Western District of Kentucky
Press releases recorded for this federal judicial district.
Former University of Louisville Executive Pleads Guilty to Tax Fraud and Embezzling Funds Tied to UofL Medical GroupsRead the Press Release
- Diverted $2.8 million for his personal use
- Failed to report $2,470,735 to Internal Revenue Service
LOUISVILLE, Ky. – A former University of Louisville accountant, promoted to Executive Director of the Department of Family & Geriatric Medicine at the University of Louisville School of Medicine (DFGM) pleaded guilty today, in U.S. District Court, to a seven-count federal indictment including charges of theft and bribery in programs that receive federal funds, money laundering, mail fraud, and filing false federal income tax returns, announced Acting U.S. Attorney John E. Kuhn, Jr.
As part of the nearly six year scheme, Perry Chadwick Vaughn, 36, of Sellersburg, Indiana, admitted to diverting contractual checks and patient payments to the University Family and Geriatric Medicine Associates account then withdrew $2,809,489 for his personal use and benefit.
In court, Vaughn admitted to the following - from January 2007 through August 2013 he defrauded the Department of Family and Geriatric Medicine at the University of Louisville School of Medicine (DFGM-UofL) and its affiliated private physician practice groups (collectively “DFGM-Practice Groups”). While working as the executive director for DFGM-UofL and the business manager form DFGM-Practice Groups Vaughn stole approximately $2,810,201.53 through the use of the United States mail. Vaughn fraudulently stole contractual checks issued to DFGM-UofL totaling $666,810.11. Vaughn also stole $604,025.57 in patients payments to DFGM-UofL. In addition Vaughn directly stole another $1,538,654.24 directly from DFGM-Practice Groups’ accounts. During the scheme Vaughn caused T.J. Samson Community Hospital to mail a check for $37,750 that he ultimately stole. In addition, Vaughn submitted $711 in fraudulent travel expenses during the course of the scheme.
During the course of the scheme to defraud both DFGM-UofL and DFGM-Practice Groups Vaughn concealed his theft through a number of means including the following: he created false bank reconciliations to hide the issuance of checks to himself and he created false bank statements to hide the issuance of checks to himself. In all instances, the financial transactions were conducted with Republic Bank and Chase Bank, federally insured financial intuitions.
On February 19, 2009, Vaughn knowingly filed a false U.S. Individual Tax return for calendar year 2008 in that it failed to report $377,492 in total income. On January 31, 2010, Vaughn knowingly filed a false U.S. Individual Tax return for calendar year 2009 in that it failed to report $610,470 in total income. On February 22, 2011, Vaughn knowingly filed a false U.S. Individual Tax return for calendar year 2010 in that it failed to report $160,121 in total income. On January 23, 2012, Vaughn knowingly filed a false U.S. Individual Tax return for calendar year 2011 in that it failed to report $546,022 in total income. On March 21, 2013, Vaughn knowingly filed a false U.S. Individual Tax return for calendar year 2012 in that it failed to report $776,660 in total income. Each of the returns was verified by a written declaration that it was made under the penalty of perjury and Vaughn knew in each instance that he was omitting reportable taxable income.
In addition, on September 3, 2013, U.S. District Judge John G. Heyburn II granted the United States’ motion for Temporary Restraining Order enjoining and prohibiting Vaughn, (including family members, financial institutions, and other entities having possession or control of Vaughn's assets), from transferring, selling, dissipating, concealing, or otherwise disposing of, in any manner, his assets in real or personal property, owned, gained or acquired by him or on behalf of his ex-wife.
If convicted at trial, Vaughn faced up to 55 years in prison, a 16 year period of supervised release, and a fine of $1,250,000.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and is being investigated by the University of Louisville Police Department, the United States Secret Service, the Internal Revenue Service, Criminal Investigations, and the United States Postal Inspection Service.
RMD Holdings, LTD D/B/A Nationwide Fence and Supply Co. Settles Alleged False Claims Act Violations Involving Disadvantaged Business Enterprise Requirements in Federally Funded ProjectsRead the Press Release
- Alleged Violations Involved Federally Funded Transportation Projects in Kentucky, Indiana, Illinois, Georgia and New York
LOUISVILLE, Ky. – RMD Holdings, Ltd d/b/a Nationwide Fence and Supply Co. (Nationwide) agreed to pay a $1,750,000 to settle allegations that it circumvented the Disadvantaged Business Enterprise requirements in federally funded construction projects. Of that amount, $416,000 will be paid pursuant to a stipulation of settlement being submitted for Court approval today by the U.S. Attorney’s Office for the Southern District of New York.
Today’s announcement was made by Acting U.S. Attorney John E. Kuhn, Jr., the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and the Federal Highway Administration’s Office of Civil Rights.
“The Disadvantaged Business Enterprise program was created to ensure a level playing field for minority-owned and women-owned companies in federally funded transportation projects,” stated Acting U.S. Attorney Kuhn. “By circumventing the law, RMD undermined the goal of assisting disadvantaged companies in a market where the federal government invests many millions of dollars.”
According to the settlement agreement, beginning in 2008, the DOT-OIG began investigating Nationwide for improperly utilizing Disadvantaged Business Enterprise (DBE) companies as a pass through in order to satisfy the DBE requirements specified in federally funded construction projects. The projects were performed between October 20, 2006, through July 16, 2010, in Kentucky, Indiana, Illinois, Georgia and New York and most involved the installation of guardrails, security fencing, and cable barriers along interstates. In Kentucky, Nationwide installed high tension cable barriers in Barren, Bullitt, Hart and Jefferson Counties in June of 2008.
At the time, Nationwide was co-owned by two brothers: Micheal DeMil and Robert DeMil. The company was a specialty construction group that conducted business in 33 states with its principal office located in Chesterfield Township, Michigan. Many of the transportation projects on which Nationwide worked were funded in whole or in part by the United States, and each project required a certain percentage of DBE participation. Nationwide was not a certified DBE.
The DBE program generally requires that recipients of federal highway funds establish a program to assist women owned or minority owned businesses to compete for work on federally funded construction projects. Recipients of these funds often accomplish this goal by requiring that each construction project include a certain percentage of participation by a DBE company. This percentage can be met by contractors utilizing DBE subcontractors to either perform work on the project or to supply materials.
The United States contends that, during the period from October 20, 2006, through July 16, 2010, Nationwide misrepresented how it utilized Sallie’s Wholesale Construction, Inc. (a DBE company) and Access Control Company, Inc. (a DBE). Nationwide claimed that Sallie’s Wholesale Construction, Inc. (SWC) was a DBE providing materials on projects in Indiana, Kentucky and Georgia. In reality, SWC was not acting as a material supplier and did not have in its possession those materials Nationwide needed for its projects. Instead, Nationwide would negotiate a price with non-DBE material suppliers and then request SWC to contract with the non-DBE material supplier so that it appeared SWC was furnishing the materials to Nationwide=s job site. SWC never touched the material purchased from the true material suppliers and was simply acting as an extra participant in the procurement of materials. In the case of Access Control Company, Inc. (Access), Nationwide represented that Access would furnish materials on a project in Illinois when, in fact, Access never provided materials and never agreed to act as a pass-through for materials. The government’s investigation did not find any wrongdoing by Access and Access cooperated fully with the government’s investigation.
Nationwide has also agreed to enter into an administrative settlement and three year compliance agreement with the United States Department of Transportation, Federal Highway Administration (FHWA). This agreement requires Nationwide, in part, to undertake remedial measures including: (1) the adoption and implementation of an Ethics Code and Corporate Compliance Program; (2) the appointment of a Corporate Compliance Officer ; and (3) the retention of an independent Monitor to evaluate the Company's performance of this Agreement and to submit periodic reports directly to the FHWA.
This settlement agreement is neither an admission of liability by Nationwide or its co-owners, nor a concession by the United States that its claims are not well founded.
This case was investigated by the U.S. Attorney’s Offices for the Western District of Kentucky, Northern District of Georgia, Middle District of Georgia, Southern District of Georgia, Southern District of Indiana, Central District of Illinois, and the Southern District of New York. The matter was prosecuted by Assistant United States Attorney Benjamin S. Schecter in the Western District of Kentucky, Trial Attorney Kelley Hauser with the U.S. Department of Justice, Civil Division, Commercial Litigation Branch, Frauds Section, The U.S. Attorney’s Office for the Southern District of New York and was investigated by U.S. Department of Transportation Office of Inspector General (DOT-OIG) and the Federal Highway Administration’s Office of Civil Rights.
Hodgenville, Kentucky, Man Sentenced to 151 Months in Prison for Robbing Two BanksRead the Press Release
- Ordered to pay restitution in the amount of $10,144
LOUISVILLE, Ky. – A Hodgenville, Kentucky man was sentenced to 151 months in prison followed by (3) years of supervised release in U.S. District Court today, by Senior District Judge John G. Heyburn II, after admitting to robbing banks located in Hardin and Larue Counties in Kentucky, announced Acting U.S. Attorney John E. Kuhn, Jr.
Joshua Riley Spangler, age 29, previously admitted in court to robbing through force, violence and intimidation, the Cecilian Bank, located at 235 East Western Avenue in Sonora, Kentucky of $1,019. on January 15, 2013.
Further, defendant Spangler admitted to robbing through force, violence and intimidation, the Bank of Buffalo, located at 2441 Greensburg Road in Buffalo, Kentucky of $9,125. on February 27, 2013. Spangler was charged by federal grand jury indictment on November 20, 2013.
Based upon prior convictions for Bank Robbery in Campbellsville and Hodgenville, Judge Heyburn found, pursuant to the Federal Sentencing Guidelines, that Spangler was a Career Offender and enhanced Spangler’s sentence by an additional 50 months.
Spangler faced no more than 20 years in prison, a fine of $500,000 and a three year period of supervised release.
This case was prosecuted by Assistant United States Attorney Randy Ream, and was investigated by the Kentucky State Police and the Federal Bureau of Investigation (FBI).
Convicted Felon Sentenced to 481 Months in Prison for String of Louisville Area Armed RobberiesRead the Press Release
- Prosecution Part of Project Recoil
LOUISVILLE, Ky. – A Louisville convicted felon was sentenced recently in U.S. District Court by Senior Judge Thomas B. Russell, to 481 months in federal prison, followed by five years of supervised release, for the armed robbery of eleven area convenient stores and fast food restaurants in December, 2012, and January, 2013, announced Acting U.S. Attorney John E. Kuhn, Jr. The charges stemmed from “Project Recoil” – an initiative for more effective prosecution of violent criminals in Louisville that relies upon collaboration among federal, state and local law enforcement and prosecutorial agencies.
Troy Lemont Gaines, age 23 of Louisville, and co-defendant Shaundrell Robinson, age 34 of Louisville, were charged in a 22 count federal indictment on April 2, 2013. The defendants have prior felony convictions and were charged with eleven armed robberies between December 5, 2012 and January 3, 2013 in Metro Louisville and Radcliffe, Kentucky. During one robbery, a shot was fired by Gaines while in a struggle with a customer. Gaines was arrested by Louisville Metro Police (LMPD) on January 5, 2013, immediately after robbing a Speedway gas station located 8325 Preston Highway.
Co-defendant Shaundrell Robinson was previously sentenced on November 11, 2014 by Senior Judge Thomas B. Russell to 216 months in prison followed by a three year period of supervised release.
“We have concluded the prosecution of this terrible frenzy of armed robberies, and the collaboration of our state and local partners has been instrumental in getting this done,” said Acting U.S. Attorney Kuhn. “ ‘Project Recoil’ is proving to be a highly effective tool in dealing with violent crime in our community. Lengthy sentences for violent repeat offenders are one important part of a comprehensive approach to building a safer community, and we value the support of our state and local partners for this program.”
The United States was prepared to present evidence, according to court records, that included: video surveillance of the armed robberies while in progress, a police dash-cam video showing Gaines arrest while still wearing a ski mask, a Lorcin semi-automatic pistol, magazine, five rounds of ammunition removed from the magazine and two shell casings found on the sidewalk outside the China Express restaurant that was held-up on December 19, 2012, an audio clip of Gaines’ statement to LMPD, video still photos signed by Gaines, a black ski mask and a loaded 9mm pistol seized from Gaines at the time of his arrest.
In July 2014, Gaines pleaded guilty to 11 counts of robbery affecting interstate commerce and two counts of brandishing a firearm during a crime of violence. The charged armed robberies included the Super Stop Food Mart, located at 7303 Preston Highway, on December 5, 2012, and on December 14, 2012. The armed robbery of the Meijer store, located at 4600 South Hurstbourne Parkway in Louisville, on December 15, 2012. The armed robbery of JR Liquors 2 store, located at 13018 Dixie Highway, in Louisville, on December 19, 2012. The armed robbery of the Circle P Shell Food Mart, located at 1500 North Dixie Highway in Radcliff, Kentucky, on December 19, 2012. The armed robbery of the China Express restaurant, located at 4946 Poplar Level Road in Louisville, on December 20, 2012. The armed robbery of the Berry Petroleum store, located at 1871 Berry Boulevard in Louisville on December 27, 2012. The armed robbery of Thornton=s store, located at 12412 LaGrange Road in Louisville, on December 31, 2012.The armed robbery of the Speedway store, located at 3030 Taylor Blvd. in Louisville, on December 31, 2012. The armed robbery of White Castle restaurant, located at 2711 Fern Valley Road in Louisville, on January 3, 2013. The armed robbery of Speedway store, located at 8325 Preston Highway in Louisville, on January 5, 2013.
