Western District of Kentucky
Press releases recorded for this federal judicial district.
Former Deputy at Bullitt County, Kentucky, Sheriff’s Office Indicted for Civil Rights ViolationsRead the Press Release
Deputy Sheriff Allegedly Charged a Bullitt County, Kentucky, Resident with Crimes He Did Not Commit
A former deputy with the Bullitt County, Kentucky, Sheriff’s Office was charged today by federal grand jury indictment with two counts of willfully depriving an arrestee of his constitutional rights under color of law, announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky.
The indictment alleges that Matthew Corder, 51, of Louisville, Kentucky, arrested D.B., a Bullitt County resident, on Oct. 22, 2014, without probable cause to believe that D.B had committed a crime and that Corder unlawfully entered D.B.’s home to effect the arrest.
The indictment further alleges that on Oct. 23, 2014, Corder charged D.B. with two crimes that he did not commit, and included false and misleading information in the charging document that caused D.B. to be detained in jail pending resolution of the charges. The charges, disorderly conduct and fleeing and evading, were eventually dismissed.
If convicted, Corder faces a maximum statutory punishment of 10 years of imprisonment on the first charge and one year of imprisonment on the second charge.
An indictment is merely an accusation, and Corder is presumed innocent unless proven guilty.
This case is being investigated by the FBI’s Louisville Division, and is being prosecuted by Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky, and Trial Attorney Christopher Perras of the Civil Rights Division’s Criminal Section.
Corder Indictment
Former Deputy at Bullitt County Sheriff’s Office Indicted for Civil Rights ViolationsRead the Press Release
Deputy Sheriff Allegedly Charged a Bullitt County Resident with Crimes He Did Not Commit
WASHINGTON – A former deputy with the Bullitt County, Kentucky, Sheriff’s Office was charged today by federal grand jury indictment with two counts of willfully depriving an arrestee of his constitutional rights under color of law, announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky.
The indictment alleges that Matthew Corder, 51, of Louisville, Kentucky, arrested D.B., a Bullitt County resident, on Oct. 22, 2014, without probable cause to believe that D.B had committed a crime and that Corder unlawfully entered D.B.’s home to effect the arrest.
The indictment further alleges that on Oct. 23, 2014, Corder charged D.B. with two crimes that he did not commit, and included false and misleading information in the charging document that caused D.B. to be detained in jail pending resolution of the charges. The charges, disorderly conduct and fleeing and evading, were eventually dismissed.
If convicted, Corder faces a maximum statutory punishment of 10 years of imprisonment on the first charge and one year of imprisonment on the second charge.
An indictment is merely an accusation, and Corder is presumed innocent unless proven guilty.
This case is being investigated by the FBI’s Louisville Division, and is being prosecuted by Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky, and Trial Attorney Christopher Perras of the Civil Rights Division’s Criminal Section.
Former Owner of Mortgage Lending Company Sentenced to 42 Months in Prison for Bank FraudRead the Press Release
Ordered to pay $10,689,587 restitution
Submitted fraudulent funding requests for nonexistent mortgage loans
LOUISVILLE, Ky. – The former owner of an Orange County, California mortgage lending company was sentenced to 42 months in prison today, by Chief District Judge Joseph H. McKinley Jr., and ordered to pay restitution in the amount of $10,689,587 for devising a scheme to defraud National City Bank of $12,744,678 of money under its control, by submitting fraudulent funding requests for nonexistent mortgage loans announced United States Attorney John E. Kuhn, Jr.
In 2007 and 2008, Brady Bunte owned and operated Trust One Mortgage, a mortgage lender located in Orange County, California. Trust One Mortgage funded mortgages by maintaining a warehouse line of credit with various banks, including National City Bank. National City Bank was a federally insured financial institution. Its warehouse lending offices were located in Louisville, Kentucky. As a warehouse lender, National City Bank provided revolving, short-term loans, known as warehouse lines of credit, to mortgage lenders.
In 2007 and 2008, Trust One Mortgage maintained a revolving warehouse line of credit with National City Bank to fund mortgages. In order to obtain funding from National City Bank for a particular mortgage, Trust One Mortgage submitted a funding request to National City Bank’s warehouse lending offices in Louisville, Kentucky. Once National City Bank received the funding request via fax or electronic request, it transferred the funds to the account specified by Trust One Mortgage in the funding request. National City Bank required Trust One Mortgage to pay off each specific loan within a set number of days. As part of its business, Trust One Mortgage sold or attempted to sell the individual mortgages to third-party investors.
From March 2007 through November 2008, Bunte caused Trust One to submit fraudulent funding requests on its warehouse line of credit to National City Bank. The fraudulent funding request caused National City Bank to incur a loss of $12,744,678.16. Bunte made approximately $2,000,000 in payments to National City Bank which reduced the restitution owed to $10,689,587.
Bunte was charged in a sealed indictment on September 18, 2014 and arraigned on the charge on September 29, 2014, in U.S. District Court located in Santa Ana, California.
This case was prosecuted by Assistant United States Attorneys Bryan Calhoun and Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Army Sergeant Sentenced to Prison for Conspiracy in Afghanistan Bribery SchemeRead the Press Release
An Army sergeant was sentenced to 24 months in prison today for his role in a conspiracy to commit bribery in connection with supply contracts while serving in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens, Commander of the Air Force Office of Special Investigations (OSI), made the announcement.
Ramiro Pena Jr., 43, of Fort Campbell, Kentucky, previously pleaded guilty to a one-count information charging him with conspiracy to commit bribery. In imposing sentence today, Senior U.S. District Judge Thomas B. Russell of the Western District of Kentucky also ordered Pena to forfeit $100,000, a Harley Davidson motorcycle and a Rolex watch.
From January 2008 through September 2009, Pena worked as a U.S. Army sergeant first class at the Humanitarian Assistance (HA) Yard at Bagram Airfield in Afghanistan. In connection with his guilty plea, Pena admitted that he and his supervisor, Army Master Sergeant Jimmy W. Dennis, were responsible for contracting with local vendors to purchase supplies to support humanitarian relief in Afghanistan, and they awarded approximately 217 such contracts totaling roughly $30,760,255. In return, Pena and Dennis received money and jewelry from some of the vendors. Specifically, Pena admitted that he received from the vendors, through Dennis, a Rolex watch and $100,000 in total bribe payments.
Pena admitted that he sent approximately $22,000 of the cash to his family in Kentucky, spread among numerous greeting cards to avoid drawing attention to the thickness of any particular envelope. Pena also used the bribe money to pay his family’s personal expenses both in Afghanistan and in the United States to purchase a Harley Davidson motorcycle.
Dennis also previously pleaded guilty in the Western District of Tennessee to conspiracy to launder bribe payments and was sentenced to 41 months in prison and ordered to forfeit $115,000.
This case was investigated by the SIGAR, FBI’s Washington Field Office, CID, DCIS and OSI. The case was prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nute A. Bonner and Amy Sullivan of the Western District of Kentucky.
Army Sergeant Sentenced to Prison for Conspiracy in Afghanistan Bribery SchemeRead the Press Release
WASHINGTON – An Army sergeant was sentenced to 24 months in prison today for his role in a conspiracy to commit bribery in connection with supply contracts while serving in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens, Commander of the Air Force Office of Special Investigations (OSI), made the announcement.
Ramiro Pena Jr., 43, of Fort Campbell, Kentucky, previously pleaded guilty to a one-count information charging him with conspiracy to commit bribery. In imposing sentence today, Senior U.S. District Judge Thomas B. Russell of the Western District of Kentucky also ordered Pena to forfeit $100,000, a Harley Davidson motorcycle and a Rolex watch.
From January 2008 through September 2009, Pena worked as a U.S. Army sergeant first class at the Humanitarian Assistance (HA) Yard at Bagram Airfield in Afghanistan. In connection with his guilty plea, Pena admitted that he and his supervisor, Army Master Sergeant Jimmy W. Dennis, were responsible for contracting with local vendors to purchase supplies to support humanitarian relief in Afghanistan, and they awarded approximately 217 such contracts totaling roughly $30,760,255. In return, Pena and Dennis received money and jewelry from some of the vendors. Specifically, Pena admitted that he received from the vendors, through Dennis, a Rolex watch and $100,000 in total bribe payments.
Pena admitted that he sent approximately $22,000 of the cash to his family in Kentucky, spread among numerous greeting cards to avoid drawing attention to the thickness of any particular envelope. Pena also used the bribe money to pay his family’s personal expenses both in Afghanistan and in the United States to purchase a Harley Davidson motorcycle.
Dennis also previously pleaded guilty in the Western District of Tennessee to conspiracy to launder bribe payments and was sentenced to 41 months in prison and ordered to forfeit $115,000.
This case was investigated by the SIGAR, FBI, CID, DCIS and OSI. The case was prosecuted by Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nute A. Bonner and Amy Sullivan of the Western District of Kentucky.
New Albany, Indiana Man Sentenced to 30 Months in Prison for Interstate Transportation for ProstitutionRead the Press Release
Drove women from Indiana to Louisville to perform commercial sex acts
LOUISVILLE, Ky. –United States Attorney John E. Kuhn, Jr. today announced the 30-month prison sentence of a New Albany, Indiana, man who previously pleaded guilty to charges of interstate transportation for prostitution, by Chief Judge Joseph H. McKinley, Jr. in U.S. District Court.
David McNeary, age 34, pleaded guilty to three charges in a grand jury indictment on August 3, 2015. He was charged by grand jury indictment on May 20, 2015, and was arrested Friday, May 22, 2015, in Jeffersonville, Indiana. McNeary was placed on home detention with work release.
According to the plea agreement, between January 2014 and March 2014, McNeary, knowingly transported four different adult females during at least three different trips from Indiana to Kentucky, with the intent that they engage in prostitution.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Louisville Resident and Former Volunteer Football Coach Sentenced to 87 Months in Prison for Child Pornography ChargesRead the Press Release
LOUISVILLE, Ky. – A Louisville resident and former volunteer football coach at Jefferson County Catholic schools was sentenced today in U.S. District Court by Senior Judge Thomas B. Russell to 87 months in prison, followed by 10 years of supervised release, for child pornography charges, announced U.S. Attorney John E. Kuhn, Jr.
Raymond A. Nowacki, age 51, pleaded guilty on July 27, 2015, to a two-count federal indictment charging him with possessing and transporting child pornography by way of a computer. Nowacki remains in the custody of the U.S. Marshals Service.
According to the plea agreement, On November 24, 2013 a Task Force Officer with the FBI was investigating Kentucky computers that were actively sharing previously-identified child pornography on the Internet. The IP address was tracked to Nowacki’s Louisville residence. On October 31, 2014, the FBI executed a search warrant at Nowacki’s residence and seized a laptop computer. A forensic review of the laptop revealed several images and videos of child pornography. At the time, Nowacki admitted to downloading child pornography and watching videos of child pornography on his laptop computer. Further, Nowacki admitted that he conducted searches for “teenaged boys” and “teenaged girls” and had been interested in pornography since 2000.
This case was investigated by Assistant United States Attorney A. Spencer McKiness and was investigated by the Federal Bureau of Investigation (FBI) and Louisville Metro Police.
Former Army Energy Program Manager at Fort Knox Guilty of Violating Conflict of Interest LawsRead the Press Release
LOUISVILLE, Ky. - Gary Thomas Meredith, age 68, of Leitchfield, Kentucky, pleaded guilty yesterday in Federal District Court in Louisville, Kentucky, to violating conflict of interest laws. After one day of trial, Meredith, a retired federal employee, admitted that while he was a federal employee he was personally and substantially involved in the creation of a contract in which he had a direct financial interest announced United States Attorney John E. Kuhn, Jr.
For over 20 years Meredith was the Energy Manager at Fort Knox. As the Energy Manager, Meredith was responsible for developing and implementing energy savings measures at Fort Knox. As part of those duties, Meredith had worked closely Nolin Rural Electric Cooperative Corporation (Nolin) on nearly 100 energy conservation projects, worth over $250 million.
