Eastern District of Kentucky

PIKEVILLE, Ky.— A Belfry, Ky., man, Oscar Joshua Calhoun, 36, was sentenced to 375 months in federal prison on Monday, by U.S. District Judge Robert Wier, after pleading guilty to three counts of distribution of child pornography.

According to Court records, Calhoun admitted to engaging with others to exchange child pornography, through online platforms.  Calhoun’s distribution of child pornography involved numerous images of child pornography, and images involving children under the age of twelve.

Calhoun pled guilty to the charges, as set forth in the indictment, in May 2021.

Under federal law, Calhoun 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 life.

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

The investigation was conducted by the FBI.  The United States was represented by Assistant U.S. Attorney Nick Rabold.

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.— A Lexington man, Jeffrey Robinson, 35, was sentenced to 360 months in federal prison on Monday, by Chief U.S. District Judge Danny C. Reeves, for intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.           

According to Robinson’s plea agreement, law enforcement was contacted regarding a package containing narcotics that was sent to an inmate at Luther Luckett Correctional Complex in LaGrange, Ky., and the package was traced to Robinson.  Law enforcement executed a search warrant at Robinson’s address and found him in possession of one pound of methamphetamine, a quantity of heroin, MDMA, a large amount of cash, and a loaded firearm.  Robinson admitted he distributed the drugs and that he possessed the firearm in furtherance of the drug trafficking. 

Robinson pleaded guilty in September 2021. 

Under federal law, Robinson 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; 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. 

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 Detroit man, Edward Pryor Jr., was sentenced to 120 months in federal prison on Monday, by U.S. District Judge Karen Caldwell, after pleading guilty to possession with intent to distribute 40 grams or more of fentanyl and possession of a firearm in furtherance of drug trafficking.

According to Pryor’s plea agreement, in August 2020, law enforcement, found Pryor outside of a Lexington apartment building, with a backpack containing a Glock 42 gun, 55 grams of fentanyl, and 160 grams of methamphetamine.  Pryor admitted that he possessed more than 40 grams of fentanyl and he intended to distribute it to others.  Further, he admitted that he possessed the gun in furtherance of his distribution of drugs.

Pryor pleaded guilty in July 2021. 

Under federal law, Pryor 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; 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 David Kiebler.

This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.

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LEXINGTON, Ky.— A Mt. Sterling, Ky., man, Timothy Douglas Snedegar, 65, was sentenced to 36 months in federal prison on Monday, by U.S. District Judge Karen Caldwell, after previously pleading guilty to conspiring to commit wire fraud related to his participation in a scheme to defraud a private crop insurance company.

According to his plea agreement, between 2012 and 2015, Snedegar, who worked as a crop insurance adjuster, purported to follow proper adjustment procedures for adjusting claims of loss on private crop insurance policies, by verifying losses on Tobacco Test Sheets and through photographic evidence of the damage.  Instead, working with others (including Mike McNew, convicted and sentenced to 86 months’ incarceration) and in exchange for kickbacks, Snedegar helped agricultural producers submit false Tobacco Test Sheets and photographs of damage, from other farms.  Snedegar admitted to working with other adjusters in the area to share pre-filled Tobacco Test Sheets and photographs of damage.  Snedegar conceded he caused a private insurance company to pay out $2,294,693 in falsified claims of loss during the years in question.

Snedegar pleaded guilty in January 2021.

Under federal law, Snedegar 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 3 years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jason M. Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly made the announcement.

The investigations were conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency Special Investigations Staff, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance.  The United States was represented by Assistant United States Attorneys Kathryn Anderson and Erin Roth. 

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LEXINGTON, Ky.— A Carlisle, Ky., man, Earl Lee Planck, Jr., 62, was sentenced to 56 months in federal prison on Friday, by U.S. District Judge Karen Caldwell, after previously pleading guilty to conspiring to defraud the United States, crop insurance fraud, and tax evasion.           

According to his guilty plea agreement, between March 2010 and December 2015, Planck obtained federal crop insurance and private crop-hail insurance covering his own crops in his own name, his business’s name, and in the names of family members and neighbors.  During that time, he falsified documentation claiming losses by misrepresenting the amount of tobacco he produced.  He did so, in part, by obtaining crop insurance under nominee names, selling crop production under the names of fake and real people, and obtaining and submitting fake bills of sale and grade sheets.  Further, in agreement with insurers and adjusters, Planck obtained crop insurance covering crop on land that was incapable of growing crops.  Evidence at his sentencing established that he obtained federal crop insurance covering a wooded tract of land, almost every year from 2006 and 2013, often in the names of his friends and family members.  In total, Planck obtained $3,250,365 in federal crop insurance payments, which are funded by the taxpayers, and $2,815,821.69 in private crop insurance payments, for policies in his name, the name of his business, and the names of his family members and neighbors.  According to testimony at the sentencing, Planck also assisted other neighbors and family members in conducting their own crop insurance fraud, for a kickback.  In total, the Court found that Planck caused a total loss of more than $9 million, with more than $5.5 million of that from the United States.

In addition, Planck admitted that in 2014 when filing taxes, he reported his crop insurance proceeds, but he failed to report any income from sales of tobacco, when he was aware that he had substantial income from the sale of tobacco in the that year.  Planck admitted to signing his tax return under penalties of perjury, even though he knew his income was underreported on the tax return.  Records provided to the Court demonstrated that he underreported his income by nearly $1.9 million across Tax Years 2013 to 2015, resulting in an additional tax due and owing of $613,265.

Planck pleaded guilty in June 2021.

“This was a brazen and wide-ranging scheme that cost the taxpayers and private insurers millions of dollars,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “Not only did he commit massive fraud, over the course of many years, he corruptly obtained the assistance of insurers and adjusters, he assisted others to perpetrate their own fraud, and he evaded his income taxes.  Protecting the invaluable resources of crop insurance programs is absolutely critical, and this prosecution would not have been possible without the painstaking efforts of our law enforcement partners.” 

Under federal law, Planck 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 3 years.

United States Attorney Shier; Jason M. Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly made the announcement.

The investigations were conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency Special Investigations Staff, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance.  The United States was represented by Assistant United States Attorneys Erin Roth and Kathryn Anderson. 

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LEXINGTON, Ky.— A Lexington man, Robert W. Bledsoe, 57, was sentenced to 322 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after pleading guilty to possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 50 grams or more of methamphetamine, possession of firearm in furtherance of drug trafficking and possession of a firearm by a convicted felon.

According to Bledsoe’s plea agreement, in September 2020, law enforcement received information that he was trafficking narcotics from his residence.  After an investigation, law enforcement went to Bledsoe’s residence to serve a search warrant and found him in possession of a pistol, 76 grams of heroin, and 147 grams of methamphetamine.  Subsequently, officers also located another firearm, ammunition, drug trafficking paraphernalia, and a debt ledger.  Bledsoe further admitted that he was a convicted felon and was prohibited from owning a firearm.

Bledsoe was previously convicted of trafficking a controlled substance first degree, in the Fayette Circuit Court and of conspiracy to distribute oxycodone, in the U.S. District Court for the Eastern District of Kentucky.

Bledsoe pleaded guilty to the current charges in August 2021.

Under federal law, Bledsoe 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, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.

The investigation was conducted by the ATF and Lexington Police Department.  The United States was represented by Assistant U.S. Attorney Cynthia Rieker.

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 Versailles, Ky., man, Randall “Rocky” Blankenship, Jr., 49, pleaded guilty on Thursday, before U.S. District Judge Karen C. Caldwell, to a conspiracy to commit wire fraud to obtain Paycheck Protection Program loans under false pretenses.         

According to his plea agreement, in April 2020, Blankenship submitted four fraudulent applications for Paycheck Protection Program (PPP) loans for Blankenship RV Finance Solutions LLC, RSGG Properties LLC, RSGG Holdings LLC, and RSGG Investments LLC, all business entities he formed.  The Paycheck Protection Program was created as part of the CARES Act, a law passed in March 2020 in response to the COVID-19 pandemic.  Paycheck Protection Program loans were designed to provide an incentive for small businesses to keep workers on their payroll during the pandemic; these loans would be forgiven by the United States Small Business Administration, if the borrower established that loan proceeds were used for payroll, rent, or other approved business expenses.  The amount of the loan was dependent on the business’s payroll.

As part of his fraudulent PPP loan applications, Blankenship, with the assistance of a certified public accountant, created fake tax documents and payroll records indicating that his businesses had hundreds of thousands of dollars in quarterly payroll; when in fact, none of the entities had any payroll expense at all.  Blankenship submitted the applications through Kentucky Bank and Independence Bank; and as a result, he obtained fraudulent PPP loans totaling $1,323,829.  According to his plea, he used some of the funds for a RV business he owned (which had already received its own PPP loan and was ineligible for additional loans at the time), as well as personal use, including paying off casino debt and purchasing real estate.                              

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; Kathy Enstrom, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); and Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection (FRB), jointly announced the guilty plea.  The investigation was conducted by the FBI, FDIC-OIG, and FRB.  The United States was represented by Assistant U.S. Attorney Paul McCaffrey.

Blankenship is scheduled to be sentenced on March 17, 2022. Blankenship agreed to pay restitution of $1,323,829.  He faces a maximum of twenty years in prison, a fine of not more than $250,000, and supervised release of not more than three years.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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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PIKEVILLE, Ky. – A Prestonsburg, Ky., man, James A. Newsome, 46, pleaded guilty on Wednesday, before U.S. District Judge Robert Wier, to distribution of methamphetamine and a mixture of heroin and fentanyl, and possession of a firearm in furtherance of a drug trafficking crime.  

According to Newsome’s plea agreement, on October 20, 2020, he admitted to selling over six grams of methamphetamine and one gram of a fentanyl-laced heroin mixture, to a confidential informant, from his residence.  During the transaction, Newsome removed a .45 caliber firearm, from under the pillow on his bed; he proceeded to remove the safety pin from the gun, to show the informant the gun; and he appeared to place a round in the chamber.

Newsome was indicted in August 2021. 

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Division; and Chief Randy Woods, Prestonsburg Police Department, jointly announced the guilty plea.

