Eastern District of Kentucky

LEXINGTON, Ky.- A Lexington man, Dashawn Dawkins, 34, was convicted on Wednesday by a federal grand jury in Lexington for conspiracy to commit healthcare fraud and conspiracy to receive kickbacks.  Dawkins was convicted of the charges following a 3-day trial. 

Dawkins was a peer support specialist at Serenity Keeper’s, LLC (“Serenity Keepers”), a sober home company based in Fayette County, Ky., that purported to provide mental health and substance abuse treatment services and housing for individuals enrolled in its program.  The evidence at trial showed that Mr. Dawkins received $62,750 in illegal kickbacks for the ordering of urine drug testing at Serenity Keepers that cost Kentucky Medicaid and Medicare a combined $2,569,946.  The evidence further showed that the urine drug testing was fraudulent in that it was not ordered by a treating medical provider, nor were the results reviewed by a treating medical provider. Instead, more than 9,000 urine drug tests were ordered under the stolen identification number and forged signature of a Nurse Practitioner who was briefly associated with Serenity Keepers.

The evidence also showed that Serenity Keepers billed for fraudulent peer support services that were not provided at all and were not supervised by licensed professionals, as required by Medicaid regulations. The company billed for 6 hours of peer support services a day for every patient in their care regardless of whether that was provided, including services purportedly provided by Dawkins.  Medicaid paid Serenity Keepers $9,077,260 for behavior health claims that were not provided in accordance with Medicaid regulations, or were not provided at all.

Dawkins was the fifth defendant convicted as part of the investigation into Serenity Keepers’ scheme.  Delores Jordan, the owner of Serenity Keepers, and Jerome Davis, her boyfriend, both pled guilty to their role in the kickback conspiracy. Lily Bell, who paid the kickbacks to Dawkins, Jordan, and Davis, and who facilitated the abuse of the Nurse Practitioner’s stolen identifiers, pled guilty to aggravated identity theft. Ernest Williams, who ran several of the sober homes for Serenity Keepers, pled guilty to a health care fraud conspiracy involving fraudulent urine drug testing and fraudulent peer support services.

Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; and Russell Coleman, Kentucky Attorney General, jointly announced the conviction.

The investigation was conducted by the FBI and the Kentucky Attorney General, Office of Medicaid Fraud and Abuse. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Kate K. Smith.  

Dawkins will appear for sentencing on July 9. He faces a maximum of 10 years in prison and any restitution determined by the Court. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

— END — 

FRANKFORT, Ky. – A Lexington, Ky., man, Ronald Jerome Woolfolk, Jr., 27, was sentenced on Tuesday to 34 months by U.S. District Judge Gregory Van Tatenhove for wire fraud and aggravated identity theft. 

Woolfolk was employed as a licensed mortician apprentice at a funeral home in Fayette County. In his position, Woolfolk had access to the personal identifying information of clients and deceased persons, as well as the funeral home’s email address. According to his plea agreement, from on or about August 15, 2022, through October 16, 2023, Woolfolk defrauded a charity that financially supported families affected by the tragedy of losing a child. Using the funeral home’s email address, Woolfolk submitted approximately 23 requests to the charity seeking financial assistance on behalf of both real and fictitious deceased persons and their families. The requests contained false information and fictitious documentation to support the requests for funding, including fake invoices for funeral expenses, fake cremation certificates, and fabricated letters using the funeral home’s letterhead. Woolfolk directed the payments to a fake company he created. Of the approximately 23 fraudulent requests for assistance, Woolfolk sought assistance with funeral expenses for three real deceased babies/toddlers and two young adults. Neither the funeral home, nor the family members of the deceased, knew of Woolfolk’s actions. 

In total, Woolfolk fraudulently obtained $11,929.49 from the charity. 

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

Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky, and Robert Holman, Special Agent in Charge, U.S. Secret Service, jointly announced the sentence.

The investigation was conducted by the U.S. Secret Service. Assistant U.S. Attorney Andrea Mattingly Williams is prosecuting the case on behalf of the United States.

– END –

COVINGTON, Ky. – A Crescent Springs, Ky., man, Quenton Abell, 22, was sentenced on Monday to 60 months in prison by Chief U.S. District Judge David Bunning for possession of a firearm by a convicted felon. 

According to his plea agreement, law enforcement executed a search warrant on Abell’s residence in Kenton County on August 25, 2025, after surveillance officers observed Abell outside his residence in possession of two firearms. During the search, law enforcement located two handguns and multiple magazines, including loaded extended magazines. Abell was aware at the time of the search that he had a prior felony conviction and was prohibited from possessing a firearm. Messages on Abell’s phone indicated that he was involved in buying and selling controlled substances while in possession of the firearms.  

Abell was previously convicted in 2023 of Second Degree Assault and First Degree Wanton Endangerment in the Kenton County Circuit Court. 

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

Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; and Scott Hardcorn, Director of the Northern Kentucky Drug Strike Force, jointly announced the sentence.

The investigation was conducted by the FBI and the Northern Kentucky Drug Strike Force. Assistant U.S. Attorney Tony Bracke is prosecuting the case on behalf of the United States.

– END –

FRANKFORT, Ky. – A Georgetown, Ky., woman, Mabel Francis Soto, 70, was sentenced on Tuesday to 60 months by U.S. District Judge Gregory Van Tatenhove for conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl. 

According to her plea agreement, Soto conspired with her co-defendant, Taylor Burden, to sell drugs out of Soto’s residence in Georgetown, Kentucky.  On October 19, 2022, after while surveilling Soto’s residence, a search warrant was obtained for Soto’s residence. 

A search of Soto’s residence recovered more than 100 grams of fentanyl pills, crushed fentanyl pills, and a distribution quantity of methamphetamine. Law enforcement also found a handgun and approximately $251,100 in drug proceeds. 

Burden was previously sentenced in January 2026 to 60 months in prison for his role in the fentanyl trafficking conspiracy.

Under federal law, Soto must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for 4years. 

Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; and Chief Darin Allgood, Georgetown Police Department, jointly announced the sentence.

The investigation was conducted by the FBI and Georgetown Police Department. Assistant U.S. Attorney Cynthia Rieker is prosecuting the case on behalf of the United States.

– END –

LEXINGTON, Ky. – A Cold Spring-based manufacturer of custom screw machine parts, Segepo-FSM, Inc., agreed to pay $887,234 to resolve allegations that it violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims.

Congress created the Paycheck Protection Program (PPP) to provide emergency financial assistance to small American businesses struggling to pay employees and other expenses during the COVID-19 pandemic. Under the PPP, eligible small businesses could receive forgivable loans guaranteed by the U.S. Small Business Administration (SBA). Borrowers were required to certify in their applications that they were eligible for the requested loans and that the information they provided was true and accurate. Regulations provided various eligibility requirements for the PPP, including limitations on the number of employees.

The settlement resolves allegations that Segepo-FSM, Inc. falsely certified it was eligible to apply for and receive forgiveness of its $503,900 second-draw PPP loan. Segepo-FSM, Inc. stated that it had fewer than 300 employees in its application. At the time of its loan and forgiveness applications, Segepo-FSM, Inc. was a subsidiary of Dentressangle. The Government contends that, together with its foreign affiliates, Segepo-FSM, Inc. had more than 300 employees and was therefore ineligible for that loan. Based on this false certification, SBA awarded and ultimately forgave Segepo-FSM, Inc.’s second-draw loan.

The settlement resolves a lawsuit brought by a private citizen under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery. As part of this resolution, the individual who filed the qui tam complaint is eligible to receive a portion of the settlement proceeds. The civil case is captioned United States ex rel. Verity Investigations, LLC v. Segepo-FSM, Inc., Case No. 2:24-cv-105-DLB-CJS.

This matter was handled by the Affirmative Civil Enforcement Section of the U.S. Attorney’s Office, with assistance from the SBA’s Office of General Counsel. The claims resolved by the settlement are allegations only; there has been no determination of liability.

– END –

COVINGTON, Ky. – A Cincinnati man, Bryant Adams, 43, was sentenced on Thursday to 120 months by Chief U.S. District Judge David Bunning for possession with intent to distribute 50 grams or more of methamphetamine. 

According to his plea agreement, law enforcement used a cooperating witness to purchase 55.9 grams of methamphetamine from Adams on August 28, 2024. Adams agreed to make another sale of methamphetamine on September 3, 2024, and law enforcement arrested Adams when he arrived at the designated pickup location. Adams was found with 80.2 grams of methamphetamine and admitted distributing approximately one pound of methamphetamine per week in the six months leading up to his arrest. 

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; and Director Scott Hardcorn, Northern Kentucky Drug Strike Force, jointly announced the sentence.

The investigation was conducted by the DEA and Northern Kentucky Drug Strike Force. Assistant U.S. Attorney Tony Bracke is prosecuting the case on behalf of the United States.

– END –

LONDON, Ky. – A Chicago man, Ranjit Wahi, 78, was sentenced on Tuesday, to 29 months, by U.S. District Judge Claria Horn Boom, for conspiracy to distribute oxycodone and methadone. 

According to his plea agreement, beginning in 2019 and continuing through November 18, 2022, Wahi conspired with others to dispense controlled substances, including oxycodone and methadone, outside the scope of professional practice and not for a legitimate medical purpose. As part of the conspiracy, Wahi employed Judith Harskey as a receptionist at Midwest Physician Pain Center, Wahi’s pain clinic in Chicago. During the conspiracy time period, patients regularly traveled to this clinic, and without seeing Wahi or any other doctor, paid Harskey cash in exchange for prescriptions that were previously signed by Wahi for oxycodone, methadone, and other controlled substances.

On November 18, 2022, law enforcement executed a search warrant of Midwest Physician Pain Clinic and recovered 541 blank prescriptions from Harskey’s office, including 30 from her purse, that Wahi had signed in advance. 

Harskey pleaded guilty to conspiring to distribute oxycodone and methadone in 2024 and was sentenced to 36 months in prison. 

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, and Jim Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence.

The investigation was conducted by the DEA. Assistant U.S. Attorney Pearce Nesbitt is prosecuting the case on behalf of the United States.

– END –

FRANKFORT, Ky. – A Versailles, Ky., woman, Melissa Wilhoite, 40, was sentenced on Wednesday to 180 months by U.S. District Judge Gregory Van Tatenhove for two counts of distribution of fentanyl resulting in serious bodily injury. 

