Eastern District of Kentucky

LEXINGTON, Ky. - A Nigerian National residing in Indianapolis, Ismaila Fafunmi, was sentenced to 51 months in federal prison on Friday, by U.S. District Judge Karen Caldwell, for charges related to a money laundering operation, which laundered the proceeds of romance fraud and grant fraud schemes targeting senior citizens.

According to Court records, Fafunmi was involved in a network that was comprised of several layers.  The initial layer consisted of scammers using computers in Nigeria who preyed on elderly citizens of the United States by impersonating romantic companions eager to make lasting relationships on dating websites or by offering fake federal grants to senior citizens.  For his part, Fafunmi admitted in his Plea Agreement that, beginning in June 2018, he and his co-conspirators would set up fake profiles on dating websites profiling American men, often military members.  The purpose of the scams was to defraud United States-based victims of their money.

 If the victims sent money by bank deposit, Fafunmi and his co-conspirators would create bank accounts in various names to retrieve the fraudulent funds.  Victims also sent money in the form of cash and postal money orders to addresses belonging to Fafunmi and his co-conspirators. Fafunmi and his co-conspirators would retain a portion of the victims’ funds, and then convert the remainder to wire transfers, to be sent back to co-conspirators in Nigeria.

Two victims of the scheme lived in Kentucky.  One sent more than $200,000 in funds, gift cards, and electronic devices, to a person she believed to be her boyfriend.  Another sent over $170,000, for what she believed to be fees associated with a federal grant.  Fafunmi received portions of these funds, kept some of the money, and sent the remainder abroad.

Fafunmi pleaded guilty in August 2020.

Under federal law, Fafunmi 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, Acting United States Attorney for the Eastern District of Kentucky; Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.

The investigation was conducted by the FBI.  The United States was represented by Assistant U.S. Attorney Kathryn Anderson.

This case is being prosecuted as part of the Department of Justice’s efforts to identify and prosecute those persons who facilitate elder financial exploitation.  The Department of Justice’s Elder Justice Mission, being carried out through the Kentucky Elder Justice Task Force, is to seek justice for victims of elder financial exploitation.  Anyone who knows someone who may be a victim of an elder financial exploitation, is encouraged to contact law enforcement.

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LONDON, Ky. - A Williamsburg, Ky., man, Amos Sparkman, 26, was sentenced Thursday, to 27 years in federal prison for production of child pornography, by U.S. District Judge Claria Horn Boom.

According to his plea agreement, in October 2020, Sparkman started an online relationship with a minor female using the social media platform Snapchat.  Sparkman confessed to a sexual relationship with the minor and possessed a video of the minor performing sexual acts on Sparkman.  Sparkman admitted that he used the minor victim to produce visual depictions of the minor engaging in sexually explicit conduct and that the depictions were then transported using Snapchat.

Sparkman was previously convicted of Harassment and Physical Contact with a child  and of Sexual Abuse, Second Degree of another minor.  Sparkman was a registered sex offender at the time he produced child pornography with his third minor victim.  When law enforcement arrested Sparkman, he stated he was planning to meet another girl. 

Sparkman was indicted in January 2020 and entered a guilty plea on March 2, 2021. 

Under federal law, Sparkman 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 10 years.

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

The investigation was conducted by the FBI with assistance from the Kentucky State Police.  The United States was represented by Assistant U.S. Attorney Jenna E. Reed.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the 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 Bedford, Ky., man, Leonard J. Andrew, Jr., 36, was sentenced on Tuesday to 180 months in federal prison, by U.S. District Judge Gregory VanTatenhove, for the distribution of child pornography.

According to his plea agreement, on February 7, 2018, Andrew admitted to sending multiple explicit videos and images of minors to at least two different recipients via Facebook Messenger. The videos and images sent by Andrew contained images of minors engaged in sexual activity and were sent to recipients outside of Kentucky.                     

Andrew pleaded guilty in November 2020.

Under federal law, Andrew must serve 85 percent of his prison sentences. Andrew will be under the supervision of the U.S. Probation Office for 25 years, following his release

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Colonel Phillip Burnett, Commissioner, Kentucky State Police; jointly announced the sentences.         

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

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.

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LEXINGTON, Ky. – In separate indictments, two former Correctional Officers, who worked for the Bureau of Prisons’ Federal Medical Center in Lexington, have been indicted for federal civil rights and sexual abuse violations.

A federal grand jury sitting in Lexington returned an indictment charging Christopher Brian Goodwin, 45, of Winchester, Ky., of one count of deprivation of rights under color of law, one count of aggravated sexual abuse by force, seven counts of abusive sexual contact, three counts of sexual abuse of a ward, and one count of providing a prohibited object to an inmate.

Goodwin’s indictment alleges that on several occasions, between April 2019 and September 2019, he engaged in sexual conduct with four inmates in BOP custody.  The indictment alleges that on at least one of those occasions, he sexually abused an inmate by using a threat that if the victim did not comply, they would be subjected to death, bodily injury, or kidnapping. Goodwin is also alleged to have provided cigarettes to an inmate

In a separate indictment, Hosea Lee, Jr., 42, of Phenix City, Al., was charged with two counts of deprivation of rights under color of law, two counts of aggravated sexual abuse by force or threat, eight counts of sexual abuse of a ward, two counts of abusive sexual contact, and one count of providing a prohibited object to an inmate.            

Lee’s indictment alleges that, between August 2019 and December 2019, he engaged in sexual conduct with five inmates in BOP custody.  It is alleged that Lee sexually abused two of the victims by using a threat that their families and children would be killed or harmed if they did not comply.  Lee’s indictment also alleges that he was a drug treatment specialist and illegally provided Suboxone to an inmate, among other prohibited items.           

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; William J. Hannah, Special Agent in Charge, Department of Justice Office of the Inspector General, Chicago Filed Office; and Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Office, announced the indictment.

The investigation preceding the indictment was conducted by the DOJ OIG and the FBI.  The cases are being handled by Assistant U.S. Attorneys Tashena Fannin and Kate K. Smith.

Goodwin is scheduled to appear for his initial appearance on Friday, July 30 in Lexington, and Lee is scheduled to appear for his initial appearance on Friday, August 6, also in Lexington. For their respective charges, they each face up to one year in prison of the deprivation of rights under color of law charge; up to life in prison for the aggravated sexual abuse charges; up to 15 years for the sexual abuse of a ward charges; up to two years for the sexual abuse by force; up to 20 years for providing a narcotic to an inmate charge; and up to six months for providing other prohibited objects to an inmate.  However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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

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LEXINGTON, Ky. – Bluewater Toxicology, LLC, a clinical laboratory in Mount Washington, Ky., has agreed to pay $1,252,403.40 to resolve civil allegations that it violated the False Claims Act, a federal law that prohibits submitting false or fraudulent claims to the federal government.

According to the settlement agreement, the Unites States alleged three issues relating to claims for urine drug testing services that Bluewater submitted to Medicare, Kentucky Medicaid, Indiana Medicaid, TRICARE, and CHAMPVA.  First, the United States alleged that Bluewater submitted claims that mispresented the number of drug classes tested.  Specifically, the United States contended that from January 2016, through September 2018, Bluewater submitted claims for definitive urine drug tests of 22 or more drug classes.  The United States alleged that these claims were false because Bluewater tested for fewer than 22 drug classes.  By billing as if they tested for a greater number of classes, Bluewater secured higher reimbursements to which it was not entitled.

Second, the United States alleged that from January 2016, through December 2017, Bluewater submitted certain claims without sufficient documentation to support the treating medical physician’s intent to order the test that was billed. By billing for these tests, Bluewater again secured reimbursements to which it was not entitled.

Finally, the United States alleged that Bluewater billed Medicare for specimen validity testing, a quality control process used to analyze a urine specimen to ensure that it has not been diluted or adulterated.  Since January 2014, Medicare’s guidance has stated that specimen validity testing should not be separately billed to Medicare.  The United States alleged that Bluewater nonetheless submitted claims to Medicare for specimen validity testing during the period October 2014 to May 2016.

“Whenever the valuable resources of government health care programs are dissipated, to those who are not entitled to them, that diminishes the ability of these critically important programs to meet the needs of their beneficiaries,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky.  “We must all remain committed to doing our part to protect the fiscal security of these vital resources.”

This matter arose from Bluewater’s self-disclosure of false claims for urine drug testing services.  Because Bluewater self-disclosed the misconduct, it was able to resolve its liability for only 1.5 times the amount of monetary loss caused by its false claims.  By statute, the False Claims Act imposes liability for three times the amount of loss suffered by the government. 

Healthcare providers may voluntarily disclose self-discovered evidence of fraud to the U.S. Department of Health & Human Services Office of Inspector General.  More information about how to self-disclose misconduct under the Provider Self-Disclosure Protocol is available at https://oig.hhs.gov/compliance/self-disclosure-info/protocol.asp.

The United States also encourages anyone with information about potential fraud, abuse, or mismanagement of Medicare or Medicaid funds to call the U.S. Department of Health and Human Services’ hotline at 800-HHS-TIPS (800-447-8477).  False Claims Act allegations can also be brought under the qui tam provisions of the Act, which encourage whistleblowers to bring suit on behalf of the United States and potentially share in any financial recovery.

