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Post by Press Release on Jan 22, 2012 13:15:35 GMT -5
Woman Pleads Guilty to living with husband while getting SSI U.S. Attorney’s Office Eastern District of Kentucky
COVINGTON — The U.S. Attorney’s Office and the Social Security Administration (SSA) jointly announced that over the past two months, eight people living in Northeast Kentucky have admitted to defrauding the Social Security Administration. The eight individuals defrauded the Social Security Administration out of a combined $517,647.16. Teresa Anderson, 49, of Mt. Olivet, Kentucky, is one of the eight individuals who pleaded guilty to Supplemental Security Income (SSI) fraud. Anderson admitted that she made false statements on SSI eligibility forms and other documents to receive an increase in SSI payments. From August of 2004 through April of 2011, Anderson falsely represented to the Social Security Administration that she and her husband were separated and living apart so she could receive an increase in SSI benefits. In reality, she and her husband were living together. According to court documents, as a result of her false statements, Anderson defrauded SSA out of $48,967.00. Anderson pleaded guilty on December 9. “We want to serve notice on those who would steal from the people of the United States by committing SSI fraud that this conduct will not be tolerated,” said United States Attorney Kerry B. Harvey. “We intend to protect these resources for those who are truly in need. Our prosecutors will continue to work closely with the Social Security Administration to protect this important program from this sort of criminal conduct.” Seven other people have also pleaded guilty to SSI fraud since November 14. All eight defendants agreed to pay full restitution for the amount of money they fraudulently received. The other defendants are from Vanceburg, Kentucky, Grayson, Kentucky, Louisa, Kentucky, and Hillsboro, Kentucky All eight defendants were indicted in separate cases in October of 2011. SSI is a program designed to help aged, blind and disabled people who have little or no income. It provides money to meet basic needs such as food, clothing and shelter. Special Agent in Charge Guy P. Fallen, Office of the Inspector General, Social Security Administration stated, “SSA Supplemental Security Income Benefits are a lifeline for many Americans who are unable to work due to a temporary or permanent disability. Our office is gratified by the U.S. Attorney’s shared commitment to preserving Social Security funds for deserving beneficiaries. We have no higher priority than ensuring that those who obtain benefits fraudulently are swiftly detected and prosecuted. Social Security fraud affects all Americans and these indictments and guilty pleas are testament to our serious commitment to pursuing those who victimize Social Security Programs." The investigation was conducted by the Social Security Administration’s Office of Inspector General, Office of Investigations. Assistant U.S. Attorney Christopher L. Nasson represented the U.S. Attorney’s Office in these cases. Anderson will appear for sentencing on March 23. Anderson faces a maximum prison sentence of five years. However, any sentence would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
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Post by Press Release on Jan 24, 2012 21:26:24 GMT -5
Groneck pleas guilty to wire fraud and stealing $645,904 U.S. Attorney’s Office Eastern District of Kentucky
The U.S. Attorney’s Office and the U.S. Secret Service jointly announced that the owner of a real estate transaction company in Bellevue, Ky., admitted in federal court yesterday that she defrauded financial institutions out of hundreds of thousands of dollars. Jennifer Groneck, 47, of Fort Thomas, Ky., pleaded guilty to one wire fraud count. Groneck acknowledged that she stole a combined $645,904.27 from various banks and a mortgage lender. Groneck coordinated real estate transactions on behalf of the buyer, seller, mortgage lender and real estate agents. After a house was sold, her company was responsible for disbursing all the money collected at settlement and to pay off the existing mortgages on the property, thus clearing the property title for new buyers. However, instead of paying off a seller’s mortgage as she was obligated to do, she stole the money that was wired to her from the buyer’s bank and used it to pay off mortgages on other properties that she had not paid due to her scheme to defraud. For instance, in April of 2011, she received a money transfer of $228,914.09 from a buyer’s bank during a closing on a home in Boone County. The money was supposed to be sent to the seller’s bank to help pay off the seller’s mortgage on the home. Instead, she was able to conceal from the seller’s bank that she used the money to cover the cost of other mortgages she failed to pay from previous transactions. The investigation was conducted by the U.S. Secret Service. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Laura K. Voorhees. Groneck will appear in U.S. District Court in Covington for sentencing on May 3, 2012. She faces a maximum prison sentence of 20 years. However, the court must consider the U.S. Sentencing Guidelines and the federal statute governing the imposition of sentences before imposing a sentence.
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Post by Press Release on Jan 29, 2012 8:20:00 GMT -5
Kentucky’s first ever state wide Prescription Drug Abuse Summit U.S. Attorney’s Office Eastern District of Kentucky
COVINGTON — The U.S. Attorneys in Kentucky announced today the key speakers for Kentucky’s first ever state wide Prescription Drug Abuse Summit. The one day event will include remarks from Kentucky Governor Steve Beshear, Wilfredo Ferrer, U.S. Attorney from the Southern District of Florida and University of Kentucky President Dr. Eli Capilouto. As the chief federal law enforcement officer in south Florida, U.S. Attorney Ferrer leads a broad effort to investigate and prosecute purveyors of rogue pain clinics, also known as “pill mills” in South Florida.Experts from UK’s medical, pharmacy and dental schools will participate in panel discussions. Law enforcement in Kentucky has made prescription pill abuse one of its highest priorities. In 2010 and 2011, the U.S. Attorney’s Office in the Eastern District of Kentucky prosecuted approximately 120 cases related to prescription pills; more than double the prosecutions involving any other type of drug. However, combating this problem cannot be solved by law enforcement alone. Success will require a joint effort from health care, social services, regulatory and education professionals. With this in mind, the U.S. Attorneys in Kentucky in conjunction with the University Of Kentucky (UK) Colleges of Medicine, Dentistry and Pharmacy are hosting a Prescription Drug Abuse Summit on February 1, 2012 at the UK Albert B. Chandler Hospital Pavilion in Lexington, Ky. The one day event will include presentations and panel discussions of the many facets of prescription pill drug abuse and its impact on Kentucky communities, schools, and institutions. “This summit will lead to increased communication and awareness among all those that are engaged in this fight,” said the Eastern District of Kentucky’s U.S. Attorney Kerry B. Harvey. “We encourage more industry professionals who are a part of this ongoing battle, to attend, so we can create a strong and united front to combat this pill epidemic.” Other speakers at the event include Van Ingram, Executive Director of Kentucky’s Office of Drug Control Policy, a mayor, police chiefs, a high school principal and a host of doctors from UK’s college of Medicine, Oral Health Science, and Pharmacy. The summit is free and open to industry professionals. For questions or to register or the pill summit, please contact the U.S. Attorney’s Office at 859-685-4805 or at william.allen.love@usdoj.gov