Due to an increasing work load, in 2005 Fort Knox began to consider developing a contractor position, called a Resource Efficiency Manager (REM), to perform the same duties as the Energy Manager, and to work in tandem with the Energy Manager. The REM was going to be hired through Nolin. Gary Meredith was interested in retiring and becoming the REM after his retirement, and in April 2005 he sent emails to Nolin and another company in which he discussed working for them as the REM at Fort Knox. In one email, Meredith, discussing the REM position, stated “have considered doing it myself . . . retire (and I can), and come back on Monday as a REM, IN THE SAME CHAIR, probably same office and be off the Government rolls.” In a subsequent emails Meredith stated “It’s about money.”
While he was still a federal employee, Meredith reached an agreement with Nolin that he would work for Nolin as a REM contractor when he retired. Fort Knox officials were unaware of Meredith’s arrangements with Nolin and Meredith’s interest in the REM position. In October 2005 Meredith began drafting the documents necessary to create the REM position, and in September 2006 Meredith secretly misappropriated over $582,000 to provide future funding for the REM position. In December 2006, while still a federal employee, Meredith completed all of the Fort Knox documents necessary to create the REM position, and he also created Nolin’s proposal for the REM position. Meredith also negotiated the pricing of the REM position with Nolin on behalf of Fort Knox, even though he already had an arrangement with Nolin that he was going to be the REM when he retired.
In July 2007 Meredith obtained an ethics opinion from a Fort Knox ethics advisor which stated that Meredith could work for Nolin as a REM contractor. The ethics advisor was unaware that Meredith had a personal financial interest in the REM position dating back to April 2005, that Meredith had misappropriated over $582,000 to fund the REM position, and that Meredith had prepared Nolin’s proposal. Meredith retired from the Army on August 31, 2007, and became Nolin’s REM on October 1, 2007. Meredith was earning over $80,000 per year when he retired, but earned over $165,000 per year as the REM.
After Meredith became the REM, he instructed Nolin to intentionally overbill Fort Knox for natural gas, even though the contract between Nolin and Fort Knox set the contract price and did not permit any additional billings. Nolin billed Fort Knox as instructed, and Meredith approved Nolin’s invoices for payment, resulting in over $900,000 in overbillings to Fort Knox.
After Meredith became the REM he also began invoicing in advance for his REM salary. For example, in October 2009 he invoiced Nolin for one year of salary in advance, over $177,000. Nolin paid Meredith’s salary in advance, even though Nolin employees were unaware of any other Nolin employee or contractor who was paid in advance. Nolin then immediately charged those costs to Fort Knox and Meredith approved Nolin’s invoices for payment, even though Meredith knew that Nolin could not legally require Fort Knox to pay for services in advance. As a result of these advance payments, Fort Knox lost thousands of dollars of interest.
Meredith’s guilty plea brought to a close a five and a half year criminal investigation of the Fort Knox Energy Program. On September 8, 2014, the Department of Defense, Office of the Inspector General (OIG), published the results of an audit of the Fort Knox Energy Program Meredith oversaw prior to his retirement. In the audit, the OIG found that Fort Knox had improperly awarded and administered over $250 million in energy-savings projects with Nolin. The report found that Fort Knox failed to establish internal controls, failed to determine whether the government paid fair and reasonable prices, and “spent millions on projects that may not have achieved sufficient energy savings.” http://www.dodig.mil/reports.html/Article/1119054/fort-knox-and-the-army-need-to-improve-internal-controls-for-utility-energy-ser/
On October 1, 2014, Matthew Bowman, a former Ft. Knox ethics attorney and procurement fraud advisor, pleaded guilty to providing a false document to Defense Criminal Investigations Service (DCIS) Special Agent Jared Camper in 2010 in a failed attempt to shut down the investigation into Meredith. Bowman was sentenced to one year of probation, and was subsequently debarred from working on any government contracts.
On April 9, 2015, Nolin and the United States entered into a Non-Prosecution Agreement in which Nolin agreed to pay over $7.6 million in civil penalties and forfeitures resulting from its business dealings with Meredith and Fort Knox.
The case was investigated by the Defense Criminal Investigative Service, Dayton Resident Agency. The Army Criminal Investigations Command, Columbus Resident Agency, the Defense Contract Audit Agency, also assisted with the investigation. The case was prosecuted by Assistant United States Attorneys David Weiser and Marisa Ford. Meredith is scheduled for sentencing on March 9, 2016.
Warren County, Kentucky, Resident Sentenced to 41 Months in Prison for Scheming with Others to File False Tax Returns in Order to Obtain Fraudulent Tax RefundsRead the Press Release
Ordered to pay $731,293.52 restitution
BOWLING GREEN, Ky. – A resident of Bowling Green, Kentucky, was sentenced this week, by U.S. District Judge Greg N. Stivers, to 41 months in prison and ordered to pay restitution in the amount of $731,293.52 for mail fraud and for entering into an agreement to defraud the Internal Revenue Service (IRS) by obtaining the payment of fraudulent claims, announced United States Attorney John E. Kuhn, Jr.
According to the plea agreement, Fernando Diaz Herrera conspired with others between June 23, 2010, and August 8, 2012 to defraud the IRS and U.S. Department of Treasury, by obtaining false claims. Specifically, Herrera paid Mexican Nationals, who lived outside the United States, for their means of identification, including birth certificates, immunization records and voter cards. The defendant and others then used these documents to obtain Individual Taxpayer Identification Numbers (ITIN). Herrera then used the ITINs to prepare and file fraudulent federal income tax returns – which caused federal income tax refunds to be dispersed.
Herrera admitted to cashing the fraudulent refund checks at financial institutions and businesses in Kentucky. Further, for the purposes of executing the scheme, Herrera admitted to mail fraud when he caused a letter providing a falsely obtained ITIN to be sent from the IRS office in Austin, Texas, to an address in Bowling Green.
Herrera was charged by grand jury indictment, along with co-defendants Maria Chavez Salazar and Julio Ramos, on December 10, 2014.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the United States Secret Service.
Former Employee of the Scottsville Baptist Church Pleads Guilty to Embezzling More Than $270,000 to Pay for Personal ExpensesRead the Press Release
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. announced the guilty plea of an Allen County, Kentucky woman before U.S. Magistrate Judge H. Brent Brennenstuhl, yesterday, to three counts of wire fraud, for embezzling $274,846 from her former employer, the Scottsville Baptist Church.
According to the plea agreement, Patricia 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.
According to the plea agreement, at sentencing, Barlow will pay $274,846 in restitution, is liable to the court for a special assessment in the amount of $300 and the United States has agreed to recommend a sentence of imprisonment at the lowest end of the applicable guideline range.
Sentencing is scheduled before U.S. District Judge Greg N. Stivers on February 22, 2016, at 10:00am, in Bowling Green.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the United States Secret Service and Scottsville (Kentucky) Police Department.
Three Louisville Men Charged with Possession of A Large Heroin QuantityRead the Press Release
Drugs were packaged for distribution, more than $100,000 seized
LOUISVILLE, Ky. – Three Louisville men were charged this week by grand jury indictment with aiding and abetting and conspiring to possess with the intent to distribute heroin and methamphetamine announced United States Attorney John E. Kuhn, Jr.
Oscar Portillo, age 39, Pedro Abarca, age 23, and Jose Luis Madrigal II, age 24, residing on Bishop Lane, in Louisville, are in the custody of the United States Marshal Service.
They were arrested and charge separately by criminal complaint on October 30, 2015. According to the complaint, on October 30, 2015, in Jefferson County, Kentucky, the defendants knowingly and intentionally possessed with intent to distribute heroin, a Schedule I controlled substance.
Further, on October 30, 2015, federal officers and others executed a state search warrant at 3921 Bishop Lane in Louisville. During the execution of the warrant, officers seized a large quantity of heroin, packaged for distribution, as well as more than $100,000 in United States currency, an assault rifle, and a loaded handgun. The three defendants lived at the residence, giving them direct access to and control over the contraband.
If convicted at trial, the defendants face a mandatory minimum sentence of ten years in prison for each charge, a possible fine of up to $10,000,000 and ordered to serve a ten year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the Federal Bureau of Investigation (FBI) and Louisville Metro Police.
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The charge of a person by Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Sex Offender Living on Ft. Campbell Military Base SentencedTo 25 Years in Prison for the Production of Child PornographyRead the Press Release
PADUCAH, Ky. – Kevin Alan Lewis, a civilian formerly residing on Ft. Campbell, Kentucky military base, was sentenced to 25 years in prison, followed by a life sentence of supervised release by Senior Judge Thomas B. Russell, in U.S. District Court on November 19, 2015, for the offense of production of the sexually-explicit image of a minor, announced United States Attorney John E. Kuhn, Jr.
“Protecting the young and most vulnerable of our community is a priority of the Department of Justice and my office,” stated U.S. Attorney Kuhn. “The 25 year sentence is a just outcome as there is no parole in the federal system.”
According to the plea agreement filed July 21, 2015, Lewis admitted that on or about March 10, 2014, he persuaded and used an 11-year old male to photograph his (the minor’s) genitals, and then transmit that image to Lewis through the Internet, a facility of interstate commerce, with an electronic device. In addition, the photographic image was produced using materials that had been mailed, shipped, or transported in interstate or foreign commerce. The persuasion and use of the minor to produce the explicit image occurred on the Fort Campbell, Kentucky military base. According to three of five charges in a Superseding Indictment which were dismissed, Lewis was a registered sex offender in Christian County, Kentucky based on a 2003 conviction for Child Molestation in Georgia.
This case was prosecuted by Assistant United States Attorneys David Sparks and Marisa Ford, and was investigated by the Federal Bureau of Investigation with the assistance of the United States Army Campbell Criminal Investigation Detachment (CID) at Fort Campbell.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Hardin County and Grayson County, Kentucky Bank Robbers Sentenced to Prison TermsRead the Press Release
LOUISVILLE, Ky. – A Hardin County, Kentucky, man and a Grayson County, Kentucky, man were sentenced today by Senior Judge Charles R. Simpson III, to multiple years in prison for their roles in the December 23, 2014 robbery of the Westport Bank in Glendale, Kentucky announced United States Attorney John E. Kuhn, Jr.
Leonard Duane Sisk, age 55, of Cecilia, in Hardin County, Kentucky, was sentenced to 33 months in prison, followed by three years of supervised release and ordered to pay a $100 fine. Justin Matthew Collinge, age 33, of Leitchfield, in Grayson County, Kentucky, was sentenced to 30 months in prison, followed by a three year period of supervised release and ordered to pay a $100 fine. They were both ordered to pay restitution. Sisk was ordered jointly and severally liable for the full stolen amount of $8,815.00 and Collinge was ordered jointly and severally liable for half the stolen cash in the amount of $4,407.00.
Both defendants pleaded guilty to the single charge of bank robbery by force or violence on June 26, 2015 in U.S. District Court. Both defendants remain in the custody of the U.S. Marshals Service.
According to the plea agreements, on December 23, 2014, defendant Sisk, knowingly aided and abetted by defendant Collinge, who acted as the getaway driver, robbed the West Point Bank. Sisk admitted to wearing a disguise while inside the bank, to demanding money from the teller, and to pointing a toy pistol at the teller which was painted black. The teller handed Sisk $8,815.00. Collinge admitted to driving a vehicle provided by Sisk, to the bank and to waiting for the robbery to occur, before acting as the getaway driver subsequent to the robbery.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Federal Bureau of Investigation (FBI) with assistance from the Kentucky State Police.
Former Treasurer of Henderson, Kentucky, Church Charged with Embezzling FundsRead the Press Release
BOWLING GREEN, Ky. – The former treasurer of Greater Norris Baptist Church, located in Henderson County, Kentucky, was charged by grand jury indictment this week, with eleven counts of wire fraud announced United States Attorney John E. Kuhn, Jr.
According to the indictment, Delanie L. Tillman, of Henderson County, devised a scheme to defraud and obtain money and property by means of false pretenses, from the Greater Norris Baptist Church, between November 23, 2010 and June 5, 2014.
Specifically, Tillman is charged with making unauthorized wire transfers and writing unauthorized checks to pay for personal expenses using the church’s funds for a loss of $9,764.24.
If convicted at trial, Tillman could be sentenced to no more than 20 years in prison, ordered to pay a fine of up to $250,000 and serve a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation.
