Eastern District of Kentucky

ASHLAND, Ky. – A South Shore, Ky., man, Austin Hardin, 29, was sentenced on Tuesday, by U.S. District Judge David Bunning, to 84 months in prison, for receiving a visual depiction of a minor engaged in sexually explicit conduct.

According to his plea agreement, on August 3, 2023, law enforcement received information that Hardin had been engaged in sexual chatting with a person purporting to be a minor.  When questioned about the situation, Hardin admitted to chatting with the person, but stated he believed the profile to be fake.  Hardin also admitted that he had sexually explicit images of minors on his phone and proceeded to show law enforcement that he had a secret folder that contained multiple explicit images of minors that he had received using various social media and messaging applications.  In total, over 600 images and videos of minors engaged in sexually explicit conduct were located on Hardin’s cellphone.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); Chief Kenneth Hudson, City of Russell Police Department; and Sheriff Matt Smith, Greenup County Sheriff’s Office, jointly announced the sentence.

The investigation was conducted by HSI, City of Russell Police Department, and Greenup County Sheriff’s Office.  Forensic examination of Hardin’s electronic devices was conducted by the Ashland Police Department.  Assistant U.S. Attorney Erin Roth 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.

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ASHLAND, Ky. – A Flatwoods, Ky., man, Skyler Allen Mullins, 23, was sentenced on Tuesday, by U.S. District Judge David Bunning, to 35 years in prison, for attempted production of child pornography and possession of child pornography.

According to his plea agreement, on May 4, 2022, law enforcement discovered that Mullins was using a social media application to exchange sexually explicit images of children. Law enforcement interviewed Mullins and he admitted to attempting to create videos of himself sexually assaulting a minor known to him.  Mullins also admitted using social media platforms to exchange materials and links to images and video of minors engaged in sexually explicit conduct.

In total, Mullins possessed over 600 images or videos of minors engaged in sexually explicit conduct.

Under federal law, Mullins 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 30 years. 

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

The investigation was conducted by the FBI and Kentucky State Police.  Assistant U.S. Attorney Erin Roth 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.

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ASHLAND, Ky. – A former Kentucky Department of Juvenile Justice employee, Nathaniel K. Lumpkins, 33, of Elkfork, Ky., was sentenced to 36 months in prison by U.S. District Judge David Bunning, on Tuesday, for one count of deprivation of rights under color of law.

Lumpkins was employed at Woodsbend Youth Development Center, a Kentucky Department of Juvenile Justice facility located in West Liberty, Ky., and worked as a Youth Worker, responsible for the custody, care, and control of the juveniles housed there.  As he admitted in his plea agreement, on January 23, 2019, Lumpkins violated the civil rights of a fifteen-year-old at Woodsbend, when he used unreasonable force on the victim.  When the victim was already compliant, on the ground, and being held by three other adult Youth Workers, Lumpkins began twisting the victim’s hand back onto his wrist and pushing his body weight repeatedly down onto the youth’s wrist and arm.  While doing this, Lumpkins broke the victim’s arm, and admitted in his plea agreement that he did so out of anger and not for any legitimate purpose.  Lumpkins later slammed the victim’s already-broken arm into a concrete wall, again out of anger with no legitimate purpose.  Then, Lumpkins wrote and signed an incident report that included false information, in an attempt to cover up his unlawful use of force.       

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announce the sentencing.

The investigation was conducted by the FBI, with assistance from the Internal Investigations Branch of the Kentucky Justice and Public Safety Cabinet.  Assistant U.S. Attorney Zach Dembo is prosecuting the case on behalf of the United States. 

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LEXINGTON, Ky. — The physician and office manager of a medical practice in Jackson, Kentucky, have agreed to pay $450,000 to resolve civil allegations that the physician unlawfully prescribed controlled substances, and that they both defrauded federal healthcare programs by soliciting kickbacks for laboratory referrals.

Pablo Merced, M.D. owned and operated St. John Neumann’s Extended Hours Clinic, a medical practice in Jackson, Kentucky.  His wife, Theresa Merced, worked as St. John Neumann’s office manager.  In his practice, Dr. Merced referred laboratory testing to several laboratories, including Physicians’ Medical Center, BIOTAP Medical, and Bluewater Toxicology.  Dr. Merced also prescribed controlled substances to his patients at his medical practice.

As set forth in the settlement agreement, the United States alleged that Dr. and Mrs. Merced solicited kickbacks from a lab sales representative, in exchange for Dr. Merced’s referrals of laboratory tests to Physicians’ Medical Center, BIOTAP Medical, and Bluewater Toxicology, from April 2016 to November 2021.  The sales representative paid cash directly to the Merceds and to multiple laboratory specimen collectors who worked at St. John Neumann’s.  The specimen collectors, who were supposed to only work for the labs, also performed office work at St. John Neumann’s.

The Anti-Kickback Statute prohibits giving cash and in-kind payments, such as free office work, to induce medical providers’ referrals for services paid by federal healthcare programs. Medicare, Kentucky Medicaid, and TRICARE programs paid more than $9 million for laboratory tests referred by Dr. Merced.  Submission of these tainted claims violated the False Claims Act, a federal law that prohibits knowingly submitting a false claim for reimbursement to federal programs.

The United States also alleged that Dr. Merced violated the Controlled Substances Act, by writing invalid prescriptions.  The Controlled Substances Act, which was passed to combat the illegal distribution and abuse of controlled substances, requires a prescription for Schedule II controlled substances to be issued for a legitimate medical purpose, by a licensed practitioner acting in the usual course of his professional practice.  Dr. Merced pre-signed 94 blank prescriptions and permitted unauthorized individuals to complete and issue those prescriptions for controlled substances to patients in his absence, which is outside the usual course of professional practice.

Dr. and Mrs. Merced agreed to pay the United States $450,000, as part of an ability-to-pay settlement, to resolve the allegations of False Claims Act and Controlled Substances Act violations.  Dr. Merced further agreed to a 15-year voluntary exclusion from federal healthcare programs and to refrain from reapplying for a registration with the U.S. Drug Enforcement Administration, which he surrendered during the investigation.

“This case involved two important principles:  averting the submission of false claims to federal programs and preventing the irresponsible distribution of addictive controlled substances,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “Eastern Kentucky has been hard hit by the drug epidemic.  And with the assistance of our partners, this case highlights our commitment to reducing that suffering, and holding professionals accountable for improperly depleting critical government resources and recklessly dispensing addictive drugs.”

"HHS-OIG is dedicated to investigating medical providers who undermine federal health care programs and jeopardize patient welfare by submitting false or fraudulent claims,” said Special Agent in Charge Kelly J. Blackmon with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Health care professionals have a responsibility to bill accurately for services and prescribe controlled substances responsibly."

“Dr. Merced’s reckless behavior in this case demonstrated a clear violation of the Controlled Substances Act,” said Acting Special Agent in Charge Erek Davodowich, head of DEA’s Louisville Division. “Doctors who operate outside of accepted medical guidelines can pose a threat to the health of their patients and should expect to meet the full weight of the justice system.”

This settlement is part of a larger case brought under the qui tam provisions of the False Claims Act, which returned more than $7.3 million to federal programs.  The civil case is captioned United States ex rel. Clark et al. v. United States Medical Scientific, LLC, et al., Case No. 0:18-cv-109-KKC, which the court recently unsealed for public access on September 23, 2024.

The Government’s work in this investigation illustrates its commitment to combatting health care fraud, waste, and abuse, as well as its continued emphasis on combating the prescription opioid crisis.  Tips from all sources about potential fraud, waste, and abuse can be reported to the U.S. Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).  Anyone with concerns about prescription drug diversion can report them to the DEA by submitting a tip at https://www.dea.gov/submit-tip.

The settlement agreement resulted from the joint efforts of the United States Attorney’s Office for the Eastern District of Kentucky, the U.S. Department of Health and Human Services, Office of Inspector General, the U.S. Drug Enforcement Administration, and the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse Control.  The United States was represented by Assistant U.S. Attorney Meghan Stubblebine.  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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LEXINGTON, Ky. — A hospital, a laboratory, three lab employees, and a referring physician and his office manager have agreed to collectively pay the United States more than $7.2 million dollars to resolve civil allegations that they defrauded federal healthcare programs in connection with laboratory tests that were not medically necessary or were tainted by violations of the federal Anti-Kickback Statute.

Physicians’ Medical Center, LLC (“PMC”), a hospital in New Albany, Indiana, operated a clinical laboratory that was managed by the now defunct United States Medical Scientific Indiana, LLC (“US Med Sci Indiana”).  The United States alleged that PMC, through its lab manager’s fraudulent conduct, violated the False Claims Act by submitting false claims for laboratory services to Medicare, Kentucky Medicaid, and TRICARE, from December 2016 to September 2018.

Federal healthcare programs only pay for laboratory services that are used for medical diagnosis or treatment.  As set forth in the settlement documents, the United States alleged that PMC billed Medicare, Kentucky Medicaid, and TRICARE for urine drug tests referred by various entities – including a homeless shelter and peer-to-peer recovery centers – that did not use the test results for medical diagnosis or treatment.  These nonmedical entities only used the test results to monitor clients’ compliance with the conditions of their programs and with court orders. In total, the United States alleged that PMC submitted nearly $3 million in false claims to Medicare, Kentucky Medicaid, and TRICARE, for urine drug tests referred by these nonmedical entities.

Two lab employees also entered settlement agreements to resolve their False Claims Act liability, for causing PMC’s submission of false claims for lab tests from these nonmedical entities.  The United States alleged that Bobby Sturgeon, a sales representative for PMC’s laboratory, knew that these entities did not provide medical services, but nonetheless pursued and worked with them as clients.  And Sturgeon financially benefited from these fraudulent sales practices because his salary was based in part on the amount insurers paid PMC for his clients’ tests, including those from the nonmedical entities.  Similarly, the United States alleged that Derrick Arthur, one of the peer-to-peer recovery center’s directors, worked as a specimen collector for PMC’s lab and helped arrange for a volunteer doctor to order urine drug testing, despite knowing that the doctor did not provide medical treatment to the center’s clients.  By doing so, Arthur facilitated the improper billing of laboratory tests to federal healthcare programs.

