Western District of Washington

          A 66-year-old Seattle resident was arrested this morning for illegally possessing approximately 20 firearms following the serving of a search warrant at a home he owns, announced U.S. Attorney Brian T. Moran.  PARK QUAN was arrested after FBI agents investigating a data theft served a search warrant on his home and discovered the cache of weapons.  QUAN has two federal convictions for firearms violations and is prohibited from possessing firearms.  QUAN made his initial appearance in U.S. District Court in Seattle today.  He remains detained pending a hearing on August 1, 2019.

            According to the criminal complaint, agents investigating the data theft were sweeping the residence for safety when they observed numerous firearms in a bedroom used by QUAN.  Agents observed approximately twenty firearms in the bedroom, including what appeared to be an AR15-style assault rifle, an AK47-style assault rifle, and handguns; firearm accessories, including bump stocks, scopes, and grips; ammunition; and gun powder.  Agents also encountered what appear to be fake grenades in the bedroom.

            QUAN has a 1983 conviction in Washington for being a felon in possession of explosives and a 1991 conviction in Texas for possessing an unregistered machine gun.  QUAN is prohibited from possessing firearms.

            Being a felon in possession of a firearm is punishable by up to ten years in prison and a $250,000 fine.

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

            The case is being investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms & Explosives.  The case is being prosecuted by Assistant United States Attorneys Steven Masada and Andrew Friedman.

          A 38-year-old man was charged today in U.S. District Court in Seattle with two counts of theft from a federal firearms licensee in connection with gun store burglaries in Clallam and Skagit Counties, announced U.S. Attorney Brian T. Moran.  JOEY A. MAILLET will make his initial appearance on the complaint at 2:00 today.  MAILLET has been held on local burglary charges since May 10, 2019, when he was arrested by Ferndale Police.  MAILLET was transferred to federal custody from Clallam County.

            According to records filed in the case, forensic evidence and surveillance video link MAILLET to the April 13, 2019, burglary of Fred’s Guns in Sequim, Washington.  In that case, the suspect used a backhoe to ram the doors of the store and then broke glass display cases to steal 26 firearms.  While the Sequim burglary was still under investigation, there was a second gun store burglary on May 3, 2019, at All American Armory in Bow, Washington.  In that case, surveillance showed the suspect used a stolen pick-up truck to back into the doors of the store, shattering them.  The suspect then used a garbage can 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.

            MAILLET was held on state charges in Clallam County in connection with the Fred’s Guns burglary.  Those charges were dismissed earlier this week in favor of federal prosecution.

            Only one of the stolen firearms has been recovered.

            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.

            Theft from a federal firearms licensee is punishable by up to ten 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 with assistance from Clallam County Deputy Prosecutor Jesse Espinoza.

maillet_complaint.pdf

          A 38-year-old Seattle man who persisted in trafficking methamphetamine, heroin, and cocaine, despite repeated run-ins with law enforcement, was sentenced today in U.S. District Court in Seattle to 11 years in prison and 5 years of supervised release, announced U.S. Attorney Brian T. Moran.  MICHAEL LAVON DAVIS pleaded guilty to conspiracy to distribute controlled substances, being a felon in possession of a firearm, and conspiracy to commit money laundering.  DAVIS was arrested in June 2018 as part of a large drug trafficking conspiracy that spanned five western Washington counties.  DAVIS was identified as a co-leader of the group, recruiting others to transport heroin, methamphetamine, and cocaine from California to Washington and Illinois.  At the sentencing hearing, U.S. District Judge Richard A. Jones said this was “a very large drug trafficking organization… you were a critical player in the organization… one of several key people who kept this organization afloat.”

            “This defendant persisted in bringing cocaine and heroin into our community and recruited others to his life of crime,” said U.S. Attorney Brian T. Moran.  “In this investigation more than 40 defendants were taken off the streets and are now paying the price for the poison they spread in our communities.  We owe a debt of gratitude to the relentless work of federal, state, and local law enforcement officers who brought an end to this criminal conspiracy.”

            The drug ring was targeted by DEA, FBI, and the Seattle Police Department as part of an effort to combat rising crime in South King and North Pierce County.  According to records filed in the case, conspirators trafficked cocaine, heroin, methamphetamine, oxycodone, illegal marijuana, and fentanyl.  Associates of some of the traffickers were shot and some killed in various shooting incidents in both Seattle and South King County.  On the wiretap, law enforcement heard conspirators talk about various shootings after they occurred.  Following an 18-month wiretap investigation, law enforcement raided more than 50 locations, seizing 12 pounds of heroin, more than 2 kilos of cocaine, a pound of methamphetamine, 124 pounds of marijuana, 41 firearms, and hundreds of thousands of dollars in cash.

            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, the FBI Seattle Safe Streets Task Force, and the Drug Enforcement Administration (DEA).  Other agencies providing investigative assistance include ATF, USMS, and the U.S Bureau of Prisons.

          The cases are being prosecuted by Assistant United States Attorneys Vince Lombardi, Erin Becker, and Nicholas Manheim.

          A disbarred Seattle attorney pleaded guilty today to aggravated identity theft and wire fraud for his scheme to steal the identities of a romantic partner and his relatives and using that personal information for fraud, announced U.S. Attorney Brian T. Moran.  JOHN WILLIAM ALDERSON, 47, had a previous conviction in 2003 for wire fraud and Social Security fraud which resulted in a 41-month prison sentence and his disbarment.  In 2014, ALDERSON met and began a romantic relationship with the victim and stole the victim’s identity to open multiple credit card accounts and incurred more than $260,000 in debt.  All the while ALDERSON lied about his age, claimed to be independently wealthy, and concealed his prior criminal conviction and disbarment.  Prosecutors have agreed to recommend no more than 54 months in prison when ALDERSON is sentenced by U.S. District Judge Richard A. Jones on November 1, 2019.

            According to the plea agreement, ALDERSON moved into his victim’s home in 2015 and gained access to the victim’s personally identifying information.  Using that information ALDERSON opened the credit card accounts and pretended to be the victim to dispute charges on the credit cards.  One of the charges incurred on the cards was for ALDERSON to have plastic surgery at a Bellevue clinic.  Those charges traveled interstate, constituting wire fraud.  ALDERSON induced the victim to write him checks that were to be deposited in a joint investment account but instead were used by ALDERSON for his own expenses.  ALDERSON forged letters and emails from various attorneys representing that ALDERSON was to receive a large financial settlement.  Those representations were false.  ALDERSON also used the identity of relatives living in Enumclaw to open an additional credit card account resulting in more than $38,000 in fraud.  ALDERSON admits to a total fraud loss of more than $262,712.

            The case was investigated by the FBI.

            The case is being prosecuted by Assistant United States Attorney Michael Dion.

          A former Microsoft software engineer was arrested today and charged in a criminal complaint charging him with mail fraud for a scheme to steal $10 million in digital currency from Microsoft, 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.  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 gift cards.  The complaint alleges KVASHUK resold the value on the internet, using the proceeds to purchase a $160,000 Tesla vehicle and a $1.6 million dollar lakefront home.  KVASHUK made his initial appearance in U.S. District Court in Seattle today and is detained pending a further hearing on Friday July 19, 2019.

            According to the criminal complaint, KVASHUK was to use a test Microsoft store account to access the company’s online sales platform and simulate the experience of customers making purchases.  The system was set up to ensure no physical products ever shipped.  The testing program was not supposed to involve purchases of ‘currency stored value’ (CSV) such as gift cards. KVASHUK used test accounts to purchase CSV, and then resold some or all of it on Internet reseller websites. Initially, he started stealing smaller amounts of about $10,000 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 was transferred to his bank accounts.

            Microsoft investigators confronted KVASHUK about the thefts in May 2018 and he was fired by the company in June 2018.

            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.

            Mail fraud is punishable by up to twenty years in prison and a $250,000 fine.

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

            The case is being prosecuted by Assistant United States Attorney Michael Dion.

 

WASHINGTON, DC — The U.S. Department of Justice announced today a new tool giving tribal governments the ability to directly input data and gain access to the FBI’s National Sex Offender Registry (NSOR) using the Tribe and Territory Sex Offender Registry System (TTSORS).  The system connection will be available to all tribal governments already participating in the Tribal Access Program (TAP), which allows information sharing between tribal and federal government criminal information systems.

TTSORS is a no-cost registry system provided by the Justice Department’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART).  The Department’s Office of the Chief Information Officer (OCIO) developed the connections which allows tribes to seamlessly submit new and updated sex offender information directly from TTSORS to NSOR. 

“The Department of Justice is dedicated to addressing the public safety crisis in American Indian and Alaska Native communities, including the high rates of sexual violence against women and children,” said Attorney General William P. Barr.  “Providing a direct connection to the FBI National Sex Offender Registry gives tribal law enforcement the information they need to investigate and prevent these heinous offenses.”

“Nine of our Western Washington tribes participate in TAP, and this new ability to share information will improve safety in our communities,” said U.S. Attorney Brian T. Moran.  “I’m hopeful that more of our tribal partners will successfully apply for TAP funds and we will see additional communities joining in this important information sharing network.”

American Indian and Alaska Native people suffer persistently high rates of victimization, including from sexual assault. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner.  In June, the department extended a deadline for tribes to apply for up to $167 million in federal funds through August 16, 2019, to support crime victims throughout Indian country.

“The direct connection between the National Sex Offender Registry and Tribe and Territory Sex Offender Registry System provides increased resources for identifying, tracking, and sharing information about persons convicted of committing these crimes,” said Gwendena L. Gatewood, Chairwoman of the White Mountain Apache Tribe of the Fort Apache Indian Reservation.  “It will also allow for further improvements in providing a safer community for all involved to integrate tribal law, custom, tradition and practices in a comprehensive fashion consistent with holding offenders accountable.”

“Standing Rock has always had a priority of ensuring public safety,” said Mike Faith, Chairman of the Standing Rock Sioux Tribe.  “Technological advances to our systems ensure that our SORNA staff are able to input offender information and get back in the field while ensuring compliance is maintained.”

The Sex Offender Registration and Notification Act, Title I of the Adam Walsh Child Protection and Safety Act of 2006, requires that, when an offender initially registers or updates his or her information in a jurisdiction, that the state, tribe, territory or District of Columbia must submit immediately the information to NSOR as well as other jurisdictions where the offender has to register. TTSORS is a fully functioning registry system that complies with SORNA requirements. TTSORS was created to assist the Indian tribes that have elected to implement SORNA.

Since 2015, the SMART Office, OCIO, the FBI, the Office of Tribal Justice, Community Oriented Policing Services and the Office for Victims of Crime, have worked together to develop the Tribal Access Program to provide tribes direct access to national crime information systems for both criminal and non-criminal justice purposes. This includes the ability to directly enter NSOR data and enhance the capacity to collect and submit fingerprints and palm prints to the FBI. TAP has been instrumental in assisting tribes with ongoing implementation of SORNA. In fiscal year 2019, the department expanded TAP to 25 more tribes, for a total of 72 participating tribes.

Tribes with TAP access in Western Washington include: Chehalis, Swinomish, Lower Elwha, Quinault, Port Gamble S'Klallam, Suquamish, Tulalip Tribes, Makah, and Lummi Nation.

          A 30-year-old man arrested last year in Snohomish County, Washington was sentenced today in U.S. District Court in Seattle to five years in prison and three years of supervised release for his scheme to defraud Target and its customers of more than $700,000, announced U.S. Attorney Brian T. Moran.  JEFFERY DOUGLAS MANN, of Marysville, Washington, led a group of five people who used a system to decipher gift card identifying numbers and used them across five western states for fraud.  U.S. District Judge James L. Robart ordered MANN to pay more than $214,000 in restitution saying MANN, “is obviously talented and used that talent to break the law… This is not a victimless crime -- it impacts real people.”

          According to records filed in the case, between May 2017 and December 2017, the ring stole gift card balances worth more than $700,000, and often sold illegally purchased goods or store gift cards for bitcoin on an internet marketplace.  The co-conspirators used a formula to reverse-engineer and identify unique bar code numbers of thousands of authentic gift cards sold by Target to legitimate customers.  Members of the scheme then used the retailer’s automated customer service telephone system to verify balances linked to the various stolen gift card numbers.  They then loaded active gift card numbers onto a mobile or electronic wallet app on their phones, which the co-conspirators used to purchase merchandise and legitimate gift cards at various Target store locations across at least five states: Washington, Oregon, California, Nevada and Colorado.  For example, on a single occasion in November 2017, MANN and others used roughly 180 compromised gift card numbers to make $6,900 in purchases at the Southcenter Mall Target store in Tukwila, Washington. 

