Eastern District of Kentucky

FRANKFORT, Ky. – A compounding pharmacy based in Nicholasville, and its owner, were sentenced in federal court on Wednesday, by U.S. District Judge Gregory F. Van Tatenhove, for unlawful distribution of compounded prescription drugs.  Tailor Made Compounding (TMC) was sentenced to three years probation and forfeited $1,788,906.82.  The owner, Jeremy Delk, was sentenced to three years probation, including four months home incarceration, 100 hours of community service, a $20,000 fine, and a prohibition from participating in a business involving the distribution of prescription drugs.

Delk was sentenced on his guilty plea to one count of unlawfully engaging in wholesale distribution of a prescription drug, without licensing TMC as a wholesale distributor with the Kentucky Board of Pharmacy.  According to his plea agreement, from October 23, 2018 through May 14, 2020, TMC sent 112 vials of Methylcobalamin, a prescription form of vitamin B12, to a licensed physician who operated an anti-aging/wellness clinic in the Greater Los Angeles area.  Rather than sending individualized, patient-specific prescriptions to TMC, as is required by law, this physician made bulk orders of Methylcobalamin without issuing prescriptions or providing accurate patient names.  Delk, as owner and chief executive officer of TMC, knowingly caused TMC to fill and ship bulk, wholesale distributions of Methylcobalamin to the physician, knowing that TMC had never applied for permission from the Kentucky Board of Pharmacy to act as a wholesale distributor of prescription drugs.  When authorities from the FDA and the Kentucky Board of Pharmacy inspected TMC, between August 20 and October 24, 2018, Delk took steps to hide records of TMC’s wholesale distributions of Methylcobalamin, as well as other records.

TMC was sentenced on its guilty plea to one count of distributing unapproved new drugs throughout the United States, from October 25, 2018 through April 1, 2020.  Specifically, TMC pleaded guilty to unlawful distribution of selective androgen receptor modulators (“SARMS”) and other substances that the FDA had not approved for distribution in the United States.  SARMS are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids.  Products containing SARMS were often marketed and sold for body-building purposes.  According to the plea agreement, TMC also unlawfully distributed other unapproved new drugs, including BPC 157, Cerebrolysin, CJC 1295, DSIP, Epitalon, GW 501516, Ipamorelin, LGD-4033, LL-37, Melanotan II, MK 677, PEG-MGF, Selank, and Semax.  In connection with the plea, TMC agreed to forfeit $1,788,906.82, representing its 2019 sales for these products.

Tailor Made and Delk pleaded guilty in October 2020.

Carlton S. Shier, IV., Acting United States Attorney for the Eastern District of Kentucky; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation jointly announced the sentences.

The investigation was conducted by the FDA and the FBI.  The United States was represented by Assistant U.S. Attorney Kate K. Smith. 

COVINGTON, Ky. - A Maysville, Kentucky man, Harry Elza Gilbert, 60, was sentenced to 135 months in federal prison on Tuesday, by U.S. District Chief Judge Danny C. Reeves, for possession with the intent to distribute 50 grams or more of methamphetamine.

According to his plea agreement, between August and December 2019, Gilbert possessed approximately 125 grams of methamphetamine that was seized by local law enforcement in both Mason and Lewis Counties.  Gilbert admitted that intended to distribute the drugs. 

Gilbert pled guilty in July 2020.           

Under federal law, Gilbert 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; James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office; Johnny W. Bivens, Lewis County Sheriff and Jared Muse, Chief of the Maysville Police Department, jointly announced the sentence.

The investigation was conducted by the Federal Bureau of Investigation, the Lewis County Sheriff’s Office, and the Maysville Police Department.  The United States was represented in the case by Assistant U.S. Attorney Wade Napier.

 

LEXINGTON—Prince Bixler, 41, of Lexington, Kentucky, was sentenced today by U.S. District Court Judge Robert E. Wier to 36 years in prison followed by 10 years of supervised release and ordered to pay $333,100 in restitution to three sex trafficking victims.

In September 2020, a federal jury convicted Bixler of 15 federal felonies related to his extensive and violent sex and drug trafficking operation that forced young, drug-addicted women to prostitute and sell crack cocaine, heroin, and methamphetamines throughout the Lexington area. Specifically, the jury convicted Bixler of three counts of sex trafficking by force, fraud, or coercion, two counts of tampering with a witness, victim or an informant, one count of operating an unlawful prostitution business enterprise, six counts of distributing controlled substances including crack cocaine, heroin, and methamphetamine, and three counts of being a felon in possession with a firearm.

“Prince Bixler cruelly used violence to create a climate of fear to coerce his victims, while at the same time he increased their dependence on him by exploiting and furthering their serious drug addictions,” said Principal Deputy Assistant Attorney General Pam Karlan. “Human trafficking shatters the lives of those it impacts, leaving lasting physical and mental scars. There can be no place in our society for this conduct and I hope that today’s sentence brings some measure of justice to the victims while it also prevents Prince Bixler from harming others in the future.”

“Prince Bixler preyed on vulnerable women, to operate a prostitution enterprise and sell illegal drugs in our community,” said Acting U.S. Attorney Shier. “His conduct caused enduring physical and emotional damage to these women, and further spread the devastation of highly addictive and dangerous drugs. We will continue to do our part in identifying, prosecuting, and punishing those who engage in human trafficking. The despicable conduct in this case justifies those efforts, and certainly warrants the punishment the Court has imposed.” 

“Mr. Bixler was simply a predator in our community. This sentencing is a success in the fight against those who exploit the vulnerable and illustrates our dedication to bring these criminals to justice,” said Special Agent in Charge James “Robert” Brown, Jr., FBI Louisville. “We are also grateful to our law enforcement partners, especially the ATF, the Lexington Police Department, Justice Department's Civil Rights Division, and the Eastern District of Kentucky’s U.S. Attorney’s Office, for their unwavering efforts not only in this investigation, but in our continued fight to disrupt and dismantle human trafficking networks throughout the region.”

“Prince Bixler exploited women with physical violence and drugs while peddling illicit, and deadly narcotics throughout the Lexington community,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “Frequently these felons use firearms to further their violent, criminal activities. ATF is committed to investigating and arresting these felons and finding justice for their known and unknown victims.”

Evidence presented at trial, including the testimony of three victims, established that defendant Prince Bixler compelled three victims into prostitution between 2013 and March 2018 by physically assaulting them and others to create a climate of fear and intimidation. He exploited their dependence on crack cocaine or heroin, using it to worsen their addictions and to keep them around him. The defendant also sold crack cocaine, heroin, and methamphetamine throughout the Lexington area to numerous customers. When the Lexington Police Department executed a search warrant at the defendant’s residence in March 2018, they recovered numerous firearms. The defendant, a convicted felon, was prohibited from possessing these and other firearms.

As the investigation into the defendant’s illegal conduct continued throughout 2018 into 2019, he became aware that multiple potential witnesses were subpoenaed to testify before a federal grand jury in Lexington. The defendant threatened one witness with physical violence in an attempt to dissuade her from testifying truthfully before the grand jury. The defendant also repeatedly called and harassed another witness on the eve of her scheduled grand jury appearance in an attempt to prevent her from testifying truthfully before the grand jury.

Principal Deputy Assistant Attorney General Pam Karlan for the Department of Justice’s Civil Rights Division; Acting U.S. Attorney Carlton S. Shier, IV for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office; R. Shawn Marrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence. This case was investigated by the Lexington FBI office, the Lexington ATF office, and the Lexington Police Department. It was prosecuted by Assistant U.S. Attorney Hydee Hawkins for the Eastern District of Kentucky and Special Litigation Counsel Matthew Grady for the Civil Rights Division’s Human Trafficking Prosecution Unit.

 

PIKEVILLE, Ky. – Two Lovely, Kentucky men, Sherman Jude, 73, and Johnathon Jude, 40, were sentenced today by U.S. District Judge Robert Wier, for violations of the Lacey Act, regarding ginseng purchases and required record keeping. Sherman Jude received two years of probation with a $30,000 fine. Johnathan Jude received one-year probation with a $1,500.00 fine.

The harvesting and sale of ginseng is governed by regulations, which include record keeping requirements and a limited harvest season.  According to their guilty plea agreements, Sherman Jude was a dealer of wild American ginseng; and his son, Johnathon Jude, worked with him to keep records of the ginseng purchased from diggers and harvesters.

The investigation by the United States Fish and Wildlife Service revealed that over a period of years, the Judes falsified the required Kentucky Ginseng Purchase Forms, for multiple purchases of wild ginseng.  This included failing to keep records of all the purchases and purchasing ginseng that was known to have been harvested from another state, without being properly certified before entering Kentucky, in violation of the regulations. Sherman Jude also acknowledged that, as of August 2019, he had purchased 12.5 pounds of ginseng that had been harvested improperly, out of season.

The Judes pleaded guilty in October 2020. 

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky and the United States Fish and Wildlife Service, jointly announced the sentencing.

The investigation was directed by the United States Fish and Wildlife Service, Kentucky Department of Agriculture, and Kentucky Department of Fish and Wildlife Resources.  The United States was represented by Assistant U.S. Attorney Emily K. Greenfield.

COVINGTON, Ky. – A Cincinnati man, Alex Collins, 37, was sentenced on Tuesday to 36 months in federal prison, by U.S. District Judge David Bunning, for possession of a firearm by a convicted felon.           

According to his plea agreement, on March 1, 2020, law enforcement attempted to conduct a traffic stop on Collins, who only stopped momentarily before driving off and hitting a car and utility pole.  Collins admitted that during that stop, he was in possession of a loaded handgun.  Collins further admitted that he was a convicted felon and was prohibited from possessing a firearm.

Collins has a previous felony conviction from Ohio in 2014 for felonious assault.  Collins pleaded guilty to the current charge in September 2020.           

