Western District of Kentucky
Press releases recorded for this federal judicial district.
Six Charged in Large Marijuana Drug Trafficking OperationRead the Press Release
– Nearly 4,900 pounds of marijuana seized and $160,650 in U.S. currency recovered in New Albany, Indiana and Jefferson County, Kentucky homes
LOUISVILLE, Ky. – Six defendants living in Jefferson, Shelby and Bullitt Counties, Kentucky have been charged today, in United States District Court, as part of a drug trafficking operation, with conspiracy to possess with intent to distribute and distribute 1000 kilograms or more of marijuana announced David J. Hale, United States Attorney for the Western District of Kentucky.
Raimundo Ramirez, Osvaldo Saldivar-Avila, Ricardo Saldivar-Avila, Jose Alfredo Escobar-Zavala, Jose Antonio Mora-Pizarro, Rafael Garcia-Garcia, were arrested yesterday and appeared in court this afternoon after being charged in a federal criminal complaint.
According to an affidavit, attached to the complaint, on the morning of May 16, 2013, agents observed Osvaldo Saldivar Avilla, Ricardo Saldivar Avilla, Jose Alfredo Escobar Zavala, and Osvaldo Saldivar Avila, at 906 Ulrich Avenue, in Louisville, KY. Almost immediately thereafter, a tractor trailer arrived and backed up to the rear bay door. The driver of this tractor trailer, later identified as Jose Antonio Mora Pizarro, was observed prepping the truck and watching inside the warehouse as pallets were being unloaded. On the pallets were multiple cardboard boxes labeled as cabbage and some pallets contained bags of onions. The tractor trailer was subsequently stopped by law enforcement and a drug detection dog indicated a positive alert for narcotics. The driver, Mora Pizarro, allegedly stated he was delivering cabbage and onions to Lexington, KY, and his log book showed he had been in Texas at 12:00 am on May 16, 2013.
A search warrant was obtained for 906 Ulrich Avenue where approximately 4,890 pounds of marijuana was found shrink wrapped inside cabbage boxes. Ricardo Saldivar Avilla, Jose Alfredo Escobar Zavala and Rafael Garcia were found unloading the suspected marijuana out of the cardboard boxes and arrested on site.
On March 14, 2013, the DEA Louisville District Office executed a federal search warrant at an alleged “stash house” being rented by defendant Raimundo Ramirez, on Jaycee Drive, located in New Albany, Indiana. Officers seized multiple heat sealers, unused heat sealing bags, multiple scales, drug ledgers, previously used heat sealed bags with numbers written on them, $160,650.00 U.S. Currency and a hand gun. The U.S. Currency was bundled with rubber bands and some of the currency, bundled in rubber bands, was further contained in heat sealed bags.
If convicted at trial, the defendants face a mandatory minimum of ten years up to life in prison, a fine of $10,000,000 and up to life of supervised release.
This case is being prosecuted by Assistant United States Attorney Laura Hall and is being investigated by the U.S. Drug Enforcement Administration (DEA) Louisville Office and the Louisville Metro Police Department.
Graves County, Kentucky Resident Ordered to Pay $2,500 Fine and Receives Two Year Migratory Birds Hunting BanRead the Press Release
– Baited mourning doves for hunting
PADUCAH, Ky. – A Graves County, Kentucky, resident was sentenced by United States Magistrate Judge Lanny King, pursuant to a plea agreement, to pay a $2,500 fine, and $35 in special penalty assessments, for baiting and hunting mourning doves, announced United States Attorney David J. Hale. Judge King also sentenced Michael D. Cartwright, age 63, as a condition of probation, to not hunt migratory birds in the United States for a period of two years.
Cartwright pleaded guilty and was sentenced on May 16, 2013, to two counts of violating the Migratory Bird Treaty Act, a Federal wildlife statute which protects migratory birds and regulates the hunting of migratory game birds. Cartwright was charged with placing millet and milo seed, on a field and land adjacent to the field, for the purpose of luring mourning doves and for hunting mourning doves over bait. The investigation by a Kentucky Conservation officer, documented that on August 25, 2012, millet and milo grass seed were present on the Cartwright farm, located in Sedalia, Kentucky, in order to attract migratory game birds. The investigating officer returned on August 29, 2012, and documented that the seed had been disked into the soil, in the field used for the annual dove hunt. Cartwright admitted that he had concealed the bait prior to the dove hunt.
The case was prosecuted by Assistant United States Attorney Randy Ream, and it was investigated by the Kentucky Department of Fish and Wildlife Resources and the U.S. Fish & Wildlife Service.
Former Henderson County Business Owner Sentenced to 12 Months for Trafficking in Counterfeit GoodsRead the Press Release
OWENSBORO, Ky. – The former owner of Tree Tops business located in Henderson County, Kentucky was sentenced to 12 months and one day, by Chief Judge Joseph H. McKinley, Jr., today in United States District Court, for trafficking in counterfeit goods announced David J. Hale, United States Attorney for the Western District of Kentucky. There is no parole in the federal system.
Yorel Petrie, of Henderson, Kentucky, pleaded guilty on February 20, 2013, to a one count federal indictment returned on September 12, 2012. According to the plea agreement, between January 2008 and October 6, 2009, Petrie, while owner and operator of Tree Tops, trafficked in hats, shoes, and clothes, while knowingly using counterfeit marks to represent trademarks then owned and registered with the U.S. Patent and Trade Mark Office. Examples of the spurious marks the defendant knowingly used, which were identical to or substantially indistinguishable from marks that were then in use and registered for hats, shoes, or clothes include: the Nike “Swoosh” trade mark, the Nike “Jumpman” trademark, the Polo Ralph Lauren “polo by Ralph Lauren” tag, the Major League Baseball Logo, the NBA logo “Jerry West” silhouette, the Ed Hardy stylized cursive logo, and the Lacoste “alligator” logo.
Petrie admitted in court that the purpose of the Tree Tops business was the importation and sale of goods bearing counterfeit trademarks. Further, Petrie admitted that the use of the counterfeit marks and logos was likely to cause confusion and deceive customers.
This case is being prosecuted by Special Assistant United States Attorney Micah R. Reyner and is being investigated by the Federal Bureau of Investigation (FBI).
Three Henderson, Kentucky Residents Face Federal Charges in Multiple Henderson and Daviess County Bank RobberiesRead the Press Release
– Ten banks and one convenience store robbed during a nearly three year period
BOWLING GREEN, Ky. – The federal grand jury meeting in Bowling Green, Kentucky this week charged three Henderson County, Kentucky residents with multiple counts of bank robbery and brandishing a firearm during a crime of violence, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Weston Neel Hurd, age 39, of Henderson, Kentucky was charged with robbing two banks located in Owensboro, Kentucky and one bank located in Henderson, Kentucky between August 6, 2012 and December 28, 2012. Specifically, Hurd is alleged to have brandished a firearm during the robbery of the First Security Bank, located on Frederica Street, in Owensboro, of $1,131 on December 28, 2012. Further, according to the indictment, Hurd, through force, violence and intimidation allegedly robbed the Ohio Valley Financial Group, in Henderson, Kentucky of $2,651 on August 6, 2012 and that Hurd robbed the Kentucky Telco Federal Credit Union, located in Owensboro, of $2,878 on October 2, 2012.
If convicted at trial, Hurd faces no more than 20 years for counts one and two, no more than 25 years for county three, and no less than seven years to life for count 4, for a combined total of 72 years in prison including life, a $250,000 fine for each count, and five years of supervised release. Hurd is being held in the Daviess County Detention Center.
This case is being prosecuted by Assistant United States Attorney Daniel P. Kinnicutt, and is being investigated by the Federal Bureau of Investigation (FBI), the Owensboro Police Department and Henderson Police Department.
Meiesha R. Sharp, 23, of Henderson, Kentucky was charged in a four count federal grand jury indictment with robbing a convenience store and a bank, both located in Henderson, Kentucky and with brandishing a firearm, specifically an AMT, Model Backup, .380 caliber pistol, during a crime of violence. According to the indictment, Sharp robbed the Kangaroo Express store, located in Henderson, on June 25, 2012 and robbed the Fifth Third Bank, located in Henderson, of $29,068.95 on June 29, 2012, and on both occasions did assault and put in jeopardy the life of another person by the use of a dangerous weapon, that is a firearm.
If convicted at trial, Sharp faces 77 years and up to including life in prison, a fine of $1,000,000 and no more than five years of supervised release for each charge. Sharp remains in the Henderson County Detention Center.
This case is being prosecuted by Special Assistant United States Attorney Micah Reyner and is being investigated by the Federal Bureau of Investigation (FBI) and the Henderson Police Department.
James A. Morris, 53, of Henderson, Kentucky was charged with robbing five banks in Henderson, and one bank in Webster County, Kentucky between July 23, 2010 and January 17, 2013. An additional charge of money laundering was added in the Superseding Indictment. According to the indictment, Morris, through force, violence and intimidation, allegedly robbed; Green River Credit Union located in Henderson, on January 17, 2013; Independence Bank located in Henderson, on August 22, 2012; Bank of Henderson, on August 22, 2012; Green River Credit Union, in Henderson, on July11, 2012; U.S. Bank, in Henderson, on May 24, 2011; and Integra Bank, in Poole, Kentucky, on July 23, 2010.
If convicted at trial, Morris faces no more than 20 years in prison for each count for a combined maximum of 140 years, a $250,000 fine for each count for a combined maximum of $1,750,000, and supervised release for a period of three years. Morris remains in custody awaiting arraignment on the new charge.
This case is being prosecuted by Assistant United States Attorney Joshua Judd 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.Dawson Springs, Kentucky Felon Guilty of Possession of A Firearm and AmmunitionRead the Press Release
– Formerly convicted of two counts of 1st degree manslaughter
BOWLING GREEN, Ky. – A convicted felon residing in Dawson Springs, Kentucky pleaded guilty in United States District Court this week to possession of a firearm and possession of ammunition before Senior Judge Thomas B. Russell, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kevin Fitzgerald pleaded guilty to a two count federal superseding indictment, returned by a federal grand jury meeting in Bowling Green, Kentucky on February 13, 2013, that charged the 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.
At sentencing, Fitzgerald faces no more than 20 years in prison, a fine of $500,000 and three years of supervised release. Sentencing before Senior Judge Russell is scheduled for August 6, 2013, at 11:45 am in Bowling Green.
This case is being 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.
Louisville Internet Tobacco Product Retailer Guilty in Contraband Cigarette TradeRead the Press Release
– Agrees to forfeit more than $3.6 million dollars in assets including 10,824,192 assorted tobacco products
LOUISVILLE, Ky. – The former owner of Cigarettes Direct to You, pleaded guilty in U.S. District Court this week to a felony information charging him with running an illegal retail cigarette trafficking business, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement, Israel Chavez, 48, of Louisville, Kentucky, conspired and agreed with 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, defendant Chavez, aided and abetted by Peter 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.
A 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., were settled today in U. S. District Court, in the Western District of Kentucky. Israel Chavez and Pam Chavez agreed to forfeit to the United States, more than $3.6 million dollars in assets including approximately $3,214,000 in cash and deposit accounts and 10,824,192 tobacco products. Tax stamps valued at $108,000 will be returned to the Kentucky Department of Revenue.
In a separate, but related case, Bello, age 43, of Miami, was charged with conspiracy to commit wire fraud and is scheduled for trial before Chief Judge Joseph H. McKinley on June 3, 2013. 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.
At sentencing, Chavez faces a maximum of 20 years in prison, a $250,000,00 fine, and up to three years of supervised release. Sentencing is scheduled for August 7, 2013, before U.S. Magistrate Judge Dave Whalin.
This case is being prosecuted by Assistant United States Attorney Randy Ream, Special Assistant United States Attorney Micah R. Reyner. The restitution collection effort is being led by Assistant United States Attorney Amy Sullivan. The case is being investigated by the US Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Warren County, Kentucky, Construction Company Owner Guilty of Income Tax EvasionRead the Press Release
– Concealed $1,045,327 in income from the IRS
– Failed to disclose his ownership in Tri-State Construction and income receivedLOUISVILLE, KY – A Warren County, Kentucky construction company owner pleaded guilty in United States District Court this week to an Indictment charging tax evasion announced David J. Hale, United States Attorney for the Western District of Kentucky.
Darrell Mathis, owner of Tri-State Construction, pleaded guilty before United States Magistrate Judge James Moyer, on April 22, 2013, to five counts of income tax evasion due for the tax years 1999 through 2001 and 2005 through 2009. The returns were filed with the Internal Revenue Service (IRS).