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Post by Press Release on Feb 8, 2012 20:53:02 GMT -5
Indiana man going to prison for having sex with Richmond 13 year old U.S. Attorney’s Office Eastern District of Kentucky
LEXINGTON — An Indiana man admitted in federal court Tuesday that he traveled to Richmond, Ky., in March 2011 and performed sexual acts with a 13-year-old female. James Michael Young, 32, pleaded guilty to one count of online enticement and will receive a minimum of ten years in prison when he is sentenced on May 10, 2012. Between December 2010 and March 2011, Young engaged in computer chats and text messaging with the underage victim, who he met online. Young admitted that the purpose of the chats was to persuade the girl to engage in sexual relations with him. Young also admitted that he traveled from Indiana to Richmond on March 15, 2011, crawled through the girl’s bedroom window, and had sexual contact with her. The U.S. Attorney’s Office and Federal Bureau of Investigation jointly made the announcement. The investigation was conducted by the FBI. Young will be required to register as a sex offender upon release. However, any sentence would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
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Post by Press Release on Feb 12, 2012 13:22:10 GMT -5
Nolan sentenced for role in robbing Richmond bank U.S. Attorney’s Office Eastern District of Kentucky
LEXINGTON — A Madison County, Kentucky, man was sentenced Thursday to 147 months in prison for his role in robbing a Richmond, Kentucky, bank out of thousands of dollars. United States Chief District Court Judge Jennifer B. Coffman sentenced Leon Rozell Noland, Jr., 50, for armed bank robbery and use of a firearm during a crime of violence. Noland previously admitted that on November 2, 2009, he robbed the Madison Bank in downtown Richmond, taking $36,500. Noland also admitted that during the robbery he pointed a firearm at the victim bank tellers and demanded money. Noland forced the tellers to open the bank’s safe at gun point, took the money inside the safe, and fled. Noland was apprehended by law enforcement on November 3, 2009 in Richmond. A search of the motel room in which Noland was staying resulted in the recovery of approximately $30,000 and a semi-automatic pistol. Law enforcement later recovered an additional $6,000 from an auto dealer in Somerset, Kentucky, where Noland had purchased a vehicle on November 2, 2009. Under federal law, Noland must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for five years. Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Paul J. Vido, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (Louisville Field Division), Mike Kaste, Acting Special Agent in Charge, Federal Bureau of Investigation, and Larry Brock, Chief, Richmond Police Department, jointly made the announcement today. The investigation was conducted by the Richmond Police Department, the Eastern Kentucky University Police, the Somerset Police Department, ATF, and FBI. The United States was represented by Assistant United States Attorney Robert M. Duncan, Jr.
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Post by Press Release on Feb 19, 2012 22:03:25 GMT -5
Clay County man sentenced to 150 months for role in drug conspiracy U.S. Attorney’s Office Eastern District of Kentucky
A Clay County man who previously attempted to shoplift items used to make methamphetamine was sentenced to 150 months in federal prison for his role in a drug conspiracy. Johnny Dale Marcum, 51, was sentenced by United States District Court Judge Amul R. Judge Thapar for conspiracy to manufacture methamphetamine. Marcum had numerous prior felony convictions which enhanced his sentence. Judge Thapar also ordered Marcum to pay $2,407.38 in restitution to cover the clean up cost of the methamphetamine laboratories. Marcum admitted that from March 2009 through June 30, 2010, he manufactured and assisted others in manufacturing Methamphetamine in Laurel County and other parts of eastern Kentucky. On June 30, 2010, authorities found Marcum in possession of pseudoephedrine and other items used to make methamphetamine. Earlier, Corbin City Police Department Officers had arrested Marcum after he attempted to shoplift components used to make methamphetamine. A subsequent search of his vehicle uncovered additional chemicals and equipment used in the manufacture of methamphetamine. Marcum also acknowledged that he had an anhydrous ammonia tank that he retrieved for a co-defendant, Oba Champlain, who cooked methamphetamine. Champlain had hid the tank from law enforcement and asked Marcum to get it. Champlain was sentenced to a 180 months in prison last October for his role in the conspiracy. Under federal law, Marcum must serve 85 percent of this prison sentence, and, upon release, will be under the supervision of the United States Probation Office for at least five years.
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Post by Press Release on Feb 24, 2012 16:43:40 GMT -5
Mine Officials Indicted for Safety Violations U.S. Attorney’s Office Eastern District of Kentucky
LONDON — Mine officials operating an underground Harlan County coal mine were indicted today by a London grand jury for subjecting miners to hazardous working conditions by violating safety standards. Mine operator Jefferson Davis, 53, of Harlan, Ky., mine superintendent Joseph Miniard, 45, of Smith, Ky., and mine foreman Bryant Massingale, 52, of Cawood, Ky., were indicted today along with their company Manalapan Mining Company, Inc. According to the indictment, in June of 2011 the mining officials violated mine safety laws in place to protect miners from possible roof falls and unsafe electrical cables.The mining officials allegedly allowed miners to work under an unsupportive roof and operate potentially dangerous electrical machinery that needed to be fixed. Additionally, the mine company allegedly did not follow its approved roof control plan which had been approved by the Mine Safety and Health Administration (MSHA). In order to protect miners from dangerous roof conditions, mining companies are required by law to submit a roof control plan to MSHA officials for approval and to adhere to the approved plan. Massingale and Miniard were individually indicted for intentionally failing to document hazardous conditions within the mine on numerous occasions in June of 2011. Miniard approved Preshift inspection reports completed by Massingale, knowing that Massingale had purposely failed to report hazardous conditions. As mine foreman, Massingale was obligated by law to inspect the working sections of the mine and the equipment before allowing miners to enter the mine and work their shift. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Joseph A. Main, Assistant Secretary of Labor, Mine Safety and Health Administration jointly announced the indictment today. The investigation was conducted by MSHA. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Patrick H. Molloy. A date for the defendants to appear in Federal court has not yet been set. If convicted each defendants face a maximum fine of $250,000 or a up to one year in prison. However, any sentence imposed by the court following a conviction would come after the court considered the U.S. Sentencing Guidelines and the federal statute governing the imposition of sentences. An indictment is an accusation only and the defendant is innocent until proven guilty.
