WHITESBURG, Ky. — A Letcher County man is in custody following an hours-long standoff with Kentucky State Police that began with a domestic violence investigation early Friday morning.

Troopers were called to Buck Road in Whitesburg just after 4 a.m. after receiving a report of a domestic assault.

According to KSP, the individuals involved had fled to a nearby home before officers arrived. When troopers attempted to make contact at the residence, authorities say a man barricaded himself inside with several other people and refused to come out.

After a brief standoff, two women and another man exited the home and told troopers that Dusty Shell, 36, of Emmalena remained inside armed with a firearm, along with another man.

Kentucky State Police secured the area and called in the agency’s Special Response Team. Following negotiations, Shell surrendered without incident.

Shell was taken to the Letcher County Jail and charged with second-degree assault related to domestic violence, second-degree terroristic threatening and parole violations.

Police also arrested Amy Griffith, 45, of Hindman on an unrelated out-of-state warrant.

The investigation remains ongoing.

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PIKEVILLE, Ky. — A group of local investors based in Pikeville have officially launched Blue Gem Capital, a new angel investment fund dedicated to supporting companies originating in the Central Appalachian region and businesses conducting substantial operations within the region.

Blue Gem Capital will make equity and equity-like investments in early-stage to mid-sized Main Street and high-growth small businesses. The Fund is designed to cultivate a diverse portfolio of investment opportunities across various industries and stages of growth, with a strong emphasis on regional economic development.

The Fund is currently capitalized at $1.1 million, raised from 14 private investors along with support from Kentucky-based Commonwealth Seed Capital Fund.

Blue Gem Capital is managed by its private investors, who collectively review and approve all investment transactions. The majority of investments will be made within the Central Appalachian region, reinforcing the Fund’s commitment to strengthening local businesses and communities.

Rick West, Chairman of Blue Gem Capital and a longtime regional business leader and investor, emphasized the long-term vision behind the initiative.

“Forming a fund like this has been a goal of our investor group for some time,” said West. “We believe there is tremendous untapped potential in Central Appalachia. Blue Gem Capital is perfectly positioned  to support promising, emerging companies in need of growth capital while also creating meaningful opportunities for community-minded investors to invest back into the region.”

Jessica Bledsoe, Director of Impact Investing at the Foundation for Appalachian Kentucky, highlighted the importance of expanding access to capital in the region.

“We are fortunate to have a fund like Blue Gem Capital rooted right here in our region,” said Bledsoe. “Access to early-stage capital has historically been one of the biggest barriers facing entrepreneurs in Central Appalachia. This fund represents more than investment dollars. It represents belief in our people, our ideas, and our future. With support from partners like the Foundation for Appalachian Kentucky, the U.S. Economic Development Administration (EDA), the Appalachian Regional Commission (ARC), Appalachian Investors Alliance (AIA), and SOAR, we are building the infrastructure entrepreneurs need to grow businesses, create jobs, and strengthen our local economy.”

Blue Gem Capital is part of a multi-state network of angel funds managed by the Appalachian Investors Alliance. Through this network, the Fund can leverage shared expertise, co-investment opportunities, and regional collaboration to better support portfolio companies and investors alike.

Entrepreneurs seeking investment and individuals interested in learning more about becoming investors can visit https://bluegemcap.com. Applications and additional information are available online.

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ABINGDON, Va. — Two people pleaded guilty in federal court this week to conspiring to distribute meth in Wise County.

Randall Neil Peaks, 53, entered a guilty plea on Wednesday and Elizabeth Ann Sexton, 36, pleaded guilty on Friday.

Both had been charged with conspiracy to distribute more than 500 grams of meth. Peaks pleaded guilty to that charge, while Sexton pleaded guilty to a lesser charge involving more than 50 grams.

Peaks now faces a potential life sentence, while Sexton faces up to 40 years.

Both are being held in the Southwest Virginia Regional Jail at Abingdon. Sentencing dates have not yet been set.

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FRANKFORT, Ky. — A Floyd County man who was indicted on armed drug trafficking charges earlier this year will remain behind bars while he awaits a resolution to his case.

David Lee Ousley, 44, of Martin, was arrested Jan. 15, after Kentucky State Police raided his home and seized nearly three-quarters of a pound of meth, 7 lbs. of marijuana, an assortment of pills, more than $6,700 in cash and more than 30 guns.

A week later, his case was bumped up to federal court, when he was indicted for conspiracy to distribute more than 500 grams of meth, possession of more than 50 grams of meth with the intent to distribute, and possession of a firearm in a drug-trafficking crime. If convicted, he could face a minimum of 15 years in prison, up to a maximum of two consecutive life sentences.

His attorney requested a detention hearing to see if he could qualify for release on bail. That hearing was held Tuesday in Frankfort federal court, and on Wednesday, a federal magistrate ruled that Ousley would remain in jail.

In his detention order, the judge concluded there were no pretrial release conditions he could set that would guarantee the safety of the community, due to the seriousness of the charges, Ousley’s likelihood of reoffending, and his history of violence, substance abuse and mental illness.