According to the plea agreement, from June 2004 until December 2011, Mathis evaded payment of $177,634 in federal income taxes due for the tax years 1999 through 2001. During this time period, among other things, he falsely submitted an IRS Offer-in-Compromise Form 656 in which he concealed his ownership and control of his personal assets, including vehicles and boats, and his business, Tri-State Construction and the company’s bank accounts. Throughout this period he owned and operated Tri-State construction but concealed his ownership and income from the IRS by placing it in the name of a nominee and directing IRS From W-2's not be filed in his name. For the tax years 2005 through 2008 Mathis received approximately $1,045,327 in income from Tri-State construction that he concealed from the IRS by not reporting the income on his federal income tax returns. The resulting additional tax due and owing for 2005 through 2009, is $383,558. Mathis knowingly signed his 2005 through 2008 federal income tax returns under the penalty of perjury.
The tax evasion counts, Mathis pleaded guilty to, also charged that in December 2007, Mathis purchased a piece of real estate at Cooper Dearing Road for $144,900 in the name of a nominee to conceal the purchase from the IRS. In January 2008, he sold this piece of real estate for $235,000 and purchased property located at 121 Timber Ridge Court, Alvaton, Kentucky, again in the name of a nominee. Further, in 2009 and 2010, Mathis caused the owner of Southside Auto Sales to file liens on his vehicles to conceal his equity in them from the IRS. Lastly, in January 2007, Mathis purchased a Keystone camper, titling the camper in a nominee name to conceal his ownership.
Mathis faces up to twenty-five years in prison and a fine of $500,000. A Sentencing date has not been scheduled.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and Joshua Judd and was investigated by the IRS, Division of Criminal Investigation.
Louisville Fugitive and Former Owner of Jet Medical Supplies Charged with Health Care Fraud and Wire FraudRead the Press Release
– Added To Most Wanted List
LOUISVILLE, Ky. – The former owner of Jet Medical Supplies, LLC, was charged by a federal grand jury in Louisville, Kentucky, on five counts of wire fraud, five counts of health care fraud, and ordered to forfeit all property and gross proceeds derived from the offenses, announced David J. Hale, United States Attorney for the Western District of Kentucky. Jorge Jesus Cubillo Fernandez, a fugitive from the law, also, was added to the U.S. Department of Health and Human Services, Office of Inspector General’s Most Wanted Fugitives list.
According to the April 17, 2013 indictment, Fernandez, age 43, purchased Jet Medical on May 27, 2010. Jet Medical was a durable medical equipment supply company located at 12700 Shelbyville Road in Louisville. After purchasing the company, Fernandez began submitting claims to Medicare for payment. The indictment alleges that, from May 2010 until at least February 2011, Fernandez fraudulently requested payment from Medicare, via a carrier, and payment was received via electronic funds transfers from Medicare for items, benefits, services, and products that were never provided.
The investigation revealed that a number of billings were submitted by Jet Medical for beneficiaries whose unique Medicare beneficiary number had been compromised. The majority of claims submitted by Jet Medical allegedly used a unique beneficiary number, which had been associated with fraud by another provider. Further, the investigation revealed that Jet Medical, through Fernandez, billed for items, benefits, products, supplies, or services purportedly provided to beneficiaries located outside Kentucky. However, interviews with the Medicare beneficiaries determined that they did not receive the items or services for which Jet Medical had billed Medicare.
If convicted at trial, Fernandez faces a maximum sentence of 150 years in prison, a fine of $2,500,000 and three years of supervised release.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
During Fiscal Year 2011, health care fraud enforcement actions by the Justice Department and HHS recovered nearly $4.1 billion in cases involving fraud on federal health care programs. The OIG Most Wanted Fugitives Web site continues to garner national and international attention and greatly assists in helping to capture fugitives charged with defrauding Federal health care programs and stealing millions of taxpayer dollars. The Most Wanted Fugitives Web site features an online tip form and a hotline number for individuals to report fugitive-related information to OIG in English or Spanish, 24 hours a day, 365 days a year. The Most Wanted Fugitives list can be accessed at https://oig.hhs.gov/fraud/fugitives.
Man Arrested in Paducah Sentenced to 16 Months in Prison for Impersonating A United States Army Chief Warrant Officer and FraudRead the Press Release
– Used the disguise to defraud another of sums of money
PADUCAH, Ky. - A convicted felon, living in McCracken County, Kentucky, was sentenced yesterday, in United States District Court, by Senior Judge Thomas B. Russell, to 16 months in prison followed by a one year term of supervised release, for impersonating an officer of the US Army, and defrauding a victim of sums of money, announced David J. Hale, United States Attorney for the Western District of Kentucky. Senior Judge Russell also ordered defendant Kyle Christopher Barwan to pay restitution in the amount of $1,640.
Barwan, age 23, was charged in a two-count indictment by a grand jury meeting in Paducah, Kentucky on September 11, 2012. According to the indictment, on or about April 14, 2012, in Christian County, Kentucky, the defendant, falsely assumed and pretended to be an officer and employee of the United States, that is, a United States Army Chief Warrant Officer, and in such pretended character, falsely stated that he was a United States Army Chief Warrant Officer and conducted a military promotion ceremony for military personnel. Further, between April 1, 2012 and May 7, 2012, in McCracken County, Kentucky, the defendant, falsely pretended to be an officer and employee of the United States, that is, a United States Army Chief Warrant Officer, and in such pretended character, with intent to defraud, did falsely demand and obtain a thing of value from another person, in that he obtained sums of money over $1,000. According to court records, Barwan asked at least one individual for money, while impersonating an officer of the US Army. Barwan pleaded guilty to both charges on December 12, 2012 before Senior Judge Russell.
Barwan was previously arrested in Vincennes, Indiana, in November 2010, and charged with impersonating an officer and possession of cocaine. He was convicted of both offenses and sentenced In June, 2011 to one year imprisonment for impersonating an officer and 18 months, to run concurrent, for the felony possession of cocaine.
This case was prosecuted by Assistant United States Attorney David Sparks and Special Assistant United States Attorney Captain John Vrettand and was investigated by Ft. Campbell Military Police, the McCracken County Sheriff’s Department, and the Federal Bureau of Investigation (FBI).
Convicted Sex Offender Living in Jefferson County Sentenced to 33 Months in Prison for Failing to Register with the Kentucky Sex Offender RegistryRead the Press Release
LOUISVILLE, Ky. – A convicted sex offender living in Jefferson County, Kentucky, was sentenced in United States District Court today, by Senior Judge Thomas B. Russell, to 33 months in prison followed by five years of supervised release for failing to register with the Kentucky Sex Offender Registry after moving to Kentucky, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Ronald Edward Dunn, age 42, was charged in a federal grand jury indictment on February 22, 2012, and pleaded guilty to the charge on December 14, 2012.
According to the plea agreement, Dunn was previously convicted in Indiana for child molesting in Case Number 39C01-9601-CR-6. The Indiana court sentenced him to 10 years in prison with four years suspended. Under the terms of the judgment, Dunn was required to register as a sex offender. On August 26, 2009, he was convicted of failure to register as a sex offender in Indiana. On January 26, 2010, he was convicted of failure to register as a sex offender in California. Dunn applied for and obtained a Kentucky Driver's License on January 3, 2012. He listed a residence in Louisville, Kentucky. However, he did not register with the Kentucky Sex Offender Registry at that time.
The United States Marshals Service Task Force began working two outstanding warrants on Dunn (one out of Indiana and one from California) in early 2012. Law enforcement officials arrested Dunn on February 10, 2012, at his place of employment at West Broadway in Louisville. Consequently, between January 3, 2012, and February 10, 2012, in the Western District of Kentucky, Jefferson County, Kentucky, Dunn, an individual required to register under the Sex Offender Registration and Notification Act, knowingly failed to register as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The United States Marshals Service conducted the investigation as part of their mission under the Adam Walsh Act.
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."
U.S. Attorney Announces Additional $63,437 Restitution for Crusade for ChildrenRead the Press Release
– U.S. District Court Judge Orders Held Payment Released From Sale Of Defendant Paul Barth’s Former Home
LOUISVILLE, Ky. – The United States District Court Clerk in Louisville, Kentucky will forward an additional restitution payment, in the amount of $63,437, to the WHAS Crusade for Children, announced United States Attorney David J. Hale. The funds are proceeds from the sale of the former home of convicted former McMahon Fire Protection District Chief Paul Barth. The funds are being released at the request of the United States, pursuant to a Court Order entered today by U.S. District Judge John G. Heyburn II.
“This is another significant step in the effort to recover the funds stolen by Paul Barth from the Crusade for Children. This money can now go where it was intended: to help the many children and their families in our community who rely on the important services provided by the Crusade’s charitable donations. A total of $196,608.57 has now been applied toward the $198,277 restitution obligations, and we expect the remaining amount to be paid in full,” stated U.S. Attorney Hale.
Barth pleaded guilty to one count of mail fraud, two counts of wire fraud, and 12 counts of money laundering, on June 21, 2012. He was sentenced on November 19, 2012 in federal court by U.S. District Judge Heyburn to a sentence of 41 months imprisonment, which Barth began serving on December 20, 2012. At sentencing, the Court also ordered Barth to make restitution to his victims, the WHAS Crusade for Children and the McMahon Fire Protection District (MFPD). The restitution order in favor of the Crusade was $190,000, and the order in favor of MFPD was $8,277, for a total of $198,277.
The private sale of Barth’s real estate in Jeffersontown, Kentucky was completed on January 15, 2013. At that time, the United States and American Alternative Insurance Corporation, insurer of McMahon Fire District, each maintained liens on the real estate. In addition to the initial $130,410.56 recovered from the sale of the real estate – which was returned as restitution to the Crusade and the McMahan Fire Department – an additional $66,198.01 from the proceeds of the sale was paid into a registry account held by the U. S. District Court Clerk’s Office in Louisville, Kentucky. The U. S. Attorney’s Office asked the Court to also apply these additional funds to the restitution owed by Barth. American Alternative Insurance Corporation asserted an interest in the proceeds. Today’s Court Order resolved the dispute in favor of the United States’ position.
This case was prosecuted by Assistant U. S. Attorneys David Weiser and Bryan Calhoun. The restitution collection efforts are led by Assistant U. S. Attorney Joe Ansari. The case was investigated by the United States Secret Service - Kentucky Electronic Crimes Task Force, which includes the University of Louisville Police Department, the United States Postal Inspection Service, and the Criminal Investigation Division of the Internal Revenue Service.
Jefferson County, Kentucky, Alleged Serial Bank Robber Faces Federal ChargesRead the Press Release
LOUISVILLE, Ky. – A Louisville man was charged by a federal grand jury this week, with robbing four banks, in Jefferson County, Kentucky, during a two week period, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the federal grand jury indictment, Robert Scott Manley, age 47, used force, violence, and intimidation when he robbed four banks in Jefferson County between December 20, 2012 and December 31, 2012. Count 1, of the indictment, charges Manley with taking $2,170.00 from the PNC Bank, located at 3910 Taylorsville Road, on December 20, 2012. Count 2, of the indictment, charges Manley with taking approximately $3,580.00 from the Chase Bank, located at 8120 New LaGrange Road, on December 24, 2012. Count 3, of the indictment, charges Manley with taking approximately $1,510.00 from the BB&T Bank, located at 10403 Dixie Highway on December 27, 2012, and Count 4 charges Manley with taking approximately $4,750.00 from the River City Bank, located at 2501 Bardstown Road. At the time of the robberies, all deposits were insured by the Federal Deposit Insurance Corporation (FDIC).
If convicted at trial, Manley faces a sentence of no more than 80 years in federal prison, a fine of $1,000,000., and a period of no more than five years of supervised release. Manley was arrested by U.S. Marshals on January 2, 2013.
This case is being prosecuted by Special Assistant United States Attorney Caryn M. Nieman and was investigated by Louisville Metro Police and the Federal Bureau of Investigation (FBI).
Illegal Alien Living in Taylor County Sentenced to 84 Months in Prison for His Role in A Sex Trafficking Ring Involving Juveniles in A Four County AreaRead the Press Release
BOWLING GREEN, Ky. – An Illegal Alien living in Taylor County, Kentucky was sentenced to serve 84 months in prison followed by five years of supervised release, by Chief Judge Joseph H. McKinley, Jr., in United States District Court this week, for conspiracy to engage in sex trafficking of two minors in Taylor, Green, Adair and Barren Counties, Kentucky announced David J. Hale, United States Attorney for the Western District of Kentucky.
Adulfo De Aquino-Cancino, age 28, pleaded guilty on December 18, 2012, to conspiracy to benefit financially from a prostitution venture that recruited, enticed, harbored, transported, provided, and obtained by any means two minors who had not attained the age of 18 years. De Aquino-Cancino pleaded guilty to a term of imprisonment of 84 months and a five year to life term of supervised release before Chief District Judge Joseph H. McKinley, Jr. As part of the plea agreement, the United States agreed to dismiss counts 2, 3, and 4 of the grand jury indictment.