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The charging of a person by a Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty
Fort Campbell, Kentucky, Resident Guilty of First Degree Manslaughter Resulting from Child AbuseRead the Press Release
LOUISVILLE, Ky. – A Fort Campbell, Kentucky, woman pleaded guilty today before Senior United States District Judge Thomas B. Russell to a Superseding Information charging her with first degree manslaughter in the death of an infant whom she was babysitting in December 2013, announced United States Attorney John E. Kuhn, Jr.
Sheilla E. Linares, age 22, is in the custody of the United States Marshals Service and will be sentenced in Louisville on February 24, 2016 at 11:45 a.m.
Linares, pleaded guilty to first degree manslaughter in the December 7, 2013 death of T.R.C., Jr.
According to the Plea Agreement, Linares 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 were also 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.
According to the Plea Agreement, Linares will be sentenced to 18 years in prison followed by a three-year period of Supervised Release. She faces a fine of up to $250,000.00. There is no parole in the federal system.
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.
Toledo, Ohio, Felon Charged with 2005 Murder at Fort Knox Military BaseRead the Press Release
LOUISVILLE, Ky – A Toledo, Ohio, felon who is currently in prison for an aggravated murder conviction, was charged today by federal Information with one count of murder, which occurred in 2005, on the grounds of Fort Knox Military Base, announced U. S. Attorney John E. Kuhn, Jr.
According to the Information, on or about January 7, 2005, in the Western District of Kentucky, Meade County, Kentucky, the defendant, Ernest Otto Smith, age 49, 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.
If convicted at trial, Smith could be sentenced to no less than life in prison and fined $250,000.Smith is currently in the custody of the Ohio Department of Prisons, and is an inmate at the Ely, Nevada, State Prison. A date for his initial appearance has not been scheduled.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation.
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The charge of a person by an Information is an accusation only and that person is presumed innocent until and unless proven guilty.
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Franklin, Kentucky, Physician Charged with Illegal Distribution of Controlled SubstancesRead the Press Release
Allegedly prescribed opiate pain medications outside the course of professional medical practice and without a legitimate medical purpose.
BOWLING GREEN, Ky. – A Franklin, Kentucky, physician was recently charged by federal Information with the illegal distribution of controlled substances by way of prescribing opiate pain medications outside of the course of professional medical practice and without a legitimate medial purpose, announced U.S. Attorney John E. Kuhn, Jr.
Roy D. Reynolds, a doctor practicing in Franklin, Kentucky, in Simpson County, was charged by federal Information on November 10, 2015 in Bowling Green. According to the Information, between February 2009 and April 2011, defendant Reynolds knowingly and intentionally prescribed oxycodone, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, to J.H. outside the course of professional medical practice.
Further, between July 2010 and December 2011, Dr. Reynolds is charged with repeatedly prescribing hydrocodone, a Schedule III controlled substance at the time, and Xanax and clonazepam, Schedule IV controlled substances, to J.R., outside the course of professional medical practice and without a legitimate medical purpose.
If convicted at trial, Reynolds could be sentenced to no more than 30 years in prison, followed by a three year period of supervised release and fined $1.5 million.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI) and Kentucky State Police.
Henderson County, Kentucky, Man Sentenced to Ten Years in Prison for Human TraffickingRead the Press Release
Recruited minors through a social networking website to engage in commercial sex acts
OWENSBORO, Ky. – A Henderson County, Kentucky, man was sentenced today in U.S. District Court by Chief Judge Joseph H. McKinley Jr., to ten years in prison after pleading guilty to human trafficking for recruiting two minors to engage in commercial sex acts, announced U.S. Attorney John E. Kuhn, Jr.
“Prosecution of those who exploit the young and vulnerable in our community is a top priority of this Office,” stated U.S. Attorney Kuhn. “We know that every instance of human trafficking forces the victims into a crucible of suffering. We also know this crime is occurring far more than it’s being reported. I hope today’s sentence not only sends a message to potential traffickers, but also shines a light on this underreported and heinous crime.”
According to the plea agreement, beginning in March 2014, defendant Jathar Williams, who was then 31 years old, made contact with a female who was then 15 years old, through Tagged, a social networking website. Williams arranged to meet the 15-year-old female and her 17-year-old female friend. Williams picked them up in Evansville, Indiana, and drove them to his residence in Henderson and told the minor females he could help them make between $700 and $800 a day performing commercial sex acts.
Williams admitted that between March 16, 2014 and March 21, 2014, he drove the two minor females to the Sugar Creek Inn in Henderson where he arranged for men to come to the hotel to engage in sex acts with the two minor females in exchange for money.
Williams admitted that he knowingly recruited, enticed, harbored, transported, provided, obtained, and maintained by any means, the two minor females, who had not attained the age of 18 years, and caused the minors to engage in commercial sex acts.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI) and the Henderson, Kentucky Police Department.
Former Employee of the Scottsville Baptist Church Charged with Embezzling More Than $270,000 to Pay for Personal ExpensesRead the Press Release
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. announced the recent charge by Information of an Allen County, Kentucky woman with three counts of wire fraud for embezzling more than $270,000 from her former employer, the Scottsville Baptist Church.
According to the charges, Patricia 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 alleged scheme to defraud SBC occurred between January 7, 2011 and January 18, 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.
If convicted at trial, Barlow could be sentenced to no more than 20 years in prison, fined $250,000, ordered to serve a three year period of supervised release and a payment of restitution.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the United States Secret Service and Scottsville (Kentucky) Police Department.
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The charge of a person by an Information is an accusation only and that person is presumed innocent until and unless proven guilty.
Simpson County, Kentucky Resident Charged with Making and Possessing Destructive Devices (Molotov Cocktails)Read the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the indictment of a Simpson County, Kentucky resident on charges of making and possessing destructive devices, commonly known as Molotov cocktails.
Trey Alexander Gwathney-Law, age 18, of Franklin, Kentucky, was charged in a two count indictment by a grand jury meeting in Louisville. According to the Indictment, in September of 2015, the defendant knowingly made five illegal destructive devices. All were made using glass bottles. Four of the bottles (one Mountain Dew, one Sprite, and two Dr. Pepper) contained a dark gas/oil mixture liquid with a cloth wick stuffed in the bottle opening. A fifth destructive device was made using a glass Root Beer bottle. Similar to the other four devices, it contained a dark gas/oil mixture liquid with a piece of green pyrotechnic fuse attached to the opening with an epoxy sealant. The bottle contained a silver CO2 cartridge in the top of the bottle, under the pyrotechnic fuse. The CO2 cartridge contained explosive powder and small pieces of paper which appeared to have been soaked in the same flammable liquid found inside the bottle. The devices are commonly referred to as Molotov cocktails.
If convicted at trial, defendant Gwathney-Law could be sentenced to no more than ten years for each count, with a combined maximum of no more than 20 years in prison, fined up to $500,000.00 and ordered to serve 3 years of supervised release.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Franklin (Kentucky) Police Department.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Pastor of Louisville Parish Charged by Grand Jury Indictment with Accessing and Viewing Child Pornography over the InternetRead the Press Release
LOUISVILLE, Ky. – The former pastor of a Louisville, Kentucky, parish was charged by grand jury Indictment today with violating federal child exploitation laws, announced United States Attorney John E. Kuhn, Jr.
The Indictment charges Stephen Pohl, age 57, with 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.
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.
If convicted, Pohl faces maximum potential penalties of 10 years in prison, a $250,000.00 fine and at least five years of Supervised Release.
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."
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The charging of a person by a Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Owner of Virginia Based Stonewood Marketing Sentenced to 24 Months in Prison for Mail Fraud - Diverted and Stole $1.1 Million Intended for Political Campaigns, PACS, and Non-Profit OrganizationsRead the Press Release
Victims included McConnell Senate Committee
Defendant admitted to purchasing vacation condominiums, luxury automobiles and jewelry with the stolen funds
LOUISVILLE, Ky. – The former vendor for multiple local, state, and federal campaigns, PACs, and non-profit organizations throughout the United States, including the McConnell Senate Committee was sentenced in U.S. District Court today, by District Judge Greg Stivers, to 24 months in prison, fined $75,000 and ordered to pay $1,124,047 in restitution, for stealing more than $1.1 million in contributions and donations intended for committees and organizations announced U.S. Attorney John E. Kuhn, Jr.
“Samuel Pate, violated a position of trust - not only with the organizations that he represented, but with the earnest citizens trying to participate in the political process through contributions,” stated U.S. Attorney Kuhn. “Due to the efforts of my office and the FBI, nearly half all the stolen funds have been recovered and are being returned to the victim organizations. On this election day, let this be a reminder to those who attempt to subvert the political process – you will be caught and you will be prosecuted.”
Samuel K. Pate, Jr., age 52, of Forest, Virginia, pleaded guilty to three charges of mail fraud on August 10, 2015. To date, the United States has seized and forfeited property traced to fraud proceeds, which has been valued at over $379,000. In addition, approximately $103,000 has been turned over as restitution and has been distributed to victims. Restitution is being made in the form of reimbursements to Campaigns, PACs and organizations. For donations made to defunct organizations, reimbursements are being sent directly to the contributor.
Pate owned and operated Stonewood Marking in Forest, Virginia. Campaigns, PACs, and organizations contracted with Pate to process contributions received through direct mail and to maintain donor records when required by the Federal Election Commission (FEC). Donations were received by the Campaign, PACS, and organizations through the mail at their local offices, then automatically forwarded through the U.S. mail to Stonewood Marketing for processing. Pate maintained designated bank accounts at BB&T for the deposit of donations and campaign contributions.
According to the federal information, from February 2008 through November 2014, Pate routinely misappropriated client funds by diverting funds from their designated accounts or transferring funds from client accounts into other bank accounts he controlled. During the course of the scheme he stole donations and contributions totaling approximately $1,124,274.35 that were intended for the following political campaigns, PACs, and non-profit organizations: McConnell Senate Committee - $118,294; Christians in Defense of Israel - $319,691.09; House Conservative Fund - $30,614; Vitter for Senate (Louisiana) - $480,821.26; Catholic Advocates - $153,445; Jewish Voice - $150; Reagan Action - $1,025; Ten Commandments Commission - $2,098; Republican Majority Campaign - $11,300; Policy Issues Institute - $2,280; Defund Obamacare - $100; NRSC - $100; Randall Terry for Senate - $6; Freedom Defense Advocates - $990; Frontline Ministries - $1,150; Christian Anti-Defamation League - $2,020; and Live Prayer - $190.
During this period, Pate used the stolen and misappropriated funds to pay credit card bills, purchase vehicles, condominiums in Myrtle Beach, South Carolina, decorate a residence, pay family members, and pay personal expenses.
From February 2008 through November 2014 Pate paid approximately $284,841.85 in personal American Express credit card bills using stolen funds and transferred approximately $237,100 in stolen funds to his personal American Express savings accounts.
Further on or about October 21, 2010, through July 21, 2014, Pate used $28,104 in stolen funds from an Exodus Mandate account to pay condominium maintenance fees for both condominium unit 210 and unit 1015 located at 161 Seawatch Drive, Myrtle Beach, South Carolina. On or about December 13, 2010, he used $10,800 in stolen funds from the Christian-Anti-Defamation Commission bank account to purchase a 2007 Jeep Compass; on or about March 10, 2010, he used $14,765 in stolen funds from an Exodus Mandate bank account to a purchase a 2.02 carat diamond, round, H color, VS1 clarity; on or about August 26, 2010 Pate wire transferred $76,271.68 to a trust account for the purchase of a condominium identified as 161 Seawatch Drive, Unit 210, Myrtle Beach, Horry County, South Carolina. The wire transfer was drawn on a Christian Anti-Defamation Commission bank account. On or about October 13, 2010, Pate used $8,800 in stolen funds from the Christian Anti-Defamation Commission bank account to purchase a 2004 Lincoln Navigator; on or about January 7, 2011, Pate used $16,000 in stolen funds from a Christian anti-Defamation Commission bank account to purchase a 2007 Cadillac Escalade ESV; on or about December 22, 2011, Pate used $6,000 in stolen funds from the Exodus Mandate bank account to purchase a 2010 Cadillac SRX vehicle; on or about April 28, 2013, the defendant used $9,999.45 in stolen funds from a Christian Anti-Defamation Commission bank account to purchase a 2007 GMC Acadia sport utility vehicle; on or about July 8, 2012, the defendant used $17,250 in stolen funds from a Christian Anti-Defamation commission bank account to purchase a 2007 Jeep Wrangler sport utility vehicle; on or about July 29, 2013, Pate purchased a condominium identified as 161 Seawatch Dive, Unit 1015 Myrtle Beach, South Carolina for $241,000. The stolen funds used for this transaction included the following: from the sale of 161 Seawatch Drive for $102,889.72; $39,050.46 from a Christian Anti-Defamation Commission bank account; and $5,000 from an Exodus Mandate bank account. Further, between January 2014 through July 2014 Pate used $11,446.42 in stolen funds from an Exodus Mandate bank account to pay Sheila Morgan Interiors to redecorate his condominium. On or about May 8, 2014, Pate used $23,500 in stolen funds from the Exodus Mandate bank account to purchase a 2013 GMC Terrain sport utility vehicle; in June 2014 and July of 2014, the defendant used $9,300 in stolen funds from Exodus Mandate bank account to pay ACE Golf Carts for the purchase of a golf cart.