This investigation was conducted by the United States Attorney’s Office for the Eastern District of Kentucky, the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse Control, the Indiana Attorney General’s Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services Office of Inspector General, the Defense Health Agency’s Program Integrity Division, and the Department of Veterans Affairs’ Office of Inspector General.  The United States was represented by Assistant United States Attorney Meghan Stubblebine.

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

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FRANKFORT, Ky. – Christopher G. Hickerson, 47, a Fleming County Magistrate and farmer, was sentenced to 66 months in federal prison Wednesday, by U.S. District Judge Gregory Van Tatenhove, for conspiracy to commit crop insurance fraud and tax fraud.

The evidence presented established that, from 2009 until 2016, Hickerson filed false claims of loss on his Multi-Peril Crop Insurance (“MPCI”) policies.  MPCI policies are federally sponsored crop insurance policies, which are funded through taxpayer money.  In his plea agreement, Hickerson admitted to committing crop insurance fraud with the assistance of coconspirators Roger Wilson, former owner of Clay’s Tobacco Warehouse, and Debra Muse, former employee at Clay’s Tobacco Warehouse, by obtaining fake Clay’s Tobacco Warehouse sales receipts and grading reports that made it appear as though he produced and sold poor quality tobacco, and then submitting those on his claims of loss.  Testimony during a sentencing hearing revealed that Hickerson employed other schemes to defraud the federal crop insurance program, including by placing crop insurance policies in his family member and friends’ names covering his own crop.  As a result, Hickerson fraudulently caused a loss of nearly $1 million to the taxpayer-funded insurance program.

Hickerson further admitted that he underreported his crop sales income in 2012, 2013, and 2015.  This caused a second loss to the federal government – this time to the IRS – of more than $150,000 in unpaid taxes.

Under federal law, Hickerson must serve 85 percent of his sentence.  Upon his release from prison, he will be under the supervision of the United States Probation Office for a period of three years.  Hickerson must also pay restitution that will be determined later by the Court.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky;

Jason M. Williams, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Division; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance, Fraud Investigation Division, jointly announced the sentence.

The investigation was conducted by the USDA, FBI, IRS, and the Kentucky Department of Insurance.  The United States was represented by Assistant U.S. Attorneys Kathryn Anderson and Erin Roth.

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FRANKFORT, Ky. — A Berea, Ky., man, Bradley Scott Helton, 33, was sentenced on Thursday to 214 months in federal prison, by U.S. District Judge Gregory VanTatenhove, for using a minor to produce child pornography.

According to Helton’s plea agreement, on May 16, 2020, he communicated with a 7-year-old victim, via an app called “Kiss Kiss: Spin the Bottle.”  Helton admitted to chatting with the victim, sending the victim sexual videos and pictures, and requesting the victim send sexual videos in return.  Helton admitted that he persuaded and used the 7-year-old victim to engage in sexually explicit conduct, for the purpose of producing a visual depiction of that conduct.  He further admitted that the images traveled in interstate commerce when the victim, who was in Texas, sent them to him, in Kentucky, via the app.

Helton pleaded guilty in March 2021.

Under federal law, Helton must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 25 years, following his release from prison. 

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 Colonel Phillip Burnett, Commissioner of the Kentucky State Police, announced the sentence.

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

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

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LONDON, Ky. – A Bulan, Ky., woman, Linda Shepherd, 54, pleaded guilty on Monday, June 28, before U.S. Magistrate Judge Hanly A. Ingram, to embezzling assets from a labor union.   

According to Shepherd’s guilty plea agreement, from April 2011 to March 2018, she was employed as the financial secretary of United Steelworkers (USW) Local 14637, the union for employees of Appalachian Regional Healthcare, in Hazard, Kentucky.  As financial secretary, Shepherd was responsible for paying the union’s bills and maintaining its financial records.  USW policy dictated that a union officer’s salary compensated the individual for personal time spent doing union business.  “Lost time” is only paid when an officer has membership approval to miss work to conduct union business.  Shepherd admitted to misappropriating union funds by paying herself for lost time in instances when she did not lose wages.  She also admitted to unauthorized use of union funds to pay for meals and pay herself for unauthorized services rendered. 

In total, between May 12, 2011 and March 20, 2018, Shepherd willfully misappropriated $39,491.69 in union funds.  These additional payments were not included in the annual union report that disclosed officer compensation to the membership.

“Linda Shepherd used her position as a financial secretary to steal money from a union representing workers in her community,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky.  “In order to enrich herself, she betrayed a trust placed in her and damaged the financial well-being of an organization designed to protect the interests of its members.  She is now facing the consequences of her crime.”

“Safeguarding financial integrity in labor unions and combating fraud is a high priority for the U.S. Department of Labor,” said Megan Ireland, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “While the vast majority of union officials do their work diligently and without incident, Linda Shepherd betrayed the trust placed in her by the USW membership and embezzled over $39,000 from the USW, while collecting a salary from her employer and the union, at the expense of the USW and its members.  OLMS will continue to work with our partners to identify criminal violations and pursue appropriate legal action when someone unlawfully exploits their union position to enrich themselves without regard to the best interests of union members.”

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky and Megan Ireland, District Director, DOL Office of Labor-Management Standards , jointly announced the guilty plea.

The investigation was conducted by the Department of Labor. The United States was represented by Assistant U.S. Attorney Kate Smith.

Shepherd is scheduled to be sentenced on November 1. She faces a maximum of five years in prison and a fine of up to $250,000.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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COVINGTON, Ky. – A Dry Ridge, Kentucky, man, Paul Stapleton, 48, was sentenced Friday to 264 months in federal prison, by U.S. District Judge David Bunning, for conspiring to distribute 500 grams or more of methamphetamine and possession of a short-barreled shotgun in furtherance of his drug trafficking.            

Stapleton led a conspiracy that distributed more than 1.5 kilograms of crystal methamphetamine throughout Northern Kentucky.  Agents seized significant amounts of methamphetamine in Campbell and Grant Counties, on October 21, 2019, and seized multiple firearms, including two short-barreled shotguns from the Grant County residence that was the focus of the conspiracy.  Stapleton had four prior felony convictions for drug offenses and committed these crimes while on parole. 

Several of Stapleton’s co-conspirators have already been sentenced to prison terms:  Steven Green (96 months); Steven Ballard (15 months); Lee Grimm (72 months); Donald Kaylor (54 months); A.J. Phillips (120 months); Dewey Phillips (36 months); George Pickett (37 months); Crystal Prewitt (54 months); Joseph Dylan Smith (50 months); Morgan Smith (12 months and one day); April Stapleton 60 months; Jeremy Thomas (54 months); and Amber Turner (18 months).

Stapleton pleaded guilty in April 2021.              

Under federal law, the defendants must serve 85 percent of their prison sentences.  Upon his release, Stapleton will also 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; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Christopher Conners, Director of the Northern Kentucky Drug Strike Force; and Colonel Lee Estepp, Chief of the Bellevue Police Department, jointly announced the sentences.

The investigation was conducted by ATF, the Northern Kentucky Drug Strike Force, and the Bellevue Police Department.  The United States was represented by Assistant U.S. Attorney Tony Bracke.

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LONDON, Ky. – An Ellenwood, Georgia man was convicted late Thursday, by a federal jury sitting in London, of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.           

Following a four-day trial before United States District Judge Robert E. Wier, the jury convicted 36-year-old Quinton Troy Hall of engaging in a conspiracy to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.  The jury also found that Hall had a previous, final conviction for a serious violent felony, specifically Aggravated Assault.

The evidence at trial established that Hall traveled from Atlanta into Corbin, Kentucky to distribute methamphetamine.  Hall supplied several different methamphetamine dealers in Whitley, Knox, and Laurel Counties.  Records established Hall moved drug proceeds through Western Union wire transfers, Green Dot cards, and Money Gram.  Four eyewitnesses testified that Hall was armed when dealing in the Eastern District of Kentucky.  According to testimony at trial, Hall engaged in violent debt collection tactics, including assaulting co-conspirators with firearms.  On January 24, 2020, the Henry County Sheriff’s Office Gang Suppression and Vice Unit executed a warrant at Hall’s Georgia residence.  Officers seized a Sig Sauer p250, Taurus GZC 9mm, Taurus Judge pistol, Keltec subgun 2000 rifle, Aero Precision X15 rifle, and Radom Pioneer Arms Hellpup.  Hall attempted to flee by climbing up into the attic.

Hall was indicted in May 2020 along with eleven co-conspirators, all of whom have been convicted.  The case ultimately involved the seizure of 13 firearms, over $10,000 in U.S. Currency, and several kilograms of methamphetamine. The conspiracy involved the following convictions:

• Angelia Hammons, 47, of Corbin, was convicted of conspiracy to distribute methamphetamine on July 28, 2020.
• Larry Tyler Hammons, 25, of Corbin, was convicted of conspiracy to distribute methamphetamine on December 21, 2020. 
• Glennis Reed Nantz, 49, of Woodbine, Kentucky, was convicted of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking on December 14, 2020.
• Tramone Horne, 36, of Buffalo, New York, was convicted of conspiracy to distribute methamphetamine on December 17, 2020. 
• Alexander Lebeau, 27, of London, was convicted of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense on January 26, 2021.  
• Krysten Powell, 27, of Corbin, was convicted of conspiracy to distribute methamphetamine on December 9, 2020.
• Johnathon Ray Proffitt, 29, of London, was convicted of conspiracy to distribute methamphetamine and felon in possession of a firearm on December 2, 2020.
• Dustin Walters, 37, of Woodbine, Kentucky, was convicted of conspiracy to distribute methamphetamine on December 14, 2020.
• Larry Elkins, 39, of Calhoun, Georgia, was convicted of conspiracy to distribute methamphetamine.
• Jennifer Folgman, 41, of Corbin, was convicted of conspiracy to distribute methamphetamine on July 6, 2020.
• Glennis Kody Nantz, 26, of Corbin, was convicted of conspiracy to distribute methamphetamine in a related indictment on May 28, 2020. 