          When the actual cardholders later tried to use their gift cards, they discovered that they had zero balance.  In December 2017, Target modified its gift card system in response to the fraud, putting an end to the scheme. Target reimbursed customers for their losses.

            MANN pleaded guilty to wire fraud in March 2019.  Four other defendants have resolved their criminal charges: Corey Mosey was sentenced to 46 months in prison; Joshua Newman was sentenced to 38 months in prison and Derrick Quintana was sentenced to 27 months in prison.  Kennady Weston is resolving her case with participation in federal drug court.  Those defendants agreed to pay a total of roughly $263,000 in restitution in addition to that ordered from MANN.

            The case was investigated by the U.S. Secret Service, with assistance from the Kirkland, Lynnwood, and West Linn (OR) Police Departments, and is being prosecuted by Special Assistant United States Attorney Benjamin Diggs and Assistant United States Attorney Steven Masada.

          A 50-year-old Tukwila, Washington man, with a prior state conviction for possession of child pornography, was sentenced July 1, 2019, to six years in prison, announced U.S. Attorney Brian T. Moran.  JEFFREY ALLEN MORRIS was arrested in September 2018, following a cybertip to the National Center for Missing and Exploited Children (NCMEC).  At the sentencing hearing, U.S. District Judge James L. Robart sentenced MORRIS to ten years of supervised release to follow prison, telling the defendant that he needed to get control of his demons or he would “spend the rest of his life in prison.”

            According to records filed in the case, the investigation by the Seattle Police and  Homeland Security Investigations began May 10, 2018, when Microsoft Skype reported to NCMEC that a subscriber, MORRIS, had uploaded images of child rape.  Law enforcement confirmed the images were sexual abuse of toddlers.  A review of MORRIS’ Skype chats revealed his interest in sex acts with children as young as 3 years old.  When law enforcement conducted a court-authorized search of MORRIS’ residence, forensic analysis revealed hundreds of images of child rape and molestation on his electronic devices.

            MORRIS served a 21-month state sentence in 2007 for possession of images of child pornography.  In that case, he had posted over 100 images of sexually explicit images of child rape and abuse to Yahoo.com profile photos.  A search of his computers at that time revealed he had more than 700 images and 14 movies depicting the sexual abuse of children.

          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 better, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

          The case was investigated by Homeland Security Investigations, as part of the Internet Crimes Against Children (ICAC) Taskforce led by the Seattle Police Department.

          The case is being 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.

          A 33-year-old resident of Clark County, Washington was sentenced July 1, 2019 to 66 months in prison for distributing methamphetamine, announced U.S. Attorney Brian T. Moran.  JOSHUA ADAM HOOVER was on supervised release for illegally selling a firearm in 2011, when he sold methamphetamine to a person working with law enforcement.  U.S. District Judge Benjamin H. Settle imposed a four-year term of supervised release to follow this new prison term.

            According to records filed in the case, HOOVER sold methamphetamine to the confidential source on two occasions in June and July 2018.  The transactions were audio and video recorded and took place in the Battle Ground area of Clark County.  HOOVER was arrested on State charges by Battle Ground PD officers on August 8, 2018.  He was taken into federal custody on October 31, 2018.  HOOVER pleaded guilty on February 7, 2019.

            HOOVER has a lengthy criminal history including five felony convictions between 2003 and 2016.

            The case was investigated by the Southwest Washington Interagency Gang Enforcement Team (also known as the FBI’s Safe Streets Taskforce), and the Battle Ground Police Department.  It was prosecuted by Assistant United States Attorney Gregory A. Gruber.

             U.S. Attorney Brian T. Moran today highlighted collaborative work among the U.S. Attorney’s Office, the Federal Public Defender, the U.S. Probation Office, and the Bureau of Prisons to assist formerly incarcerated individuals with the transition from prison to the community.  The Western District of Washington is one of the first federal judicial districts to create a “reentry guide” for individuals preparing for release.  The district also created one of the first “warrant clearing” initiatives to assist individuals who are federally incarcerated with clearing state court warrants.  Unresolved warrants prohibit incarcerated individuals from participating in programs that play an important role in the rehabilitative process, such as halfway houses and drug treatment.

            “As a long-time prosecutor, I am always pleased when someone who has been incarcerated is able to successfully rejoin the community and become a contributing member of society,” said U.S. Attorney Brian T. Moran.  “That success makes our communities safer and frees up resources to investigate and prosecute other crimes.  I’m pleased that the Western District of Washington is a leader in working collaboratively to reduce barriers and facilitate successful transitions to the community.”

            Working with the Bureau of Prisons at the Federal Detention Center in SeaTac, the U.S. Probation Office, and the Federal Public Defender, the U.S. Attorney’s Office produced a 32-page guide for those within six months of their release from incarceration.  The content of the guide was created with input from those in FDC SeaTac.  Currently incarcerated individuals were asked what information they most needed, and prosecutors, defenders, probation, and the Bureau of Prisons worked together to provide clear and comprehensive answers.  The guide was first provided to incarcerated persons in December 2018 as part of a quarterly reentry event at FDC SeaTac and is now provided on an ongoing basis to individuals within six months of release.  At the reentry events, reentry experts provide information on education, employment, and housing options and answer questions about legal concerns regarding supervised release. 

            Incarcerated individuals are also able to take advantage of a unique warrant-clearing initiative in the Western District of Washington.  Through this program, one of only a few in the country, federal prosecutors work hand-in-hand with local prosecutors and federal defenders to determine the warrant status and seek a resolution that improves the likelihood of successful reentry.  By clearing the warrants, incarcerated persons can take advantage of more education programs at the Bureau of Prisons and more successfully transition to the community upon release.

          A long-time investment advisor in Redmond, Washington was sentenced today in U.S. District Court in Seattle to five years in prison for defrauding more than 15 investors of more than $3 million, announced U.S. Attorney Brian T. Moran.  DENNIS GIBB, 72, the President and owner of Sweetwater Investments Inc., pleaded guilty in March 2019, to wire fraud and falsification of records with the intent to obstruct a matter within the jurisdiction of the Securities and Exchange Commission (SEC).  Simultaneously, GIBB and Sweetwater investment entered into a consent decree with the SEC liquidating the Sweetwater Income Flood LP Fund and barring GIBB from further investment activity.     At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said GIBB “entered into a scheme and deliberately, intentionally and knowingly stole money from people who came to him…. Many victims, late in their lives, entrusting him with money they intended to get them through the last years of their lives.”

            “Those who invested with this defendant were not looking for the ridiculously large profits promised by some Ponzi schemers – they invested with the defendant because he promised them a secure, if modest, payout,” said U.S. Attorney Brian T. Moran.  “Instead, over more than a decade this defendant stole their savings, retirement funds, future home down payments, and children’s education funds.  To make matters worse, he provided victims with false tax documents, causing some to pay additional taxes on non-existent gains.  This defendant not only robbed the victims financially, he stole their peace of mind and their trust.”   

            According to the criminal case filings and the SEC consent decree, GIBB created Sweetwater Income Flood Limited Partnership, a private fund Gibb managed, in 2008.  As early as 2007, he began soliciting investors for the fund targeting those who wanted steady retirement income in the near future.  Between 2007 and 2018, about 25 investors put about $7.3 million into the fund.  GIBB secretly transferred more than $3.1 million from the fund for his own expenses.  To hide his theft, GIBB sent investors falsified quarterly account statements.  When the SEC began an examination of the Sweetwater Investments in May 2018, GIBB provided false records to examiners indicating the fund had been liquidated. 

          GIBB agreed to forfeit a money judgment of $3,197,401. The Court also ordered restitution of $4,233,616.   This amount includes approximately $1.77 million that remained in the Income Flood fund at the time of Gibb’s consent decree and guilty plea.  Gibb agreed to turn these funds over to the SEC for disbursement to victims, and the funds will be disbursed as part of the restitution order. 

         The case was investigated by the SEC and the FBI.  The case is being prosecuted by Assistant United States Attorney Matthew Diggs.

          The former Director of Sports Marketing and Alliances at Microsoft was sentenced today in U.S. District Court in Seattle to 28 months in prison, and three years of supervised release for wire fraud for his scheme to profit by stealing from Microsoft.  JEFF TRAN, a/k/a TRUNG TRAN, 45 of Seattle, used his position at Microsoft to attempt to steal more than $1.5 million through the creation and submission of fraudulent invoices and the unauthorized use of other Microsoft assets.  At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez asked TRAN why he stolen the money. TRAN told the court he was still trying to answer why he did it.

            According to records filed in the case, TRAN oversaw Microsoft’s promotional relationship with the National Football League (NFL).  Tran’s scheme began in January of 2016.  Tran, who was responsible for distributing Microsoft’s Super Bowl tickets to Microsoft employees, secretly misappropriated over $40,000 worth of 2016 Super Bowl tickets and sold them to a New York ticket broker.  He repeated this activity the following year, this misappropriating tickets worth more than $200,000 for the 2017 Super Bowl. 

          Tran continued his theft after the 2017 Super Bowl.  In March 2017, TRAN persuaded a Microsoft vendor to invoice Microsoft $775,000 for supposed services the vendor had never provided.  Tran explained the request by telling the vendor the services had been provided by another company that could not bill Microsoft directly because it had not gone through Microsoft’s accreditation process.  At Tran’s direction, Microsoft paid the $775,000 invoice to the vendor, and the vendor forwarded the proceeds to Tran. 

          In July 2017, Tran attempted to repeat the invoicing scheme, and asked the vendor to prepare a $670,000 invoice for services it had not provided.  This time, the vendor became suspicious and reported Tran’s activity to Microsoft.  When Microsoft confronted Tran, Tran made false statements to corporate investigators, destroyed evidence, and attempted to persuade witnesses to lie to investigators. 

          Tran returned $775,000 to Microsoft days after being confronted.  Tran returned the remaining stolen funds after entering into a plea agreement with the government. 

            In asking for a prison sentence, prosecutors wrote to the Court that, “When Tran stole from Microsoft, the company was already paying him hundreds of thousands of dollars annually to do a job most people would envy.  Tran’s decision to steal when he already occupied a lucrative and privileged position makes his conduct more volitional, and the crime more reprehensible, than crimes committed by people who steal, deal drugs, or commit other crime to put food on the table.”  

            TRAN has already paid restitution to Microsoft of $1,036,000.   Chief Judge Martinez also imposed a $50,000 fine.

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

          A 52-year-old Bothell, Washington woman was sentenced today in U.S. District Court in Seattle to three years in prison and five years of supervised release for bank fraud and aggravated identity theft for a five-year scheme in which she cashed 306 fraudulent checks, totaling $400,526 and drawn on the bank accounts of her employer.  ERIN K. McCAULEY, also known as ERIN K. CHARLES, was a trusted part-time employee of a Lynnwood, Washington property management firm.  The firm managed a number of commercial properties and a contracting business.  It was owned by a couple who brought McCAULEY on in 2004 to assist with the book-keeping.  As early as 2012, McCAULEY began writing large checks to herself and forging the owners signatures.  At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said “she stole a significant amount of money from a small company and it greatly impacted that business.”

            According to records filed in the case, McCAULEY had become a trusted employee of the couple as they entered their 60’s and 70’s.  They gave McCAULEY gifts, assisted her with car and house payments and made sure she got an annual bonus.  In 2017 for example, the couple loaned McCAULEY $8,000 for home repairs.  It appears now they were repaid with some of the $400,000 that was stolen from their own accounts.

            When the couple became aware of the theft, they worked with the FBI to see if McCAULEY would admit the embezzlement.  She vastly underestimated the amount of money she had embezzled, and acknowledged much of the money had gone to feed her gambling addiction.

            In asking for a four-year prison sentence prosecutors wrote to the court McCAULEY “wanted money that she did not have in order to live a lifestyle should could not afford. To do so, she took advantage of her position as the trusted office manager and bookkeeper for the (couple) and used their business accounts as her personal “piggy bank” to fund the lifestyle she wanted to live.”

            The case was investigated by the FBI and was prosecuted by Assistant United States Attorney Stephen Hobbs. 

WASHINGTON – Attorney General William P. Barr’s Advisory Subcommittee on Native American Issues (NAIS) convened this week during the U.S. Attorney’s National Conference in Washington, D.C., to discuss a wide range of justice issues affecting Indian Country, announced U.S. Attorney Trent Shores, Chair, and U.S. Attorney Kurt Alme, Vice Chair.

“The Native American Issues Subcommittee is focused on reducing violent crime against women and children in Indian Country, including missing and murdered indigenous persons,” said U.S. Attorney Trent Shores. “I am thankful for Attorney General Barr’s leadership on these issues. He understands the law enforcement and jurisdictional challenges faced by Native Americans and Alaska Natives. We look forward to working with him and with our federal, tribal, state and local partners to find viable solutions that will improve public safety in Indian country.”