According to her plea agreement, on November 22, 2024, emergency personnel responded to an overdose at the Woodford County Detention Center. It was discovered that after Wilhoite’s arrest on November 21, 2024, she smuggled a quantity of fentanyl into the facility, and then distributed it to two of her cell mates.  Those two victim inmates exhibited signs of an overdose, including loss of consciousness and discoloration, and were transported to a hospital for further treatment. Wilhoite later admitted to distributing fentanyl inside the facility. 

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; and Chief Ron Young, Versailles Police Department, jointly announced the sentence.

The investigation was conducted by the DEA and Versailles Police Department. Assistant U.S. Attorney Ron Walker is prosecuting the case on behalf of the United States.

– END –

LONDON, Ky. – A London woman, Nicole Pennington, 50, was sentenced on Tuesday to 44 months by U.S. District Judge Claria Horn Boom for wire fraud and conspiracy to commit money laundering, arising out of a scheme to fraudulently obtain Economic Injury Disaster Loans and Paycheck Protection Program loans.

In March 2020, in response to the COVID-19 pandemic, the United States established the Paycheck Protection Program (PPP), which provided forgivable loans to small businesses as an incentive to keep their workers on the payroll, and expanded funding for the Economic Injury Disaster Loan (EIDL) program, which provided low-interest loans to small businesses to cover operational expenses.  The Small Business Administration (SBA) administered both programs.  According to her plea agreement, from March 2020 to May 2022, Nicole Pennington devised a scheme to defraud the government by making materially false statements on PPP and EIDL applications. In total, Pennington submitted about 30 PPP and EIDL applications on behalf of actual and fabricated businesses associated with herself and her husband, Joshua Pennington. All of these applications contained material falsehoods, and Nicole Pennington supported them with fraudulent tax returns, financial statements, and other records. Six of the loan applications were approved for a total of $1,090,398.35 in fraudulently obtained SBA loan proceeds.

After receiving the loan proceeds, Nicole Pennington and her co-defendant, Joshua Pennington, laundered more than $1,000,000 in criminally derived funds by engaging in a series of transactions in amounts of $10,000 or more. Specifically, they used the money to renovate their kitchen, pay for plastic surgery, purchase a Viking River Cruise trip, withdraw cash, purchase vehicles, and pay off loans and mortgages.

Joshua Pennington was previously sentenced to 22 months in prison for his role in the money laundering conspiracy. 

Under federal law, Nicole Pennington must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for two years. 

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division; and Karen Wingerd, Special Agent in Charge, IRS-Criminal Investigations, Detroit Field Division, jointly announced the sentence.

The investigation was conducted by the Treasury Inspector General for Tax Administration and the IRS-CI. Assistant U.S. Attorney Andy Smith prosecuted the sentencing on behalf of the United States.

The Fraud Section leads the Department of Justice Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the enactment of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.

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

– END –

COVINGTON, Ky. – A Warsaw, Ky., man, David Vonarb, 26, was sentenced on Friday to 132 months by Chief U.S. District Judge David Bunning, for the distribution of child pornography. 

According to his plea agreement, on June 13, 2024, an online covert employee with the FBI engaged in a direct-messaging conversation with user “dirtydad69” on an end-to-end encrypted application, in which the user distributed child pornography to the online covert employee. Following the direct messaging conversation, the user continued to distribute depictions of minors engaged in sexually explicit conduct in various chatrooms. In total, the user distributed at least 13 videos and 8 images. Law enforcement discovered that the user was Vonarb, and on October 23, 2024, law enforcement searched his residence, and he admitted that he used the encrypted application to receive, view, and distribute child pornography, and that he had used the application the day before the search. A forensic review of Vonarb’s laptop revealed evidence of thousands of images and videos of child pornography.

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, and Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.

The investigation was conducted by the FBI. Assistant U.S. Attorney Kyle Winslow is prosecuting the case on behalf of the United States.

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

– END –

COVINGTON, Ky. – A Walton, Ky., man, Ronald Knox, 55, was sentenced on Friday to 168 months by Chief U.S. District Judge David Bunning, for the distribution of child pornography and possession of child pornography. 

According to court documents, in January 2025, Knox distributed a depiction of a minor engaged in sexually explicit conduct to an undercover law enforcement officer by means of a BitTorrent peer-to-peer network. In May 2025, law enforcement seized Knox’s devices from his residence. A search of those devices revealed a significant amount of child pornography, including the distributed image and other depictions of minors engaged in sexually explicit conduct. Knox admitted that he viewed child pornography and that he had been doing so for years. 

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; and Chief Craig Patrick Sorrell, Campbell County Police Department, jointly announced the sentence.

The investigation was conducted by the FBI and Campbell County Police Department. Assistant U.S. Attorney Drew Spievack is prosecuting the case on behalf of the United States.

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

– END –

LONDON, Ky. – A group of defendants from Somerset, Ky., were sentenced this week by U.S. District Judge Robert Wier for their roles in a methamphetamine trafficking conspiracy. 

Robert Allen, 55, Larry Ellison, 41, and Rebecca Garlandios, 45, were sentenced to 150 months, 164 months, and 70 months and two days, respectively, for conspiracy to distribute 50 grams or more of methamphetamine. 

According to their plea agreements, from January 2024 through December 19, 2024, Allen, Ellison, and Garlandios conspired with each other to distribute methamphetamine from local sources of supply to purchasers in the Pulaski County area. Specifically, on January 23, 2024, law enforcement worked with a confidential informant to purchase two ounces of methamphetamine from Allen, who, during a subsequent traffic stop, was found with 56 grams of methamphetamine on his person. Law enforcement conducted a search of the house shared by Allen and his sister Garlandios that same day, and recovered a baggy from the bottom of a toilet bowl, a container Garlandios attempted to conceal in her pants, digital scales and baggies, and more than 48 grams of methamphetamine.

On December 19, 2024, law enforcement stopped Ellison during a traffic stop and recovered empty plastic bags, digital scales, and a bag containing 29.59 grams of methamphetamine. Ellison admitted that the methamphetamine came from a series of regular deliveries from a local source of supply, including a recent half-pound delivery of methamphetamine to his girlfriend, Garlandios. Ellison also confirmed that at the time of the earlier January 2024 traffic stop, he regularly drove Allen to deliver two ounces of methamphetamine to a customer. 

Under federal law, Allen, Ellison, and Garlandios must serve 85 percent of their prison sentence. Upon their release from prison, they will each be under the supervision of the U.S. Probation Office for four years. 

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, and Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.

The investigation was conducted by the FBI. Assistant U.S. Attorney Pearce Nesbitt is prosecuting the case on behalf of the United States.

– END –

LONDON, Ky. – A Louisville, Ky., man, Keith Wayne Bishop, 47, was sentenced on Tuesday to 120 months, by U.S. District Judge Claria Horn Boom, for conspiracy to distribute 500 grams or more of methamphetamine. 

According to his plea agreement, beginning in January 2023 through September 2023, Bishop conspired with others to distribute 500 grams or more of methamphetamine. Specifically, during this timeframe, Bishop was obtaining upwards of pound quantities of methamphetamine, which he would then distribute to mid- and low-level drug dealers and end drug users in Laurel County. Bishop admitted to also supplying several other drug dealers in Knox, Whitley, Floyd, and Pike Counties.  

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Sheriff Mike Smith, Knox County Sheriff’s Office, jointly announced the sentence.

The investigation was conducted by the DEA, KSP, and Knox County Sheriff’s Office. Assistant U.S. Attorney Sam Dotson is prosecuting the case on behalf of the United States.

– END –

COVINGTON, Ky. – A Cincinnati, Ohio, man, Brian E. Hunter, 33, was sentenced on Friday, to 48 months in prison, by Chief U.S. District Judge David Bunning for possession of a firearm by a convicted felon. 

According to court records, on May 26, 2025, law enforcement stopped a vehicle driven by Hunter for traffic violations. During the search of the vehicle, law enforcement located remnants of marijuana and a stolen, loaded pistol on the driver’s side floorboard. Hunter also had a large amount of cash in his pocket that was not seized. Hunter was aware at the time of the traffic stop that he had prior felony convictions and was prohibited from possessing a firearm. 

Hunter was previously convicted in 2013 of Having Weapons Under Disability for illegally possessing a firearm after his alleged involvement in a shootout at the A to Z market in Cincinnati, and in 2014 for Felonious Assault and Trafficking in Cocaine.

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; John Nokes, Special Agent in Charge, ATF Louisville Field Division; and Sheriff Les Hill, Boone County Sheriff’s Office, jointly announced the sentence.

The investigation was conducted by ATF and Boone County Sheriff’s Office. Assistant U.S. Attorney Joel King is prosecuting the case on behalf of the United States.

– END –

LONDON, Ky. – A Barboursville, Ky., man, Ray Dean, 58, was sentenced on Friday, to 5 months in prison and 5 months home detention, by U.S. District Judge Robert Wier for making false declarations in a bankruptcy proceeding. 

According to his plea agreement, on April 13, 2021, Dean filed an application, as “Ray Dean jr”, for funds under the Economic Injury Disaster Loan (EIDL) program, which the federal government administered to give economic relief to small businesses during the COVID-19 lockdowns.  The Small Business Administration (SBA) approved the application for $200,000. Before receiving the funds, Dean electronically signed a Loan Authorization and Agreement in which he agreed that he would use the proceeds of the loan solely as working capital for his business to alleviate economic injury. After receiving the $200,000 loan, he withdrew the money, deposited it into a bank account associated with a church of which he was the pastor. Subsequently, Dean used $92,000 of the funds to purchase mobile homes. 

On June 20, 2024, Dean filed a petition for bankruptcy and stated that his only liability was the $200,000 EIDL. As part of the bankruptcy filing, Dean was required to disclose any checking, savings, or other financial accounts. Dean only disclosed two accounts with a combined balance of $105 and fraudulently concealed his interest in the mobile homes and the bank account, which still had over $100,000 worth of EIDL proceeds. 

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, and Lesley Allison, Special Agent in Charge, United States Postal Inspection Service (USPIS), Pittsburgh Field Division, jointly announced the sentence.

The investigation was conducted by USPIS. Assistant U.S. Attorney Andy Boone prosecuted the sentencing on behalf of the United States.

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

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

– END –

COVINGTON, Ky. – A Covington man, Lamar Crawley, 42, was sentenced by Chief U.S. District Judge David Bunning to 60 months in prison for the distribution of five grams or more of methamphetamine. 

According to his plea agreement, law enforcement identified Crawley as a methamphetamine and cocaine supplier, and used a confidential informant to make three controlled purchases of methamphetamine from him in April and May 2025. In total, Crawley distributed 1.954 grams of cocaine and 20.14 grams of methamphetamine to the confidential informant.