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Robert S. Morrow, Special Agent in Charge, ATF Louisville Field Division; and Chief Rusty Hedrick, Corbin Police Department, jointly made the announcement.

The investigation was conducted by the ATF and Corbin Police Department, with assistance from Georgia’s Henry County Sheriff’s Office. The United States was represented in the case by Assistant U.S. Attorney Jenna E. Reed.

Hall will appear for sentencing on October 29, 2021.  He faces a mandatory minimum sentence of 15 years and a maximum of life imprisonment.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.

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.

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LONDON, Ky. - A Perry County man was convicted on Monday, by a federal jury sitting in London, 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. 

The jury convicted 65-year-old Thomas Hamblin following a five-day trial, and approximately four hours of deliberations.  

According to evidence 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.    

Thomas Hamblin was indicted in July of 2020, following an investigation 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. 

All of Hamblin’s co-defendants have pled guilty.  Holbrook and Rayburn pled guilty to kidnapping.  Rayburn was sentenced to 135 months in prison and Holbrook awaits sentencing.  Sizemore, Back, and Caudill have all pled guilty to drug charges and are awaiting sentencing.  

Hamblin will appear for sentencing on October 26, 2021, and he faces from 10 years to life in prison.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

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, jointly announced the convictions.  The United States was represented in the case by Assistant U.S. Attorney Andrew H. 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

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LEXINGTON, Ky. – A former Colorado resident, Brendan Camous, 27, was sentenced Tuesday, to 51 months in federal prison, by U.S. District Court Judge Karen Caldwell, for failure to register as a sex offender and possession of an unregistered firearm. 

According to Camous’s plea agreement, a 2014 conviction in Colorado required Camous to register as a sex offender.  Camous last registered as a sex offender in January 2015 and never again updated his address in Colorado – or any other state, including Kentucky.  In April 2017, the U.S. Marshals Service began investigating Camous for violations of Sex Offender Registration and Notification Act (SORNA).  Evidence obtained from a rural property in Nicholas County, Kentucky indicated that Camous resided in a shack on the property with another sex offender, Clinton Peterson. Following an August 2019 criminal complaint against both Camous and Peterson, for violations of SORNA, a U.S. Marshals-led task force apprehended the two in Bath County, Kentucky, on September 17, 2020.  At the time of the arrest, law enforcement located an unregistered sawed-off shotgun under Camous’s bed in the home that he shared with Peterson.

Camous pleaded guilty in April of 2021 to the SORNA violation and possession of an unregistered firearm.           

Under federal law, Camous must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 10 years, following his release.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Norman Euell Arflack, U.S. Marshal for the Eastern District of Kentucky; Commissioner Phillip Burnett, Jr., Kentucky State Police (KSP); Shawn Morrow, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF); and Jeff Sidles, Nicholas County Sheriff, announced the sentencing.

The investigation was conducted by the U.S. Marshals Service, ATF, KSP, and the Nicholas County Sheriff’s Office.  The U.S. Attorney’s Office was represented by Assistant U.S. Attorneys David Marye and Mary Melton.

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LONDON, Ky. – Two Pulaski County Constables were convicted late Friday, by a federal jury sitting in London, of federal civil rights violations and possession with intent to distribute methamphetamine.

After approximately three and a half hours of deliberations, following a five-day trial, the jury convicted Michael Wallace, 47, of Bronston, Ky., and Gary Baldock, 56, of Somerset, Ky., of violating the civil rights of persons within Pulaski County, and of possession with intent to distribute methamphetamine.             

According to the evidence at trial, Wallace and Baldock worked together to violate people’s civil rights by fabricating evidence, which was used as a basis to arrest, to search, and to seize the property of others.  Both Wallace and Baldock were also found to have possessed methamphetamine, for the purpose of planting the drug on potential suspects.

“This case is a disgraceful example of a grave betrayal of trust, a profound violation of the rights of others, and a real danger to our community,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky.  “When those charged with enforcing the law and protecting the public turn instead to corruption, self-interest, and violating the rights of others, that does enduring damage to our communities.  It also undermines the hard work and true dedication of so many.  I want to thank the FBI and our trial team for the hard work and dedication that lead to these guilty verdicts.”

"As evidenced by the jury's guilty verdict, the actions of the two Pulaski County constables were not only harmful to the individuals they swore under oath to protect, but they also undermined public trust and confidence in law enforcement," said Special Agent in Charge Robert Brown of the FBI’s Louisville Field Office. "The FBI will not tolerate those who abuse their authority for their own personal gain and is committed to rooting out public corruption at all level."

Acting United States Attorney Shier and Special Agent in Charge Brown jointly announced the verdicts.

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

Wallace and Baldock will appear for sentencing on October 18, 2021.  They each face up to 10 years for the civil rights convictions; Baldock faces up to 20 years for the methamphetamine conviction; and Wallace faces a minimum of five years, up to 40 years, for the methamphetamine conviction.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

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COVINGTON, Ky.— Larry Ray Clemons, 40, of Burlington, Ky., was sentenced to 126 months in federal prison on Thursday, by U.S. District Judge David Bunning, after pleading guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.            

According to Clemons’ guilty plea agreement, on August 31, 2020, law enforcement executed a search warrant at his address and found 13.74 grams of methamphetamine and cash in his pants pockets.  Law enforcement also found an additional 46.74 grams of methamphetamine, a loaded 9mm handgun, additional cash, and a digital scale in the residence.  Clemons admitted that he intended to distribute the methamphetamine and that he possessed the firearm for protection in his drug trafficking.

Clemons was previously convicted of illegal possession of a controlled substance, in 2018.  Clemons pleaded guilty to the federal charges in March. 

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

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Office; and Sheriff Michael Helmig, Boone County Sheriff’s Office, announced the sentence.

The investigation was conducted by the DEA and the Boone County Sheriff’s Office.  The United States was represented by Assistant U.S. Attorney Amanda Harris.

– END –

LEXINGTON, Ky. — The Acting U.S. Attorney for the Eastern District of Kentucky, Carlton S. Shier , IV, joins the entire Department of Justice in observing the 16th Annual World Elder Abuse Awareness Day and joins the international voices condemning elder abuse, neglect, and exploitation.

The Department of Justice is committed, through its department-wide Elder Justice Initiative (EJI), to preventing and prosecuting fraud on America’s seniors.

“World Elder Abuse Awareness Day is an opportunity to reaffirm our commitment to protecting elderly Americans,” said Acting U.S. Attorney Shier.  “We simply must prioritize protecting the elderly from the many forms of abuse they face, including financial, physical, and sexual abuse, exploitation, and neglect.  While law enforcement has a primary role in this effort, we need to remember that everyone has a role.  Friends and family should actively intercede when they are concerned that elderly loved ones are at risk of abuse, exploitation, or neglect.  Elderly populations are at much greater risk; so, we must all be vigilant in watching over elderly friends and family, become knowledgeable about the various and prominent forms of elder abuse, and learn how to report it to the appropriate authorities.  Our elderly deserve that commitment and protection.”

The COVID-19 pandemic has created unprecedented challenges, particularly for the elderly.  Not only are seniors among those most susceptible and affected by the disease, but they also acutely feel the effects of pandemic precautions.  During the pandemic, seniors are more isolated from their families, friends, and loved ones, making them more vulnerable to bad actors who would exploit the public health emergency to prey on the elderly, particularly with fraud schemes.  This year especially, World Elder Abuse Awareness Day is an important reminder of the dangers.

