Southern District of West Virginia

Charleston, W.Va. – Daniel B. Moore, age 60, of Charleston, West Virginia pled guilty today before U.S. District Judge John T. Copenhaver, Jr., to aiding and abetting the distribution of oxycodone.  During the plea hearing, Moore admitted that on February 25, 2013, he assisted in the sale of 47 oxycodone pills, also called “roxycodone,” for $1,600 to a confidential informant working with the Metro Drug Unit.  The drug deal took place at Moore’s home on Kirkwood Drive in Charleston. Following the drug deal, police searched Moore’s home where they retrieved the money that the confidential informant had used to buy the drugs.  Police also found more oxycodone pills intended for distribution in the Charleston area.  Moore faces up to 20 years imprisonment and a $1,000,000.00 fine when he is sentenced on September 15, 2014. 

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. 

Charleston, W.Va. – Christopher Swann, 24, of Port William, Ohio, was sentenced today to six months’ imprisonment and six months’ home confinement for his involvement in a heroin conspiracy where he purchased heroin in Ohio for distribution in West Virginia.  Swann pled guilty in March of 2014 and admitted that he made three trips to Ohio to purchase heroin for resale in West Virginia.  Swann was sentenced by United States District Judge John T. Copenhaver who made it a specific requirement of Swann’s sentence that he work at least 40 hours per week after he completes his period of incarceration.  

This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District .

CHARLESTON, W.Va. – Former Mingo County circuit judge Michael Thornsbury was sentenced today to four years and two months in federal prison, United States Attorney Booth Goodwin announced. The sentence comes after Thornsbury admitted his role in a conspiracy to coerce a local drug defendant, George White, into firing his defense counsel. According to Thornsbury, he and other Mingo officials, including former county commissioner David Baisden, former prosecuting attorney Michael Sparks, and former sheriff Eugene Crum, learned that White was prepared to testify that then-Sheriff Crum had illegally received prescription pain medication and obtained unlawful campaign contributions. In order to protect Crum from the impact of White’s allegations, including possible federal investigation, Thornsbury, Baisden, Sparks, Crum, and others conspired to pressure White into firing his defense attorney and replacing him with another attorney handpicked by the conspirators. After switching lawyers, White dropped his allegations against Crum and was sentenced to up to fifteen years in state prison.

"Mr. Thornsbury's conduct was shocking and appalling,” said U.S. Attorney Goodwin. “It was worthy of a stiff sentence. I’d like to see this whole episode be a call to action for all of us to make sure that this ‘Boss Hogg’ style of politics is a thing of the past—because it simply can’t be a part of our future."

In August 2013, a federal grand jury also charged Thornsbury with conspiring to frame the husband of a woman with whom he was in a romantic relationship. In imposing today’s sentence, United States District Judge Thomas E. Johnston compared Thornsbury’s abuses of office to the actions of a Third World dictator.

With today’s sentence, Thornsbury becomes the third former Mingo official sent to federal prison in a wide-ranging federal corruption probe. He joins Baisden, sentenced in January to 20 months’ imprisonment, and former Mingo County chief magistrate Dallas Toler, sentenced in March to 27 months in prison. All three officials resigned their offices after being charged with federal crimes. Sparks, the fourth official charged in the investigation, has also resigned as a result of the charge against him and is scheduled to be sentenced July 7, 2014.

The investigation of corruption in Mingo County is being conducted by the Federal Bureau of Investigation and the West Virginia State Police. Counsel to the United States Attorney Steven R. Ruby and Assistant United States Attorney C. Haley Bunn are in charge of the prosecutions.

Click here to hear an audio clip from U.S. Attorney Goodwin.

BECKLEY, W.Va. –  United States Attorney Booth Goodwin announced today that Thomas Glenn Speck, 37, of Fostoria, Michigan, was sentenced in federal court in Beckley to four years in prison for being a felon in possession of a firearm.  Speck pleaded guilty in January 2014, admitting that on March 28, 2012, he possessed a 12-gauge shotgun at a residence where he was staying in Harper, Raleigh County, West Virginia.  The firearm was found during an investigation of a confrontation between members of the Avengers Motorcycle Club and West Virginia State Troopers.  Speck is prohibited from possessing firearms because he was convicted of the felony offenses of unarmed robbery and second degree home invasion in Michigan in 1999.  He is currently serving a prison sentence of three to ten years in Michigan on a 2012 conviction of third degree fleeing and eluding a police officer.  The federal sentence will be served after the Michigan sentence is complete.

Speck’s sentence was imposed by United States District Judge Irene C. Berger.  The case was investigated by the West Virginia State Police and the Federal Bureau of Investigation.  The prosecution was handled by Assistant United States Attorney John File.

BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Teruko Miller, 29, of Stanaford, West Virginia, pleaded guilty in federal court in Beckley to distributing heroin.  Miller admitted that on January 29, 2014, she sold heroin to a person who was cooperating with law enforcement authorities.  The drug deal took place on Stanaford Road in Beckley, West Virginia. 

Miller faces up to 20 years in prison and a $1,000,000 fine.  United States District Judge Irene C. Berger has scheduled Miller’s sentencing hearing for September 18, 2014. 

The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.

This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates.  The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.  

CHARLESTON, W. Va. – Keary A. Drake, 45, of Charleston, was sentenced today to five months in prison followed by five months of home confinement for being a felon in illegal possession of firearms, United States Attorney Booth Goodwin announced.  The firearms have been returned to their lawful owner.

Drake, along with Lucas Lynch, a co-conspirator, entered into a scheme to sell two firearms and split the proceeds of the sale.  Drake is prohibited from possessing any guns due to a prior grand larceny felony conviction from April 2, 2002.  On September 8, 2013, Drake and Lynch drove to a St. Albans home where they picked up two guns.  While driving through St. Albans, St. Albans Patrolman Phillip Bass attempted to pull over Drake for a traffic infraction.  Both guns (a Bushmaster .223 rifle and Ithaca shotgun) were in Drake’s car at the time.  Drake did not immediately pull over.  Lynch jumped from Drake’s car around Rock Lake, South Charleston.   Drake continued to evade police until his car engine malfunctioned in South Charleston and he was forced to stop.  Drake gave a statement to law enforcement admitting his participation in the scheme and that he knew he was not permitted to possess the firearms.  Lynch, Drake’s co-conspirator, also pleaded guilty and is scheduled to be sentenced on July 9, 2014.  Lynch faces up to 10 years’ incarceration and a $250,000 dollar fine. 

The St. Albans Police Department conducted the investigation, assisted by the United States Bureau of Alcohol, Firearms and Tobacco Enforcement.  Assistant United States Attorneys Erik S. Goes and Jennifer Rada prosecuted the matter on behalf of the United States.  United States District Judge Thomas E. Johnston imposed today’s sentence.

CHARLESTON, W.Va. – A Nicholas County couple who broke into Johnson’s Sporting Goods in Summersville and stole firearms pleaded guilty to federal firearms charges, announced U.S. Attorney Booth Goodwin.  Matthew England, 28 and Lyndsey England, 26, pleaded guilty to possession of stolen firearms before the United States District Judge John T. Copenhaver, Jr. in Charleston.

On September 26, 2011, officers from the Summersville Police Department responded to an alarm at Johnson’s Sporting Goods on Webster Road.  Upon arrival they saw signs of forced entry into the business.  The owner reported that 14 firearms had been stolen.  Several of the firearms were recovered during investigations of other crimes, and in 2013, police traced the stolen firearms to the Englands.  Both Matthew and Lyndsey England admitted stealing the firearms when questioned by authorities. 

Each defendant faces up to 10 years in federal prison when sentenced.  Matthew England entered his guilty plea on May 8, 2014 and is scheduled to be sentenced on August 27, 2014.  Lyndsey England entered her plea today and is scheduled to be sentenced on August 27, 2014.

The Summersville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation.  Assistant United States Attorney, Joshua Hanks is in charge of the prosecution.

CHARLESTON, W.Va. – A Parkersburg man, previously convicted of manufacturing a controlled substance, was sentenced today to the maximum statutory term of 10 years in federal prison, announced U.S. Attorney Booth Goodwin.  Alan Keith Philpott, 46, pleaded guilty in February of 2014 to possessing 26 firearms in spite of his status as a convicted felon.