During this same period, Pate knowingly caused campaigns and PACS to file multiple false FEC Form 3, Report of Receipts and Disbursements, quarterly reports with the FEC that omitted the names and amounts of donor donations.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Federal Bureau of Investigation (FBI).
Owner of Shuttered Louisville Microwave Popcorn Company Guilty of Bank FraudRead the Press Release
Louisville, Ky. – The owner of the shuttered Preston Farms Popcorn, LLC (Preston) pleaded guilty to bank fraud today, before Chief Judge Joseph H. McKinley, Jr., in U.S. District Court, 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.
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.
Highfield faces a maximum penalty of 30 years in prison, a fine of $1,000,000 and a five year term of supervised release. Sentencing is scheduled for February 1, 2016, at 11am in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by United States Export-Import Bank OIG in Washington, D.C.
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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 Guilty of Embezzling $264,867.84Read the Press Release
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 pleaded guilty to wire fraud in U.S. District Court yesterday before Chief Judge Joseph H. McKinley, Jr. for embezzling $264,867.84 during a 30-month period, announced U.S. Attorney John E. Kuhn, Jr.
According to the plea agreement, Krista Kaye Graupner, age 45, of Evansville, Indiana, committed 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, 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.
Graupner is scheduled to be sentenced by Chief Judge McKinley in Owensboro on January 13, 2016 and could receive a combined maximum term of 60 years in prison, a maximum fine of $750,000, and a 3-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Nute A. Bonner and is being investigated by the Federal Bureau of Investigation and the Henderson Police Department.
Christian County, Kentucky, Convicted Felon Sentenced to 96 Months in Prison for Possession of A Firearm and AmmunitionRead the Press Release
Formerly convicted of First-Degree Manslaughter
PADUCAH, Ky. – U.S. Attorney John E. Kuhn, Jr., today announced the sentencing of a Christian County, Kentucky convicted felon, by Senior Judge Thomas Russell on Thursday, October 15, 2015 to 96 months in prison for the illegal possession of a firearm and ammunition.
“This was a dangerous, illegally armed, convicted felon who will serve 96 months in federal prison without the possibility of parole,” stated U.S. Attorney John Kuhn. “We will continue to prosecute dangerous felons who illegally possess firearms to ensure the safety of our communities.”
Jamie Artez Harris, age 38, pleaded guilty to the charge on June 25, 2015. According to the plea agreement, on August 10, 2014, in Christian County, Harris, being a person who had been convicted in a court of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Colt, Model New Army/Navy Revolver (DA38), .38 Caliber and three rounds of .38 ammunition.
Harris was convicted of First-Degree Manslaughter, a felony, on February 17, 1995, in Christian Circuit Court, Christian County, Kentucky; and was convicted of the offenses of First-Degree Trafficking in a Controlled Substance, Cocaine, First Offense, and First-Degree Unlawful Transaction with a Minor, each a felony, on September 29, 2004, in Christian Circuit Court; and was convicted of the offenses of Tampering with Physical Evidence, First-Degree Possession of a Controlled Substance, Cocaine, First Offense, and First-Degree Fleeing or Evading Police, each a felony, on September 27, 2006, in Christian Circuit Court.
This case was prosecuted by Assistant United States Attorney Seth Hancock and was investigated by the Hopkinsville Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Todd County, Kentucky Resident Guilty of Possession and Distribution of Methamphetamine and Possession of A Firearm During A Drug Trafficking CrimeRead the Press Release
Defendant admitted to receiving 67 pounds of crystal meth (with an estimated street value of $3 million) in California and shipping the drug to his Todd County home
BOWLING GREEN, Ky. – A Todd County, Kentucky resident pleaded guilty this week in U.S. District Court before District Judge Greg Stivers to multiple charges associated with possession and distribution of methamphetamine announced U.S. Attorney John E. Kuhn, Jr.
Scott Windell Harris, age 45, living in Allensville, admitted to purchasing 67 pounds of crystal meth during approximately nine trips to California, then shipping the schedule II controlled substance to a residence off Russellville Road in Todd County. Further, Harris admitted to carrying a firearm during and in relation to a drug trafficking crime and possession of a firearm and ammunition by an unlawful user of and an addict of a controlled substance.
According to the plea agreement, 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 a large quantity of suspected methamphetamine being shipped from California to Todd County. State and federal law enforcement officials conducted a controlled delivery of the package, that contained approximately 18 pounds of crystal methamphetamine, and observed Harris taking possession of the package and placing it inside a black van.
Further, Harris admitted to making five trips to California, where he received a total of 67 pounds of crystal methamphetamine, with an estimated street value of approximately $3 million, and shipped the meth to his residence in Allensville, Kentucky.
Harris admitted to possession of a loaded Kel-Tec CNC Industries, Model P3AT, .380 caliber pistol with seven rounds of .380 ammunition, that was found in the van’s glove box. Harris further admitted to being an unlawful user of, and addicted to, methamphetamine.
Harris faces a minimum sentence of 15 years in prison, a maximum potential sentence of life in prison, a combined maximum fine of $20,5000,000 and a period of supervised release of at least five years and up to any number of years, including life.
Sentencing is scheduled before Judge Stivers, in Bowling Green, on February 2, 2016.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kentucky State Police Drug Enforcement/Special Investigations West.
Owner of U.S. Energy Partners, Inc. of Bowling Green, Kentucky, Charged with Wire Fraud and Money LaunderingRead the Press Release
Fraudulent Investment scam resulted in $1,370,000 loss to eleven partners
BOWLING GREEN, Ky. – The owner of U.S. Energy Partners, Inc. of Bowling Green, Kentucky, was charged by grand jury indictment on September 9, 2015 with wire fraud and money laundering for a scheme that cost investors $1,370,000 announced U.S. Attorney John E. Kuhn, Jr. The indictment was unsealed on October 5, 2015.
Clay Shelton, 46, of Bowling Green, was charged with three counts of wire fraud and six counts of money laundering for devising a scheme that fraudulently obtained money from eleven investors.
According to the indictment, between March 2011 and September 2012, Shelton created Monterey Pipeline Partners, LLC, purportedly to purchase the Monterey Pipeline in Tennessee. Shelton also operated Escrow 2011 LP, an investment partnership he created to fund an escrow account to purchase and operate the Monterey (gas) Pipeline. Further, Shelton operated Brakaw Energy Management LLC, which was created by Shelton to manage and operate the Monterey Pipeline once he completed the purchase.
From March 2011 through September 2012, Shelton solicited $1,370,000 from eleven investors for the purchase of the Monterey Pipeline. He fraudulently represented to the investors that their funds would be held in escrow as a down payment until he was able to complete financing to purchase the Monterey Pipeline (about 60 days). Once the loan closed, investors would receive either a 25 percent return on their investment or Monterey Pipeline would buy their interest in any Tennessee well program they previously purchased through U.S. Energy Partners. Investors were, therefore, assured they would receive their investment back in at least 60 days and that their investment would be held in escrow.
According to the indictment, Shelton misappropriated $1,000,000 of investor funds, which were wired into Escrow 2011, by investing the majority in collateralized mortgage obligations. An additional $125,000 of investor funds deposited into the Escrow 2011 fund were used to pay operating and business expenses of U.S. Energy Partners. Another $245,000 of investor funds initially deposited into the Monterey Pipeline Partners LLC’s account were used to pay Brakaw and U.S. Energy Partners’ operating and business expenses and other miscellaneous expenses.
If convicted at trial, Shelton could be sentenced to no more than 20 years per count for counts one through three and no more than ten years per count, for counts four through nine. Further, Shelton could be required to pay a fine of $2,250,000 and serve a 27 year period of supervised release.
This case in being prosecuted by Assistant United States Attorney Bryan Calhoun and is being investigated by the IRS Criminal Investigation Division.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Shepherdsville, Kentucky, Man Guilty of Embezzling over $800,000 from His EmployerRead the Press Release
Manipulated accounting entries to hide his theft
LOUISVILLE, Ky. – U.S. Attorney John E. Kuhn, Jr. announced the guilty plea, this week, of a Shepherdsville, Kentucky, man who was charged with embezzling more than $800,000 from his employer during a seven year period.
Robert Kaiser, 58, pleaded guilty on October 8, 2015, in U.S. District Court, before District Judge Greg N. Stivers, to all twelve counts of a September 4, 2014 grand jury indictment. The indictment included eleven counts of wire fraud and one count of bank fraud. The indictment was unsealed on September 8, 2014.
The theft from his employer, C&M Services of Kentucky, Inc. (“C&M Services”) occurred between June 6, 2006 and March 26, 2013, and included an attempt to defraud Fifth Third Bank by submitting fraudulent financial statements to obtain a loan.
In court, Kaiser admitted to causing unauthorized transfers of monies to accounts he controlled. Further, Kaiser fraudulently transferred funds of C&M Services via credit card transfers and checks for unauthorized personal expenditures, and then concealed all of his theft from C&M Services by making false accounting entries and submitting fraudulent financial statements to obtain a revolving line of credit from Fifth Third Bank in order to conceal his theft.
In furtherance of the scheme, Kaiser caused interstate automated clearing house financial transfers from the C&M Services bank accounts at Fifth Third and Republic Banks to his personal Wells Fargo Credit Card accounts. According to the Indictment, Kaiser made eleven transactions between September 9, 2009, and January 22, 2013.
Also, between December 14, 2012, and March 26, 2013, Kaiser admitted to submitting materially false financial statements to Fifth Third Bank to obtain a revolving loan line of credit in the amount of $1,815,000.
At sentencing, Kaiser could forfeit real property he obtained, directly or indirectly, as a result of the violations in the indictment and could be sentenced to no more than 20 years in prison for each of counts 1-11 (wire fraud) of the indictment and no more than 30 years for count twelve (bank fraud). Further, the Judge could impose a fine of $3,750,000 and order Kaiser to serve three years of supervised release. Kaiser is scheduled for sentencing in Louisville on January 7, 2016 before Judge Stivers.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the United States Secret Service, Louisville Field Office.
U.S. Attorney and Dea Announce Take-Back Initiative to Safely Remove Prescription Pills from Local HomesRead the Press Release
Fifty-five locations this Saturday where Kentuckiana residents can safely and anonymously rid their homes of unwanted and expired medications
LOUISVILLE, Ky. – Kentuckiana residents have an opportunity this Saturday to safely and anonymously rid their homes of unused, unwanted, unneeded, or expired prescription medications, today announced U.S. Attorney John E. Kuhn, Jr. and U.S. Drug Enforcement Administration (DEA) Assistant Special Agent in Charge, Thomas J. Gorman. The 10th National Prescription Take-Back Day, held during the past five years, will take place this Saturday, September 26, 2015 at 55 locations across Kentuckiana. During this one-day event, federal and local law enforcement will once again partner to increase awareness of prescription drug abuse and provide an opportunity to reduce the availability of prescription pain medications in local homes.