According to the plea agreement, between August 2011 to January 2012, De Aquino-Cancino engaged in a conspiracy where the he knowingly benefitted, financially or by receiving anything of value, from participating in a venture that recruited, enticed, harbored, transported, provided, and obtained by any means a person, that the defendant knew, or recklessly disregarded the fact, that the person had not attained the age of 18 years and would be caused to engage in a commercial sex act. The conduct of the venture was in or affecting interstate commerce because De Aquino-Cancino communicated with the minors via cellular telephone and text messages that traveled in interstate commerce. De Aquino-Cancino was indicted by a grand jury meeting in Bowling Green, Kentucky on May 16, 2012.
According to an Affidavit filed by a Special Agent with the United States Department of Homeland Security Investigations, in support of a Criminal Complaint, between August 2011, and January 2012, De Aquino-Cancino recruited females, arranged for commercial sexual encounters, transported, and benefited financially from commercial sex transactions involving two minor females, neither having reached the age of 18, and several adult females in Green, Taylor, Adair, and Barren Counties in the Western District of Kentucky.
On January 19, 2012, De Aquino-Cancino was interviewed by a Kentucky State Police Detective. The law enforcement officers advised De Aquino-Cancino of his constitutional rights as set out in Miranda. He stated that he knew several girls in the Campbellsville, Kentucky area that were prostitutes and that De Aquino-Cancino, the defendant, would go to Campbellsville, pick the prostitutes up, and take them to different locations where they performed commercial sex acts with the defendant’s friends. The prostitutes would in turn pay De Aquino-Cancino for driving them to the locations. De Aquino-Cancino identified the two juveniles and affirmed that he knew what he was doing with these young girls was illegal. Following this interview, De Aquino-Cancino was arrested by Kentucky State Police.
This case was prosecuted by Assistant United States Attorney Joshua D. Judd and was investigated by the Kentucky State Police and the United States Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.
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."
Owner of Bluegrass Women’s Healthcare in Elizabethtown Charged with Health Care Fraud, Mail Fraud, Misbranding and SmugglingRead the Press Release
LOUISVILLE, Ky. – The owner of Bluegrass Women’s Healthcare, located in Elizabethtown, Kentucky was charged, in a 13 count federal grand jury indictment this week, with health care fraud, mail fraud, misbranding and smuggling announced David J. Hale, United States Attorney for the Western District of Kentucky.
Canh Jeff Vo, age 45, of Elizabethtown, Kentucky was the owner, supervising physician, and president at Bluegrass Women’s Healthcare between March 2008 and September 2009 when the alleged violations occurred. Vo offered gynecological and obstetric services to women at Bluegrass Women’s Healthcare, including providing forms of birth control. According to the federal indictment, between March 2008 and September 2009, Vo, with the intent to defraud or mislead, purchased and inserted into patients, foreign, non-FDA approved Mirenas (levonorgesteral-releasing intrauterine device). These Mirena 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.
Further defendant Vo is charged with health care fraud for submitting false claims for reimbursement from the Medicaid Program. Specifically, Vo is alleged to have billed the Kentucky Medicaid Program and other insurers as if he was administering the FDA-approved version of Mirena, at a greater cost, when he was actually administering a non-FDA approved version of Mirena.
Additionally, Vo is charged with ten counts of mail fraud for utilizing the United States Mail, by receiving payment from the Kentucky Medicaid Program and private insurance companies for Mirena IUDs which were not approved for sale in the United States.
It is also alleged, in the federal indictment, that between March 2008 and September 2009, Vo received, brought, and imported into the United States, Mirena IUDs, knowing that these were misbranded and unlawfully introduced into interstate commerce from various countries, including from Canada.
If convicted at trial, Vo faces a maximum of 233 years in prison, a maximum fine of $3,010,000 and up to 3 years of supervised release.
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.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Nelson County, Kentucky Drug Store Owner Guilty of 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 $250,188.72
LOUISVILLE, Ky. – The owner of Crume Drug Store, located in Nelson County, Kentucky, pleaded guilty in federal court today, before Magistrate Judge James D. Moyer, to a two count federal information, charging Timothy Sizemore with health care fraud and wire fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
“Sizemore’s submission of fictitious claims for prescription drugs was simple, direct, outright theft from Medicare and private health insurers,” stated U.S. Attorney Hale. “This sort of fraud hurts every person in this country by contributing to the escalating costs of health care. My office is committed to prosecuting those who commit health care fraud and recovering restitution whenever possible.”
According to the plea agreement, Sizemore, age 37, of Bardstown, Kentucky, purchased Crume Drug Store in March 2010, then, between April 2010 and February 2012, knowingly devised and executed a scheme, to defraud Anthem and other private health insurance providers and Medicare Part D. Specifically, Sizemore 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. This caused a loss of $154,112.33 to Anthem and private health care insurers. Further, during the same time period, Sizemore admits 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, causing the loss of $96,076.39 to Medicare Part D.
At sentencing, Sizemore could face no more than 30 years in prison, a fine of $500,000 and three years of supervised release. The plea agreement requires Sizemore to pay full restitution on or before May 3, 2013. Sentencing is scheduled before Chief District Judge Joseph H. McKinley, Jr. on July 1, 2013, at 11am in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI) and U.S. Department of Health and Human Services Office of Inspector General.
Logan County, Kentucky Businessman Charged with Failing to Pay Income Taxes for 15 Year PeriodRead the Press Release
– Diverted income to “shell” companies to hide assets and employees from the Internal Revenue Service
BOWLING GREEN, Ky – The Owner and operator of a construction business that performed work on commercial poultry houses was indicted by a federal grand jury meeting in Bowling Green, Kentucky, on February 13, 2013, and was unsealed today, charging him with one count of personal income tax evasion, ten counts of employment tax evasion, and four counts of failure to report income tax announced David J. Hale, Untied States Attorney for the Western District of Kentucky.
According to the indictment, Norman Hostetler, age 41, of Russellville, Kentucky beginning on or about January 1, 1996, and continuing up and until at least June 6, 2011, in Logan County, Kentucky, and elsewhere, did willfully attempt to evade and defeat the payment of a large part of the income taxes owed by him to the United States of America. Hostetler concealed his income by, among other things, failing to file individual income tax returns with the Internal Revenue Service (IRS) for the calendar years 1996 through 2011.
Between 1998 through 2009, it is alleged by the indictment that Hostetler created and operated Stanley and Sons (S&S) Trust, in Orange County, California, to create and reinforce the false impression that it was a valid trust to be used for estate planning purposes. Hostetler also created and used a bank account for S&S as a “formal trust” designed to conceal and mislead the IRS as to the true nature of the account. Further, between 1998 and through 2009, Hostetler disguised and attempted to disguise a substantial amount of income, earnings, and assets from the IRS that he owned and personally controlled by diverting assets and income to entities, including (S&S) and Green River Enterprises.
Between March 2009 and June 2011, Hostetler used multiple shell companies to disguise his ownership of vehicles from the IRS. Eco-Trans, LLC and Smokey Mountain Management Business were allegedly set up by Hostetler to obscure the chain of ownership of vehicles purchased by the defendant between March 2009 and June 2011.
Hostetler is further charged with concealing his business, employees, and employee payroll from the IRS by not paying employment taxes to the IRS and by failing to file employment tax returns (Form 941) on behalf of his employees from January 2007 through July 31, 2009. Form 941 is used to report an employer's withholding of employees’ federal taxes from their employees’ compensation, including Social Security tax, income tax, and Medicare tax.
If convicted at trial, Hostetler faces 59 years in prison, a fine of ¬$3,150,000, and 3 years’ supervised release.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by IRS Criminal Investigation Division. If you have any information as to the location of Norman Hostetler please contact the IRS Criminal Investigative Division at 270-901-3048.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Russell Springs Felon Sentenced to 327 Months in Prison for Sexual Abuse of A MinorRead the Press Release
BOWLING GREEN, Ky. – A Russell Springs, Kentucky man formerly convicted of acquiring child pornography was sentenced in United States District Court this week by Senior Judge Thomas B. Russell to 327 months in prison followed by a lifetime of supervised release, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Morris E. Hall, Jr., age 64, was charged in a single count indictment by a federal grand jury on July 17, 2012 and pleaded guilty to the charge on December 6, 2012. Hall was indicted while completing a 78 month sentence for receipt of child pornography. According to court records, between October 5, 2005 and May 18, 2006, Hall was receiving and viewing images of child pornography, via the internet, on a United States Postal Service computer while working in the post office in Russell Springs. The abuse of the minor occurred on multiple occasions between May and August 2005 at the United States Post Office in Russell Springs.
“One of the highest priorities of my office is to protect children from sexual predators and prosecute those who prey on our most vulnerable citizens,” stated United States Attorney Hale. “This is a just sentence and will send a message to those who contemplate victimizing our children: you will go to prison.”
This case was prosecuted by Assistant United States Attorney Jo E. Lawless and was investigated by Kentucky State Police.
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."
Barren County Felon and Nine Co-Defendants Sentenced for Operating Sophisticated Marijuana Grow OperationRead the Press Release
– Organizer sentenced to 235 months in federal prison
– Among the largest marijuana indoor grow operations discovered in Western District of Kentucky by Kentucky State Police
– Produced up to ten pounds of marijuana every two weeksBOWLING GREEN, Ky. – Ten defendants charged in one of the state’s largest indoor marijuana grow operations were sentenced this week, in United States District Court, by Chief Judge Thomas B. Russell, to multiple years in prison for their roles in a conspiracy to manufacture and distribute marijuana, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Dallas Norris, age 70, of Barren County, Kentucky, considered the ring-leader of the operation, was sentenced to 235 months in federal prison followed by five years of supervised release for conspiracy to manufacture and distribute marijuana, money laundering and possession of firearms by a convicted felon. Nine of the ten co-defendants were sentenced, as well, for their role in the operation of this sophisticated indoor marijuana grow operation, considered by Kentucky State Police (KSP) to be one of the largest of its kind discovered in the Western District of Kentucky. An initial tip to KSP led troopers to Norris’s Glasgow, Kentucky home, where they discovered 1,267 marijuana plants on November 12, 2011.
“The successful prosecution of this multi-defendant drug production and distribution organization was made possible by a collaborative law enforcement approach,” stated David J. Hale, United States Attorney. “We are grateful for the good work of the State Police, the ATF and the Warren County Drug Task Force. As drug organizations become more sophisticated and often more brazen, we will rely on effective cooperation between federal and state authorities to protect the public and prosecute the offenders. Our communities are safer as a result of these efforts.”
“Kentucky State Police is committed to combating the marijuana drug trade,” says Rodney Brewer, KSP Commissioner. “These enterprises have no limits and further fuel other illicit criminal organizations and their violence.”
The investigation by KSP, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Warren County Drug Task Force revealed that the grow became operational in 2008 and had been producing seven to ten pounds of marijuana approximately every two weeks. Norris was selling the marijuana for $2,500 to $3,000 per pound and that he took elaborate measures to avoid detection of his operation including: illegally tapping the local power company main line to power the grow; and pumping and purifying cave water located on the property to water the extensive grow operation.
The ten co-defendants, charged in a May 16, 2012 federal superseding indictment, all pleaded guilty for their roles in the conspiracy. Josephine Polan of Flagler Beach, Florida to 18 months in prison followed by two years of supervised release; from Wellston, Ohio - Roger L. Goheen to 92 months followed by five years of supervised release, Shelli Goheen to 18 months followed by three years of supervised release, and Dennis Cain Goheen to 24 months in prison followed by three years of supervised release; Darryl G. Newsome, Kimberly Newsome, and Darryl Allen Newsome of Springfield, Ohio to six months in prison followed by six months of home incarceration followed by two years of supervised release; Vanessa Golden of Covington, Kentucky to three years’ probation; and Victoria Kampschaefer of Louisville to three years’ probation. Garry Kampschaefer, of Louisville, awaits sentencing.
In addition to the prison sentence, Norris will forfeit to the United States, a 2006 Ford F-250 truck, property located in Barren County, Kentucky and Jackson County, Ohio, $22,621 US currency, and miscellaneous farm equipment and collectibles. Norris admitted to structuring three transactions with financial institutions between February 28, 2008 and March 12, 2008, by purchasing three cashier’s checks each in the amount of $9,000. Norris used the cashier’s checks and an additional personal payment of $6,114 to purchase the 2006 Ford truck. At the time of his arrest, Norris, a convicted felon, based upon his previous conviction for manufacturing marijuana, was in possession of two firearms.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by KSP, ATF and the Warren County Drug Task Force.
Iranian Citizen and U.S. Citizen Residing in Louisville, Kentucky, Holding an Iranian Passport, Sentenced in Plot to Export Aircraft and Aircraft Parts to IranRead the Press Release
– Conspired to violate the U.S. embargo against Iran
LOUISVILLE, Ky. - David J. Hale, U.S. Attorney for the Western District of Kentucky; Lisa Monaco, Assistant Attorney General for National Security; and Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, Louisville Division, announced the sentencings today, of two men to charges related to unlawful export of aircraft and aircraft parts from the United States to Iran. One of the defendants, Hamid Asefi, age 67, is a citizen and resident of the Republic of Iran. The other, Behzad Karimian, also known as “Tony” Karimian, age 52, is a United States citizen living in Louisville, Kentucky who holds a valid Iranian passport and is employed as a Mesaba Airlines Pilot. Asefi was sentenced to 23 months in prison, and Karimian was sentenced to 46 months in prison by Chief Judge Joseph H. McKinley, Jr. in United States District Court. The defendants pleaded guilty in Louisville, before Magistrate Judge James D. Moyer on December 3, 2012. The two-count Indictment was returned by a Federal Grand Jury meeting in Louisville on August 2, 2012 and unsealed prior to their change of pleas hearings.
