Western District of Washington

          Over the last few days investigators executed search warrants at 17 different Puget Sound area locations, and a commercial property in New Jersey, in connection with an internationally funded drug trafficking organization sending thousands of pounds of marijuana grown in Washington to the New York City area, announced U.S. Attorney Annette L. Hayes.  One defendant, 37-year-old XIAMIN HUANG of Seattle, is in custody and her husband and his brother are being sought by law enforcement.  All three are charged in a criminal complaint with conspiracy to manufacture and distribute marijuana.           

          “The defendants are charged with growing thousands of pounds of marijuana in Western Washington and then shipping it to the East Coast to take advantage of black market prices,” said U.S. Attorney Annette L, Hayes.  “As prosecutors made clear in court hearings today, hundreds of thousands of dollars have flowed in from China to pay for grow houses and the massive electric bills associated with them.  In the meantime, the communities where these grow houses are located are dealing with a host of negative impacts including distortion of real estate markets with criminals making all cash payments at inflated prices.”

          According to records filed in the case, in 2016 and 2017 investigators identified several homes in King and Pierce Counties being used for indoor marijuana production.  The homes, such as one on S. 124th Street in Burien had unusually high electrical bills – as much as $2,500 in one two-month billing period.  On another property, members of the conspiracy made cash payments of more than $37,000 for electricity in a three month period.  On May 16, 2018, law enforcement served search warrants on locations in Seattle, Burien, Kent, Tacoma, and Renton.  More than 3,000 marijuana plants were seized as well as business records and equipment associated with the marijuana trafficking.

          At the detention hearing today, prosecutors revealed that some of the homes had been purchased with large wire transfers of funds from the People’s Republic of China (PRC). The source of the money is still under investigation.  An analysis of the email accounts and bank accounts utilized by the criminal group show efforts to structure cash deposits in order of avoid bank reporting requirements on suspicious transactions.  HUANG was determined to be a flight risk and was detained pending trial.

            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 Tampa, Florida, man who assaulted crew and passengers on a Delta Airlines flight bound for China was sentenced today in U.S. District Court in Seattle to two years in prison for four federal felonies in connection with the July 16, 2017 incident, announced U.S. Attorney Annette L. Hayes.  JOSEPH DANIEL HUDEK IV, 24, pleaded guilty in February 2018. HUDEK claimed he suffered a psychotic episode with hallucinations after consuming marijuana edibles.  In imposing the prison sentence U.S. District Judge John C. Coughenour said he could not ignore the violence to the flight attendants and passengers and the fear HUDEK caused to all of the people on the flight.

            “Assaulting flight attendants and passengers, and threatening the safety of everyone on a commercial airliner will not be tolerated,” said U.S. Attorney Annette L. Hayes.  “We take very seriously our responsibility to hold accountable those who victimize the flying public and airline employees.  I commend the FBI for their work to ensure the victims in this case were heard and the evidence of this crime was made available for all concerned.”

            According to records in the case, HUDEK was seated in first class on the Delta flight. The aircraft had 210 passengers on board and 11 crew members.  The plane had just passed over Vancouver Island and was over the Pacific Ocean when HUDEK came out of the first class bathroom and in an agitated state attempted to raise the lever of the exit door of the aircraft.  Two flight attendants attempted to stop HUDEK, he threw one to the floor and punched the other.  When a passenger attempted to assist the flight attendants, HUDEK hit him over the head with a wine bottle.  Ultimately, multiple passengers were required to restrain HUDEK, and one lowered the exit handle of the door as the aircraft returned to Seattle.

            Speaking to the court, passenger Lon Arnold described how he suffered permanent injury to his vision when HUDEK punched him in the eye.  HUDEK also hit Arnold over the head with a wine bottle causing a concussion.  Arnold said “the violence was incredible… I was afraid he was going to kill the flight attendant.”

            In addition to the two year prison sentence, Judge Coughenour ordered HUDEK to pay $67,841 in restitution to the victims and imposed three years of supervised release to follow prison.  During supervised release HUDEK is not allowed to fly on a commercial aircraft.

            HUDEK remains out of custody on bond.  The Bureau of Prisons will determine his prison placement and will order him to report to a federal prison in the next four to six weeks.

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

          A 48-year old Renton man who falsely presented himself as a legitimate investment advisor was sentenced today in U.S. District Court in Seattle to eight years in prison for eight federal felonies, announced U.S. Attorney Annette L. Hayes.  RICHARD THOMAS ZIESKE was previously convicted of federal fraud charges for defrauding members of his church and others out of over $1.2 million by posing as an investment advisor.  Last February ZIESKE was convicted of a similar scheme to defraud victims he met through a Renton martial arts studio.   At sentencing, U.S. District Judge James L. Robart said ZIESKE has no respect for the law.  “We’re talking about someone who is a serial predator in the financial markets,” the judge said.  Turning to ZIESKE he added, “You take people you know and who try to help you, and then you use them in your scheme.”

            ZIESKE was convicted of five counts of wire fraud, one count of securities fraud and two counts of aggravated identity theft.  According to records filed in the case and testimony at trial, in 2013, ZIESKE overheard a member of his Renton martial arts studio talking about his 401k account.  The victim had been forced to retire and limit his martial arts due to a degenerative neck condition.  ZIESKE convinced the victim to allow him to manage more than $95,000 in retirement funds, promising big returns.  Instead, ZIESKE used the money to purchase a limited edition Harley Davidson motorcycle, pay for liposuction surgery, and finance a luxury SUV.  ZIESKE attempted to recruit other ‘investors,’ and convinced the founder of the martial arts studio to invest $50,000 with him. 

            In 2005, ZIESKE pleaded guilty to mail fraud, securities fraud and wire fraud for a scheme in which he solicited nearly $2 million from members of his church and others, fraudulently promising big returns on investments.  ZIESKE was sentenced to 41 months in prison and ordered to pay more than $1.3 million in restitution.  The Washington Department of Financial Institutions also entered a cease and desist order against him.  The prior conduct caused a brokerage firm to close ZIESKE’s trading account during the more recent scheme after its check revealed ZIESKE’s previous conviction.  ZIESKE then opened another brokerage account using the identity of another member of the martial arts studio. 

            Prosecutors asked that ZIESKE be ordered to pay $84,915 to his victims.  Judge Robart will set the restitution amount at a later date.  He ordered ZIESKE to be subject to federal supervision for three years following his prison term.

            The case was investigated by the FBI.  The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Michael Dion.

Seattle – Attorney General Sessions and U.S. Attorney Annette L. Hayes for the Western District of Washington honor the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and issuance of the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.

Kalama, Washington Police Chief Randall Scott Gibson is listed in the Roll Call of Heroes as an officer who died in the line of duty in 2017.  Chief Gibson went into respiratory distress while performing a high stress arrest on January 10, 2017.  He was treated at a hospital, but died later that night at his home.  He had been with the Kalama Police Department for six years, following a twenty-year career with the Greene County Sheriff’s Office in Missouri.

 “One officer death is too many,” Attorney General Sessions said.  “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high.  At the Department of Justice, we honor the memories of the fallen and we pray for their families.  We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us.  As always, we have their backs and they have our thanks.”

“We remember and honor Chief Gibson and his service to the citizens of Kalama, and all of us in Western Washington,” said U.S. Attorney Annette L. Hayes. Chief Gibson will be one of the officers who will be honored for their many sacrifices at the National Peace Officer Memorial Service tomorrow in Washington D.C.  Sadly, 2018 began with the line of duty death of Pierce County Sheriff’s Deputy Daniel A. McCartney, 34, of Yelm, who was shot and killed while responding to a home invasion robbery. He will be honored for his ultimate sacrifice at next year’s service.”

According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.

Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.

For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today.

In October 1962, Congress passed and President Kennedy signed a joint resolution 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.

During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.

The names of all 93 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. 

The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.

For more information about other National Police Week events, please visit www.policeweek.org.

To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.

          A Vancouver, British Columbia man was sentenced today in U.S. District Court in Seattle to 20 days of incarceration and more than $1 million in forfeitures for Operating an Unlicensed Money Transmission Business, announced U.S. Attorney Annette L. Hayes.  LOUIS ONG, 37, was arrested in July 2017, after a series of bitcoin for cash sales with an undercover agent with Homeland Security Investigations.  ONG repeatedly told the agent, who was posing as a member of a drug trafficking group, that he did not want to know the source of the cash so that he would have ‘plausible deniability.’  Even after ONG registered as a money transmitter, he made little effort to comply with regulations about reporting suspicious transactions.  At the sentencing hearing, U.S. District Judge Robert S. Lasnik imposed three years of supervised release and noted that ONG will likely be unable to return to the U.S. from Canada.

            “The dark web is not a free pass for crime and mayhem,” said U.S. Attorney Annette L. Hayes. “As this defendant knew full well, the laws and rules apply to crypto currency dealings just as they do to other types of financial transactions.  I commend Homeland Security Investigations for their ongoing work to police the Internet – including the Dark Web -- to root out those who undermine public safety for all of us.”

          According to records filed in the case, in December 2016, federal law enforcement responded to an ad ONG had placed regarding buying and selling bitcoin – a cryptocurrency that can be used for purchases on the dark web and elsewhere.  Later in December, and again in February and March 2017, ONG traveled to the Seattle area to exchange cash for bitcoin.  At various times the undercover agents specifically told ONG that the funds they were exchanging for bitcoin came from drug trafficking.  ONG repeatedly told them he did not want to hear that so that he had ‘plausible deniability.’

          In May 2017, ONG was observed by other HSI agents in Blaine, Washington running cash through a bill counter while sitting in his car.  The agents informed him he needed to register as a money remitter with FinCEN, a bureau of the U.S. Treasury whose mission is to safeguard the financial system from illicit use and money laundering.  ONG registered with FinCEN, and informed Homeland Security that he had done so.  However, even after registering he failed to follow FinCEN regulations requiring the reporting of suspicious transactions – including three more with undercover agents.

          ONG was arrested in the midst of his sixth financial transaction with undercover law enforcement agents.  After each of the exchanges for bitcoin, law enforcement used licensed cryptocurrency exchanges to return the government funds to cash.  As part of his plea agreement, ONG is forfeiting both cash and bitcoin now valued at more than $1 million.

          ONG was indicted on August 16, 2017 and pleaded guilty on February 15, 2018.  He was released on bond to reside with his sister in Los Angeles, California after being held for 20 days at the Federal Detention Center at SeaTac.

            While on home restrictions in Los Angeles, ONG volunteered with a variety of homeless organizations and today tearfully told the court he now realizes “how his actions (as an illegal money transmitter) facilitated more people being exposed to addictive substances.”

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

          The owner of ‘Joe’s Guns and Stuff,’ a business in Shoreline, Washington was charged today in U.S. District Court in Seattle with two counts of illegal possession of a machinegun, announced U.S. Attorney Annette L. Hayes.  DANIEL JOSEPH HUNGERFORD, 73, allegedly modified and sold two illegal firearms to an undercover ATF agent.  The firearms were made to fire in rapid bursts of ammunition – as a machine gun.  Possession of machine guns by private citizens is illegal under federal law.  HUNGERFORD will make his initial appearance in U.S. District Court in Seattle at 2:00 today.

          According to the criminal complaint, on April 10, 2018, HUNGERFORD sold an undercover agent with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) a .300 Blackout rifle where the lower receiver had been modified to accept an M16 automatic sear. The modifications made the firearm a three round burst machinegun.  When making the sale, HUNGERFORD did not complete any of the required paperwork or conduct a background check as required by federal law.

          On a second visit a few days later, the undercover agent again purchased gun parts that had been modified to create a machinegun.  HUNGERFORD discussed his firearms work with the agent and showed him parts where the serial numbers used to identify the gun manufacturer and registration had been removed.

            Illegal possession of a machinegun 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 ATF and is being prosecuted by Assistant United States Attorney Bruce Miyake.

          Coordinated teams of more than 150 law enforcement officers and agents fanned out across the Puget Sound region early today to dismantle two drug trafficking organizations, announced U.S. Attorney Annette L. Hayes. A dozen people are in custody, arrested on two different grand jury indictments charging trafficking of both methamphetamine and heroin.  The arrests follow two wire-tap investigations and grew out of an earlier investigation that resulted in more than twenty arrests in March 2018.  The defendants will make their initial appearances in U.S. District Court in Tacoma at 2:30 today.

            “Once again, federal, state and local law enforcement partners have come together to address the drug and gun crime plaguing communities in the South Sound,” said U.S. Attorney Annette L. Hayes.  “The two groups arrested today have been charged with serious crimes involving methamphetamine, heroin and guns.  Today they appear in court to hear the charges against them – the beginning of the process to hold them to account and keep our communities safe. “

          Today law enforcement searched a dozen homes and multiple vehicles in connection with the two drug rings.  During the searches law enforcement seized 22 pounds of meth, one pound of heroin, $48,000 cash and more than 40 firearms.

            “These highly coordinated operations are purposely designed to disrupt the controlling elements who are responsible for importing dangerous amounts of methamphetamine and heroin into Western Washington,” said DEA Special Agent in Charge Keith R. Weis.

