Eastern District of Washington

Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that a federal Grand Jury has returned indictments charging multiple Yakima residents with federal firearms offenses.

The Indictments are the result of the collaborative efforts of the United States Attorney’s Office, the Department of Homeland Security, Homeland Security Investigations (“HSI”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and the Yakima Police Department (“YPD”), who worked together as part of the U.S. Attorney’s Project Safe Neighborhoods (“PSN”) initiative. PSN is a critical piece of the Department of Justice’s crime reduction efforts. The PSN program focuses on prosecuting individuals who most significantly drive violence in our communities. It supports and fosters partnerships between law enforcement, schools, the faith community, and local community leaders, to prevent and deter future criminal conduct.

In the Eastern District of Washington, U.S. Attorney Waldref has designated Yakima County for this special community-based crime-fighting program, to focus on reducing gang and gun-related violent crime in the Yakima Valley.

United States Attorney Waldref announced the filing of Indictments today against the following Defendants:

• David Hernandez Moreno, also known as “Peanut,” age 26, of Yakima, Washington. Defendant Moreno has prior convictions for Identity Theft, 4th Degree Assault, and Robbery. He was arrested on April 25, 2022, and has been charged with being a felon in possession of a firearm in violation of federal law.

• Julio Armando Chavez-Medina, also known as “Loki,” age 23, of Yakima, Washington. Defendant Chavez-Medina has previously been convicted of Unlawful Possession of a Firearm on three separate occasions. He was arrested on May 13, 2022, and has been charged with being a felon in possession of a firearm in violation of federal law.

• Alberto Pastrana, age 25, of Yakima, Washington. Defendant Pastrana has previously been convicted of 2nd Degree Assault, 3rd Degree Assault, and 4th Degree Assault. He was arrested on May 6, 2022, and has been charged with being a felon in possession of a firearm and possession with the intent to distribute methamphetamine Ibarra has previously been convicted of 1st Degree Burglary and 2nd Degree Assault. He was arrested on June 28, 2022, and has been charged with being a felon in possession of a firearm.

• Juan Carlos Moreno-Oregel, also known as “Bambino,” age 21, of Yakima, Washington. Defendant Moreno-Oregel has previously been convicted of 1st Degree Robbery. He was arrested on June 30, 2022, and has been charged with being a felon in possession of a firearm.

• Ray Jesus Greedy, age 34, of Mabton, Washington. Defendant Greedy has previously been convicted of 4th Degree Assault. He was arrested on June 3, 2022, and has been charged with being a felon in possession of a firearm.

During the arrests in these cases, law enforcement officers recovered seven firearms and three high-capacity magazines. “The heart of the Project Safe Neighborhood initiative is a commitment to keeping our communities in Eastern Washington safe and strong. Our collaborative, focused prosecution efforts are part of the overall community solution to pressing violent crime issues,” said U.S. Attorney Waldref. She went on to commend DHS, ATF, and YPD’s Gang Unit for their dedication to combating gang violence and pursuing violent offenders in the Yakima community. “These arrests and Indictments demonstrate the impact we can have when federal, state, and local law enforcement work together.”

“ATF recognizes the role that firearms play in violent crimes, which affect all of us in the Eastern District,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “The people of Eastern Washington deserve to live in safety. To ensure that they can, we will continue to work with our partners to remove violent offenders and their firearms from our streets.”

“Illegal firearm activity will not be tolerated in our community,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI will continue to leverage law enforcement partnerships, to address violence, providing community safety through the dedicated service of our skillful agents.”

“I cannot overstate how important it is to the Yakima Police Department to have such a strong, effective relationship with the U.S. Attorney’s Office,” said Matthew Murray, Chief of the Yakima Police Department. “Indicting those who engage in violence in our community is a powerful tool and sends an even more powerful message. In a perfect world, those involved in violent conduct could find the strength to walk away from that life on their own – but if they will not, the Yakima Police Department will do everything we can to hold them accountable and make the community safer and stronger. U.S. Attorney Waldref and her team are present, proactive, and reliable partners in our focused effort to reduce violent crime, including domestic violence, in the Yakima community, and I thank and commend them.”

These cases are being prosecuted by Tom Hanlon, Rick Burson and Michael Murphy, Assistant United States Attorneys for the Eastern District of Washington.

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

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, has announced two new indictments resulting from the COVID-19 Relief Fraud Strike Force launched by the U.S. Attorney’s Office earlier this year. The Indictments were recently unsealed.

On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.

“COVID-19 relief programs quickly ran out of money due to the number of people and businesses that requested funding, which meant that some deserving small businesses were not able to obtain funding to keep their businesses in operation during the COVID-19 pandemic,” said U.S. Attorney Waldref. “We created the COVID-19 Fraud Strike Force because it is critical to the strength and safety of our community in Eastern Washington that we all work together to combat pandemic-related fraud. The Strike Force is one way to ensure that limited resources are provided to deserving local businesses that provide vital services for our communities. I greatly appreciate the hard work and esprit de corps of so many talented agents and agencies that are contributing to our collective efforts.”

In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, and civil penalties, including these two most recent indictments.

On May 3, a federal grand jury returned an Indictment charging Natasha Opsal, age 40, a former Spokane resident now residing in Great Falls, Montana, with nine counts of fraud in connection with several COVID-19 relief loans. The Indictment charges that Opsal fraudulently sought over $600,000 through the PPP and EIDL programs for fictitious businesses, over $50,000 of which she received. The Indictment was unsealed today following Opsal’s arrest and arraignment on the charges.

The same day, May 3, a federal grand jury returned an Indictment charging Yuriy P. Anishchenko, age 34, a former Spokane resident last known to be residing in Kent, Washington, with three counts of fraud in connection with two EIDL loans sought and obtained by Anishchenko. The Indictment charges that Anishchenko fraudulently obtained over $300,000 for non-qualifying and ineligible businesses. The fraud charges in both cases carry maximum sentences of up to 20 years in federal prison.

“I commend the stellar investigative work on these cases performed by the Strike Force and especially by the U.S. Secret Service, SBA, FBI, and TIGTA” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding.”

Assistant United States Attorney Dominique Park is prosecuting United States v. Anishchenko, while Special Assistant United States Attorney Frieda Zimmerman and Assistant United States Attorney Tyler H.L. Tornabene are prosecuting United States v. Opsal. Both cases were investigated by the COVID-19 Relief Fraud Strike Force.

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

 

United States v. Opsal, Case No: 2:22-CR-0053-TOR

United States v. Anishchenko, Case No: 2-22-CR-0057-TOR

Spokane, Washington – U.S. Attorney Vanessa R. Waldref announced today the accomplishments of her office’s pilot outreach program, United Against Hate, which directly connects the United States Attorney’s Office and its local and federal law enforcement partners with a diverse group of community organizations to increase community understanding and reporting of hate crimes and hate incidents. This community outreach program seeks to address the chronic underreporting of hate crimes and hate incidents and build strong relationships between law enforcement and the communities they serve to more effectively share resources and respond to potential unlawful acts of hate.

U.S. Attorney Waldref announced the Eastern District’s engagement in the United Against Hate program in March of 2022. In the last few months, the U.S. Attorney’s Office has successfully partnered with several community organizations and houses of worship to discuss how law enforcement responds to reports of hate crimes, hate incidents, and unlawful discrimination. Presenters at United Against Hate events include Assistant United States Attorneys, detectives and crime analysts from the Spokane Police Department, and special agents from the Federal Bureau of Investigation. The United Against Hate programs have taken place  throughout Eastern Washington, including at a Jewish Temple in Spokane, an Islamic Center in Pullman, and a Sikh Temple in Eastern Washington.

Based in part on the success of the United Against Hate program in Eastern Washington, on May 18, 2022, Assistant Attorney General Kristen Clarke formally announced the Department of Justice’s nationwide rollout of the program. U.S. Attorney Waldref was selected to present at the national rollout of United Against Hate today. Yesterday, at that rollout event U.S. Attorney Waldref encouraged other districts around the country to follow Eastern Washington’s lead in proactively reaching out to houses of worship, minority communities, and community organizations on the critical issue of combatting hate crimes and hate incidents.

“Law enforcement has a vital role in protecting the public from hate-motivated offenses.,” said U.S. Attorney Waldref. “By encouraging the reporting of hate crimes and hate incidents, the United Against Hate program provides law enforcement the tools to more effectively combat the uptick in hate-based violence.

The underreporting of hate crimes and hate incidents allows perpetrators to go undetected and un-prosecuted, which allows them to continue to spread their unacceptable messages of hate, fear, and intimidation. The United Against Hate program is designed to ensure that all members of our community feel safe and know that they live in a place where acts of hate will not be tolerated.”

“Hate crimes have no place in our community,” said Spokane Police Chief Craig Meidl. “The Spokane Police Department is pleased to partner with the US Attorney’s Office in educating the public about what constitutes a hate crime, how to report one, and how to combat such crimes. Hate crimes are particularly impactful not only because of the harm they cause directly to the victims, but because they also take a substantial emotional toll on victims, families, loved ones and our community. SPD is dedicated to holding accountable those responsible for crimes fueled by prejudice and bias,” said Chief Meidl.

Each United Against Hate presentation discusses vital pieces of information, which include:

‐ What constitute hate crimes or hate incidents and encouraging the public to  always report them to law enforcement

‐ How to report a hate crime or hate incident to law enforcement. For example, to call 911 if there is a crime in progress or any potential immediate threat or danger. Otherwise hate crimes and hate incidents can also be reported to an individual’s local Crime Check (in Spokane, 509-456-2233) or by reporting it to the FBI (by calling 509-458-8100 or submitting tips to www.fbi.gov/tips).

‐ Even when prosecuting a hate crime or hate incident is not viable, the data from such reporting to law enforcement is essential both to investigating and prosecuting related hate crimes by the same individual or group and in determining where, when, and how to best deploy law enforcement resources, such as additional patrols, to help detect and deter hate crimes.

Community members who attended the United Against Hate presentations participate in group discussions and activities and provide the law enforcement panelists with their questions and concerns. Additionally, when appropriate, for United Against Hate presentations in Spokane County the U.S. Attorney’s Office has joined with the Spokane County Human Rights Task Force (SCHRTF), a private non-profit organization. SCHRTF’s Hate Reporting Tool Kit is an online tool for reporting hate crimes and hate incidents and includes an option to report anonymously. The SCHRTF Hate Reporting Tool Kit is found at www.ReportHateBias.org.

“The Spokane County Human Rights Task Force created its Hate Reporting Tool to determine the extent of hate activity occurring in our county in order to provide victim support and targeted outreach programming. The Hate Reporting Tool is simple to access and simple to use,” said Board member, Hershel Zellman. “We are excited to join with law enforcement in promoting the United Against Hate program and emphasize that the information provided through the Hate Reporting Tool is treated confidentially by the Task Force and has no connection to law enforcement,” said Past-President, Dean Lynch.

“My office is thrilled with the excellent reception and impact that our United Against Hate efforts have already had in making our communities in Eastern Washington safer and stronger. These presentations offer panelists and community members the opportunity to share stories, concerns, and understand our shared values for safe neighborhoods to raise our families and the freedom to express religious beliefs without fear,” said U.S. Attorney Waldref. Community members and leaders who are interested in exploring whether to host a United Against Hate presentation are encouraged to contact the U.S. Attorney’s Office Civil Rights  Team at USAWAE.CivilRights@usdoj.gov or by leaving a voice mail at (509) 835-6306.

“We cannot bring the full force of the people’s power against hate crimes, hate incidents, and other civil rights violations without individuals being given opportunities to come forward. We encourage anybody in our community to report these concerns. We are all partners in keeping each other safe and building a stronger community that reflects our values of hope and belonging where we protect each other and have a joint mission to pursue justice for all,” stated U.S. Attorney Waldref.

The U.S. Attorney’s Office’s online complaint form is available at https://www.justice.gov/usaoedwa/edwa-civil-rights-webpage.The form can be emailed to USAWAE.CivilRights@usdoj.gov, or concerns can be shared by leaving a voice mail for our Civil Rights Team at (509) 835-6306.

United Against Hate presentation photos from outreach to a local Jewish Temple:

Pictured from left to right: Special Assistant U.S. Attorney Frieda Zimmerman, Detective Brian Cestnik Spokane Police Department, FBI Special Agent Ryan Butler, Assistant U.S. Attorney Dan Fruchter, Spokane PD Sargent Zachary Dahle, Assistant U.S. Attorney Tyler Tornabene, Spokane PD Senior Crime and Intelligence Analyst Thomas Michaud, and Hershel Zellman board member Spokane County Human Rights Task Force.

Pictured: Assistant U.S. Attorney Dan Fruchter

Pictured from left to right: Special Assistant U.S. Attorney Frieda Zimmerman, Spokane PD Senior Crime and Intelligence Analyst Thomas Michaud, and Spokane PD Sargent Zachary Dahle.

Pictured from left to right: Assistant U.S. Attorney Dan Fruchter, Spokane County Human Rights Task Force board member Hershel Zellman, and Special Assistant U.S. Attorney Frieda Zimmerman.

Photo from U.S. Attorney’s outreach to an Eastern Washington Sikh Temple:

Pictured: Assistant United States Attorneys Tyler Tornabene (left) and Dan Fruchter (right)

Photo from U.S. Attorney’s and FBI Outreach to a Pullman Islamic Center:

Pictured: FBI Special Agent Christian Parker (left) and Assistant United States Attorney Tyler Tornabene (right)

Pictured: U.S. Attorney Waldref speaking at World Refugee Day in Spokane

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that American Financial Network, Inc., a mortgage lender based in Brea, California, has agreed to pay $1,037,145 to resolve allegations that it improperly and fraudulently originated government-backed mortgage loans insured by the Federal Housing  Administration (FHA), a component of the U.S. Department of Housing and Urban Development (HUD).

“FHA-backed mortgages are a critical resource for first-time homebuyers, moderate-income borrowers, and families who have suffered negative credit due to the pandemic or other events out of their control,” said U.S. Attorney Waldref. “By improperly originating ineligible mortgages, lenders take advantage of the limited resources of the FHA program and unfairly pass the risk of loss onto the public.”

Since at least December 2011, AFN has been a participant in FHA’s Direct Endorsement Program. Through this program, a lender such as AFN is authorized to originate and approve mortgage loans to be insured by FHA without any prior review or approval by FHA. Lenders such as AFN are responsible for carefully underwriting the mortgage to make sure that it meets all FHA requirements. Once a mortgage loan is insured by FHA, if the borrower defaults or is unable to repay the mortgage, the lender that holds the mortgage note can submit a claim for insurance benefits to FHA to cover its losses.

The settlement resolves allegations that between December 2011 and March 2019, AFN knowingly underwrote certain FHA mortgages and approved for insurance certain mortgages that did not meet FHA requirements or qualify for insurance, resulting in losses to the United States when the borrowers defaulted on those mortgages. The settlement further resolves allegations that AFN knowingly failed to perform quality control reviews that it was required to perform.

This case began in March 2019 when a whistleblower, a former loan processor with AFN, filed a qui tam complaint under seal in federal court in Spokane. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. Pursuant to the settlement agreement, the relator in this case will receive $228,172 of the settlement, and will also recover her attorney’s fees, expenses, and costs.

“Quality and affordable housing is a critical issue in Eastern Washington and across the nation,” said U.S. Attorney Waldref. “Protecting the resources that support families who dream of purchasing their first home makes our community stronger. I commend the exceptional investigative work by Veterans Affairs Office of Inspector General and HUD’s Office of Inspector General that holds accountable those who abuse housing programs.”

“HUD’s Office of Inspector General is committed to working with the Department of Justice and our law enforcement partners to ensure that federal programs designed to help our nation’s most vulnerable are not abused,” said Special Agent-in-Charge Scott Tanchak. “Today’s settlement demonstrates the Government’s commitment to protecting the integrity of HUD programs.”

“Investigations such as these help safeguard the integrity of the home loan approval process and protect vulnerable veterans from fraudulent lending practices,” said Special Agent in Charge Jason Root of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG thanks the U.S. Attorney’s Office for the Eastern District of Washington and HUD’s Office of Inspector General for their partnership in this joint investigation.”

The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington, HUD’s Office of Inspector General, and the U.S. Department of Veterans Affairs, Office of Inspector General, Spokane Resident Office.

Assistant United States Attorneys Tyler H.L. Tornabene and Dan Fruchter and Special Assistant United States Attorney Frieda K. Zimmerman handled this matter on behalf of the United States. The claims resolved by the settlement are allegations only and there has been no determination of liability.

Spokane, Washington – Senior United States District Judge Rosanna Malouf Peterson sentenced Brian D. Knight, 47, of Spokane, Washington, to 7 years in federal prison for possessing child pornography, the highest sentence available under the terms of Knight’s plea agreement. Judge Peterson also ordered Knight to serve 10 years on federal supervision after he is released from prison. Knight pleaded guilty late last year.

According to court documents and proceedings, undercover FBI agents downloaded numerous images of child pornography from Knight in 2019 before executing a search warrant at his residence in Spokane. Agents found numerous digital devices containing child pornography that Knight appeared to have downloaded between 2017 and 2019. Knight also sustained a prior conviction for possession of child pornography under Washington law in 2009 after a minor girl disclosed that Knight had sexually abused her. In that case, Knight was sentenced to 14 months in state custody. In addition to having a prior child pornography conviction, Knight had also bookmarked multiple child rape stories, including one called “baby Sex Is the Best.tx.” He also had an “incest/underage sex permission form” on one of his devices. Knight also created – under an alias – a foundation called “Fish4Kids,” which was allegedly designed to give aquariums to autistic children. This purported foundation never actually provided any aquariums, but presumably would have put Knight in contact with autistic children. He also lied to law enforcement about his child pornography conduct, wiped his devices to hide the true volume of his child pornography collection, and had prior convictions for domestic violence assaults, interference with domestic violence reporting, and cyberstalking.

In imposing the highest sentence available under the terms of Knight’s guilty plea, Judge Peterson described his conduct as predatory and rejected defense arguments that he should receive a lower sentence because of certain medical ailments. The Court also expressed concern about Knight’s prior convictions and potential lack of commitment to sex offender treatment opportunities.

Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, commended the FBI’s investigation. “All children should be safe from sexual predators, particularly those who have offended before,” said U.S. Attorney Waldref. “Protecting children from harm, especially online exploitation, remains a priority of my office and is critical to building a safe and strong Eastern Washington community.”

“This is not the first time Mr. Knight has demonstrated disregard for the law and acted on his sexual interest in children,” said Donald M. Voiret, Special Agent in Charge of FBI Seattle Field Office. “The materials our agents recovered from his devices were chilling, and show why it is so important that the FBI continues to relentlessly seek out child pornography defendants.”

This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:

ꞏ Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;

ꞏ Participation of PSC partners in coordinated national initiatives;

ꞏ Increased federal enforcement in child pornography and enticement cases;

ꞏ Training of federal, state, and local law enforcement agents; and

ꞏ Community awareness and educational programs.

For more information about Project Safe Childhood, please visit  www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

This case was investigated by the Spokane Resident Office of the FBI, and was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, joined United States Attorney General Merrick B. Garland today in recognizing World Elder Abuse Awareness Day.