After PMC closed its laboratory in October 2018, Sturgeon became a sales representative for Bluewater Toxicology, a laboratory in Mount Washington, Kentucky.  As set forth in the settlement documents, Sturgeon then caused Bluewater to submit false claims for medically unnecessary urine drug tests, from the same peer-to-peer recovery centers and homeless shelter, through July 2019.  Like PMC, Bluewater knew that federal healthcare programs would not pay for urine drug tests used for nonmedical purposes, but still submitted the claims for payment.  In total, the United States alleged that Bluewater submitted nearly $450,000 in false claims to Medicare and Kentucky Medicaid for urine drug tests referred by the nonmedical entities. Bluewater, Sturgeon, and Arthur have entered settlement agreements resolving their liability for the submission of Bluewater’s false claims for tests from these nonmedical entities.

In a related scheme, Steve Moore, a laboratory sales representative for PMC and Bluewater Toxicology, allegedly paid a physician, Pablo Merced, M.D., and his wife and office manager, Theresa Merced, to induce referrals of laboratory tests to PMC and Bluewater Toxicology.  To gain Dr. Merced’s large volume of referrals, Moore paid cash to the Merceds and paid additional salary to lab specimen collectors who worked at their office.  PMC, through its lab manager, also employed specimen collectors in Dr. Merced’s medical practice, who were alleged to perform office work unrelated to their specimen collection duties.  Moore’s cash payments and the PMC lab manager’s in-kind payments to the Merceds violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b).  PMC and Bluewater submitted millions of dollars of claims to federal healthcare programs for the lab tests that were tainted by their sales representative’s kickbacks.  PMC, Moore, and the Merceds have entered settlement agreements resolving their liability for the submission of the false claims tainted by kickbacks.

PMC’s settlement agreement also resolved its False Claims Act liability for claims for lab tests referred by medical providers at Prescribe Recovery, a medical practice in Paris, Kentucky. The United States alleged that PMC’s lab manager, US Med Sci Indiana, actually owned Prescribe Recovery, and directed its medical providers’ referral of laboratory tests to PMC’s lab.  As PMC’s lab manager, US Med Sci Indiana received 78% of the laboratory claim reimbursements paid to PMC, including the reimbursements from Prescribe Recovery.  PMC’s payment of 78% of laboratory reimbursements to US Med Sci Indiana induced them (as the lab manager) to direct Prescribe Recovery’s lab referrals to PMC, and violated the Anti-Kickback Statute.

Collectively, these civil healthcare fraud settlements return more than $7.2 million to the Medicare, Kentucky Medicaid, and TRICARE programs.  For their roles in the scheme as the laboratories submitting the false claims, PMC agreed to pay $5,219,000 and Bluewater Toxicology agreed to pay $895,952. Sturgeon and Moore, agreed to pay $713,466 and $40,000, respectively, to resolve their liability.  Arthur agreed to pay $5,500 to resolve his liability; and Dr. and Mrs. Merced collectively agreed to pay $450,000 to resolve their liability, under the False Claims Act and Dr. Merced’s liability for separate conduct under the Controlled Substances Act.  The value of Moore’s, Arthur’s, and the Merceds’ settlements included factoring in their inability to pay, based on financial disclosures. 

“Through a complex patchwork of schemes, the federal government was defrauded out of millions of dollars,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “This money was appropriated to provide medical services to eligible Americans; instead, it improperly yielded proceeds to those who were submitting false claims.  When fraud and abuse deplete these valuable resources, it injures all of us.  With the assistance of our partners and the filing of a qui tam complaint, vital resources are now being returned to their intended purpose.”

“Individuals and entities participating in the federal health care system must comply with laws designed to protect program funds and ensure patients receive appropriate, quality care,” said Special Agent in Charge Kelly J. Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to collaborate with our law enforcement partners to hold health care providers accountable for improper payments from federal health care programs.”

The settlements resolve 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 individuals who filed the qui tam complaint will receive a portion of the settlement proceeds.  The civil case is captioned United States ex rel. Clark et al. v. United States Medical Scientific, LLC, et al., Case No. 0:18-cv-109-KKC.

The settlement agreements resulted from the joint efforts of the United States Attorney’s Office for the Eastern District of Kentucky; U.S. Department of Health and Human Services, Office of Inspector General; U.S. Drug Enforcement Administration; U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; and the Kentucky Attorney General’s Office of Medicaid Fraud and Abuse Control.  The United States was represented by Assistant U.S. Attorney Meghan Stubblebine.  The claims resolved by the settlements are allegations only, and there has been no determination of liability.

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LEXINGTON, Ky. – A Lexington man, Vonnie McDaniels, 35, was found guilty on Wednesday, by a federal jury sitting in Lexington, of four counts of wire fraud, for fraudulently applying for three Small Business Administration (SBA) Covid-19 relief loans and for fraudulently applying to the Lexington Fayette Urban County Government’s (LFUCG) federally funded Housing Stabilization Program (HSP), a tenant rent relief program; two counts of aggravated identity theft for submitting tenant rent relief applications, pretending to be his tenants; six counts of money laundering; and two counts of committing an offense while on conditions of release.  He was convicted following a three-day trial.

According to the evidence at trial, McDaniels submitted a materially false application to the SBA, to obtain an Economic Injury Disaster Loan (EDIL), for one business, fraudulently obtaining a $100,000 loan.  The Defendant also submitted three materially false Payment Protection Program (PPP) applications, for the same business and for another business that was no longer in operation at the time of the pandemic.  Two of the three PPP applications were eventually funded, and McDaniels obtained $93,231.  McDaniels also inflated numbers on his applications to increase the loan amount and uploaded fraudulent tax documents to support his numbers.  In 2020, he obtained a total of $193,231 in disaster relief funds from the SBA.  The theft was discovered by law enforcement when preparing for an earlier trial, back in June 2021, when McDaniels was previously convicted of bank fraud and aggravated identity theft.

McDaniels used the SBA loan proceeds to pay off personal credit cards and loans, free up home equity lines of credit, purchase a new property in South Carolina, and pay his unlawfully obtained mortgage, which had been the subject of his June 2021 bank fraud trial.

In 2021, McDaniels also submitted a materially false application to LFUCG’s HSP for tenant rent relief for two properties.  McDaniels uploaded fraudulent leases, vastly inflating the monthly rent amount and pretended to be his two tenants when he submitted the tenant portions of the application.  McDaniels solicited personal identifying information from his tenants, told his tenants about the rent relief program, and informed his tenants that they did not qualify.  Then, he fraudulently obtained $45,000 in Covid rental relief assistance, while he continued to make his tenants pay their monthly rent.  He committed these offenses while subject to conditions of release, following his prior conviction.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Kathy Enstrom, Special Agent in Charge, Office of Inspector General, Federal Deposit Insurance Corporation, jointly announced the jury’s verdict.

The investigation was conducted by the Federal Deposit Insurance Corporation – Office of Inspector General.  Assistant U.S. Attorneys Brittany Dunn-Pirio and Andrea Mattingly Williams are representing the United States in the case.

McDaniels is scheduled to appear for sentencing on January 24, 2025.  He faces up to 20 years in prison, and a mandatory minimum sentence of two years for aggravated identity theft. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.  McDaniels also faces potential fines, a forfeiture money judgment, and a judgment of restitution, as ordered by the Court.

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

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

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LEXINGTON, Ky. – A Lexington man, and former active-duty soldier stationed at Fort Campbell, Ky., Ethan McManus-Sanning, 21, was sentenced on Monday, by Chief U.S. District Judge Danny Reeves, to 85 months in prison, for receiving child pornography.         

According to his plea agreement, law enforcement received information that McManus-Sanning sent money, via PayPal, to an account selling child pornography.  In April 2023, McManus-Sanning was interviewed, and he admitted to purchasing, accessing, viewing, and receiving images of child pornography using the internet.  Specifically, McManus-Sanning confirmed he was part of multiple groups on the internet where child pornography would be advertised, and he would direct message the seller to purchase the material.  Law enforcement reviewed his phone and found over 500 images and 75 videos of minors engaged in sexually explicit conduct.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI), jointly announced the sentence. 

The investigation was conducted by HSI and the Army Criminal Investigation Division, Ft. Campbell.  Assistant U.S. Attorney Erin Roth 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.

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LEXINGTON, Ky. – A Lexington man, Jacob Salcido­­­, 40, pleaded guilty on Friday, before Chief U.S. District Judge Danny Reeves, to three counts of sexual abuse of a ward.  

According to his plea agreement, from September 5, 2020, to December 21, 2020, while employed as a Correctional Officer at the Federal Medical Center in Lexington, Salcido knowingly engaged in sexual acts with three inmates.  Salcido admitted that, based on his training and experience, he was aware that any sexual contact between FMC staff and inmates was strictly forbidden and constituted a criminal offense.

“Jacob Salcido blatantly exploited his power as a correctional officer by sexually abusing three women in his custody,” said Deputy Attorney General Lisa Monaco. “The Justice Department’s commitment to eradicating sexual abuse within the ranks of the Federal Bureau of Prisons continues through every case we prosecute.  Today’s guilty plea is the latest but certainly not the last in our efforts to eradicate sexual abuse in federal prisons.”

“Federal Bureau of Prisons Correctional Officers are responsible for fostering a safe and humane environment for inmates to serve out their sentences,” said Inspector General Michael E. Horowitz. “Instead, Salcido abused his authority and sexually abused three inmates that were in his custody and care.  The DOJ OIG is committed to aggressively investigating these types of allegations and bringing perpetrators to justice.”

