Western District of Washington

             A Tacoma, Washington woman was sentenced today in U.S. District Court in Tacoma to 60 months in prison for unlawful possession of a destructive device, announced U.S. Attorney Annette L. Hayes.  KENNI JO BENNETT, 41, of Tacoma, and an accomplice, placed the explosive device under a Kia Forte sedan parked outside a Tacoma home occupied by a family, including several children.  The device exploded, blasting a hole in the trunk area of the car and scattering debris around the area, including the lawns of homes across the street.  No one was injured.  At the sentencing hearing, U.S. District Judge Ronald B. Leighton described the crime as a “very, very dangerous offense,” and told BENNETT that her conduct showed she was a “renegade” who sought “rough justice [on] her terms.”

            “This defendant tried to keep the truth about her drug dealing and other crimes from coming out,” said U.S. Attorney Annette L. Hayes.  “Not only did she not succeed, she will now serve five years in a federal prison for her actions.  I commend the Bureau of Alcohol, Tobacco and Firearms and the Tacoma Police Department for their work on this case, and am grateful that the small children sleeping in a room near the explosion were not injured in this attack.” 

               According to the plea agreement, between August and October 2016, BENNETT became convinced that the victim was providing information to law enforcement concerning BENNETT’s drug trafficking activities.  BENNETT recruited an accomplice to help her blow up the victim’s car.  BENNETT purchased an explosive device about the size of a soda can from someone she knew on the Puyallup Indian Reservation.  In the early morning hours of October 13, 2016, BENNETT cruised the victim’s neighborhood and saw his car parked in the driveway of his home.  She texted her accomplice, picked him up, and brought him back to the target vehicle.  BENNETT used a lit cigarette to ignite the fuse of the device and instructed her accomplice where to place it.  BENNETT used her smart phone to record the explosion.  The two then left the area. 

            BENNETT was arrested by Tacoma Police and charged in state court in November 2016.  A forensic review of BENNETT’s phone revealed multiple text messages in which she bragged about the bombing and joked with her friends about it.  While in custody, BENNETT asked other people to intimidate witnesses or attempt to erase electronic evidence.  In May 2017, BENNETT was charged federally and has remained in federal custody.  

            BENNETT pleaded guilty in October 2017.

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

             A key player in a prescription forgery ring that distributed hundreds of thousands of pills of oxycodone was sentenced today in U.S. District Court in Tacoma to 84 months in prison and 3 years of supervised release, announced U.S. Attorney Annette L. Hayes.  STOSH SATKOWSKI, 24, of Tacoma, pleaded guilty in October 2017 to conspiracy to distribute oxycodone, being a felon in possession of a firearm and failure to appear in court. SATKOWSKI was a key player in the ring led by forger Anthony Ballenger, 29.  SATKOWSKI recruited others to the ring who used the forged prescriptions and false identities to obtain drugs from unsuspecting pharmacies.   At the sentencing hearing U.S. District Judge Ronald B. Leighton commented in sentencing the defendant:  “The Rule of Law is the ligament that binds us together.”

          “This defendant was a critical member of a ring that forged prescriptions and sold highly addictive drugs to fatten their wallets – oblivious to the desperation they left in their wake,” said U.S. Attorney Annette L. Hayes. “The opioid crisis is hitting communities in Western Washington hard.  I commend the partnership between the federal and local law enforcement that developed the evidence necessary to hold this defendant to account.” 

          According to records filed in the case, Ballenger was the leader of a sophisticated ring that stole the identity information of medical professionals to forge prescriptions for powerful painkillers. SATKOWSKI was Ballenger’s key associate.  The conspirators used stolen DEA registration numbers to create phony prescriptions while using various online tools to make it appear that the prescriptions had been issued by actual medical providers. In order to lull pharmacies into filling the prescriptions, Ballenger illegally accessed various online databases, including government databases, and altered the contact information for the medical professionals to divert inquiries from pharmacies to himself. Ballenger also posed as the medical professionals whose identities he stole when accessing online prescription-delivery systems, which he then used to send electronic prescriptions to pharmacies throughout Western Washington. SATKOWSKI took the forged prescriptions and fake identity documents and recruited others known as ‘runners’ who posed at patients picking up the medications at dozens of pharmacies.  SATKOWSKI transported the runners and collected the pills after the transactions.  Ballenger and SATKOWSKI distributed the pills to users throughout the Puget Sound region.  SATKOWSKI sometimes charged his customers well above street level prices, preying on their addictions.

            SATKOWSKI also pleaded guilty to illegally possessing a firearm.  In October 2016, SATKOWSKI illegally possessed a Beretta handgun.  He was prohibited from possessing a firearm due to his prior felony convictions for burglary, unlawful possession of a firearm, and harassment.  SATKOWSKI also pleaded guilty to failing to appear for trial in May 2017, when he cut off his GPS locator and absconded from supervision.

            In June 2017, Ballenger was sentenced to 76 months in prison.

          The case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad which includes task force officers from Tacoma and Seattle Police Departments and the Washington State Patrol.   The U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) assisted with the investigation, as did local police agencies from throughout King and Pierce Counties.

          The case is being prosecuted by Assistant United States Attorney Siddharth Velamoor.

SEATTLE – The following is a statement from United States Attorney for the Western District of Washington Annette L. Hayes:

            Today the Attorney General reiterated his confidence in the basic principles that guide the discretion of all U.S. Attorneys around the country, and directed that those principles shepherd enforcement of federal law regarding marijuana.  He also emphasized his belief that U.S. Attorneys are in the best position to address public safety in their districts, and address the crime control problems that are pressing in their communities.  Those principles have always been at the core of what the United States Attorney’s Office for Western Washington has done – across all threats to public safety, including those relating to marijuana.  As a result, we have investigated and prosecuted over many years cases involving organized crime, violent and gun threats, and financial crimes related to marijuana.  We will continue to do so to ensure – consistent with the most recent guidance from the Department – that our enforcement efforts with our federal, state, local and tribal partners focus on those who pose the greatest safety risk to the people and communities we serve.

Antonia Marcos Diego, 42, of Forks, Washington, pleaded guilty yesterday in federal court in Tacoma, Washington, to one count of document servitude in furtherance of forced labor, announced Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Annette L. Hayes of the Western District of Washington.  Antonio Francisco-Pablo, 60, of Forks, Washington, previously pleaded guilty on December 18, 2017, to one count of forced labor.  U.S. District Judge Ronald B. Leighton scheduled sentencing for March 23, 2018.

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 imposed a significant debt on the victim upon her arrival in the United States, and informed her that she would work off the debt by picking salal, a brush 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.        

“These two defendants recruited their own family members on false and fraudulent promises, using the American dream of freedom and opportunity to lure their victims,” said Acting Assistant Attorney General John Gore. “The Department of Justice will continue to pursue labor traffickers like these defendants, who erode our ideals of freedom, opportunity, and the rule of law in order to exploit others for their own greed.”

“These defendants took advantage of a young non-English speaking relative, who was alone in a foreign country, and exploited her for their own enrichment,” said U.S. Attorney Annette L. Hayes. “Their actions were cruel and a clear violation of federal law.  We will continue to prioritize protecting such vulnerable victims and prosecuting those who prey on them.”

Antonio Francisco-Pablo faces a possible sentence of up to 20 years in prison while Antonia Marcos Diego faces a possible sentence of up to five years in prison.  Per the terms of the plea agreements, both defendants have agreed to make restitution to both victims in an amount to be determined at the time of sentencing.

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 Unit. 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.

          A 53-year old Bothell, Washington, man pleaded guilty today in U.S. District Court in Seattle to production, distribution and possession of child pornography, announced U.S. Attorney Annette L. Hayes.  DONALD MCCOY JR was arrested in October 2016, and has been in federal custody since that time.  MCCOY faces a mandatory minimum 15 years in prison and up to 30 years in prison when sentenced by U.S. District Judge James L. Robart on March 12, 2018.

            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 made images of the molestation of four young children between the ages of 6 and 13 years-old.  MCCOY molested several the young 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.

          Five people have been charged federally in five separate mail theft cases brought in joint effort with the U.S. Postal Inspection Service to combat identity theft, announced U.S. Attorney Annette L. Hayes.  Mail and package theft is a heightened problem in the busy holiday shipping season.  These cases have taken some of the worst offenders off the street over the last few months.  Some of those charged have already entered guilty pleas, and face mandatory minimum sentences for aggravated identity theft.

            “Over the last several months we have worked with investigators from the Postal Inspection Service to federally prosecute mail thieves who repeatedly steal from homes, apartment buildings and other locations around western Washington,” said U.S. Attorney Annette L. Hayes. “These cases should serve as a warning that there are significant consequences for those who steal mail and victimize so many people.”

            “The arrest and prosecution of prolific mail thieves is a top priority of the Postal Inspection Service,” said Inspector in Charge Tony Galetti.

            Some of the cases pursued in this initiative include:

CHARLLETTE MILLER, 35, of Olympia, Washington pleaded guilty to access device fraud and will be sentenced in March 2018.  MILLER used stolen mail, including drivers’ licenses to open bank and credit accounts in the names of her victims and then ran up thousands of dollars in fraudulent charges.

JESSE FRANKLIN DENHAM, 27, is scheduled for trial in January 2018 on an eight-count indictment charging bank fraud, access device fraud and aggravated identity theft.  Using stolen mail, DENHAM allegedly opened bank and credit accounts, and forged balance transfer checks associated with the accounts.  When arrested, DENHAM had mail from more than 50 victims in his car.  DENHAM remains in custody.

SHAWLEE GEIGER, 41, of Seattle, is scheduled for trial in June 2018 on an eight-count indictment charging her with multiple counts of bank fraud and aggravated identity theft.  GEIGER allegedly used stolen checks to inflate the balances of bank accounts she controlled and then quickly withdrew cash before the bank was notified that the checks were invalid.

DENNIE DENG, 27, of Auburn, Washington is scheduled for trial in March 2018 on a four-count indictment charging him with bank fraud and aggravated identity theft.  DENG allegedly used stolen checks to inflate the balance of his bank account and then withdrew cash.  In some instances he altered the stolen checks to further increase the amount of money fraudulently  deposited in his account.

TRAVIS SICKLOVAN, 34, pleaded guilty in October to bank fraud, aggravated identity theft and possession of stolen mail.  SICKLOVAN was arrested in November 2016, in a Snohomish County hotel with stolen mail from more than 60 victims.  SICKLOVAN used the stolen mail to make and cash fraudulent checks and to obtain fraudulent credit cards.

            Defendants convicted of aggravated identity theft face a mandatory minimum two years in prison in addition to any other sentence imposed based on other convictions. 

          The charges contained in a criminal complaint or 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 Seattle Division of the U.S. Postal Inspection Service employs a multi-faceted approach to address mail theft in western Washington.  Using prevention and investigative efforts to combat mail theft, postal inspectors work with local, state and federal agencies across the area.  Targeted enforcement data is used to identify, arrest and prosecute the mail thieves who are having the biggest impact on the community.  The inspection service also seeks out ways to improve the security of postal facilities and mailboxes leading the effort to secure US Mail to prevent access to would-be thieves.  Lastly, the Postal Inspection Service educates the public on ways to mitigate their risk of mail theft and to report it in a timely manner when it does happen.    

            These cases are being prosecuted by Assistant United States Attorneys Andre Penalver, Stephen Hobbs and Seungjae Lee.

Former Washington State Auditor TROY X. KELLEY was convicted today in U.S. District Court in Tacoma of possession of stolen property, making false declarations in a court proceeding, and tax fraud announced U.S. Attorney Annette L. Hayes.  The jury deliberated for two days following a five-week trial.  The charges stem from a business KELLEY operated before being elected to statewide office.  KELLEY is scheduled for sentencing on March 30, 2018.

            “Troy Kelley stole money from thousands of homeowners, then tried to hide it by passing it through a variety of accounts – ultimately he committed tax fraud to try to hide the theft and keep as much of the ill-gotten gain as he could,” said U.S. Annette L. Hayes. “I commend the investigators and the trial team that worked diligently to present a complex case, and the jury who carefully reviewed all the evidence before returning this verdict.”

            According to testimony at trial, between 2003 and 2008, KELLEY operated a business that was paid by real estate title companies to track documents related to real estate sales and refinancing.  KELLEY had agreements with those companies that he would charge a flat $15 or $20 for each of the title documents his employees tracked on county websites. While the title companies withheld $100-$150 on each loan to pay the fee and any other potential costs, unneeded money was to be returned to the borrower.  But beginning in 2005, in virtually every case, KELLEY kept the entire amount withheld on each loan resulting in nearly $3 million in stolen money. When the fees became the subject of class action litigation in 2008, KELLEY moved the stolen money through various bank accounts to hide it.  One of the title companies sued KELLEY for the fees and he settled the case by paying more than $1 million.  KELLEY was convicted of possession of stolen property, two counts of making false declarations, and six counts of tax fraud.  The jury found him not guilty on five counts of money laundering.

