Western District of Washington

Seattle - The U.S. Department of Justice and Swedish Medical Center First Hill have settled allegations that the medical center violated the Americans with Disabilities Act (ADA) in its care and treatment of three different patients with vision and hearing impairments, announced U.S. Attorney Brian T. Moran.  Swedish will pay $50,000 to the government and $90,000 to the impacted individuals whose rights were violated.  Swedish Medical Center First Hill will make significant changes to its policies and procedures and to its training programs to ensure it meets the needs of all patients who have hearing or visual impairments.

“In this, the 30th year of the Americans with Disabilities Act, it is critical that all organizations—but especially health care providers—deliver services in a way that meets the needs of people with different impairments,” said U.S. Attorney Brian T. Moran.  “I am pleased to see that Swedish is adopting a detailed plan to improve its services and will report back to my office on its ongoing efforts.”

The ADA mandates that public accommodations, including healthcare providers, provide auxiliary aids and services free of charge to patients who need them in order to communicate effectively.  According to the settlement documents, on multiple occasions Swedish First Hill failed to provide qualified tactile or sign language interpreters to communicate with two patients who are deaf-blind and one who is deaf.  The medical center failed to provide patient D.A. who is deaf‑blind with a qualified tactile interpreter necessary to effective communication on several occasions in 2018, including pre-surgical consultation, surgery, and post-surgical care.  At times, D.A. was offered video remote interpreting (“VRI”), which relies on the ability to see a screen. In order to communicate at all, D.A.’s brother was put in the difficult position of serving as both a supportive companion and medical interpreter, a position for which he is not qualified.  Swedish is paying D.A. $50,000 and his brother $10,000 as part of the settlement.

A second patient who is deaf-blind, B.V., also did not get a qualified tactile interpreter necessary to effective communication during his March 2019 visit to the emergency room and during his discharge from the hospital.  B.V. was also offered VRI instead of a tactile interpreter. B.V. will receive $15,000 as part of the settlement.

Finally, the medical center failed to provide J.A. who is deaf with a qualified American Sign Language (“ASL”) interpreter necessary to effective communication during her post-surgical consultation/discharge meeting with her health care provider.  J.A. is also receiving $15,000 as part of the settlement.

Under the terms of the settlement, Swedish will train staff on new procedures for ensuring qualified interpreters are present for patients who need them.  The hospital will log the use of interpreters and provide that information to the U.S. Attorney’s Office every six months.  Further, the medical center will notify the U.S. Attorney’s Office of any complaints alleging that Swedish First Hill failed to provide auxiliary aids and services to patients or companions who are deaf, deaf-blind, or hard of hearing, or otherwise failed to provide effective communication with such patients or companions.

The investigation and settlement were handled by Assistant United States Attorney Christina Fogg. Ms. Fogg coordinates the Civil Rights Program for the U.S. Attorney’s Office.

Tacoma - A federal felon, arrested for violating his supervised release, faces new prison time following his guilty plea to drug and gun possession charges, announced U.S. Attorney Brian T. Moran.  JOSHUA LOBBEN, 32, pleaded guilty today in U.S. District Court in Tacoma to possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.  Both charges carry mandatory minimum terms of incarceration.  LOBBEN is scheduled to be sentenced by U.S. District Judge Benjamin H. Settle on February 15, 2021.

According to the plea agreement and other records filed in the case, on April 29, 2020, LOBBEN was contacted by law enforcement as he left a Puyallup motel.  An arrest warrant had been issued for LOBBEN for violations of his supervised release following a 2015 federal conviction for drug trafficking.  LOBBEN had a stolen firearm in his waistband, and bags containing more than 6 pounds of methamphetamine, 3,000 fentanyl pills and smaller amounts of heroin and steroids.  The bags also contained more than $64,000 in cash and a second loaded firearm.  In his plea agreement, LOBBEN admits the firearms were for the furtherance of his drug trafficking activity.

Due to the amount of drugs in the case, LOBBEN faces a mandatory minimum ten years in prison.  Possessing a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum consecutive five-year sentence.

The case was investigated by the Drug Enforcement Administration (DEA) Tacoma Resident Office, the Lewis County Joint Narcotics Enforcement Team (JNET), and the Grays Harbor Drug Task Force (GHDTF).

The case is being prosecuted by Assistant United States Attorney Jonas Lerman.

Seattle - A 29-year-old member of the Lummi Nation was sentenced today in U.S. District Court in Seattle to 4 years in prison for sexual abuse of a minor, announced U.S. Attorney Brian T. Moran.  GIDEON THOMAS BEWLEY was 23 years old and the victim was 12 years old when the sexual assaults first occurred.  At the sentencing hearing, U.S. District Judge Robert S. Lasnik said, “This is a very painful case.  The victim was so vulnerable … this was an aggressive act by a person almost twice the age of a 12-year-old girl.”

According to records filed in the case, in 2014 and 2015, BEWLEY assaulted the victim, who had just finished the 6th grade, at various locations on the Lummi Nation reservation.  BEWLEY told the victim if she told anyone he would harm her.  The victim first disclosed the abuse in 2014 to a school counselor who notified authorities, but the victim was too scared to discuss the assault with police.  In 2016, Child Protective Services was notified, and in a forensic interview arranged by a detective with the Lummi Police Department, the victim disclosed the sex abuse.

BEWLEY was arrested by Lummi Police in December 2018 and was indicted in January 2019.  BEWLEY pleaded guilty in August 2019.

At the sentencing hearing, a spokesperson for the Lummi Nation’s victim services told the Court that the victim has “dealt with a lot and is working on her healing.”

BEWLEY is required to register as a sex offender following prison.  He will be on five years of supervised release.

The case was investigated by the Lummi Police Department and the FBI.  The case was prosecuted by Assistant United States Attorney J. Tate London.  Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.

Seattle — United States Attorney Brian T. Moran announced today that the Western District of Washington has been allocated funding to hire an Assistant United States Attorney (AUSA), for a one-year term, who will focus on prosecuting cases involving fraudulent schemes to obtain unemployment insurance (UI) benefits and related offenses through the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020.

The CARES Act allocated $270 billion for supplemental federal UI benefits.  Additionally, President Trump directed that $44 billion in federal Disaster Relief Funds be used to provide supplemental UI benefits to eligible claimants.  The substantial increase in funding for UI benefits spurred a dramatic spike in UI fraud across the country, resulting in the theft of federal funds intended to help those struggling with unemployment during the current pandemic and economic crisis.  

“Federal law enforcement, and the attorneys in this office, acted quickly this spring to alert the state to significant fraud losses and got financial institutions to put a hold on suspicious payments,” said U.S. Attorney Moran.  “We continue the work of identifying and ultimately prosecuting those who defrauded the system.  These extra resources will keep that work moving as we untangle the complex layers of the fraud schemes.”

Last May, the U.S. Attorney’s Office noted that a diligent financial institution, with which agents were working, was able to prevent $120 million from being distributed to criminals.  Agents assisted in freezing and recovering millions of additional dollars, with assistance from scores of other banks and credit unions.  The Social Security Administration Office of the Inspector General, the Secret Service, the FBI, Internal Revenue Service Criminal Investigation, and the United States Postal Inspection Service, and the Department of Labor Office of the Inspector General have all been working to trace the fraud, build criminal cases, and attempt to reclaim the criminal proceeds.  The Washington Employment Security Department is cooperating in the investigation. 

The U.S. Department of Justice, in close coordination with the U.S. Department of Labor and other federal agencies, created the U.S. Department of Justice National Unemployment Insurance Fraud Task Force.  This task force is charged with investigating numerous CARES Act fraud schemes targeting the unemployment insurance programs of state workforce agencies and will work closely with United States Attorneys’ Offices to prosecute those individuals who have fraudulently diverted these funds from those struggling with unemployment. 

The Department encourages the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) to the National Center for Disaster Fraud (NCDF) hotline by phone at (1-866-720-5721) or via an online reporting form available at www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.

Seattle — A repeat identity thief, who tried to flee to Canada while out on bond, was sentenced today in U.S. District Court in Seattle to 52 months in prison announced U.S. Attorney Brian T. Moran.  MICHELLE RENEE HUGHES, 43, previously known as Jose Trinidad Gonzalez, pleaded guilty in April 2020 to two counts of mail fraud, four counts of false statements, and two counts of Aggravated Identity theft.  At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said, HUGHES had “demons she was wrestling with in life,” and warned her that she faces increasing prison time if she does not change her behavior.

“This defendant has pursued identity theft and fraud crimes for more than a decade,” said U.S. Attorney Brian Moran.  “These are not victimless crimes—real people have to sort out the damage done to their credit and financial life.  In this case victims’ sense of health and well-being and their ability to help others was derailed by this brazen fraud scheme.”

According to records filed in the case, HUGHES (who has a 2011 conviction for identity theft) used her skill with falsified documents to engage in a scheme where she submitted forged bills of sale and falsely changed aircraft registrations in a public Federal Aviation Administration database.  HUGHES made it appear she had purchased various aircraft and then offered those same aircraft for sale, attempting to get payments from unsuspecting buyers.  One of the ‘buyers’ who responded was an undercover agent for Homeland Security Investigations.  In June 2018, when HUGHES showed up and collected a $1,000 down payment, she was placed under arrest.

When agents searched HUGHES’ Federal Way, Washington, apartment, they found  a large collection of identity theft material including false passport cards and identity material for HUGHES as a certified counselor at a middle school, as a financial advisor for Morgan Stanley, a flight attendant, and a counterfeit “World Passport” book with HUGHES’ photograph but a different name.  They also found identity material related to a victim from HUGHES’ 2011 federal conviction for aggravated identity theft.  HUGHES has a criminal history of fraud crimes dating back to 2007.

In March 2020, HUGHES and a girlfriend attempted to flee to Canada, even as trial on these charges was scheduled for May 2020.  Canadian border officials at the Blaine Port of Entry refused the couple entry, and they were returned to the U.S.  A search of HUGHES’ apartment following that incident turned up more identity information that could be used for fraud.

In their sentencing memo, prosecutors noted that the true owners of the aircraft have incurred legal fees and stress trying to get clear title to their planes restored.  One pilot, who volunteers to fly medical patients to appointments, was unable to assist five different patients while waiting for the title situation to be resolved. 

HUGHES seems unconcerned about living a life of lies. “… Defendant is singularly committed to defrauding people.  For over a decade, Defendant has continually engaged in fraudulent schemes.  Whether it’s stealing an identity, forging court orders, passing bad checks, forging birth certificates, lying to a DSS agent about being undercover, or impersonating a police officer and lying to a deputy sheriff about her death to evade justice, Defendant lacks any compunction about dishonesty,” prosecutors wrote in their sentencing memo.

Chief Judge Martinez ordered HUGHES to complete three years of supervised release following prison and pay one of the victims just over $11,000 to compensate him for the legal fees incurred trying to clear title to his aircraft.

The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorneys Angelica Williams and Brian Werner.

Seattle –A 40-year-old Tacoma resident was sentenced today in U.S. District Court in Seattle to 27 months in prison for wire fraud, aggravated identity theft, and embezzlement of mail by a postal employee.  ILIGANOA THERESA LAUOFO illegally collected more than $276,000 over the course of a fraud scheme that began in 2011 and continued until 2018.  At the sentencing hearing, U.S. District Judge Richard A. Jones noted, “There are large families across this country who have no source of income and mouths to feed….  You had no right to go out and lie and cheat and steal your way.…  You told a persistent and protracted series of lies.”

“This defendant was unrelenting in her efforts to defraud the systems we rely on to help the neediest in our communities.  She persisted even after authorities made clear they were investigating her fraud scheme,” said U.S. Attorney Brian T. Moran.  “At a time when many are struggling to make ends meet because of COVID-19, we must safeguard federal resources for those who need assistance.”

According to records in the case, LAUOFO lied about her household composition and income, used stolen identities to claim additional benefits and open bank and credit accounts, and stole checks from the mail during a period when she was employed by the U.S. Postal Service.  Between April 2011 and December 2018, LAUOFO applied for welfare benefits, including food, childcare, and income assistance, by claiming her husband did not live with the family, and submitted falsified documents to bolster that claim.  Had her husband’s income been counted, she would not have qualified for all the assistance she received.  In addition to the benefits claimed in her own name, LAUOFO applied for and received additional benefits in stolen identities of friends and family members.  Across those various identities, LAUOFO also stole and misused the identity information of 13 minor children who lived in American Samoa and Western Samoa, claiming they resided with her (or her alternate identities) when they did not.  By claiming these children, she received additional food and childcare benefits.  In all, LAUOFO fraudulently received $222,294 in overpaid benefits.  

LAUOFO falsely claimed the children on her tax filings, resulting in over $35,000 in tax credits and refunds that she did not deserve.

The fraud did not end with stolen benefits.  LAUOFO used some of the identities she stole to open bank and credit accounts.  She opened one of those accounts in the name of her ex-husband three years after he died and deposited worthless checks in the bank account and quickly withdrew cash before the bank realized the fraud.  More than $10,000 in loss resulted from that conduct.

Finally, in March 2018, when LAUOFO was employed by the U.S. Postal Service as a letter carrier, she stole and deposited checks from the mail she was assigned to deliver.  She deposited the checks into an account in the name of one of the identities she had stolen in the benefits fraud scheme.  Later, in April 2018, LAUOFO discarded and destroyed more than 200 pieces of mail, later admitting she threw the mail in a dumpster so she could complete her route more quickly.

“By stealing this money, she compromised the integrity of these programs and, in her way, drew down the resources that will be available to those beneficiaries who play by the rules…. Fraud and theft like Defendant’s … have a corrosive effect on the public’s belief that programs like these, motivated by compassion and dependent on honesty, can work as intended.  And when people lie to social agencies about the basic circumstances of their lives, these agencies must use their limited resources to detect and investigate fraud instead of delivering benefits,” prosecutors wrote in their sentencing memo.

LAUOFO was ordered to serve three years of supervised release following prison and is obligated to pay $276,639 in restitution.

“Ms. Lauofo used stolen identities to fraudulently receive federally funded benefits for several years,” said Gail S. Ennis, Inspector General for the Social Security Administration. “My office will aggressively pursue those who misuse Social Security numbers by working with the U.S. Attorney’s Office and our joint law enforcement partners to pursue this type of fraud and hold those responsible accountable for their crimes.”

The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG), Washington State Department of Social and Health Services Office of Fraud and Accountability (DSHS/OFA), and the United States Postal Service Office of Inspector General (USPS-OIG).

The case was prosecuted by Assistant United States Attorney Benjamin Diggs.

Seattle - U.S. Attorneys Brian T. Moran and William D. Hyslop are pleased to announce the selection of David J. Rogers to serve as the program coordinator of the Missing and Murdered Indigenous Person program for the Department of Justice and the U.S. Attorney’s Offices in Washington State.  David Rogers has an extensive career in law enforcement as a Police Chief, consultant, trainer, lecturer, and educator.

“I am so pleased to have David fill this important role, moving our state forward in investigations of missing persons cases involving our tribal communities,” said U.S. Attorney Moran.  “As an enrolled member of the Nez Perce Tribe, with deep experience and contacts in Pacific Northwest tribal communities, he is ideally qualified to work with our tribal partners to increase safety and security in Indian Country.”