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

Paul C. McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, and Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.

The investigation was conducted by the FBI. Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the United States.

— END — 

FRANKFORT, Ky.- A Harrodsburg, Ky., man, Jeremy Bryson, 47, was convicted by a federal jury in Frankfort on Wednesday for charges related to unlawfully distributing controlled substances. 

After approximately two hours of deliberations, following an eight-day trial, the jury convicted Bryson on one count of conspiracy to distribute controlled substances, six counts of distribution of controlled substances, one count of conspiracy to use a DEA registration issued to another person, and one count of money laundering.

According to evidence introduced at trial, during the conspiracy, Jeremy Bryson and Don Bryson, his father, operated a medical clinic in Paintsville, Ky., called Appalachian Family Medicine (AFM). Don Bryson had previously surrendered his medical license in 2012 after a Kentucky Board of Medical Licensure investigation into complaints about his controlled substance prescribing practices. Jeremy Bryson hired Don Bryson as a “medical consultant” at AFM. Evidence at trial established that under Jeremy and Don Bryson’s operation, AFM functioned as a cash-only clinic that consistently issued illegitimate controlled substance prescriptions to patients. Although AFM was not registered as a pain management facility, AFM issued controlled substance prescriptions to the majority of its patients.

Between January 2021 and early 2022, 14 separate medical providers worked at AFM, many of whom left after working at the clinic for only a matter of days.  The trial evidence established that Jeremy and Don Bryson pressured and used these temporary providers to issue controlled substance prescriptions while limiting the time they spent with patients and restricting their access to basic tools for safe prescribing like drug testing and prescription drug monitoring reports. In August and September of 2021, Jeremy Bryson directed the clinic’s staff to misuse an absent provider’s DEA registration number, which permits a qualifying practitioner to prescribe controlled substances, to continue issuing illegitimate controlled substance prescriptions in that absent provider’s name without her knowledge.

Additionally, evidence showed that in August 2021, Jeremy Bryson engaged in money laundering with proceeds derived from the controlled substance offenses through a check payment of $67,466.40 for the purchase of a Ram 2500 pickup truck. 

Don Bryson previously pleaded guilty to conspiracy to unlawfully distribute controlled substances in June 2024.  Don Bryson is scheduled to be sentenced on April 2.

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, and Jim Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the conviction.

The investigation was conducted by the DEA. Assistant U.S. Attorney Andy Smith is prosecuting the case on behalf of the United States.  

Jeremy Bryson will appear for sentencing on June 2. 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.

— END — 

LONDON, Ky. – A Corbin, Ky., man, Jerry Dunn, 60, was sentenced by U.S. District Judge Robert Wier to 60 years in prison, following his previous conviction of five counts of production of child pornography and one count of possession of child pornography.

According to testimony at trial, in September 2022, Dunn engaged in the production of child pornography. Specifically, a search of Dunn’s phone revealed photos of Dunn sexually abusing a minor victim. 

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police jointly announced the conviction.

The investigation was conducted by the FBI and KSP. Assistant U.S. Attorney Justin Blankenship is prosecuting the case on behalf of the United States.

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

– END –

LEXINGTON- A Mexican national man, illegally residing in Kentucky, was convicted on Tuesday by a federal jury in Lexington for making false statements regarding citizenship and aggravated identity theft-related charges.

After two hours of deliberation, following a two day trial, the jury convicted 39-year-old Joel Sanchez-Mendoza for one count of making a false statement of citizenship to engage in unlawful employment, one count of making a false statement of citizenship to engage to obtain a Kentucky Commercial Driver’s License (CDL), and two counts of aggravated identity theft.

According to testimony at trial, Sanchez-Mendoza assumed the identity of an American citizen by using their name, date of birth, and social security number. With this information, he was able to obtain employment and a Kentucky CDL.       

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); and Lesley Allison, Special Agent in Charge, United States Postal Inspection Service, Pittsburgh Field Division, jointly announced the conviction.

The investigation was conducted by HSI and USPO. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Ron Walker. 

Sanchez-Mendoza will appear for sentencing on June 25, 2026. He faces maximum of 48 months in prison, consecutive to any other sentence. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

— END — 

LONDON, Ky. – A Barboursville, Ky., woman, Raven Broughton-Jones, 31, was sentenced by U.S. District Judge Robert Wier to 25 years in prison for the production of child pornography. 

According to her plea agreement, on January 5, 2024, Broughton-Jones used a minor victim to engage in sexually explicit conduct - which Broughton-Jones herself participated in - for the purpose of producing a visual depiction of the conduct. 

Under federal law, Broughton-Jones must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for 10 years.

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Colin Jackson, Acting Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); and Chief Greg Lucas, Barboursville Police Department, jointly announced the conviction.

The investigation was conducted by HSI and Barboursville Police Department. Assistant U.S. Attorney Justin Blankenship is prosecuting the case on behalf of the United States.

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

– END –

LONDON, Ky. – A Lexington, Ky., man, Christopher Rhodes, 41, was sentenced on Tuesday by U.S. District Judge Claria Horn Boom to 42 months for interstate communication of a threat.  

According to his plea agreement, on May 22, 2025, Rhodes used his Google account to send an email to Jackie Steele, who is the Commonwealth Attorney for Laurel and Knox Counties. Rhodes intended the email as a threat and specifically indicated that Steele needed curtains in his residence and made references to his wife and children and that he should fear for the safety of his family. This message was sent as part of a series of emails that spanned multiple weeks that expressed Rhodes’ anger with Steele based on Steele’s service as Commonwealth Attorney.

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; and Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentencing. 

The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jason Parman.

— END — 

LEXINGTON, Ky. – Two former employees at the Federal Medical Center Lexington (“FMC Lexington”), a federal prison managed by the Bureau of Prisons,  were sentenced last week for separate incidents related to receiving illegal bribes and gratuities. 

A. Jade Howard, 36, of Port Charlotte, Fl., was sentenced to 12 months and 1 day by U.S. District Judge Karen Caldwell for bribery. According to her plea agreement, from 2021 through October 2024, Howard was employed as a correctional officer and then as a materials handler. Howard knew that inmates were not allowed to possess contraband, including cigarettes and other illicit substances, and that she had a duty to report any such possession.  Nonetheless, after being approached by an inmate at FMC Lexington about smuggling cigarettes into the facility, Howard agreed to bring the contraband into FMC Lexington in exchange for money.  Howard smuggled tobacco cigarettes for the inmate, and later smuggled in what she believed to be synthetic marijuana (subsequently determined through laboratory testing to be 5F-ADB, a Schedule I controlled substance).  In exchange, between December 2023 and December 2024, Howard received $18,602 through mobile banking applications. 

Ariel Zulewski, 29, of Georgetown, Ky., was sentenced to 12 months, by U.S. District Judge Karen Caldwell for abusive sexual contact and receipt of an illegal gratuity. According to her plea agreement, from December 1, 2023, through February 29, 2024, Zulewski was employed at FMC Lexington as a recreational specialist. During that time, Zulewski engaged in sexual contact with an inmate, knowing that any sexual contact between FMC staff and inmates was strictly forbidden. Furthermore, Zulewski brought the inmate contraband, including tobacco and vapes, and knew that the inmate possessed a cell phone, which was also prohibited.  On December 9, 2023 and January 17, 2024, Zulewski accepted CashApp payments totaling $500 for providing the inmate with the contraband and concealing his possession of contraband.

Under federal law, Howard and Zulewski must serve 85 percent of their prison sentence. Upon their release from prison, they will each be under the supervision of the U.S. Probation Office for one year. 

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; William J. Hannah, Special Agent in Charge, Department of Justice, Office of the Inspector General, Chicago Field Office; and Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentencing.

The Howard investigation was conducted by DOJ-OIG and FBI. The Zulewski investigation was conducted by DOJ-OIG. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Emily Greenfield.

— END — 

The Justice Department announced today that the owners and property managers of residential rental properties in Lexington, Kentucky have agreed to pay $850,000 to resolve a lawsuit alleging that two property managers sexually harassed female tenants in violation of the Fair Housing Act.

“Women should never feel unsafe in their own homes,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously protecting the rights of vulnerable tenants subjected to sexual harassment and holding housing providers and managers accountable when they violate the law.”

“The harm caused by decades of the defendants’ alleged sexual harassment, which often targeted female tenants perceived as vulnerable because of their need for housing, is difficult to quantify,” said First Assistant U.S. Attorney Paul C. McCaffrey for the Eastern District of Kentucky. “This settlement provides some measure of justice for those victims, and aims to eliminate future harassment perpetrated by these defendants against their tenants.”

“Adnan and Mohommed Shalash exploited tenants’ fundamental need for housing to commit serious abuses of power. Today’s settlement sends a clear message: those who abuse vulnerable tenants will be held accountable,” said Special Agent in Charge Shawn Rice of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), Northeast Region. “HUD OIG will not tolerate property managers or anyone in positions of authority using housing as leverage to engage in sexual harassment or abuse and will continue to work with the U.S. Attorney’s Office to hold housing providers accountable for these actions.”

The Department’s lawsuit, filed in the U.S. District Court for the Eastern District of Kentucky in November 2024, and amended in June 2025, alleges that for decades, property managers Adnan and Mohammed Shalash sexually harassed female tenants at various rental dwellings throughout Lexington, Kentucky. The suit alleges Adnan and Mohammed Shalash offered housing-related benefits in exchange for sexual contact, made unwelcome sexual comments and advances to female tenants, entered the homes of female tenants without their permission, subjected female tenants to unwelcome touching and groping and took adverse housing-related actions against female tenants who refused their sexual advances.

The Department’s lawsuit also names as defendants 17 owners of rental properties managed by Adnan and Mohammed Shalash, including Fox Den Properties LLC and Griffith Market Inc. The lawsuit alleges that these defendants are vicariously liable for the sexual harassment committed by their agents, Adnan and Mohommed Shalash.

The Department of Housing and Urban Development’s Office of Inspector General participated in the investigation that uncovered the evidence leading to the lawsuit.

Pursuant to the settlement agreement, the defendants must pay $845,000 to tenants who were harmed by Adnan and Mohammed Shalash’s harassment and a $5,000 civil penalty to the United States. The settlement agreement permanently bars Adnan and Mohammed Shalash from contacting tenants harmed by their harassment, permanently bars them from managing residential rental properties, and mandates training and the adoption of policies and procedures to prevent future discrimination at residential rental properties owned or managed by either defendant.