            In closing arguments, prosecutors said TROY KELLEY “had found the perfect crime,”… because no one was watching what was happening to the money that should have been refunded to homeowners.  Prosecutors said, “Kelley engaged in ten years of lies to steal millions of dollars and to hide the money he had stolen.”

            This is the second trial on these charges.  The first trial in March 2016 ended with the jury able to reach a verdict on only one count, acquitting KELLEY on lying to the Internal Revenue Service agent who questioned him about his scheme in 2013.

            Possession and concealment of stolen property is punishable by up to ten years in prison.  False declarations and false statements are punishable by up to 5 years in prison.  The remaining charges are punishable by up to three years in prison.

            The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI.

            The case is being prosecuted by Assistant United States Attorneys Arlen Storm, Andrew Friedman, Seth Wilkinson and Katheryn Frierson.  Appellate attorney Michael Morgan provided significant assistance.

          A former financial analyst at Amazon.com, Inc., was sentenced today in U.S. District Court in Seattle to 6 months in prison, a $2500 fine and two years of supervised release for securities fraud involving insider trading, announced U.S. Attorney Annette L. Hayes.  BRETT D. KENNEDY, 27, currently of Blaine, Washington, pleaded guilty in September 2017, admitting that in April 2015, he provided non-public quarterly financial results to a friend who then purchased Amazon stock and sold it at a profit once the results were made public.  The friend paid KENNEDY for this inside information.  KENNEDY is no longer employed by Amazon.  At sentencing Chief U.S. District Judge Ricardo Martinez said, “This is a serious offense.  If the public cannot have confidence in the financial markets it impacts the entire country.”

          “Those who trade on inside information fundamentally undermine the trust that is necessary for our financial markets to operate,” said U.S. Attorney Annette L. Hayes.  “Those responsible – like the defendant in this case – will be held accountable.  I commend the Federal Bureau of Investigation and the Securities and Exchange Commission for their work to ensure that those responsible for this type of financial crime are held to account.”

          According to the information filed in the case, KENNEDY began work as a financial analyst at Amazon in 2013.  As part of his employment he signed a confidentiality statement that he would not disclose Amazon’s non-public financial information outside the company.  The policy specifically mentions information such as earnings and losses as material confidential information.  In April 2015, KENNEDY used his access to view and write down Amazon first quarter earnings that were going to be announced later in the month.  KENNEDY provided this information to his friend.  After viewing the information, the friend purchased 4400 shares of Amazon stock for $1.7 million.  When the positive earnings news was announced publicly, and the stock price rose, the friend sold the shares for a gain of nearly $116,000.  The friend paid KENNEDY $10,000 in cash for the information. 

          Speaking to the court, Kennedy apologized to his family and to Amazon saying, “I threw my success away in an instant . . . I wish every day I could go back and not be so stupid and reckless.”

          The Securities and Exchange Commission filed civil charges against KENNEDY.  In its complaint it identifies the friend as Maziar Rezakhani, and names him as a defendant.  Rezakhani, 28, is currently serving a five year prison term for defrauding a bank, Apple, Inc., and various shipping and insurance companies.  The insider trading investigation grew out of the investigation into Rezakhani’s frauds.  The SEC is seeking disgorgement of all profits from Rezakhani’s alleged illegal trading.  KENNEDY agreed to a settlement with the SEC.  Details of the SEC action are available here.

          The case was investigated by the FBI.  The case was prosecuted by Assistant United States Attorney Brian Werner.

          An enrolled member of the Quinault Indian Nation was sentenced last week to 12 years in prison and 20 years of supervised release for rape of a child, announced U.S. Attorney Annette L. Hayes.  DEVELIN L. HOWTOPAT, 33, pleaded guilty in December 2016, admitting that he sexually molested a young child in Taholah, Washington.  The abuse occurred in 2008 when the child was 7 or 8-years-old.  The molestation was reported to the Hoquiam Police Department in 2015 and was investigated by Hoquiam Police, the Quinault Nation Police Department and the FBI.  HOWTOPAT was arrested in April 2016, and has remained in custody since that time.  On December 1, 2017, U.S. District Judge Ronald B. Leighton sentenced HOWTOPAT to the 12-year prison term calling the crime “despicable.” 

            In a second, unrelated sex assault case, an enrolled member of the Spirit Lake Tribe of North Dakota, was sentenced to five years in prison and five years of supervised release, for the sexual assault of a 19-year-old woman.  AARON JOSEPH MITZEL, 37, has been in federal custody since his arrest on October 9, 2015.  The assault occurred on October 4, 2015, in an apartment on the Puyallup Indian Reservation where the victim was sleeping.  The victim awoke to MITZEL sexually assaulting her and he then bit her ear and smothered her with a pillow.  At today’s sentencing hearing, U.S. District Judge Ronald B. Leighton said, “this is a very horrendous, serious offense.” 

            The MITZEL assault was investigated by the Puyallup Tribal Police Department and the FBI.   

            Both cases were prosecuted by J. Tate London and Rebecca Cohen who serve as Tribal Liaisons for the U.S. Attorney’s Office, prosecuting criminal cases in Indian Country.

          Kathleen O’Toole has been a true partner in progress on police reform and a leader in advancing innovative approaches to public safety in Seattle, and by her example, around the country.  I am grateful for her professionalism, wisdom, and friendship.

          Under her leadership, the Seattle Police Department transformed how it served the City of Seattle by implementing new policies, training and accountability around uses of force, crisis intervention, and biased policing.  Chief O’Toole guided the department during this transformational period, set clear expectations and high standards for every officer, and built strong relationships with the many communities and neighborhoods that the Department serves.  She also demonstrated clearly that civil rights reform goes hand-in-hand with increased public and officer safety.

          The hallmark of reform is that it must be bigger than any one person or leader.  As we made clear in our most recent filing with the Court, under Chief O’Toole’s leadership, we believe that SPD has come into compliance with the first phase of the consent decree and has the systems and structures in place to continue its reform efforts.  I look forward to working with Interim Chief Carmen Best to continue pushing reform forward and keeping the people of Seattle safe.   

          U.S. Attorney Annette L. Hayes announced today the expansion of the Project Safe Neighborhood program in the Puget Sound region, with additional focus on crime gun intelligence in South King and Pierce Counties.  The U.S. Department of Justice awarded $500,000 to the program which will enhance intelligence sharing between law enforcement agencies so that guns used in crimes can be linked, helping law enforcement build cases for prosecution.

            “Forensic tools from ATF, and intelligence sharing between law enforcement agencies have been key to identifying felons with guns who need to be off the street,” said U.S. Attorney Annette L. Hayes.  “In three of the cases we are highlighting today, the guns recovered have been tied to multiple shootings – in one case as many as 9 shots fired incidents in a short period of time.  Combating gun violence is a top priority of the Justice Department and my office.”

            The Project Safe Neighborhood grant provides funding for a Special Assistant United States Attorney to review every firearms case in King County to see if it is appropriate for federal prosecution.  Grant money in 2017-2018 will provide for additional personnel to leverage the Gun Crime Intelligence Center to make connections between shooting incidents in south King and Pierce Counties.  This information helps law enforcement identify, arrest and prosecute high-impact offenders.

            “ATF is proud to partner with local law enforcement and the U.S. Attorney’s Office to bring the most advanced forensic science to the battle against gun crime,” said Darek Pleasants, Special Agent in Charge, ATF Seattle.  “The National Integrated Ballistic Information Network (NIBIN) is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.  Since the program’s inception in 1999 through 2016, NIBIN partners have captured approximately 2.8 million images of ballistic evidence and confirmed more than 74,000 NIBIN hits.”

            Unveiled in May 2001, Project Safe Neighborhoods (PSN) is a comprehensive and strategic approach to gun law enforcement.  PSN is a nationwide commitment to reduce gun crime in America by networking both new and existing local programs that target gun crime and then providing them with the resources and tools they need to succeed.  Implementation at the local level has fostered close partnerships between federal, state and local prosecutors and law enforcement.

          A former Seattle Police Officer pleaded guilty today for his role in a drug ring smuggling hundreds of pounds of marijuana from the Seattle area to Baltimore, Maryland, announced U.S. Attorney Annette L. Hayes.  ALEX CHAPACKDEE, 44, of Seattle, was a 16-year veteran of SPD, who resigned shortly after his arrest in May 2017.  CHAPACKDEE pleaded guilty to conspiracy to distribute marijuana and conspiracy to commit money laundering.  Under the terms of the plea agreement, both sides will recommend the mandatory minimum five-year sentence when CHAPACKDEE is sentenced on March 1, 2018.  U.S. District Judge Thomas S. Zilly is not bound by the recommendation and can impose any sentence up to the statutory maximum of 40 years in prison.

          In his plea agreement CHAPACKDEE admits he conspired with his brother-in-law, alleged ringleader Tuan Van Le, 42, of Maple Valley, Washington; 32-year-old Phi Nguyen; and 38-year-old Samath Khanhphongphane, to distribute hundreds of pounds of marijuana and transport and launder the proceeds from the drug sales.  CHAPACKDEE has remained in custody since his arrest in May 2017.

          An investigation by the Drug Enforcement Administration (DEA), the Seattle Police Department, Homeland Security Investigations and the FBI’s Public Corruption Squad revealed that on multiple occasions between June 2013, and April 2017, Le made 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 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.  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, apparently distributing drugs and the cash proceeds.  Bank records indicate CHAPACKDEE deposited cash in his account in amounts just under $10,000 thereby avoiding reports to law enforcement.  In his plea agreement CHAPACKDEE admits that he used his status as a police officer to cover and protect the conspiracy. 

          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 Attorney Vince Lombardi.

          A Port Angeles, Washington man was sentenced today in U.S. District Court in Tacoma to 97 months in prison and ten years of supervised release for aggravated sexual assault of a minor, announced U.S. Attorney Annette L. Hayes.  CHARLES JASON BUTCHER, 46, admitted the assault in a recorded phone call with his victim in 2016.  The assault on the young child occurred in 2001.  At sentencing U.S. District Judge Ronald B. Leighton said, “The nature of this offense is extremely odious.”

            “For fifteen years the defendant denied sexually abusing the two young victims in this case, compounding a horrific betrayal,” said U.S. Attorney Annette L. Hayes.  “I commend the courage of the victims and the commitment of the Park Service investigator who took what was considered a “cold case” and developed the evidence necessary to convict.”

            According to records filed in the case, two young children, ages 7 and 4, were visiting a resort operated by BUTCHER and his family near Lake Crescent on Olympic National Park land.  Following the visit, the children’s mother suspected sexually abusive contact and medical exams showed signs of sexual molestation.  BUTCHER was interviewed and denied any sexual abuse.  In late 2015, the victim and the victim’s mother reached out to law enforcement, and a National Park Service Special Agent was assigned the case as part of a cold case review.  The victims agreed to additional forensic interviews.  Ultimately, one of the victims agreed to place a recorded phone call to BUTCHER in which he admitted the abuse.  BUTCHER later admitted the molestation of one of the victims to law enforcement.

            The case was investigated by the National Park Service and the FBI.  The case is being prosecuted federally because the assault occurred on National Park land.  The case is being prosecuted by Assistant United States Attorney Grady Leupold.

          A 49-year-old Edmonds, Washington man who defrauded the U.S. Naval Sea Cadet Corps (NSCC) of more than $50,000 was convicted today in U.S. District Court in Seattle following a four-day jury trial, announced U.S. Attorney Annette L. Hayes.  MICHAEL NOEL LEIGHTON was convicted of four counts of wire fraud and one count of embezzlement.  The jury deliberated about two hours before returning the verdicts.  U.S. District Judge Thomas S. Zilly scheduled sentencing for February 22, 2018.

            According to records filed in the case, 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 is being prosecuted by Assistant United States Attorneys Seungjae Lee and Stephen Hobbs.

          A registered sex offender with two prior convictions for child molestation was sentenced today in U.S. District Court in Seattle to ten years in prison and ten years of supervised release, announced U.S. Attorney Annette L. Hayes.  DOUGLAS BLOUIN, 51, of Sedro Woolley, Washington came to the attention of law enforcement in 2016, when an agent with Homeland Security Investigations (HSI) used law-enforcement software to investigate individuals sharing child pornography over peer-to-peer file sharing networks.  At the sentencing hearing, U.S. District Judge Thomas S. Zilly said BLOUIN has “gone to great lengths to view child pornography.”

            According to records filed in the case, the HSI agent was working with the Seattle Internet Crimes Against Children Task Force (ICAC) when he downloaded multiple images and videos of child pornography being shared by a computer at an internet protocol address later traced to BLOUIN.  A records check revealed that BLOUIN was a registered sex offender with convictions for two counts of child molestation in 1998 in Skamania County, Washington.