“Instead of ensuring the safety and security of those in his care, the defendant chose to maliciously prey on vulnerable individuals, and betrayed an important obligation to the public,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “This disgraceful conduct has done enduring damage to his victims.  It has also eroded trust in faithful public servants, those who perform their civic duties honorably.  We are committed to our efforts to protect individuals, and to combat abuses by those who callously betray their responsibilities to those in their care and to the public they serve.” 

United States Attorney Shier; William J. Hannah, Special Agent in Charge, Department of Justice, Office of the Inspector General, Chicago Field Office; and Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.

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

Salcido is scheduled to be sentenced on December 13, 2024. This offense carries penalties of up to 15 years in prison and a $250,000 fine.  However, any sentence will be imposed by the Court, after its consideration of the guilty plea, the U.S. Sentencing Guidelines, and the federal sentencing statutes.

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A former Federal Bureau of Prisons (FBOP) correctional officer pleaded guilty today to three counts of sexual abuse of a ward.

Jacob Salcido, 40, of Lexington, Kentucky, pleaded guilty today to sexual abuse of a ward. According to his plea agreement, beginning on Sept. 5, 2020, through Dec. 21, 2020, while employed as a correctional officer at the Federal Medical Center (FMC) in Lexington, Salcido knowingly engaged in a sexual act with three inmates. Salcido admitted that he was aware that based on his training and experience that any sexual contact between FMC staff and inmates was strictly forbidden and was a federal crime.

“Jacob Salcido blatantly exploited his power as a correctional officer by sexually abusing three women in his custody,” said Deputy Attorney General Lisa Monaco. “The Justice Department’s commitment to eradicating sexual abuse within the ranks of the Federal Bureau of Prisons continues through every case we prosecute. Today’s guilty plea is the latest but certainly not the last in our efforts to eradicate sexual abuse in federal prisons.”

“Federal Bureau of Prisons Correctional Officers are responsible for fostering a safe and humane environment for inmates to serve out their sentences,” said Inspector General Michael E. Horowitz. “Instead, Salcido abused his authority and sexually abused three inmates that were in his custody and care. The DOJ OIG is committed to aggressively investigating these types of allegations and bringing perpetrators to justice.”

“Instead of ensuring the safety and security of those in his care, the defendant chose to maliciously prey on vulnerable individuals, and betrayed an important obligation to the public,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “This disgraceful conduct has done enduring damage to his victims. It has also eroded trust in faithful public servants, those who perform their civic duties honorably. We are committed to our efforts to protect individuals, and to combat abuses by those who callously betray their responsibilities to those in their care and to the public they serve.”

Salcido is scheduled to be sentenced on Dec. 13.

Salcido faces a maximum penalty of 15 years in prison and a maximum fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

DOJ-OIG and the FBI investigated the case.

Assistant U.S. Attorney Zach Dembo for the Eastern District of Kentucky is prosecuting the case.

FBOP is committed to rooting out misconduct within its ranks and working with law enforcement partners to prosecute violations of federal law. The numerous FBOP employees working diligently to ensure justice for the victims of misconduct are critical to the department’s reform efforts.

LONDON, Ky. – A Findlay, Ohio, man, Brenden David Martin, 25, was sentenced on Tuesday, by U.S. District Judge Claria Horn Boom, to 348 months in prison, for production of child pornography.

According to his plea agreement, beginning in 2019 and continuing through December 2021 – when the victim was a minor residing in the Eastern District of Kentucky – Martin engaged in conversations with the victim, using Internet-based messaging and social media platforms.  He used these conversations to persuade the victim to engage in sexually explicit conduct, for the purpose of producing visual depictions of that conduct.  Specifically, after initially receiving non-nude, but compromising photos of the victim, Martin threatened to disseminate those images via social media, as leverage to convince the victim to provide visual depictions of sexually explicit conduct.  The victim ultimately provided him with hundreds of photographs and videos.

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

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

The investigation was conducted by the FBI and Kentucky State Police.  Assistant U.S. Attorney Pearce Nesbitt 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.

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LEXINGTON, Ky. – A Richmond, Ky., man, Christopher David Taylor, 39, was sentenced to 94 months on Wednesday, by U.S. District Judge Gregory Van Tatenhove, following his convictions for two counts of theft from a federally licensed firearms dealer and one count of possession of a firearm by a convicted felon.

According to his plea agreement, on January 4, 2023, law enforcement responded to a burglary at Dan’s Discount Jewelry and Pawn, a federally licensed firearms dealer.  Taylor and an accompanying juvenile unlawfully entered the store and stole 60 firearms from the business.  As law enforcement arrived, Taylor and the juvenile escaped through the back of the business, dropping a duffel bag containing 57 of the 60 firearms.  An additional firearm that was stolen was recovered from the field behind the business.

Later, on February 8, 2023, law enforcement responded to another burglary, this time in Clark County, at Bypass Gold and Pawn LLC, another federally licensed firearms dealer.  Taylor was observed on surveillance unlawfully entering the building and stealing a total of nine firearms from the business.

Then, on February 10, 2023, after identifying Taylor on surveillance, law enforcement searched Taylor’s residence, finding him hiding in the attic.  Law enforcement also found five firearms, three of which had been stolen by Taylor, from Bypass Gold and Pawn.  Taylor later admitted to committing both burglaries.

As part of his plea, Taylor admitted that he knew he was prohibited from possessing firearms due to several prior state felony convictions, which include multiple burglaries in Anderson Circuit Court, a bail jumping in Madison Circuit Court, and a possession of a controlled substance in Madison Circuit Court, all in 2022.

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

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

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

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

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LONDON, Ky.— The former Commonwealth’s Attorney, for the 33rd Judicial Circuit of Kentucky, Scott Blair, 52, of Hazard, Ky., was sentenced to 54 months in prison on Thursday, by U.S. District Judge Robert Wier, for committing honest services wire fraud.

According to his guilty plea agreement, between April 2020 and March 2024, Blair knowingly and intentionally devised a scheme to fraudulently deprive the citizens of Perry County of their right to his honest services, as the elected Commonwealth’s Attorney, through bribery.  On multiple occasions, Blair agreed to take official actions, in his position as the Commonwealth’s Attorney – including making recommendations on probation, drug court, and probation violations or sanctions for defendants he was prosecuting – in exchange for methamphetamine and sexual favors.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI Louisville Field Division; Russell Coleman, Kentucky Attorney General; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.

The investigation was conducted by the FBI, the Kentucky Attorney General’s Office, and the KSP.  Assistant U.S. Attorney Justin Blankenship is prosecuting the matter on behalf of the United States.

— END—

LEXINGTON, Ky. – A Winchester, Ky., woman, Irene Fike, 56, was sentenced to 36 months on Wednesday, by U.S. District Judge Gregory Van Tatenhove, following her convictions for wire fraud and aggravated identity theft.

From 2016 to 2021, Fike was employed by an accounting firm in Winchester, where she had access to financial information belonging to the victim and performed bookkeeping tasks for the victim.  According to her plea agreement, in the fall of 2021, Fike left her employment at the accounting firm and the victim hired her as an independent contractor to assist with paying bills, creating and updating financial records, general bookkeeping, and other matters.  She also had access to the victim’s bank accounts.

As part of Fike’s scheme, from April 2018 until September 2022, she defrauded the victim through the unauthorized use of the victim’s credit cards and bank accounts to benefit herself.  In total, Fike used $224,349.93 in the victim’s funds to pay her personal credit card.  Additionally, she used the victim’s credit cards to make various online purchases totaling $139,307.74.  To conceal her fraud, Fike misrepresented the expenditures and debits on financial reports to avoid raising the suspicions of the victim and family.

As part of her sentence, Fike was ordered to pay $405,867.08 in restitution to the victim.

Under federal law, Fike 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 three years.

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

The case was investigated by the FBI.  Assistant U.S. Attorneys Amanda Huang and Andy Boone prosecuted the case on behalf of the United States.

— END —

FRANKFORT, Ky. – A Lexington man, Rollie Deshawn Lamar, 31, was sentenced to 220 months, by U.S. District Judge Greg Van Tatenhove, following his convictions at trial for conspiracy to distribute 1,000 kilograms or more of marijuana, money laundering, and possession of a firearm in furtherance of drug trafficking. 

According to evidence presented at trial, in late 2021, law enforcement began investigating Lamar and others.  The investigation revealed that an individual working for Lamar would travel to Detroit, once or twice a week, bringing back approximately 50 pounds of high-quality marijuana each trip.  Lamar then sold this marijuana, by the pound, in the Lexington area.  In March 2022, the Kentucky State Police joined the investigation, making a vehicle stop that yielded a large quantity of high-quality marijuana.

Thereafter, on April 6, 2022, a search warrant was executed at Lamar’s residence, where law enforcement seized more than $1.86 million, four expensive vehicles and approximately $220,00 in jewelry, all of which were proceeds of drug trafficking.  They also seized several firearms.  That same day, law enforcement stopped another vehicle, leading to the seizure of approximately $27,000 in additional drug proceeds.  Additionally, after Lamar had been indicted, there was another vehicle stop, which resulted in the seizure of additional drug proceeds, including approximately $11,000 and $10,000 in jewelry.

In all, law enforcement seized items totaling more than $2 million.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division; Orville O. Greene, Special Agent in Charge, DEA, Detroit Field Division; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; Chief Lawrence Weathers, Lexington Police Department; and Chief Dustin Bowman, Frankfort Police Department, jointly announced the sentence.

The case was investigated by the DEA, ATF, KSP, Lexington Police Department, and Frankfort Police Department.  Assistant U.S. Attorney Roger West prosecuted the case on behalf of the United States.

— END —

COVINGTON, Ky. –  A Boone County, Ky., man, Timothy Estep, was sentenced to 174 months on Friday, by U.S. District Judge David Bunning, for distribution of methamphetamine and possession with the intent to distribute methamphetamine.          