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Post by Press Release on Feb 24, 2012 17:32:06 GMT -5
Man Admits to Conspiring to Distribute 100 Kilograms of Marijuana in Lexington and Georgetown U.S. Attorney’s Office Eastern District of Kentucky LEXINGTON — A Mexican man admitted in federal court Tuesday that he and six others conspired to distribute thousands of pounds of marijuana in Fayette and Scott Counties worth well over a million dollars. During the course of his guilty plea, Narcisco Munguia Pineda, 41, acknowledged that law enforcement discovered 300 pounds of marijuana in the trunk of his car when he was stopped in the Hamburg area by law enforcement on October 4, 2011. Authorities then executed a search warrant for his residence on Ice House Way and found more than 3,000 pounds of marijuana along with two firearms. Previously, Ismael Rodriguez Garcia, 37, Julio Cesar Robles, 33, Gilberto Rodriguez Hernandez, 32, Raul Rodriguez Rojas, 31, Luis Osvaldo Rodriguez Rojas, 38, each of Mexico, and Joaquin Diaz Verdin,19, of Lexington, pleaded guilty to their roles in the conspiracy. They were indicted by a federal grand jury in late 2011. At the same time as the discovery of the marijuana in Lexington, law enforcement was performing surveillance at a residence at Starting Gate Point in Georgetown, Ky. The surveillance culminated in a series of traffic stops of vehicles that left the Starting Gate Point residence. Diaz Verdin previously admitted that on October 4, 2011, he, Rodriguez Hernandez, and Rodriguez Rojas loaded approximately 300 pounds of marijuana into the trunk of his car at the Starting Gate Point residence. After leaving the residence, Diaz Verdin was pulled over by law enforcement and caught with the marijuana. Rodriguez Hernandez admitted in his guilty plea that he was driving a vehicle, with Robles as a passenger, that was loaded with over $1,800,000 in cash which represented the proceeds of drug trafficking. Prior to the traffic stop, law enforcement had seen Rodriguez Hernandez leave the Starting Gate Point residence. Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Robert L. Corso, Special Agent in Charge, U.S. Drug Enforcement Administration, jointly made the announcement. The investigation was spearheaded by the U.S. DEA with assistance from the Lexington Metro Police Department, Georgetown Police Department, Versailles Police Department, Richmond Police Department, Kentucky State Police, Frankfort Police Department, Nicholasville Police Department, Winchester Police Department, Garrard County Sheriff’s Office, Kentucky Office of Attorney General, and Scott County Sheriff’s Office. The United States was represented in the case by Assistant United States Attorney Robert M. Duncan, Jr. Munguia Pineda and the other men are currently scheduled to appear for sentencing in May before United States District Court Senior Judge Joseph M. Hood in Lexington. Munguia Pineda, Rodriguez Garcia, and Robles each face a minimum prison sentence of 10 years. Gilberto Rodriguez Hernandez, Raul Rodriguez Rojas, Luis Osvaldo Rodriguez Rojas, and Joaquin Diaz Verdin each face a minimum of five years in prison. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
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Post by Press Release on Feb 26, 2012 16:42:25 GMT -5
Booneville Discount Drugs pays $60,000 to settle Civil Claims U.S. Attorney’s Office Eastern District of Kentucky
LEXINGTON — The U.S. Attorney’s Office and the Drug Enforcement Administration jointly announced today that two pharmacists in Booneville, Ky., agreed to pay the U.S. Government thousands of dollars to settle civil claims concerning the manner in which the pharmacy tracked and dispensed controlled substances. James F. Carrico and James D. Maze, who both work at Booneville Discount Drugs, have paid the government a combined $60,000. According to the settlement agreement, from May 2008 through September 2009, Carrico’s DEA registrant number was used to improperly dispense controlled substances on 11 occasions. The government also contends there were 21 instances where Maze’s DEA registrant number was used to dispense controlled substances without a prescription and physician authorization. Additionally, the Carrico settlement agreement states that the pharmacy failed to track and maintain accurate inventory records of various controlled substances. Under federal law, a pharmacist may only dispense controlled substances in accordance with a written prescription signed by a practitioner. The law also places certain restrictions and limitations on a pharmacist’s ability to fill prescriptions for controlled substances. Further, pharmacists must maintain accurate inventory reports for controlled substances. As it relates to pharmacists, a DEA registrant number is an identification code assigned to them after they’ve been approved by the DEA to fill prescriptions for controlled substances that are written by a registered health care provider. According to the settlement agreement, a DEA audit showed there were 65 instances where Booneville Discount Drugs failed to maintain accurate controlled substance inventory records over the course of a year and a half. The audit revealed both shortages and surpluses of controlled substances. Controlled substances are drugs or other substances regulated by the government. Carrico has paid $40,000, and Maze paid $20,000. This agreement is neither an admission of liability on the part of the pharmacists nor a concession by the United States that its claims are not well founded. The investigation was conducted by the DEA and the U.S. Attorney’s Office. Assistant U.S. Attorney Valorie Smith represented the government in this case.
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Post by Press Release on Mar 3, 2012 21:45:20 GMT -5
Breathitt County Schools Superintendent Indicted for Vote Buyig Conspiracy U.S. Attorney’s Office Eastern District of Kentucky
LEXINGTON — The Breathitt County Schools Superintendent was arrested today pursuant to a federal indictment charging him with obstruction of justice, conspiracy to buy votes and making false statements to a federal agent. The three count Indictment, returned yesterday and unsealed today, alleges that 65-year-old Arch Turner of Booneville, Ky., conspired with others to buy votes in the November 2010 general election in Breathitt County. Additionally, when the FBI interviewed Turner in October 2010, he allegedly made false statements saying he had not given any candidate money for election purposes in the May 2010 primary election and that cash he withdrew from his bank account was for personal use and not for the purpose of buying votes. Turner is also accused of trying to persuade a person, during an FBI investigation, not to report Turner’s vote buying activity to law enforcement. Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Mike Kaste, Acting Special Agent in Charge, Federal Bureau of Investigation, Jack Conway, Attorney General of Kentucky, Office of the Attorney General, and Trial Attorney Brian Lichter from the Department of Justice in Washington, D.C., jointly made the announcement today. The investigation preceding the Indictment was conducted by the Federal Bureau of Investigation and the Office of the Attorney General. The Indictment was presented to the grand jury by Assistant United States Attorney Kenneth R. Taylor. A date for Turner’s appearance in United States District Court has not yet been set. If convicted, Turner faces a maximum prison sentence of 20 years. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences. The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty.
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Post by Press Release on Mar 7, 2012 20:40:55 GMT -5
Barbourville Man Convicted of Methamphetamine Related Charges U.S. Attorney’s Office Eastern District of Kentucky
LEXINGTON — The U.S. Attorney’s Office, the U.S. Forest Service, and the Corbin City Police Department jointly announced today that a Barbourville, Ky., couple was convicted by a London jury Thursday of methamphetamine related charges. The jury convicted Roscoe Dean Smith and his wife Darlene Smith, both 43, of conspiracy to manufacture and distribute at least 500 grams of a methamphetamine mixture and possession of equipment to manufacture methamphetamine in Knox and Laurel Counties. In the course of the trial, the jury heard evidence that from 2008 until July 2011, the Smiths conspired with others to manufacture methamphetamine. The couple had other individuals obtain pseudoephedrine to manufacture the meth and in exchange the Smiths either provided meth or cash. The Smiths made the meth at locations off Dan Westerfield Road in Laurel County, or in Barbourville, Ky. On November 16, 2010, law enforcement executed a search warrant at the Dan Westerfield Road location and discovered equipment used in the manufacture of meth. Also, evidence was presented to the jury that Roscoe Smith talked about traveling out of state to obtain equipment to manufacture meth. The investigation was conducted by the Two Rivers Task Force, the U.S. Forest Service and the Corbin City Police Department. The United States was represented in the case by Special Assistant U.S. Attorneys Michael D. Pratt and Assistant U.S. Attorney Lee Gentry. The Smiths are currently scheduled to appear for sentencing before United States District Court Judge Gregory Van Tatenhove in London, Ky., on July 12, 2012, at 2:30 p.m. They each face a minimum of 10 years in prison. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
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Post by Press Release on Mar 23, 2012 6:06:55 GMT -5
Hurd indicted as an unqualified mine foreman U.S. Attorney’s Office Eastern District of Kentucky
LONDON — A Vicco, Ky., man is accused of certifying mine safety records as an unqualified mine foreman. Timothy Allen Hurd, 32, was indicted by a London grand jury on nine counts of false certifications. According to the Indictment, Hurd pretended to be a mine foreman but was never certified by the Kentucky Office of Mine Safety and Licensing. Mine foremen are responsible for inspecting the mine for potentially hazardous conditions before miners enter the mine. They are also obligated to document their observations in the Preshift-Mine Examiner’s Report safety book. Only approved mine personnel are qualified to examine the mine, make entries and sign the safety book. On nine occasions between November of 2010 and January of 2011, Hurd allegedly signed and certified safety records when he was not a qualified mine foreman. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Joseph A. Main, Assistant Secretary of Labor for the Department of Labor, Mine Safety and Health Administration, jointly announced the indictment today. The investigation was conducted by MSHA. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Patrick H. Molloy. A date for the defendant to appear in Federal court has not yet been set. If convicted, Hurd faces a fine of up to $250,000 or a maximum prison sentence of five years. However, any sentence imposed by the court following a conviction would come after the court considers the U.S. Sentencing Guidelines and the federal statute governing the imposition of sentences.