“From the Palouse to the Cascades, and from the small towns to the big cities, respect for our elders is a principle we can all live by in the Eastern District of Washington,” said U.S. Attorney Waldref. “Having safe and strong communities means protecting our seniors, who can be among our most vulnerable—and are often the same people who have protected all of us when we have been vulnerable ourselves.”

U.S. Attorney Waldref’s comments dovetailed with the comments of Attorney General Garland. “The Department of Justice is committed to protecting and supporting the most vulnerable among us, including by advancing elder justice. Elder abuse, fraud, and neglect remain urgent problems in our country, particularly as the COVID-19 pandemic ushered in a new wave of exploitative practices targeted at seniors. The Justice Department has worked to expand our capacity to prevent elder abuse, prosecute perpetrators of that abuse, and protect and support  elderly survivors.”

The Attorney General also noted several DOJ initiatives designed to protect and enrich the lives of the Nation’s seniors. “Our Elder Justice Initiative coordinates programmatic efforts to prevent and respond to elder abuse, including by developing training and resources for our partners at all levels of government and beyond. Our grantmaking components have also funded the development of coordinated, multi-disciplinary approaches to advancing elder justice, including Multidisciplinary Teams. In addition, Elder Justice Coordinators in each of our 94 U.S. Attorneys’ offices nationwide are working to successfully prosecute cases of elder abuse, including by supporting our Transnational Elder Fraud Strike Force. The Strike Force, which was launched and is led by the Department’s Consumer Protection Branch, brings together attorneys, agents, and analysts from across the federal government to disrupt and prosecute foreign-based fraud schemes that target American seniors.”

U.S. Attorney Waldref concluded by joining Attorney General Garland’s call for the United States to be a leader in the prevention of elder abuse: “On World Elder Abuse Awareness Day, the Department of Justice joins our partners across America and around the world in reaffirming our commitment to preventing and ending elder abuse in all of its forms.”

If you need assistance or to report elder abuse, please contact your local adult protective services agency through the Eldercare Locator or by call the helpline at 1-800-677-1116 Monday – Friday 9am - 8pm EST. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10:00 am – 6:00 pm EST.

Spokane, Washington – On June 3, 2022, United States District Judge Salvador Mendoza, Jr., sentenced Lorenzo Jimenez Alanis, 47, of Mabton, Washington, to 15 years in federal prison for distributing methamphetamine, along with downloading and possessing a large collection of child pornography. Judge Mendoza also ordered Alanis to serve five years of federal supervision after he is released from prison, although under current U.S. law, it is likely that Alanis will be removed from the United States after his release from custody. Alanis pleaded guilty earlier this year.

According to information disclosed in court documents and during proceedings, Alanis was a source of supply for pound level quantities of methamphetamine associated with a drug trafficking organization operating directly out of Mexico. Alanis was arrested in a DEA Tri-Cities operation while he was delivering four pounds of methamphetamine. A search warrant was executed at his home and additional quantities of methamphetamine, multiple firearms and indicia of drug trafficking were also seized. When Alanis was arrested, officers searched his cellular telephone and discovered thousands of images and videos of children being sexually abused, tortured, and violated. Troublingly, Alanis’ collection included images and videos depicting prepubescent children who were the same age as his own children and younger. Alanis came to the United States unlawfully in 1992, when he was approximately 17-18 years of age, and has lived in the lower Yakima Valley since then.

“The wide scope of Mr. Alanis’ criminal conduct is staggering. This case involved both largescale methamphetamine dealing as well as downloading and collecting thousands of crime scene photos of minors being sexually abused,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “I commend the seamless communication and collaboration in this case between DEA, Customs and Border Protection, Homeland Security Investigations, the Internet Crimes Against Children (ICAC) Task Force in Richland, and our state and local partners—what began as a drug case concluded with a child exploitation offender behind bars for 15 years. Whether it is illegal drugs or illicit images of children, law enforcement in the Eastern District will continue to seek out, investigate, and prosecute criminal conduct to keep the communities of Eastern Washington safe and strong.”

“Mr. Alanis used his direct connections with a Mexican drug trafficking organization to supply methamphetamine in Eastern Washington, and even more disturbing, possessed large amounts of child pornography,” said Acting Special Agent in Charge Jacob D. Galvan, DEA Seattle Field Division. “The DEA, with its federal, state, and local partners, will relentlessly pursue individuals who seek to harm and exploit vulnerable individuals, especially children.”

“Mr. Alanis represented a triple threat to our community through his trove of videos depicting violent sexual abuse of children, distribution of methamphetamine, and firearms possession,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “I applaud the work of our federal and state law enforcement partners in Eastern Washington to address these critical threats and ensure that criminals like Mr. Alanis are brought to justice.”

This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation 

and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

This case was also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case was investigated by DEA Seattle Field Division, Tri-Cities Resident Office, United States Customs and Border Protection, METRO Drug Task Force, the Kennewick, Richland, West Richland, and Pasco Police Departments, Homeland Security Investigations, Tri-Cities Resident Office, and the ICAC Task Force. The case was prosecuted by Stephanie A. Van Marter, Assistant United States Attorney for the Eastern District of Washington.

Yakima, Washington – On May 31, 2022, U.S. District Judge Salvador Mendoza, Jr. sentenced Leland James Finley, 28, of Wapato, Washington, to 57 months in federal prison for Involuntary Manslaughter and Assault Resulting in Serious Bodily Injury. Judge Mendoza also ordered Finley to serve three years on federal supervision after he is released from prison. Finley pleaded guilty to four counts of Involuntary Manslaughter and one count of Assault Resulting in Serious Bodily Injury on November 23, 2021.

According to court documents, on May 7, 2019, at a little after 4:00 a.m., law enforcement officers responded to a crash scene at the intersection of U.S. Highway 97 and Larue Road, on the Yakama Nation Reservation. The investigation revealed that Finley failed to stop at as stop sign on Larue Road and drove in front of a semi-tractor-trailer that had been travelling on the highway, causing the collision. Four passengers in the Finley’s SUV were killed and a fifth was badly injured; multiple alcohol containers were recovered from inside the SUV and scattered around the scene. A Yakama Nation Police Department Officer interviewed Finley after advising him of his rights, and Finley acknowledged that he and his passengers had been drinking beer and driving around. Finley also admitted that he was the driver at the time of the crash. Remarkably, Finley admitted that he saw the stop sign and the semi-tractor-trailer, but said that he just wanted to beat the truck through the intersection. Lab results of Finley’s blood, which was drawn at a local hospital about five hours after the crash, showed the presence of alcohol, THC, metabolites of THC, cocaine, and metabolites of cocaine.

“Four people are dead. No legal proceeding, no admission of guilt, no sentence can bring them back or truly heal the wounds Mr. Finley has caused their loved ones. My office mourns with the victims’ families while we seek justice with our law enforcement partners. We will continue to hold accountable those who engage in criminally reckless violence in our community,” said Vanessa R. Waldref, U.S. Attorney for the Eastern District of Washington. “While it is a miracle that anyone survived that crash, this tragedy was as senseless as it was avoidable. I call on every driver in Eastern Washington to learn the devastatingly obvious lesson from this case: do not drive while high or drunk.”

“This did not need to happen,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle office. “It is 2022. It is not a new concept that driving while impaired leads to devastating consequences,  including in this case the deaths of four innocent people. The only thing we can hope today is that others learn from Mr. Finley’s tragic decisions.”

This case was investigated by the Federal Bureau of Investigation, the Yakama Nation Police Department, and the Washington State Patrol. The case was prosecuted by Michael Murphy, Assistant U.S. Attorney for the Eastern District of Washington.

Spokane, Washington – U.S. District Judge Salvador Mendoza, Jr., sentenced Justin Dean Friedlander, 34, of Omak, Washington, to 46 months in federal prison for a shooting on July 4, 2021. Judge Mendoza also imposed three years of federal supervised release and more than $20,000 in restitution.

Although the sentence he imposed was lower than the United States’ recommendation, Judge Mendoza emphasized that the shooting was “incredibly dangerous.” Addressing Friedlander directly, Judge Mendoza stated, “You shot a person, leaving a scar” that the victim “will carry around for the rest of his life.”

According to court documents, on the evening of July 4, 2021, Friedlander’s victim was spending time with his brother and a friend in Omak, Washington. Friedlander, an enrolled member of the Confederated Tribes of the Colville Reservation, pulled up in a Dodge Durango, brandishing a .22 caliber long rifle. After a short disagreement, Friedlander got upset and drove off. Moments later, Friedlander reemerged at a nearby apartment complex. Friedlander opened fire, sending a single gunshot toward the victim and his companions. The bullet struck the victim in the back of his left leg and lodged in his knee. Medical personnel determined that they could not remove the bullet without risking further injury to the victim.

After the shooting, Friedlander drove to the 12 Tribes Casino in Omak, where the Colville Tribal Police Department and the Federal Bureau of Investigation later located his Durango. After obtaining a search warrant, Tribal Police and the FBI recovered several rounds of .22 caliber ammunition inside the Durango. The firearm, which Friedlander apparently hid, was never recovered. Surveillance video, from both shortly after the shooting and prior to Friedlander’s arrest, showed Friedlander removing items – including a long item consistent with a firearm – from the Durango and moving it into a different car.

“The United States Attorney’s Office is committed to prosecuting violent offenders who threaten public safety anywhere in Eastern Washington,” said Vanessa R. Waldref, United States Attorney for the Eastern District of Washington. “Native Americans experience some of the highest rates of violence in the country, which often compound other traumas that Indigenous people frequently suffer. We will continue to address violent crime by ensuring that offenders are prosecuted to the fullest extent – both on Tribal land and elsewhere.”

U.S. Attorney Waldref continued, “I am grateful for the Colville Department of Public Safety, the FBI, and all of our federal partners, who work together to investigate violent crime on the Colville Reservation. Many violent crime cases, including this one, present unique challenges, including victims and witnesses who are sometimes hesitant to work with law enforcement.  While we continue to work every day to increase trust in law enforcement throughout Eastern Washington, I commend the dedicated agents, officers, prosecutors, and victim advocates, who devote their time and resources to seeking justice on behalf of victims and working together to keep our communities safe and strong.”

“Sadly, this case is another example of the increasing trend of violent incidents on the reservations in the Eastern District,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “We are committed to investigating these cases and strengthening our partnerships with the U.S. Attorney’s Office and Tribal and local agencies to bring accountability to offenders and deter future criminal conduct.”

The case was investigated by the Federal Bureau of Investigation and the Colville Tribal Police Department. This case was prosecuted by Richard R. Barker, Assistant United States Attorney for the Eastern District of Washington.

Spokane, Washington – Senior United States District Judge Rosanna Malouf Peterson sentenced Kimberly Ann Brischle, 56, of Post Falls, Idaho, to 30 months in federal prison for stalking an ex-boyfriend across state lines via the Internet. Judge Peterson also ordered Brischle to pay more than $175,000 in restitution for the damages arising from a fire she started in her ex-boyfriend’s home. Brischle will also serve three years of federal supervised release after she gets out of prison. Brischle pleaded guilty in May 2022 and has been in federal custody since July 2021.

According to court documents, Brischle began sending her ex-boyfriend a series of threatening text messages in April 2021. The next day, Brischle broke into her ex-boyfriend’s home in Spokane, while her ex-boyfriend was away on business. Brischle damaged property in the home and started a fire in a bedroom closet. The Spokane Fire Department responded to extinguish the fire, and investigators determined that the fire had been set intentionally. For the next several months, Brischle used online applications to obscure her identity while she continued to send her ex-boyfriend threatening and harassing texts and emails. In one message, she claimed to have paid another person to torture and mutilate him and to kill his dog.

“In the information age, Internet stalking has become a significant problem that crosses state and international boundaries and subjects innocent people to serious harassment,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “As this case demonstrates, the line between online activity and real-world consequences can become blurry for some—and frankly, it is a miracle and a relief that no one was hurt by the fire in this case. Fortunately, through the collaborative work of ATF, the Spokane Police Department, the Spokane Fire Department, and the Kalispel Tribal authorities, law enforcement was able to hold the defendant accountable and prevent her from causing further damage and harassment. The United States Attorney’s Office is committed to protecting our communities from cybercrime and physical violence to keep Eastern Washington safe and strong.”

“Arson is a heinous crime that has broad impacts, not only on those who are directly affected, but because of the risk it presents to the community as a whole,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “This sentence should deter anyone who contemplates engaging in the destructive, cowardly act of setting someone’s home on fire.”

This case was investigated by Spokane Resident Office of the ATF, with significant assistance from the Spokane Fire Department Special Investigations Unit, the Spokane Police Department, and the Kalispel Tribal Police. The case was prosecuted by Timothy J. Ohms, Assistant United States Attorney for the Eastern District of Washington.

Spokane – United States Attorney for the Eastern District of Washington Vanessa Waldref and DEA Acting Special Agent in Charge Jacob D. Galvan announced the collection of thousands of pounds of unused medications in the Pacific Northwest. In all, close to 24,000 pounds of drugs were collected in the Northwest United States. Of these, over 9,000 pounds were collected at 117 sites in Washington.

On April 30, 2022, U.S. Attorney Waldref, Spokane Police Chief Craig Meidl, Spokane Fire Chief Brian Schaeffer, DEA Assistant Special Agent in Charge Mark Haigh, and representatives from their respective offices joined together at the Northtown Mall and other sites in Spokane, where 18 large boxes, weighing hundreds of pounds, of unused medicines were collected.

“Removing unused prescription drugs from our homes is one way to keep our families safe and build stronger communities,” U.S. Attorney Waldref stated. “We are honored to partner with the DEA, Spokane Police, the Spokane County Sheriff’s Office, and the Spokane Fire Department for this important event. We have all witnessed the ravaging effects of the opioid epidemic in our region, and we are encouraged by the proactive efforts members of our communities are taking to prevent prescription drug misuse and addiction.”

“The DEA Drug Take Back is another important way in which we are working to keep our communities in the Pacific Northwest safe,” said Acting Special Agent in Charge Jacob D. Galvan, DEA Seattle Field Division. “By collecting nearly 24,000 pounds of unused medications, we protected our vulnerable citizens from misuse and overdose.”

Chief Meidl stated, “We appreciate that community members took advantage of the opportunity to safely dispose of dangerous drugs. This reinforces that our community is aware of the severity of drug addiction and drug-related deaths and is willing to take steps to help keep everyone safe. The Spokane Police Department is committed to furthering the drug battle on another front by continuing to hold those responsible for the manufacture and distribution of illegal drugs accountable, and working with our partners to ensure a safer community.”

Nationwide, the DEA and its partners collected more than 720,000 pounds of unneeded medications at 5,144 collection sites. Since 2010, more than 16 million pounds of unneeded prescription medications have been collected through Drug Take Back events.

In addition to DEA’s National Prescription Drug Take Back Day, the FDA provides information on how to safely and properly dispose of prescription drugs every day. To find out where year-round disposal sites are located, go to https://www.fda.gov/consumers/consumer-updates/where-and-how-dispose-unused-medicines.

For more information about Annual Prescription Drug Take Back Day, go to www.DEATakeBack.com

Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District  of Washington, has announced that Karla Padilla, age 48, of Yakima, Washington, was indicted this week on seven counts of fraudulently obtaining COVID-19 relief funding. This Indictment is the most recent set of charges resulting from the COVID-19 Relief Fraud Strike Force launched by the U.S. Attorney’s Office earlier this year.

On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.

“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”

In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would  leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, and civil penalties.

The Indictment announced today charges seven counts of fraud arising from one EIDL and two PPP loans obtained by Padilla in 2020 and 2021 on behalf of her supposed collectible car business identified as Queen B Collectibles. The Indictment alleges that Queen B Collectibles was not a legitimate business, had no employees, receipts or business operations, and was not eligible for any EIDL or PPP funding, and that Padilla submitted false information in order to fraudulently obtain over $59,000 in EIDL and PPP funding. The Indictment also alleges that Padilla unsuccessfully and fraudulently attempted to obtain four additional EIDLs for Queen B Collectibles, which SBA did not fund.

“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG and TIGTA,” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”

This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force, with SBA OIG and TIGTA as the lead investigative agencies. This case is being prosecuted by Assistant United States Attorney Tyler H.L. Tornabene, Assistant United States Attorney Dan Fruchter, and Special Assistant United States Attorney Frieda K. Zimmerman.

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

Yakama, WA – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that a federal Grand Jury has returned numerous indictments charging multiple individuals with various federal crimes arising in the Yakima area, including on the Yakama Nation Indian Reservation.

Over the past several years, the Federal Bureau of Investigation (FBI) has dedicated increased resources to addressing violent crime in Yakima County, including on the Yakama Nation. In the past six months, the FBI’s office in Yakima has brought on a number of additional special agents dedicated to investigating violent crime. In addition, the FBI is leading a joint task force, which includes Customs and Border Protection, Homeland Security Investigations, the Washington State Department of Corrections, and the Yakima County Sheriff’s Office. The purpose of the FBI Task Force is to disrupt gang activity, weapons trafficking, narcotics distribution, and to eradicate violent crime in Eastern Washington.

Seven of the indictments announced today charge the following individuals with multiple violations of federal law:

• Marcelo Anthony Benson, age 25, of Wapato, Washington, an enrolled member of the Yakama Nation. In State prison on unrelated charges. Currently charged with felon in possession of a firearm.

• Dennis William Chapman, age 62, of Toppenish, Washington. Arrested on May 17, 2022, and charged with two counts of distribution of 50 grams or more of methamphetamine.

• Joseph Wade Clark, age 45, of Yakima, Washington. In custody at the Yakima County jail on unrelated charges. Charged with two counts of distribution of 50 grams or more of methamphetamine.

• Nicholas Medelez, age 33, of Yakima, Washington. Arrested on May 17, 2022, and charged with three counts of distributing methamphetamine.

• Sergio Hernan Mendoza, age 47, of Sunnyside, Washington. Arrested on May 17, 2022, and charged with two counts of distributing 50 grams or more of methamphetamine.

• Tiare Aqua Leilani Miller, age 34, of Toppenish, Washington. Arrested on May 17, 2022, and charged with conspiracy to distribute methamphetamine.

• Raymond Holt, age 75, of Wapato, Washington. Arrested on May 18, 2022, and charged with abusive sexual contact of an enrolled member of the Yakama Nation.

Additional fugitives are currently being sought by the FBI Task Force. More information will be provided upon their arrest.

U.S. Attorney Waldref commended the FBI Task Force for its dedication to combating drug distribution and pursuing violent offenders in the Yakima area, including on the Yakama Nation. “The opioid epidemic devastating our region is closely linked with an increase in violent crime. The uptick in violence has hit Native American communities especially hard,” she explained. “Native Americans experience some of the highest rates of violence in our country. The FBI Task Force – which focuses its efforts to protect our community from drug trafficking, gang members, violent offenders, and felons who possess firearms – reflects the United States’ commitment to addressing the causes and symptoms of the increased violence in Native American communities and elsewhere.”