            Law enforcement served a search warrant on BLOUIN’s home and seized a number of devices.  BLOUIN told law enforcement that he used peer-to-peer software to download child pornography.  BLOUIN also admitted that he used a specific ‘scrubbing’ software to remove evidence of the child pornography from his electronic devices.  A forensic review of the devices found evidence of the scrubbing software, the file-sharing software, file names consistent with child pornography, and one image of child pornography.

            BLOUIN pleaded guilty to possession of child pornography on August 8, 2017.

          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 is being prosecuted by Assistant United States Attorney Matthew Hampton.

          The U.S. Department of Justice today filed a lawsuit in U.S. District Court for the Western District of Washington, alleging that Northwest Trustee Services, Inc. (“Northwest”) violated the Servicemembers Civil Relief Act (“SCRA”).  The complaint alleges that since 2010, Northwest completed foreclosures on at least 28 homes owned by servicemembers without obtaining the required court orders. 

          The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations.  The law prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of active military service.

            The Department of Justice launched an investigation into Northwest’s practices after United States Marine veteran Jacob McGreevey of Vancouver, Washington submitted a complaint to the department’s Servicemembers and Veterans Initiative in May 2016.  Northwest had foreclosed on McGreevey’s home in August 2010, less than two months after he was released from active duty in Operation Iraqi Freedom.  McGreevey sued both PHH Mortgage (his mortgage servicer) and Northwest in 2016, but a U.S. District Court Judge accepted PHH and Northwest’s argument that McGreevy had waited too long to file his case, and dismissed the case on that basis.  The department’s investigation revealed that, in addition to McGreevey, NWTS had foreclosed on other homes of SCRA-protected servicemembers in violation of the SCRA since 2010.

            “The loss of a home is a devastating blow for anyone – but far worse for active duty service members often called to war zones far from Western Washington,” said U.S. Attorney Annette L. Hayes. “Our investigation revealed that Northwest Trustee Services repeatedly failed to comply with laws that are meant to ensure our servicemembers do not have to fight a two front war – one on behalf of all of us, and the other against illegal foreclosures.  My office will continue to work closely with our colleagues in the Civil Rights Division in Washington, D.C. to protect Western Washington service members from this kind of misconduct.”

          “As we reflect this Veterans Day on the great debt we owe to those who have fought so hard for our freedom, we also reaffirm our commitment to protecting the rights of those who serve,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division.  “Our men and women in uniform make immense personal sacrifices to keep our country safe.  Losing their home to an unlawful foreclosure should not be one of them.”

            In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,788 for the first offense and $121,577 for each subsequent offense.  The department will also seek injunctive relief to prevent future foreclosures that violate the SCRA.

          Northwest Trustee Services is based in Bellevue, Washington and describes itself as a full-service trustee company providing foreclosure services to mortgage lenders in the Western United States.  The complaint is an allegation of unlawful conduct.  The allegations must still be proven in federal court.

          This case is being jointly handled by Assistant Attorney J. Michael Diaz of the United States Attorney’s Office for the Western District of Washington and Trial Attorney Alan Martinson of the Civil Rights Division for the U.S. Department of Justice.

          The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with local United States Attorney’s Offices.  Since 2011, the department has obtained over $450 million in monetary relief for servicemembers through its enforcement of the SCRA.  The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments.  For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.

          Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office.  Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.

           The leader of a dangerous drug distribution ring, who continued to run his drug operation after fleeing to Mexico, pleaded guilty today in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes.  As early as 2010, JESUS ENRIQUE PALOMERA, 38, conspired with others to distribute methamphetamine in the Tacoma area.  PALOMERA not only sold drugs, he sold guns as well – arranging the sale of  nine guns in one day to an undercover law enforcement agent.  PALOMERA faces a mandatory minimum 10 years in prison and up to life in prison when he is sentenced by U.S. District Judge Robert J. Bryan on February 9, 2018.

            According to records filed in the case, following the gun sales in November 2011, PALOMERA fled to Mexico after some of his coconspirators were arrested.  PALOMERA continued to run his drug operation from across the border, sometimes communicating with customers in Pierce County via Facebook.  PALOMERA continued to be involved in drug distribution in 2014 and 2015.  In the plea agreement, PALOMERA admits that more than 50 kilos of methamphetamine were transported at his direction from Mexico and up through California and Oregon to Washington.  Highlighting the danger of the meth ring, one of the co-conspirators is missing and presumed dead after a load was seized by law enforcement.

            PALOMERA was taken into custody in Mexico in June 2015 and was extradited to the United States in July 2016.

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

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

WASHINGTON – A 51 year-old Seattle-area man was convicted of 17 federal felonies today in the U.S. District Court in Seattle for his scheme to recruit young women and girls and force them to engage in prostitution, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Annette L. Hayes of the Western District of Washington, and Special Agent in Charge Jay S. Tabb, Jr. of the FBI’s Seattle Field Office. 

David D. Delay was convicted following a ten-day jury trial.  The jury deliberated approximately 90 minutes before returning guilty verdicts on the following counts: conspiracy to engage in sex trafficking through force, fraud, and coercion; three counts of sex trafficking adults through force, fraud, and coercion; two counts of attempted sex trafficking of a juvenile through force, fraud, and coercion; one count of attempted sex trafficking through force, fraud, and coercion; conspiracy to transport females for prostitution and six counts of transporting individual victims for prostitution; two counts of production of child pornography; and one count of obstruction of and interference with a sex trafficking investigation. 

According to evidence presented in court, including the testimony of  seven victims, the defendant targeted vulnerable teenagers and young women in their early 20s on the internet, enticing them to travel to Seattle with false promises of fame and fortune and a starring role in a purported HBO documentary that he claimed to be producing and filming.  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.  An HBO representative testified that the company did not have any business dealings with Delay.

Once the victims arrived in Seattle, the defendant coerced them to engage in prostitution for his profit.  He manipulated them emotionally and psychologically, isolated them, established their complete dependency on him, and in some instances threatened legal action, falsely claiming that the victims had violated the terms of their contracts and were subject to civil lawsuits.  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 one instance threatened to release sexually explicit video images of a victim unless she complied with his demands. 

“This defendant preyed on vulnerable teenagers and young women, exploiting them for his own profit and sexual gratification, with no regard for their humanity,” said Acting Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Department of Justice will vigorously pursue sex traffickers and hold them accountable for their horrific crimes.”

“I commend the victims who courageously took the witness stand and described some of the darkest moments in their lives,” said U.S. Attorney Annette L. Hayes of the Western District of Washington.  “It was their testimony coupled with the other evidence in this case that demonstrated for all to see that the defendant’s outrageous actions were nothing less than criminal.” 

Defendant Delay’s sentencing has been scheduled for Feb. 2, 2018 at 9:00 a.m.  He faces a maximum sentence of life imprisonment. 

Co-defendant Marysa Comer, 22, of Matthews, North Carolina, previously pleaded guilty on Nov. 16, 2015, to one count of sex trafficking conspiracy for her role in defendant Delay’s scheme.  She faces up to life in prison at her sentencing, which is scheduled for Dec. 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 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 51 year-old Seattle-area man was convicted today in U.S. District Court in Seattle of 17 federal felonies for his scheme to recruit young women and girls, and force them to engage in prostitution, announced U.S. Attorney Annette L. Hayes, Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, and Special Agent in Charge Jay S. Tabb, Jr. of the FBI’s Seattle Field Office. 

          DAVID D. DELAY was convicted following a ten-day jury trial.  The jury deliberated approximately 90 minutes before returning guilty verdicts on the following counts: conspiracy to engage in sex trafficking through force, fraud, and coercion; three counts of sex trafficking adults through force, fraud, and coercion; two counts of attempted sex trafficking of a juvenile through force, fraud, and coercion; one count of attempted sex trafficking through force, fraud, and coercion; conspiracy to transport females for prostitution and six counts of transporting individual victims for prostitution; two counts of production of child pornography; and one count of obstruction of and interference with a sex trafficking investigation. 

          According to evidence presented in court, including the testimony of  seven victims, the defendant targeted vulnerable teenagers and young women in their early 20s on the internet, enticing them to travel to Seattle with false promises of fame and fortune, and a starring role in a purported HBO documentary that he claimed to be producing and filming.  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.  An HBO representative testified that the company did not have any business dealings with DELAY.

          Once the victims arrived in Seattle, the defendant coerced them to engage in prostitution for his profit.  He manipulated them emotionally and psychologically, isolated them, established their complete dependency on him, and in some instances threatened legal action, falsely claiming that the victims had violated the terms of their contracts and were subject to civil lawsuits.  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 one instance threatened to release sexually explicit video images of a victim unless she complied with his demands. 

          “I commend the victims who courageously took the witness stand and described some of the darkest moments in their lives,” said U.S. Attorney Annette L. Hayes.  “It was their testimony coupled with the other evidence in this case that demonstrated for all to see that the defendant’s outrageous actions were nothing less than criminal.” 

          “This defendant preyed on vulnerable teenagers and young women, exploiting them for his own profit and sexual gratification, with no regard for their humanity,” said Acting Assistant Attorney General John Gore. “The Department of Justice will vigorously pursue sex traffickers and hold them accountable for their horrific crimes.”

          Defendant DELAY’s sentencing has been scheduled for February 2, 2018, at 9:00 a.m.  He faces a maximum sentence of life imprisonment. 

          Co-defendant Marysa Comer, 22, of Matthew, North Carolina, previously pleaded guilty on November 16, 2015, to one count of sex trafficking conspiracy for her role in defendant DELAY’s scheme.  She faces up to life in prison at her sentencing, which is scheduled for 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 Seattle man sentenced for mail fraud and wire fraud in 2009, changed his name and committed a new round of frauds resulting today in a 61 month federal prison sentence, three years of supervised release and restitution in the amount of $349,164, announced U.S. Attorney Annette L. Hayes.  EDWARD BUI, 48, aka Micah Buitron pleaded guilty in August 2017 to mail fraud, wire fraud, and aggravated identity theft.  BUI defrauded shipping and internet payment companies of $349,164.  U.S. District Judge Richard A. Jones noted at the sentencing hearing that he had previously sentenced BUI to two years in prison for his 2009 conviction.  At today’s hearing Judge Jones said that Bui “shows complete disregard of the Court, the law and the criminal justice system . . . and callous disregard of damage to businesses and individuals.  (He) essentially had the mantra ‘catch me if you can.’”

            According to records filed in the case, less than a year after his release from federal custody, BUI began putting pieces of his most recent fraud together.  He created a company, Operture, Inc., that was at the center of his mail and wire fraud schemes.  BUI created multiple accounts with UPS and online payment processing companies using false names, email addresses, physical addresses and bank accounts.  He mailed multiple packages using his UPS accounts to addresses in Nevada and then filed more than 260 claims alleging damage to the packages.  He was able to defraud UPS of $31,200. 

            BUI defrauded online payment processing companies by posing as both the buyer and seller of goods and then claiming refunds.  When the payment processor tried to get the ‘refunded’ money back from the supposed seller, the account had been drained leaving the payment processor with a loss.  BUI engaged in what is essentially a check kiting scheme using online payment processers.  With this scheme he defrauded Google Wallet, Stripe and buy.com of nearly $318,000.

            BUI used the identity of a person he knew to conduct some of the fraud.  For that conduct, he pled guilty to aggravated identity theft which carries a two year sentence that runs consecutive to any other sentence imposed for the other charges.

            BUI used the proceeds of his scheme to invest in real estate in Las Vegas.  Some of his investments took advantage of a loophole in Nevada law which allowed him to purchase properties for the outstanding homeowners association payments.  In this way BUI was able to buy and flip properties as the real estate market recovered, and ultimately purchased a property worth more than $1 million.  The property will be forfeited to the government and its sale will be used to pay off BUI’s victims from this fraud case as well as the fraud case from 2009.

            In the 2009 case, BUI fraudulently used the credit card and personal information of more than 60 people and defrauded some 68 businesses.  BUI used some 20 aliases to purchase everything from remodeling supplies to expensive home furnishings.  BUI used some of the materials to remodel the four properties he owned.  Some of the items he resold through his businesses or on other web sites.  In all, the fraud or attempted fraud totaled $350,000.  BUI also double and triple billed some of his customers for items they purchased from his web site, filed false damage claims with shippers and false claims with his own credit card company.

          The case was investigated by the U.S. Secret Service and the Seattle Police Department.

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

          A Lake Stevens, Washington man who used fake credentials in the names of fictional characters or famous fraudsters to commit crimes was charged with seven federal felonies today, announced U.S. Attorney Annette L. Hayes.  STEVEN W. FISHER, 43, was transferred from the King County Jail to federal custody and will appear today at 2:00 p.m. in U. S. District Court in Seattle, charged with one count of robbery, five counts of impersonation of a federal officer, and one count of attempted robbery.  Law enforcement is still investigating this string of crimes and is asking anyone who may have been victimized to contact Seattle Police at 206 684-5540.