“The problem of missing persons and murders occurring within our tribal nations in Washington State and in other parts of the Country is real,” said U.S. Attorney Hyslop.  “David Rogers has broad experience in Tribal law enforcement.  He will be working exclusively on the issue of missing and murdered indigenous persons.  I expect him to have frequent contact with Tribal leaders, law enforcement officers, and victim/witnesses within Indian Country in the State of Washington as we all work together to address this problem.”

For the past four years, David Rogers has run his own consulting firm, Tribal Public Safety Innovations LLC, involved in the training of tribal police and probation officers across the country.  From 2013 to 2016, Chief Rogers served as Chief of Police for the Nez Perce Tribal Police in Lapwai, Idaho.  As Tribal Police Chief, he was responsible for a 24-person department covering a 1,200 square-mile-area of jurisdiction.  From 2003-2013, Chief Rogers was the Tribal Public Safety Manager at the Criminal Justice Center for Innovation at the National Criminal Justice Training Center in Wisconsin.  In that role he developed and implemented training for law enforcement officers in tribal police forces across the country and served as Director of the National Indian Youth Police Academy introducing Native American youth to careers in the Criminal Justice field. 

Prior to his position with the Criminal Justice Center for Innovation, Chief Rogers served as a program manager at the Western Community Policing Institute at Western Oregon University.  While there, he was a key trainer on U.S. Department of Justice Community Oriented Policing programs for more than 200 tribal communities across the country.  Early in his law enforcement career, Chief Rogers served on police forces in Clark County, Washington; Multnomah County, Oregon; Latah County, Idaho; and Columbia River Inter-Tribal Enforcement, Hood River, Oregon.  

U.S. Attorney William Barr announced the Murdered and Missing Indigenous Person Initiative in November 2019, and the Western and Eastern Districts of Washington joined forces to hire a coordinator who could lead the initiative in all 29 tribal communities in Washington.  As the MMIP coordinator, Chief Rogers will work closely with federal, tribal, state, and local agencies to develop common protocols and procedure for responding to reports of missing or murdered indigenous people.  Chief Rogers will work closely with the Tribal Liaisons in both the Western and Eastern Districts of Washington, as well as state and local partners, working on the issue of missing and murdered indigenous persons.

Seattle - A 57-year-old Snohomish, Washington, insurance agent was charged today in U.S. District Court in Seattle with five counts of wire fraud for her theft of approximately $750,000 in premium payments from various insurance clients, announced U.S. Attorney Brian T. Moran.  VICKI BOSER, who owned and operated InsuranceTek, Inc., appeared on an indictment in U.S. District Court in Seattle today.  BOSER is charged with pocketing premium payments from insurance clients and providing fake certificates of insurance to some of those companies.  BOSER entered a plea of ‘not guilty,’ and trial was set for January 19, 2021.

According to records filed in the case, between 2014 and 2016, BOSER defrauded various clients in high-risk insurance fields.  BOSER founded InsuranceTek, Inc., in 2003 and specialized in assisting small businesses that work in high-risk fields‑‑including private investigators, process servers, mortgage and field service companies, and security guard companies‑‑in securing insurance policies to cover their business operations.  BOSER would find companies willing to insure the high-risk companies, and if necessary, find a company to finance the premium payments.  BOSER was required by law to collect the premium payments from the clients and pay them over to the insurance companies.  Instead, she pocketed some of the payments, created false insurance certificates, and led the high-risk companies to believe they were insured.  In some instances, the insurance companies cancelled the insurance for lack of payment, but BOSER received the notice and hid it from the insured.  The insurance premiums were tens of thousands of dollars‑‑in one case more than $100,000.  BOSER used the money for her personal expenses, including spending a great deal of money at a casino resort.

BOSER had clients across the country‑‑many small family owned businesses that placed a great deal of trust in BOSER.  Court records detail the frauds regarding an Illinois-based property inspection business, and Ohio-, Tennessee-, and Texas-based businesses that maintain foreclosed homes.  Some of the clients only learned their insurance policies had been cancelled when they contacted the companies about renewing the policies.  The investigation was triggered when the Washington State Insurance Commissioner’s Office received complaints.

Wire fraud is punishable by up to twenty years in prison.

The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the FBI and the Criminal Investigative Division of the Washington State Office of the Insurance Commissioner.

The case is being prosecuted by Assistant United States Attorney Lyndsie Schmalz.

 

WASHINGTON – Today the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Washington announced a settlement agreement with Federal Way Public Schools in Washington to resolve an investigation into allegations of peer-on-peer harassment on the basis of religion and national origin.

The complaints made to the United States alleged that students had repeatedly been targeted by their peers with verbal and physical harassment because of their religion or national origin, and that the district did not respond adequately to the students’ complaints about the harassment. The department has authority to investigate and resolve complaints of religious and national origin harassment through its enforcement of Title IV of the Civil Rights Act of 1964. The settlement agreement also resolves complaints about the district’s failure to properly communicate with parents and guardians in the district who are not English language proficient, as required by the Equal Educational Opportunities Act of 1974. 

“School districts must never ignore harassment of students because of their faith or national origin,” said Assistant Attorney General of the Civil Rights Division Eric S. Dreiband. “Discrimination in schools based on religion or national origin violates federal law and is antithetical to our nation’s values. We are encouraged by Federal Way’s agreement to change its policies and provide additional training to make sure that its teachers and other staff protect school children from harassment because of their religion or where their families came from. In this country, all people are entitled to be treated with respect and decency and without regard to their faith or their ancestral background.”  

“Every student should be able to attend school without fear of being harassed and bullied because of his or her skin color or religious beliefs,” said U.S. Attorney for the Western District of Washington Brian T. Moran. “I am encouraged by Federal Way’s willingness to take immediate steps to ensure that students attending its schools are free of this type of harassment and bullying.”

Following an investigation into the families’ complaints, the United States notified Federal Way of its concern that the district had failed to respond promptly and appropriately to numerous students’ complaints of harassment, including complaints from Muslim students and a Latino student that they were subjected to serious and repeated verbal and physical harassment. The department also found that the district failed to properly communicate with parents and guardians who are not English language proficient about the complaints. The district worked cooperatively with the United States to ensure appropriate protections for all students and their families. Among other things, the settlement agreement requires the district to: work with a consultant to review and update its anti-harassment policies, ensure that it responds quickly and effectively to student complaints of harassment, and train staff members how to properly communicate with non-English proficient parents and guardians.

The enforcement of Title IV is a top priority of the Justice Department’s Civil Rights Division, which enforces federal laws that protect individuals from discrimination based on their race, color, national origin, disability status, sex, religion, familial status, or loss of other constitutional rights. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.

If you believe your civil rights, or someone else’s, have been violated, submit a report using our online form at www.civilrights.justice.gov/.

The settlement was negotiated by Assistant United States Attorney Christina Fogg, the Civil Rights Coordinator in the Western District of Washington.  To learn more about the civil rights program visit: https://www.justice.gov/usao-wdwa/civil-rights .

doj-federal_way_settlement_agreement_final.pdf

Today the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Washington announced a settlement agreement with Federal Way Public Schools in Washington to resolve an investigation into allegations of peer-on-peer harassment on the basis of religion and national origin.

The complaints made to the United States alleged that students had repeatedly been targeted by their peers with verbal and physical harassment because of their religion or national origin, and that the district did not respond adequately to the students’ complaints about the harassment. The department has authority to investigate and resolve complaints of religious and national origin harassment through its enforcement of Title IV of the Civil Rights Act of 1964. The settlement agreement also resolves complaints about the district’s failure to properly communicate with parents and guardians in the district who are not English language proficient, as required by the Equal Educational Opportunities Act of 1974. 

“School districts must never ignore harassment of students because of their faith or national origin,” said Assistant Attorney General of the Civil Rights Division Eric S. Dreiband. “Discrimination in schools based on religion or national origin violates federal law and is antithetical to our nation’s values. We are encouraged by Federal Way’s agreement to change its policies and provide additional training to make sure that its teachers and other staff protect school children from harassment because of their religion or where their families came from. In this country, all people are entitled to be treated with respect and decency and without regard to their faith or their ancestral background.”  

“Every student should be able to attend school without fear of being harassed and bullied because of his or her skin color or religious beliefs,” said U.S. Attorney for the Western District of Washington Brian T. Moran. “I am encouraged by Federal Way’s willingness to take immediate steps to ensure that students attending its schools are free of this type of harassment and bullying.”

Following an investigation into the families’ complaints, the United States notified Federal Way of its concern that the district had failed to respond promptly and appropriately to numerous students’ complaints of harassment, including complaints from Muslim students and a Latino student that they were subjected to serious and repeated verbal and physical harassment. The department also found that the district failed to properly communicate with parents and guardians who are not English language proficient about the complaints. The district worked cooperatively with the United States to ensure appropriate protections for all students and their families. Among other things, the settlement agreement requires the district to: work with a consultant to review and update its anti-harassment policies, ensure that it responds quickly and effectively to student complaints of harassment, and train staff members how to properly communicate with non-English proficient parents and guardians.

The enforcement of Title IV is a top priority of the Justice Department’s Civil Rights Division, which enforces federal laws that protect individuals from discrimination based on their race, color, national origin, disability status, sex, religion, familial status, or loss of other constitutional rights. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.

If you believe your civil rights, or someone else’s, have been violated, submit a report using our online form at www.civilrights.justice.gov/.

Seattle – A former Microsoft software engineer was sentenced today in U.S. District Court in Seattle to nine years in prison for 18 federal felonies related to his scheme to defraud Microsoft of more than $10 million, announced U.S. Attorney Brian T. Moran.  VOLODYMYR KVASHUK, 26, a Ukrainian citizen residing in Renton, Washington, worked first as a contractor at Microsoft and then as an employee from August 2016 until he was fired in June 2018.  In February 2020, KVASHUK was convicted by a jury of five counts of wire fraud, six counts of money laundering, two counts of aggravated identity theft, two counts of filing false tax returns, and one count each of mail fraud, access device fraud, and access to a protected computer in furtherance of fraud.  At his sentencing hearing, U.S. District Judge James L. Robart said KVASHUK “didn’t have any respect for the law.”

“Stealing from your employer is bad enough, but stealing and making it appear that your colleagues are to blame widens the damage beyond dollars and cents,” said U.S. Attorney Moran.  “This case required sophisticated, technological skills to investigate and prosecute, and I am pleased that our law enforcement partners and the U.S. Attorney’s Office have the skill sets needed to bring such offenders to justice.”

According to records filed in the case and testimony at trial, KVASHUK was involved in the testing of Microsoft’s online retail sales platform and used that testing access to steal “currency stored value” (CSV) such as digital gift cards.  KVASHUK resold the value on the internet, using the proceeds to purchase a $1.6 million dollar lakefront home and a $160,000 Tesla vehicle.  Initially, KVASHUK stole smaller amounts totaling about $12,000 in value using his own account access.  As the thefts escalated into millions of dollars of value, KVASHUK used test email accounts associated with other employees. KVASHUK, a knowledgeable software developer, attempted to mask digital evidence that would trace the fraud and the internet sales back to him.  He used a bitcoin “mixing” service in an attempt to hide the source of the funds ultimately passing into his bank account.  In all, over the seven months of KVASHUK’s illegal activity, approximately $2.8 million in bitcoin were transferred to his bank and investment accounts.  KVASHUK then filed fake tax return forms, claiming the bitcoin had been a gift from a relative.

In their sentencing memo, prosecutors noted that KVASHUK’s scheme cast other Microsoft employees under the glare of suspicion.  “Kvashuk used the proceeds to live the life of a millionaire, driving a $160,000 car and living in a $1.6 million waterfront home.  Kvashuk’s scheme involved lies and deception at every step.  He put his colleagues in the line of fire by using their test accounts to steal CSV.  Rather than taking responsibility, he testified and told a series of outrageous lies.  There is no sign that Kvashuk feels any remorse or regret for his crimes,” prosecutors wrote to the Court.

KVASHUK testified at trial that he did not intend to defraud Microsoft.  He claimed to be working on a special project to benefit the company.  The jury deliberated about five hours following a five-day jury trial before returning the guilty verdicts.

“The Volodymyr Kvashuk trial marked a big win for IRS-CI and the federal cybercrimes team. Kvashuk’s criminal acts of stealing from Microsoft, and subsequent filing false tax returns, is the nation’s first Bitcoin case that has a tax component to it,” said IRS-CI Special Agent in Charge Ryan L. Korner. “Simply put, today’s sentencing proves you cannot steal money via the Internet and think that Bitcoin is going to hide your criminal behaviors. Our complex team of cybercrimes experts with the assistance of IRS-CI’s Cyber Crimes Unit will hunt you down and hold you accountable for your wrongdoings.”

KVASHUK was ordered to pay $8,344,586 in restitution.  He may be deported following his prison term.

The case was investigated by the Internal Revenue Service Criminal Investigation, Western Cyber Crimes Unit and the U.S. Secret Service.

The case was prosecuted by Assistant United States Attorneys Michael Dion and Siddharth Velamoor.

Seattle - A 61-year-old Issaquah, Washington, man was sentenced today in U.S. District Court in Seattle to 30 months in prison for possession of child pornography, announced U.S. Attorney Brian T. Moran.  PHILIP B. GILBERT, who was employed in the IT department of the Archdiocese of Seattle, was arrested on state charges in May 2019.  He was charged federally in October 2019 and pleaded guilty in June 2020.  At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez noted that GILBERT will be transferred to custody in California where he is charged with sexual assault and faces up to life in prison if convicted.

According to documents in the case, in January 2019 an electronic service provider reported GILBERT’s account to the National Center for Missing and Exploited Children (NCMEC) for uploading images of child rape and molestation.  After obtaining a court-authorized search warrant, law enforcement served the warrant at GILBERT’s residence and seized electronic devices.  The devices contained 256 images of child pornography. 

Following GILBERT’s arrest, a victim came forward to law enforcement and reported GILBERT molested her.  Contra Costa County, California, has charged the defendant with multiple sexual abuse crimes against a minor for which he faces life in prison.  Following his federal sentence, he will be transferred to California to resolve those charges.  On the federal case, Chief Judge Martinez imposed ten years of supervised release to follow prison and $12,000 in restitution to the victims depicted in the various child pornography series that GILBERT possessed.

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

The case was investigated by the King County Sheriff’s Office in subsequent collaboration with Homeland Security Investigations.

The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.

Seattle – A 43-year-old Van Nuys, California, man was sentenced today in U.S. District Court in Seattle to two years in prison for two federal felonies for his sexual assault of a young woman on a flight from London to Seattle, announced U.S. Attorney Brian T. Moran.  BABAK REZAPOUR was convicted on January 22, 2020, of abusive sexual contact in a special aircraft jurisdiction and abusive sexual contact with an incapacitated victim.  The jury deliberated about two and a half hours following a five-day jury trial.  At the sentencing hearing, U.S. District Judge Robert S. Lasnik said the crime was “an evil act…. An awful, horrible,  nightmare situation.” 

