Western District of Washington

Seattle– The Department of Justice today announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local and tribal governments to apply immediately for these critical funds. The department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.

 

“As we all do our part to stop the spread of this virus, support for law enforcement is critical,” said U.S. Attorney Brian T. Moran.  “These funds can help pay for protective gear to keep them safe, while they do their work to keep our communities safe.”

 

“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to the Congress for making these resources available and for the show of support this program represents.”

The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.

Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.

For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://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.

Seattle – U.S. Attorney Brian Moran of the Western District of Washington today announced that nearly $60 million in Department of Justice grants is available to help communities address public safety by supporting successful reentry of adult and juvenile offenders into their communities.

“It is critically important that we help those who have served their time transition to a law abiding life following prison,” said U.S. Attorney Moran.  “These grant opportunities build on the reforms of the First Step Act and make our communities safer by breaking the cycle of recidivism.”

“Our nation is facing difficult public safety challenges that demand strong and immediate action. The high rate of recidivism poses a dire threat to community safety and is being met with a robust response by this Administration,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this persistent challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.” 

The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including adult and juvenile reentry initiatives and research projects designed to improve our knowledge of what works in reentry programming.  

A number of funding opportunities are currently open, with several more opening in the near future.  

Correctional Adult Reentry Education, Employment, and Recidivism Reduction Strategies Program  

Total Available $7.2 million    Deadline 4/27/2020

Improving Community Supervision Outcomes Through Swift, Certain, and Fair Responses  

Total Available $3 million    Deadline 4/28/2020

Improving Reentry for People with Substance Use Disorders Program  

Total Available $13.2 million    Deadline 4/27/2020 

Innovations in Reentry Initiative: Building System Capacity & Testing Strategies to Reduce Recidivism  

Total Available $4 million    Deadline 5/4/2020

Research and Evaluation on Promising Reentry Initiatives 

Total Available $6 million     Deadline 5/5/2020  

Review and Validation of the First Step Act Risk Assessment Tool 

Total Available: Determined after selection  Deadline 4/10/2020

Second Chance Act Community-Based Reentry Program 

Total Available $13.5 million    Deadline 5/4/2020

Second Chance Act Evaluation Participation Support 

Total Available $4 million  Deadline 4/28/2020 

Second Chance Act Youth Offender Reentry Program 

Total Available $7 million    Deadline 4/28/2020

For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities

Tacoma – A 25- year-old Puyallup resident who has long associations with a Lakewood, Washington street gang, made his initial appearance March 30, 2020 in U.S. District Court in Tacoma on two counts of being a felon in possession of firearms.  DESHAWN WEST was ordered detained at the Federal Detention Center at Sea-Tac.  WEST had been in state custody since his arrest on February 14, 2020.

According to the criminal complaint, WEST, an aspiring rapper, posted multiple pictures on social media showing him holding firearms.  Some of the guns had extended magazines and one appeared to be modified for rapid fire.  On October 1, 2019, WEST was arrested near Big Sandy, Montana for failing to comply with the terms of his Washington State Department of Corrections probation.  In the vehicle with WEST was a firearm that appeared to match one WEST was holding in various social media videos.  At the time WEST’s girlfriend claimed the firearm belonged to her.

On February 12, 2020, WEST again posted videos to social media showing him holding firearms.  On February 14, 2020, members of the FBI’s South Sound Gang Task Force served a search warrant on WEST’s Puyallup residence.  WEST was taken into custody without incident, and in the apartment law enforcement located two firearms, extended magazines and ammunition.

WEST is prohibited from possession firearms due to felony convictions including assault and being a felon in possession of a firearm (2014) and assault (2018). 

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

The charges contained in the criminal 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’s South Sound Gang Task Force in close coordination with the Pierce County Sheriff's Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Washington State Department of Corrections.

The case is being prosecuted by Assistant United States Attorney Jessica Manca.

 

Seattle – U.S. Attorney Brian T. Moran of the Western District of Washington, today announced that more than $163 million in Department of Justice grants is available to help communities address America’s addiction crisis.

“Sadly, even with our community focused on health amidst the COVID-19 crisis, those who struggle with addiction have no break from their disease,” said U.S. Attorney Brian Moran.  “I hope state and local governments and non-profits will explore these federal funding opportunities and apply for the grants that can enhance their work with those suffering from addiction.”

“Our nation is facing the difficult challenge of curbing substance addiction, which threatens public safety and is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”

The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to prevent overdose deaths and break the cycle of addiction and crime. 

A number of funding opportunities that address the addiction crisis are currently open: 

Adult Drug Court and Veterans Treatment Court Discretionary Grant Program

https://bja.ojp.gov/funding/opportunities/bja-2020-17098

Total Available $1.75 million                                             Deadline 5/14/2020           

Comprehensive Opioid, Stimulant, and Substance Abuse Site-based Program

https://bja.ojp.gov/COSSAP20

Total Available $27 million                                    Deadline 5/21/2020

Enhancing Community Responses to America's Addiction Crisis: Serving Our Youngest Crime Victims

https://www.ovc.gov/grants/pdftxt/fy-2020-enhancing-community-responses-to-drug-crisis.pdf

Total Available: $19 million                                               Deadline: 5/4/2020

 Family Drug Court Program

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17090

Total Available $18.2          million                                               Deadline 4/8/2020 (Extended)

Harold Rogers Prescription Drug Monitoring Program

https://bja.ojp.gov/funding/opportunities/bja-2020-17754

Total Available $28.1                                              Deadline 5/5/2020

 

Juvenile Drug Treatment Court Program

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17051

Total Available $7.2 million                                               Deadline 4/13/2020 (Extended)

 Mentoring Opportunities for Youth Initiative

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-16930

Total Available $48 million                                               Deadline 4/13/2020  

Opioid Affected Youth Initiative

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17352

Total Available $9 million                                      Deadline 4/20/2020

Research and Evaluation on Drugs and Crime            https://nij.ojp.gov/funding/opportunities/nij-2020-17275

Total Available $1 million                                      Deadline 4/20/2020                     

Residential Substance Abuse Treatment for State Prisoners

https://bja.ojp.gov/RSAT20

Total Available $4.5 million                                  Deadline 4/6/2020

For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities

Seattle – U.S. Attorney Brian T. Moran of the Western District of Washington today announced that more than $83 million in Department of Justice grants is available to help communities improve school security and protect students, teachers and faculty from threats of violence.

“At a time when we are appropriately focused on a health crisis, we still must look ahead to the difficult problems facing our community and especially our children,” said U.S. Attorney Moran.  “I urge school administrators, teachers and district leaders to review these grant offerings and take time now to apply for these important federal resources.”

“School violence is no longer an abstract threat but has become a tragic reality in too many of America’s communities. Moving to meet this challenge is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”

The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to tighten school security and improve the reporting of threats.  

 

A number of funding opportunities for school safety are currently open, with another opening in the near future:

Research and Evaluation on School Safety https://nij.ojp.gov/funding/opportunities/nij-2020-17308
Total Available $5 million     Deadline 4/13/2020 

 

STOP Act School Violence Program (FY20) https://nij.ojp.gov/funding/opportunities/nij-2020-17308
Total Available $71.4 million  Deadline 4/13/2020 

 

Strategies to Support Children Exposed to Violence:   https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17926
Total Available $7 million  Deadline 4/27/2020

 

For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.

Seattle – U.S. Attorney Brian T. Moran of the Western District of Washington today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address disaster@leo.gov.

In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes.

“We cannot allow criminals to use the anxiety and fear surrounding this virus to further victimize our community,” said U.S. Attorney Moran.  “Reporting this activity to the National Center for Disaster fraud will help law enforcement identify and ultimately prosecute those who try to profit using fraud schemes related to the virus.”

Some examples of these schemes include:

• Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
• Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
• Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
• Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
• Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.      

In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities.   The Western District of Washington Coronavirus Fraud Coordinator is Assistant United States Attorney Brian Werner of the Complex Crimes Unit.

The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes.  The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.

To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.

Seattle – U.S. Attorney Brian T. Moran today announced that more than $65 million in Department of Justice grants is available to help communities combat human trafficking and serve adults and children who are victimized in trafficking operations.

“During this unprecedented time of anxiety and fear over COVID-19, it is critical that work continue to assist the vulnerable in our nation, especially the victims of human trafficking – modern day slavery,” said U.S. Attorney Brian Moran.  “I want our partners in this work to be able to apply for this federal financial assistance, something that can happen even as we face the pressing need to combat the spread of the virus.”

“Our nation is facing difficult challenges, none more pressing than the scourge of human trafficking. Human traffickers pose a dire threat to public safety and countering this threat remains one of the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight against this insidious crime. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”

The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs that support human trafficking task forces and services for human trafficking survivors. 

A number of funding opportunities are currently open, with several more opening in the near future. 

 

Missing and Exploited Children Training and Technical Assistance Program

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17351

 

Total Available $1.8 million                                       Deadline 4/6/2020 (Extended)

 

Multidisciplinary Task Force Program to Combat Human Trafficking

Total Available $22 million                                       Opens week of 3/16/2020

 

Preventing Trafficking of Girls

            Total Available $1.7 million                                          Opens week of 3/16/2020

 

Research and Evaluation on Trafficking in Persons  https://nij.ojp.gov/funding/opportunities/nij-2020-17324

Total Available $2.5 million                                        Deadline 4/20/2020

 

Services for Victims of Human Trafficking

Total Available $16.5 million                                     Opens week of 3/16/2020

Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking                                                                                                                        Total Available $2 million                                     Opens week of 3/16/2020

Human Trafficking Training and Technical Assistance Program

Total Available $5 million                                          Opens week of 3/16/2020

Improving Outcomes for Child and Youth Victims of Human Trafficking                           

Total Available $6 million                                          Opens week of 3/16/2020

Integrated Services for Minor Victims of Labor Trafficking

Total Available $8 million                                          Opens week of 3/16/2020

For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities

Seattle – U.S. Attorney Brian T. Moran is asking our federal, state, and local law enforcement partners to be alert to frauds preying on those concerned about COVID-19. 

“In a time of high stress and fear it is critical that for the public to know that law enforcement at all levels remains dedicated to  protecting them from harm  – whether it is from scams, frauds or violent crime,” said U.S. Attorney Moran. “As Attorney General Barr has directed, we will remain vigilant in detecting, investigating and prosecuting wrongdoing related to the crisis.  To those who are engaged in perpetrating these schemes, you are on notice that my office will aggressively pursue you and hold you to answer for preying on our communities.”      

The Western District of Washington has extensive expertise in cybercrime and is already monitoring issues related to phishing attempts and efforts to infect emails, links and postings with malware.  Members of the public need to be wary of emails or online posts that could be infected with malware that could then infect their electronic devices and steal personal and financial information.

“The pandemic is dangerous enough without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated,” Attorney General William Barr said in his communication to the U.S. Attorneys.

If you or someone you know believe you’ve been the target or victim of an outbreak-related fraud scheme, please contact the FBI’s Internet Crime Complaint Center (IC3) by visiting www.IC3.gov.

Tacoma, Washington – A 48-year old La Center, Washington man was arrested today on a criminal complaint charging him with cyberstalking and two counts of interstate threats, announced U.S. Attorney Brian T. Moran.  MATHIAS DOUGLAS KANE was arrested late yesterday without incident outside his home. KANE will make his initial appearance in U.S. District Court in Tacoma at 2:30 today.

According to the criminal complaint, KANE made online threats against a neighbor who took in KANE’s 13-year-old child when the child needed a place to live.  On multiple occasions in January 2020, KANE posted personally identifying information about his neighbor online and threatened to harm her.  KANE posted anti-Semitic comments and threatened to harm state Child Protective Services (CPS) workers, members of law enforcement and Jews.  KANE identified himself as a White Nationalist and used a screenname and images involving NAZI symbols.

On two occasions KANE was contacted by law enforcement regarding his access to weapons. KANE denied possessing firearms, but refused to allow law enforcement to search his home.  KANE posted multiple times about manufacturing guns and ammunition and his access to firearms parts.  A search of his home and vehicle last night did not recover any firearms.

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.

Cyberstalking and making interstate threats are both punishable by up to 5 years in prison.

The case is being investigated by the FBI with assistance from the Clark County Sheriff’s Office and the La Center Police Department.

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

kane_complaint.pdf

 

Tacoma, Washington – A 51-year-old Lakewood, Washington, man was arraigned today in U.S. District Court in Tacoma for a multi-year fraudulent  tax  preparation scheme he operated, even after his father went to prison for the same conduct.  CLEO J. REED Jr., created “Just Us Tax Service” and later merged it with “Young’s Tax Service.”  The companies filed tax returns falsely claiming high rates of Earned Income Tax Credits (EITC) to increase clients’ tax refunds and therefore the fee they would receive for tax preparation.

