Eastern District of Kentucky

LEXINGTON, Ky. – The owner and CEO of a Lexington toxicology lab, Ronald Coburn, 76, pleaded guilty on Tuesday, before Chief U.S. District Judge Danny Reeves, to health care fraud and tax evasion.  The compliance officer of the same lab, Erica Baker, 31, pleaded guilty on Friday to a health care fraud conspiracy with Coburn.

According to Coburn’s plea agreement, he owned and operated LabTox, LLC, a laboratory that performed urine drug testing services and billed them to Medicare and Kentucky Medicaid.  Coburn knew that those health care programs only pay for medically necessary urine drug testing.  He also admitted knowing that urine drug testing ordered by courts for use in judicial proceedings was not medically necessary, and thus not payable by Medicare or Kentucky Medicaid.  With Coburn’s knowledge and approval, however, Baker recruited a company called Blue Waters Assessment and Testing Services to refer court-ordered urine drug testing to LabTox.  Coburn knew this was not medical testing, but caused it to be billed any way to Medicare and Kentucky Medicaid, resulting in fraudulently obtained payments to LabTox of $1,864,429 between June 2019 and March 2021.  In his plea agreement, Coburn has agreed to repay this money to Medicare and Kentucky Medicaid. 

Coburn also admitted to receiving income of more than $1.5 million per year from LabTox between 2017 and 2021, and to concealing this income and his ownership of LabTox by placing the business in the name of his partner.  Coburn created the false appearance that he did not earn income during this time period, and he did not file any tax returns in his own name.  While he caused tax returns to be filed in the name of his partner, he never paid any of the income tax he knew he owed to the Internal Revenue Service.  Coburn’s plea agreement obligates him to pay $3,566,645 to the IRS, representing income tax he owed in 2017 through 2021. 

According to Erica Baker’s plea agreement, she was LabTox’s director of operations and compliance officer, and participated in a health care fraud conspiracy with Coburn between January 2019 and January 2021.  Specifically, at Coburn’s direction, Baker solicited urine drug testing from non-medical substance abuse recovery programs, typically faith-based residential programs or homeless shelters.  Baker knew that urine drug testing for clients of these programs was not done for any medical reason, as would be required before Medicare or Kentucky Medicaid would pay for the tests.  As part of the scheme, Baker misled sober home directors, and induced the facilities to send in more tests to LabTox by putting facility staff on LabTox’s payroll and compensating them based on the number of urine drug tests sent to the lab.  Despite knowing that this testing was not for medical purposes, Baker and Coburn agreed to cause urine drug testing referred by these non-medical sober homes to be billed to Medicare and Kentucky Medicaid, resulting in fraudulent payments of at least $937,594.  

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Brian Jones, Acting Special Agent in Charge, FBI, Louisville Field Office; Tamala E. Miles, Special Agent in Charge, Department of Health and Human Services, Office of Inspector General, Atlanta Field Office; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, jointly announced the guilty pleas.

The investigation was conducted by the FBI, HHS-OIG, and IRS.  The United States was represented by Assistant U.S. Attorneys Andrea Mattingly-Williams and Paul McCaffrey.

Coburn and Baker are both scheduled to be sentenced on December 18, 2023. Both face a maximum of 10 years in prison and a fine of up to $250,000 fine.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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LEXINGTON, KY- Adam Sloan, 44, the Chief Commercial Officer of Old World Timber, a Lexington-based company specializing in antique wood reclamation, was sentenced by U.S. District Judge Karen Caldwell on Tuesday to 10 months in prison for selling misbranded N95 respirator masks during the COVID-19 pandemic. 

In the fall of 2020, during the COVID-19 pandemic, Sloan, along with Nathan Brown, the CEO of Old World Timber, directed the company to begin importing and selling medical-grade 3M™ N95 respirators (masks).  Old World Timber purchased more than 100,000 alleged 3M N95 masks from a company in China, and resold them to customers throughout the United States.  In his plea agreement, Sloan acknowledged that by March 2021, information from multiple sources, including 3M’s COVID-19 Fraud and Counterfeit Product Response Team, alerted him to the high probability that the masks he imported from China were counterfeit.  Sloan deliberately ignored these concerns and directed his company to continue selling the masks, misleading customers as to their authenticity.  Between March 3, 2021 and April 9, 2021, Brown caused Old World Timber to sell 57,460 misbranded masks for a total of $129,353. 

Upon Sloan’s release from prison, he will be under the supervision of the U.S. Probation Office for one year.  Sloan was also ordered to pay $129,353 in restitution.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; George A. Scavdis, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations Metro Washington Field Office; and James C. Harris, Special Agent in Charge, Homeland Security Investigations, Baltimore Field Division, jointly announced the sentence.

The investigation was conducted by the U.S. Food and Drug Administration and the U.S. Department of Homeland Security.  The United States was represented by Assistant U.S. Attorney Will Moynahan.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.  The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.  For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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LEXINGTON, Ky. — A Lexington man, Quincy Marquice Taylor, 37, was sentenced to 360 months in federal prison on Monday, by Chief U.S. District Judge Danny Reeves, for possession with intent to distribute cocaine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm as a convicted felon.

According to evidence at trial, on October 27, 2021, Taylor was involved in a single-vehicle collision on southbound I-75.  After exiting his vehicle, Taylor attempted to provide a bystander with a bag containing 45 grams of cocaine and a firearm.  After the bystander declined, Taylor hid the bag near brush along the exit ramp.  Taylor then left the scene by hitchhiking with a second bystander to Richmond, Ky.

Taylor had multiple prior convictions for felony drug trafficking.  As a convicted felon, he was prohibited from possessing a firearm.  Additionally, based on his significant prior criminal history, Taylor qualified as an Armed Career Criminal, which enhanced his sentence.

Taylor was convicted by a jury of these offenses in May 2023.

Under federal law, Taylor must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for six years. 

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Chief Lawrence Weathers, Lexington Police Department; and Chief Rodney Richardson, Richmond Police Department, jointly announced the sentence.

The investigation was conducted by ATF and the Lexington Police Department with assistance from the Richmond Police Department.  The United States was represented by Assistant U.S. Attorney Francisco Villalobos.

This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities.  It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts.  In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

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LEXINGTON, Ky. — A Nicholasville, Ky., man, Stephen Lancaster, 31, was sentenced to 262 months in federal prison on Monday, by Chief U.S. District Judge Danny Reeves, for possession with intent to distribute 10 grams or more of a fentanyl analogue, possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 50 grams or more of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.

According to his guilty plea agreement, on April 14, 2022, deputies with the Jessamine County Sheriff’s Office conducted a traffic stop on a vehicle in which Lancaster was a passenger.  Lancaster admitted to law enforcement that he had a large amount of narcotics and a firearm in the vehicle.  During the search of the vehicle, deputies located 23 grams of fluorofentanyl, a fentanyl analogue, 332 grams of fentanyl, 54 grams of pure methamphetamine, and 236 grams of multicolored pills containing methamphetamine.  Deputies also found a loaded AR-style pistol under the passenger seat, and a drum magazine.  Lancaster admitted that he possessed the drugs with the intent to distribute them, and he possessed the firearm in furtherance of drug trafficking.

Under federal law, Lancaster must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for five years. 

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, Drug Enforcement Administration (DEA), Louisville Field Office; and Kevin Grimes, Jessamine County Sheriff, jointly announced the sentence.

The investigation was conducted by DEA and the Jessamine County Sheriff’s Office.  The United States was represented by Assistant U.S. Attorney Cynthia Rieker.

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COVINGTON, Ky. – The former administrative manager for the City of Covington Public Works Department, Allison Donaldson, 50, was sentenced Friday, by U.S. District Judge David Bunning, to 42 months in prison, following her convictions for federal wire fraud and aggravated identity theft.

According to her plea agreement, Donaldson was employed as an administrative manager for the Public Works Department, from 2005 until 2022, and had access to credit card information for the department.  Her plea agreement established that, between February 2020 and continuing until February 2022, Donaldson knowingly defrauded the City of Covington, by using employee credit cards and making over $100,000 in purchases for herself and her home.  Some of the purchases listed in the plea agreement include repairs for a Mercedes Benz, a Louis Vuitton agenda, a Chanel tote, Crate & Barrel furniture, and a remodel to her master bedroom and garage.

Under federal law, Donaldson must serve 85 percent of her prison sentence.  Following her release from prison, she will then be under the supervision of the U.S. Probation Office for three years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Brian Jones, Acting Special Agent in Charge, FBI, Louisville Field Office; Daniel Cameron, Kentucky Attorney General; and Spike Jones, Chief of the Kenton County Police Department, jointly announced the sentencing.

The investigation was conducted by the FBI, the Kentucky Attorney General’s Department of Criminal Investigation, and the Kenton County Police Department.  The United States was represented by Assistant U.S. Attorney Kyle Winslow.

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LONDON, Ky.— Bailey Tyler Monde, 20, of Freetown, Indiana, was sentenced 84 months in federal prison on Thursday, by U.S. District Judge Robert E. Wier, after pleading guilty to conspiracy to unlawfully transfer machineguns and one count of unlawful transfer of a machinegun.

            According to Monde’s guilty plea agreement, he admitted to trafficking in Machinegun Conversion Devices, commonly known as “Glock switches,” which are designed to convert a Glock-type pistol into a fully automatic machinegun.  Monde admitted to using Facebook Messenger for selling stand-alone Glock switches, including ten switches sold at one time in Corbin, Kentucky, as well as selling Glock handguns with the Glock switches installed on the weapons.  A Glock switch, by itself, qualifies as a “machinegun” under federal law.

“Machinegun conversion devises are incredibly dangerous, and often quite simple to use,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “They easily convert handguns into fully automatic weapons that can fire a remarkable number of shots in just seconds.  They are an acute danger to our communities, illegal under federal law, and a critical priority in our efforts to combat violent crime.  With our valued partners at the ATF, we will do all we can to eliminate these frightening devices.”

“Machine guns are closely regulated because, in the wrong hands, they pose a deadly threat to our communities,” said ATF Special Agent in Charge Shawn Morrow of the Louisville Division. “This investigation showed how Bailey Monde worked to put dangerous machine gun conversion devices on the street and disregarded the safety of our communities. I commend the work of the ATF London Office and the United States Attorney’s Office, and I hope the message is clear that we aggressively pursue firearms traffickers and sources of crime guns.”

Under federal law, Monde must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.

United States Attorney Shier and Special Agent in Charge Morrow, jointly announced the sentence.

The investigation was conducted by the ATF.  The United States was represented by Assistant United States Attorney Gregory Rosenberg.

This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities.  It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts.  In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

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LONDON, Ky. — A London man, Dana Jones, 60, was sentenced to 40 years in federal prison on Monday, by U.S. District Judge Robert Wier, following his convictions for production of child pornography.

