Western District of Kentucky
Press releases recorded for this federal judicial district.
Owner of Bluegrass Women’s Healthcare in Elizabethtown Ordered to Pay Victims $50,663.31 for MisbrandingRead the Press Release
LOUISVILLE, Ky. – The owner of Bluegrass Women’s Healthcare, located in Elizabethtown, Kentucky was sentenced yesterday, in United States District Court, by United States District Judge John G. Heyburn, to one year probation for a single charge of misbranding, and the corporation, Bluegrass Women’s Healthcare, was sentenced and ordered to pay a fine of $25,000 announced David J. Hale, United States Attorney for the Western District of Kentucky. The defendant owner, Canh Jeff Vo was also ordered to pay restitution in the amount of $50,663.31 to victims.
Vo, age 45, of Louisville, Kentucky, was the owner, supervising physician, and president at Bluegrass Women’s Healthcare between March 2008 and September 2009 when the violations occurred. Vo offered gynecological and obstetric services to women at Bluegrass Women’s Healthcare, including providing forms of birth control. According to the plea agreement, between March 2008 and September 2009, Vo, purchased and inserted into patients, foreign, non-FDA approved (levonorgesteral-releasing intrauterine device). These intrauterine devices or IUDs, were misbranded in that their labeling was not in the English language; and their labeling did not bear adequate directions for use. Vo pleaded guilty to the misdemeanor charge of misbranding on September 6, 2013 and agreed to pay jointly and severally with Bluegrass Women’s Healthcare, restitution to the victims.
Also, between March 2008 and September 2009, Bluegrass Women’s Healthcare received, brought, and imported into the United States, IUDs, knowing that these were misbranded and unlawfully introduced into interstate commerce from various countries, including from Canada. Defendant VO, as president of Bluegrass Women’s Healthcare pleaded guilty, on behalf of the corporation, to the felony charge of smuggling and agreed to pay a $25,000 fine.
This case was prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and was investigated by the United States Food and Drug Administration (FDA) Office of Criminal Investigations, the Federal Bureau of Investigation (FBI), and Kentucky Office of the Attorney General Office of Medicaid Fraud and Abuse Control.
Louisville Man Guilty of Sexual Abuse of A Minor Under the Age of Seven in the Production of Child PornographyRead the Press Release
LOUISVILLE, Ky – A Louisville man pleaded guilty in United States District Court this week to charges of sexually abusing a minor under the age of seven during the production of child pornography, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the five count indictment, Thomas Evan Middleton, age 50, sexually abused the minor female during the creation of pornography, while babysitting the minor at his home, between August 2009 and May 2011.
This case was initially brought by the Louisiana Attorney General's Office (LAGO) who contacted law enforcement in Louisville, Kentucky regarding a peer-to-peer investigation into Louisiana resident Robert Swan. The LAGO had previously executed a search warrant on Swan’s residence on January 30, 2013. During the review process of Swan’s electronic storage devices the LAGO discovered images of Swan and a then unknown individual engaged in the sexual exploitation of a minor. The unknown man had a cross tattoo on his right middle finger and was later identified as Thomas Middleton, through identifying information located on Swan’s computer. During the course of their investigation, thousands of digital images of child pornography were recovered, including images with Swan and Middleton sexually abusing a 4 to 5 year old female.
On July 24, 2013, a federal search warrant was executed on Middleton’s residence. Several items in the residence appeared to be the same as items observed in some of the sexual abuse images found on Swan’s computer. During the execution of the search warrant, Middleton identified the child victim depicted in the pictures with him.
Middleton faces a mandatory minimum sentence of 25 years in prison, and a combined maximum term of imprisonment of 250 years, a fine of $1,250,000 and a period of supervised release of at least 5 years and up to any number of years including life.
Middleton is scheduled for sentencing before Senior Judge Thomas B. Russell, on March 18, 2014, at 12:15 in Louisville.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Federal Bureau of Investigation with assistance from the Louisiana Attorney General’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Louisville Internet Tobacco Product Retailer Sentenced to 12 Months and One Day for Role in Contraband Cigarette TradeRead the Press Release
– Agreed restitution in the amount of $2,090,571.00 from $3,214,035.66 forfeited to the United States.
LOUISVILLE, Ky. – The former owner of Cigarettes Direct to You, was sentenced in U.S. District Court yesterday, to one year and one day in prison by U.S. Magistrate Judge Dave Whalin, for running an illegal retail cigarette trafficking business, announced David J. Hale, United States Attorney for the Western District of Kentucky. Prior to sentencing Israel Chavez of Louisville, agreed to pay restitution in the amount of $2,090,571 to the Kentucky Department of Revenue, from $3,214,035.66 he agreed to forfeit to the United States.
Israel Chavez, age 48, previously admitted in court that he conspired and agreed with Pedro, a/k/a Peter Bello, d/b/a, GT Northeast of Indiana/Kentucky, from January 5, 2005 through December 9, 2009, to buy and sell contraband cigarettes through internet websites and telephone call centers. By doing so, Chavez, aided and abetted by Bello, deprived the Kentucky State Department of Revenue of $2,090,571, by not paying taxes on cigarettes bought, sold, and shipped from locations within the Western District of Kentucky.
Chavez was the owner of Chavez, Inc., d/b/a, Cigarettes Direct to You (CD2U), a Kentucky Corporation located in Louisville, Kentucky. Chavez admitted in court to purchasing unstamped cigarettes, valued at $12,500,000 from Bello, for which no Kentucky tax had been paid, in order to significantly undercut the price charged for cigarettes by competing businesses which complied with state laws and paid the required taxes on cigarettes they held for sale. Further, Chavez admitted to knowing that fraudulent invoices had been created to disguise the nature of the cigarette transactions from the Kentucky Department of Revenue. This was accomplished through the creation of fraudulent invoices, which were transmitted by fax between Louisville, Kentucky, and St. Louis, Missouri, to make it appear that the cigarettes were purchased from a wholesaler in St. Louis – when, in fact, Chavez admitted to knowing that the unstamped cigarettes were from Kentucky, and that as a licensed wholesaler, Chavez was required to pay the Kentucky state tax.
According to the civil forfeiture suit, filed by the United States against Chavez, his ex-wife Pam Chavez, and their two companies Pam Chavez, Inc., and Chavez, Inc., Israel Chavez and Pam Chavez agreed to forfeit to the United States, assets including approximately $3,214,305.66 in cash and deposit accounts and approximately 10,824,192 tobacco products. Tax stamps valued at $108,000 will be returned to the Kentucky Department of Revenue.
"This ATF investigation was supported by the Kentucky Attorney General's Office of Criminal Investigations, the U.S. Postal Inspections Service and the Louisville Metro Police Department. In addition, coordination with various State Attorney Generals and their respective revenue/regulatory agencies has led to the collection of over $40 million in lost state excise taxes by states directly impacted by Chavez's illicit operations," stated ATF Louisville Special Agent in Charge Stuart Lowrey.
In a separate, but related case, Bello, age 43, of Miami, pleaded guilty to conspiracy to commit wire fraud and money laundering is scheduled for sentencing before Chief Judge Joseph H. McKinley on February 3, 2014. According to the October 3, 2011 indictment, returned by a grand jury meeting in Louisville, Bello created fraudulent cigarette invoices to circumvent paying Kentucky state excise taxes.
This case was prosecuted by Assistant United States Attorney Randy Ream and the civil forfeiture case was prosecuted by Assistant United States Attorney Amy Sullivan and will result in the payment of restitution to the victim. This case was investigated by the US Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Lafayette, Tennessee, Man Charged with Two Armed Bank Robberies in Kentucky and CarjackingRead the Press Release
BOWLING GREEN, Ky. – A Lafayette, Tennessee, man was charged today by a federal grand jury with the armed 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.
According to the six-count indictment, Eugene Earl Gentry, age 63, is charged with two counts of bank robbery, three counts of brandishing a firearm during a crime of violence and one count of carjacking. Gentry allegedly brandished a black semi-automatic handgun while 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 is charged with taking a 1998 Ford Ranger Pickup from a person identified as “M.C.” and in doing so brandished a black semi-automatic handgun which carries an additional charge of carjacking. One year later, on October 29, 2013, Gentry allegedly brandished a Hi-Point, semi-automatic, 9mm handgun while attempting to rob the Citizens Bank, located at 209 Campbellsville Bypass, located in Campbellsville, Kentucky.
If convicted at trial, Gentry faces 122 years in prison, a fine of $1.5 million, and supervised release for a period of five years.
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.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Paducah, Kentucky, Woman Sentenced to 15 Months in Prison for Mail FraudRead the Press Release
– Judge orders $112,012.44 restitution payment to former employer
PADUCAH, Ky. – A Paducah, Kentucky woman was sentenced today by Senior District Judge Thomas B. Russell, to 15 months in prison, followed by a 1 year term of supervised release and ordered to pay restitution in the amount of $112,012.44, after pleading guilty to stealing from her former employer announced David J. Hale, United States Attorney for the Western District of Kentucky.
Stacie A. Javier, age 37, pleaded guilty to a five count federal indictment charging her with mail fraud, for stealing $112,012.44, from her former employer, Credit Bureau System of Paducah, Inc. (CBS), between November 2008, to January 2012. Javier was employed by CBS, a collection agency for creditors, as a cashier who was responsible for the preparation of bank deposits of cash, checks, and other forms of payments.
In court, Javier admitted to devising a scheme to keep debtor’s cash payments by redepositing debtor’s returned checks (for insufficient funds) in place of an equivalent amount of cash from debtor payments. According to the plea agreement, when debtor checks that had been provided to CBS for payment on creditor accounts were not paid because of insufficient funds (NSF), the checks were returned to CBS by U.S. Bank (Bank). The unopened envelopes with NSF debtor checks were delivered to Javier who would retain certain NSF checks rather than pursue further collection. Debtor payments to CBS for creditor accounts were also made by cash payments. Javier determined that certain NSF checks that she had retained were in amounts equivalent to amounts of debtor cash received for payments on creditor accounts. Javier substituted the returned NSF checks for the equivalent of debtor cash and prepared deposit slips with such NSF checks and other forms of payment to CBS, for deposit with the Bank. Javier kept the cash payments.
This case was prosecuted by Assistant United States Attorney David Sparks and was investigated by the United States Secret Service and the Paducah Police Department.
Louisville Convicted Felon Sentenced to 25 Years in Prison for Armed Robbery of A Convenience StoreRead the Press Release
– First defendant sentenced in prosecution resulting from "Project Recoil"
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky announced the sentencing today of a Louisville man to 25 years in prison followed by a period of three years supervised release, for the armed robbery of a Louisville convenience store and discharging a firearm during the course of the robbery. The federal prosecution stems from “Project Recoil,” the ongoing partnership of multiple law enforcement agencies, developed by U.S. Attorney Hale, Jefferson County Commonwealth’s Attorney Tom Wine, Jefferson County Attorney Mike O’Connell, LMPD Chief Steve Conrad, ATF Special Agent in Charge Stuart Lowrey, FBI Special Agent in Charge Perrye Turner, and U. S. Marshal James Clark, to maximize penalties for the most violent repeat offenders, and to reduce violent crime in our community.
Since the announcement of Project Recoil, in July 2013, the U.S. Attorney’s Office has brought federal charges against ten defendants connected to the armed robberies of 27 metro Louisville businesses. Numerous additional defendants have been charged in Jefferson Circuit Court.
“Convicted felons who commit violent gun crimes in Jefferson County will face a collaborative and determined law enforcement effort. I’m proud of the efforts of the dedicated police officers, federal agents, state and county prosecutors, and federal prosecutors working together on Project Recoil. Our community benefits from this effective collaboration,” stated U.S. Attorney Hale.
“The partnership of local, state and federal law enforcement through Project Recoil has not only led to ten defendants being indicted in federal court, but to numerous gun and violent crimes being discussed by multiple agencies on a weekly basis. These open lines of communication have led to over a thousand guns being seized in the last year and over one hundred cases involving defendants with serious records and pending gun charges to be discussed, indicted and swiftly prosecuted in state court,” stated Thomas Wine, Commonwealth’s Attorney.
“This conviction sends a very strong message that federal, state and local law enforcement agencies are working together to make Louisville a safer community. Anyone contemplating a gun-related crime should realize the possible consequences,” stated Louisville Metro Police Chief Steve Conrad.
“This conviction and sentence should send a very clear message -- violent gun crimes and the illegal possession, use or trafficking of firearms will not be tolerated. Together, we are aggressively investigating and prosecuting these armed predators to make our community safer,” said ATF Special Agent in Charge Stuart Lowrey.
“Project Recoil is an excellent example of law enforcement’s commitment to cooperation and collaboration, the most effective weapon against crime,” said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky.
Dorris Trice III, age 32, was sentenced on Thursday by Senior U.S. District Judge Charles R. Simpson III, after pleading guilty to a three-count federal indictment. Trice was previously convicted of state charges in Jefferson Circuit Court, including second degree burglary on October 26, 2000, second degree escape on June 10, 2002, and third degree burglary on October 20, 2010. In U.S. District Court, Trice admitted that on March 3, 2013, he possessed and fired a Charter Arms Undercover.38 Special during the robbery of the Park Food Mart, located at North 19th Street in Louisville. The federal robbery charge was brought pursuant to the Hobbs Act, which criminalizes robberies that affect interstate commerce.