            According to the criminal complaint, on January 25, 2017, FISHER gained access to the secure area of a small money transmitting business in Seattle’s Central District by claiming he was an FBI agent investigating a suspicious transaction.  FISHER flashed a badge, and handed the owner a ‘search warrant’ signed by ‘Frank Abagnale’ -- a famous serial fraudster portrayed in the movie “Catch me if you can.”  The warrant was purchased off of the website Legalfakes.com.  FISHER then pulled a gun on the owner and demanded he open the safe.  FISHER left with a large amount of cash and took the computer equipment which contained any surveillance photographs from the security system.

            FISHER was identified as the suspect following a series of incidents in July and August, 2017 at a different money transmitting business in the Rainer Valley.  In that incident, FISHER used the name “Jack Ryan,” a character in Tom Clancy novels.  FISHER asked the manager of the money transmitting business to meet him at a nearby parking lot to discuss information that someone was planning on robbing his business.  FISHER tried to get the manager to describe the surveillance cameras at the business and suggested he remove cash from the business.  The manager instead called 9-1-1 and reported the suspicious conduct to police.  One month later, when FISHER showed up at the money transmitting business, again claiming to be an FBI Agent, the manager hit the panic alarm and Seattle Police officers arrived to question FISHER.  FISHER was taken into custody and court authorized searches of his car, storage locker, and briefcase turned up fake federal credentials, a realistic appearing airsoft pistol with silencer, and paperwork tying him to the earlier robbery.

            Other possible crimes tied to this suspect remain under investigation, including the burglary of a SeaTac small business which offers money transmitting services.  In June 2017, a man later identified as FISHER visited the business and identified himself as an FBI agent.  The ‘agent’ claimed he was looking for surveillance footage because of a crime in the area.  Because the store owner was suspicious about whether FISHER was actually an FBI agent, he simply said the surveillance cameras were not working.  In the early morning hours following that encounter the store was burglarized and cash, checks and phones were stolen.

            Law enforcement is seeking to identify any other business that may have been targeted by FISHER posing as an FBI agent.  Anyone with suspicious encounters is asked to contact 206 684-5540.

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

            The case is being investigated by the FBI and the Seattle Police Department. 

            The case is being prosecuted by Assistant United States Attorney Rebecca Cohen.

          The U.S. Department of Justice has awarded four grants totaling more than $3.7 million to Washington State entities to enhance forensic science and criminal records systems, announced U.S. Attorney Annette L. Hayes.  The grant awards advance scientific research and improve criminal justice record keeping.

            “In a very competitive environment, local researchers and law enforcement submitted grant proposals that earned substantial backing from the Justice Department,” said U.S. Attorney Annette L. Hayes.  “These federal funds will improve the ways we use DNA, and will enhance critical records used to bring criminals to justice.”

            University of Washington researchers were awarded two grants.  The largest grant, for $902,440 will continue work focused on producing statistical procedures for providing the quantitative strength of DNA evidence.  The researchers are working with population genetic theory to calculate match probability and genetic markers.  The second grant, $509,728 advances work on damaged or mixed DNA samples.  This second grant involves work with the Washington State Patrol Crime Lab.

            The Washington State Patrol (WSP) also received more than $2 million in grants.  The largest, $1,559,282, will allow for the testing of previously unsubmitted sexual assault kits.  State law enforcement currently has a backlog of more than 6,000 previously unsubmitted test kits.  The second grant to the Washington State Patrol funds improvements to record keeping in the National Criminal History database.  WSP will use the $741,964 in federal funds to improve the state records submitted to the national database in a number of ways: researching missing records; finding incomplete records; improving the way records are input into the national system; and deploying technology to various jurisdictions to improve the entering of records.

            Some of these grants continue work undertaken by researchers and law enforcement in prior funding periods.

            Specific information about the work being funded can be obtained from Susan Gregg at the University of Washington sghanson@uw.edu and from Bob Maki at WSP 360-593-4045.

          A Port Angeles, Washington naturopath, who lost his license for illegally distributing a human hormone (HCG) in 2013, was sentenced to prison today for his second felony conviction for similar conduct related to misbranded prescription drugs, announced U.S. Attorney Annette L. Hayes.  RICHARD MARSCHALL, 65, operates the Natural Healing Clinic in Port Angeles, and despite having his license to practice naturopathy and his DEA registration number suspended, continued to provide hormones to patients for weight loss – including patients he never examined but only met via the phone or internet.  U.S. District Judge Ronald B. Leighton sentenced MARSCHALL to two months in prison and a $2,000 fine saying, “Dr. Marschall tempted fate after a prior conviction.  This is a serious offense.”

            “This defendant flouted the laws that are designed to keep patients safe,” said U.S. Attorney Annette L. Hayes.  “Even after he was convicted for acting illegally, Richard Marschall continued to provide hormones to patients without any basis in medical science.  This prison sentence is necessary to send the message that this conduct must end.”

            According to federal court records, MARSCHALL was convicted and sentenced to two years of probation in 2011 for introducing misbranded drugs into commerce.  Following that conviction, the Washington State Department of Health (DOH) suspended MARSCHALL’s naturopathy license in November 2013.  Despite that suspension, DOH learned MARSCHALL continued to practice and ordered a further 18 month suspension.  MARSCHALL has not had a valid license to practice naturopathy since November 2013.  Nevertheless, MARSCHALL continued to treat patients and illegally provided them with a type of human hormone that is sometimes prescribed for infertility.  MARSCHALL was providing it and promoting HCG as a weight loss drug.

            In September 2016, two DOH investigators went undercover as patients and listened as MARSCHALL touted HCG for weight-loss and described how he would set up a program of injections for them.  Later that fall, MARSCHALL communicated via email with an undercover FDA, Office of Criminal Investigations (OCI) investigator and conducted a one-hour telephone screening before sending her HCG through the mail.  MARSCHALL never met or examined the ‘patient’ before mailing the drugs to her at a Portland, Oregon address.  MARSCHALL obtained the HCG from pharmacies by lying about the status of his license and his DEA registration number.

            As part of his sentence MARSCHALL will be on one year of supervised release.  U. S. Probation will work with Washington State Department of Health regarding the status of MARSCHALL’s currently suspended naturopath license.

            The case was investigated by the Washington State Department of Health and the Food and Drug Administration Office of Criminal Investigation.

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

          A south sound resident with four drug stash houses in Tacoma, Auburn and Federal Way, Washington was sentenced today in U.S. District Court in Tacoma to eleven years in prison and five years of supervised release, announced U.S. Attorney Annette L. Hayes.  GEORGE EDWARD HERNANDEZ, JR, 33, was charged federally in November 2015, following court authorized searches of HERNANDEZ’ residences and vehicles.  U.S. District Judge Robert J. Bryan imposed the sentence. 

                “We have seen time and again the destruction that drugs and guns bring to our communities, said U.S. Attorney Annette L. Hayes.  “As dealers use lethal force to protect their illegal businesses, they destroy the sense of safety in our neighborhoods.  We will continue to work with our law enforcement partners to investigate and prosecute these types of cases to ensure violent criminals like this one are taken off our streets for as long as possible.”   

            On January 10, 2017, HERNANDEZ pleaded guilty to possession of controlled substances with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. 

            HERNANDEZ came to the attention of law enforcement in 2015, shortly before a person working with law enforcement set up a deal with one of HERNANDEZ’ drug couriers.  Law enforcement was able to trace the various houses where HERNANDEZ kept his drugs, and in August 2015, executed search warrants.  At his Tacoma residence they found more than a kilo of methamphetamine, a kilo of heroin and some cocaine, as well as a Glock.40 caliber semi-automatic pistol.  At one Auburn house, they found four kilos of heroin, three kilos of cocaine, three kilos of methamphetamine and an AK-47.  At the other Auburn home, they found two rifles and in HERNANDEZ’s car parked outside they found a loaded semi-automatic pistol.  Finally, at a Federal Way residence, they found two semi-automatic pistols.  In his plea agreement, HERNANDEZ admits he had the weapons to protect his drug dealing.  The searches also turned up $53,332 in cash from the drug dealing. 

            HERNANDEZ has 18 prior convictions and is prohibited from possessing firearms.   

            The case was investigated by the Drug Enforcement Administration and the Tacoma Police Department.  The case was prosecuted by Assistant United States Attorneys Michael Dion and Siddharth Velamoor.

          The U.S. Department of Justice will provide more than $6.2 million in federal funds to a dozen western Washington entities working to combat domestic violence, sexual assault and stalking, announced U.S. Attorney Annette L. Hayes.  The grants also fund services to victims, and programs to prevent violence and abuse.

            “I’m pleased that these grant monies support programs that assist victims of domestic and sexual violence, and prevent such violence in the future,” said U.S. Attorney Annette L. Hayes.  “These grants are aimed at assisting a wide range of western Washington residents from tribal members, to immigrants, to members of our LGBTQ community.  I commend the groups whose proposals rose to the top and received funding.”

            Five local non-profit organizations received grants:

• Washington State Coalition Against Domestic Violence, Seattle – A $750,000 grant to provide advocacy services to 500 rural Latina victims of sexual assault and legal services to an additional 120 victims.
• Turning Point Domestic Violence Services, Shelton, WA – A $356,717 grant to provide services in rural Mason County, including training for first responders, establishment of sexual assault protocols, establish 24/7 domestic violence response system and appropriate materials to advocate for Latina victims.
• King County Sexual Assault Resource Center (KSARC) Seattle – A $776,336 grant to provide competent sexual assault advocacy and civil legal representation to Latina victims of sexual assault.
• Young Women’s Christian Association YWCA, Seattle – A $608,603 grant to conduct outreach to underserved communities and provide legal services to victims of sexual assault thought a variety of means, including translating materials into Spanish, Somali and Korean.
• NW Network of Bisexual, Trans, Lesbian & Gay Survivors, Seattle – A $350,000 grant to work with other partners to provide intervention and therapy services to youth survivors of sexual assault, domestic violence, stalking and sex trafficking.

Both King County and Pierce County received grant funding, as did Clark College in Vancouver, WA.

• Pierce County received $900,000 to work with local non-profits to provide services to victims of domestic violence especially in immigrant communities.
• King County Prosecuting Attorney’s Office received $406,079 to work with domestic violence victims to understand why victims recant their statements to law enforcement, jeopardizing prosecution.
• Clark College, Vancouver, WA – A $300,000 grant to train law enforcement and provide services to victims of sexual assault.

Three Western Washington Tribes and one coalition received grants focused on services to victims of domestic abuse and sexual violence:

• Tulalip Tribes of Washington, Tulalip, WA -$528,015 for a civil legal aid program for victims of domestic violence and sexual assault.
• Lower Elwha Klallam Tribe, Port Angeles, WA -$498,865 to provide housing and services to victims of sexual assault and domestic abuse.
• Swinomish Indian Tribal Community, La Conner, WA - $495,000 to strengthen the Tribal justice system and provide services to victims.
• Washington State Native American Coalition Against Domestic Violence and Sexual Assault, Sequim, WA - $318,008 to raise awareness and provide services to Native American victims of sexual assault, domestic abuse and sex trafficking.

More information about the grants are available from the recipients. 

          Three key players in a drug distribution ring that operated over a large swath of Washington State were found guilty this week following a ten day jury trial, announced U.S. Attorney Annette L. Hayes.  Fourteen other co-conspirators charged in the case pleaded guilty in the months following their arrests in November 2016.  The drug ring distributed heroin, methamphetamine and cocaine in King, Snohomish, Skagit and Whatcom Counties.  The conspirators operated stash houses on Camano Island and in Mount Vernon, as well as in Yakima and Franklin Counties.  They had drug connections in Nevada and California.  The jury deliberated about five hours before returning a guilty verdict.  U.S. District Judge James L. Robart scheduled sentencing for January 16, 2018.

            The defendants convicted at trial of participating in the drug conspiracy are BALTAZAR REYES-GARCIA 45, of Camano Island, WA, HECTOR CONTRERAS-IBARRA, 33 of Pasco, WA, and ANGEL SERRANO-CARRENO, 30, of Mt. Vernon, WA.  All three men were convicted of conspiracy to distribute controlled substances and various specific counts of drug distribution.  SERRANO-CARRENO was also convicted of possession of heroin with intent to distribute and illegal possession of ammunition.  Due to the amount of drugs involved in the conspiracy, the defendants face mandatory minimum ten year sentences.

            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.