REED Jr. pleaded “not guilty,” and trial was scheduled for May 12, 2020, in front of U.S. District Judge Benjamin H. Settle.

According to records filed in the case, in 2011 and 2012, even as REED Jr’s father’s tax preparation business was under investigation for preparing fraudulent returns, REED Jr opened and operated “Just Us Tax Service” and allegedly used the same fraudulent technique utilized by his father’s tax preparation business.  When the IRS terminated REED Jr’s tax prep registration, he had an acquaintance open and register “Young’s Tax Service” in 2014 and continued filing tax returns with fraudulent entries for Earned Income Tax Credit.  REED Jr filed the false returns from his home, from Everyday Essentials, the marijuana dispensary he owned and operated in Puyallup, and from his employment location with the Sumner School District.

The total amount of tax loss in this case and the illegal gain to REED Jr is still being calculated.

REED Jr is charged with one count of conspiracy to defraud the United States and seven counts of aiding in the preparation of false tax returns.  Conspiracy is punishable by up to 5 years in prison and aiding in the preparation of false tax returns is punishable by up to three 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 Internal Revenue Service Criminal Investigation (IRS-CI), and is being prosecuted by Assistant United States Attorney Arlen Storm.

reed_jr_superseding_indictment.pdf

Tacoma, Washington – A repeat offender who victimized more than 40 hikers and campers in National Parks across western Washington was sentenced today in U.S. District Court in Tacoma to two years in federal prison to follow a 25 month state prison term.  MICHAEL WAYNE PICKERING, 41, of Aberdeen, Washington, prowled at least four dozen cars at more than seven different trailheads and parking lots stretching from Mount Rainier National Park to Third Beach on the Pacific coast, to trailheads in the interior of the Olympic Peninsula’s national park and forest.  At the sentencing hearing U.S. District Judge Benjamin H. Settle called the crimes “planned and methodical,” and ordered PICKERING to serve three years of supervised release following prison.

“The victims in this case didn’t just suffer a financial loss, they were emotionally damaged as well,” said U.S. Attorney Brian T. Moran.  “Some returned from what was supposed to be a relaxing time in nature, to find themselves stranded with a damaged vehicle, their electronics, clothes and money stolen, marooned in the national forest, with no cell phone service.  For some it has forever changed their interest in outdoor activities.”

According to records filed in the case, on March 28, 2019, PICKERING and his girlfriend smashed windows and stole thousands of dollars of equipment from vehicles parked at the Graves Creek Trailhead and Fletcher Canyon Trailhead in Olympic National Park.  This was the beginning of a month-long theft spree.  PICKERING and his girlfriend used credit and debit cards stolen from the vehicles to make purchases at various stores – the overall financial damage was more than $50,000.  PICKERING was only stopped when he was caught shortly after walking out of a store where he used victims’ bank cards, with a window punch (a tool used to break car windows), and three credit cards in a victim’s name in his pocket.

PICKERING did not just take credit and debit cards.  He stole expensive electronics, car and house keys, and even diaries, clean clothes, make-up, and toiletries.  When law enforcement searched his residence, they found PICKERING had been stockpiling much of the gear he stole or selling it online.  He used the stolen debit and credit cards to buy himself luxuries such a flat screen TVs, gaming systems, a drone, and clothes.

Victims wrote to the Court about how the car prowls violated their sense of safety and changed their attitude toward camping.  Some of the comments include:

It’s really hard to feel so unsafe in the outdoors, which is where I usually find peace and solace. . .

 The crime happened on the last day of a hiking/camping/backpacking trip with friends.  I took what otherwise was a great vacation and made it very sour.

 We were exhausted and freezing by the time we returned to the trailhead.  When we found the truck windows busted out and my luggage stolen it was devastating…We had to drive for nearly an hour with the cold wind and rain coming in through the windows…I have not returned to Washington since this event.

PICKERING has a 15-year history of property crimes in and around Olympic National Park, such as burglary, identity theft, and trespassing.

The case was investigated by rangers from the National Park Service in collaboration with local law enforcement, including Forks Police Department, Mason County Sheriff’s Office, Grays Harbor Sheriff’s Office, and the Washington State Patrol.

The case was prosecuted by Assistant United States Attorney William Dreher.

Seattle – A Bothell, Washington, man is charged in an eight-count complaint  for operating an illegal money exchange business involving bitcoin, announced U.S. Attorney Brian T. Moran. KENNETH WARREN RHULE, 26, made his initial appearance on the criminal complaint in U.S. District Court in Seattle yesterday.  RUHLE is charged with conducting an unlicensed money transmitting business, five counts of laundering of monetary instruments, and one count of conspiracy to produce and distribute marijuana.

According to the criminal complaint, RHULE came to the attention of law enforcement in April 2018 as someone operating an unlicensed bitcoin exchange business under the name “Gimacut93.”  At various locations–primarily Starbucks coffee shops–in Western Washington, RHULE met repeatedly with undercover agents posing as criminals who needed to launder funds.  Through their conversations the undercover agents made it seem they were laundering money related to human trafficking activities.  RHULE agreed to exchange bitcoin for cash apparently knowing the cash was the proceeds of criminal activity.  In fact, RHULE offered the undercover agents advice on virtual currency and how to hide the source of the funds.  RHULE asked the agents no questions as required under the “know your customer” rule.

Even as he was engaged in the operation of the unlicensed financial exchange business, RHULE was operating a marijuana products business that has no license with the State of Washington.  The facility, based in Monroe, Washington, manufactures hash oil and other marijuana products using the names HerbinArtisans, Heady.Watr, and KlearKrew.  Electronic messages reviewed in the case indicate RHULE was exchanging various marijuana products for cryptocurrency.  RHULE claimed that he was manufacturing in the Seattle area but selling some of his product in Florida.

Operating an unlicensed money transmitting business is punishable by up to five years in prison.  Laundering monetary instruments is punishable by up to 20 years in prison.  Conspiracy to manufacture and distribute the amount of marijuana involved in this case is punishable by a mandatory five years in prison and up to 40 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 Homeland Security Investigations and the Drug Enforcement Administration.

The case is being prosecuted by Assistant United States Attorney Marie Dalton.

rhule_complaint.pdf

Seattle – The head of a drug distribution ring who was convicted at trial of drug and gun crimes was sentenced today in U.S. District Court in Seattle to15  years in prison, announced U.S. Attorney Brian T. Moran.  RHETT IRONS, 41, of Lynnwood, Washington was convicted on December 12, 2019, of conspiracy to distribute fentanyl pills, possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.  At the sentencing hearing U.S. District Judge Richard A. Jones noted that fentanyl is probably the most dangerous drug being sold right now, and noted that IRONS had guns and drugs accessible to children. “You were the clear leader of a  drug trafficking organization,” Judge Jones said.

“This defendant exploited others’ addictions so he could live a life of luxury,” said U.S. Attorney Brian Moran.  “Testimony at trial revealed he got his dealers and customers hooked on fentanyl – a powerful and potentially fatal opioid – all so he could make more money and have the cars and vacations he thought he deserved.”

According to records filed in the case and testimony at trial, in February 2018, the Snohomish Regional Drug Task Force began targeting organizations distributing fentanyl pills throughout the north sound region.  IRONS was a leader of one of the organizations.  He had originally trafficked oxycodone pills, but switched to trafficking fentanyl – a stronger and cheaper pill – that he rebranded as “supers".  It was also more deadly.  To maximize profits and to protect him from law enforcement scrutiny, IRONS fronted the pills to his distributors and took the profits afterwards allowing the addicts to have a cut of the profits.  Many distributors used that profit to buy from IRONS to support their own addiction. During this time, agents also learned of a luxury home IRONS rented in Bothell dubbed “the mansion” by his distributors.  The house had a pool, hot tub and tennis courts – IRONS allowed some of his dealers to live at the home, and stored pills and firearms there.

Law enforcement used confidential sources and an undercover agent to make purchases from IRONS.  In February 2019, law enforcement searched IRONS’ residence in Lynnwood.

At IRONS’ home agents found a loaded Glock semiautomatic pistol and additional magazines under a mattress in the master bedroom.  They found more pills and more than $50,000 in cash.  In the basement where IRONS allowed another redistributor to live, agents found a gun safe with eight firearms including three assault rifles.  IRONS has prior felony convictions, which preclude him from possessing firearms.

During the investigation, law enforcement confirmed that a former drug customer of IRONS died in April 2018 from acute fentanyl intoxication.  It is unknown whether fentanyl purchased from IRONS caused the death.

“Today, the head of this poisonous snake was cut off,” said DEA Special Agent in Charge SAC Keith Weis.  “Irons directed dozens of individuals dealing thousands of fentanyl pills onto the streets of the north sound communities that endangered all it touched, in the name of greed.”   

In asking the court for a 17-year prison term, prosecutors wrote to the Court:  “This Defendant has altered the lives of countless individuals. He created addictions. He fed addictions. …This Court will never know all of the lives shattered by Defendant’s greed. There is no way to provide his victims with restitution. There is no way to know the number of families Defendant destroyed, the individuals he left addicted, or even the deaths connected to his organization.”

Following his prison term, IRONS will be on federal supervision for five years.

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 led by the Drug Enforcement Administration (DEA) as part of the Snohomish Regional Drug Task Force.  Both the Snohomish County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives were key investigative partners.

The case was prosecuted by Assistant United States Attorneys Lisca Borichewski and Chantelle Dial.

Seattle – A federal grand jury returned a four-count indictment charging former housing authority executive COVA CAMPBELL, aka Cova Hunter with four counts of wire fraud, announced U.S. Attorney Brian T. Moran.  According to the indictment, between March 2016 and July 2019, CAMPBELL defrauded the Pierce County Housing Authority (PCHA) of $6.9 million.  CAMPBELL allegedly used her authority as the organization’s Finance Director to divert public money fraudulently to her own bank accounts.

“This was a lengthy and sophisticated scheme involving millions of public dollars, interstate wires and falsified records,” said U.S. Attorney Brian T. Moran.  “At a time when we are scrambling to fund housing for those who are unsheltered, it is appalling that this money went to pay for cars, vacations, home remodeling, and purchases from gaming websites.”

According to the indictment, CAMPBELL initiated wire transfers of as much as $500,000 from Pierce County Housing Authority accounts to her own bank accounts.  One of the transfers was in connection with the purchase of land in Oklahoma.  CAMBELL also prepared and submitted false invoices to PCHA and made them appear they were from an outside vendor.  PCHA paid the invoices, and the money went into CAMPBELL’s bank accounts.  CAMPBELL also misused the PCHA credit card by charging her personal expenses.  CAMPBELL covered up her fraud by labeling these fraudulent charges as “investments,” “insurance,” or “maintenance” in the PCHA accounting records.

“Ms. Campbell was entrusted by the people of Pierce County to make decisions based on their best interests.  Instead, she betrayed that trust by enriching herself at their expense,” said Raymond Duda, Special Agent in Charge FBI – Seattle.

“Housing and Urban Development –Office of Inspector General (HUD-OIG) will continue to safeguard HUD funds designated for those citizens most at need and will actively pursue those who betray the public trust by using their positions for private gain,” said Scott J. Tanchak, Special Agent in Charge for the Pacific Northwest..

The Washington State Auditor’s Office uncovered the financial irregularities, and CAMPBELL’s employment was terminated by the Housing Authority on August 8, 2019.

CAMPBELL was arrested yesterday in Redbird, Oklahoma. She had her initial appearance before a judge in Muskogee, Oklahoma.  She was released and directed to report to U.S. District Court in Tacoma.

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 HUD-OIG.  The case is being prosecuted by Assistant United States Attorney Brian Werner.

campbell_indictment.pdf campbell_indictment.pdf

Tacoma, Washington – A Spanaway, Washington, man who made sexually explicit images of an 11-year-old child and traded the child’s underwear for more images of child rape, was sentenced today in U.S. District Court in Tacoma to 15 years in prison announced U.S. Attorney Brian T. Moran.  DONNIE BARNES, SR., 52, was convicted in October 2019 of production of child pornography, distribution of child pornography, and possession of child pornography following a two-day jury trial.  At the sentencing hearing, U.S. District Judge Benjamin H. Settle said, “It is hard to describe” how serious these types of offenses are in terms “real harm.”  The victims of these offenses themselves face a “life sentence” of “pain we cannot know.”  