If you are a victim of sexual harassment by another landlord or property manager or have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743 or submit a report online. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. This settlement is part of the Justice Department’s Sexual Harassment in Housing Initiative. The initiative, which the Department launched in October 2017, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 52 lawsuits alleging sexual harassment in housing and recovered close to $18 million for victims of such harassment.

The Justice Department announced today that the owners and property managers of residential rental properties in Lexington, Kentucky have agreed to pay $850,000 to resolve a lawsuit alleging that two property managers sexually harassed female tenants in violation of the Fair Housing Act.

“Women should never feel unsafe in their own homes,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously protecting the rights of vulnerable tenants subjected to sexual harassment and holding housing providers and managers accountable when they violate the law.”

“The harm caused by decades of the defendants’ alleged sexual harassment, which often targeted female tenants perceived as vulnerable because of their need for housing, is difficult to quantify,” said First Assistant U.S. Attorney Paul C. McCaffrey for the Eastern District of Kentucky. “This settlement provides some measure of justice for those victims, and aims to eliminate future harassment perpetrated by these defendants against their tenants.”

“Adnan and Mohommed Shalash exploited tenants’ fundamental need for housing to commit serious abuses of power. Today’s settlement sends a clear message: those who abuse vulnerable tenants will be held accountable,” said Special Agent in Charge Shawn Rice of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), Northeast Region. “HUD OIG will not tolerate property managers or anyone in positions of authority using housing as leverage to engage in sexual harassment or abuse and will continue to work with the U.S. Attorney’s Office to hold housing providers accountable for these actions.”

The Department’s lawsuit, filed in the U.S. District Court for the Eastern District of Kentucky in November 2024, and amended in June 2025, alleges that for decades, property managers Adnan and Mohammed Shalash sexually harassed female tenants at various rental dwellings throughout Lexington, Kentucky. The suit alleges Adnan and Mohammed Shalash offered housing-related benefits in exchange for sexual contact, made unwelcome sexual comments and advances to female tenants, entered the homes of female tenants without their permission, subjected female tenants to unwelcome touching and groping and took adverse housing-related actions against female tenants who refused their sexual advances.

The Department’s lawsuit also names as defendants 17 owners of rental properties managed by Adnan and Mohammed Shalash, including Fox Den Properties LLC and Griffith Market Inc. The lawsuit alleges that these defendants are vicariously liable for the sexual harassment committed by their agents, Adnan and Mohommed Shalash.

The Department of Housing and Urban Development’s Office of Inspector General participated in the investigation that uncovered the evidence leading to the lawsuit.

Pursuant to the settlement agreement, the defendants must pay $845,000 to tenants who were harmed by Adnan and Mohammed Shalash’s harassment and a $5,000 civil penalty to the United States. The settlement agreement permanently bars Adnan and Mohammed Shalash from contacting tenants harmed by their harassment, permanently bars them from managing residential rental properties, and mandates training and the adoption of policies and procedures to prevent future discrimination at residential rental properties owned or managed by either defendant.

If you are a victim of sexual harassment by another landlord or property manager or have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743 or submit a report online. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. This settlement is part of the Justice Department’s Sexual Harassment in Housing Initiative. The initiative, which the Department launched in October 2017, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 52 lawsuits alleging sexual harassment in housing and recovered close to $18 million for victims of such harassment.

FRANKFORT, Ky. – A Georgetown, Ky., man, Jamon Ritter, 35, was sentenced on Wednesday by U.S. District Judge Gregory Van Tatenhove to 132 months for possession with intent to distribute 10 grams or more of fluorofentanyl, possession with intent to distribute 40 grams or more of fentanyl, and possession of a firearm in furtherance of drug trafficking. 

According to his plea agreement, on July 2, 2024, Ritter – who was wanted on active warrants – led law enforcement on a reckless, high-speed vehicular chase in Scott County, eventually bailing out of his vehicle and fleeing on foot before being apprehended. Following the chase, law enforcement searched the vehicle Ritter was driving and found a Glock pistol, ammunition, and a variety of drugs, which KSP laboratory testing determined to be 122 grams of fentanyl, 1.707 grams of cocaine, and 29.786 grams of fluorofentanyl.  Ritter admitted possession of the narcotics during the search and also admitted to possessing the firearm in furtherance of his drug trafficking crime.

Under federal law, Ritter must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 5 years. 

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; John Nokes, Special Agent in Charge, ATF, Louisville Field Division; and Sheriff Jeremy Nettles, Scott County Sheriff’s Office, announced the sentencing.

The investigation was conducted by ATF and Scott County Sheriff’s Office. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Cynthia Rieker.

— END — 

LEXINGTON, Ky. – A Lexington, Ky., man, Keith Lamont Stallworth, 41, was sentenced on Thursday by U.S. District Judge Karen Caldwell to 65 years in prison after previously being convicted of multiple firearms charges and pleading guilty to drug trafficking charges. 

In August 2025, Stallworth was convicted of carrying and using a firearm during a drug trafficking crime; possessing a machine gun in furtherance of a drug trafficking crime; possessing a firearm as a convicted felon; possessing a machine gun; and failing to register the machine gun. Stallworth also previously pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl; possession with intent to distribute 50 grams or more of methamphetamine; and using a residence for the purpose of manufacturing and distributing controlled substances.     

According to testimony at Stallworth’s trial for the firearm charges, in August 2023, Stallworth was arrested in possession of a .57 caliber Palmetto Arms pistol that contained high velocity rifle rounds and an extended magazine capable of holding an additional 29 rounds. A search warrant at Stallworth’s downtown Lexington apartment yielded a large quantity of methamphetamine, fentanyl, cocaine, hundreds of rounds of ammunition as well as a 9mm handgun and an illegally modified .40 caliber pistol. The pistol was installed with a machinegun conversion device, sometimes called a “switch” or “Glock switch,” that converted the firearm to a fully automatic weapon defined under federal law as a machinegun.

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; John Nokes, Special Agent in Charge, ATF, Louisville Field; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; Chief Lawrence Weathers, Lexington Police Department; Chief Michael Fleming, Nicholasville Police Department; and Sheriff Kevin Grimes, Jessamine County Sheriff’s Office, announced the sentencing.

The investigation was conducted by DEA, ATF, KSP, Lexington Police Department, Nicholasville Police Department, and Jessamine County Sheriff’s Office. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Cynthia Rieker and retired Assistant U.S. Attorney Roger West.

— END — 

LEXINGTON, Ky. – A Lexington, Ky., man, Michael Smitha, 52, was sentenced on Wednesday by U.S. District Judge Karen Caldwell to 140 months for conspiracy to distribute controlled substances and distribution of five grams or more of methamphetamine. 

According to his plea agreement, in December 2023, law enforcement received information that Smitha was distributing quantities of methamphetamine and fentanyl in Central Kentucky. From December 29, 2023, through May 9, 2024, law enforcement used a confidential source to make controlled purchases of fentanyl and methamphetamine from Smitha. 

Smitha has a prior federal conviction for conspiracy to distribute oxycodone in May 2014.

Under federal law, Smitha must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 8 years. 

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; John Nokes, Special Agent in Charge, ATF, Louisville Field Division; and Commander Kalan Perdue, Gateway High Intensity Drug Trafficking Area (HIDTA) Task Force, jointly announced the sentence.

The investigation was conducted by ATF and Gateway HIDTA Task Force. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Cynthia Rieker.

— END — 

LEXINGTON, Ky.- A Cincinnati, Ohio, man was convicted on Thursday by a federal jury in Lexington of possession with intent to distribute a fentanyl analogue and fentanyl.

After 2 hours of deliberation following a two-day trial, the jury convicted 32-year-old Daquan Gatling of possession with intent to distribute 100 grams or more of a fentanyl analogue, and 40 grams or more of fentanyl.      

According to evidence presented at trial, on March 17, 2024, Gatling crashed into a utility pole in the Georgetown corridor area of Lexington and fled the scene of the accident. Officers searched the vehicle and found drugs, a scale, and plastic baggies in a backpack in the backseat. The evidence in the case connected him to the collision and the drugs found inside the vehicle, which were tested and found to contain more than 100 grams of a mixture of a fentanyl analogue and more than 40 grams of fentanyl. At the time of the offense, Gatling was on federal supervised release following a conviction in the Eastern District of Kentucky for possessing a firearm as a convicted felon.

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Colin Jackson, Acting Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); and Chief Lawrence Weathers, Lexington Police Department, jointly announced the conviction.

The investigation was conducted by HSI and Lexington Police Department. Assistant U.S. Attorneys Kyle Winslow and Joel King are prosecuting the case on behalf of the United States.

Gatling is scheduled to be sentenced on June 16. He faces a minimum of 10 years in prison.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

— END — 

FRANKFORT, Ky. – A Lexington man, John A. Hopkins, 48, was sentenced on Tuesday by U.S. District Judge Gregory Van Tatenhove to 24 months, for money laundering and wire fraud arising out of fraudulently obtained Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans.

According to his plea agreement, from April 14, 2020, through October 19, 2021, Hopkins devised a scheme to fraudulently obtain funding from federal pandemic relief programs. He did this by making false statements about various companies, including Blurock LLC, John A Hopkins, Jahopm, and Hopkins Drywall, named in loan applications submitted to the United States Small Business Administration and other lenders. During this time, Hopkins submitted 10 fraudulent EIDL applications, one fraudulent EIDL modification application, and one fraudulent PPP application.

For example, on July 3, 2020, Hopkins submitted an EIDL application stating he was an independent contractor named John A. Hopkins. This application falsely and grossly inflated his revenues serving as a pastor for the 12 months prior to the start of the pandemic. As a result of this fraudulent application, the SBA approved the Hopkins’s EIDL application and issued a loan in the amount of $44,000 and a $1,000 EID advance. As to another EIDL loan, Hopkins fraudulently obtained an EIDL increase in the amount of $352,000, after sending an email containing falsehoods to two members of Congress seeking Congressional assistance in obtaining the loan increase. Through further misrepresentations, Hopkins also obtained a PPP loan in the amount of $120,000 for a business entity called Blurock LLC.

In total, Hopkins attempted to fraudulently obtain $1,729,257 in COVID relief funds, of which $517,000 was approved. After receiving the fraudulently obtained SBA funds, Hopkins engaged in numerous transactions over $10,000, using the proceeds of his deceptive conduct to pay off non-business debt, pay for his personal rent, gift money to friends, invest in cryptocurrency, and engage in gambling activities, among other things.