Gaines faced a total minimum sentence of 257 years in prison and up to 5 years of supervised release per charge and a fine of $250,000 per charge.
This case was prosecuted by Assistant United States Attorney Robert Bonar and was investigated by the Louisville Metro Police Robbery Unit.
Ft. Campbell Military Base Resident Sentenced to 41 Months for Wantonly Abusing A Child Under the Age of 12Read the Press Release
– Child was malnourished and in need of medical care for burns
PADUCAH, Ky. – A Ft. Campbell military base resident was sentenced in U.S. District Court today by Senior Judge Thomas B. Russell to forty-one months imprisonment, followed by a three-year term of supervised release, for wantonly abusing her child, who at the time was under the age of 12, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Shanika D’June Pickens, a/k/a Shanika Campbell, age 28, previously pleaded guilty to a two count Indictment charging that she wantonly abused the child by failing to provide the child professional medical attention for burns and for failing to provide the child adequate food and nutrition that resulted in his medical diagnosis of malnutrition.
Campbell had custody of her 3 children, including the victim in this case, known as K.V.P., who was under 12 years of age, while living on Ft. Campbell, Kentucky military base, located in Christian County, Kentucky. Between January 1, 2011 and September 30, 2011, the victim received burns to his right side and back areas. At that time, Campbell was aware of the burns and did not seek professional medical attention that was available on Ft. Campbell military base for her family. Campbell admitted that her failure to seek medical attention for the burns was wanton because she was aware of and consciously disregarded a substantial and unjustifiable risk that the child would suffer a serious bodily condition and ultimately experienced more pain and scarring to his back and right side areas than he would have experienced had he received timely and competent medical attention. The risk of that harm to K.V.P. was of such a nature and degree that the disregard of that risk constituted a gross deviation from the standard of conduct that a reasonable person would observe in the situation.
Further, between October 1, 2011 and January 30, 2012, Campbell failed to provide adequate food and nutrition to K.V.P. That condition resulted in his hospitalization at Vanderbilt University Hospital in Nashville, Tennessee, between January 28, 2012 and February 6, 2012. During that time, the minor victim was diagnosed with, among other conditions, malnutrition. Campbell admitted that her failure to provide adequate food and nutrition to K.V.P was wanton because she was aware of and consciously disregarded a substantial and unjustifiable risk that constitutes a gross deviation from the standard of conduct that a reasonable person would observe in the situation.
If convicted at trial, Campbell faced a sentence of no more than 10 years in prison, a fine of $500,000 and a three year period of supervised release.
This case was prosecuted by Assistant United States Attorney David Sparks and was investigated by the Federal Bureau of Investigation (FBI) and Ft. Campbell, Kentucky, 502nd Military Police Battalion (CID).
Armed Career Criminal Guilty in String of Armed RobberiesRead the Press Release
– Federal charges result from “Project Recoil”
LOUISVILLE, Ky. – A convicted felon from Georgia pleaded guilty in United States District Court today before United States Magistrate Judge Dave Whalin announced David J. Hale, United States Attorney for the Western District of Kentucky. The federal charges stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by U.S. Attorney Hale, to maximize penalties for the most violent offenders and to reduce violent crime in our community.
Xavier Demetrius Porter, 40, pleaded guilty to nine counts of obstructing interstate commerce through robbery, one count of brandishing a firearm during a robbery, and one count of being a felon in possession of a firearm. In 1996, Porter was convicted of three counts of armed robbery, in case number 96-R-398 in Dougherty County (Georgia) Superior Court. During those robberies, he used a sawed-off shotgun.
Porter admitted to robbing Spinelli’s Pizza located at 2905 Goose Creek Road on March 5, 2013, the Subway located at 3503 South Hurstbourne Parkway on March 7, 2013, the Subway located at 8056 New LaGrange Road on March 17, 2013, Circle K located at 4600 Wattbourne Lane on April 15, 2013, the White Castle located at 3705 Bardstown Road on April 16, 2013, the Thornton’s located at 3909 Taylorsville Road on April 17, 2013, the Subway located on Bishop Lane on April 17, 2013, JC=s Cigarette Outlet located on Six Mile Lane on April 18, 2013, and the Adam and Eve store on South Hurstbourne Parkway on April 18, 2013. The federal robbery charges are brought pursuant to the Hobb’s Act, which criminalizes robberies that affect interstate commerce. During eight of the robberies, Porter brandished a firearm. During the first two robberies, he used a small black handgun. During the last five robberies, he used a pistol-grip 12 gauge shotgun. At the time of his arrest, Porter was clutching the money he stole from Adam & Eve in his hand.
Under the terms of his plea agreement, Porter faces 30 years in prison followed by 5 years of Supervised Release . There is no parole in the federal system. Porter also faces a possible fine of $4,500,000. Senior Judge Thomas B. Russell will set the case for sentencing at a later date.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation.
Louisville Residents Charged in Conspiracy to Distribute More Than One Kilogram of Heroin in A Drug Trafficking OperationRead the Press Release
LOUISVILLE, Ky. – Louisville residents charged in a conspiracy to distribute more than one kilogram of heroin were arraigned in U.S. District Court today, before Magistrate James D. Moyer, announced United States Attorney for the Western District of Kentucky, David J. Hale.
According to the single count indictment and a criminal complaint, beginning in December of 2012 and continuing to October 21, 2014 the defendants conspired to traffic heroin from multiple residential homes located in Pleasure Ridge Park, Okolona, Parkland and Chickasaw neighborhoods, with a stash house located in Smoketown, where the heroin was packaged for sale as part of this drug trafficking operation.
The criminal complaint further alleges that at least one of the defendants utilized a rental car company in Clarksville, Indiana, to travel to destinations outside the Louisville area including Chicago, Illinois, to procure multiple ounce quantities of heroin for distribution in the Louisville area. On August 2, 2014, video surveillance recorded one defendant place a large black bag in the trunk of a rental vehicle. Later that day, the vehicle was stopped, by Indiana State Police, due to an alleged traffic violation on I-65 in Columbus, Indiana between Louisville and Chicago. Due to the presence and odor of marijuana, police searched the vehicle and located $40,000 in U.S. currency in a black bag located in the vehicle’s trunk. It’s alleged in the criminal complaint that the money was intended for a purchase of heroin from a source located in Chicago.
The eight defendants charged in the single count indictment are Charles Marlo Coleman, Ronald Coleman, Joseph Clinton Coleman, Latonya Gentry, Benjamin Montez Brame, Donnell Parker, Joshua P. Hill, Reginald Grider. All defendants are Louisville residents and all are currently in the custody of the U.S. Marshals Service.
If convicted at trial, the defendants face no less than 10 years in prison a 1,000,000 fine and a 5 year period of supervised release. The sentence includes up to life in prison with notice of prior felony drug convictions and could include a fine of up to $20,000,000.
This case is being prosecuted by Assistant United States Attorney J. Scott Davis and is being investigated by the U.S. Drug Enforcement Administration (DEA) and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Henderson, Kentucky, Man Sentenced to 100 Months in Prison for Multiple Bank RobberiesRead the Press Release
– Ordered to pay $6,660 in restitution
OWENSBORO, Ky. – A Henderson County, Kentucky man was sentenced in U.S. District Court today, by Chief Judge Joseph H. McKinley Jr., to 100 months in prison followed by three years of supervised release for robbing three banks located in Daviess and Henderson Counties in Kentucky, announced David. J. Hale, United States Attorney for the Western District of Kentucky.
Weston Neel Hurd, age 41, was further ordered to pay $6,660 dollars in restitution to the three banks and ordered to have no contact with the banks for three years following his release from prison. He remains in the custody of the U.S. Marshals Service.
Hurd previously admitted that on August 6, 2012, in Henderson County, Kentucky, he robbed the Ohio Valley Financial Group, located at 400 Barret Boulevard, of approximately $2,651 by force, violence and intimidation. Neel admitted that on October 2, 2012, in Daviess County, Kentucky, he robbed the Kentucky Telco Federal Credit Union, located at 933 Tamarack Road, in Owensboro, of $2,878 by force, violence and intimidation. Neel further admitted that on December 28, 2012, in Daviess County, Kentucky, he robbed the First Security Federal Bank, located at 3560 Frederica Street, in Owensboro, of $1,131 by force, violence and intimidation.
This case was prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and was investigate by the Federal Bureau of Investigation (FBI), Owensboro Police Department and Henderson Police Department.
Warren County, Kentucky, Woman Convicted of Setting Fire to the Horse Cave, Kentucky Dollar General StoreRead the Press Release
– Jurors deliberated just over two hours before reaching a guilty verdict
BOWLING GREEN, Ky. – A Warren County, Kentucky woman was convicted of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, the Dollar General Store, and the personal property, located in Hart County, Kentucky, by a federal jury in Bowling Green today following a week-long trial, announced David J. Hale, United States Attorney for the Western District of Kentucky. The jury deliberated for a little over two hours before reaching its unanimous verdict. The defendant was remanded to the custody of the United States Marshal Service.
According to evidence presented during the trial that began Monday, Debra Fowler Kessinger, age 57, of Smiths Grove, Kentucky, set a fire on June 27, 2011, that destroyed, the Dollar General Store located at 1015 East Main Street in Horse Cave, Kentucky. Further, according to testimony presented during the trial, Kessinger, who was a manager of the store at the time of the fire, deliberately set the fire in the store’s break-room, to conceal information about inventory missing from the store and to conceal the theft of money from the store. The day of the fire the store was to begin an audit process that would have exposed Kessinger.
Following today’s verdict U.S. Attorney Hale commended the outstanding collaborative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Western Kentucky Arson Task Force.
Kessinger faces between 5 and up to 20 years in prison for destroying property by means of fire, a $250,000 fine and a 3 year period of supervised release. Kessinger is scheduled for sentencing before Chief District Judge Joseph H. McKinley, Jr. on March 12, 2015, in Bowling Green.
Further, the defendant was charged in a separate two-count superseding indictment this year with bankruptcy fraud. According to the indictment, beginning in April 2008, and continuing through December 2009, Kessinger knowingly devised a scheme to defraud her creditors, the U.S. Trustee, and the Bankruptcy Court, by submitting a fraudulent Chapter 7 Bankruptcy petition, In that case, Fowler is charged with concealing and failing to disclose the purchase and possession of property, and the receipt and transfer of life insurance proceeds and retirement benefits of her late husband to the bank accounts of family members and others for her own benefit.
Kessinger faces forfeiture of property, no more than 10 years in prison for bankruptcy fraud, a fine of $500,000 and a 3 year period of supervised release.
This case was prosecuted by Assistant United States Attorneys Joshua Judd and Marisa Ford and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Western Kentucky Arson Task Force composed of members from the Bowling Green Fire Department and the Kentucky State Police.
Former Bookkeeper at Saint Gabriel the Archangel Church and School Pleads Guilty to Embezzling FundsRead the Press Release
– Agreed to restitution in the amount of $83,191 to the Louisville Parish
LOUISVILLE, Ky. – The former bookkeeper at Saint Gabriel the Archangel Church and School pleaded guilty today before U.S. Magistrate Judge James D. Moyer, to embezzling $83,191 in funds from the Louisville parish by means of wire fraud announced David J. Hale, United States Attorney for the Western District of Kentucky.
Tammy Goodlett, 48, of Louisville, admitted in U.S. District Court to devising a scheme to defraud Saint Gabriel. According to the single count indictment, Goodlett committed wire fraud when, as bookkeeper, she exceeded her authorized access by transferring funds from Saint Gabriel’s bank account to her own bank accounts, made unauthorized credit card expenditures, and manipulated financial records to make unpaid debts appear paid. The fraud to obtain funds and services to which she was not entitled began on or about August 13, 2010, and continued to on or about August 6, 2013. Specifically, Goodlett used Saint Gabriel’s credit card for personal expenses, such as concert tickets, without authorization. Also, Goodlett admitted to manipulating Saint Gabriel’s financial records to make it appear that she had paid her daughter’s school tuition at Saint Gabriel when she had not made the payments.
Goodlett has agreed to pay restitution to the victim, Saint Gabriel the Archangel Church and School in the amount of $83,191.
If convicted at trial, Goodlett faced a sentence of no more than 20 years in prison, a fine of no more than $250,000 and a three year period of supervised release. Goodlett is scheduled for sentencing in Louisville on February 27, 2015, at 1 pm before Senior District Judge John G. Heyburn II.
This case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and is being investigated by the United States Secret Service and the Louisville Metro Police Department.
Cincinnati, Ohio, Man Pleads Guilty to Sex TraffickingRead the Press Release
– Victims were boarded and locked inside his Cincinnati home and driven from Cincinnati to Louisville for prostitution
LOUISVILLE Ky. – A Cincinnati, OH, man pleaded guilty in U.S. District Court today to multiple charges including commercial sex trafficking, announced Acting Assistant Attorney General Vanita Gupta and U.S. Attorney for the Western District of Kentucky David J. Hale.
Christopher Hisle, 45, was arrested on April 8, 2014, in Louisville, Kentucky after he drove a young woman from Cincinnati to Louisville to engage in prostitution at the Red Roof Inn on Blairwood Road. A subsequent FBI investigation revealed Hisle’s involvement in forcing and compelling multiple young women to engage in commercial sex.