“This defendant horribly betrayed the trust of not only the child but the child’s parent and caregiver,” said U.S. Attorney Moran.  “I commend the international cooperation that uncovered this crime and put an end to this predatory behavior.”

According to records filed in the case and testimony at trial in February 2018, BARNES came to the attention of law enforcement when a police detective in Queensland, Australia, noticed a suspicious file on a public photo-sharing website.  The album showed close-up photos of a child’s genitals.  In an undercover persona, the officer commented on the photos and received emails the next day from BARNES describing the child in sexual terms and revealing BARNES’ relationship to the child.

In early March 2018, agents with Homeland Security Investigations searched  BARNES’ residence in Spanaway.  When interviewed by law enforcement, BARNES admitted photographing the child while the child was asleep and uploading the images to the internet.  Additionally, BARNES told officers he had traded soiled underwear from the child for additional images of child rape to someone seeking such items via Craigslist.  Those images were located on an electronic storage device in BARNES’ home.

Following his prison term, BARNES will be on lifetime supervised release and will be required to register as a sex offender.

The case was investigated by Homeland Security Investigations with assistance from the Queensland Police Service (QPS).

The case is being prosecuted by Assistant United States Attorneys Matthew Hampton and Lyndsie Schmalz.

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 locate, apprehend, and prosecute individuals better 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.

Seattle – A couple who resided on the Upper Skagit Indian Reservation pleaded guilty today and yesterday to conspiracy to distribute heroin, announced U.S. Attorney Brian T. Moran.  RYAN ERIC FLETCHER, 30, pleaded guilty on February 27, 2020, and Upper Skagit member LINNETTE TORRES, 29, pleaded guilty today in U.S. District Court in Seattle.  Both face up to twenty years in prison when sentenced by U.S. District Judge Robert S. Lasnik on May 15, 2020.

“The FBI and Upper Skagit Police Department worked closely and collaboratively on this case to remove a chronic source of heroin from the Upper Skagit community,” said U.S. Attorney Brian T. Moran.  “I am committed to working with our Tribal partners to combat the scourge of drug addiction in our communities.”

According to records filed in the case, FLETCHER was known to law enforcement in the Upper Skagit and had been ordered excluded from the reservation.  Nevertheless, he violated that exclusion order and with TORRES conspired to sell heroin in the community.  Last summer a person working with law enforcement purchased heroin from both FLETCHER and TORRES.  On August 21, 2019, law enforcement served a court-authorized search warrant on the couple’s home and on a storage unit they controlled.  In the home, they found heroin, a loaded Glock pistol, a rifle, and various types of ammunition.  In the storage unit, they found an AR-15 style firearm, another Glock, and a variety of pills, as well as other drug dealing paraphernalia.

The case was investigated by the FBI and the Upper Skagit Police Department.

The case is being prosecuted by Assistant United States Attorneys Chantelle Dial and J. Tate London.

Seattle – Four racially motivated violent extremists from across the U.S. were arrested and charged today in U.S District Court in Seattle with a conspiracy to threaten and intimidate journalists and activists, announced U.S. Attorney Brian T. Moran.  Today’s arrests and searches by the FBI and local law enforcement are being coordinated by the Department of Justice’s National Security Division and the U.S. Attorney’s Offices in Seattle, Tampa, Houston, and Phoenix.

“These defendants sought to spread fear and terror with threats delivered to the doorstep of those who are critical of their activities,” said U.S. Attorney Brian T. Moran for the Western District of Washington.  “As Attorney General William Barr has made clear, rooting out anti-Semitic hate and threats of violence and vigorously prosecuting those responsible are top priorities for the Department of Justice.”

“The United States Attorney’s Office for the Middle District of Florida and FBI-Tampa have been focused on identifying and eradicating the threat posed by the Atomwaffen Division both locally and nationally,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida.  “Today’s arrests send a powerful message that the Department of Justice will not tolerate criminal conduct based on hateful ideology.  We will continue to work with our partners here in the Middle District of Florida, and elsewhere, to devote our resources to investigate and prosecute those who aim to threaten and terrorize our communities.”

“These defendants from across the country allegedly conspired on the internet to intimidate journalists and activists with whom they disagreed,” said Assistant Attorney General for National Security John C. Demers. “This is not how America works. The Department of Justice will not tolerate this type of behavior.”

The defendants charged in the conspiracy include:

     Cameron Brandon Shea, 24, of Redmond, Washington

     Kaleb Cole, 24, of Montgomery, Texas

     Taylor Ashley Parker-Dipeppe, 20, of Spring Hill, Florida

     Johnny Roman Garza, 20, of Queen Creek, Arizona

According to the criminal complaint, the defendants conspired via an encrypted online chat group to identify journalists and others they wanted to intimidate.  The group focused primarily on those who are Jewish or journalists of color.  Defendants Kaleb Cole and Cameron Shea created the posters, which included Nazi symbols, masked figures with guns and Molotov cocktails, and threatening language.  The posters were delivered to Atomwaffen members electronically, and the coconspirators printed and delivered or mailed the posters to journalists or activists the group was targeting.  In the Seattle area, the posters were mailed to a TV journalist who had reported on Atomwaffen and to two individuals associated with the Anti-Defamation League (ADL).  In Tampa, the group targeted a journalist, but delivered the poster to the wrong address.  In Phoenix, the poster was delivered to a magazine journalist.

“Today’s announcement serves as a warning to anyone who intends to use violence as intimidation or coercion to further their ideology that the FBI remains steadfast in our commitment to protect Americans from domestic terrorism,” said Assistant Director for Counterterrorism Jill Sanborn.  “These nationwide arrests are the result of the robust partnerships among the FBI’s Joint Terrorism Task Forces in Tampa, Seattle, Houston, and Phoenix, and with the Seattle Police Department.”

“The FBI recognizes all citizen's First Amendment-protected rights.  However the subjects arrested today crossed the line from protected ideas and speech to action in order to intimidate and coerce individuals who they perceived as a threat to their ideology of hate,” said Raymond Duda, Special Agent in Charge, FBI Seattle.

“Today's takedown is proof the FBI in Tampa and our Joint Terrorism Task Force will work tirelessly to ensure communities are rid of hate inspired groups whose goal is to fuel intimidation and violence,” said FBI Tampa Special Agent in Charge Michael McPherson.

Shea will make his initial appearance on the complaint at the federal courthouse in Seattle at 2 p.m. today.  Those arrested in other districts will make their appearances in federal court in those districts and will appear in Seattle on a future date.

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’s Joint Terrorism Task Forces in Seattle, Tampa, Houston, and Phoenix.  In Western Washington, these agencies assisted with the case: The U.S. Postal Inspection Service; the Seattle, Edmonds, Arlington, Mercer Island, and Kirkland Police Departments; the King and Snohomish County Sheriff’s Offices; U.S. Customs and Border Protection and Canadian partners RCMP and CBSA; and the King County Prosecuting Attorney’s Office.

The case is being prosecuted by Assistant United States Attorney Thomas Woods with assistance from DOJ’s National Security Division and the U.S. Attorney’s Offices in the Middle District of Florida, Southern District of Texas, District of Arizona, and Central District of California.

shea_et_al_complaint_0.pdf

 

Seattle – A former Microsoft software engineer was convicted today in U.S. District Court in Seattle of 18 federal felonies related to his scheme to defraud Microsoft of more than $10 million, announced U.S. Attorney Brian T. Moran.  VOLODYMYR KVASHUK, 25, 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.  Today, following a five-day trial, KVASHUK was convicted 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.  When sentenced by U.S. District Judge James L. Robart on June 1, 2020, KVASHUK faces up to twenty years in prison.

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” 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 started stealing 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 was transferred to his bank accounts.  KVASHUK then filed fake tax return forms, claiming the bitcoin had been a gift from a relative.

In closing arguments, Assistant United States Attorney Siddharth Velamoor said KVASHUK “hid behind his colleagues’ names…. dripping fraud and deceit every step of the way…. This is a simple case… anyway you look at it this is a crime of greed.”

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.

That testimony was, “A house of lies on top of a previous house of lies,” Assistant United States Attorney Michael Dion told the jury.

The jury deliberated about five hours before returning the guilty verdicts.

“In addition to stealing from Microsoft, Volodymyr Kvashuk also stole from the government by concealing his fraudulent income and filing false tax returns.  Kvashuk’s grand scheme was thwarted by the hard-work of IRS-CI’s Cyber Crimes Unit.  Criminals who think they can avoid detection by using cryptocurrency and laundering through mixers are put on notice…you will be caught and you will be held accountable,” said IRS-CI Special Agent in Charge Ryan L. Korner.

The case was investigated by the Internal Revenue Service Criminal Investigation’s Western Area Cyber Crime Unit and the U.S. Secret Service.

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

Tacoma, Washington – A former U.S. Army Chief Warrant Officer at Joint Base Lewis-McChord was sentenced today in U.S. District Court in Tacoma to 15 years in prison for production of child pornography, announced U.S. Attorney Brian T. Moran.  JOHN F. RINDT, 50, was previously sentenced to ten years in prison by a military tribunal for the same conduct.  U.S. District Judge Robert J. Bryan ordered the 15-year sentence to run concurrent to the military prison term.

According to records filed in the case, in 2012, while living in Lacey, Washington, RINDT made a video of himself molesting a sleeping child who was under the age of 12.  As part of his sentence, RINDT is required to pay $9,900 in restitution for counseling for the young child.

Following his release from prison, RINDT will be on lifetime supervised release and will be required to register as a sex offender.

The case was investigated by the FBI and U.S. Army Criminal Investigation Division (CID).

The case was prosecuted by Assistant United States Attorney Grady Leupold.

Tacoma, WA – A 62-year-old Port Townsend, Washington, man pleaded guilty today in U.S. District Court in Tacoma to a federal felony for molesting a 6-year-old child while on a vacation in Canada.  JOHN TIMOTHY WHICHER faces a maximum prison term of 30 years in prison when sentenced by U.S. District Judge Benjamin H. Settle on May 18, 2020.  As part of the agreement, the parties have agreed to recommend a sentence of 8-12 years in prison.

According to records filed in the case and the plea agreement, in August 2017, WHICHER took the 6-year-old child to Canada to stay at a family cabin in Ontario.  When the child returned from the trip, the child disclosed to a parent the sexual molestation, saying WHICHER said to keep it a secret.  The parent confronted WHICHER and reported the conduct to the Port Townsend Police.

According to the plea agreement, WHICHER will be required to register as a sex offender following his release from prison.  He is also responsible for an undetermined amount of restitution to the victim for the damages the victim suffered.

The case is being investigated by Homeland Security Investigations (HSI).  The case is being prosecuted by Assistant United States Attorney Matthew Hampton.

Tacoma – A 58-year-old Tacoma resident was sentenced today in U.S. District Court in Tacoma to 15 years in prison for conspiracy to produce child pornography, announced U.S. Attorney Brian T. Moran.  MICHAEL KELLAR, and his girlfriend, Gail Lynn Burnworth, 52, were arrested in August 2017, after an alert passenger on a July 31, 2017, flight to San Jose, California, noticed disturbing texts between KELLAR, who was on the plane, and Burnworth, who was in Tacoma.  The investigation revealed the two had produced and shared sexually explicit images of children placed in Burnworth’s care.  At the sentencing hearing, U.S. District Judge Ronald B. Leighton said, “This case for me ... has been the most disturbing case that I have had…. (These offenses) beset on society a waterfall of negative repercussions that can never be repaired.”

“I commend the airline passenger who spoke up about the disturbing texts she witnessed on her flight. We all have had that moment when we question: ‘Do I get involved,’” said U.S. Attorney Brian T. Moran.  “In this case, that witness triggered the rescue of two small children and the investigation that revealed this defendant to be a predator – collecting images of child sexual abuse.”

According to records filed in the case, after the witness reported her concerns to the airline flight attendants, the flight crew arranged for law enforcement to meet the plane.  KELLAR was questioned by police and ultimately arrested.  A review of his electronic devices showed graphic explicit exchanges with Burnworth discussing drugging and raping the children in her care.

The Seattle Internet Crimes Against Children (ICAC) task force was alerted and obtained a Court-authorized search warrant for Burnworth’s residence and electronic devices.  Investigators found sexually explicit images on Burnworth’s devices and found several hundred images of child pornography on KELLAR’s laptop.

“Sexual exploitation of children is particularly heinous, and the FBI has made it a priority to hold those who choose to perpetrate these acts accountable,” said Special Agent in Charge Raymond Duda, FBI-Seattle.  “Mr. Kellar will now answer for his crimes against some of the most vulnerable in our community.  This case demonstrates the FBI will rigorously investigate these crimes and reinforces that victimizing children will not be tolerated by law enforcement.”