On November 1, 2012 and March 21, 2013 police executed search warrants at Philpott’s residence on Elm Tree Drive near Parkersburg.  During the first search, police seized 22 firearms – including two stolen firearms, oxycodone, hydrocodone, diazepam, alprazolam, approximately three pounds of marijuana, “bath salts,” and U.S. currency.  During the second search warrant, police seized an additional four firearms, hydrocodone, marijuana, and “bath salts.”  Philpott had been previously convicted in December of 2006 in the Circuit Court of Wood County of the felony offense of manufacturing a controlled substance.

The West Virginia State Police, Parkersburg Police Department, and the Federal Bureau of Investigation conducted the investigation.  Assistant United States Attorney Joshua Hanks is in charge of the prosecution.

Charges Cover Widespread Multi-Million Dollar Fraud Uncovered In “Pay-to-Play” Kickback Scheme At Arch Coal’s Mountain Laurel Mining Complex In Logan County

CHARLESTON, W.Va. – United States Attorney Booth Goodwin today filed a variety of charges in United States District Court in Charleston arising out of a joint federal and state criminal investigation into cash kickbacks paid to Arch Coal, Inc. (“Arch”) employees working at the Mountain Laurel Mining Complex (“Mountain Laurel”) near Sharples, Logan County, West Virginia.  The charges lay out a far reaching scheme orchestrated by Arch employees, including the former Mountain Laurel General Manager David E. Runyon, 45, of Delbarton, Mingo County, to receive cash kickbacks from certain vendors in exchange for receiving work.  According to the charges, vendors were required to pay hundreds of thousands of dollars over several years to ensure that vendors received and continued to receive work at Mountain Laurel.

“This kind of pay-to-play scheme hurts honest coal-industry vendors who refuse to pay bribes as a way to get customers,” commented U.S. Attorney Booth Goodwin.  “The corrupt way that these defendants did business should be a thing of the past. It’s bad for the economy and, ultimately, bad for consumers.”

According to the charges:

David E. Runyon, 45, of Delbarton, Mingo County, is charged with extorting certain vendors for cash kickbacks in exchange for ensuring that those complicit vendors continued to receive work from Mountain Laurel.  As outlined below, Runyon and other Arch employees are charged with receiving kickbacks approaching $2 million over a five-year span from sometime in 2007 through sometime in 2012.  Runyon faces up to 25 years’ imprisonment and a fine of up to $500,000 if convicted.

Gary K. Griffith, 62, of Oceana, Wyoming County, was charged with making a materially false statement to federal and state law enforcement when interviewed in the Mountain Laurel kickback scheme investigation.  According to the charge, he was the maintenance manager at Mountain Laurel, and received cash kickbacks in the amount of at least $250,000 on behalf of him and mine general manager David E. Runyon from a vendor who refurbished shuttle cars.  When he was asked by federal agents about receiving kickbacks either personally or on behalf of Runyon, he denied it. Griffith faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.

Stephen B. Herndon, 37, of Holden, Logan County, the former Mountain Laurel warehouse manager and now owner of Tri-State Mine Service, Inc., is charged with “structuring” a cash withdrawal from a local bank. The term “structuring” is used to describe criminal conduct when an individual engages in cash transactions with a financial institution in increments of $10,000 or less for the purpose of avoiding the financial institution’s currency transaction report (“CTR”) filing requirement with the Department of Treasury.  Herndon faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.

Scott E. Ellis, 44, of Holden, Logan County, Stephen B. Herndon’s business partner in Tri-State, is also charged with structuring a cash withdrawal from a local bank account.  According to the Information filed in Runyon’s case, Tri-State, through Ellis and Herndon, paid nearly $425,000 over a five-year period to receive rebuild work from Mountain Laurel. Ellis faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.

Alvis R. Porter, 61, of Holden, Logan County, owner and operator of Quality Oil, Inc., which was doing business as Southern Construction of Logan, provided construction services at the Mountain Laurel Mining Complex.  Porter was charged with failing to collect, account for, and pay over trust fund taxes of an employee.  As part of Runyon’s charge, Porter paid approximately $400,000 in kickbacks directly to Runyon. Porter faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.

David N. Herndon, 63, of Chauncey, Logan County, was charged with engaging in an unlawful monetary transaction of criminally derived property of a value greater than $10,000.  According to the charge, David Herndon owned MAC Mine Service, Inc., which provided contract labor to the Mountain Laurel Mining Complex.  D. Herndon participated in a contract labor kickback scheme where in exchange for Runyon not seeking to terminate the contract, and instead extending the contract each year, David Herndon paid illegal cash kickbacks of approximately $340,000 for more than three years. D. Herndon faces up to 10 years’ imprisonment and a fine of up to $250,000 if convicted.

Ronald Barnette, 53, of Holden, Logan County, was charged with making a materially false statement to federal and state law enforcement investigating the Mountain Laurel kickback scheme.  According to the charge, Barnette’s false statement pertained to paying kickbacks at Mountain Laurel for work that Barnette’s company received in rebuild miners and bolters at Mountain Laurel.  Barnette ultimately admitted to making approximately $300,000 in cash kickbacks to Runyon over the course of the scheme. Barnette faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.

Gary L. Roeher, 52, of Holden, Logan County, was charged with filing a false tax return.  According to the charge, Roeher deducted approximately $43,000 as a business expense for his company, CM Supply, when Roeher actually used the funds to install an in-ground swimming pool at his residence. Roeher faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.

Chadwick J. Lusk, 32, of Davin, Logan County, was charged with honest services mail fraud.  According to the charge, Lusk, while the purchasing agent at Mountain Laurel, defrauded Arch Coal of its right to honest services by receiving illegal cash kickbacks in a crib block kickback scheme. Gary L. Roeher, who owned CM Supply, Co.,  paid Lusk a portion of the profits for the crib blocks that Arch Coal purchased from CM Supply, Co. to use at Mountain Laurel to provide roof support in the underground mine portion of Mountain Laurel. Lusk faces up to 20 years’ imprisonment and a fine of up to $250,000 if convicted.

James H. Evans II, 39, of Verdunville, Logan County, owned and operated Baisden Recyling, which had a contract with Arch Coal to recycle scrap metal at the Mountain Laurel Complex.  Evans was charged with conspiracy to commit honest services fraud, as he recycled scrap cable at Mountain Laurel.  Evans paid Arch’s $30,000 commission on the scrap cable to Runyon through another Arch employee, Stephen B. Herndon, rather than to Arch.  Evans faces up to 5 years’ imprisonment and a fine of up to $250,000 if convicted.

The charging documents, referred to as “informations,” are attached.

Today’s charge stems from an investigation being conducted by the FBI, IRS Criminal Investigation, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorneys Thomas C. Ryan and Meredith George Thomas are handling the prosecution.

NOTE: An information is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Click here to see a copy of the information documents.

Joint Federal and State Investigation Results in 25 Years Of Prison Time For Million-Dollar Insurance Scam

CHARLESTON, W.Va. – Three more participants in a Logan County arson scheme were sentenced to prison, United States Attorney Booth Goodwin announced today.  On Wednesday, Guy R. Miller, Jr., 40, of Logan, was sentenced to six years and three months in prison for his role in facilitating the February 1, 2012 burning of a former law office building located at 111 Stratton Street in downtown Logan.  Miller recruited Michael D. Williams, 44, of Logan to spread approximately fifteen gallons of gasoline throughout the first floor of the building and ignite the fire.  Williams spread so much gasoline that the fumes accumulated in the ceiling causing a dangerous explosion.  The explosion was caught on the Logan County Courthouse video security system.  Williams received a reduced sentence of 32 months in prison on Thursday as a result of his cooperation.  Shawn C. Simon, 41, of Charleston, drove the getaway car for Miller and Williams and was sentenced Thursday to a term of 22 months in prison for destroying the digital video recorder from the neighboring restaurant, the 317 Steakhouse, operated by co-conspirator James Gregory Glick, 44, of Logan.  The Main Street side security cameras for the restaurant captured Miller, Simon and Williams fleeing the scene after passing through a law office with doors that opened onto Main Street and Stratton Street.  Simon admitted that he destroyed the video recorder shortly after the fire and threw it into the Kanawha River to conceal the evidence.