Under federal law, Hopkins must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 3 years. 

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division; and Karen Wingerd, Special Agent in Charge, IRS-Criminal Investigations, Detroit Field Division, jointly announced the sentence.

The investigation was conducted by the Treasury Inspector General for Tax Administration and the IRS-CI. Assistant U.S. Attorney Kate Dieruf is prosecuting the case on behalf of the United States.

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

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

– END –

LONDON, Ky. – A Sunnyside, New York, man, Wilson Molina, 33, was sentenced on Monday by U.S. District Judge Rober Wier to 120 months for conspiracy to distribute 400 grams of fentanyl and 500 grams or more of methamphetamine. 

According to his plea agreement, beginning in February 2024 and continuing through December 2024, Molina conspired with others to distribute controlled substances, including counterfeit pills containing fentanyl and methamphetamine. The fentanyl pills were manufactured to appear as if they were legitimate oxycodone 30mg pills; similarly, the methamphetamine pills mimicked the appearance of legitimate amphetamine and dextroamphetamine pills (commonly known by the brand name, “Adderall”. On multiple occasions, Molina supplied one of his co-conspirators with controlled substances that they then shipped into the Eastern District of Kentucky. Molina and his co-conspirators coordinated distribution of the fentanyl and methamphetamine from Queens, New York, maintaining massive quantities of the counterfeit pills in a storage unit close to Molina’s residence. On February 10, 2025, DEA executed a search warrant at a storage unit used to hold the drugs Molina was trafficking, and agents seized more than 3.4 million counterfeit pills.

Under federal law, Molina must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 5 years. 

 Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, and Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; jointly announced the sentencing. 

The investigation was conducted by the DEA. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Gregory Rosenberg.

— END — 

ASHLAND, Ky. – A Martin, Ky., man, Justin Bryant, 35, was sentenced on Monday by Chief U.S. District Judge David Bunning to 192 months for possession with intent to distribute controlled substances, including methamphetamine and fentanyl, and possession of a firearm in furtherance of a drug trafficking crime. 

According to his plea agreement, on December 11, 2023, law enforcement encountered Bryant during a traffic stop in which he possessed 22.76 grams of methamphetamine, 3.57 grams of fentanyl and fluorofentanyl, and a loaded handgun, which he admitted he possessed to protect himself from the dangers of drug dealing. Based on multiple prior felony convictions, Bryant was not permitted to possess the firearm. Bryant was arrested but was subsequently released, and continued to engage in drug trafficking. On March 1, 2025, law enforcement encountered Bryant again, and he had in his possession 81.256 grams of methamphetamine.

Under federal law, Bryant must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 3 years. 

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Division; Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Sheriff John Hunt, Floyd County Sheriff’s Office, announced the sentencing.

The investigation was conducted by the FBI, KSP, and the Floyd County Sheriff’s Office. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Drew Trimble.

— END — 

LONDON, Ky. – A Meggett, South Carolina, man, John Quintrell, 52, was sentenced by U.S. District Judge Robert Wier to 48 months in prison for willful failure to pay over more than $22 million in taxes owed to the IRS. 

According to his plea agreement, from at least September 2018 through April 2025, Quintrell was the sole owner of Civil LLC, a mining business, located in Harlan County. Civil LLC was required to withhold taxes from its employees’ paychecks, including federal income taxes, as well as Medicare and Social Security taxes (i.e., FICA taxes). For the period of October 1, 2019, through March 31, 2025, Quintrell caused Civil LLC to withhold federal income taxes and FICA taxes from employees' paychecks, as it should have done; however, Quintrell then willfully caused the business to fail to account for, and pay over, to the IRS approximately $22,146,389.56 in federal income taxes, FICA taxes, as well as the employer's share of such payroll taxes.

Quintrell was also ordered to pay $22,146,389.56 in restitution. 

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, and Karen Wingerd, Special Agent in Charge, IRS-Criminal Investigations, Detroit Field Office, jointly announced the sentence.

The investigation was conducted by the IRS. Assistant U.S. Attorney Andrea Mattingly Williams is prosecuting the case on behalf of the United States.

– END –

ASHLAND, Ky. – A Salyersville, Ky., man, Jordan Cobb, 32, was sentenced by Chief U.S. District Judge David Bunning to 132 months in prison, for attempted online enticement of a minor.

According to his plea agreement, in April and May 2023, Cobb was employed as a middle school teacher, and he engaged in a Snapchat conversation with a former student of his, who was a minor. In the course of the conversation, Cobb sent the minor a series of sexually explicit messages, offers to provide the minor with marijuana, and a plan to meet for sexual intercourse.  

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police jointly announced the conviction.

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

– END –

ASHLAND, Ky. – A Hyden, Ky., man, Finley Wooton, 33, was sentenced by Chief U.S. District Judge David Bunning to 180 months in prison, following his conviction for attempted production of child pornography.

According to his plea agreement, on April 10, 2023, Wooton engaged in a Facebook Messenger conversation with a minor victim. During the conversation, Wooton sent sexually explicit images and asked for sexually explicit images in return. By doing so, Wooton used Facebook Messenger to attempt to persuade the minor victim to produce child pornography.  

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police jointly announced the conviction.

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

– END –

LEXINGTON, KY- A Florence, Ky., man, Benjamin Aaron Keebler, 55, was indicted on January 15 for cyberstalking and sending threatening communications to a United States Congressman and a United States Senator. 

The indictment alleges that from February 2023 to May 2025, Keebler used a cell phone to engage in a course of conduct with the intent of harassing and intimidating a United States Congressman. Specifically, the indictment alleges that on separate occasions Keebler called a phone system affiliated with the Congressman and threatened to injure the Congressman, including a threat to shoot him in the head at a town hall, and a threat to lynch the Congressman. In addition to those threats, the indictment alleges that Keebler used a cell phone to call a phone system affiliated with a United States Senator and threaten injury against that person as well, stating, among other things, “somebody needs to come to [the Senator’s] house and do a . . . hammer visit.” 

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, and Chief Michael G. Sullivan, U.S. Capitol Police, announced the indictment.

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

Keebler’s initial appearance in court occurred on January 29, 2026. He faces a maximum of five years in prison and a maximum fine of $250,000.  However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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

— END — 

LEXINGTON, Ky. – A Mexican National, Israel Ortiz Velasco, 33, was sentenced by U.S. District Judge Danny C. Reeves to 300 months for a money laundering conspiracy and a conspiracy to import controlled substances into the United States, including 400 grams or more of fentanyl and five kilograms or more of cocaine.

According to his plea agreement, from approximately June to December 2017, Ortiz agreed with others to distribute fentanyl and cocaine, knowing and intending that those drugs would be unlawfully imported from Mexico into the United States for distribution. During the conspiracies to distribute drugs and to launder money, Ortiz was in Mexico, and his Mexico-based coconspirators supplied the fentanyl and cocaine imported into the Eastern District of Kentucky. Ortiz admitted his role in the distribution of kilograms of powder fentanyl and fentanyl pressed into counterfeit pills, and approximately 25 kilograms of cocaine. Once the drugs were distributed in the Eastern District of Kentucky, the bulk cash proceeds of distribution were collected and transferred to Mexico by wire transfers, structured deposits at financial institutions, and other money laundering methods.

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

Paul C. McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; Lawrence Weathers, Chief of Police, Lexington Police Department, and Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, announced the sentence.

The investigation was conducted by the DEA and KSP. Assistant U.S. Attorney Todd Bradbury prosecuted the case on behalf of the United States.

This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF comprises agents and officers from FBI, ATF, DEA, IRS, and HSI with the prosecution being led by the United States Attorney’s Office for the Eastern District of Kentucky.

— END — 

LEXINGTON, Ky. – A Clark County, Ky., man, Tommy Martin, 70, was sentenced by U.S. District Judge Danny C. Reeves to 480 months’ imprisonment for multiple counts of distributing and possessing with the intent to distribute methamphetamine; possessing, carrying, and using firearms in furtherance of and during and in relation to his drug trafficking crimes; and possession of multiple firearms by a convicted felon.

On September 24, 2025, Martin was found guilty by a federal jury in Lexington of 11 felony violations: six counts of distributing methamphetamine, one count of possession with the intent to distribute methamphetamine, one count of carrying or using a firearm during and in relation to a drug trafficking crime, one count of possession of a firearm in furtherance of a drug trafficking crime, and two counts of possession of a firearm by a convicted felon.

According to evidence presented at trial, between July 1 and October 10, 2024, Martin sold various quantities of methamphetamine to a confidential informant in Clark and Montgomery Counties. In addition to the methamphetamine, Martin, a convicted felon, sold a firearm to the informant. The investigation culminated in a search of Martin’s residence in Montgomery County in December of 2024, revealing additional quantities of methamphetamine intended for sale as well as firearms in Martin’s possession.

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

Paul C. McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky, John Nokes, Special Agent in Charge, ATF, Louisville Field Division, and Chief Travis Thompson, Winchester Police Department, jointly announced the sentence.

The investigation was conducted by the ATF and the Winchester Police Department. Assistant U.S. Attorney Paco Villalobos prosecuted the case on behalf of the United States.

— END — 

ASHLAND, Ky. – A Boyd County, Ky., man, Terry Gannon, 52, was sentenced by Chief U.S. District Judge David Bunning to 120 months’ imprisonment for possession with intent to distribute 40 grams or more of fentanyl, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.

According to his plea agreement, in February 2025, law enforcement received information that Gannon was distributing large amounts of drugs from his residence in Boyd County. On February 25 and 27, 2025, law enforcement utilized a confidential informant to purchase a total of four grams of fentanyl from Gannon. A subsequent law enforcement search of Gannon’s vehicle and residence uncovered 89.934 grams of fentanyl, 1.27 grams of methamphetamine, eight firearms, ammunition, scales, baggies, a suspected drug ledger, and $11,049 in cash.

Gannon admitted to possessing the drugs with intent to distribute them. He also admitted that he possessed a firearm in furtherance of his drug trafficking activities.

Gannon was previously convicted of trafficking drugs in the third degree and trafficking drugs in the second degree in the Court of Common Pleas, Lawrence County, Ohio, and was therefore prohibited from possessing any firearm.

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

Paul C. McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; John Nokes, Special Agent in Charge, ATF, Louisville Field Division; and Director Scott Hardcorn, Northern Kentucky Drug Strike Force, jointly announced the sentence.