Hisle pleaded guilty before Senior District Court Judge John G. Heyburn II today to a four-count federal indictment including one count of sex trafficking by force, fraud, or coercion, two counts of enticing a person to travel in interstate commerce for the purpose of prostitution and one count of interstate transportation for the purpose of prostitution.
According to the plea agreement, Hisle physically assaulted several of the victims, including striking one of the victims in the face when she threatened to run away. Hisle locked the victims in his house in Cincinnati, by boarding and locking all the doors and windows. Only the front door was capable of opening, and only Hisle had the key to the front door, which locked on both sides allowing Hisle to lock the women in the house when he left. On one occasion, a young woman escaped, only to be found and brought back to the house by Hisle.
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” stated Acting Assistant Attorney General Vanita Gupta. “Our Constitution guarantees freedom from involuntary servitude and slavery to all members of our society, and we will continue to enforce our human trafficking laws to restore the rights, freedom and dignity to victims of modern-day slavery.”
“My office is committed to seeking justice for victims of human trafficking,” stated U.S. Attorney David J. Hale. “Tragically, these crimes so often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office has worked to improve detection and prosecution by sponsoring training for our federal and local law enforcement partners.”
“Sex Trafficking is a crime that victimizes people in a highly personal manner. Victims often feel as if they have no options and no hope. Detecting sex trafficking is essential to stopping it. The FBI works with State and Local partners to uncover this heinous crime. If you believe you are a victim of sex trafficking or may have information about a particular trafficking situation, please contact the FBI,” said FBI Special Agent in Charge Howard S. Marshall.
Hisle faces a mandatory minimum sentence of 15 years in prison. Sentencing has been set for February 9, 2015 in Louisville. As part of his plea agreement, Hisle will pay restitution to 12 women identified as victims of Hisle’s human trafficking crimes.
This case is being prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the U.S. Attorney’s Office for the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit and is being investigated by the FBI.
Jackson, Mississippi, Man Sentenced to 24 Months in Prison for the Attempted Online Extortion of the University of Louisville Athletic AssociationRead the Press Release
LOUISVILLE, Ky. – A Jackson, Mississippi, man was sentenced to 24 months in prison by Chief Judge Joseph H. McKinley Jr, in United States District Court Monday, November 3, 2014, following his conviction for the attempted online extortion of the University of Louisville Athletic Association, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Thomas E. Ray, age 36, of Jackson Mississippi was convicted of a single count of extortion, by means of threatening communication, by a federal jury in Louisville, on August 13, 2014. The jury deliberated less than two hours before reaching a guilty verdict.
According to evidence presented at trial, Ray used the alias “Melinda White” when he knowingly sent an email communication from his home in Jackson, to the Commonwealth of Kentucky, on April 23, 2013. Ray’s email was sent to two University of Louisville employees with a threat to injure the reputation of the University of Louisville Athletic Association and a demand for $3.5 million.
Ray was indicted by a federal grand jury in Louisville, on October 16, 2013. The indictment was unsealed on October 24, 2013, following Ray’s arrest in Mississippi, by the U.S. Marshal Service.
Ray faced no more than two years in prison, a maximum fine of $250,000 and a one year period of supervised release.
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and was investigated by the Federal Bureau of Investigation (FBI), Louisville Metro Police Department, and Office of the Kentucky Attorney General.
Louisville Felon Sentenced to 162 Months in Prison for Robbing Multiple Jefferson County Restaurants and Brandishing A FirearmRead the Press Release
– Federal Prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, announced the sentencing today of a Louisville felon charged with robbing three Jefferson County restaurants. The federal prosecution stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, created by U.S. Attorney Hale to maximize penalties for the most violent offenders and to reduce violent crime in our community.
Kenneth Dion Flintroy Jr., age 25, was sentenced in U.S. District Court on Monday, November 6, 2014, by Chief Judge Joseph H. McKinley Jr., to 162 months in prison followed by 5 years of supervised release and ordered to pay $5,583 in restitution.
Flintroy pleaded guilty to four counts of a seven count indictment, on Monday, August 4, 2014, in Louisville. He admitted to robbing the McDonald’s located at 7426 3rd Street Road and the Papa John’s store located at 6902 Southside Drive on April 16, 2013. Further, he admitted to brandishing a firearm while robbing the McDonald’s located at 8600 Dixie Highway on May 2, 2013. The federal robbery charges are brought pursuant to the Hobb’s Act, which criminalizes robberies that affect interstate commerce.
This case was prosecuted by Assistant United States Attorneys Tom Dyke and Amanda Gregory and was investigated by the Louisville Metro Police Department.
U.S. Attorneys Announce Appointment of District Election OfficersRead the Press Release
LOUISVILLE, Ky. - United States Attorneys Kerry B. Harvey and David J. Hale announced the appointment of Assistant United States Attorneys to serve as District Election Officers in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014 general elections.
Assistant United States Attorney Ken Taylor has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Kentucky and Assistant United States Attorney Josh Judd has been appointed to serve as the DEO for the Western District of Kentucky. In that capacity they are each responsible for overseeing their Districts’ handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen has a right to vote without interference or discrimination and to have that vote counted in a fairly conducted election,” stated Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate,” stated David J. Hale, United States Attorney for the Western District of Kentucky. “It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division of the Justice Department.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Josh Judd will be on duty in Louisville while the polls are open. He can be reached by the public at the following telephone number: (502) 625-7049. AUSA/DEO Ken Taylor will be on duty in Lexington, while the polls are open and can be reached by the public at the following telephone numbers: (859) 685-4874 or (859) 321-9488.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field offices can be reached by the public at (859) 246-4700 in Lexington and (502) 263-6000 in Louisville.
Complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767.
Fraudulent Investment Advisor Sentenced to 36 Months in Prison and Ordered to Pay Victims $886,925.62 in RestitutionRead the Press Release
BOWLING GREEN, Ky. – A Bowling Green, Kentucky, resident who fraudulently promoted himself as an investment advisor was sentenced to 36 months in prison and ordered to pay victims $886,925.62 in restitution on October 23, 2014, by U.S. District Judge Joseph H. McKinley Jr., announced David J. Hale, United States Attorney for the Western District of Kentucky.
Paul Carney, age 46, previously pleaded guilty to all charges in a 32 count federal indictment including 20 counts of wire fraud and 12 counts of engaging in monetary transactions in criminally derived property of $10,000 or more (money laundering).
Between 2008 and November 2011, Carney devised a scheme where he represented himself as an investment advisor, who knew a stock trader, who could invest contributions in the stock market and make investors a substantial profit. As a result, at least eight known victims gave Carney hundreds of thousands of dollars to invest. Carney later told at least one investor that millions of dollars in profits had been realized, but additional cash investments were required because the profits would not be released until taxes and various fees had been paid, resulting in significant additional payments by the victim. In reality, there was no stock trader, investments, or profits. Carney’s scheme resulted in the total loss of $886,925.62.
Also, in furtherance of this scheme, Carney cashed personal checks and cashier’s checks ranging in amounts from $18,000 to $80,000 from investors and laundered the money through purchases of official bank checks which he used for his own personal benefit. As part of the plea agreement, Carney will forfeit a 2009 Ford Mustang Shelby GT which he purchased for $49,000 from the investment scheme and forfeit property located at 1253 Larmon Mill Road in Bowling Green, also purchased with illegally derived funds from the investment scheme.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Internal Revenue Service (IRS) Criminal Investigation division.
Louisville Man Sentenced to 15 Years in Prison for Producing Child PornographyRead the Press Release
LOUISVILLE, Ky. – Senior United States District Court Judge Charles R. Simpson III, sentenced Craig Ian Elliott, age 47, to 15 years in prison followed by 20 years of Supervised Release for violating federal child pornography laws, namely, the production of child pornography, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to a written Plea Agreement previously filed in open court, on April 2, 2010, the defendant was living at a residence on Algonquin Parkway in Jefferson County, Kentucky, with his girlfriend. On that date, his girlfriend was at work, but her 17-year-old daughter was at home with Elliott after she finished school for the day. Elliott used his girlfriend’s cell phone - a Boostmobile Sanyo Mirro Model SCP 3810 - to take sexually explicit photos of the girl. The cell phone was manufactured outside the Commonwealth of Kentucky. The metadata from the images showed that the pictures were taken at approximately 4:08 P.M.
After Elliott took the photos of the girl, he used the cell phone to transmit the images, via the Internet, to his Yahoo! account. There is no evidence that he distributed the images to anyone else.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department’s Crimes Against Children Unit, in conjunction with the Federal Bureau of Investigation, conducted the investigation as part of Kentucky’s Internet Crimes Against Children Task Force.
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."
Todd County, Kentucky, Man Guilty of Coercing Minors to Engage in Sexually Explicit Conduct and Receiving Child PornographyRead the Press Release
BOWLING GREEN, Ky. – A Todd County, Kentucky man pleaded guilty today, in U.S. District Court to charges of persuading, inducing and coercing two minor females to engage in sexually explicit conduct and with receiving child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jesse Sanford Williams, age 34, pleaded guilty to all three counts of the indictment before U.S. Magistrate Judge H. Brent Brennenstuhl in Bowling Green. Williams was arrested on March 7, 2014, by federal agents in Kentucky, following an investigation that began in the state of Washington on March 28, 2013. In court, Williams admitted to blackmailing, by threat, at least two minor, teen girls, in order to receive sexually explicit images of them, by means of multiple Gmail and Yahoo internet accounts. The activities took place between June 2011 and March 2013. Victim-1 lived in Washington, and was 13 years of age at the onset of the Internet threats. Victim-2 lived in Todd County, and was approximately the same age. At all times, Williams concealed his age and identity from the victims. A subpoena of email accounts determined all email accounts shared the same Internet Protocol (IP) address from an account located at Logan Aluminum, a large manufacturing facility located near Russellville, Kentucky. The FBI was able to identify Williams from shift schedules, IP login times and other materials obtained in the investigation. Further, Williams admitted to knowingly receiving child pornography between June 2011 and March 2013.
If convicted at trial, Williams faced a combined sentence of at least 15 years, but no more than 80 years in prison, a fine of $750,000 and a term of supervised release including up to life. Williams is scheduled for sentencing before Senior Judge Thomas B. Russell on February 4, 2015, in Bowling Green.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and is being investigated by the Federal Bureau of Investigation (FBI) Louisville and Seattle Divisions and police in Washington State.
Louisville Felon Sentenced to Seven Years in Prison for Bank Fraud and Illegal Possession of A FirearmRead the Press Release
– Accomplices cashed more than 300 counterfeit checks totaling $192,000
– At least 47 area business affectedLOUISVILLE, Ky. – A Louisville felon was sentenced to seven years in prison by Senior Judge Joseph H. McKinley Jr., in U.S. District Court this week, for making more than 300 counterfeit checks totaling approximately $192,000 and recruiting 15 co-conspirators to pass the counterfeit checks at businesses and financial institutions in Jefferson County and the surrounding area announced David J. Hale, United States Attorney for the Western District of Kentucky.
“Fraud like this harms financial institutions, businesses, and other innocent victims whose identities are sometimes used to perpetuate the crime,” stated U.S. Attorney David J. Hale. “I am pleased that the partnerships we have forged between federal and local law enforcement have led to this prosecution and substantial sentence for these serious offenses.”
Craig Hutzell, United States Secret Service Acting Special Agent in Charge stated, “The Secret Service and its partners in the Kentucky Electronic Crimes Task Force will vigorously investigate and pursue prosecution of suspects in these cases that affect our community. We will work to recover assets in order to make victims whole and see that potential victims are protected. The successful conclusion of this case is a credit to all our partners in the law enforcement, academic, corporate, and judicial arenas.”
Phillip Walker, age 41, was sentenced Tuesday, October 14, 2014 after pleading guilty to 26 charges in two federal indictments including one count of conspiracy, 19 counts of bank fraud, and one count of possession of a firearm by a convicted felon. Walker admitted that from July 2011 through August 2013, he manufactured approximately 300 counterfeit checks totaling over $192,000. Walker recruited approximately 15 co-conspirators, to pass the checks and would split the proceeds of the checks with the co-conspirators after the checks were successfully negotiated. Walker also caused an unnamed co-defendant to open bank accounts at Your Community Bank and U.S. Bank for the purpose of negotiating counterfeit checks. During the course of the fraud, more than 47 area retail outlets were affected. Walker made the counterfeit checks using a computer and two printers, at his home located on West Kentucky Street in Louisville. In furtherance of the crime, Walker admitted to buying stolen driver’s licenses or state identification cards and would make the counterfeit check payable to that person’s name. Walker would then attempt to recruit people who looked similar to the photo of the person on the stolen driver’s license or state identification card to cash the counterfeit check.
Further, on August 16, 2013, in Jefferson County, during the execution a federal search warrant law enforcement determined that Walker knowingly possessed an American Tactical C45 pistol and eight rounds of .45 caliber ammunition, as well as numerous rounds of assorted ammunition. Walker had previously been convicted of a crime punishable by a term of imprisonment exceeding one year and consequently was prohibited from possession of a firearm. Walker had multiple previous convictions for, among other things, manufacturing and passing counterfeit checks.
