisville, were charged in a single count with conspiring with each other to possess with the intent to distribute 50 grams or more of methamphetamine, a Schedule II controlled substance.
Defendant Clifton Jones additionally faces charges in the Western District of Kentucky, along with co-defendants Dontay L. Rice, Eric R. Estey, 35, Dandre L. Taylor, 35, Odell P. Smith, Jr., 34, William C. Freeman, 32, James E. Hall, 33, Chad J. Heiser, 37, Clarence W. Rice, Jr., Alex M. Bowles, 25, and Joseph R. Willis, 21.
All but defendant Heiser were arrested Thursday, and are in federal custody. Defendants charged in the WDKY are scheduled for an initial appearance before Magistrate Judge Dave Whalin, in Louisville, at 2:00pm. Defendants charged in the Southern District of Indiana were scheduled to appear Friday morning before Magistrate Judge Van T. Willis.
This case was investigated by the Federal Bureau of Investigation in Indiana and Kentucky, IRS Criminal Investigation, ATF, United States Marshal Service, Jeffersonville Police Department, New Albany Police Department, Clarksville Police Department, Clark County Sheriff’s Department, Harrison County Sheriff’s Department, Indiana State Police and the Louisville Metro Police Department.
“Working collaboratively with our federal, state, and local partners we are able to target, disrupt and dismantle criminal enterprises such as this that use violence in the commission of their illegal activities so they can no longer terrorize our communities,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division.
“The FBI and its partners remain dedicated to disrupting and dismantling the most violent offenders and organizations through intelligence-driven investigations,” said Amy S. Hess, Special Agent in Charge FBI Louisville. “Our goal remains the same: stop the violence, get drugs and weapons off the streets, and deliver justice for the people who live in the communities we serve.”
According to Assistant United States Attorney Lauren M. Wheatley who is prosecuting this case for the Southern District of Indiana and Assistant United States Attorney J. Scott Davis, from the Western District of Kentucky, all defendants face ten years to life if convicted.
An indictment is merely a charge and not evidence of guilt. All defendants are considered innocent until proven guilty in federal court.
jones.et_.al_.pdf jones.et_.al_.pdfMembers and Associates of Violent Louisville Street Gang Charged in 40 Count Indictment with Conspiring to Obtain Firearms for Convicted FelonsRead the Press Release
Arrests resulted from Louisville Metro Intelligence Joint Task Force
Charges included 32 firearms, ammunition, and explosive materials
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman, joined by Special Agent in Charge Louisville Field Division of Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Stuart L. Lowrey, Louisville Metro Police Chief Steve Conrad, and Special Agent in Charge Federal Bureau of Investigation Amy Hess, announced the results today, of an ongoing investigation in to violent criminal activity, within Jefferson County, Kentucky, with the indictment and arrests of members and associates of the Victory Park Crips. These charges result from an investigation by Louisville Metro Intel (LM Intel): an intelligence-led task force which identifies serious, violent offenders and leverages all available resources to investigate, apprehend and prosecute these offenders. The LM Intel Joint Task Force was announced in January of 2017, and includes the United States Attorney’s Office, federal investigative agencies, state prosecutors and Louisville Metro Police.
The forty-count superseding indictment was unsealed late yesterday afternoon following the arrests of Chicoby Summers, 22, Shelby Strong, 33, Jerlen Horton, 23, Derrick Hammond, 33, and Lakeshia Watts, 23. All are from Louisville and are in federal custody following their initial appearances before United States Magistrate Judge Colin H. Lindsay, late yesterday afternoon in Louisville.
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 VPC 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, the defendants 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 to possess a firearm.
All defendants are charged in count one with conspiracy to possess a firearm by a prohibited person. Defendants Horton, Hammond and Watts are further charged with conspiring to corruptly obstruct, influence, and impede an official proceeding. Additionally, Strong is charged with engaging in the business of dealing in firearms without a license. Strong is further charged with making material false statements in order to acquire firearms from River City Firearms and Cabela’s and for illegally possessing firearms as a habitual drug user. Strong is also charged, along with Hammond, for transferring firearms to convicted felons.
Summers and Horton are charged with illegal possession of multiple firearms by convicted felons. Horton is further charged with received and possessing explosive material including two LIDU, 1.3g, 2 inch display shells; two LIDU, 1.3g, 3 inch display shell, and one Legend, 1.3g, 4 inch TI Salute shell.
If convicted at trial, defendants face up to ten years in prison for each count for counts 2-34 and 36-40; and up to five years for each of counts one and 35. All counts carry a fine of $250,000 and each count includes a three-year period of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the support of the Louisville Metro Police Department, Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA).
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The charge of a person by a Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty
summers_et_al._ssi_11_21_17.pdfJefferson County, Kentucky, Resident Sentenced to Ten Years in Prison for Attempted Online Enticement of A MinorRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the ten-year sentence followed by a 20-year term of Supervised Release, of a Jefferson County, Kentucky resident, by Senior Judge Charles R. Simpson, III, in United States District Court, for the attempted online enticement of a minor. There is no parole in the federal system.
According to the factual basis of the plea agreement, Carl Dean Sewell, 25, from Louisville, admitted to using a cell phone to communicate with a person, whom Sewell believed to be a 15-year-old girl, for the purposes of engaging in sexual activity. While authorized by the Attorney General to conduct undercover (UC) operations within the Commonwealth, on December 2, 2016, a law enforcement official created an ad on the Louisville Craigslist website under the personals tab titled “nothing serious”. The ad did not request any sexual contact from prospective responders. A person later identified as Sewell contacted the UC that same day through the Craigslist Email server system. The UC identified himself to Sewell as a 15-year-old female.
During the online communications, email and then texting, Sewell, who used the name “Dean” brought up the subject of sexual activity with the person he believed to be a 15-year-old girl. Specifically, he asked the UC to engage in sexual activity for the purpose of creating a video. The UC agreed to meet Sewell on December 5, 2016, at an address on Taylorsville Road in Eastern Jefferson County, Kentucky. Law enforcement officials watched Sewell drive to the agreed upon location where he was arrested. A search warrant on the phone confirmed that it was the device Sewell had used to communicate with the UC.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Attorney General’s Department of Criminal Investigations Cyber Crime Unit conducted the investigation with assistance from Louisville Metro Police Department.
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.
Greensburg, Kentucky, Attorney Charged with Embezzling from Clients to Pay Gambling Losses Exceeding $1.6 MillionRead the Press Release
BOWLING GREEN, Ky. – A Greensburg, Kentucky, attorney was charged with multiple counts of wire fraud as part of a scheme to obtain money from clients of his legal practice, by means of misappropriating funds, in order to pay personal expenses including gambling losses announced United States Attorney Russell M. Coleman.
Danny P. Butler, 71, of Campbellsville, was charged by federal grand jury indictment on November 15, 2017 and made a first appearance in federal court today. Butler has state felony charges pending in Larue County, Kentucky. He is currently in federal custody.
According to the indictment, Butler was an attorney licensed with the Kentucky Bar Assoccation who was authorized to practice law in the Commonwealth of Kentucky. He operated a legal practice in Greensburg, located in Green County, Kentucky, and provided clients with a broad range of legal services including probate, general civil, and government benefits.
Butler maintained seven bank accounts which he used for both personal and business purposes. From about August of 2009 through October of 2016, Butler used the bank accounts to routinely commingle client funds, and often to misappropriate funds from one client to distribute funds to other, unrelated clients. He also used client funds from the bank accounts to make cash withdrawals and pay personal expenses. In addition, he transferred client funds from business bank accounts to his personal accounts.
From 2009, through 2015, Butler incurred personal gambling losses, totaling $1,648,613 that he paid for, in large part, by the misappropriation of funds from eleven clients. .
If convicted at trial, Butler could be sentenced to no more than 20 years in prison, fined $250,000, and be required to serve a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Bryan Calhoun and H. Joseph Pinto, III and is being investigated by the FBI and 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
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Convicted Felon, Living in Logan County, Kentucky, Sentenced to 87 Months in Prison for Possession and Attempted Distribution of Methamphetamine and CocaineRead the Press Release
Charges include being a felon in possession of seven firearms and ammunition
BOWLING GREEN, Ky. – A convicted felon, living in Logan County, Kentucky, was sentenced today by United States District Judge Greg N. Stivers, in United States District Court, to 87 months in prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine, and being a felon in possession of firearms and ammunition, announced United States Russell M. Coleman.
Sherman Matthew Watkins, 41, who was residing in Russellville at the time of his arrest, pleaded guilty on August 29, 2017, to one count of possession with intent to distribute five grams or more of methamphetamine a Schedule II controlled substance and two counts of being a felon in possession of seven firearms and ammunition. Watkins remains in federal custody.
Watkins was arrested in Logan County on December 6, 2016, and at that time was in possession of $1,132 in U.S. currency, 41.86 grams of methamphetamine, a Norinco, model SKS, 7.62x39 semiautomatic rifle; a Smith and Wesson, model 37 Airweight, .38 caliber revolver; a Smith and Wesson, model 10-8, .38 caliber revolver; and assorted rounds of ammunition. Further, between November 1, 2016 and November 25, 2016, Watkins was in possession of a Glock, model 42, .380 caliber semiautomatic pistol; a Ruger, model 10/22, .22 caliber semiautomatic rifle; a Mossberg, model 590, 12 gauge semiautomatic shotgun; a Just Right Carbines, model JR Carbine, 9mm semiautomatic rifle; and assorted rounds of ammunition.