This case was prosecuted by Assistant United States Attorneys Randy Ream and Amanda E. Gregory, and was investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Louisville Physician Charged with Multiple Counts of Unlawful Distribution of Controlled Substances, Healthcare Fraud and Money LaunderingRead the Press Release
LOUISVILLE, Ky. – A Louisville physician was charged today, by a federal grand jury, with multiple counts of unlawful distribution of controlled substances, healthcare fraud and money laundering announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the fourteen count indictment, George Kudmani, age 68, 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. On average, Kudmani would see more than 35 patients per day. 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.
The indictment charges Kudmani with eleven counts of knowingly and intentionally distributing and dispensing controlled substances, not for a legitimate medical purpose and beyond the bounds of a professional medical practice, between January 2009 and September 2012. The controlled substances allegedly prescribed include, Oxycodone, Alprazolam, Clonazepam, Hydrocodone, Phentermine and Carisoprodol. Further, Kudmani is charged with two counts of health care fraud for allegedly submitting claims for medically unnecessary services and for writing prescriptions for medically unnecessary controlled substances between January 2009 and September 2012. The fraud charge states that Kudmani would perform medically unnecessary services and bill health care benefit programs for reimbursement.
The other fraud charge states that Kudmani knew patients would have the prescriptions filled at pharmacies and that the pharmacies in turn submitted claims to health care benefit programs for reimbursement.
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.
If convicted at trial, Kudmani faces a maximum potential penalty of 230 years in prison, a fine of $10,250,000, and a 3 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.Four Louisville Men Charged in String of Armed RobberiesRead the Press Release
– Federal Charges Result From “Project Recoil”
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky announced the indictment by federal grand jury today, of four Louisville men charged with the armed robbery, and attempted robbery, of five businesses located in Jefferson County, Kentucky, and discharging a firearm during the course of a robbery. These federal charges stem from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by U.S. Attorney Hale, Jefferson County Commonwealth’s Attorney Tom Wine, Jefferson County Attorney Mike O’Connell, LMPD Chief Steve Conrad, ATF Special Agent in Charge Stuart Lowrey, FBI Special Agent in Charge Perrye Turner, and United States Marshal James Clark to maximize penalties for the most violent offenders and to reduce violent crime in our community.
The ten-count indictment charges, Jescell Whittle, age 22, Tony Trumbo, Jr., age 23, with four counts of obstructing interstate commerce through robbery, one count attempted robbery and four counts of brandishing a firearm during a robbery. Dahntel Newsome, age 18, is charged with two counts of obstructing interstate commerce through aiding and abetting a robbery, one count attempted robbery and three counts of brandishing a firearm during a robbery. James Gore, Jr., age 23, is charged with two counts of obstructing interstate commerce through aiding and abetting a robbery and one count brandishing a firearm during a robbery. All defendants, except Newsome, face an additional count of brandishing and discharging a firearm, during a robbery.
Defendants Whittle, Trumbo and Newsome are charged with robbing the Cricket Wireless located at 4442 Cane Run Road on October 22, 2012, attempted robbery of the Cricket Wireless located at 3125 West Broadway on October 23, 2012, and robbery of the JC Cigarette Outlet located at 2714 Crums Lane on October 29, 2012. Defendants Whittle, Trumbo and Gore are charged with robbing the Thorntons located at 4516 Poplar Level Road on October 30, 2012, and the Speedway, located at 3030 Taylor Boulevard on October 31, 2012. The federal robbery charges are brought pursuant to the Hobb’s Act, which criminalizes robberies that affect interstate commerce.
If convicted at trial, Whittle and Trumbo face a mandatory 100 year prison sentence for robbery and attempted robbery, a 107 year sentence for use of a firearm in a crime of violence, and a $2.5 million fine. Newsome faces a 60 year sentence for robbery and attempted robbery, a 57 year sentence for use of a firearm in a crime of violence, and a $1.75 million fine. Gore faces a 40 year sentence for robbery, a 32 year sentence for use of a firearm in a crime of violence, and a $1 million fine.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKinness and is being investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Louisville, Kentucky Man Guilty of Producing Child PornographyRead the Press Release
– Plea Agreement also resolves separate pending state court child sexual abuse case
LOUISVILLE, Ky. - A Louisville, Kentucky, man pleaded guilty today in United States District Court before United States Magistrate Judge James D. Moyer to a single-count federal Indictment charging him with violating federal child pornography laws, namely, the production of child pornography, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jamar Garrett a/k/a Darnell Hamilton, age 35, admitted in court that during June through July, 2012, he represented himself as Darnell Hamilton and lived in Jefferson County, Kentucky. During that time period, he rented a room in a home (where a nine-year-old female child also lived). On July 1, 2012, Garrett engaged in sexually explicit conduct with the nine-year-old female child. He used his cellular telephone to record the sexual activity in the form of a video. Approximately one week later, an adult living in the home viewed the contents of the cellular telephone, confronted the child, and called the police to report the matter.
According to court records, Garrett fled the jurisdiction. However, Louisville Metro Police obtained a federal arrest warrant for Garrett, which was recorded in the Federal Bureau of Investigation’s National Crime Information Center (NCIC). Law enforcement officials arrested Garrett on the outstanding warrant when he was stopped for a traffic violation in Toledo, Ohio.
Under the terms of the Plea Agreement, which calls for a 22½ year term of imprisonment followed by a life term of Supervised Release, Garrett will plead guilty in Jefferson Circuit Court to sexually abusing a child under the age of 12. The Jefferson Circuit Court case involves a different victim than the federal case. The anticipated 10-year state court sentence will run concurrently with the federal sentence. Sentencing is scheduled before Senior Judge Thomas B. Russell on February 18, 2014, at 12:30 p.m. in Louisville, Kentucky.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department’s Crimes Against Children Unit conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two Louisville Men Charged in String of Armed Robberies Federal Charges Result from “Project Recoil”Read the Press Release
–
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, announced the federal indictment this week, of two Louisville men, one a convicted felon, charged with robbing nine businesses located in Jefferson County, Kentucky. These federal charges stem from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by U.S. Attorney Hale, Jefferson County Commonwealth’s Attorney Tom Wine, Jefferson County Attorney Mike O’Connell, LMPD Chief Steve Conrad, ATF Special Agent in Charge Stuart Lowrey, FBI Special Agent in Charge Perrye Turner, and United States Marshal James Clark to maximize penalties for the most violent offenders and to reduce violent crime in our community.
The eighteen-count indictment charges Xavier Demetrius Porter, age 39, with nine counts of obstructing interstate commerce through robbery, eight counts of brandishing a firearm during a robbery, and one count of being a felon in possession of a firearm. Dmitry Kontarovich, age 31, is charged with three counts of obstructing interstate commerce through aiding and abetting a robbery.
Porter is charged with 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, and the Thornton’s located at 3909 Taylorsville Road on April 17, 2013. Porter and Kontarovich are charged with robbing the Subway located at 4214 Bishop Lane on April 17, 2013, JC’s Cigarette Outlet located at 6620 Six Mile Lane on April 18, 2013, and Adam and Eve Store located at 3862 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.
According to court records, on May 30, 1996, Porter was convicted of three counts of armed robbery in Dougherty County Superior Court located in Georgia.
If convicted at trial, Porter faces a mandatory minimum sentence of 197 years in prison and a maximum potential penalty of life in prison, a fine of $4,5000,000 and up to and including a life term of supervised release. Kontarovich faces a maximum potential penalty of 60 years in prison, a fine of $750,000 and a period of supervised release.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Russellville, Kentucky Convicted Felon Charged with Distribution of A Controlled Substance and Possession of A FirearmRead the Press Release
– Formerly convicted of first-degree 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 indicted by a federal grand jury in Bowling Green, Kentucky this week, on 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 35, was charged with 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 is alleged to have 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.
If convicted at trial, Morris faces a term of 133 years in prison, a fine of $4.5 million, and a 30 year term of supervised release.
This case is being prosecuted by Assistant United States Attorney Mac Shannon and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the South Central Kentucky Drug Task Force.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Justice Department Officials Raise Awareness of Disaster Fraud Hotline Following Typhoon HaiyanRead the Press Release
WASHINGTON – The Department of Justice, the FBI, and the National Center for Disaster Fraud (NCDF) remind the public that there is a potential for disaster fraud in the aftermath of a natural disaster. Suspected fraudulent activity pertaining to relief efforts associated with Typhoon Haiyan should be reported to the toll-free NCDF hotline at 866-720-5721. The hotline is staffed by a live operator 24 hours a day, seven days a week, for the purpose of reporting suspected scams being perpetrated by criminals in the aftermath of disasters.
NCDF was originally established in 2005 by the Department of Justice to investigate, prosecute and deter fraud associated with federal disaster relief programs following Hurricanes Katrina, Rita and Wilma. Its mission has expanded to include suspected fraud related to any natural or man-made disaster. More than 20 federal agencies – including the Justice Department’s Criminal Division, U.S. Attorney’s Offices, Department of Homeland Security Office of Inspector General, FBI, U.S. Postal Inspection Service and the U.S. Secret Service – participate in the NCDF, allowing the center to act as a centralized clearinghouse of information related to disaster relief fraud.
In the wake of natural disasters, many individuals feel moved to contribute to victim assistance programs and organizations across the country. The Department of Justice and the FBI remind the public to apply a critical eye and conduct due diligence before giving to anyone soliciting donations on behalf of hurricane victims. Solicitations can originate as emails, websites, door-to-door collections, mailings, telephone calls and similar methods.
Before making a donation of any kind, consumers should adhere to certain guidelines, including the following:
- Do not respond to any unsolicited (spam) incoming emails, including by clicking links contained within those messages, because they may contain computer viruses.
- Be cautious of individuals representing themselves as victims or officials asking for donations via email or social networking sites.
- Beware of organizations with copycat names similar to but not exactly the same as those of reputable charities.
- Rather than following a purported link to a website, verify the existence and legitimacy of non-profit organizations by using Internet-based resources.
- Be cautious of emails that claim to show pictures of the disaster areas in attached files, because those files may contain viruses. Only open attachments from known senders.
- To ensure that contributions are received and used for intended purposes, make donations directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions; reputable charities do not use coercive tactics.
- Do not give your personal or financial information to anyone who solicits contributions. Providing such information may compromise your identity and make you vulnerable to identity theft.
- Avoid cash donations if possible. Pay by debit or credit card, or write a check directly to the charity. Do not make checks payable to individuals.
- Legitimate charities do not normally solicit donations via money transfer services.
- Most legitimate charities maintain websites ending in .org rather than .com.
If you believe that you have been a victim of fraud by a person or organization soliciting relief funds on behalf of disaster victims, contact the NCDF by phone at (866) 720-5721, fax at (225) 334-4707 or email at [email protected].
You can also report suspicious e-mail solicitations or fraudulent websites to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
Louisville Felon Charged in Recent String of Restaurant Hold-UpsRead the Press Release
– Federal charges result from “Project Recoil”
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, announced the federal indictment of a Louisville felon, today charged with robbing three restaurants located in Jefferson County, Kentucky. These federal charges stem 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.
The seven-count indictment charges Kenneth Dion Flintroy, Jr., age 24, with three counts of obstructing interstate commerce through robbery, three counts of brandishing a firearm during a robbery, and one count of being a felon in possession of a firearm. Flintroy is charged with robbing the McDonald’s located at 7426 3rd Street Road and the Papa John’s located at 6902 Southside Drive on April 16, 2013, and with 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.
“Project Recoil is one piece of a comprehensive anti-violent crime strategy which emphasizes collaboration among federal, state and local law enforcement and prosecutorial agencies to more effectively investigate and prosecute violent criminals in Louisville. By working together, and by including all of our community stakeholders in the broad effort to stem violent crime, we will reduce violence and its impact on our city,” stated U.S. Attorney Hale.
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 convicted at trial, Flintroy faces no less than 57 years in prison and up to life, a fine of up to $1,750,000 and up to and including a life term of supervised release.
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.
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 Taylor County, Kentucky Deputy Sheriff Charged with Distribution of Anabolic SteroidsRead the Press Release
– Wore Taylor County Sheriff’s Department uniform and drove law enforcement vehicle during alleged distribution
BOWLING GREEN, Ky. – A former Taylor County, Kentucky deputy sheriff charged with distribution of anabolic steroids, waived his formal appearance in United States District Court in Bowling Green Friday, and a trial date was scheduled for December 16, 2013, announced David J. Hale United States Attorney for the Western District of Kentucky.
William Allen Rice, age 38, of Campbellsville, was charged in a criminal complaint on October 1, 2013 and subsequently charged by federal grand jury indictment on October 16, 2013.
According to the three-count federal indictment, on three separate occasions, between May 17, 2013, and August 10, 2013, in Taylor County, Kentucky, defendant Rice was recorded allegedly distributing Schedule III controlled substances including Boldenone Undecylenate, Nandrolone Decanoate and Testosterone Enanthate. Further, the Affidavit attached to the Criminal Complaint alleges that defendant Rice was observed driving his assigned Taylor County Sheriff’s Office vehicle to prearranged meeting locations and wore his Taylor County Sheriff’s Office uniform and a pistol on his hip during one transaction with a confidential human source.