The investigation was conducted by the FBI and Prestonsburg Police Department.  The United States was represented by Assistant U.S. Attorney Nicholas Rabold.

Newsome’s sentencing date has yet to be scheduled.  For the drug charge, he faces a maximum of 30 years in prison.  For the firearm charge, he faces a minimum of five years, up to life, to run consecutively to the other charge.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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 Lexington man, Marcus Jones, 40, was sentenced to 220 months in federal prison on Monday, by Chief U.S. District Judge Danny C Reeves, for conspiracy to distribute 50 grams or more of methamphetamine and distribution of 50 grams of methamphetamine.  

According to Jones’ plea agreement, beginning in December 2018 and continuing through April 2019, law enforcement utilized a confidential informant to purchase methamphetamine through Jones and DeAngelo Smith, 36, of Detroit.  During the investigation, law enforcement were able to determine that Jones and Smith were working together and with others to distribute methamphetamine.  The amount of methamphetamine attributable to Smith and Jones is at least 50 grams.

Smith, 36, was previously sentenced in April 2021 to 160 months for his role in the offenses.

Jones pleaded guilty in April 2021. Smith pleaded guilty in January 2021.  

Under federal law, Jones and Smith must serve 85 percent of their prison sentences. Upon release from prison, Jones and Smith 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; and Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; jointly announced the sentence.

The investigation was conducted by ATF and Gateway Area High Intensity Drug Trafficking Area (HITDA) Task Force.  The United States was represented by Assistant U.S. Attorney Cynthia Rieker.

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 Lexington man, Subhadarshi Nayak, 49, was sentenced to 6 months in federal prison and 6 months of home detention on Monday by Chief U.S. District Judge Danny C. Reeves, for conspiracy to commit wire fraud and wire fraud.  The matter of restitution is set for a hearing in February 2022.

According to his plea agreement, Nayak was a co-owner of the company ScienceTomorrow.  In late 2013, Nayak electronically submitted a false proposal, to maximize a DOE Phase II SBIR grant from the U.S. Department of Energy.  Specifically, he inflated the budget a university in Tennessee had provisionally authorized in support of the project and, as a result of this misrepresentation, the DOE awarded a grant to ScienceTomorrow.  Nayak admitted he knew, upon receipt of the award, they would have to finalize a contract with the university to match the false budget provision, but they could not justify the inflated budget with the university and never finalized a contract with the institution, as of the day he abandoned the company in August 2014. Nayak intentionally took no steps to notify the DOE or correct this material misrepresentation in the ScienceTomorrow proposal. 

Separately, Nayak also admitted he obtained a $100,000.00 EPA contract for his solely owned business, Qmetry, under false pretenses.  Working alone, to induce the EPA to award him the contract, he falsely certified Qmetry had an agreement with a  university and professor to complete specific work, when he did not.  After certifying all funds had been spent according to the contract, Nayak also unlawfully retained $46,564.61 of EPA funding for the project, well after the close of the period of performance.

Nayak pleaded guilty in August 2021.

“Government grants are critically important to furthering countless community goals,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “When individuals fraudulently obtain and misuse these valuable – and often scarce – resources, we all suffer the loss.  We are committed to doing our part to protect these valuable resources from fraud, waste, and abuse, and to pursuing those who illegally prey on these important funds.

“The EPA Office of Inspector General is steadfast in our efforts to preserve the integrity of the SBIR program by aggressively rooting out attempts to defraud the U.S. government and taxpayers,” said EPA Inspector General Sean W. O’Donnell. “Today’s sentencing is the fruition of our commitment to ensuring that SBIR awardees are held accountable. I would like to thank our investigators and our law enforcement partners for their efforts and hard work on this case.”

“Small Business Innovation Research and Small Business Technology Transfer grants are valuable tools for furthering high profile research and development at the Department of Energy,” said Department of Energy Inspector General Teri L. Donaldson.  “It is critical that we hold anyone who abuses these grants accountable, and we are thankful to our law enforcement partners and to the U.S. Attorney’s Office for their efforts in maintaining the integrity of these programs.  The Office of Inspector General remains committed to protecting these programs, as well as all Departmental programs, to allow the generation of scientific breakthroughs and technological innovations.”

Under federal law, Nayak must serve 85 percent of his prison sentence, and upon his release from prison 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; Sean Earle, U.S. EPA, Acting Deputy Assistant Inspector General for Investigations; Teri L. Donaldson, U.S. Department of Energy Inspector General; and Cynthia Bruce, Special Agent in Charge, Defense Criminal Investigative Service, U.S. Department of Defense, jointly announced the sentence.

The investigation was conducted by the EPA-OIG, DOE-OIG, and DOD DCIS.  The United States was represented by Assistant United States Attorney Tashena A. Fannin.

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LEXINGTON, Ky. – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Justice and Public Safety Cabinet of Kentucky was awarded $112,777 to administer PSN grant funds in the Eastern District of Kentucky.

The Bureau of Justice Assistance, part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.

“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”

“Project Safe Neighborhoods funding is invaluable to addressing the violent crime in our communities,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “PSN funding supports an entire community, not simply the entities that receive the funding.  The recipient entities use this funding to combat a community problem, making the community safer and more resilient.  We all benefit from additional resources to support us in achieving that goal.

“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”

In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.

For a list of all grantees, please visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/FY21-Project-Safe-Neighborhoods-Awards.pdf  

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The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at  www.ojp.gov.

LEXINGTON, Ky — The Department of Justice, FBI, U.S. Postal Inspection Service and five other federal law enforcement agencies announced the completion of the fourth annual Money Mule Initiative, which targeted networks of individuals through which international fraudsters obtain proceeds of fraud schemes. These individuals, sometimes referred to as money mules, receive money from fraud victims and forward the illicit funds, often to overseas perpetrators. 

By receiving and transferring illicit funds, money mules facilitate a wide range of fraud schemes, including those that often predominately impact older Americans — like romance scams and lottery fraud — and those that target companies through business e-mail compromise schemes. Money mules also assist the theft of funds earmarked for pandemic relief, including unemployment insurance and small business loan funds. Some money mules are aware that their actions facilitate international fraud schemes. Others, however, first interact with fraud schemes as victims and may be unaware that their actions are furthering criminal activity.         

U.S. law enforcement took action to address 4,750 money mules over the last 10 weeks; enforcement actions occurred in every state in the country. These actions more than doubled the number of actions taken during last year’s effort. Agencies are also conducting outreach to educate the public about how fraudsters use money mules and how to avoid unknowingly assisting fraud by receiving and transferring money.

“Without money mules, many foreign fraudsters targeting American consumers, businesses and pandemic relief funds could not reap the proceeds of their schemes,” said Associate Attorney General Vanita Gupta. “The department and its partners will use every tool at our disposal — consumer education, disruption and prosecution — to cripple foreign fraudsters’ ability to get money from victims’ pockets to perpetrators’ bank accounts.”

“Most criminals have tools of some kind, and a common one for fraudsters is money mules,” said Carlton S. Shier, IV, U.S. Attorney for the Eastern District of Kentucky. “Countless Americans have been victimized by the efforts of money mules, who secreted away their money and ultimately got it into the hands of those stealing it.  Everything we can do to make it more difficult for fraud schemes to be successful is good news for Americans, and we will continue to do our part to hinder their use of these tools for fraud.”

Eastern District of Kentucky Actions

The U.S. Attorney’s Office for the Eastern District of Kentucky prosecuted and convicted three such money mules in 2021.  Ismaila Fafunmi, sentenced on August 24, 2021 to 51 months’ incarceration, Livingstone Otunuya Ineh Eqwem, sentenced on October 22, 2021 to 24 months’ incarceration, and Olatunbosun Oluwakayode Ajayi, sentenced on August 17, 2021 to 12 month’s incarceration, all participated in varying degrees in the receipt and conveyance of money obtained from a victim located in the Eastern District of Kentucky. This victim, who is in her seventies, has been lured into a romantic relationship online and sent hundreds of thousands of dollars to locations throughout the United States and the world, at the direction of her purported boyfriend.  These money mules either directly or indirectly received her money and sent that onto the ultimate fraudster, located in Nigeria, less their cut.  Fafunmi and Ineh Eqwem also served as money mules for funds deprived of American victims of other types of scams.

Law Enforcement Actions

The department’s Consumer Protection Branch and the FBI led the initiative with the U.S. Postal Inspection Service. Other participating agencies were the Department of Labor Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Small Business Administration Office of Inspector General, U.S. Secret Service and U.S. Treasury Inspector General for Tax Administration. The campaign was conducted simultaneously with a Europol initiative, the European Money Mule Action (EMMA). Additionally, in several districts, including the District of Arizona and the Northern District of Georgia, federal law enforcement have been working closely with their state and local law enforcement counterparts.

“This year’s Money Mule Initiative successfully halted the activity of hundreds of money mules worldwide thanks to the persistence and partnership of the FBI and our federal, state, local and international partners,” said Executive Assistant Director Brian Turner of the FBI's Criminal, Cyber, Response and Services Branch. “Money mules make it easier for criminals to hide their activity, and harder for law enforcement to follow their tracks. Today’s announcement is an unmistakable warning for those who move money for criminal enterprises: even if you don’t know you’re committing a crime, acting as a money mule is illegal and punishable, and the FBI and our partners will use all available tools to disrupt the flow of funds to criminal networks.”

“The U.S. Postal Inspection Service takes great pride in our history of protecting the public from being deceived by scammers,” said Chief Postal Inspector Gary Barksdale for the U.S. Postal Inspection Service. “We work hard to safeguard vulnerable consumers through aggressive criminal investigations, as well as proactive consumer outreach, as part of our mission to protect those who might fall victim to cleverly designed deceptive offers. The Money Mule Initiative is another example of our law enforcement commitment, and that of our law enforcement partners, to vigorously pursue individuals who knowingly or unknowingly participate in criminal activity of this nature; bring them to justice and stop them in their tracks from victimizing the American public.”