Ousley is currently being held in the Grayson County Detention Center. His trial has been set for June 11.

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Training will allow for advanced care of patients.

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Experts talk about amount of evidence, processes, reasons for delay, and possible release from home incarceration.

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State Crime Lab employee explains delay in DNA evidence processing.

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WHITESBURG, Ky. — After a nearly six-month delay, the murder case against a former Letcher County sheriff is heading back to court.

Former Letcher County Sheriff Shawn Mickey Stines is charged with murder for the Sept. 19, 2024, shooting death of Letcher District Judge Kevin Mullins in the judge’s chambers.

The parties were last in court on Dec. 18, but that hearing was abruptly canceled before it began, after defense attorneys raised questions about whether Special Judge Christopher Cohron should recuse himself from the case, due to his prior relationship with Mullins.

That was quickly followed by a motion for recusal on Dec. 29. Judge Cohron denied that motion March 6. Stines then filed an affidavit asking the Supreme Court to remove Cohron from the case, which the high could denied April 18.

With the his status now decided, Cohron has now ordered the parties to appear at the Leslie County Courthouse on June 5. In his order, the judge said he wants to receive a status update from the prosecution and defense, and he said he would consider all pending motions.

Matters still pending before the court include:

• A motion by the prosecution to move the trial out of Letcher County and not to any adjacent county. The defense has objected to this request.
• A motion by the prosecution for a second psychiatric examination of Stines, which was made after the results of the first examination, also requested by the prosecution and conducted at the Kentucky Correctional Psychiatric Center, came back.
• A motion by the defense to set bond for Stines.

The hearing will take place in Leslie County District Court at 10 a.m.

A copy of the judge’s order follows:

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PRESTONSBURG, Ky. — A third high-ranking employee has filed suit against Mountain Comprehensive Care Center, claiming she was fired for not following orders to submit false billing codes.

Kristy Stiltner, of Van Lear, filed her complaint May 1. In it, she says she was a 22-year employee of the organization who most recently served as Mental Health Director.

Stiltner makes claims that she was told to engage in improper billing practices in order to generate more revenue for the company. Her claims are nearly identical to allegations made by former Chief Financial Officer Rebeckah Hall and former Regional Billing Coordinator Rachel Williams.

Allegations made by all three women include:

• Billing for services provided at a federally-qualified health center to increase revenue, when services were provided at a different location
• Refraining from engaging with Medicaid and Medicare for inquiries or clarification of charges identified by the CEO as billable
• Billing for services under the credentials of a licensed provider when they were not rendered by a licensed provider, in order to obtain a higher reimbursement rate

In addition to those claims, Stiltner says she was also directed to “bill a certain amount of service per client, regardless if the services were necessary or warranted.”

Hall and Williams made two other claims not made by Stiltner. They include:

• Not correcting billing codes after the Covid pandemic to reflect that services were provided as “audio only”
• Changing billing locations despite being told by the Financial and Billing departments that the action violated state law

Stiltner says after she refused to engage in the fraudulent billing practices, her supervisors placed her in a hostile work environment. Unlike Hall and Williams, who resigned from their positions due to the working conditions, Stiltner remained until she was fired. When she was terminated, she said CEO Promod Bishnoi told her, “This just isn’t working out.”

Prior to that, Stiltner says she received excellence performance reviews, was given pay raises and promotions, and had never received disciplinary action.

Stiltner is seeking compensation for past, present and future mental and physical pain, suffering and anguish; emotional distress; lost wages; medical and hospital bills; retirement and other employee benefits; pre-judgment and post-judgment interest; costs; attorney’s fees; and punitive damages.

Attorneys for Mountain Comprehensive Care did not respond to a request from Mountain Top News for comment. The company has not yet responded to the latest complaint, but has denied the allegations raised in the two previous lawsuits.

A copy of Stiltner’s complaint follows:

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PAINTSVILLE, Ky. — What began as an investigation into the theft of bicycles resulted in a Paintsville sex offender being arrested for failing to maintain his registration requirements.

Paintsville Police were called Sunday to a home on Second Street over a report that two bicycles had been stolen the previous evening. The homeowner was able to provide footage allegedly showing Jessie Lee Ward, 48, walking into the back yard and taking two bicycles worth a combined $500.

Police located Ward at his workplace and cited him for misdemeanor theft. He was able to return one of the bicycles at that time. He said another person had the other bike, but he would retrieve it and take it back to the owners.

Afterwards, police decided to check into sex offender status, because two young girls lived at the home where the theft occurred. They learned that Ward was not compliant with his registration requirements, after he pleaded guilty to second-degree rape of a 12-year-old in 2006. He received a 10-year sentence in that case.

Ward was found riding a bicycle on Sixth Street later that day and arrested him for failure to comply with sex offender registration requirements. He reportedly told police that he realized he had fallen out of compliance, but said he had mailed in paperwork to correct the issue.

Because he has previously been arrested for the same charge, Ward now faces 5-to-10 years in prison if he is convicted.

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