The scheme was initially hatched by Glick and another co-conspirator to collect insurance proceeds.  In January of 2012, Glick bought the commercial building for $50,000.  He then worked with an insurance agent and co-conspirator, William Jamey Thompson, 45, of Chapmanville, to obtain an inflated insurance policy from General Star Indemnity Company (“General Star”) providing $1 million in coverage.  Thompson received $50,000 for his part in fraudulently obtaining insurance coverage. 

While Glick was out of town during the early morning hours of February 1, 2012, Miller orchestrated the burning of the structure with Williams and Simon. 

Without sufficient evidence of the arson, General Star paid Glick the $1,010,000 insurance policy proceeds in May of 2012, and Glick began sharing the money with his co-conspirators.  In June of 2013, criminal investigators from the Internal Revenue Service, working with the West Virginia State Police, seized the remaining $450,000 in fraud proceeds from accounts controlled by Glick.  Over the course of the next six weeks, the agents developed cooperating witnesses, who obtained audio and video recordings of efforts by Glick to obstruct the federal grand jury investigation by paying Miller $8,000 to provide false testimony if he was called as a witness. 

Last week Glick received a sentence of more than 7 years for his role in the conspiracy and Thompson received a term of imprisonment of five years.

In addition to the $1,010,000 restitution order to repay General Star, the Court also ordered all defendants to reimburse the City of Logan $3,900 for emergency personnel response costs. 

In March, Philip Wayne Workman, 36, of Logan was sentenced to prison for 27 months for his efforts to obstruct the arson investigation by conducting staged consensual recordings in an effort to frame innocent individuals. 

***MEDIA ADVISORY***

Media Advisory: TODAY - Goodwin to Make Announcement in Major Investigation of Illegal Kickbacks at Logan County Mining Operation 

CHARLESTON, W.Va. –  U.S. Attorney Booth Goodwin, along with officials from the FBI, IRS, Postal Inspection Service, and West Virginia State Police, will announce developments in a major investigation of illegal kickbacks at a Logan County mining operation, TODAY, Friday, May 30, 2014, at 2:00 p.m., at the U.S. Attorney’s Office, Robert C. Byrd United States Courthouse, Fourth Floor, in Charleston.  *** TV: Please arrive at courthouse by 1:30 p.m. to clear security and set up cameras. ***

WHO:       United States Attorney Booth Goodwin
Federal and state law enforcement officials

WHAT:    Announcement of developments in a major mining kickback investigation in Logan County.

WHERE: U.S. Attorney’s Office
Robert C. Byrd United States Courthouse
Fourth Floor
300 Virginia St., E.
Charleston, WV

WHEN:    Friday, May 30, 2014 at 2:00 p.m.

BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Harry D. Rhodes, Jr., 49, of Coal City, West Virginia, plead guilty in federal court in Beckley to distributing oxycodone, a powerful and addictive prescription pain medication.  Rhodes admitted that in December of 2013, he sold oxycodone pills to a person who was cooperating with law enforcement authorities.  The drug deal took place in Coal City, near Beckley, West Virginia. 

Rhodes faces up to 20 years in prison and a $1,000,000 fine.  United States District Judge Irene C. Berger scheduled the sentencing for September 10, 2014.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.

This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.

BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that Timothy Peck, 41, of Beckley, West Virginia, plead guilty in federal court in Beckley to distributing heroin.  Peck admitted that in January of 2014, he sold heroin to a person who was cooperating with law enforcement authorities.  The drug deal took place on Pardee Lane in Stanaford, West Virginia. 

Peck faces up to 20 years in prison and a $1,000,000 fine.  United States District Judge Irene C. Berger scheduled the sentencing for September 10l 2014.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.

This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.

HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that Jon Seth Davisson, a 22-year-old Wood County man convicted of receipt of child pornography, was sentenced today to 98 months in federal prison followed by 15 years of supervised release.  In August of 2013, Davisson exchanged text messages with a 13-year-old Cabell County minor and persuaded the minor to take and send sexually explicit photographs to Davisson.  At the time he received these images, Davisson was serving in the United States Army and was stationed at Fort Lewis, Washington.  Davisson had been acquainted with the minor for several years and was aware of the age of the minor at the time he requested that she take and send the photos.  At the sentencing, it was also alleged that Davisson had engaged in sexually explicit text and Facebook conversations with several other Wood County minors during which sexually explicit images were exchanged.  At the times of those alleged conversations, the minors were between the ages of 12 and 16.  In imposing the sentence, Chief Judge Robert C. Chambers noted Davisson’s “significant level of perversion.”   

United States Attorney Booth Goodwin said, “Individuals like Mr. Davisson who entice minors to produce sexually explicit images contribute to the serious problem of child exploitation.  I will continue to protect the children of West Virginia by bringing those who harm and exploit children to justice.”

The Cabell County Sheriff’s Office and the Federal Bureau of Investigation conducted the investigation.  Assistant United States Attorney Jennifer Rada is in charge of the prosecution. 

This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.

BLUEFIED, W.Va. – United States Attorney Booth Goodwin announced that Kristi Ball, 39, of Princeton, West Virginia was sentenced in federal court in Bluefield today to 13 months in prison for distributing hydromorphone, an addictive prescription medicine.  Ball previously pled guilty in February of 2014, admitting that on January 16, 2013, she sold hydromorphone pills in Princeton to an informant working with law enforcement.  The judge also took into consideration Ball’s admission that over a period of time she distributed 170 hydromorphone pills. 

The case was investigated by the Southern Regional Drug and Violent Crime Task Force, and the prosecution was handled by Assistant United States Attorney John File.  This case was prosecuted under the Bluefield Pill Initiative, and was part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U. S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. 

BLUEFIELD, W.Va. – Alphonso Washington, age 31 of Princeton, West Virginia was sentenced today in federal court in Bluefield to three years and ten months imprisonment announced United States Attorney Booth Goodwin.  Washington previously pled guilty in January of 2014, to possession with intent to distribute marijuana.  A routine parole inspection led to the arrest and prosecution.  In August of 2013, officers with the West Virginia Department of Correction’s Parole Services arrived unannounced at Washington’s Princeton home.  Washington, who at that time was serving a term of parole for a state drug felony, was in possession of marijuana, baggies, digital scales, a handgun, and over $18,000 in cash.  Washington admitted that the seized cash was drug proceeds and it was forfeited as part of his plea agreement.  The West Virginia Department of Correction’s Parole Services was assisted by the Princeton Police Department and the United States Marshal Service during the pendency of this case. 

CHARLESTON, W.Va. – An Ohio man who distributed heroin in Parkersburg in 2013 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin.  Marion Alonvo Felder, 30, of Upper Sandusky, Ohio, pleaded guilty to distribution of heroin before United States District Judge John T. Copenhaver, Jr. in Charleston.  

On three occasions between September and October of 2013 Felder sold heroin to a confidential informant working with police in Parkersburg.  Felder admitted coming to Parkersburg from Marion, Ohio in early 2013 to distribute heroin in the area.  Felder faces up to 20 years in federal prison when he is sentenced on September 8, 2014.

The Parkersburg Police Department and the Washington County, Ohio Major Crimes Task Force conducted the investigation.  Assistant United States Attorney Joshua Hanks is in charge of the prosecution.

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. 

Charleston, W.Va. – United States Attorney Booth Goodwin announced that Wallace Lee Adkins, 81, and Timothy J. Harvey, 30, both of West Hamlin, West Virginia, entered guilty pleas today to aiding and abetting the distribution of oxycodone.  Adkins and Harvey admitted that on March 26, 2013, they sold oxycodone to an individual inside Adkins’ West Hamlin home.  Unbeknownst to Adkins and Harvey, the individual was a confidential informant working with law enforcement.   The confidential informant went to Adkins’ residence that day and asked Adkins for 5 oxycodone 30 mg pills.  Adkins told Harvey to take care of the order.  Harvey took a pill bottle from Adkins’ shirt, removed five oxycodone pills and sold them to the confidential informant for $200.00. 

Adkins and Harvey face up to 20 years’ imprisonment when they are sentenced on September 9, 2014 by United States District Court Judge John T. Copenhaver, Jr.

The case was investigated by the Huntington Drug Task Force and the West Virginia State Police.  Assistant United States Attorney Monica D. Coleman is handling the prosecution.   

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. 

Huntington, W.Va. – United States Attorney Booth Goodwin announced that John Clark Schlotter, 30, originally from Weirton, West Virginia, pleaded guilty today in federal court in Huntington to unlawful possession of a firearm by a drug addict.
 
