Western District of Washington

          A Tacoma, Washington man who stole more than $2.3 million from his employer over a five-year period was sentenced today in U.S. District Court in Seattle to 46 months in prison for wire fraud, announced U.S. Attorney Annette L. Hayes.  TONI ANDERSSON, 37, was ordered to pay $2,294,761 to Expedited Solutions, a freight management company.  At the sentencing hearing U.S. District Judge James L. Robart noted that ANDERSSON had been trusted within the company.  “There are a lot of people out there who we trust to do the right thing and we need to say there is a serious consequence for doing the wrong thing,” Judge Robart said.

            According to records filed in the case, between July 2010 and February 2016 in his role as accounting coordinator for a freight management company, ANDERSSON diverted $2.3 million from company accounts to his own bank account.  ANDERSSON did this by a variety of means: creating false entries in accounting software so that payments made to himself appeared to be payments to vendors; creating of checks made out to himself and drawn on company bank accounts; using the signature stamp of the company owner to sign checks; and transferring funds between various company accounts to hide the embezzlement.  In all there were more than 400 different fraudulent transactions over the five-year period. After an external audit uncovered the scheme, the audit revealed that ANDERSSON had also failed to forward company employee’s 401k payments to their retirement plans – a loss to the employees of more than $70,000.  Those funds were later paid back by the company’s owner.

            The embezzlement had a devastating impact on the company and its owner forcing him to layoff some employees, sell his home and draw on some of his retirement savings.

            The financial investigation revealed that ANDERSSON used the funds for travel, to open a small coffee shop/café that ultimately failed, and for shopping sprees of as much as $2000 per day.  ANDERSSON purchased and remodeled an expensive home and bought a boat and luxury car.  He also paid to enroll in an online law school.

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

          Eleven people were arrested yesterday in Washington and Nevada in connection with a large drug smuggling and distribution ring operating in four western Washington counties, announced U.S. Attorney Annette L. Hayes.  An additional person was already in immigration custody.  The arrests coincided with the execution of 24 court-authorized search warrants for properties located in King, Snohomish, Skagit, Whatcom, Yakima, and Franklin Counties.  The searched locations included a restaurant in Everett, an auto body shop in Sedro Wooley, and a car dealership in Mount Vernon, Washington.  Defendants made their initial appearances in U.S. District Court in Seattle today.  Those arrested in Nevada will make their initial appearances there before being transferred to the Western District of Washington.

            Ten of the defendants arrested to date are charged in an indictment returned October 26, 2016 with distributing heroin, cocaine and methamphetamine in King, Snohomish, Skagit and Whatcom Counties.  Additionally, two defendants are charged by criminal complaint. 

            Over the course of the six-month investigation leading up to the coordinated searches, law enforcement seized eight kilos of methamphetamine, two kilos of cocaine and nearly a kilo of heroin.  Law enforcement also seized more than $117,000 in cash.  Yesterday alone, agents seized an additional two kilos of cocaine, more than $180,000 cash and more than 20 firearms – including a loaded AK47.

            These defendants are currently in custody:

                        ERIC MARQUEZ; Mt. Vernon, WA - Age 24

                        HECTOR HUGO GARCIA-GUTIERREZ; Mt. Vernon, WA - Age 26

                        BALTAZAR REYES-GARCIA; Camano Island, WA - Age 44

                        ANGEL SERRANO-CARRENO; Mt. Vernon, WA – Age 29

                        HECTOR CONTRERAS-IBARRA; Pasco, WA – Age 32

                        IVAN BETANZOS-TORRES; Mt. Vernon, WA – Age 26

                        PABLO CATANO; Renton, WA, - Age 36

                       EDGAR GONZALEZ-TORREZ; Mt. Vernon, WA – Age 21

                       OSCAR LUNA-MERCADO; Everett, WA – Age 31

                       MIGUEL VALDOVINOS-CISNEROS; Kent, WA – Age 18

                       RIGOBERTO CASTELLANO-HERRERA, Mt. Vernon, WA – Age 26

                       ANTONIO GOMEZ, Burien, WA – Age 28

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

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

          NICHOLAS HOGAN, 36, a former Tukwila and Snoqualmie Police Officer pleaded guilty today in U.S. District Court in Seattle to Deprivation of Rights Under Color of Law for an attack on a handcuffed man at a Seattle hospital, announced U.S. Attorney Annette L. Hayes.  Under the terms of his plea agreement he is prohibited from seeking employment as a police officer or security guard for fifteen years.  U.S. District Judge John C. Coughenour is scheduled to sentence HOGAN on January 27, 2017.