According to his guilty plea agreement, in December 2020, Jones enticed two minors to participate in a sexually explicit video, which Jones captured on one of the victim’s cell phones.  Jones then took the sexually explicit images and uploaded them to the social media application Snapchat.  Prior to this incident, Jones engaged in a pattern of grooming behavior, which regularly involved supplying the victims – who were just 12 and 14 years old at the time – with alcohol and drugs, including alprazolam (Xanax) oxycodone (Percocet), and cocaine. The investigation also revealed that Jones had engaged in sexual contact with one of the victims over the course of their association.  

Under federal law, Jones must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for life. 

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Col. Phillip Burnett, Commissioner, Kentucky State Police (KSP); and Sheriff Jon Root, Laurel County Sheriff’s Office, jointly announced the sentence.

The investigation was conducted by DEA, KSP, and Laurel County Sherriff’s Office.  The United States was represented by Assistant U.S. Attorney Sam Dotson.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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PIKEVILLE, Ky. — A Pippa Passes, Ky., man, Brandy Slone, 42, was sentenced to 190 months in federal prison on Monday, by U.S. District Judge Robert Wier, for conspiracy to distribute 500 grams or more of methamphetamine.

According to his guilty plea agreement, beginning in November 2020, Slone developed a relationship with a supplier from whom he regularly obtained multi-ounce quantities of methamphetamine, and over the course of the next two years, obtained and sold significant amounts of drugs in the Knott County area.  At sentencing the Court also found that Slone had possessed and trafficked a firearm; he had attempted to smuggle drugs into the Pike County Jail, after his arrest; and that he was responsible for dealing more than five kilograms of methamphetamine.  

Under federal law, Slone must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for five years. 

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Office; and Col. Phillip Burnett, Commissioner, Kentucky State Police, jointly announced the sentence.

The investigation was conducted by ATF and KSP.  The United States was represented by Assistant U.S. Attorney Drew Trimble.

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LEXINGTON, Ky. – A Lexington man, Gregory D. Barrett, 51, pleaded guilty on Friday, before Chief U.S. District Judge Danny Reeves, to sexual abuse of a ward.   

According to his plea agreement, beginning on June 22, 2022 through July 5, 2022, while employed as a Senior Officer Specialist at the Federal Medical Center in Lexington, Barrett knowingly engaged in a sexual act with an inmate.  The plea agreement also explains that Barrett later threatened and intimidated another inmate who was aware of his crime and could be a witness against him.  

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and William J. Hannah, Special Agent in Charge, Department of Justice, Office of the Inspector General, Chicago Field Office, jointly announced the guilty plea.

The investigation was conducted by DOJ-OIG.  The United States was represented by Assistant U.S. Attorney Zach Dembo.

Barrett is scheduled to be sentenced on December 15. He faces a maximum of 15 years in prison and up to a $250,000 fine.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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LEXINGTON, Ky. — A Danville, Ky., man, Steve Noonan, 46, was sentenced to 15 years in federal prison on Friday, by Chief U.S. District Judge Danny Reeves, for receiving child pornography.

According to his plea agreement, in 2020, Noonan was convicted of sexual exploitation of a minor in North Carolina.  After being released from prison, Noonan was placed on probation, the terms of which included monitoring of his electronic devices.  In May 2022, the Boyle County Probation and Parole noticed suspicious searches on one of Noonan’s devices.  This prompted Probation and Parole to search Noonan’s residence, where they found a cell phone that did not have the required monitoring software and that contained hundreds of images or videos of minors engaged in sexually explicit conduct.  Noonan then admitted to searching for and downloading these digital files.

Under federal law, Noonan must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for 15 years. 

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); Col. Phillip Burnett, Commissioner, Kentucky State Police (KSP); and Chief Parker Hatter, Perrysville Police Department, jointly announced the sentence.

The investigation was conducted by HSI, KSP, Perryville Police Department, and Boyle County Probation and Parole. The United States was represented by Assistant U.S. Attorney Erin Roth.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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PIKEVILLE, Ky. – Donald York, 60, of Beauty, Ky., was sentenced on Thursday, by U.S. District Judge Robert Wier, to 60 years in prison, following his convictions for producing and distributing sexually explicit images of a minor. 

York was convicted by a jury in April 2023, of four counts of production of child pornography and two counts of distributing child pornography.  According to the evidence presented at his trial, York coerced a 15-year female victim, who was in his care, to engage in sexually explicit conduct so that he could produce images of that conduct.  York then uploaded some of these images to a pornographic website.    

Under federal law, York must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for life.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Brian Jones, Acting Special Agent in Charge, FBI Louisville Field Office; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Sheriff John Kirk, Martin County Sherriff’s Office, jointly announced the sentence.

The investigation was conducted by FBI, Kentucky State Police, and the Martin County Sherriff’s Office.  The United States was represented in the case by Assistant U.S. Attorneys Justin Blankenship and Jason Parman.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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LEXINGTON, Ky.- Two former Lexington business owners, Douglas William Vance, 54, and Molly McKinnon, 59, were sentenced on Monday, by Chief U.S. District Judge Danny Reeves, to 174 months and 156 months, respectively, for conspiracy to commit wire fraud, multiple counts of wire fraud, and conspiracy to commit money laundering.

According to evidence at trial, from August 2016 through December 2018, Vance and McKinnon used falsified bank statements, financial reports, purchase orders, sales and production figures, and other fabricated records, to convince different investors that each owned a controlling stake in a company called “Nex-Gen.”  The company purported to produce “calcined coal” and other carbon-based products, in Chavies, Kentucky.  The false and fabricated documents also convinced two companies to lend money to Nex-Gen, and concealed the fact that Vance and McKinnon were misappropriating both investor and lender funds.  The evidence presented at trial established that Vance and McKinnon worked together to defraud multiple investors and lenders, out of more than $2 million.

Vance and McKinnon were convicted of the charges in October 2022.

Under federal law, Vance and McKinnon must serve 85 percent of their prison sentence. Upon his release from prison, they will be under the supervision of the U.S. Probation Office for three years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Brian Jones, Acting Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentencing.

The investigation was conducted by the FBI.  The United States was represented in the case by Assistant U.S. Attorneys Gregory Rosenberg and James Chapman.

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LEXINGTON, Ky.— Austin Lee Gladd, 26, of Russell Springs, Ky., was sentenced to 30 years in federal prison on Friday, by Chief U.S. District Judge Danny Reeves, after previously pleading guilty to production of child pornography.

According to Gladd’s guilty plea agreement, he admitted to using social media to entice a minor victim to engage in sexually explicit conduct; to traveling to Danville, Ky., where the victim was located, to engage in sexual intercourse with the minor victim; and to capturing multiple videos of the sexual encounter with his smartphone.   

Gladd pleaded guilty in April 2023.

Under federal law, Gladd must serve 85 percent of his prison sentence.  Upon his release from prison, Gladd will be required to register as a sex offender and will be under the supervision of the U.S. Probation Office for life.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent, FBI, Louisville Field Office; and Chief Tony Gray of the Danville Police Department jointly announced the sentence.

The investigation was conducted by the FBI and the Danville Police Department.  The United States was represented by Assistant United States Attorney Mary Melton. 

The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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ASHLAND, Ky.— A former Kentucky Department of Juvenile Justice employee, Nathaniel K. Lumpkins, 32, of Elkfork, Ky., has been indicted by a federal grand jury on one count of deprivation of rights under color of law and one count of falsifying records or documents to obstruct justice.

Lumpkins was employed at Woodsbend Youth Development Center, a Kentucky Department of Juvenile Justice facility located in West Liberty, Ky., and worked as a Youth Worker, responsible for the custody, care, and control of the juveniles housed there.  The indictment alleges that on January 23, 2019, Lumpkins, while working as a Youth Worker, violated the civil rights of a fifteen-year-old when he used unreasonable force to attempt to restrain the victim, causing bodily injury, including a broken arm.  The indictment further alleges that Lumpkins wrote and signed an incident report that included false information, attempting to cover up his use of force.       

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, announced the indictment.

The investigation preceding the indictment was conducted by FBI.  The indictment was presented to the grand jury by Assistant U.S. Attorney Zach Dembo. 

Lumpkins will appear in Court for his arraignment on Friday.  For the deprivation of rights charge, Lumpkins faces up to 10 years in prison, and for the falsifying records charge, he faces up to 20 years in prison.  However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

            Any indictment is an accusation only.  A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.

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LEXINGTON, Ky.— The former Kentucky Commonwealth’s Attorney for Bath, Menifee, Montgomery, and Rowan Counties, Ronnie Goldy, 51, has been indicted by a federal grand jury on six counts of honest services wire fraud, six counts of using an interstate communication to commit bribery, and two counts of federal program bribery.

The indictment alleges that between November 2017 and November 2020, Goldy defrauded the Commonwealth of Kentucky by using his position as Commonwealth’s Attorney to help a criminal defendant in exchange for bribes.  Specifically, the indictment charges that Goldy solicited and accepted sexual favors and sexually explicit images from this individual; and in return, he made decisions in criminal cases that benefitted this defendant and pressured other officials to do the same.  The indictment lists examples of actions Goldy agreed to perform for this defendant, including seeking their release from incarceration, asking for the withdrawal of arrest warrants, requesting the postponement of a court hearing, and asking another prosecutor to sign an order directing the release of the defendant’s impounded property.      

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, announced the indictment.

The investigation preceding the indictment was conducted by FBI.  The indictment was presented to the grand jury by Assistant U.S. Attorney Andy Boone. 

Goldy will appear for his initial appearance on Monday at 4 p.m.  For the six counts of honest services wire fraud, Goldy faces a maximum of 20 years in prison; for the six counts of electronic communication bribery, he faces a maximum of five years in prison; and for the two counts of federal program bribery, he faces a maximum of 10 years in prison.  However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

            Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.

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LEXINGTON, Ky. — A Mexican national, illegally residing in Lexington, Luis Lara-Garcia, 25, was sentenced on Tuesday to 372 months in federal prison, by Chief U.S. District Judge Danny Reeves, for one count of conspiracy to distribute 400 grams or more of fentanyl and five kilograms of cocaine, one count of distribution of 400 grams or more of fentanyl and 500 grams or more of cocaine, one count of possession of firearm by an alien, one count of conspiracy to launder drug proceeds, and one count of illegal re-entry into the United States.

According to his plea agreement, Lara-Garcia admitted to knowingly and voluntarily participating in a conspiracy to distribute large quantities of fentanyl and cocaine in the Eastern District of Kentucky.  After the controlled substances were distributed, Lara-Garcia and other conspirators would collect the proceeds of the drug sales, count and package the money, and then conduct financial transactions with the money, by delivering the packages to couriers for the larger drug trafficking organization.  Lara-Garcia also admitted that he is an alien, a native and citizen of Mexico, and has no legal status in the United States.