          As part of this investigation, prior to today, more than 65 pounds of meth was seized from one of the drug organizations during traffic stops along the I-5 corridor.  In March 2017, law enforcement stopped a car with 25 pounds of meth.  In three other stops in January and August of 2017 and in March of 2018, officers seized as much as 14 pounds of meth from hidden compartments in “load cars.”  Law enforcement searched five homes in connection with this group:  two in Federal Way, and homes in Auburn, Des Moines, and Kent.  Four people are charged in connection with that drug trafficking group:

            JAIME ASTORGA VEGA, 31, of Federal Way, Washington

            JOSE ALVAREZ SANCHEZ, 25, of Kent, Washington

            JAVIER GARCIA RODRIGUEZ, 34, of Auburn, Washington

            YAJAIRA ANDRADE DIAZ, 30, of Des Moines, Washington

          In the second indictment, eight people are charged with trafficking both methamphetamine and heroin:

            PRISCILIANO PASCACIO PACHECO, 28, of Kent, Washington

            DANNY AVILA, 28, of Enumclaw, Washington

            JEFFREY A. ANONSON, 47, of Kent, Washington

            MARGARITO TORRES VALDOVINOS, 24, of Seattle, Washington

            FREDERICK CLAYTON BAILEY, 63, of Ravensdale, Washinbgton

            ALICIA LEE ROBERTSON, 43, of Lakewood, Washington

            TRINIDAD RAMIREZ RAMIREZ, 27, of Black Diamond, Washington

            ISMAEL GARCIA VALENZUELA, 24, of Thermal, California

          In connection with this second group, law enforcement searched three homes in Kent, as well as homes in Marysville, Seattle, Enumclaw, and Lakewood.

          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.

          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 conducted by DEA Tacoma, the Tahoma Narcotics Enforcement Team (TNET), and the Kent Police Department, with significant assistance from the Auburn and Bonney Lake Police Departments. TNET is comprised of agents and officers from DEA, Washington State Department of Corrections, the Pierce County Sheriff’s Office and the Auburn, Tacoma, Puyallup, Bonney Lake, and Lakewood Police Departments.

          The case is being prosecuted by Assistant United States Attorneys Marci L. Ellsworth and C. Andrew Colasurdo.

          A Seattle man with a lengthy history of bank fraud was sentenced today in U.S. District Court in Seattle to 196 months in prison and five years of supervised release for a $7.5 million bank fraud scheme, announced U.S. Attorney Annette L. Hayes. LONNIE EUGENE LILLARD, 42, pleaded guilty to conspiracy to commit bank fraud in January 2017. At a subsequent hearing, the court determined that the scheme involved attempts—most of which were successful—to steal more than $7.5 million over a period of about 18 months. At the sentencing hearing Chief Judge Ricardo S. Martinez noted that LILLARD had 12 felony convictions by the age of 20.  “You’ve spent your entire life trying to defraud other people . . . . Time spent in prison has not been a deterrent to get you to stop criminal activity.” 

            According to records filed in the case, LILLARD was the leader of a large group of conspirators who stole point-of-sale terminals, then reprogrammed them with stolen merchant identification numbers to make it appear that the conspirators were in fact the merchants. They used the stolen point-of-sale terminals to process unauthorized return and refund transactions, and applied those credits to thousands of prepaid credit cards, prepaid debit cards, and gift cards. The conspirators then quickly spent the fraudulent proceeds—withdrawing cash from ATMs, buying merchandise they returned for cash, purchasing money orders and other negotiable instruments, transferring the funds to other gift cards or bank accounts, and buying precious metals—before the fraud was detected and the transactions reversed. The co-conspirators hid their fraud in part by setting up their operations first in hotel rooms, then in rented office space, and sometimes spoofing phone numbers, so that the transactions could not easily be traced to them. When search warrants were served on the homes of LILLARD and two of his co-conspirators, as well as a storage locker, law enforcement located more than 1,000 access devices, about 15 point-of-sale terminals, notebooks filled with used and unused merchant identification numbers, and thousands of receipts documenting the fraud. The victims in this case include payment processors (some owned by banks such as Chase) and dozens of merchants such as Old Country Buffet, See’s Candies, Michaels, Quiznos, and many more.

            LILLARD was the leader of the scheme, and has a long history of fraud convictions in both state and federal court. In 2006, when LILLARD was sentenced in Nevada to nearly nine years in prison, the prosecutor called him ‘incorrigible’ – something LILLARD denied, claiming he planned to turn his life around upon release from prison. Evidence indicates he began planning the current fraud even before he completed his last prison sentence. Within weeks of his release, LILLARD had the new fraud scheme up and running.

            A co-defendant, Nathaniel Wells, who also participated in leading the implementation of the scheme, was sentenced to just over 11 years in prison in March 2018.  The defendants are responsible for $5,816,938 in restitution.

            The case was investigated by the FBI Cyber Task Force. The case was prosecuted by Assistant United States Attorney Erin H. Becker and Special Assistant United States Attorney Benjamin Diggs.

          The leader of a heroin distribution ring who laundered the proceeds back to his native Ecuador was sentenced today in U.S. District Court in Seattle to 57 months in prison, announced U.S. Attorney Annette L. Hayes. FREDY RAMON GUTAMA-GUTAMA, 26, who resided in Lynnwood, Washington, conspired with his brother and others to make drug sales in various parks in north Seattle and hide their drug supply in various publicly accessible locations.   At the sentencing hearing U.S District Judge Thomas S. Zilly said “Heroin is a terrible epidemic in our country…. This defendant was participating in the distribution of a significant amount of heroin….  He sold 500 doses in one sale, and left heroin in places where there was access to everyone, including children.”

          “This defendant and his heroin dealing contributed to the opioid crisis affecting our neighborhoods and communities,” said U.S. Attorney Hayes.  “In addition, in an effort to avoid getting caught, he and his co-conspirators stashed their drugs in publicly accessible places, often near public parks, thus putting kids and others at unnecessary risk.”

          According to records filed in the case, the defendants repeatedly sold heroin to a person working with law enforcement and sent the cash proceeds both across the country and to Ecuador. While under law enforcement surveillance, the conspirators stashed some of their drugs in a rockery in the Roosevelt neighborhood of north Seattle that was very near the park and children’s playground at the Ravenna-Eckstein Community Center. Law enforcement seized the drugs. The conspirators were also observed making drug sales at Green Lake Park and in Northacres Park. The men hid their drugs in a public place to reduce their risk of being caught by law enforcement with significant quantities of heroin in their possession.

          FREDY RAMON GUTAMA-GUTAMA was indicted in March 2017, and pleaded guilty in January 2018 to conspiracy to distribute heroin and conspiracy to commit money laundering.  His brother, Fabian Martin Gutama-Gutama, 20, pleaded guilty and was sentenced last month to 18 months in prison.  Both men will likely be deported following their prison terms.           

          This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Sarah Vogel and Kate Vaughan.

             If you, or someone you know, would like information about resources for those suffering from a heroin or other substance abuse addiction, you can call the 24 hour Washington Recovery Helpline at 1 866-789-1511, or go to the University of Washington Alcohol and Drug Institute website . If you are between 13 and 20 years old you can also call Teen Link at 1866TEENLINK (1 866 833 6546) to talk to a teen volunteer.

WASHINGTON – Two Guatemalan nationals were today sentenced in U.S. District Court in Tacoma, Washington, for their scheme to exploit other Guatemalan nationals for their own financial gain, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Annette L. Hayes of the Western District of Washington. Antonio Francisco-Pablo, 60, residing in Forks, Washington, was sentenced to 3 years in prison for one count of forced labor. Antonia Marcos Diego, 42, also residing in Forks, Washington, was sentenced to one year of probation for one count of document servitude in furtherance of forced labor. At the sentencing hearing, U.S. District Judge Ronald B. Leighton described their crimes as a “despicable offense” and a “serious degree of exploitation.” 

          According to documents filed in court, defendant Antonia Marcos Diego and her husband, Antonio Francisco-Pablo, lured Diego’s sister to enter the United States from Guatemala, falsely promising that they would provide her with a home, a job earning a lot of money, and a good life. Contrary to these promises, however, the defendants saddled the victim with significant debt upon arrival in the United States, and informed her that she would work off the debt by picking salal, a plant commonly used by florists. The defendants retained all of the victim’s earnings and increased her debt by imposing additional charges on her for food, housing, transportation, and utilities. The defendants also kept the victim’s identification documents and threatened her with deportation if she ever tried to leave them. According to court documents, the defendants similarly lured another relative to the United States from Guatemala, and also imposed a significant debt upon him after his arrival.      

          “The defendants forced their own family members to work for no pay after luring them to the United States on false promises of a better life,” said Acting Assistant Attorney General John Gore. “The Department of Justice will continue to prosecute labor traffickers, who exploit vulnerable individuals for their own greed and erode the American ideals of freedom, opportunity, and the rule of law.”

          “What these defendants did to their victims amounts to modern day slavery and will not be tolerated,” said U.S. Attorney Annette L. Hayes.  “All of us in law enforcement are committed to addressing the needs of victims and holding perpetrators to account.  I encourage anyone with information about this kind of forced labor victimization to go to law enforcement and be part of the solution.” 

          Both defendants will pay $18,950 in restitution to the victims. Francisco-Pablo was in the U.S. unlawfully, and it is virtually certain that he will be deported following his prison term. Antonia Marcos Diego will be on probation for one year.  

          The case was investigated by the Department of Homeland Security’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the Clallam County Sheriff’s Office, Port Angeles Police Department, and Washington State Patrol Crime Laboratory.

          The case is being prosecuted by Assistant United States Attorney Bruce F. Miyake and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution.
 

          This weekend DEA and its partners will host one of the most popular DEA community programs:  National Prescription Drug Take Back Day. On Saturday April 28th, 2018, between 10 a.m. and 2 p.m., the public can dispose of their unused and unwanted prescription medications at one of the 182 collection sites in the Pacific Northwest (PNW), operated by 153 local law enforcement agencies and other community partners.    

          This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.  DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.

          When the results of the 14 DEA Take Back Days for the PNW are combined, DEA and its state, local, and tribal law-enforcement and community partners removed over 402,928 pounds (201.4 tons) of medication from circulation.  Since the program began eight years ago, over 9 million pounds – more than 4,500 tons of prescription medications have been collected nationwide

          The public can find a nearby collection site by visiting www.DEATakeBack.com or by calling 800-882-9539. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.

          The service is free and anonymous.

          A former postal worker has been charged with federal crimes for stealing mail, announced U.S. Attorney Annette L. Hayes.  JAMIE GUHLKE, 55, of Federal Way, Washington pleaded not guilty to three counts of theft of mail by an officer or employee at her initial appearance on the indictment on April 16, 2018.  Trial on the charges is scheduled in front of Judge James L. Robart on June 25, 2018.

         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 an online 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 two of the devices to a local pawn shop, and determined that other items were sold via the online marketplace ‘OfferUp’.  One additional device was found in GUHLKE’s possession.  When GUHLKE left work on August 27, 2015, her car was stopped by Special Agents of the United States Postal Service – Office of Inspector General.  Visible inside the car on the front passenger seat was the stolen device.  Following the traffic stop, GUHLKE was barred from postal service property and her employment was terminated.

            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.

          The owner of two Pierce County sports memorabilia and card gaming shops pleaded guilty today in U.S. District Court in Tacoma to failing to pay employment taxes on more than 50 employees, announced U.S. Attorney Annette L. Hayes.  DONALD A. KNUTSEN, 54, owned Northwest Sportscards, which had locations in Tacoma and University Place, Washington.  In his plea agreement, KNUTSEN admits that between 2008 and 2016 he withheld a total of $234,769 in income, Social Security, and Medicare taxes from the paychecks of at least 51 different employees, but failed to accurately report and pay the tax withholdings and an additional $122,350 in employer-owed taxes to the Internal Revenue Service.  KNUTSEN agreed to pay the taxes and any interest imposed by the IRS.  KNUTSEN faces up to five years in prison when sentenced by U.S. District Judge Robert J. Bryan on July 20, 2018.

          According to records filed in the case, KNUTSEN operated the two sports cards and memorabilia stores for more than 27 years.  The investigation revealed that as early as 2002, KNUTSEN stopped paying employment taxes, including Social Security and Medicare taxes on his employees.  KNUTSEN withheld the money from the employee paychecks but never paid it to the IRS or filed the required forms accounting for the payments.  Instead, KNUTSEN used the money to acquire inventory and promote his business.  In addition, KNUTSEN failed to file any personal income tax returns after 2000.

          Because KNUTSEN was not filing tax forms or paying taxes to the IRS, the employees working at the shops failed to accrue individual Social Security benefits.

          The case is being investigated by the Internal Revenue Service Criminal Investigation.  The case is being prosecuted by Assistant United States Attorney Steven Masada.

          The operator of a business that abused bankruptcy filings to get drivers licenses reinstated pleaded guilty to perjury this week in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes.  Between 2012 and 2017, TRACY J. TALLY, 46, of Poulsbo, Washington, admits she unlawfully provided legal advice and assisted people with filing fraudulent bankruptcy forms.  When questioned under oath in a deposition with a United States Trustee, TALLY falsely denied such activities.  TALLY faces up to five years in prison when sentenced by U.S. District Judge Robert J. Bryan on July 13, 2018.

          According to records filed in the case, TALLY operated a business identified as ‘No More Drivin’ Dirty.’  For a fee, TALLY would assist clients with filing false bankruptcy forms, which were subsequently used to exploit a provision that allowed motor vehicle drivers to seek reinstatement of their licenses from the Washington State Department of Licensing upon submitting proof that a bankruptcy proceeding had commenced.  The bankruptcy petitions were false and the bankruptcy proceeding was typically abandoned once the license was reinstated.  In February 2017, TALLY was questioned under oath about whether she had provided unauthorized legal advice to clients.  TALLY claimed she had not, even though she knew at the time she made the statement that she had given such advice to hundreds of clients.