The investigation was conducted by the ATF and the Northern Kentucky Drug Strike Force. Assistant U.S. Attorney Cynthia Rieker prosecuted the case on behalf of the United States.

— END — 

LONDON, Ky. – A Harlan, Ky., man, Brandon Farley, 42, was sentenced by U.S. District Judge Robert Wier to 60 years in prison, following his previous conviction of two counts of production of child pornography.

According to testimony at trial, Farley sexually abused a minor that was in his care and took photos of that abuse. 

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police jointly announced the conviction.

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

– END –

LEXINGTON, Ky. — A Cave City, Ky., farmer, Larry Walden­­­, 69, was sentenced to 52 months’ incarceration by U.S. District Judge Karen Caldwell, after pleading guilty to conspiring to commit money laundering, by committing crop insurance fraud. 

According to his plea agreement, Walden owned and rented farmland in Barren County, on which he grew burley tobacco, among other crops. He maintained insurance coverage over his tobacco crop from at least 2014 to 2023. For Crop Years 2014 through 2019, Walden used services offered at Farmers Tobacco Warehouse in Boyle County, to obtain false documentation to support false claims of loss on his crop insurance.

As part of the conspiracy, Walden wrote checks to Farmers Tobacco Warehouse, to make it appear as though the tobacco he raised and sold was actually purchased from Farmers Tobacco Warehouse. Conspiring with Thomas Kirkpatrick, manager at Farmers Tobacco Warehouse, Walden also received fake receipts in further attempts to conceal the scheme. Walden presented copies of these cancelled checks along with fake purchase receipts to his insurance adjuster. His insurance adjuster used this paperwork to justify deflating Walden’s production reports, thereby increasing his indemnity payment. With his proceeds, Walden paid off lines of credit and purchased new assets. 

           Walden also admitted to running the same fraud scheme through Greensburg Tobacco Market and Fair Deal Tobacco, located in Greensburg, Ky., and Littleton, North Carolina, respectively. He further sold tobacco under the names of neighbors and relatives without reporting that production on his insurance claims. In total, Walden’s fraud caused $9,960,817.19 in loss to crop insurers. Upon his release, Walden will be under the supervision of the U.S. Probation Office for 3 years. In addition to his prison sentence, Walden was ordered to pay $9,960,817.19 in restitution.

Other farmers have also been sentenced for their role in the same conspiracy to commit crop insurance fraud and have been sentenced as followed. 

• Thomas Kirkpatrick, 67, of Stanford, Ky., the former manager of Farmers Tobacco Warehouse, was sentenced to 48 months in prison, two years of supervised release, and was ordered to pay $16,156,345 in restitution.
• David Hunt, 63, of Campbellsville, Ky., a farmer who obtained fake documentation from Kirkpatrick in order to support fraudulent claims to indemnity payments under an organic tobacco insurance coverage policy, was sentenced to 42 months in prison, three years of supervised release, and $5,427,365 in restitution.
• Terry Wilson, 67, an Edmonton, Ky, farmer who used Farmer Tobacco Warehouse to facilitate his fraud conspiracy, was sentenced to time served, followed by three years of supervised release, and was ordered to pay $667,679.00 in restitution.
• Christopher Wilson, 50, Terry Wilson’s son, was sentenced to 18 months in prison, three years of supervised release, and was ordered to pay $669,447 in restitution.
• David Wisdom, 69, a Glasglow, Ky., farmer who used Farmer Tobacco Warehouse to facilitate his fraud conspiracy, was sentenced to 48 months, followed by three years of supervised release, and was ordered to pay $1,941,007 in restitution.   
• Robert D. Birge, Jr., 51, a Summer Shade, Ky., farmer, was sentenced to 6 months in prison, three years of supervised release, and was ordered to pay $1,114,519 in restitution.

Additionally, earlier this month, Harlan Ray Highfield, 63, of Brooksville, Ky., was sentenced to 42 months’ incarceration, stemming from his crop insurance fraud scheme that involved obtaining crop insurance policies in nominee names, among other offenses.  He was sentenced to three years’ supervised release and was ordered to pay $1,060,460 in restitution.

Under federal law, these defendants must serve 85 percent of their prison sentences.

“These defendants fleeced programs intended to protect agricultural producers,” said Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky. “While the vast majority of farmers conduct themselves with great integrity, the sentences imposed in these cases should serve as a warning to any producers or warehouse operators considering similar crop insurance fraud.”

“There is no place in our society for opportunists who choose to defraud public programs at the expense of honest, hard-working American farmers,” stated Special Agent in Charge Olivia Olson of the FBI Louisville Field Office. “This case is a prime example of law enforcement partners collaborating over a number of years to ensure the conspirators are identified and penalized appropriately, while simultaneously working to protect one of our nation’s most vital industries.”

“The U.S. Department of Agriculture (USDA) Office of Inspector General (OIG) appreciates the collaboration with our law enforcement partners and the prosecutors in this case. USDA OIG is committed to investigating individuals who engage in crop insurance fraud in order to preserve the integrity of USDA programs,” said USDA OIG Special Agent-in-Charge Miles Davis. “We thank the United States Department of Agriculture Risk Management Agency Special Investigations Staff, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Kentucky Department of Insurance and Department of Justice, Eastern District of Kentucky for their partnership with us on this impactful investigation.”

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Miles Davis, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Olivia Olson, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office; and Karen Wingerd , Special Agent in Charge, Internal Revenue Service-Criminal Investigation, jointly announced the sentences.

The investigation was 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. The United States was represented by Assistant U.S. Attorneys Kate Dieruf and Andrea Mattingly Williams.

-END-

LEXINGTON Ky. – A Lexington-based shared workspace management and consulting firm, Workspace Strategies, and one of its owners, Karen Condi, agreed to pay the United States $860,779.50 to resolve allegations that it improperly obtained, and received forgiveness for, Paycheck Protection Program (PPP) loans from the U.S. Small Business Administration (SBA) for which it was not eligible.

Congress created the PPP in March 2020 to provide emergency financial assistance to small American businesses struggling to pay employees and other expenses during the COVID-19 pandemic. Under the PPP, eligible small businesses could receive forgivable loans guaranteed by the SBA through two rounds of funding, referred to as First Draw and Second Draw PPP loans. When applying for PPP loans, borrowers were required to certify that they were eligible for the requested loans and that the information they provided was true and accurate. Regulations provided various requirements for use of PPP funds, including limitations on the manner in which the loans could be utilized. Borrowers who applied for Second Draw loans also were required to certify that they experienced at least a 25% reduction in quarterly gross receipts as a result of the pandemic.

Workspace Strategies applied for, received, and obtained forgiveness for First and Second Draw PPP loans collectively valued at nearly $600,000. The settlement resolves allegations that Workspace Strategies and Condi falsely certified that loan proceeds would be and were utilized for payroll expenses and other permissible purposes. In fact, Workspace Strategies and Condi allegedly used a portion of the proceeds for impermissible purposes, including for Condi’s personal benefit. Further, the settlement resolves allegations that Workspace Strategies and Condi falsely certified that Workspace Strategies’ gross receipts fell at least 25% as a result of the pandemic in its Second Draw PPP loan application. Based on these false certifications, Workspace Strategies received loans for which it was ineligible and received forgiveness of loan funds to which it was not entitled.

“Our office is committed to holding accountable businesses and individuals who improperly obtained or used COVID-19 relief funds,” said First Assistant United States Attorney Paul McCaffrey. “The loans were intended to help eligible small businesses survive the pandemic. When business owners misspend those funds, or businesses falsely certify their eligibility for pandemic relief, it is critically important that we recover taxpayer dollars.”

“This settlement demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to forcefully respond to PPP misconduct,” said SBA's General Counsel Wendell Davis. "Misallocation and misuse of federal funds undermines SBA and the entire federal government's pandemic relief efforts, and SBA continues to devote a major effort alongside our partners at DOJ to investigate abuse and recover funds on behalf of the American people.”

The Government’s work in this investigation illustrates its commitment to combatting COVID-19 fraud. The United States encourages anyone with information about potential fraud involving COVID-19 to report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. PPP recipients also may voluntarily disclose self-discovered evidence of fraud involving the PPP to U.S. Attorney’s Offices.

The settlement resolves a lawsuit brought by a private citizen under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery.  As part of this resolution, the individual who filed the qui tam complaint will receive a portion of the settlement proceeds. This case is captioned United States ex rel. Emily Parker v. Condi Management Group, LLC, d/b/a Workspace Strategies and Karen Condi, Case No. 5:23-CV-00030-KKC.

This matter was handled by Assistant U.S. Attorney Benjamin Long, with assistance from the SBA’s Office of General Counsel. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

– END –

LONDON, Ky. – A Strunk, Ky., man, and former Assistant Principal of McCreary County High School, Aaron Anderson, 52, was sentenced on Thursday by U.S. District Judge Robert Wier to 120 months in prison, for attempting to persuade a minor to engage in unlawful sexual activity online.

According to court documents, in August 2023, Anderson was the McCreary County High School Assistant Principal, an began communicating with the minor victim via Microsoft Teams on the victim’s school-issued Chromebook. Anderson and the victim spoke daily on Teams, and Anderson engaged in a pattern of grooming via the Teams messages that included terms of endearment, offers of gifts, and frequent praise to the minor victim. The grooming messages were part of the enticement as they were intended to flatter her, build intimacy, and create a sense of obligation. Furthermore, in his plea agreement, Anderson admitted to enticing the victim to engage in sexual contact in his office. 

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

Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; and Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.

The investigation was conducted by the FBI and KSP. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Justin Blankenship.

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

– END –

ASHLAND, Ky. – A Raccoon, Ky., man, Lonnie James Maynard, 54, was sentenced by Chief U.S. District Judge David Bunning to 210 months in prison, for the production of child pornography.  

According to his plea agreement, on January 17, 2025, Maynard engaged in the production of child pornography. Specifically, a search of Maynard’s phone revealed a Snapchat conversation in which he directed a minor child to send Maynard sexually explicit photos. At Maynard’s direction, the minor child sent Maynard a sexually explicit video of the minor child. 

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

Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; and Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.

The investigation was conducted by the FBI and KSP. Assistant U.S. Attorney Justin Blankenship is prosecuting the case on behalf of the United States.

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

– END –

LEXINGTON, Ky. – Acting United States Attorney Paul McCaffrey honored several federal, state, and local law enforcement professionals on Wednesday, for their outstanding contributions to investigations and prosecutions in the Eastern District of Kentucky.