“This defendant not only assaulted this young woman on the plane, his history shows escalating assaults on women even before this incident,” said U.S. Attorney Brian Moran.  “I commend this brave victim who has endured the pain of describing this crime to first responders, investigators, and ultimately to the jury.”

According to records filed in the case and testimony at trial, REZAPOUR sexually assaulted the 20-year-old victim while she was incapacitated from medication and alcohol on a Norwegian Air flight from London to Seattle on January 10, 2018.  The victim had taken prescribed anti-anxiety and anti-nausea medication and drank a glass of wine.  The victim then accepted a second glass of wine purchased for her by REZAPOUR.  After drinking the second glass, the victim became unusually sleepy.  She awoke to find REZAPOUR sexually assaulting her.  REZAPOUR used his jacket to shield the activity from other passengers.  The victim fled to the back of the plane and reported the assault to flight attendants. 

At trial, witnesses described seeing REZAPOUR move into the seat next to the victim, contradicting his statements to law enforcement that he had stayed in his aisle seat with an open seat between them.  In multiple statements to different investigators following the incident, REZAPOUR changed his description of what had occurred on the plane.  In addition to consistent statements from the victim and witnesses, prosecutors used DNA evidence to prove REZAPOUR’s guilt beyond a reasonable doubt.  An FBI DNA expert described how she discovered REZAPOUR’s DNA inside the victim’s underwear. 

In sentencing documents, prosecutors describe how REZAPOUR’s criminal history shows a pattern of sexual assault.  REZAPOUR was charged in 2012 in a prostitution sting in California.  In 2017, just six months before the airplane assault, REZAPOUR was escorted out and banned from a North Carolina resort hotel after molesting a hotel worker who was cleaning the men’s locker room.  “These were not isolated incidents.  They can credibly be interpreted as a continuing course of conduct reflecting an ongoing urge to sexually assault strangers in increasingly serious attacks,” prosecutors wrote in their sentencing memo. 

Prosecutors asked for an above guidelines sentence, noting that sex assault crimes on aircraft are on the rise and need to be deterred.  According to the FBI, in 2014, 38 cases of in-flight sexual assaults were reported.  In 2017, that number increased to 63 reported cases.  In 2019, these assaults increased to 119 reported cases. 

At the sentencing hearing the victim spoke to REZAPOUR saying “you saw me as an object and took from me whatever you wanted… You made me distrust every man in my life…. You made me feel less than what I was.”  After she spoke Judge Lasnik told her she should be proud of how strong she has been in working to recover from this sexual assault and hold REZAPOUR accountable.

REZAPOUR has been in custody since the jury verdict in January 2020.  He told the court he was begging for forgiveness, “I have a problem and I need help.”

REZAPOUR is required to register as a sex offender following his prison term.

The case was investigated by the Port of Seattle Police and the FBI.  The case was prosecuted by Assistant United States Attorneys Marie Dalton and Grady Leupold.

Seattle - A 36-year-old Bothell, Washington man pleaded guilty today in U.S. District Court in Seattle to securities fraud for his insider trading activity, announced U.S. Attorney Brian T. Moran.  VIKY BOHRA admits that between 2015 and 2018, he used Amazon inside information he obtained from his relative to place trades in Amazon stock–making a profit of $1,428,264.  BOHRA is scheduled to be sentenced by U.S. District Judge James L. Robart on February 8, 2021.

According to the plea agreement, BORHA’s relative worked in the Amazon Finance Department and had access to confidential information regarding Amazon revenue and expenses.  Because of that work, the relative was subject to blackout periods during which no stock could be traded by the employee or her immediate relatives.  The employee also was advised of insider trading policies making it clear the responsibility to safeguard confidential financial information.  Despite those warnings, BOHRA obtained confidential information from the relative and traded in Amazon stock in accounts tied to him and his father.  Trades occurred during blackout periods and, from 2015 to 2018, relied in part on information from his relative to make successful trades in advance of Amazon earnings announcements.

As part of the plea agreement, BOHRA agrees to forfeit the proceeds of his trades, $1,428,264 to the United States.  On September 28, 2020, BOHRA was charged by the Securities and Exchange Commission (SEC) in a civil insider trading case.  The recoveries in that case will be credited toward the forfeiture owed to the United States.

As part of the plea agreement, BOHRA’s relative will not face criminal charges.  The relative is no longer employed at Amazon.

Securities Fraud is punishable by up to 25 years in prison and a $250,000 fine.  Under the terms of the plea agreement prosecutors will recommend a sentence of no more than 33 months in prison.  The ultimate sentence is up to Judge Robart after considering the sentencing guidelines and other factors.

The case was investigated by the FBI.

The case is being prosecuted by Assistant United States Attorney Justin Arnold.

Seattle – A 26-year-old Kent, Washington man was charged in U.S. District Court in Seattle with sex trafficking of a minor, announced U.S. Attorney Brian T. Moran. AL-PENYO BROOKS, was transferred to federal custody in coordination with the King County Prosecuting Attorney’s Office, which had originally filed state charges in the case.  BROOKS was identified as a suspect in May 2020, when Pierce County Sheriff’s deputies and Seattle Police Department officers worked urgently to recover a 17-year-old girl who had run away from her Pierce County, Washington home.  BROOKS made his initial appearance in federal court on Friday.

According to the complaint, the girl has developmental delays, and unbeknownst to her guardian, had set up a Facebook account.  Using Facebook Messenger, BROOKS communicated with the girl about her interest in music and writing songs.  BROOKS’ communication led the girl to believe he could promote her in the music business.  Even after the girl told BROOKS she was seventeen, BROOKS made arrangements to pick her up near her home and told her how to evade her guardian.  He picked her up and had an associate change her hair and clothing.  He provided her with drugs and alcohol and sexually assaulted her while she was impaired.  BROOKS then instructed the girl to walk the “track” on Aurora Avenue North, telling her to perform sex acts for money.  The girl was ultimately taken to an apartment in north Seattle were police located her when she signed in to Facebook on the IP address listed for the apartment.

Sex trafficking of a juvenile is punishable by a mandatory minimum term of imprisonment of ten years and a maximum of life imprisonment, as well as a term of supervised release of at least five years and up to life.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the Seattle Police Department.  The King County Prosecutors Office is working closely with the U.S. Attorney’s Office on this case.  The case is being prosecuted by Assistant United States Attorney Kate Crisham.

SEATTLE – A Washington State man was charged in a criminal complaint unsealed today for fraudulently seeking over $1.1 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Brian T. Moran of the U.S. Attorney’s Office for the Western District of Washington, Inspector General J. Russell George of the Treasury Inspector General for Tax Administration, Inspector General Gail S. Ennis of the Social Security Administration, Inspector General Hannibal “Mike” Ware of the SBA, and Special Agent in Charge Cardell Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, made the announcement.

Austin Hsu, 46, of Issaquah, Washington, was charged by criminal complaint, unsealed today after his initial appearance, in the Western District of Washington with one count of wire fraud.  He made his initial appearance before U.S. Magistrate Judge Brian A. Tsuchida.

The complaint alleges that Hsu submitted nine fraudulent disaster loan applications on behalf of five different companies.  Hsu, who is the owner and CEO of a company named Blackrock Services P.S. doing business as “Back 2 Health Bellevue” (Back 2 Health), received EIDL and PPP funds for Back 2 Health, and then used the names of Back 2 Health’s current and former employees to apply for additional PPP loans under the names of other companies that he owned and controlled.  The complaint also alleges that, in support of the fraudulent PPP loan applications, Hsu submitted fake federal tax filings. 

The complaint further alleges that, in support of the fraudulent EIDL loan applications, Hsu made numerous false and misleading statements about the companies’ respective business and operations.  For example, Hsu incorporated a company named Blueline Capital LLC (Blueline) in June 2020 for the purpose of applying for an EIDL loan in July 2020, and then misrepresented to the SBA that Blueline had been in business since 2017 and that, as of Jan. 31, 2020, Blueline had nine employees and gross receipts of over $1.5 million.  In truth, Blueline had no business or operations.

The CARES Act is a federal law enacted March 29.  It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.  One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.  Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue.  EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments.  If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.

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

This case was investigated by the U.S. Treasury Inspector General for Tax Administration, Social Security Administration – Office of Inspector General, and Small Business Administration – Office of Inspector General, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation.  Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Masada of the Western District of Washington are prosecuting the case.

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

hsu_complaint.pdf

A Washington man was charged in a criminal complaint unsealed today for fraudulently seeking over $1.1 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Brian T. Moran of the U.S. Attorney’s Office for the Western District of Washington, Inspector General J. Russell George of the Treasury Inspector General for Tax Administration, Inspector General Gail S. Ennis of the Social Security Administration, Inspector General Hannibal “Mike” Ware of the SBA, and Special Agent in Charge Cardell Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, made the announcement.

Austin Hsu, 46, of Issaquah, Washington, was charged by criminal complaint, unsealed today after his initial appearance, in the Western District of Washington with one count of wire fraud.  He made his initial appearance before U.S. Magistrate Judge Brian A. Tsuchida.

The complaint alleges that Hsu submitted nine fraudulent disaster loan applications on behalf of five different companies.  Hsu, who is the owner and CEO of a company named Blackrock Services P.S. doing business as “Back 2 Health Bellevue” (Back 2 Health), received EIDL and PPP funds for Back 2 Health, and then used the names of Back 2 Health’s current and former employees to apply for additional PPP loans under the names of other companies that he owned and controlled.  The complaint also alleges that, in support of the fraudulent PPP loan applications, Hsu submitted fake federal tax filings. 

The complaint further alleges that, in support of the fraudulent EIDL loan applications, Hsu made numerous false and misleading statements about the companies’ respective business and operations.  For example, Hsu incorporated a company named Blueline Capital LLC (Blueline) in June 2020 for the purpose of applying for an EIDL loan in July 2020, and then misrepresented to the SBA that Blueline had been in business since 2017 and that, as of Jan. 31, 2020, Blueline had nine employees and gross receipts of over $1.5 million.  In truth, Blueline had no business or operations.

The CARES Act is a federal law enacted March 29.  It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.  One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.  Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments.  If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.

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

This case was investigated by the U.S. Treasury Inspector General for Tax Administration, Social Security Administration – Office of Inspector General, and Small Business Administration – Office of Inspector General, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation.  Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven Masada of the Western District of Washington are prosecuting the case.

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

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Seattle – U.S. Attorney Brian T. Moran today announced the University of Washington is receiving more than $1 million in a Department of Justice grant for a research and evaluation project that identifies data-driven programs for reducing crime and promoting justice.  Nationwide, the $43 million in grant awards span research topic priorities such as prisoner reentry, terrorism prevention, human trafficking, and police officer safety and wellness.

The awards are part of a strategic plan developed by Office of Justice Program’s (OJP) National Institute of Justice (NIJ) to advance technology, strengthen scientific research, and translate knowledge to practice.  They represent NIJ’s broader effort to include more diversity of disciplines, such as physical and social sciences, to link areas of research that have not previously been connected.

“The more we know about crime—the better we understand its causes and consequences—the greater our chances of finding sustainable solutions to the public safety problems confronting our communities,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan.  “The research supported by these awards will expand our knowledge about what works to reduce crime, curb reoffending, and protect our criminal justice professionals, and this new knowledge will put us a step closer to achieving a more just and lawful society.”

The research addresses critical needs such as prisoner reentry, emphasizing innovative strategies to reintegrate offenders into communities, and reduce recidivism.  Today’s announcement includes three projects that will study reentry initiatives, including those in rural communities.  The research will advance the body of knowledge on promising practices in the field of offender reentry.

“The University of Washington is receiving the largest share of $2.2 million aimed at research and evaluation projects on violence against women,” said U.S. Attorney Moran.  “The projects receiving grant funding examine a broad range of topics including the crimes of homicide, intimate partner and dating violence, rape and sexual assault, stalking, and trafficking, along with criminal justice system responses, procedures, and policies.”

The total amount coming to the UW for this research is $1,022,215.

For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here.  More information about OJP and its components can be found at www.ojp.gov.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years

WASHINGTON – A Seattle man pleaded guilty today to one count of wire fraud for carrying out a scheme to defraud several COVID-19 relief programs.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Brian T. Moran of the Western District of Washington, Special Agent in Charge Weston King of the U.S. Small Business Administration Office of Inspector General’s (SBA-OIG) Western Region, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, and Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office made the announcement.

Baoke Zhang, 35, of Issaquah, Washington, pleaded guilty to one count of wire fraud before U.S. Magistrate Judge Brian A. Tsuchida of the Western District of Washington.

As part of his guilty plea, Zhang admitted that he carried out a scheme to defraud several different government and private COVID-19 relief programs intended to assist those facing financial difficulties due to the ongoing pandemic. 

Zhang admitted that he submitted four fraudulent applications to three different lenders for forgivable loans under the Paycheck Protection Program (PPP), a SBA program that provided payroll assistance to small businesses.  To support the loan applications, Zhang used fake entities for which he created fake payroll and tax records.  Two of the fraudulent loan applications sought $600,000 each, a third application sought $325,000, and a fourth sought approximately $41,000.  Zhang also submitted a fraudulent application to the SBA for an Economic Injury Disaster Loan (EIDL) in the name of one of the fake entities for which he also had applied for PPP loans.  The SBA paid Zhang a $10,000 EIDL advance before his fraud was detected.

Zhang further admitted that he submitted fraudulent applications to two non-profit organizations providing grants to restaurant workers suffering economic hardship due to the pandemic.  Zhang submitted the various applications in the names of Zhang, his wife, and his parents, falsely claiming that each were restaurant workers who had either lost their jobs or lost wages due to COVID-19.  To support the applications, Zhang created fake letters from purported restaurant owners regarding employment and fake payroll records.  In fact, neither Zhang nor his wife or parents worked in restaurants.  Zhang obtained $1,500 from one of the non-profits before his fraud was detected.

Zhang also admitted that he submitted a fraudulent application to a multinational technology company headquartered in Seattle, Washington, that was providing grants to qualifying small businesses in the Seattle area.  Zhang falsely claimed in his application that he ran a small business in a local shopping center that had suffered economically due to the pandemic.  In fact, Zhang did not own any businesses.  Zhang obtained $5,000 from the relief program before his fraud was detected.

In total, Zhang admitted to attempting to defraud the various COVID-19 relief programs of more than $550,000.

This case was investigated by the SBA-OIG, the TIGTA, and the FBI.  Trial Attorney Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Werner of the Western District of Washington are prosecuting the case.

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

A Seattle man pleaded guilty today to one count of wire fraud for carrying out a scheme to defraud several COVID-19 relief programs.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Brian T. Moran of the Western District of Washington, Special Agent in Charge Weston King of the U.S. Small Business Administration Office of Inspector General’s (SBA-OIG) Western Region, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, and Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office made the announcement.

Baoke Zhang, 35, of Issaquah, Washington, pleaded guilty to one count of wire fraud before U.S. Magistrate Judge Brian A. Tsuchida of the Western District of Washington.

As part of his guilty plea, Zhang admitted that he carried out a scheme to defraud several different government and private COVID-19 relief programs intended to assist those facing financial difficulties due to the ongoing pandemic. 