On September 25, 2019, KELLAR pleaded guilty to Conspiracy to Produce Child Pornography and access with intent to view child pornography.  Following his prison term, he will be on lifetime supervised release and will be required to register as a sex offender.

Burnworth pleaded guilty to distribution of child pornography and will be sentenced March 27, 2020.

Both defendants have been in custody since their arrests in August 2017.

The case is being investigated by the FBI with assistance from the San Jose, California, Sheriff’s Office and the Seattle Police Department Internet Crimes against Children Task Force (ICAC).

 The case is being prosecuted by Assistant United States Attorneys Matthew Hampton and Marie Dalton.

Seattle – A former Bellevue, Washington, resident who relocated to Miami, was sentenced today in U.S. District Court in Seattle to 38 months in prison, three years of supervised release, and $2,359,914 in restitution for bankruptcy fraud.  MARINA BONDARENKO, 38, operated a ‘work-at- home’ email scheme that ultimately crashed – but not before she and her partner raided the cash to purchase homes, expensive cars, and a yacht.  The two set up a series of trusts to try to hide the diverted assets from the bankruptcy trustee after the sham company declared bankruptcy.  At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said he was concerned about respect for the law.  “She submitted false documents in two different judicial proceedings,” Chief Judge Martinez said. “She committed perjury – she took the witness stand and lied.”

According to records filed in the case, between July 2013 and March 2014, BONDARENKO and her partner, Volodimyr Pigida, siphoned off more than $3 million from a company they had established that essentially operated as a Ponzi scheme.  The pair used the money to purchase four properties, a yacht, and numerous cars.  As the Ponzi scheme unraveled, the company filed for bankruptcy protection.  BONDARENKO and Pigida never revealed to the bankruptcy court that they had looted the company coffers and transferred assets purchased with that money to ten trusts they had established.  In all, the pair attempted to conceal $3,334,750 in assets from the bankruptcy court and creditors.

BONDARENKO and her now-husband Pigida were indicted for conspiracy, mail, wire, and bankruptcy fraud in November 2018.  In September 2019, BONDARENKO pleaded guilty to bankruptcy fraud.  Pigida is scheduled for trial on the indictment in September 2020.

The company the two formed, Trend Sound Promoter AMG Corp., was supposed to conduct advertising and music promotion over the internet.  The couple sold Ad-promoting packages whereby those who bought a package were to be paid for email marketing.  The couple made claims to those purchasing the packages that they could make big money for sending emails on Trend Sound’s behalf.  In reality, the only money being generated was from those purchasing the packages, and it was used to pay earlier purchasers as in a typical Ponzi scheme.  As purchasers got wise and the money started to run out, BONDARENKO and Pigida accelerated their looting of the company, eventually transferring $3.3 million out of the company for their personal benefit.

The two even filed suit in King County Superior Court in an attempt to stop an unhappy customer from warning others about the company’s sham offering.  In her plea agreement, BONDARENKO admitted to providing perjured testimony in that proceeding.

The case is being investigated by the FBI and the U.S. Postal Inspection Service.  The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Marie Dalton.

Seattle – A Seattle man who stole tens of thousands of dollars from a woman in her 70’s while she lay dying in the hospital, was convicted today in U.S. District Court in Seattle of ten federal felonies.  DWAYNE BROOKS was convicted of six counts of bank fraud and attempted bank fraud, two counts of use of unauthorized access devices, and two counts of aggravated identity theft.  The jury deliberated about four hours following the three-day trial.  U.S. District Judge James L. Robart scheduled sentencing for May 18, 2020.

According to records in the case and testimony at trial, between November 2016 and April 2018, BROOKS used debit cards, credit cards, checks, and other financial information stolen from mail, cars, and homes to steal money from multiple victims.  One of the victims, a 78-year-old woman ultimately died in the hospital while BROOKS was looting her accounts.  During the scheme, BROOKS repeatedly used her information to open credit accounts, drain bank accounts, and even attempted to obtain her power of attorney.  While the woman was in the hospital, surveillance video shows BROOKS using keys stolen from her ex-husband’s car to burglarize her condominium, taking bags full of valuables.  A second victim, an 84-year-old Seattle woman, is still trying to untangle the fraud he committed against her accounts, including her retirement investment account.  Finally, BROOKS stole and attempted to cash a $34,000 tax refund check.

In all, BROOKS’ fraud exceeds $120,000.

In closing argument, Assistant United States Attorney Seungjae Lee noted, BROOKS’ scheme “was simple, but devastating.  He had no regard for those left behind holding the bag.  An 84-year-old woman is still trying to recover from the fraud on her accounts.  A second victim spent her last months in the hospital while the defendant was draining her accounts.”

The case was investigated by the U.S. Postal Inspection Service (USPIS) with assistance from the Duval Police Department, King County Sheriff’s Office, Renton Police Department, and the Washington State Patrol.

The case is being prosecuted by Assistant United States Attorney Seungjae Lee and Special Assistant United States Attorney Benjamin Diggs.  Mr. Diggs is an attorney with the Social Security Administration Office of Inspector General, specially designated to pursue fraud cases in federal court.

Seattle – The U.S. Department of Justice today filed suit in federal court against King County asking the Court to invalidate and enjoin a King County policy aimed at banning all immigration related flights at Boeing Field in Seattle.  In April 2019, King County announced the executive order designed to ban all deportation flights from the airfield.  Because ICE can no longer use Boeing Field, it has had to transport detainees to and from the Yakima airport via bus – a trip of 150 miles. 

“King County doesn’t get to pick and choose which federal laws it wants to follow,” said Brian T. Moran, U.S. Attorney for the Western District of Washington.  “The federal government transferred Boeing Field to the County in 1948 – and the agreement states that the federal government retains the right to use the field at no cost.  King County is violating the law, the U.S. Constitution’s Supremacy Clause, and the very agreement it signed to gain ownership of the airport.”

“The vast majority of people being deported from our state have previously committed crimes in this country that lead to their deportation,” said William D. Hyslop, U.S. Attorney for the Eastern District of Washington.  “We don’t refuse to send a criminal defendant to another state to face charges – neither should we fail to return illegal aliens to their country of origin if they have committed crimes that make them inadmissible to the United States and a danger to our communities.”

In order to continue the lawful transport of detainees both to and from the Northwest ICE Processing Center, ICE must subject them to a 150-mile bus trip to Yakima, increasing the cost and lengthening the trip for the detainees.

The litigation charges the restrictions placed on Boeing Field and the contractors that service aircraft there with violating the Airline Deregulation Act (ADA), as well as the Supremacy Clause of the Constitution, by obstructing and burdening federal activities.

The litigation in Western Washington was announced today by Attorney General William Barr in a speech to the nation’s Sheriffs.  In addition to the Boeing Field litigation, the Department of Justice filed suit in New Jersey seeking to invalidate laws preventing the sharing of information between state and local law enforcement and the Department of Homeland Security.

The litigation is being handled by Michael J. Gerardi, a Trial Attorney with DOJ’s Federal Programs Branch, in consultation with Assistant United States Attorney Kristin B. Johnson with the U.S. Attorney’s Office, Western District of Washington.

us_v_king_county_boeing_field.pdf

Seattle – The suspect in the theft of nearly 40 firearms from two different gun stores pleaded guilty today in U.S. District Court in Seattle to two counts of theft of firearms from a federal firearms licensee, announced U.S. Attorney Brian T. Moran.  39-year-old JOEY A. MAILLET faces up to ten years in prison when sentenced by U.S. District Judge Richard A. Jones on May 8, 2020.

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.

Four of the stolen firearms have been recovered.  All were found in British Columbia, Canada, either at crime scenes or on criminal suspects.

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.

Prosecutors have agreed to recommend a sentence of no more than 6 years in prison.  However, the ultimate sentence is up to the judge and could be up to the statutory maximum of 10 years in prison.

The case is being 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 Snohomish, Washington, man who was sentenced just last week to 78 months in prison for dealing fentanyl-laced pills and cocaine is back behind bars tonight after being arrested on his way to a drug deal in Whatcom County, announced U.S. Attorney Brian T. Moran.  MICHAEL JOHN SCOTT, who tells his drug contacts to call him the ‘Italian Stallion,’ was released on bond following his January 24, 2020, sentencing hearing.  While waiting to get his prison assignment, SCOTT continued to set up drug deals for fentanyl-laced pills.  SCOTT is now charged with possession of controlled substances with intent to distribute and being a felon in possession of a firearm.

“Not even a federal prison sentence could deter this defendant from the lure of cash generated by his drug dealing,” said U.S. Attorney Brian T. Moran.  “He has repeatedly lived a lavish lifestyle funded by drug money despite a state drug trafficking conviction in 2013, and a federal conviction in 2019.  With this third arrest for trafficking dangerous fentanyl-laced pills, his lifestyle will be limited to a federal prison cell for quite some time.”

According to records filed in the case, SCOTT pleaded guilty in June 2019 for his role in U.S. v Hernandez et al, a 32-defendant drug trafficking case that was unsealed in December 2018.  SCOTT was a high-volume redistributor of fentanyl-laced imitation oxycodone pills and cocaine.  SCOTT delivered hundreds of thousands of dollars in cash to his cartel suppliers for the drugs–sometimes as much as $150,000 at a time.  When SCOTT’s home was searched in December 2018, law enforcement recovered illegal drugs, more than $40,000 in cash, and other tools of the drug trade.

Even as SCOTT was awaiting sentencing, he began communicating with a confidential source, offering fentanyl pills for sale.  While under law enforcement supervision, the source agreed to meet and purchase the pills.  Law enforcement executed a traffic stop on SCOTT’s car as he traveled up I-5 to complete the drug deal.  Investigators found 9 baggies of what appear to be fake oxycodone pills, with approximately 100 pills in each bag, heroin, and cash.  When they served a search warrant on SCOTT’s home, they found more drugs, more cash, and a loaded firearm in his bedside table.  According to law enforcement, the firearm was reported as stolen in King County in early November 2019.

As presently charged in the criminal complaint, distribution of controlled substances is punishable by up to 20 years in prison, and being a felon in possession of a firearm is punishable by up to 10 years in prison.

The charges contained in the criminal 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 Whatcom County Sheriff’s Office and the Drug Enforcement Administration (DEA).

The case is being prosecuted by Assistant United States Attorneys Karyn Johnson and Marci Ellsworth.

Seattle – A 21-year-old Palmdale, California, man pleaded guilty today in U.S. District Court in Seattle to federal crimes related to his computer hacking scheme and his possession of child pornography found on his digital devices, announced U.S. Attorney Brian T. Moran.  RYAN S. HERNANDEZ, aka Ryan West, who used the online moniker “RyanRocks,” pleaded guilty to a two-count information.  HERNANDEZ is scheduled for sentencing by U.S. District Judge John C. Coughenour on April 21, 2020.

According to records filed in the case, in 2016, while still a minor, HERNANDEZ and an associate used a phishing technique to steal credentials of a Nintendo employee, which were exploited to gain access to and download confidential Nintendo files related to its consoles and games.  That stolen information, including pre-release information about the anticipated Nintendo Switch console, was leaked to the public.  In October 2017, following an investigation into the hack, FBI agents contacted HERNANDEZ and his parents at their California residence.  HERNANDEZ promised to stop any further malicious activity and confirmed that he understood the consequences of any future hacking.

Nevertheless, from at least June 2018 to June 2019, HERNANDEZ returned to his malicious activities, hacking into multiple Nintendo servers and stealing confidential information about various popular video games, gaming consoles, and developer tools.  HERNANDEZ boasted about his hacking exploits on several online and social media platforms, such as Twitter and Discord, and leaked some of the stolen information to others.  HERNANDEZ further operated an online chat forum called “Ryan’s Underground Hangout” in which he and others discussed Nintendo products and shared information about possible Nintendo network vulnerabilities, and on which he shared some of the confidential information he had stolen.

In June 2019, FBI agents searched HERNANDEZ’s home and seized numerous electronic devices, including computers, hard drives, and circumvention devices used to access pirated video games and software.  On those devices, they discovered thousands of confidential Nintendo files.  Forensic analysis of his devices also revealed that HERNANDEZ had used the internet to collect more than one thousand videos and images of minors engaged in sexually explicit conduct, stored and sorted in a folder directory he labeled “Bad Stuff.”

Under the terms of the plea agreement, prosecutors and defense attorneys, will recommend three years in prison.  However, the ultimate sentence is up to the judge and could be up to the statutory maximums of 5 years in prison for computer fraud and abuse, and 20 years in prison for possession of child pornography.