U.S. Attorney Kuhn and ASAC Gorman are encouraging families to clean out medicine cabinets and safely rid their homes of unwanted and expired prescription medications. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, abuse and theft. Studies show that two-thirds of all teenagers who abuse prescription narcotics first obtain the drugs from family and friends; often from their home medicine cabinet.
Further, many Americans are unsure of how to properly dispose of their unused medications and often flush them down the toilet or throw them away. This poses safety and environmental hazards.
USA Kuhn and ASAC Gorman also stated that the Take-Back is a great opportunity to begin a dialogue with children to educate them on the dangers of obtaining pharmaceuticals for illicit use.
Prior DEA Prescription Take-Backs have been extremely successful. Last year, Kentuckiana residents dramatically reduced the risk of pain pill and other medication abuses by ridding their homes of 80,073 pounds of unused prescription medications. Kentucky remains among the nation’s most medicated states.
The Prescription Drug Take-Back is part of a nationwide effort sponsored by the DEA. Containers where unwanted and expired prescription medications may be safely disposed will be at 55 locations across Kentucky, on Saturday, from 10 a.m. to 2:00 p.m. A complete list of locations and the assisting law enforcement agency may be found in the attachment, at www.dea.gov or by calling 800-882-9539.
More information on how to properly dispose of unused medicines can be found on the Food & Drug Administration website:
http://www.fda.gov/Drugs/ResourcesForYou/Consumers/BuyingUsingMedicineSafely/EnsuringSafeUseofMedicine/SafeDisposalofMedicines/ucm186187.htm
U.S. Department of Justice Awards Law Enforcement Hiring Grants to Help Build Trust, Reduce Violence and Protect SchoolsRead the Press Release
$1,585,858 Awarded to Kentucky Law Enforcement Agencies
LOUISVILLE, Ky. – U.S. Attorney John E. Kuhn, Jr. today announced the Office of Community Oriented Policing Services (COPS Office) funded twelve law enforcement positions in the Western District of Kentucky. These hiring grants, totaling $1,460,858.00, are aimed at creating and in some cases continuing law enforcement positions in two police departments and one sheriff’s department in the District. Another hiring grant also was awarded today in the Eastern District of Kentucky, for a total award of $1,585,858.00 to Kentucky.
“This federal grant money enables local law enforcement agencies to hire officers who will be dedicated to specific community policing focus areas: community outreach, gun violence, school-based policing, or homeland security,” stated U.S. Attorney John Kuhn. “The goal of these hiring grants is to use a community policing model to improve public safety and relationships between the police and the community they serve.”
In the Western District of Kentucky, grants were awarded to the Albany Police Department for one officer in the amount of $98,888; to the Louisville Metro Police Department for ten officers in the amount of $1,248,371; and to the Todd County Sheriff’s Department for one officer in the amount of $113,604.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”
U.S. Attorney General Loretta Lynch made the announcement today in Washington. Over $107 million will be awarded nationally this year, through the COPS Hiring Program (CHP). CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers. All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
Wickliffe, Kentucky, Resident Charged with Distribution of MethamphetamineRead the Press Release
LOUISVILLE, Ky. – A Wickliffe, Kentucky, resident was charged by grand jury indictment today, with five counts of distribution of methamphetamine, a controlled substance, announced United States Attorney John E. Kuhn, Jr.
Christopher Ford, 48, was arrested on August 26, 2015, and initially charged in a criminal complaint with distribution of methamphetamine between March 2015 and July 2015.
Today’s grand jury indictment alleges Ford conspired with others to distribute 500 grams or more of methamphetamine, a Schedule II controlled substance, between Match 1, 2015, and August 26, 2015. Further, the indictment alleges that Ford distributed a detectable amount of methamphetamine on four occasions including April 17th, May 15th, May 28th, and July 7th According to the indictment, all of the sales took place in Ballard County, Kentucky.
Ford remains in the custody of the U.S. Marshals service and his first appearance before a Magistrate Judge has not been scheduled.
If convicted at trial, Ford could be sentenced to any term from ten years in prison to up to and including a life sentence. Also, Ford could be ordered to forfeit property and pay a fine of no less than $14,000,000 and ordered to serve up to and including a life period of supervised release.
This case is being prosecuted by Assistant United States Attorney Seth Hancock, and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Paducah Police Department, the Ballard County Sheriff’s Department and the Kentucky State Police.
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The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
Fort Campbell, Kentucky, Resident SentencedRead the Press Release
PADUCAH, Ky. – A civilian resident of Fort Campbell, Kentucky, was sentenced in U.S. District Court Monday, by Senior Judge Thomas B. Russell, to 27 months in prison, followed by a two year period of supervised release for the assault of another person that caused serious bodily injury, announced United States Attorney John E. Kuhn, Jr. There is no parole in the Federal Court system.
Kenneth Earl Dycus, age 44, of Christian County, Kentucky, was charged on February 10, 2015, in a single count grand jury indictment with the assault that occurred on February 8, 2015 on the Fort Campbell military base. On June 11, 2015, Dycus pleaded guilty to the single charge.
According to court records, Dycus intentionally injured another person, by choking him to the extent that the person was rendered unconscious. As a result of that injury, the individual sustained a bodily injury that involved a substantial risk of death, extreme physical pain, and protracted loss and impairment of the function of his memory.
If convicted at trial, Dycus could have been sentenced to no more than ten years in prison, fined up to $250,000 and ordered to serve a three year period of supervised release.
This case was prosecuted by Assistant United States Attorney David Sparks and was investigated by the Fort Campbell, Kentucky military police and the Federal Bureau of Investigation (FBI).
Clinton County, Kentucky, Man Sentenced for Filing False Tax ReturnsRead the Press Release
Failed to report earnings and pay income taxes on $386,183.67 during a six year period and overstated business expenses of $581,519.91
BOWLING GREEN, Ky. – A Clinton County, Kentucky, businessman and oil driller was sentenced by U.S. District Judge Greg N. Stivers to six months in prison and ordered to pay restitution of $283,385 (the tax due) to the Internal revenue service for failing to report approximately $386,183.67 in income and royalty income during a six year period and for overstating business expenses of $581,519.91 announced United States Attorney John E. Kuhn, Jr. There is no parole in the Federal Court system.
Further, Judge Stivers yesterday ordered Steven L. Burchett, age 51, to pay for the costs of his incarceration and 1 year of supervised release to follow his release from prison. Finally, Stivers imposed a fine of $10,000 per count of conviction for a total of $60,000. During the sentencing hearing, the evidence established that between 2006 to 2011, Burchett partially paid for a home and driveway with income for which he did not pay taxes. In addition, Burchett deducted the building of his home and driveway as business expenses. Burchett deducted multiple cash withdrawals as business expenses. Finally, evidence was introduced at the hearing that Burchett owned several luxury automobiles including a Dodge Viper, Cadillac Escalade, and Cadillac XLRV that he fraudulently deducted as a business expenses
Previously, Burchett admitted to willfully making and subscribing U.S. Individual Tax Returns, for the calendar years 2006 through 2011,which were written under the penalty of perjury and filed with the Internal Revenue Service, (IRS) and included information he did not believe to be true and correct.
Specifically, on October 11, 2008, Burchett filed a U.S. Individual Tax Return for calendar year 2006, with the IRS, in which he failed to report approximately $224,735.76 of additional income on Form 1040 line 22.
On October 8, 2008, Burchett filed a U.S. Individual Tax Return, for the calendar year 2007, with the IRS, in which he failed to report approximately $27,003.91 of additional income.
On October 15, 2009, defendant Burchett filed a U.S. Individual Tax Return, for the calendar year 2008, with the IRS, and overstated approximately $41,394 in business expenses and failed to report royalty income of approximately $18,236 and understated approximately $56,895 in additional income.
On April 15, 2010, Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2009, and overstated approximately $90,650 in business expenses and failed to report approximately $38,323 in royalty income and understated approximately $123,225 in additional income.
On April 15, 2011, Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2010, and overstated approximately $305,564 in business expenses and failed to report approximately $64,490 in royalty income and understated approximately $360,380 in additional income.
On April 15, 2012, Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2011, and overstated approximately $72,050 in business expenses and failed to report approximately$74,778 in royalty income and understated approximately $135,611 in additional income..
If convicted at trial, Burchett could have been sentenced to three years in prison on each of the six charges for a total of eighteen years, a total fine of $1,500,000., and a period of up to one year of supervised release.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Criminal Investigation Division of the Internal Revenue Service.
Manager of IBEW Credit Union in Paducah, Guilty of 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, pleaded guilty today in U.S. District Court, before Senior Judge Thomas B. Russell to a single charge of bank fraud, and she agreed to pay restitution in the amount of $600,520.16, announced U.S. Attorney John E. Kuhn, Jr.
“Bank fraud is a serious crime with a cost to all of us,” stated U.S. Attorney John Kuhn. “This defendant was entrusted with the hard-earned money and savings of IBEW credit union members, but she stole that money to spend on herself, her family and friends. This institution was insured, but the cost of the loss will be passed along to the rest of us. For that reason, my Office vigorously investigates and prosecutes fraud against financial institutions.”
Debra C. Pyfrom pleaded guilty to executing a scheme for an unknown period of time, up until she was arrested and terminated by her employer 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.
Pyfrom admitted to embezzling and stealing money through manipulation of the credit union accounts, false loan payments, misappropriation of cash, and from loans taken out in members names without their knowledge.
Pyfrom 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 posting false payments to conceal the fraud and make payments appear current on IBEW’s books.
Lastly, Pyfrom further 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 the defendant would manipulate the entries in the IBEW books in order to falsely show that the loan payments were current.
If convicted of the charge at trial, Pyform could have been sentenced to 30 years in prison, a five year term of supervised release and fined a maximum of $1,000,000.
This case is being prosecuted by Assistant United States Attorney Nute A. Bonner and is being investigated by the McCracken County Sheriff’s Office and the Federal Bureau of Investigation.
Former Humana Inc. Employees Sentenced for Taking Kickbacks Totaling $2 Million Dollars in an Insurance Sales Bribery SchemeRead the Press Release
Judge orders forfeiture and restitution totaling $1 million each
Both defendants sentenced to serve one year in prison
LOUISVILLE, Ky. – Former Humana Inc. regional sales director, Glen Allan Fine and former Humana Inc. sales manager, James E. Wenger, were sentenced September 10, 2015, by Senior Judge Charles R. Simpson III, in United States District Court, to one year and one day in prison, and ordered to pay $100,000 each in restitution and forfeit $900,000 each, for their roles in a racketeering and bribery scheme, connected with their former position, announced United States Attorney John E. Kuhn, Jr.
“Fine and Wenger unlawfully diverted millions of dollars in a kickback scheme that took advantage of their positions of trust and authority at Humana,” stated U.S. Attorney John Kuhn. “We simply cannot allow the integrity and efficiency of the health insurance market to be compromised by underhanded, back-door deals. The prison sentence and restitution order is a just outcome.”
“As this sentencing shows, it is increasingly important for all of us to remain vigilant against corporate fraud. As corporate insiders, Wenger and Fine abused their positions to obtain approximately $2,000,000 each in unlawful kickbacks. The FBI, and its law enforcement partners, will continue to work together to hold those who abuse their positions of trust accountable,” stated Howard Marshall, Special Agent in Charge, FBI Louisville.
“These individuals used their positions at a Medicare contractor to demand kickbacks from insurance agents who wanted to market Medicare plans,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This type of crime harms the integrity of the program and will not be tolerated.”
“The U.S. Postal Inspection Service will continue to strongly pursue its mission of investigating Mail Fraud crimes and protecting the US Postal Service and its customers,” stated Inspector in Charge, Dugan Wong, Pittsburg Division, U.S. Postal Inspection Service.
Co-defendants Fine, age 56, and Wenger, age 50, both of Louisville, previously pleaded guilty, in 2013, to a single count federal information charging them with taking kickbacks totaling over four million dollars while employed as part of Humana’s sales and marketing division known as the MarketPoint Organization.