If convicted of the charges, Rice faces no more than 30 years in prison, a fine of no more than $1,500,000 and no less than two years of supervised release. The trial was scheduled before Chief Judge Joseph H. McKinley Jr.
This case is being prosecuted by Assistant United States Attorney Amanda E. 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.Jackson, Mississippi Man Charged with Attempted Online Extortion of the University of Louisville Athletic AssociationRead the Press Release
LOUISVILLE, Ky. – A Jackson, Mississippi man was charged by a federal grand jury meeting in Louisville, Kentucky, on October 16, 2013, with a single count of extortion, by means of a threatening communication, announced David J. Hale, United States Attorney for the Western District of Kentucky. The federal indictment was unsealed today, following the arrest this morning, of Thomas E. Ray, age 35, in Mississippi, by the U.S. Marshal Service.
According to the indictment, Ray, using the alias “Melinda White,” knowingly sent an email communication from his home in Jackson, MS, to the commonwealth of Kentucky, on April 23, 2013 with the intent to extort $3.5 million from an association and corporation, by threatening to injure the reputation of the University of Louisville Athletic Association.
If convicted, Ray faces no more than two years in prison, a maximum fine of $250,000 and a one year period of supervised release. His initial appearance on the charge was held today, in U.S. District Court located at 501 E. Court Street, Jackson, MS, in the Southern District of Mississippi. Ray posted a $10,000 bond and was ordered to appear in Louisville District Court on November 7, 2013 at 11:00 am.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Federal Bureau of Investigation (FBI) and Office of the Kentucky Attorney General.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Central Kentucky Glass Company and Its Former President Charged with Fraud in Connection with the Installation of Glass and Windows at Ft. Knox High SchoolRead the Press Release
– Indictment includes wire fraud, mail fraud and major fraud against the United States
LOUISVILLE, Ky. – Central Kentucky Glass Company, headquartered in Lexington, Kentucky, was indicted by a federal grand jury meeting in Louisville, Kentucky on October 16, 2013, on charges of wire fraud, mail fraud and major fraud against the United States 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. The former president of Central Kentucky Glass Company, Dennis Martin of Nicholasville, Kentucky, was charged separately, on October 21, 2013, in a federal Information.
Central Kentucky Glass Company was a subcontractor hired by the prime contractor, Barton Malow Company, as part of a multi-million dollar Army Corps of Engineers project which included the installation of glass and windows at Fort Knox High School, located in Hardin County, Kentucky. Central Kentucky Glass Company was required to provide certifications that its glass and windows were tested and met contract requirements, including anti-terrorism standards. According to the three count indictment, on October 22, 2008, Martin, then president of Central Kentucky Glass Company, allegedly forged two certifications from testing companies that falsely reflected that Central Kentucky Glass Company’s glass and windows had been tested and met contract requirements, including anti-terrorism standards. Further, the indictment charges that on March 16, 2009, Dennis Martin forged a certification from another company and provided the forged certification to the Barton Malow Company. Subsequent tests revealed that the glass and windows Central Kentucky Glass Company installed at Fort Knox High School failed to meet anti-terrorism standards.
Martin is charged separately with a single count of wire fraud for allegedly forging the certifications from two testing companies, then faxing the forged documents to Barton Malow Company in Ohio.
If convicted, the company faces a maximum fine of $6,000,000, and a three year period of supervised release. Martin faces no more than 20 years in prison, a fine of $250,000 and a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Department of Defense Office of Inspector General.
The indictment of a company by a Grand Jury is an accusation
only and that company is presumed innocent until and unless
proven guilty.Louisville Man Pleads Guilty to Online Enticement and Production of Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Louisville Man has pleaded guilty to violating federal child exploitation laws, announced David J. Hale, United States Attorney for the Western District of Kentucky. Marvin Duane Monk, age 46, entered the guilty pleas before Senior U. S. District Judge Charles R. Simpson, III, in federal court in Louisville, on September 27, 2013. Sentencing in the matter is scheduled before Judge Simpson on January 14, 2014, at 2:00 p.m.
Monk pleaded guilty to a two-count Indictment returned by a federal grand jury on October 2, 2012. Monk was previously charged in a September 6, 2012, Criminal Complaint.
According to court records, on August 19, 2012, Monk’s spouse discovered that he had been engaging in sexual activities with her minor daughter in their Louisville residence. Monk left the residence in Louisville, and moved to a hotel in Clark County, Indiana. Shortly thereafter, he took the minor from Louisville to Indiana with him. Not knowing where her daughter was, the mother contacted the Louisville Metro Police Department and filed a missing person report. She also filed for, and received, an Emergency Protection Order (EPO) against Monk in Jefferson County, Kentucky. The EPO included an order that Monk have no contact with either his wife or the minor stepdaughter.
Two days later, the mother learned that Monk and her daughter were staying at a motel in Clarksville, Indiana. Clark County Sheriff’s deputies were dispatched to the motel where they found Monk and the minor.
Monk subsequently admitted to law enforcement officers that he brought his stepdaughter to Indiana from her home in Louisville. Monk also admitted to engaging in a sexual relationship with the minor, and to recording the sexual activity. The Clark County Sheriff’s Department executed a search warrant on the motel room. Evidence seized included a video recorder, video tapes, and cellular telephones.
Assistant U. S. Attorney Jo E. Lawless is prosecuting the case. The Louisville Metro Police Department Crimes Against Children Unit, Louisville Division of the FBI, and Clark County (Indiana) Sheriff’s Department, 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.
Henderson, Kentucky Man Sentenced to 97 Months in Prison for Multiple Bank RobberiesRead the Press Release
OWENSBORO, Ky. – A Henderson, Kentucky man was sentenced today, to 97 months in federal prison and ordered to pay restitution by Chief District Judge Joseph H. McKinley, Jr., for robbing six financial institutions and money laundering, announced David J. Hale, United States Attorney for the Western District of Kentucky.
James Allen Morris, age 54, plead guilty on July 26, 2013, to the federal superseding indictment that charged him with using force, violence, and intimidation in the robbery of six financial institutions, located in Henderson County, Kentucky, between July 23, 2010 and January 17, 2013.
Specifically, Morris admitted to robbing the following financial institutions: on January 17, 2013, Green River Credit Union, located at 902 Second Street, Henderson, Kentucky of $32,414; on August 22, 2012, Independence Bank, located at 2610 Zion road, Henderson, Kentucky of $10,400; on August 22, 2012, Bank of Henderson, 2003 Stapp Drive, Henderson, Kentucky of $11,559; on July 11, 2012, Green River Credit Union, 902 Second Street, Henderson, Kentucky of $1,596; on May 24, 2011, U.S. Bank, 501 Barrett Boulevard, Henderson, Kentucky of $6,000; and on July 23, 2010, Integra Bank, 9720 U.S. HWY 41 N., Poole, Kentucky of $2,770.
Further, Morris admitted to one count of money laundering for knowingly depositing the proceeds of bank robbery at three separate branches of the same bank located in Henderson, Kentucky. The separate deposits were designed to conceal the fact that the deposits were bank robbery proceeds taken from the Green River Credit Union.
Morris was ordered by Judge McKinley to pay restitution to the victims.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Henderson Police Department and the Federal Bureau of Investigation.
National Respiratory Services, LLC Ordered to Pay Restitution in the Amount of $2 Million for FDA Violations and Health Care FraudRead the Press Release
– Company received more than $2 million in payments from Medicare for misbranded, adulterated and contaminated inhalation medications
LOUISVILLE, Ky. – National Respiratory Services, LLC (NRS) was ordered to pay restitution in the amount of $2 million, by U.S. Senior District Judge Charles R. Simpson, III, for committing health care fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement, between June 2006 and June 2008, Christopher Keegan, while owner and majority shareholder of NRS, along with Johnny Perry, then vice-president of NRS, and others caused compounded medications to be sent to patients, through interstate commerce, which were adulterated and misbranded, in violation of the Food Drug & Cosmetic Act. NRS provided compounded medications to patients, but led both Medicare and the patients’ doctors to believe that the pharmaceutical company was providing non-compounded medications (FDA approved-commercially manufactured).
“The conduct of National Respiratory Services and the individual defendants involved in this scheme was a fraud not only against Medicare, but upon patients and their doctors,” United States Attorney Hale. “Misbranding the potency of medication puts patients at risk without their, or their doctors’, knowledge. Today’s proceeding ends a dangerous practice.”
The drugs provided by NRS were misbranded inhalation drugs in that they contained false and misleading labeling that misrepresented the strength and potency of their active ingredients or the type of drug actually provided. Further, NRS through Keegan, Perry and others, then submitted to Medicare false and fraudulent billings which indicated that the medications they were providing to patients were non-compounded and FDA-approved when they were not. The total loss of this activity is $2,030,343.11.
Compounded medications are not FDA approved, but FDA regulations permit pharmacists to make compounded drugs, including prescription drugs, in limited amounts and under narrow circumstances, for particular patients, and at the direction of a physician when other available drugs cannot be prescribed.
Johnny Perry pleaded guilty to four counts of a felony Indictment and received a sentence of three years probation with 8 months home incarceration. Perry was ordered to pay restitution of $2,030,343.11, to the Centers for Medicare and Medicaid Services, jointly and severally with other co-defendants.
Former NRS pharmacists Leo Parrino and Linda Schmidt pleaded guilty to introducing compounded inhalation drugs that bore false and misleading labelling and represented them to be of greater strength and potency than they actually were. Parrino pleaded guilty to the charge on September 8, 2011 and was sentenced by U.S. Magistrate Judge James D. Moyer to one year probation and restitution in the amount of $14,098.24. Schmidt was sentenced to one year probation and restitution in the amount of $20,000.00.
Co-defendant James Rives, a former minority shareholder of NRS, pleaded guilty to a federal misdemeanor Information and agreed to a restitution payment of $75,996.85. As a result of the plea agreement, the United States will not pursue felony charges of conspiracy to commit health care fraud against Rives for the activity he engaged in during the period of 2006 through 2008 while defendant Rives was associated with NRS.
Christopher Keegan pleaded guilty to a federal misdemeanor Information and agreed to a restitution payment of $2,030,343.11 to the Centers for Medicare and Medicaid Services, jointly and severally with other co-defendants.
The case was prosecuted by Assistant U.S. Attorney Lettricea Jefferson-Webb, and investigated by the Food and Drug Administration Office of Criminal Investigations, Health and Human Services Office of Inspector General, United States Postal Inspection Service, and the Federal Bureau of Investigation.
Nelson County Drug Store Owner Sentenced to 27 Months for Health Care Fraud and Wire FraudRead the Press Release
– Crume Drug Store owner billed private insurance companies and Medicare Part D for fraudulent prescriptions, causing a combined loss of $242,963.04
LOUISVILLE, Ky. – The owner of Crume Drug Store, located in Nelson County, Kentucky, was sentenced in federal court today, by Chief Judge Joseph McKinley, to 27 months in prison, followed by a two year term of supervised release, and was ordered to pay $242,963.04 in restitution, announced David J. Hale, United States Attorney for the Western District of Kentucky. There is no parole in the federal system.
Timothy Lee Sizemore, age 37, of Bardstown, Kentucky, was charged by Information on February 27, 2013 with one count of health care fraud and one count of wire fraud. According to information presented in court, Sizemore purchased Crume Drug Store in March 2010, then, between April 2010 and February 2012, Sizemore devised and executed a scheme to defraud Anthem and other private health insurance providers, and Medicare Part D.
Sizemore pleaded guilty as charged on March 20, 2013. Sizemore admitted that he created false names and placed them under his own Anthem policy number, created fraudulent prescriptions under those names, and billed Anthem for those fraudulent prescriptions, even though they were never actually filled. Also, Sizemore created fraudulent prescriptions using the names of Crume customers and local doctors, and billed the customers’ private insurance companies for those prescriptions even though they were never filled. During the same time period, Sizemore admitted that he used the names of Crume customers and local doctors to create fraudulent prescriptions and billed Medicare Part D for those fraudulent prescriptions, which were never filled. As part of his plea agreement, Sizemore paid full restitution of $242,963.04 prior to his sentencing hearing.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Federal Bureau of Investigation (FBI) and U.S. Department of Health and Human Services, Office of the Inspector General.
Former Elizabethtown, Kentucky Business Operator Guilty in International Pyramid & “Ponzi” SchemeRead the Press Release
– Operated multiple businesses from Elizabethtown, Kentucky
LOUISVILLE, KY – The former owner of businesses operating in Hardin County, Kentucky pleaded guilty in United States District Court before District Judge John G. Heyburn II, today to charges of aiding and abetting with others in an illegal pyramid/ “Ponzi” scheme and engaging in a conspiracy to commit mail fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement presented in court today, defendant Swainson Hawke, a/k/a Ronald D. Scheetz of Macon, Georgia defrauded numerous investors through his control of an operation of Guardian International Travel, LLC and related companies. Guardian International operated as both a “pyramid scheme” and a “Ponzi scheme” to defraud investors. Between February 1, 2005 and January 20, 2008 Hawke and co-defendant William A. Humes of Elizabethtown, Kentucky devised a scheme to defraud and to obtain money from participants in multi-level marketing schemes promising inflated returns. Through businesses they owned and controlled, including Guardian International Travel, LLC., Hawke admitted to inducing investors to purchase discount cards, ostensibly connected to the hospitality industry, creating the illusion that returns/payments were based on profits. In a Ponzi scheme, the fraud consists of paying funds received from new investors to previous investors in the guise of profits from the alleged business venture. Hawke assured returns on monies received from participants varying from 300% to 500%, to be paid in scheduled installments over periods of time ranging from 18 to 29 months.