“In my first months as U.S. Attorney for the Western District of Washington, I am working to accomplish my goal of visiting leaders of all 25 federally recognized tribes in the Western District, to hear their concerns about law enforcement in Indian Country and the important working relationship with federal law enforcement,” said U.S. Attorney Brian T. Moran.  “As part of the Native American Issues Subcommittee, I am pleased be able to represent those voices here at DOJ, and I look forward to upcoming visits to gather input from additional tribal partners.”

On Tuesday, the NAIS met with Tara Katuk Mac Lean Sweeney, Assistant Secretary of Indian Affairs, Department of the Interior, and discussed cross-agency collaboration in order to provide more responsive and effective justice services to Indian Country. They further discussed Indian Country case investigations, case intake and tracking databases, and tribal law enforcement resource allocation. The NAIS also reviewed President Trump’s priorities for Indian Country justice. Those priorities include protecting Native American children in the Indian Health Services system, collaboration among Department of Justice, the Department of the Interior, and tribal law enforcement agencies, reducing violent crime, and providing services to help victims to overcome trauma.

On Wednesday, Trent Shores, NAIS Chair and U.S. Attorney for the Northern District of Oklahoma, moderated a panel titled Murdered and Missing Indigenous Women: A Crisis in Urban America & Indian Country. Panelists included Charles Addington, Director of the Office of Justice Services, Bureau of Indian Affairs; Kurt Alme, U.S. Attorney for the District of Montana; Tracy Toulou, Director of the Office of Tribal Justice; Laura Rogers, Acting Director of the Office on Violence Against Women; and Bryan Vorndran, Deputy Assistant Director of the FBI. The panel discussed the development and implementation of protocols to investigate murdered and missing indigenous persons and how to more accurately measure the scope of the problem in both urban America and Indian Country in order to develop strategies to address it.

In August, the subcommittee is scheduled to reconvene in Indian Country in New Mexico.

The NAIS consists of the approximately 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and makes policy recommendations to the Attorney General  regarding public safety and legal issues that impact tribal communities.

The NAIS is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime.

 

 

          A former Seattle resident who relocated to Laguna Niguel, California in the midst of his fraud scheme, pleaded guilty today in U.S. District Court in Seattle to mail fraud, announced U.S. Attorney Brian T. Moran. TROY CLINTON VAN SICKLE, 48, admits that between 2011 and 2014, he fraudulently operated an asset recovery business in order to defraud unhappy investors who previously had lost money they had invested with a Bellevue investment company.  U.S. District Judge James L. Robart scheduled sentencing for September 30, 2019.

            According to records filed in the case, during May and June 2011, VAN SICKLE represented to the unhappy investors that he had a company, Troy C. Van Sickle Consulting and Collections, and that for a fee he could help them recover their lost funds.  VAN SICKLE falsely claimed that he had helped other investors recover large sums, and, in order to win investors’ trust, VAN SICKLE made various promises, including entering into a romantic relationship with one of the investors. 

          In February of 2012, VAN SICKLE moved to California.  After he moved, VAN SICKLE told the investors that if they loaned him $75,000, he would (1) use the money in order to recover their lost investment, and (2) repay the $75,000 in 30 days.  In fact, VAN SICKLE planned to use the money for his own purposes, including paying his rent through the end of the year, and did not intend to repay the investors.  In July 2013, after one of the investors who loaned VAN SICKLE funds repeatedly sought the return of the money he loaned VAN SICKLE, VAN SICKLE sent the investor an invoice with false charges purporting to explain how VAN SICKLE had used the loaned funds in order to try to recover the investor’s funds.

            Mail fraud is punishable by up to 20 years in prison and a $250,000 fine.

            Over the course of the scheme, VAN SICKLE fraudulently took in $75,000.  Under the terms of the Plea Agreement, in addition to repaying the investors that $75,000, VAN SICKLE has agreed to repay the investors an additional $175,000 in fees that he received from the investors. 

            The case was investigated by the FBI and the Washington State Department of Financial Institutions.  The case is being prosecuted by Assistant United States Attorneys Arlen Storm and Andre Penalver.

          Three members of an international drug trafficking organization were sentenced today in U.S. District Court in Seattle to prison terms ranging from 24-32 months for distributing more than a thousand kilograms of illegal marijuana, announced U.S. Attorney Brian T. Moran.  The defendants pleaded guilty in March 2019, admitting in their plea agreements that they used money from conspirators in the Peoples Republic of China (PRC) to purchase homes in the Puget Sound area that they used for marijuana production.  QIFENG LI, 41, was sentenced to 32 months in prison and 4 years of supervised release, his wife XIAMIN HUANG, 39, was sentenced to two years in prison and two years of supervised release, and brother QIWEI LI, 45, was sentenced to 30 months in prison.  Of the three, QIWEI LI is the only one who is not a U.S. Citizen and faces deportation following his prison term.  At the sentencing hearing U.S. District Judge John C. Coughenour said this was “an extensive and sophisticated grow operation over a multi-year period.”

          “Foreign money is increasingly used to create networks of illegal and unsafe grow houses, blighting our neighborhoods and defeating the closely regulated marijuana marketplace the State of Washington pledged to create,” said U.S. Attorney Brian T. Moran.  “These illegal grow houses are toxic from chemicals, pose a fire risk from jury-rigged wiring, and are targeted for violent strong-armed robberies.  These defendants are forfeiting more than $1 million in cash and properties, but they are fortunate they escaped being shot or killed at one of their illegal grows.”

          According to the facts admitted in the plea agreement, between July 2015 and May 2018, the conspirators purchased homes in Burien, Kent, Seattle and Tukwila, which they used exclusively for marijuana production.  More than $598,000 was wired to the conspirators from China to fund the purchases.  The defendants shipped more than 1,000 kilograms of marijuana to the New York City area, via FedEx, UPS, the U.S. Postal Service and a private freight forwarder.  Ultimately, in an effort to streamline distribution, the conspirators established a shipping company, Pony Movers, LLC, to transport their marijuana from Western Washington to a warehouse in Little Ferry, New Jersey.  The defendants then deposited the profits from the marijuana enterprise into their bank accounts in amounts less than $10,000 to avoid financial reporting requirements.            

          QIFENG LI and XIAMIN HUANG are U.S. citizens.  QIWEI LI is a Lawful Permanent Resident who likely will face deportation following his prison term.

          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 DEA and Homeland Security Investigation (HSI).  Significant investigative assistance was also provided by the Seattle Police Department and FBI.

          The case is being prosecuted by Special Assistant United States Attorney Joe Silvio and Assistant United States Attorney Marie Dalton.  Mr. Silvio is an attorney with Homeland Security Investigations, specially designated to prosecute cases in federal court.

          A former bank robber who armed himself with nine firearms to protect his extensive drug dealing business, was sentenced today in U.S. District Court in Seattle to twelve years in prison for three federal felonies, announced U.S. Attorney Brian T. Moran.  KEVIN TA, 31, of Des Moines, Washington, came to the attention of law enforcement in May 2018, when two Burien brothers overdosed on fentanyl within hours of each other.  One brother did not survive.  Electronic communications between TA and one victim suggested TA supplied the drugs.  U.S. District Judge John C. Coughenour imposed five years of supervised release to follow the prison term.

            “This defendant continued to deal his poison even after being sent a photo of one of his customers in a hospital bed on life support,” said U.S. Attorney Brian T. Moran.  “This sentence  protects the community from someone who illegally stockpiled firearms, was blinded by greed, and showed callous disregard for those whose addiction increased his profits.” 

            According to records filed in the case, following the overdose death, the King County Sheriff’s Office and the Bellevue Police Department moved quickly to build a case against TA and obtain search warrants.  When law enforcement searched his residence and car on June 21, 2018, they seized seven firearms from his bedroom closet and found significant quantities of methamphetamine, heroin and fentanyl pills.  In TA’s car they found two additional firearms and additional drugs.

            When investigators reviewed TA’s electronic messages and social media posts, they found him bragging about the money he made dealing fentanyl.  The mother of the overdose victim sent TA information and pictures via text about her son’s medical condition, and death from the overdose.  TA did not react or slow his dealing when confronted by the fact that a customer had died.  The brothers had not intended to purchase fentanyl, and did not know it was in the drugs they consumed.  

            TA was prohibited from possessing any firearms after serving a 31-month state prison sentence for bank robbery.  TA pleaded guilty to being a felon in possession of firearms, possession of controlled substances with intent to distribute and possession of a firearm in furtherance of drug trafficking.  The third count carries a mandatory 5 year sentence to run consecutive to any other sentence.

          This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, DOJ leadership announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

          The case was brought through the coordinated investigation and prosecution of the King County Sheriff’s Office, Bellevue Police Department, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Drug Enforcement Administration (DEA), the King County Prosecuting Attorney’s Office and the U.S. Attorney’s Office.

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

A Federal Way, Washington, man was arrested this morning for possession of child pornography and made his initial appearance in U.S. District Court in Seattle this afternoon, announced U.S. Attorney Brian T. Moran.  CHRISTOPHER SCOTT NEWCOMBE, 35, has worked as a music teacher in a variety of public and charter schools in the Puget Sound region.  Currently, he is an elementary music teacher in the Renton School District. 

            According to records filed in the case, KIK screens for explicit images on its messaging system and forwards information on those images to law enforcement.  In November 2018, Homeland Security Investigations was alerted to the transmitting of sexually explicit images of young boys involving an internet protocol address ultimately traced to NEWCOMBE.  Law enforcement obtained a search warrant for NEWCOMBE’s digital devices.  The warrant was executed this morning, and NEWCOMBE was charged with possession of images of child pornography.

            Since NEWCOMBE has been employed as a music teacher, Homeland Security is asking that those who have concerns and wish to communicate with law enforcement call 206-442-1469.  NEWCOMBE’s current teaching position is at Renton’s Cascade Elementary School, but his social media profiles indicate prior teaching positions at schools in Tacoma, Federal Way, and Bainbridge Island.

            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.

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 better to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

The case is being prosecuted by Assistant United States Attorney Matthew Hampton.

          A 36-year-old Arlington, Washington, man was sentenced today in U.S. District Court in Tacoma to three years in prison and 15 years of supervised release for sexual abuse of a minor and possession of child pornography, announced U.S. Attorney Brian T. Moran.  JAMES C. OVERTON pleaded guilty in January 2019, admitting he used internet messaging applications to have sexual communications with young girls.  OVERTON met one 13-year-old girl online and, during the years that followed, convinced her to exchange sexually explicit photos.  When she was 15, he took her to Olympic National Park for sexual conduct.  At the sentencing hearing U.S. District Judge Ronald B. Leighton said OVERTON engaged in “a pattern of exploitation… this is a serious offense that affects real people.”

            According to records filed in the case, OVERTON communicated using the internet with a number of young teens and preteens, attempting to have sexualized conversations with them.  Over a period of time, he groomed the 13-year-old for sex and took advantage of her precarious emotional and psychological condition.  In November 2016, OVERTON picked up the then-15-year-old from a location near her home and took her into Olympic National Park where he had her engage in sexual conduct.  The teen’s family ultimately reported the conduct to law enforcement.  When investigators got a court-authorized search warrant for OVERTON’s home and digital devices, they also recovered evidence of more than 100 images of child pornography.  OVERTON had attempted to delete the images, but evidence remained on his devices.

            OVERTON admitted he had communicated online with a number of young teens between the ages of 12 and 15 in addition to the victim of the sexual assault.  Many of those conversations were sexual and involved his trying to obtain sexually explicit videos and images.  OVERTON will be required to register as a sex offender.

            The case was investigated by the National Park Service and Homeland Security Investigations.

           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 better to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc

            The case is being prosecuted by Assistant United States Attorney Matthew Hampton. 

          The former coach of a South King County bowling team was sentenced today in U.S. District Court in Seattle to 25 years in prison and lifetime supervised release for production and possession of child pornography, announced U.S. Attorney Brian T. Moran.  TY LEE TREDDENBARGER, 54, of Burien, Washington, pleaded guilty in October 2018, admitting he photographed and saved images of his molestation of minor victims between the ages of 13 and 16.  At the sentencing hearing U.S. District Judge John C. Coughenour said, TREDDENBARGER committed “a breach of trust as a coach,” and noted that the abuse lasted over a multi-year period.

            “This defendant not only groomed the victims, he went to great lengths to convince the victim’s parents that he would take care of these children during out-of-state tournaments and overnight events,” said U.S. Attorney Brian T. Moran.  “His horrific betrayal of trust, and using drugs to facilitate his sex abuse, is a parent’s worst nightmare.  Instead of a trustworthy mentor these children were violated by a predatory monster.”

