Western District of Kentucky
Press releases recorded for this federal judicial district.
Miami Resident Sentenced to 57 Months in Prison for Participating in A Conspiracy to Burglarize A Kentucky Cigarette WarehouseRead the Press Release
Ordered to pay $1,486,164.45 in restitution for theft of cigarettes from Leitchfield, Kentucky warehouse
OWENSBORO, KY – A Miami resident was sentenced this week in United States District Court by Chief Judge Joseph H. McKinley4 Jr., to 57 months in prison and ordered to pay restitution of $1,486,164.45 - for conspiracy and theft charges stemming from the defendant’s participation in a warehouse burglary in Leitchfield, Kentucky, announced United States Attorney John E. Kuhn, Jr.
Ivan Romero, a/k/a El Negro, 42, pleaded guilty to a two count federal indictment, in January of this year. Romero admitted that he and others stole more than a million dollars in cigarettes from the Coremark Cigarette Warehouse in Leitchfield, Kentucky, in March of 2011, and that he and others received the stolen cigarettes (which constitute an interstate and foreign shipment of property valued at over $1,000) with the intent to convert the property to their own use.
During the theft, Romero and his co-conspirators gained entry into the warehouse through the roof, disabled the alarm system and loaded the stolen goods into a stolen tractor trailer. Specifically, between March 18, 2011, to March 20, 2011, defendant Camilo Rodriguez-Hernandez allegedly rented three hotel rooms in Elizabethtown, Kentucky, where the co-conspirators, who traveled to Kentucky from Miami, Florida, resided during the burglary and theft. Between March 19, 2011, and March 20, 2011, Amuary Villa, Ivan Romero, Amed Villa, and other co-conspirators allegedly unloaded a stolen tractor trailer and loaded it with cigarettes. Defendant Romero admitted to providing transportation for the stolen cigarettes and driving them to the New Jersey/New York area.
Romero, a legal permanent resident from Cuba who last resided in Miami, has been serving a state sentence from Florida, before being transferred to federal custody. Romero’s federal sentence is 11 months concurrent with a six year sentence for similar crimes in Florida. Further, Romero received 46 months to run consecutive to the six years he is serving in the state of Florida. Restitution will be paid to Coremark and the insurance company for Coremark. Co-defendants Amaury Villa and Camillo Rodriguez Hernandez have trials pending.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and the investigation of the Kentucky theft is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the U.S. Drug Enforcement Administration (DEA), Leitchfield and Elizabethtown Police Departments, and New Jersey and Kentucky State Police Departments.
Kosmos Cement Company d/b/a Cemex Voluntarily Pleads Guilty to Violating the Mine Safety and Health Act at Its Kosmosdale FacilityRead the Press Release
Company agrees to pay $400,000 fine and repair and/or upgrade elevators and escalators to meet safety standards
LOUISVILLE, Ky. – Kosmos Cement Company d/b/a Cemex voluntarily pleaded guilty today in United States District Court, and was sentenced by Magistrate Judge Colin H. Lindsay, to pay an agreed upon $400,000 fine, with $200,000 payable immediately, for its willful failure to comply with a mandatory health or safety standard, which is a violation of The Mine Safety and Health Act, announced United States Attorney John E. Kuhn, Jr.
“This is one of the worst cases of negligence on the part of a company,” stated United States Attorney John Kuhn. “Improper maintenance resulted in an employee’s death. This agreement will ensure the proper maintenance of the cement facility and safety for the employees through mandatory on-sight inspections and a written Maintenance Control Program,” concluded U.S. Attorney Kuhn.
According to the plea agreement, Kosmos Cement Company, d/b/a Cemex agreed to pay a fine of $400,000 with $200,000 due immediately and the balance due at the end of three years’ time if the company does not complete agreed upon repairs. The defendant agrees that all elevators will be constructed and/or upgraded to meet safety code; that doors of all automatic elevators shall be equipped with interlocking switches to prevent a door from opening when the elevator is not at a landing; that a written Maintenance Control Program shall be in place to achieve safe and reliable operation of the elevators; and that on-site inspection of elevators by the Kentucky Department of Housing And Construction be permitted in accordance with applicable state law. If the company makes the agreed upon repairs, and otherwise follows the term of the plea agreement, payment of the remaining $200,000 portion of the agreed upon settlement will be dispensed with.
The United States agreed to forego prosecution of agents and employees of the defendant for the facts which form the basis of this prosecution as described in the Information and the factual basis in the Plea Agreement.
In court today, agents of the company admitted that between March 6, 2012, and February 21, 2014, Kosmos Cement Company, d/b/a Cemex, Inc., through its agents and employees, was aware of defects in the Old Finish Mill Elevator, at its Kosmosdale, Kentucky facility; namely that the elevator was defective and in need of repair at the time of the death of F.M. and that the company which serviced the elevators at the plant had made repeated offers to renovate the elevator prior to the death. These repairs had not occurred. This was in violation of federal regulations of The Mine and Safety Act requiring that “Defects on any equipment, machinery (or) tools that affect safety shall be corrected in a timely manner to prevent the creation of hazards to others.”
This plea agreement arises from a single charge in an Information taken on March 25, 2016. According to the Information, on or about February 21, 2014, F. M., a contract employee at the Kosmosdale cement production facility, operated by Kosmos Cement Company, d/b/a Cemex, fell to his death in the Old Finish Mill, owing to a defect on the elevator at that facility, which permitted the outer door of said elevator to be opened without the elevator itself actually being present.
Cemex is a Mexican Corporation with U.S. headquarters in Houston, Texas. Cemex operates cement plants throughout the United States, Mexico and Puerto Rico, including, as part of a partnership, Kosmos Cement Company, located at 15301 Dixie Highway in Louisville. Throughout the period of time of the negligence and up to and including the date of the contract employee’s death, the plant was operated under the name CEMEX.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Department of Labor, Mine Safety & Health Administration (MSHA).
Cave City, Kentucky, Physician Charged with Illegally Dispensing Controlled Substances Outside of His Professional Medical Practice, Health Care Fraud and Identity TheftRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. this week, charged Christopher Steward, M.D., of Cave City, Kentucky, by grand jury indictment, with criminal counts of knowingly and intentionally distributing and dispensing controlled substances outside the course of professional medical practice, health care fraud, and identity theft, while he was a practicing physician in the Western District of Kentucky.
The eight-count indictment charging Steward alleges the criminal activity occurred between June of 2013, and July of 2015, in Barren County, Kentucky. Steward is charged with one-count of acquiring possession of controlled substances by misrepresentation, fraud, deception and subterfuge; three-counts of distributing and dispensing controlled substances outside the course of professional medical practice; two-counts of conspiracy to acquire possession of controlled substances by misrepresentation, fraud, deception and subterfuge; one-count of health care fraud; and one-count of illegally possessing and using a means of identification of another person (identity theft).
Steward was arrested yesterday, April 13, 2016, made an initial appearance before Magistrate Judge H. Brent Brennenstuhl, in Bowling Green, and released on a $25,000 unsecured bond.
In the event of a conviction, the maximum potential penalties Ford faces are no more than 67 years’ imprisonment, $3,500,000 in fines, and supervised release for a period of three years.
The case is being prosecuted by Assistant United States Attorney David Weiser, and it results from an investigation conducted by the Federal Bureau of Investigation (FBI) and Kentucky State Police.
Premiertox Pays United States and Tennessee $2.5 Million to Resolve False Claims Act LawsuitRead the Press Release
Settlement covers alleged conduct in Kentucky
LOUISVILLE, Ky. - PremierTox 2.0, Inc. has paid $2.5 million to resolve alleged violations of the False Claims Act, announced John E. Kuhn, Jr., United States Attorney for the Western District of Kentucky. PremierTox is a company that provides drug urine screening services to citizens of Kentucky and Tennessee. The government alleged that PremierTox submitted false claims when billing Medicare, TennCare and Kentucky Medicaid for drug urine screening services. PremierTox previously did business in Tennessee under the name Nexus.
“Losses caused by health care fraud amount to tens of billions of dollars every year,” said U.S. Attorney John Kuhn, of the Western District of Kentucky. “Often those losses are passed along to consumers in the form of increased costs. For that reason, my office will work with federal, state, and local law enforcement to uncover these activities and recover every dollar.”
The settlement resolves the government’s allegations that PremierTox and Nexus submitted three types of false claims during the period of September 2011 through June 2014. During that period, PremierTox was under different, former ownership and management. The government alleged that PremierTox had a swapping arrangement, in which Nexus gave below cost discounts on its urine drug screen tests to patients in Tennessee without insurance, in exchange for physicians’ referring their patients with Medicare or TennCare coverage to Nexus. The government also contended that, in Tennessee, Nexus submitted excessive claims to Medicare and TennCare for laboratory testing that was beyond what was medically reasonable and necessary. In addition, the government claimed that, in Kentucky, PremierTox provided point of care testing cups to medical offices free of charge to induce those providers to use PremierTox’s services.
Under the settlement agreement, PremierTox paid a total of $2,500,000. Of that amount, $2,125,000 covers the conduct in Tennessee, and $325,000 covers the conduct in Kentucky. The United States will receive $1,757,300 under the settlement, and Tennessee will receive $325,200.
"Medically unnecessary lab tests and financial incentives from labs to doctors in exchange for referrals are costing the taxpayers millions of dollars," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "This settlement is one of many that are sending a strong message to the lab industry that they need to clean up their act."
The allegations resolved by today’s settlement were originally raised in two lawsuits filed against PremierTox in Tennessee and Kentucky under the qui tam, or whistleblower provision of the False Claims Act. This provision allows private citizens to bring civil suits on behalf of the government and to share in any recovery.
The lawsuit in Tennessee was filed by a former office manager of a pain clinic in Cookeville. The relator in this case will receive $361,250. The relator who brought the lawsuit in Kentucky is the former CEO of PremierTox and will receive and $56,250.
The Tennessee lawsuit remains pending against several other defendants whom the United States and Tennessee allege violated the False Claims Act and the Tennessee Medicaid False Claims Act.
This case was investigated by the U.S. Department of Health & Human Services Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. The United States is represented in these cases by Assistant U.S. Attorneys Ellen Bowden McIntyre for the Middle District of Tennessee and Ben Schecter of the Western District of Kentucky. The State of Tennessee is represented by Assistant Attorney General Phillip Bangle.
The two cases are docketed as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.) and United States ex rel. Duncan v. Nexus Lab, Inc., No. 1:14-cv-89-R (W.D. Ky.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Oldham County Man Guilty of Aiding and Abetting the Sex Trafficking of A ChildRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the guilty plea of an Oldham County, Kentucky, man before Senior District Judge Charles R. Simpson III, in United States District Court, to a charge of aiding and abetting the sex trafficking of a minor
“Howard Chambers subjected this young girl to repeated sexual abuse,” stated U.S. Attorney John Kuhn. “Acting with unfathomable selfishness, he chose to traumatize a child in favor of his own self-gratification. The goal of my office is to obtain a sentence of incarceration that insures Chambers will never touch another child. I do want to thank the law enforcement officers and our prosecutor who worked tirelessly together in the investigation of these crimes. I want the public to know we are doing everything in our power to protect the most vulnerable members of our community.”
Howard Key Chambers, 65, admitted today in court, that he and Christopher Kosicki helped each other to carry out the sex trafficking of a child. Chambers admitted to travelling to co-defendant, Christopher Kosicki’s home in Louisville, to engage in sexual activity with a 10-year-old turned 11-year-old child, between six and eight times, from 2013 until August 2014. The two helped each other entice, harbor, provide, obtain, and maintain a person that had not attained the age of 14 years who was caused to engage in commercial sex acts. Commercial sex acts include any sex act, on account of which anything of value is given to or received by any person. On several occasions, Chambers gave Kosicki money after engaging in sexual activity with the child (age 10 and then 11). On at least one occasion, Chambers admitted to giving money directly to the child after engaging in sexual activity with her. Additionally, on one occasion, Kosicki photographed Chambers engaging in sexual activity with the child.
In 2013, Chambers met co-defendant Kosicki via Craigslist.com. The two communicated online and, eventually, Chambers travelled from Oldham County to Louisville to meet Kosicki at Kosicki’s residence. The criminal activity took place at Kosicki’s Louisville home.
Kosicki was sentenced to serve 50 years in prison, followed by a life term of Supervised Release, by Chief District Judge Joseph H. McKinley Jr., on February 1, 2016. Kosicki pleaded guilty to multiple child sexual exploitation charges, including sex trafficking of a child and the production of child pornography involving 10 children, on July 23, 2015, in U.S. District Court in Owensboro, Kentucky. Kosicki, 27, pleaded guilty in total to 15 charges, in a Superseding Indictment, including sex trafficking a child under age 14, and aiding and abetting another person to cross a state line with intent to engage in sexual acts with a person who had not attained the age of 12 years.
Law enforcement officials first became aware of Kosicki’s criminal conduct after arresting Raymond Shadburn in Seymour, Indiana, on September 24, 2014, on child exploitation charges. During a post-arrest interview, Shadburn provided information that led law enforcement to Kosicki’s residence in Louisville. Shadburn is being prosecuted in the Southern District of Indiana.
Sentencing will be held before Chief Judge McKinley, on July 5, 2016, in Louisville, Kentucky.
Assistant United States Attorneys Jo E. Lawless and Spencer McKiness prosecuted the case. The Indianapolis Police Department, District of Columbia Metro Police, Louisville Metro Police, and the Federal Bureau of Investigation (FBI) conducted the investigation.
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."
United States Attorney and IRS, Special Agent in Charge, Urge Taxpayers to Beware of Fraudulent Tax Return Preparers and Tax Scheme PromotersRead the Press Release
Remind Taxpayers To Pay Federal Income Taxes On Time And In Full
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., joined by Tracey D. Montaño, Special Agent in Charge, IRS Criminal Investigation, urged the public today, to avoid dishonest tax-return preparers and their fraudulent schemes, and urged taxpayers to pay federal income taxes on time and in full, during a press conference today, at the U.S. Attorney’s Office in Louisville.
“Recently, my Office has successfully prosecuted a number of tax preparers who unlawfully falsified returns,” stated U.S. Attorney Kuhn. “As the filing deadline approaches, it is imperative the public guard against the many dishonest and fraudulent schemes of some return preparers as well as ensure their own returns are accurate and honest.”