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Post by Press Release on Apr 10, 2012 19:56:11 GMT -5
Breathitt County Woman Admits Role in Oxycodone Death U.S. Attorney’s Office Eastern District of Kentucky
LEXINGTON — A woman from Breathitt County, Ky., who admitted her role in the prescription drug overdose death of a woman will face at least 20 years in federal prison when she is sentenced in July. Judy McIntosh, 47, pleaded guilty March 28 to distribution of Oxycodone that resulted in death. She also pleaded guilty to a conspiracy charge. This case marks the first prosecution by the U.S. Attorney’s Office in the Eastern District of Kentucky charging a person with causing a death by distributing prescription medications. The Eastern District of Kentucky consists of 67 counties stretching from the Tennessee border to the Ohio border. According to the plea agreement, on October 2, 2010, a woman received a quantity of Oxycodone pills from McIntosh, consumed the pills, and later died at McIntosh’s home. The medical examiner’s report confirmed the cause of death was from an Oxycodone overdose. “Federal law provides that anyone who illegally distributes drugs, the use of which results in death or serious bodily injury shall receive a prison sentence of not less than 20 years and up to life,” said the Eastern District’s U.S. Attorney Kerry B. Harvey. “We intend to use every tool at our disposal and punish those who illegally distribute prescription drugs. This case should serve as a warning to those seeking to profit from illegally distributing these powerful drugs.” McIntosh also admitted that between August 2010 and June 2011, she conspired with others to distribute Oxycodone in Lee and Breathitt Counties. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge. Drug Enforcement Administration and Karen Kelley, President of Operation UNITE jointly made the announcement. The investigation was conducted by DEA and Operation UNITE. The U.S. Attorney’s Office was represented by Assistant United States Attorney Jason D. Parman. McIntosh will appear in Federal court in London for sentencing on July 25, 2012. The maximum penalty for the offense McIntosh admitted to is life in prison. The court must consider the U.S. Sentencing Guidelines and the Federal statute governing the imposition of sentences before issuing a sentence.
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Post by Press Release on Apr 12, 2012 17:13:39 GMT -5
Two From Breathitt County Convicted in Vote Buying Conspiracy U.S. Attorney’s Office Eastern District of Kentucky
LEXINGTON — A federal jury sitting in Lexington convicted two Eastern Kentuckians for buying votes in the May 2010 primary election in Breathitt County. The jury convicted Naomi Johnson, 61 and Earl Young, 44, of conspiring to buy votes and one count each of vote buying. The verdict was returned following two and a half days of trial and approximately three and a half hours of deliberation. Another co-defendant, Jackie Jennings, 61, pleaded guilty to two vote buying counts and a conspiracy charge during the first day of the trial. Evidence at trial proved that the three defendants conspired to buy votes for Michael Salyers, a candidate for county Magistrate. Testimony proved that Salyers was provided hundreds of dollars to pay individuals to cast their votes for him by absentee ballot. Evidence showed that the defendants traveled with voters to the courthouse. Young and Jennings verified that the voters voted. Voters were paid after informing Salyers they voted for him. One witness testified that he was paid $25. Salyers pleaded guilty to the vote buying conspiracy in February. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge of the FBI, and Jack Smith, Chief of the Public Integrity Division at the Department of Justice jointly made the announcement today. The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Ken Taylor and Richard B. Evans with the Public Integrity Division. Jennings, Johnson and Young will appear in federal court for their sentences on July 26. Salyers will be sentenced on May 23. Each defendant faces up to five years in prison.
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Post by Press Release on Apr 18, 2012 13:01:11 GMT -5
Whitley County Man Sentenced 84 Months for Weapons Offenses U.S. Attorney’s Office Eastern District of Kentucky
LONDON — A convicted felon living in Whitley County, Ky., was sentenced Friday for illegally possessing a variety of firearms and explosives. Danny C. Peace previously pleaded guilty to being a felon in possession of a firearm, possession of an unregistered silencer and being a convicted felon in possession of explosives. In August of last year, authorities searched Peace’s Whitley County residence and found detonating cords, an electric detonator, an explosive mixture and seven firearms. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Paul Vido, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Wendy Haney, Special Agent in Charge, U.S. Forest Service (USFS), and Rodney Brewer, Kentucky State Police Commissioner jointly announced the sentence. Peace must serve at least 85 percent of his prison sentence. Upon his release, Peace will have to serve 36 months of supervised release. The investigation was conducted by ATF. USFS, and KSP. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jason Parman.
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Post by Press Release on Apr 19, 2012 13:26:24 GMT -5
Williamsburg Man Sentenced to 35 Months for Drug Conspiracy U.S. Attorney’s Office Eastern District of Kentucky
LONDON — A Williamsburg, Ky.,. man who previously admitted providing prescription pills to a former Whitley County Sheriff was sentenced to 33 months in prison on drug charges. U.S. District Court Judge Gregory Van Tatenhove sentenced 35-year-old James A. Meradith on Friday for a conspiracy to distribute Oxycodone. Meradith admitted at his guilty plea that he gave three Oxycodone pills to former Whitley County Sheriff Lawrence Hodge in exchange for a sheriff’s department issued shotgun in December of 2010. Additionally, Meradith acknowledged he made trips to Jellico, Tenn. to obtain pills for Hodge. Hodge was sentenced in September of 2011 to more than 15 years in prison for conspiracies involving drugs, extortion and money laundering. According to Meradith’s plea agreement, he was part of a drug conspiracy with Hodge and other individuals from Whitley County starting sometime between November and December of 2010 up until February of 2011. Meradith distributed more than 300 pills during this time frame. Under federal law, Meradith must serve at least 85 percent of his prison sentence. Once he’s released, Meradith will serve 36 months of supervised release. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Paul J. Vido, Bureau of Tobacco, Firearms and Explosives (ATF) and Rodney Brewer, Kentucky State Police Commissioner jointly made the announcement today. The investigation was conducted by ATF and Kentucky State Police. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney W. Sam Dotson.