In January of 2014, Schlotter was in possession of two stolen guns at his home on First Avenue Rear in Huntington.  Schlotter was holding the guns for a known heroin dealer who had received them in payment of a heroin debt.  Schlotter was holding the guns for the heroin dealer in exchange for heroin for his personal use.

Chief Judge Robert C. Chambers set the sentencing for September 2, 2014.

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. 

Huntington, W.Va. – United States Attorney Booth Goodwin announced that Kenneth Dewitt Newman, also known as “K-Kutta,” 32, of Huntington pleaded guilty today in federal court in Huntington to possession with intent to distribute cocaine, oxycodone, heroin, MDMA (commonly known as Ecstasy)  and marijuana.  Newman, his brother, George Antonio Newman, their mother, Darlene Newman, and 12 others were indicted for their various roles in the drug distribution conspiracy.  Newman and the others sold various types of controlled substances from his home at 1814 Artisan Avenue in Huntington and in the surrounding area from at least 2010 through January of 2014.  In January of 2014, agents with the Drug Enforcement Administration conducted a search of Newman’s home and seized cocaine, oxycodone, heroin, MDMA and marijuana. 

The charges against Newman and his associates arose out of a long term investigation led by the Drug Enforcement Administration, the Metropolitan Drug Enforcement Network Team, and the Huntington Police Department.   George Newman, Ariell Varney, William Isiah Petties, Kamel Burris, and Brandon Appleton have all pleaded guilty to various charges arising from the Newman investigation.  Other defendants are awaiting trial currently set for the end of July.  Newman faces up to 20 years imprisonment and a $1 million fine when he is sentenced on August 25, 2014.

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. 

Huntington, W.Va. – Emanuel Louis Harris, also known as “Forty,” age 44, of Detroit, Michigan, plead guilty in federal court in Huntington to possession with intent to distribute cocaine announced United States Attorney Booth Goodwin.  In January of 2014, police found Harris at a residence on Division Street in Huntington with approximately 17.3 grams of cocaine powder.  Harris was attempting to flush about an ounce of heroin down the toilet when police entered the house.  Police also used a confidential informant to buy prescription pills from Harris on three separate occasions in 2012.  Harris faces up to 20 years imprisonment and a $1 million fine when he is sentenced on September 2, 2014.  United States District Court Chief Judge Robert C. Chambers presided over the hearing.

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.

Huntington, W.Va. – United States Attorney Booth Goodwin announced today that Alvester Thomas, age 34, of Detroit, Michigan, was sentenced to ten years and one month imprisonment as a result of his February 2014 guilty plea to possession with intent to distribute 1000 grams or more of heroin.  Agents with the Huntington Violent Crime and Drug Task Force found the heroin in a safe inside the home that Thomas shared with Kristen Michelle Graley at 3008 Rear Third Avenue, Huntington, West Virginia.  Graley pleaded guilty to related drug charges and was sentenced to five years’ imprisonment.  Thomas admitted that the heroin was his and that he intended to sell it in the Huntington area.  In addition to the heroin, agents seized 545 oxycodone pills, 73 oxymorphone pills, additional amounts of heroin and approximately three pounds of marijuana. Agents also recovered a gun from the kitchen of the home and more than $17,000 in cash.
 
The Honorable Robert C. Chambers presided over the case. 

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.    

Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Jason Edward Hallam, 33, of West Hamlin, West Virginia, entered a guilty plea today to the distribution of oxycodone. 

Hallam admitted that on February 8, 2013, he sold 10 oxycodone 30 mg pills for $400.00 to an individual inside his West Hamlin home.  Unbeknownst to Hallam, the individual who purchased the pills was a confidential information working with law enforcement.

Hallam faces up to 20 years’ imprisonment when he is sentenced on August 26, 2014, by United States District Judge John T. Copenhaver, Jr.

The case was investigated by the Huntington Drug Task Force and the West Virginia State Police.  Assistant United States Attorney Monica D. Coleman is handling the prosecution.   

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District. 

Glick and Thompson To Spend Years In Prison For Million-Dollar Insurance Scam

CHARLESTON, W.Va. – Two men were sentenced in federal court yesterday in connection with a Logan arson scheme, U.S. Attorney Booth Goodwin announced.  James Gregory Glick, 44, of Logan, was sentenced to seven years, three months in prison, while William Jamey Thompson, 45, of Chapmanville, was sentenced to five years in prison, both for a conspiracy to burn a building in downtown Logan and fraudulently collect the insurance proceeds.  In January 2012, Glick purchased a commercial building located at 111 Stratton Street in Logan for $50,000, across the street from the restaurant he owned and operated, the 317 Steakhouse (“317”).  He then worked with Thompson, owner of the insurance agency Baisden & Associates, to obtain a $1 million insurance policy on the property from General Star Indemnity Company (“General Star”).  Thompson, in exchange for placing coverage, received $50,000.

During the early hours of February 1, 2012, co-conspirator Guy R. Miller, Jr., 40, of Logan, enlisted the assistance of Shawn C. Simon, 41, of Charleston, and Michael D. Williams, 44, of Logan, to help torch the building.  Williams spread approximately fifteen gallons of fuel throughout the first floor of the building.  When he lit the match, the fumes ignited, creating an explosion that blew the top of the building’s exterior across the street.  The three culprits were caught on 317’s security camera; Glick had Miller and Simon destroy the restaurant’s digital video recorder in order to conceal the crime.

Without sufficient evidence of the arson, General Star paid Glick the $1,010,000 insurance policy proceeds in May 2012, and Glick began sharing the money with his co-conspirators.  In June 2013, criminal investigators from the Internal Revenue Service, working with the West Virginia State Police, seized the remaining $450,000 in fraud proceeds from accounts controlled by Glick.  Over the course of the next six weeks, the agents developed cooperating witnesses, who obtained audio and video recordings of efforts by Glick to obstruct the federal grand jury investigation by paying Miller $8,000 to provide false testimony if he was called as a witness. 

The conspirators were indicted in late August 2013 and ultimately pled guilty to their respective roles in the conspiracy to commit arson and to defraud General Star. 

In addition to the $1,010,000 restitution order to repay General Star, the Court also ordered Glick and Thompson to reimburse the City of Logan $3,900 for emergency personnel response costs. 

Miller is set to be sentenced on May 28, 2014.  Williams and Simon will be sentenced on May 29, 2014. 

The West Virginia State Police and the IRS Criminal Investigation Division conducted the investigation.  Assistant United States Attorney Thomas Ryan is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed today’s sentences.

Carr drained clients’ retirement savings, now must pay back nearly $600,000

CHARLESTON, W. Va. – United States Attorney Booth Goodwin announced that Lloyd B. Carr, 55, an independent insurance agent from Parkersburg, was sentenced today to six years, three months in federal prison for converting client funds to his own personal use.  Carr was employed as an outside agent for various life insurance companies from early 2007 until at least July 2010, including Allianz Life Financial Services, LLC (“Allianz”).  Beginning sometime in 2008, Carr began taking checks provided by clients intended to purchase annuity contracts and life insurance policies from Allianz and other companies, and depositing those checks into his own accounts and spending the client funds on personal items.  

On October 6, 2008, Allianz terminated its agency relationship with Mr. Carr following consumer complaints of unaccounted funds.  Sometime in 2009, Carr filed a “trade name” application with the West Virginia Secretary of State’s office to operate as “Lloyd B. Carr doing business as American Life Insurance & Annuities Group” (“American Life”).  American Life is not and never was an actual business entity or licensed insurance company.  American Life had no employees or place of business other than sales that Carr conducted out of his home.  Rather, American Life was only a “doing business as” or “dba” name that Carr used to conduct a fraudulent business.

On July 27, 2010, Mr. Carr opened a business checking account with an initial deposit of $12.50 in the name of “Lloyd B. Carr dba American Life Insurance & Annuities Group” at Huntington National Bank.  Carr then began convincing existing Allianz clients to roll over legitimate retirement accounts into his bogus company.  Once Carr deposited the client check, he began siphoning off those funds by making frequent ATM cash withdrawals and cashing a series of $5,000 checks. 