In its role, and with cooperation from local, state, and federal partners, the U.S. Attorney’s Office prioritizes combating elder financial exploitation.  Two recent examples of Eastern District of Kentucky elder fraud cases include:

• U.S. vs. Fafunmi et al.:  In August 2020, Ismaila Fafunmi, pleaded guilty to money laundering charges related to a romance fraud and grant fraud scheme.  In his plea agreement, Fafunmi admitted that he worked in conjunction with others, who communicated through online chats, to perpetrate a scheme to defraud U.S. citizens through a romance scheme, which targeted women over the age of 50.  Fafunmi and his co-conspirators would set up fake profiles on dating websites profiling American men, often military members.  Fafunmi’s co-conspirators would engage in conversations with victims through the dating website, making the victims believe they were in a romantic relationship with the fictitious profile.  Fafunmi, who was located in the United States, would then help to move the funds from the victim to his coconspirators, located abroad.  Read more: https://www.justice.gov/usao-edky/pr/nigerian-national-pleads-guilty-romance-fraud-and-grant-fraud-scheme
• U.S. v. Teegarden:  In October 2020, Rebecca Teegarden was sentenced to 36 months for theft by a bank employee and aggravated identity theft.  Between 2013 and 2019, Teegarden was employed as a bank teller and admitted to repeatedly using customers’ names and account numbers to make miscellaneous debit cash withdrawals from the customers’ bank accounts, without the customers’ consent. Teegarden held the cash in her teller drawer and later converted the money to her own use, by depositing it into her or her mother’s bank accounts. Teegarden admitted that she selected the accounts of her victims because those customers were elderly and did not regularly monitor their accounts In total, Teegarden admitted that she stole $79,086.00 from victims who were customers at the Bank.. Read more: https://www.justice.gov/usao-edky/pr/bracken-county-woman-sentenced-36-months-theft-bank-employee-and-aggravated-identity

Another example of the U.S. Attorney’s Office’s efforts includes participation in the Kentucky Elder Justice Task Force, a cooperative effort that brings together the law enforcement resources of federal, state, and local agencies involved in protecting the elderly.  For more information on the Kentucky Elder Justice Task Force, including how to report abuses, please visit: https://www.justice.gov/usao-edky/elder-justice-task-force.

More broadly, other Department of Justice elder fraud initiatives include:

• National Elder Fraud Hotline:  Last year, the Department of Justice launched a National Elder Fraud Hotline:  833-FRAUD-11.  Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
• Transnational Elder Fraud Strike Force:  Established in June 2019 to combat foreign elder fraud schemes, the strike force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices, along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel.  Since its inception, prosecutors in strike force districts brought cases against more than 140 sweep defendants.
• Annual Elder Justice Sweep:  In March of 2020, the Department announced the largest coordinated sweep of elder fraud cases in department history.  The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors.
• Money Mule Initiative:  Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute “money mule” activity used to facilitate fraud schemes, especially those victimizing senior citizens.  In 2019, actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 money mules in the previous year.
• Holding foreign-based perpetrators and those who flee the United States accountable:  Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.

For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.                                                                               

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LEXINGTON, Ky. - In a newly unsealed federal indictment, the County Attorney for Lawrence County and his legal secretary have been indicted on charges of conspiracy to commit wire fraud, wire fraud, and federal program theft.           

On Thursday, June 3, a federal grand jury in Lexington returned an indictment charging Michael T. Hogan, 53, and his wife, Joy M. Hogan, 41, with one count of conspiracy to commit wire fraud, and charging Michael Hogan with nine counts of wire fraud, and five counts of federal program theft.            

The indictment alleges that the Hogans conspired with each other to commit wire fraud by issuing checks from a second delinquent tax account for the Lawrence County Attorney’s Office, the statements for which went to their personal residence.  It is alleged that Michael Hogan and Joy Hogan would routinely prepare “bonus” checks issued to Joy, and signed by Michael, paid with delinquent tax funds that should have been used on operating expenses for the Lawrence County Attorney’s Office. The Hogans deposited these checks in Joy’s personal account and the couple’s joint accounts and spent the funds on personal expenses.  The indictment alleges that, between March 8, 2013 and April 30, 2020, Michael Hogan paid Joy Hogan more than $365,000, from the Lawrence County Delinquent Tax Account.           

The indictment also alleges that Michael Hogan defrauded the Lawrence County Child Support Enforcement Office, part of the Kentucky Cabinet for Health and Family Services.  It is alleged Hogan billed the program for far more hours than he actually worked.  It is also alleged Michael Hogan paid employees working for his private law firm with funds from the Child Support Enforcement office.

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

The investigation preceding the indictment was conducted by the FBI and KSP. The case is being handled by Assistant U.S. Attorney Kate Smith.  

Michael Hogan’s initial appearance is June 9 at 11 a.m., and Joy Hogan is scheduled to appear on Friday, June 11, at 1 p.m. On the wire fraud charges, they face up to 20 years in prison and a fine of no more than $250,000 or twice the amount of gain or loss.  On the federal program theft charges, Michael Hogan faces up to 10 years in prison and a fine of no more than $250,000.  However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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

— END —

LEXINGTON, Ky.— Martinus Shamar Watts, 32, of Detroit, was sentenced to 240 months in federal prison on Friday, by U.S. District Judge Karen K. Caldwell, after pleading guilty to conspiracy to distribute 40 grams or more of fentanyl and distribution of fentanyl resulting in serious bodily injury.

According to Watts’ plea agreement, he admitted that he personally distributed fentanyl, that he supplied his co-defendants with the drug for distribution, and that he directed his co-defendants in their distribution of fentanyl.  Watts further admitted that he distributed fentanyl on March 20, 2019 to an individual who overdosed and nearly died from use of the substance.  In June 2019, law enforcement executed a search warrant at Watts’ local address in Lexington.  Officers located drugs, two firearms, and more than $67,000 in U.S. currency that Watts admitted was proceeds of his drug trafficking activities.  

Watts pleaded guilty in August 2020.   

Under federal law, Watts must serve 85 percent of his prison sentence.  Upon his release from prison, Watts will be under the supervision of the U.S. Probation Office for 5 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, Louisville Field Division; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.

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

– END –

LONDON, Ky. - A Corbin, Ky., woman has been indicted for a scheme to commit COVID relief fraud and identity theft.           

A federal grand jury in London returned an indictment charging 35-year-old Karenda Vaughn with fraudulently obtaining funds from Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), which are guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The indictment alleges that, beginning on April 30, 2020 and through March 23, 2021, Vaughn created a fake business entity, Vaughn Outdoor, and submitted numerous fraudulent applications for EIDL proceeds, making numerous false statements about the business.  The indictment also alleges that Vaughn used a stolen identity and personal identifying information to create another fake business entity, Josh’s Nature Cure, and then sought and obtained fraudulent EIDL proceeds.            

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division, jointly announced the indictment.

The investigation preceding the indictment was conducted by the Treasury Inspector General for Tax Administration.  The case is being handled by Assistant U.S. Attorney Kate Smith. 

On the fraud charges, Vaughn faces up to 20 years in prison and a fine of no more than $250,000.  On the identity theft charge, she faces a mandatory, consecutive two-year sentence.  However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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

— END —

LONDON, Ky. — A federal grand jury sitting in London, has indicted Patrick Baker, 42, a resident of Frankfort, Ky., on a federal charge of murder, committed during a robbery and kidnapping related to drug trafficking.

The indictment alleges that Baker committed a robbery and kidnapping, during which the death of Donald Mills occurred by use of a firearm and a quantity of pills containing oxycodone were taken.  The indictment alleges the offense occurred in May of 2014, in Knox County, Kentucky.            

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearm and Explosives Louisville Field Office; and Colonel Phillip Burnett, Jr., Commissioner, Kentucky State Police, jointly announced the indictment.

The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearm and Explosives and the Kentucky State Police.  The indictment was presented to the grand jury by Assistant U.S. Attorney Jenna E. Reed. 

Baker is scheduled to appear in U.S. District Court, at 4:30 p.m. on Tuesday, June 1 in London.

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.                                                                                       

— END —

ASHLAND, Ky. – A Lawrence County, Ky. man was convicted Thursday, by a federal jury sitting in Ashland, of 11 counts of child pornography charges.  The counts included five counts of production, four counts of receipt, one count of distribution, and one count of possession of a matter containing visual depictions of a minor engaging in sexually explicit conduct.

The jury convicted Dale Allen Fraley, 49, after two hours of deliberations, following a   three-day trial.

According to the evidence at trial, Fraley used various online “personas” to induce, persuade, or coerce minors to engage in sexually explicit conduct, for the purpose of producing visual depictions of that conduct.  Fraley, acting through the online “personas,” would threaten minor females to engage in various sexual acts and to record that activity, or send the images to him “live” via Skype or other applications.  He also persuaded the minors to come to his home, sometimes at the behest of the online “personas,” to get “sexual experience” with Dale Fraley as the teacher.  Fraley would sometimes record the sexual activity between himself and the minors at his home, or record the minors masturbating or engaging in the lewd and lascivious exhibition of their genitalia.

Fraley was indicted in October of 2019, with a Superseding Indictment being returned in September of 2020.

Carlton S. Shier, IV., Acting United States Attorney for the Eastern District of Kentucky, James R. Brown, Special Agent in Charge, Federal Bureau of Investigation (FBI) Louisville Division; and Chief Brian Mullins, Eastern Kentucky University Police, jointly announced the jury’s verdict.

The investigation was conducted by the FBI, including a Task Force Officer employed by the Eastern Kentucky University Police Department.  The United States was represented in the case by Assistant U.S. Attorneys David Marye and Mary Melton.

Fraley will appear for sentencing before U.S. District Judge David Bunning, on October 18, 2021.  He faces a maximum of 30 years in prison for each count of production, 20 years for each count of receipt and distribution of child pornography, and ten years for possession of child pornography.  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.

COVINGTON, Ky. — Kevin R. Welsch, 48, of Ft. Thomas, Kentucky pleaded guilty today 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.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation; James Robert Brown, Jr., Special Agent in Charge, FBI Louisville Field Office and Casey Kilgore, Chief of Police, Ft. Thomas Police Department, jointly made the announcement.