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Post by Press Release on May 21, 2012 19:38:39 GMT -5
Former state trooper convicted of carrying firearm while trafficking prescription narcotics U.S. Attorney’s Office Eastern District of Kentucky
LONDON — The U.S. Attorney’s Office, Kentucky State Police (KSP) and the Federal Bureau of Investigation (FBI) jointly announced today that a former state trooper, who previously pleaded guilty to federal drug charges, was convicted of carrying a firearm while trafficking prescription narcotics. A jury found 35-year-old Michael Fred Pennington guilty of carrying a firearm during and in relation to a drug trafficking crime. The jury reached the verdict late Friday afternoon after two hours of deliberation following a day and a half trial. Pennington pleaded guilty last week to two counts of drug trafficking. He worked out of KSP’s London post. In September of 2011, Pennington offered a woman a Lortab pill in exchange for sex. The woman alerted law enforcement, so once Pennington arrived at her London residence and gave her the pill, detectives with KSP immediately intervened. Pennington resigned hours later. Testimony proved that Pennington tried to use his authority, including his firearm, to intimidate the woman to engage in sex for drugs. Pennington was off duty at the time, but still was in full uniform, carrying his gun, when he gave her the pill. “This case illustrates that the Kentucky State Police continues to react quickly regarding allegations of misconduct involving an employee,” said Rodney Brewer, Kentucky State Police Commissioner. “Although this is a rare occurrence, it underscores the public oath we have taken to protect the citizens of the Commonwealth from all criminals." A day before he was arrested, Pennington escorted a social services worker to the woman’s residence to investigate child abuse allegations. Those allegations were later found to be unsubstantiated. While at the residence, Pennington spotted a crushed Lortab pill and found a container with some additional pills in her residence. He told her if she had sex with him he would not arrest or charge her; the woman informed KSP officials of Pennington’s inappropriate actions and KSP began an undercover investigation. The Lortab pill Pennington provided the woman was one of several he had taken from her residence the day before. KSP officials found the other pills in his cruiser the next morning. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Rodney W. Brewer, Kentucky State Police Commissioner, and Perrye Turner, Special Agent in Charge, FBI, jointly announced the conviction. The investigation was conducted by KSP and the FBI. Assistant U.S. Attorney Hydee Hawkins prosecuted the case on behalf of the U.S. Attorney’s Office. Pennington is scheduled to be sentenced on September 6. He faces a maximum of 10 years on each drug offense and a minimum of five years on the firearm offense.
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Post by Press Release on Jun 1, 2012 6:21:35 GMT -5
Former Candidate for Magistrate Sentenced for Vote Buying Conspiracy U.S. Attorney’s Office Eastern District of Kentucky
LEXINGTON — A Breathitt County man was sentenced for buying votes while running for the office of county magistrate in May 2010. U.S. District Court Judge Karen Caldwell sentenced 48-year-old Michael Salyers yesterday afternoon to two months of incarceration for conspiracy to buy votes. Judge Caldwell also ordered Salyers to spend six months in home detention and perform 120 hours of community service. Salyers previously admitted he was provided hundreds of dollars that he used to pay people to vote for him. He also provided money to other co-conspirators to buy votes in the election. According to his plea agreement, Salyers met people at a store he owned in the county, arranged a deal, and then sent a conspiracy member with that person to verify that the voters actually voted. Salyers either gave cash to the voter or had a co-conspirator pay the person. Last month, six others either pleaded guilty or were convicted by a jury for their roles in conspiring to buy votes in the May 2010 preprimary election in Breathitt County. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, Jack Smith, Chief of the Public Integrity Section at the Department of Justice and Jack Conway, Kentucky Attorney General jointly announced sentence. The investigation was conducted by the FBI and the Kentucky Attorney General’s Office. Ken Taylor and Rich Evans represented the United States in this case.
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Post by Press Release on Jun 9, 2012 7:17:19 GMT -5
Two Knox County Men Convicted of Multiple Methamphetamine Charges U.S. Attorney’s Office Eastern District of Kentucky
LONDON — Two men from Knox County, Ky., were convicted by a jury of several methamphetamine related charges, including conspiracy to distribute methamphetamine to individuals under the age of 21. A federal jury in London, Ky., also convicted 47-year old Russell Collins, and 46-year-old Eddie Ray Wilburn of conspiracy to manufacture 500 or more grams of a methamphetamine mixture, conspiracy to distribute 500 grams or more of a methamphetamine mixture and possession of equipment to manufacture methamphetamine. A third defendant, 35-year-old Richard Brosky, was convicted of conspiracy to manufacture 50 grams or less of a methamphetamine mixture. The jury returned the verdict Tuesday after two hours of deliberations following a six day trial. Evidence at trial proved that from January of 2009 through April 2011, Collins, Wilburn and others manufactured meth behind a church across the street from their residences in Knox County. Testimony at trial proved that numerous people frequented the residences of Wilburn and Collins to obtain meth. The two defendants also sold meth out of another co-defendant’s residence that was near Barbourville High School. The buyers either traded cash, pseudoephedrine, or other items used to make meth in exchange for the drug. Many of the buyers were females under 21-years of age; one woman under 21 testified Wilburn provided her meth in exchange for sex. Jurors heard testimony that Collins and Wilburn bragged about giving meth to young women. Witnesses testified that authorities stopped Collins’ vehicle in Indiana and found an empty tank of anhydrous ammonia, a key ingredient used to make meth. Officials later searched the residences of Collins and Wilburn and discovered other equipment used to manufacture meth. Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Wendy Haney, Supervisory Special Agent, United States Forest Service, jointly made the announcement. The investigation was conducted by the Two Rivers task Force, The United States Forest Service and the Kentucky State Police Department. The United States was represented in the case by Special Assistant United States Attorney Michael D. Pratt and Assistant United States Attorney Thomas Lee Gentry. The defendants are currently scheduled to appear for sentencing before United States District Court Judge Gregory F. Van Tatenhove in London, Ky., on September 27, 2012, at 1:30 pm. Collins and Wilburn each face a maximum sentence of life. Brosky faces a maximum of twenty years. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
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Post by Press Release on Jun 19, 2012 6:58:15 GMT -5
Marsillett sentenced to 240 months for distribution of pills in Eastern Kentucky U.S. Attorney’s Office Eastern District of Kentucky
LONDON — A Floyd County man, who faced the most serious charges in Kentucky’s historic drug roundup in 2009, was sentenced to 240 months for the illegal distribution of thousands of pills in Eastern Kentucky. United States District Judge Gregory Van Tatenhove sentenced 55-year-old James Marsillett II yesterday for the offense of operating a continuing criminal enterprise. In October of 2009, Marsillett was charged in the largest drug sweep in Kentucky’s history, resulting in the arrest of more than 500 people. All of the 36 defendants charged federally in the roundup have been convicted. Marsillett previously admitted that from 2007 to 2009, he funded monthly trips for numerous co-defendants to see Dr. Michael Shook in Florida. Shook worked at Lauderhill Medical Center in Ft. Lauderdale, Fla., and prescribed large quantities of Methadone and Oxycodone. “Today’s sentence is a significant victory for our law enforcement partners in the ongoing struggle to combat prescription drug abuse,” said U.S. Attorney Kerry B. Harvey. “Mr. Marsillett’s criminal conduct added to the misery caused by prescription pill abuse in many of our communities. We are pleased that he has received justice for playing a leading role in a large drug trafficking organization and hope this sentence will send a warning to others who may be inclined to engage in similar conduct.” Shook was sentenced to four years in federal prison last year for unlawfully dispensing Oxycodone. He admitted that he spent little time evaluating patients before writing a prescription for them. The patients Marsillett sent to Shook paid approximately $2,000 for an MRI, a doctor’s visit and the prescription. Marsillett acknowledged that the co-defendants he sent to the Florida pain clinic gave him half of the pills they obtained which he then sold in Eastern Kentucky. Marsillett used the proceeds from the drug trafficking to fund the trips to Florida. According to court documents, in 2006 and 2007, Marsillett traveled with others to Urgent Care pain clinics in Cincinnati and Philadelphia to obtain Methadone pills for distribution in Eastern Kentucky. Marsillett will have to serve 85 percent of his prison sentence. Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation and Rodney Brewer, Kentucky State Police Commissioner jointly made the announcement. The investigation was conducted by FBI, Kentucky State Police, Operation UNITE and Appalachia HIDTA. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Roger West.