During the investigation, DEA agents seized 7 kilograms of fentanyl, 2 kilograms of cocaine, 6 firearms and approximately $650,000 in cash drug proceeds.

In all, eleven defendants were charged in the drug or money laundering conspiracies.  Seven pled guilty, including Demarkus Nemetz, who was sentenced, in July 2023, to 294 months in prison.  Humberto Saucedo-Salgado, of Lexington, was sentenced to 97 months and Eduardo Hernandez Alfaro, also of Lexington, was sentenced to 78 months.  Three defendants proceeded to trial, in April 2023, and were found guilty of conspiracy to launder drug proceeds and promotional money laundering.  Tawsif Mohamed Tajwar was sentenced, in July 2023, to 90 months in prison.  Two remaining defendants, who were convicted at trial, are pending sentencing.

Under federal law, Lara-Garcia must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. Lara-Garcia was also ordered to pay a money judgement of $400,000 and to forfeit approximately $650,000 and four firearms.

Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky, and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence.

The investigation was conducted by the DEA.  The United States was represented by Assistant U.S. Attorney Todd Bradbury.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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LEXINGTON, Ky. – Air Methods Corporation, a national provider of air medical transport services, agreed to pay the federal government $1,050,873, to resolve civil allegations that it had failed to return known overpayments received from Medicare, Kentucky Medicaid, Tricare, and the Department of Veterans Affairs.

The United States alleged that Air Methods violated the False Claims Act, by improperly retaining overpayments for more than 100 flights that it knew to be medically unnecessary and, therefore, ineligible for reimbursement by federal healthcare programs.  Federal healthcare programs, including Medicare and Kentucky Medicaid, only provide reimbursement for air ambulance transportation if the beneficiary’s medical condition requires air transport, and transport by ground ambulance is not appropriate.  The United States alleged that Air Methods’ internal review process identified flights that did not meet these coverage requirements, including instances where patients were flown despite not meeting trauma criteria. The False Claims Act, a federal law that prohibits causing the submission of false or fraudulent claims to the federal government, also forbids knowingly concealing, avoiding, or decreasing an obligation to pay the government.  As such, healthcare providers also face False Claims Act liability when they fail to return known overpayments to federal healthcare programs.  

“Healthcare providers have a legal obligation to return known overpayments received from the federal government,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “It is critically important to all of us that such misapplied funds are returned to their purpose – providing necessary medical care – and that we take the steps necessary to protect the limited resources available to these vital programs.”

"Federal health care programs are an important resource for millions of Americans to receive medical care," said Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG will continue to promote the proper use of federal health care funds and their protection from fraud, waste, and abuse."

The settlement resolves a lawsuit brought by a private citizen under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery.  As part of this resolution, the individual who filed the qui tam complaint will receive approximately $190,000 from the settlement.

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Department of Defense, Defense Criminal Investigative Services, and the Affirmative Civil Enforcement section of the U.S. Attorney’s Office.  Assistant United States Attorneys Benjamin Long and Mary Melton represented the United States.

This case is captioned United States ex rel. Scott Crum v. Air Methods Corporation, Case No. 3:18-CV-00043-GFVT. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

– END –

ASHLAND, Ky. – Donna Sue Glass, 53, of Greenup, Kentucky, was sentenced to 18 months in federal prison on Monday by U.S. District Court Judge David L. Bunning.  Glass pleaded guilty to two counts of wire fraud, stemming from her conduct as the owner of the Glass Family Care Home, a now closed family care home located in Argillite, Kentucky.

 According to court records, Glass became the guardian over two of her residents and an authorized signor on another’s bank accounts, and, as to all three, misappropriated their money while acting as a guardian or caregiver.  According to her plea agreement, from September 2015 to April 2018, Glass used one resident’s bank account to purchase items for her personal benefit, including expenses for personal vacations, her daughter’s beauty pageant competitions, monthly tanning salon memberships, veterinary care for her pets, and other miscellaneous items, using a debit card she had no authority to obtain or use. 

In her plea agreement, Glass also agreed that she increased the rent of another resident over whom she had Guardianship, identified in the plea agreement as P.M.J., to an amount well in excess of what P.M.J. could afford.  Glass, as P.M.J.’s Guardian, accepted the rate increase to generate a debt P.M.J. would owe to her, and then took funds directly from P.M.J.’s savings account to satisfy this debt.  When P.M.J. moved to a higher-level nursing facility, Glass admitted she continued to accept and spend P.M.J.’s retirement benefits and failed to pay her new nursing facility, under the pretense that P.M.J. owed her money.

During the sentencing hearing, the Court announced that Glass misappropriated just under $95,000, and ordered restitution in the amount of approximately $87,700, to be paid to the estates of the three victims.  As a condition of her sentencing, Glass is required to pay the net proceeds for the sale of the Glass Family Care Home property to the United States to pay off some or all of this restitution amount.

Glass pleaded guilty on March 31.

Under federal law, Glass must serve 85 percent of her prison sentence, and upon her release from prison will be under the supervision of the U.S. Probation Office for 3 years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.

The investigation was conducted by the FBI, with assistance from Adult Protective Services, a division of the Kentucky Cabinet for Health and Family Services, Department for Community Based Services.  The United States was represented by Assistant U.S. Attorney Kathryn Dieruf.

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ASHLAND, Ky. — An Ashland man, Adam Fonso Childers, 71, was sentenced on Monday to 20 years in prison by U.S. District Judge David Bunning for distributing and possessing child pornography.

The evidence presented at trial established that, between October 5-6, 2020, Childers was found to have distributed multiple files of child pornography, using a peer-to-peer file sharing network.  A search warrant was then obtained and revealed that, over a period of decades, Childers had acquired multiple forms of media found to contain child pornography.  This media included magazines he acquired in the 1970s, binders of printed materials, multiple disks, seven external hard drives, and a desktop computer.  In total, Childers possessed hundreds of thousands of images and videos of child pornography, that included depictions of minors under the age of 12 engaged in sexually explicit activity.  He was also identified as being one of the top ten individuals for sharing child pornography in Kentucky, via this particular file sharing program.

A federal jury sitting in Ashland convicted Childers in January 2023.

“This case involved an enormous amount of child sexual abuse material, collected over many years, and involved countless victims,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “Protecting our children from this despicable sexual abuse is a core priority for our office and is essential to the safety of our communities.  I want to commend our law enforcement partners, whose dedicated and difficult work made this prosecution and sentence possible – and made our children safer.”

“The exploitation of innocent children is one of the most heinous crimes the FBI investigates,” said Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office. “Today’s sentence reinforces that the FBI and our law enforcement partners will continue to aggressively pursue those who prey upon our most vulnerable victims and will stop at nothing to hold them accountable.”      

Under federal law, Childers must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for life.  He was also ordered to pay more than $175,000 in restitution and financial assessments.

U.S. Attorney Shier; FBI Special Agent in Charge Cohen; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Chief W. Todd Kelley, Ashland Police Department, jointly announced the sentence.

The investigation was conducted by FBI, KSP, and the Ashland Police Department.  The United States was represented in the case by Assistant U.S. Attorneys Erin Roth and Mary Melton.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

-END-

FRANKFORT, Ky. — A Frankfort man, Charles Crawford, 53, was sentenced to 30 years in federal prison on Friday, by U.S. District Judge Gregory Van Tatenhove, for production of child pornography.

According to his plea agreement, Crawford admitted that, on March 19, 2022, he was pulled over in a traffic stop because he was observed to have a minor sitting on his lap.  During the stop, it was discovered that Crawford had a sexual device strapped to his leg and that he was under the influence of methamphetamine.  A search of the car was then performed, which revealed methamphetamine, drug paraphernalia, and a digital camera.  A search of the camera revealed three videos of Crawford sexually assaulting a minor victim.

Crawford pleaded guilty in January 2023.           

Under federal law, Crawford must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for life.  He was also ordered to pay restitution to his victim.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigation; Daniel Cameron, Kentucky Attorney General; Chief Dustin Bowman, Frankfort Police Department; and Sheriff Chris Quire, Franklin County Sheriff's Office, jointly announced the sentence.

The investigation was conducted by the HSI, the Kentucky Attorney General’s Office, the Frankfort Police Department, and the Franklin County Sheriff's Office.  The United States was represented by Assistant U.S. Attorney Erin Roth.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov

-END-

FRANKFORT, Ky. – A federal jury sitting in Frankfort convicted four Tennessee physicians on Friday of conspiracy to illicitly prescribe controlled substances and related fraud and money laundering offenses.

The defendants worked together in two east Tennessee clinics, called EHC Medical, that purported to offer treatment for opioid use disorder.  The evidence presented established that the defendants agreed to unlawfully prescribe buprenorphine (the controlled substance in the drug known by its trade name, Suboxone) and benzodiazepine-class drugs, including clonazepam.

Evann Herrell, Mark Grenkoski, Keri McFarlane, and Stephen Cirelli were each physicians who worked for EHC Medical in Harriman and Jacksboro, Tenn.  Robert Taylor, who opened EHC Medical in 2013 and operated it through late 2018, pleaded guilty to a drug trafficking conspiracy charge and was sentenced earlier this year to 30 months in prison.  He forfeited $13.8 million and paid an additional fine of $200,000.  Lori Barnett, a registered nurse who helped Taylor supervise day-to-day operations, and three other physicians – Matthew Rasberry, Helen Bidwaid, and Eva Misra – also pleaded guilty to related drug or money laundering charges and are awaiting sentencing.

At trial, the United States presented evidence of a wide-ranging conspiracy to provide prescriptions for high doses and dangerous combinations of Suboxone and benzodiazepines to cash-paying customers.  These drugs were being sold, traded, and abused throughout southeastern Kentucky.  The evidence further established that the Defendants engaged in a conspiracy to falsify medical records, while putatively treating patients, and that Herrell, Grenkoski, and McFarlane conspired to cause millions of dollars in fraudulent submissions to Medicare, Kentucky Medicaid, and other health benefit programs for prescription drugs and urine drug testing.  

 “These physicians focused on their own greed and self-interests, not the needs of their patients,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “Their illegal scheme had a damaging impact on their patients, fraudulently preyed on health benefit programs, and undermined the public’s faith in legitimate medical practices in this field.  We, and our law enforcement partners, remain committed to holding those who take advantage of the medical licenses entrusted to them, to profit through unlawful prescriptions, accountable.  The opioid epidemic created an acute need for responsible substance abuse treatment.  Drug trafficking, operating under the guise of addiction treatment, is another despicable consequence of this problem.”

United States Attorney Shier; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation; and Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG), jointly announced the guilty verdict.