            “This defendant betrayed the trust we place in police officers to use only necessary and appropriate force,” said U. S. Attorney Annette L. Hayes.  “Hogan pepper-sprayed a person who was already detained in handcuffs and restraints – and said he did so simply because the man ‘got mouthy.’  Law enforcement officers are given broad powers to protect and serve the public – as most honorably do.  When these powers are misused, those responsible will be held to account.”

            According to the plea agreement, on May 20, 2011, HOGAN responded to a report of a fight on Pacific Highway South in Tukwila.  A man was taken into custody on a misdemeanor warrant, but because of his injuries the King County Jail instructed HOGAN to take the man to Harborview.  HOGAN admits in his plea agreement that the man was handcuffed and refusing to get out of the patrol car.  HOGAN physically removed the man from the car and when the man grabbed HOGAN’s arm, HOGAN pulled away and repeatedly struck the man in the head with his knee.

          Taking the man into the Harborview emergency room, HOGAN repeatedly shoved the man until he fell and then HOGAN dropped on top of him restraining him with a knee in his back.  The man was placed on the gurney in four point restraints so that he could not move his arms or legs.  While the man was in a treatment area and surrounded by a curtain, HOGAN remained alone with him.  HOGAN used pepper spray on the restrained man.  In the plea agreement HOGAN admits he knew that the spray was not necessary or reasonable under the circumstances.

          HOGAN faces up to a year in prison and a $100,000 fine.  Under the terms of the plea agreement HOGAN surrenders any law enforcement commission and agrees not to seek reinstatement of any law enforcement commission, or seek a new law enforcement commission, or seek employment in any law enforcement agency or law enforcement related employment, including, but not limited to any city, county, state, or federal policing or corrections positions, or that of a private security guard, or any position that requires the carrying of a firearm, for a period of 15 years. 

          The case was investigated by the FBI.  The case was prosecuted by Assistant United States Attorney Bruce Miyake for the Western District of Washington and Trial Attorenys Rose Gibson and Jared Fishman of the Civil Rights Division for the Department of Justice.

          A 22-year-old Tumwater, Washington man was sentenced today in U.S. District Court in Seattle to four years in prison for his scheme to distribute drugs via the dark web, announced U.S. Attorney Annette L. Hayes.  TRISTAN SIMPSON BRENNAND was arrested in December 2015, following an investigation that revealed he was distributing ecstasy on hidden websites such as “Agora” and “Evolution.”  Those websites were modeled after the Silk Road website which was a marketplace for illegal substances.  U. S. District Judge Robert S. Lasnik imposed three years of supervised release to follow the prison term.

          “The dark web provides drug dealers and other criminals with the 21st century equivalent of hidden corners and back alleys,” said U.S. Attorney Annette L. Hayes.  “Drug dealers think they can use the dark web to hide their tracks and make a living off the misery of others.  What this case demonstrates is that the dark net isn’t really “dark” to law enforcement.  I commend the federal and state agencies involved in this investigation for developing the evidence that resulted in this defendant being held to account for his crimes.”

            According to records filed in the case, BRENNAND came to the attention of law enforcement in January 2015 with reports he was dealing drugs on various websites.  In March 2015, law enforcement executed a court authorized search warrant on BRENNAND’s residence and seized MDMA (Ecstasy), more than $33,000 in cash, scales and other drug dealing paraphernalia.  Law enforcement also recovered various electronic devices which contained evidence of BRENNAND’s online drug dealing.

            Following BRENNAND’s arrest in December 2015, he admitted ongoing drug use and was referred for treatment.  When BRENNAND reported to the treatment facility he had Xanax MDMA, and Suboxone strips that he apparently planned to sell to others seeking treatment at the  facility.  Even after BRENNAND was removed from the treatment facility and taken to the Federal Detention Center at SeaTac, he continued to direct a woman outside the prison to collect his drug debts and attempt to smuggle illegal drugs into the facility.

            The case was investigated by the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA) and the Washington State Patrol.