According to their plea agreements, Fine admitted that in 2005, he, along with Wenger and others, met at a hotel in Florida to discuss sending insurance agents to Shep Cutler, one of the larger Managing General Agencies (MGA) and Dan McNerney, one of his business partners, and also a MGA. Fine and co-defendant Wenger, agreed to send insurance agents, who wanted to sell Humana Medicare Advantage and Prescription Drug Plan products, to Cutler and McNerney in exchange for Cutler sending payments to Fine and Wenger. The four agreed to split the override fees, and each would receive payments of 25%. Fine and Wenger agreed to set up fictitious business accounts in their wives' names. Fine and Wenger admitted to sending agents to Cutler and McNerney's MGAs, and acknowledged their wives did not provide any service in exchange for the money received from Cutler. Fine and Wenger were not authorized by Humana to enter into a kickback relationship with Cutler and McNerney. Both Fine and Wenger received approximately $2,000,000 each for their participation in the scheme. As a result of this kickback arrangement, Humana suffered a loss to its business, and had to pay legal and other investigative costs.
This case was prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and was investigated by the Federal Bureau of Investigation (FBI), the Department of Health and Human Services, Office of Inspector General, and the United States Postal Inspection Service, with assistance from Humana Inc.
Logan County Home Care Giver Guilty of Aggravated Identity TheftRead the Press Release
Ordered to pay $56,543.93 in restitution
BOWLING GREEN, Ky. – A Logan County, Kentucky home care giver pleaded guilty in U.S. District Court this week to identity theft and agreed to serve a 24 month prison sentence and agreed to pay restitution in the amount of $56,543.93 announced United States Attorney John E. Kuhn, Jr.
Crystal Hullett, age 38, of Russellville, pleaded guilty to five counts of aggravated identity theft before U.S. District Judge Greg Stivers on September 2, 2015.
According to the plea agreement, Hullett was a home care giver to the victim 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.
At the time of sentencing, the United States will move for the dismissal of counts 1,2,3,4, and 5 of the indictment and agree that a sentence of 24 months is appropriate. The restitution order of $56,543.93 is due at the time of sentencing on January 12, 2016, at 10:30am in Bowling Green, before Judge Stivers.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by United States Secret Service, United States Postal Inspection Service and the Russellville Police Department.
Bowling Green, Kentucky, Substitute Teacher Charged with Possession and Distribution of Child PornographyRead the Press Release
Arrest part of an international undercover investigation by Toronto, Ontario police
BOWLING GREEN, Ky. – A substitute teacher, formerly employed by the Bowling Green (Kentucky) School system, was charged in a criminal complaint this week with possession and distribution of child pornography announced United States Attorney John E. Kuhn, Jr.
Leon Lussier, age 49, of Bowling Green, Kentucky, was arrested on September 1, 2015, and appeared before United States Magistrate Judge H. Brent Brennenstuhl later that day.
According to an affidavit attached to the criminal complaint, the international investigation started in January 2015, when the Toronto, Ontario, Canada Police Service, Child Exploitation Section, received information regarding the investigation of a group of individuals involved in the sexual abuse of children, including the distribution of child pornography. On June 23, 2015, a Toronto Police Service Detective Constable logged into an undercover software account and observed a person with the username “I luv boys” was streaming child pornography videos by sharing his computer screen. The user streamed four videos containing child pornography. Further investigation led law enforcement to Lussier as the person with username “I luv boys.”
A search warrant of Lussier’s Bowling Green home resulted in the seizure of numerous computer media. A preview of an HP Pavilion by a Computer Forensics Agent revealed several videos containing child pornography. Several of the videos had been previously viewed in a chat room by an undercover officer. The videos were being live-streamed on a computer with an IP address assigned to Lussier.
If convicted at trial, Lussier faces not less than 5 years and not more than 25 years in prison, a 500,000.00 fine, and supervised release of at least five years and could be any number of years, including life. Lussier is being held in the custody of the United States Marshals Service pending a detention hearing scheduled for Friday, September 4, 2015, at 10:00 a.m. before Magistrate Judge Brennenstuhl.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless. This case is being investigated by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Canadian authorities, Bowling Green Police Department and U.S. Marshals Service.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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The charge of a person by a Criminal Complaint is an accusation only and that person is presumed innocent until and unless proven guilty.
Lexington, Kentucky, Woman and Clarksville, Tennessee, Man Charged with Sex Trafficking of A Louisville, Kentucky, MinorRead the Press Release
LOUISVILLE, Ky. – A Lexington, Kentucky, woman and Clarksville, Tennessee man were charged by a federal grand jury today with a single count of sex trafficking a 15-year-old female, announced United States Attorney John E. Kuhn, Jr.
Crystal L. Bradshaw, a/k/a Crystal Thurman, age 41, and Ralph W. Goodwin, age 65, face no less than 10 years in prison and no more than a life sentence, a $250,000 fine, and no less than five years and up to a lifetime of supervised release.
Goodwin was initially charged in a separate, sealed criminal complaint on August 23, 2015. The case was unsealed during the initial appearance and detention hearing before U.S. Magistrate Judge Dave Whalin on Monday, August 31, 2015.
According to the affidavit attached to the criminal complaint, on August 7, 2015, a 15-year-old female was approached by Crystal Bradshaw, in a Louisville park. Bradshaw took the minor female to a Marriott Hotel in Louisville to engage in sexual contact with Ralph Goodwin, in exchange for a monetary payment. According to the affidavit, Bradshaw received a payment of $700 from Goodwin, but the minor was not paid. Further, after two days, Goodwin drove the minor to his home in Clarksville, Tennessee. Eventually, the minor contacted a friend on Goodwin’s computer. The friend contacted the minor’s mother, which resulted in the Montgomery County, TN Sheriff’s Office discovering the minor at Goodwin’s Clarksville home.
Goodwin is scheduled for arraignment on September 29, 2015 at 9:30am in Louisville.
This case is being prosecuted by Assistant United States Attorney Amanda Gregory and is being investigated by the Federal Bureau of Investigation (FBI).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Bowling Green, Kentucky, Convicted Felon Sentenced to 104 Months in Prison for Violating Federal Firearms LawsRead the Press Release
Arrested following a high-speed pursuit and standoff with law enforcement
BOWLING GREEN, Ky. – A convicted felon who was living in Bowling Green, Kentucky, was sentenced in United States District Court last week, by Judge Greg N. Stivers, to 104 months in prison, after pleading guilty to possession of a firearm and ammunition by a convicted felon, announced United States Attorney John E. Kuhn, Jr.
Jackie Lee Bowles, age 26, was arrested on May 21, 2015, on the federal charge, following a high-speed chase and armed standoff with law enforcement, in Bowling Green, Kentucky. Bowles was charged with the possession of a loaded, General Precision Corp., Model 20, .22 caliber revolver.
According to an affidavit filed with a federal criminal complaint, Bowles pointed a handgun at a self-identified police officer, threatened to shoot additional police officers in the head, and identified himself as a Captain with the Aryan Nation. Bowles is a convicted felon, having previously pled guilty in United States District Court to charges of possession and distribution of crack cocaine (case number 1:08cr40) on January 7, 2009. At the time of his arrest, Bowles was on Supervised Release from that conviction. The 104-month sentence includes 77 months for the new charge and 27 months for revocation of his earlier term of Supervised Release.
Bowles was involved in a pursuit by police at a high rate of speed, after failing to stop his vehicle for an alleged traffic violation. He fled that vehicle on foot. Bowles was later approached by law enforcement when the officer recognized him as a passenger in a vehicle at a convenience store on Louisville Road in Bowling Green. A Warren County Sheriff’s Department Sergeant identified himself and at that time, Bowles allegedly raised a handgun and pointed it at the Sergeant. Other officers arrived and established a perimeter around Bowles’ vehicle and evacuated several surrounding businesses and locked down two area schools. A Kentucky State Police Trooper used a taser to subdue Bowles.
Assistant United States Attorney Jo E. Lawless prosecuted the case. ATF, in conjunction with the Warren County Sheriff’s Office and Kentucky State Police, conducted the investigation.
Former Police Officer and School Administrator Pleads Guilty to Violating Sex Abuse LawsRead the Press Release
LOUISVILLE, Ky. – A Grayson County, Kentucky, former police officer and school administrator pleaded guilty in U.S. District Court to 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, and this week Chief Judge Joseph H. McKinley, Jr. accepted the plea and scheduled sentencing for November 2, 2015 at 11:00am in Louisville.
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 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.
Miller faces a maximum sentence of 11 years in prison, a fine of up to $1,000,000 and at least five years of supervised release.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.
Former Pastor of Louisville Parish Charged with Viewing Child Pornography over the InternetRead the Press Release
LOUISVILLE, Ky. – The former pastor of a Louisville, Kentucky parish was charged by criminal complaint with knowingly accessing material with intent to view images of child pornography during 2015, on two computers located in the office and rectory of St. Margaret Mary Parish, located at 7813 Shelbyville, Road in Louisville, announced United States Attorney John E. Kuhn, Jr.
Stephen Pohl, age 57, of Louisville, was charged by criminal complaint on August 21, 2015. The complaint, affidavit and warrant were unsealed this morning by United States Magistrate Judge Dave Whalin. Pohl is scheduled for an Initial Appearance on the charge today, before U.S. Magistrate Judge Anthony Porcelli, at 2:00 p.m., in United States District Court located in Tampa, Florida.
Law enforcement executed two federal search warrants on August 12, 2015, in the work and living areas used by Pohl in the parish office and rectory. Subsequently, a warrant for Pohl’s arrest was issued Friday, August 21, 2015. FBI Tampa Division, Pinellas Resident Agency and the Pinellas County Sheriff’s Office arrested Pohl in Indian Rocks Beach, Florida, Friday evening, August 21, 2015. Pohl was then held at the Pinellas County Jail until his transfer to the United States Marshal’s custody today.
The specific charge is knowingly accessing with intent to view material that contained an image of child pornography that had been transported using any means or facility of interstate commerce and foreign commerce by any means including by computer.
If convicted, Pohl faces maximum potential penalties of 10 years in prison, a $250,000.00 fine and at least five years of Supervised Release.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by the Federal Bureau of Investigation’s Child Exploitation Task Force and the Louisville Metro Police Department’s Crimes Against Children Unit.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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The charging of a person by a Criminal Complaint is an accusation only and that person is presumed innocent until and unless proven guilty.
Florida Man Charged with Obstructing A Federal Officer or Employee in the Course of Their Duties and with Entering an Airport Area in Violation of Security RequirementsRead the Press Release
Incident Occurred At Louisville International Airport
LOUISVILLE, KY. – An Orange Park, Florida man residing in Louisville, was arrested yesterday at Louisville International Airport and charged by criminal complaint with Resisting, Opposing, Impeding, and Obstructing a Federal Officer or Employee in the course of their duties, and one count of Entering Airport Area in Violation of Security Requirements announced U.S. Attorney John E. Kuhn, Jr.
According to the complaint, at approximately 2:20 p.m. yesterday, David Harold Patton, age 36, allegedly fled from a checkpoint screening area and into a sterile area (the terminals) causing a security breach. He was immediately apprehended and arrested by Louisville Regional Airport Authority Public Safety Officers (LRAAPSO).
Specifically, Patton was issued a gate pass in order to escort his grandmother to her flight gate. During the screening process by Transportation Safety Administration (TSA) security personnel, Patton was asked to remove items from his pocket. At this point, TSA security personnel report that Patton ran from the screening area. He was stopped by the LRAAPSO and escorted out of the gate area.
Further, at the checkpoint, a TSA security screener allegedly witnessed Patton consume an item and discard another before fleeing. LRAAPSO immediately obtained the discarded item and discovered a small package of what was later identified as heroin. During a subsequent FBI interview, Patton allegedly admitted that he attempted to leave the check point before passing through the scanner because he knew he had drugs in his pocket. Patton has been charged in state court with Possession of Heroin along with other related charges, and is being held in custody at the Louisville Metropolitan Corrections facilities.
A federal arrest warrant has been issued for Patton and he will appear before a United States Magistrate Judge once his state court charges have been resolved.
This case is being prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and is being investigated by the FBI and TSA.
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The charge of a person by criminal complaint is an accusation only and that person is presumed innocent until and unless proven guilty.