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

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 Rob Nader, Chief of the Covington Police Department, jointly announced the sentence.

The investigation was conducted by the FBI and the Covington Police Department.  The United States was represented by Assistant U.S. Attorney Amanda Harris.

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

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

COVINGTON, Ky. – A Cincinnati man, Keith A. Shaffer, 34, was sentenced on Tuesday to 30 months in federal prison, by U.S. District Judge David Bunning, for possession of a firearm by a convicted felon.           

According to his plea agreement, on March 11, 2020, law enforcement conducted a traffic stop on Shaffer’s vehicle, finding him in possession of a 9mm loaded gun.  Shaffer admitted that he was a convicted felon and was prohibited from possessing a firearm.  

Shaffer was previously convicted of second-degree burglary, in July 2006.  Shaffer pled guilty to the current charge in September 2020.           

Under federal law, Shaffer must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years, after 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 Bill Birkenhauer, Chief of the Highland Heights Police Department, jointly announced the sentence.

The investigation was conducted by the ATF and the Highland Heights Police Department.  The United States was represented by Assistant U.S. Attorney Tony Bracke.

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

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

COVINGTON, Ky. – A Cincinnati man, Thomas Coleman, 48, was sentenced to 188 months in federal prison on Tuesday, by U.S. District Judge David Bunning, after previously admitting to distributing fentanyl and heroin.   

In his guilty plea agreement, Coleman admitted to selling fentanyl and heroin, cocaine, and methamphetamine, on several occasions in December 2019, at locations in Covington.  Coleman has nine prior convictions for drug trafficking. He was also released from his parole, for a prior prison term, less than eight months before committing the new crimes.

Coleman pled guilty in October 2020.        

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

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 Rob Nader, Chief of the Covington Police Department, jointly announced the sentence.

The investigation was conducted by the Federal Bureau of Investigation and the Covington Police Department.  The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Tony Bracke.

 

LONDON, Ky. — A Corbin, Ky., man, John Helton, was sentenced to 264 months or 22 years in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, after previously being convicted of armed methamphetamine trafficking and possession of a firearm by a convicted felon.

The evidence at trial established that, on June 9, 2019, deputies with the Knox and Laurel County Sheriff’s Offices searched the residence that Helton shared with his wife, Anita, seizing over 300 grams of crystal methamphetamine and four firearms, including three that were loaded.  Helton then directed his wife to go to his mother’s residence, to get money to bond him out of jail.  When law enforcement searched that residence, they found over $8,000 secreted in a closet.  A search of a child’s playhouse on the property also revealed over 800 grams of additional crystal methamphetamine, and another firearm.  The Kentucky State Police had made a controlled purchase of methamphetamine that was arranged with Helton, but delivered by his wife. 

Anita Helton pled guilty to conspiring with Helton to distribute methamphetamine and possessing firearms in furtherance of that offense.  Anita Helton was sentenced to 38 months, followed by five years of supervised release.

Under federal law, Helton must serve 85 percent of his sentence.  Upon his release, 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; Jeffrey T. Scott, Special Agent in Charge, DEA, Louisville Field Division; Lt. Phillip Burnett, Acting Commissioner, Kentucky State Police; Sheriff Mike Smith, Knox County Sheriff’s Department; and Sheriff John Root, Laurel County Sheriff’s Department, jointly announced the sentencing.

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

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PIKEVILLE, Ky. - A South Carolina man, Jonathan Edward Manigault, 36, was sentenced on Monday to 480 months in federal prison, by U.S. District Judge Karen Caldwell, for one count of production of child pornography and one count of knowingly receiving child pornography.

Manigault admitted that he directed Christina B. Mitchell, of Pike County, to take photographs of a 3-year-old victim engaging in sexually explicit conduct.  Manigault provided Mitchell with specific, detailed instructions on what types of explicit photographs to produce and provide him.  According to the plea agreement, Mitchell transmitted the photographs to Manigault using the Facebook Messenger application.  Thereafter, Manigault had Mitchell agree to produce additional images of an additional underage victim.

Manigault pleaded guilty in September 2020.

Mitchell pleaded guilty, on August 26, 2019, to two counts of producing child pornography.  According to her plea agreement, Mitchell produced sexually explicit images of a 3-year-old and an 8-year-old victim.  Mitchell was sentenced to 420 months in federal prison, in February 2020.

Under federal law, Manigault and Mitchell must serve 85 percent of their prison sentences. Manigault will be under the supervision of the U.S. Probation Office for 15 years, following his release.

“One of the greatest responsibilities of law enforcement is to protect young children from sexual exploitation, abuse, and the damage it causes,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “As this case shows, there are some who prey on astonishingly vulnerable victims. So, we will continue to do our part to ensure that these offenders are identified, prosecuted, and punished. The despicable conduct in this case justifies our efforts, and certainly warrants the punishments the Court has imposed.”

“There is no place in our society for criminals who prey upon our most precious and vulnerable children,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office. “The sentences administered today are a direct reflection of a criminal justice system that will not stand for such contemptible behavior. The FBI and all of our law enforcement partners stand ready to use all of our available resources to protect our youngest citizens.”

Acting United States Attorney Shier; SAC Brown, FBI, Louisville Field Office; and Chief Chris Edmonds, Pikeville Police Department, jointly announced the sentences.

The investigation was conducted by the FBI Louisville Field Office, FBI Columbia Field Office, and the Pikeville Police Department. 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.

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LEXINGTON, Ky. - A Paris, Ky., man, Johnathan Scott Mason, 27, pleaded guilty on Tuesday, before U.S. District Judge Karen Caldwell, to the production of child pornography.             

According to his plea agreement, in March 2020, law enforcement officers became 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 that he had produced.  Mason admitted that he used a minor victim to produce visual depictions of the minor engaging in sexually explicit conduct and that the depictions were then transported using the Internet.

Mason was indicted in July 2020.

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 Acting Commissioner Lt. Colonel Phillip Burnett, Kentucky State Police; jointly announced the guilty plea.

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

Mason is scheduled to be sentenced on April 7, 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.

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LEXINGTON, Ky. – United States Attorney Robert M. Duncan, Jr., has announced that, following his resignation on Sunday, January 24, 2021, First Assistant United States Attorney Carlton S. Shier, IV will serve as the Acting United States Attorney for the Eastern District of Kentucky.

Shier has served as the First Assistant U.S. Attorney since 2013.  As the First Assistant, he has acted as the U.S. Attorney’s principal deputy and advisor, supporting the U.S. Attorney in managing the operations of the Lexington headquarters, and its two branch offices in Fort Mitchell and London.  Shier previously served as the Acting U.S. Attorney from January to November of 2017.

The Eastern District of Kentucky encompasses the 67 easternmost counties in the Commonwealth, has a population of approximately 2.2 million, and includes the cities of Lexington, Covington, Frankfort, Ashland, Pikeville, Somerset, and London.  The United States Attorney oversees a staff of approximately 110, including 49 Assistant U.S. Attorneys, and is responsible for prosecuting federal crimes and representing the United States in civil litigation, in the Eastern District of Kentucky.

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LEXINGTON, Ky. – A Lexington man, Christopher Lovings, 36, was sentenced to ____ months in federal prison on Thursday, before Chief U.S. District Judge Danny Reeves, for conspiracy to distribute fentanyl and cocaine base and possession of firearm by a convicted felon.            

According to his plea agreement, on January 28, 2019, law enforcement observed a vehicle matching reports of a stolen vehicle at a gas station on Versailles Road in Lexington. Lovings was identified as the driver.  Law enforcement located approximately four grams of crack cocaine and approximately eight grams of fentanyl on Lovings, along with a handgun under the drivers’ seat.  Lovings admitted to being in possession of the drugs with intent to distribute and further admitted to being in possession of the firearm as a convicted felon.

Lovings was previously convicted of a felony in 2006 and was prohibited from possessing a firearm.

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

Robert M. Duncan, Jr., 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; and Chief Lawrence Weathers, Lexington Police Department, announced the sentence.

The investigation was conducted by the DEA, ATF, and 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, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

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

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COVINGTON, Ky.- A Florence, Ky., man, Robert Picklesimer, 34, pleaded guilty on Thursday, before U.S. District Judge David Bunning, to possession with intent to distribute methamphetamine.

According to Picklesimer’s plea agreement, on September 17, 2020, law enforcement responded to a report of a possible overdose in a hotel room in Florence.  Picklesimer was the sole occupant of the hotel room, and officers located over 18 grams of methamphetamine, drug paraphernalia, and a handgun in the room.  Picklesimer admitted that he owned the methamphetamine and indicated that he had been distributing it to make money.

Picklesimer was indicted in November 2020.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Chief Tom Grau, Florence Police Department, jointly announced the guilty plea.

The investigation was conducted by the DEA and Florence Police Department.  The United States was represented by Assistant U.S. Attorney Tony Bracke.

Picklesimer is scheduled to be sentenced on May 20, 2021.  He faces a minimum of five years and a maximum of 40 years in federal prison.  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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LONDON, Ky. - A Missouri man, Gregory Parrish Evans, 58, was sentenced on Wednesday, by U.S. District Judge Robert Wier, to 120 months in federal prison, for conspiracy to distribute 500 grams or more of methamphetamine.           

According to his plea agreement, approximately 15 kilograms of methamphetamine was delivered to Evans, in Laurel County, Ky.  Evans admitted to agreeing with a co-conspirator to sell the methamphetamine by fronting quantities to customers.  On March 10, 2020 Miles further admitted to taking delivery of $13,000 that he believed was the proceeds from the sale of the fronted methamphetamine.  

Evans pleaded guilty to the federal charge in October 2020.  

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

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; and Robert Brown, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office, announced the sentencing.

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

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LONDON, Ky. – A Somerset, Ky., man, Jimmy Siegfried Grider, 56, was sentenced to 206 months in federal prison on Tuesday, before U.S. District Court Judge Claria Horn Boom, for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.           