“The U.S. Tax system is based on a principle of voluntary compliance and is the cost we pay for government services we use on a daily basis. It is important for the honest taxpayer to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” stated Tracey D. Montaño, Special Agent in Charge. “IRS-Criminal Investigation will continue to partner with the U.S. Attorney’s Office to ensure that those committing schemes to defraud the government and the taxpaying public are caught and prosecuted for their crimes. Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't."
During the press conference, U.S. Attorney Kuhn noted several recent successful prosecutions by his Office, with investigative assistance by the IRS Criminal Investigation division, for return preparer fraud and individual income tax fraud.
Last month, Tiffany Elliott pleaded guilty to preparing fraudulent tax returns through her business, Tax Time, Inc., by creating false deductions including investment expenses, business losses, charitable deductions, and work expenses. The loss to the United States Treasury was $255,938, exclusive of penalties and interest. Tara L. Mitchell and Mechelle Blankenship, of Logan County, Kentucky, were charged with falsely claiming education credits for taxpayers who were not entitled to them. And in a Civil Complaint by the Department of Justice Tax Division against NJ Mobile Tax Service, owner and preparer Napoleon Jackson was permanently barred from tax preparation. Jackson allegedly promised customers he could increase their chances of a higher tax return. Jackson allegedly falsified charitable donations, education credits, claims of dependents, and deductions for homes not owned by taxpayers. Preparers who charge clients a percentage of their tax refund intentionally prepare false returns to increase their clients’ refund, and thus their own fees.
As in past years, the IRS has designated return preparer fraud as one of 2016’s “Dirty Dozen” tax scams to avoid during return filing season. U.S. Attorney Kuhn and S.A.C Montaño urged taxpayers to remain diligent to ensure their returns are accurate even if they are prepared by a professional, noting that taxpayers are ultimately responsible for the content of their own returns.
Further, across the nation and in the Western District of Kentucky, individuals are prosecuted for stealing social security numbers, then filing completely fictitious returns to obtain fraudulent refunds. Recently Erica Spencer, of Louisville, was sentenced to 48 months in prison, and ordered to pay $94,000 in restitution for using identities to file fraudulent federal income tax returns and receive fraudulent federal income tax refunds in their names. Also, prosecuted in the Western District of Kentucky, Fernando Herrera, who was sentenced to 48 months in prison for a scheme that included obtaining identification documents from Mexican nationals, applying for false taxpayer identification numbers, filing fictitious returns, and obtaining fraudulent refunds totaling more than $730,000.
The IRS website has information about how to guard against identity theft: Identity Protection: Prevention, Detection and Victim Assistance information on reporting tax fraud How Do You Report Suspected Tax Fraud Activity?, and how to Report Phishing and Online Scams.
U.S. Attorney Kuhn further reminded tax payers of their obligation to file accurate federal income taxes on time and to pay in full. “Unfortunately, we all too often see taxpayers themselves filing false returns. We sometimes have cases where taxpayers fail to report income, or falsely pad deductions with false entries such as business expenses, charitable contributions, educational expenses, or dependent care credits. This is against the law, and we prosecute these cases,” concluded U.S. Attorney Kuhn. Last month, a Madisonville, Kentucky business owner was sentenced to 30 months in prison and ordered to pay $649,506.15 in restitution for filing false tax returns. Gholam A. Sattar-Shamsabadi failed to report the proceeds of his admitted insurance fraud as taxable income during a six year period.
IRS, SAC Montaño emphasized the investigative work done by the IRS Criminal Investigation office, alongside the U.S. Attorney’s Office, to find dishonest preparers and shut them down. Further, Montaño warned the public of phone scams and so called phishing scams. The IRS has seen a surge of phone scams in recent years as scam artists threaten taxpayers with police arrest, deportation and license revocation, among other things. Also, taxpayers need to be on guard against fake emails or websites looking to steal personal information. According to Montaño, the IRS will never send taxpayers an email about a bill or refund out of the blue. Montaño warned the public to not click on one claiming to be from the IRS and to be wary of strange emails and websites that may be nothing more than scams to steal personal information.
During this last week before the tax filing deadline, those in need of assistance may contact the IRS Customer Service Phone Numbers - Individuals: 800-829-1040 or Businesses:800-829-4933
U.S. taxpayers filed approximately 150 million returns in 2014. According to statistics available from the Treasury Inspector General for Tax Administration, the Internal Revenue Service (IRS) identified more than 2.1 million of those returns that claimed fraudulent refunds totaling more than $15.7 billion.
Jefferson County, Kentucky, Tax Return Preparer Charged with Aiding in the Preparation of False Tax ReturnsRead the Press Release
Falsified taxpayer deductions
Owes Internal Revenue Service $255,938
LOUISVILLE, Ky. – A Jefferson County, Kentucky tax preparer pleaded guilty in United States District Court, on March 28, 2016, before Magistrate Judge Colin H. Lindsay, to aiding in the preparation of false tax returns, announced United States Attorney John E. Kuhn, Jr.
Defendant Tiffany Elliott admitted to preparing fraudulent tax returns through her business, Tax Time, Inc., between January 5, 2010, and February 15, 2013, by creating false deductions for certain items, including losses from a sole proprietorship, or by creating false earned income from a sole proprietorship, while knowing that the taxpayers were not entitled to claim the specified deductions or earned income from a sole proprietorship.
As a term of the plea, Elliott signed and executed Internal Revenue Service (IRS) Form 870 to acknowledge she owes $255,938 to the IRS, exclusive of penalties and interest. Further, the charges carry a combined maximum prison term of 48 years, a combined fine of $1,600,000 and a one year term of supervised release.
Sentencing before Chief Judge Joseph H. McKinley Jr. is scheduled for July 5, 2016, in Louisville at 11:00am.
Assistant United States Attorney Amanda E. Gregory is prosecuting the case. The Internal Revenue Service (IRS) Criminal Investigation office is conducting the investigation.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Former President of Louisville Debt Relief Business Charged with Tax CrimesRead the Press Release
Kimberley L. Gordon charged with failing to pay $173,264 in taxes
LOUISVILLE, Ky. – The former president of a Louisville debt relief business was recently charged with willful failure to account for and pay employment taxes collected over a two year period, announced United States Attorney John E. Kuhn, Jr.
The indictment alleges that Kimberley L. Gordon, 53, of Louisville, while president of Debt Restructuring of America deducted and collected $173,264 in federal income and Federal Insurance Contributions Act (FICA) taxes from the wages of employees from January 1, 2010, through December 31, 2011, but did not pay over that money to the Internal Revenue Service (IRS).
The charges against Gordon carry a maximum penalty of 40 years in prison and $80,000 in fines. Gordon was indicted by federal grand jury on April 5, 2016, and is scheduled for arraignment before Magistrate Judge Dave Whalin on April 28, 2016, in Louisville.
This tax case is being prosecuted by Assistant United States Attorney Jason Snyder, and is being investigated by the Internal Revenue Service – Criminal Investigation Division.
The charge of a person by Federal Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
Cumberland County Brothers Guilty of Tax EvasionRead the Press Release
Concealed income from the sale of stolen copper wire
BOWLING GREEN, Ky. – Two brothers from Cumberland County, Kentucky, pled guilty in United States District Court yesterday, before U.S. District Judge Greg N. Stivers, to separate, and multiple charges of tax evasion and failure to file tax returns, relating to the concealment of income from the sale of stolen copper wire, announced United States Attorney John E. Kuhn, Jr.
Christopher Chad Pruitt, 39, and Jimmy Lee Pruitt, 47, admitted in court yesterday to evading federal income taxes on the illegally obtained income. The brothers’ scheme involved stealing copper wire from Belden, Inc., located in Wayne County, Kentucky, and then selling the stolen copper wire to Bowling Green Recycling (BGR), located in Warren County, Kentucky. Jimmy Pruitt, a manager at Belden, would arrange for the theft of the copper wire through the use of false invoices. BGR would pay the brothers with checks. The brothers would then convert the BGR checks into cashier’s checks made payable to themselves and deposit the cashier checks into their personal bank accounts or tender the cashier’s checks for cash.
The Pruitts admitted to concealing the illegal income from the Internal Revenue Service. Jimmy Pruitt filed a joint income tax return for himself and his spouse each year from 2009 through 2013, but never reported any of the income received from the stolen copper wire. According to the plea agreement, Jimmy Pruitt acknowledged owing $198,547 to the IRS, exclusive of penalties and interest, prior to sentencing. Further, Jimmy Pruitt admitted owing an additional tax due for the tax years of 2007 and 2008 of $28,595 bringing his total tax liability to $227,142.
In a separate plea agreement, Christopher Pruitt admitted to participating in the scheme with his brother Jimmy Pruitt to steal copper wire from Belden, Inc. and sell the stolen copper wire to BGR. Christopher Pruitt did not file an individual income tax return in 2009 or 2010; he filed an individual income tax return each year from 2011 through 2013, but never reported any of the income received from the stolen copper wire. According to the plea agreement, Christopher Pruitt acknowledges owing $94,030 to the IRS, exclusive of penalties and interest, prior to sentencing. Further, Christopher Pruitt admitted owing an additional tax due for the tax years of 2007 and 2008 of $6,647 bringing his total tax liability to $100,677.
Jimmy Pruitt faces up to 25 years in prison, a combined maximum fine of $500,000, and a one-year term of supervised release.
Christopher Pruitt faces up to 17 years in prison, a combined maximum fine of $350,000, and a one-year term of supervised release.
Sentencing is scheduled for July 7, in Bowling Green, before Judge Stivers.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the IRS Criminal Investigation.
Former Employee of the Scottsville Baptist Church Sentenced to 18 Months in Prison for Embezzling Church FundsRead the Press Release
Ordered to pay $274, 846 in restitution
Paid personal expenses with the funds
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. today announced the sentencing of an Allen County, Kentucky, woman to18 months in prison for committing three counts of wire fraud, and was ordered to pay $274,846 restitution to her former employer, the Scottsville (Kentucky) Baptist Church.
“The 18 month prison term imposed by Judge Stivers, reflects the seriousness of these offenses and the callous nature of the crime,” stated U.S. Attorney John Kuhn. “While the less fortunate turn to the church for life’s necessities, Patricia Barlow stole from the church to satisfy her greed.”
Barlow, age 49, was a secretary at the Scottsville Baptist Church (SBC), located at 301 East Main Street, in Scottsville, Kentucky, and on numerous occasions made unauthorized wire transfers to pay for personal expenses using SBC funds. The scheme to defraud SBC began in January of 2011, and lasted until SBC discovered the fraud in the spring of 2015. Three of the alleged wire transfers were made on January 1, 2007, in the amount of $512.29; January 14, 2011, in the amount of $1,400; and a wire transfer of $425.00 on January 28, 2015.
Barlow’s criminal conduct was not a one-time lapse in judgment. Barlow’s six-figure scheme involved scores of fraudulent checks, bogus credit card charges, thefts of cash donations, and false accounting entries submitted time and again over the course of four years. Moreover, Barlow did not steal from the church to pay for a family emergency, or because of an addiction to drugs or gambling. Rather, Barlow stole over $274,000 from the SBC for luxuries she and her family otherwise could not legitimately afford, such as vacations, jewelry, clothes, and trips to beauty salons.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the United States Secret Service and Scottsville (Kentucky) Police Department.
Louisville Man Detained Pending Charges of Advertising, Receipt and Transportation of Child PornographyRead the Press Release
Defendant is a former high school teacher who was employed by Kentucky Country Day of Louisville
LOUISVILLE, Ky. – A Louisville man formerly employed by Kentucky Country Day of Louisville as a high school physical education teacher and assistant coach with the school’s athletics department was detained today pending trial for violating child exploitation laws, announced United States Attorney John E. Kuhn, Jr.
Matthew Graves, age 38, is charged in an indictment with Advertising, Transportation, and Receipt of child pornography. These charges stem from his use of the social media messaging application KIK.
Matthew Graves was arrested by federal authorities on March 21, 2016, and arraigned on March 24, 2016. Defendant is currently in the custody of the U.S. Marshals Service. A Detention hearing was held today before Magistrate Judge Lindsay. No trial date has been set.
If convicted at trial, defendant faces a mandatory prison term of fifteen years and a maximum of 100 years. He also faces a period of supervised release of between 5 years and life.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the FBI and LMPD.
***
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."
***
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
Jefferson County, Kentucky, Man Sentenced to 92 Months for an Attempted Murder-For-Hire SchemeRead the Press Release
LOUISVILLE, Ky. – A Jefferson County, Kentucky, man was sentenced today in United States District Court, by Senior Judge Charles R. Simpson III, to 92 months in prison followed by a three year period of supervised release, for an attempted murder-for-hire scheme, announced United States Attorney John E. Kuhn, Jr.
Earl D. Grigsby, 52, was charged with use of interstate commerce facilities in the commission of murder-for-hire, in a single count indictment on January 21, 2015. Grigsby pleaded guilty to the charge on January 8, 2016. The defendant is currently in federal custody, but was in the custody of the Louisville Metro Department of Corrections at the time of the charged incident.
According to the plea agreement, during the late summer months of 2014, defendant Grigsby attempted to find someone to kill his wife, with whom he was involved in a divorce. The FBI learned of the plan and arranged for an undercover FBI agent, posing as a “hit man” to visit with the defendant, who by this time was serving a jail sentence. The undercover FBI agent discussed the plan with the defendant, at one point telling the defendant that he would "kill the [expletive]" for "25 grand." This jailhouse conversation was conducted telephonically in jail and was recorded by the jail phone system and on a concealed video recorder used by the undercover FBI agent. The defendant planned to pay the undercover FBI agent with the proceeds of an insurance policy on his wife. After the meeting with the "hit man," the defendant wrote a letter to an associate which refers to "Dutch" (the undercover FBI agent) and tells the associate that "Dutch" was going to take care of "that other truck" and wants to make sure "that other truck ... will not come back on us." The defendant placed the letter in the mail on or about October 15, 2014.
This case was prosecuted by Assistant United States Attorney Thomas W. Dyke and was investigated by the Federal Bureau of Investigation (FBI).
Former Pastor of Louisville Parish Sentenced to 33 Months for Viewing Child Pornography over the InternetRead the Press Release
LOUISVILLE, Ky. – The former pastor of a Louisville, Kentucky, parish, Stephen A. Pohl, 57, was sentenced today in United States District Court, by United States District Judge David J. Hale, to 33 months in prison followed by a life term of Supervised Release for violating federal child exploitation laws, announced United States Attorney John E. Kuhn, Jr. There is no parole in the federal criminal justice system.