          According to records filed in the case, in March 2017, a young victim disclosed the abuse to a parent.  The Des Moines Police Department and King County Prosecutor’s Office requested assistance from Homeland Security Investigations.  HSI and the Seattle Police Department executed court authorized search warrants at TREDDENBARGER’s residence, seizing electronic devices that contained images of the sexual abuse of children.  Analysis of the electronic devices revealed more than 300 images and 12 videos of TREDDENBARGER sexually abusing the young victims – many while they were drugged and sleeping.  In the search, police also seized a fake smoke detector, fitted with a secret camera, and a small bathroom toiletry bag that also contained a hidden camera.  TREDDENBARGER told law enforcement he used these devices to secretly film bowling team members in hotel showers and bathrooms during trips to bowling tournaments.

          From the images, law enforcement was able to identify two additional victims.  Some of the victims in the images remain unknown.  TREDDENBARGER was charged with three counts of production of child pornography -- one count for each of the victims -- and possession of child pornography.

          “The years of abuse that the victims in this case suffered at the hands of this dangerous child predator are inexcusable,” said Brad Bench, special agent in charge of HSI Seattle. “I applaud the victims for their bravery, as well as all of the law enforcement professionals who helped make today’s sentencing possible. Thanks to their efforts, this dangerous criminal has been removed from our community and will no longer have access to our children.”

            Following the sentence in federal court, TREDDENBARGER will be sentenced for child molestation in King County Superior court.  As part of the plea agreement, the state sentence will run concurrent to the federal prison sentence.   

          The case was investigated by Homeland Security Investigations with assistance from the Des Moines Police Department and the Seattle Police Department.

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

          A former project manager for Portland, Oregon-based shipbuilder Vigor Marine LLC, was indicted today by a federal grand jury in Seattle for ten counts of wire fraud related to 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, is expected to be arraigned on the indictment in U.S. District Court in Seattle in the next two weeks.

            According to the indictment, 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.  The indictment alleges that, in this role, SMITH 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.  The indictment alleges that 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. 

           The indictment also alleges that, 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. 

            Wire fraud is punishable by up to 20 years in prison and a $250,000 fine.  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.  The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.

s._smith_indictment.pdf

          A 45-year-old Auburn, Washington man who used peer-to-peer software to share more than 2800 images of sexual assaults of children was sentenced to ten years in prison today, announced U.S. Attorney Brian T. Moran. JEREMY JAMES CHERRY, has a 2001 King County Superior Court conviction for rape of a child and attempted possession of child pornography.  He served eight years in prison and participated in sex offender treatment.  However, in March 2018, a Seattle Police Department Detective identified CHERRY as the owner of a computer that shared more than 2800 images of child pornography between August 2017 and March 2018.  At the sentencing hearing U.S. District Judge John C. Coughnour said he was imposing the ten year sentence because of CHERRY’s prior hands-on offense against children.

            According to records filed in the case, CHERRY was 27-year-old and acting as an in- home caregiver for three young children when one of them disclosed the sexual molestation.  CHERRY pleaded guilty to rape of a child, and to attempted possession of child pornography. He served eight years in prison.  CHERRY admitted that after sex offender treatment between 2010 and 2013, and once he completed his community supervision, he began seeking out child pornography again.

            CHERRY was identified as part of Operation Broken Heart.  Operation Broken Heart resulted in the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide operation conducted by 61 Internet Crimes Against Children (ICAC) task forces.  During March, April and May of 2018, the ICAC task forces investigated more the 25,200 complaints of technology-facilitated crimes against children.

            The case was investigated by the Seattle Police Department and the Department of Homeland Security Investigations and 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.

              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.

          A former cheerleading coach, who has a prior state conviction for possession of child pornography, was sentenced today in U.S. District Court in Seattle to nine years in prison for transporting child pornography, announced U.S. Attorney Brian T. Moran.  LEONARD BERNARD LEWIS, 33, of Seattle, pleaded guilty in February 2019, admitting that he transported images of child rape and abuse on his personal electronic devices when he traveled from Seattle to London on March 1, 2018.  U.S. District Judge John C. Coughenour imposed ten years of supervised release to follow the prison term.

            According to records filed in the case, LEWIS was traveling to England to continue his career as a cheer coach.  When he arrived and attempted to clear customs at Gatwick Airport, a United Kingdom Border Force Officer asked to examine LEWIS’ cell phone.  After being given the password, the officer found several images of child pornography.  The cell phone, two laptop computers and LEWIS’ PlayStation 4 were seized by law enforcement and LEWIS was detained.  LEWIS was sent back to the U.S. the next day, and his electronic devices were delivered to Homeland Security Investigations.  Forensic examination of LEWIS’ electronic devices revealed more than 5,000 images and 2,000 video files of child pornography.

            The investigation determined that despite his sex offender status, which prohibited him from working with children, LEWIS had been employed at a local gymnastics facility. Between 2016 and 2018, LEWIS was employed as a cheer coach at the gym. LEWIS had used a relative’s Social Security Number so that the facilities’ background check did not reveal LEWIS’ registered sex offender status.  LEWIS has been a registered sex offender since 2012 when he was convicted of possession of child pornography. 

            As Special Assistant United States Attorney Cecelia Gregson wrote in her sentencing memo, despite his earlier conviction LEWIS continued to seek out images of child rape and abuse and “to engage in conduct that undoubtedly supported an industry thriving on the sexual exploitation and misery of children.”

            The case was investigated by Homeland Security Investigations and 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.

          A North Carolina resident, who previously resided on Joint Base Lewis-McChord (JBLM) with his service member spouse has been sentenced to four years in prison and eight years of supervised release for his rape and brutal assault on his estranged wife, announced U.S. Attorney Brian T. Moran.  The couple were in the midst of a divorce but residing in the same residence when JIMMY ANTHONY INDARTE, 28, raped and strangled the victim to unconsciousness.  When she regained consciousness, he chased her with a butcher knife.  Military police were able to intervene and rescue the victim.  At the sentencing hearing U.S. District Judge Benjamin H. Settle said “this is one of the most serious crimes that a person can commit.”

            According to records filed in the case, in August 2017, INDARTE and his spouse were in the midst of a divorce, in part, because she had discovered INDARTE had tortured and intentionally killed one or more of the couple’s four puppies they had adopted over the previous 12 months.  INDARTE had originally claimed the dogs died accidentally.  INDARTE’s spouse discovered videos on INDARTE’s phone showing him raping her while she was unconscious, apparently from medications.  When she confronted INDARTE about the videos, he choked her into unconsciousness.  When she came to, she was able to call 9-1-1.  Before law enforcement arrived, INDARTE chased his spouse through the home with a large kitchen knife.  The couple’s three-year-old son was present during the assault.

            Following the assault and a no contact order, INDARTE tried repeatedly to contact his former spouse in violation of the order and used falsified emails to try to make it appear the former spouse had fabricated information provided to the FBI.  INDARTE used threats to try to convince his former spouse to stop cooperating with law enforcement.

            The case is being resolved in federal court, because the rape and assault occurred on JBLM.  INDARTE was arrested in December 2017 at his father’s residence in High Point, North Carolina.  He has been detained since his arrest.  INDARTE pleaded guilty to abusive sexual contact in March 2019.

            The case was investigated by the FBI and the Army Criminal Investigation Command (CID).

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

          A registered sex offender with two prior child pornography related convictions was sentenced today in U.S. District Court in Tacoma to fourteen years in prison and twenty years of supervised release for enticement of a minor, announced U.S. Attorney Brian T. Moran.  PETER JAMES HUFFERD, 47, was on federal supervision living in sex-offender housing in Seattle when law enforcement discovered he was secretly using a cell phone to communicate with minor females via social media.  HUFFERD convinced two of the minor females to send him sexually explicit images.  At the sentencing hearing, U.S. District Judge Ronald B. Leighton said HUFFERD showed a pattern of criminal conduct that poses “a danger to society.”

            According to records filed in the case, HUFFERD had just completed a ten-year prison term in April 2017 when he began federal supervision.  HUFFERD was allowed one monitored cellular phone.  Beginning no later than October 2017, HUFFERD used an unmonitored cell phone to communicate with minors on SnapChat, Instagram and Tumblr.  HUFFERD began relationships with multiple minor females, convincing at least two of them to send him sexually explicit images.

            HUFFERD was convicted in 2003 in Clallam County Superior Court of three counts of possession of child pornography and was sentenced to 85 days in custody.  At the time law enforcement determined HUFFERD was posing online as a 15-year-old girl to try to get minors to send him sexually explicit images.  In 2008, HUFFERD was sentenced to ten years in prison after a father discovered his 12-year-old daughter was chatting online with HUFFERD. HUFFERD was using the same identity of a 15-year-old girl and engaging in sexually explicit talk with the 12-year-old.  HUFFERD was encouraging the child to cut herself.  A search of HUFFERD’s computer revealed more than 300 sexually explicit images of children.

            In the current case, in March 2018, U.S. Probation discovered the unmonitored cell phone in a search of HUFFERD’s sex offender residence.  A court-authorized search warrant revealed HUFFERD’s illegal communications via social media.

            The case was investigated by Homeland Security Investigations.  The case was prosecuted by Assistant United States Attorney Brian Werner.

          A 27-year-old Kent, Washington, resident pleaded guilty today in U.S. District Court in Seattle to two counts of making interstate threats for his online posts threatening members of President Trump’s family and media figures in Southern California and making threats to bomb synagogues, announced U.S. Attorney Brian T. Moran.  CHASE BLISS COLASURDO, was arrested May 1, 2019.  Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing for August 23, 2019.

          According to the criminal complaint, in March 2019, a member of the public reported to the FBI concerns about Instagram and other social media posts where COLASURDO threatened to execute members of President Donald Trump’s family.  Additionally, COLASURDO sent messages to five different media organizations that he was going to execute the family member.  COLASURDO posted a photo on Instagram showing a hand with a firearm pointed at the photo of a Trump family member.  When initially contacted by law enforcement in March, COLASURDO claimed his social media accounts had been hacked.

          Despite his statements that he was not responsible for the posts, COLASURDO continued to make threatening comments, specifically threats to members of the Jewish community.  In one post, he wrote it was time to start “bombing synagogues.”  Throughout April 2019, COLASURDO sent threatening email messages and online posts to media figures in Southern California using anti-Semitic slurs and threats to kill.  As law enforcement continued to track his activity, it became clear he was purchasing various items related to firearms, such as a holster, bulletproof vest, and ammunition.  COLASURDO attempted to purchase a firearm but was denied.

            When law enforcement served search warrants at COLASURDO’s apartment, they recovered Nazi and Adolph Hitler related items, as well as ammunition, night vision goggles, and a gas mask.           

          Interstate threats are punishable by up to five years in prison and three years of supervised release.           

          The case is being investigated by the FBI and U.S. Secret Service in conjunction with an investigation by the Los Angeles Police Department. Significant assistance was provided by the Sound Regional Violent Crimes Task Force. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.

          The 28-year-old operator of a Rainier Valley marijuana business was sentenced today in U.S. District Court in Seattle to 15 months in prison and three years of supervised release for operating a drug involved premises, and possession of oxycodone and marijuana with intent to distribute, announced U.S. Attorney Brian T. Moran.  KELED ALI, of Seattle was arrested in October 2018, and pleaded guilty in January 2019.   ATF and Seattle Police Department investigated drug activity and a gang related shootings near ‘One Stop,’ a marijuana distribution business in the 5300 block of Rainier Avenue South.  At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said, “When you run an illegal business you become a much larger target to people that want to take your drugs or your profits….  It attracts a criminal element to the community.”

          “This defendant intentionally designed a business to undermine and thwart the State’s marijuana regulatory system – and because of that the business attracted violent crime and violent individuals,” said U.S. Attorney Brian T. Moran. “Even after the storefront was shut down, he persisted in selling not just marijuana but oxycodone – adding to the opioid epidemic.  Federal law enforcement continues to target those who mix drug dealing and violence.” 

          According to records filed in the case, law enforcement became aware of gang activity related to the marijuana distribution business following a fatal shooting in December 2017 and a drive-by shooting in March 2018.  ‘One Stop’ was not a licensed marijuana distributor under state or federal law.  When undercover officers sought to investigate activities at the storefront, they were told marijuana could only be sold to customers introduced by other “members of their club.”  On March 5, 2018, law enforcement executed a court authorized search warrant at the store.  From a safe in the store officers recovered a 9 mm semi-automatic firearm, and they seized more than three pounds of marijuana from the store. 

          In October 2018, ALI was arrested after law enforcement observed him make numerous drug sales.  In ALI’s car, law enforcement found more than two pounds of marijuana and 45 oxycodone pills packaged for resale.