This case was prosecuted by Assistant United States Attorney Bryan R. Calhoun and Special Assistant Attorney Sungtae Kang and was investigated by the Louisville Metro Police Department, the United States Secret Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lafayette, Tennessee, Man Sentenced to 240 Months in Prison After Pleading Guilty to Two Bank Robberies in Kentucky and CarjackingRead the Press Release
BOWLING GREEN, Ky. – A Lafayette, Tennessee, man was sentenced today in United States District Court by Senior District Judge Thomas B. Russell to 240 months in prison followed by a three year period of supervised release and ordered to pay $90,800 in restitution, for the robbery of two banks located in Kentucky, and one-count carjacking in Adair County, Kentucky, announced David J. Hale, United States Attorney for the Western District of Kentucky.
On July 9, 2014, Eugene Earl Gentry, age 63, pleaded guilty to four counts of a federal indictment including two counts of bank robbery through force, violence, and intimidation, one count of brandishing a firearm during a crime of violence and one count of carjacking. Gentry admitted in court to robbing the United Citizens Bank, located at 1582 Campbellsville Road, in Columbia, Kentucky, of approximately $90,000 on October 15, 2012. On the same day, in Adair County, Kentucky, Gentry stole a 1998 Ford Ranger Pickup from United Citizens Bank manager and in doing so brandished a semi-automatic handgun which carries an additional charge of carjacking. One year later, on October 29, 2013, Gentry attempted to rob the Citizens Bank, located at 209 Campbellsville Bypass, located in Campbellsville, Kentucky. Gentry fled from the bank and was pursued by Campbellsville Police until his car crashed in to a parked 18-wheel style truck trailer loaded with logs. The loaded Hi-Point C9, 9mm semi-automatic pistol, found on Gentry at the crash scene was traced and came back as being sold to him in 2004.
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 Campbellsville Police Department, Columbia Police Department and the Adair County, Kentucky, Sheriff’s Department.
Former President of Central Kentucky Glass Company Sentenced to 27 Months in Prison for Fraud Involving Installation of Glass and Windows at Ft. Knox High SchoolRead the Press Release
– Charges pending against the company
LOUISVILLE, Ky. – The former president of Central Kentucky Glass Company, headquartered in Lexington, Kentucky, was sentenced to 27 months in prison by Senior District Judge Thomas B. Russell on Friday, October 3, 2014, after pleading guilty to a single count of wire fraud in connection with a multi-million dollar contract at Fort Knox High School, announced David J. Hale, United States Attorney for the Western District of Kentucky. Central Kentucky Glass Company (CKG) was charged separately in a grand jury indictment, with wire fraud, mail fraud and major fraud against the United States.
Dennis Martin, age 52, of Nicholasville, Kentucky, was ordered to pay the Army Corp of Engineers $74,061.88 in restitution and agreed that Barton Malow Company suffered $558,780.44 in losses as a result of the offense. Barton Malow Company and CKG reached a civil settlement for losses due to Martin’s conduct. The restitution owed shall be joint and several with CKG.
According to court records, CKG Company was a subcontractor hired by the prime contractor, Barton Malow Company, as part of a multi-million dollar Army Corps of Engineers project to refurbish Ft. Knox High School. The project included the installation of glass and windows at Fort Knox High School, located in Hardin County, Kentucky. CKG was required to provide certifications that its glass and windows were tested and met contract requirements, including anti-terrorism standards.
Martin admitted that he forged certifications from two testing companies, Bowser-Morner, Inc., and National Certified Testing Laboratories, which falsely reflected that CKG’s glass and windows had been tested and met contract requirements. On October 22, 2008, the forged certifications were faxed from CKG’s office in Kentucky to Barton Malow’s office in Ohio. In fact, CKG’s glass and windows had not been tested per the specifications of the contract, and subsequent tests conducted on behalf of the Army Corp of Engineers indicated that the glass and windows CKG installed at Fort Knox High School did not meet antiterrorism standards.
If convicted, at trial, the company faces a maximum fine of $6,000,000, and a three year period of supervised release.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Department of Defense Office of Inspector General.
U.S. Attorney Announces Successful Training for Law Enforcement on Human TraffickingRead the Press Release
– Collaborative Efforts To Aggressively Investigate And Prosecute The Illegal Trafficking of Persons into Forced Labor
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky announced the successful completion of a law enforcement training session aimed at fostering continued collaborative investigations and prosecutions of those who illegally traffic persons through forced labor.
During the training session, members of Louisville Metro Police heard from the FBI, Homeland Security Investigations, Assistant United States Attorneys, and victim resource coordinators on trends in human trafficking, strategies for multi-agency investigations, common misconceptions of human trafficking and special considerations for child victims.
“This partnership and commitment to training is taking the fight against human trafficking to a new level,” stated David J. Hale, United States Attorney for the Western District of Kentucky. “The victims of forced labor often go unseen and are unable to seek help. For this reason, it will take a continued, collaborative effort to identity and successfully prosecute these crimes,” concluded U.S. Attorney Hale.
“Human Trafficking is a crime that escapes the public conscience due to the nature of how it is perpetrated. Victims of Human Trafficking are the most vulnerable of victims. Addressing this crime takes dedication and expertise on the part of FBI Agents and the courage of witnesses and victims to make it known,” said FBI Special Agent in Charge Howard S. Marshall
“Human trafficking is a growing problem in our communities and the Louisville Metro Police Department welcomes the opportunity to train and work with our law enforcement partners to identify and rescue victims of this terrible crime and pursue justice for them,” stated Louisville Metro Police Chief Steve Conrad.
According to the Trafficking Victims Protection Act (TVPA), human trafficking includes the recruitment, harboring, transportation, provision, or obtaining of a person for labor or other services, through the use of force, fraud, or coercion, for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. It includes sex trafficking, in which a commercial sex act is induced by force, fraud, or coercion, or in which the victim is under 18 years of age.
Public outreach efforts in the United States over the last decade have significantly increased the level of awareness of human trafficking in its various forms. While sex trafficking is currently the most recognized form of human trafficking, labor trafficking is found in almost every industry including: agricultural, construction, domestic servitude, escort services, factories, hotels, restaurants, prostitution and strip clubs.
The U.S. Attorney’s Office for the Western District of Kentucky is currently prosecuting two alleged human trafficking cases: one in Owensboro (U.S. v Jathar Williams) and another in Louisville (U.S. v Christopher).
For more information on human trafficking see the Department of Justice Civil Right Division at http://www.justice.gov/crt/about/crm/htpu.php.
Former Owner of Mortgage Lending Company Charged with Bank FraudRead the Press Release
– Submitted 53 fraudulent funding requests for nonexistent mortgage loans totaling $17,900,000
LOUISVILLE, Ky. – The former owner of an Orange County, California mortgage lending company was charged by federal grand jury in Louisville, with devising a scheme to defraud and to obtain moneys owned or under the custody and control of National City Bank and PNC Bank, financial institutions, of $12,000,000 by submitting fraudulent funding requests for nonexistent mortgage loans announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the single count indictment, Brady Bunte, age 49, of Orange County, California, from March 2007 through November 2008, caused his company, Trust One Mortgage, LLC (Trust One), to submit approximately 53 fraudulent funding requests on its warehouse line of credit to National City Bank (NCB) and PNC Bank (PNC). Each of the approximately 53 fraudulent funding requests was for a nonexistent mortgage loan. The fraudulent funding requests caused NCB to issue approximately $17,900,000 in moneys to Trust One.
Further, from approximately March 2007 through October 2008 the fraudulent funding requests submitted by Trust One and Bunte caused NCB to suffer a loss of approximately $12,000,000. NCB’s warehouse lending operations were located in Louisville, Kentucky. In or around October 2008, PNC acquired NCB.
As a warehouse lender, NCB provided revolving, short-term loans, known as warehouse lines of credit, to mortgage lenders. The mortgage lenders, such as Trust One, were required to pay off specific loans issued on its warehouse line, by warehouse lenders, within a set period of time or when the warehouse lender demanded payment.
Bunte was charged in a sealed indictment on September 18, 2014. He was arraigned on the charge yesterday in U.S. District Court located in Santa Ana, California, and was released on a $100,000 third-party bond.
If convicted at trial, Bunte could be sentenced to no more than 30 years in prison, a five year period of supervised release and fined $1,000,000.
This case is being prosecuted by Assistant United States Attorneys Bryan Calhoun and 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.Former Police Officer and School Administrator Charged with Violating Federal Child Sex Abuse LawsOther School Officials Charged with Failing to Report the AbuseRead the Press Release
LOUISVILLE, Ky. – A federal grand jury charged a Grayson County, Kentucky, man with violating federal laws designed to protect children from sexual abuse as well as threatening/intimidating a witness. The grand jury also charged several other school officials with failing to report the abuse, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Stephen E. Miller, age 44, previously worked as a police officer in Leitchfield, Kentucky. He resigned the position following complaints of inappropriate sexual activity 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. He is charged with engaging in sexual contact with three students, including an incident of aggravated sexual abuse with one of the three. The incidents occurred between February and August, 2013. The Indictment also charges Miller with attempting to threaten or intimidate the third student to prevent her from reporting the matter to law enforcement.
Additionally, the grand jury charged school officials, John W. Smith, Leroy Burgess, Jr., Kemmye S. Graves, Rolanshia Windom, Rita Carthen, and Gabriel Onusko with failing to report the first incident of abuse to law enforcement officials, as required by federal law.
If convicted, Miller faces a maximum sentence of life in prison, a fine of up to $1,250,000 and at least five years of supervised release. The remaining defendants, if convicted, face maximum sentences of one year in prison, a fine of up to $100,000 and up to one year of supervised release. Miller is being held in the custody of the United States Marshals Service.
Assistant United States Attorneys Jo E. Lawless and Stephanie Zimdahl are prosecuting the case. The Federal Bureau of Investigation (FBI) with assistance from the Army Criminal Investigation Division conducted the investigation.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Louisville Physician Charged with Prescribing Medications That Resulted in the Death of A PatientRead the Press Release
– Charges Include Multiple Counts Of Unlawful Distribution Of Controlled Substances, Health Care Fraud And Money Laundering
LOUISVILLE, Ky. – A Louisville physician was charged today, by a federal grand jury, with prescribing medications that resulted in the death of a patient, as well as multiple counts of unlawful distribution of controlled substances, health care fraud and money laundering announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the superseding indictment, George Kudmani, age 69, between July 29, 2009 and May 3, 2010, executed a scheme to defraud Medicare that ultimately resulted in a patient’s death on May 5, 2010. According to the charge, Kudmani fraudulently submitted claims for medically unnecessary services and dispensed medically unnecessary controlled substance prescriptions to the patient, in exchange for money, knowing that the patient would fill her prescriptions at pharmacies and pharmacies in turn would submit claims to health care programs for reimbursement. It’s alleged that those prescriptions ultimately resulted in the patient’s death.
Further, defendant Kudmani is charged with a second count of health care fraud for falsely and fraudulently billing Kentucky Medicaid (Passport) and other medical benefit programs by submitting claims for medically unnecessary Transvaginal Ultrasounds (TVS), TVSs not performed, and billing for TVS reports that were never prepared for patients, between January 2009 through September 2012.
The superseding indictment charges Kudmani with eleven additional counts, (for a total of 22) of unlawful distribution and intentionally distributing and dispensing controlled substances, not for a legitimate medical purpose and beyond the bounds of a professional medical practice, between July 2009 and September 2012. The controlled substances allegedly prescribed were Oxycodone, a schedule II controlled substance, and Hydrocodone, a schedule III controlled substance.
In addition, Kudmani is charged with one count money laundering for purchasing a 2012 Honda Accord with $15,000 in cash and a $5,971.63 check from money derived from an unlawful activity, that is the unlawful dispensing and distribution of controlled substances and health care fraud.
Beginning in December of 1980, Kudmani operated an obstetrician/gynecological medical practice located at 9702 Stonestreet Road, in Louisville, Kentucky. The practice did not employ any other individual with medical training. A typical first-time patient would pay $75 for a gynecological exam, and each visit thereafter, the patient would typically pay $35 in cash and receive a Schedule II-V controlled substance prescription without a physical examination.
Kudmani was initially charged in a 14 count indictment on December 4, 2013. If convicted at trial, Kudmani faces a maximum potential penalty of life in prison, a fine of $14,500,000, and a 5 year period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and was investigated by the United States Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Kentucky Medical Fraud Control Unit and Louisville Metro Police Department (LMPD).
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 Bookkeeper at Saint Gabriel the Archangel Church and School Charged with Embezzling FundsRead the Press Release
LOUISVILLE, Ky. – The former bookkeeper at Saint Gabriel the Archangel Church and School was charged today, by federal grand jury, with embezzling $83,191 in funds from the Louisville parish by means of wire fraud announced David J. Hale, United States Attorney for the Western District of Kentucky.
Beginning on or about August 13, 2010, and continuing to on or about August 6, 2013, Tammy Goodlett, 47, devised a scheme to defraud Saint Gabriel. According to the single count indictment, Goodlett committed wire fraud when, as bookkeeper, she exceeded her authorized access by transferring funds from Saint Gabriel’s bank account to her own bank accounts, made unauthorized credit card expenditures, and manipulated financial records to make unpaid debts appear paid, and by means of such fraud, obtained funds and services to which she was not entitled.