Watkins has two previous convictions Jefferson County Circuit Court including Possession of a Controlled Substance 1st Degree on May 8, 2014, and Criminal Possession of a Forged Instrument 2nd Degree, on May 26, 2011.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Champagne, Illinois, Resident Guilty of Producing and Selling over 80,000 Homemade Tramadol Capsules to Customers Without Verifying PrescriptionsRead the Press Release
OWENSBORO, Ky. – A Champaign, Illinois, resident pleaded guilty in United States District Court today, before Chief Judge Joseph H. McKinley, to four felony charges including distributing Tramadol, a Schedule IV controlled substance, introduction of misbranded drugs, and wire fraud, announced United States Attorney Russell M. Coleman.
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.
If convicted at trial, Prahl could have been sentenced to no more than 31 years in prison, fined, and order to serve a period of supervised release. Prahl remains free on bond until sentencing on March 12, 2018, in Owensboro, by Chief Judge McKinley.
This case is being prosecuted by Assistant United States Attorney David R. Weiser and is being 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.
prahl_skyler_plea_agreement_11_28_17.pdfChief of Maintenance Employee at Ken American Resources Paradise #9 Mine Located in Muhlenberg County, Kentucky, Sentenced for Violation of the Mine Safety and Health ActRead the Press Release
OWENSBORO, Ky. – The Chief of Maintenance at Ken American Resources Paradise #9 Mine located in Muhlenberg County, Kentucky, was recently sentenced in United Sates District Court by Chief Judge Joseph H. McKinley, Jr., to two years of supervised probation and ordered to pay a $2,000 fine for felony violations of the Mine Safety and Health Act, announced United States Attorney Russell M. Coleman.
“Falsifying safety records puts our miners at risk and will be federally prosecuted” stated U.S. Attorney Coleman. “Safety inspections of belt drives in coal mines are important because if they don’t run smoothly, fires or other catastrophes can occur in an environment with zero margin of error. We will continue to work with the Mine Safety and Health Administration to investigate those who undermine the safety of our Commonwealth’s critically important mines.”
Daniel L. Couch, Jr. entered a guilty plea on July 13, 2017, and was sentenced on November 17, 2017.
According to the indictment, Couch, whose job it was to make a weekly inspection of electric equipment, specifically of the belt drive of coal seal 11 at Paradise #9 Mine, did not in fact make the required fire suppression checks for the week of May 1 through 7, in 2016.
On about May 17, 2016, an Inspector from the United States Department of Labor, Mine Safety & Health Administration, inspected the record book for fire suppression checks conducted on the belt drives for coal seam 11, which contains seven separate belt drives at seven different locations, and found that no fire suppression checks had occurred for the week of May 1 through 7, 2016.
On or about May 19, 2016, the Inspector returned to Paradise #9 mine and re-examined the record book for inspections for the belt drive for coal seam 11, at which time the book revealed that the belt drives had been examined on May 7, 2016 by “D. Couch,” and that no hazards had been observed.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Mine Safety and Health Administration (MSHA) U.S. Department of Labor.
Six Cases Prosecuted in Metro Louisville for Skimming Credit Card Information of Gas Station CustomersRead the Press Release
Estimated up to 50 active skimmers at gas-pumps in greater Louisville during investigation
Financial loss exceeds $3.5 million
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman, joined by FBI Special Agent in Charge Amy S. Hess, United States Secret Service Special Agent in Charge Richard Ferretti, and Louisville Metro Police Chief Steve Conrad, today announced the results of an on-going investigation involving nearly 30 law enforcement agencies, across three states, (Kentucky, Ohio, and Indiana) that has resulted in the arrest of eight individuals charged with aggravated identity theft, wire fraud and other charges, for their roles in skimming credit card information of gas station customers at gas-pumps.
“Today, the United States Attorney’s Office is joined by the FBI, Secret Service, Louisville Metro Police and nearly 30 law enforcement agencies to send a unified message to those who plant credit card skimming devices in the Western District of Kentucky: you will be caught and you will be prosecuted,” stated United States Attorney Russell Coleman.
“As advances in technology influence almost every aspect of our daily lives, it is important to remember these same advances allow the unscrupulous to prey on unsuspecting members of the public. The FBI, and its federal, state, and local counterparts will continue our efforts to inform the public regarding the danger of credit card skimming, and we will pursue those who commit these crimes and bring them to justice,” stated FBI Special Agent in Charge Amy S. Hess.
“This indictment is another example of how the Secret Service Electronic Crimes Task Force continues to successfully combat financial crimes. Our success is this case is the result of the extraordinary work of our investigators and our close cooperation with our law enforcement partners, stated United States Secret Service Special Agent in Charge Richard Ferretti”
In the Western District of Kentucky, eight individuals have been indicted by federal grand jury, either individually or as co-defendants, with charges including possession of device making equipment, conspiracy to commit mail and bank fraud, money laundering, wire and bank fraud. Of the eight defendants, two were sentenced in United States District Court, four pleaded guilty and await sentencing, and the remaining two defendants have trial dates in January 2018. All defendants have been charged with aggravated identity theft, which carries a mandatory minimum sentence of 24 months consecutive with the sentence for any other fraud offenses. There is no parole in the federal system.
The number of victims exceeds 7,000 unique card numbers belonging to both individuals and businesses. The United States Attorney’s Office has provided banks and financial institutions with information where card numbers were compromised. The combined intended loss for the six cases exceeds $3.5 million.
According to the indictments and plea agreements, skimmers were in use at convenience store gas stations located at Highway 42 in Prospect, Taylorsville Road, Bardstown Road, Saint Andrews Church Road, Galeen Drive, Shelbyville Road, and LaGrange Road.
Specifically, in United States v. Misael Jose Fernandez Campos, the defendant was charged by indictment on May 3, 2016 and entered a guilty plea to all 16 counts on October 2, 2017 before Chief Judge Joseph H. McKinley, Jr., in United States District Court. According to the plea agreement, between February 2015, to March 2016, Campos manufactured skimming devices designed to illegally capture credit and debit card numbers being used at Louisville gas stations. The skimming devices were installed by Campos inside the gas pumps and later collected. The stolen financial information was then re-encoded, transferred, or cloned on to the magnetic strip of other plastic cards.
On August 17, 2017, five defendants were charged in four separate cases by grand jury indictment. Specifically, Pabel Anguela-Vazquez, Andres Tomas Alvarez Hernandez, Leonardo Rodriguez Prado, Yusbel Folgosso Parrado, and Miguel Yansel Castillo Fornaris.
Defendants Anguela-Vazquez and Hernandez were charged with wire fraud, aggravated identity theft, and conspiracy to commit mail fraud and bank fraud. Both Hernandez and Anguela-Vazquez pleaded guilty in United States District Court, before District Judge David J. Hale in August 2017. Sentencing is scheduled for December 1, 2017 in Louisville.
Defendant Prado was charged with wire fraud, aggravated identity theft, possession of unauthorized and counterfeit access devices, and money laundering. Defendant Garcia was charged with bank fraud, aggravated identity theft, and money laundering. Both are scheduled for trial in United States District Court, before Senior Judge Charles R. Simpson, in January 2018.
Defendant Parrado was charged with wire fraud and aggravated identity theft. He pleaded guilty and was sentenced on November 8, 2017, to 28 months in prison by Chief Judge Joseph H. McKinley, Jr.
Defendant Fornaris was charged with wire fraud and aggravated identity theft. He pleaded guilty to the charges and was sentenced on November 6, 2017 in United States District Court, to 45 months in prison, by Chief Judge H. McKinley, Jr.
On September 1, 2017, defendant Noslen Hernandez Guerra was charged in a criminal complaint, then by grand jury indictment, with fraud with identification documents, while on federal supervised release. Guerra pleaded guilty on October 23, 2017, and is scheduled for sentencing in United States District Court by Chief Judge H. McKinley, Jr., on February 5, 2018.
“This form of identity theft is causing untold losses to both financial institutions and individuals who are merely filling their tanks at the gasoline pump. As we begin the busiest travel season of the year, consumers need to pay special attention to where and how they pay for gasoline as criminals are using new and more sophisticated technologies,” concluded United States Attorney Coleman.
Consumers can take steps to reduce the risk of having their payment card information stolen at the gas pump. These steps include paying for gasoline inside the convenience store and when possible pay with cash; checking for signs that may suggest that the machine has been tampered with such as missing, broken, or loose security tape; and using gas pumps in view of surveillance cameras or visible to store clerks.
These cases are being prosecuted by Assistant United States Attorneys Joshua Judd and Daniel Kinnicutt and are being investigated by the Federal Bureau of Investigation, United States Secret Service, and Louisville Metro Police with assistance from Bardstown (KY) Police Department, Bellbrook Ohio Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Carrolton Police Department, Centerville Ohio Police, Harrison County Indiana Sheriff’s Department, Hamilton County Ohio Police Department, Jasper Indiana Police Department, Jefferson County Sheriff’s Department, Kentucky Department of Corrections, Kentucky Department of Fish and Wildlife, Kentucky State Police, Lexington Police Department, Madison Indiana Police Department, Ohio State Highway Patrol, Oldham County Police, Prospect (KY) Police Department, Rising Sun Indiana Police Department, St. Matthews Police Department, Simpsonville Police Department, Versailles Police Department, and West Chester Ohio Police Department. the Kentucky Department of Agriculture, Ohio Department of Agriculture, Colorado State Patrol, Clark County Sherriff's Office, Allen County Sherriff's Office, and Scottsville Police Department
Former Ballard County Judge Executive and Ballard County Treasurer Sentenced for Their Individual Roles in Concealing Unauthorized Bank LoansRead the Press Release
PADUCAH, Ky. – United States Attorney Russell M. Coleman today announced the sentencing of the former Ballard County Judge Executive and Ballard County Treasurer, in United States District Court, by Senior U.S. District Judge Thomas B. Russell, for their individual roles in securing and then concealing unauthorized bank loans.