Hamid Asefi and Behzad Karimian were both charged with conspiracy to violate and violation of the International Emergency Economic Powers Act for exporting, selling, or causing the export or sale of aircraft and aircraft parts without first having obtained the required license from the U.S. Department of Treasury. Asefi made his initial appearance in U.S. District Court in Louisville, Kentucky on June 1, 2012. Karimian was arrested and made his initial appearance in U.S. District Court in Louisville, Kentucky on June 6, 2012.
Asefi is the principal officer of Aster Corp Ltd., an Iranian company with offices in both Iran and the United Kingdom. The Indictment charges that, beginning as early as August 2007 and continuing through April 2011, Asefi used the United Kingdom office of Aster to serve as a transshipment point to facilitate shipment of goods from the United States to Iran; Asefi used Aster to facilitate the shipment of goods from the United States to Iran through third party countries; Asefi sent requests on behalf of Iranian entities to Karimian for purchases of aircraft and aircraft parts located in the United States or owned by United States persons; and Karimian knowingly and willfully made inquiries, placed orders, and attempted to facilitate the purchase of aircraft and aircraft parts located in the United States and owned by United States persons on behalf of defendant Asefi and persons in Iran.
Asefi and Karimian pleaded guilty to Count One of the Indictment and admitted in court that they acted with knowledge and intent to violate the Iran embargo when on September 27, 2007, Asefi and Karimian sent emails to establish a “profitable business collaboration” for the purpose of procuring aircraft and aircraft components for end-users in Iran. They further admitted that on or about October 1, 2009, Asefi sent an email to Karimian which outlined the terms of delivery and payment on future transactions with Iran Air and stated “…remember that, only US Embargo has brought this chance and benefit to us, to get involved in these deals….”
Further, defendants Asefi and Karimian pleaded guilty to Count Two of the Indictment, and admitted that beginning in September 2009 and continuing through April 2010, they violated the embargo against Iran by exporting and causing the export of services related to the sale of a G.E. Aircraft Engine Model CF6-50C2, as well as attempting the procurement of helicopters manufactured by Bell Helicopter, from the United States to Iran, without first having obtained the required authorizations from the U.S. Department of Treasury. All of the aircraft and aircraft parts involved in this case were intended for civilian use.
“The investigation and prosecution of national security cases is the top priority of the Department of Justice and my Office,” stated David J. Hale, the U.S. Attorney for the Western District of Kentucky. “We view the circumvention of Iranian export control laws as a very serious matter. The FBI should be commended for its excellent work in disrupting this international scheme and bringing these men to justice.”
The International Emergency Economic Powers Act authorizes the President of the United States to impose economic sanctions on a foreign country when the President declares a national emergency with respect to a national security threat. On March 15, 1995, the President issued an Executive Order declaring the actions and policies of the Government of Iran constituted a national emergency. On May 6, 1995, the President issued an Executive Order imposing the Iran Trade Embargo. On June 23, 2011, the U.S. Department of the Treasury imposed sanctions on Iran Air after designating it as a proliferator of weapons of mass destruction for providing material support and services to Iran’s Islamic Revolutionary Guard Corps.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun of the U.S. Attorney’s Office for the Western District of Kentucky, and Trial Attorney Casey Arrowood of the Counterespionage Section of the Justice Department’s National Security Division. The case was investigated by the Federal Bureau of Investigation, Louisville Division.
Taylor County, Kentucky, Felon Guilty of Growing Marijuana for Distribution and Illegal Possession of FirearmsRead the Press Release
BOWLING GREEN, Ky. – A Taylor County, Kentucky felon, pleaded guilty in United States District Court this week, before Senior Judge Thomas B. Russell, to a two count federal grand jury indictment charging him with manufacture and possession with intent to distribute marijuana and felon in possession of firearms, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jeff Cheatham, Jr., age 47, was charged by a federal grand jury on August 15, 2012 and pleaded guilty to the charges on February 28, 2013. Cheatham is a convicted felon having previously been sentenced in Taylor Circuit Court on February 18, 2002 to trafficking in Marijuana and first degree possession of a controlled substance.
According to the plea agreement, on July 9, 2012, in Taylor County, agents with the United States Drug Enforcement Administration (DEA) located an outdoor marijuana grow on and around the property of Cheatham. Agents discovered 789 marijuana plants, located in multiple locations, in various stages of growth. DEA also located several firearms (a Savage, Model110, .30-06 caliber rifle, a Marlin Firearms Co., Model6669, .22 caliber rifle, and a Davis Arms, Model P-380, .380 caliber pistol) inside the defendant's residence.
At sentencing, Cheatham faces a combined maximum sentence of 50 years in prison and a combined minimum sentence of not less than five years in prison, a fine of up to $8,250,000 and a period of supervised release of no less than five years and up to and including life. Sentencing is schedule in Bowling Green, before Senior Judge Russell at 12:30pm on July 2, 2013.
This case is being prosecuted by Assistant United States Attorney Mac Shannon and is being investigated by the DEA.
Nelson County, Kentucky Drug Store Owner Charged with Health Care Fraud and Wire FraudRead the Press Release
– Crume Drug Store owner alleged to have billed insurance companies and government health care agencies for fraudulent prescriptions
LOUISVILLE, Ky. – The owner of Crume Drug Store, located in Nelson County, Kentucky, was charged in United States District Court this week, in a two count federal information, with wire fraud and billing private insurance companies and Medicare Part D for fraudulent prescriptions, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the federal charges, Timothy Sizemore, age 36 , of Bardstown, Kentucky, knowingly devised and executed a scheme, between April 2010 and February 2012, whereby he used patients’ and doctors’ names to create fraudulent prescriptions, and billed Anthem and other private insurance companies for those fraudulent prescriptions, even though, those prescriptions were never actually filled. Further, it is alleged that during the same time period, Sizemore used patients’ and doctors’ names to create fraudulent prescriptions and billed Medicare Part D for those fraudulent prescriptions which were never filled.
If convicted at trial, Sizemore could be face no more than 30 years in prison, a fine of $500,000 and three years of supervised release. An initial appearance on the charges has not been scheduled.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI) and U.S. Department of Health and Human Services Office of Inspector 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.McCracken County, Kentucky Man Guilty of Distribution and Possession of Child PornographyRead the Press Release
PADUCAH, Ky. – A McCracken County, Kentucky man pleaded guilty to a four count federal superseding indictment yesterday, in United States District Court, before Senior Judge Thomas B. Russell, charging him with possession and distribution of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Matthew Francis Ferreira, 27 was indicted by a federal grand jury, meeting in Paducah, Kentucky, on November 9, 2012, and was charged with three counts of distribution of child pornography via a computer, one count possession of child pornography via a computer.
In court, Ferreira pleaded guilty to utilizing peer-to-peer software and Skype software to knowingly distribute images of child pornography. According to the plea agreement, between January and March of 2012, law enforcement from the Kentucky Attorney General’s Cybercrime Unit, downloaded through the internet, several video files containing child pornography images, from the peer-to-peer software on Ferreira’s computer. Ferreira agreed to forfeiture of personal items used in the commission of this crime.
At sentencing, Ferreira faces a combined maximum term of imprisonment of 70 years, a combined maximum fine of $1,000,000, and supervised release of at least 5 years and up to any number of years, including life, which the Court may specify.
This case is being prosecuted by Assistant United States Attorney David Sparks and is being 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 Ft. Campbell Soldier Sentenced to 20 Years in Prison for Violating Child Pornography Laws While Residing on Military BasesRead the Press Release
LOUISVILLE, Ky. – A former Fort Campbell, Kentucky, soldier was sentenced to 20 years in federal prison, followed by a lifetime of supervised release by Senior Judge Thomas B. Russell today, for knowingly possessing, mailing, transporting and shipping child pornography while residing within the Fort Campbell Military Reservation and during active duty in Iraq, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Timothy Lee Hansen, age 25, pleaded guilty to a four-count federal Indictment brought by a federal grand jury on August 17, 2011. Prior to his indictment, Hansen had been charged in a Criminal Complaint on July 19, 2011.
According to court records, between February 2010, and February 15, 2011, Hansen, also known as “Hydes420,” used a “peer-to-peer” internet file sharing software to download, store and trade digital images of child pornography. A subpoena issued by the Federal Bureau of Investigation (FBI), tracked the IP address of the computer used to distribute child pornography to a computer belonging to Hansen and located in a soldier’s barracks at Fort Campbell. The information was turned over to the United States Army, Criminal Investigation Division (CID) at Fort Campbell on February 14, 2011.
Hansen was identified as an active-duty soldier assigned to the 5th Special Forces Group. According to the Complaint, Hansen told investigators that he possessed approximately 100 megabytes of child pornography on his personal computers at Fort Campbell.
This case was prosecuted by Assistant United States Attorney Jo E. Lawless and was investigated by the FBI and United States Army CID.
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."
Convicted Sex Offender Sentenced to 30 Months in Federal Prison for Failure to Register with the Kentucky Sex Offender RegistryRead the Press Release
OWENSBORO, Ky. – A convicted sex offender living in Owensboro, Kentucky was sentenced to 30 months in prison, followed by a five-year term of supervised release, by Chief District Judge Joseph H. McKinley, Jr. this week, for failure to register with the Kentucky Sex Offender Registry announced David J. Hale, United States Attorney for the Western District of Kentucky. Russell Jones, age 49, of Owensboro, Kentucky pleaded guilty to a one count indictment on November 27, 2012. According to court records, Jones was convicted on charges of attempted rape in the Court of Common Pleas in Franklin County, which is in Columbus, Ohio. That conviction rendered Jones a Sexually-Oriented Offender and required him to register as a sex offender for ten years. Jones initially registered in Columbus, Ohio with the Franklin County Sheriff’s Department on March 19, 2004 and maintained his sex offender registration in Franklin County until August 2011, then registered with the Miami, Dade County Police Department after moving to Florida.
On May 26, 2012, the Owensboro Police Department arrested Jones for Public Intoxication. At the time of his arrest, employment records revealed that Jones had been living and working in Owensboro beginning in February 2012. Despite living and working in Kentucky for several months, Jones did not register with the Kentucky Sex Offender Registry - as required to do so under the terms of his Ohio conviction and the laws of Kentucky. This case was prosecuted by Assistant United States Attorney Jo E. Lawless and was investigated by the United States Marshals Service.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Kentucky Inmate Charged with Threatening the Life of the President of the United StatesRead the Press Release
– Charges also include threatening the life of the First Lady
LOUISVILLE, Ky – A Kentucky inmate was charged by a federal grand jury meeting in Louisville, Kentucky, today with threatening to take the life of and inflict bodily harm upon the President of the United States and threatening to kill and inflict bodily harm upon the immediate family of the President of the United States, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to count one of the two count indictment, between May 23, 2012, and May 25, 2012, Anthony D. Holliman, age 35, of Oldham County, Kentucky, knowingly and willfully wrote and mailed a letter addressed to the President of the United States threatening to assault the President’s wife and children, and claiming that he would “blowe your brains out with a pistel,” and further, Holliman is alleged to have used racial epithets and written, “you better check me out because I don’t lie & I always do what I say Im going to do! Your dead …!!!”
The second count of the federal indictment alleges that between May 23, 2012 and May 25, 2012 Holliman wrote and mailed a letter addressed to First Lady Michelle Obama, threatening to sexually assault and take the lives of the First Lady and her daughters.
If convicted, Holliman faces no more than five years in prison for each charge, a fine of $500,000 and a three year period of supervised release. Holliman is currently serving a 35 year sentence in the Kentucky State Penitentiary.
Holliman is scheduled to appear before Magistrate Judge James D. Moyer, in Louisville, Kentucky, on March 26, 2012 at 9:30am.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the United States Secret Service.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Second Former Humana Inc. Employee Admits to Taking Kick-Backs Totaling $2 Million Dollars in an Insurance Sales Bribery SchemeRead the Press Release
LOUISVILLE, Ky. – Former Humana Inc. regional sales director, Glen Allan Fine, pleaded guilty in United States District Court in Louisville, Kentucky today, to charges of racketeering and bribery, in connection with his former position, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Fine, age 56, of Louisville, pleaded guilty to a single count federal information charging him with taking kickbacks totaling at least two million dollars while employed as part of Humana’s sales and marketing division known as the MarketPoint Organization. Co-defendant, James Wenger, age 50, of Louisville pleaded guilty to the charge on January 23, 2013.