          The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department.  The case is being prosecuted by Assistant United States Attorney Todd Greenberg.

A Seattle area man with a prior history of promoting prostitution was sentenced today in U.S. District Court in Seattle to 276 months in prison and 15 years of supervised release for five federal felonies, including sex trafficking of a minor through force, fraud, and coercion, announced U.S. Attorney Brian T. Moran.  AUBREY TAYLOR, 32, also known as “Uno,” was convicted March 6, 2019, following an eight-day jury trial.  During the trial, multiple victims testified about how TAYLOR used threats, violence, sexual assault, and manipulation to control them and force them to engage in commercial sex acts in cities in Washington, Idaho, and Nevada and then give him the money they earned.  At the sentencing hearing, U.S. District Judge Robert S. Lasnik said that Taylor “is intelligent and can be charming, and this, combined with [his] use of violence and threats gave [him] effective control over vulnerable people.  But today is the judgment day.”

            “This sentence should send a strong message that those who use physical and emotional coercion to force and manipulate victims into sexual slavery will be held accountable for their crimes,” said U.S. Attorney Moran.  “This defendant put these victims in danger every day he used them – all to satisfy his own greed.”

According to records filed in the case and testimony at trial, TAYLOR took one seventeen-year-old young victim to Wenatchee in October 2014 and sexually assaulted her and forced her into prostitution.  Three other victims testified that TAYLOR controlled them with mental and physical abuse or promises of love and a better life.  The women were transported as far away as Las Vegas to engage in commercial sex acts.  TAYLOR controlled one victim by rationing doses of heroin and using her addiction to keep her working as a prostitute.  TAYLOR directed other victims to get tattoos of his name and nicknames as a form of branding and to demonstrate his control over them.

TAYLOR violently assaulted the women he controlled on multiple occasions.  When law enforcement or medical professionals tried to get the victims to cooperate with law enforcement, they expressed their fear of TAYLOR.  Text messages seized in the case reveal TAYLOR’s attempts to recruit numerous additional women and his use of threats and violence.

            “This case demonstrates the great work that can be accomplished when agencies work together,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office.  “The task force model and partnerships across the state resulted in the incarceration of a violent predator.  Taking this subject off the street significantly contributes to keeping the community safe.”

 

            “Human trafficking is a serious violent crime that destroys lives and damages communities.  We are deeply proud of the survivors who came forward and testified bravely in this case and we are equally proud of Kent Police Department’s investigators who worked tirelessly to put an end to this cycle of exploitation and abuse.  It is our responsibility to hold traffickers accountable, and we will continue the fight to end this form of modern-day slavery,” said Kent Police Commander Andy Grove.

 

The case was investigated by the FBI, the City of Kent Police Department, and the Snohomish County Sheriff’s Office—working together on the North Sound Child Exploitation Task Force.  The task force relied on strong partnerships with and valuable contributions by the City of Auburn Police Department, the Bellingham Police Department, and the Wenatchee Police Department.

 

The case was prosecuted by Assistant United States Attorneys Kate Crisham and Rebecca Cohen.

          A 33-year-old Port Angeles, Washington, man was arrested this morning in connection with a September 26, 2016, laser pointer strike on a U.S. Coast Guard helicopter, announced U.S. Attorney Brian T. Moran.  RANDALL MUCK was indicted by a grand jury last week, charging him with aiming a laser pointer at an aircraft and making false statements to government agents.  MUCK will make his initial appearance in U.S. District Court in Tacoma at 2:30 today.

            The indictment alleges that on the evening of September 26, 2016, MUCK pointed a laser beam at a Coast Guard helicopter.  According to reports of the incident, the MH-65 Dolphin helicopter was descending when it was hit by a laser that originated near Fourth and Hill Streets in Port Angeles.  Laser light can cause temporary loss of vision and force an air crew to abort its mission.  In this incident, no one suffered permanent damage, but the crew had to return to base and be assessed medically before returning to duty.  Helicopter crews from Whidbey Island and Oregon had to cover the Port Angeles area of responsibility while the air crew was being cleared to return for duty.

            The subsequent investigation identified MUCK as a suspect.

            The indictment also alleges that on May 3, 2018, when questioned by government agents, MUCK made false statements to the FBI claiming that he did not see the Coast Guard helicopter in the sky on September 26, 2016.

            Both counts are punishable by up to five years in prison and a $250,000 fine.

            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 U.S. Coast Guard Investigative Services and the FBI.  The case is being prosecuted by Assistant United States Attorneys Grady Leupold and André Peñalver.

 

          The former Chief Executive Officer of a Pacific Northwest community bank was sentenced today in U.S. District Court in Wisconsin to one year and a day in prison and one year of supervised release and a $150,000 fine for filing a false tax return, announced U.S. Attorney Brian T. Moran.  Between 2010 and 2016, VICTOR KARPIAK, 64, now of La Crosse, Wisconsin, failed to report more than $2.3 million in income on his taxes.  KARPIAK previously served as President and CEO of First Savings Bank Northwest based in Renton, Washington.  He retired in 2013 and moved from the Seattle area. KARPIAK was charged in the Western District Washington, but chose to have the case resolved near his new home in Wisconsin.  U.S. District Judge William M. Conley imposed the sentence.

          According to records filed in the case, between 2010 and 2016, KARPIAK served as a trustee and consultant for a woman who was the beneficiary of a family and a marital trust.  KARPIAK became a trustee because the woman’s late husband was a significant customer for the bank.  Over those years, KARPIAK paid himself fees of $3,265,072 but on his taxes KARPIAK reported less than a third of that income ($943,322).  The tax loss on more than $2,321,750 in income is $867,540.  KARPIAK will pay $867,540 to the IRS as well as any interest or civil penalties the IRS imposes in the case.   The interest alone in this case could total more than $143,647.

          In their sentencing memo, prosecutors noted that that KARPIAK engaged in the tax fraud even as he earned significant salary and benefits as the bank CEO. “Our system of government relies on individuals --- particularly high-earners such as Karpiak --- to pay a modest portion of earnings toward communal projects and programs…  (T)he true victim of Karpiak’s greed remains the public and his fellow taxpayers, from whom he effectively stole,” prosecutors wrote in their sentencing memo.   Now with four homes across two states, multiple luxury vehicles and a pension alone of more than $150,000 annually, KARPIAK did not need to cheat on his taxes to make ends meet.  As part of his sentencing hearing, KARPIAK made a payment on his tax obligation of more than $1 million.

          “Today Mr. Karpiak was held accountable for willfully and intentionally violating his legal duty to declare and pay his taxes,” said Justin Campbell, IRS Criminal Investigation Special Agent in Charge, Seattle Field Office.  “The U.S. tax system works because honest law-abiding taxpayers know that everyone, including corporate officers, are paying their fair share.”

          The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorneys Steven Masada of the Western District of Washington and Elizabeth Altman of the Western District of Wisconsin.

          U.S. Attorney Brian T. Moran recognized the service and sacrifice of federal, state, local, and tribal police officers today in a speech to Washington State homicide investigators at the Suquamish Clearwater Casino.  Today is National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty.  The day is commemorated as part of National Police Week, which is being observed Sunday, May 12 to Saturday, May 18, 2019.

          “Police officers never know what dangers the next call will bring,” U.S. Attorney Moran said. “You always need to be at your best, especially when other people are at their worst.   You are the guardians of the rule of law.  Because of you, justice is brought to injustice.”

          U.S. Attorney Moran noted that nationwide there was a seven percent spike in violent crime between 2014 and 2016 – with an 11 percent increase in the murder rate in 2015.  These were the largest annual increases in violent crime since 1968.  Because of that spike, the Department of Justice responded in 2017 with increased criminal filings against violent crime defendants, and increased those filings by another 15 percent in 2018.  For 2018, there was a statistical decline in violent crime, indicating the increased filings are getting violent criminals off the street.  U.S. Attorney Moran said his priorities include violent criminals involved in human trafficking and drug smuggling and distribution.

            The success does not come without sacrifice.  U.S. Attorney Moran noted that Washington law enforcement has had four line of duty deaths in the last 18 months.  Just last month Cowlitz County Deputy Sheriff Justin DeRosier was shot and killed while responding to a report of a blocking vehicle.  One month earlier, Kittitas County Deputy Ryan Thompson was killed responding to a road rage suspect.  In July 2018, Kent Police Officer Diego Moreno was killed responding to reports of gunfire outside a restaurant.  Officer Moreno was struck and killed after attempting to stop a fleeing vehicle.  And in January 2018, Pierce County Deputy Sheriff Daniel McCartney was killed after responding to a 9-1-1 call late at night in Frederickson.

           Nationwide, according to statistics reported to the FBI, 106 law enforcement officers were killed in line-of-duty incidents in 2018.

          In October 1962, Congress enacted a joint resolution, which the President signed, declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.

          At a candlelight vigil on the evening of Monday, May 13, 2019, the names of Deputy McCartney and Officer Moreno were added to the National Law Enforcement Officers Memorial in Washington D.C.

          A former U.S. Postal Service employee was sentenced today in U.S. District Court in Seattle to fourteen months in prison for stealing electronic devices from mail shipments and directing others to sell the stolen devices at pawn shops and on online marketplaces.  JAMIE GUHLKE, 56, of Federal Way, Washington was indicted for theft of mail in April 2018 and pleaded guilty in November 2018.  At the sentencing hearing U.S. District Judge James L. Robart said that GUHLKE’s crimes were a violation of her “position of trust” as a government employee.

          According to records filed in the case, in 2015, while still employed as a mail handler at the United States Postal Service Priority Mail Annex in Kent, Washington, GUHLKE stole as many as 44 packages mailed by Quick Ship Electronics, Inc., a Woodinville-based electronics distributor, to customers across the country.  The packages contained digital devices, including Apple iPads and Samsung Galaxy tablets.  The thefts interfered with operations at the Priority Mail Annex, which is responsible for processing the vast majority of Priority Mail that originates in Washington State.  Law enforcement traced the stolen devices to GUHLKE through records obtained from online marketplaces, like ‘OfferUp,’ ‘Craigslist,’ and ‘eBay,” as well as pawnshops.  Those records showed that GUHLKE used a network of other people to re-sell the devices that she had stolen. 

          Law enforcement agents stopped GUHLKE’s car as she left work on August 26, 2015, and saw a Priority Mail package containing a stolen device on the passenger side of her car.  In response, GUHLKE tried to flee, ignored commands and stomped on a police officer’s foot.  After her employment at USPS was suspended, GUHLKE filed an unsuccessful claim for unemployment benefits, in which she denied the thefts and claimed that she had been set up by other USPS employees.   As part of GUHLKE’s sentence, Judge Robart ordered her to pay $15,458 in restitution to Quick Ship Electronics.

          “The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination,” U.S. Postal Service Office of Inspector General, Western Area Field Office Special Agent-in-Charge John D. Masters said. “Unfortunately, Ms. Gulhke decided to betray the public’s trust and steal mail from postal customers. Today’s sentence demonstrates that USPS OIG Special Agents and the U.S. Attorney’s Office are committed to safeguarding U.S. Mail and to hold accountable any Postal Service employee who steals mail.”

          The case was investigated by the U.S. Postal Service - Office of Inspector General (USPS-OIG) and is being prosecuted by Assistant United States Attorney Siddharth Velamoor.

          A 27-year-old Kent, Washington resident is in custody charged with two counts of making interstate threats for his online posts regarding members of President Trump’s family as well as ongoing threats to bomb synagogues and threats made against media figures in Southern California, announced U.S. Attorney Brian T. Moran.  CHASE BLISS COLASURDO, was arrested May 1, 2019 and will make his initial appearance in U.S. District Court in Seattle at 2:00 PM Thursday May 2, 2019.

            According to the criminal complaint, in March 2019, a member of the public reported to the FBI concerns about Instagram and other social media posts where COLASURDO threatened to execute members of President Donald Trump’s family.  Additionally, COLASURDO sent messages to five different media organizations that he was going to execute the family member. COLASURDO posted a photo on Instagram showing a hand with a firearm pointed at the photo of a Trump family member.  When initially contacted by law enforcement in March, COLASURDO claimed his social media accounts had been hacked.

            Despite his statements that he was not responsible for the posts, COLASURDO continued to make threatening comments, specifically threats to members of the Jewish community.  In one post he wrote it was time to start “bombing synagogues.”  As law enforcement continued to track his activity, it became clear he was purchasing various items related to firearms such as a holster, bulletproof vest and ammunition.  COLASURDO attempted to purchase a firearm but was denied.

            FBI agents arrested COLASURDO without incident about 11:30 AM on May 1, 2019.

            The charges contained in the complaint are allegations.  A defendant is presumed innocent unless and until the charges are proven in court beyond a reasonable doubt.