          As part of her plea agreement, TALLY will pay restitution totaling $2,100 to four clients and $15,000 to the United States Trustee.  Prosecutors have agreed to recommend a three-year term of probation.  The ultimate sentence is up to Judge Bryan.

          The case was investigated by the FBI and U.S. Bankruptcy Trustee.  The case is being prosecuted by Assistant United States Attorney Grady Leupold.

          The owner of Orient Seafood Production of Fife, Washington, pleaded guilty today in U.S. District Court in Seattle to conspiracy to violate the Lacey Act, announced U.S. Attorney Annette L. Hayes. HOON NAMKOONG admits that between August 2014, and November 2016, he conspired with others to underreport the amount of sea cucumbers purchased for processing by approximately 250,000 pounds.  The post-processing market value of the sea cucumbers is nearly $1.5 million.  HOON NAMKOONG is scheduled for sentencing in front of Chief U. S. District Judge Ricardo S. Martinez on July 20, 2018.

            According to records filed in the case, HOON NAMKOONG purchased sea cucumbers from both tribal and non-tribal fishers in the Puget Sound region.  Sea cucumbers are classified as shellfish, and harvests are regulated by both Washington State and Tribal authorities.  To protect the resource, the harvests are tracked by fish tickets signed by both the fisher and the purchaser.  HOON NAMKOONG admits that he falsified fish tickets, failed to prepare fish tickets or retain confirmation of fish tickets submitted by third parties, and frequently paid fishers in cash for their sea cucumbers so there would be no financial record of the total amount of sea cucumbers taken.  Falsifying fish tickets, and processing and selling in interstate or foreign commerce illegally obtained shellfish is a violation of the Lacey Act, the federal law that prohibits illegal trafficking in wildlife, fish, and plants. 

                HOON NAMKOONG’s company processed the sea cucumbers and sold and transported them to wholesale seafood buyers in both the U.S. and in Asia, for a gain of nearly $1.5 million.  

                Under the terms of the plea agreement, HOON NAMKOONG will pay up to $1,499,999 in restitution.  Prosecutors agreed to recommend no more than 30 months in prison for HOON NAMKOONG.  The ultimate sentence will be up to Chief Judge Martinez.

            Conspiracy to Violate the Lacey Act is punishable by up to 5 years in prison and a $250,000 fine.

            The case was investigated by the NOAA Office of Law Enforcement and the Washington State Department of Fish and Wildlife.

            The case is being prosecuted by Assistant United States Attorneys Matthew Diggs and Seth Wilkinson.

 

          The former President & CEO and the former vault manager of Northwest Territorial Mint, a now-bankrupt company dealing in precious metals, were indicted last week for 20 federal felonies resulting from a Ponzi-like scheme that defrauded customers of millions of dollars, announced U.S. Attorney Annette L. Hayes.  BERNARD ROSS HANSEN, 57, aka Ross B. Hansen and DIANE RENEE ERDMANN, 45, aka Diane Renee, both of Auburn, Washington will make their initial appearances on the indictment at 2:00 Monday, April 16, 2018.

            Northwest Territorial Mint (NWTM) operated both a custom business that involved the manufacturing of medallions, coins, and other awards, and a bullion business that involved the selling, buying, exchanging, storing, and leasing of gold, silver, and other precious metals.  The company had offices in Federal Way and Auburn, Washington, but declared bankruptcy on April 1, 2016.

          The indictment alleges that between 2009 and 2017, HANSEN and ERDMANN defrauded NWTM customers in a variety of ways.  HANSEN and ERDMANN lied about shipping times for bullion, improperly used customer money to expand the business to other states, and used customer money to pay their own personal expenses.  By at least 2012, the company lacked enough assets to fulfill customer orders and used new customer money to pay off older customers in a Ponzi-like scheme.  In total, over 3000 customers paid for orders, or made bullion sales or exchanges, that were either never fulfilled or never refunded.  The total loss to these customers was more than $25,000,000.  

            In addition to the customer fraud, in April 2016, more than fifty people who stored their bullion with NWTM found all of part of their bullion worth $4.9 million was missing; twenty customers involved in a bullion leasing program were also defrauded of more than $5 million; and a Canadian silver bullion producer was defrauded of more than $1 million in silver bullion.  

            Between 2012 and 2016, HANSEN and ERDMANN took more than $1 million dollars out of the company accounts for their own use.  In addition, during this time frame, they transferred some $120,000 in cash from the company to ERDMANN’s checking account and used $400,000 in company funds to pay their personal credit card bills.  Finally, between March 2016 and June 2017, ERDMANN sold more than $700,000 worth of precious metals, including gold and silver bullion, and used the proceeds for the benefit of herself and HANSEN.

            The indictment charges the pair with ten counts of mail fraud and ten counts of wire fraud.  Each of the charges are punishable by up to 20 years in prison.

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

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

          A 52-year old Lynnwood, Washington man was sentenced today in U.S. District Court in Seattle to 33 years in prison for his predatory and exploitive scheme to recruit young women and teens to prostitution for his own enrichment, announced U.S. Attorney Annette L. Hayes.  DAVID D. DELAY was convicted of 17 federal felonies following a ten-day jury trial in November 2017.  At today’s sentencing hearing U.S. District Judge Robert S. Lasnik said “He deserves a long sentence and a sentence that sends a message to the community that these crimes will not be tolerated.”

          “The long prison sentence imposed in this case is just punishment for the devastating impact this defendant had on his victims,” said U.S. Attorney Hayes   “As they bravely testified in court, the defendant’s conduct left his victims with deep and lasting emotional scars.  There simply is no place in civilized society for the kind of sexual exploitation that this defendant engaged in without so much as a second thought.”

          “Delay used fraud and fear against vulnerable young women and girls to coerce them into commercial sex, turning them into sexual commodities for his own profit,” said Acting Attorney General John Gore of the Civil Rights Division. “The Department of Justice will continue to vigorously pursue sex traffickers and today’s sentence is an example of our ongoing efforts to hold traffickers accountable for their horrific crimes and vindicate the rights of their victims.”

            According to evidence presented in court, including the testimony of seven victims, the defendant targeted vulnerable teenagers and young women in their early 20s by claiming to be a famous film producer with a multi-million dollar contract from HBO to produce a documentary on prostitution.  Delay enticed his victims, several of whom he convinced to travel across the country to be with him, into working for him as prostitutes by falsely claiming that they would make up to $20 million by participating in his documentary.   In order to convince the victims that his assertions were true, DELAY sent them falsified bank account screenshots supposedly depicting the profits of his other films, a photograph of himself outside of an HBO office, and seemingly official, binding contracts that he asked them to sign that obligated them to pay him over a thousand dollars per week in prostitution proceeds.  DELAY falsely promised some of his victims that he was negotiating for them to star in a reality television show produced by Ryan Seacrest.  Representatives from HBO and Ryan Seacrest Productions testified that the companies did not have any business dealings with DELAY.

          Once the victims arrived in Seattle, the defendant coerced them into prostituting themselves for his profit.  He manipulated them emotionally, psychologically, and sexually; isolated them; made them completely dependent on him; and in some instances threatened legal action against them, falsely claiming that the victims had violated their contracts and were subject to civil penalties.  In furtherance of his sex trafficking scheme, the defendant also enticed two minor victims to produce graphic pornographic photographs and videos for him, and in two instances threatened to release sexually explicit video images of his victims unless they complied with his demands. 

          “The FBI remains committed to working with federal, state and local partners to combat such egregious criminal activities " said Special Agent in Charge Jay Tabb, of the FBI’s Seattle Field Office. “In this case, the FBI worked closely with the Redmond Police Department and the US Attorney’s Office to get survivors the help they need, and traffickers the justice they deserve. Given the complexity of Mr. Delay’s criminal schemes, our team included multiple experts all working as part of the Child Exploitation Task Force, a unit which continues to identify other victims and predators so we can disrupt cycles of abuse. ”

          “We are proud of the excellent work done by the Redmond Police in partnership with the FBI.  Our close working relationship with our law enforcement partners allowed us to bring the needed resources to bear to ensure the defendant was arrested and convicted of his crimes,” said Redmond Police Chief K. Wilson.

            Judge Lasnik ordered DELAY to pay $76,700 in restitution to his victims, plus additional costs for counseling and medical care.  Following prison DELAY must register as a sex offender and will be on supervised release for the rest of his life.  Because DELAY has continued to harass his victims on social media, the judge requested the prison system and U.S. Probation limit his access to social media and computers.

          Co-defendant Marysa Comer, 23, of Matthews, North Carolina, previously pleaded guilty on November 16, 2015, to one count of conspiracy to commit sex trafficking for her role in Delay’s scheme.  She was sentenced to 36 months in prison on December 1, 2017.

          The case was investigated by the FBI’s Seattle Field Office and the Redmond Police Department, along with assistance from the FBI’s Chicago Field Office, the King County Sheriff’s Office, the King County Prosecuting Attorney's Office, the Beaverton, Oregon Police Department, and the Bureau of Prisons. The case was prosecuted by Assistant U.S. Attorney Kate Crisham and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.

          A 24-year-old Bothell, Washington resident was indicted today by a federal grand jury on three counts of traveling for sex with a minor and one count of production of child pornography, announced U.S. Attorney Annette L. Hayes.  THOMAS MAHONEY faces a mandatory minimum sentence of 15 years in prison if convicted.  MAHONEY was arrested on state charges in October 2017, and was transferred to federal custody last month.  Arraignment on the indictment will be scheduled later this month.

            According to records filed in the case, Facebook notified the National Center for Missing and Exploited Children (NCMEC) about sexual conversations and photos being exchanged between an adult and child over its network.  The information was provided to law enforcement in California where the young victim was located, and to the Seattle Internet Crimes against Children Task Force (ICAC) which traced the internet address to MAHONEY.  Law enforcement served a court authorized search warrant on MAHONEY’s residence and obtained his electronic devices for analysis.  Travel records confirm information from the victim that MAHONEY traveled to California three times in 2016 and 2017 to have sex with the victim.  The victim was 12 years-old when MAHONEY ‘friended’ the victim on Facebook and was 14 years-old when MAHONEY initiated sex.   MAHONEY made videos of the sexual contact, thereby producing child pornography.

            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 Homeland Security Investigations (HSI) in coordination with the Seattle Police Department and the Internet Crimes Against Children Task Force (ICAC). The Contra County California District Attorney’s Office, the U.S. Attorney’s Office in the Northern District of California, and the Snohomish County Sheriff’s Department are key partners in the investigation.

            The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson, with assistance from Assistant United States Attorney Christina McCall of the Northern District of California.  Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.

 

          A former Seattle college soccer star, currently jailed on sexual assault charges in Arizona, was indicted April 4, 2018, by a federal grand jury for a massive tax fraud scheme, announced U.S. Attorney Annette L. Hayes.  During the course of the scheme, 46-year old DION L. EARL purchased the Seattle Impact FC franchise, a professional indoor soccer club.  The indictment alleges that between 2008 and 2014, EARL used false documents to lie about his income, the amount of tax dollars withheld by employers, and his mortgage deductions, so that he could claim tax refunds of more than $1.1 million.  Because EARL currently faces sexual assault charges in Arizona, his arraignment on the indictment has not been scheduled.

          In the 1990’s EARL was a soccer star at Seattle Pacific University.  According to the indictment, between 2008 and 2014 EARL claimed to be making huge salaries working for car dealers in the Puget Sound region, and as the owner/operator of Dion Earl’s Total Soccer & Tennis Camps, LLC, d/b/a Total Business Ventures.  For example, the indictment alleges that in 2012, EARL claimed on his 2011 Form 1040 tax return that he made $880,000 working for five different car dealers.  EARL claimed the dealers withheld more than $330,000 of his wages for taxes.  EARL then falsely claimed mortgage interest payments on four different properties, reducing his ‘tax liability.’  With the scheme, EARL obtained a tax refund of $329,198.  In fact, EARL made less than $80,000 that year, had no tax payments withheld, and paid limited mortgage interest. 

          The Indictment further alleges that even after the IRS began a civil audit on EARL, he continued to make false claims and provided false information to the IRS.  As late as 2015, EARL claimed he and his wife made $765,000 from Dion Earl’s Total Soccer & Tennis Camps, LLC, d/b/a Total Business Ventures, and the Seattle Impact FC.  EARL claimed $180,000 was withheld and attempted to get a tax refund of $137,554.  That refund was not paid.  In all EARL sought $1.6 million in fraudulent tax refunds, and was paid approximately $1.1 million.

          EARL is also charged in connection with false income information he submitted to Key Bank in 2008 to qualify for a home equity line of credit.

          The five-count indictment charges EARL with three counts of false statement on tax returns, corrupt endeavor to impede administration of the Internal Revenue laws, and false statement on a loan application.

            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.

          If convicted EARL faces up to ten years in prison.

          The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorney Arlen Storm.

earl_indictment_0.pdf

 

          A prominent Southwest Washington fishing guide, who was convicted last year of killing two protected wild salmon, was convicted today in U.S. District Court in Tacoma of a disability fraud scheme, announced U.S. Attorney Annette L. Hayes.  BILLY JIM SWANN, 53, was convicted following a three-day trial before U.S. District Judge Robert J. Bryan.  Judge Bryan found SWANN guilty of perjury, wire fraud, and Social Security fraud for his 8-year scheme to obtain disability benefits to which he was not entitled.  Judge Bryan set sentencing for June 22, 2018.