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.

Welsch is currently scheduled to appear for sentencing before United States District Court Chief Judge Danny C. Reeves, in Covington, on September 2, 2021 at 10:00 a.m.  Welsch faces a maximum of 20 years in prison.  However, any sentence following conviction would be imposed by the Court, after its consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.             

LEXINGTON, Ky. - A Richmond, Kentucky man was convicted on Tuesday, by a federal jury sitting in Covington, of 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.           

After 45 minutes of deliberations, following a 2-day trial, the jury convicted 57-year-old John William Lawson of the offenses.           

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 indicted in June 2020.           

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 verdict.

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. 

Lawson will appear for sentencing on September 16, 2021.  He faces a mandatory minimum sentence of 20 years and a maximum of life imprisonment.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.

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.

COVINGTON, Ky. - A Richmond, Kentucky, man was found guilty today, by a federal jury sitting in Covington, of possession with the intent to distribute 50 grams or more of methamphetamine and of being a felon in possession of a firearm.           

After less than two hours of deliberation, following a four-day trial, the jury convicted 35-year old Lavone Dixon of both charges.

Dixon was indicted in January 2020.  His co-defendant, Tiffany Thompson, is awaiting a separate trial.  According to the testimony at trial, on September 17, 2019, Dixon traveled to Dayton, Ohio, to pick up over three ounces of crystal methamphetamine for distribution, and was arrested in Grant County, Kentucky while in route to Richmond with the methamphetamine.  Agents executed a search warrant on Dixon’s residence, on September 22, 2019, and located three firearms concealed in the residence.  Dixon was a convicted felon at the time of these offenses and was not permitted to legally possess firearms.  The testimony also indicated that Dixon had traveled to Dayton for methamphetamine and heroin, multiple times, and distributed those drugs in the Richmond area           

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Shawn Morrow, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, jointly announced the verdict.

The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the AHIDTA Richmond Task Force, the AHIDTA Mount Sterling Task Force, Miami Valley Bulk Smuggling Task Force, and the Kentucky State Police.  The United States was represented in the case by Assistant U.S. Attorney Tony Bracke. 

Dixon will appear for sentencing on September 7, 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.

LEXINGTON, Ky. - Several Central Kentucky men, Roger Wilson, Robert Livingood, John Watkins, and Morgan Wayne Culbertson pleaded guilty in federal court Monday, to charges related to crop insurance fraud.           

Roger Wilson, 88, former owner of Clay’s Tobacco Warehouse and current owner of Ag Wood, Inc., both in Mt. Sterling, Kentucky, pleaded guilty to conspiring to commit crop insurance fraud before U.S. District Judge Karen K. Caldwell.  Wilson admitted that between September 2013 and May 2018, he arranged for farmers to purchase poor quality tobacco to present to tobacco graders, so the farmers could receive poor quality tobacco grades to report to on their federally-backed tobacco insurance (called multi-peril crop insurance or “MPCI”) claims of loss.  Wilson further admitted he knew his actions were designed to facilitate the filing of false claims of loss, which in turn caused the federal government to pay out indemnity payments, or to increase the amount of those payments, to farmers who were not entitled to them.           

Robert Livingood, 64, a farmer who owns and rents tobacco farmland in Bourbon, Fleming, Harrison, and Nicholas Counties, also pleaded guilty to conspiring to commit crop insurance fraud.  Livingood admitted that, in Crop Year 2014, he submitted a false MPCI claim of loss, by submitting fake tobacco sales bills he obtained from Clays Tobacco Warehouse and underreporting the amount of tobacco production he had that year.  He further admitted to selling muddy tobacco, which he knew would be used by other farmers to obtain fake grade reports.  According to his plea agreement, Livingood also obtained MPCI policies in his son’s name, in Crop Years 2014 and 2015, even though the crop ensured in his son’s name actually belonged to Livingood.  As a result of his misrepresentations, Livingood caused a loss to the federal government of approximately $313,652.

John D. Watkins, 49, a farmer who owns and rents tobacco farmland in Bath, Fleming, and Nicholas Counties, pleaded guilty to one count of conspiring to commit crop insurance fraud and one count of crop insurance fraud.  In his plea agreement, Watkins admitted to failing to report his total tobacco production from Crop Years 2011 through 2014, which influenced the federal government to pay out sums of indemnity payments to which he was not entitled.  He further admitted to having an agreement with Kevin Watkins, his co-defendant, to handle Kevin Watkins’s MPCI paperwork and to fail to accurately report Kevin Watkins’s tobacco production, likewise influencing the federal government to pay out indemnity payments to which Kevin Watkins was not entitled.

Morgan Wayne Culbertson, 33, a farmer with tobacco farmland in Montgomery, Clark, and Bath Counties, also pleaded guilty today to a conspiracy to commit crop insurance fraud.  According to his plea agreement, Culbertson underreported his crop production on his MPCI claims of loss, by, among other things, selling tobacco for cash at Clay’s Tobacco Warehouse and failing to report tobacco he sold in others’ names.  He also admitted to obtaining fake grade sheets by paying $0.20 per pound to obtain quality adjustments on the tobacco production he did report.  In Crop Years 2015 and 2016, Culbertson also failed to report his total production on his own policies.  He also obtained policies and filed claims of loss, including fake sale bills from Clay’s Tobacco Warehouse, on MPCI policies in the names of his brother (2014 and 2015), grandfather (2014 and 2015), and mother (2015 and 2016).

Previously, two other farmers, Jesse Smith and R. Chad Price, pleaded guilty to crop insurance fraud related offenses.  On April 29, 2021, Jesse Smith, 56, pleaded guilty to committing crop insurance fraud.  On May 5, 2021 Price, 39, pleaded guilty to conspiring to commit crop insurance fraud and tax evasion.  Smith and Price both admitted to working with others to submit false MPCI claims of loss.               

Acting U.S. Attorney Carlton S. Shier IV; Jason M. Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation; James Robert Brown, Jr. Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office:, and Sharon P. Clark, Commissioner, Kentucky Department of Insurance jointly announced the guilty pleas.

The investigation was conducted by the United States Department of Agriculture Office of Inspector General; United States Department of Agriculture Risk Management Agency; Internal Revenue Service, Criminal Investigation; Federal Bureau of Investigation; and the Kentucky Department of Insurance.  The United States was represented by Assistant U.S. Attorneys Kathryn Anderson and Erin Roth. 

Jesse Smith and R. Chad Price face a maximum sentence of five years in prison and a fine of $250,000Jesse Smith, R. Chad Price, Roger Wilson. John D. Watkins are scheduled to be sentenced on August 19, 2021.  Wilson faces a maximum sentence of five years in prison and a fine of $250,000, while Watkins faces a maximum of thirty years in prison and a fine of $1,000,000.  Robert Livingood and Morgan Culbertson face a maximum sentence of five years in prison and a fine of $250,000 and are scheduled to be sentenced on August 12, 2021.  Any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal statutes. 

LEXINGTON, Ky. — In honor of National Police Week, Acting U.S. Attorney Carlton S. Shier, IV recognized the service and sacrifice of federal, state, local, and Tribal law enforcement.  This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.

“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland.  “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer.  To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice.  On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”

“Making the commitment to serve your community is the first of many sacrifices that members of law enforcement choose to make when they turn to public service,” said Acting U.S. Attorney Shier.  “The work that follows is demanding, persistent, and hazardous; but without that service and sacrifice, our communities become less safe and less resilient.  National Police Week reminds us to collectively reflect on the sacrifices of members of law enforcement and allows us to show our sincere appreciation for the service they provide to our communities.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe.  This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.

During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored.  Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. Here in the Eastern District of Kentucky, one officer died in the line of duty, due to COVID-19.  

Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020.  LEOKA statistics can be found on FBI’s Crime Data Explorer website. 

 The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.

Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.   

To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.

LEXINGTON, Ky. - An Estill County man was convicted on Thursday, by a federal jury sitting in Lexington, of four counts of trafficking methamphetamine and a firearm offense.

Following a three day trial before United States District Judge Karen K. Caldwell, the jury convicted 56 year-old George Harrison on three counts of distribution of 50 grams or more of methamphetamine, one count of possession with the intent to distribute methamphetamine, and possession of a firearm by a convicted felon. 

The evidence at trial established that 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 indicted in August of 2019.           

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; 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, jointly announced the jury’s verdict.

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

Harrison will appear for sentencing on August 6, 2021.  If the district court finds Harrison’s prior Kentucky conviction for complicity to commit murder conviction is a serious violent felony, he faces a mandatory minimum of 15 years to life imprisonment.  For the firearm offense, he faces up to ten years.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

LEXINGTON, Ky. – The federal government has reached an agreement with a northern Kentucky dentistry practice, which will increase access to dental services for patients with disabilities.

The settlement agreement resolves a compliance investigation, under the Americans with Disabilities Act (ADA), into North Fort Mitchell Family Dentistry.  The investigation was initiated by a complaint to the U.S. Department of Justice, asserting the dentistry office was not accessible to people who used wheelchairs.  The ADA prohibits places of public of accommodation, including the professional offices of health care providers, from discriminating against individuals with disabilities and requires them to remove architectural barriers to access.