According to the plea agreement, Fine admits that in 2005, he, along with Wenger and others, met at a hotel in Florida to discuss sending insurance agents to Shep Cutler, one of the larger Managing General Agencies (MGA). Fine and co-defendant James Winger, another Humana employee, agreed to send insurance agents, who wanted to sell Humana Medicare Advantage and Prescription Drug Plan products, to Cutler and McNerney in exchange for Cutler sending payments to Fine and Wenger. The four agreed to split the override fees, and each would receive payments of 25%. Fine and Wenger agreed to set up fictitious businesses accounts in their wives' names. Fine admitted he sent agents to Cutler and McNerney's MGAs, and acknowledged his wife did not provide any service in exchange for the money received from Cutler. Fine was not authorized by Humana to enter into a kickback relationship with Cutler and McNerney. Fine received approximately $2,000,000 for his participation in the scheme. As a result of this kickback arrangement, Humana suffered a loss to its business, and had to pay legal and other investigative costs.
At sentencing, Fine faces a combined maximum term of five years in prison, a combined maximum fine of $250,000, and a three year period of supervised release. Fine may also be ordered to forfeit any and all property derived from the gross proceeds of the offenses for which he has pleaded guilty.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the Department of Health and Human Services, Office of Inspector General, and the United States Postal Inspection Service, with assistance from the Humana Inc.
Glasgow Return Preparer Sentenced to 18 Months in Federal Prison for Preparing False Income Tax ReturnsRead the Press Release
– Knowingly claimed false deductions and expenses resulting in a tax loss of over $450,000
BOWLING GREEN, Ky. – A Glasgow, Kentucky federal tax return preparer was sentenced in United States District Court today by Chief U.S. District Judge Joseph H. McKinley, Jr., to 18 months in prison, followed by one year of supervised release, for aiding and assisting in the preparation of false income tax returns, announced David J. Hale, United States Attorney for the Western District of Kentucky.
On April 11, 2012, a Bowling Green, Kentucky grand jury returned a thirty-five count Indictment against Greg P. Denham, age 48, alleging he knowingly assisted in the preparation of materially false federal tax returns. Denham formerly owned and operated Accounting and Tax Professionals in Glasgow, Kentucky.
On November 19, 2012, Denham pleaded guilty to all 35 counts of the Indictment, admitting that between February 2006 and May 2009, he knowingly prepared individual income tax returns that misrepresented expenses and under-reported taxes owed by taxpayers. The indicted returns were prepared for tax years 2005 through 2008. The returns in question claimed business expenses that Denham knew the taxpayers did not actually incur, or that were not actual business expenses. The total tax loss resulting from fraudulent tax returns Denham prepared, including tax returns not listed in the Indictment, was over $450,000.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the IRS, Division of Criminal Investigation.
Former Pharmacist Sentenced to 25 Months in Prison for Using Patient and Doctor Names to Create Fraudulent PrescriptionsRead the Press Release
BOWLING GREEN, Ky – A former pharmacist from Richmond, Kentucky was sentenced in United States District Court today, by Senior Judge Joseph H. McKinley, Jr., to 25 months in prison followed by one month of supervised release for aggravated identity theft, fraudulently acquiring controlled substances, and wire fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky. Elizabeth A. Smith, age 30, had previously pleaded guilty in United States District Court to a federal Information on November 19, 2012.
Between April 2011 and January 2012, Smith, a former Walgreens pharmacist, used patient names and doctor names and DEA numbers to create fraudulent prescriptions for controlled substances such as hydrocodone (a Schedule III controlled substance). Smith filled the prescriptions without the patients’ or doctors’ knowledge, and kept the pills for personal use. Smith defrauded Walgreens on each prescription by greatly reducing the amount due for the prescriptions in the Walgreens computer system. Smith then paid the small remaining balance herself.
For example, on December 12, 2011, while working at a Walgreens in Glasgow, Kentucky, Smith used patient K.R.'s name, and doctor G.S.'s name and DEA number, without K.R.'s or G.S.'s knowledge or authority to order a fraudulent prescription for 120 hydrocodone pills. Smith entered the prescription in the Walgreens computer system and reduced the amount due for the prescription from $137.94 to $20. Smith paid the $20 with her own personal credit card.
On January 5, 2012, while working at a Walgreens in Madisonville, Kentucky, Smith used patient T.R.'s name, and doctor S.S.'s name and DEA number, without T.R.'s or S.S.'s knowledge or authority to order a fraudulent prescription for 180 hydrocodone pills. Smith entered the prescription in the Walgreens computer system and reduced the amount due for the prescription from $131.37 to $5. Smith paid the $5 with her own personal credit card.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Kentucky State Police.
Henderson, Kentucky Man Charged in Multiple Bank RobberiesRead the Press Release
BOWLING GREEN, KY – A federal grand jury meeting in Bowling Green, Kentucky has charged a Henderson, Kentucky man with six counts of bank robbery, today announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the federal indictment, James Allen Morris, age 54, by force, violence, and intimidation robbed six banks, whose deposits were then insured by the Federal Deposit Insurance Corporation, located in Henderson County, Kentucky, between July 23, 2010 and January 17, 2013.
Specifically, Morris is charged with bank robbery on about January 17, 2013 at Green River Credit Union, 902 Second Street, Henderson, Kentucky; on or about August 22, 2012, Independence Bank, 2610 Zion road, Henderson, Kentucky; on or about August 22, 2012, Bank of Henderson, 2003 Stapp Drive, Henderson, Kentucky; on or about July 11, 2012, Green River Credit Union, 902 Second Street, Henderson, Kentucky; on or about May 24, 2011, U.S. Bank, 501 Barrett Boulevard, Henderson, Kentucky; and on or about July 23, 2010, Integra Bank, 9720 U.S. HWY 41 N., Poole, Kentucky.
If convicted at trial, Morris faces no more than 20 years in prison for each count for a combined maximum of 120 years, a $250,000 fine for each count for a combined maximum of $1,500,000, and supervised release for a period of three years.
Morris is scheduled for an initial appearance on the charges before Magistrate Judge Brent Brennenstuhl, in United States District Court in Owensboro, Kentucky, on February 28, 2013.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Purported Louisville Real Estate Entrepreneur Sentenced to 37 Months in Prison for Swindling Investors in Multimillion Dollar SchemeRead the Press Release
– Ordered to pay nearly $2.8 million in restitution to victims
– Pleaded guilty to creating fictitious addresses and fraudulent mortgagesLOUISVILLE, Ky. – A purported Louisville real estate entrepreneur was sentenced in United States District Court today, by District Judge Charles R. Simpson III, to 37 months in federal prison, and ordered to pay $2,797,000 in restitution, for a single count of mail fraud connected to real estate schemes that resulted in the loss of more than one million dollars to investors, announced David J. Hale, United States Attorney for the Western District of Kentucky. There is no parole in the federal system.
“The three year prison sentence is a well-deserved punishment for this fraudulent real estate scheme,” stated U.S. Attorney Hale. “My office and the Department of Justice will continue to pursue and prosecute investor fraud.”
On September 7, 2012, Russell N. Daniel, age 63, pleaded guilty to devising a scheme and an artifice to defraud investors in the defendant’s real estate business and to obtain money and property from investors by means of false and fraudulent pretenses, representations and promises. Specifically, between March 1, 2005 and October 31, 2008, Daniel induced persons to invest in his real estate business by promising returns on investments ranging from 10-15%. Further, the defendant represented that monies invested in his real estate business would be used by him to purchase, and on occasion, rehabilitate houses which in return would be sold for a profit.
In court, Daniel admitted that he solicited more than $700,000 to purchase houses purportedly located in Prospect, Shelbyville, Goshen, and Lexington Kentucky as well as Jeffersonville, Indiana, when in fact the addresses were fictitious. Daniel used the money received from investors in these fictitious transactions to fund unrelated matters, including using the investment monies to make payments of promised returns on unrelated investments.
Also, between December 28, 2006 and August 14, 2008, Daniel falsely represented to investors in properties located in Louisville, Pleasureville and Lexington, Kentucky, that they would receive valid and legally enforceable mortgages on the properties which would provide legal security for their investments, but Daniel instead provided investors with false and fictitious mortgages totaling more than $530,000 which contained the forged signature of the notary public.
In a separate incident, between March 23, 2005 and May 27, 2009, Daniel caused $35,000 to be invested with him by falsely representing to investors in two properties located in Louisville, Kentucky, that the investors would receive valid and legally enforceable first mortgages on the properties which would provide legal security for their investments, when in fact, he did not provide investors with valid and legally enforceable first mortgages.
This case was prosecuted by Special Assistant United States Attorney James Lesousky and was investigated by the Federal Bureau of Investigation.
Louisville Return Preparer Sentenced to 27 Months in Prison for Preparing False Income Tax ReturnsRead the Press Release
– Returns claimed over $430,000 in false deductions and expenses
LOUISVILLE, KY – A Louisville tax preparer was sentenced in U.S. District Court by Judge John G. Heyburn, II to 27 months in prison and ordered to pay a $1,500 special penalty assessment, for aiding and assisting in the preparation of false income tax returns that claimed over $430,000 in false deductions and expenses announced David J. Hale, United States Attorney for the Western District of Kentucky.
Stacey Elzy, 38, pleaded guilty to all 15 counts of a federal grand jury indictment on September 10, 2012 and was sentenced on January 25, 2013. Elzy admitted in court that beginning in April 2006 and continuing through April 2008, she prepared individual income and partnership tax returns for other individuals that misrepresented and under-reported taxes owed by these taxpayers. Elzy assured her clients that the false itemized deductions and false business losses and the resulting inflated refunds were legitimate. The clients received large refunds and recommended Elzy to others, thus generating additional business. In total, the false items claimed by Elzy on the returns caused a loss of $207,243.00 to the IRS. The returns were filed with the Internal Revenue Service (IRS).
This case was prosecuted by Assistant United States Attorney Terry M. Cushing and was investigated by the IRS Criminal Investigation Division.
New Albany, Indiana Man Sentenced to 10 Years in Prison for Online Enticement of A Minor Female and Transporting the Female Across State Lines to Engage in Illegal Sexual ActivityRead the Press Release
– Met the 14-year-old Louisville minor on the Internet
– Minor was picked up from her home and later found at a bowling alleyLOUISVILLE, Ky. – A New Albany, Indiana, man who used the Internet to induce a minor female to engage in sexual activity and transported her across state lines for illegal sexual purposes was sentenced today in U. S. District Court by U. S. District Judge John G. Heyburn, II, to 10 years in prison followed by a life term of Supervised Release, announced David J. Hale, United States Attorney for the Western District of Kentucky. The defendant, Robert L. Real, III, pleaded guilty to the charges on November 1, 2012. There is no parole in the federal system.
“The significant sentence handed down today should send a message to anyone with similar criminal intentions. If you seek to victimize a child, you will face a determined and coordinated law enforcement effort dedicated to the protection of our children,” stated U.S. Attorney David J. Hale. “We are grateful for the good work of the Louisville Metro Police Department, the Louisville Division of the FBI and the Kentucky Internet Crimes Against Children Task Force. My office will continue to work closely with our federal, state and local law enforcement partners to bring those who would prey upon and victimize children to justice.”
Real, age 21, admitted that he had communicated with a 14-year-old female on Badoo.com, picked her up from her home in Jefferson County, Kentucky, and transported her across state lines to his residence in Indiana. He further admitted that at his residence in Indiana, he engaged in sexual activity with the minor, including intercourse. The next day, he left the girl at a bowling alley in Jefferson County, Kentucky. The two began their online communications in early May 2012.
The 14-year-old had been reported missing to the Louisville Metro Police Department by her parents on June 8, 2012. The minor’s parents learned that she had been communicating with an adult, “Robert” who lived in Indiana, on a social networking website called BADOO.com. The FBI Cyber Crimes Task Force was notified of the incident and initiated an investigation. More than 2,500 messages between “Robert” and the minor were recovered by law enforcement officials on the family’s computer and minor’s laptop.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department and the Federal Bureau of Investigation as part of Kentucky’s Internet Crimes Against Children Task Force 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."
Houston, Texas Resident Charged in Five State Conspiracy to Defraud Home DepotRead the Press Release
– Switched UPC Labels On Purchases Then Sold Merchandise At A Profit On Ebay
LOUISVILLE, Ky. – A Houston, Texas resident has been charged with mail fraud by a federal grand jury meeting in Louisville, Kentucky this week, for his role in a five state conspiracy to defraud Home Depot announced David J. Hale, United States Attorney for the Western District of Kentucky.
Larry Lyndsey and other unnamed co-conspirators devised a scheme, between January 2006 through December 2012, to defraud Home Depot by allegedly switching UPC labels on similar items to reflect a lower purchase price, then selling the products on Ebay, to purchasers across the United States, and, according to the indictment, received approximately $645,000 from the fraudulently purchased items sold over the internet.