“When public officials break the law, this diminishes the public’s confidence in our government and the rule of law itself,” stated United States Attorney Russell M. Coleman. “Our office and our law enforcement partners will hold elected officials accountable, be it for defrauding banks or the very resources of the people they were elected to represent. Vigorous investigation and ultimate federal prosecution of public officials in the Western District of Kentucky, who use their positions to steal from the public, should keep corrupt officials up at night.”
Vickie Louise Viniard, the former Ballard County Judge Executive was sentenced to time served and a 2-year period of supervised release and ordered to pay restitution of $1,832.76 individually and $53,998.21 jointly and severely with co-defendant Belinda Foster for bank fraud, wire fraud and making false statements on a loan application. Foster, the former Ballard County Treasurer, was also sentenced to time served and a 2-year period of supervised release and ordered to pay $93,673.82 in restitution, of which $53,998.21 will be jointly and severally liable with Viniard. Foster pleaded guilty to bank fraud, wire fraud, and receiving fraudulent medical reimbursement payments. Neither Viniard nor Foster had any history of criminal activity but both now stand convicted of felony offenses involving public corruption.
According to information presented in court, Viniard, while serving as Ballard County Judge Executive, applied for and received a series of five unauthorized loans, totaling over $1 million, on behalf of Ballard County during a two-year period between June of 2012 and June of 2014.
At the time of the loans, Ballard County suffered from cash shortages and this prompted Viniard’s scheme, which was to obtain short-term loans in order to fund Ballard County operations and make payments on bond obligations without seeking approval of the loans from the Ballard County Fiscal Court or informing the Kentucky Department of Local Government, both of which she was required to do under Kentucky state law. Even though Viniard did not personally benefit from any of these loans and all loan proceeds were used for Ballard County expenditures; Viniard lied to the bank’s loan officer by claiming she had authority to obtain the loans, which she knew she did not have. Viniard also intentionally concealed these loans from the Ballard County Fiscal Court for over two years and never notified the Kentucky Department of Local Government about any of the loans.
Co-defendant Belinda Janean Foster, the former Ballard County Treasurer, also deceived the Ballard County Fiscal Court about the loans by assisting Viniard in intentionally concealing the existence of the loans and even acting as a co-signor on some of the loans. Foster, at the direction of Viniard, never reported the loans to the Fiscal Court or the Kentucky Department of Local Government and intentionally labeled $350,000 from the loans as “payroll tax” instead of accounting for the income as loan proceeds. In addition to the fraudulent loans, Foster regularly wrote herself checks for fraudulent medical reimbursement payments totaling over $27,000.
This case was prosecuted by Assistant United States Attorney Nute Bonner and was investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation (FBI).
Louisville Business Owner Convicted of Defrauding A United States Department of Agriculture ProgramRead the Press Release
Owner of the Meat Store convicted of Food Stamp Fraud
LOUISVILLE, Ky. – The former owner of a Louisville specialty food store was convicted in United States District Court yesterday, before Senior Judge Thomas B. Russell, of Food Stamp fraud, following a four day jury trial announced United States Attorney Russell M. Coleman.
Elias 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 undercovers into the Meat Store to attempt to sell SNAP benefits for cash. Between September 1, 2015, and July 12, 2016, the two undercovers 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 undercovers would present multiple SNAP EBT cards in different names 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.
Sentencing is scheduled before Senior Judge Russell in February 2018. Estephane faces up to five years in prison, three years of supervised release, restitution and a fine of up to $10,000.
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 Louisville Business Owner Sentenced to 27 Months in Prison for Failure to File Income Tax Returns and Tax EvasionRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman, today announced the sentencing of former Louisville business owner Lawrence P. Tatem, in United States District Court, by Senior Judge Charles R. Simpson III, to 27 months in prison and one year supervisory release, for willful failure to file federal income tax returns during a four-year period and evasion of payment of taxes, penalties, and assessments totaling $533,498 from a two-year period.
According to the charges, Tatem, 50, willfully attempted to evade and defeat the payment of a large part of the federal income tax, penalties, and interest due by him to the United States of America, for the calendar years 2002 through 2004, totaling approximately $533,498, by concealing his assets; by changing the names and locations of his rehabilitation businesses; by placing his businesses in the names of nominees J.S., D.R., and M.Z.; by closing bank accounts at Republic Bank after the Internal Revenue Service attempted to levy funds from the accounts, and opening new bank accounts at Chase Bank under different names; and by operating in cash without keeping proper records of cash transactions.
Further, Tatem admitted to willful failure to file federal income tax returns for calendar years 2010 to 2013. Specifically, during the calendar year 2010, Tatem received gross income of approximately $252,860 and failed to file a federal tax return by April 15, 2011. During calendar year 2011, Tatem received gross income of approximately $45,353 and failed to file a federal tax return by April 15, 2012. During calendar year 2012, Tatem received gross income of approximately $199,067 and failed to file a federal income tax return by April 15, 2013. During the calendar year 2013, Tatem received gross income of approximately $120,994 and failed to file a federal income tax return by April 15, 2014.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Internal Revenue Service Criminal Investigation Division.
Casey County, Kentucky, Man Sentenced to 12 Months in Prison for Defrauding the Farm Credit Administration Through Sales of Grain to Unauthorized PurchasersRead the Press Release
Ordered to pay $689,104 restitution
BOWLING GREEN, Ky. – a Casey County, Kentucky, man was sentenced today in United States District Court by District Judge Greg N. Stivers, to 12 months in prison, 3 years supervisory release, with the first 12 months spent in home confinement, and ordered to pay restitution in the amount of $689,104.28 to the Farm Services Agency, for his role in a conspiracy to defraud the Farm Credit Administration by concealing the sale of grain to unauthorized purchasers, announced United States Attorney Russell M. Coleman.
Christopher S. Fair, 38, of Liberty, Kentucky, previously entered a guilty plea to two counts of a criminal indictment including converting assets pledged to the Farm Credit Administration and bankruptcy fraud.
According to the plea agreement, between July 18, 2012, and October 29, 2013, defendant Fair obtained loans from Central Kentucky Agriculture Credit (CKAC) and secured these loans with the proceeds of expected grain sales and pursuant to the loan agreements, Fair was only authorized to sell grain to authorized buyers. CKAC is a subsidiary of the US Department of Agriculture (USDA), Farm Credit Administration, and the loans were guaranteed by the USDA Farm Service Agency (FSA).
Contrary to the loan agreement, and without CKAC’s knowledge or consent, Fair sold his grain to unauthorized purchasers, and transferred the proceeds of those sales to bank accounts under his own control and the control of others, including a bank account under the name FJ Holdings, an entity created by Fair’s friend, Timothy Jaynes. Fair subsequently used those proceeds for his own personal benefit. Fair ultimately defaulted on the CKAC loans, resulting in a loss to FSA of $689,104.28.
In July 2013 Fair filed for Chapter 7 bankruptcy protection and knowingly and fraudulently concealed his property and proceeds from his creditors and the US Trustee, including proceeds held in bank accounts under the names FJ Holdings and Jman Farms, LLC. Jman Farms LLC was created by another of Fair’s friends, at Fair’s request, for the purpose of hiding Fair’s assets from creditors.
Defendant Jaynes, 51, of Casey County, was charged in a separate case by Criminal Information and pled guilty in U.S. District Court to converting assets pledged to the Farm Credit Administration Defendant. Jaynes was sentenced to serve three years of probation with supervision, and ordered to pay restitution in the amount of $50,000 to the Farm Service Agency.
This case was prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Department of Agriculture, the Federal Bureau of Investigation (FBI), and the US Bankruptcy Trustee’s Office.
Take Back Initiative an Overwhelming SuccessRead the Press Release
- 11,076 pounds of prescription drugs collected in Kentucky on October 28th!
LOUISVILLE, KY – Kentuckiana residents assisted in dramatically reducing the number of potentially dangerous prescription drugs from their homes by cleaning out medicine cabinets and safely disposing of 11,076 pounds of unused medications at more than 70 collection locations on Saturday, October 28th, announced United States Attorney Russell M. Coleman and DEA Associate Special Agent in Charge D. Christopher Evans.
In the Western District of Kentucky, residents did their part to reduce the opioid crisis by bringing DEA and participating law enforcement partners, 4,565 pounds of potentially dangerous, expired, unused, and unwanted prescription drugs for disposal. That is 665 more pounds than was collected at last spring’s event.
DEA’s Detroit Field Division, which covers Michigan, Ohio, and Kentucky, collected 67,211 pounds—over 33 tons of potentially dangerous expired, unused and unwanted prescription drugs for disposal at its more than 526 collection sites.
According to DEA, Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its more than 4,200 local and tribal law enforcement partners a record-setting 912,305 pounds—456 tons—of potentially dangerous prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event. This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,015,668 pounds, or 4,508 tons.
Now in its 8th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens. The DEA action comes just days after President Donald J. Trump announced the mobilization of his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency to address the opioids crisis.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.
Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.
Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com DEA’s next Prescription Drug Take Back Day is April 28, 2018.