“These arrests demonstrate how critical it is for law enforcement to work together,” U.S. Attorney Waldref continued. “By combining the resources of federal, state, tribal and local law enforcement through focused investigation and prosecution, we are able to do more to make communities in Eastern Washington safe and strong. The indictments announced today send a clear message that our community will not tolerate drug trafficking and violence.”

“The public has been demanding a place to live and work where our citizens feel safe,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “The actions taken today by the FBI and our law enforcement partners demonstrate that we hear you, and we are working to provide our communities with the protection you deserve.”

Yakima County Sherriff Robert Udell stated, “The latest round of FBI Task Force arrests is a fantastic example of the FBI’s commitment to public safety in Yakima County. The FBI and the Yakima County Sherriff’s Office enjoy a strong partnership, which is committed to removing violent criminals from our communities. I believe the FBI Task Force, coupled with local partners, is a significant step towards ensuring our citizens’ safety.”

“With violent crime on the rise across the country, law enforcement must come together to combat the root causes of this violence more so than ever,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Today’s arrests demonstrate HSI’s commitment to our daily quest to keep the Pacific Northwest secure by pursuing those who blatantly disregard the health and safety of the community we live in.”

Lloyd Easterling, Chief Patrol Agent for U.S. Customs and Border Protection, Spokane Sector, emphasized his agency’s commitment to keeping the communities of Eastern Washington safe: “The U.S. Border Patrol remains committed to working together with our partners to identify, arrest and remove violent offenders from our communities.”

As noted above, the cases announced today are being investigated by a Joint FBI Task Force, which includes the Federal Bureau of Investigation, Customs and Border Protection, Homeland Security Investigations, the Washington State Department of Corrections, and the Yakima County Sheriff’s Office. The cases are being prosecuted by Matthew Stone, Michael Murphy, and Tom Hanlon, Assistant United States Attorneys for the Eastern District of Washington.

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

Spokane, Washington –United States District Judge Thomas O. Rice sentenced Richard Dale Wright, 50, of Spokane, Washington, to 60 months in federal custody for downloading images of child pornography. Judge Rice ordered Wright to be taken into immediate custody, and also ordered him to serve the remainder of his life on federal supervision after he is released from prison. Wright pleaded guilty earlier this year to Receipt of Child Pornography.

According to court documents, an undercover FBI Special Agent went online in the Spring of 2019 to identify people in the Spokane community who were sharing large volumes of known or suspected child pornography. The agent downloaded a number of child pornography files from Wright’s computer, and a subsequent search warrant at his residence in Spokane Valley resulted in the seizure of digital devices containing images and videos of child pornography dating back to 2017. Wright had been a girls’ volleyball coach in Spokane and the Spokane Valley, including at Lewis & Clark High School, and with Apex, a club youth volleyball program for which Wright served as the director. He was also on the Board of Directors for the Evergreen Region Volleyball Association. Although the ages of the victims depicted in Wright’s child pornography collection were consistent with the volleyball players he coached, FBI was not able to positively identify any of Wright’s former players in the child pornography images on his digital devices.

“It is deeply troubling that a coach, entrusted with the safety of teenage – and younger – girls, engaged in child pornography conduct that demonstrated his sexual interest in girls that age,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “It is a relief that the FBI did not recover evidence that Mr. Wright recorded child pornography images or videos of any of the players he coached. Today’s sentence nevertheless serves as a clarion call to anyone who would endanger or exploit children in the Eastern District or elsewhere: law enforcement is actively investigating your online conduct, and the consequences for engaging in child exploitation are severe.”

“As a coach and community role model, Mr. Wright held a position of trust and he should be held to a high standard of conduct,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “Instead, he possessed hundreds of images that revictimize innocent children every time their abuse is viewed. I commend the investigators and prosecutors who vigilantly protect our youth.”

This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:

ꞏ Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;

ꞏ Participation of PSC partners in coordinated national initiatives;

ꞏ Increased federal enforcement in child pornography and enticement cases;

ꞏ Training of federal, state, and local law enforcement agents; and

ꞏ Community awareness and educational programs.

For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

This case was investigated by the Spokane Resident Office of the FBI. The case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.

Spokane, Washington –United States District Judge Thomas O. Rice sentenced Fainyan Kain James Kimmerly, 22, of Spokane, Washington, to 12 years in federal prison for persuading a 13-year-old to produce sexual images of the 13-year-old and send the images to Kimmerly. Judge Rice also ordered Kimmerly to serve the remainder of his life on federal supervision after he is released from prison. Kimmerly pleaded guilty earlier this year.

According to court documents, in the summer of 2019, Kimmerly used Facebook to communicate with a 13-year-old whom he knew to be a minor. In a series of Facebook Messenger communications, Kimmerly engaged in a dominant-submissive sexual relationship with the minor. Among other inappropriate conduct, Kimmerly specifically requested that the minor take sexually explicit images of the minor’s own body and send those images to Kimmerly. In 2010, Kimmerly sustained a juvenile conviction in Spokane County for Child Molestation in the First Degree, and was a registered sex offender under Washington law when he engaged in the conduct charged in the federal case.

Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, praised the victim’s bravery and commended the FBI’s sensitive and victim-centered approach to its investigation. “Children must be safe from sexual predators, particularly those who have offended before,” said U.S. Attorney Waldref. “In this case, the FBI’s Special Agents, victim and witness specialists, and forensic examiners all took care to put the specific needs of the 13-year-old minor at the forefront of their investigation. Above all, I commend the victim on having the strength to come forward and shine a light on Mr. Kimmerly’s misconduct. Protecting children from harm, especially sexual exploitation online and IRL (in real life), is critical to building a safe and strong Eastern Washington community. I am delighted to note that even Mr. Kimmerly’s conduct has not succeeded in silencing or sidetracking the minor’s life; today, on the very day of sentencing, that minor is attending a college fair and looking to the future.”

“This is not the first time Mr. Kimmerly has demonstrated disregard for a vulnerable person,” said Donald M. Voiret, Special Agent in Charge of FBI Seattle Field Office. “His conduct in this case was particularly egregious, given some of the challenges his victim was already facing. I applaud the work of our investigators and victim advocates, as well as our colleagues at the United States Attorney’s Office, for standing up for people who deserve support, not victimization.”

This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:

ꞏ Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;

ꞏ Participation of PSC partners in coordinated national initiatives;

ꞏ Increased federal enforcement in child pornography and enticement cases;

ꞏ Training of federal, state, and local law enforcement agents; and

ꞏ Community awareness and educational programs.

For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

This case was investigated by the Spokane Resident Office of the FBI, with significant assistance from the Spokane Police Department. The case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Charice Unruh, 42, of Spokane, Washington, was sentenced today in federal court in Spokane. Senior Judge Wm. Fremming Nielsen sentenced Unruh to 48 months in federal prison, the highest sentence available under federal law. Judge Nielsen also sentenced Unruh to another year of incarceration, to be served concurrently, because she committed this crime while already on federal supervised release for her prior criminal conduct. Judge Nielsen also imposed 48 months of supervised release, to begin running when Unruh is released from custody.

In February 2022, Unruh pleaded guilty to Unlawful Use of the United States Mails, after an investigation by the United States Postal Inspection Service (“USPIS”). The investigation began when a keen Postal Inspector noticed a package addressed to Unruh while conducting a routine review of parcels coming into Spokane. The Inspector recognized Unruh’s name from a previous USPIS investigation in which Unruh was convicted and sentenced to federal prison in connection with her role in an identity theft ring. The package addressed to Unruh had several indicators consistent with packages that contain contraband, and the Inspector obtained a federal search warrant for it. The search revealed methamphetamine in the package.

The Postal Inspector removed the actual methamphetamine and replaced it with a noncontraband substance before setting up a controlled delivery of the parcel to Unruh. Unruh retrieved the package and was immediately contacted by the Inspector. USPIS then executed a search warrant at Unruh’s Spokane-area apartment, and located multiple devices commonly used to engage in identity theft, as well as personal identification information for multiple individuals across the country.

In imposing the maximum available sentence, Judge Nielsen noted Unruh’s “disturbing” and “terrible” history with this type of crime. In her remarks to the Court, Unruh said she copes with life’s struggles by eating and using methamphetamine, and indicated that she was addicted to both. Judge Nielsen agreed, but stated Unruh was also addicted to stealing other people’s identities and personal information. Judge Nielsen noted that he did not believe Unruh properly considered or understood the impact of her actions on all the innocent people whose personal information she compromised.

serious punishment, as today’s sentence demonstrates,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “Our colleagues at USPIS work tirelessly to ensure not only the safe delivery of mail in this country, but to investigate identity theft, mailboxing, wire and bank fraud, and similar crimes. Identity theft costs victims money, time, stress, and can have lasting negative impacts on people’s lives. Even if victims of identity theft are made whole by banks, credit card companies, and other institutions, the costs associated with credit card fraud, bank fraud, and identity theft are distributed back across the entire law-abiding population, increasing everyone’s cost of living. I commend USPIS for their ongoing efforts to stymie both identity theft and the use of the U.S. mails to distribute drugs.”

“The U.S. Postal Service remains one of the most trusted entities in the country, and we work at every turn to protect the communities we serve. Preventing identity theft remains one of our top priorities,” said Inspector in Charge Anthony Galetti. “Every time I speak to a victim of identity theft, I am reminded of both the financial and mental toll this crime takes—innocent victims have to spend their time, energy, and resources to close fraudulent bank accounts, correct credit scores, and the like. A bank may return a victim’s money, but a bank can never give a victim back all the hours it takes to undo an identity thief’s work. We hope this sentencing brings justice to the victims of Unruh’s criminal activity and serves as a deterrent to others. I thank the U.S. Border Patrol and Spokane County Sheriff’s Office for their assistance; it is partnerships across agencies that allow cases like this to be solved.”

This case was investigated by the United States Postal Inspection Service, with assistance from the United States Border Patrol and Spokane County Sheriff’s Office.

Assistant United States Attorney Caitlin A. Baunsgard of the Eastern District of Washington handled this matter on behalf of the United States.

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Roshon Edward Thomas, 52, of Spokane, Washington, has pleaded guilty to fraudulently obtaining more than $50,000 in COVID-19 relief funds. This case is part of the COVID-19 Relief Fraud Strike Force launched by the U.S. Attorney’s Office earlier this year. Senior Judge Rosanna Malouf Peterson accepted Thomas’ guilty plea and set sentencing for August 16, 2022, in Spokane.

On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic.

“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”

In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, and civil penalties.

According to court documents and information disclosed during court proceedings, Thomas fraudulently obtained at least $54,900 in COVID-19 relief funding through two EIDL loans he obtained in July and August 2020 for a purported tattoo parlor and a clothing design company. Thomas pled guilty to submitting false and fraudulent claims to the United States, and admitted to using false and fraudulent information to obtain EIDL funding for both companies. The charge carries a maximum sentence of up to five years in prison.

“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG, TIGTA, FBI, and HSI,” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”

Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.

Moses Lake and Yakima, Washington – On May 11, 2022, Chief United States District Judge Stanley A. Bastian sentenced Reymundo Garcia, 59, of Ephrata, Washington, to 135 months of imprisonment, to be followed by a five-year term of court supervision after he is released from federal prison. In 2021, Garcia pleaded guilty to engaging in a conspiracy to distribute 50 grams or more of pure methamphetamine. As part of his plea agreement, Garcia also agreed to forfeit any interest in his ranch, which he used to facilitate his drug trafficking conduct by providing a location for both drug dealing and active drug use.

According to information disclosed during court proceedings, Garcia was a member of a drug trafficking organization operating out of Moses Lake, Washington, and Grant County. During the course of an investigation by the FBI Safe Streets Task Force in the Tri-Cities, law enforcement officers seized multiple pounds of methamphetamine, several hundred fentanyl laced pills, heroin, and numerous stolen firearms and ammunition. Garcia engaged in this serious drug-dealing conduct after having been convicted in federal court on two prior occasions for drug trafficking and firearms possession. Chief Judge Bastian noted Garcia’s history of drug trafficking and that selling methamphetamine and heroin has been Garcia’s primary way of life. As a result, Chief Judge Bastian imposed what he described as “forced retirement” from this criminal conduct to protect the community from Garcia’s drug dealing and facilitation of drug use.

“Strong partnerships and collaboration between federal, state, and local law enforcement in central and southeastern Washington are protecting our community and ensuring that repeat drug offenders stop distributing poison in our neighborhoods,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “Today’s sentence takes a serious, recidivist drug trafficker off the streets and sends a clear message to others who might choose to engage in similar activity: we are committed to ensuring a safe and strong Eastern Washington community, and this kind of conduct will be ferreted out, investigated, and prosecuted to the fullest extent of the law.”

“By using his residence to facilitate drug trafficking and his prior offenses, Mr. Garcia has shown that his criminal activity is part of a long-term lifestyle,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “The FBI commends the work of our investigating and prosecuting partners to protect our neighborhoods for law-abiding citizens and remove these dangerous drugs from our communities.”

This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case was investigated by the FBI Safe Streets Task Force in Tri-Cities, Washington, in cooperation with the police departments of Moses Lake, Kennewick, Richland, and Pasco, and the Benton County Sheriff’s Office, along with the Washington Department of Corrections. This case was prosecuted by Stephanie Van Marter and Brian M. Donovan, Assistant United States Attorneys for the Eastern District of Washington.

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Senior Judge Rosanna Malouf Peterson has sentenced Jeremy Gilbert, 35, of Moses Lake, Washington, to just over fifteen years in federal prison, followed by a four-year term of supervised release.

In August 2021, Gilbert, who has 13 prior adult felony convictions, pled guilty to Possession with Intent to Distribute 50 Grams or More of Methamphetamine, stemming from an incident that occurred in August 2020 in the Grant County area. A homeowner called 911 to report that an unknown male, later identified as Jeremy Gilbert, was passed out in a vehicle in his driveway. Deputies from the Grant County Sheriff’s Office arrived and tried to wake Gilbert. In the vehicle, deputies saw easily-identifiable drug paraphernalia. Concerned that Gilbert was impaired, the deputies blocked Gilbert’s vehicle in the driveway and attempted to rouse him. After several minutes of deputies banging on the vehicle’s windows, Gilbert finally awoke and tried to start his vehicle. Ignoring instructions from the deputies not to do so, Gilbert started the engine and crashed into multiple law enforcement vehicles as he left the driveway. Gilbert then led law enforcement on a high-speed chase through the Moses Lake, Washington, area.

During the pursuit, Gilbert drove his vehicle in an incredibly dangerous manner, including driving the wrong way on Interstate 90, traveling at a high rate of speed through residential areas and school zones, and blowing through multiple stop signs and other traffic control devices. A deputy was eventually able to end the pursuit with a “PIT” maneuver. Gilbert refused repeated commands to exit the vehicle and show his hands, instead remaining in the vehicle and digging around under the driver’s seat. Eventually the window of his vehicle was broken and Gilbert was removed. After being booked into the Grant County Jail, Gilbert made a call to his wife and told her there were drugs in the vehicle.

Law enforcement officers obtained and executed a search warrant on the vehicle, and recovered a loaded firearm with a round in the chamber, under the driver’s seat. The gun had been reported stolen out of Wenatchee, Washington. Officers also recovered approximately 103.33 grams of methamphetamine and drug use paraphernalia.

Gilbert made bail in Grant County, and was contacted again by law enforcement on December 18, 2020, when he abandoned his vehicle and fled after another pursuit with law enforcement. A few days later,  officers with the Moses Lake Police Department located Gilbert and attempted to apprehend him in a traffic stop. Ultimately, they had to use spike strips in multiple locations to disable the Mercedes Benz that Gilbert was driving. Eventually Gilbert crashed the Mercedes into a parking lot and attempted to flee on foot, but was quickly arrested. Gilbert had about 80 grams of methamphetamine on his person.

At the sentencing hearing, Senior Judge Peterson noted Gilbert’s clear drug addiction and the fact that he had purportedly completed treatment three times. The Court indicated concern that despite these repeated opportunities, Gilbert continued his destructive pattern of endangering the community, including law enforcement, and concluded that Gilbert’s persistent pattern demonstrated the need to protect the public from the danger he presents to the community.

“Justice for Mr. Gilbert – and the people of Moses Lake – was finally served today, after years of misconduct, more than a dozen felonies, and repeated scares to community and law enforcement safety,” said United States Attorney Waldref. “It must have been terrifying for other drivers to see him barreling toward them at a high rate of speed in school zones, residential areas, and on the freeway, where he was traveling in the wrong direction. Even after that dangerous conduct and significant evidence of drug crimes, Mr. Gilbert engaged in another dangerous elude-and pursuit with additional methamphetamine on his person after he was granted bond and released pending trial. This significant sentence protects our community. Vehicular tragedy was avoided here only by virtue of the excellent, collaborative work of federal, state, and local law enforcement in Moses Lake and Grant County, and I commend our partnership with ATF, the Grant County Sheriff’s Office, and the Moses Lake Police Department.”

“The brazen nature of these cascading crimes truly warrant this significant sentence,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “We will always work closely with our state and local law enforcement partners to investigate felons who choose to possess firearms – particularly stolen firearms – when they know they are not supposed to have them.”

Kevin J. Fuhr, Chief of Police for the City of Moses Lake, concurred: “With Mr. Gilbert’s sentencing, the Moses Lake Community will be much safer. We appreciate our longstanding partnerships with the Grant County Sheriff’s Office, ATF, and the US Attorney’s Office. Our agencies will continue to work together to keep the people of Moses Lake and Grant County safe and secure.”

This case was investigated by the Grant County Sheriff’s Office, the Moses Lake Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Caitlin Baunsgard of the Eastern District of Washington handled this matter on behalf of the United States.

Spokane, Washington –Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that as part of ongoing joint efforts by the Spokane DEA Task Force, the Spokane Police Department Special Investigations Unit, and the FBI Safe Streets Task Force, approximately 35 pounds of methamphetamine, approximately 50,000 fake pills believed to contain fentanyl, and seven guns were seized in an ongoing drug trafficking investigation. One person was arrested and booked for obstruction of justice.

The U.S. Attorney noted the seizures and commended the joint nature of the ongoing investigation. “Yesterday’s seizures took a large amount of potentially lethal narcotics off the street, along with a number of guns that appear to have been connected to the drug trade,” said U.S. Attorney Waldref. “One fentanyl-laced pill can kill, so this seizure likely saved dozens, if not hundreds, of lives in the Spokane area. When it comes to investigating cases like this, it is truly a force multiplier to have DEA, FBI, Spokane PD, and our task forces working together seamlessly to seize these poison pills, protect the community, and keep Eastern Washington safe and strong. I commend and thank everyone involved in yesterday’s operation.”

 

 

Spokane, Washington – Hensel Phelps Construction Company (Hensel Phelps), a large construction company headquartered in Greeley, Colorado, has agreed to pay $2,804,110, to resolve allegations that it improperly manipulated a federal subcontract designated for a business owned and operated by a service-disabled veteran announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, and Carla B. Freedman, the United States Attorney for the Northern District of New York.

“Taking advantage of contracts intended for companies owned and operated by service-disabled veterans demonstrates a shocking disregard for fair competition and integrity in government contracting,” said United States Attorney Waldref. “We insisted not only that Hensel Phelps refund the government and pay a hefty penalty for its misconduct, but that it admit to its misconduct.”