            Interstate threats are punishable by up to five years in prison and three of supervised release.

            The case is being investigated by the FBI in conjunction with an investigation by the Los Angles Police Department.  The case in the Western District of Washington is being prosecuted by Assistant United States Attorney Todd Greenberg. 

          A dozen tribes in the Western District of Washington have been awarded nearly $6 million in Department of Justice grants to improve their services for victims of crime, announced U.S. Attorney Brian T. Moran.  The grants range from $85,000 for the Hoh Tribe to $779,488 for the Squaxin Island Tribe based on applications submitted by the tribes.

            “These grant awards cover needs identified by the tribes themselves,” said U.S. Attorney Moran.  “Whether it is providing emergency services for families in crisis, providing skilled interviewers for child abuse victims or providing a secure domestic violence shelter, each of these projects reflects the needs and culture of our tribal partners.”

          “American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”

          The twelve grants to Western Washington tribes include:

• Squaxin Island Tribe - $779,488 – to expand existing services and outreach to victims of domestic violence, sexual assault, stalking, sex trafficking and dating violence.
• Skokomish Tribe - $446,234 – to expand current programs to better serve elder victims.
• Jamestown S’Klallam Tribe - $420,119 – to establish a satellite Children’s Advocacy Center to increase accessibility to culturally relevant services including trained interviewers.
• Nooksack Tribe - $677,152 – to expand existing services with a needs assessment and strategic plan to implement a responsive Victim Services Program for victims of domestic violence, sexual assault, dating violence and elder abuse and neglect.
• Lummi Nation - $574,361 – to maintain a fully staffed, safe, secure and confidential shelter serving victims of domestic violence, sexual assault and elder abuse.
• Muckleshoot Tribe - $650,000 – to expand victim services with additional trained staff for crisis counseling and referrals to trauma counseling.
• Quinault Nation - $168,631 – to expand services provided by the Healthy Families Program with a satellite office and services to victims in crisis.
• Chehalis Confederated Tribes – $719,741 – to create a Crime Victims Service Trauma Center where victims can receive services in a centralized and non-threatening facility.
• Hoh Tribe - $85,000 – to conduct a community needs assessment and complete a strategic plan with the goal of developing a Victim Services Program.
• Lower Elwha Klallam Tribe - $556,556 – to serve the needs of all crime victims with particular focus on providing pediatric forensic exams for child victims.
• Puyallup Tribe - $407,408 – to expand existing services by strengthening the continuum of care for homeless crime victims and or victims with alcohol and substance abuse issues.
• Port Gamble S’Klallam Tribe - $420,119 – to support victims of crime with a focus on service to victims with disabilities and those who have been victimized multiple times, using services that are trauma-informed and culturally rooted in tradition.

 

          “American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”

          The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.

          The leader of a dangerous drug distribution ring, who continued to run his drug operation after fleeing to Mexico, was sentenced today in U.S. District Court in Tacoma to 20 years in prison, announced U.S. Attorney Brian T. Moran.  As early as 2010, JESUS ENRIQUE PALOMERA, 39, conspired with others to distribute methamphetamine in the Tacoma area.  PALOMERA not only sold drugs, he sold guns as well – arranging the sale of nine guns in one day to an undercover law enforcement agent.  At the sentencing hearing U.S. District Judge Robert J. Bryan said it was one of the largest drug conspiracies he had seen and “the threats of violence here were as bad as I have seen.”

            “This defendant was a prolific drug dealer smuggling massive amounts of methamphetamine throughout the West Coast, and very specifically in the Tacoma area,” said U.S. Attorney Moran.  “His hallmark was violence and threats of violence, not only against co-conspirators, but against their children, parents and loved ones.  This prison sentence puts an end to his drug ring powered by fear.”

          According to records filed in the case, following the gun sales in November 2011, PALOMERA fled to Mexico after some of his coconspirators were arrested.  PALOMERA continued to run his drug operation from across the border, sometimes communicating with customers in Pierce County via Facebook.  PALOMERA frequently threatened those working for him and their family members if they did not obey him.  The threats were via Facebook and instant messaging.

          PALOMERA continued to be involved in drug distribution in 2014 and 2015.  At PALOMERA’s direction more than 50 kilos of methamphetamine were transported from Mexico and up through California and Oregon to Washington.  PALOMERA’s threats of violence were made very real when one of the coconspirators went missing and is presumed dead after a load was seized by law enforcement.  Sentencing documents reveal that PALOMERA threatened to kill this coconspirator during conversations with other coconspirators, and a number of people saw text messages and photos that indicated PALOMERA directed the beating and killing of the coconspirator 

          PALOMERA was taken into custody in Mexico in June 2015, and was extradited to the United States in July 2016.  In November 2017, he pleaded guilty to two counts of conspiracy to distribute methamphetamine and being an alien in possession of a firearm.

          PALOMERA’s coconspirator, James E. Roberts, was sentenced to ten years in prison in December 2015.  Roberts owned an auto body shop in Lakewood, Washington, that was central to the drug trafficking ring.  Several other conspirators have been sentenced, including:

• Lucas Manglona, who was sentenced to ten years in prison in February 2016.
• Tisha A. Janzen, who was sentenced to ten years in prison in July 2016.
• Daniel R. Vasquez, who was sentenced to 70 months in prison in May 2016.

         

          The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Lakewood Police Department, the Washington Department of Corrections, the Los Angeles Police Department, the Siskiyou County Drug Task Force, the California Highway Patrol, the Oregon State Police, and the FBI.  The case is being prosecuted by Assistant United States Attorneys Michael Dion and Amy Jaquette.

          The owners and Chief Executive Officers of Total Reclaim, the Northwest’s largest recycler of electronic waste, were sentenced today in U.S. District Court in Seattle to 28 months  in prison and three years of supervised release for conspiracy to commit wire fraud.  At the sentencing hearing, U.S. District Judge Richard A. Jones noted that with the men’s conduct could have impacted generations with mercury poisoning.  “Your conduct spanned seven years and only stopped because you were caught.  You had multiple opportunities to say enough is enough,” Judge Jones said.

          CRAIG LORCH, 61, of Seattle, and JEFF ZIRKLE, 55, of Bonney Lake, Washington, earned millions of dollars through Total Reclaim by promising to recycle safely electronic products such as flat screen monitors.  In marketing Total Reclaim’s services, LORCH and ZIRKLE warned that the products contained hazardous materials that can cause serious health conditions if processed in unsafe conditions such as those that exist in developing countries in Asia.  LORCH and ZIRKLE promised customers that Total Reclaim would not export electronic waste to developing countries.  But, in fact, the defendants secretly caused over 8 million pounds of mercury-containing flat screen monitors to be exported to Hong Kong, where they were demolished in an environmentally unsafe manor. 

          “Motivated by greed, these defendants betrayed every pledge they made to be good environmental stewards,” said First Assistant U.S. Attorney Tessa M. Gorman.  “They protected their salaries of more than a million dollars a year, while harming the environment and risking the lives of disadvantaged Chinese workers who struggle daily just to support their families”

          Total Reclaim was the biggest participant in “E-Cycle Washington,” a program created by the Washington legislature to provide for the safe recycling of hazardous electronic products.  Under E-Cycle Washington, consumers drop off used electronics at stations such as Goodwill Industries free of charge.  The program then paid Total Reclaim to recycle the electronics according to Washington Department of Ecology standards.  Those standards bar recyclers from sending hazardous electronics products overseas.    

          According to records filed in the case, Total Reclaim promoted itself as a responsible electronics recycler.  Total Reclaim’s website stated that “our commitment to environmental responsibility is at the core of everything Total Reclaim does.”  Total Reclaim signed a public pledge in which it promised not to “allow the export of hazardous E-waste we handle to be exported” to developing countries, where workers are known to disassemble electronics, which contain dangerous materials such as mercury, without safety precautions.  Total Reclaim signed agreements with customers, such as the City of Seattle, in which the customers agreed to pay Total Reclaim to recycle electronics in accordance with these standards.  According to court filings, it would have cost Total Reclaim about $2.6 million to appropriately dispose of the monitors.

          In 2008, contrary to its promises to the public, Total Reclaim began secretly exporting flat screen monitors to Hong Kong to avoid the cost of safely recycling the monitors in the United States.  Flat screen monitors are known to contain mercury, which can cause organ damage, mental impairment, and other serious health consequences to people exposed to the material.  LORCH and ZIRKLE caused at least 8.3 million pounds of monitors to be shipped to Hong Kong between 2008 and 2015.  To prevent customers and auditors from learning of the practice, LORCH and ZIRKLE   falsified documents, made false statements to customers, and stored the monitors at an undisclosed facility while they awaited shipping. 

          Defendants’ fraud was discovered in 2014 by a non-governmental organization known as the Basel Action Network (“BAN”).  BAN, which studies the export of electronic waste, placed electronic trackers on flat screen monitors and deposited them for recycling.  The trackers showed that the monitors were collected by Total Reclaim and then exported to Hong Kong.  When BAN representatives followed the tracking devices to Hong Kong, they discovered that the monitors were being dismantled by laborers who smashed the monitors apart without any precautions to protect the workers or the environment.  After BAN notified LORCH and ZIRKLE of its findings, LORCH and ZIRKLE tried to cover up their fraud by altering hundreds of shipping records. 

          LORCH and ZIRKLE have agreed to pay $945,663 in restitution.

          As prosecutors wrote in their sentencing memorandum, this case is more than a financial fraud.  “Lorch and Zirkle’s crime has all the hallmarks of a classic financial fraud.  It includes lies to customers and auditors, the falsification of hundreds of documents, millions of dollars in ill-gotten gains, and a cover-up after the fraud was discovered.  But this offense stands apart from the typical fraud because the greatest damage is not measured in dollars and cents.  Rather, it lies in the health consequences that resulted from defendants’ calculated choice to prioritize their own economic well-being over the health of faceless foreign workers.”

          The case was investigated by the Environmental Protection Agency Criminal Investigation Division (EPA-CID).  The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.

          A former Seattle employee of the online brokerage firm ShareBuilder, pleaded guilty today in U.S. District Court in Seattle to wire fraud in connection with a kick-back scheme involving one of ShareBuilder’s affiliates, announced U.S. Attorney Brian T. Moran.  AUGUSTINE OLOBIA, 49, now of Hurst, Texas, worked at ShareBuilder in Seattle from 1999 to 2013.  In his plea agreement he admits he falsified data and approved payment of invoices that inflated the number of customers who opened trading accounts after viewing and clicking on links placed in ads by Texas-based affiliate Tega Creative.  The inflated numbers increased revenue to Tega Creative, and OLOBIA was secretly paid about half the net income Tega Creative received.  The loss to ShareBuilder’s owner, Capital One, is estimated at more than $1.5 million.

            According to the facts admitted in the plea agreement, OLOBIA was responsible for managing the third party vendors who advertised ShareBuilder’s services.  Those vendors were paid on a “bounty system.” ShareBuilder paid Tega Creative $40-$55 per account that was opened after a customer came to ShareBuilder via Tega Creative’s advertisement.  Beginning in about 2008, OLOBIA executed a scheme to inflate the numbers of accounts that were attributable to Tega Creative.  OLOBIA manipulated data in ShareBuilder’s computer system to vastly inflate the number of account openings attributable to Tega Creative’s marketing, and then approved invoices issued by Tega Creative that were based on the inflated numbers.  For example in 2007, Tega Creative was credited with about 2,000 account openings.  In 2008, as a result of the fraud, Tega Creative with credited with 10,000 account openings.  OLOBIA was secretly paid about one-third of the gross monthly payment from ShareBuilder to Tega Creative.

            The scheme was uncovered when OLOBIA left ShareBuilder, and other employees tried to reconcile the number of accounts attributed to Tega Creative.   In January 2014, OLOBIA prepared a spreadsheet that tried to further the fraud and reconcile the accounts.  OLOBIA provided the spreadsheet to an individual at Tega Creative who emailed it on to ShareBuilder.  However, the spreadsheet did not end the company’s investigation and the case was referred to law enforcement.

            U.S. District Judge Robert S. Lasnik scheduled sentencing for July 12, 2019.  Prosecutors have agreed to recommend a sentence of no more than 18 months in prison.  Judge Lasnik is not bound by the recommendation and can impose any sentence up to the maximum of twenty years in prison.

            The case was investigated by the FBI.  The case is being prosecuted by Assistant United States Attorney Michael Dion.

            A 31-year-old Chehalis Tribes member was sentenced today in U.S. District Court in Tacoma to 21-months in prison and five years of supervised release for abusive sexual contact, announced U.S. Attorney Brian T. Moran.  ANTHONY TODD YOUCKTON, JR, pleaded guilty October 4, 2018 admitting he sexually molested a woman who was incapacitated by alcohol in July 2016.  At the sentencing hearing, U.S. District Judge Ronald B. Leighton said the assault was a tragic event in the victim’s life.