            The case was prosecuted by Assistant United States Attorney Thomas Woods.

          A 34-year-old former Las Vegas man was sentenced today in U.S. District Court in Seattle to 198 months in prison and ten years of supervised release for sex trafficking involving juveniles and adults, announced U.S. Attorney Annette L. Hayes.  ROBERT RYAN POWELL was convicted of two counts of transportation of a juvenile with intent to engage in prostitution, and one count of sex trafficking an adult victim by force, fraud and coercion.  POWELL was convicted following a seven-day trial in June 2016.  At sentencing U.S. District Judge Richard A. Jones said, “You were a predator of young women, whether teen-agers or adults…. Pimping was your chosen lifestyle….  Today you ask for compassion when you failed to demonstrate any compassion for your victims.”

            “This defendant preyed on vulnerable teens and adult women, callously exploiting them for his financial gain,” said U.S. Attorney Annette L. Hayes.  “Without hesitation, he used violence and threats to control them.  The lengthy prison sentence imposed today sends a clear message and will ensure that others will not fall victim to his predatory ways.” 

          According to records filed in the case and testimony at trial, between January 2014 and January 2015, POWELL used force, fraud and coercion to keep an adult female working for him as a prostitute as he transported her across various western states including Nevada, Arizona, New Mexico, Utah, Colorado, South Dakota, Idaho and Washington.  POWELL used physical and emotional abuse to keep the woman working as a prostitute and supplying him with all of her earnings. 

            In August 2014, POWELL recruited two juveniles in the Seattle area to work for him as prostitutes.  POWELL transported the two juveniles from Washington to San Jose, California, where he forced them to work as prostitutes and provide him with their earnings.  He then abandoned them in San Jose, where the girls were recovered by law enforcement.  POWELL was arrested in January 2015 in Rapid City, South Dakota where he was sex trafficking two adult women.  He was returned to Western Washington for prosecution.

          POWELL used Backpage.com to advertise the adult female for prostitution dates and used Backpage.com and other social media sites to recruit his victims to work for him as prostitutes.

          POWELL was previously convicted in 2007 of Attempted Pandering in Clark County, Nevada, and in 2009 of Assault with a Deadly Weapon in Orange County, California.

          Judge Jones set a January 2017 hearing to determine the amount of restitution POWELL will be required to pay to his victims.

          The case was investigated by the Seattle Police Department and the FBI’s Child Exploitation Task Force, with investigative assistance provided by the San Jose Police Department, Rapid City Police Department, the South Dakota Criminal Investigations Division, the Las Vegas Metropolitan Police Department, Orange Police Department, and the Los Angeles Police Department.  The case was prosecuted by Assistant United States Attorneys Kate Crisham and Amy Jaquette. 

          United States Attorney Annette L. Hayes announced today that Assistant United States Attorney (AUSA) Arlen Storm will lead the Office’s work in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.  AUSA Storm is the District Election Officer (DEO) for the Western District of Washington, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with the Justice Department in Washington D.C.

          United States Attorney Annette L. Hayes said, “Every citizen has the right to vote without interference or discrimination, and to have that vote counted without fraud in the electoral process.  The Department of Justice will act promptly and aggressively to protect the integrity of the election.”

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

          Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts of intimidation or harassment.  For example, actions designed to interrupt or intimidate voters by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

          The right to vote is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise be allowed to exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses including on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Annette L. Hayes stated that AUSA/DEO Storm is on duty while voting is ongoing in Western Washington.  He can be reached by the public at the following telephone number: (253) 428-3807.

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

          Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, D.C. by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

          It is imperative that anyone who has specific information about discrimination or election fraud provide that information in a timely manner to the U.S. Attorney’s Office, the FBI, or the Civil Rights Division.

          SEATTLE – As part of the consent decree between the Justice Department and the city of Seattle, a scientific poll conducted by national polling firm Anzalone Liszt Grove Research was filed today with the U.S. District Court for the Western District of Washington.  The poll, which was commissioned by the federal monitor with input from the parties, measures community attitudes towards the Seattle Police Department (SPD) and found that SPD’s performance ratings continue to improve.