Federal government contracts and subcontracts may be reserved, or “set aside,” for various categories of small businesses, such that only eligible small businesses in a particular socioeconomic category are eligible to bid on, receive, and perform the contracts. One such category is a service-disabled, veteran-owned small business (SDVOSB), which is reserved for small businesses owned, controlled, and operated by veterans of the United States military who incurred a disability in the course of their military service to the United States. Large businesses that perform on large federal prime contracts must develop and implement small business subcontracting plans designed to subcontract portions of the work to SDVOSBs and other types of small businesses.

Hensel Phelps is a general contractor and construction company that performs large scale private construction and public works projects nationwide, including in Washington and New York States. In 2011, the U.S. General Services Administration, which oversees construction of many federal buildings, awarded Hensel Phelps a contract to construct the Armed Forces Retirement Home’s New Commons/Health Care Building in Washington, D.C. The Armed Forces Retirement Home provides retirement communities and residential facilities for veterans. As a condition of the contract, Hensel Phelps was required to have and implement a small business subcontracting plan to provide contracting opportunities for SDVOSBs and other types of small businesses.

This case began in April 2022, when a whistleblower, a company known as Fox Unlimited Enterprises, LLP, filed a qui tam complaint under seal in the U.S. District Court for the Northern District of New York. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. Pursuant to the settlement agreement, the relator in this case will receive $630,925 of the settlement.

The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the U.S. Attorney’s Office for the Northern District of New York; the Defense Criminal Investigative Service, Syracuse Post of Duty; the General Services Administration Office of Inspector General, New York Field Investigations Office; the Department of Homeland Security Office of Inspector General, New York Field Office; the Air Force Office of Special Investigations, Procurement Fraud Detachment 6, Rome, New York; the U.S. Army Criminal Investigative Division, Syracuse Fraud Branch Office; the U.S. Department of Veterans Affairs Office of Inspector General, Spokane and Buffalo Resident Agencies; the Naval Criminal Investigative Service, Economic Crimes Resident Agency Northeast; and the Department of Transportation, Office of Inspector General, Northeastern Region.

Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington and Adam J. Katz of the Northern District of New York handled this matter on behalf of the United States.

4873-7571-2542_v1_hp_settlement_agreement_5-4-2022.pdf

Spokane, Washington – In honor of National Police Week, Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, recognized the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Wednesday, May 11 through Tuesday, May 17, 2022.

“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said United States Attorney General Merrick Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”

The U.S. Attorney joined the Attorney General in thanking law enforcement. “Throughout National Police Week, we thank our federal, state, local and Tribal law enforcement officers for their unrelenting commitment to protect us all and keep the communities of Eastern Washington safe and strong,” said U.S. Attorney Waldref. “Every day, these courageous men and women put their lives on the line for ours and we are extremely grateful for their sacrifice. We all owe them our deepest gratitude and respect.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021. Of that number, 319 succumbed to COVID-19. In the State of Washington, seven officers have died in the line of duty, including Jon David Anderson of the Spokane Police Department.

Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents. Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year. In 2021, unprovoked attacks1 were the cause of 24 deaths significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting. Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program.

The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.

 

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Reference to any specific organization or service(s) offered by an organization is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the United States Department of Justice.

 

 

1An unprovoked attack is defined as an attack on an officer not prompted by official contact at the time of the incident between the officer and the offender. Source: Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program.

Yakima – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Kentey Ramone Fielder, age 42, of Atlanta, Georgia, was sentenced today in federal court in Yakima, Washington. Chief Judge Stanley A. Bastian sentenced Fielder to 40 months in federal prison, followed by a 3-year term of supervised release. Chief Judge Bastian also ordered that Fielder pay restitution of $14,220.17.

In December 2021, Fielder pled guilty to wire fraud and aggravated identity theft in connection with a fraudulent scheme that he perpetrated concerning a contract with the United States Army’s Yakima Training Center (YTC), which is used by the Army for maneuver training, Land Warrior system testing and as a live fire exercise area. According to court documents, in 2015, Fielder obtained a contract to perform janitorial services at the YTC in the name of his company, Clean Contracting Services, (CCSI). Because Fielder had been disqualified from federal contracting in 2014, neither he nor CCSI were eligible to receive any federal contracts. Fielder obtained the YTC contract by misrepresenting that he was not affiliated with CCSI.

After obtaining the YTC contract, Fielder contacted Yakima Specialties, a Yakima-based nonprofit that employs individuals with disabilities to perform janitorial and other services at federal facilities, according to court documents. Fielder posed as a government contracting official and told Yakima Specialties that it had received the YTC contract. Posing as a government official, Fielder sent Yakima Specialties a fake YTC contract to perform the work, and included the name and signature of a real government contracting official that Fielder stole from a different contract. Believing it had been awarded the contract, Yakima Specialties performed the work, but was unable to obtain payment because it did not have the real YTC contract. Fielder then billed for and received payment for the work under CCSI.

According to court documents, the YTC contract was one of many contracts that CCSI and Fielder received using the fraudulent scheme described above. In July 2020, Fielder was indicted in the Eastern District of Washington for the fraud on the YTC contract. While Fielder was initially released from custody pending trial, in May 2021, he was subsequently ordered detained by the court for perpetrating a similar scheme in Georgia while on pretrial release, and will remain in custody until his sentence is served.

“Mr. Fielder’s fraud was as brazen as it was widespread, involving dozens of government contracts around the United States,” said U.S. Attorney Waldref. “Through our investigation and prosecution here in the Eastern District of Washington, we were able to hold Mr. Fielder accountable and to protect the public from his fraud, which not only stole from public funds, but harmed non-profit entities such as Yakima Specialties, which exists to employ individuals with disabilities and to perform vital services for the public. Fraud devastates our community’s critical resources. My office will continue to work proactively with our law enforcement partners to stop fraudulent schemes, and I commend the exceptional investigative work and collaboration by this talented and hardworking team of case agents.”

“This sentencing is the result of the Defense Criminal Investigative Service’s commitment to ensuring that Department of Defense programs and missions are protected from fraudulent actions throughout the procurement process,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Southeast Field Office. “Individuals who shamelessly violate the integrity of the defense contracting system for their own personal gain will be thoroughly investigated and brought to justice.”

“We will continue working with our law enforcement partners to uncover such deceitful schemes involving federal contracts,” said Special Agent in Charge Terry Pfeifer of the GSA Office of Inspector General.

“Today’s sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are unrelenting in their pursuit of those who choose to victimize government contractors through deceit and defrauding the US Army and its Soldiers of full, open, and secure competition within its procurement efforts,” said Special Agent in Charge L. Scott Moreland, Major Procurement Fraud Field Office, US Army Criminal Investigation Division.

The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the Defense Criminal Investigative Service; the United States Army Criminal Investigation Division; the Small Business Administration Office of Inspector General; the General Services Administration Office of Inspector General; the U.S. Department of Veterans Affairs Office of Inspector General; the Department of Homeland Security Office of Inspector General; the Department of Health and Human Services Office of Inspector General; the Department of Justice Office of Inspector General; the Department of State Office of Inspector General; the Department of Commerce Office of Inspector General; and the Internal Revenue Service, Criminal Investigation Division.

Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States.

Spokane, Washington – In a May 4, 2022 Proclamation, President Joseph R. Biden proclaimed today, May 5, 2022, as Missing and Murdered Indigenous Persons Awareness Day. In doing so, the President called on all Americans to support Tribal governments and Tribal communities’ efforts to increase awareness of missing and murdered Indigenous People.

The U.S. Attorney’s Office for the Eastern District of Washington fully supports these efforts, and our Office reaffirms its commitment to each of the Tribes in Eastern Washington to address this significant issue. “Recognizing and honoring missing and murdered Indigenous people is a top priority for the Department of Justice, and the U.S. Attorney’s Office for the Eastern District of Washington,” U.S. Attorney Vanessa R. Waldref stated. “It remains unacceptable that Native Americans experience some of the highest rates of violence in the country, a situation that is all the more tragic in light of the generations of trauma already suffered by Indigenous people.”

“The Department of Justice and the U.S. Attorney’s Office will continue to address the causes and symptoms of this difficult problem.” U.S. Attorney Waldref continued, “During the past year, the Department has sought the help and input from Tribal leaders and Tribal communities to develop sustainable protocols to help our communities respond when a tribal member is reported missing. The U.S. Attorney’s Office supports these initiatives, and we are fully committed to working closely with Tribal leaders, law enforcement partners, and community stakeholders to implement Savanna’s Act, as we strive to keep Eastern Washington communities safe and strong for everyone.”

If you or someone you know has information about a missing or murdered Indigenous person, please contact the FBI Seattle Field Office by calling (206) 622-0460 or by visiting tips.fbi.gov.

Spokane, Washington – United States Air Force Staff Sergeants John I. Sanger and Eric A. Eagleton have been arrested on charges of Conspiracy to Commit Theft of Government Property. According to charging documents, Sanger, Eagleton, and others engaged in a conspiracy in March 2022 to steal ammunition belonging to the United States Government. As part of the scheme, Sanger, Eagleton, and their conspirators are alleged to have stolen thousands of rounds of U.S. Air Force ammunition. According to charging documents, they also falsified records at Fairchild Air Force Base to conceal the theft.

U.S. Attorney Vanessa Waldref commended the joint efforts of law enforcement and emphasized the importance of safeguarding government property and resources. “As the U.S. Attorney, I will not tolerate any abuse of trust by those charged with protecting our great Nation and community. So many of those who serve at Fairchild Air Force Base are career public servants who sacrifice their time, energy, and even their lives to keep America safe. When individuals put their own interests ahead of others and abuse the public trust, those individuals dishonor the countless public servants who dedicate their lives to government and military service. I commend the FBI and Air Force Office of Special Investigations, who identified this scheme and who serve diligently to keep our country and communities safe and strong.”

“Members of our nation’s armed forces swear an oath to support and defend the Constitution of the United States against all enemies, foreign and domestic,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “There is no exception to set aside this oath to achieve personal goals. The FBI, along with our partners in the Air Force and U.S. Attorney’s Office, are upholding our oaths and ending this criminal conspiracy.”

As the Department of the Air Force’s federal law enforcement arm, the Office of Special Investigations (OSI) works closely with interagency partners to identify and neutralize threats to the force in any form to include the theft of government property and its use for criminal gain. “I am proud of the expertise and commitment that went into this difficult and complex operation from all involved. From its start, force protection and community safety were our top priorities. I am in awe of how our law enforcement partners came together to halt this dangerous conspiracy,” stated Brigadier General Terry Bullard, Commander, OSI.

The case is being investigated by the FBI’s Seattle Field Office, Inland Northwest Joint Terrorism Task Force (“INJTTF”), and the United States Air Force Office of Special Investigations (OSI).

This case is being prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.

A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Spokane, Washington – Senior U.S. District Judge Edward F. Shea has sentenced Dr. Janet Sue Arnold, age 63, of Benton City, Washington, to 48 months in federal prison for conspiring to distribute and possess with intent to distribute opioid pain medications and other controlled substances without a legitimate medical purpose and outside the usual course of professional practice. Senior Judge Shea also imposed a period of 3-years’ federal supervised release.

In announcing the sentence, Senior Judge Shea emphasized the risks created by Defendant’s offense, stating, that this “particular crime created the risk of so many others.”

According to court documents, Arnold abused her position of trust as a medical doctor by participating in a prescription drug conspiracy with Danielle Corine Mata, David Barnes Nay, Lisa Marie Cooper and Jennifer Cheri Prichard. As part of their conspiracy, Dr. Arnold and her conspirators pushed thousands of pills on the street to be abused by addicts, and potentially caused others to become addicted to controlled substances. Mata and Prichard, who were both addicts, started out as patients but eventually started working at Dr. Arnold’s Richland, Washington clinic – Desert Wind Family Practice. In approximately March 2016, Mata became the practice’s office manager and one of Arnold’s most trusted associates. During the conspiracy, Nay and Cooper also provided Mata with the names of fictitious patients for her to use on several of the blank, pre-signed prescriptions to obtain opioids.

The conspiracy operated primarily out of Dr. Arnold’s clinic in Richland, Washington. On regular basis, the conspirators distributed highly addictive and dangerous controlled substances, including fentanyl, oxycodone, methadone, hydromorphone, methylphenidate, an amphetamine mixture, as well as carisoprodol and alprazolam. Dr. Arnold had a pattern and practice of providing office staff and patients with hundreds of blank, pre-signed prescriptions that, after logging into the clinic computer, allowed the conspirators to complete and print prescriptions for opioids and other controlled substances. Text messages recovered by investigators from Arnold’s and Mata’s phones demonstrated that Dr. Arnold had texted Mata asking if she needed more “signed paper.” A conspirator acknowledged how important Dr. Arnold’s signature was to the illegal prescription drug distribution conspiracy when she commented to another conspirator, “It’s just a scribble, but it’s important.” Dr. Arnold also prescribed oxycodone pills to a DEA confidential informant without a legitimate medical reason and outside the usual course of medical practice. The confidential informant, posing as a patient, sought treatment from Dr. Arnold for a headache. The confidential informant’s interactions with Arnold were covertly audio- and video-recorded.

Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, emphasized the seriousness of Dr. Arnold’s breach of trust to the community: “The severity of the conduct cannot be overstated. Dr. Arnold had the prescription pad, the pen, and all the power to prescribe highly addictive Schedule II and Schedule IV controlled substances. She abused that power by pre-signing numerous blank prescriptions and giving them to her office manager. Dr. Arnold contributed to an epidemic of opioid abuse and addiction in Washington. The human cost of this epidemic is staggering and stoked by the criminally poor decisions of doctors like Janet Arnold. She was aware of the red flags of opioid drug diversion, ignored them in her practice, and continued to prescribe drugs in direct violation of her duty as a licensed doctor in Washington. With the stroke of a pen, Dr. Arnold fueled the addiction of people to opioids. I commend the excellent investigative work conducted by DEA’s Tactical Diversion Squad and the Department of Health and Human Services Office of Inspector General. We all depend on doctors and medical professionals to deliver quality and medically-appropriate care, and we will continue to work with our law enforcement partners to hold health care practitioners accountable. By doing so, we help make communities in Eastern Washington safer and stronger.”

“Dr. Arnold contributed to the current opioid epidemic with her illegal and irresponsible prescribing habits,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “She broke the trust of the community and violated her oath to the public by using her prescription pad and signature to drive a conspiracy to distribute fentanyl patches, opioids and other controlled substances. Today’s sentence sends a clear message that those who participate in the illegal distribution/diversion of narcotics, will be held accountable. We will continue to work with our local, state and federal law enforcement partners to keep our communities safe and healthy.”

“Health care professionals have a duty to prescribe controlled substances responsibly. Dr. Arnold’s inappropriate prescribing habits violated federal law and presented a clear danger to patients’ health and safety,” stated Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Along with our law enforcement partners, HHS-OIG will continue to hold accountable medical professionals who recklessly prescribe opioids at the expense of their community’s well-being.”

Arnold is the third of five defendants to be sentenced in this case. David Barnes Nay, age 43, of Kennewick, Washington, and Lisa Marie Cooper, age 55, of Prosser, Washington, were sentenced to 78-month and 24-month terms of imprisonment, respectively. Danielle Corine Mata, age 44, of Richland, Washington, and Jennifer Cheri Prichard, age 46, of Prosser, Washington, are scheduled to be sentenced in May 2022.

The case was investigated by DEA’s Seattle Field Office, Tactical Diversion Squad (“TDS”), and the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office. This case was prosecuted by George J.C. Jacobs, III and Dominique J. Park, Assistant United States Attorneys for the Eastern District of Washington.

Spokane, Washington – Senior U.S. District Judge William Fremming Nielsen has sentenced Justin Thomas Gentemann, age 31, of Omak, Washington, to 37 months in federal prison for a March 4, 2021 assault resulting in serious bodily injury to a domestic partner in Indian county. Senior Judge Nielsen also imposed a period of 3 years’ federal supervised release.

In announcing the sentence, Senior Judge Nielsen emphasized the need to protect victims of domestic abuse, especially when such abuse occurs as a result of alcohol and controlled substance use. “This case was very serious and involved repeated conduct,” Senior Judge Nielsen stated. “Serious conduct means serious consequences.” Ultimately, Senior Judge Nielsen agreed with the United States’ sentencing recommendations and imposed a sentence at the high end of the sentencing range agreed upon by the parties.

According to court documents, on March 4, 2021, Gentemann and his girlfriend at the time were at Owhi Lake, which is located on the Colville Indian Reservation. Gentemann had been drinking and accused his girlfriend of being unfaithful to him. As Gentemann continued to drink, he became more aggressive. Eventually, Gentemann punched the girlfriend in the chest and threw her to the ground. Gentemann then drove away in the girlfriend’s truck. Gentemann returned shortly thereafter and chased down the girlfriend. At this point, Gentemann headbutted his victim and punched her, breaking her nose. The girlfriend was able to escape the scene by getting a ride from an eyewitness. After the assault, the girlfriend had blood on her sweatshirt from the injuries to her nose.

When Gentemann was placed under arrest for the assault, he became belligerent with Colville Tribal Police Officer Mackenzie Shaffer, threatening to “beat the fuck out” of the officer. Gentemann later attempted to kick Officer Shaffer, who had to step back to avoid being struck in his leg. Gentemann, however, did hit Officer Shaffer’s hand, causing a contusion, which required medical treatment.

As Senior Judge Nielsen noted at the sentencing hearing, Gentemann has a “track record” of behavior involving alcohol or domestic violence. Court papers indicate Gentemann has a 2014 conviction for driving under the influence, a 2015 conviction for malicious mischief, and convictions in 2017 and 2018 for domestic violence.

“My office is committed to prosecuting those who commit domestic abuse,” U.S. Attorney Vanessa R. Waldref stated. “Too often, domestic violence victims struggle to access the justice system to get the protection and resources they need. I am grateful for the tremendous law enforcement agents, victim advocates, and prosecutors who handle these challenging cases. By working together, we make our communities safer and stronger, and we can ensure Native American women and families are protected not only from domestic violence, but also from retaliation when they disclose what they experienced.”

“I also want to commend the law enforcement officers who responded to the scene of the domestic assault,” U.S. Attorney Waldref continued. “Our first-line responders put themselves in harm’s way to protect members of our community. I’m grateful for Officer Schaffer’s service and thankful he was not seriously injured when Mr. Gentemann attacked him.”

“Violence against Native American women is starting to receive the much needed attention it warrants,” said Donald Voiret, Special Agent in Charge of the FBI Seattle Field Office. “I know this office and our partners at the U.S. Attorney’s Office will continue to move quickly and hold perpetrators of violence on our state’s reservations accountable for their crimes.”

The case was investigated by the Federal Bureau of Investigation and the Colville Tribal Police Department. This case was prosecuted by Richard R. Barker, Assistant United States Attorney for the Eastern District of Washington.