The Defendants are scheduled to appear for sentencing on December 4, 2023.  The statutory maximum penalty for the drug trafficking conspiracy is 10 years, for the conspiracy to falsify documents in connection with delivery of health care services is 5 years, and for the fraud and money laundering counts is 20 years.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence. The defendants also face potential fines, a forfeiture money judgment, and a judgment of restitution, as ordered by the Court.

The investigation was conducted by the DEA, IRS, and HHS, with support from the Kentucky Office of the Attorney General.

The United States was represented in the case by Assistant U.S. Attorneys Greg Rosenberg, Amanda Huang, and Andrew Smith.  The case was prosecuted as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force, an initiative focusing on significant drug trafficking and money laundering criminal organizations.

– END –

LONDON, Ky. — A Knott County, Ky., man, Michael Nolan Slone, 37, was sentenced on Friday to 150 months in federal prison, by U.S. District Judge Robert Wier, for possession with intent to distribute 50 grams or more of methamphetamine, possession of a firearm in furtherance of drug trafficking, possession of a firearm as a convicted felon, and possessing a firearm with an obliterated serial number. 

Slone, who represented himself at trial, was found guilty by the jury following a two-day trial in March.  According to the facts introduced at trial, a Kentucky State Police trooper discovered Slone passed out in the driver seat of his vehicle at a gas station in Hindman.  The encounter ended with the location of over 100 grams of methamphetamine and two firearms.  One firearm was on Slone’s person and the other, an AR-style rifle, was located directly over the methamphetamine, and had the magazines “jungle-stacked” together for quicker reloading capability.

Slone was prohibited from firearm possession due to prior felony convictions for First Degree Burglary and Attempted Murder, which he obtained after shooting two individuals in August of 2010. 

Under federal law, Slone must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; R. Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Col. Phillip Burnett, Jr., jointly announced the sentence.  The investigation was conducted by the ATF and the KSP.

This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

-END-

LONDON, Ky. - A Woodbine, Ky., man, Daniel Scott Nantz, 33, was sentenced to life in prison on Wednesday, by U.S. District Judge Robert E. Wier, for the first-degree murder of a federal witness, Geri D. (Bays) Johnson.              

According to the investigation and plea agreement, Nantz was engaged in multiple methamphetamine trafficking conspiracies throughout Whitley, Knox, and Laurel Counties, from March of 2017 through March of 2019.  In the Spring of 2019, some of Nantz’s methamphetamine sources of supply and co-conspirators were charged in federal indictments .  One such co-conspirator was Ms. Johnson.  Nantz began to grow increasingly concerned that he too would be charged in an indictment.

Prior to the murder, Nantz learned that Johnson had cooperated with law enforcement. Nantz discussed his fears regarding Ms. Johnson’s potential continued cooperation with multiple witnesses, as well as Ms. Johnson herself.  At the sentencing hearing, multiple witnesses testified to observing Nantz becoming increasingly violent towards Ms. Johnson, including witnessing Nantz shoot at Ms. Johnson.  On March 13, 2019, Nantz texted Ms. Johnson “I’ll kill you [expletive].”  On March 14, 2019, Nantz texted Ms. Johnson, “Your very dangerous for me. Very very dangerous.”  Then, on the morning of March 16, 2019, Nantz told a witness “Geri is talking to the feds.  I think she is telling.  If so, I’ll just kill her.”  Afterwards, a  note, handwritten by Nantz, was recovered from the murder scene, which read “Funeral/fed’s pulled [redacted name] and geri out asking questions.” 

Ultimately, on the afternoon of March 16, 2019, Nantz left an armed kidnapping that he was participating in to return to his secluded trailer in Steele Hollow.  Ms. Johnson was at Nantz’s residence watching his two minor children and desperately attempting to find a ride out of the area.  Text messages from Ms. Johnson’s phone show that she begged two friends for a ride from Nantz’s residence, and even asked Nantz himself for a ride away from the residence.

After he arrived at the residence, Nantz fired the first round at Ms. Johnson in the master bedroom of his trailer.  Then, Nantz ordered his children into their bedroom and Ms. Johnson fled outside with her belongings.  Nantz followed Ms. Johnson outside into the driveway, where he shot her in the back through her shoulder, with a stolen .38 special revolver.  Ms. Johnson continued to flee from the trailer, when Nantz fired a third round that pierced her neck.  A blood trail of approximately 127 feet established Ms. Johnson’s attempt to flee.  The autopsy revealed the round through Ms. Johnson’s neck ultimately caused her to asphyxiate on her blood.  Ms. Johnson was approximately 33 weeks pregnant at the time.   

After the shooting, Nantz drove Ms. Johnson’s body back to the kidnapping site, to pickup a friend.  Nantz then held up Ms. Johnson’s body while his friend drove the pair back to Nantz’s trailer.  Once back at his trailer, Nantz instructed his friend to “get the DVRs.”  Multiple witnesses testified that Nantz had a surveillance system connected to a DVR box that would have captured the front driveway where the murder occurred.  After instructing his friend on the DVRs, Nantz finally called 911 and started the drive from his residence to Baptist Health Hospital in Corbin, Kentucky.  Ms. Johnson was pronounced dead at the hospital.  Ms. Johnson’s daughter, Amelia Jo Johnson, was born via emergency Cesarean section, at approximately 33 weeks gestation.  Amelia passed away on March 19, 2019, due to brain damage caused by severe oxygen and blood deprivation due to her mother’s injuries.      

Nantz received sentencing enhancements for obstructing justice post-murder, for the destruction of the DVR(s), and for murdering a vulnerable victim, a woman in her third trimester.

“The conduct in this case was truly appalling, and certainly warranted the life sentence imposed,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “In a disgraceful choice, Daniel Nantz elected to protect his illegal drug trafficking operation and self-interests, over the lives of two people – his girlfriend and her daughter.  This brutal act of cruel self-importance underscores how violent and serious the illegal methamphetamine trade has become.  I am hopeful that this sentence will provide some measure of justice to the victims and their family; and I want to commend the outstanding work of our law enforcement partners, whose dedicated efforts made this conviction and sentence possible.”

“Today, Daniel Nantz was sentenced to spend the rest of his life in federal prison for murdering Geri Johnson, who was pregnant,” said ATF Special Agent in Charge Shawn Morrow.  “We are pleased with the life sentence.  Our hope is it brings some sense of justice to her loved ones and sends a message that Kentucky law enforcement is committed to seeking justice for crimes against innocent victims.  I want to commend the ATF London Office, Kentucky State Police, prosecutors, and our law enforcement partners who worked tirelessly on this case.”

United States Attorney Shier; ATF SAC Morrow; and Commissioner Phillip Burnett, Kentucky State Police, jointly announced the sentencing.

The investigation was conducted by the ATF and KSP.  The United States was represented by Assistant U.S. Attorney Jenna E. Reed.    

This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities.  It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts.  In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

– END –

LEXINGTON, KY- A man residing in Passaic, NJ, Alfredo Bermejo-Martinez, 24, was sentenced by Chief U.S. District Judge Danny Reeves on Monday to 20 years in prison, after pleading guilty to one count of production of child pornography.

According to his plea agreement, in late 2018 or early 2019, Bermejo-Martinez met a victim, residing in the Eastern District of Kentucky, online while playing a video game, and continued contact over a couple of years. In approximately September 2020, he began asking the victim to take and send him sexually explicit pictures via Snapchat.

The plea agreement further explains that Bermejo-Martinez traveled from New Jersey to Kentucky to see her on four separate occasions from February 2021 through May 2022. In April 2022, the victim ended the relationship with him and Bermejo-Martinez threatened to release nude images of the victim. A search of his phone revealed sexually explicit photos and videos of the victim, who Bermejo-Martinez admitted he knew was a minor.

Bermejo-Martinez pleaded guilty in March 2023.

Under federal law, Bermejo-Martinez must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 20 years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations - Nashville; and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly announced the sentence.

The investigation was conducted by HSI and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Erin Roth.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

— END —

LEXINGTON, KY- A Lexington, Ky., man, Erich Storck, 51, was sentenced by Chief U.S. District Judge Danny Reeves on Friday to 120 months in prison for two counts of felon in possession of a firearm.          

Storck was convicted of the charges on April 5, 2023. According to evidence at his trial, Storck had multiple misdemeanor convictions and a felony conviction for Assault Under Extreme Emotional Disturbance.  In May 2020, Storck was arrested after being found outside Northpoint Training Center, a medium-security state prison, under the influence of alcohol with a loaded handgun stored in his motorcycle.  Storck was released on state bond. While on bond, in November 2021, Storck barricaded himself in his residence in Nicholasville where he discharged over 30 rounds from a 9mm and an assault rifle.  Some of the rounds struck a neighbor’s house.  After Storck eventually surrendered to law enforcement, officers located two firearms and hundreds of rounds of ammunition in his home.

Under federal law, Storck must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. Storck was also ordered to pay a $20,000 fine and $1,000 in restitution.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Todd Justice, Chief of Police, Nicholasville Police Department; and Sheriff Taylor Bottom, Boyle County Sheriff’s Department, jointly announced the sentence.

The investigation was conducted by ATF, Nicholasville Police Department, and Boyle County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Roger West.

— END —

LEXINGTON, KY- Nathan Brown, 47, CEO of Old World Timber, a Lexington company specializing in antique wood reclamation, was sentenced by U.S. District Judge Karen Caldwell on Thursday to 10 months in prison for selling misbranded N95 respirator masks during the COVID-19 pandemic. 

In the fall of 2020, during the COVID-19 pandemic, Brown directed his company to begin importing and selling medical-grade 3M™ N95 respirators (masks). Old World Timber purchased more than 100,000 alleged 3M N95 masks from a company in China, and resold them to customers throughout the United States.  In his plea agreement, Brown acknowledged that by March 2021, information from multiple sources, including 3M’s COVID-19 Fraud and Counterfeit Product Response Team, alerted him to the high probability that the masks he imported from China were counterfeit.  Brown deliberately ignored these concerns and directed his company to continue selling the masks, misleading customers as to their authenticity.  Between March 3, 2021 and April 9, 2021, Brown caused OWT to sell 57,460 misbranded masks for a total of $129,353. 

Under federal law, Brown must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for one year. Brown was also ordered to pay $129,353 in restitution.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; George A. Scavdis, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations Metro Washington Field Office; and James C. Harris, Special Agent in Charge, Homeland Security Investigations, Baltimore Field Division, jointly announced the sentence.

The investigation was conducted by the U.S. Food and Drug Administration and the U.S. Department of Homeland Security.  The United States was represented by Assistant U.S. Attorney Will Moynahan.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

— END —

LEXINGTON, Ky. — A Georgetown, Ky., man, Demarkus Nemetz, 24, was sentenced on Monday to 294 months in federal prison, by Chief U.S. District Judge Danny Reeves, for conspiracy to launder drug proceeds and promotional money laundering.