          According to records filed in the case and testimony at trial, SWANN applied for Social Security disability benefits in 2006, claiming that he had been disabled and unable to work since 2003.  When Social Security denied the claim, SWANN appealed and swore before an administrative law judge that his only work activity was as a volunteer for a few weeks in the summer at an Alaska fishing camp.  When SWANN’s claims for disability benefits were again denied, SWANN filed an appeal in U.S. District Court, again with numerous false claims about his alleged disabilities.  SWANN claimed his disability interfered with his ability to walk, climb stairs and use his hands, and that he needed a cane to walk.  SWANN claimed that the accident that caused his disability in 2003, also caused him cognitive problems, limiting his ability to carry on a conversation.

          Contrary to SWANN’s claims, between 2006 and 2014, he had a busy and successful business known as Swanny’s Guided Fishing.  SWANN offered guided fishing trips in Washington, Oregon, Idaho and Alaska.  SWANN was featured on the cover of Northwest Sportsman Magazine, was sponsored by numerous outdoor equipment brands, and was a regular guest on fishing shows carried on the radio.  In 2012, the year he told an administrative law judge that he had not worked at all, SWANN took in $92,503 for his fishing guide business.

             SWANN’s applications for benefits were repeatedly denied by Social Security.  Had SWANN been successful in his scheme, he and his family would have collected more than $200,000 in benefits.

            Perjury and Social Security fraud are punishable by up to five years in prison.  Wire fraud is punishable by up to 20 years in prison.  Those are the maximum penalties, and the actual sentence imposed will be determined by Judge Bryan based on a number of sentencing factors.

            The fraud scheme was uncovered during a 2016 investigation of SWANN’s illegal conduct on the Cowlitz River.  On October 1, 2014, SWANN led a promotional fishing trip on the Cowlitz River. The trip was being broadcast over the internet.  SWANN encouraged his clients to catch two native Coho salmon. Native Coho on the Cowlitz are protected by the Endangered Species Act and Washington law, and may not be removed from the water. After the clients landed the fish, SWANN clubbed both of them and then cut off the adipose fins on each fish to make it appear they were hatchery fish and therefore legal to catch and keep.  However, evidence of the catching and clubbing of the wild and protected fish was caught on the web broadcast, and the illegal conduct was reported to the Washington State Department of Fish and Wildlife.  SWANN entered a guilty plea to violating the Endangered Species Act.  In March 2017, SWANN was fined $7,500 for the federal misdemeanor conviction.

            The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and NOAA Fisheries Office of Law Enforcement.

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

          A task force led by the Drug Enforcement Administration today arrested 15 people and continues to search for an additional six defendants charged in connection with a long-term investigation of drug trafficking, announced U.S. Attorney Annette L. Hayes.  Law enforcement served search warrants at eight locations and searched more than a dozen vehicles.  At locations in Tacoma, Seattle, Auburn, Fife, Renton, Bonney Lake, and Tumwater, officers and agents seized more than a dozen weapons, 11 pounds of heroin and more than $40,000 in cash.  The defendants arrested today will appear at 2:30 today in U.S. District Court in Tacoma.

          "I commend the strong partnership between federal, state and local law enforcement that led to charges against twenty defendants responsible for pumping the misery of methamphetamine into south King County and beyond,” said U.S. Attorney Annette L. Hayes.  “Working together we were able to use federal tools such as wiretaps to unmask those behind the drug crimes that have plagued many of our suburban neighborhoods and communities.”

            The lead defendant in this case is DERRICK DONNELL TAYLOR-NAIRN, 32, of Seattle, who was at the center of the drug trafficking conspiracy.  Four other defendants, JESSICA PLASCENCIA HERNANDEZ, 34, of Renton, JOSE MARGARITO MALDONADO, 38, of Bonney Lake, LEBRET MARQUIS RICHARDSON, 37 of Fife, and ANDREW LEIE YOUNG, 34, of Seattle, allegedly supplied large quantities of methamphetamine and face longer potential sentences due to the drug quantities involved.

            The 15 additional defendants named in the indictment are:

            LISA ANN ADAMS, 42, of Lake Stevens

            DAVID EARL BEEMAN, 51, of Tukwila

            IAN EDWARD DISTRITO, 41, of Auburn

            SHAIINE RODNEY JARDINE, 29, of Puyallup

            ARTHUR ALONZO JEFFERSON, 59, of Lynnwood

            DE’ANDRE AARON JONES, 39, of Auburn

           SHANNON MARIE LEUPOLD, 44, of Tumwater

           RIJAONA C. LASHAE LINDSEY, 26, of Seattle

          LAURA ANN PALPALLATOC, 64, of Renton

           SOURIYANH L. PASOMSOUK, 43, of Federal Way

          CHAD MICHAEL STAHLMAN, 24, of Bonney Lake

          CORI NICOLE TROMBLEY, 33, of Tacoma

          SERESA MAE WALTERS, 40, of Tacoma

          CRYSTAL MARLENE WEAVER, 36, of Bellevue

          JACK NY YIM, 47, of Federal Way

          One additional defendant was arrested today and charged by criminal complaint.  CRAIG FELLERS, SR., 49, of Seattle, was charged with making a false statement in connection with an attempted firearms purchase.  In September 2017, FELLERS attempted to purchase a semi-automatic assault pistol at the direction of drug ring-leader TAYLOR-NAIRN.  FELLERS allegedly lied on purchase forms claiming the gun was for his personal use, when monitored telephone calls revealed the gun was being purchased for someone who is prohibited from possessing firearms.  After being alerted by law enforcement the gun store refused to sell FELLERS the gun.

          “We are very proud of our partnership with the Tahoma Narcotics Enforcement Taskforce,” said Puyallup Chief of Police Scott Engle. “Our partnership reveals the strength of federal and local agencies working together to make our communities safer.  I am proud of all the hard work done by detectives and task force officers.” 

          DEA Special Agent in Charge Keith Weis said, “Today’s success is due to the strong partnerships built within the law enforcement community which collectively came together with the vision to remove an armed drug trafficking group representing imminent danger to our communities.” 

            The charges contained in the indictment and 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.

          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 conducted by DEA Tacoma, the Tahoma Narcotics Enforcement Team (TNET), and the Puyallup Police Department, with significant assistance from Bonney Lake, Auburn and Kent Police Departments.   The investigation was supported by agents from Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, deputies from the United States Marshal’s Service, and analysts from the Northwest High Intensity Drug Trafficking Area (HIDTA) and National Guard.

          The case is being prosecuted by Assistant United States Attorneys Marci L. Ellsworth and C. Andrew Colasurdo.

          An enrolled member of the Lower Elwha Klallam Tribe pleaded guilty Tuesday in U.S. District Court in Tacoma to Domestic Assault by a Habitual Offender, announced U.S. Attorney Annette L. Hayes.  MATTHEW TYLER CHARLES, 31, of Port Angeles, pleaded guilty following one day of testimony about his history of assaulting his intimate partner.  CHARLES was indicted federally following the October 21, 2017 assault of a woman with whom he had a long-term relationship.  CHARLES faces up to five years in prison when sentenced by U.S. District Judge Ronald B. Leighton on June 15, 2018.

            According to records filed in the case and testimony at trial, in the early morning hours to October 21, 2017, the victim arrived at the Lower Elwha Casino.  Shortly after her car pulled into the parking lot, the surveillance video shows CHARLES arriving in another vehicle.  The video shows CHARLES assaulting the victim, violently shoving her back into the car and physically restraining her when she tried to flee.  At one point during the incident, CHARLES brandished a knife.  Two witnesses who were in the parking lot alerted casino security.  CHARLES left the scene, but was later taken into custody.

            CHARLES has four previous convictions related to domestic violence in either state or Tribal court.  Two of these convictions arise from assaults in 2006 and 2014 on this same victim that were prosecuted in Clallam County District Court and Superior Court, respectively, and two convictions in Lower Elwha Klallam Tribal court for 2004 and 2010 assaults on this victim and another victim, respectively.  Those convictions subject him to prosecution in federal court as a habitual offender.

            The case was investigated by the FBI and the Lower Elwha Klallam Tribal Police.  The case was prosecuted by Assistant United States Attorneys Rebecca S. Cohen and J. Tate London. 

          A 43-year-old Everett resident made his initial appearance in U.S. District Court today charged by criminal complaint with shipping of explosive materials, announced U.S. Attorney Annette L. Hayes. THANH CONG PHAN, was arrested Monday March 26, 2018 after a number of packages containing small amounts of black explosive powder were received at various mail-screening locations in the Washington DC area.  The mailings were addressed to the White House, the FBI, and various government and military installations.  The investigation to locate and isolate all of the packages is ongoing.  No packages have exploded or caused any injuries.

            PHAN became a suspect in the case when a U.S. Postal Service inspector traced the tracking information on one of the packages to the Mill Creek, Washington post office self-service kiosk.  Surveillance photos from the time of the mailing appeared to show PHAN. Writings contained in the package were also similar to previous correspondence from PHAN to various government agencies.  PHAN had been known to police previously because of the writings, and due to frequent contact with the 9-1-1 emergency dispatch system.  PHAN was taken into custody without incident.

            Shipping of explosive materials is punishable by up to ten years in prison.

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

            The case is being investigated by the FBI, the U.S. Postal Inspection Service and the U.S. Secret Service.

 

             A former Seattle Police Officer was sentenced today to 6 years in prison, and his co-conspirator in an interstate marijuana distribution scheme was sentenced today to 14 years in prison, in U.S. District Court in Seattle, announced U.S. Attorney Annette L. Hayes.  Former officer ALEX CHAPACKDEE, 44, of Seattle pleaded guilty in November 2017 to conspiracy to distribute marijuana and conspiracy to commit money laundering.  Ring leader TUAN VAN LE, 43, of Maple Valley pleaded guilty in December 2017 to conspiracy to distribute marijuana and conspiracy to commit money laundering.  At Chapackdee’s sentencing hearing U.S. District Judge Thomas S. Zilly said Chapackdee’s actions resulted in “[a] shame on his badge, his department, and on this community . . . and deserves to be punished accordingly.”

            “These defendants – including a sworn law enforcement officer – flouted all applicable law when they shipped hundreds of pounds of marijuana to the East Coast in order to make the biggest possible buck,” said U.S. Attorney Annette L. Hayes. “Marijuana remains illegal under federal law and shipping unlicensed and untaxed marijuana across state lines certainly is illegal under state law as well.  We will continue working with our federal, state, local and tribal partners to ensure that federal drug and money laundering laws are properly enforced.”

            An investigation by the FBI’s Public Corruption Squad, the Drug Enforcement Administration (DEA), the Seattle Police Department, and Homeland Security Investigations revealed that on multiple occasions between January of 2015, and April 2017, LE and others made repeated trips between Seattle and Baltimore.  While LE often flew one way or roundtrip, other members of the conspiracy made the trip by driving virtually non-stop.  The vehicles carried hundreds of pounds of marijuana to the Baltimore area and the cash proceeds back to Seattle.  CHAPACKDEE participated in multiple trips, driving his RV one or both ways in September, October and November, 2016, as well as in March and April 2017.  CHAPACKDEE -- who was an SPD officer throughout the conspiracy -- admits that while he was furthering the conspiracy he was armed and carried his Seattle Police Department badge.  CHAPACKDEE, LE and the other conspirators linked up at both ends of the trip, distributing the marijuana on the East Coast and then returning with the cash proceeds to Western Washington.  Bank records indicate CHAPACKDEE repeatedly deposited his share of the cash in his personal account, in amounts just under $10,000, thereby avoiding reports to law enforcement.  CHAPACKDEE used his status as a police officer to cover and protect the conspiracy. 

            The bulk of the proceeds were laundered into a marijuana growing/processing business, Tetra Holding Company (THC) that was ostensibly “legal” under Washington law and in the process of applying for a license from the State of Washington.  On paper, the business was owned by two of the co-defendants, LE’s nephew, Hoang Le and his girlfriend, MEIFANG YU, 45.  In reality, TUAN VAN LE was the primary investor, and was in control of the business.  However, as a convicted felon, TUAN VAN LE is prohibited under Washington State law from being an owner/investor in any permitted marijuana business.  TUAN VAN LE nonetheless provided his nephew, often through his girlfriend, with very large amounts of money to get THC up and running – close to $1 million dollars.

            MEIFANG YU was sentenced today to 3 years of probation, including 180 days of home confinement and 150 hours of community service for her role in the conspiracy.

            In addition to the prison terms both LE and CHAPACKDEE  will be on federal supervision following prison of 5 years and 4 years, respectively.  Both men have been in custody since their arrest on May 8, 2017.

            Coconspirator Samath Khanhphongphane was sentenced to 5 years in prison on February 8, 2018.  Defendants Phi Nguyen and Hoang Le will be sentenced on April 12, 2018.

           This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the FBI, DEA, Seattle Police Department and Homeland Security Investigations (HSI). Multiple agencies assisted with the arrests and the serving of search warrants including the Port of Seattle Police Department.

          The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Justin Arnold.

            DONALD MCCOY JR , 53, of  Bothell, Washington, was sentenced today in U.S. District Court in Seattle to twenty-four years in prison and lifetime supervised release for production, distribution and possession of child pornography, announced U.S. Attorney Annette L. Hayes.  MCCOY was arrested in October 2016, and has been in federal custody since that time.  At the sentencing hearing U.S. District Judge James L. Robart said “that his sentence was intended to remove [the defendant] from society so he cannot do this anymore.”

            “No sentence – no matter how long -- will ever address the harm this defendant did,” said U.S. Attorney Annette L. Hayes.  “Not only did he commit a horrific crime when he molested young children, but he also harmed other children when he participated in the trading of images and videos of their abuse.  I commend the dedication of the law enforcement officers who ensure that offenders are taken off the internet and out of our communities so they can no longer hurt our kids.”