As part of the agreement, the practice’s owner has agreed to add accessible parking, install a wheelchair lift, and post signage.  Some of the required work under the agreement has already been completed.

The U.S. Attorney’s Office for the Eastern District of Kentucky, in partnership with the Justice Department’s Civil Rights Division, enforces a variety of federal statutes that prohibit various forms of discrimination, including the ADA, through its Affirmative Civil Enforcement (“ACE”) section.  This matter was handled by Assistant United States Attorney Carrie Pond.

For more information on the ADA, visit ADA.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY).

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LEXINGTON, Ky.— A Danville, Ky., man, Leonard Riley, 45, was sentenced to 87 months in prison on Friday, before Chief U.S. District Judge Danny Reeves, after previously pleading guilty to transporting child pornography using the Internet.   

According to Riley’s plea agreement, he admitted that on July 30, 2017, he was in possession of 23 images and two videos of child pornography on his smart phone.  These images depicted children under 12 engaged in sexually explicit conduct.  Riley further admitted that he knew the images he received, possessed, and transported through his computer involved minors engaged in sexually explicit conduct.

Riley pleaded guilty in January 2021.

Under federal law, Riley 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 10 years.

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 Colonel Phillip Burnett, Commissioner of the Kentucky State Police, announced the sentence.

The investigation was conducted by DHS-HSI and KSP-Electronic Crime Branch. The United States was represented by Assistant U.S. Attorney David Marye.  

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.

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LEXINGTON, Ky. – A Booneville, Kentucky pharmacy, Public Drug Company, d/b/a Booneville Discount Drugs, has agreed to pay the United States $250,000 to settle civil allegations that it failed to make and maintain complete and accurate records of its controlled substances, in violation of the federal Controlled Substances Act (“CSA”).

Under the CSA, pharmacies authorized to possess controlled substances are required to maintain complete and accurate records of each controlled substance received, dispensed, and disposed.  The U.S. Drug Enforcement Administration (“DEA”) has the authority to inspect the records of these pharmacies and verify that their controlled substances records are complete and accurate in compliance with the CSA.

The United States alleged that Booneville Discount Drugs failed to maintain complete and accurate records of its controlled substances inventories from November 25, 2016 to April 25, 2018.  In an audit performed by the DEA, Booneville Discount Drugs’ records did not account for observed shortages of oxycodone and methadone in its inventories during this time period.  Booneville Discount Drugs also self-disclosed its recordkeeping discrepancies of controlled substances to the DEA.

The Government’s work in this investigation illustrates its commitment to combatting violations of controlled substances laws.  Tips from all sources about possible violations of controlled substances laws can be reported to the DEA at www.dea.gov/submit-tip.

The DEA, Diversion Control Division conducted the investigation of alleged violations.  Assistant United States Attorney Meghan Stubblebine represented the United States.  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

– END –

COVINGTON, Ky.—       Quinn R. Turner, 32, of Louisville, Kentucky, was sentenced to 300 months in federal prison on Friday, by U.S. District Judge David Bunning, after being convicted of conspiracy to distribute 50 grams or more of methamphetamine, possession of 50 grams or more of methamphetamine with intent to distribute, possession of a firearm in furtherance of drug trafficking, and being a felon in possession of a firearm.   

Turner was convicted on September 17, 2020 after a three-day jury trial.  Evidence at trial showed that Turner led a conspiracy responsible for distributing multiple kilograms of crystal methamphetamine during 2018.  He was arrested with a loaded handgun while attempting to sell a pound of methamphetamine in Warsaw, Kentucky on October 3, 2018.  Turner has a prior conviction for armed bank robbery and was released from prison less than a year before committing these crimes.

Turner was indicted in December 2018.  He was the final member of the conspiracy to be sentenced.  Turner’s co-defendants previously pleaded guilty to conspiracy charges and were sentenced in October 2020.  Ashley Daugherty received 60 months in prison and Laura West received 42 months in prison. 

Under federal law, Turner 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; Keith Martin, Special Agent in Charge, DEA Detroit Field Division; and Director Christopher Conners, Northern Kentucky Drug Strike Force, jointly announced the sentence. 

The investigation was conducted by the DEA and the Northern Kentucky Drug Strike Force.  The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys Kyle Winslow and Tony Bracke.

       – END –

LEXINGTON, Ky. – A Paris, Ky., man, Johnathan Scott Mason, 27, was sentenced to 360 months on Wednesday, by U.S. District Judge Karen Caldwell, for the production of child pornography. 

According to his guilty plea agreement, in March 2020, law enforcement officers were made aware of Mason’s activity on the social media application, Kik.  On this app, Mason expressed a sexual interest in children and said that he had sexually explicit images of minors, which he had produced.  Mason admitted that he knew that the visual depictions were produced and transported using the Internet.                       

Mason pleaded guilty in January 2021.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Lt. Colonel Phillip Burnett, Acting Commissioner of the Kentucky State Police; jointly announced the sentence.

Under federal law, Mason name 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.

The investigation was conducted by Department of Homeland Security-HSI and KSP-Electronic Crimes Branch.  The United States was represented by Assistant U.S. Attorney David Marye. 

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 Versailles, Ky., man, David McKinney, 52, was sentenced to 240 months in federal prison on Wednesday, by U.S. District Judge Karen Caldwell, after previously pleading guilty to distribution of 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.           

According to his plea agreement, McKinney admitted that, from November to December 2019, he distributed more than 50 grams of methamphetamine.  On December 10, 2019, during traffic stop, law enforcement found McKinney in possession of methamphetamine and a handgun. The firearm was loaded with a round in the chamber.  Law enforcement also located a digital scale in McKinney’s pocket.  McKinney admitted that he possessed the handgun for his protection and to further his drug trafficking crimes.

McKinney pleaded guilty in October 2020.

Under federal law, McKinney name 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 10 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 Office; and Lt. Colonel Phillip Burnett, Acting Commissioner, Kentucky State Police, jointly announced the sentence.

The investigation was conducted by the DEA and Kentucky State Police.  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. — A Lexington man pled guilty Tuesday, to charges of conspiracy to commit bank fraud and filing false tax returns.           

Ricky L. Meek, 63, pled guilty to an information charging him with one count of conspiracy to commit bank fraud and one count of filing false tax returns.            

The information charged that Meek conspired with J.M., the daughter of H.W., to receive and spend funds, that were deposited in a federally insured financial institution, under false pretenses.  In his guilty plea agreement, Meek admitted that he and J.M. failed to notify the Kentucky Teachers Retirement System (KTRS) of H.W.’s death, back in 2014.  Then, for a period of nearly five years, Meek and J.M. took H.W.’s pension benefits, which were continuing to be deposited in H.W.’s bank account, even though H.W. was only entitled to those benefits for her lifetime.  Meek admitted that he and J.M. purported to act as H.W. (or H.W.’s power of attorney) when withdrawing and spending the money.  As a result of his actions, Meek admitted to causing KTRS to pay out $256,253.13 in retirement benefits improperly. He also admitted to failing to report those funds on his tax returns.           

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation; and Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburg Division, jointly announced the guilty plea.

The investigation was conducted by the Internal Revenue Service – Criminal Investigation and United States Postal Inspection Service.  The United States was represented by Assistant U.S. Attorney Kathryn Anderson.

Meek is scheduled to appear on July 15, 2021, for sentencing at 1:00 p.m.  He faces up to 30 years in prison and a maximum fine of $1,000,000 on the bank fraud charges and up to three years in prison and a maximum fine of $250,00 on the false tax return charges.  Any sentence, however, will be set by the Court, after its consideration of the U.S. Sentencing Guidelines and the applicable sentencing statutes.  Meek has agreed to provide restitution in this case.

LEXINGTON, Ky. – A Perryville, Ky., man, Kenneth Ray Cook, 42, was sentenced on Tuesday to 324 months in federal prison, by U.S. District Judge Karen Caldwell, following his conviction for distribution of child pornography.           

According to his plea agreement, on August 28, 2019, Cook admitted to intentionally uploading images of child pornography on the Internet.  Additionally, Cook’s distribution and possession of child pornography involved 600 or more images, including eight videos or similar visual depictions.  Cook had a prior qualifying conviction, further enhancing his sentence.                       

Cook pleaded guilty to the charge in October 2020.

Under federal law, Cook must serve 85 percent of his prison sentences.  Cook will be under the supervision of the U.S. Probation Office for life, following his release.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Lt. Colonel Phillip Burnett, Acting Commissioner of the Kentucky State Police; jointly announced the sentence.           

The investigation was conducted by the DHS-HSI and KSP.  The United States was represented by Assistant U.S. Attorneys David Marye and 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.

LONDON, Ky. — An Elkhorn City, Ky., man was indicted Thursday, on charges of bank fraud and filing false tax returns.           

A federal grand jury sitting in London returned the indictment charging Timothy Belcher, 55, with seven counts of bank fraud and three counts of filing false tax returns.            

The indictment alleges that Belcher used his position as an attorney to misappropriate money from a client’s escrow account, over a period of years, and that he failed to report those funds as income on his federal tax returns.           

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., 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 indictment was presented to the grand jury by Assistant U.S. Attorney Andrea Mattingly Williams. 