According to his plea agreement, Nemetz admitted to knowingly and voluntarily participating in a conspiracy to launder drug proceeds.  After other conspirators distributed controlled substances, including fentanyl and cocaine, Nemetz would collect the proceeds of the drug sales, count and package the money, and then conduct financial transactions with the proceeds by delivering the packages to couriers for the larger drug trafficking organization.  Nemetz admitted that he was responsible for at least $1.5 million but less than $3.5 million in drug proceeds.

During the investigation, DEA agents seized 7 kilograms of fentanyl, 2 kilograms of cocaine, 6 firearms and approximately $650,000 in cash drug proceeds.

Eleven defendants were charged in the drug or money laundering conspiracies.  Six defendants pled guilty, including Nemetz, who pleaded guilty in November 2022.  Three defendants proceeded to trial in April 2023, on conspiracy to launder drug proceeds and promotional money laundering.  All three were found guilty by the jury and are pending sentencing.  Two others have already been sentenced.  Eduardo Hernandez Alfaro, of Lexington, was sentenced to 78 months and Humberto Saucedo-Salgado, also of Lexington, was sentenced to 97 months.

Under federal law, Nemetz must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.

Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky, and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence.

The investigation was conducted by the DEA.  The United States was represented by Assistant U.S. Attorney Todd Bradbury.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

-END-

COVINGTON, Ky. – The founder of Berenyi, Inc., headquartered in Charleston, SC, Antoine “Tony” Berenyi, 63, was found guilty late Tuesday, by a federal jury sitting in Covington, following a six-day trial, of one count of conspiracy to commit honest services wire fraud, 14 counts of wire fraud, and 10 counts of money laundering.

According to the evidence at trial, beginning in late 2017, Berenyi entered into an illegal kickback agreement with Jaymin Vinson, an employee of Nucor Steel Gallatin, to deprive Nucor of money and Vinson’s honest services as an employee.  Berenyi and Vinson agreed that Vinson would help steer a $14,950,000 construction management contract for a $650 million Nucor mill expansion project to Berenyi’s company and provide other services on behalf of Berenyi within Nucor, in exchange for Berenyi paying Vinson a 15% kickback on the contract, all without Nucor’s knowledge or approval.  Berenyi’s secret kickback payments continued into 2019, totaling over $452,000 kicked back to Vinson.           

Berenyi was indicted in October 2022.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty verdict.

The investigation was conducted by the FBI.  The United States was represented in the case by Assistant U.S. Attorneys James Chapman and Kyle Winslow.   

Berenyi is scheduled to appear for sentencing on December 13, 2023.  He faces up to 20 years in prison on the conspiracy to commit honest services wire fraud count; up to 20 years in prison on each of the wire fraud counts, and not more than 10 years in prison on each count of money laundering.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.  Berenyi also faces potential fines, a forfeiture money judgment, and a judgment of restitution, as ordered by the Court.

— END —

Two former Eastern Kentucky Correctional Complex (EKCC) officers pleaded guilty for their roles in the assault of a restrained inmate.

According to court documents, Randall T. Dennis, 28, pleaded guilty to one count of deprivation of the inmate’s civil rights and Nathan M. Cantrell, 32, pleaded guilty to four counts of obstruction of justice for attempting to cover up what happened. In their plea agreements, the defendants admitted that on July 24, 2018, EKCC correctional officers assaulted a nonviolent inmate who was lying face-down, wearing handcuffs and leg shackles, and isolated in a prison shower cell. Dennis admitted that he participated in the assault by repeatedly striking the inmate while he was restrained and unresisting. Cantrell, who stood outside of the shower while the assault occurred, admitted that he falsified records by omitting the assault from his occurrence report, and that he later lied to the supervisor assigned to investigate the incident as well as a Kentucky State Police (KSP) detective and a Kentucky Internal Investigations Branch (IIB) investigator. 

Four other former officers have pleaded guilty in related cases. On April 10, former EKCC officer James Benish pleaded guilty to one count of deprivation of civil rights based on his failure to intervene to protect the inmate, and former EKCC supervisor Randy Nickell pleaded guilty to three counts of obstruction based on his efforts to cover up the same assault. On Aug. 29, 2022, former EKCC officer Jeffery Havens pleaded guilty to one count of deprivation of civil rights based on his assault of the inmate. On July 11, 2022, former EKCC officer Derek Mays pleaded guilty to four counts of obstruction of justice based on his efforts to cover up the assault.

Dennis and Cantrell are scheduled to be sentenced on Dec. 11. Dennis faces a maximum sentence of up to 10 years in prison. Cantrell faces a maximum of 20 years in prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office; and Colonel Phillip Burnett Jr. Commissioner of the KSP made the announcement.

The FBI, the KSP and the Kentucky Justice and Public Safety Cabinet conducted the investigation.

Assistant U.S. Attorney Zach Dembo and Mary Melton for the Eastern District of Kentucky and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section are prosecuting the case.

A former Eastern Kentucky Correctional Complex (EKCC) sergeant was indicted by a federal jury in Lexington, Kentucky, for three counts of obstruction based on his efforts to cover up the assault of a restrained inmate by multiple officers that he supervised. 

The indictment alleges that on July 24, 2018, Sgt. Eric L. Nantell, 47, watched lower-ranking EKCC correctional officers assault a nonviolent inmate who was lying face-down, wearing handcuffs and leg shackles, and isolated in a prison shower cell. The indictment specifically alleges that Nantell, who at that time held the rank of sergeant, stood outside of the shower during the assault and that he later attempted to cover up what happened by lying to the EKCC supervisor assigned to investigate the incident, a Kentucky State Police (KSP) detective, and a special agent of the FBI. 

Nantell faces a maximum of 20 years in prison for each charge alleging that he lied to Kentucky state officials. Nantell faces a maximum of five years in prison for lying to the FBI. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office; and Colonel Phillip Burnett Jr. Commissioner of the KSP made the announcement.

The FBI, the KSP and the Kentucky Justice and Public Safety Cabinet conducted the investigation.

Assistant U.S. Attorney Zach Dembo and Mary Melton for the Eastern District of Kentucky and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

LEXINGTON, Ky. — Recovery Services, LLC, a recovery center that provides outpatient alcohol and drug services in Louisville, Kentucky, agreed to pay $300,000 to resolve civil allegations that it violated the False Claims Act, a federal law that prohibits causing the submission of false or fraudulent claims to the federal government.

According to the settlement agreement, the United States alleged that Recovery Services, formerly known as Recovery Chestnut, billed Kentucky Medicaid for urine drug screens for patients who did not receive individualized medical assessments.  Kentucky Medicaid only pays for urine drug screens that are individualized to each patient for their medical diagnosis or treatment.  The United States also alleged that Recovery Services billed Kentucky Medicaid for urine drug screens for residential patients, despite only being licensed to provide outpatient services.  Kentucky Medicaid does not pay for residential services, including urine drug screens, performed by outpatient providers.

The United States encourages anyone with information about the improper billing of urine drug testing, or about other potential fraud, abuse, or mismanagement of Medicare or Medicaid funds, to please call the U.S. Department of Health and Human Services’ hotline at 800-HHS-TIPS (800-447-8477). 

The case against Recovery Services was investigated by the United States Attorney’s Office for the Eastern District of Kentucky; the U.S. Department of Health and Human Services, Office of Inspector General; and the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse Control.  Assistant United States Attorney Meghan Stubblebine represented the United States.

The settlement resolves claims alleged by the United States; there has been no determination of liability.

-END-

A federal jury in the Eastern District of Kentucky convicted a dentist yesterday for unlawfully prescribing opioids, including unlawfully prescribing morphine that caused his patient’s death.

According to court documents and evidence presented at trial, Dr. Jay M. Sadrinia, 60, of Villa Hills, Kentucky, owned and operated dental clinics in Crescent Springs. Despite clear signs – including being told explicitly that his prescribing of controlled substances was dangerous and put his patients’ lives at risk – Sadrinia prescribed powerful opioids to his patients for routine dental procedures.

Sadrinia unlawfully prescribed morphine to one patient, which caused the patient’s death. He charged $37,000 for dental procedures and prescribed the patient medically unnecessary quantities of narcotics, including morphine. Several days later, the patient fatally overdosed on the morphine.

Sadrinia was convicted of one count of unlawful distribution of controlled substances resulting in death and one count of unlawful distribution of controlled substances. He is scheduled to be sentenced on Dec. 13. He faces a mandatory minimum of 20 years in prison and a maximum penalty of life in prison on the unlawful distribution of controlled substances resulting in death count, and a maximum penalty of 20 years in prison on the unlawful distribution count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and DEA Administrator Anne Milgram made the announcement. 

The FBI and DEA investigated the case.

Assistant Chief Katherine Payerle and Trial Attorney Thomas D. Campbell of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in late 2018, ARPO has partnered with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout Alabama, Kentucky, Ohio, Virginia, Tennessee, and West Virginia to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. Over the past three years, ARPO has charged over 115 defendants collectively responsible for issuing prescriptions for over 115 million controlled substance pills. To date, more than 84 ARPO defendants have been convicted. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

LEXINGTON, Ky. – The Justice Department today announced a settlement agreement with Madison County Schools in Kentucky to resolve its investigation into complaints of serious and widespread racial harassment of Black and multi-racial students. The department opened its investigation in October 2021 under Title IV of the Civil Rights Act of 1964.

The department’s investigation uncovered numerous incidents of race-based harassment in which Black and multi-racial students were called the N-word, among other racial epithets, and subjected to other derogatory racial comments by their peers. The school district did not consistently or reasonably address the harassment, which included racial taunts and intimidation, and was at times reinforced by use of Confederate flags and imagery. When the district did respond, it often failed to follow its own racial harassment policies and its actions were ineffective in addressing the broader hostile environment. This inaction deprived Black and multi-racial students of equal access to the district’s educational opportunities and led them to conclude that the district either condoned the beavior or would not take any action to help them. 

“Schools should be safe and supportive environments for all students, not places where they face racist harassment and abuse. Racial harassment inflicts grievous harm on young people and violates the Constitution’s most basic promise of equal protection,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement will create the institutional changes needed to keep Black and multi-racial students safe and to provide them with a supportive educational environment. We look forward to Madison County Schools demonstrating to its students and school community that it will no longer tolerate racial discrimination in its schools.”

“The principles underpinning this investigation and settlement are straightforward,” said United States Attorney Carlton S. Shier, IV for the Eastern District of Kentucky.  “All young people are entitled to seek their educational opportunities without facing racial harassment and abuse, and schools simply must adequately protect those entrusted to their care and instruction from that offensive, harmful behavior.  With this settlement, Madison County Schools are now taking an important step consistent with those basic principles.”  