“Viewing child pornography over the internet is a crime with untold and horrific consequences for these defenseless child victims,” said United States Attorney John Kuhn. “Protecting children is a national priority of the Department of Justice. My Office will continue to prosecute those who harm the most vulnerable and those who perpetuate these crimes through their internet devices.”
Pohl pleaded guilty to a single charge of knowingly accessing, via the Internet, with intent to view material that contained images of child pornography between January and August 2015. Under federal law, child pornography involves visual depictions of minors under the age of 18 engaged in sexually explicit conduct. Pohl was initially charged with the same offense by criminal complaint on August 21, 2015. The complaint was filed after law enforcement officials executed two federal search warrants on August 12, 2015, in the work and living areas used by Pohl in the parish office and rectory of St. Margaret Mary Catholic Community, located at 7813 Shelbyville Road, in Louisville, Kentucky.
The investigation began after a child told his mother that Pohl had taken pictures of him that made him feel “weird.” When the child’s parents confronted Pohl about the pictures of their son, they saw similar pictures of another child and reported the matter to law enforcement. Law enforcement officials obtained the search warrants based on the inappropriate images. It is important to note that no child pornography images of Saint Margaret Mary school children were found on the digital devices seized and examined as a result of the search warrants. All child pornography evidence and the charge in this case relate to Pohl’s online searches and viewing.
Law enforcement officials arrested Pohl in Indian Rocks Beach, Florida, on Friday evening, August 21, 2015. Pohl was then held at the Pinellas County Jail until his transfer to the custody of the United States Marshals Service. He appeared in United States District Court for the Western District of Kentucky on September 2, 2015. After pleading guilty to the charge in January 2016, Pohl surrendered to the United States Marshals Service where he will remain until designation by the Bureau of Prisons.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Federal Bureau of Investigation in conjunction with Louisville Metro Police Department’s Crimes Against Children Unit conducted the investigation.
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."
Madisonville, Kentucky, Former Business Owner, Sentenced to 30 Months in Prison for Filing False Tax ReturnsRead the Press Release
Ordered to pay $649,506.15 in restitution
OWENSBORO, Ky. - The former owner of Madisonville, Kentucky businesses was sentenced in United States District Court this week, by Chief Judge Joseph H. McKinley Jr., to 30 months in prison and ordered to pay $649,506.15 in restitution, for filing false tax returns and for conspiring to commit mail and wire fraud, announced United States Attorney John E. Kuhn, Jr.
Gholam A. Sattar-Shamsabadi, 58, operated a photo processing business in Madisonville, which he converted to a café, and a business called Fast Foto Finishing in Henderson, Kentucky, which he began in 2009.
According to court records, Shamsabadi, with the aid of an unindicted co-conspirator, filed false invoices for insurance claims for his business and one personal claim from 2006 to 2012. The total loss amount based on payout on six fraudulent claims totaled $649,506.15. In each of the claims, Shamsabadi claimed that his photo processing equipment was damaged by a power surge from lightning. Also, he claimed that neon signs were destroyed. In each claim, Shamsabadi submitted invoices and estimates for new equipment, and submitted invoices falsely claiming that he had purchased new replacement equipment. According to court documents, Shamsabadi received $135,804 2008 from Hartford Insurance in 2006; $53,993 from Zurich North America in 2010; $216,356 from State Farm Insurance in 2010; $7,613.22 from Liberty Mutual Auto in 2012; $205,000 from Kentucky Farm Bureau (Business Claims and Personal) in 2012; and $30,738.94 from Kentucky Farm Bureau (Personal) in 2012.
Further, Shamsabadi failed to report the proceeds of his insurance fraud as taxable income. In 2010, Shamsabadi failed to report $170,000 of unreported income and in 2012, he failed to report $247,156 in unreported income. Also, in each of these years, Shamsabadi filed tax returns under two different social security numbers creating a total Tax Loss of $82,381.
This case was prosecuted by Assistant United States Attorney Joshua Judd. The Kentucky Insurance Fraud Investigation Division (KIFID) started this investigation and brought it to the attention of the FBI and IRS Criminal Investigations (CI).
Logan County, Kentucky, Tax Return Preparers Charged with Preparing False Tax ReturnsRead the Press Release
Falsified taxpayer education expenses resulting in education credits on prepared tax returns
BOWLING GREEN, Ky. – Logan County, Kentucky, tax preparers appeared in United States District Court this morning, before Magistrate Judge H. Brent Brennenstuhl, charged with conspiring to defraud the United States through preparing false tax returns and aiding in the preparation of the false returns, announced United States Attorney John E. Kuhn, Jr.
Defendants Tara L. Mitchell and Mechelle Blankenship were charged last week in a 21 count grand jury indictment that was unsealed Monday, March 21, 2016. According to the charges, the defendants worked together at Triple J Tax, a tax return preparation office located in Russellville, Kentucky. Mitchell managed the office and in 2012, hired and trained defendant Blankenship to prepare tax returns.
Between March 2012, and November 2014, the defendants allegedly prepared electronically filed U.S. Individual Income Tax Returns, on behalf of themselves and clients of Triple J Tax, which stated that the taxpayers had incurred educational expenses, when they had not, and thus falsely claimed education-related credit, to which the taxpayers were not entitled.
Further, the defendants are separately charged, in counts 2-21, with aiding in the preparation of false returns.
If convicted at trial, Blankenship could be sentenced to up to 41 years in prison, fined $1,450,000 and required to serve a 3 year period of supervised release. Mitchell could be sentenced up to 29 years in prison, fined $1,050,000 and required to serve a 3 year period of supervised release.
Assistant United States Attorney Amanda E. Gregory is prosecuting the case. The Internal Revenue Service (IRS) Criminal Investigation office is conducting the investigation.
Barren County, Kentucky, Man Guilty of Defrauding Supplemental Security AdministrationRead the Press Release
Defendant misrepresented his mental condition to qualify for benefits
Ordered to pay restitution to victim agencies
BOWLING GREEN, Ky. – A Cave City, Kentucky, man pleaded guilty in United States District Court today, before District Judge Greg N. Stivers, to defrauding the Supplemental Security Administration because he failed to report income and falsely misrepresented his mental condition in order to receive Supplemental Security Income benefits announced U.S. Attorney John E. Kuhn, Jr.
In court, Gary Hank Thompson, 33, admitted that between August 2009 and April 2013, he made misrepresentations in order to receive Supplemental Security Income benefits from the Social Security Administration in the amount of $24,884, to which he was not entitled. Supplemental Security Income is a federal government program that provides benefits to individuals who are disabled and have limited income and resources.
In his initial application for Supplemental Security Income, Thompson also applied for Medicaid, and during the same period, obtained $81,831.27 in Medicaid benefits.
At various points, including during the initial field interview with Social Security Administration personnel in August 2009, and during the April 15, 2013, redetermination meeting with Social Security Administration personnel in Warren County, Kentucky, defendant Thompson falsely represented his mental condition by slowing his speech and stuttering, and generally saying and doing things to make it seem that he had issues with comprehension, when he did not. Defendant misrepresented his mental condition in this way to qualify for benefits and to continue qualifying for Supplemental Security Income benefits. Thompson’s misrepresentations of his mental condition were material to whether he would receive Supplemental Security Income benefits, as he initially qualified under “organic mental disorders.” When the Social Security Administration was provided with accurate information concerning the Defendant’s mental condition, it reevaluated whether he qualified for Supplemental Security Income and determined he did not.
Additionally, the Defendant made material omissions and misstatements regarding his income and resources, which affected his eligibility for Supplemental Security Income benefits. Between August 2009 and April 2013, the Defendant made multiple statements to the Social Security Administration that he had no gifts, income, or resources. This was not in fact true, as the Defendant later admitted he failed to report amounts of up to $40 a day that he made panhandling, which would have affected his eligibility for Supplemental Security Income benefits.
At sentencing, before Judge Stivers, on June 28, 2016, in Bowling Green, the United States will recommend a 27 month sentence and an order for Thompson to pay restitution of $24,884 to the Supplemental Security Administration and $81,831.27 to the Kentucky Department for Medicaid Services, the victim agencies.
This case is being prosecuted by Assistant United States Attorney Amanda E. Gregory and was investigated by the Office of the Inspector General of the Social Security Administration.
Louisville Daycare Owner/Operator Guilty of Fraud in Seeking Child Care Payments from Kentucky AgencyRead the Press Release
Lottie Carisa Burgos, former owner of ABC Village Daycare, falsified daycare attendance figures and qualifications of daycare workers
Agreed to pay over $1.4 million in restitution
LOUISVILLE, Ky. –United States Attorney John E. Kuhn, Jr. announced today the guilty plea of a former Louisville daycare owner to charges of wire fraud and money laundering and an agreement by the defendant to pay $1,424,929.00 in restitution to the victim agency.
Lottie Carisa Burgos, the former owner and operator of ABC Village Daycare, pleaded guilty in United States District Court, before District Judge Greg N. Stivers, to 18 counts of an indictment returned by a federal grand jury on July 16, 2014.
“In committing this fraud, Ms. Burgos not only took taxpayer money intended to assist economically disadvantaged parents with childcare costs, but also placed infants and toddlers in harm’s way,” stated United States Attorney John Kuhn. “With this prosecution, we are protecting children and recovering stolen taxpayer money. I thank the Kentucky Cabinet for Health and Family Services and the Federal Bureau of Investigation for their work on this case.”
Burgos operated ABC Village Daycare at two locations, 1801 West Market Street, Louisville, Kentucky, and 2823 7th Street Road, Louisville, Kentucky. According to the plea agreement, Burgos or others acting at her direction falsified a wide range of information which was a condition of payment for child care services from Kentucky’s Department for Community Based Services. The Department for Community Based Services provides child care benefits to low-income working parents and guardians. Burgos or others acting at her direction falsified the following information: high school diplomas which are a requirement of child care staff with supervisory authority over minors; negative tuberculosis tests and CPR certificates of ABC Village Daycare employees; the employment status of parents; the number of children who attended the daycare centers; and the number of days children attended the daycare centers.
Further, Burgos committed wire fraud on occasions ranging from January 1, 2011, through March 31, 2013. The fraud is associated with payments from the Kentucky Department for Community Based Services totaling $275,576. The total loss was $1,424,929.00.
Burgos also pleaded guilty to six counts of money laundering. Burgos engaged in various financial transactions with money derived from her wire-fraud scheme on six different occasions ranging from September 2011 through May 2012.
Burgos faces a maximum sentence of 300 years in prison, a maximum fine of $4,500,000, and up to 3 years of supervised release. Sentencing is scheduled before Judge Stivers on June 9, 2016, in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and was investigated by the Kentucky Cabinet for Health and Family Services and the Federal Bureau of Investigation.
Louisville Attorney Guilty of Wire Fraud and Money LaunderingRead the Press Release
Ordered to pay $1,602,327.14 to multiple victims including $268,459.06 to St. Mary’s Church and $245,993.67 to WHAS Crusade for Children
LOUISVILLE, Ky. – A Louisville attorney pleaded guilty in United States District Court yesterday, before Magistrate Judge Dave Whalin, to criminal counts of wire fraud and money laundering, stemming from his activities as the executor of seven estates in Louisville, announced United States Attorney John E. Kuhn, Jr.
“Attorneys are professionally and ethically bound to serve their clients’ best interests,” stated U.S. Attorney John Kuhn. “We simply cannot tolerate attorneys or any other fiduciaries using their positions of trust to steal from those they are obligated to protect. This prosecution serves the principle of justice and vindicates the breach of a trust that is an absolutely essential component of a multitude of professional relationships.”
David Cary Ford, 53, admitted that from November 6, 2008, through February 11, 2015, while a practicing attorney, he served as executor of the estates of Saundra A. Benzinger, Kenneth L. Keith, William T. Lawson, Mary Helen Pfeffer, Elinor E. Starr, Mary Augustine Starr, and Richard Steinmetz. Ford took funds from those estates totaling approximately $1,666,671.18, and used those estates’ funds for personal expenses and enjoyment, including significant gambling activity, instead of using the funds as designated by the decedents of those estates, or for the benefit of the beneficiaries of those estates, in the following amounts:
$ 737,981.00 Estate of Saundra Benzinger
$ 492,862.18 Estate of Elinor Starr
$ 290,315.00 Estate of Mary Starr
$ 62,343.00 Estate of Kenneth Keith
$ 26,300.00 Estate of Richard Steinmetz
$ 17,025.00 Estate of Mary Helen Pfeffer
$ 8,200.00 Estate of William Lawson
Specifically, as executor of these estates, Ford was authorized at various banks to pay estate expenses. However, Ford also used these estate accounts, without authorization, to withdraw cash and to pay his personal expenses with estate client funds. In his capacity as executor, Ford processed these withdrawals of estate funds and mischaracterized them as estate expenses.
Further, Ford admitted that from July 21, 2014, to July 28, 2014, he laundered fraud proceeds by using funds from one estate to conceal the depletion of the funds from another estate. Specifically, to promote his unlawful activity and to conceal or disguise the source and nature of proceeds from that unlawful activity, on July 24, 2014, after depleting the funds of the Estate of Kenneth L. Keith, Ford took $35,960.18 from the estate of Elinor E. Starr, in a cashier’s check, deposited those funds into his escrow account, and then on July 28, 2014, used $25,000 of those funds to pay a beneficiary of the Estate of Kenneth L. Keith.
As part of the plea agreement, Ford agreed to make restitution to the beneficiaries of the estates ($1,554,555.36 to various charities, nonprofits and religious organizations, and $47,771.78 to individuals) in the following amounts:
Victim Amount
St. Mary’s Church
$ 268,459.06
Passionist Community
$ 245,993.67
Passionist Nuns
$ 245,993.67
WHAS Crusade For Children
$ 245,993.67
National Shrine of St. Elizabeth Ann Seton
$ 134,229.53
Franciscan Sisters of Allegany, Inc.
$ 134,229.53
Archdiocese of Louisville
$ 89,486.35
St. Francis of Assisi Church
$ 44,743.18
Catholic Foreign Mission Society of America, Inc.
$ 44,743.18
Sisters of Charity of St. Joseph’s
$ 44,743.18
Nazareth Literary and Benevolent Institution, Inc.
$ 44,743.18
L.S. (an individual)
$ 24,300.50
C.P. (an individual)
$ 17,025.00
Little Sisters of the Poor
$ 5,598.59
L.A. (an individual)
$ 3,099.48
C.B. (an individual)
$ 3,099.48
Holy Family Catholic Church
$ 2,799.30
Our Mother of Sorrows Catholic Church
$ 2,799.30
R.S. (an individual)
$ 82.44
V. S. (an individual)
$ 82.44
P.S. (an individual)
$ 82.44
Total
$1,602,327.14
Ford faces a maximum penalty of forty years’ imprisonment, $750,000 in fines, and supervised release for a period of three years. Sentencing is scheduled on June 6, 2016, in Louisville.