          According to the poll, the number of people who approve of SPD has increased to 72 percent, up from 60 percent in 2013 and 64 percent in 2015.  Much of that improvement is among African Americans (49 percent approval in 2013 to 62 percent now) and Latinos (54 percent in 2013 to 74 percent now).  At the same time, SPD’s disapproval rating has decreased from 34 percent in 2013 to 20 percent in 2016, and fewer people are reporting troubling interactions between officers and Seattle residents.

          The poll follows similar surveys conducted in 2013 and 2015, which included input from the Community Police Commission. 

          “Public trust is a necessary foundation for lasting and effective police reform,” said U.S. Attorney Annette L. Hayes.  “The good news is that this most recent survey shows continued positive trends among many Seattle residents.  The survey results showing increased approval of SPD, and fewer reported incidents of excessive force and bias policing are especially encouraging in light of the high-profile incidents and difficult community-police relationships in other parts of the country.  That said, it is important to recognize the continued differences in attitudes and experience that the survey shows in communities of color here in Seattle.  As part of the consent decree driven reform process, the hard work of identifying and addressing any unwarranted disparate impacts on these communities must continue.  I am grateful for the continued dedication of so many SPD officers and community members – including the work of the Community Police Commission and other community organizations – to fostering an environment of openness, mutual trust and respect.  The work is hard but absolutely essential to the life of our city.”

          “Constitutional, community-oriented policing strengthens public trust,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “The encouraging signs of improved community-police relations in Seattle, including in communities of color, show what can happen when residents and officers engage in the tough, vital work of rebuilding trust and solving problems.  We look forward to working with Seattle as it continues to implement police reform and enhance public trust.”

          Anzalone Liszt Grove Research conducted 700 live cellphone and landline telephone interviews with adults 18 and older in Seattle, with an additional 95 interviews among Latinos and 105 interviews among African Americans. 

Survey Finds Increased Approval Rating for Seattle Police Department

As part of the consent decree between the Justice Department and the city of Seattle, a scientific poll conducted by national polling firm Anzalone Liszt Grove Research was filed today with the U.S. District Court for the Western District of Washington.  The poll, which was commissioned by the federal monitor, measures community attitudes towards the Seattle Police Department (SPD) and found that SPD’s performance ratings continue to improve.

According to the poll, the number of people who approve of SPD has increased to 72 percent, up from 60 percent in 2013 and 64 percent in 2015.  Much of that improvement is among African Americans (49 percent approval in 2013 to 62 percent now) and Latinos (54 percent in 2013 to 74 percent now).  At the same time, SPD’s disapproval rating has decreased from 34 percent in 2013 to 20 percent in 2016, and fewer people are reporting troubling interactions between officers and Seattle residents.  The poll follows similar surveys conducted in 2013 and 2015. 

“Constitutional, community-oriented policing strengthens public trust,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “The encouraging signs of improved community-police relations in Seattle, including in communities of color, show what can happen when residents and officers engage in the tough, vital work of rebuilding trust and solving problems.  We look forward to working with Seattle as it continues to implement police reform and enhance public trust.”

“Public trust is a necessary foundation for lasting and effective police reform,” said U.S. Attorney Annette L. Hayes of the Western District of Washington.  “The good news is that this most recent survey shows continued positive trends among many Seattle residents.  The survey results showing increased approval of SPD, and fewer reported incidents of excessive force and bias policing are especially encouraging in light of the high-profile incidents and difficult community-police relationships in other parts of the country.  That said, it is important to recognize the continued differences in attitudes and experience that the survey shows in communities of color here in Seattle.  As part of the consent decree driven reform process, the hard work of identifying and addressing any unwarranted disparate impacts on these communities must continue.  I am grateful for the continued dedication of so many SPD officers and community members – including the work of the Community Police Commission and other community organizations – to fostering an environment of openness, mutual trust and respect.  The work is hard but absolutely essential to the life of our city.”

Anzalone Liszt Grove Research conducted 700 live cellphone and landline telephone interviews with adults 18 and older in Seattle, with an additional 95 interviews among Latinos and 105 interviews among African Americans. 