The thousands of actions taken by law enforcement ranged from warning letters to civil and administrative actions, to criminal prosecutions. Law enforcement served approximately 4,670 letters warning individuals that their actions were facilitating fraud schemes. These letters outlined the potential consequences for transferring money acquired illegally. Civil or administrative actions were filed against 11 individuals, and through seizures and voluntary return of funds, law enforcement obtained nearly $3.7 million in fraud proceeds.

Additionally, more than 30 individuals were criminally charged for their roles in receiving and forwarding victim payments or otherwise laundering fraud proceeds. These cases included:

• The Consumer Protection Branch and U.S. Attorney’s Office for the Central District of California charged four individuals who laundered gift cards purchased by fraud victims.
• Two U.S. Attorney’s Offices, the District of Rhode Island and the Western District of Pennsylvania, indicted individuals who, among other conduct, personally collected money from grandparent scam victims.
• The U.S. Attorney’s Office for the Western District of Tennessee charged an individual who facilitated the theft of unemployment insurance funds.
• The U.S. Attorney’s Office for the Southern District of New York indicted a ring of individuals who laundered money for romance scams and business email compromise fraud schemes.

The charges also consisted of cases brought against individuals who facilitated business email compromise schemes, including charges brought by the U.S. Attorney’s Offices for the Eastern District of Virginia, the Eastern District of Wisconsin and the Western District of Kentucky. Additional charges were brought against money mules by U.S. Attorney’s Offices for the Northern District of Georgia, the Eastern District of Louisiana, and the District of Nebraska.

Criminal charges are merely allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Community Outreach and Prevention

Agencies also turned their attention to educating the public about how fraudsters recruit individuals to serve as money mules, signs of money mule activity and steps that should be taken if someone has unknowingly facilitated fraud by moving money.

These efforts included:

• U.S. Postal Inspection Service created fliers that were displayed in post offices across the country during the Money Mule Initiative.
• FBI’s Internet Crime Complaint Center (IC3) released a money mule public service announcement.
• The Department of Labor Office of Inspector General provided information about money mule activity to state work force agencies.
• The Department’s Elder Justice Coordinators educated their communities about money mule’s activity.
• Members of the Attorney General’s Coronavirus Fraud Enforcement Task Force used outreach materials created by the Pandemic Response Accountability Committee (PRAC) to educate the public about the use of money mules to steal pandemic relief funds.

Other government agencies joining the public awareness effort included the Consumer Financial Protection Bureau, which created new money mule scam awareness materials, as well as the Department of Health and Human Services’ Administration for Community Living and AmeriCorps Seniors. By increasing awareness of money mule activity, these efforts and others sought to prevent individuals from becoming involved in money mule activity.

For more information on money mules, please visit https://www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.

Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice. Additional information about the Consumer Protection Branch and its elder fraud enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).    

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. 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 Powell, Ohio, man, Syed Sheraz Ahmed, 40, was sentenced to 360 months in federal prison on Monday, by Chief U.S. District Judge Danny C. Reeves, after pleading guilty to traveling for sex with a minor and receiving a visual depiction of a minor engaging in sexually explicit conduct.           

According to Ahmed’s plea agreement, he admitting to meeting a minor in the Fall of 2015, through Facebook, using a fictitious name.  Ahmed then communicated with the minor over Facebook and Snapchat; and in September 2016, he made plans to drive, from his residence in Ohio to Kentucky, to meet the minor in person.  Ahmed admitted to picking up the minor from her school and taking her to a motel, where they had sexual intercourse.  Later, Ahmed was stopped by police and found in possession of sexually explicit images of the minor victim.

Ahmed pleaded guilty in July 2021.

Under federal law, Ahmed 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 life.

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 Rodney Richardson, Police Chief, Richmond Police Department, announced the sentence.

The investigation was conducted by the FBI and the Madison County Police Department. The United States was represented by Assistant U.S. Attorney Emily Greenfield.

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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FRANKFORT, Ky.— A Frankfort man, Joshua James Moore, 45, was sentenced to 240 months in federal prison on Monday, by U.S. District Judge Gregory VanTatenhove, after pleading guilty to knowingly receiving a visual depiction of a minor engaged in sexually explicit conduct and being a felon in possession of firearm and explosive devices.           

According to Moore’s plea agreement, he admitted to knowingly receiving a visual depiction of a minor engaging in sexually explicit conduct, through his computer.  Specifically, Moore used the Internet to search and download as many as 15 videos and 20 pictures of minors engaged in sexually explicit conduct.

Additionally, following at least two convictions for crimes punishable by imprisonment for more than one year, Moore was in possession of three firearms, including a sawed-off shotgun, and two explosive pipe bombs. Moore admitted that he knew he was a convicted felon and prohibited from possessing a firearm.

Moore has two prior convictions, a conviction of cultivation of five or more marijuana plants, in January 2018, and a conviction for possession of methamphetamine in January 2018.

Moore pleaded guilty in May 2021.

Under federal law, Moore 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 life.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Office; Daniel Cameron, Kentucky Attorney General, and Sheriff Chris Quire, Franklin County Sheriff’s Office; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.

The investigation was conducted by ATF, the Kentucky Attorney General’s Office, Franklin County Sheriff’s Department, and the Lexington Police Department.  The United States was represented by Assistant U.S. Attorney Erin Roth and Special Assistant United States Attorney James Chapman.  

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.— A Lexington man, Kenneth Jones, 32, was sentenced to 180 months in federal prison on Monday, by U.S. District Judge Karen C. Caldwell, after pleading guilty to two counts of possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute 40 grams or more of fentanyl, and two counts of possession of firearm by a convicted felon.            

According to Jones’ plea agreement, in August 2020, law enforcement executed a search warrant on his residence and vehicle and found two firearms, a .23 caliber pistol and a .40 semi-automatic pistol.  Additionally, law enforcement found approximately 25 grams of fentanyl and 192 grams of methamphetamine.  Jones admitted that he intended to distribute these narcotics.

Additionally, in February 2021, law enforcement responded to a shooting at a residence, where they found Jones and a woman calling for help. At the residence, officers found a female with a gunshot wound, and Jones in possession of a firearm. During a subsequent search, law enforcement found 125 grams of fentanyl and 391 grams of methamphetamine.

Jones further admitted that he knew he was previously convicted in March 2017 of Trafficking a Controlled Substance First degree, a felony defense, and he was prohibited from possessing a firearm.

Jones pleaded guilty in August 2021.

Under federal law, Jones 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; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Office; and Chief Lawrence Weathers, Lexington Police Department, announced the sentence

The investigation was conducted by ATF and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cynthia Rieker. 

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.— An Irvine, Ky., man, George Harrison, 56, was sentenced to 180 months in federal prison on Monday, by U.S. District Judge Karen Caldwell, after previously being convicted of three counts of distribution of 50 grams or more of methamphetamine, one count of possession with the intent to distribute methamphetamine, and one count of possession of a firearm by a convicted felon.

According to evidence at trial, Harrison sold methamphetamine to the Kentucky State Police, in a series of controlled purchases.  Specifically, Harrison sold over 50 grams of methamphetamine to a confidential informant, on three separate occasions, in September of 2018.  During a search of his premises, at the time of arrest, approximately 12 grams of methamphetamine and over $1,000.00 was found.  Harrison was arrested on September 18, 2019 and detained at the Fayette County Detention Center.  While incarcerated, Harrison communicated through recorded jail phone calls with his girlfriend about securing drugs, money, and a firearm that law enforcement did not recover during the search of his house. The Kentucky State Police secured another search warrant and recovered a 45-caliber pistol, $16,546.00 and more than 500 grams of methamphetamine.  The jury found that the $16,546.00 was forfeitable to the United States, as drug proceeds.

Harrison was convicted in May 2021.   

Under federal law, Harrison 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; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Jerry C. Templet Jr., Special Agent in Charge, Homeland Security Investigations; and Colonel Phillip “PJ” Burnett, Jr., Commissioner of the Kentucky State Police, announced the sentencing.

The investigation was conducted by DEA, ATF, DHS-HSI, and the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Emily K. Greenfield.

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LEXINGTON, Ky.—  A Harrodsburg, Ky., man, John Michael Essex, 58,was sentenced to 408 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after being convicted of possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute heroin, and possession of a firearm by a convicted felon.           

According to the evidence presented at trial, on July 7, 2019, deputies with the Mercer County Sheriff’s Office executed a search warrant on a property being occupied and rented by Essex.  During the search officers located approximately 354 grams of methamphetamine and 69 grams of a mixture of heroin and fentanyl, in multiple baggies packaged for distribution. A Remington rifle was also located in a vehicle belonging to the Essex.  Essex had previously been convicted of a felony and was prohibited from possessing a firearm. 

Essex was convicted in August 2021.

Under federal law, Essex 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; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Office; and Sheriff Ernie Kelty, Mercer County Sheriff’s Office; announced the sentence.

The investigation was conducted by DEA and the Mercer County Sherriff’s Office, with assistance from the Danville Police Department, Lincoln County Sherriff’s Office, and the Kentucky State Police Special Response Team.  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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

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FRANKFORT, Ky. – A Shelbyville, Kentucky, man, John Affourtit, 65, pleaded guilty on Tuesday, before U.S. District Judge Gregory VanTatenhove, to knowingly discharging a harmful quantity of oil into a waterway of the United States.           

According to his plea agreement, beginning in March 2017, Affourtit signed an agreement with a company to remove and dispose of the waste material at the company’s abandoned zinc plating facility.  In completing the contract, Affourtit admitted to pumping oil waste from the machinery pits into a large 500-gallon water trailer that he had rented.  He then took the trailer to his residential property in Shelby County where he discharged it, and it went into a creek that ran through his property.  The creek is a perennial stream that flows into waters that are part of the Salt River, a traditional navigable waterway.  Affourtit had also disposed of other waste materials, including a container of hazardous waste, from the zinc plating facility on his property in an earthen berm.                          

Affourtit was indicted in August 2020.

“After agreeing to properly dispose of hazardous materials, the defendant instead chose to endanger the environment and the people that live nearby,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky.  “Dangerous choices like this have consequences and the defendant must now face those.  We appreciate the dedicated work of our law enforcement partners, whose efforts make this prosecution possible.