According to his plea agreement, between January 2015 and September 2018, Grider admitted to conspiring with others to distribute 500 grams or more of methamphetamine, and on March 28, 2018, law enforcement seized 187 grams of methamphetamine from his residence.  Grider admitted to developing an arrangement with a methamphetamine dealer, through whom he regularly obtained large quantities of methamphetamine, and then sold the methamphetamine in the Pulaski County area.                       

Grider was previously convicted for manufacturing methamphetamine in Pulaski Circuit Court in March 2005. Grider pleaded guilty to the federal charge in July 2020.

Under federal law, Grider 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.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Chief William Hunt, Somerset Police Department; Chief Wayne Bird, Williamsburg Police Department; and Sheriff Greg Speck, Pulaski County Sheriff’s Office, jointly announced the sentence.

The investigation was conducted by the DEA, Somerset Police Department, Williamsburg Police Department, and the Pulaski County Sheriff’s Office.  The United States was represented by Assistant U.S. Attorney Andrew Trimble.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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LEXINGTON, Ky.- A Flemingsburg, Ky., man, Wesley A. Miles, 28, pleaded guilty on Tuesday, before Chief U.S. District Judge Danny Reeves, to illegal possession of a firearm by a convicted felon.             

According to his plea agreement, on June 1, 2018, Miles was involved in an altercation at a restaurant in Paris, Ky.  Miles admitted that, during the altercation, he exited the restaurant and retrieved a firearm from his vehicle. Prior to leaving the scene, Miles fired a single shot in the air., Miles then fled the scene and disposed of the firearm by throwing it out of his vehicle’s window.  Miles admitted that, at the time, he had been convicted of a crime and was prohibited from possessing a firearm.                       

Miles was indicted in June 2020.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Myron Thomas, Paris Police Department, jointly announced the guilty plea.

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

Miles is scheduled to be sentenced on April 26, 2021.  He faces up to 10 years in prison. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

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

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LEXINGTON, Ky. - A Lexington, Ky., man, Oscar Bustamante, 29, was sentenced on Friday, by Chief U.S. District Judge Danny Reeves, to 120 months in federal prison, for trafficking in cocaine and heroin, and possessing firearms in furtherance of drug trafficking.           

According to his plea agreement, on November 7, 2019, law enforcement found Bustamante in possession of 104 grams of heroin and 113 grams of cocaine. Additionally, law enforcement found $4,792 in cash and digital scales with residue on them in the cabinet, along with three firearms in the top of his bedroom closet. 

Bustamante pleaded guilty to the federal charge in September 2020.  

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

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Office; and Chief Lawrence Weathers, Lexington Police Department, announced the sentencing.

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

— END —

LEXINGTON, Ky.- A Danville, Ky., man, Lenoard Riley, 45, pleaded guilty on Friday, before Chief U.S. District Judge Danny Reeves, 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 was indicted in March 2020.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steven L. Igyarto, Resident Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Lt. Colonel Phillip Burnett, Acting Commissioner of the Kentucky State Police, announced the guilty plea.

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

Riley is scheduled to be sentenced on Friday, April 23, 2021. He faces a minimum of five years and a maximum of 20 years in prison. 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 brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

— END —

COVINGTON, Ky. - A Cincinnati man, Gilbert Cole, 45, was sentenced on Friday, by U.S. District Judge David Bunning, to 144 months in federal prison, for cocaine trafficking.           

According to his plea agreement, from September to December 2019, law enforcement used an informant to conduct eight controlled buys from Cole, in Covington.  Cole had two prior convictions for first degree trafficking of cocaine, in Kenton County Circuit Court, in December 2002 and February 2011.

Cole pleaded guilty to the federal charge in October 2020.  

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

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Robert Brown, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; and Chief Robert Nader, Covington Police Department, announced the sentencing.

The investigation was conducted by FBI and Covington Police Department. The United States was represented in the case by Assistant U.S. Attorney Tony Bracke. 

— END —

A Bulgarian national who was convicted by a federal jury for his role in a transnational and multimillion-dollar scheme to defraud American victims was sentenced today to 121 months in prison.

Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, and Resident Agent in Charge John Oldham of the U.S. Secret Service made the announcement.

U.S. District Court Judge Robert E. Weir sentenced Rossen G. Iossifov, 53, formerly of Bulgaria, for conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense and conspiracy to commit money laundering.

According to trial evidence, Iossifov owned and managed RG Coins, a cryptocurrency exchange headquartered in Sofia, Bulgaria. According to the evidence at trial, Iossifov knowingly and intentionally engaged in business practices designed to both assist fraudsters in laundering the proceeds of their fraud and to shield himself from criminal liability. At least five of Iossifov’s principal clients in Bulgaria were Romanian scammers, who belonged to a criminal enterprise known in court records as the Alexandria (Romania) Online Auction Fraud (AOAF) Network. 

More specifically, according to court documents and evidence presented at trial, Iossifov and his co-conspirators participated in a criminal conspiracy that engaged in a large-scale scheme of online auction fraud that victimized at least 900 Americans. Romania-based members of the conspiracy posted false advertisements to popular online auction and sales websites — such as craigslist and eBay — for high-cost goods (typically vehicles) that did not actually exist. Once victims were convinced to send payment, the conspiracy engaged in a complicated money laundering scheme wherein domestic associates would accept victim funds, convert these funds to cryptocurrency, and transfer proceeds in the form of cryptocurrency to foreign-based money launderers. Iossifov was one such foreign-based money launderer who facilitated this final step in the scheme.

According to evidence at trial, Iossifov designed his business to cater to criminal enterprises by, for instance, providing more favorable exchange rates to members of the AOAF Network. Iossifov also allowed his criminal clients to conduct cryptocurrency exchanges for cash without requiring any identification or documentation to show the source of funds, despite his representations to the contrary to the major bitcoin exchanges that supported his business. Evidence submitted during trial and his sentencing hearing revealed that Iossifov laundered nearly $5 million in cryptocurrency for four of these five scammers in a period of less than three years. This represented over $7 million in funds defrauded from American victims. In return, Iossifov made over $184,000 in proceeds from these transactions.

Iossifov was convicted after a two-week trial in front of Judge Weir in Frankfort, Kentucky in September 2020.

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

Thus far, 17 members of the AOAF Network have been convicted for their role in this scheme, including Iossifov.  Seven others have been sentenced, including Livui-Sorin Nedelcu to 82 months in prison, Marius Dorin Cernat to 50 months in prison, Stefan Alexandru Paiusi to 31 months in prison, Eugen Alin Badea to 40 months in prison, Florin Arvat to 30 months in prison, Alin Ionut Dobric to 37 months in prison, and Austin Edward Nedved to 96 months in prison. Three members are fugitives.

The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime), the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime), and the Supreme Prosecutor's Office of Cassation of the Republic of Bulgaria. The Justice Department’s Office of International Affairs and Money Laundering and Asset Recovery Section of the Criminal Division provided significant support. This case is being prosecuted by Senior Counsel Frank Lin and Senior Trial Attorney Timothy Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kathryn M. Anderson and Kenneth R. Taylor of the U.S. Attorney’s Office for the Eastern District of Kentucky. 

Individuals believing they may be victims of the advanced fee and online auction fraud or brute-force attack schemes described herein are encouraged to visit the following website to obtain more information: https://justice.gov/usao-edky/information-victims-large-cases.

LEXINGTON, Ky. - A Lexington man, Terrico W. Williams, 29, was sentenced on Monday, by Chief U.S. District Judge Danny C. Reeves, to 100 months in federal prison, after previously being convicted of possession of a firearm by a convicted felon.           

According to testimony at trial, on September 11, 2019, officers with the Lexington Police arrested Williams, on an outstanding warrant.  Williams was searched and found to have a loaded, .22 caliber handgun concealed inside his pants. Williams has a previous felony conviction from the Fayette Circuit Court, from 2016, for Manslaughter Second Degree.     

Williams was convicted in August 2020. 

In addition to the prison time, Williams will also be required to pay a $2,000 fine. Under federal law, Williams must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for three years.

Robert M. Duncan, Jr., 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 verdict.

The investigation was conducted by ATF and Lexington Police Department.  The United States was represented in the case 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, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

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

— END —

 

LEXINGTON, Ky. – United States Attorney Robert M. Duncan, Jr. has announced his resignation, effective midnight, Sunday, January 24, 2021.  Following his resignation, he will enter the private practice of law in Lexington.

“It has been a true honor and privilege to lead this Office, an office that has a demonstrated commitment to fairness and justice, and a long history of handling tough and important cases,” stated Duncan.  “I began my career in this Office nearly sixteen years ago as an Assistant United States Attorney and have been blessed to work with many talented and dedicated men and women along the way.  I would like to thank my colleagues in the Office for their hard work and commitment in support of our mission.  We are fortunate to have so many dedicated and professional attorneys and support staff, who make our Office successful.”

“Throughout my career, I have also been privileged to work with our law enforcement partners at the federal, state, and local levels.  These brave men and women selflessly serve and protect the citizens of the Eastern District of Kentucky and beyond.  I have been honored to partner with them in the protection of the public and the pursuit of justice.”

“I am proud of the work we have undertaken during my tenure as United States Attorney – important work on behalf of the citizens of the Eastern District of Kentucky.  In partnership with our law enforcement colleagues, we have implemented efforts to reduce violent crime; we have fought to disrupt the flow of deadly drugs, including opioids and methamphetamine, into our communities; we have combatted fraud and public corruption; we have sought justice for victims; and we have endeavored to faithfully enforce the law.”

“We’ve implemented these efforts despite several challenges, including the longest federal government shutdown in history and a global pandemic that has upended our lives.  While there is always more to be done, I am proud of what we have accomplished.”