            According to records filed in the case, YOUCKTON and a female friend gave the intoxicated woman a ride home after a night of drinking.  Because the woman was drunk, the two placed her in her bed and left the home.  YOUCKTON returned to the woman’s home later in the overnight hours, got into the woman’s bed and molested her.   When she awoke the next morning and found YOUCKTON in her bed, she called the tribal police.  YOUCKTON was charged federally and arrested on February 13, 2018.

            In asking for a 21-month term of imprisonment, prosecutors noted the devastating and life-long impact on the victim from the trauma of sexual abuse.  Prosecutors asked for a 5-year-term of supervised release following the prison term, because of YOUCKTON’s history of drug and alcohol abuse.

            The case was prosecuted in federal court because the crime occurred on tribal land involving a tribal defendant.

            The case was investigated by the Chehalis Tribal Police and the FBI.  The case was prosecuted by Assistant United States Attorneys J. Tate London and Rebecca Cohen.  Both attorneys serve as Tribal Liaisons for the U.S. Attorney’s Office.

          A 60-year-old Olympia, Washington resident was sentenced today in U.S. District Court in Tacoma to 48 months in prison and a lifetime of supervised release for possessing images of child sexual abuse, announced U.S. Attorney Brian T. Moran.  DONALD A. DELATEUR was arrested in May 2018, as part of Operation Broken Heart – an investigation into peer-to–peer file sharing of images of child rape and abuse.   A court-authorized search of DELATEUR’s electronic devices revealed they contained images of children being raped and sexually abused.  At the sentencing hearing U.S. District Judge Benjamin H. Settle said “It is difficult to overstate the seriousness” of child pornography offenses.  The victims of these offenses suffer their own “life sentence.”  

            “Victims of child sexual abuse, whose worst moments are video recorded and shared over the internet, are re-victimized each and every time an offender views those images or videos,” said U.S. Attorney Brian T. Moran.  

            In 2005, DELATEUR was convicted in Thurston County Superior Court of possessing child pornography.  In 2015, DELATEUR was again contacted by federal investigators after his internet protocol (IP) address came up in an investigation of peer-to-peer file sharing of child pornography.  However, in that instance, DELATEUR had been able to scrub his devices of images of child rape and molestation.  At the time, DELATEUR was warned that if he continued his file sharing activities, he could face federal prison time.  In 2018, his IP address was again linked to the trading of child pornography.  This time the forensic examination of his devices uncovered the images of child sexual abuse.

            DELATEUR pleaded guilty in January 2019.

            Operation Broken Heart resulted in the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide operation conducted by 61 Internet Crimes Against Children (ICAC) task forces.  During March, April and May of 2018, the ICAC task forces investigated more the 25,200 complaints of technology-facilitated crimes against children.

            This investigation was led by Homeland Security Investigations as part of the Seattle-area ICAC.  The case was 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

          A former engineer employed with technology manufacturing companies in the Vancouver, Washington area was sentenced today in U.S. District Court in Tacoma to 27 months in prison for his nearly twenty-year scheme to collect disability benefits under his own identity while working under a false identity, announced U.S. Attorney Brian T. Moran.   STEVEN LYNN ROSS, 67, stole $368,458 in government benefits between 2001 and 2017.  ROSS possessed identity documents he had fraudulently obtained in the names of children who died in the 1950s and 1960s.  ROSS used the stolen identities to obtain identity documents in the false names as early as 1987.  At today’s sentencing hearing U.S. District Judge Benjamin H. Settle imposed an additional $20,000 fine, saying, “Our government depends on the honesty of its citizens to work…. The victims here are future generations… his daughters and grandchildren will be paying.”     

          “By taking this money, the defendant stole, month after month and year after year, from government programs that are stretched to the limit, where every dollar is vital to provide for the community’s most vulnerable,” said U.S. Attorney Brian T. Moran.  “These crimes have a corrosive effect on the public’s faith that benefit programs can work as intended. When people lie to obtain benefits, agencies must use their limited resources to detect and investigate fraud, instead of helping the truly deserving.”

            According to records filed in the case, in 1987 ROSS assumed the identities of at least two deceased children in order to apply for Social Security numbers in their names.  One of the children had died in a car accident as a toddler, the other died in a plane crash in 1968 at age thirteen.  ROSS used these identities in various ways, obtaining drivers licenses, bank accounts and passports in different names.  In 2001, ROSS began collecting Social Security Disability payments in his true name, saying he was unable to work due to physical ailments.  In fact, at the same time that he was collecting disability payments, ROSS continued to work under one of the identities he had stolen.  In this way, ROSS collected more than $360,000 in disability payments even though he was able to work and therefore not disabled under program rules.  ROSS even used his false identities as “references” vouching for his disabled status in his submissions to the Social Security Administration.

            The Washington State Department of Licensing began investigating when facial recognition software flagged that ROSS’s image appeared in more than one driver’s license photo.  The case was turned over to the Social Security Office of Inspector General (SSA-OIG) and U.S. State Department Diplomatic Security Service (DSS).  The DSS determined that ROSS had obtained passports in his own name as well as the names of three deceased children, and that all four passports contain ROSS’ picture.  Between 1998 and 2011, ROSS traveled out of the country 22 times with one of the stolen identities, even as he also traveled internationally using his own name and passport as well.

            ROSS pleaded guilty on January 15, 2019 to theft of public funds and aggravated identity theft.  He is in the process of paying restitution of $368,458 and now will be responsible for the $20,000 fine as well. Judge Settle imposed three years of supervised release.

          The case was investigated by the Social Security Office of Inspector General (SSA-OIG), the U.S. Department of State Diplomatic Security Service (DSS), and the Washington State Department of Licensing License Integrity Unit (DOL/LIU).

          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 benefit fraud cases in federal court.

              A Vancouver, Washington, business owner who stole from later clients to pay off earlier ones in the style of a Ponzi scheme was sentenced today in U.S. District Court in Tacoma to four years in prison, announced U.S. Attorney Brian T. Moran.  AARON MICHAEL SCOTT, 40, of Portland, Oregon, was indicted in October 2018 following state and federal investigations of his internet precious metals business, Blue Moon Coins.  SCOTT began defrauding silver and gold purchasers as early as October 2013 and continued until Blue Moon Coins was shuttered by the Washington State Department of Financial Services in April 2014.  At today’s sentencing hearing, U.S. District Judge Ronald B. Leighton said, “White collar crime is under-punished in the country.  Drug addiction and white collar crime are two sides of a press that will destroy the fabric of society.”

            According to records filed in the case, between October 2013 and April 2014, SCOTT repeatedly accepted customer money for the purchase of precious metals and coins and then used the money for his personal, company, and hobby expenses.  SCOTT represented to customers that the money would be used immediately to purchase the coins and metals, but, instead, it was used for expenses or to fulfill earlier customer orders in the form of a Ponzi scheme.  When customers complained about the delay in receiving their items, SCOTT used a plethora of excuses such as: weather delays; a supplier had gone bankrupt; a corporate buyout; ice and snow; delayed armored truck delivery; and a bad flu season.

            In 2015, SCOTT declared bankruptcy revealing that he had a web of businesses involved in activities, such as producing rap albums and custom jewelry, including gold teeth or “grills.” During the fraud scheme, SCOTT owned a Maserati and a Porsche but transferred ownership of the luxury cars before the bankruptcy filing.    

            In all more than 139 customers were defrauded of more than $1.4 million.  Losses to individual investors range from just over $2,000 to more than $154,000.   

            The case was investigated by the FBI, Vancouver Police Department and the U.S. Commodities Futures Trading Commission (CFTC).  The CFTC has filed a civil enforcement action against SCOTT and Blue Moon Coins seeking restitution for the victims and a permanent registration and trading ban.

            The case is being prosecuted by Assistant United States Attorney David Reese Jennings.

A repeat federal felon, with prior state convictions for child molestation and child rape, was sentenced today in U.S. District Court in Seattle to ten years in prison for access with intent to view child pornography, announced U.S. Attorney Brian T. Moran.  BRIAN KEVIN RUBENAKER, 59, of Everett, Washington, was on federal supervision following a nearly 13-year sentence for possession of child pornography when he was linked to a laptop computer hidden at another offender’s residence.  Both men, convicted sex offenders, had their supervision revoked and were charged with new child pornography possession crimes.  At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez also imposed ten years of supervised release to follow his prison term.

 

            “This defendant, already sent to state prison in 1998 for molestation and sexual abuse of minors, now faces a second significant federal sentence for acting on his sexual attraction to children,” said U.S. Attorney Brian T. Moran.  “Those who collect and share images and videos of children being raped and tortured feed a market that thrives on the sexual abuse of children.”     

 

            According to records filed in the case, in October 2018, two federal probation officers made an unannounced visit to the Everett home of sex offender Mark Dreblow who was also on federal supervision.  One of the probation officers noticed wires coming from a couch cushion.  Under the cushion was a laptop computer, which Dreblow said belonged to RUBENAKER.  Dreblow admitted the two men shared the computer and admitted it contained images of child sex abuse and exploitation.  A forensic examination of the computer determined it contained multiple images of children being abused and exploited.

 

            In 1998, RUBENAKER was convicted in Washington Superior Court of child molestation and rape of a child.  In 2006, RUBENAKER was sentenced in federal court to nearly 13 years in prison for possession of child pornography.  He was released in April 2016 on three years of supervised release.  RUBENAKER was arrested in December 2018 for conspiracy to possess child pornography and pleaded guilty to access with intent to view child pornography in January 2019.  Because of his status as a repeat offender, RUBENAKER was subject to a 10-year mandatory minimum sentence.

The case was investigated by Homeland Security Investigations with assistance from the Federal Probation Office.  The case is being prosecuted by Assistant United States Attorney Matthew Hampton.

 

          A long-time investment advisor in Redmond, Washington pleaded guilty today in U.S. District Court in Seattle to defrauding some 15 investors of more than $3 million, announced U.S. Attorney Brian T. Moran.  DENNIS GIBB, 72, the President and owner of Sweetwater Investments Inc., pleaded guilty to wire fraud and falsification of records with the intent to obstruct a matter within the jurisdiction of the Securities and Exchange Commission (SEC).  Simultaneously, GIBB and Sweetwater investment entered into a consent decree with the SEC liquidating the Sweetwater Income Flood LP Fund and barring GIBB from further investment activity.     Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing in the criminal case for June 28, 2019.

            “Sadly, this defendant sold his investors a dream of a safe retirement, representing that he would use a sophisticated investment strategy, including investing in government bonds, to produce stable returns.  Instead, Dennis Gibb used investor funds to pay business expenses for Sweetwater Investments, as well as mortgage and car payments and other living expenses,” said U.S. Attorney Brian T. Moran.  “He told investors there was $7.8 million in the fund – the reality was there was less than $2 million. The investors no longer have the safe retirement income they were promised.”

            According to the criminal case filings and the SEC consent decree, GIBB created Sweetwater Income Flood Limited Partnership, a private fund Gibb managed, in 2008.  As early as 2007, he began soliciting investors for the fund targeting those who wanted steady retirement income in the near future.  According to the SEC between 2007 and 2018, about 20 investors put about $7.3 million into the fund.  GIBB secretly transferred more than $3.1 million from the fund for his own expenses.  To hide his theft, GIBB sent investors falsified quarterly account statements.  When the SEC began an examination of the Sweetwater Investments in May 2018, GIBB provided false records to examiners indicating the fund had been liquidated. 

            In his plea agreement GIBB agrees to forfeit a money judgment in the amount of $3,197,401.  Gibb will also owe full restitution for the amount he stole.  The government will recommend that any money collected on the money judgment go toward the defendant’s restitution obligation.  The SEC is ordering GIBB to liquidate the approximately $1.8 million remaining in the Income Flood Fund and provide it to the SEC for disbursement to victims. 

            Wire fraud is punishable by up to 20 years in prison.  Falsification of records is punishable by up to three years in prison.  Prosecutors have agreed to recommend no more than 78 months in prison.  The court is not bound by the recommendation, the sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

            The case was investigated by the SEC and the FBI.  The case is being prosecuted by Assistant United States Attorney Matthew Diggs. 

           The SEC order is available here.

 

          Three members of an international drug trafficking organization pleaded guilty today in U.S. District Court in Seattle to distributing more than a thousand kilograms of illegal marijuana, announced U.S. Attorney Brian T. Moran.  The defendants admit in their plea agreements that they used money from conspirators in the Peoples Republic of China (PRC) to purchase homes in the Puget Sound area that they used for marijuana production.  QIFENG LI, 41, his wife XIAMIN HUANG, 38, and brother QIWEI LI, 45, all face a mandatory minimum five years in prison and up to 40 years in prison when sentenced by U.S. District Judge John C. Coughenour on June 18, 2019.