Spokane, Washington – Dr. Jacqueline Thomas, N.D., an East Wenatchee-based naturopathic doctor, and Dr. Rebecka Hoppins, an, Edmonds-based naturopathic doctor, have each agreed to pay $16,500 to resolve allegations under the Controlled Substances Act that they improperly prescribed controlled substances. The Controlled Substances Act regulates certain drugs deemed to pose a risk of abuse and dependence. To protect public safety and prevent misuse and diversion, the Act requires practitioners to register with the Drug Enforcement Administration (“DEA”) to prescribe these controlled substances.

During the relevant time period, Dr. Thomas and Dr. Hoppins were both naturopathic doctors licensed and practicing in the State of Washington. Under state and federal law, as naturopathic doctor, Dr. Thomas and Dr. Hoppins were only authorized to prescribe two types of controlled substances: codeine and testosterone products. Nonetheless, in the settlement agreement between the United States and Dr. Thomas, Dr. Thomas admitted to issuing 110 prescriptions for controlled substances that she was not licensed to prescribe between December 2016 and September 2021. These included the narcotic opioid tramadol; the sleep aids zolpidem (often sold under the brand name Ambien) and eszopiclone (often sold under the brand name Lunesta); the sedative pregabalin (sometimes sold under the brand name Lyrica); and the diet drug phentermine. Similarly, in the settlement agreement between Dr. Hoppins and the United States, Dr. Hoppins admitted to issuing 110 invalid prescriptions for controlled substances between 2017 and 2022, including the benzodiazepine alprazolam; the narcotic opioids hydrocodone and tramadol; and the sleep aids eszopiclone (commonly prescribed under the brand name Lunesta) and zopidem (often sold under the brand name Ambien).

The settlement agreement also further sets forth that both doctors ceased their improper prescribing practices after being contacted by the DEA. Dr. Hoppins voluntarily surrendered her DEA registration and implemented additional controls to ensure appropriate prescribing going forward, while Dr. Thomas entered into a separate compliance agreement with DEA to submit regular prescribing logs and to undertake additional corrective actions to ensure that this conduct does not recur.

“I am relieved that it does not appear anyone was seriously harmed by medications improperly prescribed by these practitioners, and I commend both for admitting their past conduct and committing to strict compliance going forward. But when a healthcare practitioner prescribes controlled substances that she is not licensed or qualified to prescribe, the public is placed at serious risk of potentially dangerous side effects, drug interactions, and contraindications,” said Vanessa R. Waldref, United States Attorney for the Eastern District of Washington. “This resolution demonstrates our strong commitment to protecting public health and to keeping our communities strong and safe. In particular, I commend the excellent investigative work conducted by DEA’s Diversion Group, and the Department of Health and Human Services Office of Inspector General. We will continue to work with our law enforcement partners to hold health care practitioners accountable.”

“The careless and irresponsible prescribing habits of Dr. Hoppins and Dr. Thomas are a violation of federal law and in serious breach of their naturopathic license, presenting a clear and present danger to our nation’s health, safety and security,” said Frank A. Tarentino III, Special Agent in Charge, DEA Seattle Field Division. “Although regretful and conciliatory, the behavior of these medical professionals significantly contributes to the many complexities fueling the opioid epidemic and endangering the citizens of Washington. We will continue to work with our local, state and federal law enforcement partners in the opioid and overdose prevention awareness campaign and relentless pursuit of all those involved in the trafficking of opioids.”

These are the latest in a series of settlements the U.S. Attorney’s Office has announced with naturopaths for improperly prescribing controlled substances. In November 2021, Dr. Christopher M. Valley, a Spokane-based naturopath, agreed to pay $47,700 to resolve his liability under the Controlled Substances Act, while Dr. Judith Caporiccio, a Richland naturopath, entered into a $70,096 settlement resolving her liability in February 2022.

The settlement was the result of a joint investigation conducted by DEA’s Seattle Field Office, Diversion Group, the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office, and the U.S. Attorney’s Office for the Eastern District of Washington. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene handled this matter on behalf of the United States.

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Richland, WA – United States Attorney Vanessa R. Waldref and Benton County Prosecuting Attorney Andy Miller jointly announced today that Laurel J. Holland, who serves as a Deputy Prosecuting Attorney in Benton County, has been appointed as a Special Assistant United States Attorney (SAUSA) for the Eastern District of Washington. As a SAUSA, Holland will prosecute cases in both state and federal court, focusing primarily on crimes against children.

In making this announcement, U.S. Attorney Waldref reiterated her office’s commitment to prosecuting federal cases in the Tri-Cities area. “The number of cases prosecuted from our Richland office has risen over the past several years and we expect this to continue. The Tri-Cities area is the second largest metropolitan center in the Inland Northwest, and we will continue to prosecute the area’s most dangerous criminals to the fullest extent. Today’s announcement should serve as yet another signal to those who victimize children that such crimes will not be tolerated in our communities.”

U.S. Attorney Waldref continued, “Federal, State, Tribal, and local partnerships are essential to building safer and stronger communities in Eastern Washington. Many of these partnerships exist on the law enforcement level, including through joint task forces and cross deputization agreements.” U.S. Attorney Waldref further emphasized, “By combining federal and state resources, we are able to accomplish more to keep our communities safe than we otherwise could.” The SAUSA program applies this same principle to criminal prosecution – permitting experienced prosecutors to handle criminal cases in both state court and federal court.

Benton County Prosecuting Attorney Andy Miller similarly addressed the importance of utilizing state and federal partnerships to address crime against children in the Tri-Cities area: “As a Deputy Prosecuting Attorney and a SAUSA, Laurel Holland will have the ability to rely on both federal and state laws to prosecute those who commit crimes against our children, allowing us to better protect children and achieve justice on behalf of children who are harmed.”

Both U.S. Attorney Waldref and Prosecuting Attorney Miller also commended SAUSA Holland’s commitment and dedication to public service. Holland served as a Deputy Prosecuting Attorney for Benton County from October 2009 through October 2015. She later rejoined the Benton County Prosecuting Attorney’s Office in January 2019, where she continues to handle a wide variety of criminal cases, focusing primarily on crimes against children, including online exploitation as well as physical and sexual abuse. Holland’s appointment as a SAUSA also reflects a homecoming for Holland, who served as an Assistant United States Attorney in Yakima, Washington from 2015-2018. U.S. Attorney Waldref put it like this: “We know from experience that SAUSA Holland is an exceptional attorney and prosecutor. She handles her cases with earnestness and vigor to ensure a just and fair result in each and every case. We are fortunate to have her back in the USAO fold.”

Newly appointed SAUSA Holland expressed her continued desire to protect the most vulnerable in our communities. “I’m excited to rejoin the U.S. Attorney’s Office, while continuing my work as a state prosecutor in Benton County. I am especially honored to work with the talented state and federal investigators who devote their careers to protecting young children from physical and sexual abuse. Through combined state and federal efforts, we can make Benton County a safer place to live, work, and raise our families.”

Spokane – United States Attorney for the Eastern District of Washington Vanessa Waldref and DEA Special Agent in Charge Frank A. Tarentino announced that Saturday, April 30, 2022, from 10:00 a.m. to 2:00 p.m. is DEA National Prescription Drug Take Back Day. This year marks the 22nd bi-annual event in the eleven-year history of the Drug Take Back initiative. Drug Take Back Day gives the public the opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous, expired, unused, and unwanted prescription drugs.

The United States Attorney’s Office for the Eastern District of Washington will be partnering on Saturday, April 30, with the Drug Enforcement Administration (DEA), Spokane Police Department, and other community partners at Northtown Mall, 4750 North Division, located in the northwest corner of Division Street and Queen Avenue in Spokane.

At its last Take Back Day in October 2021, the DEA collected nationally a record-high amount of expired, unwanted, and unused prescription medications, with the public turning in close to 745,000 pounds of unused drugs. Over the 11-year span, DEA’s National Prescription Drug Take Back Day has brought in more than 15.2 million pounds of prescription drugs. With studies indicating a majority of abused prescription drugs come from family and friends, including from home medicine cabinets, clearing out unused medicine is essential. Of those numbers, Washington State collected 9,380 pounds of prescription drugs at approximately 72 collections sites operated by the DEA and its state and local law enforcement partners.

“My office is committed to reducing tragic drug overdose deaths. By participating in events like Prescription Drug Take Back Day, we can remove expired narcotics from our communities, prevent medication misuse, and make Eastern Washington safer and stronger,” U.S. Attorney Waldref stated. “Consistent with Operation Engage Spokane – which is a comprehensive community-level approach for addressing the drug epidemic, through proactive prevention strategies, conversations, and collaboration with local partners – drug take back events are one way members of our community can positively impact the opioid crisis and protect their loved ones. Prescription drug misuse and overdose deaths do not discriminate – they can impact individuals of any age, race, gender or demographic.”

“The DEA Seattle Field Division is committed to making our communities safer and healthier by driving down overdoses and overdose deaths through targeted enforcement and community- based initiatives like our 22nd National Prescription Drug Take Back Day,” said Frank A. Tarentino III, Special Agent in Charge, DEA Seattle Field Division. “Opioid misuse and abuse, which are fueling the drug overdose epidemic, are a clear and present public health, public safety, and national security threat in the United States. With the help from the community, we can remove the unwanted prescription pills found in homes throughout Spokane from causing potential harm. This collaborative effort is an example of the DEA’s commitment and resolve in the fight to decrease the significant surge in overdoses afflicting Eastern Washington.”

“Our officers see the painful and costly effects of drug related crimes every day. Last year almost 300 Americans died each day due to drug overdoses,” Spokane Police Chief Craig Meidl stated. “Everything we can do to stop these deaths is a life saved, and a family not ruined by the scourge of overdose deaths. Drug Take Back Day is a great step community members can take to make a difference.”

In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day. The FDA provides information on how to properly dispose of prescription drugs. To find out where year-round disposal sites are located, go to https://www.fda.gov/consumers/consumer-updates/where-and-how-dispose-unused-medicines.

For more information about Annual Prescription Drug Take Back Day, go to www.DEATakeBack.com

Walla Walla, WA – Providence Health & Services Washington (Providence) has agreed to pay $22,690,458 to resolve allegations that it fraudulently billed Medicare, Medicaid, and other federal health care programs for medically unnecessary neurosurgery procedures, announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington and Bob Ferguson, the Washington State Attorney General. Today’s joint settlement between Providence, the United States, and the State of Washington, which administers Washington’s Medicaid program using a combination of state and federal funding, is the largest-ever health care fraud settlement in the Eastern District of Washington.

Providence is a large health care and hospital system that operates 51 hospitals in seven western U.S. states, including Providence St. Mary’s Medical Center (Providence St. Mary’s) in Walla Walla, Washington. Between 2013 and 2018, Providence St. Mary’s employed neurosurgeons identified in the Settlement Agreement as Dr. A and Dr. B. Providence St. Mary’s paid neurosurgeons based on a productivity metric that provided them a financial incentive to perform more surgical procedures of greater complexity. Between 2014 and 2018, Dr. A was one of the highest producing neurosurgeons in the entire Providence system. Between 2014 and 2017, based on the productivity metric, Providence paid Dr. A between $2.5 million and $2.9 million per year. Today’s settlement resolves allegations that Providence falsely billed Medicare, Washington State Medicaid, and other federal health care programs for deficient and medically unnecessary neurosurgery procedures performed by Dr. A and Dr. B.

“Ensuring that surgical procedures are medically appropriate and properly performed is critical to building safe and strong communities here in the Eastern District of Washington,” said U.S. Attorney Waldref. “Patients with back pain and spinal injury deserve top-notch care from a provider who puts the patient first and is not improperly influenced by how much he can bill for the procedure. Providence’s failure to ensure that Dr. A and Dr. B were performing safe and medically-appropriate surgery procedures, despite repeated warnings, put patients’ lives and safety at serious risk. I am also gravely concerned that Providence’s decision not to report Dr. A or Dr. B to federal or state medical oversight bodies allowed both surgeons to simply resign from Providence and then continue to endanger patients at other hospitals.”

As part of the Settlement Agreement, Providence admitted that, during the time period in which Dr. A and Dr. B were employed at Providence St. Mary’s as neurosurgeons, Providence medical personnel articulated concerns that Dr. A and Dr. B: (1) were endangering the safety of patients; (2) created through their surgeries an excessive level of complications and negative outcomes; (3) performed surgery on candidates who were not appropriate for surgery; and (4) failed to properly document their procedures and outcomes. Providence further admitted that Providence medical personnel articulated additional concerns that Dr. A: (1) completed medical documentation with falsified and exaggerated diagnoses in order to obtain reimbursement from insurance providers; (2) performed surgical procedures that did not meet the medical necessity requirements set by Medicare and other insurance programs; (3) “over-operated”, i.e., performed surgeries of greater complexity and scope than were medically appropriate; and (4) jeopardized patient safety by attempting to perform an excessive number of overly complex surgeries. Finally, Providence admitted that, while it eventually placed both Dr. B and Dr. A on administrative leave in February 2017 and May 2018, respectively, it allowed both doctors to resign while on leave, and did not take any action to report Dr. A or Dr. B to the National Practitioner Data Bank or the Washington State Department of Health.

As part of the settlement, Providence entered into a Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Providence implement and maintain a number of quality-of-care and patient safety obligations. Additionally, the CIA requires that Providence retain outside experts to perform annual claims and clinical quality systems reviews.

United States Attorney Waldref further stated, “While Providence’s conduct was extremely troubling, I do want to commend Providence for stepping up, accepting responsibility, taking appropriate and meaningful corrective action, and for fully cooperating with our investigation as well as agreeing to fully cooperate in our ongoing investigations. United States Attorney Waldref continued “I also want to express special appreciation for our close collaboration and partnership with the Washington Medicaid Fraud Control Division and with the whistleblower and his team, as well as the exceptional investigative work performed by HHS-OIG, Office of Personnel Management OIG, and Defense Criminal Investigative Service. We will continue to work closely with our state and federal law enforcement partners and with courageous whistleblowers to hold health care fraudsters accountable and to build safe and strong communities here in the Eastern District of Washington.”

“Patients trust their doctors that the care they receive is necessary, particularly when they are undergoing neurosurgery,” said Washington Attorney General Bob Ferguson. “Performing unnecessary surgeries for profit is a betrayal of that trust. I’m proud of the work we did with U.S. Attorney Waldref and our federal partners, and we look forward to continuing our work together to protect Medicaid dollars for those who need them.”

“Our agency will continue to hold accountable medical providers who perform medically unnecessary procedures and fraudulently bill federal health care programs,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, HHS-OIG remains committed to protecting the health of patients and the integrity of the taxpayer-supported programs serving them.”

“Patients must be able to trust that when providers recommend surgery it is because it is necessary, not because it is profitable,” said Amy K. Parker, Special Agent in Charge of the Office of Personnel Management’s Office of Inspector General. “I am grateful for the outstanding work of our agents and law enforcement partners who helped protect patients from harm.”

“This multi-million dollar settlement holds Providence and its former doctors accountable for dubious actions that endangered patient safety and defrauded various healthcare programs, including the Department of Defense’s TRICARE program,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS remains committed to working with its law enforcement partners in protecting the integrity of federal healthcare programs, which facilitates an environment for our healthcare providers to be truly focused on quality patient care and safety.”

According to court documents, the case began in January 2020, when a whistleblower, the former Medical Director of neurosurgery at Providence-St Mary’s, filed a qui tam complaint under seal in the U.S. District Court for the Eastern District of Washington. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. In this case, according to court documents, the United States intervened in the action in January 2022, and subsequently reached this settlement. Pursuant to the settlement agreement, the relator will receive $4,197,734 of the total settlement amount.

The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the State of Washington, Office of the Attorney General, Medicaid Fraud Control Division; the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office, the Defense Criminal Investigative Service, Seattle Field Office; and the Office of Personnel Management, Office of Inspector General, Western Regional Office. The United States Attorney’s Office would also like to express special thanks and appreciation for the logistical support provided by the Walla Walla Police Department. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States.

U.S. Attorney Waldref will be addressing the case at a press conference at 10:00 a.m. on April 12, 2022 in front of the Thomas Foley Federal Courthouse building at 920 W. Riverside Avenue, Spokane, Washington. She will be joined by Larissa Payne, Director of the Medicaid Fraud Control Division for the Washington State Attorney General’s Office.

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Spokane, WA: At 10 a.m. on Tuesday, April 12, the United States Attorney for the Eastern District of Washington, Vanessa R. Waldref, and the Washington State Attorney General, Bob Ferguson, will hold a joint press conference to announce the resolution of a major case involving health care fraud, elder abuse, and patient harm, which will be the largest-ever health care fraud settlement in Eastern Washington.

U.S. Attorney Waldref will also address the U.S. Attorney’s Office’s ongoing efforts to work with state and federal law enforcement partners to combat elder abuse, health care fraud, and patient endangerment in Eastern Washington.

The press conference will take place in front of the Thomas Foley Federal Courthouse Building at 920 W. Riverside Avenue, Spokane, Washington, 99201 or, in the event of inclement weather, in the Building in Conference Room 116. U.S. Attorney’s Office anticipates being able to release additional information regarding the resolution prior to the press conference.

Spokane, WA – The Drug Enforcement Administration (D.E.A.), in partnership with the U.S. Attorney’s Office for the Eastern District of Washington, recently launched Operation Engage Spokane, which is a comprehensive community-level approach for addressing the drug epidemic – focusing on fentanyl distribution – through prevention strategies, facilitating conversations, and collaboration with local partners.

“The fentanyl crisis is the new face of the opioid epidemic. By working together with our law enforcement partners, local governments, and community outreach organizations, such as the Spokane Alliance for Fentanyl Education and the Rayce Rudeen Foundation,” U.S. Attorney Waldref stated, “we have a unique opportunity to proactively work to avoid the tragedy that fentanyl causes on a daily basis.”

“These dangerous counterfeit pills are impacting people of all ages.” U.S. Attorney Waldref emphasized. “Drug traffickers are adapting to social change, using Snapchat, Instagram, YouTube and other mainstream social media to infiltrate this poison into communities like ours. As a mother who is navigating social media and screen time for my kids – like so many parents – it is frightening to know that fentanyl can be hidden in plain sight and accessible through any smartphone.”

When Operation Engage Spokane was launched, DEA Special Agent in Charge Frank Tarantino III expressed the need for the entire community to work together to target fentanyl: “The impact and overall effectiveness of this initiative is directly dependent on the community, law enforcement, health care, prevention and social service professionals working together to mitigate the fentanyl drug threat.” U.S. Attorney Waldref agreed that our communities must unite to address the opioid crisis, emphasizing that her office will continue to do its part to curb the illegal distribution of fentanyl. “As the chief law enforcement officer in Eastern Washington, I am committed to prosecuting the criminal drug cartels who put our communities and our youth at risk. Our office has been prosecuting fentanyl cases since 2016, and we will continue vigorously prosecuting these cases as part of our ongoing efforts to build safer and stronger communities in the Eastern District of Washington.”

For its part, the United States Attorney’s Office currently is prosecuting numerous cases involving fentanyl distribution in Eastern Washington. The following are recent examples of fentanyl cases, some of which are pending in federal court in Spokane, Richland, and Yakima. For those matters that are currently pending, an indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

• United States v. Dustin Allen and Kolin Mazur: Indicted on January 4, 2022 for distribution of fentanyl. Mazur originally was charged in Idaho state court, and the matter was referred to the U.S. Attorney’s Office for the Eastern District of Washington. According to state court documents, Allen and Mazur’s distribution resulted in at least one overdose death.