The Office’s 2025 Law Enforcement Excellence Awards were presented during a ceremony at the U.S. Attorney’s Office in Lexington and recognized exceptional work in a number of cases involving Office priority areas, including violent crime, drug trafficking, overdose deaths, money laundering, government program fraud, and child exploitation.

“The results we obtain in court to keep Eastern District of Kentucky communities safe and to preserve taxpayer dollars are only possible because of the exceptional work of our law enforcement partners,” said Acting United States Attorney Paul McCaffrey.  “The men and women recognized today stand out for their tremendous courage and character in the pursuit of justice.”

The following law enforcement officers and organizations were honored:

• Ted Jones, Special Agent, FBI
• Matt Resch, Special Agent FBI
• Ben Hughes, Staff Operations Specialist, FBI
• Josh Smith, Postal Inspector, U.S. Postal Inspection Service
• Kimberly Kidd, Special Agent, FBI
• Michael Frazee, Deputy, Franklin County Sheriff’s Office; Task Force Officer, DEA
• Todd Tremaine, Special Agent ATF
• John Barnett, Special Agent, ATF
• Jason McCowan, Detective, Manchester Police Department; Task Force Officer, ATF
• Brian Lewis, Deputy, Laurel County Sheriff’s Office; Task Force Officer, ATF
• Stanley Williams, Task Force Officer, FBI; University of Kentucky Police Department
• Jeff Monnin, Special Agent, U.S. Department of Agriculture- Office of Inspector General
• Diane Ansley, Special Investigator, U.S. Department of Agriculture RMA
• Tressa Whittington, Forensic Accountant, FBI
• Jared Volk, Supervisory Special Agent, IRS
• Chris Boyd, Detective, Newport Police Department; Task Force Officer, DEA 

– END –

LEXINGTON, Ky. – Throughout the 43-day lapse in government funding, the U.S. Attorney’s Office for the Eastern District of Kentucky continued to advance the Department of Justice’s mission in priority enforcement areas, including drug trafficking, violent crime, and illegal possession of firearms.  Below are highlights of sentencings that the U.S. Attorney’s Office secured in connection with several drug and violent crime-related cases prosecuted during the recent lapse in federal appropriations.

Monday, October 6

A Lexington, Ky., man, Bryan Anicasio-Miranda, 24, was sentenced to 70 months in prison for possession of a firearm by a convicted felon. According to his plea agreement, on March 30, 2021 Anicasio-Miranda was convicted of first degree fleeing or evading police in Fayette Circuit Court.  On at least two occasions, December 18, 2022 and December 16, 2024, Miranda was found in possession of firearms that he was prohibited from possessing because of his previous felony conviction.

A Reynoldsburg, Ohio, man, Samuel Young, 44, was sentenced to 37 months for possession of a firearm by a convicted felon. According to his plea agreement, on March 13, 2024, law enforcement conducted a stop on a vehicle driven by Young and recovered a firearm in his possession. Young admitted to being previously convicted of a felony and knew he was prohibited from possessing a firearm.

A Lexington, Ky., man, Khmari Smith, 22, was sentenced to 324 months for conspiracy and possession with intent to distribute methamphetamine and fentanyl, and possession of firearms in furtherance of drug trafficking offenses. In May 2023, law enforcement began investigating an individual distributing methamphetamine and fentanyl in Lexington and identified the vehicle being used to transport the drugs into the area.  On July 10, 2023, law enforcement located the vehicle traveling from Detroit to Kentucky and observed the vehicle following another car and mirroring its movements, which led them to believe the vehicles were connected.  Law enforcement conducted a traffic stop on both vehicles.  Khmari Smith, and his brother and co-defendant, Khari Qunarll Smith, 24, were found in one vehicle, with no evidence of drugs.  In the other vehicle, Smith’s co-defendant, Brianna Hanspard, 30, of Detroit, was found with 4.6 kilograms of methamphetamine and 199.7 grams of fentanyl.  Hanspard admitted to entering into an agreement with Khmari Smith and others to transport drugs from Detroit to Lexington for payment.

Further investigation proved that Khari and Khmari Smith continued their drug distribution, from sources in Detroit.  In August 2023, law enforcement searched their leased residences in Lexington.  At the first residence they found 354.4 grams of fentanyl and 216.3 grams of methamphetamine; at the second, the found additional methamphetamine and fentanyl, as well as a drug processing room.  Law enforcement also found 18 firearms at the first residence and 12 firearms at the second residence. Khmari Smith admitted that he received those firearms as payment for the drugs he distributed. Khari Smith was previously sentenced to 200 months and Hanspard was sentenced to 84 months.

Wednesday, October 8

A Corbin, Ky., man, Jonathan Blevins, 40, was sentenced to 110 months for conspiracy to distribute 500 grams or more of methamphetamine. According to his plea agreement, beginning in April 2024 through June 2024, Blevins conspired with his co-defendants, Randy Lester, Jeffrey Gray, and Kathy Baird, to distribute methamphetamine in Laurel and Knox Counties. Blevins would obtain 1.5 pounds quantities of methamphetamine from his source of supply to distribute to several mid-and lower-level drug dealers and users. Blevins’ co-defendants were previously sentenced as followed: Baird received 27 months in prison; Gray received 53 months in prison; and Lester received 140 months in prison.

Friday, October 10

A Burlington, Ky., man, Gary Wayne Isaacs, 47, was sentenced to 186 months for possession with intent to distribute methamphetamine. According to his plea agreement, on June 6, 2024, law enforcement stopped Isaacs’ vehicle, and Isaacs gave a false name and social security number. Officers searched the vehicle and found 73.89 grams of methamphetamine that he admitted he possessed with the intent to distribute it to others.

Tuesday, October 14

A Lexington, Ky., man, Khalil Washington, 28, was sentenced to 240 months for possession with intent to distribute 500 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking. According to his plea agreement, on April 4, 2023, law enforcement arrested Washington following a traffic stop and seized 1,360 grams of methamphetamine, 28 grams of fentanyl, and a loaded firearm. Washington admitted to possessing the drugs with intent to distribute to others and that he possessed the firearm in furtherance of his drug trafficking.

A London, Ky., man, Jeffrey L. McDaniel, 56, was sentenced to 120 months for conspiracy to distribute 50 grams or more of methamphetamine. According to his plea agreement, beginning in June 2024 through July 2024, McDaniel conspired with others to distribute 50 grams or more of methamphetamine through Laurel, Knox, and Whitley Counties. As part of the conspiracy, McDaniel would obtain upwards of ounce quantities of meth from his source of supply and distribute it to mid-and lower-level drug dealers and users.

A Lexington, Ky., man, John Robert Eckler, 46, was sentenced to 70 months for possession with intent to distribute 50 grams or more of methamphetamine. According to his plea agreement, in August 2022, a package was seized that contained 14 one-pound bags of methamphetamine. Law enforcement conducted a controlled delivery of the package, which was picked up by Eckler. Eckler later admitted to law enforcement that he possessed the methamphetamine, and he knew the package contained a controlled substance, and he intended to give the package to another individual.

Thursday, October 16

A Corbin, Ky., man, Matthew Martin, 43, was sentenced to 78 months for conspiracy to distribute fentanyl and methamphetamine. According to his plea agreement, from June 2023 through June 2024, Martin conspired with his co-defendants, Laura Huffman, 35, and Erica Mullis, 35, to distribute methamphetamine and fentanyl to others in Whitley, Knox, and Laurel Counties. Both co-defendants were sentenced on October 15—Huffman received 57 months in prison and Mullis received 84 months in prison. 

Friday, October 31

A London, Ky., man, Ronald Dugger, 64, was sentenced to 88 months for possession with intent to distribute methamphetamine. According to his plea agreement, on June 17, 2024, law enforcement responded to a residence where Dugger, who was on federal supervised release, was residing. Law enforcement obtained a search warrant for the residence and found $1,680 in cash and 38.076 grams of methamphetamine. Dugger admitted that he was obtaining methamphetamine from multiple suppliers, and he intended to distribute it to others. 

Monday, November 3

A United States Penitentiary inmate, Eric Watson, 34, was sentenced to 108 months for assaulting a federal officer. According to his plea agreement, on December 25, 2023, two inmates at USP McCreary began fighting. When instructed by staff to stop, Watson instead advanced towards staff, whose efforts to subdue him did not initially work. Watson then took an Officer to the ground and struck him multiple times with a closed fist until responding staff gained control.

A Lexington, Ky., man, Jacque Harmon Jones, 26, was sentenced to 150 months for possession with intent to distribute 100 grams or more of fluorofentanyl and possession of a firearm in furtherance of drug trafficking. According to his plea agreement, law enforcement searched Jones’ residence in February 2024 and discovered three bags of a fluorofentanyl and fentanyl mixture and $27,020 in drug proceeds inside a diaper bag. Additional fentanyl pills and a loaded firearm were found inside the master bedroom. Jones admitted that he possessed the firearm in furtherance of his drug trafficking activity.

A Lexington, Ky., man, Quincy Taylor, 39, was sentenced to 360 months for possession with intent to distribute cocaine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm as a convicted felon. According to evidence at trial, on October 27, 2021, Taylor was involved in a single-vehicle collision on southbound I-75.  After exiting his vehicle, Taylor attempted to provide a bystander with a bag containing 45 grams of cocaine and a firearm.  After the bystander declined, Taylor hid the bag near brush along the exit ramp.  Taylor then left the scene by hitchhiking with a second bystander to Richmond, Ky. Taylor had multiple prior convictions for felony drug trafficking.  As a convicted felon, he was prohibited from possessing a firearm.  Additionally, based on his significant prior criminal history, Taylor qualified as an Armed Career Criminal, which enhanced his sentence.

Tuesday, November 4

Two defendants, Jaloni Andrews, 35, of Richmond, Ky., and Bridgett Vance, 57, of Strunk, Ky., were sentenced to 144 months and 27 months, respectively, for drug distribution charges. Andrews was sentenced to distribution of 40 grams or more of fentanyl. According to his plea agreement, on March 4, 2024, a confidential informant met Andrews to obtain fentanyl and during the meeting Andrews sold the informant 521 blue round pills, which collectively weighed 54.83 grams. Event though the pills were marked with a “30” on one side and a “M” on the other side, like a real oxycodone pill, Andrews admitted that they were fake and contained fentanyl instead.