“The defendant’s willful disregard of the Clean Water Act put nearby residents and the environment at unnecessary risk,” said Special Agent in Charge Charles Carfagno of EPA’s Criminal Investigation Division in Atlanta. “EPA will continue to hold accountable those that choose to deliberately violate our environmental laws.”

Acting U.S. Attorney Shier; Special Agent in Charge Carfagno; and Anthony R. Hatton, Commissioner, Kentucky Department of Environmental Protection, jointly announced the guilty plea.

The investigation was conducted by EPA-CID and Kentucky Department of Environmental Protection.  The United States was represented by Assistant U.S. Attorney Emily Greenfield.

Affourtit is scheduled to be sentenced on February 17, 2022 at 3:30 p.m. He faces a maximum of three years in prison and a fine of not more than $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. 

— END —

PIKEVILLE, Ky.— An Elkhorn City, Ky., attorney, Timothy Belcher, 56, was sentenced on Tuesday, to 41 months in federal prison and ordered to pay $817,000 in restitution, by U.S. District Judge Robert Wier, for bank fraud and false statements on a tax return.  

According to Belcher’s plea agreement, he was a licensed attorney practicing in Pike County, who agreed to represent a client and her minor daughter in a wrongful death lawsuit.  In 2004, a settlement was reached in the lawsuit, where half of the settlement would be distributed to the victim and the other half would be distributed among the three children.  The funds were placed into an escrow account for the children.

Belcher admitted that, from July 2012 to December 2018, he transferred money from that escrow account to his law practice and used those funds for his personal and business expenses. Also, in his plea agreement, Belcher admitted that he knowingly failed to report the money he embezzled from the settlement account on his taxes.  

Belcher pleaded guilty in July 2021.  

Under federal law, Belcher 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, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; and Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation, jointly announced the indictment.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.  The United States was represented by Assistant U.S. Attorney Andrea Mattingly Williams.

– END –

PIKEVILLE, Ky.- A Pikeville man was convicted on Monday by a federal jury in Pikeville for wire fraud and health care fraud.           

After two hours of deliberation, following a five-day trial, the jury convicted 36-year-old Eugene Sisco III of one count of wire fraud and one count of health care fraud.

According to the evidence at trial, Sisco operated several medication assisted treatment (“MAT”) clinics in Pike, Floyd, and Harlan Counties that offered treatment to patients suffering from opioid addiction.  These clinics were enrolled as providers in the Kentucky Medicaid program, and under Kentucky law were required to bill that insurance program for MAT services rendered to Medicaid patients.  The evidence demonstrated that Sisco deceived patients into paying $200-$300 per month in cash for treatment at his clinics, despite having Medicaid insurance, by falsely claiming his clinics were not eligible to bill Medicaid for the counseling services they provided.  The evidence at trial showed that the cash payments from patients totaled around $5 million between May 2016 and October 2019.  At the same time, Sisco caused his clinics to bill Medicaid for MAT services, receiving around $5 million in reimbursements from that program as well.

The jury also found that Sisco engaged in a health care fraud scheme, by causing his laboratory, Toxperts, LLC, to bill for medically unnecessary urine drug testing of samples collected from patients at his clinics.  The physician witnesses at trial testified that they did not order this urine drug testing, and that some of it was done at Sisco’s direction for billing purposes, as opposed to any medical reason. Sisco is not a doctor or medical professional.           

Sisco was indicted in November 2020.           

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

The investigation was conducted by FBI, KSP, and the Office of the Attorney General, Office of Medicaid Fraud and Abuse. The United States was represented in the case by Assistant U.S. Attorney Paul McCaffrey. 

Sisco will appear for sentencing on March 8, 2022 at 11 a.m. He faces a maximum of 20 years for the wire fraud charge and 10 years maximum for the health care fraud. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

— END —

ASHLAND, Ky.— An Ashland man Steven Halley, 28, was sentenced to 152 months in federal prison on Monday, by U.S. District Judge David Bunning, after pleading guilty to possession with intent to distribute five grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.

According to Halley’s plea agreement, he admitted that, on September 30, 2020, he was stopped by law enforcement for carless driving, in Boyd County.  He was not a licensed driver and had methamphetamine and a handgun in the car.  Law enforcement found him in possession of a .38 gun and 23.98 grams of methamphetamine.  Halley was prohibited from possessing a firearm due to prior felony convictions. 

Halley pleaded guilty in July 2021.

Under federal law, Halley 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, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Bobby Jack Woods, Sheriff, Boyd County Sheriff’s Office, jointly announced the sentence.

The investigation was conducted by the DEA and the Boyd County Sheriff’s Office.  The United States was represented by Assistant U.S. Attorney Emily Greenfield. 

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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

– END –

COVINGTON, Ky.— A Cincinnati man, Clarence Toney, 41, was sentenced to 250 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after pleading guilty to the distribution of fentanyl and heroin and violating his supervised release conditions.  Toney was classified as a career offender.

In his guilty plea, Toney admitted that, on six separate occasions in Covington, he sold a mixture or substance containing a detectable amount of fentanyl to a confidential informant working with the Covington Police Department.  On two of the six occasions, the substance he sold also included a detectable amount of heroin.  In addition to pleading guilty to the charges, Toney also admitted that his actions violated the conditions of his supervised release for a previous drug trafficking conviction.

Toney pleaded guilty in July 2021.

Under federal law, Toney 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 six years.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Col. Robert Nader, Chief of Police, Covington Police Department, announced the sentence.

The investigation was conducted by the FBI and the Covington Police Department. The United States was represented by Assistant U.S. Attorney Kyle M. Winslow.

– END –

LEXINGTON, Ky. - A former Kentucky state employee, Howard Stanley Head, Jr., 59, was sentenced in federal court on Monday, to 12 months and 1 day in prison, by U.S. District Judge Gregory F. Van Tatenhove, for conspiracy to import misbranded prescription drugs.  He was also fined $1,000 and ordered to forfeit $30,275 in unlawful gains.           

From July 2015 to October 2019, Head regularly made online purchases of thousands of tablets of erectile dysfunction drugs, from overseas suppliers.  These drugs were not authorized for entry into the United States and did not satisfy Food and Drug Administration (FDA) regulations for proper labelling.  Additionally, Head is not a doctor or pharmacist, and had no legal authority to prescribe, dispense, transport or otherwise handle prescription medications.

After obtaining the shipments of generic erectile dysfunction drugs, Head resold them at a profit, to customers in Frankfort and other parts of Kentucky.  While operating this illegal business, in some instances, Head used his state email account to order shipments and contact customers.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Mark McCormack, Special Agent in Charge of the FDA, Office of Criminal Investigations, Washington Field Office; and Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.

The investigation was conducted by FDA Office of Criminal Investigations and the Kentucky State Police.  The United States was represented by Assistant U.S. Attorney Will Moynahan.

— END —

LONDON, Ky— A Perry County man, Thomas Hamblin, 65, was sentenced to 270 months in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, after previously being convicted of conspiracy to distribute 500 grams or more of cocaine, possession of a firearm in furtherance of that conspiracy, possession of a firearm as a convicted felon, kidnapping, and conspiracy to commit a kidnapping.         

According to evidence presented at trial, Hamblin was working with others, including Bobby Sizemore, Robert Keith Caudill, and Doyle Back, to obtain kilogram quantities of cocaine, and to sell that cocaine to others in the Perry County area.  Evidence further revealed that, after an attempted drug deal, Hamblin coordinated with others, including Luke Holbrook and Michael Rayburn, to kidnap and assault two victims in Tazewell, Tennessee.  Specifically, Hamblin recruited Luke Holbrook into the plot and provided him with a firearm and ammunition.  Holbrook, assisted by Rayburn and another individual, then held two victims at gun point, tied them up with duct tape, assaulted them with a baseball bat, and interrogated them, in an attempt to retaliate against them and recover Hamblin’s money or drugs.  Portions of this kidnapping and assault were recorded on a cell phone that was recovered from the scene.  That same cell phone revealed that Hamblin was contacted in the middle of the assault and kidnapping.    

Hamblin was convicted of the charges in June 2021.  

Hamblin’s co-defendants have been sentenced to the following:

• Bobby Sizemore, 64, of Cornettsville, Ky., was sentenced to 30 months and two years of supervised release.
• Michael Rayburn, 39, of London, Ky., was sentenced to 135 months and three years of supervised release.
• Luke Holbrook, 51, of Seco, Ky., was sentenced to 163 months of three years of supervised release.
• Robert Caudill, 41, of Cornettsville, Ky., was sentenced to 78 months and five years of supervised release.
• Doyle Back, 41, of London, Ky., was released based on time served (approximately 449 days) and received three years of supervised release.

Under federal law, Hamblin and his co-defendants must serve 85 percent of their prison sentence. Upon Hamblin’s release from prison, he will be under the supervision of the U.S. Probation Office for four years.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the DEA Louisville Field Division; Vic Brown Executive Director of AHIDTA; Minor Allen, Chief of the Hazard Police Department; Nancy Hale, President/CEO of Operation UNITE; Jeremy Meyers, Chief of the Tazewell Police Department; Bob Brooks, Sheriff of the Claiborne County Tennessee Sherriff’s Department, and Commissioner Phillip “PJ” Burnett, Jr., Commissioner of the Kentucky State Police, announced the sentence.

The investigation was conducted by the DEA, the Hazard Police Department, Operation UNITE, the Tazwell Tennessee Police Department, the Claiborne County Sheriff’s Department, and the Kentucky State Police.  The United States was represented by Assistant U.S. Attorney Drew Trimble.

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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement.

– END –

LEXINGTON, Ky. – A Mt. Sterling, Ky., man, Larry A. Crump, 37, has pled guilty, before U.S. District Judge Dannv C. Reeves, to Hobbs Act Robbery, bank robbery, possession of a firearm in furtherance of a violent crime, and being a convicted felon in possession of a firearm.           

According to his guilty plea agreement, Crump admitted to robbing the Cash N Check in Mt. Sterling, on November 16, 2020, and the Peoples Bank of Mt. Sterling, on November 20, 2020, at gunpoint.  Crump also admitted to using a stolen firearm in the commission of the bank robbery and being a felon in possession of a firearm. The amount of money taken from Cash N Check was approximately $900 and the amount of money stolen from the Peoples’ Bank was approximately $37,000.  Law Enforcement agents recovered approximately $20,000 from the residence of one of Crump’s relatives.  Crump was on parole at the time of the commission of the offenses.