          Late yesterday law enforcement agents at the Nogales, Arizona border crossing from Mexico to the United States arrested a California man linked to one of the largest fentanyl seizures in the Pacific Northwest, announced U.S. Attorney Annette L. Hayes.  DANIEL GUERRERO, 28, of Palmdale, California, was identified as a source for Mexican cartel connected fentanyl, heroin and methamphetamine in late July 2017.  GUERRERO entered into a drug deal with a person working with law enforcement that resulted in the seizure in August 2017 of 11 kilos of fentanyl, one kilo of heroin, and 12 pounds of methamphetamine.  The drugs were seized from a mini-van parked at an apartment complex in Puyallup, Washington.

            “As the Deputy Attorney General announced this week, black market fentanyl is a serious and growing health threat across this country,” said U.S. Attorney Annette L. Hayes.  “This seizure of more than 11 kilos of fentanyl took millions of doses of a very dangerous drug off the streets and out of our western Washington communities.  I commend law enforcement for their good work and for continuing to prioritize those who bring this poison into our communities.”

            “Twenty four pounds of fentanyl hitting the streets of Tacoma and Seattle would have been my worst nightmare,” said DEA Special Agent in Charge Keith Weis. “The size of this shipment is extremely alarming because of the potential number of lethal doses and the deadly consequences it could have for those afflicted by opioid dependency.”

            According to records filed in the case, GUERRERO was planning on selling the seized drugs for $350,000.  GUERRERO left the California licensed mini-van at a Puyallup apartment and used a rental car to take his family to eastern Washington.  Law enforcement seized the drugs and mini-van. GUERRERO quickly left Washington State for California and then traveled on to Mexico. 

            GUERRERO was charged by criminal complaint and when he attempted to return to the United States at Nogales, he was arrested on the warrant.  He made his initial appearance today in Arizona and the criminal complaint was unsealed.

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

          The case was investigated by the U.S. Drug Enforcement Administration (DEA) Tacoma Resident Office, along with the Tahoma Narcotics Enforcement Team (TNET), which consists of the Washington Department of Corrections, Auburn Police Department, Bonney Lake Police Department Lakewood Police Department, Tacoma Police Department, Puyallup Police Department, and the Pierce County Sheriff's Office.  The case was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA) and National Guard.

           The case is being prosecuted by Assistant United States Attorney Marci L. Ellsworth.

          Today, the U.S. Department of Justice filed its response in support of the City of Seattle’s “Motion to Declare It in Full and Effective Compliance with the Consent Decree.”  The United States concludes that the City has met its obligations under the first phase of the Consent Decree based on (1) the ten assessments conducted by the Monitor – assessments that covered all of the requirements of the Consent Decree – and (2) the Department of Justice’s own independent review of the City’s compliance.  The Court’s continued oversight in phase two of this effort will ensure that the City continues to comply as required under the Decree.

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

“After much work over more than five years, the City of Seattle has reached a significant milestone in complying with the requirements of the Consent Decree.  New policies, training, and systems of oversight and accountability have resulted in the Seattle Police Department (SPD) meeting its obligations under Phase I of the Consent Decree and thereby eliminating the pattern or practice of unconstitutional policing that led to our investigation and findings in 2011.

We have not come to this conclusion lightly.  Career civil rights attorneys and police-practices experts have spent more than five years investigating SPD, overseeing the creation of new policies and training, and independently reviewing the relevant data and the results of assessments conducted by the Court-appointed Monitor that examined the implementation of the Consent Decree’s requirements.

We know that real reforms can’t just happen on paper.  They must be carried out in practice.  That is why Department of Justice civil rights attorneys and police reform experts, along with the Monitor, took a hard look at the way officers are using force on the street -- whether there is a real commitment to de-escalation, whether new approaches to crisis situations are resulting in better outcomes, and whether internal supervision and independent civilian-led accountability systems are sufficient to address any shortcomings

This conclusion does not mean the police department is perfect, nor does it end the hard work required under the Decree.  There is more to do and issues that need to be addressed.  Rather, this milestone represents the end of one chapter and the beginning of another.  Under the terms of the Consent Decree, SPD is required to sustain compliance for at least two years before the Court, Monitor or the Department of Justice could agree that termination of the Decree is appropriate.

I appreciate the hard work and commitment of SPD’s officers and leadership, the elected officials who have made police reform a priority, and, of course, the strong support of – and demands from – the community and the ongoing engagement from the Community Police Commission.  Continued engagement by all concerned in the next phase of the reform efforts and beyond will be critical to ensuring further progress under the Consent Decree.”

          A former Army soldier was sentenced today in U.S. District Court in Tacoma to 210 months in prison and lifetime supervised release for aggravated sexual abuse of a minor, announced U.S. Attorney Annette L. Hayes.  WIMIBALDO EVER CEDENO, 55, was arrested in Tacoma in September 2015, following a domestic violence assault at his home.  The investigation revealed that CEDENO had sexually molested two children between 2002 and 2006, while CEDENO resided on military bases, including the Fort Lewis Military installation (now Joint Base Lewis-McChord or JBLM).  The victims were between the ages of seven and twelve-years-old.  At the sentencing hearing U.S. District Judge Robert J. Bryan said, “I need to protect the public. . . . These were very serious ongoing long-term offenses.”

            According to records filed in the case, CEDENO molested and raped his young victims while threatening them with loss of their home and financial support if they reported the abuse.  The abuse occurred when other adults were not present in the home.  CEDENO left the military in 2011 and resided in Tacoma.  The abuse was ultimately disclosed to the Tacoma Police and U.S. Military investigators after CEDENO was arrested for shoving his wife during an argument.  The victims worked with law enforcement, obtaining recorded statements from CEDENO admitting he sexually molested them.

            CEDENO pleaded guilty in May 2017.  These crimes are being prosecuted in federal court because they occurred on a military base in an area of exclusive federal jurisdiction.

            The case was investigated by the FBI, the U .S. Army Criminal Investigation Division (Army-CID), and the Tacoma Police Department.  The case was prosecuted by Assistant United States Attorney Grady Leupold who serves as the Military Liaison for the U.S. Attorney’s Office.

          A registered sex offender with multiple prior convictions was sentenced today in U.S. District Court in Seattle to 35 years in prison, and lifetime supervised release, announced U.S. Attorney Annette L. Hayes.  RAYMOND EARL DEVORE, 44, of Arlington, Washington, was convicted at a bench trial of possession, receipt, and distribution of child pornography, attempted production of child pornography, and attempted enticement of a minor.  At the sentencing hearing U.S. District Judge Thomas S. Zilly found that DEVORE qualified for the 35 year mandatory minimum sentence because of his prior convictions.  “You weren’t just surfing the internet for child pornography,” said U. S. District Judge Thomas S. Zilly.  “You were really a predator, obsessed with connecting with young teens.”

            “This defendant has demonstrated repeatedly that he poses a grave risk to children,” said U.S. Attorney Annette L. Hayes.  “Congress put in place significant mandatory minimum sentences for sex offenders with this kind of criminal history to ensure our communities are protected for as long as possible.”

            According to records filed in the case, DEVORE came to the attention of law enforcement in January 2015, when he was living at a residence for sex offenders under the supervision of the Washington State Department of Corrections.  Law enforcement learned that DEVORE had been sending text messages to a young teen-age girl in Oregon.  Investigators seized DEVORE’s phone and discovered hundreds of images of child molestation and rape.  The forensic examination also found a Dropbox account with additional images.  The investigation also revealed that DEVORE used a messaging app to communicate with 87 different people, many of whom indicated they were teenagers.  DEVORE attempted to lure some of them into providing him with sexually explicit images.  DEVORE had sexually explicit discussions with two young teen-age girls, preying on them after learning they had been victims of sexual abuse.

            DEVORE was convicted in Snohomish County Superior Court in 2003 of possessing and dealing depictions of minors engaged in sexually explicit conduct, and communicating with a minor for immoral purposes.  DEVORE was convicted of failing to register as a sex offender in 2005, 2007, and 2011.

            The case was investigated by the U.S. Secret Service, the Snohomish County Sheriff’s Office, the Arlington Police Department, the McMinnville Oregon Police Department and the Washington State Department of Corrections.  The case was prosecuted by Assistant United States Attorneys Michael Dion, Kate Vaughan and Siddharth Velamoor.

          A Tacoma, Washington woman pleaded guilty today in U.S. District Court in Tacoma to unlawful possession of a destructive device, announced U.S. Attorney Annette L. Hayes.  KENNI JO BENNETT, 41, of Tacoma, and an accomplice, placed the explosive device under a Kia Forte sedan parked outside a Tacoma home occupied by a family, including several children.  The device exploded blasting a hole in the trunk area of the car, and scattering debris around the area, including the lawns of homes across the street.  No one was injured.  U.S. District Judge Ronald B. Leighton scheduled sentencing for January 5, 2018. 

            According to the plea agreement, between August and October 2016, BENNETT became convinced that the victim was providing information to law enforcement concerning her drug trafficking activities.  BENNETT recruited an accomplice to help her blow up the victim’s car.  BENNETT purchased an explosive device about the size of a soda can from someone she knew on the Puyallup Indian Reservation.  In the early morning hours of October 13, 2016, BENNETT cruised the victim’s neighborhood and saw his car parked in the driveway of his home.  She texted her accomplice, picked him up, and brought him back to the target vehicle.  BENNETT used a lit cigarette to ignite the fuse of the device and instructed her accomplice where to place it.  BENNETT used her smart phone to record the explosion.  The two then left the area. 

            BENNETT was arrested by Tacoma Police and charged in state court in November 2016.  In May 2017, she was charged federally and has remained in federal custody.  

            Unlawful possession of a destructive device is punishable by up to ten years in prison, three years of supervised release and a $10,000 fine. 

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

          A 34-year employee of an Everett, Washington battery company was sentenced today in U.S. District Court in Seattle to three years in prison, three years of supervised release, and $2,427,478 in restitution for embezzling from her employer, announced U.S. Attorney Annette L. Hayes.  JUDITH HUTCHINSON, 65, of Everett, pleaded guilty in May 2017, admitting that over the last seven years, while employed as bookkeeper and controller for All Battery Sales and Services, Inc., she used company money to pay her personal expenses, including charges for expensive jewelry, vacation rentals and cruises, clothes, furniture, and other items.  At the sentencing hearing U.S. District Judge Thomas S. Zilly told her, “you essentially stole from this company $2.4 million… You were buying jewelry, high-end clothing, a Porsche and a Corvette… I’m very troubled by that.” 

           According to records filed in the case, HUTCHINSON used her trusted position at the company to use company money to pay her personal credit card bills.  HUTCHINSON regularly spent more than $2,000 a day on online shopping, and made large purchases such as a vacation rental for a Colorado ski condo, and other expensive vacations for her extended family.  HUTCHINSON hid her embezzlement from the family owned business by creating false and fraudulent entries in All Battery’s cost reports by inflating costs incurred by other sectors of All Battery’s business to hide the transfers made to pay her personal credit card balances.  

           In victim statements provided to the court, other employees and managers recounted how the company had struggled during the period of the embezzlement.  Employees went without raises, purchases were delayed, work hours were trimmed so that the company could continue with a positive cash flow.  The office manager noted that while the staff endured a wage freeze and limits on overtime, HUTCHINSON continued to steal and spend company money for her own benefit.  The embezzlement was finally discovered by a co-worker and the company reported it to law enforcement in August 2016. 

            The case was investigated by the FBI and the Snohomish County Sheriff’s Office.  The case was prosecuted by Assistant United States Attorney Matthew Diggs.

          A 69-year-old resident of Camano Island, Washington, was sentenced today in U.S. District Court in Seattle to nine years in prison and 15 years of supervised release for receipt of child pornography, announced U.S. Attorney Annette L. Hayes.  JOSEPH VERNON GRUBBS pleaded guilty in June 2017, admitting he paid people in the Philippines to sexually abuse children, and send the images and videos of that abuse to him over email.  He paid to watch live webcasts of minors performing sex acts with other minors and adults.  At the sentencing hearing, U.S. District Judge Thomas S. Zilly told GRUBBS “this is outrageous conduct.” 

          “The depravity of this defendant’s conduct is beyond words,” said U.S. Attorney Annette L. Hayes.  “He took advantage of poverty in a country half a world away to facilitate the sexual abuse of children.  The result was the perpetuation of a vicious cycle of abuse and victimization that harmed the most vulnerable among us.”   

          According to records filed in the case, GRUBBS came to the attention of law enforcement when Yahoo notified the FBI that it was investigating a number of users of its email and messaging service who were sexually exploiting children in the Philippines.  The FBI served a search warrant on GRUBBS’s home, and arrested him in July 2016.  GRUBBS had traveled frequently to the Philippines.  He told investigators he lived there in a second home six months of the year.            

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

          Eleven Western Washington Tribes and one tribal coalition were awarded more than $8.9 million in federal grants to enhance public safety and assist victims of crime in tribal communities, announced U.S. Attorney Annette L. Hayes.  These grants are part of more than $130 million in funding announced by the U.S. Department of Justice today.