In one instance in August 2010, Carr convinced a client, identified in the indictment by the initials “P.C.,” to cancel an Allianz policy and provide him with the settlement check.  On August 2, 2010, Allianz mailed P.C. a check in the amount of $55,270.96.  On August 9, 2010, P.C. endorsed the Allianz check and gave it to Carr with the understanding that the full amount would be used to pay an annuity premium with American Life, which Mr. Carr led P.C. to believe was an actual and legitimate life insurance company.  Carr deposited the check into the American Life account at Huntington National Bank.

Almost immediately, Carr converted a portion of those monies for his own personal use from the American Life account either by cashing checks made payable to “cash” or withdrawing cash from ATMs located in and around Parkersburg.  After several inquiries from P.C. requesting a copy of an insurance policy that Carr was supposed to provide, Carr eventually purchased P.C. a life insurance policy in January 2011 from a legitimate company known as Presidential Life Insurance Company (“Presidential Life”).  However, the premium paid to Presidential Life by Carr on behalf of P.C. was only $25,000.  On January 13, 2011, the Presidential Life policy was delivered to Mr. Carr by mail.  Carr later delivered the policy to P.C.

Carr had illegally converted the remaining balance of $30,270.96 from the Allianz policy into cash for his own use.  To appease P.C., Mr. Carr created a purported Roth IRA account issued by American Life, showing the balance of the funds the victim had provided him from Allianz was safely invested with American Life.   The “American Life” “Roth IRA account” issued for P.C. was fraudulent.  As Carr knew, American Life was not capitalized as an insurance or investment company, and it was not authorized to issue any type of insurance policy, security, investment, individual retirement account, or annuity contract.  Carr had already converted a portion of P.C.’s funds for his own use prior to issuing the fraudulent American Life Roth IRA contract, but did so in order to convince P.C. that the balance of P.C.’s investment monies was safe and secure. 

All told, Carr was convicted of fleecing twelve clients, including P.C., out of $589,000 in retirement savings. 

The Court ordered Carr to serve a term of imprisonment of 75 months, noting that Carr “had brought many of his clients, who trusted him, to financial ruin.” 

The investigation was conducted by the West Virginia Insurance Commission.  Assistant United States Attorney Thomas Ryan handled the prosecution.  United States District Judge Thomas E. Johnston is presiding over the case and imposed today’s sentence.

CHARLESTON, W.Va. – A man who admitted coming to Charleston from Detroit, Michigan, to sell heroin was sentenced today to federal prison, announced U.S. Attorney Booth Goodwin.  Kermit Ware, III, 26, of Detroit, Michigan pleaded guilty last January to using a communication device to facilitate a drug trafficking crime, and he was sentenced today to five months’ imprisonment.  Ware came to West Virginia in the summer of 2013 to distribute heroin after being recruited by a member of a Detroit-based heroin distribution ring with ties to Kanawha County.  In July 2013, Ware used his cellular telephone to facilitate several heroin sales to undercover police in and around Charleston.

This case was investigated by the Kanawha Bureau of Investigations.  Assistant United States Attorney Joshua Hanks handled the prosecution.

United States District Judge John T. Copenhaver, Jr., is presiding over the case and imposed today’s sentence.

CHARLESTON, W.Va. – A Vienna man who had heroin and two handguns in his residence pleaded guilty today to a federal firearms charge, announced U.S. Attorney Booth Goodwin.  Robert Lamar Bates Porter, 26, pleaded guilty to possessing a firearm in furtherance of a drug trafficking offense. Porter entered his guilty plea before United States District Judge John T. Copenhaver, Jr., in Charleston.  

On November 10, 2013, police executed a search warrant at Porter’s 29th Street residence in Vienna and seized approximately 100 grams of heroin and two handguns.  Porter told police that the drugs and weapons were his and that he intended to distribute the heroin.

Porter faces at least 5 years and up to life imprisonment when he is sentenced on September 2, 2014.

The Parkersburg Narcotics and Violent Crimes Task Force conducted the investigation.  Assistant United States Attorney Joshua Hanks is in charge of the prosecution.

Massachusetts Lab to Pay More than $4.675 Million

CHARLESTON, W.Va. – United States Attorney Booth Goodwin today announced a $4.675 million settlement with Massachusetts-based Calloway Laboratories, Inc. (Calloway Labs) related to false billings submitted to West Virginia Medicaid and nationwide to Medicare.  Calloway Labs, headquartered in Woburn, Massachusetts, provides clinical laboratory services, including urine drug testing, for Medicare and West Virginia Medicaid.  From March of 2009 through April of 2013, Calloway Labs routinely billed Medicare and West Virginia Medicaid using a code designated for pathology services in addition to the code for urine drug testing. 

The investigation, conducted by the West Virginia Medicaid Fraud Control Unit (WV MFCU) and the United States Department of Health and Human Services, Office of the Inspector General (HHS-OIG), established that treating health care providers did not deem pathology services necessary and did not knowingly order such services.  The investigation further established that Calloway Labs did not provide pathology services as billed.  Rather, Calloway Labs performed a type of medical review with every urine drug screen.  Medical review is not covered by Medicare or West Virginia Medicaid.  Medicare and West Virginia Medicaid paid claims for the medical review because Calloway submitted them under the code for covered pathology services.  

The settlement represents the largest-ever recovery in a health care fraud case by a United States Attorney’s Office in West Virginia.

“Drug treatment programs are a vital component of our ongoing battle against prescription drug abuse,” said U.S. Attorney Goodwin.  “Treating providers rely largely on urine drug testing to determine whether patients are using illegal substances, and if so what substances, and whether patients are properly taking prescription medications as opposed to selling them on the street.  The cost for such testing often falls upon federal health care programs like Medicare and Medicaid.  The additional expense of unnecessary review, like that routinely performed by Calloway Labs, increases the burden on an already stressed system.”  

“Medicare is the largest payer for clinical laboratory services and, therefore, is vulnerable to fraud, waste, and abuse,” said Gloria Jarmon, Deputy Inspector General for Audit Services.  “In addressing that vulnerability, HHS-OIG uses a multidisciplinary approach, including data-mining, audits, and, as appropriate, enforcement actions, to protect the integrity of HHS programs and recover taxpayer dollars.”

“My office, HHS-OIG, and WV MFCU have worked aggressively and collaboratively with Calloway Labs to bring this matter to a successful resolution,” Goodwin said. “This settlement ensures that the federal tax dollars that fund Medicare and Medicaid are restored in full to the programs and the people they were intended to serve.”

Goodwin also reported that this single settlement is nearly enough to fund the work of his office for an entire year.  “The settlement amount represents more than 80 percent of my office’s annual budget allocation.  In other words, the recovery in this case nearly pays for the operation of my office for a year.”      

In 2010, Calloway Labs and two of its top executives were indicted in Massachusetts on charges involving kickbacks and bribes to managers of group homes for recovering drug addicts.  In 2012, Calloway Labs agreed to pay a $20 million penalty to resolve the charges against the corporation.  Two of the company’s executives later pleaded guilty. 

In the fall of 2012, Calloway Labs was acquired by new owners and new management was installed.  The practices giving rise to the false claims in this matter were initiated under the former management.  Upon learning of this investigation, Calloway Labs voluntarily suspended the problematic billing practices nationwide.

Goodwin remarked, “We have recovered the losses to the affected federal health care programs, covered the expense of investigation and the cost of future program compliance monitoring, and prompted the elimination of systematic problems leading to the depletion of federal health care dollars.  I couldn’t be more pleased with the outcome, and I applaud the joint efforts of the agencies that brought us to this resolution.” 

Charleston, W.Va. – United States Attorney Booth Goodwin announced today that David Burgess, 27, and his brother, Jesse Burgess, 26, both of Hernshaw, West Virginia, pled guilty to federal gun charges. Both men were charged in connection with the theft of firearms from two local businesses.

David Burgess pled guilty to illegally possessing a 9 mm semi-automatic pistol on September 17, 2012, the day he stole the firearm from Pawn for Cash, a federally licensed firearms dealer in Charleston. David Burgess had previously been convicted of the felony offense of credit card forgery in the Circuit Court of Kanawha County, West Virginia, and his rights to possess a firearm had not been restored. Jesse Burgess pled guilty to aiding and abetting his brother in stealing the pistol from Pawn for Cash.  Jesse Burgess was also prohibited from possessing a firearm because he had previously been convicted of breaking and entering in the Circuit Court of Kanawha County, West Virginia, and his rights to possess a firearm had not been restored. 