HERNANDEZ has agreed to pay $259,323 in restitution to Nintendo for the remediation costs caused by his conduct.  Under the terms of the plea agreement, HERNANDEZ also will be required to register as a sex offender following his conviction. 

The case was investigated by the FBI, Seattle Cyber Task Force.  The case is being prosecuted by Assistant United States Attorney Steven Masada.

Tacoma, WA – A 26-year-old man was sentenced today in U.S. District Court in Tacoma to ten years in prison and lifetime supervised release for abusive sexual contact of a child, announced U.S. Attorney Brian T. Moran.  CHARLES EVAN CRAWFORD was 22-years-old when he sexually molested a 6-year-old child who had been left in his care, while other adults ran errands on the base.  At the sentencing hearing, U.S. District Judge Ronald B. Leighton said, “It is imperative that we in the criminal justice system offer protection and stability against future harm. I think Mr. Crawford is a threat.”

According to the stipulated facts admitted at the bench trial, the 6-year-0ld victim and other children were at the duplex on Joint Base Lewis McChord (JBLM) on June 16, 2016, when CRAWFORD’s mother left him in charge while she ran to the grocery store and picked up his step-father from his duty station.

During the period of time CRAWFORD was responsible for supervising the children, he took one 6-year-old child into the bathroom and molested the child.  The victim and other children reported the assault to other adults within hours of the sexual contact.  The child was forensically interviewed at Mary Bridge Children’s Hospital.  The FBI and the Army Criminal Investigative Division (CID) conducted a joint investigation including the retrieval of DNA evidence.  Because the assault occurred on an area of exclusive federal jurisdiction, the case was prosecuted in federal court.

CRAWFORD was arrested on June 17, 2016, and formally charged in federal court on June 20, 2016.  CRAWFORD was convicted at a bench trial on July 8, 2019.  Following his prison term, CRAWFORD will be required to register as a sex offender.

The case was investigated by FBI and Army CID.  The case is being prosecuted by Assistant United States Attorneys Grady Leupold and Marie Dalton.

 A 36-year-old resident of Tulalip, Washington, was sentenced today in U.S. District Court in Seattle to 85 months in prison for four federal felonies related to illegal gun possession and trafficking, announced U.S. Attorney Brian T. Moran.  HANY VELETANLIC, a citizen of Bosnia legally residing in the United States, was found guilty of violating the Arms Export Control Act, illegally possessing two unregistered silencers, and possessing a firearm with an obliterated serial number.  VELETANLIC was convicted in February 2019 following a two-day jury trial.  At sentencing, U.S. District Judge James L. Robart said that VELETANLIC had run an illegal “lucrative business” and taken “quite sophisticated steps” to hide his conduct.  The Court emphasized that sending guns to countries with restrictions on guns was very serious conduct. 

“This defendant repeatedly lied to law enforcement, violated judges orders, and even schemed to harm a witness against him from the Federal Detention Center,” said U.S. Attorney Brian T. Moran.  “Even behind bars he tried to transfer guns in his control to another violent group.  Such disregard for the rule of law cannot be tolerated.”

According to records filed in the case and testimony at trial, in February 2017, Swedish law enforcement seized a part of a Glock firearm from a residence in Fagersta, Sweden.  The serial number on the Glock firearm had been filed off, but Glock Inc. was able to trace the sale of the firearm using a specialized company code imprinted on the part.  The gun had been purchased by a resident of the Seattle area.  When contacted by law enforcement, the resident said he had privately sold the gun to VELETANLIC.  In May 2017, VELETANLIC contacted Homeland Security agents when he learned they had been asking about the firearm.  VELETANLIC told agents about his activity selling firearms on eBay and in direct sales.  After being advised of his Miranda rights, VELETANLIC ultimately admitted shipping packages of firearms overseas–as many as 20 different shipments to two different customer groups in Sweden.  He also has admitted shipping firearms parts to people in France, Russia, and Brazil.

In the course of a July 2017 interview with law enforcement, VELETANLIC admitted that a customer in France had shipped him two silencers in exchange for the firearms parts.  VELETANLIC claimed the silencers had been destroyed.  However, when agents received permission to look in VELETANLIC’s gun safe, they found one of the silencers.  The second silencer was turned over by VELETANLIC to agents in August 2017.

In May 2018, VELETANLIC was arrested on federal charges.  At the time of his arrest, he was carrying a stolen Ruger pistol with an obliterated serial number.

While awaiting sentencing at the Federal Detention Center (FDC) at SeaTac, VELETANLIC communicated with others outside the prison about transferring firearms to someone he thought was associated with a criminal group.  VELETANLIC believed that criminal gang was going to harm someone who had been a witness against him.  In reality, an undercover officer was posing as a possible gang member after inmates at the FDC alerted law enforcement to the scheme.  VELETANLIC denies trying to arrange the attack.

The case was investigated by Homeland Security Investigations and Bureau of Alcohol, Tobacco Firearms & Explosives (ATF) with assistance from the Swedish National Police.

The case was prosecuted by Assistant United States Attorneys Thomas Woods and Marie Dalton.

Seattle – A Portland, Oregon, resident was charged today in U.S. District Court in Seattle with enticement of a minor. The criminal complaint alleges that DIRK WALTER TICHGELAAR, 44, attempted to coerce, entice, and persuade someone under 18 to engage in sexual activity.  TICHGELAAR was arrested in Whatcom County, Washington, and made his initial appearance on the charges in Seattle this afternoon.

According to the complaint, between October 2019 and January 2020, TICHGELAAR used an internet-based chat platform to communicate about sexual abuse of children.  TICHGELAAR used a screen nickname containing the word “Pedo” to communicate on this platform.  TICHGELAAR repeatedly sought out an undercover agent who was posing as the father of two young children, a girl 5 and a boy 4.  TICHGELAAR proposed traveling to the “father’s” location so that he could sexually molest the 5-year-old.   On Saturday January 25, 2020, TICHGELAAR arrived at a Whatcom County hotel and met with an agent he believed was the “father” from the online chat.  TICHGELAAR carried a bag with an “Elsa” dress as a gift for the 5-year-old.  TICHGELAAR went to a hotel room with the agent and was arrested.

Enticement of a minor is punishable by 10 years to life in prison.

The charges contained in the criminal 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) and is being prosecuted by Assistant United States Attorney Matthew Hampton.

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

 

Tacoma – A Kitsap County man who ran a business serving as a financial guardian for elderly or disabled clients pleaded guilty today in U.S. District Court in Tacoma to Social Security Fraud – Representative Payee Fraud. WAYNE JEROME HOUSTON, 61, of Port Ludlow, Washington owned and operated Cross Point Services LLC, a guardianship organization for disabled and vulnerable adults.  Between November 2010 and December 2018, HOUSTON stole as much as $280,000 from client accounts and used the money for his own expenses.  HOUSTON is scheduled for sentencing by U.S. District Judge Ronald B. Leighton on April 17, 2020.

“This defendant stole from those he was supposed to protect at least 240 separate times,” said U.S. Attorney Brian T. Moran.  “He betrayed the clients who needed his help, as well as the Kitsap County Superior Court Judges who appointed him, believing he could be trusted to make sure disabled and vulnerable adults were protected.”

According to the plea agreement, HOUSTON and his company were responsible for managing the financial affairs of 15-20 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 to manage their benefits.  HOUSTON was the representative payee for at least 13 disabled clients.  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.

The amount stolen is still under investigation but is between $150,000 and $280,941.   Of that, approximately $83,000 was Social Security Administration benefit funds.

Social Security Fraud – Representative Payee Fraud is punishable by up to 5 years in prison and a $250,000 fine.  Under the terms of the plea agreement prosecutors will recommend no more than 40 months in prison.  Judge Leighton  is not limited by the recommendation and the ultimate sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.

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 Special Assistant United States Attorney Benjamin Diggs.  Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute fraud cases in federal court.

Seattle - A repeat offender who was arrested in Pioneer Square armed with a concealed pistol with hollow point bullets, was sentenced today in U.S. District Court in Seattle to 101 months in prison and five years of supervised release.  JONATHAN RUSHING, 40, was convicted in October 2019 following a three-day trial for possession of crack cocaine and MDMA with intent to distribute, being a felon in possession of a firearm, and carrying a firearm during and in relation to a drug trafficking crime.  This is RUSHING’s fourth conviction for being a felon in possession of a firearm.  “I think you are a threat to the community,” U.S. District Judge Thomas S. Zilly said at sentencing.  “We know that if you have possession of a gun and you are doing drugs, bad things can happen.  You know that better than anyone in this courtroom.”

“As we saw just last night, armed criminals in downtown Seattle pose a terrible risk to our community,” said U.S. Attorney Brian T. Moran.  “Through DOJ’s Project Guardian, both here in Seattle and nationally, we remain focused on partnering with our law enforcement colleagues in getting these armed criminals off the streets and behind bars where they belong.” 

RUSHING was identified during an investigation into a drug distribution ring operating in downtown Seattle on the evening of November 8, 2017.  RUSHING was observed meeting with known members of the drug distribution group and then returning to the passenger side of a car he had parked near Pioneer Square.  After sitting on the passenger side of the sedan near the glove box for about 20 minutes, RUSHING went to a bar in Pioneer Square.  When RUSHING left the bar, uniformed Seattle Police Officers approached RUSHING in order to identify him.  RUSHING took off running but was arrested a few blocks away.  RUSHING had a Glock firearm in a holster inside his waistband.  The Glock had a laser sight and flashlight attached and was loaded with hollow point bullets.  When authorities searched the car RUSHING was driving, they found dealer amounts of crack cocaine and MDMA hidden in a sock in the glove box.

After RUSHING was arrested that November night, he left the Seattle area and was a fugitive when the drug trafficking organization was indicted on February 13, 2018.  RUSHING was ultimately arrested in February 2019 in Moreno Valley, California, on a warrant from the U.S. Marshal Service.  RUSHING fought with local officers who subdued him following a traffic stop.

RUSHING has an extensive criminal history, including a 1997 conviction at age 18 in King County Superior Court for second-degree murder.  RUSHING shot and killed another 18-year-old in downtown Seattle during a drug transaction.  He has King County convictions for illegally possessing firearms in 1996 and1997 and a federal conviction for being a felon in possession of a firearm from 2012.  Rushing was arrested in this case only two months after completing his term of supervision from his 2012 federal conviction for firearm possession. 

This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.

This case is also 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 Seattle Police Department and the Drug Enforcement Administration (DEA).

The case is being prosecuted by Assistant United States Attorneys Kate Vaughan, Tobias Tobler, and Vince Lombardi.

Seattle – A 42-year-old Van Nuys, California, man was convicted late yesterday in U.S. District Court in Seattle of two federal felonies for his sexual assault on a young woman on a flight from London to Seattle.  BABAK REZAPOUR was convicted 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.  REZAPOUR was remanded to custody.  He is scheduled to be sentenced by U.S. District Judge Robert S. Lasnik on April 24, 2020.

According to records filed in the case and testimony at trial, REZAPOUR sexually assaulted the 22-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.  Abusive Sexual Contact on an Aircraft is punishable by up to two years in prison, and Abusive Sexual Contact with an Incapacitated Victim is punishable by up to three years in prison.

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

Seattle –A 39-year-old Tacoma resident pleaded guilty today in U.S. District Court in Seattle to wire fraud, aggravated identity theft, and embezzlement of mail by a postal employee.  ILIGANOA THERESA LAUOFO illegally collected more than $267,000 over the course of a fraud scheme that began in 2011 and continued until 2018.  LAUOFO is scheduled to be sentenced by U.S. District Judge Richard A. Jones on April 17, 2020.

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 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, 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 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.

Wire fraud is punishable by up to 20 years in prison and embezzlement by a postal employee is punishable by up to five years in prison.  Aggravated identity theft is punishable by a mandatory consecutive two-year prison term to follow any punishment imposed on the other counts of conviction.  The ultimate sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.

The case is being 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 is being prosecuted by Special Assistant United States Attorney Benjamin Diggs.  Mr. Diggs is an attorney with the Social Security Administration, specially designated to prosecute fraud cases in federal court.

Seattle – A Cocoa Beach, Florida, man pleaded guilty today in U.S. District Court in Seattle to wire fraud in connection with his million-dollar scheme to pose as a successful commodities trader, announced U.S. Attorney Brian T. Moran.  MATTHEW WHITE, 27, accepted $1.29 million in investments from family and friends promising big gains.  In truth, little was invested, and the profits were non-existent.  WHITE used more than $281,000 of the invested money for his personal expenses.  U.S. District Judge Robert S. Lasnik scheduled sentencing for April 10, 2020.