Ship Discharged Oily Waste on Voyage from China to Seattle; False Log Books given to Coast Guard Inspectors

The companies that own and operate a Greek shipping vessel were sentenced today in U.S. District Court in Seattle, Washington, to a $1.3 million fine for the dumping of oily waste at sea, announced U.S. Attorney Annette L. Hayes for the Western District of Washington.  The ship operator, Angelakos (Hellas) S.A., and the ship owner, Gallia Graeca Shipping Ltd., were found guilty in June 2016 of violating the Act to Prevent Pollution from Ships, Falsification of Records in a Federal Investigation and engaging in a Scheme to Defraud the United States.   In imposing the monetary penalty, U.S. District Judge John C. Coughenour for the Western District of Washington said he hoped the sanctions “would resonate and cause other companies to pause when they think about creating a corporate culture that encourages deception.”

“These companies promoted a culture of lies and lawlessness that left a trail of pollution in the Pacific Ocean,” said U.S. Attorney Hayes.  “Knowing that the Coast Guard was going to do an inspection of their shipping vessel, corporate managers allowed the Chief Engineer to present falsified documents.  The significant fines imposed in this case send a clear message that those who spoil our environment by putting their business interests ahead of our laws will be held responsible.”

According to records filed in the case and testimony at trial, a cargo ship named the M/V Gallia Graeca travelled from China to Seattle in October 2015.  During the voyage, a pollution-control device known as an oil water separator was inoperable.  On Oct. 16, 26 and 27, 2015, the defendants discharged overboard approximately 5,000 gallons of oily bilge water.  The defendants concealed these incidents from the Coast Guard by making false statements to inspectors and making false statements and omissions in the ship’s oil record book.  When Coast Guard inspectors asked the engineers to operate the oil water separator during the inspection, the engineers did so in such a way that the equipment appeared to be working properly even though it was not.

When Coast Guard inspectors examined the oil water separator they found its filters were clogged with oil and found oil residue in the overboard discharge piping.  Records indicated the oil water separator had not been serviced for months prior to the voyage from China.  The defendants presented the Coast Guard with an official oil record book stating that bilge water had not been discharged during the voyage to Seattle.  However, the Coast Guard investigation discovered evidence that oily water had been discharged into the sea three times on its voyage from China.

Calling it “a voyage of deception and pollution,” prosecutors argued that the engineers tried to hide the pollution from the Coast Guard to avoid having the ship detained in Seattle.  Keeping the ship on schedule was a benefit to the owners and operators who had a contract to move $25 million in goods out of Seattle.  Shipping company executives had been in contact with the engineers about how they should present the log book for the Coast Guard inspection.

“Through strong partnerships with the Department of Justice, the U.S. Attorney’s Office and our Coast Guard Investigative Service, this case demonstrates our commitment to hold accountable shipping companies engaged in illegal activities,” said Captain Joe Raymond, Coast Guard Captain of the Port Puget Sound.  “The Coast Guard will protect our marine environment through coordination with international, national, regional and local partners and will promote sustainable development of our nation’s ocean resources by enforcing pollution prevention laws and regulations and maintaining a robust vessel inspection program.”

The companies were placed on five years of probation and required to have environmental compliance plans in place which will ensure they are abiding by anti-pollution policies and regulations.

In addition to the $1.3 million fine, U.S. District Judge Coughenour ordered a $200,000 community service payment to be shared between the National Fish and Wildlife Foundation and the National Parks Foundation.  The National Fish and Wildlife Foundation is a congressionally-chartered non-profit organization that works to “further the conservation and management of fish, wildlife, plants and other natural resources.”  The payment will go to fund marine restoration and preservation projects in the Pacific Ocean, the site of defendants’ pollution.  The National Parks Foundation does significant ocean beach clean-up – particularly on the ocean beaches of Washington’s Olympic Peninsula.

The two engineers who operated the ship’s equipment and falsified the log books were sentenced to short prison terms before returning to Greece.

The case is being prosecuted by Assistant U.S. Attorneys Seth Wilkinson and Matthew Diggs and by Special Assistant U.S. Attorney Stephen Bor.  Special Assistant U.S. Attorney Bor is an attorney with the U.S. Coast Guard specially appointed to prosecute criminal cases in federal court.

The case is being investigated by the U.S. Coast Guard and the Environmental Protection Agency Criminal Investigation Division.