Louisville Man Sentenced to 121 Months in Prison for Sex Trafficking of A MinorRead the Press Release
27 year-old man used 14-year-old girl for commercial sex acts
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the sentencing this week in United States District Court, before Senior Judge Charles R. Simpson III, of a Louisville man, to 121 months in prison for sex trafficking of a minor.
Keith L. Napier, Jr., 27, admitted that beginning in March of 2016, in Jefferson County, Kentucky, he asked Jane Doe, a 14-year-old female, if she could help him earn money to pay off debts by performing commercial sex acts. Napier had a reasonable opportunity to observe Jane Doe, and also knew her real age. From March 2016 to May 2016, Napier transported Jane Doe to and from appointments with clients for commercial sex. The commercial sex acts frequently took place at hotels, frequented by out-of-state visitors. Napier advertised the commercial sex acts on the internet website, Backpage.com.
The investigation was opened during a prostitution sting coinciding with the Kentucky Derby when Louisville Metro Police Department (LMPD) officers found a listing on Backpage.com advertising prostitution. A LMPD Detective arranged a meeting and encountered a 14-year-old female. Napier had transported the minor to the Jefferson County hotel to perform a commercial sex act.
The case was prosecuted by Assistant United States Attorney Amanda E. Gregory of the Western District of Kentucky. The case was investigated by LMPD and the FBI’s Louisville Division.
Former CFO of Insurance Brokerage Company Guilty of Embezzling $2 Million over A Two Year Period and Tax EvasionRead the Press Release
Money supported a family owned business, personal expenses and gambling activity
LOUISVILLE, Ky. – The former Chief Financial Officer of Market Finders Insurance Corporation, pleaded guilty in United States District Court yesterday afternoon, before Magistrate Judge Dave Whalin, to tax evasion and embezzling nearly $2,000,000 during a two year period announced United States Attorney Russell M. Coleman.
Sylvia Rebecca Smith, 63, of Louisville, was charged by Information with one count of wire fraud for devising an embezzlement scheme to obtain money from her employer, Market Finders Insurance Corporation (“Market Finders”) and then diverting those funds to PBS Insurance Underwriting Corporation, and two counts of failing to report embezzled funds as income on her tax returns. At the time, Smith was the bookkeeper for PBS Insurance and her husband was the sole owner.
According to the plea agreement, Smith admitted that from July of 2013 through April of 2015, while employed as CFO of Market Finders, she generated fraudulent loan checks from her employer and diverted it into the bank account of PBS.
Specifically, during the relevant time period, the defendant devised a scheme to embezzle funds from Market Finders and Market Finders Insurance Premium Budget Corp. (“Market Finders Premium Budget”), a subsidiary of Market Finders, by creating fraudulent insurance financing contracts between Market Finders Premium Budget and existing insurance clients of PBS Insurance without the knowledge of those existing clients. Smith admitted to manipulating the records so that her theft of funds would not be detected by her employer.
Smith admitted that she and her husband used a portion of the fraudulent loan proceeds to fund her husband’s business and to pay for personal expenses for herself and her husband and to pay for gambling activity.
Further, Smith used a portion of the proceeds to make payments on the previous loans she had falsely created from Market Finders Premium Budget. When the scheme was discovered by Market Finders and brought to an end, Smith had not repaid approximately $674,093.
Additionally, Smith admitted to failing to report approximately $258,504 in embezzled funds as income for tax year 2013 and omitted approximately $514,696 in embezzled funds as income for tax year 2014 on Form 1040 of the U.S. Individual Income Tax Return.
At sentencing, Smith agreed to pay $674,093 restitution and could be sentenced to no more than 26 years in prison. Smith was released from federal custody on a $25,000 bond and is scheduled for sentencing before Chief Judge Joseph H. McKinley, Jr. on February 5th, in Louisville.
This case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and is being investigated by the Louisville Metro Police Department, the Internal Revenue Service, and the Federal Bureau of Investigation.
smith_sylvia_information_11_3_17.pdfU.S. Attorney, DEA in Kentucky, and Law Enforcement Announce Prescription Drug Take Back Day to Safely Remove Medications from Local HomesRead the Press Release
More than 70 locations this Saturday where Kentuckiana residents can safely and anonymously dispose of potentially dangerous prescription medications
LOUISVILLE, Ky. – Kentuckiana residents have an opportunity this Saturday to safely and anonymously rid their homes of unused, unwanted, unneeded, or expired prescription medications, announced United States Attorney Russell M. Coleman and Drug Enforcement Administration (DEA) Associate Special Agent in Charge, D. Christopher Evans. The National Prescription Take Back Day, is Saturday, October 28, 2017, at more than 70 locations across Kentucky and Southern Indiana. During this one-day event, federal and local law enforcement will once again partner to increase awareness of prescription drug abuse and provide an opportunity to reduce the availability of prescription pain medications in local homes.
U.S. Attorney Coleman and Mr. Evans were joined today, by Rick Sanders, Kentucky State Police Commissioner; Steve Conrad, Louisville Metro Chief of Police; and Col. John Aubrey, Jefferson County Sheriff, at a news conference to encourage families to clean out medicine cabinets and safely rid their homes of unwanted and expired prescription medications.
“This initiative addresses a vital public health concern,” stated U.S. Attorney Russell Coleman. “Leftover painkillers that gather dust in home medicine cabinets run the risk of diversion, misuse, abuse and theft. Properly disposing of these potentially addictive medications is one important step toward reducing our nation’s opioid epidemic and the related overdose deaths.”
DEA Special Agent in Charge Timothy J. Plancon said: “The most common way that prescription drug abusers obtain their drugs, is from their own family or from their friends. We can all do our part to potentially reduce substance abuse, by being proactive and participating in prescription drug take back programs. Removing unwanted or expired medications from our home is a small step we can all take to keep our families and community healthier and safer.”
KSP Commissioner Rick Sanders said his agency will participate by providing 16 Take Back drop off locations across the state. “The continued support of citizens who choose to properly dispose of unwanted prescription pills speaks volumes to the effectiveness of this program,” stated Commissioner Sanders. “By properly disposing of these unused prescription drugs from our medicine chests, we help to prevent theft, misuse and abuse. We also reduce the likelihood of tragedy and accidental poisoning of young children in our homes.”
“Taking back unused prescription medications means thousands of incidents of drug abuse are prevented in our community,” stated Louisville Metro Police Chief Steve Conrad.
USA Coleman and Mr. Evans also stated that the Take Back is a great opportunity to begin a dialogue with children to educate them on the dangers of obtaining pharmaceuticals for illicit use. Studies show that two-thirds of all teenagers who abuse prescription narcotics first obtain the drugs from family and friends; often from their home medicine cabinet.
Further, Mr. Coleman underscored yesterday’s announcement by United States President Donald Trump, declaring opioid abuse a national public health emergency. The Take Back is one way families and communities can take an effective step toward combatting this epidemic.
Prior DEA Prescription Take Backs have been extremely successful with Kentuckiana residents dramatically reducing the risk of pain pill and other medication abuses by ridding their homes of thousands of pounds of unused prescription medications.
Last April the public turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons of unused pills.
The Prescription Drug Take Back is part of a nationwide effort sponsored by the DEA. Containers where unwanted and expired prescription medications may be safely disposed will be at locations across Kentucky, and Southern Indiana, on Saturday, from 10 a.m. to 2:00 p.m. (DEA cannot accept liquids, needles or sharps.) The service is free and anonymous, no questions asked.
A complete list of locations may be found at www.DEATakeBack.com or by calling
(800) 882-9539. The KSP drop off locations are available on the KSP website at www.kentuckystatepolice.org
Jefferson County Sheriff John Aubrey reminded all citizens that a drop box is located on the 6th floor of the Sheriff’s Office at 531 Court Place. It is available for use Monday thru Friday from 8:00 AM to 4:00 PM.
Many Americans are unsure of how to properly dispose of their unused medications and often flush them down the toilet or throw them away. This poses safety and health hazards. More information on how to properly dispose of unused medicines can be found on the Food & Drug Administration website:
http://www.fda.gov/Drugs/ResourcesForYou/Consumers/BuyingUsingMedicineSafely/EnsuringSafeUseofMedicine/SafeDisposalofMedicines/ucm186187.htm
Five Charged in Shooting Death of A Bowling Green Resident During Robbery of La Placita MarketRead the Press Release
Defendants tied to a string of at least twelve violent robberies occurring at small stores across Kentucky, Tennessee, and North Carolina
BOWLING GREEN, Ky. – United States Attorney Russell M. Coleman today announced the arrest of five co-defendants charged in the shooting death of a Bowling Green resident, while robbing the La Placita market, located in Warren County, Kentucky. The Bowling Green homicide is tied to a string of at least twelve violent robberies occurring at small, privately owned stores across Kentucky, Tennessee, and North Carolina.
All were charged in a Criminal Complaint, unsealed yesterday, October 25, 2017, following the initial appearance of defendants Lillian Duron and Estrellita Soto, before United States Magistrate Judge H. Brent Brennenstuhl in Bowling Green. Defendant Johnny Alexander Relles-Martinez made his initial appearance on Tuesday, October 24, 2017 from the Leavenworth, Kansas, Detention Center. Defendants Jorge Santos Caballero-Melgar and Jose Adan Mejia Varela are currently in the custody of the Commonwealth of Virginia and are scheduled for their initial appearance on the federal charges on November 29, 2017 in Bowling Green.
“This outcome was due to plain old good police work, by Bowling Green’s Finest, in concert with the Federal Bureau of Investigation, and a host of other police agencies in other states” stated U.S. Attorney Russell Coleman. “We are all safer when local and federal law enforcement work together to tackle violent crimes like this dangerous string of multi-state robberies.”