Zhang admitted that he submitted four fraudulent applications to three different lenders for forgivable loans under the Paycheck Protection Program (PPP), a SBA program that provided payroll assistance to small businesses.  To support the loan applications, Zhang used fake entities for which he created fake payroll and tax records.  Two of the fraudulent loan applications sought $600,000 each, a third application sought $325,000, and a fourth sought approximately $41,000.  Zhang also submitted a fraudulent application to the SBA for an Economic Injury Disaster Loan (EIDL) in the name of one of the fake entities for which he also had applied for PPP loans.  The SBA paid Zhang a $10,000 EIDL advance before his fraud was detected.

Zhang further admitted that he submitted fraudulent applications to two non-profit organizations providing grants to restaurant workers suffering economic hardship due to the pandemic.  Zhang submitted the various applications in the names of Zhang, his wife, and his parents, falsely claiming that each were restaurant workers who had either lost their jobs or lost wages due to COVID-19.  To support the applications, Zhang created fake letters from purported restaurant owners regarding employment and fake payroll records.  In fact, neither Zhang nor his wife or parents worked in restaurants.  Zhang obtained $1,500 from one of the non-profits before his fraud was detected.

Zhang also admitted that he submitted a fraudulent application to a multinational technology company headquartered in Seattle, Washington, that was providing grants to qualifying small businesses in the Seattle area.  Zhang falsely claimed in his application that he ran a small business in a local shopping center that had suffered economically due to the pandemic.  In fact, Zhang did not own any businesses.  Zhang obtained $5,000 from the relief program before his fraud was detected.

In total, Zhang admitted to attempting to defraud the various COVID-19 relief programs of more than $550,000.

This case was investigated by the SBA-OIG, the TIGTA, and the FBI.  Trial Attorney Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Werner of the Western District of Washington are prosecuting the case.

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

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Seattle - Eleven defendants were indicted in three separate indictments for their parts in manufacturing, distributing, and profiting from the production and distribution of illegal marijuana across the country and in the Puget Sound region, announced U.S. Attorney Brian T. Moran.  Some of the defendants were arrested today in coordinated searches of 27 locations in the Puget Sound region and additional searches in New York.  Many of the locations in Washington were illegal grow houses, and others were businesses that allegedly served as front companies.  Those arrested before noon today will make their appearance at 1:00 in U.S. District Court in Seattle.

“This criminal group operated outside Washington State’s regulatory scheme for marijuana, distributing thousands of pounds of marijuana to states where marijuana was, or remains, illegal, making huge sums of money,” said U.S. Attorney Moran.  “Members of the group turned homes in the Seattle area into illegal grow houses, damaging neighborhoods, and competing unfairly with honest buyers who are just trying to afford their first home.”

“This type of organized crime has a negative impact on the safety and the quality of life in our local neighborhoods. It cannot be tolerated” said King County Sheriff Mitzi G. Johanknecht.  “I am very thankful for the hard work and long hours our detectives have put in to make this investigation a success.”

Over the course of the investigation, law enforcement determined marijuana was being shipped to Illinois, New York, New Jersey, Pennsylvania, Kentucky, Massachusetts, Connecticut, Georgia, and Missouri.  Today, search teams led by investigators and agents from the U.S. Postal Inspection Service and the Internal Revenue Service Criminal Investigation executed search warrants at locations in Skyway, Renton, Kent, Lake Tapps, Maple Valley, Federal Way, Covington, SeaTac, and Snohomish.

In the first indictment, RAYMOND NG, 49, and QIFANG CHEN, 32, are charged with conspiracy to manufacture and distribute marijuana.  NG operates Skyway General Contractors, and the couple is involved in the purchase of multiple properties that have been used as marijuana grows.

The second indictment charges WEI QUAN WU, 46, and DA BIAO WU, 52, with seven federal counts involving conspiracy, manufacturing, and possessing marijuana for distribution at different locations throughout the Puget Sound region.  

Finally, the third indictment charges WOBIAO LEI, 35, XINMING WU, 35, YI JUN CHEN, 33, GUO GUI YU, 39, CHEE CHOONG NG, 52, GUOLONG LEE, 31, and LINGFENG LEI, 26, with conspiracy to manufacture and distribute marijuana, as well as possession of marijuana with intent to distribute and manufacturing marijuana with intent to distribute.  CHEE CHOONG NG was arrested by Postal Inspection agents today in Brooklyn, New York.

In each of the indictments, the government has filed for forfeiture of properties associated with the conspiracy and other proceeds of the crimes.  Due to the amount of illegal marijuana involved, if convicted, the defendants face a mandatory minimum ten years in prison.

“It's clear the leaders of this organization contributed widely to the illegal marijuana drug trade in the Pacific Northwest,” said Inspector in Charge Anthony Galetti.  “Illegal grow operations such as these, with their extensive networks, have a wide reaching and destructive impact to the communities they inhabit.  With these arrests and seizures of illegal marijuana grow operations, we bring down one of the largest networks in the region.  This should serve as a reminder to the community that the U.S. Postal Inspection Service, along with our local, state, and federal partners, continues working diligently to keep any and all prohibited substances out of the US Mail.”

“The alleged members of this interstate drug trafficking organization will be held accountable for their conduct,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell.  “Criminal organizations that willfully ignore state marijuana regulations for their own enrichment will be investigated and prosecuted by IRS-CI and our partners.”

The charges contained in the indictments are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  The case is being investigated by the U.S. Postal Inspection Service (USPIS) and the Internal Revenue Service Criminal Investigation (IRS-CI) and the King County Sheriff’s Office.  The Drug Enforcement Administration (DEA), the FBI, and Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) assisted with the search warrants.

The case is being prosecuted by Assistant United States Attorneys Nicholas Manheim and Stephen Hobbs.

lei_et_al_indictment.pdf ng_chen_indictment.pdf wu_indictment.pdf

 

Seattle – United States Attorney Brian T. Moran announced today that once again Assistant United States Attorney (AUSA) Arlen Storm will lead the efforts of our Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election.  AUSA Storm is a veteran prosecutor who has served as the District Election Officer (DEO) for the Western District of Washington for more than 10 years.  In that capacity he is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington, D.C.

“It is a cornerstone of our democracy that citizens be able to vote without interference or discrimination,” said United States Attorney Moran.  “It is equally important that our results not be tainted by fraud.  The Department of Justice remains vigilant and will act appropriately to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).

In order to respond to complaints of election fraud or voting rights concerns during the voting period and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Arlen Storm can be reached by the public at 253-428-3807.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses during the election period.  The local FBI field office can be reached by the public at 206-622-0460.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C., by phone at 800‑253‑3931 or by complaint form at https://civilrights.justice.gov/ .

 

Seattle – A 22-year-old member of a violent street gang was sentenced today to 42 months in prison for possession of a machinegun, announced U.S. Attorney Brian T. Moran.  JAYVON GRAYSON was on probation for an armed robbery when he used straw-buyers to obtain various firearms, one of which was converted from semi-automatic to automatic.  GRAYSON made a video of himself shooting this machinegun from a moving car.  U.S. District Judge James L. Robart referenced the video at the sentencing hearing saying it indicates GRAYSON “was an immediate and serious threat to the community and himself.”

“This case demonstrates how illegally purchased firearms circulate in the criminal community and pose a danger to anyone who is in the wrong place at the wrong time,” said U.S. Attorney Moran.  “To fire an automatic weapon, loaded with an extended capacity magazine, from a moving vehicle, puts countless people at risk.  Stopping the circulation of these firearms in the criminal community is a top priority of the Department of Justice.”

According to the records filed in the case, during 2018, GRAYSON and a friend had the friend’s mother purchase firearms for them from a licensed gun store.  The woman falsely claimed she was the person who would purchase and possess the firearms.  Instead, she turned the firearms over to her son who shared or sold various firearms with gang associates, including GRAYSON.  A second straw-purchaser also provided a firearm to GRAYSON.  On social media GRAYSON posted numerous videos of his use and possession of firearms, including the machinegun.  GRAYSON posted these images and videos on social media even as he was under state supervision for an armed robbery conviction.

At the sentencing hearing GRAYSON told Judge Robart, “I was reckless…. I was dangerous… Please give me a second chance.”  Judge Robart noted that GRAYSON needs to forge a new path, saying, “I don’t know how you get much worse than possessing a machine gun.”  The judge imposed a three-year term of supervised release to follow prison and noted that if GRAYSON returned to gang and gun life, the prison sanctions will increase significantly.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes.  Project Guardian ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  More information about Project Guardian is here.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Division of Alaska State Troopers (AST) and the King County Sheriff’s Office (KCSO).

The case was prosecuted by Assistant United States Attorney Jessica Manca.

Seattle – U.S. Attorney Brian T. Moran today announced awards of more than $6.5 million in Department of Justice grants to fight drug abuse and addiction in the Western District of Washington.  The grants were awarded by the Department’s Office of Justice Programs (OJP) and are part of more than $341 million going to communities nationwide.

“The addiction crisis has taken an enormous toll on America’s families and communities, eroding public health, threatening public safety and claiming tens of thousands of lives year after year,” said Attorney General William P. Barr.  “Through comprehensive measures taken by this administration, we have been able to curtail the opioid epidemic, but new and powerful drugs are presenting exceptional challenges that we must be prepared to meet.  The Justice Department’s substantial investments in enforcement, response, and treatment will help us overcome these challenges and work towards freeing Americans from abuse and addiction.”

Illegal drugs and illicit drug use have claimed the lives of nearly 400,000 Americans since the turn of the century.  Powerful synthetic opioids like fentanyl are exacting an enormous toll on families and communities, and an emergence in the use of methamphetamines and other psychostimulants is drawing drug traffickers and driving up overdose rates.  Three years ago, President Trump declared a Public Health Emergency and initiated a whole-of-government approach dedicated to ending this national tragedy.  The Department of Justice has invested unprecedented levels of funding in combating the addiction crisis.  The awards announced today build on those earlier investments.

“If we hope to defeat an enemy as powerful, persistent and adaptable as illicit drugs, we must be at least as determined and versatile, focusing our ingenuity and resources on curbing abuse and fighting addiction,” said OJP’s Principal Deputy Assistant Attorney General Katharine T. Sullivan.  “These grants will enable criminal justice officials and substance abuse, mental health, and other medical professionals to pool their assets and bring the full weight of our public safety and treatment systems down on this epidemic that has already caused so much harm.”

“As U.S. Attorney one of my most searing memories is meeting with the families who have lost loved ones to opioids – especially deadly fentanyl,” said U.S. Attorney Moran.  “As we work to interdict shipments of these drugs, I also welcome DOJ support in enhancing the tools to help those gripped by addiction.”

Funding is made available through OJP’s Bureau of Justice Assistance, National Institute of Justice, Office for Victims of Crime and Office of Juvenile Justice and Delinquency Prevention.

The following organizations received funding:

• Seattle-King County Health Department - $1,200,000 to expand access to treatment
• Makah Tribe - $591,768 to expand access to treatment
• Confederated Tribes of Chehalis - $339,519 to expand access to treatment
• Puyallup Tribe - $600,000 to expand access to treatment
• Washington State Department of Social and Health Services - $438,297 for residential substance about treatment in prisons
• Skagit County District Court - $399,368 to support community courts
• City of Olympia - $400,000 to support community courts
• Lummi Indian Business Council - $827,972 to support family drug courts
• Judiciary of the Courts of the State of Washington -$1,750,000 to support family drug courts 
   

For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, click here. More information about OJP and its components can be found at www.ojp.gov.

Seattle - A felon from Georgia, with a domestic violence conviction and no contact order in Washington State, was arrested yesterday charged with arson and weapons crimes for his conduct during civil unrest on May 30, 2020, announced U.S. Attorney Brian T. Moran.  TYRE WAYNE MEANS JR will make his initial appearance in federal court at 2:00 today on a criminal complaint charging him with four federal felonies: arson, possession of a stolen firearm, and two counts of unlawful possession of a firearm.

“This is just the latest in a series of cases where our office has brought federal criminal charges related to civil disorder, and should be a wake-up call for those who think they can commit crimes hidden by a crowd,” said U.S. Attorney Moran.  “Federal law enforcement and local police are piecing together publicly available video and photographic evidence to identify and ultimately prosecute those who thought they could escape accountability for their actions.  In this case it means a felon, who is legally barred from possessing firearms, now faces tough federal sanctions.”

According to the criminal complaint, just after 4:00 p.m. on May 30, 2020, MEANS JR was captured on video lighting a paper towel and placing it in the back of a Seattle Police patrol car parked outside of Nordstrom on 6th Avenue in downtown.  Other persons in the crowd fed the fire with lighter fluid and other accelerants and the vehicle was destroyed by fire.  After he lit one patrol car on fire, MEANS JR is observed on video reaching through the destroyed rear window of a different patrol car and removing a rifle bag.  MEANS JR opens the bag, and looks inside.  MEANS JR is seen fighting with an unidentified man who tries to retrieve the rifle bag before MEANS JR runs from the scene.  A subsequent surveillance video on Pine Street, around the corner from where the rifle was stolen, shows MEANS JR in a fight with another man.  While MEANS JR and the man are throwing punches, an unidentified man picks up the rifle bag and ultimately walks away.  Later that day the rifle was anonymously returned to the Seattle Police West Precinct.

MEANS JR was identified as the suspect in the video by his distinctive clothing, jewelry, tattoos, and association with a female who also had distinctive tattoos and a significant social media presence.  MEANS JR was arrested in Bremerton, Washington, where he was meeting with his Washington State Department of Corrections probation officer.

MEANS JR is prohibited from possessing firearms due to two felony convictions in the state of Georgia: serious injury by vehicle and obstructing law enforcement by use of threats or violence.  In Washington, MEANS JR has a felony conviction for domestic violence that includes a no-contact order–that order also prohibits him from possessing firearms.

Arson is punishable by a mandatory minimum 5 years in prison and up to 20 years in prison.  All three firearms charges are punishable by up to 10 years in prison.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the FBI and the Seattle Police Department.

The case is being prosecuted by Assistant United States Attorney Todd Greenberg.

means_complaint.pdf

Seattle — U.S. Attorney Brian Moran today announced $4.9 million in Department of Justice grants to the Western District of Washington to fund crime laboratories, decrease DNA backlogs, support basic and applied forensic research, and help law enforcement identify missing persons.  The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of $192 million in funding to advance forensic science nationwide.

“Developments in forensic science have given investigators an extraordinary array of tools that can be enlisted to solve crimes and bring answers to victims and survivors, often after many years and even decades,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan.  “These investments in crime-fighting technology, from DNA analysis to drug toxicology to forensic anthropology, will help identify and convict perpetrators, ensure justice for innocent victims and keep communities safe by deterring future criminal activity.”

“As a long-time state prosecutor, I have prosecuted cases where DNA and forensic science is what makes justice in a court of law possible,” said U.S. Attorney Moran.  “These grants from DOJ will not only help ensure justice for victims and accountability for offenders, it will also help those who are wrongly accused or convicted get justice and reclaim their lives.”

Since 2004, the Office of Justice Programs has received an annual appropriation for DNA and other forensic science activities.  The funding, administered through OJP’s Bureau of Justice Assistance and National Institute of Justice, supports DNA analysis, laboratory capacity enhancement, and forensic science research that provide knowledge and tools to improve the quality and practice of forensic science.