            According to records filed in the case, MCCOY came to the attention of federal law enforcement in 2016, when an undercover agent using peer-to-peer file sharing software observed images of child rape being shared from a computer tied to an internet protocol address that traced back to MCCOY’s residence.  After obtaining the address and a court authorized search warrant, law enforcement executed the search at MCCOY’s home.  Forensic examination of various electronic devices revealed that MCCOY had produced images of his molestation of four young children between the ages of 6 and 13 years-old.  MCCOY molested several of the children while they were asleep.

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

          The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) with assistant with the Seattle Internet Crimes Against Children Task Force.  The case was prosecuted by Assistant United States Attorney Matthew Hampton.

            A  Canadian national who was extradited in January 2018 in connection with a 2008-2009 international drug smuggling scheme, pleaded guilty today in U.S. District Court in Seattle to conspiracy to possess with intent to distribute controlled substances, announced U.S. Attorney Annette L. Hayes.  COLIN HUGH MARTIN, 46, from British Columbia, Canada, was indicted in 2010.  At his sentencing hearing on June 29, 2018, MARTIN faces a mandatory minimum five years in prison and up to 40 years in prison.  Prosecutors have agreed to recommend no more than ten years in prison. The ultimate sentence will be determined by U.S. District Judge Robert S. Lasnik.

            According to records filed in the case, MARTIN conspired with others to transport cocaine north across the Canadian border via helicopter.  The cargo coming south was ecstasy or BC Bud marijuana.  MARTIN gained a prominent role in the cross-border smuggling conspiracy following a March 2008 seizure of MDMA in Tukwila and of cocaine in California.  MARTIN purchased and leased various helicopters and recruited pilots to fly the illegal drugs across the border.  MARTIN recruited people to load and off load the helicopters. MARTIN and his coconspirators used encrypted Blackberry phones and code names to communicate.  

            The plea agreement connects MARTIN to these drug seizures: 83 kilos of cocaine that was seized in Utah in February 2009, on its way to a helicopter transport site in rural northeastern Washington; 190 kilos of marijuana flown into eastern Washington; 20 kilos of cocaine seized in Ontario, California in February 2009; and 79 kilograms of marijuana from Canada that was seized by agents from a helicopter that landed in Idaho on March 5, 2009.

            Co-defendant Sean William Doak was sentenced in 2016 to seven years in prison. Other co-conspirators received sentences ranging from 18 months to ten years in prison based on their level of involvement in the drug ring.

            The case was investigated by the Drug Enforcement Administration (DEA) with assistance from the Royal Canadian Mounted Police (RCMP) and the Utah Highway Patrol.

            The case is being prosecuted by Assistant United States Attorney Sarah Vogel with assistance from the Department of Justice Office of International Affairs.

          A multi-state sting operation led by Homeland Security Investigations (HSI) resulted in the arrest of ADRIAN PEREZ, 41 of San Diego, California and the seizure of more than 315 pounds of methamphetamine, announced U.S. Attorney Annette L. Hayes.  PEREZ was arrested and charged by criminal complaint in Seattle last week after he tried to take possession of 18 kilos of cocaine he intended to transport for a Canadian drug trafficking organization.  Quick work by law enforcement, and especially the Seattle Police Department, resulted in the seizure of more than 150 pounds of methamphetamine from the Seattle home rented by PEREZ. 

          “Drug trafficking organizations use the I-5 corridor to ship large quantities of their poisons into our communities -- from San Diego to Bellingham and beyond,” said U.S. Attorney Annette L. Hayes.  “We work closely with our international, federal, state and local counterparts to identify those involved and disrupt their efforts.”

          According to records filed in the case, in April 2017, RCMP and HSI began investigating a group smuggling drugs from San Diego into Canada.  Last month agents went undercover and posed as drug couriers who had cocaine they were willing to sell to the criminal organization.    On March 13, 2018, a member of the drug trafficking organization agreed to meet at a central Seattle parking lot to pick up 18 kilos of cocaine.  PEREZ arrived at the meeting place, took delivery of the cocaine and was arrested by HSI.  The next day Seattle Police Department officers served a search warrant at a ‘HomeAway’ rental property in the Leschi neighborhood which PEREZ had occupied for the previous four days.  Inside officers found three large duffle bags containing 150 pounds of methamphetamine and $4,000 in cash.  HSI obtained a court authorized warrant to search the vehicle PEREZ was driving.  Inside they found an additional 165 pounds of methamphetamine.

            “HSI continues to work closely with the Seattle Police Department and other partners to investigate crimes like drug trafficking,” said Brad Bench, Special Agent in Charge of HSI Seattle. “Three hundred pounds of meth and 18 kilos of cocaine can have devastating effects on a community, and the quick action of HSI and the Seattle Police Department thwarted that from happening.”

            “Methamphetamine is second only to opioids when it comes to fatal drug overdoses,” said Seattle Police Chief Carmen Best. “Getting these dangerous drugs off the street is a testament to what is possible when we work together with our federal partners.”

            Due to the drug quantities involved PEREZ faces a mandatory minimum ten years in prison if convicted. 

            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 HSI with critical assistance from the Seattle Police Department.

 

          A 49-year-old Edmonds, Washington man who defrauded the U.S. Naval Sea Cadet Corps (NSCC) of more than $77,000 was sentenced today in U.S. District Court in Seattle to one year in prison, three years of supervised release and $75,525 in restitution, announced U.S. Attorney Annette L. Hayes.  In November 2017, MICHAEL NOEL LEIGHTON was convicted following a four-day jury trial of four counts of wire fraud and one count of embezzlement.  At the sentencing hearing U.S. District Judge Thomas S. Zilly said “There was a lot of money that was spent improperly for personal items, for this defendant’s own personal use.”

                “Fraud always undermines trust – in this case, with respect one of the cornerstones of our communities – our nonprofits,” said U.S. Attorney Annette L. Hayes.  “Those who volunteer their time and hard earned funds deserve to know that they will be put to good use.  Those who abuse that trust deserve to be held to account, just as this defendant was in this case.”

            According to records in the case and testimony at trial, in 2011 LEIGHTON volunteered to become a training officer for a local NSCC unit based in Skagit and Snohomish Counties.  In this role LEIGHTON was to organize and implement training opportunities for teen-aged students, called Sea Cadets.  The program was funded by federal grants from the U.S. Navy to the NSCC.  In addition, the Sea Cadets and their parents paid fees to participate in the programs.  LEIGHTON and a family member had control of the bank account for the program.  Between October 2011 and December 2012, LEIGHTON withdrew thousands of dollars for his personal expenses including meals, gas and the purchase of firearms and firearms accessories.  Such purchases were not allowed under the program. 

            The Naval Sea Cadet Corps asked LEIGHTON for audit reports and receipts for his spending.  In response, LEIGHTON provided fraudulent reports, attempting to cover up his illegitimate spending.  When the new volunteer leaders of the group took over they discovered items purchased with the funds were missing.  In the storage locker they found a few inexpensive furniture pieces, several uniforms, and camping gear.  The expensive cameras, copiers and computers, as well as a number of firearms that LEIGHTON had purchased with NSCC funds were missing.

            The case was investigated by the Naval Criminal Investigative Service (NCIS) and was prosecuted by Assistant United States Attorneys Seungjae Lee and Stephen Hobbs.

          UPDATE

The defendant in this case, MEHRAN GHANOUNI, was acquited of the charges alleged in the indictment described in the press release below.

         

           A Canadian citizen was arrested on arrival at Sea-Tac airport last night, following his indictment on charges of violating U.S. export laws and making false statements to federal investigators, announced U.S. Attorney Annette L. Hayes.  MEHRAN GHANOUNI, 29, operated a number of companies in both the U.S. and Canada.  The indictment alleges that between 2014 and 2016, GHANOUNI and his coconspirators exported $2.3 million in parts for petrochemical operations, falsely claiming they were destined for companies in Kuwait, Iraq and the United Arab Emirates.  In fact, the coconspirators knew the equipment was to be transshipped to oil companies owned by the government of Iran.  Such exports are illegal under federal law.  GHANOUNI will make his initial appearance in U.S. District Court in Seattle at 2:00 p.m. today.

            “The violation of export control requirements undermines our national security,” said U.S. Attorney Annette L. Hayes.  “I commend the investigative work of Homeland Security Investigations and the Office of Export Enforcement that has resulted in this arrest and charges.”

          According to the indictment, the co-conspirators attempted to illegally export the equipment on 35 different occasions.  The indictment describes a February 1, 2014, export where GHANOUNI’s company, Integrated Control Systems (ICS) claimed the parts were for an oil refinery in Kuwait when in fact they were destined for Iran.  In May 2014, ICS claimed parts were destined for a company in Iraq, when in fact they were for an Iranian oil company.  In December 2014, U.S. Customs and Border protection seized a shipment of parts ICS was sending overseas suspecting they were headed to Iran.  The company again falsely claimed they were for repairs to be made in the UAE for a project in Iraq.  Other shipments in January 2015 and February 2016 were also destined for Iran, but were represented as being for companies in Iraq and the UAE.  When questioned, MEHRAN GHANOUNI told a special agent with Homeland Security Investigations that his company did not do any business with Iran.  GHANOUNI knew that statement was false.

          Conspiracy to violate the International Emergency Economic Powers Act Making a False Statement are each punishable by up to five years of imprisonment.

          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. Immigration and Customs Enforcement’s Homeland Security Investigations and United States Department of Commerce, Office of Export Enforcement. 

          The case is being prosecuted by Assistant United States Attorney Thomas Woods with assistance from the Department of Justice National Security Division.

          A registered sex offender with prior convictions for raping a 12-year-old girl he met via the internet, was convicted today in U.S. District Court in Seattle of two federal felonies involving his receipt and possession of images of child pornography, announced U.S. Attorney Annette L. Hayes. RICHARD DAVID BLICK, 65, formerly of Edmonds, Washington was indicted in September 2017, following an investigation by the King County Sheriff’s Office and Homeland Security Investigation (HSI).  The jury deliberated for about three hours following a two-day trial.  U.S. District Judge John C. Coughenour scheduled sentencing for June 12, 2018.

            According to records in the case and testimony at trial, the electronic service provider Dropbox made a report to the National Center for Missing and Exploited Children (NCMEC) that an account later linked to BLICK was uploading pictures of child pornography.  The subsequent law enforcement investigation revealed BLICK owned the Dropbox account and that he was a Level 3 registered sex offender with a 2001 conviction for raping a 12-year-old girl.  In August 2017, law enforcement served search warrants on BLICK’s residence, an RV in Edmonds.  On BLICK’s various electronic devices were thousands of images of child pornography as well as chats and videos with a 14-year-old California child whom BLICK convinced to send him sexually explicit images.  BLICK has been in federal custody since his arrest in August 2017.

            In closing arguments prosecutors noted that possession and receipt of child pornography is not a victimless crime, “Children are injured each and every time an adult trades in their misery… Child pornography keeps alive in the dark recesses of the internet the suffering that they have endured,” prosecutors told the jury.

            BLICK faces a mandatory minimum 15 years in prison and up to 40 years in prison for receipt of child pornography.  Possession of child pornography is punishable by a mandatory minimum of 10 years in prison and a maximum of 20 years.

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

            The case was investigated by the King County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

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

 

          A 40-yearold Tukwila, Washington resident pleaded guilty today in U.S. District Court in Seattle to production and possession of child pornography, announced U.S. Attorney Annette L. Hayes. JESSE LEE ALLEN, was arrested in November 2016, after a witness reported that she had seen videos of the molestation of a young child on ALLEN’s cell phone.  The witness made a report to Tukwila Police in October 2016 and ALLEN was located and arrested a few weeks later.  ALLEN faces a mandatory minimum 15 years in prison when sentenced by U.S. District Judge Thomas S. Zilly on June 7, 2018.

            According to records filed in the case, the witness was involved in a romantic relationship with ALLEN and at one point checked his phone to see if there were images of other women ALLEN might be dating.  The witness instead discovered three videos that showed the sexual molestation of a 6-year-old child.  The witness immediately went to police.

            Production of child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison.  Possession of child pornography is punishable by up to 20 years in prison.

            The case was investigated by the Tukwila Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI).  The case is being prosecuted by Special Assistant United States Attorney Cecilia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation cases in federal court.

          A 50-year old El Paso, Texas man was sentenced today in U.S. District Court in Seattle to three years in prison and three years of supervised release for his scheme to defraud immigrants who he scammed out of more than $400,000, announced U.S. Attorney Annette L. Hayes.  ALEJANDRO GURANY, collected thousands of dollars from immigrants across the U.S. after telling them he worked for a government immigration office and could provide the immigrants with legal status for a fee.  GURANY was never employed by a federal immigration agency.  Law enforcement identified more than 30 victims in Washington and Ohio.  GURANY was ordered to pay them $140,550 in restitution.

             “This defendant preyed on vulnerable people, exploiting their fear of deportation to line his pockets with their hard-earned wages,” said U.S. Attorney Hayes.  “He stole not only their money, but their American dream of education and a better life for themselves and their children.”

            According to records in the case, between at least December 2011 and March 2015, GURANY pretended to be an employee of the United States and told immigrants he could get them legal status in the U.S. in exchange for money.  GURANY traveled to SeaTac, Washington, and met with immigrants at an airport hotel.  GURANY took personal identifying information, including photographs and fingerprints from the immigrants seeking green cards or citizenship.  Some of the immigrants paid GURANY thousands of dollars believing he would provide them legal status.  When no legal status was provided, the victims were afraid to complain about GURANY, since he had all their personal information and they believed he could get them deported.