In the furtherance of a pyramid scheme, defendant Hawke offered participants significant financial incentives to recruit new investors by paying them “commissions.” New investors paid Guardian International Travel and other companies owned and or operated by Hawke, for the right to financial rewards through recruiting new participants – a financial gain unrelated to the sale of a product.
Hawke and Humes were charged in a 2-count federal grand jury indictment that was unsealed Thursday, June 30, 2011.
If convicted, at trial, Hawke faced no more than 40 years in prison, a $500,000 fine, three years supervised release, as well as forfeiture to the United States Government, any and all property obtained as a result of the violations. Hawke is scheduled for sentencing before Judge Heyburn on January 7, 2014 at 2:00 pm in Louisville.
Defendant Humes is scheduled for trial in United States District Court, Louisville, before Judge Heyburn on January 14, 2014 at 10:00 am.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun, Special Assistant United States Attorney Jim Lesousky and was investigated by the Federal Bureau of Investigation (FBI) and the Kentucky Attorney General; Consumer Protection Division.
U.S. Attorney Announces Successful Prosecution of Crack Cocaine Distribution Ring Operating Out of Christian County, KentuckyRead the Press Release
PADUCAH, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, today announced the sentencing of the fifth and final defendant charged in a 20 count federal grand jury indictment with conspiracy to possess with the intent to distribute crack cocaine in Christian County, Kentucky.
The five defendants are among more than 50 defendants charged federally since 2010, as a result of an ongoing and successful investigation and prosecution of persistent drug and violent crime offenders in the Hopkinsville, Ky., community. These arrests, by federal agents working with local law enforcement agencies, have removed crack cocaine and illegal firearms from the community.
“This is another tremendous example of what can be accomplished with a collaborative law enforcement strategy,” stated U.S. Attorney David J. Hale. “The federal partnership with the Hopkinsville Police Department, Christian County Sheriff’s Office and the Christian County Commonwealth’s Attorney’s Office is getting results and contributing to a safer community.”
According to documents presented in court, the drug trafficking conspiracy operated for nearly three years from November 5, 2008 until August 25, 2011 in Christian County. Defendant Geremy Montriez Long, age 33, of Christian County, was sentenced in U. S. District Court, by Senior Judge Thomas B. Russell yesterday, to 63 months in prison, followed by five years of supervised release. Long pleaded guilty on July 10, 2012, to all charges filed against him in the indictment including distribution and possession with intent to distribute crack cocaine, hydrochloride cocaine, and marijuana, conspiracy, and to being a convicted felon in possession of a firearm.
The following defendants were charged in this cocaine distribution ring and were sentenced by Senior Judge Russell: Antonio Detrex Ware, on November 7, 2012, to 70 months in prison; Herbert Lamonte Forte, on March 4, 2013, to 92 months in prison; Corey Terrell Sivils, on October 16, 2012, to 12 months; and Coleman Anthony Henderson, on November 7, 2012, to 46 months. There is no parole in the federal system.
This case was prosecuted by Assistant U. S. Attorney Larry Fentress and was investigated by the Drug Enforcement Administration (DEA), with assistance from the Western Kentucky Gun Crime Task Force. The task force included investigators from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Hopkinsville Police Department, and the Christian County Sheriff’s Department.
Eli Lilly Warehouse Thief Admits Participating in Additional Multimillion Dollar BurglariesRead the Press Release
– Stole more than $1.5 million in cigarettes from Leitchfield, Kentucky warehouse
New Haven, Conn. – The United States Attorney’s Offices for the District of Connecticut, Eastern District of Virginia, Middle District of Florida and Western District of Kentucky announced that Amed Villa pleaded guilty yesterday, before U.S. Magistrate Judge Joan G. Margolis in New Haven to federal conspiracy and theft charges stemming from his participation in warehouse burglaries in Virginia, Florida and Kentucky. On July 1, 2013, Villa pleaded guilty in the District of Connecticut to charges stemming from the theft of approximately $90 million in pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield, Conn., in March 2010, and more than $8 million in cigarettes and a cargo trailer from a warehouse in East Peoria, Ill., in January 2010.
In pleading guilty to the additional charges, Villa, 49, admitted that he and others stole more than $13.3 million in pharmaceuticals from the GlaxoSmithKline warehouse in Colonial Heights, Va., in August 2009, approximately $7.8 million in cellular telephones and multimedia tablets from the Quality One Wireless warehouse in Orlando, Fla., in January 2011, and more than $1.5 million in cigarettes from the Coremark Cigarette Warehouse in Leitchfield, Ky., in March 2011.
Villa was charged with the additional thefts in the Eastern District of Virginia, Middle District of Florida and Western District of Kentucky, respectively, and the cases were transferred to the District of Connecticut for further prosecution.
During each of the thefts, Villa and his co-conspirators gained entry into the warehouse through the roof, disabled the alarm system and loaded the stolen goods into tractor trailers.
Villa’s DNA was identified on items discarded during the thefts in Connecticut, Illinois, Florida and Virginia.
To date, Villa has pleaded guilty to two counts of conspiracy to commit theft from an interstate shipment and five counts of theft from an interstate shipment. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton in New Haven on December 4, 2013, at which time he faces a maximum term of imprisonment of five years on each of the conspiracy counts, and a maximum term of imprisonment of 10 years on each of the theft counts.
Villa, a citizen of Cuba who last resided in Miami, has been detained since his arrest on May 3, 2012.
The investigation of the Connecticut warehouse theft is being led by the FBI in New Haven and the Enfield Police Department, the investigation of the Illinois theft is being led by ATF and the East Peoria Police Department, the investigation of the Virginia theft is being led by the FBI, the investigation of the Florida theft is being led by the FBI and the Orlando Police Department, and the investigation of the Kentucky theft is being led by ATF.
This case is being prosecuted in the District of Connecticut by Assistant U.S. Attorney Anastasia E. King, with the assistance of Assistant U.S. Attorney K. Tate Chambers of the Central District of Illinois, Assistant U.S. Attorney Jessica Aber of the Eastern District of Virginia, Assistant U.S. Attorney Christopher LaForgia of the Middle District of Florida and Assistant U.S. Attorney Joshua Judd of the Western District of Kentucky.
Owner of Bluegrass Women’s Healthcare in Elizabethtown Guilty of Misbranding and Bluegrass Women’s Healthcare Guilty of SmugglingRead the Press Release
– Agreed to pay restitution in the amount of $50,663.31
LOUISVILLE, Ky. – The owner of Bluegrass Women’s Healthcare, located in Elizabethtown, Kentucky pleaded guilty today, in United States District Court, before U.S. Magistrate Judge James Moyer, to a single charge of misbranding, the corporation pleaded guilty to smuggling, and agreed to pay restitution in the amount of $50,663.31 to victims, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Canh Jeff Vo, age 45, of Louisville, Kentucky was the owner, supervising physician, and president at Bluegrass Women’s Healthcare between March 2008 and September 2009 when the violations occurred. Vo offered gynecological and obstetric services to women at Bluegrass Women’s Healthcare, including providing forms of birth control. According to the plea agreement, between March 2008 and September 2009, Vo, purchased and inserted into patients, foreign, non-FDA approved (levonorgesteral-releasing intrauterine device). These intrauterine devices or IUDs, were misbranded in that their labeling was not in the English language; and their labeling did not bear adequate directions for use. Vo pleaded guilty to the misdemeanor charge of misbranding and agreed to pay jointly and severally with Bluegrass Women’s Healthcare, restitution to victims in the amount of $50,663.31.
Also, between March 2008 and September 2009, Bluegrass Women’s Healthcare received, brought, and imported into the United States, IUDs, knowing that these were misbranded and unlawfully introduced into interstate commerce from various countries, including from Canada. Defendant VO, as president of Bluegrass Women’s Healthcare pleaded guilty, on behalf of the corporation, to the felony charge of smuggling and agreed to pay a $25,000 fine.
If convicted at trial, Vo faced a maximum of 1 year in prison, a maximum fine of $1,000 and up to 1 year of supervised release. The corporation faced a maximum fine of $500,000 and up to three years of supervised release.
Vo is scheduled for sentencing before U.S. District Judge John G. Heyburn II, on December 17, 2013, at 1:30 pm, in Louisville. At the time of sentencing, the United States has agreed to drop charges in the superseding indictment.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and is being investigated by the United States Food and Drug Administration (FDA) Office of Criminal Investigations, the Federal Bureau of Investigation (FBI), and Kentucky Office of the Attorney General Office of Medicaid Fraud and Abuse Control.
Leitchfield, Kentucky Man Guilty of Possession and Distribution of Child Pornography ImagesRead the Press Release
OWENSBORO, Ky. - A Leitchfield, Kentucky, man pleaded guilty this week, in United States District Court, before Magistrate Judge Dave Whalin, to a three-count federal grand jury indictment charging him with violating federal child pornography laws including the possession and distribution of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Michael Brandon Thompson, age 29, admitted in court to using a peer to peer file sharing network to allow others to download images of child pornography between July 18, 2011 and September 2, 2011. According to the factual basis found in an Affidavit attached to a Criminal Complaint, a detective with the Colorado Springs Police Department, utilizing the peer-to-peer file sharing network downloaded several password-protected files from Thompson. During the download, the detective was able to preview approximately 300 video files containing images of children engaged in sexually explicit conduct. The Colorado law enforcement official forwarded the lead to the Kentucky State Police who executed a state search warrant on Thompson’s home. They seized computer equipment and storage devices for digital media. A forensic examination of those items revealed tens of thousands of videos and still images of child pornography, including the depictions of infants being sexually abused.
Thompson faces a statutory mandatory minimum sentence of 5 years in prison. The maximum potential penalties are 50 years in prison, a fine of $750,000 and a period of supervised release of at least 5 years and could be for the remainder of his life. Sentencing is scheduled before Chief Judge Joseph H. McKinley, Jr. on November 15, 2013, in Owensboro, Kentucky.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky State Police conducted the investigation through Kentucky’s Internet Crimes Against Children “ICAC” 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."
Last Defendant Sentenced in Largest Jefferson County Drug Trafficking OrganizationRead the Press Release
– Cocaine supply tied to the Mexican Drug Cartel
– Involved the sale of 100 kilos of cocaine per month and resulted in 26 arrested and successfully prosecutedLOUISVILLE, Ky. – The last of 26 defendants charged in the largest Jefferson County, Kentucky drug trafficking organization was sentenced in United States District Court this week, by Senior Judge Charles R. Simpson III, for his role in the distribution of cocaine, brought into the United States through a Mexican drug cartel, to metro Louisville for distribution, announced David J. Hale, United States Attorney for the Western District of Kentucky.
“This final sentencing brings to a close the successful prosecution of a dangerous network of drug dealers,” stated U.S. Attorney Hale. “This exemplifies what can be accomplished when law enforcement collaborates across jurisdictional lines,” concluded U.S. Attorney Hale.
“This closes the book on one of the most significant drug trafficking organizations in the Louisville area. The McCarthy organization, including its out-of-state pipeline of devastating drugs into Kentucky, has been completely dismantled,” said Robert Corso, DEA Special Agent in Charge, Detroit Field Division, which covers the state of Kentucky.
All 26 defendants either pleaded guilty to charges or were found guilty at trial. Kerry Dickerson of Louisville, was sentenced to 120 months in federal prison this week, by Judge Simpson, for his role in the syndicates’ sale and distribution of cocaine.
During the investigation and prosecution of this drug trafficking organization, more than 20 assault style rifles, 37 kilos of cocaine, and $4 million cash were seized and presented as evidence. According to evidence presented during the prosecution of the 26 defendants, including the trial of Abel Flores and Ramon Flores the United States proved that hundreds of kilos of cocaine were brought into the United States through a Mexican drug cartel, to Jefferson County, Kentucky for distribution in the Louisville area through drug trafficking organizer Michael McCarthy. Further, the United States proved that the Flores brothers, who operated out of California, supplied the cocaine through a cross-country distribution network originating in southern California and involved 24 co-defendants, living in and around the Louisville area. This courier system returned between one and four million dollars to the Flores brothers each month. The conspiracy began in August 2007 and ran through May 10, 2010.
The United States presented evidence obtained through wire tapped phone recordings, controlled calls, jail calls, defendant witnesses in the Bureau of Prisons, defendant witnesses in Marshal custody, numerous law enforcement witnesses from different agencies, and experts from the Metro Louisville Police Fingerprint Lab, the DEA and an expert from the T-Mobile law enforcement compliance division to discuss the geo location information gathered from defendant phones in real time. The United States also presented documents relating to phone records, hotel records and airline records.