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Post by Press Release on Jul 14, 2012 7:55:12 GMT -5
Smiths receive lengthy sentences for a drug conspiracy U.S. Attorney’s Office Eastern District of Kentucky
LONDON — An eastern Kentucky couple, who a federal judge said played significant roles in getting several others hooked on methamphetamine, received lengthy sentences for a drug conspiracy. On Thursday, U.S. District Court Judge Gregory F. Van Tatenhove sentenced 44-year-old Roscoe Dean Smith of London and his wife Darlene Smith, 44, of Corbin to 222 and 188 months respectively for conspiracy to manufacture 500 grams or more of a methamphetamine mixture. Under federal law, this offense carries a mandatory minimum sentence of 10 years. The couple was also sentenced for possessing equipment used to manufacture methamphetamine. Judge Van Tatenhove enhanced each defendant’s sentences because authorities found a loaded shotgun in the room that was used to make the meth. From 2008 through 2011, Roscoe Smith manufactured methamphetamine in Knox and Laurel Counties. He exchanged it with other individuals who provided him pseudoephedrine he used to cook the meth. Darlene Smith coordinated and assisted others in obtaining pseudoephedrine. Also, according to testimony at trial, Roscoe Smith traded meth for sex with a female. The couple was convicted by a jury of the offenses in March of this year following a three-day trial. Under federal law, the Smiths must serve 85 percent of their prison sentences, and, upon release, will be under the supervision of the United States Probation Office for at least five years. Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Wendy Haney, Special Agent in Charge, United States Forest Service, and Rodney Brewer, Commissioner of the Kentucky State Police, jointly announced the sentence. The investigation preceding the Indictment was conducted by United States Forest Service and the Kentucky State Police. The United States was represented in the case by Special Assistant United States Attorney Michael D. Pratt and Assistant United States Attorney Lee Gentry.
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Post by Press Release on Jul 29, 2012 6:41:07 GMT -5
Three sentenced for their role in vote buying conspiracy U.S. Attorney’s Office Eastern District of Kentucky
Three Jackson, Ky., individuals were sentenced for their roles in a vote buying conspiracy in the May 2010 primary election in Breathitt County. U.S. District Judge Karen Caldwell sentenced 61-year-ld Naomi Johnson and 44-year-old Earl Young Thursday to four months in prison for conspiring to buy votes and vote buying. Judge Caldwell sentenced 62-year-old Jackie Jennings to two months for vote buying and conspiracy. Judge Caldwell ordered each of three defendants to serve 120 hours of community service and recommended they spend those hours educating the public about the dangers of vote buying. Evidence at the defendants’ trial in April proved that all three conspired to buy votes for Michael Salyers, a candidate for county magistrate. Testimony revealed that Salyers was provided hundreds of dollars to pay individuals to cast their votes for him by absentee ballot. Evidence showed that the defendants traveled with voters to the courthouse. Young and Jennings verified that the voters voted. Voters were paid after informing Salyers they voted for him. Johnson and Young were found guilty at the April trial while Jennings pleaded guilty the first day of the same trial. Salyers was sentenced to 60 days in jail in May. He pleaded guilty to the vote buying conspiracy in February. A total of 11 people have either pleaded guilty or been convicted of charges related to buying votes in Breathitt County’s May 2010 primary election. Jennnings, Johnson and Young will have to serve at least 85 percent of their prison sentences. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge of the FBI, Jack Conway, Kentucky Attorney General and Jack Smith, Chief of the Public Integrity Section at the Department of Justice jointly made the announcement today. The investigation was conducted by the Kentucky Attorney General=s Office and the FBI. The U.S. Attorney's Office was represented by Assistant U.S. Attorney Ken Taylor and Richard B. Evans with the Public Integrity Section.
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Post by Press Release on Aug 24, 2012 17:46:07 GMT -5
Fourteen from eastern Kentucky indicted for defrauding health care and social security U.S. Attorney’s Office Eastern District of Kentucky
Federal indictments accuse fourteen people across areas of eastern Kentucky of defrauding health care and social security benefit programs. The defendants were charged in 11 indictments that were returned Thursday by a London grand jury. The indictments allege the defendants defrauded one or more of the assistance programs out of more than a million dollars combined. According to the indictments, the defendants stole from the Social Security Administration (SSA), Kentucky Department of Medicaid Services (DMS) and Health and Human Services (HHS) for periods of a few years to as long as approximately two decades in one instance. The indictments charge the defendants, ranging from 25 to 70 years-old with social security benefit fraud, supplemental security benefit fraud, theft of government property, health care fraud, and making false statements. Most of the indictments allege the defendants intentionally concealed their true living arrangements from social security agents for years. Many falsely reported they were separated from their spouse when in reality they were living with their spouse and receiving financial support from them. Hiding these facts allowed the defendants to continue receiving financial assistance from DMS and SSA when they were not eligible for the programs. The Social Security Administration offers a benefit program known as Supplemental Security Income (SSI). SSI provides financial support to disabled people with limited or no income or resources. Based on an agreement between Kentucky and the SSA, Kentuckians who are eligible for SSI also qualify for Medicaid coverage. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Guy P. Fallen, Special Agent in Charge, Social Security Administration jointly announced the indictments. These cases were investigated by the SSA. Assistant U.S. Attorneys Stephen C. Smith and W. Sam Dotson represented the U.S. Attorney’s Office in these cases. The health care fraud and theft of government property charges carry a maximum penalty of 10 years in prison. The charges of social security fraud and making false statements carry a maximum of 5 years in prison. The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty.