A date for Belcher to appear in court has not yet been scheduled.  He faces up to 30 years in prison and a maximum fine of $1,000,000 on the bank fraud charges and up to three years in prison and a maximum fine of $250,00 on the false tax return charges.  However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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

PIKEVILLE, Ky. – A Johnson County man, Sean Tharp, was sentenced to 125 months in federal prison on Thursday, by United States District Judge Robert E Wier, following his conviction for conspiring to distribute methamphetamine.

Tharp pled guilty to the charge in November 2020.            

According to his plea agreement, between April 2020 and September 2020, Tharp conspired with others to distribute more than 500 grams of methamphetamine.  Tharp admitted that he developed a relationship with a supplier of methamphetamine outside of Kentucky, from whom he obtained pound quantities of methamphetamine on multiple occasions.  Tharp admitted to traveling to Georgia to obtain the methamphetamine, which he brought back to the Johnson County area to sell.  In his plea agreement, Tharp admitted that the conspiracy involved at least 1.5 kilograms of methamphetamine.   

Under federal law, Tharp must serve 85 percent of his prison sentence.  Upon Tharp’s 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; Jeffrey Todd Scott, Special Agent in Charge, DEA Louisville Field Division; and Doug Saylor, Johnson County Sheriff, jointly announced the guilty plea.

The investigation was conducted by the DEA and Johnson County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney Andrew Trimble.

LONDON, Ky.— Danny Butt, 48, of Science Hill, Ky., was sentenced to 180 months in federal prison on Wednesday, by U.S. District Judge Claria Horn Boom, after previously pleading guilty to possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.       

According to Butt’s plea agreement, on August 11, 2020, law enforcement conducted a search warrant at Butt’s residence and found him in possession of 50 grams of methamphetamine, which he admitted was his and intended to sell.  In the same room, law enforcement found digital scales, baggies, syringes, cash, a loaded rifle, and a loaded pistol.  Butt admitted to owning the firearms to protect himself, his methamphetamine, and the proceeds.

Butt pleaded guilty in November 2020.

Under federal law, Butt must serve 85 percent of their prison sentence.  Upon Butt’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, James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office and Greg Speck, Pulaski County Sheriff , jointly announced the sentence.

The investigation was conducted by the FBI and the Pulaski County Sheriff's Department.  The United States was represented by Assistant U.S. Attorney Andrew Trimble.

This is 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, the U.S. Attorney 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 targeted 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.

LONDON, Ky. – A former Middlesboro firefighter, Robert Christopher England, 36, was sentenced on Tuesday, to 300 months in federal prison, by U.S. District Judge Claria Horn Boom, after previously being convicted of receiving and possessing child pornography, on a Middlesboro Fire Department laptop. 

According to the evidence at trial, England received child pornography on three separate occasions and possessed a collection of over 600 images, between April of 2017 and June 23, 2018.  England’s fire department laptop was seized, on June 23, 2018, by the Middlesboro Police Department.  At the time, England was serving as a Lieutenant within the Middlesboro Fire Department.  A forensic review conducted by the Kentucky State Police Electronic Crimes Branch showed evidence of dark web access via Tor Browser and child pornography “playlists” created in ManyCam, a web conferencing program.

The Court found that England possessed images portraying sadistic conduct and children under the age of 12 years.  England was also found to have engaged in a pattern of hands-on sexual abuse of a minor and the willful obstruction of justice for deleting his child pornography collection when confronted by law enforcement.   

England was convicted in November 2020.  

Under federal law, England 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 20 years.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, James R. Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation (FBI) Louisville Division; and Acting Commissioner Col. Phillip Burnette, Jr., Kentucky State Police, jointly announced the sentence.

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

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.

FRANKFORT, Ky.— Darryl W. Stewart, Jr., 32, of Lexington, was sentenced to 83 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, after pleading guilty to possession of a firearm by a convicted felon.          

According to Stewart’s plea agreement, he admitted that on September 3, 2019, law enforcement found him in possession of a handgun.  Stewart admitted that he was a convicted felon and was prohibited from possessing a firearm.

Stewart was previously convicted of Reckless Homicide in Fayette Circuit Court, in December 2015.  Stewart pleaded guilty to the current charge in December 2020.

Under federal law, Stewart 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.

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

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, the U.S. Attorney 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 targeted 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.

COVINGTON, Ky. – A Florence man, John P. Darnell, 65, was sentenced on Friday to 248 months in federal prison, by U.S. District Judge David Bunning, for conspiring with others to distribute methamphetamine and possession of a firearm by a convicted felon.         

According to his guilty plea agreement, Darnell conspired with others to distribute 500 grams of more of methamphetamine, between March 1, 2019 and December 11, 2019. Specifically, Darnell admitted that law enforcement executed a search warrant on a residence and located three firearms and four baggies of methamphetamine that belonged to him.  Darnell further admitted that he was a convicted felon and was prohibited from possessing a firearm.                     

Darnell pleaded guilty in July 2020.

Darnell’s co-defendants were previously sentenced.  Buddy J. Pauly received 72 months in prison and three years of supervised release.  Lori A Wilson received 30 months in prison and five years of supervised release.  

Under federal law, Darnell and his co-defendants must serve 85 percent of their prison sentences.  Darnell 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; and Robert Brown, Special Agent in Charge, FBI, Louisville Field Division, jointly announced the sentencing.        

The investigation was conducted by the FBI.  The United States was represented by Assistant U.S. Attorney Tony Bracke.

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, the U.S. Attorney 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 targeted 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.

COVINGTON, Ky. – A Cincinnati man, Sammie Green, 25, was sentenced to 174 months in federal prison on Tuesday, by U.S. District Judge David Bunning, after previously pleading guilty to carjacking and discharging a firearm in furtherance of a crime of violence.   

 According to his plea agreement, Green admitted that, on August 15, 2019, he got into a domestic dispute with his girlfriend, during which a pizza delivery driver arrived.  His girlfriend and her children fled from Green and asked the delivery driver to call the police.  As the delivery driver called the police, Green fired multiple shots from a handgun.  Green then approached the delivery driver, pointed the gun at him, and demanded the keys of his vehicle.  When the delivery driver complied, Green fled in the stolen vehicle.

Green pleaded guilty to the charges in September 2020.           

Under federal law, Green 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 from prison.

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 Michael Helmig, Boone County Sheriff, jointly announced the sentence.

The investigation was conducted by the ATF and Boone County Sheriff’s Department.  The United States was represented by Assistant U.S. Attorneys Tony Bracke and Kyle M. Winslow.

LONDON, Ky. — A Monticello, Ky., man, Chandler Burnette, 40, was sentenced today to 84 months, by U.S. District Judge Robert Wier, for possession with intent to distribute methamphetamine and possession of firearm by a convicted felon.            

According to Burnette’s plea agreement, on September 17, 2019, law enforcement officers responded to a theft report at Burnette’s residence.  There, they found him in possession of 38 grams of methamphetamine and scales.  Burnette admitted to possessing the drugs with the intent to distribute it to others.  Law enforcement also found Burnette in possession of a .22 caliber handgun.  Burnette admitted knowing he was a convicted felon and was prohibited from possessing a firearm.                        

Burnette pleaded guilty in October 2020.

Under federal law, Burnette 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 from prison. 

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 Tim Catron, Wayne County Sheriff, jointly announced the guilty plea.

The investigation was conducted by ATF and Wayne County Sheriff’s Department.  The United States was represented by Assistant U.S. Attorney Nick Rabold. 

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, the United States Attorney 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 targeted 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

LEXINGTON, Ky. - A Hollywood, Florida, woman, Janaina Nascimento, 38, was sentenced on Thursday, by U.S. District Judge Karen Caldwell, to six months in federal prison, after previously being convicted of selling counterfeit Ethicon Surgicel® Original Hemostat (“Surgicel”), an absorbable surgical mesh used to control bleeding, that was ultimately purchased by the University of Kentucky Medical Center. 

Nascimento pled guilty to one count of introducing into interstate commerce a “misbranded” medical device, in violation of the Food, Drug, and Cosmetic Act.  In her plea agreement, Nascimento admitted that in January 2019, she purchased 70 boxes of Surgicel from a distributor in the United Arab Emirates.  When she attempted to re-sell the product to a United States purchaser, that buyer cautioned her that the Surgicel was not authorized for sale in the United States, pointing to a warning label on the box that stated “NOT FOR RE-EXPORT TO THE U.S.A.”  Instead of investigating potential problems with the Surgicel, Nascimento removed individual packages of the product from their boxes with the warning label, and sold 828 such packages to a company called XS Supply, LLC, which then resold those 828 units to the University of Kentucky Medical Center, in April 2019.  After complaints from several surgeons about the product, an investigation determined that the 828 units of Surgicel sold by Nascimento were a non-sterile counterfeit.

Following her term of imprisonment, Nascimento will be on supervised release for a period of one year, during which time she will be prohibited from operating or working for any company engaged in the sale of medical devices.  Nascimento also paid restitution of $24,012 to the University of Kentucky Medical Center.

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

The investigation was conducted by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Kentucky State Police.  The United States was represented by Assistant U.S. Attorney Paul McCaffrey. 

LEXINGTON, Ky. – A Cynthiana, Ky., man, Randall Perry, 54, was sentenced on Thursday to 36 months in federal prison, by U.S. District Judge Karen Caldwell, for mail fraud.