According to court documents, in October 2023, law enforcement used a confidential informant to purchase 12.7 grams of methamphetamine from Estep.  Law enforcement thereafter attempted to conduct a traffic stop but Estep fled, during which he drove into the oncoming lane of traffic.

Several days later, law enforcement took Estep into custody when he arrived for a second controlled purchase.  Law enforcement found 13.8 grams of methamphetamine on Estep and an imitation revolver in his vehicle.  Estep admitted that he knowingly distributed methamphetamine during the first controlled purchase and that he intended to distribute methamphetamine during the second.  

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

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

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

— END —

PIKEVILLE, Ky. –  A Salyersville, Ky., man, Daniel Jackson, was convicted on Wednesday, by a federal jury sitting in Pikeville, following a two-day trial, of possession with the intent to distribute 50 grams or more of methamphetamine and possession with the intent to distribute fentanyl.           

According to evidence at trial, on February 7, 2024, law enforcement conducted a traffic stop of a vehicle being driven by Jackson.  During a search of the vehicle, law enforcement located and seized over 70 grams of methamphetamine.  Jackson then attempted to discard a bag of fentanyl, in the police car, after his arrest. 

Jackson was indicted on May 23, 2024. 

Jackson will appear for sentencing on December 9, 2024.  He faces a maximum of 40 years in prison.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erik Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; and Sheriff William “Bill” Meade of the Magoffin County Sheriff’s Department made the announcement. 

The investigation was conducted by the DEA, the Magoffin County Sheriff’s Office, and Operation UNITE.  Assistant U.S. Attorney Drew Trimble is prosecuting this case on behalf of the United States.

— END —

LEXINGTON, Ky. –  A Detroit man, Jarrett Howard, 56, was sentenced on Wednesday, by U.S. District Judge Karen Caldwell, to 300 months, for possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute cocaine, possession of firearms as a convicted felon, and possession of firearms in furtherance of drug trafficking.

According to testimony at trial, in November 2021, law enforcement received information that Howard was responsible for distributing fentanyl in Madison County.  They then conducted a search of Howard’s residence, finding 285 grams of fentanyl, 416 grams of cocaine, and two loaded firearms.  Law enforcement also discovered a digital scale and $34,450 at the residence. 

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge, DEA Louisville Field Division; Orville O. Greene, Special Agent in Charge, DEA Detroit Field Division; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP); Chief Rodney Richardson, Richmond Police Department; and Sheriff Mike Coyle, Madison County Sheriff's Office, jointly announced the sentencing.

The investigation was conducted by DEA, ATF, KSP, Richmond Police Department, and Madison County Sheriff's Office. Assistant U.S. Attorney Emily Greenfield prosecuted the case on behalf of the United States. 

— END —

FRANKFORT, Ky. - A Shelbyville, Ky., man, Jeremy Wayne Harrell, 43, was convicted on Friday, August 23, by a federal jury in Frankfort, of theft of government benefits.  The jury’s verdict was returned following a five-day trial and less than two hours of deliberations.

According to testimony at trial, Harrell intentionally stole money from the United States in an amount exceeding $1,000, namely U.S. Department of Veterans Affairs Individual Unemployability (IU) disability payments that he was not entitled to receive.

Specifically, the evidence presented at trial indicated that Harrell was initially awarded IU benefits in 2011.  In 2019, Harrell then founded Veterans Club, Inc., and he served as the Founder and CEO of the organization.  The evidence that showed Harrell had a high level of work activity for Veterans Club, from 2019 through 2023.  This included working 40-60 hours per week, actively running the organization, organizing events, managing over $400,000 in assets and approximately 6,000 volunteers, engaging in news media interviews, appearing on podcasts, appearing and speaking at community events, meeting with business and political leaders, teaching classes, accepting donations, among other work.  This evidence confirmed that Harrell, as the active and successful Founder and CEO of Veterans Club, could maintain substantial gainful employment, rendering him ineligible to receive the IU benefits that he received from 2019 through 2023.  Additionally, the evidence showed that Harrell made numerous false statements to the government about his daily life and work activities, depicting himself as withdrawn, without the ability to perform work, leading a highly restricted life, and rarely leaving his home; when in truth, he was an active and successful CEO of a vibrant organization.  The evidence confirmed Harrell made these false representations to the government to depict himself as unemployable, conceal his active role as CEO of an organization, and attempt to continue to receive IU benefits.  In total, Harrell wrongfully received more than $108,000 in IU benefits.

“In the end, this case was about a simple principle:  preventing people from taking government assistance they are not entitled to receive,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “He provided false information to the government, which concealed his ineligibility, and he wrongfully obtained a significant amount funds – funds that should have been provided to other veterans who were eligible for this assistance.  I commend the efforts of our law enforcement partners and trial team, whose work defended this simple principle, and resulted in a verdict reaffirming it.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and VA Inspector General Michael J. Missal, jointly announced the verdict.

The investigation was conducted by U.S. Department of Veterans Affairs Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney James T. Chapman. 

Harrell will appear for sentencing on December 9, 2024.  He faces a maximum of 10 years in prison and a fine of up to $250,000.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.

— END —

LEXINGTON, Ky. – A Nicholasville, Ky., man, Lenny Needy, 66, was sentenced on Thursday, by U.S. District Judge Karen Caldwell, to 18 months in prison, for bank robbery by intimidation.

According to his plea agreement, on August 17, 2023, Needy robbed Traditional Bank on Nicholasville Road in Lexington.  Specifically, Needy approached the teller window and handed her a note, then saying words to the effect: “This is a robbery, give me everything you have!”  A teller was able to hit a silent alarm; but as she hit the alarm, Needy said not to hit any buttons and to hurry up with the money.  Needy obtained $6,943 in cash from the teller and fled the scene.  Law enforcement later identified Needy through cameras and DNA testing on his clothing.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentencing.

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

— END —

COVINGTON, Ky. –  A DeMossville, Ky., couple, Robert Gullion, 31, and Catelyn Simpson-Barnett, 33, were sentenced on Thursday, by U.S. District Judge David Bunning, to 204 months and 138 months, respectively, for possession with intent to distribute 500 grams or more of methamphetamine.  Gullion was also sentenced for possession of a firearm in furtherance of the drug trafficking.

According to their plea agreements, law enforcement conducted a traffic stop on a vehicle occupied by Gullion and Simpson-Barnett, finding two bags of fentanyl, a loaded syringe on the passenger floorboard, and three bags of a crystal substance later confirmed to be 722.8 grams of methamphetamine.  Law enforcement also seized multiple safes in the vehicle, one containing a bag of 27 grams of methamphetamine, a handgun with an extended magazine, other drug paraphernalia, miscellaneous pills, and $5,509.04.

Gullion and Simpson-Barnett both admitted to their roles in conspiring to distribute the controlled substances for approximately two months.  Gullion claimed ownership of the firearm and admitted that he possessed the firearm in furtherance of drug trafficking.

Under federal law, Gullion and Simpson-Barnett must serve 85 percent of their prison sentences.  Upon their release from prison, they will both be under the supervision of the U.S. Probation Office for five years. 

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division; and Chief Brian Valenti, Covington Police Department, jointly announced the sentence.

The investigation was conducted by the DEA and Covington Police Department.  Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the United States.

— END —

LEXINGTON, Ky. – A former Anderson County High School Band Director and teacher, Patrick Howard Brady, 38, was sentenced on Thursday, by U.S. District Judge Karen Caldwell, to 25 years in prison, for production of child pornography.

Brady was a teacher at Anderson County High School and served as the band director until May 15, 2023.  According to his plea agreement, Brady used text messaging, FaceTime, and a social media app (VSCO), to engage a minor into a romantic and sexual relationship.  Specifically, beginning in the summer of 2022, Brady and the victim engaged in a sexually explicit relationship, starting via text, calls, and FaceTime, eventually occurring in person, multiple times, including at the high school.

Law enforcement began investigating the relationship between Brady and the victim in May 2023.  When law enforcement arrested Brady and seized his cell phone, he had removed the VSCO application from his phone.  Brady admitted that, on two or more occasions, he knowingly used a minor victim to engage in sexually explicit conduct for the purpose of transmitting live visual depictions of that conduct.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; Russell Coleman, Kentucky Attorney General; Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Sheriff Joe Milam, Anderson County Sheriff's Office, jointly announced the sentence.

The investigation was conducted by the FBI, Kentucky Attorney General’s Office, Kentucky State Police, and the Anderson County Sheriff's Office.  Assistant U.S. Attorney Mary Melton 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 Somerset, Ky., man, Jesse Kipf, 39, was sentenced to 81 months on Monday by U.S. District Judge Robert Wier, for computer fraud and aggravated identity theft.

According to his plea agreement, Kipf intentionally accessed a computer without authorization and then obtained information from a protected computer for his own private gain and in furtherance of identity theft.  Specifically, in January 2023, Kipf accessed the Hawaii Death Registry System, using the username and password of a physician living in another state, and created a “case” for his own death.  Kipf then completed a State of Hawaii Death Certificate Worksheet, assigned himself as the medical certifier for the case and certified his death, using the digital signature of the doctor.  This resulted in Kipf being registered as a deceased person in many government databases.  Kipf admitted that he faked his own death, in part, to avoid his outstanding child support obligations.

Kipf also infiltrated other states’ death registry systems, private business networks, and governmental and corporate networks using credentials he stole from real people.  He then tried to sell access to these networks to potential buyers on the dark net, an overlay network within the internet that can only be accessed with specific software, configurations, or authorization and is commonly associated with the sale of illicit goods and services.

“This scheme was a cynical and destructive effort, based in part on the inexcusable goal of avoiding his child support obligations,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “This case is a stark reminder of how damaging criminals with computers can be, and how critically important computer and online security is to us all.  Fortunately, through the excellent work of our law enforcement partners, this case will serve as a warning to other cyber criminals, and he will face the consequences of his disgraceful conduct.”