Further, on or about August 9, 2012, Goodlett, initiated an electronic transaction in the amount of $4,000 from Saint Gabriel’s bank account with Fifth Third Bank into her own personal bank account, which caused an interstate wire transaction to be initiated from Fifth Third Bank’s servers, located in Kentucky, to the Federal Reserve Bank’s servers, located in New Jersey.
If convicted at trial, Goodlett could be sentenced to no more than 20 years in prison, could be fined no more than $250,000 and serve no more than three years of supervised release.
This case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and is being investigated by the United States Secret Service and the Louisville Metro Police Department.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Former Army Energy Program Manager Faces Additional Charges of Defrauding the Army at Fort KnoxRead the Press Release
LOUISVILLE, Ky. – A former Fort Knox Energy Program Manager was charged in a second superseding indictment today with devising multiple wire fraud schemes to defraud the United States and violating criminal conflict of interest laws, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Gary T. Meredith, age 65, of Leitchfield, Kentucky is charged in a 38 count second superseding indictment. According to the indictment, while he was still a government employee Meredith violated federal conflict of interest laws by creating a contract establishing a lucrative post-retirement job for himself as a contractor with Nolin Rural Electric Cooperative Corporation (Nolin). In the process of creating the outside job as a contractor, Meredith is charged with fraudulently diverting to Nolin a $582,329.85 credit received by the U.S. Army from Louisville Gas & Electric Company, for the purpose of funding his post-retirement contract position with Nolin.
Once Meredith began working as a Nolin contractor in October 2007, the indictment alleges that he violated another criminal conflict of interest law by representing Nolin before the Army, with the intent to influence, on the same contracts and matters that he had participated in personally and substantially before his retirement, while an Army employee. Meredith continued working as a Nolin contractor at Fort Knox until April 2012, when Senior District Judge John G. Heyburn II granted the United States’ motion for a restraining order, in a separate civil lawsuit, which barred Meredith from continuing to receive payment for work in the contractor position.
The second superseding indictment further charges Meredith with numerous counts of wire fraud committed while a Nolin contractor, including:
- Between January 2009 and August 2010, Meredith created a scheme to defraud the United States at Fort Knox by instructing Nolin to overbill for natural gas provided under Energy Conservation Order (ECO) 70. Meredith then approved the fraudulently inflated bills for payment, resulting in over $320,000 in overpayments to Nolin.
- Between January 25, 2010 and February 26, 2010, Meredith devised a scheme to defraud the United States Army at Fort Knox by instructing Nolin RECC to charge nearly $200,000 in unauthorized ECO 68 related expenses (ECO 68 was never approved) to ECO 78, an unrelated but approved contract. Meredith then approved the fraudulent ECO 78 invoices for payment by the Army.
- Between February 19, 2010 and May 26, 2010, Meredith devised a scheme to defraud the United States Army at Fort Knox by instructing Nolin to charge over $94,000 in unapproved and unauthorized expenses for a solar panel project to ECOs 13, 53, and 70, unrelated but approved contracts. Meredith then approved the fraudulent invoices for payment by the Army.
- Meredith knew that Nolin RECC could not charge the Army for services before those services were rendered, but on October 20, 2009, Meredith approved a $190,401 Nolin invoice for one year of Meredith’s contractor salary in advance.
On September 8, 2014, the Department of Defense, Office of Inspector General, released a report of an audit conducted on the Fort Knox energy program. Amongst other things, the audit concluded that “Fort Knox officials did not properly award and administer 108 task orders, valued at about $270 million, for energy savings projects. In addition, Fort Knox officials could not support the claim that projects achieved the projected energy savings. . . . Furthermore, the lack of adequate internal controls increases the risk of fraud, waste and abuse.” http://www.dodig.mil/pubs/report_summary.cfm?id=5958
If convicted of the charges, Meredith faces a maximum sentence of 730 years in prison, a maximum fine of $9,500,000, and a maximum three year period of supervised release. This case is being prosecuted by Assistant United States Attorney David Weiser and was investigated by the Defense Criminal Investigative Service (DCIS), Dayton Resident Agency.
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 Charged with Embezzling over $800,000 from His EmployerRead the Press Release
– Alleged to have manipulated accounting entries to pay himself bonuses
LOUISVILLE, Ky. – The indictment of a Shepherdsville, Kentucky man, charged with multiple counts of wire fraud, was unsealed Friday, September 5, 2014, in United States District Court, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Robert Kaiser, 58, was charged in a twelve count Indictment on September 4, 2014 with theft of more than $800,000 from his employer, C&M Services of Kentucky, Inc. (“C&M Services”) between June 6, 2006 and March 26, 2013, and with an attempt to defraud Fifth Third Bank by submitting fraudulent financial statements to obtain a loan.
According to the Indictment, Kaiser caused unauthorized transfers of monies to accounts he controlled, by fraudulently manipulating accounting entries in order to pay himself performance compensation and bonuses. Further, the Indictment alleges that 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 allegedly submitted materially false financial statements to Fifth Third Bank to obtain a revolving loan line of credit in the amount of $1,815,000.
“When the Secret Service receives allegations about people of high standing in companies taking advantage of their position of trust, we will investigate possible criminal activity,” stated Special Agent in Charge Paul R. Johnson of the U.S. Secret Service Louisville Field Office. “The Secret Service is committed to vigorously pursuing ‘Trusted Insiders’ who operate illegally within business organizations.”
If convicted at trial, Kaiser would forfeit real property he obtained, directly or indirectly, as a result of the violations alleged in the Indictment. Kaiser could be sentenced to no more than 20 years in prison for counts 1-11 of the indictment and no more than 30 years for count twelve, a fine of $1,250,000 and three years of supervised release.
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.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Russellville, Kentucky, Convicted Felon Sentenced to 151 Months in Prison for Distribution of A Controlled Substance and Possession of A FirearmRead the Press Release
– Formerly convicted of facilitation to murder, promoting contraband and trafficking in a controlled substance
BOWLING GREEN, Ky. – A Logan County, Kentucky man formerly convicted of facilitation to murder, promoting contraband, and trafficking in a controlled substance was sentenced yesterday in U.S. District Court by Senior Judge Thomas B. Russell to 151 months in prison, followed by three years of supervised release, for multiple charges of distribution of a controlled substance and possession of a firearm by a convicted felon, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kelly Dewayne Morris, a/k/a Kelly Crenshaw, age 36, previously admitted in court to being a felon in possession of a Taurus, model 856, .38 Special revolver, and five rounds of .38 Special ammunition, possession of body armor, and three counts of possession and distribution of crack cocaine.
According to the indictment, between August 1, 2013 and October 18, 2013, in Logan County, Kentucky, Morris possessed the firearm and body armor, and distributed crack cocaine to a confidential informant.
Morris was convicted of robbery and facilitation to murder in Todd County, Kentucky, Circuit Court on January 21, 2009. Further, Morris was convicted of promoting contraband in Warren County, Kentucky, Circuit Court on July 5, 2001, and Trafficking in cocaine in Logan Circuit Court on February 15, 1999.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the South Central Kentucky Drug Task Force.
Founder of USA Harvest Sentenced to 24 Months in Prison for Embezzling from the Charity and Tax FraudRead the Press Release
– Hugh “Stan” Curtis ordered to pay $183,354 in restitution
LOUISVILLE, Ky. – USA Harvest founder, Hugh “Stan” Curtis was sentenced today by Chief Judge Joseph H. McKinley Jr., to serve 24 months in prison, followed by a three year period of supervised release and ordered to pay $183,354 in restitution, announced David J. Hale, United States Attorney for the Western District of Kentucky. Restitution to the IRS will be handled independently by the civil division of the IRS, and the amount owed in taxes will be calculated independently by the IRS. Curtis pleaded guilty in U.S. District Court in Louisville to a to a seven count federal indictment charging him with mail fraud, money laundering and filing false income tax returns with the Internal Revenue Service (IRS) on July 3, 2014.
“As founder and sole officer of USA Harvest, Stan Curtis occupied a position of significant responsibility and trust. He abused that trust by diverting charitable donations intended for the poor and hungry,” stated U.S. Attorney Hale. “Curtis will spend 24 months in prison and has been ordered to pay back the $187,354 that he stole from the foundation and used for his own personal benefit.”
Curtis, 65, of Louisville, Kentucky, admitted that from September 2005 through September 2007, he stole $183,354 in donations that he solicited on behalf of USA Harvest, non-profit, I.R.C. 501(c)(3) organization he founded. Of these donated funds, Curtis acknowledged that he deposited $164,620 into his personal account and cashed donation checks totaling $18,734 – and thereafter used the funds for his personal benefit. The $164,620 includes checks written to USA Harvest on August 29, 2007 for $20,000 from Play Like the Pros, LLC and a September 5, 2007 donation from Richemont North America, Inc., for $25,000 which Curtis deposited into his own personal bank account and used for his own personal gain. Curtis did not report the $183,354 as income with the Internal Revenue Service.
Curtis also admitted that from 2005 through 2008, he failed to report to the Internal Revenue Service approximately $553,891.67 in personal income derived from donations made to USA Harvest. From 2005 through 2008 Curtis falsely included approximately $353,165 in unreimbursed travel expense deductions on his federal income tax returns. Of the $553,891.67 in unreported income, Curtis used approximately $370,537.67 in USA Harvest funds to pay for personal meals, personal travel and personal entertainment expenses. In total, defendant Curtis failed to pay $270,000 in federal income tax from calendar years 2005 through 2008.
Curtis admitted to filing false tax returns with the IRS. In 2005, Curtis failed to report approximately $160,549.56 in income and falsely deducted approximately $134,623 in unreimbursed travel expenses from USA Harvest on his 2005 federal income tax return filed on April 15, 2006. For the year 2006 Curtis failed to report approximately $217,085.18 income and falsely deducted approximately $130,739 in unreimbursed travel expenses from USA Harvest on his 2006 federal income tax return filed on May 9, 2007. For the year 2007 Curtis failed to report approximately $97,264.48 and falsely deducted approximately $87,803 in unreimbursed travel expenses from USA Harvest on his federal income tax return filed on April 15, 2008. For the year 2008 Curtis failed to report approximately $78,992.45 in income from USA Harvest on his 2008 federal income tax return filed on October 16, 2009. The return was filed by Curtis and signed under the penalty of perjury.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Internal Revenue Service, Criminal Investigations Division.
Barren County, Kentucky, Fugitive Sentenced to 156 Months in Prison for Burglary and Possession of Firearms by A Convicted FelonRead the Press Release
Bowling Green, Ky. – A Barren County, Kentucky, convicted felon was sentenced in U.S. District Court yesterday, by Senior District Judge Thomas B. Russell, to 156 months in prison, followed by five years of supervised release, for multiple firearms violations announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jeremy Lee Wilson, age 36, of Glasgow, Kentucky, pleaded guilty on August 6, 2013, to breaking in to the M&B Pawn Shop, located in Glasgow, on November 30, 2012, and to stealing nine firearms from a display case. Wilson pleaded guilty to being a felon in possession of firearms, possession and concealment of stolen firearms and theft of firearms shipped or transported in interstate commerce from a person licensed to deal in firearms. During the course of the burglary, Wilson caused $800 in damage to the M&B Pawn Shop property.
According to an Affidavit attached to the Criminal Complaint, Wilson was stopped by a Kentucky State Police Trooper and Barren County Sheriff’s Deputy on December 1, 2012, while walking on North 31E. A jacket containing the nine stolen firearms was found near-by and eight of the firearms still had the M&B price tags on them.
At the time of his arrest, Wilson was a fugitive, wanted in Tyler, Texas, for the October 1, 2012, theft of four firearms from a Wal-Mart. The Texas conduct was accounted for in the sentence imposed today in Kentucky. Further, Wilson is an armed career criminal with four prior felony convictions from Texas and Arkansas dating back to November 2001.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Glasgow Police Department, the Barren County Sheriff’s Department and Kentucky State Police.
Owner of Bankrupt Young Oil Company Sentenced to 33 Months for Securities Fraud, Mail Fraud, Failure to File Income Tax Returns, and Illegal Possession of A FirearmRead the Press Release
LOUISVILLE, Ky. – The owner of bankrupt Young Oil Company was sentenced to 33 months in prison today, by Senior U.S. District Judge Thomas B. Russell, for charges included in three separate indictments including failure to file an income tax return with the Internal Revenue Service, mail fraud in connection with the solicitation of investor funds for oil drilling partnerships, securities fraud, submitting false statements for the purchase of a firearm, and for the illegal possession of a firearm by a person addicted to controlled substances announced David J. Hale, United States Attorney for the Western District of Kentucky.
Anthony L. Young, 54, of Metcalfe County, Kentucky, fraudulently solicited investments through his company, Young Oil Corporation between November 2007 through December 2008. According to a March 8, 2014, plea agreement, Young falsely represented the cost to investors in three separate oil drilling partnerships. Investors believed the $750,000 solicited for each oil well represented the total drilling costs. However, Young admitted to using the majority of the money for other purposes including personal use. Also, during this same period, Young, by use of the United States mail, did defraud others, make untrue statements of material fact, and engage in acts, that operated as a fraud and deceit upon investors under programs under Young Oil Corporation with the purchase and sale of a security. Young did this by misrepresenting the total costs for each of the three Prospects and by misrepresenting his actual use of investor money.