Perry pleaded guilty to one count of mail fraud in June 2020.  According to his plea agreement, Perry was an employee at Toyota Motor Manufacturing Kentucky (TMMK) in Georgetown, Ky.  Perry admitted that between November 9, 2015 and November 6, 2017, he stole various parts and equipment from the Georgetown plant, then sold some of those stolen parts through eBay and other means, fraudulently representing to online consumers that he was in lawful possession of the equipment he offered for sale.  Perry mailed stolen equipment to purchasers and obtained $254,799.30 from this scheme.

TMMK identified 842 stolen parts and valued them at $1,216,147.61.  The Court found TMMK’s loss calculation to be appropriate and ordered Mr. Perry to also pay restitution equal to that loss amount.

Under federal law, Perry must serve 85 percent of his prison sentences.  Perry will be under the supervision of the U.S. Probation Office for one year, following his release.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Lesley C. Allison, U.S. Postal Inspector in Charge of the Pittsburg Division; and Michael Bosse, Chief of the Georgetown Police Department, jointly announced the sentence.

The investigation was conducted by USPIS and Georgetown Police Department.  The United States was represented by Assistant U.S. Attorney Tashena Fannin.

LONDON, Ky. - A Williamsburg, Ky., man, Amos Sparkman, 25, pleaded guilty on Tuesday, before U.S. District Judge Claria Horn Boom, to the production of child pornography.       

According to his guilty plea agreement, in October 2020, Sparkman started an online relationship with a minor female, using the social media platform Snapchat. Sparkman confessed to a sexual relationship with the minor and possessed a video of the minor engaging in sexually explicit conduct with Sparkman.  Sparkman admitted that he used the minor victim to produce visual depictions of the minor engaging in sexually explicit conduct and that the depictions were then transferred using Snapchat.

Sparkman was indicted in January 2020.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.

The investigation was conducted by the FBI.  The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed.

Sparkman is scheduled to be sentenced on July 13, 2021.  He faces a minimum of 15 years and a maximum of 30 years in prison, in addition to a maximum $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 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.

LONDON, KY. - A Manchester man, Richard Scott Smith, 45, was sentenced on Tuesday to 196 months in federal prison, by U.S. District Judge Claria Horn Boom, for one count of distribution and one count of possession of child pornography. Smith was further ordered to pay $31,000 in restitution to his victims. 

In his plea agreement, Smith admitted to distributing sexually explicit images of an 8-year-old female via the Skout application.  Skout is a social networking application.  Judge Boom held that Smith’s conduct involved children as young as 3-years-old and involved more 1,200 images under the United States’ Sentencing Guidelines.  Smith has two prior convictions for assault, and a federal conviction for transporting undocumented aliens within the United States.  

Smith pled guilty in October of 2020.

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

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky and James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.

The investigation was conducted by the FBI London Office.  The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed. 

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.

LEXINGTON, Ky. – MD Food, the owner of a Subway franchise in Crescent Springs, Kentucky (“MD Food”), will pay $1,000 to a complainant and modify its policies and practices, to ensure access for individuals with disabilities using a service animal, as part of a civil settlement agreement with the federal government.  The agreement resolves a civil investigation by the U.S. Attorney’s Office for the Eastern District of Kentucky into allegations that MD Food excluded an individual using a service animal, in violation of the Americans with Disabilities Act. (“ADA”).

The investigation was prompted by a citizen complaint.  The complainant, a veteran, suffers from post-traumatic stress disorder and uses a service animal to assist with his disability.  He attempted to dine-in at the Subway restaurant, but an employee required him to leave, pursuant to its “no dogs” policy.  Because of the denial of access, the veteran reported that he was embarrassed, anxious, and suffered emotional distress.

Under federal law, private entities that own or operate places of “public accommodation,” including restaurants, are required to modify their policies, practices, or procedures—such as a no pet policy—to permit the use of a service animal by an individual with a disability.  A service dog generally may go wherever the public is allowed, and a public accommodation may not require documentation about the service dog.

“Restaurants, as public accommodations, are required to ensure proper access to their customers with disabilities,” said Carlton S. Shier, IV, Acting Untied States Attorney for the Eastern District of Kentucky.  “This includes allowing service dogs, which are a necessary means for many individuals with disabilities.  The Department of Justice is committed to ensuring that individuals with disabilities have proper access under the ADA and we are pleased that MD Food has agreed to modify its policies and practices to comply with the Act.”

Under the agreement, MD Food will adopt and implement a service dog policy; provide training on the service dog policy to employees and managers; post the service dog policy at the restaurant; and pay $1,000 in damages to the veteran.  MD Food cooperated with the government throughout the investigation.

This matter was handled by Assistant U.S. Attorney Carrie Pond, in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.

People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

LONDON, Ky. – An Atlanta man, Tramone Brandon Horne, 36, was sentenced to 270 months in federal prison on Friday, by U.S. District Judge Robert E. Wier, after previously admitting to engaging in a conspiracy to distribute aggravated amounts of methamphetamine throughout Whitley, Laurel, and Knox Counties.  

In his guilty plea agreement, Horne admitted to traveling from Georgia into Whitley County to deliver methamphetamine in pound quantities.  The Court found that Horne occupied a management role in the conspiracy, and employed violence and firearms.  Horne has several prior felony convictions, including convictions for aggravated assault with a deadly weapon, robbery, burglary, terroristic threats, and possession of a firearm by a convicted felon.  Horne had been released from a prior period of state incarceration less than four months before he joined the methamphetamine trafficking conspiracy.

Horne pled guilty in August of 2020. Under federal law, Horne must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years, after his release from prison.

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

The investigation was conducted by ATF and the Corbin Police Department.  The United States was represented in the case by Assistant U.S. Attorney Jenna E. Reed.

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

A federal grand jury in Kentucky returned an indictment Wednesday charging two doctors for their alleged involvement in conspiracies to illegally distribute opioids and commit health care fraud.

According to court documents, Drs. William Lawrence Siefert, 67, of Dayton, Ohio, and Timothy Ehn, 48, of Union, Kentucky, orchestrated their alleged illegal prescribing and health care fraud conspiracies through Northern Kentucky Center for Pain Relief, a pain clinic in Florence, Kentucky. Siefert, a medical doctor, was employed by the clinic, while Ehn, a chiropractor, was the clinic’s owner. Siefert and Ehn allegedly offered drug-seeking patients who should not have received opioids easy access to these dangerous controlled substances, then billed Medicaid for millions of dollars in medically unnecessary urinalysis testing related to these patients.

The indictment alleges that Siefert and Ehn’s alleged illegal opioid prescribing conspiracy was a contributing factor in the opioid overdose deaths of at least six former clinic patients.

Siefert and Ehn are each charged with one count of conspiracy to unlawfully distribute controlled substances and one count of conspiracy to commit health care fraud. Separately, Siefert was charged with three counts of health care fraud and 11 counts of illegal distribution of controlled substances, including oxycodone, hydrocodone, and clonazepam, and Ehn was charged with eight counts of health care fraud.

The announcement was made by Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Carlton S. Shier IV of the Eastern District of Kentucky; Special Agent in Charge Keith W. Martin of the U.S. Drug Enforcement Administration’s (DEA) Detroit Field Division; Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Region; Special Agent In Charge James “Robert” Brown Jr. of the FBI’s Louisville Field Office; and Executive Director W. Bryan Hubbard of the Kentucky Medicaid Fraud Control Unit (MFCU) in the Kentucky Attorney General’s Office made the announcement.

This case was investigated by the DEA’s Detroit Field Division, Cincinnati District Office Diversion Group; the FBI’s Louisville Field Office; HHS-OIG’s Louisville Field Office; and the Kentucky MFCU.

Trial Attorney Dermot Lynch and Assistant Chief Kilby Macfadden of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force.  Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged 91 defendants, including 68 licensed medical professionals, and its casework has targeted the alleged illegal distribution of more than 65 million controlled substance pills involving more than 350,000 prescriptions. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.

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

LEXINGTON, Ky. – Randolph Morris was indicted yesterday on federal charges of wire fraud and making false statements on his federal tax returns.  As alleged in the indictment, from 2010 to 2017, Morris failed to report more than $13 million dollars that he earned while working as a professional basketball player in the Chinese Basketball Association (CBA).

A federal grand jury sitting in Lexington returned an 11-count indictment against the 35-year-old Morris, who played at the University of Kentucky from 2004 to 2007, before entering the National Basketball Association (NBA), where he played until 2010.  The wire fraud counts allege that Morris submitted false income information to the Kentucky Department of Revenue, for the 2015, 2016 and 2017 tax years, when he played for the Beijing Ducks.  The alleged failure to report any of his earnings from his Chinese team during those years deprived the state of Kentucky of more than $400,000 in tax revenue.  The remaining eight counts allege that Morris failed to report his earnings from the Beijing Ducks on his federal 1040 and 1040A forms, for the years 2010 through 2017.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation Cincinnati Field Office, jointly announced the indictment. 

A date for Morris to appear in federal court has not yet been scheduled.  He faces up to 20 years in prison and a fine of $250,000 on each wire fraud count.  For the counts of making false statements on tax returns, he faces a maximum prison sentence of three years.  However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.

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