“Working in collaboration with our law enforcement partners, this defendant who hacked a variety of computer systems and maliciously stole the identity of others for his own personal gain, will now pay the price,” said Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office. “Victims of identity theft face lifelong impact and for that reason, the FBI will pursue anyone foolish enough to engage in this cowardly behavior.”

Under federal law, Kipf 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.  The damage to governmental and corporate computer systems and his failure to pay his child support obligations amounted to a total of $195,758.65.

United States Attorney Shier and Special Agent in Charge Stansbury; Russell Coleman, Attorney General of Kentucky; Anna E. Lopez, Attorney General for Hawaii; and Sheriff Bobby Jones, Pulaski County Sherriff’s Office, jointly announced the sentence.

The investigation preceding the indictment was conducted by FBI Louisville, Kentucky Attorney General’s Office, Department of the Attorney General for Hawaii, and the Pulaski County Sheriff’s Office.  Assistant U.S. Attorney Kate Dieruf prosecuted the case on behalf of the United States.

— END —

PIKEVILLE, Ky.— The former Fire Chief of the Blackberry Volunteer Fire Department (BVFD) in Pike County, Christopher Chapman, 35, pleaded guilty, on Tuesday, before U.S. District Judge Karen Caldwell to theft of public funds.

In 2021, as part of the American Rescue Plan Act, to support communities and local governments that were struggling due to the COVID-19 pandemic, the federal government distributed emergency funding to local governments to maintain vital local services.  In Spring 2022, Pike County local government authorized the distribution of $50,000 of these funds through grants that were allocated for the purchase of turnout gear for fire and rescue, along with equipment and building maintenance.  Chapman applied for these grants on behalf of BVFD, and the local government awarded the full amount of the grants.

According to his plea agreement, on April 11, 2022, Chapman created a company named Rural Public Safety Equipment, LLC. (RPSE), as the sole organizer and member, and registered it with the West Virginia Secretary of State.  Chapman then informed members of the BVFD that he could obtain fire safety equipment at cost from a safety equipment company, and he failed to disclose that he was the owner of the company.  The fire department pre-paid and ordered $76,854.50 worth of fire and safety equipment from RPSE.  Instead of using the prepayments from BVFD to fulfill the orders, Chapman never fulfilled any fire and safety equipment orders, spent all the money on his own personal use, and withdrew $61,500 in cash from the RPSE bank account.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Bruce Roberts, Interim Executive Director, Kentucky Fire Commission, jointly announced the guilty plea.

The investigation was conducted by the FBI and the Kentucky Fire Commission.  Assistant U.S. Attorney Brittany Dunn-Pirio is prosecuting the matter on behalf of the United States.

Chapman is scheduled to appear for sentencing on November 25, 2024.  He faces a maximum of 10 years in prison.  However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.

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 McKee, Ky., man, David Jason Parkey, 41, was sentenced on Monday, by U.S. District Judge Robert Wier, to 270 months in prison, for production of child pornography.

According to his plea agreement, on January 18, 2023, in a Facebook messenger conversation, Parkey exchanged a series of sexually explicit messages and images with a minor victim.  In these messages, Parkey directed the victim to take sexually explicit photos, and then send them to him, via Facebook messenger.

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

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

The investigation was conducted by the FBI and Kentucky State Police.  Assistant U.S. Attorney Jason 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. –  Richard Rogers Jr., 33, and Chad Wolf, 27, were sentenced on Friday, by Chief U.S. District Judge Danny C. Reeves, to 44 months and 39 months, respectively, for conspiracy to acquire and possess codeine and aggravated identity theft.  Rogers and Wolf were also each ordered to forfeit $57,336 – the amount of their illegal codeine resale profits.

According to their plea agreements, Rogers and Wolf conspired, over multiple years, in submitting numerous fraudulent prescriptions for Promethazine-Codeine syrup, which were sent to pharmacies in various Kentucky locations.  Neither Rogers nor Wolf had valid prescriptions for codeine cough syrup in their own name.  Instead, Rogers and Wolf acquired identity information from unsuspecting individuals – often in the form of driver’s licenses.  Rogers and Wolf also acquired DEA numbers of medical providers from others, including from physicians in Michigan and Kentucky, without the physicians’ authorization or consent.  They used this information to create fraudulent prescriptions for codeine cough syrup and organized others to retrieve the prescriptions as they were filled.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentences. 

The investigation was conducted by the FBI and DEA.  Assistant U.S. Attorney Will Moynahan prosecuted the case on behalf of the United States.

— END —

ASHLAND, Ky. – A Versailles, Ky., man, Francisco Camacho, Jr., 31, was sentenced on Wednesday, by U.S. District Judge David Bunning, to 198 months in prison, for conspiracy to distribute 400 grams or more of fentanyl and 500 grams of methamphetamine.

According to his plea agreement, Camacho agreed with others to distribute methamphetamine and fentanyl in the Eastern District of Kentucky and the Southern District of West Virginia.  During an investigation conducted by law enforcement officers from the AHIDTA Northeast Kentucky Drug Task Force, ATF, and the DEA, Camacho was identified as a source of supply of methamphetamine and fentanyl in Kentucky and West Virginia.  From March 2021 to April 2022, law enforcement officers uncovered evidence that Camacho was responsible for the distribution of over 400 grams of fentanyl and 500 grams of methamphetamine. Camacho had previously been convicted by the U.S. District Court, Eastern District of Kentucky, of conspiracy to distribute narcotics.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; Shawn Morrow, Special Agent in Charge of the ATF Louisville Field Division; and the AHIDTA NKDTF, jointly announced the sentencing.

The investigation was conducted by the DEA, the ATF, and the AHIDTA NKDTF.  Assistant U.S. Attorney Cynthia Rieker is prosecuting the case on behalf of the United States.

— END —

PIKEVILLE, Ky. –  A Vest, Ky., man, Lee Rose, 37, was sentenced on Wednesday, by Chief U.S. District Judge Danny C. Reeves, to 216 months, for distribution of 50 grams or more of methamphetamine.  

According to his plea agreement, between at least September 2023 and January 2024, Rose was selling methamphetamine in Knott County.   Specifically, on September 27, 2023, law enforcement made a controlled purchase of over 50 grams of methamphetamine from Rose.  At the time he sold this methamphetamine, Rose was on parole, for three separate prior convictions for felony trafficking in methamphetamine.  Law enforcement then engaged in additional transactions where Rose provided methamphetamine, on October 4, 2023 (for 52 grams), on October 9, 2023 (for 13 grams), and January 9, 2024 (for 56 grams). 

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Dale Richardson, Knott County Sheriff, jointly announced the sentence.

The investigation was conducted by the FBI, KSP, and Knott County Sheriff’s Office.  Assistant U.S. Attorney Drew Trimble prosecuted the case on behalf of the United States.

— END —

PIKEVILLE, Ky. – A Harold, Ky., man, Christopher Hall, 26, was sentenced on Wednesday, by Chief U.S. District Judge Danny C. Reeves, to 50 years in prison, for production and distribution of child pornography.        

According to his plea agreement, on May 29, 2022, Hall produced a video of him sexually abusing a minor.  Hall later distributed the video to others using WhatsApp.

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

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

The investigation was conducted by the FBI and Kentucky State Police.  Assistant U.S. Attorney Justin Blankenship prosecuted 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 —

FRANKFORT, Ky. – A Frankfort woman, Brittany Joyce May, 35, pleaded guilty on Thursday, before U.S. District Judge Gregory Van Tatenhove, to committing wire fraud and aggravated identity theft.

According to her plea agreement, between July 2021 and May 2023, May was employed as an administrative specialist at the Kentucky Cabinet for Health and Family Services (CHFS).  As part of her duties, May managed payments to providers who were eligible for payments under certain adoption and foster programs.  In doing so, May input provider information into the computer resource directory, including their personal identifying information and banking information.  To receive payments under these programs, providers submitted request paperwork to CHFS.  Upon receiving those requests, May would initiate payments, via a wire transfer, to the provider’s bank account.  However, when some providers did not submit the required paperwork or stopped receiving payments because their services had expired, May would instead direct funds that would have been paid to them to four bank accounts that she owned and controlled. 

To conceal these actions, May would submit false invoices, to make it appear as if the provider had requested payment.  And knowing the system would automatically send notifications to the provider’s listed address, indicating a payment had been made, May would change the provider addresses, to forward the notices elsewhere.  From July 2021 to May 2023, May used the names and/or social security numbers of 45 providers in the computer resource directory to operate her scheme, and she further opened bank accounts using the personal identifying information of two providers. 

In all, May misappropriated $444,663.77 in funds and initiated more than 540 fraudulent wire transfers to bank accounts she owned and controlled.                      

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Karen Wingerd, Acting Special Agent in Charge, Cincinnati Field Office, IRS-Criminal Investigation; and Lesley Allison, Special Agent in Charge, United States Postal Inspection Service, Pittsburgh Field Division, jointly announced the guilty plea.

The investigation was conducted by the IRS and U.S. Postal Inspection Service.  Assistant U.S. Attorney Andrea Mattingly-Williams prosecuted the case on behalf of the United States.

May is scheduled to be sentenced on November 5, 2024.  She faces a maximum of 20 years in prison for the wire fraud charge, as well as a mandatory, consecutive two-year sentence for aggravated identity theft.  However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

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LEXINGTON, Ky. –  A North Bergen, N.J., man, Jean Mejia-Garcia was sentenced on Tuesday, by U.S. District Judge Karen Caldwell, to 72 months, for conspiracy to commit money laundering and aggravated identity theft.  He was also ordered to pay $4,690,870.81 in restitution.