            Judge Robert S. Lasnik accepted the defendant’s claim that Mexican cartels threatened him and his family, demanding that he pay them money.  But added that such a claim does not excuse his conduct.  “It was a very insidious and awful crime that Mr. Gurany committed.  You cannot justify it by saying ‘I need to protect my family’ and then preying on other families.”           

          “Unscrupulous immigration practitioners not only exploit the trust of their often-unwitting victims,” said Shawn Fallah, resident agent in charge for ICE’s Office of Professional Responsibility, “but by filing fraudulent immigration applications, they create security vulnerabilities and compromise the integrity of our legal immigration system. We will continue to work tirelessly with our law enforcement counterparts to investigate criminals and imposters who manipulate and exploit the system for their own personal gain and see that they are brought to justice.”

            The U.S. Immigration and Customs Enforcement Office of Professional Responsibility (ICE OPR) received information from a detainee in 2013 that GURANY was posing as an immigration official.  Law enforcement began a financial investigation that revealed the extent of the fraud. The investigation revealed $412,775 had been paid in cash or funneled into GURANY’s bank accounts from Washington, Colorado, California, Arizona, Wyoming, Oregon, and New Mexico. Knowing of the cash payments, and the approximate dollar figures GURANY demanded, investigators believe the number of victims is likely far more than the 30 they have been able to identify.

            The case was investigated by U.S. Immigration and Custom Enforcement’s Office of Professional Responsibility.  The case is being prosecuted by Assistant United States Attorney Nicholas Manheim.

          The 48-year-old former bookkeeper for two Windermere Real Estate franchises was sentenced today in U.S. District Court in Tacoma to 71 months in prison and three years of supervised release for six counts of wire fraud related to her embezzlement scheme, announced U.S. Attorney Annette L. Hayes. CINDI ALLISON, now of Ben Wheeler, Texas, used her unfettered access to the bank accounts of Windermere Puyallup and Windermere South Sound to embezzle $478,398.  When the embezzlement scheme was uncovered, ALLISON went on the offensive filing spurious complaints with various state regulators to attack and distract the victim of her theft.  At sentencing U.S. District Judge Ronald B. Leighton said, “What you did was despicable . . . . And doing that to a friend is not only wrong, it’s immoral.  It breaks every ligament that ties civilized people together.”

            “This defendant’s greed harmed a small business owner and those who depended on her business for their livelihood,” said U.S. Attorney Annette L. Hayes.  “Wages were frozen, retirement savings contributions delayed, and ultimately the business was sold below market value because of this defendant’s actions.” 

          During a five-day jury trial in June 2017, prosecutors presented evidence that ALLISON transferred money from Windermere accounts to her own bank accounts and those of her boyfriend, ex-husband, and service providers such as a roofer in Ben Wheeler, Texas. Between 2011 and 2015, ALLISON made 782 unauthorized transfers from the two real estate franchise accounts to sixteen different accounts that all had some connection to ALLISON.  As the bookkeeper, ALLISON made various entries in the records and strategically bundled various transactions together to make the transfers appear legitimate. The fraud came to light in March 2015, when the new purchaser of the businesses started investigating some of the transfers and could not get straight answers from ALLISON. ALLISON had been working remotely from Texas as the bookkeeper, and the company shut down the computer system to protect its accounts.           

            The impact of ALLISON’s fraud was even greater than the amount of money she embezzled.  The victim had to spend more than $50,000 in forensic accounting and attorney fees to uncover the extent of the fraud scheme, and the sales price for the business was at least $100,000 below its true market value because the fraudulent entries on the business’ books made it appear less profitable than it actually was.  Today Judge Leighton ordered ALLISON to pay $630,346 in restitution.

          ALLISON has been in custody since being convicted following her trial in June 2017.

           The case was investigated by the U.S. Secret Service. The case WAS prosecuted by Assistant United States Attorneys Andre Peñalver and Steven Masada.

 

          A 50-year-old serial bank robber was sentenced February 26, 2018 in U.S. District Court in Seattle to 15 years in prison and five years of supervised release for armed bank robbery and brandishing a firearm during a crime of violence, announced U.S. Attorney Annette L. Hayes. VINCENT L. FIELDS, 50, of Tacoma was arrested March 22, 2017 following a bank robbery in Renton.   FIELDS tried to avoid a car-to-car search following the robbery by fleeing from police at a high rate of speed.  FIELDS crashed his car into another driver and fled on foot but was ultimately taken into custody.  U.S. District Judge James L. Robart imposed the sentence.

            According to records filed in the case, FIELDS began his bank robbery spree in February of 2017, robbing a Tacoma Wells Fargo branch on February 15 and a University Place Key Bank on February 21.  On March 7 he robbed a Wells Fargo branch in University Place and attempted to rob a different Wells Fargo branch on March 9, 2017.  On March 22, 2017, FIELDS brandished a distinctive submachine style gun at a teller and demanded cash.  The quick thinking teller included a GPS tracking device with the cash.  Law enforcement was able to trace FIELDS’ movements and caught up with him stopped at a Renton intersection.  That’s when FIELDS took off traveling in the wrong lane of travel, striking another car before being taken into custody.  The gun and the cash were recovered.

            FIELDS was still on federal supervision for a 2012 drug trafficking conviction.  FIELDS has a prior federal conviction for trafficking crack cocaine and state convictions from 1995 for second degree murder and possession of cocaine with intent to deliver.

            The case was investigated by the FBI and the Renton Police Department.  The case was prosecuted by Assistant United States Attorney Vince Lombardi.

          A Seattle man who sold heroin and meth in downtown Seattle while armed with a handgun was sentenced today in U.S. District Court  in Seattle to six years in prison, announced U.S. Attorney Annette L. Hayes.  JUSTIN GARRETT HARRISON, 37, used his 85-year-old grandmother’s condominium home to store and sell heroin and methamphetamine.  Judge John C. Coughenour sentenced HARRISON for being a felon in possession of a firearm, possession of heroin with intent to distribute and possession of a firearm in connection with a drug trafficking crime.  Judge Coughenour ordered four years of supervised release to follow the prison term.

            According to records filed in the case, in late January 2017, HARRISON arranged to sell $2500 worth of heroin to an undercover agent.  Police had already received numerous complaints from neighbors at HARRISON’s grandmother’s condo complex about the high volume of foot traffic coming and going from the condo.  HARRISON was arrested in the lobby of the building after he returned from another drug deal.  HARRISON carried a backpack containing meth, heroin, prescription pills, three cell phones, a drug ledger and a loaded handgun with additional rounds of ammunition.  In the apartment law enforcement found other evidence of drug trafficking and at a room in a nearby hotel they found nearly half a pound of methamphetamine that HARRISON was storing in the room safe.

            HARRISON is prohibited from possessing firearms due to a King County Superior Court conviction for assault with a deadly weapon.  In that case HARRISON threatened a cab driver with a knife.

            The case was investigated by the Seattle Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).  The case was prosecuted by Special Assistant United States Attorney Jessica Manca. Ms. Manca is a Senior Deputy King County Prosecutor specially designated to prosecute gun crimes in federal court.

          A former Seattle resident pleaded guilty today in U.S. District Court to unlawful possession of a destructive device for making and throwing bottles filled with gasoline at police officers on May 1, 2016, announced U.S. Attorney Annette L. Hayes.  WIL CASEY FLOYD, 33, of Elkhart Lake, Wisconsin, was arrested in April 2017, after a lengthy investigation that linked him to a so-called ‘Black Bloc’ of protestors who threw unlit incendiary devices at Seattle Police during a May Day protest.  FLOYD faces up to ten years in prison when sentenced by Chief U.S. District Judge Ricardo S. Martinez on June 1, 2018.

            According to the plea agreement and other records in the case, FLOYD went online to research building Molotov cocktails.  He purchased the necessary supplies and constructed six of the explosive devices using beer bottles.  He placed the bottles filled with gasoline in a black bag.  FLOYD dressed in black, wore a black hood and a gas mask and joined the protest on the evening of May 1, 2016.  FLOYD threw five of the unlit destructive devices at Seattle Police Officers.  One of the Molotov cocktails thrown at police shattered at the feet of an officer and ignited his trousers when a flash-bang grenade went off.  The officer suffered burns to his leg.  FLOYD dropped the bag containing one remaining bottle of gasoline and changed his clothes and appearance before police could arrest him.  The evidence left at the scene on 4th Avenue South and South Seattle Boulevard and a variety of videos and ultimately helped identify FLOYD as a suspect.

            Under the terms of the plea agreement, prosecutors agree to recommend a sentence of no more than 37 month in prison.  The ultimate sentence will be determined by Judge Martinez.

            The case was investigated by the FBI’s Joint Terrorism Task Force and the Seattle Police Department, both through its membership on the JTTF and with additional investigative groups.

          The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Tom Woods.

 

WASHINGTON — Deputy Attorney General Rod Rosenstein joined U.S. Attorney Annette L. Hayes, Seattle Mayor Jenny A. Durkan, the Wales family, the National Association of Former United States Attorneys Foundation, and other law enforcement partners in Seattle today to bring continued and deserved attention to the Department of Justice investigation into the 2001 murder of Assistant U.S. Attorney Thomas C. Wales.

The Department of Justice remains committed to a reward of up to one million dollars for information leading to the arrest and conviction of those responsible. In addition to and separate from the Department’s reward, the National Association of Former United States Attorneys Foundation President Mike McKay announced that his organization is offering up to a $525,000 reward to the same individuals as the Justice Department for information leading to the Department’s prosecution of those responsible for Wales’ murder. Wales worked as a federal prosecutor in the Western District of Washington for 18 years before he was shot and killed in his home the evening of Oct. 11, 2001.

“Any attack on a law enforcement officer is an attack on our entire justice system,” Deputy Attorney General Rosenstein said. “The Wales family has shown incredible strength, courage, and devotion. As Deputy Attorney General, I intend to see that we leave no stone unturned in the search for the killer who murdered Tom Wales. We will continue to pursue this case for as long as it takes to achieve justice. The killer will be held accountable.”

“The murder of Tom Wales more than 16 years ago remains an affront to the rule of law and a devastating loss to all who knew Tom and the community he so loyally served,” said U.S. Attorney Annette L. Hayes. “I am deeply grateful to the National Association of Former United States Attorneys and their foundation for establishing a separate reward in this case.  As the Department of Justice has made clear time and again — we will never rest until justice is done in this case.”

A task force led by the Federal Bureau of Investigation and Seattle Police Department continues to work actively and intensively. The investigative team has been able to successfully investigate thousands leads and continues to devote resources to focused investigative avenues. In just the last 12 months, the investigative team has served  nearly 50 new subpoenas and has pursued approximately 100 leads. 

Investigators believe that there are people who have information and hope that the significant reward provides an additional incentive for coming forward. The task force asks the public to help partner in its efforts for justice, and closure for the Wales family.

“The FBI remains committed to bringing closure for the Wales family,” said FBI Special Agent in Charge Jay S. Tabb, Jr., of the FBI’s Seattle Field Division. “We continue to offer a reward of up to $1 million for information that helps us resolve this investigation. We know that there are people with pertinent knowledge and we are pleading with you to come forward to the FBI. Please help us solve this case for the Wales family.”

“We haven’t forgotten about Tom Wales, and are leaving no stone unturned in this investigation,” said Seattle Police Chief Carmen Best. “We will continue to work in collaboration with our federal partners to bring the individual responsible for his brutal murder to justice.”

“Local prosecutors will continue our partnership with federal investigators on this case, said Dan Satterberg, King County Prosecuting Attorney. “We are determined to solve this terrible crime.”

The Seattle Prosecutor Murder (SEPROM) Task Force is a joint effort by the FBI, the Seattle Police Department, the Department of Justice, and the King County Prosecuting Attorney’s Office. It includes agents, detectives, analysts, two Department of Justice prosecutors, a King County prosecutor, and FBI personnel assisting across the nation to cover far-ranging leads.

Anyone with information is encouraged to contact the FBI and can do so confidentially by phone at (206) 622-0460 or by e-mail at walestips@fbi.gov. People can also send anonymous tips to the FBI at 1110 Third Avenue, Seattle, WA, 98101.

The complete library of information, including multi-media materials for download and use, the FBI Seeking Information poster, details about the tip lines, and more can be found at https://www.fbi.gov/wanted/seeking-info/thomas-crane-wales. 

# # #

          Three Seattle men are in custody, and two are being sought by law enforcement in connection with a 6-month investigation by the Seattle Police Department and DEA of significant drug trafficking in Seattle’s Pioneer Square neighborhood, announced U.S. Attorney Annette L. Hayes.  PATRICK TABLES, 53 and MICHAEL TURNER, 49, were taken into custody this morning.  MARVIN TRAYLOR, 49, and JONATHON RUSHING, 39, both of Seattle are being sought by law enforcement. CLYDE MCKNIGHT, 49, of Seattle was taken into custody in January 2018, when law enforcement seized significant amounts of crack cocaine, cocaine, fentanyl, and heroin from his vehicle.  The defendants taken into custody today will make their initial appearance in U.S. District Court in Seattle at 2:00 PM.