Also, Young failed to file federal income tax returns as required by law for calendar years 2005 and 2006. During this time Young received taxable income of $496,000 in 2005, and his tax due was $133,943. In calendar year 2006, Young received taxable income of $1,167,000, and, was therefore legally required to file a federal income tax return. His tax due was $359,485 for 2006.
Young was also sentenced today, for causing another person to knowingly make a false statement and representation on an ATF Form 4473 in purchasing a .45 caliber pistol from a licensed firearms dealer and that he possessed the Hi-Point, Model JHP, .45 caliber pistol while being a person addicted to controlled substances, including cocaine and oxycodone.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Kentucky Department of Financial Institutions, Division of Securities, the Internal Revenue Service Criminal Investigation Division, U.S. Postal Inspection Service, the United States Secret Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Livermore, Kentucky, Felon Sentenced to 12 Months in Prison for Distribution of Anabolic Steroids and Possession of A FirearmRead the Press Release
OWENSBORO, Ky. – A convicted felon, who resided in Livermore, Kentucky, was sentenced today in U.S. District Court, by Chief Judge Joseph H. McKinley Jr., to 12 months in prison, followed by a three year period of supervised release, for possession with the intent to distribute anabolic steroids and for the illegal possession of a firearm by a convicted felon, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Wayne B. Williams pleaded guilty to the four count federal indictment on May 14, 2014. According to the plea agreement, on March 29 and April 3, 2013, Williams delivered anabolic steroids to an Owensboro Police Department (OPD) confidential source. Thereafter, on April 24, 2013, Williams was arrested for the two deliveries and a search warrant was executed at his home. During the search of Williams home, Kentucky State Police and OPD found numerous viles of anabolic steroids and labels for the steroids. They also found a Highpoint .380 caliber semiautomatic firearm and six rounds of .380 ammunition in a magazine, and an additional .40 rounds of .380 ammunition. Williams was previously convicted of a federal felony on June 27, 2011 and is prohibited from possessing a firearm or ammunition.
If convicted at trial, Williams faced up to 25 years in prison, a fine of $1,000,000 and a minimum term of supervised release of atleast two years and up to any number of years, including life.
This case was prosecuted by Assistant United States Attorney Daniel Kinnicut and was investigated by the Owensboro Police Department, Kentucky State Police and the McLean County Sheriff’s Department.
Henderson, Kentucky, Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
OWENSBORO, Ky. – A Henderson County, Kentucky man pleaded guilty in U.S. District Court today, before Chief Judge Joseph H. McKinley Jr., to three charges of bank robbery, announced David. J. Hale, United States Attorney for the Western District of Kentucky.
Weston Neel Hurd, age 40, pleaded guilty to robbing two banks located in Owensboro, Kentucky and one bank located in Henderson, Kentucky,
In court, Hurd admitted that on August 6, 2012, in Henderson County, Kentucky, he robbed the Ohio Valley Financial Group, located at 400 Barret Boulevard, in Henderson, of approximately $2,651 by force, violence and intimidation. Neel admitted that on October 2, 2012, in Daviess County, Kentucky, he robbed the Kentucky Telco Federal Credit Union, located at 933 Tamarack Road, in Owensboro, of $2,878 by force, violence and intimidation. Neel further admitted that on December 28, 2012, in Daviess County, Kentucky, he robbed the First Security Federal Bank, located at 3560 Frederica Street, Owensboro, of $1,131 by force, violence and intimidation.
If convicted at trial, Hurd faced no more than 20 years for each count, for a combined total of 60 years in prison, a $250,000 fine for each count, and a three year period of supervised release. Hurd is being held in the Daviess County Detention Center. Sentencing is scheduled before Chief Judge McKinley, in Owensboro, on November 24, 2014.
This case is being prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and is being investigate by the Federal Bureau of Investigation (FBI), Owensboro Police Department and Henderson Police Department.
Crittenden County, Kentucky, Felon Sentenced to 15 Years in Prison for Possession and Distribution of MethamphetamineRead the Press Release
– Maintained a home in Marion for the purposes of manufacturing, storing and selling Meth
PADUCAH, Ky. – A Crittenden County, Kentucky, convicted felon was sentenced in U.S. District Court this week, by Senior Judge Thomas B. Russell, to 15 years in prison followed by five years of supervised release for multiple charges related to the possession and distribution of methamphetamine announced David J. Hale, United States Attorney for the Western District of Kentucky.
Barry Kenton Beard remains in the custody of the U.S. Marshals Service following sentencing yesterday in Paducah. Beard pleaded guilty to all four charges in the federal indictment on May 15, 2014. According to the plea agreement, Beard admitted that between August 2012, and December 15, 2012, he conspired with others, including Crystal Green and Mitch Duckett, to possess with the intent to distribute 50 grams or more of methamphetamine. Further, Beard admitted that he knowingly aided in the maintenance and use of a home located on Tom Miner Road in Marion, Kentucky, for the purpose of storing and distributing methamphetamine. Beard also admitted to being a convicted felon in possession of a DPMS model A15, .223 semi-automatic rifle. In September, 2010, Beard was convicted in Crittenden County Circuit Court of fleeing or evading police, possession of a controlled substance and tampering with physical evidence. In August, 2004, Beard was convicted of aggravated assault in the 4th degree (spouse abuse) in Crittenden County Circuit Court.
If convicted at trial, Beard could have been sentenced to a combined minimum sentence of ten years in prison and up to and including a maximum sentence of life in prison.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Kentucky State Police.
Jackson, Mississippi, Man Convicted of the Attempted Online Extortion of the University of Louisville Athletic AssociationRead the Press Release
LOUISVILLE, Ky. – A Jackson, Mississippi, man was convicted in U.S. District Court today, following a day-and-a-half jury trial, on a single count of extortion, by means of a threatening interstate communication, announced David J. Hale, United States Attorney for the Western District of Kentucky.
The jury deliberated less than two hours before convicting Thomas E. Ray, age 36, of Jackson, Mississippi.
Ray was indicted by a federal grand jury meeting in Louisville, Kentucky, on October 16, 2013. The indictment was unsealed on October 24, 2013, following Ray’s arrest in Mississippi, by the U.S. Marshal Service.
According to evidence presented at trial, Ray used the alias “Melinda White” when he knowingly sent an email communication from his home in Jackson, to the Commonwealth of Kentucky, on April 23, 2013. Ray’s email was sent to two University of Louisville employees with a threat to injure the reputation of the University of Louisville Athletic Association and a demand for $3.5 million.
Ray faces no more than two years in prison, a maximum fine of $250,000 and a one year period of supervised release. Ray was taken in to custody by the U.S. Marshal Service in Louisville and is scheduled for sentencing before Chief Judge Joseph H. McKinley Jr. on November 3, 2014, in Louisville.
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and was investigated by the Federal Bureau of Investigation (FBI), Louisville Metro Police Department, and Office of the Kentucky Attorney General.
Bowling Green, Kentucky, Man Sentenced to 10 Months in Prison for Growing Marijuana in Mammoth Cave National Park and Warren CountyRead the Press Release
BOWLING GREEN, Ky. - A Bowling Green, Kentucky, man was sentenced this week in United States District Court by Chief Judge Joseph H. McKinley Jr., to 10 months in prison followed by two years of supervised release for conspiracy to manufacture marijuana inside Mammoth Cave National Park and inside a residence located in Warren County, Kentucky announced David J. Hale, United States Attorney for the Western District of Kentucky.
Robert Williams, age 28, pleaded guilty to a four-count federal indictment in April 2014. Williams admitted that between May 4, 2011, and October 8, 2011, he and co-defendant Ryan Pitcock, of Bowling Green, knowingly and intentionally conspired to manufacture less than 50 Kilograms of marijuana, a schedule I controlled substance inside Mammoth Cave National Park. Williams also admitted to manufacturing marijuana and mushrooms containing psilocin and psilocybin within their residence in Warren County.
According to the plea agreement, search warrants obtained by Kentucky State Police for Williams’ and Pitcock’s apartment in Warren County revealed an extensive marijuana growing operation, processed marijuana for distribution, mushrooms containing psilocin and psilocybin being grown and packaged for distribution, and several stun guns.
Williams was charged by federal grand jury indictment on February 15, 2012, and was arrested by U.S. Marshals on November 4, 2013, in Florida.
Pitcock pleaded guilty to the charges on August 21, 2012 and was sentenced by Chief Judge McKinley to 12 months and one day in prison followed by a two year period of supervised release.
The case was prosecuted by Assistant United States Attorney Joshua Judd, and it was investigated by the National Park Service Rangers and the Kentucky State Police.
Russell Springs, Kentucky, Business Pays $750,000 in Restitution and Forfeitures for Role in Contraband Cigarette TraffickingRead the Press Release
BOWLING GREEN, Ky. – Tantus Tobacco, LLC, a Russell Springs, Kentucky, company paid $750,000 in restitution and forfeitures this week, in U.S. District Court, after being sentenced by Chief Judge Joseph H. McKinley Jr., on a single charge of conspiracy to engage in contraband cigarette trafficking, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Tantus Tobacco, LLC pleaded guilty to a Superseding Information and paid restitution in the amount of $200,000 to the Kentucky Revenue Cabinet in lost taxes and $60,000 to the Kentucky Attorney General’s Office for its assistance in the tobacco investigation. Tantus Tobacco, LLC forfeited $490,000 to the United States.
Tantus Tobacco, a cigarette manufacturing facility located in Russell Springs, Kentucky, acting by and through its officers and employees, aided and abetted by Jerry Burke and Charles Wells, pleaded guilty to making false material statements in reports required to be made to governmental tobacco regulatory divisions of the United States and the State of Mississippi between October 2007 through July 2008. Charles Wells was sentenced in U.S. District Court located in Aberdeen, Mississippi, to 24 months in prison and two years of supervised release on August 8, 2011. Jerry Burke was sentenced in U.S. District Court located in Aberdeen, Mississippi, to 24 months in prison, two years of supervised release and ordered to pay $525,000 in restitution, on January 19, 2011.
According to the plea agreement, from at least January 2008 to May 2008, Tantus Tobacco manufactured Berley and Berkley brand cigarettes, which they sold to Charles Wells, a cigarette wholesale distributor in Kentucky. Escrow payments are due on the Berley cigarettes, but not the Berkley. Wells would obtain the cigarettes directly from the Tantus Tobacco facility located in Russell Springs, Kentucky. However, Tantus Tobacco aided and abetted the creation of false documentation indicating that the cigarettes had been sold to J&B Wholesale (owned and operated by Jerry Burke) in Mississippi, which false documents were submitted to the State of Mississippi. These false documents allowed Tantus Tobacco to avoid making manufacturer Non-Participating Manufacturer escrow payments on the subject cigarettes and to sell the cigarettes to Wells at a discount. J&B Wholesale, in turn, submitted false and fraudulent Mississippi Tobacco Excise Returns reporting that the cigarettes were received and sold in Mississippi to the State Tax Commission in Mississippi in violation of tobacco sales reporting requirements. These false Mississippi Tobacco Excise Returns were submitted, in whole or in part, due to the cigarette diversion scheme described above in which Tantus Tobacco was an active participant.
A wholesaler selling cigarettes in Mississippi must file a monthly Tobacco Excise Return with the State Tax Commission showing the number of unstamped cigarettes received that month, plus the cigarettes stamped and available for sale that month, plus the cigarettes sold to licensed wholesalers and exempt persons that month, as well the cigarettes shipped or sold out of state, and the net taxable cigarettes and other pertinent information.
This case was prosecuted by Special Assistant United States Attorney Robert Mims (Northern District of Mississippi), Assistant United States Attorney Randy Ream, and was investigated by the Federal Bureau of Investigation (FBI) Mississippi Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Bowling Green, Kentucky, Man Sentenced to 24 Months in Prison for Shipping Firearms InternationallyRead the Press Release
– Firearms were secreted inside video game systems for shipment to foreign addresses
BOWLING GREEN, Ky. – A Bowling Green, Kentucky, man was sentenced in United States District Court yesterday, to 24 months in prison, followed by two years of supervised release for exporting firearms from the United States announced David J. Hale, United States Attorney for the Western District of Kentucky.
Adam Bunger, age 34, pleaded guilty to a four-count federal Indictment on March 5, 2014 in Bowling Green before Chief United States District Judge Joseph H. McKinley, Jr. According to the plea agreement, between June 13, 2013, and August 8, 2013, Bunger knowingly exported and sent firearms from the United States. He did so contrary to the laws and regulations of the United States. Specifically, he placed in the United States Mail a number of parcels that included firearms that had been hidden inside videogame systems. He shipped the firearms to Australia, Sweden, and the United Kingdom. Two of the firearms shipped in foreign commerce had the manufacturer’s serial number removed, obliterated, and altered.
Bunger was not a licensed importer, licensed manufacturer, or licensed dealer of firearms. Nevertheless, he willfully engaged in the business of dealing in firearms. In the course of that conduct, he shipped and transported firearms in foreign commerce as specified above. He also knowingly and willfully delivered packages to a common or contract carrier for transportation and shipment in foreign commerce. The persons receiving the shipments from Bunger were not licensed importers, licensed manufacturers, licensed dealers, or licensed collectors of firearms. Additionally, Bunger did not provide written notice to the carrier that the packages contained firearms or ammunition.