 

• United States v. Francisco Erasmo Angulo-Rivera: Indicted on April 5, 2022, for distributing fentanyl on various occasions in 2021 and 2022.

 

• United States v. Yancarlos Arredondo-Mendoza: Indicted on February 1, 2022, for possession with intent to distribute 400 grams or more of fentanyl. According to charging documents, Arredondo-Mendoza was in possession of approximately 20,000 suspected fentanyl-laced pills, suspected heroin, and a loaded Glock 9mm pistol in early January 2022.

 

• United States v. Raymond Keith Hewlett: Indicated on April 5, 2022, for distributing fentanyl and methamphetamine in Spokane, Washington.

 

• United States v. Antoinne Holmes and Reigan Allen: Indicted on July 20, 2021 for conspiracy to distribute fentanyl and, specific to Holmes, two counts of possession with intent to distribute fentanyl and two counts of felon in possession of a firearm. Holmes had previously been indicted in the District of Idaho on April 14, 2021 for distribution of fentanyl resulting in the death of a sixteen-year-old. Allen’s then-five month old infant also overdosed on fentanyl during the conspiracy, but survived.

 

• United States v. Jeremiah James LaFave: Indicted on March 1, 2022, for possession with intent to distribute fentanyl, felon in possession of a firearm, and assault on law enforcement with a deadly weapon.

 

• United States v. Hunter Bow O’Mealy, Caleb Ryan Carr, Jaime Lynn Bellovich, Matthew Gudino-Pena: Indicted on November 2, 2021 on conspiracy charges stemming from distribution of fentanyl in Spokane, Washington. Charging documents allege the defendants’ conspiracy resulted in at least one violent shooting, at least one overdose death, and the seizure of more than 50,000 fentanyl pills as well as numerous firearms.

 

• United States v. Josue Medina-Perez and Francisco Delgado: In March 2021, Medina-Perez was sentenced to a 96-month term of imprisonment and Delgado was sentenced to 10 years of incarceration. According to charging documents, Medina-Perez and Delgado were identified as one of the first major sources of Fentanyl-laced pills in Eastern

Washington and were responsible for transporting and distributing more than 5,000 to 10,000 pills per week beginning in 2017.

 

• United States v. Lewis Mesa: Indicted on April 5, 2022, for possession with intent to distribute 400 grams or more of fentanyl and for possessing a firearm in furtherance of a drug-trafficking crime.

 

• United States v. Dwight Norwood Jr.: Indicted on March 1, 2022, for possession with intent to distribute fentanyl and felon in possession of a firearm.

 

• United States v. Carlos Reyes-Santana, Eduardo Reyes-Santana, Rosa Martinez-Rodriguez, Molly Margret Brown, and Alfonso Avila Olivera: Superseding indictment filed on February 15, 2022, alleging various drug-trafficking offenses, including conspiracy to distribute 500 grams or more of methamphetamine, 1 kilogram or more of heroin, 5 kilograms or more of cocaine, and 400 grams or more of fentanyl. According to charging documents, law enforcement recovered approximately 52 pounds of methamphetamine, 1 pound of cocaine, about 50,000 fentanyl-laced pills, $500,000 in U.S. currency, and multiple firearms during the execution of a number of search warrants in March 2021.

 

• United States v. Jonathan Rivera-Venegas: Indicted on April 5, 2022 on charges of conspiracy and distribution of fentanyl in Ellensburg, Washington. While Rivera-Venegas initially was charged in Washington state court, the case was adopted by the U.S. Attorney’s Office for federal prosecution. According to state charging documents, Rivera-Venegas’s distribution of fentanyl has been linked with at least two overdose deaths.

 

• United States v. Keauve D. Ruff: Pled guilty to conspiracy to distribute fentanyl and cocaine in September 2021. As part of his guilty plea, Ruff admitted to distributing fentanyl, which resulted in an overdose death in Airway Heights, Washington in May 2020. Ruff’s sentencing currently is set for July 15, 2022 in Spokane, Washington.

 

• United States v. Michael Lee Vantiger: Indicted on February 19, 2020 for possession with intent to distribute 400 grams or more of fentanyl. According to charging documents, Vantiger was found in possession of approximately 53,000 fentanyl-laced pills inside a rental car.

 

• United States v. Christopher West and Ron Montgomery: Indicted on January 7, 2020 on charges stemming from a conspiracy to distribute fentanyl in the Tri-cities area. According to court documents, West and Montgomery’s distribution resulted in at least one overdose death.

For more information and local resources, visit Spokane.dea.gov as well as the national page: www.OperationEngage.com.

 

Yakama, Washington – Chief U.S. District Judge Stanley Bastian has sentenced Jesus B. Zavala-Alvarez, 28, of Kennewick, Washington, to 135 months in federal prison for his role in guarding a stash house, where the Drug Enforcement Administration (D.E.A.) seized over 8 pounds of methamphetamine, 64 ounces of liquid methamphetamine and 19,000 deadly fentanyl-laced pills, along with a loaded firearm. Zavala-Alvarez was also sentenced to serve five years on federal supervision if he is allowed to remain in the United States. Zavala-Alvarez’s drug trafficking organization operated primarily out of the Tri-Cities area, which includes Kennewick, Pasco, and Richland, Washington.

According to information disclosed during court proceedings, DEA Tri-Cities and the Tri-City METRO Drug Task Force identified a transnational drug trafficking organization operating in and around the Tri-Cities. DEA agents identified Zavala-Alvarez during an investigation into two of his codefendants – Daniel Hernandez and Jessie Mendoza. During the investigation, Zavala-Alvarez delivered two pounds of methamphetamine as part of a controlled buy. This led agents to Zavala-Alvarez’s residence in Kennewick, Washington. Upon the execution of a federal search warrant at Zavala-Alvarez’s residence in April 2020, agents seized a large stash of narcotics, which included over 19,000 fentanyl-laced pills. Hernandez and Mendoza were later arrested and found to be in possession of more than 20,000 fentanyl-laced pills, approximately 5 pounds of methamphetamine, and several ounces of heroin. Hernandez and Mendoza were also in possession of multiple firearms.

At the sentencing proceedings in the case, Chief Judge Bastian noted Zavala-Alvarez’s substantial role in the organization, including that he was entrusted to safe keep a large cache of drugs, while armed with a loaded firearm. Chief Judge Bastian also acknowledged that this was Zavala-Alvarez’s first felony offense, but because of the seriousness of the case, imposed a sentence of 135 months in federal custody.

U.S. Attorney Vanessa R. Waldref commended the law enforcement team who investigated the case, leading to the prosecution of Zavala-Alvarez and his co-defendants. She stated, “Fentanyl is a poison being pumped into our communities at an unprecedented rate with devastating effects. Even trace amounts in a fentanyl-laced pill can kill a person. I am grateful to for the state, federal, and local law enforcement officers who work together on a daily basis to identify the large-scale suppliers of this dangerous drug. Through these joint efforts to curb the distribution of fentanyl, we are building safer and stronger communities in Eastern Washington.”

“The Zavala-Alvarez’s drug trafficking organization was flooding our city streets with their methamphetamine and poisonous fentanyl-laced counterfeit pills, marketed as legitimate prescription pills to unsuspecting victims of the Tri-Cities community,” said Frank A. Tarentino III, Special Agent-in-Charge DEA Seattle Field Division. “Our neighborhoods are under siege from the criminal drug networks who use guns and violence to push these fake pills to the most vulnerable people in our communities. The drug and gun evidence seized in this investigation are examples of the link between violence and drug trafficking, which is responsible for causing the most harm in the United States. With the assistance of our law enforcement partners and the community, we will continue to drive down the overdoses and violence that are negatively impacting the people of Tri-Cities and their quality of life.”

This case was prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes.

This case was investigated by the DEA Tri-Cities Office, Border Patrol, the Tri-City METRO Drug Task Force, Kennewick Police Department, Richland Police Department, and Pasco Police Department. This case was prosecuted by Stephanie Van Marter, Assistant United States Attorney for the Eastern District of Washington.

Yakima, Washington – Chief U.S. District Judge Stanley Bastian has sentenced David Reyes, 30, of Kennewick, Washington, to 120 months in federal prison for possession with intent to distribute methamphetamine, fentanyl, and heroin. As part of the sentence, Chief Judge Bastian also imposed a period of five-years’ federal supervised release. Reyes’s drug trafficking activities occurred primarily in the Tri-Cities area (Kennewick, Pasco, and Richland, Washington).

According to information disclosed during court proceedings, Reyes was arrested on drug trafficking charges in March 2021. At that time, the Washington Department of Corrections (“DOC”) was supervising Reyes for multiple convictions in Washington state court. During a March 11, 2021 search of Reyes’s home, DOC officers seized approximately 350 grams of methamphetamine, a number of fentanyl-laced pills, and 280 grams of heroin inside a sweatshirt, which was in Reyes’s bedroom. DOC also recovered a digital scale and several thousands of dollars in U.S. Currency. Reyes is a known member of the Sureno Gang. He goes by the moniker, “Lil’ Monster.”

“The seamless partnership of the Federal Bureau of Investigation, the Pasco Police Department, and Washington Department of Corrections lead directly to the apprehension of this Sureno Gang Member, who was distributing deadly narcotics while on state supervision,” U.S. Attorney Waldref stated. “These types of federal, state, and local partnerships, coupled with community engagement, are necessary to rid our communities of this dangerous poison, thereby making our communities safer and stronger.” U.S. Attorney Waldref continued, “Today’s sentence will remove Mr. Reyes from our community for 10 years, sending a powerful signal that our office continues to vigorously prosecute those who distribute deadly narcotics in Eastern Washington.”

“The fact that Mr. Reyes previously served time in prison was no deterrent to reoffending.” said Special Agent in Charge Donald M. Voiret of the FBI’s Seattle Field Office. “This sentence will keep him from distributing drugs into our communities for the next decade. I want to thank our investigators and partners on the Southeast Washington Safe Streets Task Force for their work on this case.”

This case was prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Federal Bureau of Investigation’s

Safe Streets Task Force in Tri-Cities Washington, Pasco Police Department, and Washington Department of Corrections.

This case was prosecuted by Caitlin A. Baunsgard, Assistant United States Attorney for the Eastern District of Washington.

Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Mohammed Naji Al-Jibory, age 54, of Kennewick, Washington pleaded guilty to conspiracy to obstruct an official proceeding, which carries a maximum sentence of 20 years in prison, a fine of $250,000, and a three-year term of court supervision. United States District Judge Mary K. Dimke will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Al-Jibory is scheduled to be sentenced on July 21, 2022, at 3:00 p.m. in Richland, Washington.

According to court documents, in February 2019, the Federal Bureau of Investigation (“FBI”) opened an official investigation into allegations that several individuals were involved in a scheme to defraud insurance companies and obtain money and property by staging automobile accidents, and filing false and fraudulent claims with insurance companies, in violation of federal criminal laws. The FBI investigation expanded to an investigation by a federal grand jury empaneled in the Eastern District of Washington. In May 2020, the FBI executed warrants to search several residences in Washington and California for evidence of federal crimes. In September 2020, when interviewed by the FBI, Al-Jibory falsely accused an FBI agent, and another individual he suspected of being an FBI informant, of soliciting approximately a $20,000 bribe from a third person to make the case go away. In doing so, Al-Jibory engaged in misleading conduct toward the FBI agents with the intention of hindering, delaying, and preventing communication to these officers and a judge of the United States, of information relating to the commission and possible commission of federal offenses. He also attempted to corruptly obstruct, influence, and impede, and attempt to obstruct, influence, and impede an official proceeding, that is, a federal grand jury proceeding and a criminal proceeding before a judge and court of the United States.

Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, noted that efforts to hinder federal criminal proceedings will not be tolerated: “To ensure a safe and strong community in Eastern Washington, we will continue to vigorously prosecute those who attempt to obstruct official proceedings before a judge and court of the United States. I greatly appreciate the hard work and collaboration of talented agents and agencies that are contributing to our collective efforts to protect our communities from fraud and pursue justice.”

This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General, with the assistance of the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III and Dominique Juliet Park, Assistant United States Attorneys for the Eastern District of Washington.

Spokane, Washington – United States Attorney Vanessa R. Waldref recognized and congratulated Criminal Chief and Assistant United States Attorney (AUSA) Alison L. Gregoire, who was honored at YWCA’s Annual Women of Achievement Awards Ceremony Luncheon on March 24, 2022.

In honoring AUSA Gregoire, YWCA Spokane emphasized, “Alison Gregoire is the first woman to serve as criminal chief for the Eastern District of Washington United States Attorney’s Office. Alison was selected for this role because of her exemplary track record of serving at-risk populations, especially victims of crime in Indian Country. Alison has handled extremely difficult cases and worked closely with victims of crime – including Native American women and women from diverse backgrounds – to empower women to tell their stories and seek justice against the individuals who perpetrated violence against them.”

YWCA Spokane added that AUSA Gregoire’s record for government service began years prior to joining the United States Attorney’s Office. “Alison is also a Major in the United States Army Reserves, where she has served since leaving active duty in 2011. In her role as a leader in the U.S. Army, Alison has served as a senior defense counsel and supervised trial defense for soldiers pending separation from the armed forces. She has also served as a professor of criminal law where she has trained judge advocates in trial advocacy techniques. Alison’s superb trial skills and close connections with victims makes her an incredible advocate within the U.S. Army and within the U.S. Attorney’s Office where she works for justice and equal treatment of all individuals under the law.”

U.S. Attorney Waldref echoed YWCA’s remarks. “For many years, AUSA Gregoire worked tirelessly as the Indian Country Coordinator and Project Safe Childhood Coordinator for the Eastern District of Washington. She is a true leader and plays a critical role in our mission of building stronger and safer communities for everyone.” U.S. Attorney Waldref continued, “AUSA Gregoire is a woman of incredible integrity and honor, driven by a mission-first attitude to serve her country and support her colleagues to do their best work and pursue justice.”

U.S. Attorney Waldref also recognized AUSA Gregoire for her induction into the prestigious American College of Trial Lawyers earlier this year. “AUSA Gregoire is one of a handful of attorneys from the Spokane area to receive this honor. I am grateful that AUSA Gregoire’s tremendous efforts on behalf of victims of violent crime are being recognized both by the American College of Trial Lawyers and the YWCA. I am honored to have Alison Gregoire serve as the Criminal Chief for the Eastern District of Washington.”

Each year, YWCA recognizes women in the Spokane Community who “embody YWCA Spokane’s mission of eliminating racism, empowering women, and promoting peace, justice, freedom, and dignity for all.” Eight women were honored at YWCA’s award luncheon on March 24, 2022. YWCA Spokane emphasized that the selected honorees, including AUSA Gregoire, “give generously of themselves to make Spokane a better place for all.”

Additional information regarding the 2022 YWCA Women of Achievement Award Honorees is available at https://ywcaspokane.org/woa2022honorees/.

Richland, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that HPM Corporation (HPMC) and its owners have agreed to pay $2,939,400 in restitution and penalties and to undertake additional responsibilities to resolve HPMC’s criminal and civil liability in connection with a fraudulent Paycheck Protection Program (PPP) loan. The announced settlement also resolves the individual False Claims Act liability of HPMC’s owners and executives Holly and Grover Cleveland Mooers, who agreed to pay an additional $250,000 penalty from their own funds as part of the settlement.

HPMC is a Department of Energy (DOE) contractor that provides occupational health services for DOE and contractor employees at DOE’s Hanford Site. In April 2020, HPMC applied for and received a $1,344,700 PPP loan. Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, in order to provide funding to small businesses in order to mitigate the economic impacts of the COVID-19 pandemic for small and local businesses. PPP loans were fully guaranteed by the United States, and the U.S. Small Business Administration (SBA) may grant a small business borrower forgiveness so long as the loan proceeds have been used for payroll and other eligible expenses.

As part of the global criminal and civil settlement, HPMC and the Mooers admitted that they knowingly provided materially false statements to the SBA in support of HPMC’s application for forgiveness of the PPP by falsely stating that the PPP loan proceeds had been used for payroll and other eligible expenses when they had not been. HPMC and the Mooers further admitted that, through the materially false representations, they induced SBA to grant forgiveness for the loan. Finally, HPMC and the Mooers admitted that after causing the SBA to grant forgiveness for the loan based on these materially false statements, the Mooers transferred the entire loan amount from an HPMC business account to the Mooers’ personal account.

As part of the global resolution, HPMC has agreed to pay $2,689,400 in restitution and penalties, as well as a 3-year probationary period following the filing and during the deferral of federal criminal charges in which it may not commit any further criminal or civil offenses, and must immediately report any credible evidence of any such violations to the United States. Additionally, the Mooers have agreed to pay an additional $250,000 civil penalty, which must come from their personal funds and may not come from HPMC funds. Grover Cleveland Mooers has also agreed to step down as a Governor of HPMC, and not serve as a principal employee, manager, or advisor for HPMC during the three-year deferral period. HPMC has also agreed to, at its own expense, retain an independent accounting or auditing firm to perform an independent audit of HPMC’s accounting practices as they relate to expenses, distributions, dividends, salaries, and expenses to the Mooers or any other HPMC officers, owners, or shareholders.

U.S. Attorney Waldref stated: “COVID relief funding is a precious and limited resource. These funds were intended to help small and local businesses and keep the communities of Eastern Washington safe and strong, not to line the pockets of millionaire owners. I want to especially commend the exceptional investigative work performed by DOE’s Office of Inspector General and SBA’s Office of Inspector General. Our office will continue to work with our law enforcement partners to vigorously pursue fraud against COVID relief funding and hold accountable individuals and companies that misuse that funding.”

“Lying to gain access to SBA’s pandemic response programs is not without consequence,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our office will aggressively pursue evidence of wrongdoing and bring those responsible to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

“Stealing money from pandemic relief funds is reprehensible,” said Teri L. Donaldson, Inspector General, Department of Energy. “Anyone engaging in COVID fraud should think twice. The federal law enforcement community actively investigates and prosecutes pandemic relief fraud, and will not hesitate to seek significant criminal and civil penalties.”

This case was investigated as part of the U.S. Attorney’s Office COVID-19 Fraud Strike Force, an interagency team of federal law enforcement agencies dedicated to combatting COVID relief fraud in Eastern Washington. The HPMC case was investigated by the U.S. Attorney’s Office for the Eastern District of Washington, DOE OIG’s Richland Field Office, and SBA OIG’s Seattle Field Office. Special Assistant United States Attorney Frieda K. Zimmerman and Assistant U.S. Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States.

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Spokane, Washington – Chief U.S. District Judge Stanley Bastian has sentenced Julio Leal Parra, 47, of Benton City, Washington, to 191 months in federal prison for leading and organizing a drug trafficking conspiracy with ties to the Sinaloa cartel. Chief Judge Bastian also ordered Parra to pay a $50,000 money judgement in lieu of forfeiture of assets and to serve five years on federal supervision if he is allowed to remain in the United States. Parra’s drug trafficking organization operated out of the Tri-Cities, Washington, area.