The following organizations received funding:

• Washington State Patrol - $1,862,128 to address DNA processing 
• Washington State Patrol - $410,715 to improve forensic equipment
• Skagit County Coroner - $250,000 to improve forensic equipment
• Washington State Patrol - $500,000 for post-conviction DNA analysis
• King County Medical Examiner - $125,000 to improve death investigations
• Washington Attorney General - $670,000 to expand the DNA database for sexual assault cases
• Jensen Hughes Inc. - $270,000 - research and development in forensic sciences
• University of Washington - $711,000 - research and development in forensic sciences
• University of Washington - $107,205 - graduate research fellow

For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, see the attached fact sheet.  More information about OJP and its components can be found at www.ojp.gov.

final_wrap_fact_sheet_forensics.pdf

Seattle - In two separate cases, registered sex offenders have pleaded guilty to possession of child pornography, announced U.S. Attorney Brian T. Moran.  JOHNATHON R. UMPHLETT, 31, of Arkansas, pleaded guilty today and is scheduled to be sentenced by U.S. District Judge John C. Coughenour on January 13, 2021.  MICHAEL DAVID MATHISEN, 68, of SeaTac, Washington, pleaded guilty on October 9, 2020, and is scheduled to be sentenced by U.S. District Judge Richard A. Jones on January 8, 2021.  Because both men have prior convictions for sex offenses, each faces a mandatory minimum of ten years in prison.

According to records filed in the case, UMPHLETT was contacted by Seattle Police in June 2019, when a witness at a restaurant reported UMPHLETT was viewing what appeared to be child pornography on his smart phone.  UMPHLETT provided his phone to the Seattle Police Detective for review, and the detective verified a number of images of children engaged in sexually explicit conduct.  UMPHALETT has a 2014 conviction in Arkansas for sexually assaulting a seven-year-old boy.

MICHAEL DAVID MATHISEN was contacted by law enforcement in October 2019, following a referral from Microsoft to the National Center for Missing and Exploited Children (NCMEC) that the account later linked to MATHISEN was uploading images and searching on the internet for images of children engaged in sexually explicit conduct.  A search of MATHISEN’s electronic devices revealed nineteen files with images of children being sexually molested and abused. MATHISEN has convictions in 1984 and 1994 for sexually molesting children under the age of nine.

These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc 

The cases were investigated by the Internet Crimes against Children Task Force led by the Seattle Police Department.  Specifically, Seattle Police and Homeland Security Investigations investigated the case against UMPHLETT, and the King County Sheriff’s Office and Homeland Security Investigations completed the MATHISEN investigation. 

The cases are being prosecuted by Assistant United States Attorney Cecelia Gregson.

Seattle - A two-time federal felon was sentenced to four years in prison today for illegally possessing firearms, announced U.S. Attorney Brian T. Moran.  PARK QUAN, 67, was arrested July 29, 2019, after FBI agents investigating one of his roommates in connection with a data theft served a search warrant on his home and discovered a cache of weapons.  QUAN has remained in custody since his arrest and pleaded guilty to being a felon in possession of a firearm in June 2020.  In imposing the four-year sentence, U.S. District Judge John C. Coughenour said he was taking into account QUAN’s age and health challenges diagnosed while he has been in the care of the Bureau of Prisons.

According to records filed in the case, agents investigating the data theft were sweeping the residence for safety when they observed numerous firearms in a bedroom used by QUAN.  Agents applied for and got a second search warrant and began collecting the firearms.  The cache of weapons included four semi-automatic handguns, six semi-automatic rifles, two of them assault rifles, and two additional rifles.  At least one of the semi-automatic rifles was loaded.  Law enforcement also seized a variety of ammunition, high-capacity magazines, flare launchers, some containers of explosive powder, and two bump stocks, which QUAN claimed to have purchased before the devices were outlawed.

QUAN has a 1983 federal conviction in Washington for being a felon in possession of explosives and a 1991 federal conviction in Texas for possessing an unregistered machine gun.  QUAN also has a military court-martial conviction for soliciting the theft of military weapons.  Due to those convictions, QUAN is prohibited from possessing firearms.

The case is being investigated by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).  The case was prosecuted by Assistant United States Attorneys Steven Masada and Andrew Friedman.

quan_sentencing_memo.pdf

Seattle–Today, the Department of Justice announced it has charged more than 14,200 defendants with firearms-related crimes during Fiscal Year (FY) 2020, despite the challenges of COVID-19 and its impact on the criminal justice process. These cases have been a Department priority since November 2019 when Attorney General William P. Barr announced his commitment to investigating, prosecuting, and combatting gun crimes as a critical part of the Department’s anti-violent crime strategy.  These firearms-related charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made firearms-related investigations a priority.

“The number one priority of government is to keep its citizens safe,” said Attorney General Barr.  “By preventing firearms from falling into the hands of individuals who are prohibited from having them, we can stop violent crime before it happens.  Violating federal firearms laws is a serious crime, and offenders face serious consequences.  The Department of Justice is committed to investigating and prosecuting individuals who illegally buy, sell, use, or possess firearms.  Reducing gun violence requires a coordinated effort, and we could not have charged more than 14,000 individuals with firearms-related crimes without the hard work of the dedicated law enforcement professionals at the ATF, our U.S. Attorneys’ Offices across the country, and especially all of our state and local law enforcement partners.”

“Protecting the public from violent crime involving firearms is at the core of ATF’s mission,” commented ATF Acting Director Regina Lombardo.  “Every day the men and women of ATF pursue and investigate those who use firearms to commit violent crimes in our communities, many of whom are prohibited from possessing firearms from previous convictions.  ATF, in collaboration with the U.S. Attorneys’ Offices across the nation, is committed to bringing these offenders to justice for their egregious and violent criminal acts.”

“In addition to cases involving illegal firearms possession, our office has also placed a priority on prosecuting those who attempt to purchase guns illegally, such as ‘lie and buy’ cases, those who try to import silencers from overseas, and those who illegally manufacture machine guns and untraceable ‘ghost guns,’” said U.S Attorney Moran.  “Our work relies on our partnerships with federal agencies as well as local law enforcement working together to defeat gun violence.”

Of the more than 14,200 cases charged, 73 cases have been brought by the Western District of Washington announced U.S. Attorney Moran.

Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon, illegal alien, or unlawful user of a controlled substance.  Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime.  It is also illegal to purchase--or even to attempt to purchase illegally--firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others.  Lying on ATF Form 4473, which is used to purchase a firearm lawfully, is also a federal offense.  The Department is committed to prosecuting these firearms offenses, as well as using all modern technologies available to law enforcement, such as the National Integrated Ballistic Information Network, known as NIBIN, to promote gun crime intelligence.  Keeping illegal firearms out of the hands of violent criminals will continue to be a priority of the Department of Justice, and we will use all appropriate, available means to keep the law abiding people of this country safe from gun crime. 

For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.          

Seattle – A 41-year-old Seattle man was sentenced today in U.S. District Court in Seattle to 70 months in prison for being a felon in possession of a firearm and smuggling, announced U.S. Attorney Brian T. Moran.  NATHAN BRASFIELD was arrested in February 2020 when agents seized 17 pistols and 24 rifles from his home—most of the firearms had been manufactured at his residence as ‘ghost guns’—guns without any serial numbers or registration.  At the sentencing hearing, U.S. District Judge Richard A. Jones said he was very concerned about the sheer volume of guns and silencers BRASFIELD possessed.  “You have your own perception of the 2nd Amendment.  Your perception is completely inconsistent with the law and will continue to land you in prison,” Judge Jones said.

“Undeterred by previous convictions and supervision from federal probation, this defendant built an arsenal of illegal weapons in his home and imported silencers from China,” said U.S. Attorney Moran.  “It is shocking conduct demonstrating this defendant’s abject refusal to follow the law.  I hope this prison time will break his cycle of lawlessness.” 

According to records filed in the case, in December 2019 Customs and Border Protection (CBP) inspected a package from China that was labeled “aluminum tubes.”  The package, addressed to BRASFIELD, actually contained five firearm silencers, which are illegal to possess under federal law.  In February 2020, agents executed a search warrant at BRASFIED’s residence and seized numerous home manufactured firearms that did not contain serial numbers.  These ‘ghost guns’ are illegal for BRASFIELD to possess.  Further, BRASFIELD illegally possessed more than 300 pounds of ammunition.  Agents also seized the gun manufacturing equipment known as a ‘ghost gunner.’  Ten illegal silencers were also seized.

“Brasfield’s sentencing today is a clear message to those who so blatantly disregard the law,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson.  “Convicted felons who are prohibited from owning firearms and attempt to skirt the law will be caught and prosecuted.”

“Brasfield has a lengthy criminal history and has shown time and time again that he has no regard for the law,” said Acting Special Agent in Charge of Homeland Security Investigations Seattle Eben Roberts.  “A repeat felon, caught in possession of an illegally modified automatic firearm, is nothing short of a recipe for disaster.  Brasfield, and criminals like him, should take today’s sentence as a stern warning.  HSI and our law enforcement partners, working together, will seek, investigate, and ultimately bring to justice all those who seek to disregard our nation’s laws.”

In 2015, BRASFIELD was convicted of being a felon in possession of a firearm and was sentenced to 48 months in prison.  He was on supervised release for that crime when he committed the current crimes.  Previously, BRASFIELD was prosecuted in state court for crimes ranging from burglary to possession of stolen property.  In 2002, he was arrested and prosecuted in state court for sending harassing messages as part of an effort to intimidate a person who was associated with animal research. 

The case was investigated by Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).

The case is being prosecuted by Assistant United States Attorney Thomas Woods.

Tacoma – The long-time operator of a guardianship business was sentenced today in U.S. District Court in Tacoma to one year and a day in prison and $256,336 in restitution for Social Security Representative Payee fraud, announced U.S. Attorney Brian T. Moran.  WAYNE JEROME HOUSTON, 61, of Port Ludlow, Washington, owned and operated Cross Point Services LLC, a guardianship organization for disabled and vulnerable adults.  Over the last seven years HOUSTON raided the accounts of 21 different clients.  At the sentencing hearing, U.S. District Judge Robert J. Bryan said, “[T]his is a very sad situation all the way around.”

“This was not only a fraud on the federal benefits system that is designed to provide a safety net for our most vulnerable, it was a fraud on the court which endeavors to protect such vulnerable elders,” said U.S. Attorney Moran.  “On each of the 240 times he transferred funds, withdrew cash, or wrote checks for his own benefit, this defendant betrayed the trust that had been placed in him.”

According to the plea agreement, HOUSTON and his company were responsible for managing the financial affairs of about two dozen clients a month.  HOUSTON had access to the clients’ bank accounts so he could pay rent, utilities, and other bills for them.  Social Security benefits were paid into some of the accounts for at least 13 clients who required a representative payee—HOUSTON—to manage their benefits.  Beginning in 2010, HOUSTON used his position as guardian to write checks from the victim accounts to himself, to Cross Point Services, or to cash, and used ATMs to withdraw money from client accounts and used it for his own expenses.  HOUSTON targeted clients who had significant income or resources so that the theft was less likely to be detected.  In all 21 clients suffered thefts, ranging from a low of $200 to more than $66,000 from one of the clients.

As retired Kitsap County Superior Court Judge Anna Laurie told the Court, “…the true victims may never be made whole.  At least two have died since his criminal conduct became visible, and many went months without sufficient resources while their successor guardians struggled to pay bills and maintain care.”

The granddaughter of one of the victims told the Court her 90-year-old grandfather “was left with nothing…He got ill and we had to fight for his care….  It was so hard having to tell him that once again he had been betrayed….  That he didn’t have any money to pay his bills because Mr. Houston had taken it.”

The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and the Kitsap County Sheriff’s Office.  The case is being prosecuted by Assistant United States Attorney Benjamin Diggs.

Seattle - The suspect in the theft of nearly 40 firearms from two different gun stores was sentenced today in U.S. District Court in Seattle to 58 months in prison for two counts of theft of firearms from a federal firearms licensee, announced U.S. Attorney Brian T. Moran.  JOEY A. MAILLET, 39, pleaded guilty in February 2020.  At the sentencing hearing, U.S. District Judge Richard A. Jones ordered MAILLET to serve three years of supervised release following the prison term.

In May 2019, MAILLET was identified as the suspect in the April 13, 2019, burglary of Fred’s Guns in Sequim, Clallam County, and in the May 3, 2019, burglary of All American Armory in Bow, Skagit County.  According to records filed in the case, forensic evidence, including blood and fingerprints, as well as surveillance video, link MAILLET to the crimes.  In Sequim, MAILLET used a backhoe to ram the doors of the store and then broke glass display cases to steal 26 firearms.  MAILLET cut his arm on the glass case and left blood and fingerprints at that scene.  At All American Armory in Bow, surveillance video showed MAILLET used a stolen pick-up truck to back into the doors of the store, shattering them.  MAILLET then used a garbage can, stolen from the neighboring post office, to load up 13 rifles from the store and drove away with them in the stolen pick-up. 

The pick-up truck was ultimately found abandoned in Birch Bay State Park in Whatcom County, Washington.  Shattered glass was in the truck bed, as well as a stolen boat motor and battery.  The truck was reported stolen from an agricultural operation not far from the Bow gun store, and the boat motor and battery were reported stolen by a resident of Ferndale, Washington.

On May 10, 2019, a Ferndale Police Officer encountered MAILLET and arrested him on an outstanding warrant for an Everett, Washington, burglary.  After obtaining a court-authorized search warrant, investigators determined items in MAILLET’s backpack linked him to the thefts at the Bow gun store.  Additionally, video from the boat motor and battery theft clearly showed MAILLET was the thief.

As for the status of the guns, prosecutors noted in their sentencing memo: “To date, seven of the handguns have been recovered by law enforcement agencies in Canada.  The government does not have the full information about these recoveries, but is aware that one was recovered from a woman arrested for theft in Vancouver, BC, and another was recovered from two men arrested in Calgary, AB, with about 250 fentanyl pills and several grams of methamphetamine.”  None of the rifles taken in the Bow gun store burglary have been recovered.

Under the terms of the plea agreement, MAILLET is to pay restitution to both stores for the damages to the buildings and the value of the guns.  MAILLET is also responsible for damages to the businesses from which he stole the truck and backhoe used in the burglaries.  He also will pay restitution to the owner of the stolen boat motor and battery.

At the sentencing hearing, the owners of Fred’s Guns told the judge the burglary had severely impacted their business and their family’s sense of security and wellbeing.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Clallam County Sheriff’s Office, Sequim Police Department, Washington State Patrol, Skagit County Sheriff’s Office, Ferndale Police Department, and Washington State Parks Rangers.

The case is being prosecuted by Assistant United States Attorney Erin H. Becker.

Seattle - A respiratory therapist at the Veterans Affairs Medical Center in Seattle pleaded guilty today in U.S. District Court in Seattle to theft of government property, announced U.S. Attorney Brian T. Moran.  GENE WAMSLEY, 41, of Bonney Lake, Washington, admits stealing a ventilator and other respiratory medical equipment in the midst of the COVID-19 pandemic and selling it for his own gain.  WAMSLEY faces up to ten years in prison when sentenced by U.S. District Judge James L. Robart on January 11, 2021.