          The companies that own and operate a Greek shipping vessel were sentenced today in U.S. District Court in Seattle to a $1.3 million fine for the dumping of oily waste at sea, announced U.S. Attorney Annette L. Hayes.  The ship operator, ANGELAKOS (HELLAS) S.A., and the ship owner, GALLIA GRAECA SHIPPING LTD, were found guilty in June 2016 of violating the Act to Prevent Pollution from Ships, Falsification of Records in a Federal Investigation, and engaging in a Scheme to Defraud the United States.   In imposing the monetary penalty, U.S. District Judge John C. Coughenour said he hoped the sanctions “would resonate and cause other companies to pause when they think about creating a corporate culture that encourages deception.”

          “These companies promoted a culture of lies and lawlessness that left a trail of pollution in the Pacific Ocean,” said U.S. Attorney Annette L. Hayes.  “Knowing that the Coast Guard was going to do an inspection of their shipping vessel, corporate managers allowed the Chief Engineer to present falsified documents.  The significant fines imposed in this case send a clear message that those who spoil our environment by putting their business interests ahead of our laws will be held responsible.”

            According to records filed in the case and testimony at trial, a cargo ship named the M/V Gallia Graeca travelled from China to Seattle in October 2015.  During the voyage, a pollution-control device known as an oil water separator was inoperable.  On October 16, 26 and 27, 2015, the defendants discharged overboard approximately 5,000 gallons of oily bilge water.  The defendants concealed these incidents from the Coast Guard by making false statements to inspectors, and making false statements and omissions in the ship’s oil record book.  When Coast Guard inspectors asked the engineers to operate the oil water separator during the inspection, the engineers did so in such a way that the equipment appeared to be working properly even though it was not.

            When Coast Guard inspectors examined the oil water separator they found its filters were clogged with oil and found oil residue in the overboard discharge piping.  Records indicated the oil water separator had not been serviced for months prior to the voyage from China.  The defendants presented the Coast Guard with an official oil record book stating that bilge water had not been discharged during the voyage to Seattle.  However, the Coast Guard investigation discovered evidence that oily water had been discharged into the sea three times on its voyage from China.

            Calling it “a voyage of deception and pollution,” prosecutors argued that the engineers tried to hide the pollution from the Coast Guard to avoid having the ship detained in Seattle.  Keeping the ship on schedule was a benefit to the owners and operators who had a contract to move $25 million in goods out of Seattle.  Shipping company executives had been in contact with the engineers about how they should present the log book for the Coast Guard inspection.

          “Through strong partnerships with the Department of Justice, the U.S. Attorney's Office and our Coast Guard Investigative Service, this case demonstrates our commitment to hold accountable shipping companies engaged in illegal activities,” said Captain Joe Raymond, Coast Guard Captain of the Port Puget Sound. “The Coast Guard will protect our marine environment through coordination with international, national, regional and local partners, and will promote sustainable development of our Nation's ocean resources by enforcing pollution prevention laws and regulations and maintaining a robust vessel inspection program.”

          The companies were placed on five years of probation and required to have environmental compliance plans in place which will ensure they are abiding by anti-pollution policies and regulations.

          In addition to the $1.3 million fine, Judge Coughenour ordered a $200,000 community service payment to be shared between the National Fish and Wildlife Foundation and the National Parks Foundation.  The National Fish and Wildlife Foundation is a congressionally-chartered non-profit organization that works to “further the conservation and management of fish, wildlife, plants, and other natural resources.”  The payment will go to fund marine restoration and preservation projects in the Pacific Ocean, the site of defendants’ pollution. The National Parks Foundation does significant ocean beach clean-up – particularly on the ocean beaches of Washington’s Olympic Peninsula.

            The two engineers who operated the ship’s equipment and falsified the log books were sentenced to short prison terms before returning to Greece.

            The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Matthew Diggs and by Special Assistant U.S. Attorney Stephen Bor.  Mr. Bor is an attorney with the United States Coast Guard specially appointed to prosecute criminal cases in federal court.

          The case is being investigated by the U.S. Coast Guard and the Environmental Protection Agency Criminal Investigation Division.

          Three people involved in an elaborate scheme to obtain narcotic drugs by using forged prescriptions both online and in person now face federal charges, announced U.S. Attorney Annette L. Hayes.  The conspirators used stolen DEA registration numbers to create phony prescriptions while using various online tools to make it appear the prescriptions were from legitimate providers.  A criminal complaint filed in the case reveals the defendants obtained thousands of pills of narcotic pain medication, such as oxycodone, using the forged prescriptions.