This case was prosecuted by Assistant United States Attorneys J. Scott Davis and Robert B. Bonar and was investigated by the U.S. Drug Enforcement Administration (DEA) Louisville Division Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Louisville Field Division, and Metro Louisville Police Department, Jefferson County Sheriff’s Office and the Indiana and Kentucky State Police.
Additional Charge Filed Against Pulaski County Sheriff’s Deputy for Federal Civil Rights ViolationRead the Press Release
WASHINGTON, D.C. - United States Attorney for the Western District of Kentucky David J. Hale and Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels announced that Steven Molen, a Sheriff’s Deputy with the Pulaski County Sheriff’s Office, was indicted by a federal grand jury yesterday on one count of violating the civil rights of a victim by using excessive force in August 2008.
The indictment alleges that on August 24, 2008, in Russell County, Kentucky, located in the Western District of Kentucky, Molen, age 48, assaulted a victim identified in the indictment as “C.F.,” resulting in bodily injury.
On June 27, 2013, a federal grand jury in the Eastern District of Kentucky indicted Molen on two other counts of violating the civil rights of different victims by using excessive force in 2009 and 2011.
The investigation was conducted by the Louisville division of the FBI. The cases against Molen will be prosecuted by Assistant United States Attorney Joshua Judd from the Western District of Kentucky, Assistant United States Attorneys Pat Molloy and Ron Walker from the Eastern District of Kentucky, and Trial Attorney Ali Ahmad from the Civil Rights Division.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Dawson Springs, Kentucky Felon Sentenced to 30 Months in Prison for Possession of A Firearm and AmmunitionRead the Press Release
– Formerly convicted of two counts of 1st degree manslaughter
BOWLING GREEN, Ky. – A convicted felon, who resided in Dawson Springs, Kentucky was sentenced in United States District Court this week, by Senior Judge Thomas B. Russell, to 30 months in federal prison, followed by three years of supervised release, for illegal possession of a firearm and ammunition, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kevin Fitzgerald, age 49, pleaded guilty to a two count federal superseding indictment, returned by a federal grand jury meeting in Bowling Green, Kentucky on February 13, 2013. The charges included being a convicted felon with possession of ammunition, including one hundred rounds of Federal brand 12-gauge shotgun ammunition, one hundred rounds of Federal brand 20-gauge shotgun ammunition, and 20 rounds of Federal brand .30-06 shotgun ammunition. Further, Fitzgerald pleaded guilty to possession of a Ranger, 12-gauge double-barreled shotgun and eight rounds of Winchester/Western brand 12-gauge shotgun ammunition.
According to an Affidavit attached to a felony criminal complaint, Dawson Springs, Kentucky police executed a search warrant on December 19, 2011, on a residence where Fitzgerald had been residing, and during the search, officers located the Ranger, 12 gauge double-barreled shotgun and ammunition in a bedroom. In court yesterday, Fitzgerald admitted to owning the shotgun as well as the Federal brand ammunition, located on October 21, 2012 in Warren County, Kentucky.
Fitzgerald is a convicted felon, having been convicted of two counts of manslaughter in the first degree, in case number 85-CR-036 in Carroll Circuit Court, Carrollton, Kentucky, on or about July 7, 1986. He was sentenced to serve 40 years in prison.
This case was prosecuted by Special Assistant United States Attorney Micah R. Reyner and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Dawson Springs, Kentucky Police Department.
Henderson, Kentucky Man Guilty in Multiple Bank RobberiesRead the Press Release
OWENSBORO, Ky. – A Henderson, Kentucky man pleaded guilty last week, in United States District Court, before Magistrate Judge Dave Whalin, to robbing six financial institutions and to money laundering, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement, James Allen Morris, age 54, admitted to using force, violence, and intimidation when he robbed six financial institutions, whose deposits were then insured by the Federal Deposit Insurance Corporation and the National Credit Union Administration , located in Henderson County, Kentucky, between July 23, 2010 and January 17, 2013.
Specifically, Morris admitted on Friday, July 26, 2013, to robbing the following financial institutions: on January 17, 2013, Green River Credit Union, located at 902 Second Street, Henderson, Kentucky of $32,414; on August 22, 2012, Independence Bank, located at 2610 Zion road, Henderson, Kentucky of $10,400; on August 22, 2012, Bank of Henderson, 2003 Stapp Drive, Henderson, Kentucky of $11,559; on July 11, 2012, Green River Credit Union, 902 Second Street, Henderson, Kentucky of $1,596; on May 24, 2011, U.S. Bank, 501 Barrett Boulevard, Henderson, Kentucky of $6,000; and on July 23, 2010, Integra Bank, 9720 U.S. HWY 41 N., Poole, Kentucky of $2,770.
Further, Morris admitted to one count of money laundering for knowingly depositing the proceeds of bank robbery at three separate branches of the same bank located in Henderson, Kentucky. The separate deposits were designed to conceal the fact that the deposits were bank robbery proceeds taken from the Green River Credit Union.
Further, Morris agreed in court to an order of restitution to be determined at sentencing. The amount owed to victims includes the total loss to the banks listed in the plea agreement including an undetermined amount to Old National Bank, and $4485 to Green River Credit Union at 902 St. Henderson, Kentucky as $29,524 was recovered.
At sentencing Morris faces a combined maximum term of 140 years in prison, a maximum fine of $1,750,000., restitution, and a three year term of supervised release.
Sentencing is scheduled for September 21, 2013 at 10:30am in Owensboro, before Chief Judge Josepha H. McKinley Jr.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the Henderson Police Department and the Federal Bureau of Investigation.
Former Owner of Louisville Pharmaceutical Company Pleads Guilty to FDA ViolationsRead the Press Release
– Company received more than $2 million in payments from Medicare for misbranded, adulterated and contaminated inhalation medications
LOUISVILLE, Ky. – The former owner of National Respiratory Services, LLC (NRS) and a former minority shareholder have pleaded guilty, in United States District Court, before Magistrate Judge James D. Moyer, to charges of misbranding and altering drugs and the company admitted to committing health care fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Christopher Keegan, age 55, of Lexington, Kentucky, the former owner of NRS, pleaded guilty yesterday to count two, of a federal Information and agreed to a restitution payment of $2,030,343.11, to the Centers for Medicare and Medicaid Services, jointly and severally with co-defendants.
According to the plea agreement, while owner and majority shareholder of NRS, Keegan and others, through NRS, caused compounded medications to be sent to patients, through interstate commerce, which were sub-potent, super-potent, non-sterile, and therefore adulterated and misbranded in violation of the Food Drug & Cosmetic Act. Further, Keegan and others, through NRS, then submitted to Medicare, false and fraudulent billings which indicated that the medications they were providing to patients were non-compounded and FDA-approved when they were not. The total loss of this activity is $2,030,343.11. Compounded medications are not FDA approved, but FDA regulations permit pharmacists to make compounded drugs, including prescription drugs, in limited amounts and under narrow circumstances, for particular patients, and at the direction of a physician when other available drugs cannot be prescribed.
Also, co-defendant James Rives, age 71, of Louisville, Kentucky, a former minority shareholder of NRS, pleaded guilty yesterday to count two of the federal Information and agreed to a restitution payment of $75,996.85. As a result of the plea agreement, the United States will not pursue felony charges of conspiracy to commit health care fraud against Rives for the activity he engaged in during the period of 2006 through 2008 while defendant Rives was associated with NRS.
At sentencing the defendants face a maximum term of one year in prison, a fine, restitution, and a period of supervised release.
In separate Indictments, Johnny Perry, of Mt. Washington, Kentucky, and the former vice-president of NRS, was charged on August 3, 2011, and pleaded guilty to a five count felony Indictment. Perry admitted that between June of 2006 and June of 2008, as vice-president of NRS, she provided compounded medications to patients, but led both Medicare and the patients’ doctors to believe that the pharmaceutical company was providing non-compounded medications. Also, Perry admitted to submitting false and fraudulent claims to Medicare for the cost of FDA-approved, commercially manufactured, prescription inhalation drugs, when they were not. Sentencing is scheduled for August 5, 2013, at 11:00 AM in Louisville, before Chief Judge Joseph H. McKinley Jr.
Former NRS pharmacists Leo Parrino and Linda Schmidt, pleaded guilty to introducing compounded inhalation drugs that bore false and misleading labelling and represented them to be of greater strength and potency than they actually had. Parrino pleaded guilty to the charge on September 8, 2011 and was sentenced by Magistrate Judge Moyer to one year probation and restitution in the amount of $14,098.24 and Schmidt was sentenced to one year probation and restitution in the amount of $20,000.00.
The case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and it was investigated by the Food and Drug Administration Office of Criminal Investigations, Health and Human Services Office of Inspector General, United States Postal Inspection Service, and the Federal Bureau of Investigation.
Mercury Ambulance Service, Inc. (Rural/Metro) Agrees to Pay $40,000 Fine to Settle Allegations of Violations of the Federal Controlled Substances ActRead the Press Release
LOUISVILLE, Ky. – Mercury Ambulance Service, Inc. (MAS), d/b/a Rural/Metro, has voluntarily reached an agreement today, with the United States of America, to pay $40,000 to settle allegations that it violated the federal Controlled Substances Act, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the settlement agreement, the United States contends that MAS failed to maintain accurate records concerning the acquisition, administration, transfer and disposal of controlled substances as required by persons who dispense legally-produced drugs, as required among other things, by the Controlled Substances Act.
Specifically, the settlement states that on February 16, 2012, the Drug Enforcement Administration’s Office of Diversion Control conducted an investigation of MAS and noted seven alleged violations. Among those noted by the investigation were a failure by MAS to report the theft of morphine to DEA within one business day of discovery, and a failure by MAS to prevent further diversion of controlled substances by failing to provide effective controls and procedures to guard against theft and diversion. Other alleged violations included the failure to complete or failure to properly complete DEA forms, and failure by MAS to complete a biennial inventory and to produce required records for an audit period.
This agreement is neither an admission of liability by Mercury Ambulance Service nor a concession by the United States that its claims regarding the covered conduct are not well-founded.
This investigation was handled by Assistant United States Attorney Benjamin S. Schecter and was investigated by the United States Drug Enforcement Administration and the U.S. Food and Drug Administration, Office of Regulatory Affairs, Office of Criminal Investigations.
Hardin County, Kentucky Man Guilty of Impersonating A Soldier for Financial GainRead the Press Release
LOUISVILLE, Ky. – A Hardin County, Kentucky, man pleaded guilty in United States District Court today, before District Judge John G. Heyburn II, to charges of pretending to be an officer of the United States, wire fraud, making false statements or representations, and entering government property under false pretenses for the purposes of committing a felony, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jonathan Wade Short, age 23, despite being a civilian with absolutely no record of service in the armed forces of the United States, admitted to falsely impersonating a United States soldier for a period between March 8, 2012, until December 7, 2012.
Further, during August 2012, Short admitted in court to meeting A.V., the daughter of a retired member of the armed forces, on a social networking site where he falsely claimed to be a highly decorated soldier, who had been on multiple deployments, and received high military honors (including the Purple Heart). Approximately one month later, when the two met for the first time in person, Short, dressed in a complete Army Combat Uniform (ACU) wearing the rank of Sergeant, a Combat Infantryman Badge, and Parachutists Badge, Combat Patch, and a Ranger tab. While dating A.V. in Daviess and Hardin Counties and elsewhere, Short, who was accompanied by A.V., repeatedly demanded and obtained financial benefits and discounts only entitled to current and former members of the armed forces of the United States. Short possessed at least seven Army Dress Uniforms, with accompanying ribbons, badges, and medals, and wore them in public and on social networking sites as part of his continuous effort to impersonate a decorated combat veteran.
Between October 6, 2012, and approximately November 16, 2012, in Hardin County, defendant Short, did repeatedly ask A.V. to send him money under the false premise that he needed money to help defray the expenses related to his son’s emergency medical treatment at Kosair Children’s Hospital in Louisville, Kentucky. Short actually had no son who was ill or hospitalized. In fact, he demanded the money from A.V. in order to exploit A.V.’s belief he was a noble soldier in a desperate family and financial situation. During the two month period, A.V. gave Short nearly $1,000.
On or about December 7, 2012, Short admitted to A.V. he was not a Soldier and that he solicited money from her based upon false pretenses. Moreover, he refused to return the solicited funds upon A.V.’s request. Further, on or about October 11, 2012, at Fort Knox, Kentucky, in the exclusive territorial jurisdiction of the United States, Short was apprehended once Military Police at Fort Knox for attempting to impersonate a Soldier. Once an investigation revealed the extent of his fraud, he was apprehended and detained by the Federal Bureau of Investigation near Springfield, IL. If convicted at trial, Short faced a possible combined maximum term of 23 years in prison, a combined maximum fine of $500,000 and a ten year term of supervised release. Sentencing is scheduled for September 15, 2013, at 1:00 pm, in Louisville, before Judge Heyburn.
This case is being prosecuted by Special Assistant United States Attorney Milton A. Turner and was investigated by the Federal Bureau of Investigation.