            “Our Tribal partners work diligently to create safe and just communities, and these grants support that mission,” said U.S. Attorney Annette L. Hayes. “Each of these Tribes submitted detailed proposals on how the available federal resources would be used in their communities.  I commend each of the grant recipients for identifying ways in which federal funding can improve life in Indian Country and look forward to continuing to work in partnership with them to ensure justice is served.”

            The eleven Tribes receiving grants include:

• $3.2 million to the Puyallup Tribe for a variety of criminal justice initiatives, including programs to combat violence against women and alcohol and substance abuse; programs for tribal youth and children services; and programs to fund community policing and correctional alternatives.
• $969,461 to the Port Gamble S’Klallam tribe for public safety, community policing, and justice systems and programs to combat alcohol and substance abuse.
•  $621,458 to the Lower Elwha Klallam Tribe for public safely, community policing, and programs to combat violence against women.
• $560,680 to the Tulalip Tribes for justice systems and to combat alcohol and substance abuse.
• $555,848 to the Squaxin Island Tribe for public safety and community policing.
• $512,616 to the Makah Tribe for public safety and community policing.
• $495,000 to the Swinomish Indian Tribe for Domestic Violence programs.
• $350,000 to the Muckleshoot Indian Tribe for innovative juvenile court programs.
• $349,000 to the Quileute Tribe for tribal youth programs.
• $258,119 to the Skokomish Tribe for justice systems and programs to combat drug and alcohol abuse.
• $109,393 to the Hoh Tribe for justice systems and programs to combat drug and alcohol abuse.

          In addition to the tribal grants, the Washington State Native American Coalition Against Domestic Violence was awarded $318,008 to reduce sexual assault on college campuses.

          These grants are part of a nationwide program to support public safety in Tribal communities.  More than $101 million was awarded to 125 American Indian tribes, Alaska Native villages, tribal consortia, and tribal designees through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs.  Of the $101 million, $47.6 million comes from the Office of Justice Programs (OJP), $34.1 million from the Office on Violence Against Women (OVW), and $19.4 million from the Office of Community Oriented Policing Services (COPS).

          The Justice Department’s Office on Violence Against Women (OVW) awarded 101 grants totaling $56.3 million to tribal governments and nonprofit entities to help respond to the crimes of domestic violence, sexual assault, dating violence, stalking, and sex trafficking in Indian country.  Of the $56.3 million, $34.1 was awarded through the CTAS application process as noted above, and $22.1 million was awarded through other OVW grant programs and special initiatives.

          CTAS grants are designed to enhance law enforcement practices, expand victim services, and sustain crime prevention and intervention efforts. Awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.

          A Camas, Washington, tax preparer, who now lives in Vancouver, Washington, pleaded guilty today in U.S. District Court in Tacoma to assisting in filing false tax documents, announced U.S. Attorney Annette L. Hayes.  PAULA ODIA, 43, prepared more than 50 fraudulent tax returns, resulting in a tax loss to the U.S. that the government estimates is between $250,000 and $550,000.  Most of ODIA’s clients were unaware she had falsified their tax returns or that she directed a portion of their tax refund to her bank account or to accounts belonging to members of her family.  U.S. District Judge Robert J. Bryan scheduled sentencing for January 5, 2018.

            According to records filed in the case, between 2011 and 2016, ODIA prepared federal income taxes for customers from her Camas home.  Clients would bring ODIA their records, and she would prepare and file their taxes. In 2011, ODIA began claiming illegitimate deductions and credits in her clients’ tax returns.  These false deductions and credits reduced the clients’ tax obligations and increased the tax refund.  ODIA then diverted a portion of that refund to bank accounts that she or members of her family controlled.  When ODIA provided copies of the tax returns to clients, these copies did not reflect what ODIA actually filed with the IRS so that the clients would not see that some of the refund had been directed to ODIA’s accounts.

            Assisting in filing false tax documents is punishable by up to three years in prison, one year of supervised release, and a $100,000 fine.  As part of her plea agreement, ODIA has agreed to pay restitution to the U.S. for the tax loss determined by the court.

            The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).

          A 26-year-old member of the Makah Tribe was sentenced September 26, 2017, in U.S. District Court in Tacoma to 63 months in prison for sexually molesting a 5-year-old child, announced U.S. Attorney Annette L. Hayes.  JORDAN JAMES COLFAX was babysitting the young child when the sexual abuse occurred on Makah Tribal land.  At the sentencing hearing U.S. District Judge Benjamin H. Settle called COLFAX’s conduct “monstrous” and imposed 20 years of supervised release following the prison sentence.

            According to records filed in the case, COLFAX was indicted in December 2016 and pleaded guilty to Abusive Sexual Contact in April 2017.  The sexual abuse occurred between August 2015 and April 2016 when COLFAX, then age 24, was babysitting the 5-year-old child.  In April 2016, the child disclosed the abuse to a relative who contacted Child Protective Services (CPS).  CPS notified Neah Bay Public Safety (NBPS), the law enforcement department of the Makah Tribe.  COLFAX was interviewed and arrested in May 2016.  Because the crime involves tribal members on tribal land, federal authorities have jurisdiction.

            The case was investigated by Neah Bay Public Safety and the FBI.  The case was prosecuted by Assistant United States Attorney J. Tate London.  Mr. London is one of two Tribal Liaisons for the U.S. Attorney’s Office.

          The Department of Justice is sending more than $1.1 million to programs in Washington State that protect children from sexual exploitation, announced U.S. Attorney Annette L. Hayes.  The largest grant, just over $450,000 will go to the Seattle Internet Crimes Against Children Task Force (ICAC), a Seattle Police based organization that assists with investigations across the region.

          “Our ICAC task force in Western Washington is a critical tool in stopping the sexual exploitation of children,” said U.S. Attorney Annette L. Hayes.  “These grant dollars will provide cutting edge software and training for detectives and forensic investigators who work every day to identify those using the internet to abuse and sexually molest our children.”

          In 2016, ICAC task forces across the country conducted more than 61,000 investigations and about 78,000 forensic exams, which led to more than 9,300 arrests.

          In addition to the ICAC funds, three Indian Tribes and Washington State received grants to assist with programs to monitor and track sex offenders under the Adam Walsh Child Protection and Safety Act of 2006.  The grants include:

• $292,711 to the Skokomish Indian Tribe to implement the Sex Offender Notification Act (SORNA).
• $228,850 to the Nooksack Tribe for officer training on SORNA and on responding to incidents involving sex offenses.
• $35,081 to the Port Gamble S’Klallam Tribe to replace equipment and provide training for those working in sex offender notifications.
• $145,918 to Washington State to enhance sex offender notification programs.

          The Office of Justice Programs (OJP), headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims.  OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking.  More information about OJP and its components can be found at www.ojp.gov.

          The final defendant in a long running investigation of mortgage fraud at Pierce Commercial Bank was sentenced today in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes.  Between 2005 and 2008, BEN LESKE, 40, of Puyallup, worked as a loan officer for PC Bank Home Loans, a division of Pierce Commercial Bank.  LESKE pleaded guilty in May 2017, to making false statements on loan applications.  Today U.S. District Judge Benjamin H. Settle sentenced LESKE to 30 days of home detention, 100 hours of community service, two years of supervised release and more than $131,000 in restitution.

            “Those whose crimes deepened the damage from the 2008 financial crisis deserve to be punished just like any other criminal, said U.S. Attorney Annette L. Hayes.  “This defendant and 14 other well-paid bank employees from loan officers to bank vice presidents forged documents and made false statements to close loans they knew were not sound.  The result was the collapse of Pierce Commercial Bank and the expenditure of nearly $7 million of taxpayer funds to address the financial mess these defendants left behind.”

            According to records in the case, between 2004 and 2008, the architect of the fraud, Shawn L. Portmann, and other members of the conspiracy submitted false documents within various loan documents and applications.  They falsified information about the borrowers’ qualifications as well as their intention to reside in the homes being financed.  A review of a sample of conventional and HUD loans showed that members of the conspiracy closed over 300 loans with false and fraudulent documents and information.  More than half of this sample of loans have defaulted or otherwise caused loss, causing an estimated loss of more than $10 million to Pierce Commercial Bank, secondary investors and HUD/FHA.  Court records detail multiple false statements included in loan documents regarding an applicant’s employment, income, and intention to reside in the property.  Pierce Commercial Bank was closed by regulators in November 2010.  Pierce Commercial Bank received $6.8 million from Troubled Asset Relief Program (TARP) in January 2009.  This money was never repaid.

          “With the sentencing of mortgage banker Ben Leske, 15 bank employees have now faced justice for a conspiracy that directly contributed to Pierce Commercial Bank’s failure and the loss of $6.8 million in TARP bailout funds,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. “Ringleader Shawn L. Portmann, who was sentenced to 10 years in federal prison for his crimes, created a culture at PC Bank Home Loans, Pierce Commercial Bank’s mortgage lending office, where all loans applications were expected to approved, regardless of the applier’s ability to repay.  Under this ‘close every loan’ culture, he and his co-conspirators submitted false and fraudulent documents showing borrowers who appeared qualified for mortgages when in fact they were not. As a result, PC Bank Home Loans greatly expanded the residential mortgage lending operations of Pierce Commercial Bank prior to the financial crisis from no more than $3.9 million a month to nearly $500 million a year. I thank the U.S. Attorney’s Office for their commitment to fighting fraud related to TARP.”

          Shawn L. Portmann and nine other defendants were prosecuted and sentenced between 2011 and 2013, with sentences ranging from probation to the ten-year prison sentence for Portmann.  Five additional conspirators were charged in 2017.  In addition to LESKE, four others sentenced in the 2017 case include: Sam Tuttle, 54, of Tacoma, a Vice-President of PC Bank Home Loans was sentenced to three years of supervised release; Angela Crozier, 44, of Olympia, a loan processor was sentenced to one year of supervised release; Ed Rounds, 53 of Puyallup, a loan officer was sentenced to two years of supervised release and Craig Meyer, 55, of Dickenson, Texas, a Vice President and loan officer was sentenced to one year of supervised release.   

          The case was investigated by the FBI, the HUD Office of Inspector General (HUD-OIG), Internal Revenue Service Office of Criminal Investigation (IRS-CI), the Washington State Department of Financial Institutions, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) and the United States Postal Inspection Service.  

          The case was prosecuted by Assistant United States Attorney Brian Werner and Special Assistant United States Attorney Hugo Torres.  Mr. Torres is a King County Senior Deputy Prosecuting Attorney specially designated to prosecute mortgage fraud in federal court.

WASHINGTON – The Department of Justice is spending $58.8 million nationwide to strengthen drug court programs and address the opioid epidemic.  Entities in Washington State are receiving grants totaling $2,530,499.

          “The grants to Washington State will pay for stronger prescription drug monitoring programs to curb opioid abuse, and will also fund more treatment and drug court options for those struggling with addiction,” said U.S. Attorney Annette L. Hayes.  “With nearly one million dollars going to the Department of Health for prescription monitoring, health care providers, and law enforcement authorities will be better equipped to identify and stop those who are diverting pills to the black market and thereby feeding the opioid epidemic.”

            In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before.  Washington State’s opioid death rate for calendar year 2015 was 5.5 deaths per 100,000 people, more than double the rate in 1999.  The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues.

          “Today, we are facing the deadliest drug crisis in American history,” said Attorney General Jeff Sessions. “These trends are shocking and the numbers tell us a lot– but they aren’t just numbers.  They represent moms and dads, brothers and sisters, neighbors and friends. And make no mistake, combatting this poison is a top priority for President Trump and his administration, and you can be sure that we are taking action to address it.  Today, we are announcing that we will be awarding millions in federal grants to help law enforcement and public health agencies address prescription drug and opioid abuse.  This is an urgent problem and we are making it a top priority.”

          In Washington State specific grants include:

• $853,654 to the Department of Health for prescription drug monitoring programs
• $300,000 to Mason County for public education surrounding opioid abuse and overdose prevention
• $399,785 for the Grays Harbor County drug court
• $397,566 for the Port Gamble S’Klallam Tribe drug court.
• $400,000 for the Clark County drug court
• $179,494 to the Department of Social and Health Services for drug treatment programs in jails, prisons and community corrections programs.

          Nationally, about $24 million in federal grants will be awarded to 50 cities, counties and public health departments to provide financial and technical assistance to state, local, and tribal governments to create comprehensive diversion and alternatives to incarceration programs for those impacted by the opioid epidemic.  These funds, awarded under the Office of Justice Programs’ Bureau of Justice Assistance’s Comprehensive Opioid Abuse Program, also included funds from the Harold Rogers Prescription Drug Monitoring Program.  This program helps regulatory, law enforcement, and public health agencies address prescription drug and opioid misuse; reduce crime; and save lives.