According to an Affidavit attached to a Criminal Complaint, Australian Federal Police contacted a Special Agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives on July 8, 2013, after a forensic examination of a parcel shipped from Bowling Green, Kentucky, revealed two empty magazines, gun parts and a Modelo Super 9mm pistol inside an Xbox game system’s interior cavity. The gun sale was made through a website -- Black Market Reloaded. On July 18, 2013, two international packages were seized from the Bowling Green Post Office and a search warrant revealed a disassembled, Uzi-style pistol having an obliterated serial number contained inside a hollow Xbox console, addressed to an individual in the United Kingdom. The second international package, addressed to an individual in Australia, contained firearm parts for an assault rifle which were concealed inside a DVD player. On August 9, 2013, a federal search warrant was obtained and executed on the other international package seized from the U.S. Post Office branch in Bowling Green. The package, addressed to an individual in Sweden, contained a disassembled Taurus .22 caliber pistol with an obliterated serial number and magazine. The firearm was contained inside a metal computer switching power supply box. Two postal clerks identified the defendant, Adam Bunger, as the individual who attempted to ship the international packages.
Assistant United States Attorney Jo E. Lawless is prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), in conjunction with the Australian Federal Police, and with the assistance of the United States Postal Inspection Service, conducted the investigation.
Louisville Felon Pleads Guilty to Robbing Multiple Jefferson County Restaurants – One at GunpointRead the Press Release
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, announced the guilty plea of a Louisville felon, this week, in United States District Court, to charges of robbing three restaurants located in Jefferson County, Kentucky, and in one instance, to brandishing a firearm.
Kenneth Dion Flintroy, Jr., age 24, pleaded guilty before District Judge Joseph H. McKinley Jr., to four counts of a seven count indictment, on Monday, August 4, 2014, in Louisville. Flintroy admitted to robbing the McDonald’s located at 7426 3rd Street Road on April 16, 2013. Further, Flintroy admitted to holding up the Papa John’s Store located at 6902 Southside Drive on April 16, 2013, and the McDonald’s located at 8600 Dixie Highway on May 2, 2013. In the case of the robbery at 8600 Dixie Highway, Flintroy admitted to brandishing a firearm.
According to court records, on May 23, 2011, Flintroy was convicted of three counts of trafficking in a controlled substance within 1000 yards of a school, and three counts of possession of drug paraphernalia in Callaway County Circuit Court located in Murray, Kentucky.
If he had been convicted of all seven counts at trial, Flintroy faced no less than 57 years in prison and no more than life, a fine of up to $1,750,000 and up to and including a life term of supervised release.
This federal prosecution stems from “Project Recoil,” the ongoing partnership of multiple law enforcement agencies, developed by U.S. Attorney Hale, to maximize penalties for the most violent repeat offenders, and to reduce violent crime in our community.
This case is being prosecuted by Assistant United States Attorneys Tom Dyke and Amanda Gregory and is being investigated by the Louisville Metro Police Department.
Jefferson County, Kentucky, Man Sentenced to 70 Months in Prison and Ordered to Pay Restitution for Multiple Bank RobberiesRead the Press Release
– Tellers feared for their lives as defendant claimed to have a bomb
– Also sentenced today, to serve 6 months in a separate, federal fraud caseLOUISVILLE, Ky. – A Louisville man was sentenced today, by U.S. District Judge Joseph H. McKinley Jr., to serve 70 months in prison for the robbery of four banks located in Jefferson County, Kentucky, during a two week period, and ordered to pay restitution in the amount of $11,960 announced David J. Hale, United States Attorney for the Western District of Kentucky.
Robert Scott Manley, age 51, admitted to using force, violence, and intimidation when he robbed four banks in Jefferson County between December 20, 2012 and December 31, 2012. According to information presented in court, Manley threatened bank employees by stating he had a bomb and threatened to detonate the bomb. On January 14, 2014, Manley pleaded guilty to taking $2,170.00 from the PNC Bank, located at 3910 Taylorsville Road, on December 20, 2012; taking approximately $3,580.00 from the Chase Bank, located at 8120 New LaGrange Road, on December 24, 2012; to taking approximately $1,510.00 from the BB&T Bank, located at 10403 Dixie Highway on December 27, 2012; and to taking approximately $4,750.00 from the River City Bank, located at 2501 Bardstown Road. At the time of the robberies, all deposits were insured by the Federal Deposit Insurance Corporation (FDIC).
Further, Manley was sentenced to serve 6 months consecutively to the 70 month sentence for failure to comply with the terms of his supervised release in a separate, federal fraud case.
If convicted at trial, Manley faced a sentence of no more than 80 years in federal prison, a fine of $1,000,000., and a period of no more than five years of supervised release. Manley was arrested by U.S. Marshals on January 2, 2013, in Louisville.
This case was prosecuted by Assistant United States Attorney Randy Ream with assistance from Special Attorney Sungtae Kang, and was investigated by Louisville Metro Police and the Federal Bureau of Investigation (FBI).
Elgin Mining Company Pays $3,221,292 to Settle Alleged Violations of the Clean Water Act at Former Mining Sites in Western KentuckyRead the Press Release
LOUISVILLE, Ky. – Elgin Mining Company of Vancouver, British Columbia, has agreed to settle non-compliance issues, associated with the Clean Water Act, for failure to perform mitigation requirements at former mining sites in Kentucky’s Muhlenberg and Crittenden counties in Kentucky. As a result, Elgin Mining and its subsidiaries have agreed to pay a $3,221,292 settlement announced David J. Hale, United States Attorney for the Western District of Kentucky and the U.S. Army Corps of Engineers.
Between 2005 and 2009, the Army Corps of Engineers Louisville Division (USACE) issued four permits or authorizations pursuant to Section 404 of the Clean Water Act, to three companies which at the time were wholly owned subsidiaries of Phoenix Coal Corporation, which is owned by Elgin Mining. Those permits were issued to Charolais Coal No. 1,LLC; C&R Coal Company, Inc. (2 permits); and Crittenden County Coal, Inc. (the “Permits”). The Permits allowed these companies to discharge dredged or fill material into waters of the United States in conjunction with their surface mining operations located in Muhlenberg and Crittenden counties. The Permits provided that the companies had to comply with certain conditions specified in the Permits. Among the conditions were requirements that the permit holders provide mitigation by restoring or establishing additional streams and wetlands to replace the streams and wetlands lost as a result of the mining activities. The United States alleged that the current permit holders, all wholly owned subsidiaries of Elgin Mining, failed to perform the required on-site mitigation which resulted in the loss of aquatic resources. Specifically, streams, wetlands and open waters were filled in with soil and mining overburden, and mitigation to replace the lost aquatic resources was never completed.
All parties agreed that Elgin Mining would pay $3,071,292.00 to the Kentucky Department of Fish and Wildlife Resources’ (KDFWR) Wetland and Stream Mitigation In-Lieu-Fee Program, which provides mitigation credits for impacts to Kentucky’s wetlands and streams associated with discharges of dredged or fill material. Elgin Mining is also required to pay a civil penalty of $150,000 to the United States.
The KDFWR Wetland and Stream Mitigation Program administers funds to provide a consistent and successful approach to fulfill compensatory mitigation obligations required under Department of the Army permits issued pursuant to Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act. A Section 404 permit from the USACE is required for activities resulting in the discharge of dredged or fill material into waters of the United States, which include streams, wetlands and open waters. The purpose of the mitigation is to compensate for the loss of aquatic functions within a defined watershed or regional area. The Kentucky Wetland and Stream Mitigation Fund is supported by sales of mitigation credits to permittees to satisfy regulatory requirements. The monies generated are used to implement projects to restore (rehabilitate or reestablish), establish, enhance, and preserve aquatic resources in Kentucky for the benefit of its citizens.
This agreement constitutes a compete and final settlement of all civil claims for injunctive relief and civil penalties against Elgin Mining under Section 404 of the Clean Water Act concerning the mitigation requirements of the Permits.
This case was prosecuted by Assistant United States Attorney Benjamin S. Schecter, Trial Attorney Paul Cirino with the U.S. Department of Justice’s Environmental Defense Section, and was investigated by the Regulatory Branch and Office of Counsel of the Army Corps of Engineers Louisville District.
Former Ft. Knox Resident Pleads Guilty to Assaulting and Causing Substantial Bodily Injury to One Minor ChildRead the Press Release
LOUISVILLE, Ky. – A former resident of Ft. Knox military base pleaded guilty in U.S. District Court this week to assaulting and causing substantial bodily injury to one minor child and assaulting an adult woman and another minor child announced David J. Hale, United States Attorney for the Western District of Kentucky.
Cynthia L. Marx, age 40, pleaded guilty to three of six counts in a federal indictment before Senior Judge John G. Heyburn II, on Thursday, July 24, 2014.
In Court, Marx admitted that on September 4, 2013, while staying with her friend, L.M.J., in Hardin County, Kentucky, at the Fort Knox military reservation, that she became violent and struck L.M.J. multiple times, that she struck and caused substantial bodily injury to a 14-year- old minor female and that she assaulted a 3-year-old boy.
If convicted at trial, Marx faced a sentence of no more than 29 years in prison, a fine of up to $900,000 and a three-year period of supervised release. Sentencing is scheduled before Senior Judge Heyburn on October 31, 2014, in Louisville.
This case is being prosecuted by Assistant United States Attorney Amanda Gregory and is being investigated by the U.S. Army, Criminal Investigation Command.
Allen County, Kentucky, Residents Sentenced for Roles in Stealing Then Selling Hydrocodone Pills from A Scottsville, Kentucky, PharmacyRead the Press Release
– Former pharmacy employee and co-defendants admitted to conspiring with each other to sell and distribute the stolen hydrocodone pills worth $29,808
BOWLING GREEN, Ky. – The former employee of Stovall’s Prescription Shop, located in Scottsville, Kentucky, and two co-defendants were sentenced today in United States District Court, for their roles in a conspiracy to distribute the pain killer hydrocodone, that was stolen by the employee, and, for conspiring to sell over $5,000 of stolen hydrocodone, that had not been made available to consumers for retail purchase, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Lynn Harper Denton, Jeffery Clay Stinson and Katherine Virginia Rookstool, all from Allen County, Kentucky had pleaded guilty to various charges in a seven count federal indictment and were sentenced today by Chief Judge Joseph H. McKinley, Junior. Stinson was sentenced to 27 months in prison, forfeited $1,117.67 and ordered to serve three years of supervised release. Rookstool and Denton were both sentenced to two years’ probation with 8 months of home incarceration. Denton forfeited $5,718.51 and two vehicles; a 2002 Ford Mustang and a 2009 Pontiac G6. Rookstool forfeited $6,500. All three defendants jointly and severally are liable for $3,000 in restitution to Stovall’s Prescription Shop.
According to their plea agreements, between May 2012, and continuing to October 16, 2012, in Allen County, Kentucky, Denton, a former employee of Stovall’s Prescription Shop, conspired with Stinson and Rookstool, to knowingly possess and distribute hydrocodone. Denton admitted to stealing over 10,000 hydrocodone pills from Stovall’s Prescription Shop and selling them to Rookstool, who then sold the pills to Stinson. Stinson sold the pills to others.
Further, Denton admitted that while employed at Stovall’s Prescription Shop, between May 2012, and continuing through October 16, 2012, that she and Rookstool conspired to sell and distribute over $5,000 of stolen hydrocodone that had not been made available to consumers for retail purchase. This is a violation of 18 USC § 670 (theft of medical products) and is the first such prosecution in the Western District of Kentucky. The retail value of the stolen hydrocodone was $29,808.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the U.S. Food and Drug Administration's Office of Criminal Investigations, Owensboro domicile, the Allen County Sheriff’s Department, and the Scottsville Police Department.
Ft. Campbell Military Base Resident Guilty of Wantonly Abusing A Child Under the Age of 12Read the Press Release
– Child was malnourished and in gross need of medical care for upper torso burns
PADUCAH, Ky. – A Ft. Campbell military base resident pleaded guilty in U.S. District Court today to charges of wantonly abusing her child, who at the time was under the age of 12, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement, Shanika D’June Pickens, a/k/a Shanika Campbell, age 28, pleaded guilty to a two count Indictment charging that she wantonly abused the child by failing to provide the child professional medical attention for burns and for failing to provide the child adequate food and nutrition that resulted in his medical diagnosis of malnutrition.
Specifically, Campbell had custody of her 3 children, including the victim in this case, known as K.V.P., who was under 12 years of age, while living on Ft. Campbell, Kentucky military base, located in Christian County, Kentucky. Between January 1, 2011 and September 30, 2011, the victim received burns to his right side and back areas. At that time, Campbell admits she was aware of the burns and did not seek professional medical attention that was available on Ft. Campbell military base for her family. Campbell further admits that her failure to seek medical attention for the burns was wanton because she was aware of and consciously disregarded a substantial and unjustifiable risk that the child would suffer a serious bodily condition and ultimately experienced more pain and scarring to his back and right side areas than he would have experienced had he received timely and competent medical attention. The risk of that harm to K.V.P. was of such nature and degree that the disregard of that risk constitutes a gross deviation from the standard of conduct that a reasonable person would observe in the situation.
Further, between October 1, 2011 and January 30, 2012, Campbell failed to provide adequate food and nutrition to K.V.P. That condition resulted in his hospitalization at Vanderbilt University Hospital in Nashville, Tennessee, between January 28, 2012 and February 6, 2012 during which he was diagnosed with, among other conditions, malnutrition. Campbell admits that her failure to provide adequate food and nutrition to K.V.P was wanton because she was aware of and consciously disregarded a substantial and unjustifiable risk that constitutes a gross deviation from the standard of conduct that a reasonable person would observe in the situation.