Christian County, Kentucky Resident Guilty of Possessing Multiple Firearms Including an Iraqi Machine GunRead the Press Release
PADUCAH, Ky. – A Christian County, Kentucky resident, pleaded guilty in United States District Court today, before Senior Judge Thomas B. Russell, to charges of possession of an unregistered firearm and possession of firearms by a person convicted of a misdemeanor crime of violence, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Lawrence E. Bussell, age 45, pleaded guilty today, to a three count indictment, returned by a grand jury meeting in Paducah, Kentucky, on October 9, 2012. Bussell was charged with the illegal possession of eleven firearms including an AR-15 type rifle and an Iraqi machine gun, which was not registered to him in the National Firearms Registration and Transfer Record.
Bussell had been previously convicted of spouse abuse on two occasions in the District Court of Christian County, Kentucky. He was convicted of a misdemeanor crime of domestic violence (Assault 4th Degree) on May 13, 1994 and again on August 24, 1994.
In court, Bussell admitted to knowingly possessing, on November 5, 2009, a Yankee Hill Machine Co., Model YHM-15f, .223 caliber semi-automatic AR-15 type rifle. Further, Bussell admitted to knowingly possessing, on August 7, 2012, eleven firearms including; a Smith and Wesson, Model M&P 15m .223 caliber rifle; a Remington Arms Model 1100, 12 gauge shotgun; a Leinad, Inc., Model MM11, 9mm rifle; a Leinad, Inc., Model DS, 410 gauge shotgun; a Roman/Cugir, Model GP WASR-10, 7.62 caliber rifle; a Taurus, Model 669, .357 caliber handgun; a Mossberg, Model 500, 12 gauge shotgun; a Remington Arms, Model 870, 12 gauge shotgun; a HiPoint, Model C9, 9mm handgun; and an Iraqi unknown make and model machine gun.
Bussell faces up to 30 years in prison, a maximum fine of $750,000 and supervised release of up to three years. Bussell forfeited to the United States all firearms and ammunition involved in the commission of the offenses in counts one through three of the indictment.
Bussell will be sentenced on October 10, 2013, at noon, in Paducah, by Senior Judge Russell.
This case is being prosecuted by Assistant United States Attorney James H. Barr and was investigated by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Louisville Businessman Guilty of Evading $355,331.24 in Employment TaxesRead the Press Release
– Concealed assets while using business accounts to fund personal aircraft travel, luxury vehicles and entertainment
LOUISVILLE, KY – Louisville Businessman Martin Twist pleaded guilty today in United States District court before Senior Judge Charles R. Simpson III to a single charge of willfully attempting to evade and defeat the payment of employment taxes, interest, and penalties totaling approximately $355,331.24, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement, Twist, age 70, beginning in June 2004, directed various bookkeepers and controllers of his businesses (which included Blue Flame Energy Col., LLC; Cherokee Drilling Co., LLC; and Martin Twist Energy Co., LLC) to stop filing employment tax returns and paying over employment taxes, and he fired a bookkeeper and a controller who paid over employment taxes to the IRS against his direction. Beginning in or about June 2004, Twist concealed assets from the IRS through inter-account transfers in order to keep his business account balances low and prevent IRS collection enforcement activity.
In early 2004, Twist caused Blue Flame Energy Co., LLC, to be created in the name of a nominee owner in order to conceal the assets of Cherokee Drilling Co. from the IRS. He caused assets of Cherokee Drilling Company and Martin Twist Energy Co., LLC, to be transferred to Blue Flame Energy Co. and its nominee owner. At all times defendant Twist maintained control of Blue Flame Energy Co.
Beginning in August of 2004 Twist transferred real estate and business holdings to nominee owners in order to remove his name as owner and to prevent IRS collection enforcement activity. More particularly, he transferred assets owned and controlled by Cherokee Drilling Co. and Martin Twist Energy Co. to Joerhea Realty, LLC, and Beasley Realty, LLC. At all times Twist maintained control of the real estate companies. In 2007 and 2008 Twist sent multiple letters either personally or through a CPA to the IRS that falsely denied his ownership and control of Blue Flame Energy Co.
Further, from 2004 through 2008 Twist used business accounts to fund his personal life style including $20,000 to $40,000 in monthly expenses that included personal aircraft travel, extravagant dining, private school tuition, vacations, luxury vehicles, and entertainment expenses, all in a continuing effort to avoid payment of employment taxes to the IRS.
A grand jury meeting in Louisville, Kentucky Tuesday, February 7, 2012 returned the single count indictment against Twist. At sentencing, Twist will face up to five years in prison, a $250,000 fine and a term of three years of supervised release.
Sentencing is scheduled for October 18, 2013, at 1:30 pm, in Louisville, before Senior Judge Simpson.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the IRS Criminal Investigations.
Federal and State Prosecutors Join Louisville Metro Police to Charge Repeat, Violent Offenders in “Project Recoil”Read the Press Release
– U.S. Attorney creates new violent crime unit
– Maximizes penalties for most violent offendersLOUISVILLE, Ky. – U.S. Attorney David J. Hale was joined today by Jefferson County Commonwealth’s Attorney Thomas B. Wine, Louisville Metro Police Chief Steve Conrad, Special Agent in Charge ATF Louisville, Stuart L. Lowrey, Special Agent in Charge FBI Louisville, Perrye Turner, U.S. Marshall James E. Clark and Assistant County Attorney Ann Dyke, in the announcement of the initial results of “Project Recoil,” a coordinated review and prosecution of violent gun crime arrests in metro Louisville. The review effort includes federal and state prosecutors, agents and officers from The U.S. Attorney’s Office, the Jefferson County Commonwealth’s Attorney’s Office, Jefferson County Attorney’s Office, ATF, FBI, and LMPD’s Viper and Robbery Units.
“To the metro Louisville community, we want you to know that the police officers, federal agents, and federal and state prosecutors are working together to fight violent crime in Louisville. It is a determined and unified effort. It is a priority for each of the law enforcement agencies assembled here,” stated U.S. Attorney David J. Hale during the press conference held at the U.S. Attorney’s Louisville offices.
“There is a strong bond between the Office of United States Attorney and the Office of Commonwealth’s Attorney.. Our prosecutors have a great professional working relationship. They understand the state and federal systems and know which system gives us the best opportunity to get dangerous criminals off the streets both quickly and for as long as possible, ” stated Thomas Wine, Commonwealth’s Attorney.
“By working together, we are leveraging each other’s strengths to ensure criminals that use firearms are held accountable,” stated Chief Steve Conrad, Louisville Metro Police Department.
ATF Special Agent in Charge Stuart Lowrey said, “Through Project Recoil, ATF, Louisville Metro PD, our federal law enforcement partners, and our Federal and State prosecutors are coordinating our efforts to maximize our impact on violent crime in the Louisville Metro area. This violent crime reduction partnership plays an important role in combating violent gun crime. It allows law enforcement to share intelligence and operate with greater unity of effort, stemming the flow of crime guns and investigating and prosecuting the people who illegally possess or use firearms to commit violent crimes.”
“Project Recoil is an excellent example of law enforcement’s commitment to cooperation and collaboration, the most effective weapon against crime,” said Perrye K. Turner Special Agent in Charge of the FBI in Kentucky.
This successful team approach to prosecuting violent offenders in Louisville, began five months ago, and has resulted in three federal indictments with four defendants being charged. Each week, prosecutors from the U.S. Attorney’s Office, Commonwealth’s Attorney’s Office, and the County Attorney’s Office meet with officers from Louisville Metro Police Department’s (LMPD)Viper Unit and agents and analysts from the ATF, FBI, and U.S. Marshall’s Office. They review recent arrest reports from metro Louisville involving illegal firearms and violent crime.
Three cases developed out of Project Recoil include Troy Lamont Gaines, Jr., 22, and Shaundrell Robinson, 33, who 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. During one robbery, a shot was allegedly fired by Gaines during a struggle with a customer. These defendants face a minimum of twenty-five years for each armed robbery, under federal statutes. Dorris Trice III, 31, was charged as a multiple convicted felon by a federal grand jury in Louisville on June 19, 2013. The three count indictment includes possessing a firearm which he allegedly used during the robbery of a food mart on March 3, 2013. Yesterday, a federal grand jury in Louisville, returned a four count indictment against Lavon Crayton, 31charging him with being a convicted felon in possession of a weapon, and possession with the intent to distribute heroin, “crack” cocaine and marijuana.
In conclusion, U.S. Attorney Hale stated, “Project Recoil is one piece of a comprehensive anti-violent crime strategy which emphasizes collaboration among federal, state and local law enforcement and prosecutorial agencies to more effectively investigate and prosecute violent criminals in Louisville. By working together, and by including all of our community stakeholders in the broad effort to stem violent crime, we will reduce violence and its impact on our city.”
Trover Health System of Madisonville, Kentucky Pays $1,162,837 to Settle False Claims AllegationsRead the Press Release
– Trover is among 55 hospitals in the agreement to pay the U.S. more than $34 million to resolve allegations related to Kyphoplasty
LOUISVILLE, Ky. – Trover Health System of Madisonville, Kentucky has voluntarily entered into a settlement with the United States of America to pay $1,162,837.00 to settle allegations that it submitted false claims in violation of the Federal False Claims Act, announced the Office of Inspector General of the Department of Health and Human Services and David J. Hale, United States Attorney for the Western District of Kentucky. Fifty-five hospitals located throughout twenty-one states are part of today’s announcement by the Justice Department that have agreed to pay the United States a total of more than $34 million to settle allegations that the health care facilities submitted false claims to Medicare for kyphoplasty procedures.
“Pursuing health care fraud is a priority of my Office and the Department of Justice. We will continue to work with the Department of Health and Human Services to ensure that medical providers who overbill Medicare are investigated and held to account,” stated David J. Hale, United States Attorney for the Western District of Kentucky.
According to the settlement agreement, the United States contends that Trover Foundation Clinic, Inc., d/b/a Trover Health System, submitted Diagnosis-related Group (DRG) claims to Medicare for certain kyphoplasty procedures performed between May 1, 2001, and July 31, 2009, as inpatient procedures when, in fact, they should have been billed as outpatient procedures. Kyphoplasty is a minimally-invasive surgery used to treat compression fractures of the spine. The device kits used in the procedure are manufactured and marketed by Medtronic Spine LLC, formerly known as Kyphon, Inc. In most cases, the procedure is done on an elective basis and requires only two hours of observation following surgery, and hence can often be done on an outpatient basis. However, Trover Health Systems often incorrectly billed these procedures to Medicare as an inpatient level of service, which reimbursed at a higher rate.
Relators Charles Bates and Craig Patrick filed a qui tam action on May 29, 2008, in the United States District Court for the Western District of New York. They will receive $203,496 of the settlement proceeds.
This agreement is neither an admission of liability by Trover Health System nor a concession by the United States that its claims are not well-founded.
This investigation was handled by Assistant United States Attorney Benjamin S. Schecter along with the United States Attorney’s Office for the Western District of New York and the Commercial Litigation Branch for the Department of Justice.
Operators of University of Louisville Hospital to Pay $2,833,408.60 to Settle False Medicare BillingsRead the Press Release
– University self-reported the over-billing for professional services
LOUISVILLE, Ky. – University Medical Center, doing business as University of Louisville Hospital, has voluntarily entered into a settlement agreement with the United States to pay $2,833,408.60 to settle allegations that it submitted or caused to be submitted false claims for payment to the Medicare program in violation of the Federal False Claims Act, announced David J. Hale, United States Attorney for the Western District of Kentucky, and the Office of Inspector General of the Department of Health and Human Services.
“Pursuing health care fraud is a priority of my Office, the Department of Justice, and the Department of Health and Human Services,” stated David J. Hale, United States Attorney for the Western District of Kentucky. “Those that do not follow the rules designed to safeguard our nation’s health care resources will be held to account.”
University of Louisville Hospital operates a separate fast track unit within the emergency department to address non-urgent care. This in-house immediate care center, FirstCare, is staffed by UMC-employed physician assistants (PAs) and nurse practitioners (NPs) under the direction of the Department of Emergency Medicine physicians – who in turn operate as University Emergency Medicine Associates.
According to the settlement agreement, from January 1, 2006 through December 31, 2010, the salaries and benefits paid to FirstCare PAs and NPs were claimed on UMC cost reports filed with Medicare between 2006-2010. At the same time, University Emergency Medicine Associate (UEMA) physicians generally treated the FirstCare PAs and NPs as their own employees including, to various degrees, billing and collecting from Medicare for their professional services.
In April 2011, counsel for UMC disclosed to the United States Attorney’s Office for the Western District of Kentucky that UMC may have violated federal law concerning the relationships it had with certain health care providers.
University Medical Center, Inc. is the 501(c) (3) organization which leases, operates and manages the University of Louisville Hospital and the James Graham Brown Cancer Center. UMC bills federal government health care programs, including Medicare, the TRICARE Program and Medicaid, for services it performs.
This settlement agreement is neither an admission of liability by UMC nor a concession by the United States that its claims are not well founded.
This matter was handled by Assistant U.S. Attorney Benjamin S. Schecter with assistance from the Department of Health and Human Services, Office of Counsel to the Inspector General.