Specifically, according to the one-count federal indictment, Lyndsey and other unnamed co-conspirators would purchase items form Home Depot stores in Kentucky, Tennessee, Texas, Alabama, Georgia, and Louisiana. In particular, on May 9, 2009, Lyndsey is alleged to have sold, on Ebay for $525., a Lincoln Electric Weld Pak 180HD and caused it to be shipped to Shepherdsville, Kentucky, and on October 3, 2010, sold a Petsafe Wireless Dog Containment System, PIF-300, and caused it to be shipped to Paducah, Kentucky. It was further part of the conspiracy that following the sale of the fraudulently purchased items, Lyndsey and other unnamed co-conspirators would divide the profits from the fraudulent purchases and sales.
At sentencing, Lyndsey faces not more than 20 years in prison, a fine of $250,000 and a period of supervised release for three years. A first appearance/arraignment on the charge has not been scheduled by the court.
This case is being prosecuted by Assistant United States Attorney Bryan R. Calhoun and is being investigated by the United States Secret Service.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Taylor County, Kentucky Man Guilty of Production and Possession of Child PornographyRead the Press Release
– Victims were under five years of age
LOUISVILLE, Ky. – A Taylor County, Kentucky man has pleaded guilty in United States District Court, before Chief District Judge Joseph H. McKinley Jr., to a 15 count federal grand jury indictment charging him with violating federal child pornography laws including the production and possession of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Tony Edwin Davis, 50, of Campbellsville, Kentucky pleaded guilty to charges that between December 18, 2009 and November 28, 2010 on 14 occasions, Davis, knowingly employed, used persuaded, induced, enticed and coerced, two minor females under five years of age, to engage in sexually explicit conduct for the purpose of producing a visual depiction. In addition, Davis pleaded guilty to one count of knowingly possessing child pornography on or about May 20, 2012.
According to an Affidavit filed by an agent with the Federal Bureau of Investigation (FBI), 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.
Davis faces a statutory mandatory minimum sentence of 25 years in prison. The maximum potential penalties are 710 years in prison, a fine of $3,750,000 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 McKinley on May 9, 2013, at 10:30 in Bowling Green, Kentucky. Davis is in the custody of the U.S. Marshals Service.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being 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."
Former U.S. Postal Service Highway Contract Route Driver Sentenced to 33 Months for Stealing from U.S. Mail and Possessing Oxycodone with the Intent to DistributeRead the Press Release
LOUISVILLE, Ky. – A former U.S. Postal Service highway contract route driver was sentenced in United States District Court by Chief Judge Joseph H. McKinley, Jr. today to 33 months in federal prison followed by a term of three years supervised release, for theft of mail and possession with intent to distribute Oxycodone announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to information presented at sentencing, Joshua Wayne Salsman, age 32, of Hardin County, while employed as a postal highway contract route driver in the Meade County, Kentucky area, was arrested on July 5, 2012 following an investigation into numerous mailed letters containing gift cards and prescription drugs that had gone missing.
Salsman pleaded guilty to four charges in a six count federal superseding indictment on October 25, 2012. According to the plea agreement, from April through May, 2012, Salsman stole greeting cards and gift cards from an authorized mail route. Salsman further admitted that from January through April, he stole prescription drugs from an authorized mail route originating from the Louisville V.A. Hospital. Salsman also admitted that from January through April 2012, he knowingly and intentionally possessed with intent to distribute Oxycodone in a prescription form that was stolen from the mail.
This case was prosecuted by Special Assistant United States Attorney Micah R. Reyner and was investigated by the U.S. Postal Inspection Service.
Todd County, Kentucky Woman Sentenced for Filing False Income Tax Returns and Identity TheftRead the Press Release
BOWLING GREEN, Ky. – A Todd County, Kentucky woman was sentenced to 41 months in prison followed by a 3 year period of supervised release today, by Senior Judge Thomas B. Russell, for filing a false income tax return with the Internal Revenue Service (IRS), aiding and assisting in the preparation of false income tax returns filed with the IRS, and identity theft, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Louisa A. Edmonds, age 44, of Elkton Kentucky, was charged in a 24 count federal indictment on November 9, 2011. Edmonds pleaded guilty on August 29, 2012 to all 24 counts including five counts of filing a false income tax return with the IRS, fifteen counts of aiding and assisting in the preparation of false income tax returns filed with the IRS, and four counts of identity theft.
During the plea hearing, Edmonds admitted that she filed false income tax returns for 2005 through 2009, for herself, that contained various false deductions including those for dependents, Schedule A medical and dental expenses, charitable contributions, attorney and accounting fees, and fraudulent credits including the Child Tax Credit, the Additional Child Tax Credit, the First-Time Homebuyer Credit, and the Earned Income Tax Credit. Additionally, Edmonds admitted that she prepared false income tax returns for others that claimed deductions and credits that they were not entitled to receive. These fraudulent items include false dependents, fraudulent filing status, First-Time Homebuyer Credit, Earned Income Tax Credit, and Child Tax Credit. Edmonds agreed to an entry of an order of restitution in the amount of $37,139.00 to the IRS.
During the hearing Edmonds also admitted that she knowingly used the identification of another person without his/her permission to make a false claim against the United States by filing a false income tax return with the IRS.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the IRS division of Criminal Investigation.
Louisville Man, Formerly Employed as A Police Officer and Officer with the Kentucky Department of CorrectionsRead the Press Release
– Sentenced To 42 Months For Threatening A Federal Agent
BOWLING GREEN, Ky. – A Jefferson County, Kentucky resident, formerly employed as a police officer and officer with the Kentucky Department of Corrections was sentenced in U.S. District Court today, by Senior Judge Thomas B. Russell to 42 months in prison and 3 years’ supervised release for mailing threatening communications to a federal law enforcement officer and knowingly depositing a firearm in the mail announced David J. Hale, United States Attorney for the Western District of Kentucky.
Ted Ray Schlenker, age 48, pleaded guilty on October 24, 2012 to charges that he knowingly deposited for mail at the United States Post Office in Bowling Green, Kentucky on Scottsville Road, a written threatening communication and a Jennings, Bryco Arms, 9mm handgun, addressed to the personal residence of a Special Agent for the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
In open court, Schlenker admitted on April 25, 2012, while under investigation by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) for federal firearms violations, the defendant, Ted Ray Schlenker, placed a handgun and handwritten letter addressed to an ATF special agent in a mail receptacle at the United States Post Office on Scottsville Road in Bowling Green, Kentucky, which is located in the Western District of Kentucky. The envelope was addressed to Special Agent D.V.'s personal residence and read as follows:
"Dan if you want this to look like a suicide get me another piece because to use this one would be suicide. The slide is cracked on this one. Where ever you borrowed or stole it, give it back! If this is a set-up we will burn you with it! Just so you remember I have the DVD and I gonna make copies! I suggest you answer your other phone or return the Text! If you want this done right I suggest you get me a gun that works! Answer your other phone dam it.”Postal employees recovered a manila envelope which contained the handwritten note and the firearm, a Bryco, Model Jennings Nine, 9mm pistol, serial number 1350201.
The defendant knowingly and willfully mailed the firearm, an improperly mailed item, and letter which Special Agent D.V. reasonably took as a serious expression of the defendant's intent to inflict bodily harm. Furthermore, the mailing was perceived by Special Agent D.V. to effect some change or achieve some goal through intimidation.
According to an Affidavit filed in support of a federal criminal complaint, defendant Schlenker was being investigated by ATF for firearms violations in connection with Kentucky Gun Runners, Inc., a company formerly owned by Schlenker. Specifically, the agent to whom Schlenker mailed the gun and letter was conducting the investigation. In 2010, ATF conducted a compliance inspection on Kentucky Gun Runners, Inc., and discovered ten firearms not properly recorded and 49 firearms that were recorded, but missing from the store’s inventory. Schlenker is suspected of falsifying ATF forms. The ATF determined that Kentucky Gun Runners, Inc., had purchased the Jennings, Bryco Arms 9mm handgun, but did not officially record the purchase.
ATF conducted a federal search warrant on Schlenker’s Jefferson County, Kentucky residence on April 27, 2012. Agents located a white notepad inside a Ford Escape and a wrinkled piece of paper in a trash bag with the words, “Dan if you whant”. The phraseology and hand writing matched the writing of the letter sent to the ATF Special Agent, while the notepad had indentations of hand writing which matched the letter placed in the mail to be sent to the personal residence of the ATF Special Agent.
A search of the garage revealed several documents, including computer research data containing the personal information, including addresses, phone numbers, and personal vehicle types of law enforcement agents and their spouses. During the search, Schlenker is alleged to have remarked, “You know what they say, know your enemies.”
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Postal Inspection Service and the Bowling Green Police Department.
Former Iraqi Terrorists, Living in Kentucky, Sentenced for Terrorist ActivitiesRead the Press Release
– Defendants Attempted to Ship Weapons and Money from the United States to Iraqi Insurgents
– Defendants Admitted to Extensive Terrorist Activities Against U.S. Soldiers in IraqBOWLING GREEN, Ky. – Two Iraqi citizens living in Bowling Green, Kentucky, who admitted using IEDs against U.S. soldiers in Iraq and who attempted to send weapons and money to Al-Qaeda in Iraq (AQI) for the purpose of killing U.S. soldiers, were sentenced today to serve federal prison terms by Senior Judge Thomas B. Russell in U.S. District Court, announced Lisa Monaco, Assistant Attorney General for National Security; David J. Hale, U.S. Attorney for the Western District of Kentucky; and Perrye K. Turner, Special Agent in Charge of the FBI Louisville Division. Mohanad Shareef Hammadi, 25, a former resident of Iraq, was sentenced to life imprisonment in federal prison; and Waad Ramadan Alwan, age 31, a former resident of Iraq, was sentenced to 40 years in federal prison, followed by a life term of supervised release. Both defendants had pleaded guilty to federal terrorism charges.
"These two former Iraqi insurgents participated in terrorist activities overseas and attempted to continue providing material support to terrorists while they lived here in the United States. With today's sentences, both men are being held accountable," said Lisa Monaco, Assistant Attorney General for National Security. “I thank the dedicated professionals in the law enforcement and intelligence communities who were responsible for this successful outcome.”
“These are experienced terrorists who willingly and enthusiastically participated in what they believed were insurgent support operations designed to harm American soldiers in Iraq,” stated David J. Hale, United States Attorney. “The serious crimes of both men merit lengthy punishment, and only the value of Alwan’s immediate and extensive cooperation with law enforcement justifies our recommendation of a reduced sentence for him. Bringing these men to justice is the result of a comprehensive law enforcement effort. The FBI agents of the Louisville Division, along with the federal and local law enforcement members of the Joint Terrorism Task Forces here in Kentucky, including the Bowling Green Police Department, and our many other partners, are to be commended.”
"Protecting the United States from terrorist attacks remains the FBI's top priority," said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky. "Using our growing suite of investigative and intelligence capabilities, FBI Agents and Analysts assigned to our Bowling Green office were able to neutralize a potential threat. Our local Joint Terrorism Task Force, comprised of FBI Agents and other local, state and federal agencies from across the Commonwealth, remains committed to dismantling extremist networks and cutting off financing and other forms of support provided by terrorist sympathizers, whether they are operating in Kentucky or worldwide."
"Today, the sentencing of Alwan and Hammadi represents the culmination of the extensive, effective and focused efforts of the U.S. Attorney's Office and the Kentucky Division of the FBI for their roles in the investigation and prosecution of these would-be terrorists. I want to thank U.S. Attorney David Hale, the Kentucky Division of the FBI and the members of the FBI Bowling Green local office for their individual and collective efforts in bringing Alwan and Hammadi to justice for their crimes against the people of Kentucky and the United States,” stated Chief Doug Hawkins, Bowling Green Police Department.
Alwan, whose fingerprints were found on an unexploded IED found in Iraq, pleaded guilty earlier in the case on December 16, 2011 to all counts of a 23-count federal indictment. He pleaded guilty to conspiring to kill U.S. nationals abroad; conspiring to use a weapon of mass destruction (explosives) against U.S. nationals abroad; distributing information on the manufacture and use of IEDs; attempting to provide material support to terrorists and to Al Qaeda in Iraq (AQI); and conspiring to transfer, possess and export Stinger missiles. Hammadi pleaded guilty on August 21, 2012 to a 12-count superseding indictment. Charges against him included attempting to provide material support to terrorists and to Al Qaeda in Iraq (AQI); conspiring to transfer, possess and export Stinger missiles; and making a false statement in an immigration application. At today’s sentencing, at the request of the United States, Alwan received a reduced sentence due to his cooperation with federal law enforcement. The United States asked for no reduction of Hammadi’s sentence.