            According to the indictments and criminal complaint filed in the case, CLYDE MCKNIGHT, the apparent leader of the drug distribution ring was arrested outside a Portland, Oregon motel room in January 2018, following the seizure of 3 kilos of cocaine, 2 kilos of heroin, 1.5 lbs. of crack cocaine, and 187 grams of fentanyl from his vehicle in Seattle.  At the time of his arrest, MCKNIGHT had $39,000 and a handgun in his vehicle.   Other defendants in the case are charged with drug distribution and gun crimes.  RUSHING, TABLES and TRAYLOR are charged with conspiracy to distribute controlled substances.  RUSHING is charged with possession of crack cocaine and methamphetamine with intent to distribute, being a felon in possession of a firearm, and carrying a firearm during and in relation to a drug trafficking crime.  TABLES is charged with multiple counts of possession of crack cocaine with intent to distribute and TRAYLOR is charged with possession of crack cocaine with intent to distribute.   TURNER is charged by complaint with possession with intent to distribute crack cocaine and possession of a weapon in furtherance of drug trafficking.

            RUSHING has prior convictions in King County Superior Court for second degree murder (1997) and a federal conviction for being a felon in possession of a firearm (2012).

            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.

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

            The case is being investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA).

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

 

          A Tampa, Florida, man who assaulted crew and passengers on a Delta Airlines flight bound for China pleaded guilty today in U.S. District Court in Seattle to four federal felonies in connection with the July 16, 2017 incident, announced U.S. Attorney Annette L. Hayes.  JOSEPH DANIEL HUDEK IV, 24, is scheduled for sentencing by U.S. District Judge John C. Coughenour on May 15, 2018.  The four federal felonies (interference with a flight crew and three counts of assault in a special aircraft jurisdiction) are punishable by up to 20 years in prison.

            According to records in the case and the plea agreement signed today, HUDEK was seated in first class on the Delta flight. The aircraft had 210 passengers on board and 11 crew members.  The plane had just passed over Vancouver Island and was over the Pacific Ocean when HUDEK came out of the first class bathroom and in an agitated state attempted to raise the lever of the exit door of the aircraft. Two flight attendants attempted to stop HUDEK and he threw one to the floor and punched the other. When a passenger attempted to assist the flight attendants, HUDEK hit him over the head with a wine bottle. Ultimately, multiple passengers were required to restrain HUDEK, and one lowered the exit handle of the door as the aircraft returned to Seattle.

            In court filings HUDEK admits he ingested marijuana edibles before the flight.  In a pretrial ruling Judge Coughnour barred HUDEK from using a mental incapacity defense based on his voluntary consumption of marijuana.

            HUDEK has agreed to pay restitution to the injured passengers in an amount to be determined at the sentencing hearing.

            HUDEK remains out of jail on bond, but is prohibited from traveling on aircraft.

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

          A 38-year-old Federal Way, Washington man was sentenced today in U.S. District Court in Seattle to 18 years in prison and lifetime supervised release for five federal felonies involving the sexual exploitation of children, announced U.S. Attorney Annette L. Hayes. STEVEN MARC RIGTRUP was arrested in April 2017, and pleaded guilty in November 2017 to enticement of a minor, two counts of distribution of child pornography, possession of child pornography and production of child pornography.  At the sentencing hearing U.S. District Judge James L. Robart asked him, “Where is there some acknowledgement that you have destroyed peoples’ lives? ...You must be removed from society for the protection of our community.”

            According to records filed in the case, in February 2014, RIGTRUP molested a 15-year-old girl he met after placing an ad on Craigslist.  RIGTRUP photographed his molestation of the teen and the photos were sent to another sex offender in southern California.  In November 2014, RIGTRUP was arrested and prosecuted in King County Superior Court for soliciting sex via the internet with someone he thought was a teen-ager.  In fact, the person he was trying to entice was an undercover officer.  RIGTRUP was sentenced to a year in prison, but quickly became involved in child exploitation offenses again following his release.  Law enforcement received a CyberTip from the National Center for Missing and Exploited children that images of child sexual abuse had been uploaded from an email account associated with RIGTRUP.  When law enforcement searched RIGTRUP’s residence and electronic devices in February 2017, they discovered more than 588 images and four videos of children being raped and molested.

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

          The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).  The case was prosecuted by Assistant United States Attorney Marie Dalton.

          A federal jury convicted RICHARD THOMAS ZIESKE, a Renton man who presented himself as an investment advisor, of eight federal felonies late yesterday, announced U.S. Attorney Annette L. Hayes.  ZIESKE was previously convicted of federal fraud charges for defrauding members of his church and others out of over $1.2 million by posing as an investment advisor.  In the present prosecution, ZIESKE was charged with a similar scheme to defraud victims he met through a Renton martial arts studio.  The jury deliberated for about two hours following the three-day trial before finding ZIESKE, 48, guilty of eight federal felonies.  ZIESKE was convicted of five counts of wire fraud, one count of securities fraud and two counts of aggravated identity theft.  U.S. District Judge James L. Robart scheduled sentencing for April 30, 2018.

            According to records in the case and testimony at trial, in 2005 ZIESKE pleaded guilty to mail fraud, securities fraud and wire fraud for a scheme in which he solicited nearly $2 million from members of his church and others, fraudulently promising big returns on investments.  ZIESKE was sentenced to 41 months in prison and ordered to pay more than $1.3 million in restitution.  The Washington Department of Financial Institutions also entered a cease and desist order against him. 

          Nevertheless, in 2013, ZIESKE overheard a member of his Renton martial arts studio talking about his 401k account.  The victim had been forced to retire and limit his martial arts due to a degenerative neck condition.  ZIESKE convinced the victim to allow him to manage more than $95,000 in retirement funds, promising big returns.  Instead, ZIESKE used the money to purchase a limited edition Harley Davidson motorcycle, to pay for liposuction surgery, and to finance a luxury SUV.  ZIESKE attempted to recruit other ‘investors,’ and convinced the founder of the martial arts studio to invest about $40,000 with him.  A brokerage firm closed ZIESKE’s trading account after its check revealed ZIESKE’s prior conviction.  ZIESKE then opened another brokerage account using the identity of another member of the martial arts studio.  That conduct is the basis for the aggravated identity theft convictions.

            Wire fraud is punishable by up to 20 years in prison.  Securities fraud is punishable by up to five years in prison.  Aggravated identity theft is punishable by two years in prison consecutive to any other sentence imposed on other counts of conviction. 

            The case was investigated by the FBI.  The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Michael Dion.

          Two men were indicted by a federal grand jury in Seattle late yesterday for three federal felonies in connection with their scheme to smuggle dozens of firearms to Turkey and Iraq in violation of the Arms Export Control Act, announced U.S. Attorney Annette L. Hayes.  PAUL STUART BRUNT, 51, of Bellevue, Washington, and RAWND KHALEEL ALDALAWI, 29, of Seattle, were arrested on a criminal complaint January 24, 2018.  They will be arraigned on the indictment on February 8, 2018.

            According to records filed in the case, between October 2016 and November 2017, BRUNT and ALDALAWI engaged in a scheme to smuggle firearms from the U.S. to people associated with the Peshmerga military in Kurdistan, a part of Iraq.  BRUNT purchased the firearms at gun stores and gun shows around the Puget Sound region.  The men then attempted to ship the guns from the Port of Seattle through Turkey and on to Iraq, hidden in the side panels of vehicles.  In the first shipment in February 2017, some 30 guns were hidden in three cars.  In the second shipment in November 2017, 47 firearms were concealed in two vehicles.  That second shipment was discovered by authorities in Turkey, and the shipment was traced back to BRUNT and ALDALAWI.  The men had not obtained any export licenses for the firearms and smuggled them in violation of the Arms Export Control Act.

            The conspiracy is punishable by up to five years in prison and a $250,000 fine.  Violating the Arms Export Control Act is punishable by twenty years of imprisonment.

            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. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).

            The case is being prosecuted by Assistant United States Attorney Thomas Woods.  The U.S. Department of Justice National Security Division is assisting with the prosecution.

brunt_and_aldalawi_indictment.pdf

         Six people have now been sentenced in U.S. District Court in Seattle for their roles in an organized crime ring involved with prostitution, announced U.S. Attorney Annette L. Hayes. The leader of the ring, FANG WANG, 29, of Queens, New York, was sentenced last month to 30 months in prison.   At her sentencing hearing, U.S. District Judge Thomas S. Zilly said the “nature of the offense is very troubling to the court.”

          YONGGUANG WU, 28, of Seattle and STEVEN THOMPSON, 59, of Renton, Washington, were each sentenced to 8 months in prison.  YUNZHONG CHEN, 45, and YAOAN HE, 33, of Seattle, were each sentenced to one year in prison. ZHAOFENG ZHANG, 23, of Seattle, was sentenced today to 21 months in prison.  ZHANG continued to post advertisements, rent apartments, and connect customers with ringleader WANG even after being contacted by law enforcement.

           According to records in the case, federal and local law enforcement partners worked jointly to investigate a criminal ring making hundreds of thousands of dollars through the prostitution of Asian sex workers. In partnership with the FBI, the King County Sheriff’s Office (KCSO), and police departments in Bellevue, Redmond, Renton, Seattle, and Tukwila identified numerous brothel locations through their analysis of Backpage.com, cell phone, and other business records. The joint team of local and federal investigators then conducted surveillance of the ring’s activities. Law enforcement determined that multiple locations were linked to the organization via ads placed with websites such as Backpage.com. The investigation revealed that the same internet protocol (IP) addresses were used for placing many of the ads, and phone numbers associated with the ads were linked as well – in some instances to call centers located in New York and Washington, D.C. In other cases, the law enforcement agencies followed up on citizen complaints about apartments being operated as prostitution locations and confirmed that the organization was in fact conducting prostitution in those locations.

                 The investigation revealed that FANG WANG – the apparent leader of the operation – spent approximately $100,000 to increase the traffic to her ads on the Backpage.com site. Other defendants played different roles – renting apartments, transporting sex workers to various locations, purchasing supplies, collecting money from the sex workers, and placing ads. Prostitution activities associated with the ring occurred in apartments or hotels located in Bellevue, Kent, Kirkland, Lynnwood, Olympia, Lacey, Puyallup, Renton, Tukwila, Seattle, and Federal Way. Other locations where the ring operated include eastern Washington cities such as Richland, Kennewick, Wenatchee, and Spokane. The sex workers were frequently moved throughout the area.

           The case was jointly investigated by the FBI, the Bellevue Police Department, the King County Sheriff’s Office, the Redmond Police Department, the Renton Police Department, the Seattle Police Department, the Tukwila Police Department, and Homeland Security Investigation (HSI).

           The case was prosecuted by Assistant United States Attorney Kate Crisham.

           A Tacoma man was convicted today of two federal felonies involving guns and drug dealing which could lead to more than 15 years in prison, announced U.S. Attorney Annette L. Hayes.  GERALD CLAUDE CARLSON, 57, was arrested in May 2016, when police serving a court authorized search warrant on his home, uncovered more than a pound of methamphetamine, 53 firearms and $34,000 in cash.  Two of the firearms were loaded and located near the meth and other drug trafficking materials.  The jury deliberated about two hours following the three-day trial.  U.S. District Judge Ronald B. Leighton ordered CARLSON into custody and scheduled sentencing for April 20, 2018.

 

            CARLSON came to the attention of law enforcement in early 2016, when someone working with the Pierce County Sheriff’s Department purchased methamphetamine from CARLSON.  Based on those contacts law enforcement obtained a search warrant.  In CARLSON’s bedroom they found the pound of meth packaged for distribution as well as identity documents and two loaded firearms: a Springfield Armory 9 mm semi-automatic pistol and a Smith and Wesson .22 caliber semi-automatic pistol.

 

            Carlson’s girlfriend, who was present when the police executed the search warrant, pleaded guilty to drug related charges in Pierce County Superior Court.

 

            Due to the amount of drugs in this case, possession of methamphetamine with intent to distribute is punishable by a mandatory minimum ten years in prison and up to life in prison.  Possession of a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum 5 years in prison and up to life in prison, to run consecutive to any sentence imposed on the drug possession count.

 

            The case was investigated by the Pierce County Sheriff’s Department, Special Investigations Unit.  Agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and Drug Enforcement Administration also testified as expert witnesses at trial.

 

            The case was prosecuted by Assistant United States Attorneys Gregory A. Gruber and Andre Penalver.

          A Seattle woman who defrauded programs aimed at assisting the neediest in our community was sentenced today in federal court to three years of probation, announced U.S. Attorney Annette L. Hayes.  DEKA HIRSI, 39, lied to obtain subsidized housing from the Seattle Housing Authority, falsely claimed that her only employment was working all night caring for her elderly parents, and claimed benefits for overnight daycare stays for her five children.  In reality, HIRSI was running a small grocery store during the day, did not provide the nightly care for her parents, and her children lived in her parents’ home and did not receive daycare services.  U.S. District Judge Robert S. Lasnik ordered HIRSI to pay $328,509 in restitution calling it “among the most serious frauds I have ever seen.”  The judge stopped short of imposing the prison sentence requested by prosecutors saying HIRSI suffers from Post Traumatic Stress Disorder (PTSD) based on childhood trauma in Somalia.  Of the fraud Judge Lasnik said “It’s wrong, it hurts people…. I want this to be a wake-up call for the community to not look the other way when you see something wrong.” 

            According to records filed in the case, in 2010 the Seattle Housing Authority received a complaint that HIRSI was defrauding the Section 8 program for the needy. HIRSI falsely claimed she was a single parent of five children.  In fact, her husband lived with the family and was employed as a taxi driver.  Investigators discovered the fraud did not stop there.  HIRSI was also defrauding the COPES program (Community Options Program Entry System) which provides federal funds to caregivers.  HIRSI claimed she cared for her elderly parents each night from 5 PM to 8 AM.  The investigation revealed HIRSI was rarely at her parents’ home during those hours, and in some instances she claimed to have worked 80 hours in their home when she was out of the country.  Finally, HIRSI claimed that because she was working all night at her parents’ home she needed overnight childcare for her five children.  The false claims to the COPES and childcare programs total $270,983.  The fraud on the Seattle Housing Authority totals $57,526.  HIRSI used Section 8 benefits that should have gone to others since her income from the grocery store, combined with her husband’s income, means she did not qualify for subsidized housing. 