Under the agreement, Madison County Schools will retain a consultant to review and revise anti-discrimination policies and procedures and support the school district as it undertakes significant institutional reforms. Among other steps, Madison County Schools will:

• Create a new central office position to process complaints of race discrimination;
• Update its racial harassment and discipline policies to more accurately track and consistently respond to complaints of race-based harassment;
• Train staff on how to identify, investigate, and respond to complaints of racial harassment and discriminatory discipline practices;
• Inform students and parents of how to report harassment and discrimination;
• Update its centralized, electronic reporting system to track and manage complaints and the district’s response to complaints;
• Implement focus groups, surveys, training and educational events on identifying and preventing race discrimination, including discriminatory harassment; and
• Analyze and review discipline data and amend policies to ensure non-discriminatory enforcement of discipline policies.

Protecting the constitutional rights of public school students is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.

Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.

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ASHLAND, Ky. — An Ashland man, Gary R. Rowe, 49, was sentenced on Monday to 262 months in federal prison, by U.S. District Judge David Bunning for armed drug trafficking charges.

Rowe pleaded guilty in November 2022, to possession with intent to distribute 50 grams or more of methamphetamine, 2 counts; possession of methamphetamine less than 50 grams; possession with intent to distribute 10 grams or more of a fentanyl analogue (fluorofentanyl); possession with intent to distribute 40 grams or more of fentanyl, 3 counts;  possession of a firearm by a convicted felon, 2 counts; and possession of a firearm in furtherance of drug trafficking.  Rowe qualifies as an Armed Career Criminal and a Career Offender.

 In September 2021, law enforcement received information that Rowe was distributing large quantities of narcotics in Boyd County.  During the investigation, law enforcement seized 163 grams of methamphetamine, 165 grams of a fentanyl analogue (fluorofentanyl), and 91 grams of fentanyl from Rowe.  Law enforcement also seized two firearms and Rowe admitted that he possessed a firearm in furtherance of his drug trafficking crimes.  Rowe is a convicted felon and since 2001 has been convicted on eight occasions of trafficking in a controlled substance. 

Rowe pleaded guilty in November 2022.

Under federal law, Rowe must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for eight years.

Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky and Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division, jointly announced the sentence.

The investigation was conducted by ATF and the Northeast Kentucky Drug Task Force. The United States was represented by Assistant U.S. Attorney Cynthia Rieker.

-END-

LEXINGTON, Ky. — A Lexington man, Keon Lamont Lee, 32, was sentenced on Friday to 480 months in federal prison, by Chief U.S. District Judge Danny Reeves, for distribution of fentanyl resulting in an overdose death.  

According to his guilty plea, in February of 2021, Lee illegally provided fentanyl to an individual identified as F.E., who overdosed and died.  Lee had obtained two bags of controlled substances from his dealer – one containing cocaine, the other fentanyl.  Lee regularly sold cocaine to the victim.  Intending to distribute cocaine, Lee instead distributed fentanyl to the victim, who used the drug, overdosed, and died.  Text messages from both the victim’s and Lee’s phones confirmed these events, and Lee provided a full confession to law enforcement.

Lee pled guilty during his jury trial, in January 2023.

“This case illustrates the reasons why illicit drug trafficking remains such a threat to our community,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “It demonstrates just how dangerous fentanyl is – potentially lethal in the 2mg range – and highlights the common truth that drug users have no idea what they are buying.  Whether by mistake, dangerous mixtures with other drugs, or counterfeit pills, users are often seeking one drug but receiving others, with grave results.  Fortunately, this case can also illustrate that those who illegally traffic in these dangerous drugs face prosecution and real consequences for their conduct.”

Under federal law, Lee must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for four years.

Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.

The investigation was conducted by the DEA and Lexington Police Department.  The United States was represented by Assistant U.S. Attorney Todd Bradbury.

-END-

PIKEVILLE, Ky. – Black Diamond Coal Company, LLC and Walter Perkins, a certified dust examiner, were sentenced on Thursday for violating the Mine Safety and Health Administration’s (MSHA) regulations requiring accurate respirable coal-dust-sampling in underground coal mines.  Black Diamond was sentenced for submitting false samples and Perkins was further sentenced for lying to MSHA special investigators.

Respirable coal dust causes pneumoconiosis or “black lung” disease in coal workers.  Black lung is a progressive and irreversible disease leading to lung failure and death.  However, it is preventable, by reducing the levels of respirable coal dust miners are exposed to while in the mines.

According to court documents, on October 6 and 7, 2020, Black Diamond Coal submitted dust-sampling results to MSHA for its required quarterly sampling.  Those results were abnormally low and led to inquiries from the MSHA Barbourville District Office.  On October 8, 2020, MSHA inspectors and investigators visited the Black Diamond Number 1 mine in Floyd County.  There, they found the company’s continuous personal dust monitor (CPDM) running on the surface, in a first aid trailer.  The CPDM should be worn by a miner underground, as he worked his normal shift, to accurately sample the coal dust underground.

A forensic analysis of the CPDM confirmed that it had not moved in days, despite Black Diamond submitting dust samples claiming it was conducting its required sampling underground, in accordance with MSHA’s mandatory health and safety regulations.

Perkins was employed by Black Diamond and was certified by MSHA as a dust-examiner. As part of his certification, he was trained by MSHA on how to properly conduct the required dust-sampling.  When confronted with the CPDM running in the first aid trailer, Perkins claimed that he had given the CPDM to miner operating the continuous mining machine, but the operator had returned it to him stating that the CPDM had stopped working because of a fault.  That was false and Perkins later admitted that he never gave the CPDM to the miner operator and the device never experienced a fault.

“Enforcement of mandatory health standards is a top priority for me and this Administration,” said Assistant Secretary for Mine Safety and Health Chris Williamson. “The Mine Safety and Health Administration can only protect miners from the risk of developing black lung disease if it has accurate sampling results. Given the troubling spike in black lung cases in Appalachia, we must hold accountable those who choose not to comply with the law and put miners’ health and lives at risk.”

Black Diamond was sentenced to pay a fine of $200,000 and to two years of probation. Further, because there is no immediate way of knowing whether any miners may develop black lung because of dust overexposure, Black Diamond was ordered to pay restitution of $400 to any miner who is no longer employed in the mining industry – meaning they no longer have access to free black lung screenings – to obtain their own screenings.  This restitution for miners exposed to unknown respirable dust levels, after a company falsified the dust-sampling, is the first of its kind.

Perkins, 45 of Harlan County, was sentenced to a 12-month split sentence, with 6 months to be served in prison and 6 months to be served in home detention, followed by one year of supervised release to follow.

“The purpose of these safety regulations is to prevent a progressive and irreversible disease,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “If employers falsify the dust sampling, not only are they are violating the law they are dramatically reducing the safety of their employees.  That is simply unacceptable, and compelled us to prosecute this case.”

“Mine operators bear the responsibility for the safety and health of the miners they employ, and when operators avoid their legal obligation, the U.S. Department of Labor will use its enforcement powers to hold them accountable,” said Solicitor of Labor Seema Nanda. “We thank the United States Attorney’s Office for partnering with us to enforce critical health regulations designed to prevent black lung.”

The investigation of the case was conducted by MSHA’s Barbourville District Office. Assistant United States Attorney Emily Greenfield and Special Assistant United States Attorney Jason Grover, from the Department of Labor, represented the United States.

– END –

LEXINGTON, Ky.— A Madison County man, Donald Caudy, III, 43, was sentenced to 30 years in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after pleading guilty to one count of using a minor to create visual depictions of a minor engaging in sexually explicit conduct.

The investigation began in May 2022, when the Michigan State Police were investigating an individual suspected to be involved in crimes involving the possession of child pornography.  While reviewing evidence obtained in that case, law enforcement discovered that the individual from Michigan had received multiple sexually explicit images of the same child, from another individual, and had been involved in chat conversations involving graphic discussion of the sexual assault of children. 

The investigation ultimately revealed that the person responsible for sending the images of the minor and engaging in the graphic chats with the Michigan suspect was Donald Caudy, III, who resided in Madison County, Kentucky.  During a search of Caudy’s electronic devices, multiple sexually explicit images of a four-year-old child were discovered.  The images were the same images that had been distributed to the suspect in Michigan.  Caudy admitted that he was responsible for creating the sexually explicit images and, ultimately, distributing them to the suspect in Michigan. 

 Caudy pled guilty in February 2023.

Under federal law, Caudy must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for twenty years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations - Nashville; and Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.

The investigation was conducted by HSI and the KSP.  The United States was represented by Assistant U.S. Attorney Erin Roth.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

– END –

LEXINGTON, Ky.— Benjamin Norman Joseph Flanigan, 27, and Haleigh Breanne Flanigan, 27, of Lexington, were sentenced to federal prison on Thursday, by U.S. District Judge Karen K. Caldwell.  Benjamin Flanigan pled guilty to drug distribution and conspiracy to commit drug distribution and was sentenced to 18 months.  Haleigh Flanigan also pled guilty to was  conspiracy to commit drug distribution and conspiracy to commit money laundering and was sentenced to 48 months.

According to both Flanigans’ plea agreements, they admitted to participating in a darknet market drug trafficking organization, operating under the moniker PartyCrew.  The darknet is an overlay of the internet that is only accessible through certain software, configurations, or authorization.  Access to the darknet is designed to anonymize the user, and it is mostly used for illicit purposes.  Marketplaces on the darknet are used to buy and sell illicit goods and services.  The PartyCrew darknet marketplace posting advertised the sale of multiple controlled substances in exchange for cryptocurrencies such as Monero and Bitcoin.  For their part, the Flanigans fulfilled orders for controlled substances, by packaging and mailing them through the U.S. mail to customers across the United States.  Haleigh Flanigan received payment for her services in cryptocurrencies, which she further attempted to conceal through the use of cryptocurrency anonymizing tools. 

The prosecution included a third member of the conspiracy, Joshua Cook, who has pled guilty to the same offenses as Haleigh Flanigan and is scheduled to be sentenced on July 25, 2023.  It also amounted to a total dismantling of the PartyCrew drug trafficking organization.

Benjamin and Haleigh Flanigan pled guilty in February of 2023.

Under federal law, the Defendants must serve 85 percent of their prison sentences; and upon their release from prison, they will be under the supervision of the U.S. Probation Office for 3 years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and J. William Rivers, Special Agent in Charge for the Federal Bureau of Investigation-Cincinnati, jointly announced the sentence.

The investigation was conducted by the FBI.  The United States was represented by Assistant U.S. Attorneys Kathryn Dieruf and Emily Greenfield.