Crump was indicted in March 2021.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Norman Arflack, U.S. Marshal for the Eastern District of Kentucky; Chief Terry Landrum, Chief of Police, Mt. Sterling Police Department; and Jessica Stewart, Bath County Sheriff, announced the guilty plea.

The investigation was conducted by the FBI, ATF, U.S. Marshals, Mt. Sterling Police Department, and the Bath County Sheriff’s Office.  The United States was represented by Assistant U.S. Attorney Roger West.

Crump is scheduled to be sentenced on January 21, 2022. Crump faces a minimum of seven years in prison, and a maximum of life imprisonment.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.

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FRANKFORT, Ky.— A Lawrenceburg, Ky., man, Denero Evans, 32, was sentenced to 180 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, after pleading guilty to possession with intent to distribute 500 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.

According to Evans’ guilty plea agreement, on January 3, 2021, law enforcement conducted a traffic stop on his vehicle and found him in possession of three bags of marijuana, a backpack with a loaded .380 pistol, and three cellophane wrapped packages containing 1,306 grams of methamphetamine.  There was also $10,000 in cash wrapped in a rubber band in the driver’s side floorboard.

Evans had previously been convicted of trafficking in controlled substances, in October 2016, in Franklin Circuit Court. 

Evans pleaded guilty in July 2021.

Under federal law, Evans 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, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Brian Taylor, Chief of Police, Lawrenceburg Police Department, announced the sentence.

The investigation was conducted by the DEA and the Lawrenceburg Police Department. The United States was represented by Assistant U.S. Attorney Emily Greenfield.

– END –

COVINGTON, Ky. – A Richmond, Kentucky man, Lavone Dixon, 36, was sentenced to 312 months in prison, by U.S. District Judge David Bunning, for possession of methamphetamine with the intent to distribute it and being a felon in possession of a firearm.

According to testimony at his trial, on September 17, 2019, Dixon traveled to Dayton, Ohio, to pick up more than three ounces of crystal methamphetamine for distribution.  He was arrested in Grant County, Kentucky, while in route to Richmond with the methamphetamine. Agents executed a search warrant on Dixon’s residence and located three firearms concealed inside.  Dixon was a convicted felon at the time of these offenses and was prohibited from possessing firearms.  Testimony indicated that Dixon had, several times a month since 2016, traveled to Dayton for large quantities of methamphetamine and heroin and distributed those drugs in the Richmond area. 

Dixon was convicted of the charges in May 2021.

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

Carlton S. Shier IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives; and Col. Phillip Burnett, Commissioner of the Kentucky State Police, jointly announced the sentence.

The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kentucky State Police, Gateway Area Drug Task Force and the Madison County Drug Task Force, and the Miami Valley Bulk Smuggling Task Force. The United States was represented in the case by Assistant U.S. Attorney Tony Bracke.  

— END —

LONDON, Ky. – A Letcher County Middle School teacher was convicted late Wednesday, by a federal jury sitting in London, of producing child pornography and cyberstalking a student.

The jury convicted Charles Evans Hall Jr., 48, after 30 minutes of deliberations, following a three-day trial.

According to the evidence at trial, Hall persuaded a child to setup a secret Snapchat account. Hall then manipulated the child into creating and transmitting sexually explicit pictures and videos over a seven-month period.  Hall used physical molestation to coerce and entice the minor into producing additional images.

The Kentucky State Police (KSP) seized Hall’s cell phone on November 20, 2018.  Despite that, Hall still used Instagram to engage in cyberstalking.  Hall repeatedly contacted the victim, asking her to destroy evidence, and ultimately threatened the child when she did not help him do so.  KSP then arrested Hall on November 30, 2018.  Despite that, Hall had his cellmate communicate with a co-conspirator, outside of the jail, to continue the cyberstalking campaign against the child, using Facebook.  Hall told the victim to make another statement to law enforcement, to clear him of the charges. Hall also used his mother’s public Facebook page to relay messages to the victim.   

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation (FBI) Louisville Division; and Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the jury’s verdict.

The investigation was conducted by the FBI and the Kentucky State Police Electronic Crimes Branch.  The United States was represented in the case by Assistant U.S. Attorney Jenna E. Reed.

Hall will appear for sentencing on February 22, 2022.  He faces a maximum of 35 years in prison.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing the sentence.

This case was brought 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 —

LONDON, Ky. – A former Pulaski County Constable, Michael Wallace, 47, of Somerset, Ky., was sentenced to 140 months in prison, by U.S. District Judge Robert Wier, after previously being convicted of violating the civil rights of persons within Pulaski County and possession with intent to distribute methamphetamine.            

According to the evidence at trial, Wallace and fellow Constable Gary Baldock, 56, worked together to violate the civil rights of individuals, by fabricating evidence that was used as a basis to arrest, to search, and to seize the property of others.  Both Wallace and Baldock were also found guilty of illegally possessing methamphetamine, which they used to plant evidence on potential suspects.

Wallace and Baldock were convicted of the charges by a federal jury in June 2021.

“Wallace betrayed the trust placed in him, abused his authority to violate the rights of others, and did a grave disservice to the law enforcement community,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky.  “Instead of enforcing the law and protecting the public, he turned to corruption and self-interest.  His prison sentence is well-deserved and should serve this message:  such conduct has severe consequences and should not reflect on the hard work and dedication of so many in law enforcement – including the FBI agents who investigated this case and made this prosecution possible.”

“Wallace took an oath to faithfully protect and serve the citizens of Pulaski County. By blatantly violating that oath, he betrayed his community and those officers who work hard every day to gain the trust of the people they serve,” said Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office. “With his sentencing, Wallace is being held accountable for his deplorable actions, and the FBI will continue to do everything in its power to bring corrupt police officers to justice.”

Under federal law, Wallace 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.

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

The investigation was conducted by the FBI.  The United States was represented by Assistant U.S. Attorney Jason Parman.

— END —

LEXINGTON, Ky. – The United States has reached a settlement with Sayre School (Sayre), a Lexington-based private school, resolving allegations of disability discrimination and taking steps to ensure that individuals with disabilities have equal access to the school’s facilities.

The settlement agreement resolves a compliance review, initiated in 2016 by the United States, under the Americans with Disabilities Act (ADA), after receiving a complaint about physical access barriers for individuals with mobility disabilities, at Sayre’s Lower School.  Sayre is a private, nonsectarian school in Lexington that serves more than 600 students from pre-kindergarten through twelfth grade.  As a private elementary and secondary school, Sayre is a “public accommodation” that is subject to the requirements of Title III of the ADA.

Following an on-site architectural assessment of Sayre’s campus, the United States concluded that numerous buildings on Sayre’s campus contained physical barriers to access in violation of the ADA.  As part of the resolution between the parties, Sayre:

• Has taken broad remedial action to remove architectural barriers in school buildings across its campus, to ensure access for individuals with disabilities;
• Consulted with the United States during construction of its new Lower School to ensure the building was ADA-compliant; and
• Will renovate its playground facilities to ensure that they are readily accessible to, and usable by, children with disabilities.

“Under federal law, public accommodations like Sayre School have an obligation to provide facilities that do not discriminate against students with disabilities,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky.  “Though this settlement, Sayre has agreed to address access barriers on its campus and safeguard ongoing compliance.  The Department of Justice remains committed to doing its part to ensure that children with disabilities have equal access to their school facilities.”

“Sayre School appreciates the opportunity to work with the Department of Justice to ensure that our campus is inclusive and accessible to all students, faculty, and visitors,” said a statement released by Sayre. “By improving the accessibility of our campus, we have further enhanced our learning environment.”

This matter was handled by Assistant U.S. Attorneys Hydee Hawkins and Carrie Pond, in consultation with the Civil Rights Division’s Disability Rights Section.

For more information about the Civil Rights Division and the laws it enforces or to file an online complaint regarding a potential civil rights violation, please visit civilrights.justice.gov.  Individuals seeking additional information about the ADA can call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

– END –

ASHLAND, Ky. — A Columbus, Ga., man, Eric Duane Elmore, 48, was sentenced to 120 months in federal prison on Monday, by U.S. District Judge David L. Bunning, after pleading guilty to attempted online enticement.            

According to Elmore’s guilty plea agreement, he admitted to corresponding with a 15-year-old victim, beginning in late 2018. When the conversations became sexual in nature, the victim told a school counselor about the messages, who then contacted law enforcement.  Law enforcement then gained authorized control of the online account and continued the conversations with Elmore, which ultimately led to Elmore discussing travel to Kentucky to meet with the victim for sexual purposes.

Elmore pleaded guilty in June 2021. 

Under federal law, Elmore must serve 85 percent of his prison sentence.  Upon his release from prison will be under the supervision of the U.S. Probation Office for 15 years.

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

The investigation was conducted by the FBI and 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. – A Morehead, Ky., man, and former Bath County Deputy Sheriff, Joshua Preece, 40, pleaded guilty on Tuesday, before U.S. District Judge Karen Caldwell to the enticing a minor victim to engage in sexually explicit conduct for the purpose of producing child pornography.   

According to Preece’s plea agreement, on November 5, 2018, he admitted to answering a call about a minor victim who was acting out of control at her residence and transporting the victim to a remote area in Bath County.  At the remote location, Preece admitted to sexually assaulting the victim and later asking for photos via Snapchat.  When reviewing Preece’s phone, law enforcement found multiple sexually explicit images.

Preece was indicted in April 2021.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Robert Holman, Special Agent in Charge, United States Secret Service; and Colonel Phillip Burnett, Commissioner, Kentucky State Police; jointly announced the guilty plea.

The investigation was conducted by U.S. Secret Service and KSP.  The United States was represented by Assistant U.S. Attorney David Marye.