Under Duncan’s leadership, the Office marked noteworthy achievements in violent crime enforcement, controlled substances enforcement, combatting public corruption and fraud, and its significant change in staff.  Some of these achievements include the following:       

Violent Crime – The Office worked in conjunction with federal, state, and local partners, to reinforce its commitment to holding offenders accountable for the commission of violent criminal acts and unlawful possession of firearms, including armed drug trafficking, armed robberies, and shootings.  From Fiscal Year 2018 through Fiscal Year 2020, the Office prosecuted a total of 525 defendants throughout the District, as part of the Project Safe Neighborhoods or Project Guardian programs.  Critically, the majority of those convicted of federal firearms related crimes received a federal sentence of greater than five years in prison.

As part of the commitment to address violent crime, Duncan spearheaded the creation of the Fayette County Violent Crime Task Force, a joint, multi-jurisdictional effort to combat violent crime and drug trafficking in Lexington.  The Task Force was formed as part of the Department of Justice’s Project Safe Neighborhoods initiative, which focuses enforcement efforts on the most violent offenders and coordinates with locally-based prevention and reentry programs in an effort to achieve lasting reductions in crime.  From January 2018 to the present, 70 cases have been prosecuted federally as part of the Fayette County Violent Crime Task Force, along with countless prosecutions by state authorities.   

Controlled Substances – The Office prioritized the controlled substance enforcement, aggressively prosecuting transnational criminal organizations supplying drugs to eastern Kentucky, continuing its aggressive prosecution of overdose cases caused by drugs (particularly opioids), and targeting opioid related healthcare fraud for prosecution.

Included in this effort, the Office participated in several Department of Justice initiatives, including the Appalachian Regional Prescription Opioid Strike Force, aimed at identifying medical professionals who commit acts of opioid related healthcare fraud, and the Synthetic Opioid Surge program, which provided resources to combat fentanyl trafficking in Fayette County.  In eastern and southeastern Kentucky, the Office partnered with federal, state, and local law enforcement to vigorously prosecute methamphetamine trafficking and its related violence.

Public Corruption and Fraud – The Office maintained its longstanding commitment to prioritizing public corruption, partnering with the FBI and others to identify and prosecute cases of corruption involving federal, state, and local offices.  Notable cases included the prosecution of Gerald Lundergan and Dale Emmons, for illegal campaign contributions; Beth Sallee, the former Jackson County Treasurer, for wire fraud and identity theft; and Lexington businessman Wayne Wellman, for obstruction of justice related to a bribery investigation.

Similarly, the Office prosecuted many complex fraud schemes, including cases involving the exploitation of elderly individuals and romance scams, and used affirmative civil enforcement efforts, under the False Claims Act (a federal law that prohibits the submission of false or fraudulent claims to the federal government), to hold individuals and entities accountable for committing fraud against the government, including healthcare fraud and other efforts to defraud, waste, and abuse federal funds.  

Office Administration – The Office also hired 16 new Assistant United States Attorneys, to prosecute cases and represent the government in civil litigation, and nearly twenty support staff personnel, to support the Office’s litigation efforts. These hires represent approximately a third of the Office’s total employees. 

More generally, the Office saw increases in federal prosecutions during Duncan’s tenure.  The Office saw increases in the total number of criminal defendants prosecuted (by more than 18 percent from Fiscal Years 2017 to 2018, and 27 percent from Fiscal Years 2018 to 2019) and continued to prosecute significant numbers of defendants, despite the challenges of the COVID-19 pandemic.  The Office has also achieved meaningful recoveries for the government and victims of crime.  Over the past three years, the Office has collected and received judgments for  more than $92 million in criminal penalties, civil recoveries, forfeited assets, and restitution. 

Duncan was appointed by President Trump as the twenty-third presidentially appointed United States Attorney for the Eastern District of Kentucky.  Duncan was unanimously confirmed by the United States Senate, on November 9, 2017, and he was sworn in as United States Attorney on November 21, 2017.

As United States Attorney, Duncan also served nationally, as the Chairman of the Heroin-Opioid Working Group for the Attorney General’s Advisory Committee, providing advice and recommendations about policy initiatives to combat the opioid crisis across the country.  He also served on the Controlled Substances Subcommittee; the Management, Budget, and Personnel Subcommittee, and the Law Enforcement Coordination Subcommittee for the Attorney General’s Advisory Committee.  More recently, he served as a member of the Department of Justice’s eLitigation Steering Committee, working to enhance discovery practices and procedures across the federal law enforcement community, as a representative for United States Attorneys across the country.

Prior to his nomination, Duncan had served for more than a decade as an Assistant United States Attorney, in the Eastern District of Kentucky.  Beginning in 2011 and continuing until his appointment as United States Attorney, Duncan focused on the prosecution of Organized Crime Drug Enforcement Task Force cases, working with federal, state, and local law enforcement personnel to disrupt and dismantle complex drug trafficking and money laundering organizations operating in eastern Kentucky and elsewhere.  From 2007 to 2013, Duncan also served as coordinator of the office’s Project Safe Neighborhoods Program.  During his career as a federal prosecutor, Duncan handled a wide array of criminal and appellate matters, including violent crime, immigration offenses, public corruption, white-collar offenses, environmental crime, and child exploitation offenses.  Duncan also served as the Professional Responsibility Officer for the office.

Prior to becoming a federal prosecutor, Duncan served as a law clerk to Senior United States District Court Judge Henry R. Wilhoit, Jr., in Ashland. Duncan grew up in Inez, in Martin County, along the Commonwealth’s border with West Virginia.  Duncan graduated from Sheldon Clark High School, in 1996.  He then graduated from Centre College in Danville, in 2000, with a B.A. in English and minor in History.  Duncan received his J.D., in May 2003, from the University of Kentucky College of Law.

“I was raised in Kentucky, went to school in Kentucky, and have spend the majority of my legal career working with law enforcement and prosecuting cases in Kentucky,” said Duncan.  “Having the opportunity to serve Kentucky, as the United States Attorney for the Eastern District of Kentucky, has been an enormous honor and privilege.”    

Law enforcement officials offered the following comments about U.S. Attorney Duncan’s leadership of the Office.

“I have had the pleasure of working with USA Rob Duncan since my appointment as United States Marshal in February of 2018,” said Norman E. Arflack, United States Marshal for the Eastern District of Kentucky.  “Rob’s dedication to law enforcement and to the citizens of the Eastern District of Kentucky is unparalleled.  As a result of his leadership many of the most violent offenders in the Eastern District of Kentucky have been successfully prosecuted.  His professionalism and leadership will be greatly missed.  I wish him the best in his next undertaking whatever that may be.”

“Throughout my time serving in the FBI's Louisville Field Office, the collaborative efforts of USA Duncan and his entire office have been nothing short of extraordinary.  I want to personally thank USA Duncan for his steadfast commitment to justice and his unwavering partnership in effectively leading the Eastern District of Kentucky,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office.

“It’s been an absolute pleasure serving with Rob Duncan; as the United States Attorney for Kentucky’s Eastern District, he’s been a great partner to the Drug Enforcement Administration and the people of the Eastern District are safer for his efforts,” said Special Agent in Charge J. Todd Scott, head of DEA’s Louisville Division. “Rob’s more than just a professional colleague, he’s also become a personal friend.”

“I am grateful for the opportunity to have served,” said Duncan. “While leaving the Office is definitely bittersweet, I am excited to start a new chapter.  I am confident that the Office will continue its outstanding work, enforcing the law and pursuing justice on behalf of the people of the Eastern District of Kentucky.”

The Eastern District of Kentucky encompasses the 67 easternmost counties in the Commonwealth, has a population of approximately 2.2 million, and includes the cities of Lexington, Covington, Frankfort, Ashland, Pikeville, Somerset, and London.  The United States Attorney oversees a staff of approximately 110, including 49 Assistant U.S. Attorneys, and is responsible for prosecuting federal crimes and defending the United States in civil litigation, in the Eastern District of Kentucky.

-END-

FRANKFORT, Ky. - A Montgomery County, Ky., man, Scotty Allen Jones, 48, was sentenced on Thursday to 268 months in federal prison, by U.S. District Judge Gregory Van Tatenhove, for distributing a fentanyl and heroin mixture, possessing acetylfentanyl with intent to distribute, possessing a firearm in furtherance of drug trafficking, and being a felon in possession of firearms.

As part of his plea agreement, Jones admitted that, in September 2018, he sold quantities of heroin and fentanyl mixtures to a confidential informant, who was working with law enforcement.  During one of the drug transactions, Jones admitted to possessing a firearm for the purpose of furthering his drug trafficking 

Jones also admitted to pawning at least two firearms, at a local pawn shop in Mt. Sterling, Ky., in February 2019.  Jones has prior felony convictions for drug trafficking and burglary, and was prohibited from possessing firearms.

In March 2019, officers with the Kentucky Department of Fish and Wildlife attempted to arrest Jones on several outstanding warrants, while Jones was at a gas station in Jeffersonville, Ky.  Jones fled from the officers, and after  vehicle and foot pursuits, Jones was apprehended.  Upon his arrest, Jones was found in possession of 10 grams of acetylfentanyl, a dangerous Schedule I controlled substance.  As part of his plea agreement, Jones admitted that intended to distribute the acetylfentanyl in his possession.

Jones further admitted to possessing eight firearms, which were discovered by law enforcement during a search of barn in Jeffersonville, in April 2019.                        

Jones pleaded guilty in July 2020.

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

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Acting Commissioner  Lt. Colonel Phillip Burnett, Kentucky State Police; and Colonel Eric Gibson, Law Enforcement Director, Kentucky Department of Fish and Wildlife jointly announced the sentence.

The investigation was conducted by ATF, KSP, and the KY Dept. of Fish and Wildlife. The United States was represented by Assistant U.S. Attorney Francisco Villalobos. 