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Post by Press Release on Sept 10, 2012 17:29:53 GMT -5
London, England Man Indicted for Traveling to Eastern Kentucky to Engage in Sex Acts With a Minor U.S. Attorney’s Office Eastern District of Kentucky
A London, England man was indicted for traveling to the U.S. to have sexual contact with a minor. A federal grand jury in Lexington, Ky., indicted 41-year-old Solomon Blue Waters Thursday for using a facility in interstate or foreign commerce to persuade, induce, entice, and coerce a minor to engage in sexual activity, and for traveling into the United States for the purpose of engaging in illicit sexual conduct. The Indictment alleges that beginning around mid-June, 2011 until approximately July 6, 2012, Waters used the internet to induce a minor to engage in sexual activity. Last week, Waters traveled from the United Kingdom to Fayette County to engage in sexual conduct with a minor according to the indictment. On August 28, federal authorities arrested Waters after he arrived at Blue Grass Airport. Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Paul Carpenter, Resident Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI - Northern Kentucky Branch), and Lt. Shane Bates, Commander, Kentucky State Police (KSP), Electronic Crimes Branch, jointly made the announcement today. The investigation preceding the Indictment was conducted by the DHI, HSI, and KSP. The Indictment was presented to the grand jury by Assistant United States Attorney David A. Marye. Waters’ appearance before the United States District Court has not yet been set by the Court in Pikeville. Inducing a minor to engage in sexual activity carries a minimum penalty of 10 years in prison and up to life. The charge of traveling in interstate commerce to engage in illicit sexual conduct carries a maximum prison term of 30 years. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences. The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty. thetimestribune.com/sports/x2056635239/Oh-so-close
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Post by Press Release on Sept 10, 2012 17:55:22 GMT -5
Former State Trooper Sentenced 74 Months for Drug Trafficking and Firearm Offenses U.S. Attorney’s Office Eastern District of Kentucky
A former Kentucky State Police Trooper who tried to trade a woman drugs in exchange for sex was sentenced to 74 months in prison today for drug trafficking and carrying a firearm while trafficking prescription narcotics. In May, a jury convicted 35-year-old Michael Fred Pennington of the firearm charge. Prior to his trial, Pennington pleaded guilty to two counts of drug trafficking. He previously worked out of KSP’s London post. Testimony at trial proved that Pennington tried to use his authority, including his firearm, to intimidate the woman. Pennington was off duty at the time, but still was in full uniform, carrying his gun, when he gave her the pill. “This case illustrates that the Kentucky State Police continues to react quickly regarding allegations of misconduct involving an employee,” said Rodney Brewer, Kentucky State Police Commissioner. “Although this is a rare occurrence, it underscores the public oath we have taken to protect the citizens of the Commonwealth from all criminals." In September of 2011, while at the woman’s residence on official duty, Pennington spotted a crushed Lortab pill and found a container with some additional pills in her residence. After confiscating the pills, he told her if she had sex with him he would not arrest or charge her; the woman informed KSP officials of Pennington’s inappropriate actions. The next day Pennington, off duty at the time, offered the woman a Lortab pill in exchange for sex; once Pennington arrived at her London residence and gave her the pill, detectives with KSP immediately intervened. Pennington resigned hours later. The Lortab pill Pennington provided the woman was one of several he had taken from her residence the day before. KSP officials found the other pills in his cruiser the next morning. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Rodney Brewer, Kentucky State Police Commissioner, and Perrye Turner, Special Agent in Charge, FBI, jointly announced the sentence. The investigation was conducted by KSP and the FBI. Assistant U.S. Attorney Hydee Hawkins prosecuted the case on behalf of the U.S. Attorney’s Office. Pennington will have to serve at least 85 percent of his prison sentence. Following his release, he will be under the supervision of the U.S. Probation Office for four years.
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Post by Press Release on Nov 14, 2012 21:07:53 GMT -5
Arch Turner
Former Breathitt County Schools Superintendent Sentenced to 24 Months for Vote Buying Conspiracy U.S. Attorney’s Office Eastern District of Kentucky
The former Breathitt County Schools Superintendent who previously admitted distributing money to others to buy votes was sentenced today to 24 months in federal prison. U.S. District Judge Karen Caldwell sentenced 66-year-old Arch Turner for conspiring to buy votes. She also fined him $250,000 and ordered him to pay a special assessment of $1,000; both of which are due immediately. Turner was taken into custody following the hearing. Turner admitted that during the spring of 2010 he provided money to individuals to buy votes for candidates in the May 2010 primary election in Breathitt County. Turner acknowledged he distributed the money at a meeting he arranged with a group of people. According to his plea agreement, Turner also received money from an individual to be used for vote buying. Turner served as the schools superintendent from 2005 until July of 2012. A total of 11 people have pleaded guilty or been convicted in federal court of vote buying related charges stemming from Breathitt County’s May 2010 primary election. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI and Jack Conway, Kentucky Attorney General jointly announced the sentence. The investigation was conducted by the Kentucky Attorney General’s Office and the FBI.