Preece is scheduled to be sentenced on February 1, 2022.  He faces a minimum of 15 years and not more than 30 years in prison, a fine of not more than $250,000, and a term of supervised release of not less than five years and up to life.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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, Jymie S. Salahuddin, 53, was sentenced to 262 months in federal prison on Tuesday, by Senior U.S. District Judge Joseph Hood, after pleading guilty to possession with intent to distribute cocaine and possession of firearms in furtherance of drug trafficking.

According to Salahuddin’s plea agreement, on September 19, 2020, while serving a parole violation warrant, law enforcement stopped Salahuddin’s vehicle and found him in possession of 79.42 grams of cocaine and a large amount of currency.  A search of his vehicle also revealed a .40 pistol and a .380 pistol, along with additional currency.  Salahuddin admitted that he possessed the cocaine with the intent to distribute it, and that he possessed the firearms in furtherance of his drug trafficking.

Salahuddin pleaded guilty in July 2021.  

Under federal law, Salahuddin 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 six years.

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

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

This is another case 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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

– END –

LEXINGTON, Ky.— Vonnie McDaniels, 32, of Lexington, Kentucky, was sentenced to 27 months in federal prison on Monday by Chief U.S. District Judge Danny C. Reeves, after being convicted of bank fraud and aggravated identity theft.

McDaniels obtained a $382,500 commercial loan from Kentucky Bank in August 2019 under false pretenses, and used the loan proceeds to purchase an office building in Frankfort, Kentucky that was being leased by the Commonwealth of Kentucky.  According to the evidence at trial, during the loan application process, McDaniels gave the bank falsified financial records and other information, which misrepresented his assets and liabilities, and modified key terms of the lease agreement with the state.  The state terminated the lease in December 2019.  In March 2020, McDaniels requested loan forbearance from Kentucky Bank, falsely claiming that the reason he was unable to repay the loan was that the state of Kentucky had suspended rent payments under the lease due to the COVID-19 pandemic.  To corroborate this lie about the pandemic, McDaniels fabricated a letter from a state employee purporting to suspend lease payments at the office building, and used the name and signature of that employee. 

McDaniels was convicted in June 2021.  

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

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Edward J. Gray, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; and Kathy Enstrom, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspector General; jointly announced the sentence.

The investigation was conducted by the FBI and FDIC-OIG.  The United States was represented by Assistant United States Attorney Paul McCaffrey.

– END –

LEXINGTON, Ky. —A Lexington, Ky., man, William S. Evans, III, 69, was sentenced to 120 months in federal prison Tuesday, by U.S. District Court Judge Karen K. Caldwell, for commodities fraud and wire fraud. 

Evans, doing business as Turning Point Investments, purported to be a professional investor and solicited substantial amounts of money from numerous friends and acquaintances as investments, into a fund that he would manage by investing on the commodity futures market. According to his plea agreement, he accepted funds from more than 20 investors, amounting to nearly $17 million, and invested a portion of that money on the commodity futures market, without registering as a commodity pool operator.  Evans convinced investors to turn over savings and liquidate their retirement accounts, promising substantial gains, low-risks, and coverage for any tax penalties.  He reported back to his investors that there were substantial gains on their investments, paid out distributions upon request, and continuously solicited more investments.  However, in reality, Evans lost nearly all the funds he invested on the commodity futures market, paid people distributions out of other people’s investments, and spent some of the investment funds on personal expenditures. 

Evans pleaded guilty in June 2021. Evans was also ordered to pay restitution in the amount of $16,934,773.40.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Robert Holman, Special Agent in Charge, United States Secret Service; and Charles Vice, Commissioner, Kentucky Department of Financial Institutions; made the announcement.

The investigation was conducted by the United States Secret Service and Kentucky Department of Financial Institutions, with assistance from the U.S. Commodity Futures Trading Commission.  The United States was represented by Assistant United States Attorney Kathryn Anderson. 

– END –

LONDON, Ky. — A Corbin, Kentucky, man, Douglas M. Edmonson, 38, pleaded guilty on Thursday, before U.S. District Judge Robert E. Wier, to kidnapping.             

According to the investigation and his guilty plea, Edmonson and his three co-defendants lured a victim to a location in Tennessee, using an unrelated party’s Facebook account.  Edmonson and his co-defendants then forced the victim into a vehicle and transported her to Corbin.  The victim was bound, blindfolded, and repeatedly assaulted during the 2-day kidnapping.  The investigation revealed that Edmonson and his co-defendants employed firearms, as well as explosive devices during the kidnapping.  On August 11, 2018, ATF agents were called to the kidnapping scene in Corbin, and assisted in locating and detonating several homemade pipe bombs.

Edmonson was indicted in September 2019.  Edmonson’s co-defendants, Dallas Chain Perkins, Bryanna Soper , and Erik Peace, previously entered guilty pleas to kidnapping and are also awaiting sentencing.

“After being lured, restrained, and held for drugs or ransom, the victim in this case was threatened with firearms and homemade explosives, then brutally beaten, burned, and repeatedly assaulted,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky.  “While nothing can make up for the unspeakable suffering the victim endured here, she knows that those who did this to her will now face the consequences of their appalling conduct.  I want to commend the work of our law enforcements partners.  Without their efforts, this result would not have been possible.”

“This defendant was an armed drug trafficker and part of a group that reigned terror and committed heinous acts of violence in our rural communities,” said ATF Special Agent In Charge R. Shawn Morrow of the Louisville Field Division. “I commend the efforts of the ATF agents and our Kentucky State Police partners who worked diligently on this year-long investigation to help bring a sense of justice to the victim. I hope this case sends the message that ATF and our law enforcement partners will not standby and allow these acts of violence.”

The investigation was conducted by the ATF and KSP, with assistance provided by the Williamsburg Police Department.  The United States was represented by Assistant U.S. Attorney Jenna E. Reed.

Edmonson is scheduled to be sentenced on January 17, 2022.  All 4 defendants face a maximum of Life in prison and 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. 

This case 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. The PSN program 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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

— END —

COVINGTON, Ky.— A Cincinnati, Ohio, man, Kevin Villamar, 29, was sentenced to 192 months on Friday, by U.S. District Judge David L. Bunning, after previously pleading guilty to the production of child pornography.             

According to his plea agreement, Villamar admitted to traveling from Ohio to Boone County, Kentucky, on August 8, 2020, to engage in illicit sexual conduct with a minor. Villamar filmed the sexual conduct on his iPhone and sent the video of the conduct over Instagram to the victim, who was a minor.

Villamar pleaded guilty in June 2021.  

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; and Edward J. Gray., Special Agent in Charge, FBI, Louisville Field Office; and Sheriff Michael A. Helmig, Boone County Sheriff’s Office, announced the sentencing.

The investigation was conducted by the FBI and Boone County Sheriff’s Ofice.  The United States was represented by Assistant U.S. Attorney Kyle Winslow.

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 Richmond, Kentucky, man, John William Lawson, 57, was sentenced on Thursday to 240 months in prison, by U.S. District Judge Gregory Van Tatenhove, for distribution of more than 500 grams of methamphetamine, distribution of heroin, possession of a firearm in furtherance of drug trafficking, and possession of firearms by a convicted felon.

According to testimony at trial, Lawson was arrested after a traffic stop during which officers located a loaded handgun, drug paraphernalia, and more than $23,000 in United States currency.  Subsequent search warrants at Lawson’s residence in Madison County revealed more than one pound of methamphetamine, which was determined to be 100% pure.  The search also resulted in the seizure of an additional $57,000 in United States currency, thousands of Xanax pills, and several firearms. 

Lawson was convicted in May 2021.   

Under federal law, Lawson 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, Acting United States Attorney for the Eastern District of Kentucky;  J. Todd Scott, Special Agent in Charge of the Drug Enforcement Administration’s Louisville Field Division; Chief James Ebert, Richmond Police Department, and Sheriff Mike Coyle, Madison County Sheriff’s Office, jointly announced the sentence.

The investigation was conducted by the DEA, the Madison County AHIDTA Task Force, the Richmond Police Department, and the Madison County Sheriff’s Office. The United States was represented in the case by Assistant U.S. Attorneys Todd Bradbury and David Kiebler. 

This case 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.  t 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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

— END —

LONDON, Ky. — A Corbin, Ky., man, Andrew J. Kerr, 32, was sentenced on Tuesday, to 25 years in federal prison, by U.S. District Judge Claria Horn Boom, for production of child pornography.

From August 2020 through November 2020, Kerr recorded multiple videos of himself engaging in sexual acts with a minor victim.  Kerr further transmitted the explicit images of the victim on Snapchat, a social media platform.  Finally, Kerr saved and stored images and videos of the minor victim on his cell phone.  In 2008, Kerr was convicted by the Commonwealth of Kentucky of Criminal Abuse in the First Degree for abusing a 12-year-old child.

Kerr pleaded guilty in June 2021.  

Under federal law, Kerr 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 Life.

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

The investigation was conducted by the Department of Homeland Security-HSI and Kentucky State Police Electronic Crimes Branch.  The United States was represented by Assistant U.S. Attorney Jenna E. Reed.

– END –

LONDON, Ky.— A Belfry, Ky., man, Brian Keith Wells, 45, was sentenced on Monday to 197 months in prison, by U.S. District Judge Robert E. Wier, for conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine.           

According to Wells’ plea agreement, beginning in November 2018 and continuing until on or about February 2020, in Pike County, Ky., and elsewhere, Wells conspired with others to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.

Wells pleaded guilty in April 2021.  

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

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Scott, Special Agent in Charge, DEA, Louisville Field Division; Edward J. Gray, Acting Special Agent in Charge, Louisville Field Office; and Colonel Phillip Burnett, Commissioner, Kentucky State Police, announced the sentence.

The investigation was conducted by the DEA, FBI, and KSP. The United States was represented by Assistant U.S. Sam Dotson.

– END –

LEXINGTON, Ky.— Michael McNew, former resident of Mt. Sterling, was sentenced to 86 months in federal prison today by U.S. District Court Judge Karen C. Caldwell for conspiracy to commit wire fraud, in furtherance of a crop insurance fraud scheme.  Shortly thereafter, Roger Wilson, resident of Mt. Sterling, was sentenced to 12 months in federal prison, also by Judge Caldwell, for conspiracy to commit crop insurance fraud.