According to the Criminal Complaint, on March 17, 2017, at 2:58 pm, two armed men, Martinez and Varela entered La Placita, locked the door behind them, and demanded money from La Placita’s employees. La Placita is a locally owned Hispanic market, check cashing business, and InterCambio Express wire transfer service, located at 710 Morgantown Road in Bowling Green.
During the robbery, Jose Cruz arrived at the store to pick-up his minor children, who were locked inside. When Varela unlocked the door to walk toward a waiting car, Cruz entered the store, realized that a second gunman, Martinez, was robbing the store and began fighting him. Valera returned to the store and attempted to pistol whip Mr. Cruz. Video footage, 911 audio, and witnesses, including Mr. Cruz’s minor children, who were present during the shooting, confirm the second gunman, Martinez, shot Cruz during the fight. First responders transported Mr. Cruz to a local hospital where he subsequently died.
According to the Affidavit supporting the Criminal Complaint, defendant Melgar served as the lookout during the robbery. Defendant Duron is accused of making a wire transfer at La Placita just over an hour before the robbery. Surveillance video showed Duron and Soto inside and in the parking lot of La Placita just prior to the hold up and shooting. Further, according to the Affidavit, Soto told Melgar where the money was kept, inside the store, and alerted Melgar when customers had left and only two female clerks were left inside. The five defendants are believed to be connected to a string of at least twelve violent robberies between January 13, 2017 and September 2, 2017, across Kentucky Tennessee, and North Carolina.
The charge of interference with commerce by threats or violence, a Hobbs Act charge, carries a maximum penalty of twenty years in prison. The charge of use of a firearm during a crime of violence, causing death, carries a maximum punishment of death or a term of life in prison.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Bowling Green Police Department and the FBI with assistance from the Warren County Commonwealth’s Attorney’s Office; Northampton County, VA Sheriff’s Office; Metro Nashville, TN Police Department; Rocky Mount, NC Police Department; Clayton, NC Police Department; Cary, NC Police Department; Henderson, NC Police Department; Snow Hill, NC Police Department; Chatham County, NC Sheriff’s Department; Department of Homeland Security; and United States Marshals.
la_placita_5_criminal_complaint_10-18-17.pdf***
The charge of a person by a Federal Criminal Complaint is an accusation only and that person is presumed innocent until and unless proven guilty
Paducah Office Manager Guilty of Embezzling over $700,000 from Her EmployerRead the Press Release
PADUCAH, Ky. – The office manager for Utilities Dynamics, Inc. entered a guilty plea today in United States District Court before Senior Judge Thomas B. Russell to charges of wire fraud and identity theft as part of a scheme to defraud the company of over $700,000 announced United States Attorney Russell M. Coleman.
Kristen Renee Roberts, 39, of Calvert City, Kentucky, was charged in a criminal Information with one count of wire fraud and one count of aggravated identity theft as part of a scheme to defraud her employer of at least $700,000 during an eight-year period.
According to the plea agreement, Roberts acknowledged that beginning in June of 2009 and continuing until October of 2016, while office manager for Utilities Dynamics, Inc. (“the Company”), she was responsible for all of the Company’s accounts payable, accounts receivable, employee payroll, QuickBooks functions, and banking requirements. She also had access to the Company’s company credit cards and banking account information.
Roberts admitted to using both her own company credit cards and the company credit card of another employee for unauthorized purchases for the benefit of herself and her family. Roberts would also use company funds to pay off her own personal credit cards and the personal credit cards of her family.
Finally, because Roberts controlled the Company’s payroll, she also was able to overpay herself using direct deposits from the Company’s bank account into her personal bank account. Roberts would conceal these overpayments to herself by creating fake payroll payments to other employees within the Company and then deposit that money into her own account. She would also conceal these overpayments by creating fake invoices within the Company’s QuickBooks accounting software to various vendors used by the Company where the payments to these vendors were actually payments into her personal bank account.
At sentencing, Roberts could receive up to 22 years in prison, fined up to $500,000, and be required to serve up to three years of supervised release.
Roberts remains free on bond, with sentencing scheduled before Senior Judge Russell on January 31, 2017 at 12:15pm in Paducah.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the McCracken County Sheriff’s Office.
Lexington Man Convicted of Charges Including Threatening to Murder A Federal Prosecutor and Solicitation to Murder an Officer of the United StatesRead the Press Release
Jury deliberated 45 minutes before returning guilty verdict
LEXINGTON, Ky. – United States Attorney Russell M. Coleman today announced the guilty verdict, in United States District Court, of a Mexican National, on charges of threatening to murder an Assistant United States Attorney and solicitation to murder an officer of the United States.
“The rule of law requires public servants of character to enforce that law,” stated United States Attorney Russell Coleman. “I am grateful to the men and women of the jury in Lexington, who through today’s verdict reinforced that any serious threat to the safety and security of our prosecutors puts our entire community at risk and will not be permitted in our commonwealth .”
Edgar Villa-Castaneda, 43, remains in federal custody awaiting sentencing on January 26, 2017, at 1:30pm, before United States District Judge Danny C. Reeves. Villa-Castaneda could be sentenced to not more than a combined 30 years’ imprisonment, followed by a three year period of supervised release.
Villa-Castaneda was found guilty, following a two-day trial, of both charges in a two-count indictment returned on February 2, 2017. According to information presented at trial, on about August 5, 2015, and September 22, 2015, in Woodford County, Kentucky, Villa-Castaneda threatened to murder Assistant United States Attorney Rob Duncan, on account of the performance of Duncan’s official duties, and solicited a fellow inmate at the Woodford County Detention Center (WCDC) to murder Assistant United States Attorney Duncan.
Specifically, Villa-Castaneda, was incarcerated at the WCDC in February 2015, pending federal drug charges filed by Assistant United States Attorney (AUSA) Rob Duncan. On September 22, another inmate at the WCDC, contacted his lawyer and reported that Villa-Castaneda, using the nickname
“Flaco” was attempting to hire someone to kill AUSA Duncan. On September 24, 2015, the inmate’s lawyer notified FBI Special Agent John Whitehead that Villa-Castaneda was attempting to hire
someone to kill AUSA Duncan. During an interview with the FBI, the inmate explained that he and Villa-Castaneda became cellmates at the WCDC in September 2015, and that within hours Villa-Castaneda
began talking to him about his hatred for AUSA Duncan. Villa-Castaneda believed that he and his incarcerated son were being unfairly targeted and erroneously being portrayed as major drug dealers by AUSA Duncan. Sometime over the next twenty-four hours, Villa-Castaneda asked the inmate if he knew anyone that could “whack” AUSA Duncan for him. Villa-Castaneda said he would pay $25,000 to have it done. Villa-Castaneda stated he currently had $15,000 hidden in radio speakers at his sister's house and he would pay an additional $10,000 after the job was done.
On November 24, 2015, Villa-Castaneda was questioned by FBI special agents at the Grayson County Detention Center. Villa-Castaneda was read his Miranda rights, and signed a form stating he understood his rights and understood he was waiving those rights before admitting to making the threats and soliciting an inmate to assist in the murder of AUSA Duncan.
Mister Duncan received an appointment by President Donald Trump to serve as United States Attorney for the Eastern District of Kentucky. That appointment awaits confirmation by the United States Senate.
Due to recusal by the United States Attorney’s Office for the Eastern District of Kentucky, this case was prosecuted by Assistant United States Attorney for the Western District of Kentucky, A. Spencer McKiness, and was investigated by the Federal Bureau of Investigation (FBI).
Louisville Convicted Felon Guilty of Threatening to Kill A Louisville Metro Intelligence (LM Intel) Joint Task Force Member and Multiple Firearm ViolationsRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the guilty plea of a Louisville convicted felon, in United States District Court, on September 25, 2017, before Senior Judge Thomas B. Russell, to one count of threatening to kill a Louisville Metro Police Officer while engaged in the performance of his official duties, and with firearms violations. These charges result from an investigation by Louisville Metro Intel (LM Intel): an intelligence-led task force which identifies serious, violent offenders and leverages all available resources to investigate, apprehend and prosecute these offenders. The LM Intel Joint Task Force was announced in January of 2017, and includes the United States Attorney’s Office, federal investigative agencies, state prosecutors and Louisville Metro Police.
Roman L. Brown, Jr., 26, was indicted with co-defendant Chicoby Summers on May 10, 2017, and by grand jury indictment on April 10, 2017. Both defendants were charged with counts of being a convicted felon in illegal possession of firearms and defendant Brown was charged with threatening to assault and threatening to kill a member of LM Intel. Brown is in federal custody and is scheduled for sentencing before Senior Judge Russell on January 17, 2018 at 11:30 a.m.
Brown admitted that on April 12, 2017, he threatened to assault and threatened to kill the LM Intel Joint Task Force member, with the intent to impede, interfere, intimidate and retaliate against the LM Intel member while he was engaged in the performance of his duty. Further, on the same day, Brown threatened to assault a member of the immediate family of the LM Intel Joint Task Force member, while he was engaged in the performance of his official duty.
Brown further admitted to being a convicted felon in possession of a Glock Model 36, .45 caliber pistol, and a Zastava, AK-style 7.62 caliber pistol. Brown was convicted in Jefferson County Circuit Court of Trafficking in a Controlled Substance First Degree, on September 18, 2013.