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

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

— END —

LEXINGTON, Ky. – A former bank president, Thomas Hinkebein, 59, was sentenced to 12 months in federal prison, by Chief United States District Judge Danny C. Reeves, after previously pleading guilty to one count of embezzlement by a bank officer.

According to his plea agreement, Hinkebein admitted that, between January 12, 2016 and August 13, 2018, while he was the President of Whitaker Bank, he willfully misapplied assets of the bank.  Specifically, he admitted stealing golf carts and other property of Andover Country Club, an asset owned by Whitaker Bank, and seeking reimbursement from Whitaker Bank for a variety of personal expenses, including cell phone plans, gym memberships, fuel purchases, vehicle repairs, technology purchases for his family members, shipping expenses, and landscaping at his home.  To hide the personal nature of these expenses, the Defendant falsely reported many of the expenses to Whitaker Bank to make them appear to be legitimate work expenses. 

Hinkebein pleaded guilty in September 2020.   

In addition to the prison sentenced, Hinkebein will be required to pay a $5,500 fine and $50,739.56 in restitution owed.  Under federal law, Hinkebein must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for three years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; John Crawford, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Investigations, Chicago Region; and Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, jointly announced the sentencing.

The investigation was conducted by the FDIC and the Federal Reserve.  The United States was represented by Assistant U.S. Attorney Kate K. Smith. 

– END –

A Kentucky doctor and his former office manager were sentenced to 60 and 32 months respectively in prison Wednesday for their roles in unlawfully distributing controlled substances during a time when the defendants did not have a legitimate medical practice.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. of the Eastern District of Kentucky, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office, Special Agent in Charge D. Christopher Evans of the U.S. Drug Enforcement Administration’s (DEA) Detroit Field Division, and Executive Director W. Bryan Hubbard of the Kentucky Medicaid Fraud Control Unit (MFCU) made the announcement.

Scotty Akers, M.D., 48, a licensed physician, and Serissa Akers, 33, his wife and former office manager, both of Pikeville, Kentucky, were sentenced by U.S. District Judge Robert E. Wier of the Eastern District of Kentucky.  Judge Wier also ordered Scotty Akers to forfeit $12,275.  Both defendants pleaded guilty on Aug. 7, 2020 to charges of unlawfully distributing controlled substances.

As part of their guilty pleas, the defendants admitted to using Facebook messenger and other messaging applications to sell prescriptions for opioids.  According to their plea agreements, Serissa Akers exchanged prescriptions written by Scotty Akers for cash in parking lots around Pikeville.  The defendants also admitted that Scotty Akers performed no physical examinations that would justify these parking-lot prescriptions, and failed to engage in other measures that prevent the abuse and diversion of opioids.  The defendants continued operating their opioid-delivery scheme even after they came under investigation and up until the moment when Scotty Akers’s medical license was suspended. 

HHS-OIG, DEA and Kentucky MFCU investigated the case.  Trial Attorney Dermot Lynch and Assistant Chief Kate Payerle of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case.

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 more than 70 defendants who are collectively responsible for distributing more than 50 million pills.  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 Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, 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.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

LEXINGTON, Ky. — A Berea, Ky., man, Larry Dale Foley, Jr., 49, was sentenced to 360_months in federal prison on Thursday, before Chief U.S. District Judge Danny Reeves, after previously pleading guilty to producing child pornography.                       

According to Foley’s plea agreement and other court records, a tip submitted to the National Center for Missing and Exploited Children, from Tumblr, showed that a blog that Foley owned had distributed 46 images and two videos of child pornography.  On January 6, 2020, law enforcement searched Foley’s residence and seized electronic devices that contained child pornography.  Foley was arrested and has been held in federal custody since that time.  

The devices seized were processed and showed that Foley had produced child pornography of himself and a female minor, in the form of videos and still images.  In his guilty plea agreement, Foley admitted to knowing that the images and videos he created with the minor victim were produced using materials that were shared via computer and cell phone.                         

Foley pleaded guilty in September 2020.

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

“Producing child pornography is a crime of violence – subjecting the victim to continued abuse each time the file is shared or downloaded,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The defendant’s sentence was well deserved based on his criminal conduct.  I commend the work of the FBI and the Berea Police Department in conducting this investigation.” 

“Today's sentencing is just one example of how seriously the Department of Justice takes crimes against children. For children who endure abuse of any kind, their lives are oftentimes irreparably damaged. The FBI is dedicated to protecting our most fragile population, and we and all our law enforcement partners will not stop until those who attempt to prey on the vulnerable are brought to justice." said James Robert Brown Jr., Special Agent in Charge, FBI, Louisville Field Office.

U.S. Attorney Duncan; SAC Brown, and Eric Scott, Chief of the Berea Police Department, jointly announced the sentence.

The investigation was conducted by the FBI and the Berea Police Department.  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. – Several defendants were recently convicted or sentenced for their roles in a conspiracy to violate the federal Anti-Kickback Statute.  On December 4 and December 7, 2020, Uday Shah, 66, of Houston, Texas, and Timothy Andrews, 57, of Deer Park, Texas, were sentenced by Chief United States District Judge Danny C. Reeves to 24 and 15 months’ imprisonment, respectively, for their roles in a conspiracy to pay kickbacks to a physician, Dr. Ghyasuddin Syed, in exchange for Dr. Syed’s referral of urine drug testing to laboratories operated by Shah.  On Wednesday, December 2, 2020, Dr. Syed pleaded guilty to soliciting and accepting kickbacks as part of the same scheme.
    
According to their plea agreements, Shah owned and operated several toxicology laboratories, including Pinnacle Laboratory in Lexington.  Andrews worked as a marketer on behalf of Shah’s labs.  Shah and Andrews admitted that between November 2014 and August 2017, they paid $475,992 in kickbacks to Dr. Syed, a Houston-area physician, and Dr. Syed’s wife, Shazana Begum.  The kickbacks were often disguised as lease payments for office space owned by Dr. Syed and Begum.  In his plea agreement, Dr. Syed disputed the exact amount of kickbacks, but acknowledged receiving them from Shah and Andrews, and referring urine drug testing for his patients to Shah’s labs in exchange.  All of the defendants agreed that Pinnacle and Shah’s other labs billed the Medicare program for the urine drug testing tainted by these kickbacks, and that Medicare paid the labs $325,739 to which they were not entitled.  

Andrews pleaded guilty in June 2019, and Shah pleaded guilty in October 2019.  In addition to their respective terms of incarceration, Shah and Andrews were ordered to pay $325,739 to the Medicare program in restitution, jointly and severally.  Under federal law, Giles and Wallace must serve 85 percent of their prison sentences.  Upon their release, they will be under the supervision of the U.S. Probation Office for three years.

Dr. Syed is scheduled to be sentenced on March 12, 2021, in Lexington.  He faces up to five years in prison for the conspiracy to violate the Anti-Kickback Statute, and a maximum fine of $250,000.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the applicable federal sentencing statutes.  

Dr. Syed’s wife, Shazana Begum, has entered into a pretrial diversion agreement wherein she admitted her role in the offense, and agreed to be under the supervision of the United States Probation Office for 12 months, to pay restitution of $325,739 along with Shah and Andrews, and to perform community service.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Special Agent in Charge, FBI, Louisville Field Office; and Derrick Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Atlanta Field Office, jointly made the announcement.

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

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

— END — 

FRANKFORT, Ky. - A Frankfort man, Ricky Joe Cornish Jr., 33, was sentenced to 120 months in prison on Tuesday, by U.S. District Judge Gregory F. Van Tatenhove, after previously pleading guilty to using the internet to entice a minor to engage in sexual activity.            

According to his guilty plea agreement, on May 16, 2019, Cornish contacted an individual, who self-identified as a 15-year-old female living in Franklin County, Kentucky, using the MeetMe/Skout messenger application over the Internet, on his cellular telephone.  The person Cornish contacted was, in reality, an investigator with the Kentucky Office of the Attorney General’s Cyber Crimes Branch. The investigator communicated that they were also with a 17-year-old female, and Cornish expressed interest in having sex with the 17-year-old.

Later that same day, Cornish drove to an agreed-upon hotel, in order to meet the minor and engage in criminal sexual activity.  When Cornish arrived at the agreed-upon meeting place in Franklin County, he was arrested by law enforcement officers.  An examination of Cornish’s cell phone revealed the conversation with the investigator, as well as a similar conversation with another individual, who is believed to be a minor female.             

Cornish pleaded guilty in July 2020.  

Under federal law, Cornish must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for 20 years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Ralph Gerds, Assistant Special Agent in Charge, U.S. Secret Service Louisville Field Division; and Daniel Cameron, Attorney General for the Commonwealth of Kentucky, jointly announced the sentencing.

The investigation was conducted by United States Secret Service and Kentucky Attorney General’s Cyber Crimes Branch. The United States was represented by Assistant U.S. Attorneys David Marye and Tashena Fannin. 

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

— END —

LEXINGTON, KY—The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies announced the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes.  Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad.  Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds.  Europol announced a simultaneous effort, the European Money Mule Action (EMMA) yesterday.

Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules.  This year, actions occurred in every state in the country.  The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud.  Many of these schemes target elderly or vulnerable members of society.

“Money mules fuel fraud against some of America’s most vulnerable populations. Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from American consumers and businesses to transnational criminal organizations.”

“Detecting and disrupting the work of money mules is critically important, as money mules are integral components of many organized criminal groups, including international fraud rings and transnational drug trafficking organizations,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We remain committed to working with our local, state, and federal law enforcement partners to disrupt the flow of illegal money and cutting off the lifeblood of these criminal organizations.”

“While some money mules know they are supporting criminal enterprises, others are unaware that they are helping criminals profit,” said James Robert Brown, Jr., Special Agent in Charge for FBI, Louisville Field Office. “Regardless, money mules add layers between the true criminal and the victim oftentimes making it more difficult for law enforcement to trace the money trail. To protect yourself, always be suspicious of someone asking for your bank account information or requesting that you move money for them.”

Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.

Some highlights from this year’s efforts are:

• Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.
• Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews.
• On approximately 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.
• The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.
• U.S. Attorney’s Offices and the Consumer Protection Branch filed 17 civil injunctive actions seeking court orders requiring money mules to stop facilitating fraudulent activity.

Over the past year, the Eastern District of Kentucky has worked in conjunction with federal, state, and local partners to dismantle two money mule schemes operating in the District.

• U.S. vs. Fafunmi et al.- Ismaila Fafunmi admitted that, beginning in June 2018, he worked in conjunction with others, who communicated through online chats, about a scheme to defraud U.S. citizens through a romance scheme.  In furtherance of this scheme, 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, typically women older than 50, through the dating website, making the victims believe they were in a romantic relationship with the individual in the fictitious profile. Fafunmi and his co-conspirators would then convince these unsuspecting women to send money for various reasons. One victim of the scheme lived in Kentucky, and sent more than $200,000 to a person she believed to be her boyfriend. In another scheme, Fafunmi received funds from another female over 50, who believed she was being awarded a large grant and had to pay fees up front in order to receive her award.  Fafunmi is pending sentencing on May 13, 2021.
• U.S. vs. Inkoom et al.- Baaki Abdul Majeed conspired with Kahad Wuupini and Thomas Inkoom, in a money laundering conspiracy. Evidence revealed that the conspirators agreed to aid in and launder $757,000 in funds, which were defrauded from a victim of an online romance fraud scheme. After receiving cashier’s checks, personal checks, and cash from the victim, Majeed and his co-conspirators laundered the money from Washington and New Jersey, back to Ghana, by purchasing cars that were shipped to Ghana, obtaining cashier’s checks, and wiring funds to each other or other individuals in the United States and Ghana.  The purpose of these transactions was to conceal and disguise the proceeds of their online romance fraud. Majeed is pending sentencing on January 29, 2021.     

To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors.  In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities.  In March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep.  The department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.

The department’s extensive efforts to combat elder fraud seek to halt the billions of dollars seniors lose each year to fraud schemes, including those perpetrated by transnational criminal organizations.  The best method for prevention, however, is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.

— END —

LEXINGTON, Ky. –The U.S Attorney’s Office for the Eastern District of Kentucky has resolved its Americans with Disabilities Act (ADA) compliance review of the Kentucky Horse Park’s Covered Arena. The United States Attorney’s Office initiated the compliance review after receiving a complaint from a private citizen about barriers to access at the Covered Arena for individuals with disabilities.

The Commonwealth of Kentucky operates the Kentucky Horse Park, which is a public entity subject to Title II of the ADA. Title II requires public entities to operate services, programs, and activities so that they are readily accessible to and usable by individuals with disabilities. After receiving notice of the compliance investigation, the Kentucky Horse Park conducted its own investigation and worked with the U.S. Attorney’s Office to remove identified barriers to access in the Covered Arena’s restrooms.

“Everyone should be able to access basic necessities without barriers, regardless of any disabilities,” said Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky. “Our Office will continue to make sure that everyone has equal access to facilities. We appreciate Kentucky Horse Park’s cooperation in being proactive to address the issues in their Covered Arena.”

 As outlined in the Letter of Resolution informally resolving the compliance investigation, the Kentucky Horse Park installed grab bars, repositioned toilet compartment doors and toilet paper dispensers, and relocated existing flush controls or installed automatic flush controls in the accessible stalls in the Covered Arena’s restrooms to ensure accessibility for individuals with disabilities.

This matter was handled by Assistant United States Attorney Carrie Pond, as part of the Department of Justice’s civil rights enforcement efforts.

The year 2020 marks the 30th anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.

Individuals wishing to file an online complaint of potential violations of the ADA can do so on the ADA’s website at www.ada.gov.

— END —

LEXINGTON, Ky. – A Lexington man, Josh Gregory Taylor, was sentenced to 108 months in federal prison on Thursday, before U.S. District Judge Karen Caldwell, for his conviction for distributing fentanyl.           

According to his plea agreement, on August 26, 2019, law enforcement responded to a report of an unresponsive person and discovered a package that contained fentanyl at the scene.  Taylor admitted to selling the unresponsive person what Taylor said was heroin on August 25.  Testing of the substance confirmed that the substance contained fentanyl.

Taylor pleaded guilty in July 2020.

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

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey Todd Scott, Special Agent in Charge, DEA, Louisville Field Office; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.

The investigation was conducted by the DEA and Lexington Police Department.  The United States was represented in the case by Assistant U.S. Attorney David Kiebler.  

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

— END —

PIKEVILLE, Ky. – Sean Tharp, 36, of Hager Hill, Ky., pleaded guilty in federal court Monday, before U.S. Magistrate Judge Edward B. Atkins, for his role in conspiring to distribute methamphetamine.           

According to his plea agreement, between April 2020 and September 2020, Tharp conspired with others to distribute 500 grams or more 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 his conspiracy involved 1.5 to 5 kilograms of methamphetamine.    

Tharp was indicted in September 2020.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jeffrey Todd Scott, Special Agent in Charge, DEA Louisville Field Division; and Sheriff Doug Saylor, Johnson County Sheriff’s Department, 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.

A date for Tharp’s sentencing has not yet been scheduled by the Court.  Tharp faces a minimum sentence of ten years in prison.  However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.

— END —

LEXINGTON, Ky. – A Los Angeles woman, Nancy Santos, 30, was sentenced in federal court last week, to 29 months in prison, before U.S. District Judge Claria Horn Boom, for conspiracy to distribute five kilograms or more of cocaine and conspiracy to launder money.

According to her plea agreement, Santos admitted that she conspired with others to distribute more than five kilograms of cocaine in Lexington.  Santos admitted that her role in the conspiracy was to transport loads of Cocaine, from locations in Colorado, to Lexington.  Santos was not involved in the later, street-level distribution; but her other conspirators, Alberto Santos and another conspirator, were responsible for that distribution.  The drug proceeds were collected by Adalberto Santos and another conspirator, who would load it into hidden compartments of vehicles. Santos would then transport the vehicles to Colorado.

Santos pleaded guilty in June 2020.  Her co-conspirator was sentenced earlier this year.  Adalberto Santos was sentenced in October 2020, receiving 162 months.

Under federal law, Santos and her co-conspirators must serve 85 percent of their prison sentences.  Upon her release, Santos will be under the supervision of the U.S. Probation Office for three years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J.T. Scott, Special Agent in Charge, DEA Louisville Field Division; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, jointly announced the sentence.

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

The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

— END —

COVINGTON, Ky. - A Cincinnati man, Dontez Justice, 33, was sentenced to 192 months in federal prison on Friday, by U.S. District Judge David Bunning, for possession with intent to distribute methamphetamine.            

According to Justice’s plea agreement, on October 17, 2019, a cooperating source working with law enforcement arranged a purchase of methamphetamine from Justice.  Justice admitted that he was on the way to deliver the methamphetamine when law enforcement found the methamphetamine during a traffic stop.  Law enforcement seized 26.3 grams of actual methamphetamine.

Justice further admitted in his plea agreement that he has two, prior drug trafficking convictions, having previously been convicted of trafficking in cocaine in both Campbell and Kenton counties.                        

Justice pleaded guilty to the federal charge in August 2020.

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

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Keith Martin, Special Agent in Charge, DEA Detroit Field Division; jointly announced the sentencing.

The investigation was conducted by the DEA.  The United States was represented by Assistant U.S. Attorney Elaine Leonhard.  

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

— END —

LONDON, Ky. - Jake Messer, 37, and George Oscar Messer, 61, of Rockholds, Kentucky were indicted by a federal grand jury sitting in London on Thursday, on federal kidnapping charges.

The indictment alleges that, in April of 2018, in Clay and Whitley Counties, the Messers used a means, facility, and instrument of interstate commerce to kidnap two individuals.   

The investigation preceding the indictment was conducted jointly by the ATF and the Kentucky State Police.

Both Defendants are awaiting initial appearances before the United States District Court.  If convicted, both men face a maximum of life 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 statutes governing the imposition of sentences.

An 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.

-END-

LONDON, Ky. – A former Rockcastle County Deputy Jailer, Derek Steven Clark, 25 ,was sentenced to 39 months in federal prison on Thursday, before U.S. District Court Judge Claria Horn Boom, for violating the civil rights of an inmate in his custody.

Clark was convicted by a federal jury, in July 2020.  According to testimony at trial, Clark and others placed an inmate victim into a restraint chair.  Clark then aided and commanded the assault of the victim by another inmate, which resulted in bodily injury.  Afterwards, Clark completed an official incident report, to document the incident; but in completing that report, Clark falsely stated that, after he and others placed the victim in the restraint chair, the victim began spitting at deputy jailers, causing two inmates to intervene.  Clark’s false report indicated one inmate instinctively slapped the victim, which caused the victim’s lip to bleed, and the victim then spit blood, causing the inmate to punch the victim.

The evidence established that, in truth, Clark and others placed the victim into the restraint chair, and the victim did not become physically combative or spit at deputies, before being punched by the inmate.           

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

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.

The investigation was conducted by the FBI.  The United States was represented in the case by Assistant U.S. Attorney Hydee Hawkins.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

— END —

LONDON, Ky. – A Somerset, Kentucky man, Bradley D. Hall, 38, was sentenced to 408 months in federal prison on Thursday, before U.S. District Court Judge Claria Horn Boom, after being convicted of two counts of production of child pornography. 

According to his plea agreement, on September 15, 2019, Hall engaged in a conversation with an undercover FBI employee, using the Kik messenger application.  Hall admitted to operating a Kik messenger group that focused on child exploitation, and to recording, live streaming, and sending videos of child pornography to the undercover FBI employee.                       