Former Louisville Teacher Pleads Guilty to Charges of Enticement, Production, Distribution and Possession of Child PornographyRead the Press Release
Defendant met in person with 15 year old to engage in and record sexual activity
Defendant used 16 different minors to produce child pornography using social media
LOUISVILLE, Ky. – A Louisville man previously employed by a parochial high school located in Jefferson County, Kentucky, as a high school teacher and assistant coach with the school’s athletics department, pled guilty today in United States District Court to violating child exploitation laws announced United States Attorney John E. Kuhn, Jr. United States District Judge David J. Hale accepted the guilty pleas.
Patrick Newman, age 33, was previously charged in a Criminal Complaint and then felony Information. He pled 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. Three victims are from Kentucky, including at least one of whom Newman met in person. According to information exchanged during their online communications, the remaining victims are from Texas, Ohio, Indiana, Colorado, North Carolina, New York, Utah, Oregon, and the United Kingdom.
"These were unspeakable crimes, victimizing vulnerable and impressionable minors,” stated U.S. Attorney Kuhn. “Protecting our children will always be the highest priority of this office, and we will continue to prosecute those who exploit children to the fullest extent of the law."
According to the Affidavit attached to a previous criminal complaint, the investigation started earlier this year 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 him. With one child, he specifically asked for sadistic images involving a plunger. Newman met at least one boy (age 15) in person on several occasions. The two 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, he possessed 87 videos depicting child pornography involving boys.
Newman has been in federal custody since his arrest on June 1, 2015. He faces a mandatory minimum prison term of 15 years followed by a 5-year period of Supervised Release. The maximum potential penalties are life in prison, a $4,750,000.00 fine, and up to and including a life period of Supervised Release. A sentencing hearing will be held on December 16 2015, at 1:30pm, before United States District Judge Hale.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The investigation is being 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 Teamsters Union Local President Guilty of Embezzlement of Union Funds and Criminal Recordkeeping ViolationsRead the Press Release
Jerry Thomas Vincent, Jr. was President of Teamsters Local 783 from 2006 to 2011
LOUISVILLE, KY – United States Attorney John E. Kuhn, Jr. announced the guilty plea of former Teamsters Local 783 President Jerry Thomas Vincent, Jr. to multiple charges of embezzling labor union funds and criminal recordkeeping violations, before Senior Judge Thomas B. Russell today in U.S. District Court.
Vincent, age 54, formerly of Jefferson County, Kentucky pleaded guilty to 14 counts in the July 1, 2014, grand jury indictment. According to the indictment, from October 5, 2009, through August 17, 2011, Vincent embezzled approximately $17,272.84 in union funds from Teamsters Local 783 and committed 13 criminal violations related to union records from October 5, 2009 through June 17, 2011.
Specifically, Vincent admitted to making false entries on credit card receipts and claiming false business purposes for expenditures of union funds at Louisville restaurants.
If Vincent had been convicted at trial, the maximum potential penalties were twenty-three years in prison, a $2,050,000 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 United States Department of Labor, Office of Labor-Management Standards.
Vincent is scheduled for sentencing before Senior Judge Russell on December 10, 2015, in Louisville, Kentucky.
Iraqi Refugee Guilty of Falsifying His Identity to Gain United States CitizenshipRead the Press Release
LOUISVILLE, Ky. – An Iraqi refugee living in Jefferson County, Kentucky was found guilty this week in U.S. District Court of falsely procuring U.S. citizenship, announced United States Attorney John E. Kuhn, Jr.
Following a two day trial, a federal jury deliberated just over one hour before finding Ali Al-Kadumi, 45, guilty of the charge. Following the verdict, defendant Al-Kadumi was denaturalized and then detained pending sentencing by Judge Greg N. Stivers, who presided over the trial.
Al-Kadumi was charged in a federal indictment on January 22, 2014. According to the indictment and his testimony in court, Al-Kadumi concealed his identity when he falsely stated his current legal name was “Hussein Naji Selman” on his 2008 Application for Naturalization. In reality, Hussein Naji Selman was and still is another person currently living in Iraq. Also, within his Application for Naturalization, Al-Kadumi stated he had never committed a crime or offense for which he had not been arrested; however, Al-Kadumi had committed a crime when he falsely used the identity and background of Hussein Naji Selman on his Legal Permanent Residency Application in 2002, which was sworn to under penalty of perjury. Finally, Al-Kadumi falsely stated on his Application for Naturalization that he had never lied to a U.S. official in order to gain entry into the United States. Al-Kadumi had actually used the same stolen identity in 1998 in order to gain entry into the United States as a refugee.
In June of 1998, Al-Kadumi applied for entrance into the United States as a refugee. He was interviewed by a U.S. immigration official in Damascus, Syria and then completed and signed his refugee application using the stolen identity. At the time, Al-Kadumi stated he had a brother living in Louisville, Kentucky, who was actually Selman’s brother. After moving to Louisville, Kentucky in 1998 as a refugee from Iraq, Al-Kadumi became a Legal Permanent Resident in 2002 and then become a naturalized U.S. citizen on June 26, 2008. After receiving his U.S. citizenship, Al-Kadumi immediately requested that his name be changed from Hussein Naji Selman, his assumed name, to Ali Sabeeh Alkadumi, his real name. The FBI discovered Al-Kadumi’s crimes during an investigation in 2013. After being interviewed by the FBI, Al-Kadumi admitted to using the stolen identity of Selman.
A sentencing date has not yet been set for Mr. Al-Kadumi. He faces a sentence of up to but no more than ten years in prison and a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Nute A. Bonner and Bryan R. Calhoun and was investigated by the Federal Bureau of Investigation (FBI).
Former Owner of Virginia Based Stonewood Marketing Pleads Guilty to Mail Fraud Diverted and Stole More Than $1.1 Million for Political Campaigns, PACs and Non-Profit OrganizationsRead the Press Release
Victims Included McConnell Senate Committee Defendant Admits to Purchasing Vacation Condominiums, Luxury Automobiles and Jewelry with the Stolen Funds
The former vendor for multiple local, state and federal campaigns, political action committees (PACs) and non-profit organizations throughout the United States, including the McConnell Senate Committee pleaded guilty to three charges of mail fraud today in U.S. District Court for stealing more than $1.1 million in contributions and donations intended for committees and organizations announced U.S. Attorney John E. Kuhn, Jr. of the Western District of Kentucky.
“Samuel Pate, while working in a position of trust for political campaigns, political action committees and non-profit groups, stole more than a million dollars,” said U.S. Attorney Kuhn, Jr. “These organizations – as well as earnest citizens trying to participate in the political process through contributions – were unknowingly victimized by Pate’s selfishness and avarice. He used the stolen funds for personal expenses, vacation homes, luxury vehicles and jewelry. Thus far, due to the efforts of my office and the FBI, nearly half of all the stolen funds have been recovered and are being returned to the victim organizations.”
“Mr. Pate intentionally diverted campaign contributions and political action committee donations for his own personal financial gain,” said Special Agent in Charge Howard S. Marshall of the Louisville Division for the FBI. “As such, Mr. Pate's actions subverted the political process by denying individuals their right to participate in the political process. In a democracy, there is simply no greater right than to elect our political leaders. Anyone attempting to corrupt the political process, in this way or any other, will be investigated as a top priority for our office."
Samuel K. Pate Jr., 52, of Forest, Virginia, owned and operated Stonewood Marking in Forest, Virginia. Campaigns, PACs and organizations contracted with Pate to process contributions received through direct mail and to maintain donor records when required by the Federal Election Commission (FEC). Donations were received by the Campaign, PACS and organizations through the mail at their local offices, then automatically forwarded through the U.S. mail to Stonewood Marketing for processing. Pate maintained designated bank accounts at BB&T for the deposit of donations and campaign contributions.
According to the federal information, from February 2008 through November 2014, Pate routinely misappropriated client funds by diverting funds from their designated accounts or transferring funds from client accounts into other bank accounts he controlled. During the course of the scheme he stole donations and contributions totaling approximately $1,124,274.35 that were intended for the following political campaigns, PACs and non-profit organizations: McConnell Senate Committee ($118,294); Christians in Defense of Israel ($319,691.09); House Conservative Fund ($30,614); Vitter for Senate (Louisiana) ($480,821.26); Catholic Advocates ($153,445); Jewish Voice ($150); Reagan Action ($1,025); Ten Commandments Commission ($2,098); Republican Majority Campaign ($11,300); Policy Issues Institute ($2,280); Defund Obamacare ($100); NRSC ($100); Randall Terry for Senate ($6); Freedom Defense Advocates ($990); Frontline Ministries ($1,150); Christian Anti-Defamation League ($2,020); and Live Prayer ($190).
During this period, Pate used the stolen and misappropriated funds to pay credit card bills, purchase vehicles, condominiums in Myrtle Beach, South Carolina, decorate a residence, pay family members and pay personal expenses.
From February 2008 through November 2014 Pate paid approximately $284,841.85 in personal American Express credit card bills using stolen funds and transferred approximately $237,100 in stolen funds to his personal American Express savings accounts.
Further Pate admits that on or about Oct. 21, 2010, through July 21, 2014, he used $28,104 in stolen funds from an Exodus Mandate account to pay condominium maintenance fees for both condominium unit 210 and unit 1015 located at 161 Seawatch Drive, Myrtle Beach, South Carolina. Pate further admits that on or about Dec. 13, 2010, he used $10,800 in stolen funds from the Christian-Anti-Defamation Commission bank account to purchase a 2007 Jeep Compass; on or about March 10, 2010, he used $14,765 in stolen funds from an Exodus Mandate bank account to a purchase a 2.02 carat diamond, round, H color, VS1 clarity; on or about Aug. 26, 2010 Pate admits that he wire transferred $76,271.68 to a trust account for the purchase of a condominium identified as 161 Seawatch Drive, Unit 210, Myrtle Beach, Horry County, South Carolina. The wire transfer was drawn on a Christian Anti-Defamation Commission bank account. On or about Oct. 13, 2010, Pate used $8,800 in stolen funds from the Christian Anti-Defamation Commission bank account to purchase a 2004 Lincoln Navigator; on or about Jan. 7, 2011, Pate used $16,000 in stolen funds from a Christian anti-Defamation Commission bank account to purchase a 2007 Cadillac Escalade ESV; on or about Dec. 22, 2011, Pate used $6,000 in stolen funds from the Exodus Mandate bank account to purchase a 2010 Cadillac SRX vehicle; on or about April 28, 2013, the defendant used $9,999.45 in stolen funds from a Christian Anti-Defamation Commission bank account to purchase a 2007 GMC Acadia sport utility vehicle; on or about July 8, 2012, the defendant used $17,250 in stolen funds from a Christian Anti-Defamation commission bank account to purchase a 2007 Jeep Wrangler sport utility vehicle; on or about July 29, 2013, Pate purchased a condominium identified as 161 Seawatch Dive, Unit 1015 Myrtle Beach, South Carolina for $241,000. The stolen funds used for this transaction included the following: from the sale of 161 Seawatch Drive for $102,889.72; $39,050.46 from a Christian Anti-Defamation Commission bank account; and $5,000 from an Exodus Mandate bank account. Further, between January 2014 through July 2014 Pate used $11,446.42 in stolen funds from an Exodus Mandate bank account to pay Sheila Morgan Interiors to redecorate his condominium. On or about May 8, 2014, Pate used $23,500 in stolen funds from the Exodus Mandate bank account to purchase a 2013 GMC Terrain sport utility vehicle; in June 2014 and July of 2014, the defendant used $9,300 in stolen funds from Exodus Mandate bank account to pay ACE Golf Carts for the purchase of a golf cart.
During this same period, Pate knowingly caused campaigns and PACS to file multiple false FEC Form 3, Report of Receipts and Disbursements, quarterly reports with the FEC that omitted the names and amounts of donor donations.
To date, the United States has collected approximately $508,928.00 from Pate through seizures on bank accounts and the sale of forfeited property that Pate purchased with the stolen funds.
If convicted at trial, Pate faced no more than 60 years in prison, a $750,000 fine and nine years of supervised release and forfeiture of any assets acquired through stolen funds. During sentencing, the U.S. District Judge assigned to this case is expected to order Pate to pay restitution. The restitution will be made in the form of reimbursements to campaigns, PACs and organizations. For donations made to defunct organizations, reimbursements will be sent directly to the contributor.