According to records filed in the case, the investigation began in January 2020 when VAMC reported two bronchoscopes, used for examining a patient’s airway, went missing from the hospital.  A third bronchoscope was reported missing in April 2020.  In all, WAMSLEY admits stealing and selling three bronchoscopes worth over $100,000 for just $15,750.  WAMSLEY sold the scopes to a Florida resident via eBay.  When WAMSLEY’s home was searched in June, law enforcement seized a fourth bronchoscope and a $6,000 sleep apnea device called a WatchPat that had been stolen from the VA Medical Center.

Further investigation revealed that in April 2020, WAMSLEY also stole a $9,950 respirator and sold it via eBay to an Ohio man for just $6,000.

The total loss to the United States from the thefts is $132,291.

The case is being investigated by the Veterans Affairs Office of Inspector General (VA-OIG).  The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.

Seattle — Two leaders of one of the world’s most notorious videogame piracy groups, Team Xecuter, have been arrested and are in custody facing charges filed in U.S. District Court in Seattle.

MAX LOUARN, 48, a French national of Avignon, France, YUANNING CHEN, 35, a Chinese national of Shenzhen, China, and GARY BOWSER, 51, a Canadian national of Santo Domingo, Dominican Republic, were charged in a federal indictment unsealed today.  The indictment alleges the defendants were leaders of a criminal enterprise that developed and sold illegal devices that hacked popular videogame consoles so they could be used to play unauthorized, or pirated, copies of videogames.  The enterprise targeted popular consoles such as the Nintendo Switch, the Nintendo 3DS, the Nintendo Entertainment System Classic Edition, the Sony PlayStation Classic, and the Microsoft Xbox.

“These defendants were allegedly leaders of a notorious international criminal group that reaped illegal profits for years by pirating video game technology of U.S. companies,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “These arrests show that the department will hold accountable hackers who seek to commandeer and exploit the intellectual property of American companies for financial gain, no matter where they may be located.”

“These defendants lined their pockets by stealing and selling the intellectual property of other video-game developers–even going so far as to make customers pay a licensing fee to play stolen games,” said U.S. Attorney Brian Moran.  “This conduct doesn’t just harm billion-dollar companies, it hijacks the hard work of individuals working to advance in the video-game industry.”

“Theft of intellectual property hurts U.S. industry, game developers, and exploits legitimate gaming customers.  All of which threaten the legitimacy of the commercial video game industry,” said Eben Roberts, Acting Special Agent in Charge, Homeland Security Investigations, Seattle.  “We are committed to working with our international partners to find criminals like these who steal copyrighted material and bring cyber criminals to justice.”

“Imagine if something you invented was stolen from you and then marketed and sold to customers around the world.  That is exactly what Team Xecutor was doing,” said Raymond Duda, FBI Special Agent in Charge Seattle.  “This is a perfect example of why the FBI has made the prevention of the theft of intellectual property a priority.  These arrests should send a message to would-be pirates that the FBI does not consider these crimes to be a game.”

According to court documents, the Team Xecuter criminal enterprise is comprised of over a dozen individual members located around the world.  These members include developers who exploit vulnerabilities in videogame consoles and design circumvention devices; website designers who create the various websites that promote the enterprise’s devices; suppliers who manufacture the devices; and resellers around the world who sell and distribute the devices.  The indictment alleges that due to the illegal nature of its business, Team Xecuter continuously sought to evade enforcement efforts by victim companies, financial institutions, and law enforcement.  Notably, Team Xecuter attempted to protect its overall business by using a wide variety of brands, websites, and distribution channels, according to the indictment.  From approximately June 2013 through August 2020, Team Xecuter used a variety of product names for its devices, such as the Gateway 3DS, the Stargate, the TrueBlue Mini, the Classic2Magic, and the SX line of devices that included the SX OS, the SX Pro, the SX Lite, and the SX Core.  

According to the indictment, Team Xecuter at times cloaked its illegal activity with a purported desire to support gaming enthusiasts who wanted to design their own videogames for noncommercial use.  However, the overwhelming demand and use for the enterprise’s devices was to play pirated videogames.  To support this illegal activity, Team Xecuter allegedly helped create and support online libraries of pirated videogames for its customers, and several of the enterprise’s devices came preloaded with numerous pirated videogames.  According to the indictment, Team Xecuter was so brazen that it even required customers to purchase a “license” to unlock the full features of its custom firmware, the SX OS, in order to enable the ability to play pirated videogames. 

In September 2020, LOUARN and BOWSER were arrested abroad in connection with the charges in this case.  The United States will seek LOUARN’s extradition to stand trial in the United States.  BOWSER was arrested and deported from the Dominican Republic and appeared today in federal court in New Jersey.

Each defendant is charged with 11 felony counts, including conspiracy to commit wire fraud, wire fraud, conspiracy to circumvent technological measures and to traffic in circumvention devices, trafficking in circumvention devices, and conspiracy to commit money laundering. 

Conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering are each punishable by up to 20 years in prison.  Conspiracy and trafficking in circumvention devices are each punishable by up to 5 years in prison.  

The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case is being investigated jointly by the Federal Bureau of Investigation and Homeland Security Investigations. 

This case is being prosecuted by Assistant U.S. Attorneys Francis Franze-Nakamura and Brian Werner of the Western District of Washington, and Senior Counsel Frank Lin of the Justice Department’s Computer Crime and Intellectual Property Section, with significant and ongoing assistance from the Justice Department’s Office of International Affairs.  The Department appreciates the significant cooperation and assistance provided by its foreign government counterparts and the Government of the Dominican Republic, and Interpol Dominicana.

louarn_et_al_indictment.pdf

Two leaders of one of the world’s most notorious videogame piracy groups, Team Xecuter, have been arrested and are in custody facing charges filed in U.S. District Court in Seattle.

Max Louarn, 48, a French national of Avignon, France, Yuanning Chen, 35, a Chinese national of Shenzhen, China, and Gary Bowser, 51, a Canadian national of Santo Domingo, Dominican Republic, were charged in a federal indictment unsealed today.  The indictment alleges the defendants were leaders of a criminal enterprise that developed and sold illegal devices that hacked popular videogame consoles so they could be used to play unauthorized, or pirated, copies of videogames.  The enterprise targeted popular consoles such as the Nintendo Switch, the Nintendo 3DS, the Nintendo Entertainment System Classic Edition, the Sony PlayStation Classic, and the Microsoft Xbox.

“These defendants were allegedly leaders of a notorious international criminal group that reaped illegal profits for years by pirating video game technology of U.S. companies,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “These arrests show that the department will hold accountable hackers who seek to commandeer and exploit the intellectual property of American companies for financial gain, no matter where they may be located.”

“These defendants lined their pockets by stealing and selling the work of other video-game developers – even going so far as to make customers pay a licensing fee to play stolen games,” said U.S. Attorney Brian Moran for the Western District of Washington.  “This conduct doesn’t just harm billion dollar companies, it hijacks the hard work of individuals working to advance in the video-game industry.”

“Theft of intellectual property hurts U.S. industry, game developers and exploits legitimate gaming customers, all of which threaten the legitimacy of the commercial video game industry,” said Acting Special Agent in Charge Eben Roberts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Seattle.  “We are committed to working with our international partners to find criminals like these who steal copyrighted material and bring cyber criminals to justice.”

“Imagine if something you invented was stolen from you and then marketed and sold to customers around the world. That is exactly what Team Xecuter was doing,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office.  “This is a perfect example of why the FBI has made the prevention of the theft of intellectual property a priority. These arrests should send a message to would-be pirates that the FBI does not consider these crimes to be a game.”

According to court documents, the Team Xecuter criminal enterprise is comprised of over a dozen individual members located around the world.  These members include developers who exploit vulnerabilities in videogame consoles and design circumvention devices; website designers who create the various websites that promote the enterprise’s devices; suppliers who manufacture the devices; and resellers around the world who sell and distribute the devices. 

The indictment alleges that due to the illegal nature of its business, Team Xecuter continuously sought to evade enforcement efforts by victim companies, financial institutions, and law enforcement.  Notably, Team Xecuter attempted to protect its overall business by using a wide variety of brands, websites, and distribution channels, according to the indictment.  From approximately June 2013 through August 2020, Team Xecuter used a variety of product names for its devices, such as the Gateway 3DS, the Stargate, the TrueBlue Mini, the Classic2Magic, and the SX line of devices that included the SX OS, the SX Pro, the SX Lite, and the SX Core.  

According to the indictment, Team Xecuter at times cloaked its illegal activity with a purported desire to support gaming enthusiasts who wanted to design their own videogames for noncommercial use.  However, the overwhelming demand and use for the enterprise’s devices was to play pirated videogames.  To support this illegal activity, Team Xecuter allegedly helped create and support online libraries of pirated videogames for its customers, and several of the enterprise’s devices came preloaded with numerous pirated videogames.  According to the indictment, Team Xecuter was so brazen that it even required customers to purchase a “license” to unlock the full features of its custom firmware, the SX OS, in order to enable the ability to play pirated videogames. 

In September 2020, Louarn and Bowser were arrested abroad in connection with the charges in this case.  The United States will seek Louarn’s extradition to stand trial in the United States.  Bowser was arrested and deported from the Dominican Republic, and appeared today in federal court, in New Jersey.

Each defendant is charged with 11 felony counts, including conspiracy to commit wire fraud, wire fraud, conspiracy to circumvent technological measures and to traffic in circumvention devices, trafficking in circumvention devices, and conspiracy to commit money laundering. 

The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case is being investigated jointly by the FBI and HSI. 

This case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section Assistant U.S. Attorneys Francis Franze-Nakamura and Brian Werner of the Western District of Washington, with significant and ongoing assistance from the Justice Department’s Office of International Affairs.  The department appreciates the significant cooperation and assistance provided by its foreign government counterparts and the Government of the Dominican Republic, and Interpol Dominicana.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Seattle — U.S. Attorney Brian T. Moran today announced a nearly $500,000 Department of Justice grant to combat elder abuse and financial fraud targeted at seniors in a Western Washington Tribal community.  The grant, awarded by the Department’s Office of Justice Programs (OJP), is part of over $9 million in funding to support these efforts throughout the United States.  Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult.  Attorney General William P. Barr announced the awards on the 30th anniversary of the International Day of Older Persons.

“Predators who target older citizens for fraud, financial scams and physical abuse are particularly despicable, turning the golden years of our nation’s seniors into a period of poverty and suffering,” said Attorney General William P. Barr.  “The Department of Justice is taking aggressive action, pursuing all legal avenues to bring these criminals to justice and supporting law enforcement officials and service providers as they ferret out scam artists, arrest abusers, and bring aid and relief to victims.”

Under the direction of Attorney General Barr, the Department of Justice is attacking elder fraud and abuse from all sides.  A National Elder Justice Coordinator oversees the Department’s work to combat elder fraud, and each of the 94 U.S. Attorneys’ Offices has a prosecutor dedicated to addressing elder justice issues.  This past March, the Attorney General announced the results of the largest elder fraud sweep ever conducted, with prosecutors charging more than 400 defendants and the charged elder fraud schemes causing alleged losses of over a billion dollars.  Also in March, he launched a national initiative to pursue nursing homes that provide grossly substandard care and a National Elder Fraud Hotline managed by OJP’s Office for Victims of Crime.

“I’m pleased that the Muckleshoot Tribe will have these additional federal resources to protect their Elders from fraud and abuse,” said U.S. Attorney Moran.  “They join Alaska Native organizations, Universities, and non-profits across the country in developing programs to protect older adults.”

“With lockdowns in place across the country, older adults are especially vulnerable to fraud, neglect and abuse, and criminals have not hesitated to take full advantage,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan.  “These grants, which build on previous Department of Justice investments, will help to turn the tide of deception and predation and restore victims to fiscal security and physical safety.”

The Muckleshoot Indian Tribe received funding in the amount of $499,848.

More information about OJP and its components can be found at www.ojp.gov.

Seattle – U.S. Attorney Brian T. Moran today announced more than $17 million in Department of Justice grants to improve public safety, serve victims of crime, and support youth programs in tribal communities in the Western District of Washington.

“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr.  “The awards announced today underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States.  This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”

“These grants support a number of important programs in tribal communities, such as community policing, juvenile justice programs, drug treatment programs and services to victims of domestic violence,” said U.S. Attorney Moran.  “I’m pleased at the number of tribes in our community that successfully competed for these federal resources.”

A total of more than $103 million is being awarded to tribes across the country under the Justice Department’s Coordinated Tribal Assistance Solicitation (CTAS).  CTAS supports activities that enhance law enforcement and tribal justice practices, expand victim services, and sustain crime prevention and intervention efforts.  CTAS grants are administered by the Department’s Office of Justice Programs (OJP) ($41.5 million), Office on Violence Against Women (OVW) ($39.1 million), and Office of Community Oriented Policing Services (COPS) ($22.5 million).

An additional $113 million is being awarded to 133 applicants nationwide under the Tribal Victim Services Set-Aside Program.  This program, managed by OJP’s Office for Victims of Crime, is designed to help tribes develop, expand, and improve services to victims of crime and promote other public safety initiatives.

“Public safety officials and victim service providers in Indian country face exceptional challenges, but they bring to their work an extraordinary array of skills and resources that enable them to meet and overcome any obstacle,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan.  “The Office of Justice Programs is proud to help fulfill Attorney General Barr's strong commitment–and the federal government's long-standing responsibility–to our tribal partners in the matter of their citizens' safety and wellbeing.”

In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women is making additional tribal awards of more than $31 million to support a wide range of efforts to address the crimes of domestic violence, dating violence, sexual assault, stalking, and human trafficking.

“OVW’s funding supports Native American and Alaska Native communities as they work across their communities to prevent and respond to gender-based violence,” said OVW Principal Deputy Director Laura L. Rogers.  “These awards represent the strong commitment that OVW has made to help protect the most vulnerable members of tribal communities.”

Additional awards to support tribal public safety efforts are being made by OJP and the COPS Office.  These grants will provide community policing training and other training and technical assistance.  Awards will also address the needs of tribal youth, fund tribal reentry efforts, help tribes combat substance abuse and manage sex offenders, and support tribal research.  In addition, funds support efforts in 17 tribal communities to address the challenges posed by the outbreak of COVID-19.

“Ensuring our nation’s tribal communities have the resources they need is paramount for the COPS Office and the Department of Justice,” said COPS Office Director Phil Keith.  “These awards are a critical component to the overall public safety strategy for tribal law enforcement and the COPS Office is honored to provide vital resources to hire more sworn officer positions, advance tribal training, and procure equipment needed to keep communities safe.”

The following tribes in the Western District of Washington received funding under the CTAS program:

Lower Elwha Klallam - $1,431,557

Makah - $122,513

Nooksack - $197,634

Port Gamble S’Klallam - $1,798,712

Puyallup - $399,564

Quileute - $888,057

Skokomish -$669,661

Squaxin -$800,013

Tulalip - $897,977

A full listing of all the announced CTAS awards is available here.