            When confronted by FBI investigators about the fraud, HIRSI made numerous false statements and continued to claim she qualified for the benefits.   

            In August 2017, HIRSI pleaded guilty to three counts of theft of government funds. 

            The case was investigated by the FBI, the Health and Human Services Office of Inspector General (HHS-OIG), the Housing and Urban Development Office of the Inspector General (HUD-OIG) and the Department of Social and Health Services (DSHS) Department of Fraud and Accountability.     

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

          A long-time resident of the Olympic Peninsula was sentenced today in U.S. District Court in Tacoma to 30 days in prison for felling and stealing a big leaf maple on federal land near Olympic National Park, announced U.S. Attorney Annette L. Hayes.  MICHAEL D. WELCHES, 63, pleaded guilty in October 2017 to depredation of government property for the timber theft that occurred in November 2013.  At the sentencing hearing U.S. District Judge Robert J. Bryan said “These are very valuable trees and provide a great temptation. . . . People give into that temptation, but it's not appropriate. . . . It's just simple theft.” 

            “The natural resources in our federally protected lands belong to all of us, and to future generations not to thieves making a quick buck,” said U.S. Attorney Hayes.  “But for an alert neighbor notifying a park ranger, this defendant would literally have gotten away like ‘a thief in the night.’” 

            According to records filed in the case, on November 11, 2013, a neighbor residing near the Elwha restoration project lands notified the Park Service that he had heard chainsaws in the middle of the night.  The neighbor said he saw people in the woods wearing headlamps.  The neighbor reported similar activity a few nights later.  The ranger investigated in daylight and found a felled big leaf maple.  He asked the neighbor to call him directly if he heard or saw additional activity.  The next night, at 1:00 AM the neighbor alerted the ranger.  Law enforcement responded and arrested WELCHES and two codefendants as they were cutting and loading the felled maple.  A receipt indicated the men had sold the wood to a Quilcene, Washington music wood supplier.  Wood retrieved from that supplier matched the wood from the felled maple. 

            The value of the timber as music wood is estimated to be $8,766. The tree as a living part of the Elwha ecosystem is irreplaceable. 

            In asking that WELCHES serve prison time, prosecutors noted that in 2004 he was convicted of illegally cutting trees on state timber trust land. 

            A second defendant, Matthew Hutto has pleaded guilty and is scheduled for sentencing next month. Defendant Richard Welches is being sought by law enforcement. 

            The case was investigated by the National Park Service Investigative Services Branch.  The case is being prosecuted by Assistant United States Attorney Andre Penalver.

 

          Three key players in a drug distribution ring that operated over a large swath of Washington State were sentenced late Tuesday in U.S. District Court in Seattle to long prison terms, announced U.S. Attorney Annette L. Hayes.  The leader of the drug distribution ring BALTAZAR REYES-GARCIA 45, of Camano Island, Washington, was sentenced to eighteen years in prison; HECTOR CONTRERAS-IBARRA, 33, of Pasco, WA, was sentenced to fifteen years in prison; and ANGEL SERRANO-CARRENO, 30, of Mt. Vernon, WA was sentenced to thirteen years in prison.   The drug ring distributed heroin, methamphetamine and cocaine in King, Snohomish, Skagit and Whatcom Counties.  At the sentencing hearing for BALTAZAR REYES-GARCIA, U.S. District Judge James L. Robart said the quantities of drugs involved is “immensely alarming” and noted that REYES-GARCIA was a “major drug supplier.”

 

            “The kilograms of heroin, meth and cocaine that these defendants sold ultimately became hundreds and thousands of doses of poison in addicts’ hands,” said U.S. Attorney Annette L. Hayes. “Make no mistake – these drugs kill or otherwise destroy lives.  I commend our federal, state and local law enforcement partners for working together to arrest and convict these defendants who earned their living off the misery of Western Washington residents.”

 

            All three defendants were convicted in October 2017, following a ten-day jury trial. The conspirators operated stash houses on Camano Island and in Mount Vernon, as well as in Yakima and Franklin Counties.  The organization had broad connections spanning from Mexico to Nevada, Arizona and California, and north to British Columbia. Fourteen other co-conspirators charged in the case pleaded guilty in the months following their arrests in November 2016. These other defendants in the case have been sentenced to prison terms ranging from two to twelve years in prison.

 

            As court records and evidence admitted at trial demonstrate, law enforcement investigated the drug ring in late 2015, and early 2016, utilizing pole cameras, confidential sources, wiretaps and undercover officers to document the drug distribution activity, and identify the leaders of the ring.  In November 2016, law enforcement served search warrants on more than two dozen locations seizing two kilos of cocaine, more than $180,000 cash, and more than 20 firearms – including a loaded AK47.  Those totals were in addition to the seizures made during the investigation: eight kilos of methamphetamine, two kilos of cocaine, nearly a kilo of heroin, and more than $117,000 in cash. 

 

            The investigation was named “Operation Car Wash” as some of the conspirators would meet up to conduct their deals at a Mount Vernon car wash. 

 

          This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  The investigation was led by the Drug Enforcement Administration (DEA) in conjunction with the FBI, Whatcom Gang & Drug Task Force and Skagit County Inter-Agency Drug Task Force.  The investigation was supported by the Auburn Police Department, Snohomish County Sheriff’s Office, Snohomish County Regional Drug & Gang Task Force, Mt. Vernon Police Department, Washington State Patrol, Whatcom County Sheriff’s Office, Skagit County Sheriff’s Office, Everett Police Department and Seattle Police Department.  Additional assistance was provided by HSI; CBP, and Royal Canadian Mounted Police.

          The case is being prosecuted by Assistant United States Attorneys Kate Vaughan and Steven Masada.

          If you, or someone you know, would like information about resources for those suffering from a heroin or other substance abuse addiction, you can call the 24 hour Washington Recovery Helpline at 866-789-1511, or go to the University of Washington Alcohol and Drug Institute website (link is external). If you are between 13 and 20 years old you can also call Teen Link at 1866TEENLINK (866-833-6546) to talk to a teen volunteer.

          A repeat offender who previously served ten years for plotting to use a pipe-bomb to blow up a motel, was convicted today of four federal felonies related to his ongoing illegal weapon possession, announced U.S. Attorney Annette L. Hayes.  ROBERT A. STANARD, 41, of Stanwood, Washington was convicted of illegally possessing two firearms, illegal possession of ammunition, illegal possession of an unregistered silencer and conspiracy to obstruct justice.  The jury deliberated two hours following a three-day jury trial.  Chief U.S. District Judge Ricardo S. Martinez set sentencing for April 13, 2018.

 

            According to records in the case and testimony at trial, STANARD repeatedly directed his wife in person and via text message to purchase firearms for his use.  The weapons included an AR-15 assault rifle and a Ruger .380 handgun.  STANARD ordered more than 1,000 rounds of ammunition from online sources, as well as gun parts.  He directed his wife to purchase ammunition as well.  His wife was confused at the gun stores and in a series of text messages and pictures consulted STANARD about every purchase.  STANARD used items he ordered online to construct a silencer for one of the weapons.  STANARD was arrested in October 2016, following reports of domestic violence.  While incarcerated at Snohomish County Jail and later at the Federal Detention Center, STANARD send coded emails and spoke in code on telephone calls to get a family member to retrieve a third pistol that was hidden in his pick-up truck.  The conspirators called the gun a “CD player” and the family member confirmed he had retrieved it and was secreting it from law enforcement.

 

            STANARD was prohibited from possessing firearms due to multiple prior convictions including two federal felonies.  In 2004 STANARD was sentenced to ten years in prison for two unrelated crimes.  In March of 2001 in Utah, STANARD illegally possessed an unregistered firearm and, while in an argument with his cousin, he fired the gun with the bullet passing through the wall of an apartment.  While on pretrial release for that crime, STANARD traveled to Washington where he first pistol whipped a man in Port Angeles, and then plotted to use a pipe bomb to blow up the man’s long stay motel.  But for the work of an alert Sequim Police officer who stopped STANARD’s car due to a broken tail light, the bombing could have killed many innocent people.

 

            At trial STANARD tried to claim he had no access to the guns that his wife kept them locked away in gun safes.  Text messages show that she had provided him with the lock code for one safe, and various witnesses testified that they saw STANARD accessing the safes and with the guns at his disposal.  Prosecutors said in closing arguments “Stanard hid behind his wife and family to own guns.”

 

            STANARD faces up to ten years in prison for being a felon in possession of a firearm.

 

            The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Snohomish County Sheriff’s Office and the Washington State Patrol.

 

            The case was prosecuted by Assistant United States Attorneys Andrew Friedman and Joshua Ferrentino.

          The U.S. Department of Justice, the Washington State Attorney General’s Medicaid Fraud Control Unit, and the City of Everett Fire Department (EFD) today settled all claims that EFD had been overbilling government programs for medical transports, announced U.S. Attorney Annette L. Hayes.  Under the terms of the settlement, Everett will pay the two federal programs $127,848, and will pay the Washington State Medicaid program $75,158. 

 

            “When local entities improperly bill federal programs, it increases costs for consumers and taxpayers,” said U.S. Attorney Annette L. Hayes.  “This settlement, with Everett paying two times the damages they caused as allowed under federal law, sends a clear message to others who may try to ‘fudge’ the paperwork to get higher reimbursement rates than allowed.”

 

            According to the settlement signed today, between January 1, 2010, and June 26, 2016, Everett Fire Department personnel submitted claims to federal and state health benefit programs indicating that a higher level of life support service was provided to patients covered by those programs.  When the Everett Fire Department paramedics provided only basic life support (BLS), they still coded the claims as if they had provided advanced life support (ALS) which is entitled to a higher reimbursement.  Analysts used a sample of claims to determine the damages appropriate in this case.

 

            Records indicate that a whistleblower within the Everett Fire Department had expressed concern about the routine up-coding, but was ignored.  The fraudulent billing allegations were first publicized by news reports on KIRO-TV.  The reports triggered further examination by federal investigators from the Department of Health and Human Services and the Defense Health Agency which administers the TRICARE program for military retirees. 

 

            “Insiders willing to report illegal practices are important to safeguarding government health programs and taxpayers,” said Steven J. Ryan, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services.  “Together with our federal and state law enforcement partners we will continue to investigate entities that fraudulently bill federal health care programs.”

 

            Everett will pay $117,581 to the Department of Health and Human Services, and $10,267 to the Department of Defense.  An additional $75,158 will be paid to Medicaid Fraud Control Unit for the State of Washington.

 

            Under the terms of the settlement, Everett is not admitting any liability.

 

            The matter was handled for the U.S. Attorney’s Office Affirmative Civil Enforcement Unit by Assistant United States Attorney Kayla Stahman.  Senior Counsel Carrie L. Bashaw handled the matter for the Washington State Attorney General’s Office.

SEATTLE –  Today, U.S. District Court Judge James L. Robart granted the City of Seattle’s “Motion for Full and Effective Compliance with the Consent Decree.”  The City entered into the Consent Decree with the Department of Justice (DOJ) in 2012 to address findings that DOJ made with respect to use of force and related constitutional issues.  Both the DOJ and the Community Police Commission filed responses in support of the City’s Motion in October, and responded to further questions from the Court in December. 

 

The Court ruled today that the City is in “full and effective compliance” with all requirements and obligations under the Consent Decree.  The Court’s ruling is based on ten assessments that cover all of the requirements of the Consent Decree and were conducted by the Monitor and DOJ.  The ruling now triggers a two-year period in which the Seattle Police Department (SPD) must hold compliance with those requirements. 

 

The following is a statement from Annette L. Hayes, U.S. Attorney for the Western District of Washington:

 

Today, the Court recognized that the SPD has met a major milestone in the reform process – by putting in place new policies, critical training, and systems of oversight and accountability it has met all of the obligations contained in the Consent Decree.  This is a credit to the hard work of SPD and City leadership, engaged community members including the Community Police Commission, and SPD officers whose dedication to the mission is essential to reform.  We know that constitutional policing and effective policing go hand in hand, and that the safety of our City and the officers that serve us is enhanced when the civil rights of all are protected. 

 

The Court’s ruling is based on rigorous assessments that examined SPD’s compliance with all aspects of the Consent Decree.  As the Court pointed out, those data driven assessments demonstrate that SPD has eliminated the pattern or practice of unconstitutional policing that led to the Department of Justice’s investigation and findings in 2011.    

 

Today’s ruling does not end the City’s hard work.  SPD must sustain compliance for at least two years, and demonstrate that compliance to the Court and DOJ.  The Court has indicated that it will continue to closely monitor SPD over the next two years before deciding whether termination of all or part the Consent Decree is warranted.  We all must continue to hold SPD accountable to its commitments in the Consent Decree – to de-escalation, new and better approaches to people in crisis, and the internal supervision and independent civilian-led accountability systems that address problems when they arise. 

 

We look forward to the continued engagement of the entire community in this next phase of the Consent Decree to ensure that reform in Seattle is real and lasting.  There is no question that there remain parts of our City that expect more from their police department.  Their engagement will continue to be important as we move forward.  I know the new Mayor, City Attorney and City Council have made police reform a top priority, and I have full confidence that with that commitment, and the continued work by rank and file officers and command staff alike, SPD will continue its success under the Consent Decree