Hall pleaded guilty in June 2020.

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

Robert M. Duncan, Jr., 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.  The United States was represented by Assistant U.S. Attorney Jenna 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.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

— END —

LONDON, Ky. – A London man, Andrew Dick, 29, was sentenced to 120 months in federal prison on Thursday, before U.S. District Court Judge Claria Horn Boom, for possession of child pornography.

According to his plea agreement, on March 28, 2019, Dick admitted to possessing sexually explicit images of nude prepubescent minors on his computer devices.  He also acknowledged that he downloaded child pornography images from particular website, via the Internet, and that he possessed explicit images of minors that appeared to be as young as six years old.

Dick had previously been convicted, in a military court martial, in February 2013, of wrongful possession of child pornography and wrongful receipt of child pornography.

Dick pleaded guilty the federal charges in July 2020.

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

Robert M. Duncan, Jr., 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.  The United States was represented by Assistant U.S. Attorney Jenna 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.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

— END —

LEXINGTON, Ky.- A former Cook Supervisor at United States Penitentiary Big Sandy, Hank Williams, 56, of Weeksbury, Kentucky, was indicted on Thursday in federal court for one count of conspiracy to distribute 50 grams or more of methamphetamine, one count of money laundering, two counts of attempting to possess with intent to distribute 50 grams or more of methamphetamine, one count of accepting a bribe by a public official, one count each of attempting to provide and providing contraband, and three counts of using a communication device to facilitate a felony offense.

A former Big Sandy inmate, Librado Navarette, 34, was also charged with one count of bribery of a public official and one count of possession of contraband.

The indictment alleges that, beginning in March 2016 and continuing through September 27, 2019, Williams conspired with others to distribute 50 grams or more of methamphetamine and conspired with others to money launder. The indictment further alleges that Williams, a public official, accepted a bribe from Navarette. Williams was also indicted for aiding and abetting the use of the U.S. mail to possess with intent to distribute controlled substances.           

The investigation preceding the indictment was conducted jointly by the Department of Justice’s Office of the Inspector General, FBI, the United States Postal Service, and the Georgetown Police Department.

William’s appearance before the United States District Court has not been scheduled.  If convicted, Williams faces a maximum prison sentence of 20 years. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statutes governing the imposition of sentences.

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 Middlesboro firefighter was convicted late Monday, by a federal jury sitting in London, of receiving and possessing child pornography, on a Middlesboro Fire Department laptop. 

The jury convicted Robert Christopher England, 35, after 30 minutes of deliberations, following a five-day trial.

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.

England was indicted in October of 2018.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, James R. Brown, Special Agent in Charge, Federal Bureau of Investigation (FBI) Louisville Division; and Acting Commissioner Col. Phillip Burnette, Jr., Kentucky State Police, jointly announced the jury’s verdict.

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

England will appear for sentencing, before U.S. District Judge Claria Horn Boom, on March 16, 2021.  He faces a maximum of 20 years in prison for each count.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing the sentence.

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

-END-

PIKEVILLE, Ky. – Two Lovely, Kentucky men, Sherman Jude, 73, and Johnathon Jude, 40, pleaded guilty on Thursday, October 30, before U.S. Magistrate Judge Edward Atkins, to violations of the Lacey Act regarding ginseng purchases and record keeping of said purchases.

The harvesting and sale of ginseng is governed by state regulations, and includes record keeping requirements and a limited harvest season. According to their plea agreements, Sherman Jude was a dealer of wild American ginseng; and his son, Johnathon Jude, worked with him to keep records of the ginseng purchased from diggers and harvesters.

The investigation by the United States Fish and Wildlife Service revealed that over a period of years, the Judes had falsified the required Kentucky Ginseng Purchase Forms for multiple purchases of wild ginseng, including not keeping records of all the purchases, and purchasing ginseng that was known to have been harvested from another state, without being properly certified before entering Kentucky. Sherman Jude also acknowledged that, as of August 2019, he had purchased 12.5 pounds of ginseng that had been harvested improperly, out of season.

The Judes were indicted in June 2020. 

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky and the United States Fish and Wildlife Service, jointly made the announcement. 

The investigation was directed by the United States Fish and Wildlife Service, Kentucky Department of Agriculture, and Kentucky Department of Fish and Wildlife Resources.  The United States was represented by Assistant U.S. Attorney Emily K. Greenfield.

The Judes are scheduled to be sentenced on February 17, 2021.  Sherman Jude faces a maximum of five years in prison.  Johnathon Jude faces up one year in prison.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the applicable federal sentencing statutes. 

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years

– END –

FRANKFORT, Ky. – A California man, Michael John Davidson, 31, was sentenced to 120 months in prison on Thursday, by U.S. District Judge Gregory Van Tatenhove, after previously being convicted by a federal jury of attempted online enticement of a minor to engage in sexual activity.  The jury reached its verdict after approximately one hour of deliberations, following a day and a half trial.           

According to testimony at trial, on February 20, 2019, Davidson contacted an individual, who self-identified as a 15-year-old female living in Franklin County, Kentucky, using the KiK messenger internet application on his cellular telephone.  The person Davidson contacted was, in reality, an investigator with the Kentucky Office of the Attorney General’s Cyber Crimes Branch.  From February 20-22, 2019, a conversation between Davidson and the investigator took place on the KiK messenger. Eventually, the Defendant turned the conversation sexual activity, and transmitted several images of himself.  

The conversation between the Davidson and the investigator resulted in a planned meeting for sex, on February 22, 2019.  On February 22, 2019, Davidson drove from Jamestown, Kentucky, to Frankfort, Kentucky, in order to meet the investigator and engage in criminal sexual activity.  When the Davidson arrived at the agreed-upon meeting place, he was arrested by law enforcement.  

 Davidson was convicted in May 2020.

Under federal law, Davidson must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 20 years, following his release. In addition to the prison sentence, Davidson was also ordered to pay $5,100 in special assessments.

“The importance of the law enforcement efforts to protect children from online sexual predators cannot be overstated,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The defendant used the internet to knowingly plan to have sex with someone he believed was a 15 year old girl. Fortunately, because of the excellent work of law enforcement, he was identified and arrested. His federal prison sentence is deserved, and serves as a warning for those who would engage in similar conduct.”

“Investigators with our Cyber Crimes Unit work to stay one step ahead of cyber predators who target children,” said Attorney General Cameron. “As children spend more time online during the pandemic, these efforts and partnerships with law enforcement are more important than ever. I appreciate the work of our Department of Criminal Investigations, U.S. Attorney Duncan, and the Louisville Field Division of the U.S. Secret Service in this case.“

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Ralph Gerds, Assistant Special Agent in Charge, U.S. Secret Service Louisville Field Division; and Daniel Cameron, Attorney General for the Commonwealth of Kentucky, jointly announced the sentencing.

The investigation was conducted by the United States Secret Service and Kentucky Attorney General’s Cyber Crime Branch.  The United States was represented in the case by Assistant U.S. Attorney Erin M. Roth and Special Assistant U.S. Attorney James T. Chapman. 

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, which was 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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COVINGTON, Ky. - A Bromley, Ky., man, Brandon Daunt, 33, was sentenced to 150 months in federal prison on Tuesday, by U.S. District Judge David Bunning, for possession with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking.

According to Daunt’s plea agreement, on February 13, 2020, law enforcement arrested him on an existing warrant, after he exited his apartment.  Upon searching his backpack, they found 25.6 grams of methamphetamine, 7.1 grams of crack cocaine, 5.3 grams of fentanyl, 184.8 grams of marijuana, two cell phones, and $1,157 in cash.  Law enforcement then searched his apartment, finding three firearms, which Daunt admitted he possessed to protect himself, his drugs, and his proceeds, and later admitted acquiring in exchange for drugs.

 Daunt pleaded guilty in July 2020.

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

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Keith Martin, Special Agent in Charge, DEA Detroit Field Division; and Christopher Conners, Director of the Northern Kentucky Drug Strike Force, jointly announced the sentence.

The investigation was conducted by the DEA and Northern Kentucky Drug Strike Force.  The United States was represented by Assistant U.S. Attorney Wade Napier.

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

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

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PIKEVILLE, Ky. – Christopher Francisco, 30, of Boyle County, Kentucky, was sentenced last week to 322 months in federal prison, by United States District Judge Robert Wier, for possession with the intent to distribute over 500 grams of methamphetamine and possession of a firearm in furtherance of drug trafficking.           

According to his plea agreement, law enforcement stopped Francisco’s vehicle in Floyd County, Kentucky, on February 11, 2020, and found approximately three pounds of methamphetamine and a loaded firearm.  Francisco admitted in his plea agreement that he had been regularly delivering methamphetamine to drug dealers in Floyd County.  During the sentencing hearing, the Court found that Francisco was responsible for the introduction of between 15 and 45 kilograms of methamphetamine into Floyd County, between November 2019 and February 2020. Before this latest conviction, Francisco had twice been convicted of state drug trafficking charges, resulting his designation as a “career offender,” for the purposes of the federal sentencing guidelines. 

Under federal law, Francisco 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.

“The defendant was responsible for trafficking an enormous amount of a dangerous, illegal drugs,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We are committed to reducing the availability of these dangerous drugs, and the violence that often accompanies armed methamphetamine trafficking.  This case reinforces a simple point: dealing meth with a gun invites a long stay in a federal prison.” 

U.S. Attorney Duncan; Shawn Morrow, Special Agent in Charge of the ATF Louisville Field Division; and John Hunt, Floyd County Sheriff, jointly announced the sentence.

The investigation was conducted by ATF and the Floyd County Sheriff’s Office.  The United States was represented by Assistant U.S. Attorney Andrew H. Trimble. 