Both men face up to 10 years’ imprisonment and up to a $250,000 fine when they are sentenced on September 4, 2014. United States District Judge John T. Copenhaver, Jr., is presiding over the cases.

The investigation was conducted by the Charleston Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant United States Attorney Haley Bunn is handling the prosecution. 

This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.

CHARLESTON, W. Va. – A federal grand jury has charged a six-time felon from Cedar Grove with illegally possessing firearms, United States Attorney Booth Goodwin announced today. Reginald Bennett, 40, of Cedar Grove, was indicted for possessing firearms as a convicted felon. According to an indictment returned yesterday, Bennett has been convicted of six robbery and firearms felonies in Baltimore, Maryland.

The grand jury also charged Bennett and an associate, Jennifer Allen, 52, of South Charleston, with conspiring to conceal a BMW 328i with firearms inside, with the intent to impair the availability of that evidence for use in an official proceeding.

Note: An indictment is only an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

Huntington, W.Va. – George Antonio Newman, 37, of Huntington, pleaded guilty today to possession of cocaine with intent to distribute, United States Attorney Booth Goodwin announced.  On April 15, 2013, as part of a larger investigation of Huntington-area drug activity, agents of the Drug Enforcement Administration (DEA) conducted a search of Newman’s residence, located at 1302 18th Street in Huntington. During the search, agents seized approximately an ounce of cocaine from the top of Newman’s refrigerator. Newman intended to distribute the cocaine. Agents also seized a loaded Taurus .410 handgun found on top of the cocaine.

As a result of the DEA investigation, Newman, his brother Kenneth Dewitt Newman (also known as “K-Kutta”), and 13 other individuals were indicted for their various roles in the distribution of cocaine, crack cocaine, prescription pills, heroin, MDMA (commonly known as Ecstasy) and marijuana. George Newman faces up to 20 years’ imprisonment and a $1 million fine when he is sentenced on August 18, 2014.

Chief United States District Judge Robert C. Chambers conducted today’s plea hearing.

Shady Spring man pleads guilty to separate drug offenses

CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Jack Edwin Morris, 30, of White Sulphur Springs, West Virginia, and Douglas Edward Morris, 42, of Shady Spring, West Virginia, entered guilty pleas in federal court in Charleston to separate drug offenses.  McCoy pleaded guilty to using a communication facility to facilitate a felony drug offense.  He admitted that on February 20, 2014, he used a telephone in or near Lewisburg to have a conversation with a person to set up a drug transaction.  Later that day, McCoy carried out the drug transaction at Ronceverte, distributing a suboxone strip to the person, who was cooperating with law enforcement authorities.  McCoy was working a shift as a mail carrier with the United States Postal Service when he engaged in this conduct.  He is no longer employed by the Postal Service. McCoy faces up to four years in prison and a $250,000 fine. The case was investigated by the United States Postal Service Office of Inspector General and the Greenbrier Valley Drug and Violent Crime Task Force.

Morris pleaded guilty to traveling in interstate commerce to facilitate a crime and also to possession of a controlled substance, admitting that on or about April 9 and April 10, 2013, he traveled from Shady Spring to Camden, New Jersey, where he obtained heroin and returned with it to his residence in Shady Spring.  He admitted distributing some of the heroin and hiding some of it, intending to distribute it later.  Morris also admitted that on May 15, 2013, he possessed a quantity of heroin in his residence with the intent to use it.  Morris faces up to seven years in prison and a fine of between $2,500 and $500,000. The case was investigated by the West Virginia State Police Bureau of Criminal Investigations, the Raleigh County Sheriff’s Department Drug Unit, and the Federal Bureau of Investigation.

United States District Judge Irene Berger has scheduled sentencing hearings for both defendants for August 28, 2014.

Former Charleston network engineer intentionally mounted devastating attack on employer’s computer system

CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a former network engineer at Charleston-based EnerVest Operating, LLC (“EnerVest”), was sentenced to four years in federal prison for intentionally causing severe damage to his employer’s computer system.  Ricky Joe Mitchell, 35, of Charleston, West Virginia, admitted that in June 2012, shortly after he learned he was going to be fired, he remotely accessed EnerVest’s computer system and reset the company’s network servers to factory settings, essentially eliminating access to all of the company’s data and applications for its eastern United States operations. Before his access to EnerVest’s offices could be terminated, Mitchell entered the offices after business hours, disconnected critical pieces of computer-network equipment, and disabled the equipment’s cooling system. As a result of Mitchell’s destructive acts, EnerVest was unable to fully communicate or conduct business operations for approximately 30 days. The company spent hundreds of thousands of dollars attempting to recover historical data from its network servers, and some of its data were lost forever.

“Imagine having your company’s computer network knocked out for a month,” said U.S. Attorney Goodwin. “In this day and age, that kind of attack is devastating. And this defendant didn’t just hurt EnerVest. He hurt his former co-workers, he hurt EnerVest’s customers, and, ultimately, he hurt consumers. The only good news here is that he didn’t get away with it.”  

EnerVest manages oil and gas exploration and production operations for its parent company, EnerVest Ltd.—a major national oil and gas holding company—and for various affiliates of EnerVest Ltd.

In addition to his four-year prison sentence, Mitchell was ordered to pay $428,000 in restitution to EnerVest, plus a $100,000 fine. United States District Judge John T. Copenhaver, Jr., imposed today’s sentence.

The United States Secret Service conducted the investigation. United States Attorney Goodwin and Assistant United States Attorney Thomas C. Ryan handled the prosecution.  

The case was prosecuted under U.S. Attorney Goodwin’s Business Protection Initiative, which fights fraud and other crimes against West Virginia businesses.

CHARLESTON, W. Va. – A federal grand jury today charged John E. Swain II, of Charleston, with falsely assuming and pretending to be a federal law enforcement officer. According to the grand jury’s indictment, Swain impersonated a United States Deputy Marshal on April 14, 2014, in Charleston.

If convicted, Swain faces up to three years’ incarceration and a $250,000 fine.

The United States Marshals Service and the Kanawha County Sheriff’s Department conducted theinvestigation.  Assistant United States Attorney Erik S. Goes is in charge of the prosecution. 

Note: An indictment is only an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

Charleston, W.Va. –  Chad Randall Davis, 20, of Chapmanville, Logan County, West Virginia, was sentenced today to six months in federal prison for distributing methamphetamine, United States Attorney Booth Goodwin announced. Davis previously pleaded guilty in January 2014, admitting that he sold methamphetamine to what proved to be a confidential informant working with the U.S. 119 Drug Task Force. The drug sale occurred at Davis’ Chapmanville residence on November 16, 2012.  Davis was arrested on January 21, 2013, and provided a statement to law enforcement admitting he sold approximately $3000 worth of methamphetamine during the three- to four-month period prior to his arrest.

United States District Judge John T. Copenhaver, Jr., imposed today’s sentence, which includes a three-year term of supervised release following Davis’ prison term.

Huntington, W.Va. – Ariell Varney, 23, of Wayne, West Virginia, pleaded guilty today in federal court to a charge of possession with intent to distribute MDMA, commonly known as Ecstasy, United States Attorney Booth Goodwin announced. On November 20, 2013, Varney was pulled over for a traffic violation in the 600 block of 8th Street in Huntington by members of the Huntington Police Department. During the stop, a drug dog gave a positive alert on the trunk of Varney’s car.  During a subsequent search of the car, a pill bottle was located that contained an empty capsule and a similar capsule that contained a substance that field tested positive for MDMA. Also in the bottle were eight other tablets with no markings. 

At the time of the stop, Varney was being investigated by the Drug Enforcement Administration for her connection to the drug trafficking activities of Kenneth Dewitt Newman, also known as “K-Kutta.”  As a result of the investigation, Newman and 14 other individuals were charged with various offenses related to a drug trafficking conspiracy in the Huntington area. Varney was living in Miami, Florida, during the investigation, and is believed to have been a supplier of MDMA to the Newman organization.  In addition to MDMA, Newman’s organization was responsible for selling cocaine, heroin, prescription pills, marijuana, and crack cocaine.

Varney faces up to 20 years in prison and a $1 million fine when she is sentenced on August 18, 2014.  Chief United States District Judge Robert C. Chambers is presiding over the case. 

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District. 