According to information disclosed during court proceedings, the FBI Safe Streets Task Force identified a transnational drug trafficking organization operating in and around the Tri-Cities (Kennewick, Pasco, and Richland, Washington). Task Force Officers identified Parra as the head of a cell who worked directly with leaders of the Sinaloa cartel in Mexico. Parra facilitated and organized large drug shipments of methamphetamine, cocaine, and heroin into the communities that make up the Eastern District of Washington. While running his drug operation, Parra operated “Perfect Design,” an upholstery business, and “SuKarne,” a meat market, in Kennewick. Law enforcement officers identified each of these businesses as locations in which Parra and his coconspirators stored drug shipments and laundered large amounts of cash. Working closely with local law enforcement, the FBI was able to identify several members of Parra’s organization, who worked as drug transporters and distributors reaching from Arizona and California all the way to Kennewick, Spokane, Idaho, and Montana. To date, ten members of the conspiracy have been convicted.

Over the course of the investigation, law enforcement officers seized more than 60 pounds of methamphetamine, cocaine, and heroin, including a single shipment of 33 pounds of methamphetamine. Parra admitted to being directly responsible for bringing 20 to 50 pound shipments of drugs into the Tri-Cities every few weeks from December 2016 through October 2019. Even using conservative estimates, it appears that Parra was directly responsible for bringing more than a thousand pounds of drugs into Eastern Washington.

At the sentencing proceedings in the case, Chief Judge Bastian noted Parra’s leadership role in his organization and the stunning amount of narcotics and drug proceeds involved. He acknowledged that this was Parra’s first felony offense, but given the seriousness of the case, imposed a sentence of 191 months in federal custody.

U.S. Attorney Vanessa R. Waldref commended the seamless collaboration between the FBI, the Safe Streets Task Force, and local and state law enforcement in the investigation, apprehension, and prosecution of a high-level drug distributor and stated: “To ensure a safe and strong Eastern Washington community, investigations like this one require the combined efforts of federal, state, and local agencies. I am incredibly grateful to all of the dedicated law enforcement officers, support staff, and their families, who prioritized the investigation, apprehension, and prosecution of Mr. Parra and his criminal coconspirators.” U.S. Attorney Waldref continued: “For years, Mr. Parra peddled life ravaging narcotics throughout our region with no regard for the communities, families, and individuals he was destroying. The lengthy sentence imposed reflects the need to hold drug traffickers accountable for the serious harm they cause our communities and the need to deter like-minded individuals from engaging in similar crimes.”

“Over several years, this high-level drug dealer was responsible for huge quantities of drugs being transported frequently through Eastern Washington and multiple other states,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “I want to thank all the partners involved in the FBI Southeast Washington Safe Streets Task Force for their commitment to this case. This sentence will remove Mr. Parra from our community for more than 15 years.”

This case was prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives.

This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force in Tri-Cities Washington, Kennewick Police Department, Richland Police Department, Pasco Police Department, Benton County Sheriff’s Office, and Washington Department of Corrections. This case was prosecuted by Stephanie Van Marter, Assistant United States Attorney for the Eastern District of Washington.

Spokane, Washington – Vanessa R. Waldref, the U.S. Attorney for the Eastern District of Washington, announced today the creation of a new, interagency COVID-19 Fraud Strike Force to combat fraud arising from the COVID-19 pandemic. U.S. Attorney Waldref also announced the first criminal charges filed in connection with work done by the COVID-19 Fraud Strike Force.

On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.

In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, and others.

“We created the COVID-19 Fraud Strike Force because it is critical to the strength and safety of our community in Eastern Washington that we all work together to combat pandemic-related fraud,” said U.S. Attorney Waldref. “COVID-19 relief programs, which were essential to lifting our economy and supporting our families, quickly ran out of money due to the number of people and businesses that requested funding. It is not fair that some deserving small businesses could not obtain funding to keep their businesses in operation during the COVID-19 pandemic, when others abused the programs. The Strike Force is one way to ensure that limited resources are provided to deserving local businesses that provide vital services for our communities. I greatly appreciate the hard work and esprit de corps of so many talented agents and agencies that are contributing to our collective efforts.”

U.S. Attorney Waldref also announced the first filing of federal charges in connection with the work of the COVID-19 Fraud Strike Force. On March 16, 2022, a federal grand jury returned an Indictment charging Roshon Edward Thomas, age 52, of Spokane, Washington, with two counts of fraud. The Indictment alleges that Thomas fraudulently applied for and received a $32,400 federal loan through the SBA’s EIDL program in the name of a fictitious business. Each count carries a maximum sentence of 20 years in federal prison.

“I commend the stellar investigative work on this case performed by SBA OIG, FBI, and TIGTA,” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding.”

Spokane, Washington – U.S. Attorney Vanessa R. Waldref announced today her office’s increased resource dedication to civil rights, including its participation in a first of its kind, anti-hate crime outreach program entitled United Against Hate, which seeks to directly connect federal, state, and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents.

“I am honored that our office has been chosen to take the lead nationally in the fight against hate crimes with the United Against Hate outreach initiative,” said U.S. Attorney Waldref. “Combatting hate and hate-driven offenses is vital to our mission of building stronger and safer communities for everyone,” added U.S. Attorney Waldref.

In November, the U.S. Attorney’s Office for the Eastern District of Washington was chosen as one of three districts, out of 94 districts in the nation, to advance the United Against Hate outreach initiative. United Against Hate is a panel presentation involving subject matter experts from the U.S. Attorney’s Office, the FBI, and local law enforcement partners, who engage in direct discussions with members of marginalized communities and those most vulnerable to hate crimes and hate incidents. Hate crimes are commonly defined as crimes committed because of the perpetrator’s perception of the victim’s race, color, religion, national origin, physical or mental disability, family status, sex, gender, sexual orientation, or gender identity. Hate crimes can be prosecuted under Washington state law and can often also be prosecuted under federal laws such as the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. By making direct contact with the communities most vulnerable to hate crimes and hate incidents, law enforcement can provide visibility into reporting systems and highlight the importance of reporting hate crimes and hate incidents. Additionally, the United Against Hate outreach initiative provides an opportunity for communities to share their concerns with law enforcement, in order to decrease barriers that prevent hate crimes and hate incidents from being reported. The outreach also provides opportunities to increase communication and collaboration between the communities that are most frequently targeted for hate crimes and incidents and the law enforcement professionals responsible for investigating and preventing them.

The data collected on hate crimes and hate incidents underscores the importance of this outreach initiative. Based on the Department of Justice’s National Crime Victimization Survey, between 2010 and 2019 over 55% of hate crimes nationwide were not reported to law enforcement. Applying that non-reporting rate to available FBI Crime Data indicates that in Spokane County alone there is reason to believe that as many as 25 hate crimes went unreported to law enforcement in 2019 and 2020.

“While hate cannot be defeated by law enforcement alone, law enforcement has a vital role to play in protecting the public and marginalized groups from hate-motivated offenses and in communicating our shared values and fostering hope that our communities can be safer, stronger, and more inclusive,” said U.S. Attorney Waldref. “Hate crimes and hate incidents, including hate speech, do not reflect the values of Eastern Washington and have no place in our communities, our law enforcement, or our criminal justice system. In the coming weeks and months, through United Against Hate and our other outreach efforts, we hope to engage in direct dialogue with marginalized community members and invite them to meet personally with some of the law enforcement professionals, at all levels, who are dedicated to combatting hate in Eastern Washington.”

The United States Attorney’s Office also announced increased civil rights enforcement resources and efforts. “Of course it is not enough to engage in outreach alone,” stated U.S. Attorney Waldref. “We are increasing our focus on civil rights, including hate crimes, hate incidents, and illegal discrimination, by committing additional Assistant U.S. Attorney and staff resources. We are deploying these increased resources in the area of civil rights - such as vigorously enforcing the Americans with Disabilities Act (ADA), the Fair Housing Act, as well as veterans and active service members rights, to name just a few,” said U.S. Attorney Waldref.

Finally, the United States Attorney’s Office also announced its new civil rights web page found at https://www.justice.gov/usao-edwa/edwa-civil-rights-webpage , which contains many links to important resources and information for people who may have experienced or witnessed a civil rights violation, whether criminal or civil. The web page also provides the public with direct links to online civil rights complaint forms that can be submitted directly to the U.S. Attorney’s Office or the Department of Justice Civil Rights Division.

“We cannot bring the full force of the people’s power against hate crimes, hate incidents, and other civil rights violations without individuals being given opportunities to come forward. Our office now has a dedicated civil rights email account (USAWAE.CivilRights@usdoj.gov ) and phone number (509) 835-6306), for the public’s use. I want to thank the Gonzaga University Department of Modern Languages and Literature who donated their expertise to this effort and provided Spanish translation services to allow us to reach a wider audience and facilitate access to these accounts for Spanish speakers. These accounts are monitored frequently and will allow members of my civil rights team to quickly review and promptly respond to submissions and inquiries. We will utilize the information provided by the public regarding suspected civil rights violations in our overall efforts to track and analyze any larger trends that need to be addressed and to determine on a case-by-case basis whether we can investigate the matter, refer it to other appropriate entities, or otherwise assist,” said U.S. Attorney Waldref.

Spokane, Washington – On March 9, 2022, a federal jury convicted James Cloud, 37, of White Swan, Washington, on four counts of First Degree Murder. The jury also returned guilty verdicts against James Cloud for Carjacking, two counts of Brandishing a Firearm in Furtherance of a Crime of Violence, Kidnapping a Minor, Assault With a Dangerous Weapon, and three counts of Discharging a Firearm in Furtherance of a Crime of Violence. Sentencing is set for July 26, 2022, in Yakima, Washington, before United States District Judge Salvador Mendoza, Jr. James Cloud, who is an enrolled member of the Yakama Nation, faces a potential life sentence.

The jury heard and considered more than a week of testimony and evidence in Spokane before returning guilty verdicts on the day after closing arguments. The evidence showed that on June 8, 2019, James Cloud was involved in multiple murders, and that after committing the murders, he approached a residence, held a person at gunpoint, carjacked a vehicle, and fled from the crime scenes.

Another enrolled member of the Yakama Nation, Donovan Cloud, 35, of Lyle, Washington, was also charged in some of the underlying conduct. Donovan Cloud pleaded guilty on the same day the jury rendered its verdicts in James Cloud’s case. Donovan Cloud pleaded guilty to Carjacking and Brandishing a Firearm in Furtherance of a Crime of Violence. He faces a range of approximately 22-27 years in custody under the advisory federal Sentencing Guidelines, and his sentencing hearing is also set for July 26, 2022.

U.S. Attorney Vanessa R. Waldref commended the efforts of the investigators and prosecutors who worked for years to bring justice to the victims of Cloud’s crimes. “In a safe and strong Eastern Washington, there is accountability for even the worst acts of inhumanity. After years of tireless investigation, hard-fought litigation, and detailed preparation, justice has finally been served for the victims of James Cloud and Donovan Cloud. The people of the Yakama Nation can rest easier tonight knowing that James Cloud and Donovan Cloud will no longer roam their streets and endanger them. I am grateful for the dedication and perseverance of the FBI, the ATF, the Yakama Nation Tribal Police, the Yakima County Sheriff’s Office, and the Washington State Patrol, who collaborated with Assistant United States Attorneys Tom Hanlon and Rick Burson to see these cases through to just results.”

“No community should have to live in fear of the type of heinous acts perpetrated by James Cloud and Donovan Cloud,” said Donald Voiret, Special Agent in Charge of the FBI’s Seattle field office. “I want to express my gratitude to our investigators and the prosecutors on today’s guilty verdicts. Their work on behalf of victims and survivors shows that the FBI and our partners will not stand idly by while violence plagues our streets.”

This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Yakama Nation Tribal Police, the Yakima County Sheriff’s Office, and the Washington State Patrol. The case was prosecuted by Tom Hanlon and Rick Burson, Assistant United States Attorneys for the Eastern District of Washington.

Yakima, Washington – On March 2, Chief U.S. District Judge Stanley A. Bastian sentenced Douglas Craig Parsley, 34, of Yakima, Washington, to 22 years in federal prison for attempted production of child pornography. Chief Judge Bastian also ordered Parsley to serve an additional 20 years on federal supervision after he is released from prison. Parsley pleaded guilty on October 27, 2021.

According to court documents, Parsley attempted to produce child pornography by photographing a toddler he was babysitting while the child’s mother was at work. Parsley photographed his minor victim in nude and partially nude states.

The investigation began in 2019 when an Internet Crimes Against Children (“ICAC”) Task Force Officers in Contra Costa, California, arrested a person who was trying to meet up with another person to engage in sexual activity with a minor. Search warrants led to the discovery of communications with Parsley, and law enforcement agents obtained a federal search warrant for Parsley’s home in Yakima. During the execution of that warrant, officers seized a variety of Parsley’s electronic devices, which contained forensic evidence demonstrating that Parsley had taken images of a toddler he was babysitting the previous November. It also became clear that Parsley had used those images in online communications with others.

U.S. Attorney Vanessa R. Waldref commended the efforts of the Homeland Security Investigations agents and task force officers in this case: “It is a nightmare scenario for parents that a babysitter who is entrusted with the care of a small child would memorialize sexual images of that child and distribute them online. Mr. Parsley’s egregious conduct warrants every minute of the significant sentence imposed. The children of the Eastern District of Washington deserve to live in a safe and strong community just as their parents do. I am deeply grateful for the work of Homeland Security Investigations, our local and state partners, and the ICAC Task Force, which builds fortresses around our children all across the Nation. It is everyone’s job to protect children, and this case shows that we will work across state lines and follow every lead to do so.”

“Mr. Parsley made a decision to take advantage of a working mother while using the Internet to trade child exploitation images. His decision will keep him behind bars for the next 22 years,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This is an example of how our Task Force-based law enforcement partnerships are continuously working around the clock to keep Washington communities safe from child predators.”

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

This case was investigated by the Department of Homeland Security, with the Southeast Regional ICAC Task Force, and the Contra Costa County, California, District Attorney’s Office. The case was prosecuted by Michael Murphy, Assistant U.S. Attorney for the Eastern District of Washington.

Spokane, Washington – Dr. Ray Smith, a mental health counselor practicing in Spokane, and his company, “A Brief Counseling Center,” also known as “Healthy Counseling Center” (“ABCC”) have agreed to pay $138,984 to resolve allegations that he and his company fraudulently billed Washington State Medicaid. Dr. Smith is a licensed mental health counselor in the State of Washington and is the sole owner of ABCC. During the relevant time period, ABCC employed a number of mental health treatment providers, and billed Washington State Medicaid for their services. Washington State Medicaid – also known as Apple Health – is funded by federal and state taxpayers and provides health insurance for needy and low-income residents of Washington. Medicaid provides reimbursement for mental health treatment services provided by qualified and licensed providers who are enrolled and contracted with the state Health Care Authority, which administers the Medicaid program in Washington.

According to court documents, this settlement resolves allegations under the False Claims Act that Dr. Smith and ABCC improperly billed Medicaid for unlicensed and unqualified therapists who did not meet qualification requirements, were not contracted with the state, and were not eligible for reimbursement through Medicaid. The settlement also resolves allegations that Dr. Smith and ABCC fraudulently billed Medicaid for the services by falsely misrepresenting that the services had been provided by licensed and qualified therapists.

“Mental health services are a vital component of a safe and strong community, and our public funding for those services is a precious and limited resource,” said United States Attorney Vanessa R. Waldref. “Fraudulently billing the public for unqualified and unlicensed therapy services provided to some of the most vulnerable members of our community is simply unconscionable, and will not be tolerated.”

The case began in November 2019 when two whistleblowers who had previously provided billing services for ABCC filed a qui tam complaint under seal. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. In this case, the United States intervened in February 2022 and obtained the settlement. Pursuant to the settlement agreement, the relator will receive $25,712 of the settlement amount, which includes both state and federal components.

Washington Attorney General Bob Ferguson said “the COVID-19 pandemic has underscored the need for high-quality mental health services. To pose as qualified mental health professionals in order to claim Medicaid dollars is unethical, dangerous, and unlawful. I am proud of our collaboration with our federal partners, and the hard work it took to bring this company to justice. I look forward to continuing our work together to protect Medicaid dollars for those who need them.”

“Beneficiaries of federal health care programs deserve legitimate services furnished by certified practitioners,” said Special Agent in Charge Steven J. Ryan with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Medicaid patients should receive nothing but quality care at all times. HHS-OIG and partnering agencies resolutely pursue providers who deviate from this commitment.”

United States Attorney Waldref commended the whistleblowers for exposing this fraud: “It takes real courage to come forward, and I thank the whistleblowers for performing their civic duties. I am extremely proud of the top-notch investigative work performed by HHS-OIG, and of our close partnership with Washington’s Office of the Attorney General, Medicaid Fraud Control Division. Today’s result demonstrates that we will work hand-in-glove with our law enforcement partners to protect precious public funds from greed, and that we will continue to aggressively investigate and prosecute health care fraud in Eastern Washington.”

The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington, HHS-OIG’s Seattle Field Office, and the State of Washington, Office of the Attorney General, Medicaid Fraud Control Division. The Executive Office for U.S. Attorney’s Forensic Investigations Group provided invaluable financial analytic support. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States.

ABCC Final Settlement Agreement

Spokane, Washington – TriMark USA, LLC of Mansfield, Massachusetts, has agreed to pay $48.5 million to resolve allegations that its subsidiaries, TriMark Gill Marketing and TriMark Gill Group, Inc. (collectively, TriMark), improperly manipulated federal small business set-aside contracts around the country, announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, and Carla B. Freedman, the United States Attorney for the Northern District of New York.  A former TriMark executive in charge of the company’s government business, Kimberley Rimsza of Phoenix, Arizona, has agreed to pay an additional $100,000 as an individual civil penalty for her conduct in connection with the scheme.  The settlement constitutes the largest-ever False Claims Act recovery based on allegations of small business contracting fraud.

“This case demonstrates a shocking disregard for fair competition, small business rules, and integrity in government contracting,” said United States Attorney Waldref.  “We insisted that both TriMark and former company executive Kimberley Rimsza admit and accept responsibility for their conduct, which included improperly obtaining contracts that were meant for legitimate small businesses, and affirmatively concealing TriMark’s role in the sham contracts.  The fact that the money they were stealing was intended for service-disabled veterans is simply unconscionable.  Conduct of this kind is antithetical to a safe and strong Eastern Washington.”

Federal government contracts may be reserved, or “set aside,” for various categories of small businesses, such that only eligible small businesses in a particular socioeconomic category are eligible to bid on, receive, and perform the contracts.  One such category is a service-disabled, veteran-owned small business (SDVOSB), which is reserved for small businesses owned, controlled, and operated by veterans of the United States military who incurred a disability in the course of their military service to the United States.  

TriMark provides kitchen and food service equipment to government customers around the world, including in the Eastern District of Washington and the Northern District of New York.  As part of the Settlement Agreement, TriMark and Rimsza admitted to and accepted responsibility for their conduct in connection with set-aside contracts that, because of their 

actions, resulted in federal agencies improperly awarding government set-aside contracts between 2011 and 2021 to three small businesses with which TriMark worked, identified in the Settlement Agreement as “Company 1,” “Company 2,” and “Company 3” (the “small businesses”).   