Vance previously pleaded guilty to possession with intent to distribute oxycodone. According to her plea agreement, Vance sold oxycodone pills in McCreary County by obtaining the pills from a local supplier, but then began traveling to Lexington, Ky., to obtain pills from suppliers there. On October 24, 2023, law enforcement tracked Vance traveling to her supplier in Lexington and they conducted a traffic stop on her vehicle. During a search, law enforcement located 293 oxycodone 30mg pills and $3,529 in cash. Vance admitted that she possessed these pills and intended to distribute them as she had done in the past.

Thursday, November 6

A Munford, Alabama, man, Floyd Jenkins, 46, was sentenced to 212 months for possession with intent to distribute 50 grams or more of methamphetamine. According to his plea agreement, Jenkins worked with his co-defendants, Frederick Holt, Jr., 51, to import methamphetamine and fentanyl into the Johnson County area. Specifically, on December 4, 2024, law enforcement seized more than 300 grams of methamphetamine in Jenkins’ vehicle, which he admitted he possessed and intended to distribute. Holt was previously sentenced in August 2025 to 65 months for his role in the methamphetamine trafficking. 

Wednesday, November 12

A London, Ky., man, Shane Brock, was sentenced to 97 months for conspiracy to distribute methamphetamine. According to his plea agreement, between January 2021 to March 2022, Brock received pound quantities of methamphetamine from co-defendant Stacey Smith, who distributed to multiple mid-level dealers. Brock, in turn, sold the drugs to other methamphetamine traffickers and end users.  Brock admitted to being responsible from between 500 grams and 1.5 kilograms of methamphetamine distribution.

The final defendant in large methamphetamine distribution conspiracy, Charles Phillip Dozier, of Baxter, Ky., was sentenced to 100 months for possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking. According to Dozier’s plea agreement, on February 14, 2023, Dozier was found to be in possession of 140 grams of methamphetamine at a local motel where he was staying. Law enforcement also found a loaded handgun hidden in the ceiling tile in the room, near the methamphetamine.  Dozier’s co-defendants were previously sentenced to the following: Jessica Nicole Creech received 64 months; Gregory Mills received 164 months; and David Hale received 180 months in prison.

– END –

LONDON, Ky. –  A London man, Joshua Pennington, 51, was sentenced on October 17 by U.S. District Judge Claria Horn Boom to 22 months, for conspiracy to commit money laundering of fraudulently obtained Economic Injury Disaster Loans and Paycheck Protection Program loans.

According to Joshua Pennington’s plea agreement, his co-defendant, Nicole Pennington, made materially false statements on applications for Small Business Administration (SBA) loans made available to qualified applicants in response to the COVID-19 pandemic.  Six of the loan applications were approved for a total of $1,090,398.35 in fraudulently obtained SBA loan proceeds.  Between May 2020 and June 10, 2021, Joshua Pennington and his co-defendant knowingly laundered over $1,000,000 in criminally derived funds, via transactions over $10,000. They used the money to renovate their kitchen, pay for plastic surgery, purchase a Viking River Cruise trip, withdraw cash, purchase vehicles, and pay off loans and mortgages.

Joshua Pennington’s co-defendant, Nicole Pennington, is scheduled for sentencing on January 27, 2026.

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

Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division; and Karen Wingerd, Special Agent in Charge, IRS-Criminal Investigations, Cincinnati Field Division, jointly announced the sentence.

The investigation was conducted by the Treasury Inspector General for Tax Administration and the IRS-CI. Assistant U.S. Attorney Brittany Dunn-Pirio is prosecuting the case on behalf of the United States.

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

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

– END –

LONDON, Ky. –  A Boca Raton, Fl., man, Michael Basalyga, 36, and woman, Reina Chirinos de Urena, 39, were sentenced on October 9 by U.S. District Judge Robert Wier to 80 months and 45 months, respectively, for conspiring with others to produce and sell counterfeit drugs.

According to their plea agreements, Basalyga and Chirinos de Urena worked with their co-conspirators, Omar Thomas Wala, Vienna Cavanaugh, and Philbert Campbell, to make and sell counterfeit alprazolam, commonly known by the brand name Xanax.  As part of the conspiracy, Basalyga, Chirinos de Urena, and their co-defendants made pills that looked similar to real tablets and were stamped with numbers used by legitimate manufacturers, but were in fact made from other substances, including clonazolam and etizolam, designed to replicate the effects of alprazolam.

The conspiracy involved selling directly to known customers and by selling the counterfeit drugs under pseudonyms on darknet marketplaces.  People purchased the drugs with cryptocurrency across the United States, including in Kentucky. 

Under federal law, Basalyga and Chirinos de Urena must serve 85 percent of their prison sentences. Upon his release from prison, they will be under the supervision of the U.S. Probation Office for two years. 

Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; and Jim Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence.

The investigation was conducted by the DEA, with assistance from the FBI, IRS, and United States Postal Inspection Service. Assistant U.S. Attorney Gregory Rosenberg is prosecuting the case on behalf of the United States.

– END –

COVINGTON, Ky. – A Norwood, Ohio, man, Marcus Goodwin, 37, was sentenced by Chief U.S. District Judge David Bunning to 200 months in prison, for conspiracy to distribute 50 grams or more of methamphetamine.  

According to his plea agreement, Goodwin conspired with others to distribute over a kilogram of crystal methamphetamine from March 1, 2024 through February 14, 2025 in Cincinnati and Northern Kentucky. Using a confidential informant, law enforcement conducted four controlled purchases of crystal methamphetamine totaling more than a kilogram from Goodwin. Upon arresting Goodwin, law enforcement found three handguns at a hotel room where he was staying, and an additional handgun and 1,192.9 grams of crystal methamphetamine at his residence. Three additional handguns were seized from a location Goodwin used to distribute drugs.

Goodwin was previously convicted of drug trafficking and voluntary manslaughter with specification in the Court of Common Pleas for Hamilton County, Ohio and served a sentence of 14 years for those offenses.  

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

Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI Louisville Field Office; Orville O. Greene, Special Agent in Charge, DEA Detroit Field Division; and Chief Jeff Mallery, Florence Police Department, jointly announced the sentence.

The investigation was conducted by the FBI, DEA, and Florence Police Department. Assistant U.S. Attorney Tony Bracke is prosecuting the case on behalf of the United States.

– END –

LEXINGTON, Ky. – Throughout the 43-day lapse in government funding, the U.S. Attorney’s Office for the Eastern District of Kentucky continued to advance the Department of Justice’s mission in priority enforcement areas, including immigration enforcement.  Below are highlights of sentencings that the U.S. Attorney’s Office secured in connection with several immigration-related cases prosecuted during the recent lapse in federal appropriations.

Tuesday, October 7

A Mexican national, David Gomez-Rodriguez, 44, illegally residing in Pulaski County, was sentenced to 14 months for illegal reentry into the United States. According to his plea agreement, he was removed from the U.S. on August 19, 2022, and on December 6, 2024, he was encountered again in [location] without having sought or received permission to return to the United States. Prior to his first removal in August 2022, Gomez-Rodriguez had a felony conviction for rape in Nelson County, Kentucky.

Thursday, October 9

A Guatemalan national, Juan Esteban Mejia-Ajpop, illegally residing in Newport, Ky., was sentenced to 26 months for aggravated identity theft and use of false identification documents to obtain employment. According to his plea agreement, on two occasions in October 2023 and April 2024, the defendant presented a fraudulent California identification card and a forged Social Security card to secure employment. The information on the forged cards corresponded to another person who is a United States citizen.

A Guatemalan national, Bernabe Domingo-Aguilar, illegally residing in Newport, Ky., was sentenced to 60 months for illegal reentry into the United States after having been convicted of a felony. Domingo-Aguilar had been removed from the United States  four prior times, most recently in 2019. Three of the previous removals followed criminal charges. In 2022, Domingo-Aguilar was unlawfully present in the U.S. when he committed rape on a minor in Kentucky.

Tuesday, October 14

A Mexican national, Antonio Balderas-Arellano, 25,, was sentenced to 21 months for illegal reentry into the United States. According to court documents, the defendant was found on February 21, 2025, in Scott County after previously being deported to Mexico in November 2023 from Atlanta.

Monday, October 20

A Mexican national, Javier Perez-Ruiz, 37, illegally residing in Louisville, Ky., was sentenced to time served (approximately 124 days) for illegal reentry into the United States after being found in Scott County. According to his plea agreement, Perez-Ruiz was previously convicted of conspiracy to distribute cocaine in August 2012 in the U.S. District Court for the Eastern District of Kentucky, was sentenced to 13 months, and was deported on March 5, 2013.

Tuesday, October 28

A Honduran national, Jose Hernandez Garcia, 25, illegally residing in Corbin, Ky., was sentenced for possession of a firearm by an illegal alien. According to his plea agreement, the defendant was traffic-stopped for operating a vehicle under the influence of alcohol. A search of the vehicle uncovered a loaded firearm in the backseat next to an open beer bottle. Garcia did not have legal status to be in the United States. 

Thursday, October 30

A Mexican national, Miguel Ruiz Sanchez, illegally residing in Shelby County, Ky., was sentenced to 12 months for illegal reentry into the United States. According to court documents, Sanchez had previously been deported from the U.S. on four different occasions  - March 2011, April 2012, April 2014, and February 2017 – and had a felony conviction prior to those removals.

Tuesday, November 4

A Mexican national, Esain Benitez Alcantara, 36, was sentenced to 30 months for possession with intent to distribute methamphetamine and possession of a firearm by an illegal alien. According to his plea agreement, on June 14, 2024, Lexington Police Department officers responded to a shots fired call and found Benitez Alcantara in possession of a loaded firearm, 13 live rounds of ammunition, and a quantity of cash indicative of drug trafficking. A search of the vehicle found 32 grams of methamphetamine. Benitez Alcantara admitted that he was an undocumented alien, prohibited from possessing a firearm and that he possessed the methamphetamine with intent to distribute. 

– END –

LEXINGTON, Ky. – A Tomball, Texas, man, Emre Nathaniel Baluken, 24, was sentenced on October 6 by U.S. District Judge Gregory Van Tatenhove to 240 months in prison, for online enticement of a minor to engage in unlawful sexual activity and traveling for sex with a minor. 

According to court documents, on November 13, 2024, Baluken drove from Tomball, Texas, to Winchester, Ky., to pick up a minor, with whom he had been communicating online for several months using X and Instagram, intending to return with the minor to Texas. After eventually being detained by law enforcement, Baluken admitted that for several months he had exchanged sexually explicit videos and photos of the victim over X and Instagram. 

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

Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; and Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.

The investigation was conducted by the FBI. Assistant U.S. Attorney James Chapman is prosecuting the case on behalf of the United States.

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

– END –