The case is being prosecuted by Assistant United States Attorney Jason Snyder, and it results from an investigation conducted by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation.
Evansville, Indiana Man Guilty of Transportation of an Owensboro, Kentucky Minor to Engage in Criminal Sexual ActivityRead the Press Release
OWENSBORO, Ky. – An Evansville, Indiana man pleaded guilty today in United States District Court, before Magistrate Judge H. Brent Brennenstuhl, to the charge of transportation of a minor to engage in criminal sexual activity, announced United States Attorney John E. Kuhn, Jr.
In court, Zachary Andrew Coleman, 28, pleaded guilty to a single count Indictment pursuant to a plea agreement reached with the United States. According to the plea agreement, on or about February 6, 2015, Coleman picked up a twelve year old female from her residence in Owensboro, Kentucky and took her to his home in Evansville, Indiana for the purpose of engaging in criminal sexual activity with her. Coleman communicated with the minor via a social networking site called MyLOL and sent sexually explicit messages to the minor, while claiming to be a teenager himself. Conversations obtained via a search of the minor’s computer show Coleman arranged to pick the minor up at her home for the purposes of transporting her to engage her in sexual activities that would violate Kentucky law.
Coleman was arrested on May 5, 2015 by federal authorities. Coleman faces a statutory mandatory minimum of 10 years and a maximum of life imprisonment, a fine of $250,000, and supervised release of not less than 5 years and not more than life. The sentencing hearing is scheduled to take place in Owensboro on June 9, 2016 at 9:00 CST.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness, and is being investigated by the Federal Bureau of Investigation (FBI) with assistance from the Daviess County, Kentucky Sheriff’s Office, and the Evansville, Indiana 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."
Taylor County, Kentucky Man Sentenced to 30 Months in Prison for Multiple Counts of Firearm ViolationsRead the Press Release
District Judge imposes the maximum sentence
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. today announced the sentencing of a Taylor County, Kentucky man this week by United States District Judge Greg N. Stivers, to 30 months in prison, the maximum sentence for the offenses charged under the federal sentencing guidelines, for multiple counts of firearm violations.
Christopher Cox, of Campbellsville, previously pleaded guilty to an eight count indictment on November 23, 2015. Cox pleaded guilty to four charges of being a felon in possession of a firearm and four charges of possession of a firearm by a person convicted of a misdemeanor crime of domestic violence.
According to information presented in court to support the felony charges, Cox was previously convicted on June 4, 2002, in Taylor Circuit Court, of the felony offense of possession of marijuana while in possession of a firearm. On January 13, 2009, in Madison County District Court, located in Richmond, Kentucky, Cox was convicted of assault in the 4th degree (domestic violence). Cox pleaded guilty to an altercation with his then girlfriend in which he had attempted to choke her while driving a vehicle. The Police Report noted “visible red marks” on the woman’s neck.
Cox came to the attention of law enforcement when he purchased a 9mm pistol from a Campbellsville shop without filling out the proper paperwork (Form 4473). The shop owner notified law enforcement who noticed Cox had a previous felony conviction. Further, around the same time of the purchase of the pistol, law enforcement uncovered that Cox had pawned three long guns at a pawn shop in Campbellsville. Those firearms were a Mossberg 12 gauge shotgun, a Mossberg 20 gauge shotgun, and a Remington bolt-action rifle. Cox had purchased the guns from a store in Lexington using a stolen social security number.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF) in connection with the Campbellsville Police Department.
Todd County, Kentucky Resident Sentenced to 228 Months in Prison for Possession and Distribution of Methamphetamine and Carrying A Firearm During A Drug Trafficking CrimeRead the Press Release
Defendant obtained 67 pounds of crystal meth (with an estimated street value of $3 million) in California and shipped the drug to his Todd County home
BOWLING GREEN, Ky. – A Todd County, Kentucky resident, was sentenced today in United States District Court by District Judge Greg N. Stivers to 228 months in prison followed by five years of supervised release, for multiple charges associated with firearms, possession and distribution of methamphetamine announced U.S. Attorney John E. Kuhn, Jr. There is no parole in the federal system.
Scott Windell Harris, age 45, living in Allensville, purchased 67 pounds of crystal meth during approximately nine trips to California, then shipped the schedule II controlled substance to a residence off Russellville Road in Todd County. Harris, an unlawful user of methamphetamine, also carried a firearm during and in relation to a drug trafficking offense.
"Methamphetamine is a highly addictive drug with devastating consequences to users, their families and communities,” stated U.S. Attorney John Kuhn. “This prosecution closes a significant pipeline for dangerous drugs running from California to the streets of Western Kentucky. We are grateful to the many law enforcement agencies whose coordinated efforts assisted my Office in achieving this sentence.”
Law enforcement officials became aware of Harris’ criminal conduct in February 2015, when a package was intercepted at the Louisville hub of UPS. A search warrant executed on the package revealed 19.6 pounds of suspected methamphetamine being shipped from California to Todd County. Later forensic testing of the methamphetamine at the Drug Enforcement Administration Laboratory in Chicago, Illinois, revealed a purity level exceeding 100%. State and federal law enforcement officials conducted a controlled delivery of the package, and observed Harris taking possession of the package and placing it inside a black van. Later, a search of the van revealed a loaded Kel-Tec CNC Industries, Model P3AT, .380 caliber pistol with seven rounds of .380 ammunition in the van’s glove box. At the time, Harris was an unlawful user of methamphetamine and, therefore, prohibited from possessing a firearm.
According to Harris, he made multiple trips to Los Angeles, California, where he obtained a total of 67 pounds of crystal methamphetamine, with an estimated street value of approximately $3 million. Once he had the methamphetamine, Harris packaged the drugs and shipped them to his residence in Allensville, Kentucky. When law enforcement officials arrested Harris, they searched the residence and found an additional one and one-half pounds of crystal methamphetamine, scales, baggies and just over $14,000.00 in cash.
Harris previously pled guilty to the charges on October 13, 2015, in Bowling Green, before Judge Stivers.
This case was prosecuted by Assistant United States Attorney Jo E. Lawless and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kentucky State Police Drug Enforcement/Special Investigations West, with assistance from the Drug Enforcement Administration Laboratory.
Kentucky Man Sentenced to 19 Years in Prison for Possession and Distribution of Methamphetamine and Carrying a Firearm During a Drug Trafficking CrimeRead the Press Release
Defendant Obtained 67 Pounds of Crystal Meth in California and Shipped the Drug to His Todd County Home
Scott Windell Harris, 45, of Allensville, Kentucky, was sentenced today in U.S. District Court in the Western District of Kentucky to 19 years in prison followed by five years of supervised release for multiple charges associated with firearms, possession and distribution of methamphetamine, announced U.S. Attorney John E. Kuhn, Jr. for the Western District of Kentucky.
Harris purchased 67 pounds of crystal meth during approximately nine trips to California, then shipped the schedule II controlled substance to a residence off Russellville Road in Todd County. Harris, an unlawful user of methamphetamine, also carried a firearm during and in relation to a drug trafficking offense.
“Methamphetamine is a highly addictive drug with devastating consequences to users, their families and communities,” said U.S. Attorney Kuhn. “This prosecution closes a significant pipeline for dangerous drugs running from California to the streets of Western Kentucky. We are grateful to the many law enforcement agencies whose coordinated efforts assisted my office in achieving this sentence.”
Law enforcement officials became aware of Harris’ criminal conduct in February 2015, when a package was intercepted at the Louisville, Kentucky, hub of UPS. A search warrant executed on the package revealed 19.6 pounds of suspected methamphetamine being shipped from California to Todd County. Later forensic testing of the methamphetamine at the Drug Enforcement Administration Laboratory in Chicago, Illinois, revealed a purity level exceeding 100 percent. State and federal law enforcement officials conducted a controlled delivery of the package and observed Harris taking possession of the package and placing it inside a black van. Later, a search of the van revealed a loaded Kel-Tec CNC Industries, Model P3AT, .380 caliber pistol with seven rounds of .380 ammunition in the van’s glove box. At the time, Harris was an unlawful user of methamphetamine and, therefore, prohibited from possessing a firearm.
Harris made multiple trips to Los Angeles, California, where he obtained a total of 67 pounds of crystal methamphetamine, with an estimated street value of approximately $3 million. Once he had the methamphetamine, Harris packaged the drugs and shipped them to his residence in Allensville. When law enforcement officials arrested Harris, they searched the residence and found an additional one and one-half pounds of crystal methamphetamine, scales, baggies and just over $14,000 in cash.
Harris previously pleaded guilty to the charges on Oct. 13, 2015, in Bowling Green, Kentucky, before U.S. District Judge Stivers.
This case was prosecuted by Assistant U.S. Attorney Jo E. Lawless and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Kentucky State Police Drug Enforcement/Special Investigations West, with assistance from the Drug Enforcement Administration Laboratory.
Louisville Attorney Charged with Wire Fraud and Money LaunderingRead the Press Release
Defrauded clients’ estates of $1,666,671.18
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today charged David Cary Ford, 53, of Louisville, Kentucky, with criminal counts of wire fraud and money laundering, stemming from Ford’s activities while he was a practicing attorney and the executor of seven estates in Louisville.
"Attorneys are professionally and ethically bound to serve their clients' best interests," stated U.S. Attorney John Kuhn. "We simply cannot tolerate attorneys or any other fiduciaries using their positions of trust to steal from those they are obligated to protect. This prosecution serves the principle of justice and vindicates the breach of a trust that is an absolutely essential component of a multitude of professional relationships."
The criminal information charging Ford alleges that from November 6, 2008, through February 11, 2015, Ford, serving as executor of the estates of Saundra A. Benzinger, Kenneth L. Keith, William T. Lawson, Mary Helen Pfeffer, Elinor E. Starr, Mary Augustine Starr, and Richard Steinmetz, defrauded those estates of approximately $1,666,671.18, and used those estates’ funds for personal expenses and enjoyment, including significant gambling activity.
Specifically, as executor of estates, Ford was authorized at various banks to pay estate expenses. However, Ford also used these estate accounts, without authorization, to withdraw cash and to pay his personal expenses with estate client funds. In his capacity as executor, Ford processed these withdrawals of estate funds and mischaracterized them as estate expenses. For example, Ford made a $4,000 cash withdrawal from an account belonging to the Estate of Kenneth L. Keith at PNC Bank on May 22, 2013.
The criminal information also alleges that from July 21, 2014, to July 28, 2014, Ford laundered fraud proceeds by using funds from one estate to conceal the depletion of the funds from another estate. Specifically, to conceal or disguise the source of proceeds from unlawful activity, on July 24, 2014, after depleting the funds of the Estate of Kenneth L. Keith, Ford took $35,960.18 from the estate of Elinor E. Starr, in a cashier’s check, deposited those funds into his escrow account, and then on July 28, 2014, used $25,000 of those funds to pay a beneficiary of the Estate of Kenneth L. Keith.
In the event of a conviction, the maximum potential penalties Ford faces are forty years’ imprisonment, $750,000 in fines, and supervised release for a period of three years.
The case is being prosecuted by Assistant United States Attorney Jason Snyder, and it results from an investigation conducted by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation.
Former Office Manager of Louisville, Kentucky, Company Sentenced to 18 Months for Embezzling $800,000Read the Press Release
LOUISVILLE, Ky. – The former officer manager of a Louisville, Kentucky, company was sentenced yesterday in United States District Court, by District Judge Greg N. Stivers, to 18 months in prison, without the opportunity of parole, for embezzling $800,000 announced United States Attorney John E. Kuhn, Jr.
Paige L. Talley, 55, of Louisville, pleaded guilty to a single charge of wire fraud on November 24, 2015. Talley admitted to submitting fraudulent travel reimbursement requests and payroll “miscellaneous adjustments” while employed as human resources and office manager at Luvata Electrofin, Inc. (LEI).
Testimony during sentencing supported statements made by Talley that she suffered from being a battered wife of an alcoholic and from a gambling addiction.
According to the plea agreement, between January 2009 and March 2014, Talley submitted fraudulent reimbursement requests for bogus travel expenses to LEI, resulting in excessive reimbursements.
Further between March 2013 and March 2014, Tally entered and submitted fraudulent “miscellaneous adjustments” to LEI payroll checks resulting in payroll overpayments.
Talley paid $20,000 in restitution today during sentencing and was ordered by Judge Stivers to pay the full restitution order of $800,000.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the United States Secret Service and the Louisville Metro Police Department.
Ohio Convicted Murderer Sentenced to A Lifetime of Incarceration Without Parole for the 2005 Murder of Woman at Fort Knox Military BaseRead the Press Release
Ohio Woman had been missing since 2005
Formerly convicted of 2005 murder in Toledo, Ohio
PADUCAH, Ky. – A Toledo, Ohio, convicted murderer was sentenced today by Senior Judge Thomas B. Russell, in United States District Court, to a lifetime of incarceration, without the possibility of parole, for the 2005 murder of a woman at Fort Knox Military Base, announced United States Attorney John E. Kuhn, Jr.
In court, defendant Ernest Otto Smith, 49, admitted that on or about January 7, 2005, he murdered Cathy M. Barnett willfully, deliberately, maliciously, and with premeditation, on the grounds of Fort Knox, within the special territorial jurisdiction of the United States.
“This life sentence is a just punishment for the brutal murder Smith committed at Fort Knox,” stated U.S. Attorney, John Kuhn.“And because Smith will not ever be paroled, we have insured the public’s safety.”
Smith had previously admitted that on January 3, 2005, he robbed and shot and killed James Dillingham in Toledo, Ohio. It is believed Barnett was present during the murder. Shortly after the murder, Smith and Barnett fled Toledo and ultimately headed south to Kentucky in Smith’s van. Smith had formerly lived and worked near Fort Knox.
During the trip to Kentucky Smith decided to murder Barnett because she witnessed the Dillingham murder and could tell the police about the murder. On January 7, 2005, Smith’s van broke down in Kentucky and Smith and Barnett hitchhiked and they were dropped off near Fort Knox. Smith and Barnett walked approximately one quarter of a mile down a service road off the main highway, into a wooded area located on the grounds of Fort Knox, in Meade County, Kentucky. In the wooded area, Smith first attempted to break Barnett’s neck, and then beat her on the head with a tree branch until Smith knew Barnett was dead. Smith left Barnett’s body in the woods and eventually traveled to Tennessee where he was arrested in Nashville on January 21, 2005. In March 2006, Smith was convicted in Ohio of the Dillingham murder and was sentenced to 32 years of imprisonment.