            “The entry of organized crime into the marijuana marketplace is of increasing concern in the Western District of Washington,” said U.S. Attorney Brian T. Moran.  “This conduct brings crime to our neighborhoods, artificially fuels the housing market, and creates a blight of toxic abandoned grow houses.  With this case, the defendants are forfeiting more than a million dollars of equity in properties and more than $350,000 in cash – putting a dent in the organized crime profits.”

            According to the facts admitted in the plea agreement, between July 2015 and May 2018, the conspirators purchased homes in Burien, Kent, Seattle and Tukwila, which they used exclusively for marijuana production.  More than $598,000 was wired to the conspirators from China to fund the purchases.  The defendants shipped more than 1,000 kilograms of marijuana to the New York City area, via FedEx, UPS, the U.S. Postal Service and a private freight forwarder.  Ultimately, in an effort to streamline distribution the conspirators established a shipping company, Pony Movers, LLC, to transport their marijuana from Western Washington to a warehouse in Little Ferry, New Jersey.  The defendants then deposited the profits from the marijuana enterprise into their bank accounts in amounts less than $10,000 to avoid financial reporting requirements.            

            QIFENG LI and XIAMIN HUANG are U.S. citizens.  QIWEI LI is a Lawful Permanent Resident who likely will face deportation following his prison term.

            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 DEA and Homeland Security Investigation (HSI).  Significant investigative assistance was also provided by the Seattle Police Department and FBI.

            The case is being prosecuted by Special Assistant United States Attorney Joe Silvio and Assistant United States Attorney Marie Dalton.  Mr. Silvio is an attorney with Homeland Security Investigations, specially designated to prosecute cases in federal court.

          One of two men who attempted to rob a federal agent working on an illegal firearms investigation, was sentenced today in U.S. District Court in Seattle to 14 years in prison, announced U.S. Attorney Brian T. Moran.  ABDIRASHID HARET, 20, of Des Moines, Washington, pleaded guilty in December 2018, to assault on a federal officer and person assisting a federal officer, using a firearm in a crime of violence and robbery of funds belonging to the United States.  At the sentencing hearing U.S. District Judge James L. Robart noted the defendant had a “fascination with guns,” that created “a situation that is dangerous to yourself, the people you are with, and the community.”

            “This defendant illegally carried and trafficked firearms, bringing violence to our community,” said U.S. Attorney Brian T. Moran.  “He was a convicted felon – arrested for assault and carrying a stolen gun – who returned to crime within months of his juvenile conviction.  He threatened an undercover law enforcement agent – the very person we trust to do the dangerous work needed to keep us safe. This long prison sentence is warranted to protect our community.”

            According to the facts in the plea agreement, HARET and co-defendant Omar Abdullah, 23, of Seattle, Washington, had made arrangements to sell two firearms to a man who, unknown to them, was a confidential informant (CI) working with ATF.  The CI and an undercover ATF agent met with HARET and Abdullah in a vehicle in the parking lot of the Kent Lowe’s store.  After the agent and CI got in the car, HARET and Abdullah used the two loaded firearms they brought to the meeting to rob the undercover agent and the CI.  The undercover agent told HARET and Abdullah he would get additional money out of his car.  HARET followed the agent out of the car, still armed with a firearm.  The undercover agent was able to pull his own gun and fired at Abdullah who still held the CI at gunpoint in the car.  HARET dropped his gun and attempted to flee.  He was struck and injured running across Pacific Highway.  Both Abdullah and HARET were taken to medical facilities.  Abdullah continues to get specialized treatment for his gunshot wounds.

            The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).

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

            A 36-year-old member of the Tulalip Tribes was sentenced March 21, 2019, in U.S. District Court in Seattle to 71 months in prison for multiple horrific assaults on his intimate partner, announced U.S. Attorney Brian T. Moran.  MORGAN BRYANT pleaded guilty in December 2018 to two counts of assault resulting in serious bodily injury, assault by strangulation, assault with a dangerous weapon, and domestic assault by a habitual offender.  According to records filed in the case, BRYANT assaulted his live-in partner on numerous occasions: punching her, kicking her, hitting her with a hammer and a wrench, and strangling her.  When treated by medical professionals, the victim had a broken wrist, broken ribs, and broken bones in her face.  At the sentencing hearing, U.S. District Judge Robert S. Lasnik said, “He cannot do this ever again to any woman.”

            “Such violent, vicious assaults deserve significant federal prison time,” said U.S. Attorney Brian T. Moran.  “The Tribal Liaisons in my office are using important tools such as the Habitual Offender Domestic Assault statute to ensure domestic violence assaults are investigated, prosecuted and punished to protect the vulnerable in our Tribal communities.”

            According to records filed in the case, in March 2018, the victim sent her family and friends text messages asking for help.  She included a photo that showed she had one black eye, an eye swollen shut, and bruises on her face.  Tulalip Tribal Police responded to check on the victim.  Because no one inside would answer the door, the police obtained a search warrant.  Inside they found the victim with severe injuries, including a bloody head-wound with a towel super-glued in place, and broken bones in her face.  The victim was taken to the hospital and later disclosed months of abuse, including a November 2017 fight where BRYANT broke her wrist and a January 2018 argument where BRYANT punched and kicked her, struck her with a wrench and hammer while keeping her locked in a bathroom for hours, strangled her, and hit her over the head with a plate.  Finally, in the March 2018 assault that led to his arrest, BRYANT repeatedly punched her leaving her bruised and bloody. 

            BRYANT has previous convictions in Everett Municipal Court and Tulalip Tribal Court for domestic violence assaults on other victims.

            The case was investigated by the Tulalip Tribal Police and the FBI.  The case was prosecuted by Assistant United States Attorney Rebecca Cohen.

          A Seattle man with three prior federal convictions was sentenced today in U.S. District Court in Seattle to 61 months in prison for witness tampering and absconding from federal supervision, announced U.S. Attorney Brian T. Moran.  DAVID POSEY, 52, of Seattle, was arrested in June 2018 after he traveled to Portland, Oregon, without notifying his probation officer.  POSEY had convinced an autistic woman whom he met at a local community college to travel with him.  The investigation revealed that he pressured the 19-year-old victim to lie to law enforcement about sexual activity.  The woman has a guardian because she is considered vulnerable and unable to make certain financial and personal decisions.  At sentencing, U.S. District Judge Robert S. Lasnik said POSEY “is a crook and a fraudster….  A fraudster taking advantage of a situation and manipulating it to his advantage.”

            According to records filed in the case, POSEY was released into the community from his 65-month federal prison sentence on June 4, 2017.  Barely a year later, an arrest warrant was issued when he failed to check in with his probation officer.  POSEY was located and arrested June 20, 2018, in a Portland motel room with a developmentally disabled 19-year-old.  Following his arrest, POSEY communicated repeatedly with the woman by mail and telephone to get her to change the information she provided to law enforcement.  Ultimately, a court-authorized search of mobile phones belonging to POSEY revealed the truth of the sexual contact and his efforts to get the witness to lie to law enforcement.  In November 2018, POSEY pleaded guilty to tampering with a witness.

            POSEY has criminal convictions dating back to 1985, including federal convictions for: being a felon in possession of a firearm, mail fraud, and conspiracy (1997); two counts of mail fraud (2004); and being a felon in possession of a firearm, unlawful production of identity documents, and counterfeiting (2011).

            The case was investigated by the FBI with assistance from the U.S. Marshal Service Fugitive Task Force.

            The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.

          A 32-year-old Kent, Washington resident was convicted today of distributing methamphetamine following a three day jury trial, announced U.S. Attorney Brian T. Moran.  JOHNNY JAVIER MOREL-PINEDA faces a mandatory minimum 5 years in prison and up to 40 years in prison when sentenced by Chief U.S. District Judge Ricardo S. Martinez on June 14, 2019.  MOREL-PINEDA is a citizen of Honduras who likely will be deported following his prison term.

            According to testimony at trial and records filed in the case, MOREL- PINEDA came to the attention of law enforcement as a source of methamphetamine in the South King County area.  A confidential informant, working with law enforcement, set up a drug deal with MOREL- PINEDA.  The telephone calls setting up the April 2018 drug deal, as well as the drug sale in MOREL- PINEDA’s car were audio recorded.  In the calls and via text message the two speak in code, calling an ounce of methamphetamine a “taco,” and pricing “four tacos” at $1200.

            The jury deliberated about 90 minutes before reaching the guilty verdict.           

            The case was investigated by the Drug Enforcement Administration (DEA) and Homeland Security Investigations (HSI).

            The case was prosecuted by Assistant United States Attorneys Joshua Ferrentino and Amy Jaquette.

          The nationwide flooring company Spectra Contract Flooring with an office in Tukwila, Washington, has agreed to pay $133,718 to settle allegations it improperly provided kickbacks to a defense contractor, announced U.S. Attorney Brian T. Moran.  The civil settlement comes after a criminal investigation, and false tax return conviction, of an employee of a government defense contractor who accepted benefits from Spectra.  Spectra is a wholly owned subsidiary of Shaw Industries Group Inc.  The criminal case, U.S. v Meisner, was resolved in May 2017.  In the settlement announced today, Spectra does not admit any wrongdoing but chooses to resolve the claims.

            According to records filed in the criminal case and the settlement agreement, in 2009, Spectra was one of the subcontractors working on a seismic upgrade at the Delta Pier Support Facility at the Bangor Submarine Base near Silverdale.  The contractor leading the Bangor job was Cherokee General Corporation, a subsidiary of Doyon Government Group, headed by Brent S. Meisner.  Meisner was in the midst of a remodel of his Gig Harbor, Washington, residence.  Invoices submitted by Spectra reveal that the company billed the Navy for the work at Meisner’s residence under the seismic upgrade contract.  Meisner paid nothing for the flooring services provided at his home.  As is allowed by law in False Claims cases, Spectra is settling the matter for three times the cost of the false billing: $133,718. 

            In May 2017, Meisner was sentenced to 18 months in prison.

          "The announced settlement is representative of the law enforcement community's dogged efforts to hold accountable those who engage in unethical business practices that stifle fair competition and ultimately result in a loss to the American taxpayer," said Bryan Denny, Special Agent in Charge, Western Field Office, Defense Criminal Investigative Service (DCIS).  "As in this case, any unscrupulous actions by government contractors and subcontractors that tarnish and corrupt the integrity of the defense procurement process will be reviewed and vigorously investigated by DCIS and its law enforcement partners."

            The False Claims Act allegations were investigated by the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), Army CID Major Procurement Fraud Unit and the Internal Revenue Service Criminal Investigation (IRS-CI).

            The civil settlement was negotiated for the government by Assistant United States Attorney Kayla C. Stahman.

          A former long-time Skagit County Sheriff’s Deputy was sentenced today in U.S. District Court in Seattle to 60 days in prison and six months of home confinement with electronic home monitoring in connection with his theft of more than $30,000 from a police dog handlers organization, announced U.S. Attorney Brian T. Moran.  BRIAN A. LEHR, 53, of Sedro Wooley, Washington, was the Secretary/Treasurer of the Pacific Northwest Police Detention Dog Association.  For at least six years, LEHR stole money from the organization to use for his own expenses, such as restaurant bills, hotel and event expenses, and even his cable TV and cell phone bills.  By the time the theft was discovered, LEHR had stolen $33,641.  At the sentencing hearing U.S. District Judge John C. Coughenour noted the theft was a “breach of trust.”

            According to records filed in the case, LEHR took his leadership position with the Association in 1998.  The Association, which was founded by canine law enforcement officers, seeks to promote high-quality training of detection dog teams in the Pacific Northwest.  LEHR had complete control over the Association finances, and there was little oversite.  In 2013, LEHR prepared a financial report suggesting the Association had nearly $20,000 in its bank account, when in fact he had stolen all but $276.79.  LEHR stole the money by simply making payments from the Association accounts to his credit card bills or cable and cell phone bills or by using the Association debit card at stores, restaurants, hotels, and event ticket sites.  LEHR also withdrew cash from the accounts for his own expenses.

            The thefts harmed the Association in ways beyond the financial cost.  The Association has not been able to bring in trainers to work with narcotic detection dogs, and it has been unable to purchase equipment and update its website with information for members.  The embezzlement damaged its reputation in the law enforcement community and hurt its efforts to recruit members in law enforcement.

            LEHR pleaded guilty to wire fraud in December 2018.

            The case was investigated by the FBI.  The case was prosecuted by Assistant United States Attorney Andrew Friedman.