          An additional $3.1 million will be awarded by the National Institute of Justice for research and evaluation on drugs and crime.  The research priorities are heroin and other opioids and synthetic drugs.

          The Department is also awarding more than $22.2 million to 53 jurisdictions to support the implementation and enhancement of adult drug courts and Veterans Treatment Courts, which serve as “one-stop-shops” to link veterans with services, benefits and program providers, including the Department of Veterans Affairs, Veterans Service Organizations and volunteer veteran mentors.

          Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJWE.

          The Department is also awarding more than $9.5 million under several Office of Juvenile Justice and Delinquency Prevention grant programs, including the Juvenile Drug Treatment Court Grant Program and the Family Drug Court Statewide System Reform Implementation Program.  These programs help jurisdictions build effective family drug treatment courts and ensure current juvenile drug treatment courts follow established guidelines. 

          Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJDf.           

          Finally, read more about the importance of these programs in a new blog by OJP Acting Assistant Attorney General Alan R. Hanson online at https://go.usa.gov/xRJBp.  
 

            The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims.  OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

          A 64-year-old resident of Brinnon, Jefferson County, Washington was sentenced last week in U.S. District Court in Tacoma to six months in prison, one year of supervised release and a $25,000 fine for trafficking ivory from protected species, announced U.S. Attorney Annette L. Hayes.  DAVID L. BOONE, who operates Boone Trading Company, participated in an operation that illegally smuggled narwhal tusks taken from the threatened Arctic whales into the United States from Canada.  BOONE also trafficked in sperm whale teeth and walrus tusks.  The purchase and sale of these items is prohibited under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international treaty that regulates trade in species whose survival is threatened by trade, and the Marine Mammal Protection Act.  U.S. District Judge Ronald B. Leighton imposed the sentence.

            “We have an obligation to the international community to prosecute those who seek to profit from illegal trafficking in protected species such as the magnificent narwhal,” said U.S. Attorney Annette L. Hayes. “I join those who had a part in this investigation in reminding anyone who chooses to put selfish profit above protection of the earth’s threatened species – we will devote the resources necessary to finding and holding accountable anyone responsible for this kind of despicable crime.”

            “We commend the Department of Justice and all other agencies that played a role in aiding this investigation and prosecution,” said Edward Grace, Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service. “The illegal wildlife trade is a $20 billion industry that is rapidly driving elephants and many other animals to extinction. The Service will continue to use every tool at its disposal to fight the trafficking scourge and bring to justice the individuals who are depriving our planet of these magnificent creatures for their own profit.”

            According to records filed in the case, between 2006 and 2008, BOONE purchased narwhal tusks from a Canadian and a resident of Tennessee.  Narwhals are Arctic whales often called the ‘Unicorn of the Sea’ because of their prominent tusk.  While native Inuit of northern Canada are allowed to hunt narwhal, it is illegal to import tusks into the United States.  BOONE purchased tusks knowing they had been smuggled across the border from Canada.   He then sold the tusks on the black market at a huge profit.

            Additionally, in October 2011 BOONE sold sperm whale teeth to an undercover law enforcement officer, and in February 2012 bought and sold a walrus skull and tusks.  The transactions were illegal under the Marine Mammal Protection Act.

            The Canadian exporter of the narwhal tusks plead guilty to multiple counts of money laundering and was sentenced today in U.S. District Court for the District of Maine to more than 5 years in prison.  In addition to BOONE, three other United States citizens were prosecuted and convicted for their participation in the narwhal tusk smuggling scheme - one in the District of Maine, and one each in the Districts of Massachusetts and Alaska.

            The court directed that the $25,000 criminal fine be paid to the Lacey Act Reward Fund.  Monies deposited into this Fund are used to reward persons who furnish information leading to successful enforcement actions against those who traffic in illegally taken fish and wildlife. 

            The case was investigated by the U.S. Fish and Wildlife Service’s Office of Law Enforcement.  The case was prosecuted by Assistant United States Attorney James Oesterle.

          A 40-year-old Vancouver, Washington resident was sentenced this week in U.S. District Court in Tacoma to 80 months in prison for drug and gun crimes, announced U.S. Attorney Annette L. Hayes. IGNACIO MAGANA MONTES, aka SOSTENES MONTOYA SANCHEZ, aka “Nacho,” pleaded guilty in April 2017, to Possession of Heroin with Intent to Distribute, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. MAGANA MONTES is a Mexican national who likely will be deported following his prison term. At the sentencing hearing, U.S. District Judge Benjamin H. Settle noted that the large amount of drugs and cash seized at MAGANA MONTES’ home demonstrated that he had been a sizable dealer for some time, and had contributed to the opioid epidemic gripping our state and nation.

          According to records filed in the case, in September 2015, the Vancouver Police Department executed a search warrant on MAGANA MONTES’s home in the 2300 block of Neals Lane, in Vancouver. Inside a locked closet in the master bedroom, law enforcement seized a Jennings .22 caliber pistol, a Llama .45 caliber pistol, about a dozen cell phones, over $112,000 in cash, and an ounce of heroin. In the garage of the home officers recovered three pounds of heroin (one pound was packaged for distribution), and in a lock box buried just outside the garage they found another two pounds of heroin. In all, law enforcement seized more than five pounds of heroin and $128,000 from the house.

          In their sentencing memo prosecutors noted that MAGANA MONTES is a large-scale dealer, given the amount of money and drugs in the home. The five pounds of heroin could provide upwards of 20,000 individual doses of heroin. Law enforcement searched the house and discovered the drug trafficking operation after family members were involved in a nearby drive-by shooting incident in Vancouver, and thereafter returned to the family home. It is unclear whether that shooting was drug related.

          The case was investigated by the Vancouver Police Department and the FBI. The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.

          A long-time member of a south Seattle street gang was sentenced today in U.S. District Court in Seattle to 92 months in prison, and three years of supervised release, announced U.S. Attorney Annette L. Hayes. SAMUEL N. REZENE, 30, denies his gang membership, but has a lengthy criminal history involving drug trafficking, promoting prostitution and firearms. REZENE was the target of multiple shooting incidents including one in February 2012, when REZENE’s then girlfriend was shot and killed while riding in the car REZENE was driving. At the sentencing hearing today U.S. District Judge James L. Robart said whether or not REZENE is a gang member, “he has chosen a life of crime and has been involved in multiple dangerous situations.”

          “Today, the violence that has surrounded this defendant for more than five years comes to an end,” said U.S. Attorney Annette L. Hayes. “Law enforcement has traced numerous drive-by shootings – one of them deadly – to the violence this defendant embraced. By sending this defendant to prison for illegally possessing firearms, the community will be protected from further violence and the devastation that always follows in its wake.”

          According to records filed in the case, in 2011 and 2013, REZENE and one or more associates were involved in two different drug robberies of rival gangsters. In retaliation for these robberies, REZENE, his home and vehicles were repeatedly the targets of drive-by shootings. In retaliation, REZENE’s associates shot up a business associated with the rival gang. On May 15, 2014, REZENE was shot multiple times while at a gas station in Renton. REZENE grabbed a gun from the center console of his car and attempted to return fire, and then collapsed. REZENE was taken to Harborview Medical Center and survived the shooting. His assailant has never been found. At the time of the shooting REZENE had multiple felony convictions, including convictions for drug trafficking, illegal firearms possession, promoting prostitution, and attempting to elude a police vehicle. These convictions prohibit him from possessing a firearm.

         Even after the May 2014 shooting at the gas station, REZENE continued his violent ways. After being released from the hospital, law enforcement spotted him shooting at a business associated with a rival gang in October 2014. REZENE was sentenced to 31 months in state custody for a related firearms offense. He was charged federally in December 2014 and was found guilty at a bench trial in May 2017.

          The case was investigated by the Renton Police Department and the Seattle Police Department with assistance from the FBI.

          The case was prosecuted by Assistant United States Attorneys Todd Greenberg and Stephen Hobbs.

          A former resident of Grant County, Washington was sentenced today in U.S. District Court in Seattle to 27 months in prison, and three years of supervised release for possession of an unregistered firearm and possession of a machinegun, announced U.S. Attorney Annette L. Hayes. SCHUYLER PYATTE BARBEAU, 31, of Springdale, Washington, pleaded guilty after the start of his trial in June 2017. BARBEAU altered a short-barreled rifle to make it a fully automatic machinegun, and then attempted to sell it via a person who was working with law enforcement. At the sentencing hearing U.S. District Judge Richard A. Jones told him, “Your thought process became dominated by violence and a desire to take the lives of law enforcement…. You showed a willingness to put a fully automatic firearm in commerce with no idea of how it would be used and how many lives would be lost.”

          “This defendant violated the law by producing a fully automatic and therefore dangerous machine gun,” said U. S. Attorney Annette L. Hayes. “What made his conduct even worse were his threats against law enforcement all made while he idolized people such as Timothy McVeigh.”

          According to records filed in the case, in October 2015, BARBEAU contacted a person who was secretly working with law enforcement and indicated he wanted to sell a short-barreled rifle that he had converted to automatic operation –i.e., he made it into an illegal machine gun. In November 2015, BARBEAU brought the weapon to the person working with law enforcement and said he wanted to sell it as soon as possible. When he met with the person in December 2015, to collect the money from the ‘sale,’ BARBEAU was arrested.

          At various meetings regarding the possible sale of the firearm, BARBEAU was recorded talking about his intent to shoot law enforcement if they attempted to arrest him or interfere with his activities. BARBEAU was recorded stating: “I’ve got guns and body armor and I’m going to shoot and kill and it’s gonna be a big firefight if they (FBI) do come after me.” BARBEAU also praised Oklahoma City bomber Timothy McVeigh as his hero, and served as a security guard at the armed standoff at Bundy Ranch in Nevada.

          The case was investigated by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case was prosecuted by Assistant United States Attorneys Thomas Woods, Todd Greenberg and Special Assistant United States Attorney Jessica Manca. Ms. Manca is a Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.

          Two Tacoma, Washington residents who were observed texting on an airplane about sexually molesting children have been indicted by a grand jury in Seattle, announced U.S. Attorney Annette L. Hayes. MICHAEL KELLAR, 56, and GAIL LYNN BURNWORTH, 50, were arrested last month after an alert passenger on a flight to San Jose, California noticed disturbing texts between KELLAR, who was on the plane, and BURNWORTH, who was in Tacoma. BURNWORTH had access to two minor children. The indictment was returned on Wednesday, September 6, 2017. The pair are scheduled for arraignment on the indictment in U.S. District Court in Tacoma on September 18, 2017.

          “Two children are safe tonight because an observant passenger on a plane did the right thing,” said U.S. Attorney Annette L. Hayes. “I commend law enforcement who quickly acted to get these defendants into custody, and protect two children from sexual abuse.”

          Both KELLAR and BURNWORTH are charged with conspiracy to produce child pornography. KELLAR is charged with two counts of attempted enticement of a minor in connection with his communication to BURNWORTH regarding the sexual exploitation and rape of each of the minor children.

          Conspiracy to produce child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison and a $250,000 fine. Attempted enticement of a minor is punishable by a mandatory minimum ten years in prison and up to life in prison and a $250,000 fine.

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

          BURNWORTH is charged in Pierce County Superior Court with child rape, child molestation and two counts of sexual exploitation of a minor.

          Both defendants remain in custody.

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

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

          A former financial analyst at Amazon.com, Inc., pleaded guilty today in U.S. District Court in Seattle to securities fraud involving insider trading, announced U.S. Attorney Annette L. Hayes. BRETT D. KENNEDY, 26, currently of Blaine, Washington, admitted that in April 2015, he provided non-public quarterly financial results to a friend who then purchased Amazon stock and sold it at a profit once the results were made public. The friend paid KENNEDY for this inside information. KENNEDY is no longer employed by Amazon. Chief U.S. District Judge Ricardo Martinez scheduled sentencing for December 8, 2017.

          “Insider trading of any kind corrodes trust in one of the crown jewels of our country -- our financial markets,” said U. S. Attorney Annette L. Hayes. “As this case demonstrates, we work closely with our law enforcement partners – including the FBI and the SEC – to investigate and hold accountable those involved in this serious crime.”

          According to the information filed in the case, KENNEDY began work as a financial analyst at Amazon in 2013. As part of his employment he signed a confidentiality statement that he would not disclose Amazon’s non-public financial information outside the company. The policy specifically mentions information such as earnings and losses as material confidential information. In April 2015, KENNEDY used his access to view and write down Amazon first quarter earnings that were going to be announced later in the month. KENNEDY provided this information to his friend. After viewing the information, the friend purchased 4400 shares of Amazon stock for $1.7 million. When the positive earnings news was announced publicly, and the stock price rose, the friend sold the shares for a gain of nearly $116,000.

          The friend paid KENNEDY $10,000 in cash for the information.