In late 2010, Smith spoke with his former parole officer, Dan Van Vorhis, who asked Smith what happened to Barnett. Over the course of several recorded conversations, Smith explained to Van Vorhis the details of her murder. Smith also identified where Barnett’s remains would be found. The Federal Bureau of Investigation (FBI) searched and found Barnett’s remains on the grounds of Fort Knox, in the wooded area identified by Smith.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Federal Bureau of Investigation.
Lockheed Martin Agrees to Pay $5 Million to Settle Alleged Violations of the False Claims Act and the Resource Conservation and Recovery ActRead the Press Release
WASHINGTON – Lockheed Martin Corporation and subsidiaries Lockheed Martin Energy Systems and Lockheed Martin Utility Services (collectively, Lockheed Martin) have agreed to pay the United States $5 million to resolve allegations that they violated the Resource Conservation and Recovery Act (RCRA) and, in misrepresenting their compliance with RCRA to the Department of Energy (DOE), knowingly submitted false claims for payment under their contracts with DOE to operate the Paducah Gaseous Diffusion Plant in Paducah, Kentucky, the Justice Department announced today. Headquartered in Bethesda, Maryland, Lockheed Martin is a global security, aerospace, and information technology company that provides energy, environmental, and other services to government and commercial customers.
“We depend on the private sector to provide services critical to the government’s energy needs and to provide those services by means that are environmentally sound,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As the settlement announced today demonstrates, the department will vigorously pursue all appropriate remedies to ensure that those who provide these vital services do so honestly and safely and in accordance with the law.”
“This settlement reflects our commitment to pursuing companies that violate the hazardous waste laws, and to securing a fair recovery of civil penalties for the people of the United States,” said Assistant Attorney General John Cruden, head of the Justice Department’s Environment and Natural Resources Division. “The $1 million in RCRA civil penalties that the defendants are paying under this settlement is significant and is appropriate for the violations the United States has alleged.”
The government’s lawsuit alleged that Lockheed Martin violated RCRA, the statute that establishes how hazardous wastes must be managed, by failing to identify and report hazardous waste produced and stored at the facility, and failing to properly handle and dispose of the waste. The government further alleged that this conduct resulted in false claims for payment under Lockheed Martin’s contracts with the Department of Energy.
Of the $5 million settlement amount, Lockheed Martin will pay $4 million to resolve the government’s False Claims Act allegations and its subsidiaries (Lockheed Martin Energy Systems and Lockheed Martin Utility Services) will each pay $500,000 – $1 million total – in RCRA civil penalties.
“Government contractors are required to follow the same federal laws that apply to everyone else,” said U.S. Attorney John E. Kuhn, Jr. for the Western District of Kentucky. “These companies do not get a pass on compliance, especially when their responsibilities include managing and disposing of hazardous waste. Today’s settlement should serve as a reminder that my office and the Department of Justice will pursue all credible allegations of false claims and of environmental regulatory violations.”
“Managing hazardous waste is important, and this case makes clear EPA’s commitment to upholding laws that protect communities where waste is disposed,” said EPA Regional Administrator Heather McTeer Toney of EPA Region 4, the Southeast region.
Lockheed Martin operated the Paducah Gaseous Diffusion Plant under contracts with the Department of Energy and a government corporation, the U.S. Enrichment Corporation, from 1984 to 1999. During that time, Lockheed Martin was responsible for the facility’s uranium enrichment operations. Enriching uranium increases the proportion of uranium atoms that can be used to produce nuclear fuel for weapons and civilian energy production. As the name of the plant suggests, the process used was called “gaseous diffusion.”
In addition to uranium enrichment, Lockheed Martin was responsible for environmental restoration, waste management, and custodial care at the site, which occupies 3,500 acres in McCracken County, Kentucky. Uranium enrichment operations ceased at the plant in 2013. The government is working with other contractors to remediate contamination at and near the site consistent with the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
The settlement resolves two lawsuits filed under the qui tam, or whistleblower, provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The lawsuits were filed by the Natural Resources Defense Council, Inc. and several former employees of Lockheed Martin who worked at the Paducah facility. The United States partially intervened in the lawsuits, which were then consolidated into one action. The whistleblowers will collectively receive $920,000 from the United States’ portion of the settlement.
The case was a coordinated effort of the U.S. Attorney’s Office for the Western District of Kentucky, the Civil Division’s Commercial Litigation Branch, the Environment and Natural Resources Division’s Environmental Enforcement Section, the U.S. Environmental Protection Agency, the Department of Energy, and the Department of Energy Office of Inspector General.
The case is captioned United States, ex rel. John David Tillson, Natural Resources Defense Council, Inc., et al. v. Lockheed Martin Corp., et al., Civil Action No. 5:99CV00170-GNS (W.D. Ky.). The claims resolved by this settlement are allegations only; there has been no determination of liability.
Smyrna, Tennessee Resident Guilty of Supplemental Security Income FraudRead the Press Release
Claimed she lived alone in Water Valley, Kentucky to receive benefits
PADUCAH, Ky. – A Smyrna, Tennessee woman pleaded guilty in United States District Court last week before Senior U.S. District Judge Thomas B. Russell for lying about where she lived in order to receive Supplemental Security Income, announced United States Attorney John E. Kuhn, Jr. Supplemental Security Income (SSI) is a Federal income supplement program funded by general tax revenues (not Social Security taxes) that is designed to provide cash to aged, blind, and disabled people, who have little or no income, in order to meet basic needs for food, clothing, and shelter.
According to the plea agreement, Mary Jane Higgins, 64, applied for and was denied SSI benefits in March of 2001 due to her co-habitation with her husband in Smyrna, Tennessee and her husband’s income being too high for qualification of benefits. Higgins then re-applied for SSI benefits in July of 2001 and claimed that she had moved from Smyrna, Tennessee to Water Valley, Kentucky. The defendant claimed that by living in Water Valley, she no longer lived with her husband and no longer enjoyed the benefits of his income, which earlier had precluded her eligibility for SSI benefits. The defendant’s reapplication was approved and defendant received SSI payments from July of 2001 through July of 2014.
Furthermore, on April 5, 2010, April 6, 2011, and May 7, 2013, Higgins completed interviews for redetermining her eligibility for SSI payments. On all three occasions, Higgins claimed to live alone in Water Valley, when, in fact, she was actually living with her husband in Smyrna. During the time periods discussed in the interviews, her husband’s income would have continued to prevent her eligibility for SSI benefits.
On July 24, 2014, Higgins came to the Social Security Administration Office in Mayfield, Kentucky, for a pre-scheduled interview with SSA personnel regarding her SSI benefits. Higgins claimed that she was still separated from her husband and living in Water Valley. The defendant also claimed that her husband had dementia and that she hadn’t seen her husband in several months. However, her husband had actually driven her to the interview that day and was outside in the parking lot sitting in their car during the interview when Higgins was making these false statements.
Higgins has agreed to pay $120,850.88 of restitution to the United States Commissioner of Social Security and the Kentucky Department of Medicaid Services. Sentencing is scheduled before Senior Judge Russell on June 14, 2016 in Paducah.
This case is being prosecuted by Assistant United States Attorney Nute A. Bonner and was investigated by the Social Security Administration Office of the Inspector General.
Fort Campbell, Kentucky, Resident Sentenced to 18 Years in Prison for First Degree Manslaughter Resulting from Child AbuseRead the Press Release
LOUISVILLE, Ky. – A Fort Campbell, Kentucky, woman was sentenced today by Senior United States District Judge Thomas B. Russell to 18 years in prison, followed by a three year period of supervised release, for the first degree manslaughter, resulting from child abuse, in the death of an infant whom she was babysitting in December 2013, announced United States Attorney John E. Kuhn, Jr.
There is no parole in the federal system.
“This sudden violent act ended with tragic consequences,” stated U.S. Attorney John Kuhn. “While nothing we can do will ever bring this innocent child back, we have strived to achieve justice for this family.”
Sheilla E. Linares, 22, previously admitted that on December 3, 2013, while on Fort Campbell Military Base, a special jurisdiction of the United States, located in Christian County, Kentucky, she provided babysitting service for an infant child, T.R.C., Jr. Three other children also were in the residence under Linares’ care that day, her two young children and T.R.C., Jr.’s three-year-old sister, A.C. No other adults were present in the residence during the day.
Between 3:00-3:30 p.m. Linares intentionally caused serious injury to T.R.C., Jr. Linares later admitted to law enforcement that it took her less than a second to realize that what she had done was completely wrong. She admitted to then putting the baby in the swing at which point, the infant became unresponsive. Linares stated that she then called the baby’s mother and 9-1-1.
An ambulance transported T.R.C., Jr. to the emergency room at the Army hospital located on Fort Campbell Military Base. His condition deteriorated and he was transported to Vanderbilt. While being treated at Vanderbilt, medical personnel noticed bruising that appeared on both of his shoulders as well as his left upper arm. Medical tests and examinations revealed bilateral subdural hemorrhage (approximately 25 ml total volume), focal subarachnoid hemorrhage, cerebral edema, bilateral optic nerve sheath hemorrhage, subdural blood throughout the spinal cord, and cervical nerve root hemorrhage. T.R.C., Jr.’s injuries were a result of Linares’ abuse. Those injuries led to his death.
On December 7, 2013, T.R.C., Jr., was determined to have insufficient brain activity to sustain life, and pronounced dead. The amended autopsy report of the Tennessee medical examiner lists the cause of death as blunt force injuries of the head and neck.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The Federal Bureau of Investigation, with assistance from the United States Army Criminal Investigation Division, and the Clarksville Tennessee Police Department, conducted the investigation.
Louisville Chiropractor Guilty of Health Care FraudRead the Press Release
Billed private insurance companies and government health care agencies for services that were not performed
LOUISVILLE, Ky. – A Louisville chiropractor pleaded guilty to numerous charges today, including health care fraud, obstruction of a criminal investigation, and tampering with a witness for his role in billing private insurance companies and government health care agencies for services that were never performed, announced United States Attorney John E. Kuhn, Jr.
According to the plea agreement, Devin Thauberger, age 46 , conspired to submit fraudulent claims to Medicare, Passport, Anthem, Humana, Geico, Shelter, Nationwide, Allstate and other insurance carriers, that falsely and fraudulently sought reimbursement for services which were never provided to patients, including times in which Thauberger was out of the country and unable to provide services.
Between April 2009 and March 2014 the defendant admits to knowingly executing a scheme to defraud health care benefit programs by submitting claims for services, which were never performed. According to the charges, false claims were submitted and billed on at least thirteen occasions and totaled nearly $214,672.11. Then between May 2015 and July 2015, Thauberger, while being on bond, aided and abetted by others, submitted claims to Allstate, a health care benefit program, for services which were never performed.
Also, beginning in August 2013, and continuing until at least July 2014, Thauberger admitted to willfully obstructing the criminal investigation of Federal health care violations by altering or causing patient records to be altered and attempting to influence the testimony of witnesses.
During all times relevant to this indictment, Thauberger was a doctor of chiropractic, licensed to practice in the state of Kentucky, and had been a chiropractor for approximately nine (9) years. Thauberger Chiropractic, P.S.C. (TCP) was a Kentucky corporation located at 8511 Preston Highway, in Louisville, Kentucky. Defendant Thauberger was the president and sole owner of TCP from 2005 through all times relevant to this Indictment.
Co-defendant Trisha Muir, pleaded guilty to a single charge on September 1, 2015, before District Judge Greg N. Stivers. According to the plea agreement, beginning in 2010, she became employed by TCP and reported directly to defendant Thauberger. By April 2011, Muir was responsible for billing for services purportedly provided by TCP, which included submitting reimbursement claims to insurance companies and patients for chiropractic services purportedly provided by TCP. After Muir became aware of the investigation, she admitted to participating in concealing the fraud, and instructed others to do the same, by making changes to patient files and other documentation to support the fraudulent billings.
At sentencing, the United States has agreed to dismiss counts 3, 4, 5, and 6 of the Second Superseding Indictment, agree that a sentenced of 41 months in prison is the appropriate disposition of this case, not object that the last 5 months of the sentence be served on home incarceration and stipulate that the amount of loss involved in this case is $214,672.11 which the defendant must pay by the date of sentencing. Sentencing is scheduled before Judge Stivers on June 2, 2016, in Louisville.
This case is being prosecuted by Assistant United States Attorneys Lettricea Jefferson-Webb and Joe Ansari and is being investigated by the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services Office of Inspector General and the Kentucky Office of Attorney General’s Kentucky Medical Fraud Control Unit.
Louisville Man Charged in the Shooting of A United States Postal CarrierRead the Press Release
Louisville, Ky. – A Louisville man appeared before U.S. Magistrate Judge Dave Whalin today, charged by Criminal Complaint with the assault of a United States Postal Carrier (while engaged in the performance of his official duties) and with the discharge of a firearm during the commission of a violent offense, announced United States Attorney John E. Kuhn, Jr.
Marcus Bennett, a/k/a MIZ, was arrested Saturday, February 20, 2016, and charged in a criminal complaint, that was unsealed today in federal court. The charges are in connection with the shooting of United States Postal Carrier Da’Ron Lester on February 10, 2016. According to an Affidavit by the United States Postal Inspection Service, in support of the complaint, Bennett was seated in the passenger seat of a 2009 Pontiac G8, when his brother, Eric Bennett, allegedly opened fire on Lester. Eric Bennett, 37, was arrested February 16, 2016, by Louisville Metro Police and charged in Jefferson County Circuit Court with attempted murder and first-degree assault. Marcus Bennett lives at a residence on South 38th Street in Louisville, which is in Lester’s postal delivery area. Lester was performing his official duties as a United States Postal Service (USPS) employee when he was shot multiple times on Dearborn Avenue in Louisville. At the time of the shooting, Lester indicated that he knew the person who shot him and subsequently stated to inspectors that he was shot by Eric Bennett. A search of Lester’s cell phone found a listing for MIZ (Marcus Bennett) in his contacts.
Marcus Bennett remains in federal custody with a bond hearing scheduled for Wednesday, February 24, 2016 before Magistrate Judge Whalin. Bennett faces a mandatory minimum sentence of ten years to life in prison for the charge of discharging a firearm during the commission of a violent offense and faces up to 20 years in prison for the assault of a federal employee while engaged in the performance of his official duties.