If convicted at trial, Campbell faced a sentence of no more than 10 years in prison, a fine of $500,000 and a three year period of supervised release. Campbell is scheduled for sentencing before Senior U.S. District Judge Thomas B. Russell on November 13, 2014, in Paducah.
This case is being prosecuted by Assistant United States Attorney David Sparks and is being investigated by the Federal Bureau of Investigation (FBI) and Ft. Campbell, Kentucky, 502nd Military Police Battalion (CID).
Louisville Daycare Owner/Operator Charged with Fraud in Seeking Child Care Payments from Kentucky AgencyRead the Press Release
– Lottie Carisa Burgos, owner of ABC Village Daycare, alleged to have falsified daycare attendance figures and qualifications of daycare workers
LOUISVILLE, Ky. –David J. Hale, United States Attorney for the Western District of Kentucky, announced today the indictment of a Louisville daycare owner on charges of wire fraud, aggravated identity theft, and money laundering.
Lottie Carisa Burgos, the owner and operator of ABC Village Daycare, was charged in a 20-count indictment returned by a federal grand jury on July 16, 2014. Burgos made an initial appearance in federal court today following her arrest.
Burgos operated ABC Village Daycare at two locations, 1801 West Market Street, Louisville, Kentucky, and 2823 7th Street Road, Louisville, Kentucky. According to the indictment, Burgos or others acting at her direction falsified a wide range of information which was a condition of payment for child care services from Kentucky’s Department for Community Based Services. The Department for Community Based Services provides child care benefits to low-income working parents and guardians. Burgos or others acting at her direction are alleged to have falsified the following information: high school diplomas, negative tuberculosis tests and CPR certificates of ABC Village Daycare employees; the employment status of parents; the number of children who attended the daycare centers; and the number of days children attended the daycare centers. In 12 separate counts, the indictment charges Burgos committed wire fraud on occasions ranging from March 2011 through March 2013. The fraud charges detailed in the indictment are associated with payments from the Department for Community Based Services totaling $275,576. At Burgos’ initial appearance today before Magistrate Judge James Moyer, Assistant U.S. Attorney David Weiser stated that the total loss was approximately 1.4 million dollars.
The indictment includes two charges that Burgos twice committed aggravated identity theft: in August 2011 she used without authority the name of another, unidentified person on a fraudulent CPR certificate to prove that person was CPR-certified; and in January 2012 she used without authority the name of another, unidentified person to bill for child care services that were not actually rendered.
The indictment also charges Burgos with six counts of money laundering, alleging that she engaged in various financial transactions with money derived from her wire-fraud scheme on six different occasions ranging from September 2011 through May 2012.
If convicted of all counts, Burgos faces a mandatory minimum sentence of 2 years in prison, a maximum sentence of 304 years in prison, a maximum fine of $5,000,000, and up to 3 years of supervised release. The Court may also order that the defendant make restitution to the victim agency.
This case is being prosecuted by Assistant United States Attorney David Weiser and was investigated by the Kentucky Cabinet for Health and Family Services and the Federal Bureau of Investigation.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Louisville Man Pleads Guilty to Producing Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Louisville man pled guilty to violating federal child exploitation laws today, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Craig Ian Elliott, age 47, pled guilty to a single charge of producing child pornography. Senior United States District Court Judge Charles R. Simpson, III, accepted the guilty plea.
According to the written Plea Agreement filed in open court, on April 2, 2010, the defendant was living at a residence on Algonquin Parkway in Jefferson County, Kentucky, with his girlfriend. On that date, his girlfriend was at work, but her 17-year-old daughter was at home with Elliott after she finished school for the day. Elliott used his girlfriend’s cell phone - a Boostmobile Sanyo Mirro Model SCP 3810 - to take sexually explicit photos of the girl. The cell phone was manufactured outside the Commonwealth of Kentucky. The metadata from the images showed that the pictures were taken at approximately 4:08 P.M.
After Elliott took the photos of the girl, he used the cell phone to transmit the images, via the Internet, to his Yahoo! account. There is no evidence that he distributed the images to anyone else. Elliott faces a statutory mandatory minimum term of imprisonment of 15 years and a maximum sentence of 30 years. He faces at least five years of Supervised Release and could be placed on Supervised Release for the remainder of his life. Judge Simpson scheduled a sentencing hearing for October 21, 2014, at 2:30 p.m.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department Crimes Against Children Unit conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices, 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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab.
Former Chairman of Louisville Episcopal Church Education Foundation and His Spouse Plead Guilty to Embezzling More Than $1.1 Million from the CharityRead the Press Release
– Foundation Chairman laundered money through his wife’s business
LOUISVILLE, Ky. – The former chairman of the Woodcock Foundation and former owner of DBM-Dental Direct of Louisville pleaded guilty in United States District Court today, to a felony information charging the couple with interstate transportation of stolen property and money laundering totaling $1,141,030, from the Louisville Episcopal Church Education Foundation, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Charles Muir, age 61, and Diana Muir, age 60, of Louisville, admitted in court today, that between April 2007 and June 2011, in Louisville, Kentucky, the couple unlawfully transferred or caused to be transferred in interstate commerce approximately $1,141,030 of funds that had been stolen or taken by fraud from the Woodcock Foundation. The funds were transferred from Your Community Bank in Louisville, Kentucky, to locations outside of Kentucky. The $1,141,030 was taken without authority from the Woodcock Foundation, a charitable trust providing college scholarships in the Louisville, Kentucky area. In addition the defendants conducted financial transactions involving the proceeds of the $1,141,030 by depositing checks from the Woodcock Foundation into the Your Community Trust bank account of DBM dental to disguise the nature of the transactions.
According to the terms of the plea agreement, Charles Muir and Diana Muir agreed to plead guilty to the felony information and at the time of sentencing, pay restitution to the Woodcock Foundation, in the amount of $1,141,030. At the time of sentencing, the United States will agree that a sentence of imprisonment of six months is the appropriate sentence in this case for defendant Diana Muir and a sentence of 46 months is the appropriate sentence in this case for defendant Charles Muir.
From April 2007 through June 2011, Charles Muir was the chairman of the Woodcock Foundation, a charitable organization associated with the Episcopal Church of Louisville, Kentucky. During the same timeframe, Diana Muir owned and controlled DBM.
The Louisville couple was initially charged by grand jury indictment that was unsealed on December 6, 2012, when they appeared before Magistrate Judge Dave Whalin in Louisville. They were released on a $25,000 bond and asked to not travel outside of the Western District of Kentucky.
Sentencing is scheduled before Senior District John G. Heyburn II, on October 23, 2014, in Louisville.
This case is being prosecuted by Assistant United States Attorneys Bryan Calhoun and Jason Snyder, and was investigated by the United States Secret Service and the Criminal Investigation Division of the Internal Revenue Service.
Lafayette, Tennessee, Man Guilty of Two Bank Robberies in Kentucky and CarjackingRead the Press Release
BOWLING GREEN, Ky. – A Lafayette, Tennessee, man pleaded guilty today, before Magistrate Judge H. Brent Brennenstuhl, to the robbery of two banks located in Kentucky, and one-count carjacking in Adair County, Kentucky, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Eugene Earl Gentry, age 63, pleaded guilty to four counts of a federal indictment including two counts of bank robbery through force, violence, and intimidation, one count of brandishing a firearm during a crime of violence and one count of carjacking. Gentry admitted in court to robbing the United Citizens Bank, located at 1582 Campbellsville Road, in Columbia, Kentucky, of approximately $90,000 on October 15, 2012. On the same day, in Adair County, Kentucky, Gentry stole a 1998 Ford Ranger Pickup from United Citizens Bank manager and in doing so brandished a semi-automatic handgun which carries an additional charge of carjacking. One year later, on October 29, 2013, Gentry attempted to rob the Citizens Bank, located at 209 Campbellsville Bypass, located in Campbellsville, Kentucky.
In court, the United States and Gentry agreed to a sentence of 240 months in prison and supervised release for a period of five years. Sentencing before Senior District Judge Thomas B. Russell is scheduled for October 8, 2014, at 11am, in Bowling Green.
This case is being prosecuted by Assistant United States Attorney Randy Ream and is being investigated by the Federal Bureau of Investigation (FBI) with assistance from the Campbellsville Police Department, Columbia Police Department and the Adair County, Kentucky, Sheriff’s Department.
Campbellsville, Kentucky Man Pleads Guilty to Bank Robbery ChargesRead the Press Release
LOUISVILLE, Ky. – A Campbellsville, Kentucky man pleaded guilty today in United States District Court, before Senior District Judge John G. Heyburn II, to two counts of bank robbery, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Joshua Riley Spangler, age 28, admitted in court to robbing through force, violence and intimidation, the Cecilian Bank, located at 235 East Western Avenue in Sonora, Kentucky of $1,019. on January 15, 2013.
Further, defendant Spangler admitted to robbing through force, violence and intimidation, the Bank of Buffalo, located at 2441 Greensburg Road in Buffalo, Kentucky of $9,125. on February 27, 2013. Spangler was charged by federal grand jury indictment on November 20, 2013.
If convicted at trial, Spangler faces no more than 20 years in prison, a fine of $500,000 and a three year period of supervised release. His sentencing is scheduled before Senior Judge Heyburn on October 10, 2014 at 1:45 in Louisville.
This case is being prosecuted by Assistant United States Attorney Randy Ream, and is being investigated by the Kentucky State Police and the Federal Bureau of Investigation (FBI).
Jury Trial Ends with Admission of Guilt by Convicted Felon Charged in String of Louisville Area Armed RobberiesRead the Press Release
– Troy Lamont Gaines pleads guilty to 11 counts of armed robbery
– Charges stem from Project RecoilLOUISVILLE, Ky. – The second day of testimony in the jury trial of Troy Lamont Gaines, Jr. ended today, with the defendant’s admission of guilt to the armed robbery of eleven area convenient stores and fast food restaurants in December, 2012 and January, 2013, announced David J. Hale, United States Attorney for the Western District of Kentucky. The charges stemmed from “Project Recoil” – a comprehensive anti-violent crime strategy announced last summer, which emphasizes collaboration among federal, state and local law enforcement and prosecutorial agencies to more effectively investigate and prosecute violent criminals in Louisville.
Gaines, age 23 of Louisville, and co-defendant Shaundrell Robinson, age 34 of Louisville, were charged in a 22 count federal indictment on April 2, 2013. The defendants have prior felony convictions and were charged with eleven armed robberies between December 5, 2012 and January 3, 2013 in Metro Louisville and Radcliffe, Kentucky. During one robbery, a shot was fired by Gaines during a struggle with a customer. Gaines was arrested by Louisville Metro Police (LMPD) on January 5, 2013, immediately after robbing a Speedway gas station located 8325 Preston Highway.
The United States was prepared to present evidence during the trial, that according to court records included: video surveillance of the armed robberies while in progress, a police dash-cam video showing Gaines arrest while still wearing a ski mask, a Lorcin semi-automatic pistol, magazine, five rounds of ammunition removed from the magazine and two shell casings found on the sidewalk outside the China Express restaurant that was held up on December 19, 2012, an audio clip of Gaines’ statement to LMPD, video still photos signed by Gaines, a black ski mask and a loaded 9mm pistol seized from Gaines at the time of his arrest.
Gaines pleaded guilty to 11 counts of robbery affecting interstate commerce and two counts of brandishing a firearm during a crime of violence. The charged armed robberies included the Super Stop Food Mart, located at 7303 Preston Highway, on or about December 5, 2012, and on or about December 14, 2012. The armed robbery of the Meijer store, located at 4600 South Hurstbourne Parkway in Louisville, or about December 15, 2012. The armed robbery of JR Liquors 2 store, located at 13018 Dixie Highway, in Louisville, on or about December 19, 2012. The armed robbery of the Circle P Shell Food Mart, located at 1500 North Dixie Highway in Radcliff, Kentucky, on or about December 19, 2012. The armed robbery of the China Express restaurant, located at 4946 Poplar Level Road in Louisville, on or about December 20, 2012. The armed robbery of the Berry Petroleum store, located at 1871 Berry Boulevard in Louisville on or about December 27, 2012. The armed robbery of Thornton=s store, located at 12412 LaGrange Road in Louisville, on or about December 31, 2012.The armed robbery of the Speedway store, located at 3030 Taylor Blvd. in Louisville, on or about December 31, 2012. The armed robbery of White Castle restaurant, located at 2711 Fern Valley Road in Louisville, on or about January 3, 2013. The armed robbery of Speedway store, located at 8325 Preston Highway in Louisville, on or about January 5, 2013.
If convicted of all charges in the Indictment at trial, Gaines faced a total minimum sentence of 257 years’ imprisonment and up to 5 years of supervised release per charge and a fine of $250,000 per charge. A sentencing date has not been schedule, however Gaines is expected to be sentenced by Senior Judge Thomas B. Russell in Louisville.
Co-defendant Shaundrell Robinson is scheduled for trial in U.S. District Court, before Senior Judge Russell, on August 18, 2014.
This case is being prosecuted by Assistant United States Attorney Robert Bonar and is being investigated by the Louisville Metro Police Robbery Unit.