According to information presented by the United States in connection with today’s sentencings, Hammadi and Alwan both admitted, in FBI interviews that followed waiver of their Miranda rights, to participation in the purported material support operations in Kentucky, and both provided the FBI details of their prior involvement in insurgent activities while living in Iraq. Both men believed their activities in Kentucky were supporting AQI. Alwan admitted participating in IED attacks against U.S. soldiers in Iraq, and Hammadi admitted to participating in 10 to 11 IED attacks as well as shooting at a U.S. soldier in an observation tower.
Court documents filed in this case reveal that the Bowling Green office of the FBI’s Louisville Division initiated an investigation of Alwan in which they used a confidential human source (CHS). The CHS met with Alwan and recorded their meetings and conversations beginning in August 2010. The CHS represented to Alwan that he was working with a group to ship money and weapons to Mujahadeen in Iraq. From September 2010 through May 2011, Alwan participated in ten separate operations to send weapons and money that he believed were destined for terrorists in Iraq. Between October 2010 and January 2011, Alwan drew diagrams of multiple types of IEDs and instructed the CHS how to make them. In January 2011, Alwan recruited Hammadi, a fellow Iraqi national living in Bowling Green, to assist in these material support operations. Beginning in January 2011 and continuing until his arrest in late May 2011, Hammadi participated with Alwan in helping load money and weapons that he believed were destined for terrorists in Iraq.
Documents filed by the United States describe in detail the material support activities of the men in Bowling Green. Without Hammadi present, Alwan loaded money and weapons he believed were being sent to Iraq on five occasions from September 2010 through February 2011, handling 5 rocket-propelled grenade launchers, 5 machine guns, 2 sniper rifles, 2 cases of C4 explosive, and what he believed to be $375,000. After Hammadi joined Alwan in January 2011, the two men loaded money and weapons together on five occasions from January to May 2011. Together, on these five occasions, they loaded 5 rocket-propelled grenade launchers, 5 machine guns, 5 cases of C4 explosive, 2 sniper rifles, 1 box of 12 hand grenades, 2 Stinger surface-to-air missile launchers, and what they believed to be a total of $565,000. Alwan and Hammadi were recorded by video during these operations.
In speaking with the CHS, Alwan spoke of his efforts to kill U.S. soldiers in Iraq, stating “lunch and dinner would be an American.” Hammadi told the CHS that he had experience in Iraq with “Strelas” (a Russian made, portable, shoulder-fired surface-to-air missile launcher) and discussed shipping “Strelas” in future operations.
According to the charging documents, Hammadi entered the United States in July 2009, and, after first residing in Las Vegas, moved to Bowling Green. Hammadi and Alwan were arrested on May 25, 2011, in Bowling Green on criminal complaints. Both defendants were closely monitored by federal law enforcement authorities in the months leading up to their arrests. Neither was charged with plotting attacks within the United States. All of the weapons, including Stinger missiles, had been rendered inert before being handled by Hammadi and Alwan. The weapons and money handled by the men in the United States were never provided to AQI, but instead were carefully controlled by law enforcement as part of the undercover operation.
The prosecution was handled by Assistant U.S. Attorneys Michael Bennett and Bryan Calhoun from the U.S. Attorney’s Office for the Western District of Kentucky and Trial Attorney Larry Schneider from the Counterterrorism Section of the Justice Department’s National Security Division.
This case was investigated by the Louisville Division of the FBI. Assisting in the investigation were members of the Louisville and Lexington Joint Terrorism Task Forces, U.S. Immigration and Customs Enforcement, U.S. Marshals Service, U.S. Department of Defense, U.S. Citizenship and Immigration Services and the Bowling Green Police Department.
Former Humana Inc. Employee Admits to Taking Kick-Backs Totaling $2 Million Dollars in an Insurance Sales Bribery SchemeRead the Press Release
LOUISVILLE, Ky. – Former Humana Inc. sales manager, James E. Wenger, pleaded guilty in United States District Court in Louisville, Kentucky today, to charges of racketeering and bribery, in connection with his former position, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Wenger, age 50, of Louisville, pleaded guilty to a single count federal information charging him with taking kickbacks totaling at least two million dollars while employed as part of Humana’s sales and marketing division known as the MarketPoint Organization.
According to the plea agreement, Wenger admits that in 2005, he, along with others, met at a hotel in Florida to discuss sending insurance agents to Shep Cutler, one of the larger Managing General Agencies (MGA) and Dan McNerney, one of his business partners, and also a MGA. Wenger and co-defendant Glenn Fine, another Humana employee, agreed to send insurance agents, who wanted to sell Humana Medicare Advantage and Prescription Drug Plan products, to Cutler and McNerney in exchange for Cutler sending payments to Wenger and Fine. The four agreed to split the override fees, and each would receive payments of 25%. Fine and Wenger agreed to set up fictitious businesses accounts in their wives' names. Wenger admitted he sent agents to Cutler and McNerney's MGAs, and acknowledged his wife did not provide any service in exchange for the money received from Cutler. Wenger was not authorized by Humana to enter into a kickback relationship with Cutler and McNerney. Wenger received approximately $2,000,000 for his participation in the scheme. As a result of this kickback arrangement, Humana suffered a loss to its business, and had to pay legal and other investigative costs.
At sentencing, Wenger faces a combined maximum term of five years in prison, a combined maximum fine of $250,000, and a three year period of supervised release. Wenger may also be ordered to forfeit any and all property derived from the gross proceeds of the offenses for which he has pleaded guilty. Co-defendant Glenn Fine is scheduled to make an initial appearance on February 19, 2013, in U.S. District Court located in Louisville, Kentucky.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the Department of Health and Human Services, Office of Inspector General, with assistance from Humana Inc.
Taylor County Man Charged with Defrauding Social Security of $110,148Read the Press Release
– Collected his deceased mother’s survivor benefits for ten years
BOWLING GREEN, Ky. – A federal grand jury meeting in Bowling Green, Kentucky this week charged a Taylor County, Kentucky resident with failure to report to Social Security Administration the death of his mother and fraudulently received her survivor benefits for ten years, announced David J. Hale, United States Attorney for the Western District of Kentucky.
George B. Roberts, age 69, was charged in a two count federal indictment, January 16, 2013, with theft of United States’ Funds and with Social Security Administration Payee Fraud. The indictment alleges that between June 2000 through August 2010, Roberts, willfully and knowingly converted to his use Social Security survivors insurance benefits, valued at approximately $110,148, belonging to the United States of America, which had been paid to his deceased mother’s checking account. The indictment further alleges that Roberts, concealed and failed to disclose to the Social Security Administration, that his mother, A.V.R., a beneficiary, was deceased, and he thereby intentionally and fraudulently continued to secure payment where no payment was authorized.
If convicted of count 1 of the indictment, Roberts shall forfeit to the United States any property derived directly or indirectly from gross proceeds traceable to the commission of the offense. Roberts faces, no more than 15 years in prison, a fine of up to $500,000 and a period of no more than three years of supervised release.
Roberts is scheduled for arraignment on the charges before U.S. Magistrate Judge Brent Brennenstuhl on January 30, 2013, in United States District Court located in Bowling Green, Kentucky.
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.
Jackson Purchase Medical Center Agrees to Pay $850,343.84 to Settle False Medicare BillingsRead the Press Release
– United States alleges violations of the False Claims Act, the Anti-Kickback Statue, and the Physician Self-Referral Law
LOUISVILLE, Ky. – PineLake Regional Hospital, LLC doing business as Jackson Purchase Medical Center (JPMC), has voluntarily entered into a settlement with the United States of America to pay $850,343.84 to settle allegations that the acute care facility submitted or caused to be submitted false claims for payment to the Medicare program in violation of the Federal False Claims Act, the Anti-Kickback Statue, and the Physician Self-Referral Law 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.
“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,” 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 limited health care resources will be held to account.”
According to the settlement agreement, the United States contends Dr. Raymond Charette, an orthopedic surgeon in private practice, received improper financial benefits from JPMC and, in return, referred patients to and treated patients at JPMC, a 107 licensed bed facility located in Mayfield, Kentucky.
The improper financial relationship, alleged by the United States, between JPMC and Dr. Charette, occurred for a period of seven years beginning in July 2004 through August 31, 2011. The United States alleged that from November 1, 2007, through August 31, 2011, JPMC employed a nurse practitioner who worked primarily and extensively for Dr. Charette; from July 1, 2007, through December 31, 2007, JPMC relieved Dr. Charette from his monetary rental obligations for space in JPMC’s medical building without modifying the lease in a signed agreement; and from July 6, 2004, through August 31, 2011, JPMC failed to collect rent on an equipment lease for an x-ray machine used by Dr. Charette’s medical practice. Having received financial benefits in the form of a Nurse Practitioner and reduced rental obligations, Dr. Charette referred patients to and treated patients at JPMC. As a result of these actions, the United States contends that JPMC submitted claims to Medicare for services rendered to these referred patients in violation, of the False Claims Act, the Anti-Kickback Statue, the Physician Self-Referral Law, and other federal statutes and common law doctrines.
This settlement agreement is neither an admission of liability by JPMC nor a concession by the United States that its claims are not well founded.
This case was prosecuted by Assistant United States Attorney Benjamin S. Schecter and it was investigated by the Office of Inspector General for the Department of Health and Human Services.
Restitution Payment Obtained from Sale of Former Home of Defendant Paul BarthRead the Press Release
– Proceeds from sale of house will go toward restitution for the Crusade for Children
LOUISVILLE, Ky. – The United States District Court Clerk located in Louisville, Kentucky will receive payment this week from the sale of the former home of former McMahan Fire Chief, Paul Charles Barth, in the amount of $130,410.56, to be applied toward the restitution owed the WHAS Crusade for Children and the McMahon Fire Protection District, announced David J. Hale, United States Attorney for the Western District of Kentucky. In addition, another $66,198.01 from the sale will be deposited in the Court Clerk’s registry account and may also be available for restitution.
“This is a significant first step toward making the Crusade for Children whole again,” stated U.S. Attorney Hale. “We will pursue further measures to collect additional funds from Barth for restitution beyond today’s payment until every dollar has been restored to the charity. In fact, we will request that the Court apply the $66,198.01 toward restitution, which will leave very little restitution outstanding.”
Barth, the former McMahan Fire Department Chief, began serving a 41 months sentence in federal prison followed by three years of supervised release on December 20, 2013. He was sentenced on November 19, 2012 in federal court by U.S. District Judge John G. Heyburn, II. On June 21, 2012, Barth pleaded guilty to one count of mail fraud, two counts of wire fraud, and 12 counts of money laundering. He was ordered to pay restitution to his victims, the WHAS Crusade for Children and the McMahon Fire Protection District (MFPD). The restitution order in favor of the Crusade was $190,000, and the order in favor of MFPD was $8,277, for a total of $198,277.
According to the United States Attorney’s Office, the private sale and transfer of Barth’s real estate property located in Jeffersontown, Kentucky was completed yesterday. The United States and American Alternative Insurance Corporation, insurer of McMahon Fire District, have released liens and claims to the real estate. In addition to the $130,410.56 to be paid directly for restitution, an additional $66,198.01 from the proceeds from the sale of the property will be paid into a registry account held by the United States District Court Clerk’s Office in Louisville, Kentucky. The United States Attorney’s Office will move the Court to apply these additional funds to the restitution owed by Barth. American Alternative Insurance Corporation may also assert an interest in the additional proceeds. However, if the United States’ motion is successful, a total of $196,608.57 will have been applied toward the outstanding $198,277 restitution obligation, excluding interest.
This case was prosecuted by Assistant United States Attorneys David Weiser and Bryan Calhoun. The restitution collection efforts were led by Assistant United States Attorney Joe Ansari. The case was investigated by the United States Secret Service - Kentucky Electronic Crimes Task Force, which includes the University of Louisville Police Department, the United States Postal Inspection Service, and the Criminal Investigation Division of the Internal Revenue Service.
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 federal grand jury meeting in Paducah, Kentucky today charged a Caldwell County, Kentucky resident with failure to report to Social Security Administration his ability to work and fraudulently received disability and Medicaid benefits for 20 years announced David J. Hale, United States Attorney for the Western District of Kentucky.
Travis L. Vickery, age 47, was charged in a two count federal indictment that alleges 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. The indictment further alleges that Vickery knowingly and willfully executed 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.
If convicted at trial, 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.
Vickery is scheduled for arraignment on the charges before U.S. Magistrate Judge Lanny King on January 17, 2013, in United States District Court located in Paducah, Kentucky.
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.
Multiple Defendants Sentenced This Week for Distribution of Cocaine and Possession of Illegal Firearms in U.S. District Court Located in Paducah, KentuckyRead the Press Release
PADUCAH, Ky. – Jessie Haskins of Christian County, Kentucky, plead guilty to possession and distribution of cocaine in United States District Court before Senior Judge Thomas B. Russell on January 10, 2013. According to the plea agreement, on December 30, 2009 and January 2010 and February 11, 2012, Haskins was recorded selling cocaine to a confidential informant. The amounts sold were 2.371 grams, 2.35 grams and 2.985 grams. Two of the transactions took place at the defendant’s home. At sentencing Haskins faces a combined maximum sentence of 90 years in prison and a $3,000,000 fine. He is scheduled for sentencing on April 24, 2013 at 11:30am in U.S. District Court.