– END –

COVINGTON, Ky. – An Alabama man, residing in Ludlow, Ky., Terrill Goods, 45, was sentenced to 420 months in federal prison on Wednesday, by U.S. District Judge David Bunning, for his role in a conspiracy to distribute methamphetamine and cocaine, as well as for possession of a firearm by a convicted felon and possession of a firearm in furtherance of drug trafficking.

In December 2022, a federal jury in Covington found Goods guilty of all charges against him, following a five-day trial.  Goods’ co-defendant, Deon Coulter, 38, of Northern Kentucky had previously pled guilty, and was sentenced to 248 months in federal prison, for the same conspiracy, as well as for possession of fentanyl with the intent to distribute and possession of a firearm in furtherance of drug trafficking.  

According to evidence presented at trial, between October 2021 and January 2022, Goods and Coulter conspired to distribute large quantities of methamphetamine, as well as cocaine, in the Eastern District of Kentucky.  Law enforcement made multiple controlled buys of methamphetamine, as well as one controlled buy of cocaine, from Goods and Coulter.  They also seized approximately 2000 pills containing fentanyl and multiple firearms during execution of search warrants on Goods’ and Coulter’s respective residences.

Under federal law, Goods and Coulter must serve 85 percent of their respective prison sentences.  Upon their release from prison, they will each be under the supervision of the U.S. Probation Office for 10 years.

Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Orville O. Greene, Special Agent in Charge, DEA Detroit Field Division, and Director Scott Hardcorn, Northern Kentucky Drug Strike Force, jointly announced the sentences.

The investigation was conducted by the DEA and the Northern Kentucky Drug Strike Force.  The United States was represented by Assistant U.S. Attorneys Andrew A. Spievack and Elaine K. Leonhard.

– END –

The U.S. Attorney’s Office for the Eastern District of Kentucky is aware of the Scott County shooting incident involving law enforcement and the related incidents in Fayette County that occurred yesterday afternoon. As the investigation of these incidents progresses, we stand with our local and state law enforcement partners. We are offering our support and federal resources to assist in the investigation. Our thoughts are with everyone impacted by these tragic events, especially the family members, friends, and colleagues of Deputy Caleb Conley and those injured during the incidents.

LEXINGTON, Ky.— A Stanford, Ky., man, Sean Ryan Reardon, 30, was sentenced to 292 months in federal prison on Monday, by Chief U.S. District Judge Danny Reeves, for enticing a minor to engage in sexually explicit conduct for the purpose of producing child pornography.

According to his plea agreement, Reardon met a minor victim in Fall 2019 and, in early 2020, started communicating with the victim via Snapchat.  Reardon admitted that had sexual contact with the victim, at his home and other locations, from July 2021 through March 2022, and that he captured pictures and videos of these encounters.  Reardon also admitted that he and the victim exchanged sexually explicit visual depictions through Snapchat and Google Duo.

Reardon pleaded guilty in February 2023.

Under federal law, Reardon must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.

Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; and Col. Phillip Burnett, Commissioner, Kentucky State Police, jointly announced the sentence.

The investigation was conducted by the FBI and Kentucky State Police.  The United States was represented by Assistant U.S. Attorney Mary Melton.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

– END –

LEXINGTON, Ky. - A Lexington investment advisor and attorney, Douglas Hawkins, was sentenced to 120 months in prison Tuesday, by U.S. District Judge Karen Caldwell, for investment advisor fraud, securities fraud, and two counts of mail fraud.

According to the evidence at trial, while operating as an investment advisor, Hawkins encouraged his clients to invest in securities that were properties in Jackson, Mississippi.  Clients invested over $2 million in the properties.  While encouraging these investments, Hawkins withheld vital information about the properties from his clients, including that many were uninhabitable, had burdensome rent collection, and were often subject to theft and vandalism.  He also failed to inform his clients that their investment money would be used for purposes other than their properties, including paying other investors and buying a Harley Davidson for an employee.

Hawkins was convicted in February 2023.

In addition to his prison sentence, Hawkins was ordered to pay $1,588,048.50 in restitution. Under federal law, Hawkins must serve 85 percent of his prison sentences. Upon his release from prison, Hawkins will be under the supervision of the U.S. Probation Office for three years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service; and Justin Malcom Burse, Acting Commissioner, Kentucky Department of Financial Institutions, jointly announced the sentencing.

The investigation was conducted by the United States Postal Inspection Service and Kentucky Department of Financial Institutions.  The United States was represented in the case by Assistant U.S. Attorneys Andrea Mattingly-Williams and Will Moynahan. 

— END —

LEXINGTON, Ky. — A Lexington man, Craig Dupree Robertson, 34, was sentenced on Monday to 490 months in federal prison, by Chief U.S. District Judge Danny Reeves for his role in a large-scale methamphetamine and fentanyl trafficking conspiracy.

According to court documents, from October 2020 until September 2021, Robertson and his co-defendants conspired to distribute large quantities of methamphetamine and fentanyl in the Eastern District of Kentucky.  The defendants maintained “stash” residences, throughout Lexington, to store and distribute the drugs.  Law enforcement made multiple controlled buys of methamphetamine and fentanyl from the co-defendants, as well as seizing ounce and pound quantities of the drugs during traffic stops and through search warrants.

On September 23, 2021, law enforcement executed search warrants at several of the “stash” locations.  At one such residence, law enforcement agents seized approximately 957 grams of fentanyl, 418 grams of methamphetamine, a money counting machine, two firearms, two digital scales, a metal press used to manufacture controlled substances, vacuum seal bags, and other items pertaining to the manufacturing and distribution of controlled substances.  At a second “stash” location, a storage unit, agents seized 15 pounds of methamphetamine.  On many of the occasions from October 2020 to August 2021, the defendants would deposit drug proceeds into bank accounts for transfer of those proceeds to other co-conspirators via mobile transfer applications, in order to continue to operate their drug trafficking activities.

Robertson’s co-defendants were sentenced to the following, for their roles in the conspiracy:

• Brenda Nicole Fugate received 165 months;
• Casey Ryan Creech received 180 months;
• Tony Christopher Fugate received 84 months;
• Houston Paul Johnson received 230 months;
• Pamela Smith Baker received 120 months;
• Angela Marie Halsey received 94 months;
• Michael Dustin Johnson received 115 months;
• Patricia Ann Morgan received 96 months;
• Curtis Dewayne Miller received 320 months; and
• Carl Hunt received 188 months.

Under federal law, Robertson and his co-defendants must serve 85 percent of their prison sentences.  In addition to their prison sentences, each will be under the supervision of the U.S. Probation Office for five years – with the exception of Morgan, who will be under supervision for three years.  Upon his release from prison, Robertson will be under the supervision of the U.S. Probation Office for life.

Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service Pittsburgh Field Division; Commander Kalan Perdue, Gateway High Intensity Drug Trafficking Area (HIDTA); and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentences.

The investigation was conducted by ATF, DEA, USPIS, and Gateway AHITDA Task Force, with assistance from Lexington Police Department. The United States was represented by Assistant U.S. Attorneys Todd Bradbury and Cynthia Rieker.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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LEXINGTON, Ky. — Two Kentucky-based businesses involved in performing urine drug tests for the family court system have agreed to collectively pay $1,740,620 to resolve civil allegations that they improperly billed those tests to Medicare and Kentucky Medicaid.

Blue Waters Assessment and Testing Services, LLC (“BATS”) is a Lexington-based business that provides services relating to urine drug testing, including the collection of specimens from individuals who were ordered by the Fayette County family courts to receive such testing as part of their court cases.  BATS sent the specimens to VerraLab JA, LLC, a clinical laboratory based in Louisville that does business under the name BioTap Medical (“BioTap”).  BioTap performed the urine drug tests and billed them to Kentucky Medicaid and Medicare.

Billing these tests to Kentucky Medicaid and Medicare violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims for payment to the federal government, because Medicaid and Medicare only pay for laboratory tests used for purposes of medical diagnosis or treatment.  Medicare and Medicaid – as federally-funded health insurance programs – do not pay for tests performed for non-medical reasons, such as those that are performed only to satisfy a court order.  In fact, Medicaid’s regulations explicitly prohibit reimbursement for laboratory tests, such as urine drug tests, that were ordered by a court.

The Government alleged that BioTap knew that the urine drug tests at issue were court-ordered, and not used for medical diagnosis or treatment, but billed those tests to Medicare and Medicaid anyway.  As a result, BioTap received reimbursements from Medicare and Medicaid to which it was not entitled.  Under the terms of the Settlement Agreements, BioTap agreed to pay $1,490,620 to resolve allegations it submitted false claims. BATS and its owner, David Waters, agreed to pay $250,000 for their alleged roles in causing the submission of false claims; the settlement with BATS and Waters was pursuant to the Department of Justice’s inability-to-pay policy.

“The federal Medicaid and Medicare programs are designed – and funded – to provide health care benefits to eligible individuals with a medical necessity,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “These lab tests were not medically necessary and were improperly billed to these programs.  It is important to all of us that steps are taken to return such misapplied funds to their appropriate purpose – providing medical care.”

“Submitting false claims to Medicare or Medicaid wastes taxpayer dollars and undermines the integrity of those programs," said Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to ensuring that those who attempt to take valuable resources away from their intended recipients are held accountable.”

The settlements resolve a lawsuit brought by two private citizens under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery.  As part of this resolution, the individuals who filed the qui tam complaint will receive approximately $295,000 from the settlements.

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Affirmative Civil Enforcement section of the U.S. Attorney’s Office.  Assistant United States Attorney Christine Corndorf represented the United States.

This case is captioned United States ex rel. Nam Nguyen & Misty Nall v. Blue Waters Assessment & Testing Services, LLC; Crossroads Counseling Services, Inc.; David Waters; and VerraLab JA, LLC, Case No. 5:21-CV-00297-DCR. The claims resolved by the settlements are allegations only, and there has been no determination of liability.

– END –

LEXINGTON, Ky.— A Georgetown, Ky., man, Tyler Brady Lawson, 26, has been indicted by a federal grand jury on two counts of production of child pornography, one count of possession of child pornography, and one count of possession of visual representations of the sexual abuse of children.  

The indictment alleges that on March 9, 2023, Lawson knowingly possessed visual depictions that involved minors engaging in sexually explicit conduct, as well as visual representations (e.g., computer-generated images) of the sexual abuse of children.  The indictment also alleges that, in February 2022 and again in June 2022, Lawson coerced two minor victims to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Chief Darin Allgood, Georgetown Police Department, jointly announced the indictment.

The investigation preceding the indictment was conducted by FBI Louisville and Georgetown Police Department.  The indictment was presented to the grand jury by Assistant U.S. Attorney Mary Melton. 

Lawson appeared in court for his arraignment on Wednesday.  For each production charge, he faces a minimum of 15 years in prison and a maximum of 30 years.  For each possession charge, he faces up to 20 years in prison.  However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

            Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.