Defendant Summers is charged with being a felon in possession of firearms and ammunition – when at the time of his arrest, on April 12, 2017, he possessed two Taurus 9 millimeter handguns and a Zastava, 7.62 caliber pistol, Model PAP M92PV, and ammunition. Summers was initially charged in a federal complaint Summers was convicted in Jefferson county Circuit Court of Trafficking in a Controlled Substance First Degree and Tampering with Physical Evidence on October 9, 2014. His charges are still pending.
Brown could be sentenced to no more than a combined sentence of 42 years in prison, and both could be required to pay a fine and serve a period of supervised release.
This case is being prosecuted by Assistant United States Attorney Erin G. McKenzie and is being investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Louisville Metro Police Department.V
Atlanta Tax Consultant Sentenced to 27 Months in Prison for Defrauding the Kentucky Department of Revenue and Signature HealthcareRead the Press Release
LOUISVILLE, Ky. – An Atlanta, Georgia tax consultant was sentenced in United States District Court this week, by Chief Judge Joseph H. McKinley, Jr., to 27 months in prison for committing mail fraud and money laundering associated with a scheme to defraud the Kentucky Department of Revenue and his client Signature Healthcare, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
Todd Griffin, 46, was a tax credit consultant for a company located in Atlanta, Georgia. Between April 2013 to June 2014, Griffin fraudulently obtained $499,320 in state tax credits for his client Signature Healthcare (SHC) from the Kentucky Department of Revenue (KDOR). In return for securing the fraudulent tax credits, SHC compensated Griffin with commissions totaling $46,155. Griffin admits that he attempted to conceal his fraud from SHC, to continue to receive their commission and business, by making payments totaling $242,939.92 to KDOR, from his employer’s bank account, using funds derived from the scheme.
Griffin submitted fraudulent documents to SHC to make it appear that the KDOR had approved certifications for eligibility for a tax credit program. Griffin then obtained state tax credits based on the fraudulent documents. The KDOR disallowed the credits and contacted Griffin, who had power of attorney for SHC and paid the disallowed tax credits in order to conceal the fraud from SHC.
According to the terms of his plea agreement, Griffin already paid restitution to SHC in the amount of $46,155 prior to sentencing. The amount constituted the commission Griffin received from SHC to apply for tax credits.
This case was prosecuted by Assistant United States Attorney Josh Judd and was investigated by the Kentucky Department of Revenue, Kentucky Attorney General’s Office, Internal Revenue Service, Postal Inspection Service, and the Federal Bureau of Investigation (FBI).
Louisville Felon Sentenced to 15 Years in Prison for Being an Armed Career Criminal, Possession of Controlled Substances and Possession of A FirearmRead the Press Release
Federal Prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the recent sentencing of a Louisville felon, as an Armed Career Criminal, in United States District Court, by District Judge Greg N. Stivers, to 180 months in prison, for possession of a firearm by a convicted felon and possession of controlled substance.
Tommy M. Slaughter, 26, was convicted by a federal jury in Louisville, on June 28, 2017, of felon in possession of a firearm, and two lesser counts of possession of controlled substances including heroin and cocaine.
According to information presented during the three-day trail, while patrolling Portland in West Louisville, Louisville Metro Police officers witnessed a hand to hand drug transaction. At the time police recovered drugs, more than $100, and a loaded handgun in defendant Slaughter’s pants pocket.
Slaughter has a lengthy arrest record in Jefferson County and the federal prosecution stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies to maximize penalties for the most violent offenders and to reduce violent crime in our community.
Slaughter’s juvenile convictions begin at age 9 and included violent criminal acts. Adult convictions included possession of loaded concealed firearms, possession of controlled substances, assaults in which he attempted to strangle one victim and stomped on the face of a second victim. Further, Slaughter has prior convictions in Jefferson County Circuit Court for Burglary 2d: that being a single count of Burglary 2d on December 24, 2009 and eight counts of Burglary 2d on May 17, 2010.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Louisville Felon Sentenced to 10 Years in Prison for Possession of A Firearm, Ammunition, and MethamphetamineRead the Press Release
Federal Prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the sentencing of a Louisville felon, in United States District Court, by Chief Judge Joseph H. McKinley Jr., to 120 months in prison, for possession of a firearm and ammunition by a convicted felon and possession of methamphetamine. There is no parole in the federal system.
Robert J. Vance, 29, was charged in a superseding indictment on May 2, 2017, and pleaded guilty to all three counts on June 23, 2017. The federal prosecution stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies to maximize penalties for the most violent offenders and to reduce violent crime in our community.
According to information presented in court, Louisville Metro Police (LMPD) officers were patrolling “hot spots” in high crime areas of Portland, located in west Louisville. Near midnight on December 17, 2017, the officers pulled into the intersection of 29th and Alford Streets and observed a gold van at one corner of the intersection with the passenger side door open, and defendant Vance was standing at the driver’s side door. When officers initiated their lights, Vance ran and tripped in an alley. A bag containing over 50 grams of pure meth was found several feet from where Vance landed, along with a liquor bag containing a Glock, Model 21, 45 caliber pistol. The officers located a shoulder holster in the Toyota SUV which contained an extra clip of ammunition for a .45 caliber Glock.
Vance was previously convicted of a Class D Felony on February 11, 2013, in Bullitt County Circuit Court, Shepherdsville, KY, in Case Number 12-CR-0073, of Assault Under Extreme Emotional Disturbance.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Meth, Firearm, U.S. Currency found with Robert VanceStonnie Sullivan Permanently Barred from Buying and Selling LivestockRead the Press Release
Paid $31,200 in civil penalties
Agreed to indefinite prohibition from engaging in business for which registration and bonding is required under the Packers and Stockyards Act
Agreed to pay debt to Tennessee livestock market
WASHINGTON - On Aug. 31, 2017, the United States Attorney’s Office for the Western District of Kentucky, acting on behalf of USDA’s Grain Inspection, Packers and Stockyards Administration (GIPSA), settled a civil contempt case against Stonnie Sullivan, of Glasgow, Ky.
Agreed Order to Pay Civil Penalty
On Apr. 11, 2017, Sullivan agreed to pay $16,200 in civil penalties to the United States for violations of the Packers and Stockyards (P&S) Act and non-compliance with the terms of a Jan. 2012 Consent Decree. He also committed to pay outstanding penalties imposed by the 2012 Consent Decree. The U.S. District Court, Western District of Kentucky (the Court) entered the agreed order to pay civil penalty on Apr. 24, 2017. Sullivan subsequently paid all the penalties, totaling $31,200. He also filed an application for registration and a $75,000 bond. However, he needed a $90,000 bond to fully comply.
Agreed Order of Permanent Injunction
On May 30, 2017, a judge for the Court verbally ordered Defendant Sullivan not to buy livestock without first filing adequate bond. Sullivan continued buying livestock in apparent defiance of the order. The judge scheduled a criminal contempt trial.
On Aug. 18, 2017, in lieu of trial, Defendant Sullivan admitted that he disobeyed the Court’s verbal order. The parties entered an agreed order of permanent injunction with the Court on the same day. It bars Sullivan, and any others acting in concert or participation with him for such purpose, indefinitely, from engaging in business in any capacity requiring registration and bonding under the P&S Act and regulations. Any future violations of the P&S Act or this agreed order by Sullivan and others acting in concert or participation with him, may result in further penalties.
On Aug. 27, 2017, Defendant Sullivan’s $75,000 bond terminated due to claim activity. Sullivan has not filed replacement bond coverage with GIPSA.
Order on Motion for Civil Contempt
On Aug. 31, 2017, the Court declined to penalize Defendant Sullivan for the criminal contempt charge. Due to the agreed permanent injunction, the Court also denied the United States civil contempt motion as moot. However, the United States may refile its motion if Sullivan does not comply with the permanent injunction.
Agreed Order to Pay Debt
The parties entered another agreed order with the Court on Aug. 31, 2017. In it, Defendant Sullivan agreed to compensate a Tennessee market $8,808.37, within one year. This amount represents the deficiency between the market’s expected recovery against Sullivan’s $75,000.00 bond and his total debt of $83,808.37.
Randall Jones, Acting Administrator of GIPSA, said, “This settlement benefits the industry in two ways. It ensures that Defendant Sullivan pays his obligation and it also deters Sullivan and others from violating the P&S Act and putting livestock sellers at risk.”
This case was prosecuted by Assistant US Attorneys Corinne E. Keel and Jessica R. C. Malloy, in consultation with Attorney Elizabeth M. Kruman, USDA’s Office of the General Counsel (OGC). GIPSA’s Eastern Regional Office conducted the investigation, which OGC referred to the U.S. Attorney’s Office for civil enforcement.
The P&S Act is a fair trade practice and payment protection law. It promotes fair and competitive marketing environments for the livestock, meat, and poultry industries.
Russell M. Coleman Sworn in as United States AttorneyRead the Press Release
Western Kentucky native with deep law enforcement background assumes leadership of United States Attorney’s Office
LOUISVILLE, Ky. – Russell M. Coleman has today taken the oath of office to become the United States Attorney for the Western District of Kentucky. Mr. Coleman was nominated by President Donald Trump on July 19, 2017, and confirmed by the United States Senate on September 14, 2017. The oath of office was administered today by United States District Judge David J. Hale.
“I am deeply honored to be appointed by the President to serve alongside the talented professionals of the Western District U.S. Attorney's Office,” stated United States Attorney Russell Coleman. “At a time when our Commonwealth is losing its sons and daughters to drug overdoses at the highest rate in its history and our largest city is enduring an unprecedented increase in its murder rate, I am committed to using every statutory tool in our toolkit to aggressively aid our law enforcement partners in this fight.”