This case is being prosecuted by Assistant United States Attorneys Scott Davis and Marisa Ford, and the United States Postal Inspection Service (USPIS) is conducting the investigation.
The charge of a person by Criminal Complaint is an accusation only and that person is presumed innocent until and unless proven guilty.
Former School Administrator and Retired Colonel Found Guilty of Failing to Report Child Abuse at Bluegrass Challenge AcademyRead the Press Release
LOUISVILLE, Ky. – A retired Colonel in the Kentucky National Guard and the former Director of Bluegrass Challenge Academy was found guilty last week in United States District Court of failing to report child abuse, announced United States Attorney John E. Kuhn, Jr.
Following a three-day trial, a federal jury deliberated approximately two hours before finding John Wayne Smith, 65, guilty of the charge.
Smith was charged in a federal superseding indictment on April 22, 2015, with violating Title 18, United States Code, Section 2258. The statute applies to facilities and individuals on federal lands and requires that individuals in certain positions, such as school administrators, report to law enforcement or child protective services as soon as possible if they learn of facts that give reason to suspect child abuse. While the statute was enacted in 1990, this appears to be the first trial under the statute.
According to the evidence presented at trial, from 2003 to December 2013, Smith was the Director of Bluegrass Challenge Academy, a quasi-military school for students at-risk of not finishing high school. The Academy is located on Fort Knox military base. In early-February 2013, Smith learned that a 17-year-old female student at the Academy had alleged Stephen Miller, one of the staff members, forced her to touch his clothed penis. Around the same time, Smith also learned that another female student had accused Miller of touching her inappropriately. There was an internal investigation and Miller was reprimanded, but continued to work at the school, where his office was on the same hall where the female cadets showered and slept. Smith did not report the matter to law enforcement or child protective services. Law enforcement only became aware of the allegations through the investigation of an August 2013 incident, in which another female student accused a staff member of forcing her to perform oral sex on him.
In July 2015, Stephen Miller pled guilty to conduct related to both February 2013 incidents, as well as the August 2013 incident. Before Smith hired Miller to work with female students at the Academy, Miller worked as a police officer in Leitchfield, Kentucky. He resigned the position following complaints of inappropriate conduct toward two women. On February 1, 2016, Miller was sentenced to 48 months for conduct related to four separate incidents at the Academy.
Smith is scheduled to be sentenced on May 19, 2016.He faces a sentence of up to one year in prison and a $100,000 fine.
Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl are prosecuting the case. The Federal Bureau of Investigation (FBI) with assistance from the Army Criminal Investigation Division conducted the investigation.
Former Soldier Guilty of Illegal Export of Defense Article and Violating the Arms Export Control ActRead the Press Release
Sold and shipped defense articles including night vision goggles, scopes and tubes through eBay accounts to buyers in the United Kingdom, Poland, and Japan
LOUISVILLE, Ky. – A Former United States Army Soldier, who served in that capacity in Iraq and elsewhere, pleaded guilty today, in United States District Court, to violating the Arms Export Control Act (AECA) and to the Illegal Export of Defense Article, announced United States Attorney John E. Kuhn, Jr.
Defendant Hunter Perry, age 33, of Louisville, Kentucky participated in a conspiracy to sell and export defense articles on the United States Munitions List (USML) to individuals located outside the United States. Specifically, beginning no later than May 2008, and continuing through September 2012, in Jefferson County, Kentucky, in Texas, and elsewhere, Perry and others, falsified customs documents to export night vision goggles, scopes, and tubes, to individuals outside of the United States. Perry was charged by federal information on December 30, 2015.
Further, in order to accomplish the conspiracy, Perry falsified shipping documents to state that he was exporting equipment other than defense articles in order to escape detection of his shipments by the United States. Payments for the equipment were made through PayPal accounts associated with eBay and through bank wire transfers.
According to court records, Perry communicated with email and agreed to ship items and did ship items, without obtaining an export license issued by the Department of State, Directorate of Defense Trade Controls (DDTC), to persons at addresses in the United Kingdom, Poland, and Japan.
Perry further pleaded guilty to four counts of violating the Illegal Export of Defense Article. On April 6, 2011, in Jefferson County, Perry exported a defense article, a D-760 night vision scope, to the United Kingdom, which was a defense article on the USML, without having first obtained from the Department of State a license for such export or written authorization for such export. Perry violated the Illegal Export of Defense Article again on January 12, 2012, when he shipped, from Jefferson County, a defense article, a PAS-23 mini-thermal scope, and on February 28, 2012, exported from the Jefferson County, to the United Kingdom, a defense article, that is a PVS-15 night vision binocular, and again on August 1, 2012, Perry shipped, from Jefferson County, a defense article, a PAS-13 thermal scope to the United Kingdom.
Perry faced a combined sentence of no more than 83 years in prison, a term of supervised release and a fine of no more than $4,250,000.
Perry is scheduled for sentencing before Senior Judge Russell, in Louisville, on May 18, 2016.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by Federal Bureau of Investigation and the Defense Criminal Investigative Service.
Former Soldier Guilty of Illegal Export of Defense Article and Violating the Arms Export Control ActRead the Press Release
LOUISVILLE, Ky. – A Former United States Army Soldier, who served in that capacity in Iraq and elsewhere, pleaded guilty today, in United States District Court, to violating the Arms Export Control Act (AECA) and to the Illegal Export of Defense Article, announced United States Attorney John E. Kuhn, Jr.
Defendant Hunter Perry, age 33, of Louisville, Kentucky participated in a conspiracy to sell and export defense articles on the United States Munitions List (USML) to individuals located outside the United States. Specifically, beginning no later than May 2008, and continuing through September 2012, in Jefferson County, Kentucky, in Texas, and elsewhere, Perry and others, falsified customs documents to export night vision goggles, scopes, and tubes, to individuals outside of the United States. Perry was charged by federal information on December 30, 2015.
Further, in order to accomplish the conspiracy, Perry falsified shipping documents to state that he was exporting equipment other than defense articles in order to escape detection of his shipments by the United States. Payments for the equipment were made through PayPal accounts associated with eBay and through bank wire transfers.
According to court records, Perry communicated with email and agreed to ship items and did ship items, without obtaining an export license issued by the Department of State, Directorate of Defense Trade Controls (DDTC), to persons at addresses in the United Kingdom, Poland, and Japan.
Perry further pleaded guilty to four counts of violating the Illegal Export of Defense Article. On April 6, 2011, in Jefferson County, Perry exported a defense article, a D-760 night vision scope, to the United Kingdom, which was a defense article on the USML, without having first obtained from the Department of State a license for such export or written authorization for such export. Perry violated the Illegal Export of Defense Article again on January 12, 2012, when he shipped, from Jefferson County, a defense article, a PAS-23 mini-thermal scope, and on February 28, 2012, exported from the Jefferson County, to the United Kingdom, a defense article, that is a PVS-15 night vision binocular, and again on August 1, 2012, Perry shipped, from Jefferson County, a defense article, a PAS-13 thermal scope to the United Kingdom.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by Federal Bureau of Investigation and the Defense Criminal Investigative Service.
Ohio Convicted Murderer Pleads Guilty to 2005 Murder of Woman at Fort Knox Military BaseRead the Press Release
Ohio Woman had been missing since 2005
PADUCAH, Ky. – A Toledo, Ohio, convicted murderer pleaded guilty before Senior Judge Thomas B. Russell, in United States District Court, on Friday, February 5, 2016, to a Federal Information charging him with the 2005 murder of a woman at Fort Knox Military Base, announced United States Attorney John E. Kuhn, Jr.
In court, defendant Ernest Otto Smith, 49, admitted that on or about January 7, 2005, he murdered Cathy M. Barnett willfully, deliberately, maliciously, and with premeditation, on the grounds of Fort Knox, within the special territorial jurisdiction of the United States.
According to the plea agreement, on January 3, 2005, Smith robbed and shot and killed James Dillingham in Toledo, Ohio. It is believed Barnett was present during the murder. Shortly after the murder, Smith and Barnett fled Toledo and ultimately headed south to Kentucky in Smith’s van. Smith had formerly lived and worked near Fort Knox.
During the trip to Kentucky Smith decided to murder Barnett because she witnessed the Dillingham murder and could tell the police about the murder. On January 7, 2005, Smith’s van broke down in Kentucky and Smith and Barnett hitchhiked and they were dropped off near Fort Knox. Smith and Barnett walked approximately one quarter of a mile down a service road off the main highway, into a wooded area located on the grounds of Fort Knox, in Meade County, Kentucky. In the wooded area, Smith first attempted to break Barnett’s neck, and then beat her on the head with a tree branch until Smith knew Barnett was dead. Smith left Barnett’s body in the woods and eventually traveled to Tennessee where he was arrested in Nashville on January 21, 2005. In March 2006, Smith was convicted in Ohio of the Dillingham murder and was sentenced to 32 years of imprisonment.
In late 2010, Smith spoke with his former parole officer, Dan Van Vorhis, who asked Smith what happened to Barnett. Over the course of several recorded conversations, Smith explained to Van Vorhis the details of her murder. Smith also identified where Barnett’s remains would be found. The Federal Bureau of Investigation (FBI) searched and found Barnett’s remains on the grounds of Fort Knox, in the wooded area identified by Smith.
As a result of his guilty plea, Smith faces a mandatory sentence of life in prison, and a potential $250,000 fine.Smith was in the custody of the Ohio Department of Prisons. His sentencing before Senior Judge Russell is scheduled for March 22, 2016, at 3:00pm in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation.
Owner of Shuttered Louisville Microwave Popcorn Company Ordered to Pay Restitution for Bank FraudRead the Press Release
LOUISVILLE, Ky. – The owner of the shuttered Preston Farms Popcorn, LLC (Preston) was ordered to pay full restitution and serve a three year period of supervised release, by Chief Judge Joseph H. McKinley Jr., in U.S. District Court this week, for diverting buyers’ payments toward the operation of his business rather than towards the payment of his loan, announced U.S. Attorney John E. Kuhn, Jr.
Kermit W. Highfield, 43, of Louisville, pleaded guilty to a single count of bank fraud, stemming from a business loan from UPS Business Capital Credit (UPS) that was insured by the United States Export-Import Bank (Ex-Im Bank). This loan was an advance on payments due from Preston’s international buyers. Preston defaulted on the UPS loan, and the Ex-Im Bank reimbursed UPS, resulting in a loss of $110,678.74 to the Ex-Im Bank. Highfield has repaid $15,000 of the total loss.
According to the plea agreement, between March 18, 2013 and May 30, 2013, Highfield executed a scheme to defraud UPS. Under the terms of the loan, Preston was required to instruct buyers of the product to transmit payments into a specific BB&T Bank account, and those funds were to be used to pay off the UPS loan. However, Highfield admitted to instructing Preston’s buyers to deposit payments into other bank accounts controlled by Highfield and Preston. The funds were diverted from UPS and used by Highfield to pay for Preston operating expenses.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by United States Export-Import Bank OIG in Washington, D.C.
***
The Ex-Im Bank is the official export credit agency of the United States, and assists in financing the export of U.S. goods and services to international markets. Complaints and reports of waste, fraud, and abuse related to Ex-Im Bank programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at [email protected].
Former Office Manager of Henderson, Kentucky, Law Firm Sentenced to 27 Months in Prison for EmbezzlementRead the Press Release
Ordered to pay $264,867.84 in restitution
Money was used to pay personal expenses and make wire transfers to individuals in South Africa
OWENSBORO, Ky. – The former office manager of a Henderson, Kentucky law firm was sentenced in U.S. District Court yesterday, to 27 months in prison, followed by a three year period of supervised release and ordered to pay full restitution by Chief Judge Joseph H. McKinley, Jr. for embezzling $264,867.84 during a 30-month period, from her former employer, announced United States Attorney John E. Kuhn, Jr.
Krista Kaye Graupner, age 45, of Evansville, Indiana, admitted to committing three counts of wire fraud while employed at the law firm of King, Deep & Branaman (KDB) between June of 2012 and December of 2014.
As office manager, Graupner had access to KDB’s bank accounts and was authorized to write checks and initiate ACH payments out of these accounts. During her guilty plea, on October 21, 2015, Graupner admitted to paying her own personal bills using KDB’s funds.
In October of 2014, Graupner also began wiring money from Henderson to various individuals in South Africa who were part of the scheme. Graupner admitted that she would write checks, either for cash or to herself, drawn upon KDB accounts and then use the cash from the KDB checks to wire the money via Western Union to individuals in South Africa. In perpetuating this crime, Graupner made approximately 200 wire transfers from October 2014 through December 2014.
This case was prosecuted by Assistant United States Attorney Nute A. Bonner and was investigated by the Federal Bureau of Investigation (FBI) and the Henderson Police Department.
Monroe County, Kentucky, Tobacco Farmer Sentenced to Prison Term for Crop Insurance FraudRead the Press Release
Ordered to pay restitution in the amount of $711,958.00
BOWLING GREEN, Ky. - A Monroe County, Kentucky tobacco farmer was sentenced by United States District Judge Greg N. Stivers, to serve eight months in prison followed by a three year term of supervised release and ordered to pay restitution in the amount of $711,958.00 for committing crop insurance fraud, announced United States Attorney John E. Kuhn, Jr.
Tracy E. Dillard, 45, of Fountain Run, Kentucky, aided and abetted by others, previously admitted in court of knowingly making false statements and reports on insurance claims submitted to Producers Agriculture Insurance Company, a company insured by the Federal Crop Insurance Corporation (FCIC).
“The federal crop insurance program ultimately exists to provide a safety net for our farming community,” stated Acting U.S. Attorney John Kuhn. “Fraud undermines the entire program. This U.S. Attorney’s Office is committed to working with our partner federal agencies to ensure that every penny of taxpayer money is fully restored.”
The violations occurred between 2009 and March 10, 2011, in the Western District of Kentucky, including Allen, Barren, Hart and Monroe Counties in Kentucky, and Macon County in Tennessee.
Specifically, in 2009 Dillard had four separate crop insurance policies on four different crops, two in Barren County, and two in Monroe County. Aided and abetted by others, Dillard intentionally overstated crop damage for each crop by forty percent (40%) on a crop insurance claim form, resulting in a loss of $125,339.20.