This case is being prosecuted by Assistant U.S. Attorney Bryan Calhoun and is being investigated by the FBI.
Former Owner of Virginia Based Stonewood Marketing Pleads Guilty to Mail Fraud - Diverted and Stole $1,124,273.35 Intended for Political Campaigns, PACs,And Non-Profit OrganizationsRead the Press Release
Victims included McConnell Senate Committee
Defendant admits to purchasing vacation condominiums, luxury automobiles and jewelry with the stolen funds
LOUISVILLE, Ky. – The former vendor for multiple local, state, and federal campaigns, PACs, and non-profit organizations throughout the United States, including the McConnell Senate Committee pleaded guilty to three charges of mail fraud today, in U.S. District Court, for stealing more than $1.1 million in contributions and donations intended for committees and organizations announced United States Attorney John E. Kuhn, Jr.
“Samuel Pate, while working in a position of trust for political campaigns, political action committees and non-profit groups, stole more than a million dollars,” stated U.S. Attorney Kuhn. “These organizations – as well as earnest citizens trying to participate in the political process through contributions – were unknowingly victimized by Pate’s selfishness and avarice. He used the stolen funds for personal expenses, vacation homes, luxury vehicles and jewelry. Thus far, due to the efforts of my office and the FBI, nearly half of all the stolen funds have been recovered and are being returned to the victim organizations.”
"Mr. Pate intentionally diverted campaign contributions and political action committee donations for his own personal financial gain. As such, Mr. Pate's actions subverted the political process by denying individuals their right to participate in the political process," stated SAC Howard S. Marshall, "In a democracy, there is simply no greater right than to elect our political leaders. Anyone attempting to corrupt the political process, in this way or any other, will be investigated as a top priority for our office."
Samuel K. Pate, Jr., age 52, of Forest, Virginia, owned and operated Stonewood Marking in Forest, Virginia. Campaigns, PACs, and organizations contracted with Pate to process contributions received through direct mail and to maintain donor records when required by the Federal Election Commission (FEC). Donations were received by the Campaign, PACS, and organizations through the mail at their local offices, then automatically forwarded through the U.S. mail to Stonewood Marketing for processing. Pate maintained designated bank accounts at BB&T for the deposit of donations and campaign contributions.
According to the federal information, from February 2008 through November 2014, Pate routinely misappropriated client funds by diverting funds from their designated accounts or transferring funds from client accounts into other bank accounts he controlled. During the course of the scheme he stole donations and contributions totaling approximately $1,124,274.35 that were intended for the following political campaigns, PACs, and non-profit organizations: McConnell Senate Committee - $118,294; Christians in Defense of Israel - $319,691.09; House Conservative Fund - $30,614; Vitter for Senate (Louisiana) - $480,821.26; Catholic Advocates - $153,445; Jewish Voice - $150; Reagan Action - $1,025; Ten Commandments Commission - $2,098; Republican Majority Campaign - $11,300; Policy Issues Institute - $2,280; Defund Obamacare - $100; NRSC - $100; Randall Terry for Senate - $6; Freedom Defense Advocates - $990; Frontline Ministries - $1,150; Christian Anti-Defamation League - $2,020; and Live Prayer - $190.
During this period, Pate used the stolen and misappropriated funds to pay credit card bills, purchase vehicles, condominiums in Myrtle Beach, South Carolina, decorate a residence, pay family members, and pay personal expenses.
From February 2008 through November 2014 Pate paid approximately $284,841.85 in personal American Express credit card bills using stolen funds and transferred approximately $237,100 in stolen funds to his personal American Express savings accounts.
Further Pate admits that on or about October 21, 2010, through July 21, 2014, he used $28,104 in stolen funds from an Exodus Mandate account to pay condominium maintenance fees for both condominium unit 210 and unit 1015 located at 161 Seawatch Drive, Myrtle Beach, South Carolina. Pate further admits that on or about December 13, 2010, he used $10,800 in stolen funds from the Christian-Anti-Defamation Commission bank account to purchase a 2007 Jeep Compass; on or about March 10, 2010, he used $14,765 in stolen funds from an Exodus Mandate bank account to a purchase a 2.02 carat diamond, round, H color, VS1 clarity; on or about August 26, 2010 Pate admits that he wire transferred $76,271.68 to a trust account for the purchase of a condominium identified as 161 Seawatch Drive, Unit 210, Myrtle Beach, Horry County, South Carolina. The wire transfer was drawn on a Christian Anti-Defamation Commission bank account. On or about October 13, 2010, Pate used $8,800 in stolen funds from the Christian Anti-Defamation Commission bank account to purchase a 2004 Lincoln Navigator; on or about January 7, 2011, Pate used $16,000 in stolen funds from a Christian anti-Defamation Commission bank account to purchase a 2007 Cadillac Escalade ESV; on or about December 22, 2011, Pate used $6,000 in stolen funds from the Exodus Mandate bank account to purchase a 2010 Cadillac SRX vehicle; on or about April 28, 2013, the defendant used $9,999.45 in stolen funds from a Christian Anti-Defamation Commission bank account to purchase a 2007 GMC Acadia sport utility vehicle; on or about July 8, 2012, the defendant used $17,250 in stolen funds from a Christian Anti-Defamation commission bank account to purchase a 2007 Jeep Wrangler sport utility vehicle; on or about July 29, 2013, Pate purchased a condominium identified as 161 Seawatch Dive, Unit 1015 Myrtle Beach, South Carolina for $241,000. The stolen funds used for this transaction included the following: from the sale of 161 Seawatch Drive for $102,889.72; $39,050.46 from a Christian Anti-Defamation Commission bank account; and $5,000 from an Exodus Mandate bank account. Further, between January 2014 through July 2014 Pate used $11,446.42 in stolen funds from an Exodus Mandate bank account to pay Sheila Morgan Interiors to redecorate his condominium. On or about May 8, 2014, Pate used $23,500 in stolen funds from the Exodus Mandate bank account to purchase a 2013 GMC Terrain sport utility vehicle; in June 2014 and July of 2014, the defendant used $9,300 in stolen funds from Exodus Mandate bank account to pay ACE Golf Carts for the purchase of a golf cart.
During this same period, Pate knowingly caused campaigns and PACS to file multiple false FEC Form 3, Report of Receipts and Disbursements, quarterly reports with the FEC that omitted the names and amounts of donor donations.
To date, the United States has collected approximately $508,928.00 from Pate through seizures on bank accounts and the sale of forfeited property that Pate purchased with the stolen funds.
If convicted at trial, Pate faced no more than 60 years in prison, a $750,000 fine, and nine years of supervised release and forfeiture of any assets acquired through stolen funds. During sentencing, the U.S. District Judge assigned to this case is expected to order Pate to pay restitution. The restitution will be made in the form of reimbursements to Campaigns, PACs and organizations. For donations made to defunct organizations, reimbursements will be sent directly to the contributor.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and is being investigated by the Federal Bureau of Investigation (FBI).
Former Hillview, Kentucky Police Chief Sentenced to Serve 24 Months’ Probation and Fined $5,000.00 for Making A False Statement to Federal AgentsRead the Press Release
LOUISVILLE, Ky. – Former Hillview, Kentucky Police Chief Glenn A. Caple was sentenced today in U.S. District Court, by Senior District Judge Charles R. Simpson III, to 24 months’ probation and ordered to pay a $5000.00 fine for making a false statement to federal agents when questioned about his knowledge and involvement in moving evidence found on an elected official’s property on January 4, 2012, announced U.S. Attorney John E. Kuhn, Jr.
Caple was unanimously convicted by a jury that deliberated just over one hour before reaching a guilty verdict on February 13, 2015. During the four-day trial, the United States successfully proved that Caple lied to federal agents on April 26, 2012, when he was questioned by the Federal Bureau of Investigation (FBI) about his involvement in directing subordinate Hillview Police officers to move evidence. The evidence was a mobile meth lab inside a backpack. Caple ordered the backpack moved from its original location at the residence of the Hillview mayor, but in an interview with FBI agents, he denied that the suspected backpack had been found by Hillview police on the mayor’s property and that he had asked a Hillview officer to move it off of the property.
Hillview, Kentucky is a city of approximately 9,400 residents located in Bullitt County, Kentucky near Jefferson County. Hillview police officers testified under oath that a mobile meth lab in a black backpack was found in a tire next to a garage on the mayor’s property. They further testified that Chief Caple asked a Hillview police officer to move the backpack to a location believed to be off of the mayor’s property and failed to report the incident, in order to protect the mayor from bad publicity.
This case was prosecuted by Assistant United States Attorneys Thomas Dyke and Marisa Ford and was investigated by the Louisville field office of the FBI.
Warren County, Kentucky Resident Guilty of Scheming with Others to File False Tax Returns to Obtain Fraudulent Tax RefundsRead the Press Release
Paid Mexican Nationals for Identification
Agreement includes $731,293.52 restitution
BOWLING GREEN, Ky. – A resident of Bowling Green, KY, pleaded guilty in U.S. District Court this week, before U.S. District Judge Greg N. Stivers, to charges of mail fraud and of entering into an agreement to defraud the Internal Revenue Service (IRS) by obtaining the payment of fraudulent claims, announced U.S. Attorney John E. Kuhn, Jr.
According to the plea agreement, Fernando Diaz Herrera conspired with others between June 23, 2010, and August 8, 2012 to defraud the IRS and U.S. Department of Treasury, by obtaining false claims. Specifically, Herrera paid Mexican Nationals, who lived outside the United States, for their means of identification, including birth certificates, immunization records and voter cards. The defendant and others then used these documents to obtain Individual Taxpayer Identification Numbers (ITIN). Herrera then used the ITINs to prepare and file fraudulent federal income tax returns – which caused federal income tax refunds to be dispersed. Herrera admits to cashing the fraudulent refund checks at financial institutions and businesses in Kentucky. Further, for the purposes of executing the scheme, Herrera admits to mail fraud when he caused a letter providing a falsely obtained ITIN to be sent from the IRS office in Austin, Texas, to an address in Bowling Green.
Herrera was charged by grand jury indictment, along with co-defendants Maria Chavez Salazar and Julio Ramos, on December 10, 2014.
If convicted at trial, Herrera could have been sentenced to a combined maximum term of 30 years in prison, fined $500,000 and served a three-year term of supervised release.
Sentencing is scheduled before Judge Stivers on November 23, 2015, in Bowling Green.
This case is being prosecuted by Assistant United States Attorney Amanda Gregory and is being investigated by the United States Secret Service.
Louisville Man Charged with Enticement, Production, Distribution and Possession of Child PornographyRead the Press Release
Defendant used 16 different minors to produce child pornography using social media
LOUISVILLE, Ky. – A Louisville man previously employed by a parochial high school located in Jefferson County, Kentucky, as a high school teacher and assistant coach with the school’s athletics department, was charged in a felony Information, filed on July 31, 2015, with violating child exploitation laws, announced United States Attorney John E. Kuhn, Jr. Under certain circumstances a person can be charged by Information rather than Indictment. The case, Criminal Action Number 3:15CR-83-DJH, will be set for an arraignment and change of plea hearing by further Order of the Court.
Patrick Newman, age 33, had previously been charged by Criminal Complaint with engaging in unlawful online communications resulting in the production of child pornography with a 13-year-old male (“John Doe”). He now faces 16 counts of knowingly using, persuading, inducing, enticing, or coercing minors to produce child pornography that was transported in interstate or foreign commerce. The charges involve 16 different victims. Additionally, Newman is charged with online enticement, distributing and possessing child pornography.
According to the Affidavit attached to the criminal complaint, the investigation started earlier this year 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 the 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. Homeland Security Investigations (HSI) within the Department of Homeland Security (DHS) arrested Newman that same day. He has remained in federal custody since June 1, 2015.
Upon conviction, Newman faces a mandatory minimum prison term of 15 years followed by 5 years of Supervised Release. The maximum potential penalties are life in prison, a $4,750,000.00 fine, and up to and including a life period of Supervised Release.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by HSI Louisville Division of the Department of Homeland Security.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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The charging of a person by an Information is an accusation
only and that person is presumed innocent until and unless proven guilty.