According to his plea agreement, from February 2022 to February 2023, Garcia worked with his co-conspirators, Nana Kwabena Amuah and Shimea McDonald, to commit money laundering.  Garcia also worked for Amuah to procure fake identity documents, establish shell companies with numerous Secretaries of State, and open bank accounts in the names of other, real people to receive funds that Amuah directed towards the accounts.  Once the money was received in those accounts, Amuah would notify Garcia of the payments and directed Garcia to bring him the stolen funds, after Garcia retained his portion.  Garcia would then wire or bring money or checks to the co-conspirators who facilitated further transfers or initiated the underlying scheme to defraud the victims.  Garcia also helped to procure fake identification cards for other coconspirators to use to open bank accounts for the purpose of laundering other victim funds.

In August 2022, using email, the coconspirators impersonated a nonprofit organization working to reduce poverty, which was working with the Lexington Fayette Urban County Government (the “City”) on a housing project.  The coconspirators then convinced a City official to wire funds owed to the nonprofit organization, to a bank account at Truist Bank.  That account was in the name of Gretson Company LLC, but coconspirator Shimea McDonald had opened that account, in the name of another person, using a fake identity card provided by Garcia.  The City wired a total of $3,905,837.05 to the Gretson Company LLC bank account at Truist Bank.  At Amuah’s direction and using checks provided by McDonald, Garcia then wrote checks, funded with the money the City had wired, to other bank accounts.  Ultimately, Truist Bank and the City were able to recover all the funds that were transmitted.

Amuah was previously sentenced to 86 months in prison, followed by three years of supervised release.  McDonald was previously sentenced to 80 months, followed by three years of supervised release.  Both were ordered to pay $4,690,870.81 in restitution.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Chief Lawrence Weathers, Lexington Police Department; jointly announced the sentence.

The investigation was conducted by the FBI and Lexington Police Department.  Assistant U.S. Attorney Kate Dieruf prosecuted the case on behalf of the United States.

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LONDON, Ky. –  A Louisville, Ky., man, Arthur Powers Jr., 44, was sentenced on Tuesday, by U.S. District Judge Robert Wier, to 250 months, for possession with intent to distribute 500 grams or more of methamphetamine.

According to his plea agreement, Powers was found to be in possession of 500 grams or more of methamphetamine that he intended to distribute to others.  Specifically, on September 10, 2023, enforcement was informed that Powers was travelling to Laurel County from Louisville to deliver five pounds of methamphetamine.  Law enforcement then stopped Powers’ vehicle and seized 4.5 pounds of methamphetamine, which he later admitted he was bringing into the area to distribute.

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

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

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

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LEXINGTON, Ky. –  Two Lexington men, Hussein Qasim, 34, and Ibrahim Qasim, 29, were sentenced on Monday, by U.S. District Judge Karen Caldwell, to 57 months and 45 months, respectively, for their roles in a money laundering conspiracy.  Hussein and Ibrahim Qasim were also each ordered to pay $3,274,690 in restitution.

According to their plea agreements, the Qasims’ co-conspirators, who lived outside the United States, targeted luxury car dealerships via email and phone calls in which they impersonated real employees of other dealerships.  The co-conspirators would deceive the luxury car dealerships into purchasing expensive vehicles that the co-conspirators did not own and would not deliver.  At the co-conspirators’ direction, the luxury car dealership victims sent payments to specific bank accounts opened by the Qasims, who then collected the money and transferred it through a sophisticated web of financial transactions, which eventually ended with investments, payments for personal expenditures, and payments to accounts outside the United States, often in crypto-currency, for the benefit of the co-conspirators.

Between June 2022 and December 2023, the Qasims and other co-conspirators were responsible for laundering over $6 million in victim funds, which had been sent from at least seven different luxury car dealerships across the country.

Under federal law, the Qasims must serve 85 percent of their prison sentences.  Upon their release from prison, they will both be under the supervision of the U.S. Probation Office for three years.  

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and 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 Kate Dieruf prosecuted the case on behalf of the United States.

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COVINGTON, Ky. –  A Cincinnati man, Isaiah M. Smith, 24, was sentenced on Friday, by U.S. District Judge David Bunning, to 72 months in prison, for possession and transfer of a machine gun.   

In pleading guilty, Smith admitted to collaborating with Demarco Sturgeon and Denico Hudson to possess and transfer numerous machine gun conversion devices.  Smith also admitted to manufacturing the plastic conversion devices in Ohio, and to selling many of them to Sturgeon in Kentucky.  Sturgeon then sold the bulk of them to Hudson, who would pay for them with money and drugs, and the two of them distributed the devices to members of two violent gangs in Cincinnati.  Members of these gangs were connected to drug trafficking and numerous shootings.

Smith further admitted to distributing over 25 machine gun conversion devices, from 2022 to 2023.  Specifically, on April 4, 2023, law enforcement conducted a search of Smith’s residence and seized a machine gun conversion device, as well as a loaded handgun.  Smith confirmed that he had manufactured and distributed over 80 machine gun conversion devices and assisted agents in seizing the printers and computers he used to make them.

Sturgeon was previously sentenced to 130 months and five years of supervised release; Hudson was sentenced to 108 months in prison and three years of supervised release.

“Machine gun conversion devices are incredibly dangerous, and an acute threat to the safety of our communities,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky.  “Worse yet, they are more prevalent than ever.  By themselves, these devices are illegal machine guns; and when used, they are capable of rapid and appalling damage.  We simply must do everything we can to combat this alarming trend, prioritize the effort to eliminate these devices, and prosecute those who illegally make, possess, and sell them.”

“Machine gun conversion devices are a significant threat to our communities.  Law enforcement in Kentucky and across the United States are encountering them with alarming frequency,” said ATF Special Agent in Charge Shawn Morrow of the Louisville Division. “These conversion devices, which can fire hundreds of rounds of ammunition a minute, are illegal and incredibly dangerous, especially in the hands of gang members and drug dealers.  ATF and the U.S. Attorney’s Office will continue to prioritize these investigations with our local partners to shutdown supply channels and keep these deadly devices off our streets.”

Under federal law, Smith and his co-defendants must serve 85 percent of their prison sentences.  Upon his release from prison, Smith will be under the supervision of the U.S. Probation Office three years.    

U.S. Attorney Shier; SAC Morrow; Director Scott Hardcorn, Northern Kentucky Drug Strike Force; and Chief Teresa Theetge, jointly announced the sentence.

The investigation was conducted by ATF, Northern Kentucky Drug Strike Force, and Cincinnati Police Department.  Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the United States.

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LONDON, Ky. – A Nicholasville, Ky., man, Bradley Lawson, 42, and a Corbin, Ky., woman, Amy Johnson, 39, were sentenced on Tuesday, by U.S. District Judge Claria Horn Boom, to 180 months and 68 months, respectively, for conspiracy to distribute 500 grams or more of methamphetamine.

According to court documents, in July 2022, Lawson developed relationships with multiple sources of supply of methamphetamine, from whom he regularly obtained methamphetamine for resale.  Lawson then worked with his co-defendants, Amy Johnson, Jesse Taylor, and Michael Nakonechny, to obtain and distribute the methamphetamine in Laurel and Whitley Counties.  Specifically, in September 2022, law enforcement conducted a search and discovered two pounds of methamphetamine that they intended to distribute.  Law enforcement also found Lawson in possession of a loaded firearm.  Both Lawson and Johnson had previously been convicted of federal drug felony offenses, and Lawson was still on federal supervised release at the time on the commission of these new offenses.  Lawson received an additional, consecutive sentence for his supervised release violation, of twelve months and a day.

Nakonechny was previously sentenced to 163 months and Taylor was previously sentenced to 98 months. 

Under federal law, Lawson and Johnson must serve 85 percent of their prison sentences.  Upon his release from prison, Lawson will be under the supervision of the U.S. Probation Office for 10 years, and Johnson will be under supervision for five years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Sheriff John Root, Laurel County Sheriff’s Office, jointly announced the sentence.

The investigation was conducted by the ATF, KSP, and Laurel County Sheriff’s Office.  Assistant U.S. Attorney Drew Trimble prosecuted the case on behalf of the United States.

— END —

A Kentucky man was arrested today and charged with federal hate crime and firearms offenses for threatening a Palestinian American man with a loaded gun.

According to the indictment that was unsealed this morning, on or about March 28, Melvin P. Litteral III used force or the threat of force to intimidate and interfere with the victim – a Palestinian American man and practicing Muslim identified in the indictment by the initials O.S. – because of O.S.’s race, color, religion and/or national origin, and because O.S. was enjoying the goods, services and facilities of a local restaurant. The indictment also includes a weapons charge, alleging that the defendant brandished a firearm during the offense.

If convicted of the hate crime offense, Litteral faces a maximum penalty of 10 years in prison and a fine of up to $250,000. If convicted of the firearms charge, Litteral faces a mandatory minimum penalty of seven years in prison, to run consecutively to any sentence imposed for the hate crime offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.

The FBI Louisville Field Office is investigating the case.

Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Katherine G. DeVar of the Civil Rights Division are prosecuting the case.

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

LEXINGTON, Ky. – A Lexington man, Khmari Smith, 21, was sentenced on Tuesday, by Chief U.S. District Judge Danny Reeves, to 32 years, 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, 23, were found in one vehicle, with no evidence of drugs.  In the other vehicle, Smith’s co-defendant, Brianna Hanspard, 29, 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 is scheduled to be sentenced at a date yet to be determined by the Court. Hanspard was previously sentenced to 84 months in prison.

Under federal law, Khmari Smith and Hanspard must serve 85 percent of their prison sentences.  Upon their release from prison, they will be under the supervision of the U.S. Probation Office for five years. 

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentences.

The investigation was conducted by the DEA, KSP, and Lexington Police Department.  Assistant U.S. Attorney Roger West prosecuted the case on behalf of the United States.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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LONDON, Ky. – A Hamilton, Ohio, man, Charles Sparks, 60, was sentenced on Tuesday, by U.S. District Judge Robert Wier, to 200 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 his plea agreement, on April 4, 2023, law enforcement conducted a traffic stop on a vehicle driven by Sparks and recovered approximately 12 ounces of methamphetamine, digital scales, and a loaded firearm.  In pleading guilty, Sparks admitted to transporting the methamphetamine to sell it and to possessing the firearm in furtherance of his drug trafficking activities.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Sheriff John Root, Laurel County Sheriff’s Office, jointly announced the sentence.