            “These investigations are critically important as our country experiences an epidemic of addiction, overdose and death due to the abuse of opioid painkillers,” said U.S. Attorney Annette L. Hayes.  “Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing those from motor vehicle crashes or firearms.  I commend the Drug Enforcement Administration’s Tactical Diversion Squad that investigated this scheme to stem the flow of illegally obtained narcotics.”

            According to the complaint filed in the case, law enforcement began investigating the forgery ring in January 2016 following reports of an attempt to fill a forged prescription for oxycodone tablets at a Walgreens in Tacoma, WA.  Investigators determined that the ring had created false profiles for legitimate physicians on websites such as healthgrades.com and patientfusion.com, and by using those profiles they had made it appear the prescriptions had come from those doctors.  If a pharmacy questioned the prescription, they would call or email the contact information on the prescription or the websites, where a co-conspirator would assure them the prescription was legitimate.

            Evidence uncovered in the investigation revealed that one or more of the conspirators appear to have gained unauthorized access to online-prescription delivery systems, which allowed them to send digital prescriptions to pharmacies in the victim doctors’ names.

            Those arrested in connection with the scheme include:

ERIK ROAN, 31, of Tacoma, Washington

CHRISTOPHER LOVATA, 26, of Kent, Washington

LEA ESPY, 49, of Auburn, Washington.

            ROAN, LOVATA and ESPY are each charged with three counts of obtaining a controlled substance by misrepresentation, fraud, forgery deception or subterfuge.  Each of the charges is punishable by up to 4 years in prison and a $250,000 fine.

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

            The case is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad which contains task force officers from Tacoma and Seattle Police Departments and the Washington State Patrol.  The case is being prosecuted by Assistant United States Attorney Siddharth Velamoor. 

          The former owner of a company that provided federally-mandated training for construction firms working with asbestos pleaded guilty today to falsifying documents as part of a scheme to violate the Asbestos Hazard Emergency Response Act, announced U.S. Attorney Annette L. Hayes.  ISAAC COLE, 54, of Kent, Washington, owned and operated Cole and Associates, Inc., a business licensed by Washington State to provide asbestos training courses for asbestos workers and supervisors in exchange for a course enrollment fee.  COLE admitted in his plea agreement that he took additional fees to provide falsified certifications to people he knew had not actually taken the course.  Sentencing before U.S. District Judge John C. Coughenour is scheduled for January 13, 2017.

            “Asbestos is a dangerous substance, which is why state and federal authorities require those who work with it to receive annual training on how to safely handle it,” said U.S. Attorney Annette L. Hayes.  “This defendant put workers and the public at risk by selling false certifications for asbestos training.  Like this defendant, those who flout our environmental laws will be held to account.”             

          Cole and Associates, Inc. was licensed from 1998 to the present to provide asbestos training courses.  According to the plea agreement, between 2013 and 2016, ISAAC COLE caused the company to certify that various asbestos workers had successfully completed required safety courses when they had not done so.  COLE required workers seeking these fraudulent course certifications to pay an additional fee beyond the fee Cole and Associates charged students who actually attended the classes.  After receiving these payments, COLE directed his employees to certify to L&I that the asbestos worker had attended the federally-mandated training program, when in fact COLE knew the asbestos worker had not undergone any of the training.  COLE encouraged the participants to claim they had attended training on dates when they were on vacation (rather than on dates when they were working) so that L&I could not compare work records to class attendance records and determine that the participants were making false reports.  At least four Cole and Associates employees participated in this scheme at COLE’s instruction.  COLE is no longer associated with the business.

            “The health threats posed by asbestos exposure are well-known and real, and any business that issues asbestos abatement training certificates without providing legitimate training puts both workers and the public at risk,” said Jeanne Proctor, Special Agent-in-Charge of EPA’s Criminal Investigation Division in the Pacific Northwest. “EPA will continue to hold accountable any firm that illegally pursues financial gain without regard for people’s health.”

            “I will not tolerate people who flout environmental laws to make a quick buck,” said Attorney General Bob Ferguson.  “My office, working with our state and federal partners, will hold accountable those who threaten the environment and public health.”

          “Asbestos is extremely hazardous to workers and the public. That’s why training on the proper ways for workers to safely handle it is critical and required,” said Anne Soiza, head of L&I’s Division of Occupational Safety and Health. “This sham training put people at risk.  Our hope now is that nobody affected will develop asbestos-related cancer or another fatal disease because of this criminal carelessness.”