Final Defendant Sentenced to 120 Months in Large Warren County Marijuana Distribution RingRead the Press Release
– 21 defendants prosecuted on multiple charges of money laundering and distribution of more than 1000 kilograms of marijuana
BOWLING GREEN, Ky. - United States Attorney David J. Hale announced the sentencing of the last of 21 defendants prosecuted in a large marijuana distribution ring operating from June 2008 to February 2010, in Warren County, Kentucky.
Senior Judge Thomas B. Russell late yesterday sentenced Brian Miller of Bowling Green, to 120 months in prison for his role in a conspiracy to distribute more than 1,000 kilograms of marijuana in the Western District of Kentucky.
“The successful conclusion of this multi-defendant drug trafficking case follows from an effective and coordinated law enforcement effort,” stated U.S. Attorney Hale. “We commend the good work of the Bowling Green-Warren County Drug Task Force and the DEA. These important federal and local partnerships are working to reduce the drug trafficking and the violent crime that all too often is associated with drug trafficking organizations, throughout the Western District of Kentucky.”
“This is what can be accomplished when we all work together, share information,” stated Thomas M. Loving, Director, Bowling Green-Warren County Drug Task Force.
All defendants pleaded guilty to various drug trafficking and/or money laundering charges while some pleaded guilty to reduced charges. The indictments in U.S. District Court were returned by a grand jury on November 3, 2010, April 6, 2011, and March 14, 2012. Defendants were sentenced in United States District Court, in Bowling Green, on December 4, 2012, and on February 28, 2013. The following is a listing of sentences received: Tony Barber to 30 months imprisonment; Paul Cuen to 37 months imprisonment; Bryson Hall to 18 months imprisonment; Carl Gene Jones Jr. to 97 months imprisonment; Roger Kollman to 60 months probation; Craig Larry to 60 months probation; Tim Manning to 60 months probation; Brian Scott Miller to 120 months imprisonment; Jacob Paul Miller to 87 months imprisonment; Darrell Morgan to 60 months probation; Michael Perry to 41 months imprisonment; Julius Price to 60 months imprisonment; Ralph Rich to 60 months probation; Scott Rich to 41 months imprisonment; Troy Rich to 84 months imprisonment; Stephanie Rich to 60 months probation; Michael Rich to 45 months imprisonment; Jonathan Watkins to 37 months imprisonment; and Paul Michael Wilson to 27 months imprisonment.
Differences between the sentences received for the same charge are attributable to the individual defendant’s criminal history record, which is an important factor in federal sentencing procedures. In addition to the sentences noted above, all defendants who received a prison sentence would be placed on supervised release for a period of at least three years after serving the imposed sentence. There is no parole in the federal prison system.
Two defendants had charges dismissed on a motion by the United States and one defendant, Francisco Parra of Rio Pico, Arizona, was acquitted at trial.
In addition to the sentences, the investigation resulted in the forfeiture of approximately $200,000 in U.S. currency and approximately $800,000 in real and personal property.
The cases were prosecuted by Assistant United States Attorney Larry Fentress, and investigated by the Bowling Green-Warren County Drug Task Force and the United States Drug Enforcement Administration.
Owensboro, Kentucky, Man Charged in Defrauding Elderly Couple of over $200,000 in Retirement SavingsRead the Press Release
– Money allegedly spent on personal expenses including Hummer vehicle and motorcycle
OWENSBORO, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, today announced the indictment and arrest of an Owensboro, Kentucky, man charged with six counts of mail fraud in connection with defrauding over $200,000 from an elderly Daviess County, Kentucky, couple.
Robert K. Gray was charged by a federal grand jury meeting in Bowling Green, Kentucky on June 12, 2013, and the seal was lifted today, following Gray’s arrest in Owensboro, by the Federal Bureau of Investigation. Gray had an initial appearance on the charges today, in United States District Court in Bowling Green, Kentucky before Magistrate Judge H. Brent Brennenstuhl, and counsel was appointed to represent him. He is scheduled to be arraigned in United States District Court in Owensboro on June 27, 2013, at 10:00 a.m. CST.
According to the indictment, Gray defrauded the couple by making material misrepresentations about an investment opportunity in the defendant’s construction company, after making home improvements to the couple’s residence in excess of $300,000, an amount that is more than double the assessed value of the property.
Specifically, between January 13, 2010, through August 5, 2010, C.R. paid $338,000 to the defendant Robert Gray, and to his brother (not a defendant in the indictment), for renovations to his home which, in 2013, according to the property valuation records kept by the City of Owensboro was valued at $148,000.
Further, between July 10, 2010, and December 17, 2010, Gray is charged with devising a scheme to defraud C.R. and U.R. of their GE retirement fund in the total amount of $220,000. Specifically, Gray asked C.R. to invest in his start-up company, Unlimited Constructors, to fund projects Gray said the company had in Madisonville, Kentucky and on Highway 54 in Owensboro. Gray promised C.R. a substantial return on his investment, when in truth and in fact, Gray knew Unlimited Constructors did not have construction projects for a shopping center in Madisonville, Kentucky, or for any commercial development on Highway 54 in Owensboro.
It was further part of the scheme to defraud that an Unlimited Constructors bank account was opened by defendant Gray at US Bank on September 27, 2010. According to the indictment, none of the funds obtained from C.R. were used in construction projects in Madisonville or Owensboro. According to bank records, the account was solely funded by checks drawn on a retirement fund, made payable to C.R. and U.R. Gray allegedly used the funds to pay for personal expenses and to purchase vehicles including a 2006 Hummer for $25,000 the day after the account was opened, and, approximately two weeks later, to purchase a 2006 Kawasaki motorcycle for $5,000. If convicted at trial, Gray faces 120 years in prison, a $1,5000,000 fine, and a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Marisa Ford, and is being investigated by the Federal Bureau of Investigation (FBI).
McCracken County, Kentucky, Man Sentenced to 240 Months in Prison for Distribution and Possession of Child PornographyRead the Press Release
PADUCAH, Ky. – A McCracken County, Kentucky man was sentenced today, by Senior Judge Thomas B. Russell, in United States District Court, to 240 months in prison, followed by a life-time term of supervised release for violating child pornography laws, announced David J. Hale, United States Attorney for the Western District of Kentucky.
On November 9, 2012, a superseding indictment was filed against Matthew Francis Ferreira, age 28, by a federal grand jury meeting in Paducah, Kentucky. Ferreira was charged with three counts of distribution of child pornography and one count of possession of child pornography, via a computer.
On February 26, 2013, Ferreira pleaded guilty to all counts of the superseding indictment, and admitted that he utilized peer-to-peer software and Skype software to knowingly distribute images of child pornography. According to the plea agreement, in January 2012, Ferreira distributed, through the internet, several video files containing child pornography images, from the peer-to-peer software on his computer. In February 2012, he distributed files of child pornography directly to another individual. In March 2012, he possessed multiple images of child pornography. Ferreira agreed to forfeiture of personal items used in the commission of the crimes.
This case was prosecuted by Assistant United States Attorney David Sparks and was investigated by the Kentucky Attorney General’s Cybercrime Unit.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Former FBI Fugitives Guilty of Multiple Charges Including Conspiracy to Distribute A Controlled Substance, Operating an Unlicensed Money Transmitting Business, and Lying to Obtain Federal AidRead the Press Release
LOUISVILLE, Ky. – A native of Somalia and his son, a native of Kenya, who were fugitives from the Federal Bureau of Investigation (FBI) have pleaded guilty today and last week, in United States District Court, before Judge John G. Heyburn II, to multiple charges including conspiracy to distribute a controlled substance, operating an unlicensed money transmitting business, and lying to obtain federal aid, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Abdalla Hajisufi, age 43, a naturalized citizen of the United States, having been born in Somalia, and living in Louisville, Kentucky, and his eldest son Mohamed Hajisufi, age 20, a naturalized citizen of the United States, having been born in Kenya, and living in Louisville, failed to appear in federal court for arraignment in June 2012, and were fugitives from the FBI until their arrest on January 28, 2013, by the FBI, as they attempted to reenter the United States on a flight from Europe at the Cincinnati/Northern Kentucky International Airport.
In court today and last week, both defendants pleaded guilty to conspiring to distribute Oxycodone and Hydrocodone between November 2011 and March 2012, at various times, to customers at their business, the Hana Store, formerly located on Preston Highway in Louisville. Further, Abdalla Hajisufi pleaded guilty to managing and owning an unlicensed money transmitting business operating out of the Hana Store. According to the plea agreement Hajisufi cashed payroll checks from employees of a temporary employment agency, and would deduct a small fee for the transaction, without complying with the licensing and registration requirements of Kentucky state laws. According to an FBI affidavit filed in support of a civil complaint, Hajisufi cashed nearly 107,000 payroll checks totaling over $6.6 million from July 2006 through December 2010 at the Hana Store.
Further, Abdalla Hajisufi pleaded guilty today, to stealing $41,640 in food stamp benefits from the SNAP program, which administers food stamp benefits, from January 1, 2006 through May 31, 2011, and to stealing $20,196 in Section 8 housing benefits by misrepresenting his income on benefit application forms. Hajisufi agreed to pay $119,876.87 in restitution to the Kentucky food stamp program ($41,640), the local, Jefferson County, Kentucky, Section 8 program ($20,196) and the Kentucky Medicaid program ($58,040.87), stolen in the same manner as the Section 8 and food stamp benefits but uncharged as it was not discovered until after this indictment.
Hajisufi further agreed to the forfeiture of $25,008 in United States currency which was seized at his place of business, The Hana Store, during execution of the FBI search warrant on March 13, 2012.
According to the plea agreements, Mohamed Hajisufi faces a minimum term of 20 years in prison, a fine of $1,000,000 and a three year term of supervised release. Abdalla Hajisufi faces a combined maximum term of 60 years in prison, a fine of $2,500,000 and a three year term of supervised release. Mohamed Hajisufi is scheduled for sentencing on September 3, 2013, at 3pm, in Louisville.
This case is being prosecuted by Assistant United States Attorney Jason Snyder and is being investigated by the FBI, Internal Revenue Service, United States Department of Housing and Urban Development (HUD), and United States Department of Agriculture (USDA).
Allen County, Kentucky, Residents Charged with Conspiring to Sell Hydrocodone Stolen from A Scottsville, Kentucky, PharmacyRead the Press Release
– Former pharmacy employee charged in the conspiracy
BOWLING GREEN, Ky. – Allen County residents were charged this week, by a federal grand jury in Bowling Green, Kentucky, with a conspiracy to distribute the pain killer, Hydrocodone, that was stolen from a pharmacy by a former employee, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the seven count federal indictment, beginning in May 2012, and continuing to October 2012, in Allen County, Kentucky, Lynn Harper Denton, age 46, a former employee of Stovall’s Prescription Shop, and Katherine Virginia Rookstool, age 34, conspired to sell 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.
Further, Denton, Rookstool, and Jeffrey Clay Stinson, age 47, were charged with conspiracy to possess with intent to distribute Hydrocodone. Additionally, Stinson faces four charges of knowingly possessing and distributing hydrocodone.
If convicted at trial, Denton could be sentenced to no more than 30 years in prison, a $750,000 fine, and a period of five years of supervised release. Defendant Rookstool could be sentenced to no more than 25 years in prison, a $750,000 fine, and a period of five years of supervised release. Defendant Stinson could be sentenced to 60 years in prison, a $3,000,000 fine and a period of no less than four years of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being 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, Kentucky Police Department.
Caldwell County Man Charged with Defrauding Social Security Disability and Medicaid ProgramsRead the Press Release
– Received benefits for 20 years by alleging he was disabled
PADUCAH, Ky. – A Caldwell County, Kentucky resident pleaded guilty in United States District Court today before Senior District Judge Thomas B. Russell to charges of failure to report to Social Security Administration his ability to work and fraudulently receiving disability and Medicaid benefits for 20 years announced David J. Hale, United States Attorney for the Western District of Kentucky.
Travis L. Vickery, age 44, pleaded guilty to a two count federal indictment that alleged between September 1991 and October 2011, Vickery, who was not disabled from working, knowingly and willfully concealed and failed to disclose to the Social Security Administration that he was able to work and not disabled. Further, Vickery admitted to knowingly and willfully executing a scheme and artifice to defraud the Medicaid Program, by falsely representing he was disabled from working, and thereby received health care benefits, items, and services to which he was not entitled.
At sentencing , Vickery faces no more than 15 years in prison, a fine of $500,000 plus restitution, and a period of no more than three years of supervised release. At sentencing, the United States will allege the combined total loss to the Social Security Administration and the Medicaid Program at $97,225.82.
This case is being prosecuted by Assistant United States Attorney James H. Barr and was investigated by the Social Security Administration’s Office of Inspector General.
Daviess County, Kentucky Man Guilty of Embezzling from His Former EmployerRead the Press Release
OWENSBORO, Ky. – A Daviess County, Kentucky man pleaded guilty today, in United States District Court, before Chief Judge Joseph H. McKinley, Jr. to charges of accessing a protected computer to obtain something of value with the intent to defraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jason Duke, age 35, from Owensboro, Kentucky, was charged in a ten count federal grand jury indictment on February 20, 2013. According to the plea agreement, between December 11, 2007, and July 11, 2010, defendant Duke, accessed a protected computer, exceeding his authorized access, and obtained a total of approximately $101,000 in checks drawn on the account of his employer, Riverside Transport Incorporated, formerly known as BFL Trucking Inc. For the purpose of executing the fraudulent scheme, Duke accessed his employer’s computer, and obtained checks, which he cashed using an alias at a food mart in Indiana. The checks ranged in value from $146.18 to $405.92.