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Post by Press Release on Dec 3, 2012 12:55:17 GMT -5
Successful Statewide Health Care Fraud Task Force U.S. Attorney’s Office Eastern District of Kentucky
The United States Attorneys for the Eastern and Western Districts of Kentucky announced the successful completion of their fifth statewide conference on combating health care fraud with a focus today on prescription drug abuse; one of our nation’s most urgent, destructive and widespread challenges. “These conferences complement our efforts to root out health care fraud and recover funds for vital publicly funded programs such as Medicare and Medicaid,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “These conferences have become a national model on how to employ all the tools available, through federal, state and private partnerships, to successfully combat health care fraud,” stated David J. Hale, United States Attorney for the Western District of Kentucky. “Senior officials from the Department of Health and Human Services, and the Food and Drug Administration praised our Districts’ collaborative efforts with law enforcement agencies, during presentations today, on national trends in health care fraud,” concluded Hale. More than 125 participants attended the day-long conference including federal and state law enforcement officials, state regulators and administrators, and private sector anti-fraud units. New tools to identify and analyze fraudulent schemes were discussed in the context of Medicare Part D prescription claims; misbranding and counterfeit drug schemes in the United States and abroad. A Representative from the Department of Veterans Affairs discussed its important role in combatting health care fraud. Attendees heard from two attorneys who prosecuted groundbreaking prescription drug cases in the Eastern District of Kentucky. Assistant U.S. Attorney Roger West discussed the investigation and prosecution of a Louisiana pain clinic owner and two of his corporations that unlawfully dispensed thousands of pills to Kentuckians. The defendant, Michael Leman, was the first pain clinic owner ever prosecuted in Kentucky’s eastern district. He received 15 years in prison for conspiracies to launder money and distribute controlled substances. Assistant U.S. Attorney Jason Parman spoke about his prosecution of Judy McIntosh from Breathitt County who distributed Oxycodone to an individual that overdosed and died from the pills. A federal judge sentenced McIntosh to 27 years in prison. The case marked the Eastern District’s first federal prosecution of an individual for causing an overdose death on prescription drugs. The Department of Justice has dedicated significant resources toward fighting health care fraud on a nation-wide basis. This effort by both Kentucky United States Attorneys reflects that priority. Since 1986 more than $17 billion has been collected by U.S. Attorneys’ Offices nation-wide from cases involving fraud against federal health care programs. The recently enacted Affordable Care Act provides additional tools and resources to fight fraud in the health care system by providing an additional $350 million over the next 10 years through the Health Care Fraud and Abuse Control Account. The Act toughens sentencing for criminal activity, enhances screenings and enrollment requirements, encourages increased sharing of data across government, expands overpayment recovery efforts, and provides greater oversight of private insurance abuses. For information on the 2009 Health Care Fraud and Abuse Control Program Report, please visit: www.justice.gov/dag/pubdoc/hcfacreport2009.pdf
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Post by Press Release on Dec 3, 2012 13:03:16 GMT -5
Owner of Ohio Pain Clinic illegally dispensed prescription drugs to eastern Kentuckians U.S. Attorney’s Office Eastern District of Kentucky
A man who owned two pain clinics in Florida and Ohio admitted he laundered money he received from his clinics that illegally dispensed prescription drugs to eastern Kentuckians. Jody L. Robinson, 38, from Portsmouth, Ohio pleaded guilty late Thursday afternoon to conspiracy to launder money in federal court in Covington. A co-defendant, William Muldoon, 34, of Margate, Fla., also pleaded guilty to a money laundering conspiracy charge. Robinson hired Muldoon to advertise the clinics. Robinson acknowledged that from July of 2008 until September of 2009, he made more than $400,000 using a doctor to unlawfully write prescriptions to patients from Lawrence, Boyd and Greenup Counties in Kentucky. Patients from West Virginia, Ohio and Tennessee also obtained prescriptions from the clinics. The patients paid between $150 and $160 in cash for a prescription that consisted mostly of Oxycodone. The prescriptions were typically filled for $300 at the clinics’ in-house pharmacy. According to his plea agreement, Robinson opened a pain clinic in Ohio because it was more convenient for patients and because of the pressure he felt from Florida media reports on rogue pain clinics that service out of state patients. Robinson, who previously worked in the automotive industry, admitted that he opened a pain clinic known as Florida Global Medical in July of 2008 because he had heard about the profit potential. Muldoon admitted he was paid at least $30,000 to build a website for the Florida clinic, develop medical software and create flyers to advertise the clinics’ services. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation and Rodney Brewer, Kentucky State Police Commissioner jointly announced the guilty pleas. The investigation was conducted by the FBI and KSP. Assistant U.S. Attorney Roger West represented the U.S. Attorney’s Office in this case. Robinson and Muldoon will appear for sentencing on March 11, 2013. Each defendant faces a maximum of 20 years in prison and a $500,000 fine. However, the court must consider the U.S. Sentencing Guidelines and the federal statutes before imposing a sentence.
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Post by Press Release on Dec 20, 2012 17:39:24 GMT -5
Florida Doctor Convicted Of Illegally Prescribing Pills To Hundreds Of Kentuckians U.S. Attorney’s Office Eastern District of Kentucky
A federal jury convicted a Florida doctor of conspiring with a pain clinic owner and others to illegally prescribe hundreds of thousands of pills to Kentuckians. The Ashland jury convicted 57-year-old Dr. Clara S. Rodriguez-Iznaga of conspiracies to distribute controlled substances, and to launder money. The jury returned the guilty verdict yesterday after approximately two hours of deliberation following six and a half days of trial. Approximately 30 people have been charged and convicted for their roles in drug Conspiracies related to this case. According to evidence at the trial, in a one year span starting in 2008, Rodriguez-Iznaga made approximately $641,000 in cash by unlawfully prescribing 600,000 oxycodone pills at her pain clinic in Florida. Most of her patients traveled from West Virginia, southern Ohio and Boyd, Lawrence and Greenup counties along with other eastern Kentucky counties. Witnesses testified that, while they went to other Florida pain clinics to obtain pills, Rodriguez-Iznaaga was the easiest doctor to obtain a prescription from and that she prescribed the highest quantity of medication. Testimony also proved that the defendant conducted little or no examination before writing the prescriptions. Rodriguez-Iznaga saw as many as 30 to 35 patients a day, collecting $150 to $160 cash for each office visit. She also supervised the in-house pharmacy which often charged more than $1,000 in cash to fill a prescription. Rodriguez-Iznaga opened Florida Global Medical pain clinic in June 2008 with a codefendant. They used fliers to solicit Kentucky, Ohio and West Virginia patients. Over 600 patients came to her clinic from those states. The clinic grossed $1.9 million in one year. In an attempt to thwart investigators, Rodriguez-Iznaga and Robinson hired a security guard to watch for informants and undercover law enforcement officers. Robinson pleaded guilty last month to a money laundering conspiracy charge. He is scheduled to be sentenced in March 2013. Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, Rodney Brewer, Kentucky State Police Commissioner, and Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration jointly announced the conviction. The investigation was conducted by the Kentucky State Police; FBI in Kentucky and Miami; DEA Diversion in Ohio and Miami; Operation UNITE, Appalachia HIDTA, and the Pikeville Police Department. Assistant U.S. Attorney Roger West represented the U.S. Attorney’s Office in this case. Rodriguez-Iznaga will be sentenced in April of 2013. She faces a maximum of 20 years on both charges. The court must consider the U.S. Sentencing Guidelines and the federal statues before imposing a sentence.
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Post by Press Release on Jan 22, 2013 20:46:07 GMT -5
London Doctor Admits Evading Hundreds of Thousands of Dollars in Taxes U.S. Attorney’s Office Eastern District of Kentucky
A London, Ky., physician, who worked in eastern Kentucky and Tennessee, admitted he evaded hundreds of thousands of dollars in federal income taxes. Werner Grentz, 64, pleaded guilty today to tax evasion in front of U.S. District Judge Gregory F. Van Tatenhove. As part of his plea, Grentz agreed to pay the IRS approximately $900,000. Grentz admitted he made $356,073 in taxable income in 2009 working as an independent physician contractor for a hospital in Jellico, Tenn., and a medical office in London, Ky. In order to hide his income, Grentz had his earnings deposited into bank accounts of companies that he controlled, and he did not file a tax return or pay federal income taxes. Grentz admitted that he failed to pay $900,068 in taxes since 1999. He was indicted in April of last year. Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement today. The investigation preceding the indictment was conducted by the Internal Revenue Service, Criminal Investigation Division. The United States is represented in the case by Assistant United States Attorney John Patrick Grant. Grentz is scheduled to appear for sentencing on May 16 at 2:30 p.m., in Federal court in London. He faces a maximum prison sentence of five years. However, the court must consider the United States Sentencing Guidelines and the federal statute before imposing a sentence.
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