Huntington, W.Va. – Brandon Appleton, 25, of Rand, West Virginia, pleaded guilty today in federal court in Huntington to possessing cocaine and the drug MDMA, commonly known as Ecstasy, with the intent to distribute them, United States Attorney Booth Goodwin announced.  On January 20, 2014, investigators working with the Drug Enforcement Administration conducted a search at 1814 Artisan Avenue in Huntington, which was the residence of Kenneth Dewitt Newman, also known as “K-Kutta.” At the time of the search, Appleton was in the residence. Appleton was in possession of a sandwich-style bag that contained smaller bags of both MDMA and cocaine, which Appleton intended to sell.  

The investigation into Newman’s drug trafficking revealed that Appleton distributed drugs for Newman from approximately December 2013 until the January search.  Additional amounts of cocaine and MDMA, as well as heroin, marijuana, and prescription pills, were seized in the residence. As a result of the investigation, Newman and 14 other individuals were charged with various offenses related to a drug trafficking conspiracy in the Huntington area.

Appleton faces up to 20 years’ imprisonment and up to a $1 million fine when he is sentenced on August 18, 2014.  Chief United States District Judge Robert C. Chambers is presiding over the case. 

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District. 

CHARLESTON, W.Va. – An Ohio man who distributed heroin to an informant in October 2013 pleaded guilty today to a federal drug charge, announced United States Attorney Booth Goodwin.  Keith Irons, 25, of Marion, Ohio, pleaded guilty to distribution of heroin. Irons entered his guilty plea in a hearing before United States District Judge Thomas E. Johnston.

Irons admitted selling heroin to an informant working for the Parkersburg Police Department on two occasions in October 2013.

Irons faces up to 20 years in federal prison when he is sentenced on August 26, 2014.

The Parkersburg Police Department and the Washington County, Ohio Major Crimes Task Force conducted the investigation.  Assistant United States Attorney Joshua Hanks is in charge of the prosecution.

Bluefield, W.Va. – United States Attorney Booth Goodwin announced today that three Mercer County men pled guilty in Bluefield to federal drug charges.  Steven Eugene Champ, 41, of Matoaka, West Virginia, pled guilty to distribution of hydromorphone, admitting that on September 24, 2012, he distributed two hydromorphone pills to a person cooperating with law enforcement authorities.  The transaction took place at or near Princeton.  Champ further admitted that he distributed a total of 1,710 hydromorphone pills between July 2011 and February 2013.

Elijah Abdul Jones, 36, of Bluefield, pled guilty to distribution of cocaine base.  He admitted that he sold .72 grams of cocaine base to a person cooperating with police on July 23, 2013, in Bluefield.  He further admitted that he had also distributed a total of 14 grams of cocaine base and a small quantity of heroin. 

Michael Devon Harmon, 37, of Princeton, pled guilty to distribution of hydromorphone, admitting that on July 24, 2013, he distributed two hydromorphone pills to a person cooperating with the police in Princeton.  He also admitted that in addition to that transaction, in July 2013, he sold two more hydromorphone pills and small quantitites of cocaine base and cocaine. 

Each of the defendants faces up to 20 years in prison and a one million dollar fine.  Senior United States District Judge David A. Faber has set each defendant for sentencing on September 22, 2014.

The cases were investigated by the Southern Regional Drug and Violent Crime Task Force.  Assistant United States Attorney John File is handling the prosecutions. 

These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.

Huntington, W.Va. –  William Isiah Petties, 33, of Huntington, West Virginia, pleaded guilty today in federal court to possessing a firearm as a convicted felon, United States Attorney Booth Goodwin announced.  On January 20, 2014, the Drug Enforcement Administration conducted a search of 1130 28th Street in Huntington, pursuant to a search warrant.  Petties was outside that residence when law enforcement arrived to execute the warrant. The address was the residence of Petties’ girlfriend and where Petties stayed on a regular basis.

During the search, agents located a loaded Springfield .40 caliber pistol, which was owned by Petties’ girlfriend but which he jointly possessed and over which he had joint control. In a statement taken after the search, Petties admitted that he possessed the firearm. In 2000, Petties was convicted in Cabell County circuit court of the felony offense of aggravated robbery, and, as a result, was prohibited from possessing the firearm.

Petties was named as one of 15 defendants indicted for various offenses connected with the drug trafficking activities of Kenneth Dewitt Newman, also known as “K-Kutta.” The Newman investigation revealed that Newman, along with others, distributed cocaine, heroin, MDMA, marijuana, and prescription pills in the Huntington area. 

Petties faces up to 10 years’ imprisonment and up to a $250,000 fine when he is sentenced on August 18, 2014.  Chief United States District Judge Robert C. Chambers is presiding over the case.

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District. 

BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that four Greenbrier County residents have been indicted by a federal grand jury in connection with heroin trafficking.  Those indicted and subsequently arrested are:

Tiffany Rose Arbogast, 24, of Lewisburg, West Virginia, charged with four counts of heroin distribution; Christopher Miller, 32, of Alderson, West Virginia, charged with two counts of heroin distribution; Joshua Osborne, 30, also of Alderson, West Virginia, charged with two counts of heroin distribution and one count of possession of heroin with intent to distribute; and
Amanda Nicole Canaday, 26, of White Sulphur Springs, West Virginia, charged with possession with intent to distribute heroin.

Miller and Canaday have been remanded to the custody of the United States Marshals Service pending trial.  Osborne and Arbogast face hearings this week to determine whether they will remain in Marshals Service custody.

These cases were investigated by the Greenbrier County Drug and Violent Crime Task Force.  Assistant United States Attorney John File is handling the prosecutions.

Goodwin’s office is prosecuting these cases to fight heroin trafficking in Greenbrier County and as part of an ongoing battle against the illegal sale of prescription drugs and heroin throughout the Southern District of West Virginia.  The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illicit pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.

Note:  The charges contained in the indictments are merely accusations, and the defendants are presume innocent unless and until proven guilty.

CHARLESTON, W.Va. –  U.S. Attorney Booth Goodwin, Greenbrier County Sheriff Jan Cahill, and members of the West Virginia State Police will announce recent federal indictments and the subsequent arrests of four Greenbrier County residents in connection with heroin trafficking on Monday, May 19, 2014 at 11:00 a.m. at the Greenbrier County Courthouse located at 200 North Court Street in Lewisburg, West Virginia.

WHO:       United States Attorney Booth Goodwin
Sheriff Jan Cahill, Greenbrier County Sheriff’s Department
Members of the West Virginia State Police

WHAT:    U.S. Attorney Booth Goodwin, Greenbrier County Sheriff Jan Cahill and members of the West Virginia State Police to announce recent federal indictments against four Greenbrier County residents relating to heroin distribution.

WHERE: Greenbrier County Courthouse (Lobby)
200 North Court Street
Lewisburg, WV

WHEN:    Monday, May 19, 2014 at 11:00 a.m.

Charleston, W.Va. –  U.S. Attorney Booth Goodwin, U.S. Marshal John D. Foster and West Virginia State Police First Lieutenant Michael Baylous announced today that during a three-day law enforcement blitz aimed at verifying compliance of more than 252 registered sex offenders currently residing in Wirt and Wood counties, 57 offenders were found to be out of compliance.

The initiative, known as Operation Black Diamond, is a multi-agency law enforcement effort targeting registered sex offenders to determine individual compliance with the Sex Offender Registration Notification Act, also known as SORNA.  Led by the U.S. Marshal’s Cops United Felony Fugitive Enforcement Division (CUFFED), Operation Black Diamond targeted 252 registered sex offenders and found 195 to be in compliance.  A total of 57 individuals were determined to be out of compliance within the Southern District of West Virginia during checks conducted on May 13-15.  The operation revealed that eight sex offenders had absconded. Deputy U.S. Marshals, along with West Virginia State Troopers, will continue their investigation until those violators are found.

 “We will continue to conduct these compliance sweeps, because the prosecution of sex offenders who violate federal registration requirements is one of my office’s top priorities,” said U.S. Attorney Goodwin. “And we will continue to bring to justice those offenders who are not in compliance.”

Operation Black Diamond was initiated by members of the West Virginia State Police, in cooperation with the U.S. Marshals Service CUFFED Division.  The three-day law enforcement sweep covered Wirt and Wood counties.

“The U.S. Marshals Service remains committed to tracking down sex offenders who attempt to evade the law,” U.S. Marshal John Foster said.