          As part of the plea agreement, the government will recommend KENNEDY serve no more than a year and a day in prison. However, the judge is not bound by that recommendation and KENNEDY could be sentenced to the maximum penalty of up to 20 years in prison and $5 million fine.

          The Securities and Exchange Commission today filed civil charges against KENNEDY. In its complaint it identifies the friend as Maziar Rezakhani, and names him as a defendant. Rezakhani, 28, is currently serving a five year prison term for defrauding a bank, Apple, Inc., and various shipping and insurance companies. The insider trading investigation grew out of the investigation into Rezakhani’s frauds. The SEC is seeking disgorgement of all profits from Rezakhani’s alleged illegal trading. KENNEDY agreed to a settlement with the SEC. Details of the SEC action are available here.

          The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Brian Werner.

WASHINGTON - The U.S. Department of Justice announced today that it has reached a settlement with the owners and manager of three Edmonds, Washington apartment buildings to resolve a lawsuit filed earlier this year alleging that those landlords refused to rent their apartments to families with children, in violation of the Fair Housing Act.

          “The Fair Housing Act prohibits apartment owners and managers from denying housing to families because they have children,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “We will continue to vigorously enforce the Fair Housing Act’s prohibition of discrimination against families with children.”

          “Equal access to housing is essential for all Americans, including families with young children,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “Particularly in our tight housing market, landlords must follow the law and make units available without discrimination based on race, color, religion, sex, national origin, disability or familial status.”
 

          “No family should be denied a place to live simply because they have a child,” said Anna Maria Farias, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to work with the Justice Department to ensure that property owners comply with their obligations under the nation’s fair housing laws.”

          The three apartment buildings that are the subject of the settlement are located at 201 5th Ave. N., 621 5th Ave. S., and 401 Pine Street in Edmonds, Washington. They are owned and managed by defendants Debbie A. Appleby, Apple One, LLC, Apple Two, LLC, and Apple Three, LLC, of Stanwood, Washington. Under the settlement, the defendants will:

• Pay a total monetary settlement of $95,000, comprised of:

$35,000 in damages to a family that they turned away because the family had a small child;

$35,000 that will be used to compensate other families that were harmed by defendants’ practices; and

$25,000 as a civil penalty to the United States;

• Adopt non-discriminatory policies and practices that ensure compliance with Fair Housing Act; and

• Submit to record keeping and monitoring requirements for the three-year period of the settlement agreement.

          Today’s settlement resolves a complaint filed by the department in March 2017 which alleged that in March 2014 defendant Appleby told a woman seeking an apartment for herself, her husband and their one-year-old child that the apartment buildings were “adult only.” The complaint also alleged that defendants advertised their apartments as being in “adult buildings.” The family filed a complaint with the U.S. Department of Housing and Urban Development (“HUD”), which conducted an investigation, issued a charge of discrimination against the defendants, and referred the case to the Justice Department

          Any individuals who believe they were discriminated against by the defendants because they have children should contact the Civil Rights Division at 1-800-896-7743, Option 96.

          The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt and https://www.justice.gov/usao-wdwa/civil-rights. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, email the Justice Department at fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777 or through its website at www.hud.gov.
 

          The case is being jointly handled by Trial Attorney Kathryn Legomsky for the Civil Rights Division for the U.S. Department of Justice, and Assistant United States Attorney and Civil Rights Program Coordinator J. Michael Diaz, for the United States Attorney’s Office for the Western District of Washington.

          A former member of the military was sentenced today in U.S. District Court in Tacoma to 23 years in prison for two counts related to sexual molestation of a young child on two different military bases in Washington and Louisiana, announced U.S. Attorney Annette L. Hayes. KENNETH PAUL DESCOTEAUX, 42, was arrested in April 2016, after the minor victim disclosed to authorities that DESCOTEAUX had been sexually molesting the victim since 2011. At the sentencing hearing today, U.S. District Judge Benjamin H. Settle called DESCOTEAUX’s crimes “monstrous.”

          According to records filed in the case, the victim disclosed the abuse while residing in Wyoming. The Cheyenne Police Department worked closely with the FBI and law enforcement at Joint Base Lewis-McChord (JBLM) and the Fort Polk Military Installation to investigate the crimes that occurred when the victim and DESCOTEAUX resided on those military installations. DESCOTEAUX was indicted both in federal court in the Western District of Louisiana, and in the Western District of Washington since both military bases are exclusive federal enclaves where criminal cases are prosecuted in federal court. The criminal conduct in Louisiana occurred between 2011 and 2014, when the victim was ages 7-10. The crimes on JBLM occurred between 2014 and 2015 when the victim was 11-years-old. In addition to the sexual abuse, the victim was also repeatedly struck in the head by DESCOTEAUX, at one point causing hearing loss. The minor victim’s mother was a deployed service member periodically serving overseas at the time of DESCOTEAUX’s crimes.

          DESCOTEAUX will be required to register as a sex offender after he is released from prison and will be on federal supervision for the rest of his life.

          The case was investigated by the Cheyenne Police Department, the FBI, and JBLM- Criminal Investigation Division (CID). The U.S. Attorney’s Office for the Western District of Louisiana provided substantial assistance.

          The case is being prosecuted by Assistant United States Attorney Grady J. Leupold, who serves as the Military Liaison for the U.S. Attorney’s Office.

WASHINGTON - Nationally representative studies conclude that nearly 10 percent of older Americans have experienced some form of financial exploitation or fraud in the past year, with some experts asserting that financial exploitation is the most common form of elder abuse. With 10,000 Americans turning 65 each day, the population of Americans who likely will be exposed to elder fraud and abuse is growing significantly.

          The financial loss to older Americans is estimated in the billions of dollars, without accounting for costs to family members and society. Many older victims of fraud or financial exploitation also experience a diminished quality of life and increased mortality.

          The Department of Justice is making assertive efforts to interrupt the scourge of financial exploitation and fraud against older Americans. As part of these efforts, the Department is funding the National White Collar Crime Center (https://www.nw3c.org/) to enhance the ability of state and local law enforcement to respond effectively to complex elder fraud cases.

          In announcing those efforts, Attorney General Jeff Sessions said:

          “The Department of Justice is committed to protecting all Americans from fraud and exploitation. Few things are more despicable than defrauding vulnerable persons. We have to do a better job of addressing this problem. This training will equip our partners in state and local law enforcement to ensure that our seniors receive justice and the criminals who defraud them receive consequences. I applaud the communities chosen for this training and look forward to seeing their results.”

          Through carefully crafted programs, the National White Collar Crime Center will provide training in eight selected communities, with up to 100 law enforcement officers per community, on Financial Crimes against Seniors. This training, developed by the National White Collar Crime Center, will reach up to 800 law enforcement officers, who in turn will share what they have learned with their fellow officers.

          The eight communities selected for this highly sought after training are:

1. Wilmington, Delaware (Delaware Department of Justice)

2. Minneapolis/St. Paul, Minnesota (Minnesota Chiefs Association & Minnesota Sheriff’s Association)

3. Denmark, Tennessee (Madison County Sheriff’s Office)
4. Topeka, Kansas (State of Kansas Office of Attorney General)
5. Hidalgo County, Texas (Hidalgo County Sheriff’s Office)
6. Columbia, South Carolina (South Carolina Law Enforcement Division (SLED))
7. Ada, Oklahoma (Council of Law Enforcement Education and Training (CLEET))
8. King County, Washington (King County Prosecuting Attorney’s Office)

          In addition, the Department of Justice, through its Elder Justice Initiative, is working on multiple other fronts to protect older Americans from financial exploitation and fraud, as well as other forms of elder abuse.

          The Department continues to prosecute aggressively mass mailing fraud schemes, such as lottery and sweepstakes scams, many of which are international in nature and target seniors. The Department also launched 10 regional Elder Justice Task Forces across the country to enhance the ability of federal, state, and local authorities to work together to combat elder financial fraud and to pursue those nursing homes that provide grossly substandard care to their Medicare and Medicaid residents (https://www.justice.gov/elderjustice/task-forces).

          The Department also actively supports state and local efforts to prevent and combat elder abuse by:

• Helping older victims and their families by connecting them to available resources, assistance, and information on its Elder Justice Website (https://www.justice.gov/elderjustice/victims-families-caregivers);

• Advancing understanding of elder abuse through projects like the Elder Abuse Prevention Demonstration Project (www.justice.gov/elderjustice/pr/national-institute-justice-awards-funding-study-elder-abuse);

• Raising public awareness of elder abuse and financial exploitation through the Elder Justice website, webinars, and public meetings (https://www.justice.gov/elderjustice/outreach); and

• Enhancing state and local efforts to combat and prevent elder abuse through the development and dissemination of training materials and resources for prosecutors, law enforcement, civil legal aid workers, victim specialists, and clinicians.

          Check the Law Enforcement Webpage (https://www.justice.gov/elderjustice/law-enforcement-1) periodically for these and other materials as they become available. More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.gov/elderjustice.

          The former Treasurer of a small union in Snohomish County was sentenced today in U.S. District Court in Seattle to five months in prison for theft of union funds, announced U.S. Attorney Annette L. Hayes. PASCALE MCATEE, 58, of Lynnwood, Washington, pleaded guilty in April 2017, admitting that between 2011 and 2015 she embezzled more than $82,903 from a transportation union in Snohomish County. At sentencing U.S. District Judge James L. Robart said you “embezzled $75,000 from a bunch of lower paid employees who were (your) friends. . . . Stripped of everything else, that’s what this is about.”

          According to records filed in the case, MCATEE was elected Treasurer of SMART LU 161 in 2010. The union was formed in 2008 and represents approximately 90 members, mostly working in transportation jobs in the Snohomish County area. Members pay approximately $47 a month in union dues. MCATEE embezzled the money transferring funds from the union bank accounts to her own bank account and her husband’s bank account, and by writing checks and depositing them to her personal account. Over the four years she embezzled more than $53,000 via wire transfer and wrote herself checks totaling more than $27,000. A union investigation uncovered the thefts in 2015. In 2016, while the law enforcement investigation was underway, MCATEE led an effort to decertify the union in an apparent effort to avoid criminal charges. The grand jury returned an indictment in December 2016.

          The embezzlement has demoralized union membership and resulted in the union being hit with penalties for overdue taxes.

          Judge Robart ordered MCATEE to be on supervised release for three years following her prison term.

          The case was investigated by U.S. Department of Labor’s Office of Labor Management Standards. The case was prosecuted by Assistant United States Attorney André Peñalver.

          Eight people tied to a ten-state theft and bank fraud scheme were indicted today by a grand jury in Seattle on 18 federal crimes including bank fraud, money laundering, and aggravated identity theft, announced U.S. Attorney Annette L. Hayes. Five of the eight defendants have been arrested, and another is already serving a prison sentence in Nevada and will be arraigned on the indictment on August 31, 2017, and September 7, 2017.

          According to the indictment and other records filed in the case, the theft ring was led by ALEXANDRA SHELBURNE, 24, and DARRYL KILGORE, 55, who used the proceeds of their scheme to buy and flip homes in the greater Los Angeles area, further laundering their stolen money. Between July 2014, and July 2017, the couple would prowl the aisles of grocery stores throughout the country, including the greater Seattle area. After creating a distraction, they would steal the victim’s wallet and immediately use the credit and debit cards, the identification documents, and blank checks for fraud. The couple, who were arrested at their home in Las Vegas, Nevada, recruited other co-conspirators to pose as the victims at area banks to make large cash withdrawals or obtain cash advances. In western Washington alone the fraud totaled more than $230,000. In the states of Minnesota, Oregon, California, Michigan, Texas, New Jersey, Colorado, Ohio, and Utah the fraud totaled more than $500,000.

          Other defendants indicted in the case are ROBIN PERRY, 54 of Las Vegas, Nevada, AMBER OKHOMINA, 35 of Ontario, Canada, FREDERICK JACKSON, 62 of Los Angeles, California, SUSAN KOLLER 49, of Toronto, Canada, STACIA QUARTO, 63 of Albuquerque, New Mexico, and ELIZABETH EVANS, 43, of Las Vegas, Nevada.

          All of the defendants are charged with Conspiracy to commit bank fraud which is punishable by up to 30 years in prison and a $1,000,000 fine. KILGORE and SHELBURNE are charged with eight counts of bank fraud, one count of money laundering conspiracy, and five counts of money laundering. KILGORE and SHELBURNE are both charged with three counts of aggravated identity theft, which carries a mandatory two-year sentence per count on top of any sentence imposed on the other charges. ROBIN PERRY, AMBER OKHOMINA, STACIA QUARTO and SUSAN KOLLER are each charged in one count of aggravated identity theft.

          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 U.S. Secret Service and the Kirkland Police Department. The case is being prosecuted by Assistant United States Attorney Marie Dalton.