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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LEXINGTON, Ky. – A Los Angeles, CA. man, Adalberto Pineda Santos, 50, was sentenced in federal court last Friday to 162 months in prison, before U.S. District Judge Claria Horn Boom, for conspiracy to distribute five kilograms or more of cocaine and conspiracy to launder money.

According to his plea agreement, Santos admitted that he conspired with others to distribute more than five kilograms of cocaine in Fayette County. Santos admitted that he would fly into the United States from Mexico to oversee the collection of money from the sale of cocaine and to distribute loads of cocaine at the direction of other co-conspirators. In the plea agreement, Santos admitted that couriers were used to transport drugs into Fayette County for distribution and to transport drugs out of Fayette County to locations in Colorado. In total, Santos admitted that the total amount of drugs attributable to him is 5 to 15 kilograms of cocaine.

Santos pleaded guilty in March 2020.

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

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J.T. Scott, Special Agent in Charge, DEA Louisville Field Division; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, jointly announced the guilty plea.

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

The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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LEXINGTON, Ky. – Two defendants were sentenced in federal court today, for their roles in an international money laundering conspiracy; a third was convicted last Friday, by a federal jury in Lexington, for his role in the scheme.           

Last week, after an hour of deliberations, following a three-day trial, a federal jury convicted 34 year old Baaki Abdul Majeed of wire fraud conspiracy, money laundering conspiracy, and five counts of transactional money laundering.            

According to testimony at trial, Majeed conspired with Kahad Wuupini, 35, and Thomas Inkoom, 42, in a money laundering conspiracy.  Evidence revealed that the conspirators agreed to aid in and launder $757,000 in funds, which were defrauded from a victim of an online romance fraud scheme.  After receiving cashier’s checks, personal checks, and cash from the victim, Majeed and his co-conspirators laundered the money from Washington and New Jersey, back to Ghana, by purchasing cars that were shipped to Ghana, obtaining cashier’s checks, and wiring funds to each other or other individuals in the United States and Ghana.  The purpose of these transactions was to conceal and disguise the proceeds of their online romance fraud.

Majeed, Wuupini, and Inkoom were indicted in August 2019.

Wuupini and Inkoom pleaded guilty to the money laundering conspiracy in March 2020 and were sentenced today, by Chief U.S. District Judge Danny C. Reeves.  Wuupini was sentenced to 79 months in prison and Inkoom was sentenced to 19 months.  Under federal law, both must serve 85 percent of their prison sentences and will be under the supervision of the U.S. Probation Office for 3 years, following their release.  Wuupini was ordered to pay $757,000 and Inkoom was ordered to pay $100,000 in restitution. 

“The scheme, using fraud and deceit, preyed upon the victim’s hopes and took advantage of her kindness, ultimately stealing over $750,000 of her money,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Unfortunately, internet-based romance scams are becoming more and more prevalent.  It is important for people to be cautious about sending money to someone they have only met online. If something seems too good to be true, it often is.  I commend the hard work of FBI personnel and members of my Office, to hold the defendants accountable for their crimes, and to bring a measure of justice to the victim.”

“Romance scammers use promises of love and romance to entice victims online often persuading them to send money, personal and financial information, and items of value to the perpetrator,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office. “The defendants in this case not only deceived a vulnerable individual, but then proceeded to engage in multiple money laundering schemes in order to conceal their original scam. The FBI will not stand for fraudsters who seek to gain financially by preying upon the “heartstrings” of Americans.”

United States Attorney Duncan and SAC Brown jointly announced the conviction.

The investigation was conducted by the FBI. The United States was represented in the case by Assistant U.S. Attorney Kate Smith. 

Majeed will appear for sentencing on January 29, 2021. He faces a maximum of 20 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

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COVINGTON, Ky. - A Ft. Thomas, Kentucky man, James Hamilton, 52, was sentenced to 90 months on Friday, by U.S. District Judge David Bunning, for distribution of child pornography.

According to his plea agreement, between January 31, 2018 and March 1, 2018, an investigator with the Kentucky Internet Crimes Against Children (ICAC) task force traced a computer, which had connected to Bit Torrent and downloaded files depicting minors engaged in sexually explicit conduct, to a computer in Hamilton’s possession.  After a search warrant was obtained, Hamilton’s laptop was seized by law enforcement, who later found the suspected files, along with over 600 images depicting minors engaged in sexually explicit conduct.

Hamilton pleaded guilty in June 2020.           

Under federal law, Hamilton 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.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jerry C. Templet Jr., Special Agent in Charge, Department of Homeland Security Homeland Security Investigations; and Chief Craig Sorrell, Campbell County Police Department, jointly announce the sentence.

The investigation was conducted by HIS and the Campbell County Police Department. The United States was represented in the case by Assistant U.S. Attorney Wade Napier.

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.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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FRANKFORT, Ky. –A compounding pharmacy based in Nicholasville, and its owner, admitted on Thursday in federal court to unlawful distribution of compounded prescription drugs. 

Tailor Made Compounding LLC (TMC) pleaded guilty to one count of distributing unapproved new drugs throughout the United States, from October 25, 2018 through April 1, 2020, before U.S. District Judge Gregory F. Van Tatenhove.  Specifically, TMC pleaded guilty to unlawful distribution of selective androgen receptor modulators (“SARMS”) and other substances that the FDA had not approved for distribution in the United States.  SARMS are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids.  Products containing SARMS were often marketed and sold for body-building purposes.  According to the plea agreement, TMC also unlawfully distributed other unapproved new drugs, including BPC 157, Cerebrolysin, CJC 1295, DSIP, Epitalon, GW 501516, Ipamorelin, LGD-4033, LL-37, Melanotan II, MK 677, PEG-MGF, Selank, and Semax.  In connection with the plea, TMC agreed to forfeit $1,788,906.82, representing its 2019 sales for these products.

Jeremy Delk, 40, pleaded guilty to one count of unlawfully engaging in wholesale distribution of a prescription drug, without licensing TMC as a wholesale distributor with the Board of Pharmacy for the Commonwealth of Kentucky.  According to the plea agreement, from October 23, 2018 through May 14, 2020, TMC sent 112 vials of Methylcobalamin 10mg/ml 10mL, a prescription form of vitamin B12, to Doctor 1, a licensed physician who operated an anti-aging/wellness clinic in the Greater Los Angeles area.  Rather than sending individualized, patient-specific prescriptions to TMC, as is required by law, Doctor 1 made bulk orders of Methylcobalamin 10mg/ml 10mL without issuing prescriptions or providing accurate patient names.  Delk, as owner and chief executive officer of TMC, knowingly caused TMC to fill and ship bulk, wholesale distributions of Methylcobalamin to Doctor 1, knowing that TMC had never applied for permission from the Kentucky Board of Pharmacy for TMC to act as a wholesale distributor of prescription drugs.  When authorities from the FDA and the Kentucky Board of Pharmacy inspected TMC between August 20 and October 24, 2018, Delk took steps to hide records of TMC’s wholesale distributions of Methylcobalamin, as well as other records.

Tailor Made and Delk were charged by way of information, waiving their right to indictment by a federal grand jury.

“The safety and efficacy of prescription medications is of paramount importance to us all,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.  “When pharmacies intentionally evade the FDA requirements, they are placing their own interests above those of the patients they are supposed to be serving.  The community deserves better, and I commend the work of our law enforcement partners in their diligent efforts to protect the public and disrupt this criminal conduct.”

“Compounded drugs can serve an important role for patients whose medical needs cannot be met by an FDA-approved drug product. But pharmacies will be held responsible for failing to follow the laws intended to protect patients, including requirements for licensure and limitations on what drugs can be appropriately compounded,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who put profits above a patient’s health.”

United States Attorney Duncan; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation jointly announced the guilty plea.

The investigation was conducted by the FDA and the FBI.  The United States was represented by Assistant U.S. Attorney Kate K. Smith. 

Delk and Tailor Made Compounding are scheduled to be sentenced on February 24, 2021.  Delk faces up to 10 years in prison and a maximum fine of $250,000.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.  

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LEXINGTON, Ky. - A Mt. Sterling, Kentucky husband and wife, Michael McNew, 49, and Karen Ann Nickell, 64, pleaded guilty on Thursday, before U.S. District Judge Karen Caldwell, to conspiracy to commit wire fraud and crop insurance fraud, respectively.

According to his plea agreement, McNew admitted that, in late 2013, he devised a scheme to defraud the federal government, on federal crop insurance policies, and ARMtech Insurance Services, on private crop-hail insurance policies. As to the federal policies, this scheme involved making material misrepresentations on crop insurance applications and claim of loss forms on a large scale, including knowingly misrepresenting ownership stakes, farm acreage, farming activity on the farms covered, and the consent of the parties in whose name the policies are taken out. McNew also admitted to submitting false claims of loss on the private crop-hail policies, knowing that the claims falsified acreage, percentage of damage, and photographs of the damage. McNew admitted to receiving a kickback from the farmers in the form of cash in exchange for these favorable adjustments. As a result of his conduct, fraudulent insurance policies were issued and paid, resulting in approximately $23,618,351 worth of insurance indemnity payouts distributed to producers under false pretenses.

In her plea agreement, Nickell admitted that while acting as an independent insurance adjuster for ARMtech Insurance Services, she aided and abetted others in knowingly making false statements and reports for the purpose of making a false claim of loss on a federal crop insurance policy belonging to an individual identified as E.L.P. She admitted that on three occasions, she adjusted tobacco crops on a property insured under E.L.P.’s name, when in reality that specific claimed property was a wooded lot, incapable of growing tobacco.

Michael McNew was indicted in November 2019.  Karen Ann Nickell was indicted in February 2020.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Jason M. Williams, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly made the announcement.

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

McNew is scheduled to be sentenced on January 15, 2021.  He faces up to 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss.  Nickell is also scheduled to be sentenced on January 15, 2021.  She faces probation for two years, a $15,000 fine, and a payment of restitution of $58,486.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal statutes. 

 

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