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LONDON, Ky. — A former Clarksville, Tenn., physician, John Stanton, 51, was sentenced on Thursday, April 13, to 120 months in federal prison, by U.S. District Judge Robert Wier, following his conviction for conspiring to unlawfully distribute controlled substances.

According to evidence presented at his trial, Stanton was a licensed physician and Medical Director at Gateway Medical Associates in Tennessee, which was registered as a pain management clinic.  Evidence established that Stanton worked with John Maccarone, the owner of GMA, to prescribe controlled substances, often a combination of oxymorphone and oxycodone, to individuals who presented as patients to GMA.  These individuals exhibited signs of diversion and abuse, such as repeatedly failing drug tests and displaying mental health issues.  In prescribing in this manner, Stanton failed to adhere to accepted professional standards for prescribing controlled substances for the treatment of chronic pain.

Also, testimony at trial established that patients who were being treated by Stanton and Maccarone exhibited obvious signs of drug diversion and abuse, traveling more than four hours each way to GMA, from southern and eastern Kentucky, and waiting 10 hours or more to be seen. Patients often failed urine drug tests and avoided “mandatory” pill counts by paying a “no show fee.”  GMA patients often paid more than $400 in fees (typically paid by prepaid debit card) to the clinic for each visit.  At trial, the evidence also revealed that GMA served as a source of supply for drug traffickers during the conspiracy.

Stanton was convicted at trial in August 2022.

Stanton’s co-defendants were sentenced to the following, for their roles in the conspiracy:

• Dr. James Maccarone was sentenced to 84 months in prison and ordered to forfeit his GMA property, approximately $204,000 held in bank accounts, to pay a $1.3 million money judgment, and to forfeit his medical license;

• Jeffrey Ghent was sentenced to 60 months in prison and ordered to pay a $150,000 money judgment;

• Terry Prince was sentenced to 68 months in prison, three years of supervised release, and ordered to pay a $250,000 money judgement.

Under federal law, Stanton and his co-defendants must serve 85 percent of their prison sentences.  Upon his release from prison, Stanton will be under the supervision of the U.S. Probation Office for three years.  In addition to his prison sentence, Stanton was ordered to forfeit $318,300, forfeit his medical license, and pay a $100,000 fine.

Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; and J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division; Daniel Cameron, Kentucky Attorney General; Col. Phillip Burnett, Commissioner, Kentucky State Police; and David Rausch, Director, Tennessee Bureau of Investigation; jointly announced the sentence.

This case as investigated, in part, by members Operation UNITE. The investigation was conducted by the DEA, the Kentucky Office of Attorney General, the Tennessee Bureau of Investigation; and the London Police Department, with assistance from the Lake Cumberland Area Drug Task Force, Clarksville, Tennessee Police Department, Clay County Sheriff’s Office; and Knox County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew Smith.

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COVINGTON, Ky. – The former administrative manager for the City of Covington Public Works Department, Allison Donaldson, 50, of Covington, pleaded guilty on Friday, before U.S. District Judge David Bunning, to wire fraud and aggravated identity theft.

Donaldson was employed as an administrative manager for the Public Works Department, from 2005 until 2022, and had access to credit card information for the department.  Her plea agreement explains that starting in February 2020 and continuing until February 2022, Donaldson knowingly defrauded the City of Covington, by using employee credit cards and making over $150,000 in purchases for herself and her home.  Some of the purchases listed in the plea agreement include repairs for a Mercedes Benz, a Louis Vuitton agenda, a Chanel tote, Crate & Barrel furniture, and a remodel to her master bedroom and garage.

Donaldson was indicted in September 2022.

“Any time public servants turn to greed and misappropriate public funds, it does serious damage,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “Not only does it deprive communities of necessary – and often very limited – resources, but it severely erodes the trust that communities place in their government.  Her conduct was an egregious betrayal, for which she now faces the consequences.  The dedicated efforts of our law enforcement partners made this important prosecution possible, and was the first step in repairing the damage to the Covington community.”

United States Attorney Shier; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Daniel Cameron, Kentucky Attorney General; and Spike Jones, Chief of the Kenton County Police Department, jointly announced the guilty plea.

The investigation preceding the indictments was conducted by the FBI, the Kentucky Attorney General’s Department of Criminal Investigation, and the Kenton County Police Department.  The United States was represented by Assistant U.S. Attorney Kyle Winslow.

Donaldson is scheduled to be sentenced on September 8.  She faces up to 20 years for the wire fraud charge; she faces up to two years, run consecutively on the aggravated identity theft charge; and she faces criminal judgments for restitution and forfeiture of the property attained through the fraud.  Any sentence, however, will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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PIKEVILLE, Ky. - A Beauty, Ky., man was convicted on Wednesday. by a federal jury sitting in Pikeville. of six counts of child pornography-related offenses.

After two hours of deliberation, following a three-day trial, the jury convicted Donald York, 60, for four counts of the production of child pornography and two counts of receiving child pornography.

According to the evidence presented, York used a minor female victim to engage in sexually explicit conduct, for the purpose of producing images of that conduct.  The United States further established that York uploaded some of the victim’s photos to a pornographic website.

York was indicted in June 2022.    

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Sheriff John Kirk, Martin County Sherriff’s Office, jointly announced the conviction.

The investigation was conducted by FBI, KSP, and the Martin County Sherriff’s Office.  The United States was represented in the case by Assistant U.S. Attorneys Justin Blankenship and Jason Parman.

York will appear for sentencing on August 24, 2023.  He faces a minimum of five years, up to 20 years in prison, on each count of conviction.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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LEXINGTON, Ky. - Two additional individuals, Jerrard McVey, 48, and Linda McVey, 42, both of Carlisle, Ky, were sentenced on Tuesday to 12 months and a day in federal prison, by U.S. District Judge Karen Caldwell, for conspiracy to knowingly sponsor and exhibit animals in an animal fighting venture, in connection with the Valley, a chicken pit on the border of Nicholas and Fleming Counties.

According to their plea agreements, the McVeys, conspired with others, including Walter Mitchell, 48, of Ewing, Ky., to organize multiple animal fighting ventures in the form of cockfights at The Valley, located on the border of Nicholas and Fleming Counties. Specifically, on July 30, 2021, the McVeys and others organized and managed an animal fight that included at least a dozen entries in a 5-cock fight, and approximately 100 attendees.

Jerrard McVey pleaded guilty in December 2022. Linda McVey pleaded guilty in November 2022. Mitchell was sentenced in March 2023, and he received six months in prison and one year of supervised release.

In total, eleven individuals have now been sentenced to federal prison for their participation in animal fighting offenses in the Eastern District of Kentucky.  Four other individuals were sentenced to home detention or federal probation.

In March 2023, Cruz Alejandro Mercado-Vazquez, 43, of Maysville, Ky, was sentenced to 15 months incarceration, 3 years supervised release, and a $10,000 fine, for attempting to bribe the Mason County Sheriff to influence the Sheriff in connection with a planned animal fighting venture.

Timothy Sizemore, 43, of Manchester, Ky, was sentenced to 26 months incarceration, 2 years supervised release, and a $1,000 fine, for his role in running an animal fighting venture in Manchester, Ky, called Riverside, and an animal fighting venture in Pike County, Ky, called Blackberry.  His co-defendant in running Riverside, Millard Oscar Hubbard, 73, of Manchester, Ky, was sentenced to 12 months and one day incarceration, 2 years supervised release, and a $95,000 fine. A referee at Riverside, Justin Smith, 34, of Manchester, Ky, was sentenced to 1 month incarceration, 18 months supervised release, and a fine of $250.  The owner of the property on which Blackberry operated, Perry Hatfield, 58, was sentenced to 8 months home detention and 2 years supervised release.  Individuals who worked at Riverside, Beachel Collett, 30, of Oneida, KY, and Lester Collett, 26, of Manchester, Ky, were sentenced to 4 months home detention and 18 months supervised release. 

In another case involving an animal fighting operation in London, Kentucky, called Bald Rock, Rickie Johnson, 56, of London, Ky, was sentenced to 2 months in prison, followed by 8 months home incarceration, 2 years of supervised release, and a $1,000 fine, for his role in running Bald Rock.  Several individuals who fought roosters at Bald Rock were also sentenced.  Joshua Westerfield, 36, of London, Ky, was sentenced to 3 months in prison, 6 months home detention, and 2 years supervised release.  Dallas Cope, 35, of Livingston, Ky, and Bradley Cye Rose, 43, of Parkers Lake, Ky, were each sentenced to 14 days in prison, 9 months home detention, and 18 months supervised release.  Hiram B. Creech, Jr., 47, of East Bernstadt, Ky, was sentenced to a year of probation and a $2,000 fine for causing a minor to attend the animal fighting venture at Bald Rock. 

"Animal fighting ventures are cruel and illegal,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “We will continue to enforce federal animal cruelty laws and we commend the valuable assistance of all our law enforcement partners, whose dedicated work made these important convictions possible.”

United States Attorney Shier; Salina Walker, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Jodi Cohen, Special Agent in Charge, FBI Louisville Office; Colonel Phillip Burnett, Jr., Commissioner, Kentucky State Police; and Superintendent Rob Townsend, Indiana Gaming Commission, jointly announced the sentencings.

The investigation was conducted by USDA, FBI, KSP, and the Indiana Gaming Commission. The United States was represented by Assistant U.S. Attorneys Kate Smith and Andrea Mattingly-Williams. 

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LEXINGTON, Ky. – A Danville, Ky., man, Peter Alex Cox, 33, entered a guilty plea on Monday, before Chief U.S. District Judge Danny Reeves, to unlawful conversion of loan collateral.    

According to his plea agreement, starting in 2013, Cox obtained a line of credit from Central Bank Agricultural Credit Association, secured by the Farm Service Agency, part of the United States Department of Agriculture.  Between 2013 and 2018, Cox applied to increase his line of credit, until it reached $1,057,140.35 in 2018.  Cox pledged 800 beef and dairy cattle that he owned, as collateral to secure the loan.

Cox admitted in the plea agreement that, between May and October 2019, he sold his cattle to unapproved sellers, using a fictitious farm name, and did not apply the proceeds from the cattle sold to his debt.  He further admitted that his intention in using the fictious farm name was to prevent Ag Credit from receiving any of sales or profits of the sales.  Cox’s cattle sales totaled $1,106,701.17, without any payments made toward his loan and without providing any notice of the sales.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Salina Walker, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General, jointly announced the guilty plea.

The investigation was conducted by USDA.  The United States was represented by Assistant U.S. Attorney Kate K. Smith.

Cox is scheduled to be sentenced on July 14, 2023.  He faces a maximum of five years in prison and a maximum fine of $250,000.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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