McNew, 51, was a crop insurance adjuster until 2012, when he became a crop insurance agent. According to his plea agreement, in his role as an adjuster, he agreed with agricultural producers to inflate or fabricate the damage to their crops and falsify the number of acres of crop planted when preparing adjustments on their claims of loss on federal Multi-Peril Crop Insurance (“MPCI”) policies.  As an insurance agent, he admitted to committing fraud on MPCI claims of loss, as well as private claims of loss to his contracted employer, ARMtech Insurance Services.  He continued to inflate or falsify acreage reported and damage to crop and assisted with submission of generic photograph of loss that falsely purported to show damage to a particular producer’s farm.  He also admitted he submitted applications for crop insurance for individuals he knew were not farmers, but were relatives or friends of his farmer co-conspirators, in order to spread out losses and obtain better guarantees.  In total, McNew admitted to causing a total loss of more than $23,000,000.

Wilson, 88, owned Clay’s Tobacco Warehouse, a tobacco warehouse, grading station, and auction house in Mt. Sterling, Kentucky.  In his Plea Agreement, he admitted that from September 2013 until at least May 2018, he arranged for farmers to purchase poor quality tobacco, so they could use this tobacco to get fake grades to apply to their insurance claims of loss, which resulted in inflated indemnity payments.  Documents filed with the Court demonstrated that Wilson also produced fake sales receipts, shipping reports, and bale tags, all in efforts to facilitate fraudulent crop insurance claims of loss.  These documents showed that Wilson was responsible for over $9,000,000 in losses to the federal government.            

McNew pleaded guilty in October 2020. Wilson pleaded guilty in May 2021. 

Under federal law, McNew must serve 85 percent of his sentence, while Wilson must serve his entire sentence. Upon their release from prison, they will be under the supervision of the United States Probation Office for a period of three years.  McNew must also pay restitution of $19,596,936.  Wilson’s restitution order is still pending before the Court.

Other recent crop insurance fraud sentencings have resulted in the following sentences:

• Ronnie Jolly, 50, of Paris, Ky., was sentenced on August 13, 2021, to 36 months in prison and five years of supervised release.
• Bradley Price, 38, of Carlisle, Ky., was sentenced on August 20, 2021, to 30 months in prison and three years of supervised release.
• Brandon Price, 30, of Paris, Ky., was sentenced on August 20, 2021, to six months in prison and three years of supervised release.
• Jimmy Price, 61, of Carlisle, Ky., was sentenced on August 20, 2021, to six months in prison and three years of supervised release.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, Jason M. Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Edward J. Gray, Acting Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly made the announcement.

The investigations were conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency Special Investigations Staff, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance.  The United States is represented by Assistant United States Attorneys Erin Roth and Kathryn Anderson. 

– END –

FRANKFORT, Ky. – A Lost Creek, Ky., man, Kevin Combs, 32, pleaded guilty on Thursday, before U.S. District Judge Gregory Van Tatenhove, to cultivating more than 50 marijuana plants and brandishing a firearm in relation to a drug trafficking crime.           

According to Combs’ guilty plea agreement, on July 16, 2020, Kentucky State Police law enforcement responded to an investigation regarding suspected marijuana plants.  At the location, Combs confronted one of the officers with a stainless-steel, loaded revolver pistol. When the officer told Combs to lower his pistol, he refused, ran away, and hid the pistol. The pistol was subsequently recovered as evidence.  Combs further admitted to cultivating over 50 marijuana plants on the property that was part of the investigation.

Combs has several prior state felony convictions, including fleeing and evading law enforcement, escape, trafficking in a controlled substance first degree, and trafficking in a controlled substance second degree. 

Combs was indicted in October 2020.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Colonel Phillip Burnett, Commissioner, Kentucky State Police, announced the guilty plea.

The investigation was conducted by ATF and Kentucky State Police. The United States was represented by Assistant U.S. Attorney Roger West.

Combs is scheduled to be sentenced on January 1, 2022. He faces a maximum of 20 years on the marijuana charge and not less than seven years on the firearm charge, which must run consecutively to other sentences.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

— END —

LEXINGTON, Ky. — A Lexington man, Marquis Antonio Tompkins, 42, was sentenced on Friday, by Chief U.S. District Judge Danny C. Reeves, to 336 months (28 years) in prison, followed by 6 years of supervised release, after being convicted of multiple counts of distributing heroin and fentanyl, as well as being a convicted felon in possession of a firearm.            

According to evidence presented at trial, Tompkins sold a combination of fentanyl and heroin, on five separate occasions in Lexington, between February 2020 and March 18, 2020. The jury also found that Tompkins possessed a Taurus .40 caliber pistol, after having been previously convicted of a prior felony offense.  Tompkins had four prior felony convictions, two for distributing cocaine, one for use of a firearm in the commission of a drug offense, and one for being a felon in possession of a firearm.  Based on his prior criminal history Tompkins was determined to be a Career Offender, under federal law.  Additionally, Tompkins was on supervised release from a prior conviction when he was charged with the present offenses.    

Under federal law, Tompkins 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 six years.

“For the fifth time, this Defendant has been convicted of a felony drug trafficking or firearm offense,” said Carlton S. Shier, IV, Acting Untied States Attorney for the Eastern District of Kentucky.  “His drug trafficking, illegal possession of guns, continued defiance of the law, and status as a Career Offender undoubtedly justify the substantial sentence he was given.”

“This sentence sends a strong message and will protect the community by removing an armed criminal from our streets,” said R. Shawn Morrow, Special Agent in Charge of the ATF, Louisville Field Division. “We are committed to making our communities a safe place.  As part of that commitment, ATF, along with our local law enforcement partners, will continue to aggressively investigate, arrest and pursue prosecution of these offenders.”

Acting United States Attorney Shier; Special Agent in Charge Morrow; and Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.

The investigation was conducted by ATF, the Gateway Area High Intensity Drug Trafficking Area (HITDA) Task Force, and the Kentucky State Police.  The United States was represented by Assistant U.S. Attorney Roger West.

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, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

– END –

COVINGTON, Ky. - An Alexandria, Ky., couple was indicted on Thursday, on four counts of harboring aliens and one count of conspiracy to harbor aliens.

A federal grand jury sitting in Covington returned the indictment charging Yun Zheng, a.k.a. Wendy, 50, and Yan Qui Wu, a.k.a. Jason, 48, with four counts of concealing, harboring, or shielding a person for commercial and private financial gain, and one count of conspiracy to conceal, harbor, or shield persons for commercial and private financial gain.

The indictment alleges that, beginning in November 2014 and continuing through November 2017, Zheng and Wu illegally harbored four individuals for their commercial and private financial gain.         

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Lucas T. Cooper, Chief of the Alexandria Police Department, jointly announced the indictment.

The investigation preceding the indictment was conducted by the Department of Homeland Security- HIS and the Alexandria, Kentucky Police Department.  The indictment was presented to the grand jury by Assistant U.S. Attorneys Kyle Winslow and David Marye. 

A date for Zheng and Wu to appear in court has not yet been scheduled.  For each of the five counts, they face up to ten years in prison, up to $250,000 fine, and restitution.  However, any sentence following a conviction would be imposed by the Court, after 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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WASHINGTON – Three former National Football League (NFL) players have pleaded guilty for their roles in a nationwide scheme to defraud a health care benefit program for retired NFL players. A total of 15 defendants have pleaded guilty in connection with this scheme.

Clinton Portis, 40, of Fort Mill, South Carolina, and Tamarick Vanover, 47, of Tallahassee, Florida, pleaded guilty on Friday. Robert McCune, 40, of Riverdale, Georgia, pleaded guilty on August 24. The former players admitted to participating in a scheme to defraud the Gene Upshaw NFL Player Health Reimbursement Account Plan (the Plan). The Plan was established pursuant to the NFL’s 2006 collective bargaining agreement and provided for tax-free reimbursement of out-of-pocket medical care expenses that were not covered by insurance, and that were incurred by former players, their spouses, and their dependents – up to a maximum of $350,000 per player. 

According to court documents, Portis caused the submission of false and fraudulent claims to the Plan on his behalf over a two-month period, obtaining $99,264 in benefits for expensive medical equipment that was not actually provided. Vanover recruited three other former NFL players into the fraudulent scheme and assisted them in causing false and fraudulent claims to be submitted to the Plan, obtaining $159,510 for expensive medical equipment that was not actually provided. McCune orchestrated the nationwide fraud, which resulted in approximately $2.9 million in false and fraudulent claims being submitted to the Plan and the Plan paying out approximately $2.5 million on those claims between June 2017 and April 2018.

Portis and Vanover pleaded guilty two days after a trial against them resulted in a hung jury and a mistrial on certain counts against Vanover. McCune, the third defendant in that trial, pleaded guilty to all charges against him on the second day of trial. A retrial on the charges against Portis and Vanover had been scheduled to begin today.

Portis and Vanover were originally indicted, along with McCune and seven other defendants, in the Eastern District of Kentucky in December 2019 for their roles in the fraud. Since the initial charges were announced, five additional retired NFL players were charged in the scheme. All 12 of the other defendants charged have pleaded guilty to conspiracy to commit health care fraud: Joseph Horn, Correll Buckhalter, Carlos Rogers, James Butler, Etric Pruitt, Ceandris Brown, John Eubanks, Antwan Odom, Darrell Reid, Anthony Montgomery, Fredrick Bennett, and Donald “Reche” Caldwell, who passed away in June 2020.

Portis and Vanover pleaded guilty to conspiracy to commit health care fraud and agreed to pay full restitution to the Plan. Portis is scheduled to be sentenced on Jan. 6, 2022, and Vanover is scheduled to be sentenced on Jan. 22, 2022. They each face a maximum penalty of 10 years in prison.

McCune pleaded guilty to conspiracy to commit wire fraud and health care fraud, 13 counts of health care fraud, 11 counts of wire fraud, and three counts of aggravated identity theft. McCune is scheduled to be sentenced on Nov. 19. He faces a maximum penalty of 20 years in prison for conspiracy to commit wire fraud and health care fraud, 10 years for each count of health care fraud, 20 years for each count of wire fraud, and two years for each count of aggravated identity theft.