TriMark and Rimsza admitted that their conduct caused federal agencies to award set-aside contracts to the small businesses in violation of federal regulations designed to encourage contract awards to legitimate small businesses and SDVOSBs.  TriMark and Rimsza further admitted that when set-aside contracts were awarded by federal agencies to the small businesses, it was typically TriMark Gill Marketing, rather than the small business, that performed substantially all the work, while the small business merely served as the face of the contract, billing the government for the work, and using its small business status to obtain the set-aside contracts. 

As part of the Settlement Agreement, TriMark admitted that TriMark Gill Marketing identified federal set-aside contract opportunities for the small businesses to bid on using their set-aside status; instructed them regarding how to prepare their bids and what prices to propose; and “ghostwrote” emails for those companies to send to government officials to make it appear as though the small businesses were performing work that TriMark Gill Marketing was performing.  TriMark and Rimsza further admitted that one of the small businesses expressed concern more than a decade ago that their business arrangement violated the law and would subject both companies to liability under the False Claims Act, after which a TriMark Gill Marketing employee responded that she had spoken with Rimsza about the concerns, and told the individual to “calm down and enjoy your weekend.” 

With regard to one of the small businesses, TriMark admitted that TriMark certain Gill Marketing employees had access to and used that company’s email accounts in order to conduct business with the government on behalf of the small business; that TriMark Gill Marketing assisted it in obtaining federal contracts to supply goods that, in reality, TriMark Gill Marketing was providing; that at least one TriMark Gill Marketing employee posed as a representative of the small business when communicating with the government; that TriMark Gill Marketing allowed the small business to use its office space and equipment; and that TriMark considered the small business “an extension” and “affiliate” of TriMark. 

TriMark, which has fully cooperated in the United States’ investigation, also represented in the Settlement Agreement that it has taken “comprehensive measures and implemented enhanced controls” to prevent the recurrence of similar conduct, including personnel changes, and implementing revised compliance procedures and training programs. 

United States Attorney Waldref condemned TriMark’s decision to enrich itself by fraudulently obtaining tens of millions of dollars in contracts: “While TriMark’s conduct is appalling, I must nevertheless commend TriMark’s ultimate decision to step up, accept responsibility for its conduct, and cooperate in the United States’ investigation and prosecution of this matter.  I am particularly grateful for the exceptional work performed by the investigative team, and for the close partnership between our office, the Northern District of New York, and the whistleblowers and their legal team.  This result demonstrates what we can accomplish when we all work together.  We will continue to work closely with our law enforcement partners and with courageous whistleblowers to hold accountable those who take advantage of public trust and misuse small business subcontracting programs, and to foster safe and strong communities with robust small business growth and competition.”

“TriMark and one of its former top executives are paying a steep price for obtaining contracts intended for service-disabled veterans,” said United States Attorney Freedman. “This settlement demonstrates the federal government’s commitment to ensuring the integrity of its business partners, and the serious consequences for depriving legitimate small businesses of the opportunities that the government has allocated to them.”

“The Department of Veterans Affairs Office of Inspector General is committed to identifying and stopping those individuals who misappropriate an opportunity meant solely for our nation’s veterans with disabilities,” said Inspector General Michael J. Missal.  “I want to recognize Special Agent in Charge Christopher Algieri of our Northeast Field Office and Special Agent in Charge Jason Root of our Northwestern Field Office for their leadership on this investigation.  We appreciate the exhaustive efforts of our law enforcement partners and both U.S. Attorney’s Offices in this collaborative effort.”

“Investigating corrupt schemes that undermine the integrity of Department of Defense (DoD) procurement is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with the Department of Justice and our law enforcement partners to ensure that the contracting process for legitimate small businesses remains fair and competitive.”

“We will continue working with our law enforcement partners to root out small business contracting fraud,” said General Services Administration Inspector General Carol Ochoa. “I appreciate the hard work of the team on this case.”

“When contractors abuse set-aside program and divert opportunities to themselves, they are undermining the acquisition process and taking business away from legitimate companies. The Air Force Office of Special Investigations, our joint investigative partners, and DOJ work vigorously to protect the Department of Defense’s procurement process and ensure wrongdoers are held accountable,” said Special Agent Paul W. Wachsmuth, Air Force Office of Special Investigations Procurement Fraud Director.

“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of federal agencies to uncover and forcefully respond to procurement fraud that unconscionably deprives legitimate small businesses of important procurement opportunities,” said the Small Business Administration’s General Counsel, Peggy Delinois Hamilton.  “The federal government is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those participating in SBA’s procurement programs.  We commend the hard work of all those in law enforcement who successfully prosecuted this case.”

According to court documents, the case began in May 2019, when a whistleblower, a company known as Fox Unlimited Enterprises, LLP, filed a qui tam complaint under seal in the U.S. District Court for the Northern District of New York.  When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States.  The relator is generally able to then share in any recovery.  In this case, according to court documents, the United States intervened in the action in December 2021, and reached this settlement following the United States’ intervention.  Pursuant to the settlement agreement, the relator will receive $10,912,500 of the settlement amount paid by TriMark. 

The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the U.S. Attorney’s Office for the Northern District of New York; the U.S. Department of Veterans Affairs Office of Inspector General, Spokane and Buffalo Resident Agencies; the Defense Criminal Investigative Service, Syracuse Post of Duty; the General Services Administration Office of Inspector General, New York Field Investigations Office; the Department of Homeland Security Office of Inspector General, New York Field Office; the Air Force Office of Special Investigations, Procurement Fraud Detachment 6, Rome, New York; the U.S. Army Criminal Investigative Division, Syracuse Fraud Branch Office; and the Small Business Administration, Office of Inspector General, Seattle Field Office.  Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington and Adam J. Katz of the Northern District of New York handled this matter on behalf of the United States. 

Trimark-Rimsza Settlement Agreement Fully Executed

WASHINGTON – A former Chelan Falls, Washington, man was extradited from Mexico to serve a 30-month prison sentence he received in absentia almost five years ago for filing a fraudulent tax return.

According to documents filed with the court, from 2009 through 2012, Jose L. Echeverria owned and operated a produce sales business. Echeverria filed fraudulent individual income tax returns with the IRS for these years, underreporting the income he received from his business by a total of $564,292. During this timeframe, Echeverria wired hundreds of thousands of dollars in unreported income to an account in Mexico that he used to purchase land, vacation homes, and vehicles for his personal use.

Following Echeverria’s guilty plea to filing a false tax return in February 2017, the district court granted him permission to travel to Mexico for two months while he awaited sentencing. Echevarria, however, did not return to the United States for the sentencing hearing. On September 25, 2017, U.S. District Judge Lonny R. Suko sentenced Echeverria in absentia to 30 months in prison, one year of supervised release, and $183,191 in restitution to the IRS.

Court records show that Echeverria resided in Mexico as a fugitive for nearly five years until he was arrested by Mexican authorities pursuant to an extradition warrant. On February 10, 2022, Mexico surrendered Echeverria to the custody of the U.S. Marshals Service pursuant to the extradition treaty between the United States and Mexico. Echeverria has been detained without bond pending the execution of his sentence.

The United States is grateful to the Government of Mexico for its cooperation and support of the extradition request in this matter. Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced the most recent developments in this case.

Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, noted that even the delays caused by Mr. Echeverria were not enough to prevent justice from being served: “The only way to ensure a safe and strong community in Eastern Washington is for everyone in society to pay their fair share. Mr. Echeverria defrauded the government and his fellow citizens out of nearly $200,000 in taxes, spent that money on land in Mexico, vacation homes, and personal vehicles, and fled from justice for almost five years. It is sometimes said that justice delayed is justice denied, but this case illustrates a different adage – that the only absolutes in life are death and taxes. Mr. Echeverria learned today that he could run, but he could not hide: he fought the law, and the law won.”

IRS-Criminal Investigation conducted the investigation. The Justice Department’s Office of International Affairs, the U.S. Marshals Service and the U.S. Attorney’s Office for the Eastern District of Washington provided significant assistance.

Trial attorney Michael Landman and former trial attorneys Lisa L. Bellamy and Gregory Bernstein of the Tax Division, and Assistant U.S. Attorney Michael Ellis, prosecuted the case.

Richland, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that a federal Grand Jury has returned a seven-count indictment charging Defendant Kenneth Rankin Gazzaway II, 47, of Newport, Washington, with making False Statements Connected to the Purchase of Firearms, making False Statements to a Federal Firearms Licensee, and Possessing a Firearm with an Obliterated Serial Number. Gazzaway is alleged to have illegally obtained firearms that were used in the shooting of an undercover officer on November 5, 2021.

According to court documents, on November 5, 2021, Defendant Randy Holmes is alleged to have attempted to rob an undercover ATF Special Agent at gunpoint. Holmes and the ATF agent were both wounded by gunfire during the incident. The FBI’s investigation revealed that the gun Holmes is alleged to have used to shoot the undercover ATF officer was a Glock Model 17 9mm pistol recovered at the scene.

An ATF Firearms Trace Report identifies Gazzaway as the purchaser of that particular Glock Model 17, and indicates that he purchased that firearm, along with several others, in August 2021. Another of the guns Gazzaway purchased is alleged to have been recovered in Kennewick, Washington, in connection with a different robbery in which shots were fired in November 2021. Gazzaway is alleged to have engaged in other multiple-firearm purchases as well. In fact, between June and August 2021, Gazzaway is alleged to have purchased at least eleven handguns in two bulk purchases. At least three of those eleven firearms are alleged to have been recovered in criminal investigations less than 100 days after Gazzaway purchased them. The basis of Gazzaway’s federal charges is that he knowingly failed to state that he was a user of methamphetamine when he purchased these firearms. Gazzaway is detained pending trial.

“Part of making Eastern Washington a safe and strong community is ensuring that guns are only in the hands of people who should have them. There is a reason that firearm purchase forms require potential buyers to state whether they abuse illegal narcotics,” said U.S. Attorney Vanessa R. Waldref. “The United States Attorney’s Office will vigorously pursue illegal firearm conduct wherever it occurs in Eastern Washington, and no matter how many links there may be in a chain of ownership.” If he is convicted on all charges, Gazzaway faces potential sentencing exposure of 45 years in federal custody.

“Mr. Gazzaway is alleged to have made false statements when purchasing firearms, including firearms that are alleged to have been used shortly thereafter in connection with the commission of crimes – including the shooting of one of our agents. This case demonstrates the dangers of illegal narcotic users purchasing and possessing firearms,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “We will vigorously investigate anyone who illegally purchases or possesses firearms, particularly when those firearms fall into the hands of those who commit other crimes.”

This case is being investigated by ATF, and prosecuted by Caitlin A. Baunsgard, Assistant United States Attorney for the Eastern District of Washington.

An indictment is merely an allegation and all Defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Spokane, Washington – Senior U.S. District Judge Rosanna Malouf Peterson has sentenced Timothy Richard Ray Riggins, 33, of Moses Lake, Washington, to 70 months in federal prison for unlawfully possessing a firearm and an improvised destructive device. Judge Peterson also ordered Riggins to serve three years on federal supervision after he is released from prison.

According to court records, in the early morning hours on November 3, 2019, the Moses Lake Police Department (“MLPD”) received a 911 call from a woman who reported that Riggins had just assaulted her, stolen her vehicle, and was in possession of a bomb. The woman explained that the bomb was in a fanny pack and that she was concerned for the safety of a friend. She also said that Riggins had threatened her with the bomb and had held a lighter next to the fuse, stating that she should not “mess with a guy like him.”

MLPD was familiar with Riggins, a documented Norteno criminal street gang member, and knew he had an active felony warrant for his arrest from the Washington State Department of Corrections. Officers located the woman’s vehicle and tracked Riggins to a nearby residence. While executing a search warrant at the residence, officers found Riggins hiding inside a top loading washing machine. Along Riggins’ path of travel from the stolen vehicle to the residence, officers recovered a fanny pack that contained a large, operable commercial firework with more than 20 nails taped to the outside, with a large fuse. The officers also found two additional improvised destructive devices near the fanny pack.

In imposing sentence, Judge Peterson noted the significant nature and seriousness of Riggins’ offense, highlighting the dangerous fact that if the devices had detonated, they could have seriously altered, or even destroyed, the victim’s life. Judge Peterson also considered Riggins’ longstanding gang membership and lengthy criminal history.

“Thanks to quick-thinking and responsive law enforcement, officers got to Mr. Riggins’ bombs before he could detonate them and harm innocent people,” said Vanessa R. Waldref, United States Attorney for the Eastern District of Washington. “This case demonstrates the importance of the ‘see something, say something’ principle: we all have an obligation to look out for one another and ensure that our community in Eastern Washington remains safe and strong. I am grateful not only to the hard-working people of the Moses Lake Police Department and ATF, but to the responding witness, whose 911 call prevented what could have been a truly tragic outcome. Mr. Riggins and others who seek to endanger people in this community may seek to run, but they cannot hide—even in washing machines.”

“The 70-month sentence for Mr. Riggins is clearly justified for his illegal possession of both a firearm and an improvised destructive device – as well as for his use of a destructive device in a threatening manner,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “The streets of Moses Lake and Grant County will surely be safer with Mr. Riggins in federal prison.”

This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.

This case was investigated by the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and the Moses Lake Police Department. This case was prosecuted by Caitlin Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.

Spokane, Washington – U.S. District Judge Salvador Mendoza, Jr., sentenced James H. Gallaher, 63, an enrolled member of the Confederated Tribes of the Colville Reservation, to 71 months in federal prison for Felon in Possession of a Firearm. Gallaher pleaded guilty to an indictment on October 12, 2021.

According to court documents, on June 28, 2021, a security officer at the Chief Joseph Dam saw Gallaher carry what appeared to be a pistol and AR style rifle from his camper to a white Honda sedan. The security officer, who knew Gallaher was not permitted to possess firearms, obtained surveillance video of Gallaher carrying the firearms and reported the offense to the Colville Tribal Police. The next morning, officers with the Colville Tribal Police traveled to Chief Joseph Dam, where they saw two firearms through the window of the white Honda. Gallaher’s camper was parked next to the Honda. Tribal Police approached the camper and arrested Gallaher without incident.

After Gallaher’s arrest, Tribal Police and ATF agents executed a search warrant for the Honda sedan and Gallaher’s camper. Officers recovered four firearms – two inside the Honda and two inside the camper, along with more than 100 rounds of ammunition. At the time, Gallaher had sustained four prior federal convictions, including Manslaughter, Abusive Sexual Contact, Theft of Government Property, and Felon in Possession of Ammunition.

In announcing the 71-month sentence, Judge Mendoza emphasized Gallaher’s violent history, which had “spanned four decades.” Judge Mendoza also rejected Gallaher’s explanation that he obtained the firearms for sentimental reasons, noting that Gallaher knew he was not permitted to have firearms because of his similar prior conviction for being a Felon in Possession of Ammunition. The 71-month sentence reflected an upward variance from Gallaher’s advisory sentencing guideline range of 33-41 months of incarceration.

United States Attorney Vanessa Waldref lauded the significant sentence and commended the joint efforts of law enforcement. She also emphasized the need to keep Eastern Washington safe and strong. “It is alarming that Mr. Gallaher, notwithstanding his lengthy criminal history, brazenly carried multiple firearms in such a public area. Because of the cooperative efforts of federal, Tribal, and local officers, an individual with prior convictions for homicide and sexual abuse – who was able to obtain multiple firearms after numerous felony convictions – is again off the streets.”

“As a multi-convicted federal felon, Mr. Gallaher’s actions were clearly in blatant disregard for both the law and the safety of the community,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “This sentence will hopefully send a clear message to Mr. Gallaher and anyone who attempts to possess firearms as a felon that we will do everything we can to stop this illegal conduct.”

Colville Tribal Police, ATF, and security personnel for Chief Joseph Dam investigated this case, which were prosecuted by Assistant United States Attorneys Richard Barker and Patrick J. Cashman.

Richland, Washington – Judith K. Caporiccio, N.D., a Richland-based naturopathic doctor, has agreed to pay $70,096 to resolve allegations under the Controlled Substances Act and the False Claims Act, which allege that she improperly prescribed controlled substances between July 2016 and July 2021. The Controlled Substances Act regulates certain drugs that pose a risk of abuse and dependence. To protect public safety and prevent misuse and diversion, the Act requires practitioners to register with the Drug Enforcement Administration (“DEA”) to prescribe these controlled substances.

During the relevant time period, Dr. Caporiccio was a naturopathic doctor licensed in the State of Washington and practicing in Richland, Washington. Under state and federal law, as a naturopathic doctor, Dr. Caporiccio was only authorized to prescribe two types of controlled substances: codeine and testosterone products. In the settlement agreement recently reached between the United States and Dr. Caporiccio, she admitted issuing at least 421 prescriptions for controlled substances that she was not authorized to prescribe. These controlled substances included the sleep aid zolpidem (often sold under the brand name Ambien); the anti-anxiety drug alprazolam (sometimes sold under the brand name Xanax); the benzodiazepine lorazepam; the stimulant modafinil (typically prescribed for narcolepsy and sleep apnea); and the sedative pregabalin (sold by Pfizer under the brand name Lyrica).

The settlement agreement also indicates that Dr. Caporiccio ceased her improper prescribing practices in 2021 after being contacted by the DEA, and that she voluntarily surrendered her DEA registration. Additionally, the settlement agreement requires Dr. Caporiccio to implement additional controls and procedures to ensure that this conduct does not recur.

“My office is committed to protecting our community from drug misuse and diversion. I am relieved that it appears no patient was seriously harmed by the medications improperly prescribed by Dr. Caporiccio, but when a healthcare practitioner prescribes controlled substances that she is not licensed or qualified to prescribe, the public is placed at serious risk of potentially dangerous side effects, drug interactions, and contraindications,” said Vanessa R. Waldref, United States Attorney for the Eastern District of Washington. “This resolution demonstrates our commitment to protecting public health, keeping our families safe, and building strong communities. In particular, I commend the excellent investigative work conducted by DEA’s Diversion Group and the Department of Health and Human Services Office of Inspector General. We will continue to work with our law enforcement partners to hold health care practitioners accountable to their patients and the public.”

“Doctor Caporiccio’s careless and irresponsible prescribing habits are a violation of federal law and in serious breach of her naturopathic license, presenting a clear and present danger to our nation’s health and security,” said Frank A. Tarentino III, Special Agent-in Charge of the DEA’s Seattle Field Division. “The DEA is working closely with our federal partners in a joint effort to increase community outreach and education, while simultaneously using our civil and administrative enforcement authorities to hold accountable pharmacies who fail to exercise their corresponding responsibility and prescribers who are writing prescriptions outside their scope of practice. Today’s settlement sends a strong message that we will seek justice and hold those accountable, like Dr. Caporiccio, who intentionally distribute highly addictive drugs to patients with reckless abandon and no concern for their safety.”

The settlement was the result of a joint investigation conducted by DEA’s Seattle Field Office, Diversion Group, the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office, and the U.S. Attorney’s Office for the Eastern District of Washington. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene handled this matter on behalf of the United States.