Additionally, in 2010 Dillard had twelve separate tobacco crop insurance policies on twelve different crops. Dillard, aided and abetted by others, intentionally overstated crop damage by forty percent (40%) for each crop on a crop insurance claim form, resulting in a loss of $504,454.80.
Finally, in 2011 Dillard had a crop insurance policy on a crop located in Allen County. Aided and abetted by others, Dillard intentionally falsified the crop plant date on a crop insurance claim form, resulting in a loss of $82,164.
The FCIC indemnifies insurance companies for crop insurance claims.
For the 2009, 2010, and 2011 policies listed above, Dillard caused fraudulent claims to be submitted to the United States government, through claims made to ProAg and paid by the FCIC, resulting in a $711,958 loss to the United States. Dillard agreed to pay full restitution under the terms of his plea agreement.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the United States Department of Agriculture (USDA) Office of Inspector General (OIG) and the Risk Management Agency, Special Investigation Branch.
Louisville Man Sentenced to 50 Years in Prison Followed by A Lifetime Period of Supervised Release for the Sexual Abuse of A Minor Child and for Sexually Exploiting Ten Minor Children to Produce Visual ImagesRead the Press Release
Sixteen count indictment included forcing a minor child to engage in commercial sex acts with another person
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. announced the 50 year sentence followed by a lifetime period of supervised release today, by Chief District Judge Joseph H. McKinley Jr., of a Louisville man who sexually abused a minor child, forced the minor child to engage in commercial sex acts with another person, and sexually exploited that child and nine other minor children to produce visual images.
Christopher Kosicki, 27, pleaded guilty to 15 charges in a superseding indictment, on July 23, 2015, in U.S. District Court in Owensboro, Kentucky. Further charges included sex trafficking a child under age 14, and aiding and abetting another person to cross a state line with intent to engage in sexual acts with a person who had not attained the age of 12 years. Co-defendant Howard Key Chambers of Oldham County, Kentucky, remains in the custody of the U.S. Marshals Service. Chambers is charged with forcing a minor child to engage in commercial sex acts and engaging in sexually explicit conduct with a minor child to create visual images that can be transported in commerce by any means. Chambers is scheduled for trial in Louisville on April 12th, 2016.
According to the plea agreement, and statements made in court, the criminal activity took place at Kosicki’s Louisville home between September 2012 and September 26, 2014 - when the defendant was arrested through a federal criminal complaint. Kosicki admitted in court to making a 10, then 11-year-old child available to others for sexually explicit activity. Later examination of digital devices and storage media owned by Kosicki revealed his production of sexually explicit images of 10 different children over the course of several years. All of the images were created in Jefferson County, Kentucky.
Law enforcement officials first became aware of Kosicki’s criminal conduct after arresting Raymond Shadburn in Seymour, Indiana, on September 24, 2014, on child exploitation charges. During a post-arrest interview, Shadburn allegedly provided information that led law enforcement to Kosicki’s residence in Jefferson County, Louisville, Kentucky.
Shadburn and Kosicki originally met online when Shadburn responded to a Craig’s List ad placed by Kosicki. In connection with the ad, Shadburn drove from Indiana to Kosicki’s residence in Louisville at least four times beginning in late August, early September 2014. While there, Kosicki made an 11-year-old child available to Shadburn for sexual activity. During one of the visits in September, Shadburn took sexually explicit photographs of the child (Jane Doe 1), in the presence of Kosicki. At least one photo depicted Kosicki and the child. Shadburn took the images with him back to Indiana and later shared the images with other individuals on the Internet (including an undercover police officer in Washington, D.C.). During at least one visit, both men engaged in sexual activity with the child.
In 2013, Kosicki allegedly met co-defendant Howard Key Chambers via Craig’s List. The two communicated online and, eventually, Chambers allegedly travelled from Oldham County, Kentucky, to Louisville, Kentucky, to meet Kosicki at Kosicki’s residence.
Chambers is charged with travelling to Kosicki’s home to engage in sexual activity with the 10-year-old turned 11-year-old child, between six and eight times, from 2013 until August 2014. The two helped each other entice, harbor, provide, obtain, and maintain a person that had not attained the age of 14 years who was caused to engage in commercial sex acts, that is, any sex act, on account of which anything of value is given to and received by any person. On several occasions, Chambers allegedly gave Kosicki money after engaging in sexual activity with the child (age 10 and then 11). On at least one occasion, he (Chambers) is charged with giving money directly to the child after engaging in sexual activity with her. Additionally, on one occasion, Kosicki photographed Chambers allegedly engaging in sexual activity with the child.
This case is being prosecuted by Assistant United States Attorneys Jo E. Lawless and Spencer McKiness and is being investigated by the Indianapolis Police Department, District of Columbia Metro Police, Louisville Metro Police, and the Federal Bureau of Investigation (FBI).
Former Police Officer and School Administrator Sentenced to 48 Months in Prison for Violating Sex Abuse LawsRead the Press Release
LOUISVILLE, Ky. – A Grayson County, Kentucky, former police officer and school administrator was sentenced to 48 months in prison followed by ten years of supervised release today, by Chief District Judge Joseph H. McKinley, for violating federal and state sex abuse laws, announced United States Attorney John E. Kuhn, Jr.
Stephen E. Miller, age 45, pleaded guilty to four counts in a superseding information, on July 30, 2015. Miller pleaded guilty to engaging in abusive sexual contact with three female students and third degree sodomy with a fourth female student. The incidents occurred at Bluegrass Challenge Academy between February and August 2013. Miller is in the custody of the United States Marshall Service.
Miller previously worked as a police officer in Leitchfield, Kentucky. He resigned the position following complaints of inappropriate conduct toward two women. Miller then began working at Bluegrass Challenge Academy, a residential, educational program run by the Kentucky National Guard, located on Fort Knox Military Base. Miller had supervisory authority over the Academy students.
John Smith, who was the director of Bluegrass Challenge Academy during the time, has been indicted for failure to report child abuse.If convicted, he faces a maximum sentence of one year in prison, a fine of up to $100,000, and up to one year of supervised release.
Assistant United States Attorneys Amanda E. Gregory and Stephanie M. Zimdahl are prosecuting the case. The Federal Bureau of Investigation (FBI) with assistance from the Army Criminal Investigation Division conducted the investigation.
Miami Resident Admits Participating in Conspiracy to Burglarize A Kentucky Cigarette WarehouseRead the Press Release
Stole more than $1.5 million in cigarettes from Leitchfield, Kentucky warehouse
LOUISVILLE, KY – United States Attorney John E. Kuhn, Jr. today announced the guilty plea, from a Miami resident, before Chief Judge Joseph H. McKinley, Jr., to federal conspiracy and theft charges stemming from his participation in a warehouse burglary in Leitchfield, Kentucky, in March 2011.
In pleading guilty to the two count federal indictment, Ivan Romero, a/k/a El Negro, 42, admitted that he and others stole more than $1.5 million in cigarettes from the Coremark Cigarette Warehouse in Leitchfield, Kentucky, and that he and others received the stolen cigarettes (which constitute an interstate and foreign shipment of property valued at over $1,000) with the intent to convert the property to their own use.
During the theft, Romero and his co-conspirators gained entry into the warehouse through the roof, disabled the alarm system and loaded the stolen goods into a stolen tractor trailer. Specifically, between March 18, 2011, to March 20, 2011, defendant Camilo Rodriguez-Hernandez rented three hotel rooms in Elizabethtown, Kentucky, where the co-conspirators, who traveled to Kentucky from Miami, Florida, resided during the burglary and theft. Between March 19, 2011, and March 20, 2011, Amuary Villa, Ivan Romero, Amed Villa, and other co-conspirators unloaded a stolen tractor trailer and loaded it with cigarettes. Defendant Romero admitted to providing transportation for the stolen cigarettes and driving them to the New Jersey/New York area.
Romero, a legal permanent resident from Cuba who last resided in Miami, has been serving a state sentence from Florida before being transferred to federal custody. If convicted at trial, Romero could have been sentenced to no more than 15 years in prison for both charges, fined $500,000 and been required to serve three years of supervised release. Romero is scheduled for sentencing before Chief Judge McKinley, on April 19, 2016 in Owensboro, Kentucky.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and the investigation of the Kentucky theft is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the U.S. Drug Enforcement Administration (DEA), Leitchfield and Elizabethtown Police Departments, and New Jersey and Kentucky State Police Departments.
Shepherdsville Woman Guilty of Stealing $243,000 from Bullitt County EmployerRead the Press Release
Kathleen Marie Farias admits using employer’s funds to pay more than $243,000 in personal expenses over five year period
LOUISVILLE, KY – United States Attorney John E. Kuhn, Jr. announced the guilty plea of Kathleen Marie Farias to charges related to the theft of over $243,000 from her Bullitt County employer, before Judge Greg Stivers in U.S. District Court.
Farias, 53, a resident of Shepherdsville in Bullitt County, entered a guilty plea yesterday, to seven counts of wire fraud in the June 17, 2015 indictment. According to the indictment and to facts admitted by Farias in open court, from June 18, 2009 through September 22, 2014, Farias was employed as the office manager for Prestige Plastics Technology LLC, and was responsible for the business’ accounts payable. Farias used funds from the business’ account to make online bill payments of $243,257.06 for her own personal expenses, which included payments to charge cards and mortgage processors.
The court entered an agreed order of restitution setting forth $243,257.06 as the amount Farias is responsible to repay to her former employer.
If Farias had been convicted at trial, the maximum potential penalties were 140 years in prison, a $1,750,000 fine, and a three year period of supervised release.
The case is being prosecuted by Assistant United States Attorney Jason Snyder, and is being investigated by the Federal Bureau of Investigation, Louisville Division.
Farias is scheduled for sentencing before Judge Stivers on April 19 in Louisville, Kentucky.
Louisville Man Charged with Stealing United States Postal Service Parcels from Porches of Metro Louisville ResidencesRead the Press Release
LOUISVILLE, Ky. – A Louisville man was charged this week by federal grand jury indictment, with two counts of theft of United States Postal Service (USPS) parcels, which had been left for collection with other mail matter, on December 3, 2015, announced U.S. Attorney John E. Kuhn, Jr.
Joseph L. Carr, 48, is charged with stealing a Hot Wheels Airbrush Auto Designer Kit from mail left at a home on Larchmont Avenue in Louisville, and stealing a coat, blanket, and rug from mail at another home located on Larchmont Avenue.
According to an Affidavit attached to a Criminal Complaint, Carr was seen by construction workers carrying a package from a Larchmont Avenue home. The workers reported that the male (Carr) opened the package, removed the contents and placed the packaging in a trash can on the street. Carr was later stopped by Louisville Metro Police carrying a Kohl’s merchandise bag, and consented to a search. The Kohl’s merchandise included a black Warm-Tek coat (still in plastic wrapping and bearing a $100.00 price tag), a Sonoma Lifestyle throw blanket (still in plastic wrapping and bearing a $44.99 price tag, and an Estate rug (still in plastic wrapping and bearing a $34.99 price tag). CARR also had a Hot Wheels Airbrush Auto Designer kit (still in box). An opened USPS Priority Mail box was recovered from the garbage can and was addressed to Larchmont Ave in Louisville, KY.
A year prior to Carr’s arrest on these federal charges, Carr was arrested by LMPD for similar charges including multiple counts of mail theft and receiving stolen property which took place on December 4, 2014. According to those charges, several USPS customers had packages stolen from their residences. Several of the customers turned over surveillance videos from their homes showing a male, later identified as Carr, stealing packages. Carr was sentenced for those charges on December 14, 2015.
If convicted at trial, Carr could be sentenced to no more than five years in prison, fined $250,000 and be required to serve one year of supervised release. Carr is currently in the custody of the U.S. Marshals Service.
This case is being prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and is being investigated by the United States Postal Inspection Service and the Metro Louisville Police Department.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Warren County, Kentucky, Man Guilty of Possession, Manufacture and Transfer of Two Explosive Devices (Pipe Bombs)Read the Press Release
BOWLING GREEN, Ky. – A Bowling Green, Kentucky, man pleaded guilty in United States District Court today, before District Judge Greg N. Stivers, to the possession, manufacture and transfer of a firearm, namely an explosive device commonly referred to as a pipe bomb, announced United States Attorney John E. Kuhn, Jr.
Jeremy Oneal Cherry, 38, admitted to the making and possessing two pipe bombs and later transferring one of the devices to another person. Each device involved approximate 5” x 1” PVC pipes, with end caps, with a green pyrotechnic fuse coming out of one endcap and each containing explosive powder.
According to an Affidavit attached to a criminal complaint, Cherry and John English, also from Bowling Green, were arrested on June 27, 2015. Police found a home-made explosive in Cherry’s car that was being driven at the time by English. Cherry admitted to giving the device to English, who according to the affidavit, had offered to buy the device. Further, a later search of Cherry’s home and property resulted in law enforcement finding items used to create the pipe bombs, such as PVC pipe, smokeless powder, and pyrotechnic fuses. . Further, Cherry showed the law enforcement officers a video clip of himself, captured on his smart phone, setting and lighting a fuse on one of the pipe bombs. The video showed the device blowing a wheel and tire 30 feet straight up in the air.
Cherry faces potential combined penalties of 30 years in prison, a $750,000.00 fine and three years of Supervised Release.
Cherry is scheduled for sentencing before Judge Stivers, in Bowling Green, on April 18, 2016, at 10:00 a.m., prevailing local time.
John Michael English, of Bowling Green, Kentucky, is charged in a separate indictment with being a felon in possession of a firearm (that is, the pipe bomb given to him by Cherry).
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless. The United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), in conjunction with the Bowling Green Police Department, conducted the investigation.
Owner of Bowling Green Market Sentenced to 37 Months in Prison for Weapons ChargesRead the Press Release
BOWLING GREEN, Ky. – The owner of a Bowling Green, Kentucky, market was sentenced today in United States District Court, by United States District Judge Greg N. Stivers, to 37 months in prison and three years of supervised release for multiple weapons charges, announced United States Attorney John E. Kuhn, Jr.
Baraa Fadil Aldabse, 41, of Bowling Green, and owner of Noor Market located on Old Morgantown Road, pleaded guilty in United States District Court on August 25, 2015, to possession of an unregistered short barrel shotgun and possession of firearms (including the short barrel shotgun, an SKS assault rifle, a Rohm .38 caliber revolver, and ammunition), by a person convicted of a misdemeanor crime of domestic violence.
According to the plea agreement, Bowling Green Police received information that Aldabse was selling packages of synthetic marijuana from his business. Based on the information, law enforcement officials obtained and executed a search warrant for the market, where several packages of synthetic marijuana were seized as well as a .38 special caliber revolver. Aldabse admitted to selling synthetic marijuana from his business.