At sentencing, Duke faces no more than five years in prison for each of the ten counts, a $250,000 fine, an order of restitution, and a three year period of supervised release.
Sentencing is scheduled in Owensboro on September 6, 2013, at 11:00 a.m. CST before Chief Judge McKinley.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and was investigated by the Owensboro Police Department and the United States Secret Service.
Louisville Man Guilty of Harboring 20,000 Images of Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Louisville man pleaded guilty in United States District Court, before Magistrate Judge Dave Whalin, to a six count federal grand jury indictment charging him with violating federal child pornography laws including the possession of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Philip Haering, admitted in court to using a peer to peer file sharing network to download images of child pornography between May 19, 2006 and May 3, 2011. According to the factual basis found in the plea agreement, an FBI agent utilizing the same peer-to-peer file sharing network downloaded several password protected files from Haering. During the download, the agent was able to preview one of the files, a movie, that contained child pornography.
The FBI obtained and executed a federal search warrant on August 16, 2011 for Haering's home address. During the execution of the search warrant Haering admitted to viewing child pornography. He also admitted to downloading child pornography since 2003 and claimed to have filled a laptop, two external hard drives and 44 thumb drives with files of child pornography.
A forensic examination revealed over 20,000 files of child pornography. The thumb drives had a total of 2,103 known files of child pornography. The 1 terabyte hard drive had 4,764 known files of child pornography. The 500 GB Hard Drive had 4,446 known files of child pornography, and both laptops had a total of 3,784 known files of child pornography. The forensic examination also revealed that Haering received child pornography on May 19, 2006, September 7, 2008, and August 15, 2011.
Haering faces a statutory mandatory minimum sentence of 5 years in prison. The maximum potential penalties are 110 years in prison, a fine of $1,500,000 and a period of supervised release of at least 5 years and could be for the remainder of his life. Sentencing is scheduled before Judge Whalin on August 29, 2013, in Louisville.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the FBI.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Louisville Physician Pleads Guilty to Structuring Financial Transactions to Evade ReportinRead the Press Release
– Agrees to forfeit $66,980.
LOUISVILLE, Ky. - A Louisville physician pleaded guilty in U.S. Federal Court, before U.S. Magistrate Judge Dave Whalin, on May 31, 2013, to four felony counts of structuring transactions with a financial institution in order to evade reporting requirements announced David J. Hale, United States Attorney for the Western District of Kentucky.
Dr. Ronald J. Hamm, age 61, who owned and operated Hameron Weight Loss Center, Inc., was charged with making ten cash deposits on ten different days, all in amounts under $10,000 and totaling $66,980, in order to evade the reporting requirements of the Bank Secrecy Act. (Financial institutions have a legal obligation to report transactions in excess of $10,000.)
Dr. Hamm's plea agreement includes the forfeiture of $66,980 as proceeds of the crime, including over $30,000 seized by the Internal Revenue Service and over $35,000 to be paid to satisfy a money judgment, representing the remainder of the proceeds of the criminal conduct.
The structuring charges, to which Dr. Hamm pleaded guilty, each carry a penalty of up to five years in prison and a fine of up to $250,000. The defendant is scheduled to appear for sentencing before Judge John G. Heyburn on August 19, 2013, in Louisville.
This case is being prosecuted by Assistant United States Attorney Jason Snyder and is being investigated by the Internal Revenue Service Criminal Investigation Division's Financial Crimes Task Force and the Jefferson County Sheriff's Office.
Louisville Residents Charged in Multiple Count Indictment in Drug Trafficking ConspiracyRead the Press Release
LOUISVILLE, Ky. – Members of an alleged drug trafficking organization operating out of Jefferson County, Kentucky were arraigned in U.S. District court this week on multiple charges including distribution of cocaine and heroin, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the May 22, 2013, grand jury indictment, unsealed yesterday, 14 defendants from the Louisville area participated in a conspiracy beginning in April, 2011, lasting until April 30, 2013, to possess and distribute large quantities of cocaine and heroin. Defendant Anthony D. Smith a/k/a “Blackjack” had previously been convicted of a felony in Jefferson County Circuit Court. Smith, Charles A. Reed and Eric Dryden were previously charged in U.S. District Court on May 1, 2013 in a criminal felony complaint. According to an affidavit attached to the complaint, the defendants operated their alleged drug trafficking operation from 2415 Ralph Avenue and 10112 McNeely Lake Drive, both located in Jefferson County, Kentucky. On April 30, 2013, Smith is alleged to have provided law enforcement with 10 kilograms of cocaine in a controlled purchase. A search warrant executed at the two residences resulted in the seizure of six handguns, cocaine, drug paraphernalia, and U.S. currency.
Arrested and facing various charges in the 16-count indictment were Smith, Reed, Dryden, Monica J. Smith, William R. Smith a/k/a “Ray Ray”, Kendrick C. Brown a/k/a “Stacks”, Joyce Vickie Smith, Joseph Whitfield, Clark Brown, Kinte Brown, Deon Crumes, Mike Miller, Melvin Young a/k/a “Dead”, and Andre L. Oneal.
If convicted at trial, defendants face penalties from no less than five years in federal prison per count and up to 20 years per count, three years and up to ten years of supervised release per count, and fines ranging from $10,000 to $1,000,000 per count. The defendants are in the custody of the U.S. Marshals Service.
This case is being prosecuted by J. Scott Davis and is being investigated by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), Louisville Metro Police Department, and Shively 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.Last Defendant Sentenced for Transporting 5,615.5 Pounds of Marijuana from Edinburg, Texas to Louisville, KentuckyRead the Press Release
LOUISVILLE, Ky. The last defendant charged in a conspiracy to sell marijuana transported from Edinburg, Texas to Jefferson County, Kentucky was sentenced in United States District Court this week by Senior Judge Charles R. Simpson III, to 70 months in prison followed by 5 years of supervised release announced David J. Hale, United States Attorney for the Western District of Kentucky.
Luis Salcido-Guzman, was among nine defendants indicted by a federal grand jury meeting in Louisville, on January 19, 2011. Five of the defendants received prison sentences for their role in the conspiracy. Two pleaded guilty to the charges, three were convicted by a federal jury in United States District Court and charges against four defendants were dismissed.
According to information presented in court, around December 15, 2010, the defendants conspired with one another to deliver, by tractor trailer, 5,615.5 pounds of marijuana from Edinburg, Texas, to a warehouse at 1214 Outer Loop, located in Louisville, Kentucky.
Defendant Heraclio Ramos-Gonzalez pleaded guilty and was sentenced on February 2, 2013, to 65 months in prison followed by three years of supervised release. Heriberto Salcedo-Diaz was convicted at trial of counts one and two and was sentenced on January 23, 2013, to 151 months in prison. Defendant Juan Landeros-Sandoval was convicted at trial on counts one and three and was sentenced on January 23, 2013 to 240 months in prison followed by ten years of supervised release. Alfredo Carrillo-Alvardo, a/k/a Alfredo Carrillo-Alvarado was convicted at trial on counts one and three and was sentenced on January 23, 2013 to 121 months in prison and was the only United States citizen.
This case was prosecuted by Assistant United States Attorney Robert B. Bonar and was investigated by Louisville Metro Police Department.
Owner and COO of Defunct Eastern Livestock Company Sentenced in Federal Court for Committing Mail FraudRead the Press Release
– Founder Thomas Gibson sentenced to 70 months in federal prison;
– COO Michael McDonald sentenced to 57 months in federal prisonLOUISVILLE, KY – The former owner and former chief operating officer of now-bankrupt Eastern Livestock Company, LLC, were sentenced in U. S. District Court today, by Senior Judge Thomas B. Russell, for mail fraud arising from their part in a check-kiting scheme that caused the loss of millions of dollars to hundreds of businesses and individuals, including approximately 200 sellers of cattle located in Kentucky, who did business with Eastern Livestock in 2010, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Founder and former owner, Thomas P. Gibson, age 73, of Lanesville, Indiana, was sentenced to 70 months in federal prison, followed by two years of supervised release, and former Chief Operating Officer Michael Steven McDonald, age 61, of Lanesville, Indiana, was sentenced to 57 months in federal prison, followed by two years of supervised release, for their parts in a multi-million dollar check kiting scheme. There is no parole in the federal system.
“Gibson and McDonald caused widespread damage to the livestock industry and devastating harm to numerous individual cattle farmers in Kentucky and elsewhere. Many other businesses associated with the livestock industry were also damaged by the Eastern Livestock fraud. These lengthy prison sentences hold Gibson and McDonald accountable for their federal crimes,” commented U.S. Attorney Hale. “Additionally, our seizure of $4.7 million from the defendants has preserved a significant portion of the crime proceeds, which will ultimately be distributed to victims of the fraud. Equitable disbursement of these funds to victims will be accomplished through a coordinated process involving two Eastern Livestock bankruptcy cases pending in the Southern District of Indiana, and the forfeiture action brought by my office in federal court in the Western District of Kentucky.”
Eastern Livestock was one of the largest cattle brokerage businesses in the United States, processing cattle sales and operating branch facilities in eleven states, including Kentucky, until its closure on November 2, 2010. According to the plea agreement, between August 9, 2004 and November 2, 2010, in Nelson County, Kentucky, and elsewhere, the defendants Gibson and McDonald, engaged in an extensive check-kiting fraud in order to induce Fifth Third Bank to release funds from a $32 million line of credit issued by the bank in favor of Eastern Livestock Company. The check-kiting scheme caused grossly inflated balances in accounts maintained by Eastern Livestock with the bank. To further support the fraudulent scheme, the defendants caused false and fraudulent documents to be submitted on a daily basis to Fifth Third, which contained grossly inflated accounts receivable figures. The U.S. mail and/or commercial interstate carrier service was used in the execution of the scheme in that the defendants caused checks to be issued from Eastern Livestock accounts, which were mailed to business associates who agreed that checks from their business accounts could be deposited into the Eastern Livestock account at Fifth Third, thereby temporarily inflating the account balance. Two such Eastern Livestock checks in the amounts of $94,374.48 and $98,101.93, were delivered via U. S. Postal Service to a designated address in Nelson County, Kentucky, on or about September 5, 2008. When Fifth Third closed Eastern Livestock's accounts in November 2010 because of the check-kite, Fifth Third, Wells Fargo, and hundreds of cattle sellers, auction houses, and other people who had done business with Eastern Livestock sustained losses. The cattle sellers had received Eastern Livestock checks in payment for cattle, and these checks were dishonored by Fifth Third Bank and returned when Eastern Livestock's accounts were closed. At the time, there were insufficient funds to cover the millions of dollars in outstanding Eastern Livestock checks issued by the defendants.
U.S. Attorney Hale commended the collaborative investigation involving the U.S. Department of Agriculture’s Office of Inspector General, the U.S. Postal Inspection Service, and the Federal Bureau of Investigation.
This case was prosecuted by Assistant U.S. Attorney Marisa Ford, and Special Assistant U.S. Attorney James R. Lesousky, Jr. Assistant U.S. Attorney Amy Sullivan is prosecuting the civil forfeiture claim.
Taylor County, Kentucky Man Sentenced to 110 Years in Prison for Production and Possession of Child PornographyRead the Press Release
– Victims were under five years of age
BOWLING GREEN, Ky. – A Taylor County, Kentucky man was sentenced in United States District Court, before Chief District Judge Joseph H. McKinley Jr., to 110 years in prison, followed by a lifetime of supervised release, for violating federal child pornography laws, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Tony Edwin Davis, 50, of Campbellsville, Kentucky pleaded guilty on February 5, 2013, to a 15 count federal grand jury indictment that charged him with production and possession of child pornography. According to court records, between December 18, 2009 and November 28, 2010, on 14 occasions, Davis knowingly enticed and coerced two girls under five years of age, to engage in sexually explicit conduct for the purpose of producing a visual depiction. Davis also pleaded guilty to one count of knowingly possessing child pornography on or about May 20, 2012.
“Today’s sentence of 110 years in a federal prison without parole should send a stark message. We are committed to fighting child exploitation and to holding accountable those who would prey upon and harm young children,” stated U.S. Attorney Hale. “I am grateful for the collaborative work of the Taylor County Sherriff’s Department, the Campbellsville Police Department and the FBI. The Campbellsville community is a safer place.”
“Davis victimized the most innocent members of our community in a horrific manner as shown by the sentence in this case,” said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky. "The production of Child Pornography is activity that the FBI aggressively investigates. We work together with our state, local, and other federal law enforcement partners through Project Safe Childhood to help stop it.”
According to an affidavit filed by an FBI special agent in support of a criminal complaint against Davis, the FBI was contacted by the Taylor County Sheriff’s Office and Campbellsville, Kentucky Police Department on August 10, 2012, when a cell phone, formerly in the possession of the defendant, was found to have images of child pornography.
This case was prosecuted by Assistant U. S. Attorney A. Spencer McKiness and was investigated by the FBI, the Taylor County Sheriff’s Department and the Campbellsville Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."