The investigation was conducted by the ATF, KSP, and Laurel County Sheriff’s Office.  Assistant U.S. Attorney Pearce Nesbitt prosecuted the case on behalf of the United States.

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

— END —

PIKEVILLE, Ky. – A Pikeville doctor, Dr. Jason Stamper, 52, was sentenced on Monday, by Chief U.S. District Judge Danny Reeves, to 32 months for illegally prescribing amphetamines.

According to his plea agreement, between April 15, 2022, and September 27, 2022, law enforcement made six undercover patient visits to Stamper’s clinic.  At each of those visits, Stamper prescribed Ritalin and Adderall to the undercover officer, without a legitimate medical purpose.  Stamper performed no medical examinations, did not inquire into the legitimate medical need for the prescriptions, took no action when the undercover officer failed to secure blood work for five visits, increased doses, and switched between the Ritalin and Adderall without explanation.

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

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

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

— END —

ASHLAND, Ky. – An Ashland, man, Christopher Prince, 43, was sentenced on Monday, by U.S. District Judge David Bunning, to 205 months for distribution of 50 grams or more of methamphetamine, possession with intent to distribute 500 grams or more of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.

In May 2023, law enforcement officers with ATF, DEA, and the Northeast Kentucky Drug Task Force, received information regarding the drug distribution activities of Christopher Prince.  During the ensuing investigation, law enforcement seized approximately 250 grams of crystal methamphetamine (actual methamphetamine), 3 pounds of methamphetamine, 2.5 grams of fentanyl and 2 firearms.  Prince admitted that he possessed the firearms in furtherance of his drug trafficking activity.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; and Director Scott Hardcorn, Northeast Kentucky Drug Task Force, jointly announced the sentence.

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

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

— END —

LEXINGTON, Ky. – A Lexington man, Neal Harris, 57, was sentenced on Monday, by U.S. District Judge Robert Wier, to 37 months in prison, for eight counts of wire fraud, for obtaining Economic Injury Disaster Loans under false pretenses.  His co-defendant, Kelly Harris, 64, was sentenced on July 2, 2024, to 46 months in prison, also for eight counts of wire fraud.   

In March 2024, following a four-day jury trial, the Harrises were convicted of all the wire fraud charges against them.  According to the evidence at trial, from May 5, 2020 through July 25, 2020, the Harrises submitted materially false applications to the Small Business Administration (SBA), to obtain Economic Injury Disaster Loans (EIDL), for five businesses they claimed were impacted by the COVID-19 pandemic.

In total, they claimed to run five businesses that had done a total of $1.4 million in business in 2019.  In reality, none of the businesses were operational in 2019.  The only business that existed prior to the COVID-19 pandemic, Ruby Bailey Family Service Center, had been dissolved in 2019.  Despite this, the Harrises sought more than $450,000 in loans to which they were not entitled.  They obtained $357,600 in disaster relief funds from the SBA for three of the businesses.  A local bank detected the fraud in August 2020 and secured the funds remaining in the business accounts.  After the bank returned the fraudulently obtained funds, Neal and Kelly Harris then submitted additional fraudulent documentation to the SBA, attempting to get these funds back.  At sentencing, both defendants were found to have obstructed justice by testifying falsely at the trial.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service, Pittsburgh Field Division; and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division, jointly announced the sentencing.

The investigation was conducted by the USPIS and Treasury Inspector General for Tax Administration.  Assistant U.S. Attorney Kate Smith 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.

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COVINGTON, Ky. – A Morehead, Ky., man, Andrew Zaheri, 40, was sentenced on Monday, by U.S. District Judge David Bunning, to 22 years in prison, for production of child pornography.

According to his plea agreement, in the summer of 2022, Zaheri began a sexual relationship, with a minor student at the high school where he was employed as a teacher.  The relationship continued through the school year and included Zaheri engaging in sexual acts with the victim during school hours.  Zaheri admitted that, during the course of the relationship, he produced sexually explicit images and videos of the minor victim using his cell phone.

Under federal law, Zaheri 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 22 years.

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

The investigation was conducted by the FBI and Kentucky State Police.  Assistant U.S. Attorney Erin Roth 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.

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FRANKFORT, Ky. – A Lexington man, Eeston Thomson, 22, was sentenced on Wednesday, by U.S. District Judge Gregory Van Tatenhove, to 240 months in prison, for distribution of acetylfentanyl and fentanyl resulting in an overdose death.

According to his plea agreement, on June 26, 2022, law enforcement responded to reports of an unresponsive victim.  When law enforcement arrived, the victim was pronounced dead, and it was suspected that he died from a fentanyl overdose.  Law enforcement searched the residence and found piece of a blue pill on the kitchen counter, which was later confirmed to contain acetylfentanyl and fentanyl.

Law then enforcement searched the victim’s phone and found an Instagram conversation between the victim and Thomson from June 25, 2022, discussing the purchase of pills.  When Thomson found out about the victim’s death, he admitted to a friend that he had sold the victim the pills, and believed he was responsible for his death.

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

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

The investigation was conducted by the DEA and the Lexington Police Department. Assistant U.S. Attorney Emily Greenfield is prosecuting the case on behalf of the United States.

— END —

FRANKFORT, Ky. – A Lexington man, David Hager, 27, was sentenced on Wednesday, by U.S. District Judge Gregory Van Tatenhove, to 120 months, for two counts of possession of a firearm by a convicted felon, one count of possession of a machine gun, and one count of possession with intent to distribute fentanyl.

In May 2023, agents with ATF, received information that David Hager was distributing fentanyl and firearms.  During the investigation, ATF purchased 15 firearms and a machine gun conversion device from Hager.  ATF also purchase approximately 10 grams of fentanyl from Hager.  After these purchases, a search warrant was executed at Hager’s residence, where agents located three additional firearms (one of which was stolen), multiple high-capacity magazines, suspected explosive devices, and approximately 37 grams of fentanyl.  Hager had previously been convicted of a felony and was prohibited from possessing a firearm.           

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

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

The investigation was conducted by ATF, with assistance from the Lexington Police.  Assistant U.S. Attorney Cynthia Rieker prosecuted the case on behalf of the United States.

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

— END —

FRANKFORT, Ky. – A Lexington, Ky., man, Darnell Thomas, Jr. 32, was sentenced on Monday, by U.S. District Judge Gregory Van Tatenhove, to 240 months, for conspiracy to distribute 10 grams or more of fluorofentanyl, 40 grams or more of a mixture containing fentanyl, and heroin, and distribution of 40 grams or more of fentanyl.

According to his plea agreement, between October and December 2022, Thomas conspired with his co-defendants, Melvin Coffey, 31, and Jaden Bradshaw, 23, to distribute fluorofentanyl, fentanyl, and heroin.  Specifically, law enforcement utilized a confidential informant to purchase multiple ounces of the controlled substances, on five different occasions in Fayette and Madison Counties.  For each of the five occasions, Thomas admitted to either personally conducting the drug sales or directing his co-defendants to do so, on his behalf.  As part of his guilty plea, Thomas also acknowledged that he had previously been convicted of trafficking heroin and cocaine in 2016 and 2018, respectively.

Coffey was previously sentenced to 57 months in prison, followed by three years of supervised release.  Bradshaw was sentenced to 24 months, followed by 3 years of supervised release.

Under federal law, Thomas and his co-defendants must serve 85 percent of their prison sentences.  Upon Thomas’ release from prison, he will be under the supervision of the U.S. Probation Office for 8 years. 

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, 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.  Assistant U.S. Attorney Paco Villalobos prosecuted the case on behalf of the United States.

— END —

FRANKFORT, Ky. – A Lawrenceburg, Ky., man, Daniel Hudson, 36, was sentenced on Tuesday, by U.S. District Judge Gregory Van Tatenhove, to 240 months in prison, for distribution of fentanyl resulting in an overdose death.

According to his plea agreement, on March 24, 2022, Hudson was booked into the Franklin County Region Jail, for state offenses.  At the time, Hudson had approximately six grams of a fentanyl mixture concealed upon his person, and he was able to smuggle the drugs into the facility.  Ultimately, Hudson then distributed the fentanyl, and had buyers (or individuals on their behalf) send payments, via Cash App, to an account held by his friend.  

Specifically, on March 29, 2022, Hudson distributed fentanyl to an inmate who overdosed, but was successfully resuscitated with the administration of Narcan by jail personnel. Thereafter,  on March 31, 2022, Hudson distributed fentanyl that was used by another inmate, who was later found deceased in his cell.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; and Chief Dustin Bowman, Frankfort Police Department, jointly announced the sentencing.

The investigation was conducted by the DEA and the Frankfort Police Department. Assistant U.S. Attorney Todd Bradbury is prosecuting the case on behalf of the United States.

— END —

FRANKFORT, Ky. – A Lexington, Ky., man, Chris Williams, 29, was sentenced on Monday, by U.S. District Judge Gregory Van Tatenhove, to 200 months, for possession with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute 10 grams or more of a fentanyl analogue, distribution of fentanyl, and two counts of possession of a firearm in furtherance of drug trafficking. 

In August 2022, detectives with the Kentucky State Police received information that Chris Williams was distributing large quantities of fentanyl.  During a month-long investigation, KSP purchased approximately 74 grams of fentanyl from Williams.  In September 2022, detectives seized a loaded firearm, approximately 76 grams of fentanyl, and approximately 20 grams of pressed fentanyl analogue pills from Williams.  Williams admitted he possessed the firearm in furtherance of his drug trafficking.   