Aldabse gave law enforcement officials permission to search his home on Clearview Avenue and admitted to owning the weapons found there. The weapons found and seized from his home included an SKS rifle located in the closet of the back bedroom as well as a loaded magazine, containing 20 rounds of 7.62 x 39 ammunition lying on top of the rifle. The officers also found a sawed-off shotgun next to the SKS rifle. The Harrington Richardson, Model Topper 158, .16 gauge, single shot shotgun, had a modified barrel length of 9¼ inches and an overall length of 14 inches with no visible serial number. The officers located 20 Remington .16 gauge shotgun shells next to the sawed-off shotgun. Additionally, the officers located a black bag which contained 272 rounds of 7.62 x 39 ammunition. The modified Harrington and Richardson .16 gauge shotgun was not registered to Aldabse in the National Firearm Registration and Transfer Record.
On August 31, 2012, Aldabse was convicted of Assault 4th Degree, Domestic Violence (spouse) Minor Injury (Enhanceable) in Warren District Court Case number 12-M-01797, a misdemeanor crime of domestic violence. He had also previously been convicted of trafficking in synthetic marijuana. He is currently charged in Warren Circuit Court with trafficking in synthetic marijuana (a felony due to the fact that it is his second offense) and possession of drug paraphernalia.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation in connection with the Bowling Green Police Department.
Logan County Home Care Giver Sentenced to 24 Months in Prison for Aggravated Identity TheftRead the Press Release
Ordered to pay $56,543.93 in restitution
BOWLING GREEN, Ky. – A Logan County, Kentucky home care giver was sentenced today in U.S. District Court by U.S. District Judge Greg N. Stivers to 24 months in prison, followed by a one year period of supervised release and ordered to pay restitution in the amount of $56,543.93 for committing identity theft announced United States Attorney John E. Kuhn, Jr.
Crystal Hullett, age 39, of Russellville, pleaded guilty to five counts of aggravated identity theft before District Judge Stivers on September 2, 2015.
According to the plea agreement, Hullett was a home care giver to 92-year-old R.W. between June 2012 and January 2014. During that time, Hullett defrauded R.W. of money and property by making unauthorized purchases of personal items and gift cards at various merchants in Russellville, Kentucky by using R.W.’s debit card. Further, Hullett knowingly possessed and used the name, signature, and debit card of R.W. without lawful authority.
During sentencing, the United States moved for the dismissal of counts 1,2,3,4, and 5 of the indictment and agreed that the sentence of 24 months was appropriate. The restitution order of $56,543.93 was due at sentencing.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by United States Secret Service, United States Postal Inspection Service and the Russellville Police Department.
Former Controller at Bowling Green Company Sentenced to 21 Months for Embezzling Nearly $240,000Read the Press Release
BOWLING GREEN, Ky. - The former controller of KY Express, LLC., located in Bowling Green, Kentucky, was sentenced in U.S. District Court today by U.S. District Judge Greg N. Stivers to 21 months in prison, followed by three years of supervised release and ordered to pay restitution in the amount of $238,935.64 announced U.S. Attorney John E. Kuhn, Jr. in custody
Almir Demirovic, 24, of Warren County, Kentucky, pleaded guilty to a nine count federal indictment on August 25, 2015. Demirovic was charged with nine counts of wire fraud related to a scheme to conceal his theft by creating unauthorized automated clearing house payments to himself that appeared similar in amount to other legitimate vendor payments. From January of 2013, until August of 2014, Demirovic admitted to making the unauthorized automated clearing house payments from the bank accounts of his employer, KY Express, LLC, at PNC Bank (payment processing center located in Pittsburgh, Pennsylvania) and BB&T Bank (payment processing center located in Wilson, North Carolina) to his personal bank account.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Federal Bureau of Investigation (FBI).
Kentuckiana Anesthesiologist Guilty of Unlawful Distribution of Controlled Substances, Health Care Fraud, Conspiracy and Money LaunderingRead the Press Release
LOUISVILLE, Ky. – A Kentuckiana anesthesiologist pleaded guilty today in U.S. District Court to charges of unlawful distribution or dispensing of controlled substances, health care fraud, conspiracy and money laundering announced United States Attorney John E. Kuhn, Jr.
Jaime Guerrero, age 48, formerly a medical physician with offices in Louisville, Kentucky, and Jeffersonville, Indiana, pleaded guilty to 31 counts of a 35 count Superseding Indictment before U.S. District Judge Greg N. Stivers.
According to terms of the plea agreement, Guerrero will forfeit the proceeds from these offenses, including his license to practice medicine and real property owned by Guerrero Real Estate Investments, LLC. Further, the defendant will pay $827,000 in victim restitution to nine health care benefit programs. In return, at the time of sentencing, the United States has agreed to recommend a 100 month sentence in prison, followed by a three year period of supervised release.
According to the plea agreement, from November 1, 2009, continuing through January 1, 2013, Guerrero conspired with others to knowingly and intentionally distribute and dispense, schedule II and III controlled substances to patients, without a legitimate medical purpose and beyond the bounds of professional medical practice. Beginning November 1, 2009, and continuing through May 8, 2014, Guerrero admitted to distributing and dispensing Schedule II and III controlled substances to patients (listed in counts 2-26) without a legitimate medical purpose beyond the bounds of professional medical practice. Beginning on or about January 6, 2010, and continuing through September 16, 2011, Guerrero knowingly and intentionally distributed and dispensed, and caused to be distributed and dispensed Hydrocodone, a Schedule III controlled substance, to patient S.O., without a legitimate medical purpose and beyond the bounds of professional medical practice, which resulted in S.O.’s death on or about September 24, 2011.
Guerrero further pleaded guilty to three counts of health care fraud for fraudulently billing various health care benefit programs and for submitting fraudulent claims for patient health care counseling. Specifically, on May 26, 2011, June 15, 2011, and June 22, 2011, Guerrero saw more than 100 patients on each of the dates, by himself, and spent approximately 3 minutes or less with each patient, and fraudulently billed various health care benefit programs, for office visits at a higher code than the service provided. Between July 9, 2010 and July 22, 2010, Guerrero travelled outside of the United States and directed staff personnel to provide group counseling sessions for patients in his absence. The group sessions were then billed as individual counseling sessions, and as if Guerrero personally provided the service. Additionally, between January 1, 2008, and continuing through June 15, 2012, Guerrero falsely and fraudulently submitted over 100 claims to various health care benefit programs for office visits at a higher code than the service provided; for office visits that were not medically necessary or within the course of usual medical practice; submitting claims for services that were not sufficiently documented in the patient’s medical record; and making claims for office visits as though a physician saw the patient, when in fact, a nurse practitioner saw the patient. Guerrero agreed to pay $827,000 in victim restitution to nine health care benefit programs
Finally, Guerrero pleaded guilty to a single money laundering charge for redeeming (paying the taxes) on a building located at 1201 West Wall Street in Jeffersonville, Indiana, with $89,556.25 in cash derived from unlawful activity - the unlawful dispensing and distribution of controlled substances and health care fraud.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), the U.S. Drug Enforcement Administration (DEA), Indiana and Kentucky Medicaid Fraud Control Units, and Louisville Metro Police Department (LMPD).
Former Manager of IBEW Credit Union in Paducah Sentenced to 78 Months in Prison for Embezzling More Than $600,000Read the Press Release
Stolen money used to benefit herself and her friends and family
PADUCAH, Ky. – Debra C. Pyfrom, the former manager of the International Brotherhood of Electrical Workers (IBEW) Local 816 Federal Credit Union, was sentenced yesterday in U.S. District Court by Senior Judge Thomas B. Russell to serve 78 months in prison and pay restitution in the amount of $600,520.16 for committing bank fraud, announced U.S. Attorney John E. Kuhn, Jr.
Pyfrom pled guilty in September of last year to executing a scheme for an unknown period of time, up until she was terminated by IBEW and arrested in July 2014. During that time, Pyfrom admitted to embezzling and stealing money from IBEW and its members for an approximate total loss exceeding $600,000. Pyfrom admitted to using the money for her personal benefit and for the benefit of her daughter, her boyfriend, friends, and family. She did this by manipulating credit union accounts, posting false loan payments, misappropriating cash, and taking out loans in members’ names without their knowledge.
Pyfrom also admitted to stealing money from IBEW credit union members’ accounts to cover her personal bills and those of her daughter, boyfriend and others, who had personal deposit accounts at the credit union. Pyfrom would cover these withdrawals with false, computer entry only deposits.
Further, Pyfrom admitted to issuing loans to herself and to her daughter and then posting false payments on those loans in order to conceal the fraud and make the loans appear current on IBEW’s books.
Lastly, Pyfrom admitted to taking out loans in the names of other IBEW account holders without their knowledge and using that loan money for her own benefit. Again, the balances on these loans were never repaid; rather, Pyfrom would manipulate the entries in the IBEW books in order to falsely show that the loan payments were current.
Due to its insolvency as a result of Pyfrom’s fraud, IBEW was forced into liquidation by the National Credit Union Administration.
This case was prosecuted by Assistant United States Attorney Nute A. Bonner and was investigated by the McCracken County Sheriff’s Office and the Federal Bureau of Investigation.
Former Louisville Teacher Sentenced to 504 Months in Prison for Violating Child Exploitation Laws Including Enticement, Production, Distribution and Possession of Child PornographyRead the Press Release
Defendant met in person with three minors from the Louisville area to engage in sexual activity
Defendant used 16 different minors to produce child pornography using social media
LOUISVILLE, Ky. – The former Louisville teacher and assistant football coach, previously employed by a parochial high school, was sentenced today in U.S. District Court by United States District Judge David J. Hale, to 504 months in prison and a lifetime of supervised release, for violating child exploitation laws, announced United States Attorney John E. Kuhn, Jr.
Patrick Newman, age 33, previously pleaded guilty to 16 counts of producing child pornography, one count of online enticement of a minor, one count of transporting child pornography, and one count of possessing child pornography. The charges involved 16 different victims, all boys. The ages of the children ranged from 12 to 17. Newman engaged in sexual activity with three minors from the Louisville area and recorded the sexual activity with one of the minor aged victims. According to information exchanged during online communications, the remaining victims are from Texas, Ohio, Indiana, Colorado, North Carolina, New York, Utah, Oregon, and the United Kingdom.
“This significant sentence reflects the severity of Mr. Newman’s crimes and is an appropriate punishment in light of the terrible harm he caused the multitude of vulnerable 12 to 17 year-old victims, their families, and a high school community,” stated U.S. Attorney John Kuhn. “Protecting our children will always be the highest priority of this office, and we will continue to prosecute those who exploit children as vigorously as the law allows.”
According to the Affidavit attached to a previous criminal complaint, the investigation started in early 2015, when the National Center for Missing and Exploited Children received a CyberTip from Twitter, Inc. regarding the upload of child pornography materials to VINE (a video sharing website owned by Twitter) from the same IP address in Texas, between 12-28-2014 and 12-30-2014. Law enforcement officials in Texas identified the child depicted in the images and later identified Newman as an adult who had been communicating with the child and obtaining sexually explicit images of the child.
Law enforcement officials executed a federal search warrant on Newman’s Louisville home in early June. Homeland Security Investigations (HSI) within the Department of Homeland Security (DHS) arrested Newman that same day. During a recorded, post-Miranda interview, Newman admitted a sexual interest in boys 13-17 years of age. He also admitted to communicating with minors through social media tools/applications such as KIK, VINE, Snapchat and Topix for the past two years.
Forensic examination of Newman’s cellular telephone revealed electronic communications between him and many other individuals involving the sexual exploitation of minors. Based on representations during those communications, Newman solicited and obtained sexually explicit images from 16 boys under the age of 18. He gave specific directions to some of the children as to what he wanted them to do, record, and send to him. With one child, he specifically asked for sadistic images. Newman met at least three boys in person and one (age 15) on several occasions. Newman and the minor boy engaged in sexual activity which Newman recorded – using his phone. He told other people, via social media, about his sexual activities with the boy and transported/distributed the videos to them. He also shared other images and videos of child pornography with people via social media. According to a review of his phone, he transported/distributed child pornography to 56 people, in addition to the 16 minors. Also, a review of Newman’s “Dropbox” account, found that he possessed 87 videos depicting child pornography involving boys.
Newman has been in federal custody since his arrest on June 1, 2015.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The investigation was led by HSI Louisville Division of the Department of Homeland Security, with assistance from state, local, and federal law enforcement entities in Kentucky, Indiana and Texas.
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."
Former Pastor of Louisville Parish Guilty of Accessing and Viewing Child Pornography over the InternetRead the Press Release
LOUISVILLE, Ky. – The former pastor of a Louisville, Kentucky, parish pleaded guilty before U.S. District Court Judge David J. Hale today, in United States District Court, to charges of violating federal child exploitation laws, announced United States Attorney John E. Kuhn, Jr.
Stephen A. Pohl, age 57, voluntarily surrendered himself to the custody of the United States Marshals Service today, and will remain in custody until sentencing before Judge Hale on March 29, 2016 at 1:30 pm.
Pohl pleaded guilty to a single charge of knowingly accessing, via the Internet, with intent to view material that contained images of child pornography between January and August 2015. Pohl was initially charged with the same offense by criminal complaint on August 21, 2015. The complaint was filed after law enforcement officials executed two federal search warrants on August 12, 2015, in the work and living areas used by Pohl in the parish office and rectory of St. Margaret Mary Catholic Community, located at 7813 Shelbyville Road, in Louisville, Kentucky.
The investigation began after a child told his mother that Pohl had taken pictures of him that made him feel “weird.” When the child’s parents confronted Pohl about the pictures of their son, they saw similar pictures of another child and reported the matter to law enforcement. Law enforcement officials obtained the search warrants based on the inappropriate images. It is important to note that no child pornography images of Saint Margaret Mary school children were found on the digital devices seized and examined as a result of the search warrants. All child pornography evidence and the charge in this case relate to Pohl’s online searches and viewing.
Law enforcement officials arrested Pohl in Indian Rocks Beach, Florida, on Friday evening, August 21, 2015. Pohl was then held at the Pinellas County Jail until his transfer to the custody of the United States Marshals Service. He appeared in United States District Court for the Western District of Kentucky on September 2, 2015.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The Federal Bureau of Investigation in conjunction with Louisville Metro Police Department’s Crimes Against Children Unit conducted the investigation.
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."