According to the plea agreement, between 2011 and 2018, WHITE solicited funds from investors in Florida and Washington State.  WHITE represented that he would use the money to successfully trade in futures contracts first under his own name, and later under the name of his company, M.W. Global Futures LLC, of which he was the sole member.  WHITE claimed to have expertise as a commodities trader, with special training.  He also claimed to be a member of the Chicago Board of Trade.  All of these claims were false.

WHITE provided promotional materials that claimed his trading would provide a high return on investment.  In October 2017, he sent one elderly investor a brochure claiming a return on investment in excess of 16% annually.   Once he got their funds, WHITE sent investors statements purporting to show substantial trading activity and profits.  The statements also showed WHITE’s commissions, which were allegedly tied to the level of profits.  WHITE sent some of these fictitious statements via email, constituting wire fraud.  Very little of the money was actually traded in investment accounts, and the investments that were traded resulted in losses.

Of the $1.29 million, WHITE repaid approximately $425,000 as redemptions and purported profits during the scheme.  In November 2018, WHITE was contacted by investigators from the Commodity Futures Trading Commission.  He then repaid an additional $602,000 to two victims.  Under the terms of the plea agreement, WHITE owes the remaining $281,970 in restitution to his victims.

Wire fraud is punishable by up to 20 years in prison.  The ultimate sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.

The case was investigated by the FBI and the Division of Enforcement of the Commodity Futures Trading Commission.

The case is being prosecuted by Special Assistant United States Attorney Benjamin Diggs. 

Tacoma – A Skagit County resident who operated businesses in Burlington and Sedro Woolley, Washington was sentenced today in U.S. District Court in Tacoma to 18 months in prison for his role in knowingly laundering cash drug proceeds for a drug cartel, announced U.S. Attorney Brian T. Moran. ORLANDO BARAJAS, 41, owns and operates ‘Tacos El Antojito’ in Burlington.  An extensive wiretap investigation revealed that BARAJAS was laundering the drug proceeds by transmitting the funds to Mexico using the money remittance services offered at his store.  At the sentencing hearing Judge Ronald B. Leighton noted that money laundering “is a vital component of the cycle, which incentivizes the predatory practices of the cartel to produce, hide, transport, and ply their particular toxin to a waiting community.”

“Stopping the flow of cash to the cartels in Mexico is a key component in battling the flow of these dangerous drugs into our community,” said U.S. Attorney Moran.  “This cartel-connected trafficking organization brought heroin and fentanyl into our communities. We will do all we can to stop the deadly toll of those drugs.”

According to records filed in the case, BARAJAS conspired with the drug traffickers to send tens of thousands of dollars to Mexico in amounts structured to avoid any reporting requirements.  BARAJAS created phony names to send the money, and passed along the passwords needed so that conspirators in Mexico could access the cash.  In one three-week period he transmitted more than $27,000.  BARAJAS transmitted cash for the conspiracy for most of 2018.

In early December 2018, law enforcement moved in on the organization after an 18-month investigation.  The coconspirators distributed heroin, fentanyl, cocaine and methamphetamine in Washington State, New York, Arizona, Oregon, California, Tennessee, and Utah.  In Western Washington, the group distributed these drugs in Pierce, Kitsap, King, Skagit and Snohomish Counties. Over the course of the investigation law enforcement seized thousands of counterfeit oxycodone pills laced with fentanyl, a powerful and potentially deadly opioid. 

Over the past few months leaders of the distribution conspiracy have pleaded guilty and been sentenced to prison terms ranging from four years to ten years in prison.

This investigation was conducted by the DEA Tacoma Resident Office and the Bremerton Police Department, with significant assistance from the Tahoma Narcotics Enforcement Team (TNET), Special Operations Division, Chantilly, Virginia and Northwest High Intensity Drug Trafficking Area (HIDTA).

The cases are being prosecuted by Assistant United States Attorneys Marci Ellsworth, Karyn Johnson, and Angelica Williams.

Seattle – A 35-year-old Pennsylvania man was arrested January 14, 2020, in Philadelphia, charged with distributing fentanyl and acetyl fentanyl to the Western District of Washington, announced U.S. Attorney Brian T. Moran.  The criminal complaint alleges that JESSE S. DITTMAR sent multiple envelopes containing the drug to his former girlfriend who had moved to her brother’s home in Seattle.  The former girlfriend was found dead on January 29, 2019, less than 24 hours after she texted DITTMAR that she had done some of the drugs that arrived in the mail on January 28, 2019.

DITTMAR  appeared today on the charges in U.S. District Court in the Eastern District of Pennsylvania and ultimately will appear in the Western District of Washington.

According to the criminal complaint, the 32-year-old victim broke up with DITTMAR and moved to her brother’s home in Seattle in the fall of 2018.    Despite DITTMAR’s repeated attempts to text the victim, the victim cut off contact with DITTMAR until December 2018.  During December 2018 and January 2019, DITTMAR and the victim were in contact and the texts make clear he was sending her drugs enclosed in greeting cards.  Following the victim’s death, multiple greeting cards and packaging materials for drugs were found in the victim’s bedroom.  The King County Medical Examiner determined the victim died from acute drug intoxication including fentanyl.

Distribution of fentanyl is punishable by up to twenty years in prison.

The charges contained in the criminal 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 U.S. Postal Inspection Service (USPIS) with assistance from the Seattle Police Department and Seattle Fire Department.

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

dittmar_complaint.pdf

Seattle – U.S. Attorney Brian T. Moran announced today that the Western District of Washington collected more than $14 million in criminal and civil actions in fiscal year 2019.  $10.3 million of that amount was collected in criminal cases, while $3.7 was collected in civil cases.  Additionally, the office forfeited more than $4.6 million in criminally involved property in fiscal year 2019. 

“Part of holding law breakers accountable is taking the profit out of crime and misconduct,” said U.S. Attorney Brian Moran. “I want to recognize the hard work of the attorneys and professional staff in the U.S. Attorney’s Office who work diligently to get offenders to pay up and work to see that civil fines and payments go to help those who have been damaged.”

In criminal case collections, the office secured more than $2 million in restitution for the investment fraud victims in U.S. v. Dennis Gibb.

In U.S. v. Steven Ross, the U.S. Attorney’s Office collected the full $368,000 in restitution for this case involving fraud on the Social Security Administration.

In civil collections, the office collected more than $400,000 from doctors and medical practices who settled allegations they received kickbacks for ordering unnecessary medical tests. And a nationwide flooring company paid more than $133,000 to settle allegations it paid kick-backs for government work.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

Additionally, the U.S. Attorney’s Office in the Western District of Washington, working with partner agencies and divisions, forfeited $4,625,430 in criminally-involved property in FY 2019. The proceeds from those forfeitures are deposited into the Department of Justice Assets Forfeiture Fund, where they are used to restore funds to crime victims and for a variety of law enforcement purposes.

In 2019, significant Department of Justice forfeitures included the criminal forfeiture of $745,000 real property and financial accounts in U.S. v. Lionel Hampton, et al.  The criminal group distributed controlled substances including oxycodone and laundered the proceeds through real property purchases.

In a second case, U.S. v. Keenan Gracey, the office forfeited nearly $604,000 in proceeds that Gracey paid to rent a mansion used in the fraud scheme.  We have requested that these funds be applied to Gracey’s restitution order and paid to his victims.

Seattle – A former project manager for Portland, Oregon-based shipbuilder Vigor Marine LLC, was sentenced today in U.S. District Court in Seattle to 51 months in prison for his scheme to defraud his employer out of approximately $1.5 million, announced U.S. Attorney Brian T. Moran.  SHELTON LAYNE SMITH, 50, of Portsmouth Virginia was indicted in June 2019 and pleaded guilty to wire fraud on September 26, 2019.  At the sentencing hearing, U.S. District Judge Robert S. Lasnik found that SMITH had obstructed justice by making false statements to FBI agents and urging a co-conspirator to lie to investigating agents.  SMITH was also ordered to pay $1,483,802 in restitution.

“This fraud could have resulted in the shipbuilder being barred from government contracts – a key source of shipbuilding work,” said U.S. Attorney Brian Moran. “In order to line his pockets, this defendant put the future of his employer and its 2,300 person work force at risk.”  

According to records filed in the case, in 2016 and 2017, SMITH served as the project manager on the renovation of two U.S. Coast Guard cutters called the “Bertholf” and the “Waesche.”  The renovations took place at Vigor’s Seattle facility. SMITH was responsible for selecting vendors and approving payments to them for equipment and services related to the renovations.  Smith admitted in a plea agreement that, in this role, he fabricated invoices from a fictitious company called “Marine Service Solutions” (MSS).  The fraudulent invoices caused Vigor to pay out approximately $1.5 million for work that was never done and equipment that was never provided.  SMITH used the fraud proceeds for his own purposes, including to finance his gambling activities. 

SMITH’s scheme to defraud was an elaborate charade.  SMITH persuaded a legitimate Vigor vendor to serve as a “pass-through” entity that received invoices from MSS, marked up the cost of the services, and passed on the fraudulent expenses to Vigor.  The local vendor was not aware that Marine Service Solutions was not a real company.  SMITH also misled a long-time acquaintance in Mississippi into setting up a bank account for MSS, cashing the checks, and funneling most of the proceeds to SMITH.  In emails, SMITH posed as the Mississippi man, making it appear as if the Mississippi man was the owner of MSS. 

When questioned by the FBI, SMITH repeatedly lied about MSS and encouraged his acquaintance in Mississippi to stick to a false story about the company.

Vigor terminated SMITH in 2017, after discovering that SMITH had mishandled the Bertholf project.  SMITH’s successor discovered the fraud, and Vigor reported the crime to the FBI. 

The case was investigated by the FBI.  The case was prosecuted by Assistant United States Attorney Seth Wilkinson.

Seattle – A federal grand jury in Seattle has returned a 36-count indictment charging Seattle Barrel and Cooperage Company, its owner, LOUIE SANFT, and its plant manager, JOHN SANFT, with a ten-year scheme to illegally dump caustic waste into the King County sewer system, which ultimately empties into Puget Sound.  The company allegedly used a hidden drain and lied to regulators to carry out their illegal dumping.  The defendants are scheduled to appear in U.S. District Court in Seattle on the indictment on January 9, 2020.

“At a time when we are searching for strategies to protect Puget Sound and improve water quality for fish and wildlife, we need companies to do their share – not scheme for ways to pollute in private,” said U. S. Attorney Brian T. Moran.  “I commend the investigators of the Environmental Protection Agency who investigated this assault on our natural resources.”

SEATTLE BARREL’s business involves collecting used industrial and commercial drums and reconditioning and reselling them.  Part of the reconditioning process involves washing the barrels in a highly-corrosive chemical solution.  The caustic solution has a very high pH level.  According to the indictment, since at least 2009, SEATTLE BARREL has operated under a discharge permit that prohibits it from dumping effluent with a pH exceeding 12 to the sewer system.  Effluent above pH 12 will corrode the sewer system and treatment plant, and potentially cause pass-through pollution to the Duwamish Waterway and Puget Sound.

In 2013, King County conducted covert monitoring of SEATTLE BARREL, and discovered the company was illegally dumping effluent with a pH above 12 in violation of its permit.  King County fined the company $55,250, but later agreed to reduce the fine when SEATTLE BARREL installed a pretreatment system for its wastewater.  Beginning in 2016, LOUIE SANFT represented to King County in written monthly certifications that the company had become a “zero discharge” facility and was not discharging any industrial wastewater to the sewer.

In fact, in 2018 and 2019 additional covert monitoring by the EPA inspectors revealed that SEATTLE BARREL was continuing to routinely dump wastewater with a pH above 12 into the sewer system.  EPA agents obtained a warrant to search Seattle Barrel.  Agents then installed real-time monitoring equipment that allowed them to determine when the dumping was taking place. 

Early on the morning of March 8, 2019, the covert monitors indicated SEATTLE BARREL was dumping high-pH material into the sewer.  Agents then executed the warrant and entered the building.  Inside, they discovered a portable pump on the floor near the tank of caustic solution.  They then discovered that the pump was being used to pump solution to a nearby hidden drain that had never been disclosed to King County.  The drain led directly to the sewer system.

“Our nation’s environmental laws are designed to protect our communities and natural resources from hazardous pollutants, said Special Agent in Charge Jeanne Proctor of EPA’s criminal investigation program in Washington. “This indictment demonstrates that companies that intentionally violate those laws will be held responsible for their crimes.”