As United States Attorney, Mr. Coleman is the top-ranking federal law enforcement official in the Western District of Kentucky. The Western District of Kentucky encompasses 53 counties with a population of more than 2.2 million, two military installations, and four federal judicial divisions with courthouses in Louisville, Bowling Green, Paducah, and Owensboro.
United States Attorney Russell Coleman will oversee a staff of 82 persons, including 36 attorneys, 39 non-attorney support personnel, and 7 federal contractors. The Office is responsible for prosecuting federal crimes in the District, including crimes related to firearms, narcotics, public corruption, child exploitation, wire and bank fraud, and terrorism. The Office also defends the United States in civil cases and collects debts owed to the United States.
Russell M. Coleman grew up in rural Western Kentucky, having been raised in Daviess and Logan Counties, graduating from Logan County High School. U.S. Attorney Coleman received both his undergraduate and law degrees from the University of Kentucky. He received his Juris Doctor from the UK College of Law in 2004 and was awarded his Bachelor of Arts degree magna cum laude, in 1998.
Mr. Coleman has more than a decade of experience working in federal positions where he was engaged in federal law enforcement matters. He served as Senior Advisor and Legal Counsel to United States Senate Majority Leader Mitch McConnell, working during that period as a liaison with Kentucky law enforcement on such efforts as expanding the federal High Intensity Drug Trafficking Area (HIDTA) Program to include Hardin and Nelson Counties. Prior to his five years in Senator McConnell’s office, USA Coleman served as a Special Agent with the Federal Bureau of Investigation (FBI) and worked as Briefing Coordinator to two U.S. Attorneys General at the U.S. Department of Justice.
While an FBI Special Agent, USA Coleman investigated a diverse portfolio of national security, white collar, and violent crime matters. He served as FBI Indianapolis Division’s Back-Up Chief Division Counsel, was a certified FBI Crisis (Hostage) Negotiator, and served as an on-record Media Spokesperson for the FBI’s Indianapolis Division. He was elected as the only Special Agent representative to the FBI Director’s Employees with Disabilities Advisory Committee. Russell was temporarily assigned to the National Joint Terrorism Task Force and volunteered for a 2007 assignment in support of Operation Iraqi Freedom in Anbar Province, Republic of Iraq.
Most recently USA Coleman was in private practice as a partner at the law firm of Frost Brown Todd, LLC. From 2015 through 2017, he served as a volunteer Assistant Commonwealth’s Attorney for the Hon. Courtney T. Baxter, Commonwealth’s Attorney for the 12th Judicial Circuit (Oldham County). He has been a member of the Kentucky Bar Association since 2004 and currently sits on the Executive Board of the Kentucky Chapter of the Federal Bar Association. Other affiliations include Society of Former Special Agents of the FBI, FBI Agents Association, and the KY Narcotic Officers Association.
Trial Date Scheduled for Defendant Charged with Distribution of Fentanyl That Resulted in the Death of AnotherRead the Press Release
LOUISVILLE, Ky. – The Louisville man recently charged by federal grand jury indictment with distribution of fentanyl that resulted in the death of another, is scheduled for jury trial on November 13, 2017, before Senior Judge Charles R. Simpson III, today announced United States Attorney John E. Kuhn, Jr.
Jihad A. Haqq, 37, remains in federal custody as ordered by Magistrate Judge Colin H. Lindsay on September 13, 2017.
According to the single-count indictment, on March 11, 2017, in Jefferson County, Kentucky, defendant Haqq knowingly and intentionally distributed a mixture and substance containing a detectable amount of fentanyl. Fentanyl is a schedule II controlled substance. The death and serious bodily injury of P.S. was the alleged result of the use of the substance distributed by Haqq.
If convicted of the offense at trial, defendant Haqq could be sentenced to at least 20 years in prison including life, fined $1,000,000 and ordered to serve up to and including a life period of supervised release.
This case is being prosecution by Assistant United States Attorneys Robert B. Bonar and Erin G. McKenzie. This case is being investigated by the United States Drug Enforcement Administration (DEA) and the Louisville Metro Police Department (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
haqq_jihad_indictment.pdfLouisville Man Sentenced to 36 Months for Defrauding the Federal Supplemental Nutrition Assistance Program of $789,657.06Read the Press Release
LOUISVILLE, Ky. – A Louisville man was recently sentenced in United States District Court by Senior Judge Charles R. Simpson III to serve 36 months in prison, for defrauding the federal Supplemental Nutrition Assistance Program (SNAP) of $789,657.06, announced United States Attorney John E. Kuhn, Jr.
Andrew Saas, 40, was charged in a single count criminal information and pleaded guilty to defrauding SNAP, also known as the Food Stamp Program, on April 21, 2017. He was sentenced on August 24, 2017, to serve 36 months in prison followed by a three-year period of supervised release and ordered to pay $789,657.06 restitution to the United States Department of Agriculture (USDA).
According to the plea agreement, SNAP is administered by the USDA to provide food-purchasing assistance to low-income individuals through the issue of electronic benefit transfer (EBT) cards to recipients. Saas defrauded SNAP by providing SNAP EBT cardholders with cash in exchange for SNAP benefits, in violation of SNAP policies and regulations. SNAP benefits may only be redeemed for eligible food items. Saas provided cardholders cash in amounts substantially less than the debited amount on the cardholders’ EBT card. He fraudulently redeemed EBT cards and in doing so caused a loss to SNAP and the USDA.
If convicted at trial, Saas could have been sentenced to no more than five years in prison and fined no more than $10,000.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI) and the USDA.
Louisville Felon Sentenced to 188 Months in Prison for Possession of Multiple Drugs and A FirearmRead the Press Release
Possessed approximately 23 pounds of cocaine, heroin, meth and $170,000
LOUISVILLE, Ky. – A Louisville felon was sentenced this week in United States District Court, by District Judge David J. Hale, to 188 months in prison for possession with the intent to distribute cocaine, heroin and methamphetamine and for possession of a firearm by a convicted felon, announced
United States Attorney John E. Kuhn, Jr.
Ambrocio Jennings, 42, was sentenced on September 12, 2017, after pleading guilty to all counts of a federal criminal complaint. At the time of his arrest Jennings possessed a stolen Glock 21 handgun, approximately $170,030 U.S. Currency, approximately 3 lbs. 4.2 ounces of heroin, approximately 6 pounds of meth, and 23 pounds 5.9 ounces of cocaine.
According to the Affidavit attached to the criminal complaint, on February 8, 2017, a U.S. Postal Inspector identified two packages being shipped from a Los Angeles California address to separate Louisville addresses, including one to defendant A. Jennings at Helck Avenue. The intercepted parcels contained 4 pounds of meth and two pounds of meth. With assistance from Louisville Metro Police and the Jefferson County Sheriff’s Office, controlled deliveries of the two packages were made. Jennings was observed entering and exiting the residence on Helck Avenue. When law enforcement attempted to stop Jennings, he began driving erratically and at high speeds, away from the officers. in the direction of Preston Highway near Gilmore Lane. LMPD Air Patrol followed Jennings and witnessed him throw three bags from his truck near Davies Avenue. Further, LMPD Air Patrol directed police to locate and arrest Jennings, then landed their helicopter in a field adjacent to the Davies Avenue location. The three bags were recovered and contained the U.S. currency, handgun, heroin, meth, and cocaine.
Assistant United States Attorney Scott Davis prosecuted this case. The United States Postal Inspection Service with Louisville Metro Police and the Jefferson County Sherriff’s Department investigated.
Edmonson County, Kentucky, Resident Charged with Sexual Exploitation of ChildrenRead the Press Release
BOWLING GREEN, Ky. – An Edmonson County, Kentucky, resident was charged this week by grand jury indictment with sexual exploitation of children announced United States Attorney John E. Kuhn, Jr.
Baird, 56, of Brownsville, Kentucky, was charged in a five-count Indictment with four counts of using a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct and one count of possessing child pornography that had been transported in interstate commerce by any means, including by computer. According to the Indictment, the activity took place between May of 2009 and May of 2015, in Edmonson County.
If convicted at trial, Baird faces a sentence of no less than 15 years and no more than 30 years for each of counts one through four, and no more than ten years in prison for count five. Further, the penalties include up to a life term of supervised release and a fine of up to $1,250,000.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless, and the investigation is being handled by the Department of Homeland Security and Edmonson County Sheriff’s Office with assistance from the Bowling Green 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."
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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
baird_howard_charged_9-14-17.pdfBardstown, Kentucky, Resident Sentenced to 120 Months in Prison for Violating Federal Drug Trafficking LawsRead the Press Release
LOUISVILLE, KY – A Nelson County, Kentucky, man was sentenced in United States District Court this week by District Judge David J. Hale, to 10 years in prison followed by a five year period of supervised release for violating federal drug trafficking laws, announced United States Attorney John E. Kuhn, Jr. There is no parole in the federal system.
According to court records, Timothy Lee Yonts, 47, of Bardstown, knowingly conspired with other persons between May and September of 2016, to intentionally possess with the intent to distribute methamphetamine.
On September 22, 2016, the Greater Hardin County Narcotics Task Force (GHCNTF) executed a search warrant at Yonts’ residence in Bardstown. The search resulted in the seizure of drug trafficking evidence, including approximately 10 ounces of crystal methamphetamine, one pound of marijuana, cash, and drug paraphernalia. Also recovered at the time, was a home security system with digital footage of numerous drug transactions and drug usage with the last three months of the date of the search.
Assistant United States Attorney Mac Shannon prosecuted this case. The Drug Enforcement Administration (DEA) and GHCNTF investigated.