The tribes receiving grants for victim services include:

Tulalip - $1,188,088

Lummi - $898,000

Squaxin - $497,709

Nisqually - $694,581

Nooksack -$505,795

Shoalwater Bay -$417,336

Jamestown S’Klallam -$417,336

Skokomish - $505,795

Suquamish- $694,696

Quinault -$3,000,000

Puyallup -$1,353,631

A full listing of all Tribal Victim Services Set-Aside Program awards is available here.

 

Seattle — A 63-year-old Renton, Washington, man pleaded guilty today in U.S. District Court in Seattle to lying to federal agents about a fraud scheme carried out by a former Drainage District Commissioner and his wife, announced U.S. Attorney Brian T. Moran.  DARRELL N. WINSTON pleaded guilty to making a false statement and faces up to five years in prison when sentenced by U.S. District Judge Richard A. Jones on December 18, 2020. 

According to the plea agreement, WINSTON repeatedly misled FBI agents about his agreement with and work for former Drainage District Commissioner Allan Thomas and his wife.  WINSTON operated a business called City Biz and originally told agents he had submitted a bid and been hired by Thomas to clean some of the drainage ditches in the district.  In fact, WINSTON and his company did little or no work, but were paid more than $50,000 by King County based on fake invoices.  WINSTON paid most of the money back to Allan Thomas and his wife, and the two used the money for their own benefit.  WINSTON lied to investigators on multiple occasions.

Last month, the grand jury returned a superseding indictment against Allan B. Thomas and Joan B. Thomas charging them with 15 federal crimes, including conspiracy, mail fraud, wire fraud, money laundering, and aggravated identity theft in connection with their six-year scheme to divert more than $400,000 in local tax dollars to their own use.

Allan B. Thomas served as Commissioner for Drainage District 5 in King County for more than 35 years.  As a Commissioner, Thomas was involved in estimating the costs of drainage maintenance for the district so that the county auditor could set and assess the appropriate taxes.  The Commissioners then authorized payment to service providers who were supposed to do maintenance work on the drainage system.

As early as 2012, Joann Thomas set up a joint bank account with Allan Thomas’ son from a previous marriage.  The account was a business account for a company called A C Services.  Over the next six years, Allan Thomas had $413,323 of local tax dollars paid to A C Services claiming it was for drainage ditch maintenance.  However, financial records indicate that over the six years, shortly after the tax dollars were deposited into the A C Services account, the money was quickly transferred to other accounts belonging to the Thomases, or was used to pay their expenses for such things as hay, mortgage payments, or property taxes.  More than $70,000 was withdrawn as cash.

In 2018, after the couple became aware of an investigation into their conduct, they began funneling the tax dollars through WINSTON’s company, City Biz.

In all, the indictment alleges the THOMASES defrauded taxpayers of $468,165.

The charges contained in the Thomas indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

Mail fraud, wire fraud, and money laundering are punishable by up to 20 years in prison.  Conspiracy is punishable by five years in prison.  Aggravated identity theft is punishable by two years in prison to follow any sentence imposed on other counts of conviction.

The FBI and IRS - Criminal Investigation are leading the investigation with assistance from the Enumclaw Police Department.  The Enumclaw City Attorney initiated the review of the district finances.  The Washington State Auditor’s Office also conducted an audit of the district in 2019.  The King County Prosecuting Attorney’s Office, in consultation with the U.S. Attorney’s Office, determined the case was appropriate for federal prosecution.

The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Andrew Friedman.

Tacoma — One of two men charged in a scheme to steal maple wood that resulted in a massive 2018 forest fire on the Olympic Peninsula was sentenced to prison today in U.S. District Court in Tacoma, announced U.S. Attorney Brian T. Moran.  SHAWN EDWARD WILLIAMS, 49, was sentenced to 30 months in prison and three years of supervised release for theft of public property and setting timber afire.  At the sentencing hearing, U.S. District Judge Benjamin H. Settle said that “the consequences of your actions . . . resulted in horrendous consequences to the forests.”    

According to records filed in the case, between April and August 2018, lead defendant Justin Andrew Wilke conducted an illegal logging operation in the Elk Lake area of the Olympic National Forest, near Hood Canal.  In July 2018, just days after his release from state prison, WILLIAMS joined the conspiracy, helping Wilke remove maple from the National Forest and transporting it with Wilke to a mill in Tumwater, Washington.  The type of maple harvested by the defendants is highly prized and used to produce musical instruments. 

On August 3, 2018, the group decided to cut a maple tree that contained a wasp’s nest near the base of the tree.  To remove the nest, the group sprayed insecticide and gasoline on the nest and base of the tree and then lit the nest on fire.  The group failed to extinguish the fire, which developed into a wildfire later named the “Maple Fire.”  The Maple Fire consumed more than 3,300 acres between August and November 2018 and cost approximately $4.2 million to contain.  WILLIAMS did not himself set the fire, but was present when others set the fire.

WILLIAMS pleaded guilty in December 2019.

In their sentencing memo, prosecutors highlighted the danger of Wilke and WILLIAMS’s conduct.  “Forest fires present a dire and growing threat in this region.  They destroy our forests, poison our air, and endanger responders, local residents, recreationalists, and wildlife.  When this fire occurred in early August 2018, the Puget Sound region was (as it is today) already experiencing significant smoke from existing wildfires, and the high risk of fire was evident to everyone in Western Washington.  Despite this atmosphere, Williams participated in taking the extreme risk of setting fire to a portion of a tree—deep in the forest, in mid-summer.  The consequences of that decision—thousands of acres burned, millions of dollars in containment costs, and the release of huge amounts of smoke—were easily foreseeable.”

The case was investigated by the United States Forest Service.  The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Will Dreher.

Seattle - Six people have been indicted by a Grand Jury in the Western District of Washington with conspiring to pay over $100,000 in commercial bribes to Amazon employees and contractors, in exchange for an unfair competitive advantage on the Amazon Marketplace, announced U.S. Attorney Brian T. Moran.  EPHRAIM ROSENBERG, 45, of Brooklyn, New York; JOSEPH NILSEN, 31, and KRISTEN LECCESE, 32, of New York, New York; HADIS NUHANOVIC, 30, of Acworth, Georgia; ROHIT KADIMISETTY, 27, of Northridge, California; and NISHAD KUNJU, 31, of Hyderabad, India, are charged with conspiracy to use a communication facility to commit commercial bribery, conspiracy to access a protected computer without authorization, conspiracy to commit wire fraud, and wire fraud.  The defendants will make their initial appearances in U.S. District Court in Seattle on October 15, 2020.

“As the world moves increasingly to online commerce, we must ensure that the marketplace is not corrupted with unfair advantages obtained by bribes and kick‑backs,” said U.S. Attorney Brian T. Moran.  “The ultimate victim from this criminal conduct is the buying public who get inferior or even dangerous goods that should have been removed from the marketplace.  I commend the investigators and cybersecurity experts who have worked to identify and indict those engaged in these illegal schemes.”

“Realizing they could not compete on a level playing field, the subjects turned to bribery and fraud in order to gain the upper hand.  What's equally concerning, not only did they attempt to increase sales of their own products, but sought to damage and discredit their competitors,” said Raymond Duda, Special agent in charge, FBI Seattle.  “This indictment should send a message that the FBI will not sit on the sidelines while criminals try to cheat their way to the top.”

According to the Indictment, since at least 2017, the defendants have used bribery and fraud to benefit merchant accounts on the Amazon Marketplace, resulting in more than $100 million of competitive benefits to those accounts, harm to competitors, and harm to consumers.  More specifically, the Indictment alleges that the defendants served as consultants to so-called third-party (“3P”) sellers on the Amazon Marketplace.  Those 3P sellers consisted of individuals and entities who sold a wide range of goods, including household goods, consumer electronics, and dietary supplements on Amazon’s multi-billion-dollar electronic commerce platform.  In addition to providing consulting services to these 3P sellers, some of the defendants, including NILSEN, LECCESE, and NUHANOVIC, made their own sales on the Amazon Marketplace through 3P accounts they operated. 

In the course of the conspiracy described in the Indictment, the defendants paid bribes to at least ten different Amazon employees and contractors, including KUNJU, who accepted bribes as a seller-support associate in Hyderabad, India, before becoming an outside consultant who recruited and paid bribes to his former colleagues.  In exchange for those bribes, the corrupted employees and contractors took the following illicit steps:

• Reinstating suspended merchant accounts and product listings on the Amazon Marketplace:  The corrupted employees and contractors helped reinstate products and merchant accounts that Amazon had suspended or blocked entirely from doing business on the Amazon Marketplace.  The fraudulently reinstated products included dietary supplements that had been suspended because of customer-safety complaints, household electronics that had been flagged as flammable, consumer goods that had been flagged for intellectual-property violations, and other goods.  The fraudulently reinstated accounts included accounts that Amazon had suspended for manipulating product reviews to deceive consumers, making improper contact with consumers, and other violations of Amazon’s seller policies and codes of conduct.  The Indictment describes a variety of ways in which corrupted employees and contractors misused their positions to reinstate these accounts, including by manually reinstating product listings, and approving baseless and fraudulent merchant appeals that they themselves helped draft.  In total, after their fraudulent reinstatement, the products and merchants earned in excess of $100 million in sales revenue.
• Facilitating attacks against competitors:  The corrupted employees and contractors facilitated attacks against competitors’ 3P accounts and product listings, by (a) sharing competitive intelligence about competitors’ revenues, customers, advertising campaigns, and suppliers; (b) using their inside access to Amazon’s network to suspend competitors’ 3P accounts; and (c) providing consultants with information about Amazon’s internal algorithms, which allowed the consultants to flood competitors’ product listings with fictitious negative product reviews. 
• Misappropriating Amazon’s highly confidential business information:  The corrupted employees and contractors also provided consultants and 3P sellers with unauthorized access to Amazon’s highly confidential standard operating procedures and algorithms.  These materials provided an obvious, unfair, competitive benefit to 3P sellers, by giving them coveted insight into the systems that power Amazon’s search engine, Amazon’s product reviews, and Amazon’s enforcement processes.  The misappropriated data also included the contact information for Amazon employees and consumers, which the members of the conspiracy misused and shared widely.
• Circumventing Amazon’s internal limits on 3P accounts:  The corrupted employees and contractors conveyed exclusive benefits that circumvented Amazon’s rules and regulations.  In exchange for bribes, they increased 3P sellers’ storage limits in Amazon’s warehouses, facilitated 3P sellers’ otherwise meritless requests to sell products in restricted categories, and provided 3P sellers with inside knowledge about the most successful advertising campaigns and most profitable product listings.

Conspiracy to use a communication facility in furtherance of commercial bribery, and to gain unauthorized access to a protected computer is punishable by up to five years in prison and a $250,000 fine. 

Conspiracy to commit wire fraud, and wire fraud, are punishable by up to 20 years in prison and a $250,000 fine.

The case is being investigated by the Federal Bureau of Investigation (FBI), with assistance from the Internal Revenue Service-Criminal Investigations, and the Department of Justice Office of International Affairs.

The case is being prosecuted by Assistant United States Attorneys Siddharth Velamoor and Steven Masada. 

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Statement of U.S. Attorney Brian T. Moran:

“Throughout this lengthy period of civil unrest, I have had multiple conversations with Department of Justice leadership.  They have asked for information about protest activity devolving into violence, about federal interests implicated by the Capitol Hill Organized Protest, and about the cases filed in this District regarding federal crimes.  At no time has anyone at the Department communicated to me that Seattle Mayor Jenny Durkan is, was, or should be the subject of a criminal investigation or should be charged with any federal crime related to the Capitol Hill Organized Protest (CHOP).  As U.S.  Attorney I would be aware of such an investigation. 

My office continues to work collaboratively with state and local law enforcement, including the Seattle Police Department, to prosecute federal crimes such as arson, weapons violations and the use of destructive devices.  Those cases are traditionally an area of focus for federal law enforcement.  The goal of my office is to strongly deter criminal acts that have no place alongside, and only endanger, those who choose to engage in constitutionally protected speech.”  

(Seattle)—A 32-year-old Auburn, Washington, man was arrested today and charged federally with being a felon in possession of a firearm, announced U.S. Attorney Brian T. Moran.  AL M. TALAGA was arrested without incident late yesterday.  He is scheduled to appear in U.S. District Court in Seattle at 2:00 today.

According to the criminal complaint, on June 1, 2020, Seattle Police officers responded to reports of a break-in and looting at the Sneaker City store on Pike Street in downtown Seattle.  When police arrived, various suspects were running away from the store.  Witnesses said some of the looters had loaded merchandise into a Dodge Magnum that was parked near the store.  In checking the car for suspects, police officers noted a number of items that appeared to have been taken from the store, as well as a firearm in the driver’s side door panel of the car.

Police impounded the car and traced its ownership to TALAGA.  A court-authorized search of the car revealed that there were two firearms in the car.  In addition to the loaded .40 caliber Glock in the side pocket of the door, investigators found a second loaded handgun under the floor mat on the passenger side of the car.  A law enforcement database check verified that the .40 caliber pistol under the floor mat had been reported stolen in 2019 from a residence in Tacoma during a home invasion robbery.

TALAGA is prohibited from possessing firearms due to a 2005 conviction in King County Superior Court for Second Degree Robbery.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

Being a felon in possession of a firearm is punishable by up to five years in prison.

The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).

The case is being prosecuted by Assistant United States Attorney Kate Crisham.

Seattle – A 41-year-old Renton, Washington, woman pleaded guilty today in U.S. District Court in Seattle to three federal felonies related to a scheme to purchase firearms and illegally provide them to other people, announced U.S. Attorney Brian T. Moran.  SHANNON McCALL pleaded guilty to conspiracy to violate the Gun Control Act, making a false statement to a government agent, and making a false statement in connection with the acquisition of a firearm.  Sentencing before U.S. District Judge James L. Robart is scheduled for December 7, 2020.

According to records filed in the case, between August 2017 and January 2019, McCALL admitted that she illegally purchased six firearms from Ben’s Loan Inc., a federally licensed firearm dealer in Renton.  On purchase paperwork, McCALL lied and said she was the ultimate purchaser of the firearms, when in fact she purchased the firearms for others.  Both McCALL and her son were involved in the scheme.  In court filings in his case, prosecutors note that her son modified some of the firearms to be automatic weapons and provided firearms to members of violent street gangs, one of whom had just been released from prison.  McCALL told investigators that she did not know how the firearms were used after she purchased them for her son.  McCALL purchased a firearm for another person, in her name, in exchange for a $200.00 payment.

When McCALL was questioned by agents about her firearms purchases, she initially lied and said the guns were being stored by “Uncle James”–a person she now admits does not exist. 

Conspiracy to violate the Gun Control Act and making a false statement to a government agent are each punishable by up to five years in prison.  Making a false statement in connection with the acquisition of a firearm is punishable by up to ten years in prison.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes.  Project Guardian ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  More information about Project Guardian is here.

The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).  The case is being prosecuted by Assistant United States Attorney Jessica Manca.

Seattle- A 36-year-old member of the Tulalip Tribes was sentenced today in U.S. District Court in Seattle to 37 months in prison and 3 years of supervised release for assault resulting in serious bodily injury arising from a high-speed crash, announced U.S. Attorney Brian T. Moran.  HERMAN JAMES JOHN III pleaded guilty in February 2020 in connection with the July 8, 2019, high-speed crash into another vehicle on the Tulalip Reservation.  At the sentencing hearing, U.S. District Judge James L. Robart noted that JOHN was no longer a young man and has a long pattern of criminal conduct.  He expressed hope that JOHN would take advantage of the resources available to him and responsibility for turning his life around.