Defendants LOUIE SANFT, 53, of Seattle is the owner and operator of SEATTLE BARREL.  JOHN SANFT, 51, of Issaquah, WA, is the plant manager.  The two defendants are cousins.  The defendants are charged with criminal conspiracy and 29 counts of violating the Clean Water Act for discharges in 2018 and 2019.  The men and the company are also charged with four counts of submitting false Clean Water Act Certifications.  Each defendant is also charged making false statements to special agents of the EPA.

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.

Conspiracy is punishable by up to five years in prison.  Violation of the Clean Water Act is punishable by up to three years in prison per count.   Making a false statement is punishable by up to five years in prison.

The case is being investigated by the Environmental Protection Agency Criminal Investigation Division (EPA-CID).  The case is being prosecuted by Assistant United States Attorney Seth Wilkinson and Special Assistant United States Attorney Karla Perrin, an attorney with the Environmental Protection Agency.

seattle_barrel_indictment.pdf

Seattle – A 40-year-old Seattle man was sentenced today in U.S. District Court in Seattle to seven years in prison for selling thousands of doses of fentanyl on various encrypted websites, announced U.S. Attorney Brian T. Moran.  MATTHEW WITTERS was a leading seller of fentanyl on AlphaBay and Dream Market between 2015 and 2017.  In December 2018, law enforcement seized $1.1 million in cryptocurrency, cash and other funds WITTERS admitted were the proceeds of his drug trafficking.  At the sentencing hearing U.S. District Judge John C. Coughenour ordered forfeiture of those funds, and noted WITTERS sold “an enormous quantity of an extremely dangerous drug.”

“Fentanyl traffickers, who put their profits ahead of public safety, justifiably face significant federal prison sentences,” said U.S. Attorney Brian T. Moran.  “Trafficking in these substances endangers not only the end-user, but innocent bystanders such as postal workers or family members who might come in contact with the highly toxic substance.”

According to records filed in the case, WITTERS came to the attention of law enforcement when his contact information and dark web monikers were discovered in residences connected with drug trafficking in Oklahoma and California.  WITTERS’ sales on AlphaBay ended when law enforcement shut-down the site in July 2017.

WITTERS was arrested December 10, 2018, and the following day law enforcement executed a search warrant for a safe deposit box WITTERS leased in a Shoreline, Washington bank.  Inside was more than $165,000 in currency, a variety of suspected controlled substances, mailing labels and stamps and a loaded Glock 27 pistol.

WITTERS has been in custody since his arrest. On June 13, 2019, WITTERS pleaded guilty to conspiracy to distribute controlled substances. Prosecutors agreed to cap their sentencing recommendation at ten years in prison.

The case was investigated by the U.S. Postal Inspection Service (USPIS) and Homeland Security Investigations (HSI).

The case was prosecuted by Assistant United States Attorneys Neal B. Christiansen and Thomas M. Woods.

The Department of Justice has selected an additional 30 Indian tribes to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides federally recognized tribes the ability to access and exchange data with national crime information databases for both criminal and non-criminal justice purposes.

“The Tribal Access Program is strengthening tribal governance and public safety in tribal communities across the United States,” said Attorney General William P. Barr. “TAP provides law enforcement and tribal governments real-time access to data that can help locate a missing person, identify a dangerous fugitive or prevent a domestic abuser from obtaining a gun, among many other important functions.  The Trump administration is committed to fixing these public safety gaps and serving victims in Indian country. I believe the expansion of this law enforcement tool will prove to be critical in achieving those goals.”

“Information sharing and communication is key to community safety not only in our Tribal communities but throughout our district as a whole,” said U.S. Attorney Brian T. Moran.  “The further expansion of TAP to our tribal law enforcement partners recognizes our shared priority of reducing violent crime in Western Washington.”

TAP is currently deployed to more than 75 tribes across the country with over 300 participating tribal justice agencies, including nine in the Western District of Washington.  The program provides software to enable tribes to access national crime information databases and/or a kiosk-workstation that provides the ability to submit and query fingerprint-based transactions via FBI Criminal Justice Information Services (CJIS) Next Generation Identification (NGI) System. 

This fifth expansion of TAP is part of the Justice Department’s continuing focus on public safety in American Indian and Alaska Native communities, allowing tribes to more effectively serve and protect their communities by ensuring the exchange of critical data with federal and state databases.

On November 22, Attorney General Barr launched a national strategy to address the issues surrounding missing and murdered Native Americans, and TAP provides the ability for participating tribes to exchange data with FBI CJIS, including data on missing persons from the National Crime Information Center (NCIC).

In October, the Justice Department announced an unprecedented $273 million in grants to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities.

The following tribes have been selected for the next phase of TAP in the Western District of Washington:

Cowlitz Indian Tribe

Jamestown S’Kallam Tribe

Muckleshoot Indian Tribe

Nisqually Indian Tribe

Nooksack Indian Tribe

And in the Eastern District of Washington:

Confederated Tribes of the Colville Reservation

Western Washington Tribes already using TAP include:

Suquamish Indian Tribe

Tulalip Tribes

Makah Indian Tribe

Lummi Nation

Confederated Tribes of Chehalis

Lower Elwha Tribal Community

Port Gamble S’Klallam Tribe

Quinault Indian Nation

Swinomish Indian Tribal Community

TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA), have orders of protection enforced off-reservation, protect children, keep firearms away from persons who are disqualified from receiving them, improve safety within public housing, and allows tribes to record their arrests and convictions in national databases.

TAP supports tribes in analyzing their needs for national crime information with appropriate solutions, including a state-of-the-art biometric/biographic kiosk-workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access CJIS systems for criminal and non-criminal justice purposes through the Department of Justice’s Criminal Justice Information Network. TAP, which is managed by the Chief Information Officer and the Office of Tribal Justice, provides specialized training and assistance for participating tribes, including computer-based training and on-site instruction, as well as a 24x7 help desk.

TAP is primarily funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART); the Office of Community Oriented Policing Services (COPS); and the Office for Victims of Crime (OVC).  TAP prioritized tribal applicants that have a law enforcement agency currently unable to access the FBI CJIS databases; have a tribal sex offender registry pursuant to the Adam Walsh Act and are currently unable to easily submit data to national crime information databases; and/or have a tribal court which issues orders of protection in domestic violence cases.

For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.

For more information about the Justice Department’s work on tribal justice, public safety issues and victim services, visit www.justice.gov/tribal.

Seattle – The leader of a large drug trafficking organization, moving drugs from southern California to Washington and Illinois, was sentenced today in U.S. District Court in Seattle to 15 years in prison and 5 years of supervised release, announced U.S. Attorney Brian T. Moran. CHARLES ROLAND CHEATHAM, 43, of Fife, Washington, was arrested June 6, 2018, along with some 38 other members of his drug distribution ring.  On August 30, 2019, CHEATHAM pleaded guilty to conspiracy to distribute controlled substances, carrying a firearm during and in relation to a drug trafficking crime, and conspiracy to commit money laundering.  

“This defendant and his gang were responsible for huge amounts of illegal drugs damaging our communities,” said U.S. Attorney Moran.  “Building a case against a large number of defendants is difficult work for investigators and for the attorneys who work alongside them.  I commend the tremendous effort by the investigators and Assistant United States Attorneys who worked tirelessly to take this group of armed criminals off our streets.”

According to records filed in the case, conspirators trafficked cocaine, heroin, oxycodone, illegal marijuana, and fentanyl.  Some of the co-conspirators, had been linked to violence – including shootings – in Seattle and south King County.  On the wiretap, law enforcement heard conspirators talk about various shootings after they occurred, including the September 4, 2017, shooting outside a Renton hookah lounge.  Among other things, conspirators discussed getting firearms after being shot at by rival gangs. 

Leading up to the takedown, law enforcement seized 12 pounds of heroin, more than 2 kilograms of cocaine, a pound of methamphetamine, 124 pounds of marijuana, 41 firearms, and hundreds of thousands of dollars in cash.

At CHEATHAM’s Fife residence, law enforcement seized cocaine, crack cocaine, heroin, and marijuana, as well as four firearms, more than $300,000 in cash, and jewelry, including a gem-encrusted necklace bearing CHEATHAM’s moniker “da Mayor.”  Because of his criminal history, CHEATHAM had been prohibited from possessing firearms.  However, at the same time he was dealing significant quantities of drugs, he successfully petitioned a court to have his gun rights restored.

In all, 43 defendants have pleaded guilty in connection with the drug trafficking conspiracy.  The most significant sentences in the case to date range from 5 years in prison to 11.5 years in prison.  Also today a mid-level drug distributor, MICHAEL D. SAFFORD was sentenced to 5 years in prison for his role in the scheme.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   DOJ reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  This investigation was led by the Seattle Police Department Gang and Narcotics Units, FBI Seattle Safe Streets Task Force, and the Drug Enforcement Administration (DEA).  Other agencies providing investigative assistance include the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshal Service (USMS), and the U.S Bureau of Prisons (BOP).

The case is being prosecuted by Assistant United States Attorneys Vince Lombardi, Erin H. Becker and Nicholas Manheim.

Seattle – A Mountlake Terrace, Washington, man was sentenced today in U.S District Court in Seattle to 10 years in prison and 20 years of supervised release for possession and distribution of child pornography.  CHRISTOPHER LEE WOOD, age 41, pleaded guilty July 15, 2019, about a year after law enforcement served a search warrant on his home.  A Seattle Police detective working with the Internet Crimes Against Children Task Force had identified WOOD as the person using file sharing software to distribute images of child rape.  At the sentencing hearing, U.S. District Judge Richard A. Jones noted that every time WOOD sent an image out, someone else is looking at it and multiplying the damage to the child in the image.

According to records filed in the case, WOOD was using peer-to-peer file sharing software to distribute and trade images of child sexual abuse.  When law enforcement seized his electronic devices, they found 42 images and 69 video files showing minors engaged in sexually explicit conduct.  Investigators also found seven images of a young child in lascivious poses.  The images had not been distributed, and WOOD had deleted them from his computer.  The images of a young child known to WOOD were a critical reason for the ten-year sentence.

The case was investigated by the Seattle Police led Internet Crimes Against Children Task Force and Homeland Security Investigations (HSI).

The case was prosecuted by Special Assistant United States Attorney Cecelia Gregson.  Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.

Seattle – A 30-year-old member of the Lummi Nation was sentenced today in U.S. District Court in Seattle to three years in prison and three years of supervised release for being a felon in possession of a firearm and distribution of methamphetamine.  AMBER DAWN MENDOZA, aka AMBER DAWN REDSTONE, aka AMBER DAWN MENDOZA-REDSTONE, aka CRYSTAL CARTER, aka JASMINE GARCIA, pleaded guilty June 27, 2019.  At the sentencing hearing, U.S. District Judge Richard A. Jones told her that the Court has a low tolerance for people selling drugs in tribal communities and noted that people are dying taking these drugs.

According to records filed in the case, law enforcement made two different undercover buys of heroin and methamphetamine from MENDOZA.  The heroin she sold also contained traces of fentanyl.  When the Tulalip Tribal Police served a search warrant at MENDOZA’s home they found a Remington 870 shotgun and a .22 Smith and Wesson pistol under pillows on her bed.  The shotgun had been reported stolen.  Also in the home police found cocaine, ammunition, drug paraphernalia and cash.  They found some of the marked bills used in the undercover drug buys.

MENDOZA is prohibited from possessing firearms due to five previous state court felony convictions for drug possession.

The case was investigated by the Tulalip Police Department and the FBI.  The case is being prosecuted by Assistant United States Attorney J. Tate London.  Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office.

Seattle – Seven Seas Fish Company, Ltd., of Richmond, B.C., Canada, and a company owner, JOHN HERAS, 78, of Delta, B.C., were sentenced today in U.S. District Court in Seattle to significant monetary fines and periods of probation for importation of previously refused food.  The company and HERAS admit that, between October 2014 and August 2015, they imported more than 9,000 pounds of potentially adulterated fish into the U.S.  The fish had previously been refused entry into the U.S., because the FDA judged samples of the fish too decomposed and putrid.  At the sentencing hearing, Magistrate Judge Mary Alice Theiler said, “this activity leads consumers to be concerned about food safety.”

“On two prior occasions, this company put its financial success over the food import regulations and the safety of consumers,” said U.S. Attorney Brian T. Moran.  “Now, with a third strike, it is appropriate that the company and its part-owner face a federal criminal conviction and its consequences.”