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; Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.

This case was investigated by the FBI and included efforts by various FBI Field Offices and Resident Agencies, including Augusta, Georgia; Birmingham and Mobile, Alabama; Cleveland, Ohio; Chicago, Illinois; Columbia, South Carolina; Dallas and Houston, Texas; Denver, Colorado; Jackson, Mississippi; Lexington, Kentucky; New Orleans, Louisiana; Miami, Jacksonville, and Tampa, Florida; Newark, New Jersey; Los Angeles, San Diego, Sacramento, and Newport Beach, California; Phoenix, Arizona; Salt Lake City, Utah; and Washington, D.C. 

Trial Attorneys John (Fritz) Scanlon and Alexander J. Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case.

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 COVINGTON, Ky. — A Fort Thomas, Ky., man, Kevin R. Welsch, 48, was sentenced on Thursday, by Chief U.S. District Judge Danny C. Reeves, to 33 months, after previously pleading guilty to federal charges of wire fraud and tax evasion.

In his guilty plea, Welsch admitted defrauding clients of the debt collection business he owned and operated, RCC Services, Inc.  Specifically, he admitted to collecting debts on behalf of creditors and keeping the money for his own use.  He also admitted to collecting more than debtors owed (sometimes making multiple, unauthorized debits from their accounts) and charging his clients for fees/expenses that he never actually incurred.  Finally, Welsch admitted evading taxes in the process.

Welsch pleaded guilty in May 2021.

Under federal law, Welsch 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. Restitution has yet to be determined.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation; Edward J. Gray., Acting Special Agent in Charge, FBI Louisville Field Office and Casey Kilgore, Chief of Police, Ft. Thomas Police Department, announced the sentencing.

The investigation was conducted by the IRS CI, the FBI, and the Ft. Thomas Police Department.  The United States was represented in the case by Assistant United States Attorney Elaine K. Leonhard.

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LEXINGTON, Ky. — A former Cook Supervisor at United States Penitentiary Big Sandy, Hank Williams, 56, of Weeksbury, Kentucky, was sentenced Monday to 210 months in federal prison, by Senior U.S. District Judge Joseph M. Hood, following his convictions for conspiracy to distribute 50 grams or more of methamphetamine, accepting a bribe by a public official, and using a communication device to facilitate a felony offense.

According to Williams’ plea agreement, he admitted to conspiring with an inmate, Librado Navarette, 34, and others, to distribute 50 grams or more of methamphetamine.  Williams, a public official, also accepted bribes from Navarette, and others, and used the U.S. mail to possess and distribute the controlled substances.

Williams pleaded guilty in June 2021.  Navarette pleaded guilty in July 2021 and is scheduled to be sentenced in October.  

Under federal law, Williams 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 five years.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; William Hannah, Special Agent in Charge, Department of Justice- Office of Inspector General, Chicago Field Office, Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Division; Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburg Division; and Michael Bosse, Chief of the Georgetown Police Department, announced the sentence.

The investigation was conducted by the Department of Justice’s Office of the Inspector General, the FBI, the United States Postal Inspection Service, and the Georgetown Police Department.  The United States was represented by Assistant U.S. Attorney Ron Walker.  

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LEXINGTON, Ky.— A Romanian National, Adrian Mitan, 36, was sentenced to 140 months in federal prison on Friday, by U.S. District Judge Robert Wier, after pleading guilty for his role in three separate schemes charged across three separate indictments: a money laundering conspiracy arising from online auction fraud scheme (commonly referred to as eBay fraud), a credit card phishing and brute-force attack scheme, and a vishing scheme, all designed to steal money from Americans.

According to his plea agreement, Mitan worked in conjunction with others to post advertisements for goods to sales websites like Craigslist.  Once they convinced U.S. based victims to pay for the item, they laundered the money through a sophisticated operation that included the Eastern District of Kentucky. 

Mitan also agreed that he was involved in a credit card fraud scheme that involved phishing for credit card information from victims and then brute force attacking point of sale systems to obtain all necessary data to create new cloned credit or debit cards.  He further admitted to then using those cloned cards to withdraw substantial sums from ATMs.  A network of U.S.-based coconspirators would convert this money to bitcoin and send the proceeds over seas to the Defendant.  According to his Plea Agreement, the Defendant possessed roughly 16,000 unique credit or debit card codes.

Finally, the Defendant conceded that he participated in a vishing scheme, obtaining debit or credit card codes by hacking into small businesses’ Voice over Internet Protocol systems and then deploying a script to contact financial institution customers to defraud them in providing their personal debit and credit card codes. Mitan admitted that he and his coconspirators obtained codes for roughly 2,130 access devices, targeting more than ten financial institutions’ customers.

Mitan pleaded guilty in January 2020.

Under federal law, Mitan must serve 85 percent of his prison sentence.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Assistant Director Michael D’Ambrosio, U.S. Secret Service, Office of Investigations; Colonel Phillip Burnett, Commissioner, Kentucky State Police; Chief Lawrence Weathers, Lexington Police Department; Jonathan Larsen of the IRS-Criminal Investigations (IRS-CI) New York Field Office; and Special Agent in Charge Kenneth Cleevely, U.S. Postal Service – Office of Inspector General (USPS-OIG); announced the sentence.

The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation, and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2).  Assistance was provided by the Romanian National Police (Service for Combating Cybercrime) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Criminal Division’s Money Laundering and Asset Recovery Section provided significant support and the Criminal Division’s Office of International Affairs provided significant support in securing and coordinating the arrests and extraditions from Romania of more than a dozen defendants.

This case was prosecuted by Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the U.S. Attorney’s Office for the Eastern District of Kentucky and Senior Trial Attorney Timothy C. Flowers and Senior Counsel Frank H. Lin of the Criminal Division’s Computer Crime and Intellectual Property Section.

Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases.  Tips to avoid becoming a victim of online auction fraud can be found here on the U.S. Secret Service’s website.

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LEXINGTON, Ky.– The Justice Department today announced it has reached an agreement with defendants Gus and Penny Crank to resolve a Fair Housing Act lawsuit alleging that Gus Crank sexually harassed female tenants while managing a Dayton, Kentucky rental property owned by his wife, Penny Crank. 

Under the consent order entered by the U.S. District Court for the Eastern District of Kentucky, the Cranks must pay $48,000 in damages to four female tenants harmed by Gus Crank’s harassment and a $2,000 civil penalty to the United States. The Cranks are also prohibited from being involved in property management of rental units in the future; Penny Crank recently sold the rental property where Gus Crank’s harassment occurred.  

The United States’ lawsuit alleged that Gus Crank’s harassment spanned a period of ten years. The allegations included that Gus Crank engaged in unwelcome sexual touching, offered to reduce monthly rental payments in exchange for sex, made unwelcome sexual comments and advances, made intrusive and unannounced visits to female tenants’ homes to further his sexual advances and evicted or threatened to evict female tenants who objected to or refused his sexual advances.

“No woman should ever have to endure sexual harassment to secure housing for herself or her family,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment is unacceptable and illegal, and the Justice Department will continue to vigorously enforce the Fair Housing Act to combat this type of discrimination and to obtain relief for victims.”

“Sexual harassment in housing deprives its victims of the safety and security that their home is supposed to provide,” said Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “That makes our convincing enforcement of the Fair Housing Act critical to ensuring that victims can gain relief from this disgraceful conduct and seek a safe and secure home for their families.”  

This case was jointly litigated by attorneys in the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Kentucky. The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s Initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.  Since launching the Initiative in October 2017, the Department of Justice has filed 22 lawsuits alleging sexual harassment in housing and recovered over $4 million for victims of such harassment. 

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.  Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291,  or submitting a report online. Individuals may also report discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.   

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LONDON, Ky. - A Frankfort, Kentucky man, Patrick Baker, 43, was convicted on Wednesday, by a federal jury sitting in London, of first-degree murder committed during a drug trafficking crime.           

After 6 hours of deliberation, following an approximately 3-week trial, the jury convicted Patrick Baker of one count of first-degree murder during a drug trafficking crime.  According to testimony at trial, Baker fatally shot Donald L. Mills, Jr., 29, during an armed home invasion on May 9, 2014 in the Stinking Creek community. Mr. Mills’ pregnant wife and children were held at gunpoint while Baker ransacked the victims’ home for oxycodone pills. Baker entered the Mills’ home posing as a United States Marshal.               

According to the evidence at trial, the KSP firearm forensics’ laboratory tied shell casings recovered from the victim’s master bedroom to Baker’s Kel Tec PF9. The Kel Tec 9mm was later recovered from a mud pit in Bell County past the “Bridge to Nowhere.” A surveillance video from the London Dollar General showed Baker purchasing plastic handcuff approximately 7 hours before the murder. The same handcuffs were later recovered feet from where the victim was fatally shot. Furthermore, cell tower data was used to trace Baker’s movements throughout May 8th and 9th, 2014 from London, to Stinking Creek, to Bell County.    

Baker was indicted in May 2021.

“At its core, this case was about one thing:  Patrick Baker’s role in the death of Donald Mills,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky.  “Having heard the evidence, the jury found him guilty.  I want to commend the steadfast work of our law enforcement partners and our trial team.  This case warranted their dedication, and the jury’s verdict justifies their thorough effort.”

“Today’s guilty verdict sends a significant message and demonstrates our commitment to justice,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Division.  “The result of this case would not have been possible without the excellent work of the ATF London Office, our law enforcement partners, and the United States Attorney’s Office.  An examination of the evidence was overwhelmingly in support of Patrick Baker’s guilt.  This case is a strong example of the work ATF is doing, every day, to combat violent crime in our communities.”           

Acting United States Attorney Shier; Special Agent in Charge Morrow; and Colonel Phillip Burnett, Jr., Commissioner, Kentucky State Police, jointly announced the conviction.

The investigation was conducted by Bureau of Alcohol, Tobacco, Firearm and Explosives and the Kentucky State Police.  The United States was represented in the case by Assistant U.S. Attorney Jenna Reed.

Baker will appear for sentencing on December 21, 2021.  He faces up to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

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