According to records filed in the case, JOHN had been excluded from the Tulalip Reservation because of criminal conduct.  JOHN admits he had used methamphetamine and heroin earlier in the day.  When Tulalip Tribal Police attempted to pull JOHN over, he raced away at high speed, lost control of his car, and crashed head on into another car.  The two Tulalip tribal members in the other car were severely injured and continue to recover from their injuries.  The investigation revealed that JOHN had been traveling 78 miles per hour in a 35-mile-per-hour zone immediately before the crash.

The case was investigated by the Tulalip Tribal Police, the Snohomish County Sheriff’s Office, and the FBI.

The case was prosecuted by Assistant United States Attorney J. Tate London.

Tacoma – A 39-year-old New Port Ritchey, Florida, man is in federal custody tonight charged with production of child pornography and enticement of a minor, announced U.S. Attorney Brian T. Moran.  SAMUEL AARON LEONARD was arrested July 2, 2020, in Vancouver, Washington, just outside the home of the 14‑year-old girl he had spent months enticing online for sexual abuse.  LEONARD had allegedly communicated with the girl on a number of social media platforms and represented to the girl that he was 20 years old.  LEONARD will make his initial appearance in U.S. District Court in Tacoma at 2:30 today.

According to the criminal complaint, LEONARD contacted the girl via a social media platform around April 1, 2020.  Over the next few months, LEONARD communicated with the girl on various social media sites and sent her a cell phone so that they could communicate by text and telephone.  Unbeknownst to the girl, LEONARD had installed tracking and surveillance software in the phone so that he could monitor her location and read her texts and emails.  LEONARD turned the conversations with the girl to a sexual nature and convinced her to send various sexually explicit photos.  The girl’s guardians became aware of the communication and contacted Kalama Police in late June 2020.  Law enforcement immediately seized both phones that the teen had been using to communicate and had an undercover officer take over the communication.  Analyzing the communications and the cell phone information, the investigation revealed that LEONARD had traveled from Florida to the Vancouver area via bus and was within a short bike ride of the girl’s home.  When the officer, posing as the girl, revealed that the girl’s guardian had taken the phone LEONARD had sent to her, LEONARD said he would get her a new one.  Police surveilled LEONARD as he took a newly purchased phone, hid it in a package, and tossed the package over the fence to the girl’s backyard.  LEONARD was arrested shortly afterwards.

A search of LEONARD’s hotel room revealed that he had a firearm and ammunition, four folding survival knives, a survival axe, and a number of items used to restrain someone, such as ten sets of flex cuffs and two sets of metal handcuffs, as well as duct tape and electrical tape.  He also had various sex toys and lubricants.

Production of child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison.  Enticement of a minor is punishable by a mandatory minimum 10 years in prison and up to life in prison.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by Homeland Security Investigations (HSI), the Vancouver Police Department, and Kalama Police Department.

The case is being prosecuted by Assistant United States Attorney Angelica Williams with assistance from the Clark County Prosecuting Attorney’s Office.

Seattle - A 20-year-old Edmonds, Washington, man was charged today in U.S. District Court in Seattle with two counts of arson and two counts of unlawful possession of a destructive device for his activities at a protest that turned violent in downtown Seattle, announced U.S. Attorney Brian T. Moran.  KELLY THOMAS JACKSON was arrested this morning and will appear in U.S. District Court at 2:00 today.

“The U.S. Attorney’s Office continues to work closely with state, local and federal law enforcement to prosecute those who turn protected speech into violent criminal conduct,” said U.S. Attorney Brian Moran.  “Not every criminal act will implicate a federal interest, but where there is federal jurisdiction we will use our tools to hold law-breakers accountable.”

“These individuals are hijacking legitimate First Amendment protected activity. By investigating this violent activity, the messages of peaceful protests have a better chance of being heard,” said Raymond Duda, Special Agent in Charge FBI Seattle.

According to records filed in the case, following a May 30, 2020, demonstration in downtown Seattle, law enforcement was investigating a number of criminal acts, including the arson of a number of Seattle Police vehicles.  Law enforcement has various videos of a white male suspect in distinctive clothing using glass containers with a flammable material and a wick to burn or attempt to burn two police vehicles.  JACKSON was identified as a potential suspect in the case after an anonymous tip to law enforcement.  A detailed review of videos from the scene confirmed the suspect resembled JACKSON.  Further, a court-authorized analysis of cell phone records placed JACKSON in the area at the time of the fires.  JACKSON was observed wearing the same distinctive clothing as in the videos.  Finally, additional evidence obtained by law enforcement includes a video of the suspect (JACKSON) throwing one Molotov cocktail into a police vehicle, another video of a glass bottle with a wick, and information that JACKSON accessed web-based information on how to construct Molotov cocktails.  The second Molotov cocktail was thrown at the windshield of a police vehicle, bounced off, and exploded in flames on the sidewalk outside the Nordstrom store. 

Arson is punishable by a mandatory minimum five years in prison and up to 20 years in prison.  Possession of a destructive device is punishable by up to ten years in prison.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Seattle Police Department, the Edmonds Police Department and the Mountlake Terrace Police Department.

The case is being prosecuted by Assistant United States Attorney Todd Greenberg.

 

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Seattle – A 24-year-old Everett resident appeared in U.S. District Court in Seattle today charged with possession of a stolen firearm in connection with a high-powered rifle taken during a downtown Seattle riot on May 30, 2020, announced U.S. Attorney Brian T. Moran.  JACOB D. LITTLE was captured by both Seattle Police surveillance photos and images posted online with the large bag used to store the Colt M4 rifle with a suppressor.  The rifle still has not been recovered.

Using not only the images captured of the riot scene, but tips from the public, Seattle Police investigators linked LITTLE to the stolen firearm.  Images show a man that appears to be LITTLE removing the heavy bag from a Seattle Police vehicle parked outside the downtown Nordstrom store.  The vehicles were heavily damaged and ultimately burned by rioters.  The investigation reveals that in electronic messages following the theft, LITTLE appears to be negotiating the sale of the firearm.  He states in the messages that he has removed the sling and suppressor and the “red dot” (a type of optical sight) from the rifle.  All those accessories were present on the rifle when stolen from the Seattle Police vehicle.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

Possession of a stolen firearm is punishable by up to ten years in prison and a $250,000 fine.

The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Snohomish County Violent Offender Task Force and the United States Marshals Service.  The case is being prosecuted by Assistant United States Attorney Kate Crisham.

 

(Tacoma) - A former Tacoma resident, who was residing in South Bend, Indiana, at the time of his arrest, pleaded guilty today in U.S. District Court in Tacoma to production of child pornography, announced U.S. Attorney Brian T. Moran.  SAMUEL PHILLIPS, 27, faces a mandatory minimum 15 years in prison and up to 30 years in prison when sentenced by U.S. District Judge Benjamin Settle on December 7, 2020.

According to the plea agreement, in March 2018, PHILLIPS was residing in a Tacoma apartment with a child under the age of 5, when he made video recordings of the sexual abuse.  PHILLIPS relocated to Indiana in early 2019.  His spouse discovered the videos on his phone.  PHILLIPS was arrested by South Bend Police, who alerted the Tacoma Police Department.  PHILLIPS was charged federally with production of child pornography on April 30, 2019.  He is charged in state court with sexual abuse of the child.

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

The case was investigated by the Tacoma Police Department and FBI, with assistance from the South Bend, Indiana, Police Department.

The case is being prosecuted by Assistant United States Attorney Angelica Williams.

(Seattle) - A 36-year-old Seattle man was arrested today and appeared in U.S. District Court in Seattle for making a threat to damage or destroy a building–in this case a Portland, Oregon, police precinct, announced U.S. Attorney Brian T. Moran.  KYLE ROBERT TORNOW is accused of using an online communication system to claim he had planted explosives at a Portland, Oregon, Police precinct.

According to records file in the case, on July 24, 2020, TORNOW allegedly used the Portland Police TrackIT system to send a message claiming he had planted an explosive at one of the city’s police precincts.  Using an alias, TORNOW claimed he had planted a bomb that was “undetectable” to canine searchers and that if he were caught, “others will take my place and immediately detonate the bomb.”  The communication claimed it was a “felony threat” and needed to be taken “seriously to avoid death.”

FBI agents were able to trace the communications back to TORNOW, and he was arrested without incident this morning.

Making a threat to damage or destroy a building is punishable by up to ten years in prison and a $250,000 fine.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the FBI.  The case is being prosecuted by Assistant United States Attorney Thomas Woods.

 

(Seattle) - The third major drug ring takedown in as many months resulted in 14 arrests today of members of the drug trafficking network.  U.S. Attorney Brian T. Moran and DEA Special Agent in Charge Keith Weis announced the culmination of these three wiretap investigations.  Those arrested today will appear in U.S. District Court in Seattle at 2:00.

“With this third law enforcement takedown in six weeks, we continue to root out those who seek to poison our communities with fentanyl, heroin and methamphetamine,” said U.S. Attorney Moran.  “Despite the challenges of tracking criminal activity during a pandemic, the dedicated men and woman of law enforcement continue to investigate and interdict drug shipments while building legal cases against these defendants.”

“Even during this Covid-19 crisis, these alleged drug traffickers preyed on Washingtonians, using extraordinary violence to increase their wealth and power,” said DEA Acting Administrator Timothy J. Shea. “However, as this operation shows, DEA and our law enforcement partners will never stop working – even during a global pandemic – to protect the communities we serve.  Operation Lockdown successfully removed a number of violent drug traffickers from the streets of the Seattle-Tacoma area, and will enable these communities to focus on what matters most – the health and safety of their loved ones.”

“With today’s operation we have surpassed 60 arrests of members of highly organized transnational groups with tentacles reaching from Mexico to Puget Sound.  They profit by pushing extremely dangerous narcotics such as methamphetamines, heroin and the worst of the worst – fentanyl,” said DEA Special Agent in Charge Keith Weis. “With our partners, even before today’s action, we took over 300 pounds of methamphetamine, 55 pounds of heroin, 41,200 fentanyl pills, 30 firearms; and more than $1. 3 million in drug trafficker assets off the streets. The dealers of these drugs are responsible for increasing levels of violence, addiction and overdose deaths in our communities.”

Today’s arrests come on the heels of two other major drug takedowns: On August 5, 2020, law enforcement rolled up a drug trafficking ring that distributed large amounts of fentanyl, heroin and meth in the Seattle area and North Puget Sound region.  During that investigation law enforcement seized more than14 pounds of heroin and 15 pounds of methamphetamine.

On July 28, 2020, law enforcement arrested 13 people named in an indictment for drug trafficking connected to the violent CJNG Mexican cartel.  Much of the drug trafficking activity in that case was in the South Sound region, including the Kitsap Peninsula.  More than 100 pounds of meth were seized in that investigation, and law enforcement had to intervene at times when they heard threats being made over the wire to enforce cartel rules with violence.

Today’s takedown involves drug defendants who distributed fentanyl, meth and heroin in Seattle and North Puget Sound communities.  They discussed or conducted their drug deals in a wide variety of locations, such as a Mexican restaurant in Kent, a bank parking lot at the Northgate shopping mall and a 7-11 in Snohomish County.  The members of the drug distribution ring were frequently armed – one was pulled over after waving a firearm at another vehicle on I-5 North near Bellingham.  In December 2019, law enforcement seized 10 kilos of methamphetamine, 1,000 fentanyl-tainted pills and a loaded firearm from the lead defendant in this case.

Those named in the indictments or taken into custody on criminal complaints week include:

Gonzalo Villasenor, 23, Lynnwood

Julio Cesar Ramirez-Meneses, 32, Kent

Jocelyn Leyva-Castellanos, 21, Lynnwood

Edgar Efren Olivas-Armenta, 43, Edmonds

Rozzy Marie McGee, 34, Everett

Emanuel Campos-Pantoja, 23, SeaTac

Francisco Javier Carrillo, 33, Marysville

Anthony Michael Shepherd, 33, Marysville

Julius B. Supnet, 27, Edmonds

Jesus Israel Tapia-Alvarado, 24, Bellevue

Bryan Michael Pollestad, 33, Everett 

Travis Eugene Keel, 52, Everett  

Laura Rodriguez-Moreno, 44, Marysville

Jose Morales-Flores, 39, Marysville

Omar Israel Morales, 18, Marysville

Joaquin Guerrero-Serrano, 34, Marysville

Gerardo Arias-Garcia, 32, Renton

Samantha Hernandez, 38, Lynnwood

Lionel Gonzalez-Torres, 24, Burlington

Jesus Daniel Lerma-Jaras, 40, Everett  

Prior to today’s takedown law enforcement seized more than 8,000 pills tainted with suspected fentanyl, 22 pounds of heroin, 70 pounds of methamphetamine, one kilo of cocaine, two firearms and approximately $500,000 cash in drug proceeds.  Today, law enforcement seized: 36 pounds of heroin, 1,600 suspected fentanyl pills, a pound of methamphetamine, and seven firearms.

“I’m grateful for the dozens of arrests and the seizure of many pounds of illegal drugs, including thousands of pills likely tainted with fentanyl,” Seattle Police Chief Adrian Diaz said Tuesday.  “What’s far more difficult to count; the number of lives saved and the number of parents who have been spared the trauma of burying their child, thanks to the on-going partnerships between local and federal law enforcement agencies.”

“The Skagit County Interlocal Drug Task Force is pleased to have played a small role in this larger multi-jurisdictional law enforcement effort that will have a significant and sustained impact on the organized drug trade in Washington State,” said Tobin Meyer, Chief Criminal Deputy, Skagit County Sheriff’s Office

Due to the amount of narcotics involved in this case, some defendants face a mandatory minimum ten years in prison.

The charges contained in the indictments and complaints are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was conducted by the U.S. Drug Enforcement Administration (DEA), Snohomish Regional Drug Task Force, Seattle Police Department, Federal Bureau of Investigation and the Skagit Interlocal Drug Enforcement Unit.  The investigation was supported by the High Intensity Drug Trafficking Area (HIDTA). 

In addition, to the agencies listed above, these law enforcement agencies assisted with arrests and search warrants executed today:  Snohomish County Sherriff’s Office, Everett Police Department, Marysville Police Department, Skagit County Sherriff’s Office, Valley SWAT, Region 1 SWAT, North Sound Metro SWAT, Olympic Peninsula Narcotic Enforcement Team, Washington State Patrol, King County Sherriff’s Office, Auburn Police Department, Kent Police Department, Federal Way Police Department, Shoreline Police Department, Renton Police Department, Bothell Police Department, Lake Stevens Police Department, Mountlake Terrace Police Department, Arlington Police Department, Snoqualmie/North Bend Police Department, Burien Police Department, Tacoma Police Department, DEA Special Response Team, Homeland Security Investigations (HSI), United States Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

The case is being prosecuted by Assistant United States Attorneys Stephen P. Hobbs and C. Andrew Colasurdo.