According to records filed in the case, in June 2014, Seven Seas purchased 12,100 pounds of frozen corvina, a white fish similar to sea bass.  The fish was purchased for $36,375 from a seafood company in Mexico.  Seven Seas attempted to have the fish imported into the U.S. at the Otay Mesa Port of Entry.  However, when Food and Drug Administration (FDA) Consumer Safety Officers examined the fish, they determined that one-third of the samples from the shipment were more than 20 percent spoiled.  The shipment was refused entry to the U.S.  However, Seven Seas arranged for the fish to be lawfully shipped through the U.S. to its plant in Richmond, B.C., claiming that the product would be distributed in Canada.

After the fish arrived in B.C., HERAS cooked and ate some of the fish and claimed he found nothing wrong with it.  Despite his knowledge that the fish had been refused entry to the U.S., HERAS encouraged others within Seven Seas to sell the fish to customers in Washington State and elsewhere.  Some 9,020 pounds of the fish were imported into the U.S. without the required notice to the Secretary of Health and Human services.

The FDA has not found any illness linked to those who consumed the fish.

The company was ordered to pay a $150,000 fine within six months of today.  For three years, the company will be on probation with increased scrutiny and surveillance of its imports into the U.S.

HERAS will pay a $2,000 fine and will be on probation for one year.  The company claims he no longer has a leadership role at Seven Seas.

The company has a tarnished record regarding its compliance with import regulations.  In 2008, Canadian salmon owned by the company was seized because it was sold in violation of Canadian law and the Lacey Act.  The fish, worth nearly $100,000, had been caught by illegal gill netting.  Just one year later, in 2009, Seven Seas was fined $50,000 for selling salmon without notifying regulators after the fish had been detained because it was found unfit for human consumption.  The fish was sold for mink feed, but without the required notice to the agency that had issued the detainer.

The case was investigated by the FDA Office of Criminal Investigation, Customs and Border Protection (CBP), and Homeland Security Investigations.  The case was prosecuted by Assistant United States Attorney Matthew Diggs.

Seattle – A Kent, Washington, couple were sentenced today in U.S. District Court in Seattle to prison terms for their use of a tax zapper software to hide cash sales and reduce the taxes owed at their chain of Thai restaurants, announced U.S. Attorney Brian T. Moran.  CHADILLADA LAPANGKURA, 40, was sentenced to six months in prison, and PORNCHAI CHAISEEHA, 42, was sentenced to four months in prison after pleading guilty in August 2019 to conspiracy to defraud the government by hiding more than $1 million in income.  At the sentencing hearing, U.S. District Judge James L. Robart said, “They came to this country, a land of opportunity… and then didn’t pay their taxes, and got rich.”

“Use of this ‘tax zapper’ software not only cheats on state and federal taxes, it gives a business an unfair advantage over competitors who play by the rules,” said U.S. Attorney Moran.  “These cases are time intensive to investigate, and I commend federal and state investigators for their work.  These defendants thought with a computer key stroke they could get away with this fraud.  They were wrong.”

According to records filed in the case, CHAISEEHA and LAPANGKURA were part owners of the chain that has Thai restaurants in Washington, Oregon, and Hawaii.  Some of the restaurants operated under the name “Bai Tong,” and some were called “Noi.”  The restaurants used a point-of-sale computer system that included a “cash suppression” or “Zapper” software program that modifies the sales records by removing cash sales from the business records.  Between 2010 and 2016, the two had the “Zapper” software operating at their Redmond and Tukwila, Washington, restaurants and at their Bend, Oregon, restaurant.  The restaurants earned $1,034,750 in cash income that was never reported on state or federal tax returns, resulting in an agreed tax loss of $299,806.  The pair also used the unreported cash to pay employees under the table, avoiding state and federal employment taxes.  Finally, some of the cash proceeds were siphoned off to bank accounts in Thailand, and the existence of those accounts was not reported on their income tax returns.

“Ms. Lapangkura and Mr. Chaiseeha’s actions cheated their fellow taxpayers and community members,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell.  “IRS-Criminal Investigation stands behind the honest business owners and other taxpayers in the community that pay their fair share.  Today, Ms. Lapangkura and Mr. Chaiseeha were held accountable for their shameful conduct.”

LAPANGKURA was ordered to pay a $10,000 fine, and CHAISEEHA must pay a $7,500 fine.  Both must perform 80 hours of community service during a two-year period of supervised release following their prison terms.  Because the couple has young children, the prison terms will be staggered so that one parent remains with the children.

The defendants have paid $299,806 in state and federal taxes as part of the criminal case.  The IRS may also assess other taxes, penalties, and interest through its civil processes.

The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and Homeland Security Investigations (HSI), with assistance from the Washington State Department of Revenue (DOR).  The case is being prosecuted by Assistant United States Attorney Matthew Diggs.

Seattle – Two Skagit County residents are charged in U.S. District Court in Seattle in connection with a drug distribution ring selling fake oxycodone pills laced with fentanyl in Whatcom and Skagit Counties, announced U.S. Attorney Brian T. Moran.  The pills are linked to the overdose death of a 17-year-old Bellingham teen.  ROSALIANA LOPEZ-RODRIGUEZ, 21, of Mount Vernon, Washington, was arrested last week, and her supplier, GIOVANNI ALEJANDRO NUNEZ, 21, was arrested December 3, 2019, following a rapidly moving investigation to track down the source of the tainted pills.  Both remain in custody.

“Getting these tainted pills off the street are a top priority for law enforcement,” said U.S. Attorney Brian T. Moran.  “It is heartbreaking to meet with the families of these overdose victims who lost their children to fentanyl.  We will hold those spreading these poisons accountable.”

According to the criminal complaint, a family member found the 17-year-old unresponsive on November 9, 2019.  Despite the effort of emergency responders, he could not be revived.  Investigators found a whole and a partial pill near the young man.  The pills were designed to look like oxycodone 30 mg pills with the letter M and 30 stamped on them.  However, they were not genuine and were tainted with fentanyl.  Similar pills have been linked to other overdose deaths throughout the Puget Sound region.

The investigation identified LOPEZ-RODRIGUEZ as the person who sold the pills to the victim.  In an effort to identify her source of supply, law enforcement utilized undercover officers and confidential sources to purchase pills.  Law enforcement subsequently identified NUNEZ as LOPEZ-RODRIGUEZ’s supplier.

Court-authorized search warrants were served last week on the residences of LOPEZ-RODRIGUEZ and NUNEZ.  At NUNEZ’s residence, law enforcement located a safe with hundreds of fake oxycodone pills, which matched the appearance of the fentanyl-laced pills linked to the fatal overdose.

“Ingesting any part of these fentanyl-laced pills can be life ending,” warned DEA Special Agent in Charge Keith Weis.  “Investigating the sources of these pills remains a top priority for law enforcement along with alerting the public that these pills are dangerous drugs representing dire consequences to our communities.”

“The recent overdose death associated with counterfeit pills laced with fentanyl highlights the growing impact of the opioid crisis,” said Whatcom County Undersheriff Doug Chadwick.  “The Whatcom County Sheriff’s Office and the Whatcom Gang and Drug Task Force will continue to aggressively investigate those that bring these drugs into our communities”. 

Currently both LOPEZ-RODRIGUEZ and NUNEZ are charged with possession of narcotics with intent to distribute.  The charge is punishable by up to twenty years in prison.

The charges contained in the criminal 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 Whatcom County Sheriff’s Office, the Drug Enforcement Administration (DEA), and the Whatcom County Drug and Gang Task Force, which is made up of members of the Whatcom County Sheriff’s Office, Bellingham Police Department, U.S. Customs and Border Protection (CBP) and Homeland Security Investigations.  The case is being prosecuted by Assistant United States Attorney Seungjae Lee.

nunez_complaint.pdf

Seattle – A 39-year-old Tacoma resident was charged today in an indictment alleging wire fraud, theft of public funds, Social Security number misuse, aggravated identity theft, and embezzlement of mail by a postal employee.  The indictment alleges ILIGANOA THERESA LAUOFO illegally collected more than $230,000 over the course of a fraud scheme that began in 2011 and continued until 2018.  LAUOFO will make her initial appearance on December 5, 2019, at 9:00 a.m. in Seattle.

According to the indictment, 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 and income assistance, by claiming her husband did not live with the family.  LAUOFO submitted falsified documents to bolster the claim that her husband lived elsewhere.  Had her husband’s income been counted, she would not have qualified for the assistance she received.  LAUOFO also stole and misused the identity information of minor children who lived in American Samoa, claiming they resided with her when they did not.  By claiming these children, she received additional food and childcare benefits.  LAUOFO submitted forged letters from doctors and landlords to support her claim that the children resided with her.

Additionally, starting in 2015, LAUOFO used the identity information of two family members residing in California and an acquaintance in American Samoa to receive additional benefits including food assistance, cash assistance, and childcare funds.  She claimed still more children—again, actually living in American Samoa—were residing with her under these three false identities and created letters and documents to bolster those claims as well.  All told, LAUOFO received more than $220,000 from this scheme to which she was not entitled.

The alleged fraud did not end with stolen benefits.  LAUOFO used 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.  She 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 two 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.

LAUOFO is charged with six counts of wire fraud, four counts of theft of public funds, three counts of Social Security number misuse, three counts of aggravated identity theft and one count of embezzlement of mail by a postal employee.

Wire fraud is punishable by up to 20 years in prison.  Theft of public funds is punishable by up to ten years in prison.  Social Security number misuse and embezzlement by a postal employee are each punishable by up to five years in prison.  Aggravated identity theft is punishable by a mandatory consecutive two-year prison term to follow any punishment imposed on the other counts of conviction.

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 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 is being prosecuted by Special Assistant United States Attorney Benjamin Diggs.  Mr. Diggs is an attorney with the Social Security Administration, specially designated to prosecute fraud cases in federal court.

Seattle – Two Kent, Washington, dentists who avoided more than $460,000 in income taxes were sentenced today in U.S. District Court in Seattle to seven days in prison and 400 hours of community service for filing false tax returns, announced U.S. Attorney Brian T. Moran.  MIKE HSIEH, 48, of Kent, Washington, and CHRISTINE CHEN, 46, of Renton, Washington, own Comfort Family Dentistry, Inc.  Between 2007 and 2014, the two took steps to hide illegally their income from the IRS to reduce their tax obligation.  At the sentencing hearing, U.S. District Judge Richard A. Jones ordered each to pay a $5,000 fine and said, “It was pure greed… It wasn’t about need, it was about greed…. It wasn’t a simple mistake.  For eight years you had your accountant file false tax returns.  You had eight separate years to change your mind and not be involved in criminal activity.”

According to records filed in the case, HSIEH and CHEN maintained two sets of financial statements for the business—one showing the actual expenses and another showing inflated expenses.  The fraudulent expense statements were given to their accountant for tax preparation.  The pair also established a bank account that was not disclosed to the tax preparer.  Patient fees deposited into the account were not reported as income.  Finally, the pair took cash proceeds from the dental practice and never reported that income to the accountant or on their taxes.

For tax year 2013, HSIEH admits he reported a taxable income of $232,753 when it was really more than $100,000 higher.  HSIEH should have paid taxes on income of $348,663.  For tax year 2013, CHEN reported income of $319,131 when her true income was $425,679.  For all the tax years between 2007 and 2014 they each admit failing to pay about $231,000 in taxes that they should have paid.

Both dentists own multiple properties and dental practices.  CHEN lists assets exceeding $4 million, while HSIEH lists assets of more than $2 million.  In his sentencing memorandum, Assistant United States Attorney Brian Werner noted, “This was a deliberate, calculated scheme to cheat the government….  (These) Defendants (were) not in need of money....  There was no need to cheat the government – this offense was motivated purely by greed.” 

Both defendants will pay slightly more than $231,000 in restitution.  Their attorneys estimate they will also need to pay an additional $300,000 in interest and penalties to the IRS.  In arguing that HSEIH and CHEN should avoid prison time, their attorneys noted that they criminal conviction prompted one bank to end its relationship with them, and that the dental practice was dropped as a preferred provider by a large dental insurance plan.

“Dr. Hsieh and Dr. Chen, each filed false tax returns that underreported income and inflated expenses at their dental practice in order to avoid paying income taxes. Their criminal scheme lasted years and cheated the Treasury of hundreds of thousands of dollars,” said IRS-Criminal Investigation’s Special Agent in Charge Justin Campbell. “Taxpayers should have confidence that IRS-Criminal Investigation will aggressively pursue tax fraud and ensure that all business owners pay their fair share.”

The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).  The case is being prosecuted by Assistant United States Attorney Brian Werner.