In December 2013, Operation Lump of Coal found 54 sex offenders out of compliance when a compliance check was conducted in Mercer, McDowell, Monroe, Summers and Wyoming counties.  In August 2013, a similar law enforcement sweep, dubbed Operation Coal Dust, was conducted of 209 registered offenders residing in Boone, Lincoln and Logan counties, which found 10 individuals out of compliance.  Operation River Cities, in December 2012, netted 18 arrests of sex offenders found to be out of compliance in Cabell, Mingo and Wayne counties after nearly 300 checks were conducted.

As a result of the four regional operations, a combined total of more than 1,250 offender compliance checks have been conducted.

The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006.  SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.  

CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Darrin McCormick, 50, of Williamson, West Virginia, pled guilty to lying to federal agents from the FBI and IRS.  McCormick, the former Williamson branch manager of the Bank of Mingo, admitted that he lied during an interview in February of 2013 about suspicious banking activities undertaken by the principals of Aracoma Contracting, LLC, a contract labor company providing employees to local coal companies.  Aracoma, owned by Jerome Edward Russell, 50, of Williamson, and Frelin R. Workman, 58, of Belfrey, Kentucky, routinely sent employees to the Bank of Mingo’s Williamson branch to simultaneously withdraw cash in increments of $10,000, commonly referred to as “structuring,” so as not to trigger mandatory reporting to the IRS.  Russell and Workman were using the cash to pay a cash payroll as part of a scheme to avoid payroll taxes and also to pay bribes to Arville W. Sargent, 52, of Chapmanville, a premium auditor employed by BrickStreet Mutual Insurance Company (“BrickStreet”).  In exchange for cash, Sargent intentionally underreported Aracoma’s payroll, which resulted in reducing Aracoma’s insurance premium to BrickStreet. 

In February of 2013, federal agents interviewed McCormick at his home in Williamson.  He denied knowledge of Aracoma’s suspicious banking practice when specifically asked.  At today’s hearing, McCormick admitted that he lied to the agents knowing it was important to a federal investigation.

“Lying to federal investigators is always a serious crime, but it’s particularly disappointing when the lie comes from someone who’s both an elected officeholder and a bank official,” said U.S. Attorney Goodwin. “Cash structuring provides the fuel for any number of financial crimes—including bribery, as we saw with the auditor from BrickStreet—which is why it’s so important that banks report structuring when it happens. The defendant understood that perfectly well. It’s a shame he chose to deceive federal agents rather than help them get to the truth.”

In October of 2013, Sargent was sentenced to 72 months in prison and ordered to pay over $7 million in restitution to BrickStreet and the IRS for his role in the fraudulent scheme.  Russell and Workman were sentenced to thirty months for their respective roles.  The corporation, Ararcoma, was ordered to pay $405,000 in forfeiture to the United States as part of its sentence.

McCormick faces up to five years in prison and $250,000 fine.  Sentencing is scheduled for August 28, 2014 at 2 p.m.

This investigation was conducted by the FBI and IRS Criminal Investigation, with assistance from the West Virginia State Police and the West Virginia Insurance Commission. Assistant United States Attorney Thomas Ryan is handling the prosecution.

CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin, joined by U.S. Marshal John Foster and members of the West Virginia State Police, will discuss the results of a sex offender registration compliance sweep conducted in Wood and Wirt counties.  A press conference will be held at 10:00 a.m. on Friday, May 16, 2014 at West Virginia State Police headquarters located at 725 Jefferson Road in South Charleston, West Virginia.

OFFICIALS TO DISCUSS RESULTS OF SEX OFFENDER COMPLIANCE SWEEP

WHO: United States Attorney Booth Goodwin
United States Marshal John Foster
Members of the West Virginia State Police

WHAT:   Press conference to discuss results of sex offender registration compliance sweep conducted in Wood and Wirt counties.

WHERE: West Virginia State Police
725 Jefferson Road
South Charleston, WV

WHEN:    Friday, May 16, 2014 at 10:00 a.m.

BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that two Beckley area residents were sentenced today in federal court for obtaining oxycodone by fraud.  Sherry Lively, age 46, of Crab Orchard, West Virginia and Justin Woodie, age 22, of Beckley, West Virginia received prison sentences for six months and three months, respectively.  The defendants, who plead guilty in January of 2014, forged prescriptions for oxycodone on stolen prescription pads and presented them to Beckley area pharmacies to be filled. 

These cases were investigated by the DEA.

These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.  

BLUEFIELD, W.Va. – United States Attorney Booth Goodwin announced today that two Bluefield men were sentenced in federal court for distribution of prescription drugs.  Leonard Graves III, 31, of Bluefield, Virginia, was sentenced to eighteen months in federal prison for distribution of oxycodone.  Graves pled guilty in January of 2014, admitting that in September of 2013, he distributed 20 oxycodone pills in the Bluefield area to a person cooperating with police.  As part of his plea, Graves admitted that he sold a total of 269 oxycodone pills. 

Jermaine Holland, 31, of Bluefield, West Virginia, was sentenced to fifteen months in federal prison for distribution of hydromorphone.  Holland pled guilty in December of 2013, admitting that in July of 2013, he distributed two hydromorphone pills from his Bluefield home to a person cooperating with police.  Holland also admitted that he sold several additional hydromorphone pills, and that he possessed two firearms and kept them near the drugs and money he earned from selling drugs. 

These cases were investigated by the Southern West Virginia Drug and Violent Crime Task Force and the prosecution was handled by Assistant United States Attorney John File.  This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The U. S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.

Charleston, W.Va. –  U.S. Attorney Booth Goodwin announced that Joseph Hurley, 28, of Man, West Virginia pleaded guilty today to fraudulently obtaining credit cards, which are considered “access devices” under federal criminal laws.  In January of 2013, Hurley used the names and social security numbers of two relatives with whom he was living to apply for credit cards.   Hurley successfully obtained Citibank credit cards and immediately charged more than $5,000 before Citibank’s fraud department suspended the accounts.     

Hurley faces up to ten years of incarceration, a $250,000 fine and up to three years of supervised release.  Hurley will also be required to make full restitution for the fraudulent charges.  Sentencing is scheduled for August 20, 2014 before the Honorable John T. Copenhaver, Jr.

The United States Secret Service and the United States Postal Inspection Service conducted the investigation.  Assistant United States Attorney Erik S. Goes handled the prosecution. 

Huntington, W.Va. – A Detroit man who was part of a heroin conspiracy in the Huntington area, pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin.  Daniel M. Flowers, 43, pleaded guilty before Chief United States District Judge Robert C. Chambers in Huntington to distributing heroin.

Between August of 2008 and April of 2013, Flowers and his co-conspirators, some of whom transported the heroin from Detroit to Huntington, utilized multiple residences in the Huntington area to store, prepare and distribute heroin.  On April 10, 2013, a confidential informant contacted Flowers and arranged to buy some heroin.  The informant subsequently met with Flowers at an apartment in the 1000 block of 12th Avenue in Huntington, where Flowers sold the heroin to the informant $150. 

Flowers faces up to 20 years in federal prison when he is sentenced on August 11, 2014.

The FBI Huntington Violent Crimes Drug Task Force and the Huntington Police Department conducted the investigation.  Assistant United States Attorney Joseph F. Adams is in charge of the prosecution. 

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. 

Huntington, W.Va. – A Detroit man who conspired with others to distribute heroin, cocaine base and oxycodone in Huntington, West Virginia pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin.  Cecil Rice, 34, pleaded guilty in federal court in Huntington to possession with intent to distribute heroin.

Between August of 2008 and September of 2013, Rice participated with others in the transportation of heroin, cocaine base and oxycodone from Detroit to Huntington for distribution.  Rice and his co-conspirators established multiple residences in the Huntington to store, prepare and distribute drugs.

On September 19, 2013, Rice was arrested after leaving a motel located on 16th Street Road in Huntington.  At the time of his arrest, officers found two packs of heroin concealed in Rice’s mouth.  A search of Rice’s motel room uncovered additional heroin and cocaine base.

Rice faces up to 20 years in federal prison when he is sentenced on August 11, 2014.

The FBI Huntington Violent Crimes Drug Task Force and the Huntington Police Department conducted the investigation with assistance from the Cabell County Sheriff’s Department.  Assistant United States Attorney Joseph F. Adams is in charge of the prosecution. 

This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin.  The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.