Torrino Edwards, of Paducah, Kentucky, was sentenced to 70 months in federal prison, followed by three years of supervised release, on January 10, 2013, by Senior Judge Thomas B. Russell on January 10, 2103 for possession and distribution of crack cocaine. According to court records, Torrino admitted to selling and possessing crack cocaine on four separate occasions in November and December of 2010, and February of 2011. Sales were made in Paducah, Kentucky to a confidential informant. Edwards has two prior felony convictions in McCracken County Court.
Christopher Watkins, of Christian County, Kentucky, was sentenced to 100 months in prison followed by four years of supervised release, by Senior Judge Thomas B. Russell on January 10, 2013 for possession and distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime and for being a felon in possession of a firearm. According to court records, Watkins admitted to selling crack cocaine in April and May of 2009. The crack cocaine was sold to a confidential informant. The amounts were 11.8 grams, 57.6 grams and 36.5 grams of crack cocaine. Further, Watkins admitted to being a felon in possession of a firearm and selling a Bryco Arms 9mm semiautomatic pistol to a confidential informant.
Melvin Stamps Moore of Christian County, Kentucky was sentenced in U.S. District Court by Senior Judge Thomas B. Russell on January 10, 2013 to 92 months in prison followed by four years of supervised release, after pleading guilty to possession and distribution of cocaine base also known as crack cocaine. According to court records, Moore admitted in August and 2010 on two occasions that he sold crack cocaine. The sales to a confidential informant were recorded and were greater than 28 grams.
Donnell Brodie of Christian County, Kentucky was sentenced by Senior Judge Thomas B. Russell on January 10, 2013 to 120 months in federal prison followed by three years of supervised release. Brodie plead guilty in United States District Court on September 18, 2012 to possession and distribution of crack cocaine on four occasions in April, 2011.
Reginald R. Buchanan, Jr. of Christian County, Kentucky plead guilty before Senior Judge Thomas B. Russell, in U.S. District Court on January 10, 2013 to a single count of possession of a firearm and ammunition by a convicted felon. At sentencing, Buchanan faces a maximum sentence of 10 years in prison and a fine of $250,000.
Brandon S. Walker was sentenced by Senior Judge Thomas B. Russell on January 10, 2013 to 51 months in federal prison followed by two years of supervised release, after entering a guilty plea to a single count federal indictment charging him with possession of a firearm by a felon. According to the court documents, on February 22, 2011, in Paducah, Kentucky, Walker possessed and sold a Glock GMBH, Model 22, .40 caliber semiautomatic pistol and 9 rounds of Smith & Wesson .40 caliber ammunition. The weapon was forfeited to the United States Government. Walker had previously been convicted of felony crimes in Jefferson County and McCracken County in 2000 and 2002.
All cases were prosecuted by Assistant United States Attorneys for the Western District of Kentucky and the cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Western Kentucky Gun Crimes, Hopkinsville Police Department, the Paducah Police Department, Christian County Sheriff’s Department and the U.S. Drug Enforcement Administration (DEA).
Jefferson County and Bullitt County Residents Guilty in Conspiracy to Distribute OxycodoneRead the Press Release
– Obtained illegal prescription pain pills from Florida “pill mills”
LOUISVILLE, Ky. – Two more defendants charged in a conspiracy to distribute oxycodone in Jefferson County and Bullitt County, Kentucky pleaded guilty in United States District Court this week announced David J. Hale, United States Attorney for the Western District of Kentucky. Teresa Sandlin, age 49, and Jerry Sandlin, age 43, both from Louisville, entered guilty pleas before U.S. District Judge John G. Heyburn II, on January 7, 2013.
According to information provided in multiple plea agreements, between January 2009 and February 2012 the ten defendants traveled to a minimum of one pain clinic in Florida and obtained prescriptions for oxycodone and/or oxycodone tablets and returned with the ill-gotten medications to the Western District of Kentucky where they distributed, individually, between 5.13 and 19.23 grams of the prescription pain medication.
"The illicit sale of prescription pain medications is one of the greatest health and safety threats to our families and our communities,” stated U.S. Attorney David J. Hale. “Fighting the scourge of illicit prescription drugs is a priority of my office, and I applaud the efforts of the Drug Enforcement Administration and our state and local partners for their efforts in pursuing Kentucky drug dealers and shutting down the source of their supply.”
All ten defendants were charged with a single count of conspiracy to distribute a controlled substance in a federal grand jury indictment returned on June 22, 2011. Between May 7, 2012 and January 7, 2012 all but one of the ten defendants has entered a guilty plea in U.S. District Court. Two defendants were charged in a second count with money laundering. Those charged along with Teresa Sandlin and Jerry Sandlin were Mark Wolfe, 30 of Louisville; Steven Breeding, 26 of Bullitt County; Whitney Summitt, 22 of Louisville; Crystal Summitt, 30 of Louisville; Robert Randolph, 34 of Louisville; Michael Johnston, 34 of Louisville; Bobbie Maddox, 50 of Louisville; and Tylena Randolph, 58 of Louisville. Randolph entered a not guilty plea and has a status conference scheduled in March before Judge Heyburn.
According to the investigation by Drug Enforcement Administration (DEA) agents working in Louisville and the Southern District of Florida, the prescriptions were obtained from so called pain clinics located in Broward and Palm Beach counties. In August, 2011 a grand jury charged 32 defendants, associated with these pain clinics, with operating “pill mills.” (USA v. George et al.) All but four of the defendants have entered guilty pleas and the clinics were closed.
Teresa Sandlin and Bobbie Maddox plead guilty to a separate charge of money laundering for conspiring to conduct an unlawful financial transaction between December, 2009 and January, 2010. According to the plea agreement, Sandlin and Maddox took approximately $75,000.00 in U.S. currency, which were proceeds from count one’s drug trafficking charge, from Louisville, Kentucky to Jeffersonville, Indiana and presented it as a partial payment at the closing for the purchase of property in Shepherdsville, located in Bullitt County, Kentucky. Sandlin and Maddox presented a fraudulent gift letter which stated that Glenn Dovak, alleged to be Maddox’s uncle, had given Maddox the $75,000.00 in U.S. currency as a gift. The fraudulent gift letter was dated as being signed on January 5, 2010, but death records show Dovak had died on February 22, 2007.
At sentencing the defendants face a maximum 20 year term in prison, a maximum fine of one million dollars and supervised release of at least three years and up to any number of years, including life. Maddox and Teresa Sandlin face an addition 20 year term in prison and an additional $500,000.00 dollar fine for count two of the federal indictment.
This case is being prosecuted by Assistant United States Attorney Laura Hall and is being investigated by the United States Drug Enforcement Administration (DEA).
###Founder of USA Harvest Charged in Seven Count Federal Indictment Charges Include Stealing from the Charity, Tax Fraud, and Money LaunderingRead the Press Release
– Hugh “Stan” Curtis charged with stealing $183,354 in donations and failing to report $553,891.67 in personal income from USA Harvest
– Curtis used funds to allegedly pay for personal expenses including meals, entertainment, and travelLOUISVILLE, Ky. – USA Harvest, Kentucky Harvest, and Blessings in a Backpack founder, Hugh “Stan” Curtis was charged in a seven-count federal indictment today, with one count mail fraud, two counts money laundering and four counts filing false income tax returns with the Internal Revenue Service, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the indictment returned today by a federal grand jury meeting in Louisville, from September 2005 through September 2007, defendant Curtis, 63, of Louisville, Kentucky, allegedly stole approximately $183,354 in donations that he solicited on behalf of USA Harvest, a non-profit, I.R.C. 501 (c) organization. Of these stolen donations, Curtis deposited $164,620 into his personal account and personally cashed donation checks totaling $18,734 – and thereafter used the funds for his personal benefit. The $164,620 includes an August 29, 2007, donation for $20,000 from Play Like the Pros, LLC and a September 5, 2007, donation for $25,000 from Richemont North America, Inc. In addition, Curtis did not report the $183,354 as income with the Internal Revenue Service.
Further, from 2005 through 2008, it is alleged in the federal indictment, that Curtis failed to report to the Internal Revenue Service approximately $553,891.67 in personal income he received from USA Harvest. The amount includes the $183,354 in stolen donations and $370,537.67 in personal travel expenses that he charged to USA Harvest. More particularly, Curtis used approximately $370,537.67 in USA Harvest funds to pay for personal meals, personal entertainment expenses, and personal travel. In addition, Curtis fraudulently deducted approximately $353,165 in unreimbursed USA Harvest travel expenses on his 2005 through 2007 returns.
Counts four through seven of the indictment charge Curtis with filing false returns with the Internal Revenue Service. In 2005, Curtis failed to report approximately $160,549.56 in income and falsely deducted approximately $134,623 in unreimbursed travel expenses from USA Harvest on his 2005 federal income tax return filed on April 15, 2006. For the year 2006 Curtis failed to report approximately $217,085.18 income and falsely deducted approximately $130,739 in unreimbursed travel expenses from USA Harvest on his 2006 federal income tax return filed on May 9, 2007. For the year 2007 Curtis failed to report approximately $97,264.48 and falsely deducted approximately $87,803 in unreimbursed travel expenses from USA Harvest on his federal income tax return filed on April 15, 2008. For the year 2008 Curtis failed to report approximately $78,992.45 in income from USA Harvest on his 2008 federal income tax return filed on October 16, 2009. The return was filed by Curtis and signed under the penalty of perjury.
At sentencing, Curtis faces a combined maximum term of 52 years in prison, a combined maximum fine of $1,150,000, and a three-year term of supervised release.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Internal Revenue Service, Criminal Investigations Division.
American Sleep Medicine Pays $15.3 Million to Settle Improper Billing of Medicare and Other Federal Healthcare ProgramsRead the Press Release
– Sleep diagnostic tests were performed by individuals who lacked required credentials
LOUISVILLE, Ky. – The United States Department of Justice, the United States Attorney’s Office for the Western District of Kentucky, and the Office of Inspector General of the Department of Health and Human Services, today announced a $15,301,341 settlement with American Sleep Medicine, LLC (ASM) to resolve claims that the company improperly billed Medicare and other federal healthcare programs for sleep diagnostic services that were not eligible for payment.
“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 and the public to ensure that fraudulent claims are investigated and those responsible are required to pay,” stated David J. Hale, United States Attorney for the Western District of Kentucky. “Medical providers who overbill Medicare defraud the taxpayers and drive up the cost of health care for us all. Recovering taxpayer dollars lost to fraud helps keep strong those critical public health care programs so many people depend on,” stated Hale.
“Medicare patients and military families deserve to be treated by appropriately credentialed professionals when seeking medical care,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. “When companies providing those services seek to skirt the rules, there will be a steep price to pay.”
According to the agreement between ASM and the United States, ASM agreed to pay and has paid $15.3 million to settle claims arising from reimbursement requests for sleep diagnostic testing services, which ASM submitted or caused to be submitted to Medicare Part B, TRICARE, and the Railroad Retirement Medicare Programs. The United States contended that the reimbursement claims submitted during this period were false because the diagnostic testing services were performed by technicians who lacked the required credentials and/or certifications. The alleged improper billing covered by the settlement agreement occurred between January 1, 2004, and December 31, 2011.
ASM, headquartered in Jacksonville, Florida, owns and operates 19 diagnostic sleep testing centers throughout the United States, including Kentucky. The company’s primary business is to provide testing for patients suffering from sleep disorders such as obstructive sleep apnea (OSA). The most common tool used to diagnose sleep disorders, particularly OSA, is polysmnographic diagnostic sleep testing. Federal program requirements for the reimbursement of sleep disorder testing require that initial sleep studies be conducted by technicians who are licensed or certified as sleep test technicians. As a result of ASM’s conduct, Medicare and other federally funded healthcare programs were routinely billed for, and paid, technical and professional fees for diagnostic sleep study services that were not properly payable.
In agreeing to the settlement, ASM made no admission of liability. No issues concerning quality of patient care were raised as part of this settlement.
This matter arose as a complaint for damages and other relief under the qui tam provisions of the Federal False Claims Act. The relator, Daniel Purnell, a former employee of ASM, filed a qui tam action on February 4, 2010, in the United States District Court for the Northern District of California. In April, 2011, the lawsuit was transferred to the United States District Court for the Western District of Kentucky. Purnell will receive $2,601,228 as part of today’s settlement.
The matter was handled by Assistant United States Attorney L. Jay Gilbert of the U.S. Attorney’s Office for the Western District of Kentucky, and the Department of Justice Commercial Litigation Branch. The investigation was conducted by the Office of Inspector General of the U.S. Department of Health and Human Services with assistance from the Federal Bureau of Investigation, Defense Criminal Investigative Service and the Office of Inspector General of the Railroad Retirement Board.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.9 billion.