Then, in August 2023, detectives with the Lexington Police received information that Williams was again distributing narcotics.  In September 2023, following a second investigation, a search warrant was executed at Williams’ residence.  There, detectives located approximately 60 grams of fentanyl and two firearms.  Williams again admitted he possessed the firearms in furtherance of drug trafficking.

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

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.

The investigation was conducted by DEA, KSP, and Lexington Police Department.  Assistant U.S. Attorney Cynthia Rieker prosecuted the case on behalf of the United States.

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

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LEXINGTON, Ky. – U.S. Attorney Carlton S. Shier, IV has announced criminal charges against two separate defendants, in connection with alleged schemes to defraud Medicare and Medicaid, and to fraudulently prescribe controlled substances.  The charges filed in federal court are part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action. The charges stem from one scheme to cause claims for prescription drugs to be submitted, despite knowing the drugs were never dispensed to pharmacy customers, and another scheme to use the name and DEA registration number of another provider, without that provider’s knowledge, in order to issue prescriptions.

“When government healthcare programs are fraudulently deprived of critical resources and powerful drugs are illegally prescribed, it creates real damage,” said United States Attorney Shier.  “It steals taxpayer money, and it enables the devastating cycle of drug abuse in fester in our communities.  Simply having a professional license cannot be a shield from the consequences of this type of criminal conduct.”

“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” said Attorney General Merrick B. Garland. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits.”

The charges announced today by U.S Attorney Shier are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 147 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.5 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the government, in connection with the enforcement action, seized over $150 million in cash, luxury vehicles, gold, and other assets.

The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Southern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Middle District of Tennessee, Northern District of Texas, Southern District of Texas, Eastern District of Tennessee, Eastern District of Virginia, and Southern District of West Virginia; and the State Attorney Generals’ Offices for California, New York, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website.

The Eastern District of Kentucky worked with the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period:  the DEA; the Department of Health and Human Services Office of Inspector General (HHS-OIG); the Kentucky Cabinet for Health and Family Services, Office of Inspector General, Drug Enforcement and Professional Practices Branch; the Kentucky Board of Pharmacy; and the IRS.

The following individuals have been charged in the Eastern District of Kentucky:

Stephanie Collins, 57, of Corbin, Kentucky, was charged by information with health care fraud in connection with a scheme to bill Medicare and Medicaid for prescription drugs that were never dispensed by her pharmacy.  As alleged, between January 2014 and June 2020, Collins, the owner of Stephanie’s Down Home Pharmacy, knowingly and willfully caused claims for prescription drugs to be submitted to those health care programs despite knowing that the drugs at issue were never dispensed to pharmacy customers, and obtained approximately $730,000 as a result of the scheme.  The case is being prosecuted by Assistant U.S. Attorney Andy Smith.

Don V. Bryson, 69, of Oil Springs, Kentucky, was charged by information with a conspiracy to unlawfully distribute controlled substances by using the name and DEA registration number of another physician.  As alleged, Bryson was a physician who had surrendered his medical license following a Kentucky Board of Medical Licensure investigation into his prescribing practices. Bryson continued to work as a “medical consultant” at a clinic in Paintsville, Kentucky owned by a co-conspirator, which utilized locum tenens providers to issue controlled substance prescriptions. In September 2021, Bryson agreed with the clinic owner to use the name and DEA registration number of a locum tenens provider no longer affiliated with the clinic, without that provider’s knowledge, in order to issue approximately 79 hydrocodone prescriptions, totaling approximately 6,915 hydrocodone pills.  The case is being prosecuted by Assistant U.S. Attorney Andy Smith.

A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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A former Kentucky sheriff’s deputy was sentenced today to 110 months in prison for violating the constitutional rights of multiple people he arrested during his tenure as a law enforcement officer.

Former Boyle County Sheriff’s Deputy Tanner M. Abbott, 31, was convicted by a federal jury in March of five felonies and one misdemeanor related to using excessive force against four arrestees, performing an illegal search and writing and conspiring to write false police reports to cover up his abuse.

“This defendant habitually and routinely abused his authority and used his badge to shield himself from accountability for years,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence should send a loud message that such abuses by law enforcement will not be tolerated. The Justice Department is steadfast in its commitment to hold law enforcement accountable when they violate the civil and constitutional rights of people in their country.”

“Instead of protecting and serving the community, the defendant was physically abusing people — even bragging about the injuries he caused,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “That is not law enforcement; that is brazen criminal conduct. The community deserved better. Fortunately, he now has a criminal sentence that he deserves.”     

At the sentencing hearing, the government presented evidence that the crimes for which Abbott was convicted were part of a larger pattern of abuse of authority spanning his career. An investigator testified that, during its two-year investigation of numerous allegations against Abbott, the FBI discovered evidence that Abbott frequently used excessive force against suspects. This evidence included text messages recovered from Abbott’s work-issued cell phone in which Abbott bragged, sometimes in graphic and vulgar terms, about causing injuries to people he had arrested. The government also presented cell phone evidence showing that Abbott sometimes took photographs of injuries he had caused and sent the photographs to friends and acquaintances, but never included or submitted them in official police documents. Two additional witnesses testified that they had been physically abused by Abbott while being arrested.

The court also found that Abbott obstructed justice during his trial by testifying falsely in his own defense.

The FBI Louisville Field Office investigated the case.

Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.

A former Kentucky sheriff’s deputy was sentenced today to 110 months in prison for violating the constitutional rights of multiple people he arrested during his tenure as a law enforcement officer.

Former Boyle County Sheriff’s Deputy Tanner M. Abbott, 31, was convicted by a federal jury in March of five felonies and one misdemeanor related to using excessive force against four arrestees, performing an illegal search and writing and conspiring to write false police reports to cover up his abuse.

“This defendant habitually and routinely abused his authority and used his badge to shield himself from accountability for years,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence should send a loud message that such abuses by law enforcement will not be tolerated. The Justice Department is steadfast in its commitment to hold law enforcement accountable when they violate the civil and constitutional rights of people in their country.”

“Instead of protecting and serving the community, the defendant was physically abusing people — even bragging about the injuries he caused,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “That is not law enforcement; that is brazen criminal conduct. The community deserved better. Fortunately, he now has a criminal sentence that he deserves.”     

At the sentencing hearing, the government presented evidence that the crimes for which Abbott was convicted were part of a larger pattern of abuse of authority spanning his career. An investigator testified that, during its two-year investigation of numerous allegations against Abbott, the FBI discovered evidence that Abbott frequently used excessive force against suspects. This evidence included text messages recovered from Abbott’s work-issued cell phone in which Abbott bragged, sometimes in graphic and vulgar terms, about causing injuries to people he had arrested. The government also presented cell phone evidence showing that Abbott sometimes took photographs of injuries he had caused and sent the photographs to friends and acquaintances, but never included or submitted them in official police documents. Two additional witnesses testified that they had been physically abused by Abbott while being arrested.

The court also found that Abbott obstructed justice during his trial by testifying falsely in his own defense.

The FBI Louisville Field Office investigated the case.

Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.

LEXINGTON, Ky. – Taylor Drug Store, a pharmacy located in Pineville, Kentucky, agreed to pay $94,432.50 in civil penalties to resolve allegations that it failed to comply with recordkeeping requirements of the Controlled Substances Act (“CSA”).

Under the CSA, pharmacies authorized to possess controlled substances are required to maintain complete and accurate records of its inventory, including records of when the controlled substances are sold, distributed to patients, or disposed.  The U.S. Drug Enforcement Administration (“DEA”) has the authority to inspect the records of these pharmacies and verify that their controlled substance records are complete and accurate in compliance with the CSA.

In this case, the Government alleged that Taylor Drug Store violated the CSA by failing to maintain complete and accurate records of its controlled substance inventories from August 2019 to August 2021.  In an audit performed by the DEA, Taylor Drug Store’s records did not account for the dispensation or disposal of over 4,500 dosage units of highly addictive substances, including hydrocodone, oxycodone, buprenorphine, and alprazolam.

The recordkeeping provisions of the CSA are designed to protect the public from the dangers posed by highly addictive or dangerous controlled substances, such as opioids, being diverted into the illicit market.  The CSA creates a closed system that tracks controlled substances from manufacture through distributor, to the ultimate end-user, allowing the DEA to monitor the flow of controlled substances in the United States at every juncture.  When a pharmacy fails to maintain complete and accurate records, the system is at risk for illegal diversion into the community.

“These procedures are critical to public safety and pharmacies simply must keep track of these controlled substances,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Especially in areas like ours, that are acutely affected by severe drug abuse, these recordkeeping requirements play an essential role in ensuring that controlled substances maintained by pharmacies are not ultimately diverted for illegitimate purposes.”

“As DEA registrants dispensing controlled substances, pharmacies have an obligation to maintain accurate recordkeeping in accordance with the Controlled Substances Act, and Taylor Drug Store fell short of their obligation,” said Erek Davodowich, Acting Special Agent in Charge of the Drug Enforcement Administration’s Louisville Division. “A substantial fine, as well as the implementation of corrective measures, should ensure that Taylor Drug Store meets the CSA’s mandatory recordkeeping requirements going forward.”

The DEA and Taylor Drug Store also entered into a Memorandum of Agreement as part of the settlement.  Taylor Drug Store agreed to submit compliance reports to DEA and to provide employee training on the identification and reporting of suspected drug abuse or diversion.

The settlement considered the penalties associated with the alleged violations, as well as Taylor Drug Store’s financial ability-to-pay.

The Federal Government is committed to combating the prescription opioid crisis by enforcing the requirements of the Controlled Substances Act that prevent the illegal diversion of opioids. Anyone with concerns about prescription drug diversion can report them to the DEA, by submitting a tip at https://www.dea.gov/submit-tip.

This case was investigated by the Drug Enforcement Administration’s London Resident Office Diversion Group.  Assistant United States Attorney Katie Sheridan represented the United States. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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