Union County’s Judge/Executive Charged with Scheming to Defraud the Citizens of Union County of Their Right to Honest ServicesRead the Press Release
Joseph “Jody” Jenkins allegedly used his elected office to take kick-backs for arranging purchases with taxpayer funds
BOWLING GREEN, Ky. – The current Union County Judge/Executive was charged today by grand jury indictment with scheming to defraud the citizens of Union County of their right to honest services announced United States Attorney John E. Kuhn, Jr.
Joseph L. Jenkins a/k/a Jody Jenkins, 44 of Union County, Kentucky, is charged with secretly using his official position to enrich himself by soliciting and accepting gifts, payments, and other things of value from J.H., a person known to the grand jury, in exchange for favorable official action, and for J.H. to enrich himself by secretly obtaining favorable official action for himself and his clients through corrupt means.
According to the indictment, between March and July of 2014, Jenkins, in his official position as Union County Judge/Executive, solicited and accepted cash payments of approximately $20,000 from J.H., and in return, Jenkins provided favorable official action on behalf of J.H., including arranging for the purchase of various items of heavy equipment, at below market value, to be paid for by the Union County Fiscal Court, using taxpayer funds.
Further, Jenkins allegedly took steps to hide, conceal, and cover up his activity and the nature and scope of his dealings with J.H., including directing that false and fraudulent invoices, in amounts under $20,000, be submitted by J.H. for payment by the Union County Fiscal Court for the purchase of the equipment.
If convicted at trial, Jenkins could be sentenced to no less than 20 years in prison for each count, fined $1,000,000 and serve a three-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and is being investigated by the Federal Bureau of Investigation (FBI) with assistance from the Evansville, Indiana, Police Department.
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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
McCracken County, Kentucky Attorney Guilty of Defrauding Clients of Insurance SettlementsRead the Press Release
Kept at least $550,000 in settlement amounts that should have gone to his clients.
PADUCAH, Ky. – A licensed Kentucky attorney pleaded guilty in United States District Court today, before Senior Judge Thomas B. Russell, to various charges including devising a scheme to defraud numerous clients of insurance settlements totaling at least $550,000 announced United States Attorney John E. Kuhn, Jr.
“Clients trust their attorneys to act as fiduciaries, to put the clients’ interests first and to conduct themselves honestly and honorably,” stated U.S. Attorney John Kuhn. “In this case, Mr. King violated that trust and dishonored his profession by stealing from his clients. We will pursue justice for his defrauded clients, seek restitution on their behalf, and seek a sentence for Mr. King commensurate with his crime.”
From at least March of 2007 through May of 2017, James Grant King, 43, of McCracken County, Kentucky, was an attorney licensed by the Kentucky Bar Association and licensed to practice law in the Commonwealth of Kentucky. In court today, King admitted that during that time period, he committed aggravated identity theft and wire fraud.
King practiced as a plaintiff’s attorney for numerous clients within the Western District of Kentucky and elsewhere. These clients came to the defendant seeking his services in order to recover monetary damages and other remedies. After learning about his clients’ cases, King would seek to settle their cases with insurance companies. However, after reaching a settlement with the insurance companies, and unbeknownst to his clients, King would then keep most or all of the settlement amounts for himself.
Specifically, depending on the case, King would either keep the entire settlement amount for himself or tell clients that he was still awaiting resolution and settlement of the case with the insurance company, knowing that the insurance company had already settled the case and sent him the full settlement amount. King’s clients would believe him because they trusted him. The settlements that King received from the insurance companies often came in the form of a check. In order to cash or deposit the check, King would forge the signatures of his clients so that they would not know about the check. King would forge these signatures without any lawful authority
King is also charged with obtaining a $97,500 personal loan from a McCracken County individual. As collateral for the loan, King transferred the title of a Phoenix Model 920 Pro XP boat. However, a few months later, King applied for a duplicate title to the boat, and then, unbeknownst to the individual who loaned him the money, King sold the boat, without repaying the $97,500 loan.
If convicted at trial, King could face a sentence of 42 years in prison, pay a fine of $750,000 and be required to serve a three years period of supervised release.
This case is being prosecuted by Assistant United States Nute A. Bonner and is being investigated by the Federal Bureau of Investigation (FBI) and the McCracken County Kentucky Sheriff’s Department.
king_grant_plea_8-19-17.pdfLouisville Man Sentenced to 51 Months in Prison for Being A Convicted Felon in Possession of A FirearmRead the Press Release
Federal prosecution resulted following the use of a firearm during a road rage incident on I-265 in Louisville
LOUISVILLE, Ky. – A convicted felon was sentenced in United States District Court today, by Senior Judge Thomas B. Russell, to 51 months in prison followed by three years of supervised release, for unlawful possession of a firearm by a felon, announced United States Attorney John E. Kuhn, Jr.
“One can only imagine how terrified the victim of this crime must have felt not only for herself, but for the safety of her two children,” stated U.S. Attorney John Kuhn. “In this case, no one was injured, but this community well knows how dangerous and deadly the outcome could have been. For the safety of our communities, we will continue to enforce the laws that keep felons from possessing firearms.”
Timothy Wayne Corbin, 45, from Louisville, previously admitted, in United States District Court, that on September 9, 2016, on I-265 in Louisville, Kentucky, that he pointed and fired a gun at a vehicle driven by Jacqueline Morris and occupied by her and her two children. The projectile penetrated the engine compartment and radiator of the vehicle, but Ms. Morris was able to safely exit the interstate and call 911. Mr. Corbin then hid the gun inside the home of his girlfriend and texted her, asking her to provide an alibi for his whereabouts that evening. The gun, a Smith and Wesson, 40 caliber semiautomatic pistol and ammunition with magazine, was determined to have traveled in interstate commerce by an interstate nexus expert with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
In 2010 Corbin was convicted in Jefferson Circuit Court Case No. 07-CR-2677 of Manufacturing Methamphetamine, a felony offense punishable by more than one year.
This case was prosecuted by Assistant United States Attorney Erin McKenzie and was investigated by ATF.
Former High School Principal Guilty of 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 pleaded guilty today in United States District Court, before U.S. District Judge David J. Hale, to transporting child pornography and possessing child pornography that had been transported in interstate commerce announced United States Attorney John E. Kuhn, Jr.
Stephen Kyle Goodlett, 37, of Elizabethtown, Kentucky, remains in federal custody and is scheduled for sentencing in Louisville, before Judge Hale, on October 20, 2017 at 10:00am. Goodlett 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.
According to the plea agreement, 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 revealed Goodlett possessed 436 images and 11 videos of child pornography as defined by 18 USC Section 2256(8).
If convicted, Goodlett faces no less than five years in prison and no more than 40 years. Further, Goodlett could be fined up to $500,000 and serve a period of supervised release of at least five years and up to and including a lifetime period of supervised release.
This case is being 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."
goodlett_plea_agmt_8-15-17_1.pdfFormer Kentucky State Police Detective Charged with Making False Statements, While Under Oath, During A United States District Court HearingRead the Press Release
Allegedly made false declarations about the destruction of evidence
Eastern District of Kentucky recused from prosecution
LEXINGTON, Ky. – John E. Kuhn, Jr., United States Attorney for the Western District of Kentucky, announced the grand jury indictment of a former Kentucky State Police Detective for making false statements, while under oath, during a United States District Court hearing in Lexington. The statements were made while testifying about the destruction of evidence tied to the prosecution of defendants charged by the United States Attorney for the Eastern District of Kentucky. For that reason, the Eastern District was granted a recusal in this prosecution.
According to the May 18, 2017, grand jury indictment, that was unsealed yesterday before Magistrate Judge Edward B. Atkins, in Lexington, Charles J. Senters, 41, of Manchester, located in Clay County, Kentucky, committed perjury when he made three false statements while testifying during a hearing on a motion to dismiss charges. The hearing was held on July 24, 2014, in U.S. District Court in Lexington.
Senters, while a detective with Kentucky State Police (KSP), participated in the investigation of the murder of Eli Marcum, whose body was found in Clay County, Kentucky, on December 8, 2012. In his official capacity, Senters had custody of physical evidence collected at or near the homicide scene including a yellow telephone cord and a small silver knife.
As lead detective, Senters submitted numerous items of evidence to the Kentucky State Police Lab for DNA testing. On October 1, 2013, Senters destroyed the telephone cord and silver knife without first submitting the items for DNA testing by the KSP Lab. Senters later stated that he had prior permission to destroy the items, from the Clay County Coroner and KSP DNA analyst, and that the two items were of no evidentiary value and should be destroyed.
Defense counsel for the defendants charged in case number 12-CR-59-SS-ART (conspiracy to kill a federal informant; Eli Marcum), alleged that the government had violated the Constitutional Rights of their clients when it (Senters) destroyed evidence that could have proven someone else committed the murder of Marcum.
Senters testified that he had permission to destroy the evidence from the Clay County Coroner, the KSP DNA analyst, and that a supervisor witnessed him throwing the evidence away – when, in fact, these were materially false statements, according to the indictment, and were made while under oath.
If convicted at trial, Senters could be sentenced to no more than 15 years in prison, serve a three year period of supervised release and pay a $750,000 fine. After making a first appearance yesterday afternoon, Senters was released on bond. His trial is scheduled before U .S. District Judge Karen Caldwell on October 16, 2017, in Lexington.
This case is being prosecuted by Assistant United States Attorneys Randy Ream and Marisa J. Ford, and the investigation is being conducted by the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
senters_indictment.pdf