                Under the terms of the plea agreement the government will recommend a sentence of probation, and may seek fines or other penalties.  COLE has agreed that as a condition of his probation he will have no further participation in the asbestos training business. 

                The case was investigated by the Environmental Protection Agency (EPA) and the Washington State Department of Labor and Industries.  The Washington State Attorney General’s Office assisted with the investigation.

            The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.

          An enrolled member of the Tulalip Tribes was sentenced October 7, 2016 in U.S. District Court in Seattle to nine years in prison and four years of supervised release for seven charges involving his repeated assault of an intimate partner, announced U.S. Attorney Annette L. Hayes.  BRIAN H. JONES, SR., 47, of Tulalip and Marysville, Washington, was convicted of assault by strangulation, assault resulting in serious bodily injury, witness tampering, felon in possession of a firearm, possession of a firearm in furtherance of a crime of violence and two counts of assault with a dangerous weapon following a six-day jury trial.   At sentencing U.S. District Judge Richard A. Jones noted the “horrific circumstances” of JONES’ criminal acts and the need to protect others given his continuous history of violence.

          “Violence of this kind and attempts to subvert our justice system cannot be tolerated in any of our communities,” said U. S. Attorney Annette L. Hayes.  “I commend law enforcement for its diligent investigation in this case.  We take seriously our responsibility to address domestic violence in our tribal communities, and will do all that we can to hold defendants to account for the physical and psychological harms they cause.”
 

          According to records filed in the case and testimony at trial, JONES assaulted both his ex-wife and her then husband in December 2014, holding them at gun point.  In April 2015, JONES assaulted his ex-wife a second time, strangling her and beating her.  Medical records indicate JONES’ ex-wife suffered injuries to her head, arms, legs, and throat trauma.  Following his arrest in both assaults, records reveal JONES repeatedly contacted his ex-wife and convinced her to refuse to testify in a tribal court trial, as well as to seek a dismissal of the federal charges or recant in federal court.  Prosecutors used evidence including the ex-wife’s prior sworn statements, medical records, and other witness statements to prove JONES’ guilt beyond a reasonable doubt. 

          JONES is also a felon having been previously convicted of a state felony crime, and is thus prohibited from possessing firearms. 

          JONES has been in federal custody since his arrest on June 3, 2015. 

          The case was investigated by the Tulalip Tribal Police and the FBI.  The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and J. Tate London.

          The final member of a large bank fraud ring responsible for nearly a million dollars in fraud was sentenced last week in U.S. District Court in Seattle, announced United States Attorney Annette L. Hayes.  SHAWN ANDRE TURNER, 26, of Kent, Washington was sentenced October 7, 2016 to 25 months in prison and 5 years of supervised release.  TURNER is the last of five defendants sentenced to prison terms of more than two years.  In all, ten defendants were indicted for a fraud scheme involving seven different financial institutions.  Between November of 2010 and February 2015, the co-schemers used 219 different bank accounts to steal more than $987,000 from the banks.  U.S. District Judge Richard A. Jones imposed the sentence.

          According to records in the case, the defendants used stolen and forged checks to make fraudulent deposits into various bank accounts.  Using debit cards, the co-schemers would withdraw large amounts of cash before the bank determined the checks used to inflate the balance were no good.  Many of the people whose bank accounts were inflated were complicit in the fraud, allowing the co-schemers to use their debit cards.  According to law enforcement records, many of the checks were stolen in car prowls and then used for the fraud.  Others were fictitious, using otherwise legitimate account information on fabricated checks.  The victim banks include: Bank of America, Boeing Employees Credit Union (BECU), TwinStar Credit Union, Wells Fargo Bank, Sound Credit Union, Key Bank, and Banner Bank.  All are federally insured financial institutions.

            TURNER was responsible for fraud on 15 different bank accounts, causing a loss of about $80,000.  TURNER pleaded guilty to three counts of bank fraud and aggravated identity theft on April 28, 2016.

            The other defendants previously sentenced by the court include:

Clayton Leon Bias, Jr., 27, Kent, Washington – 2 years in prison   

Relonna Dollinn Ward,  36, Tacoma, Washington –25 months in prison
Calvin Dewayne Davis, 28, Federal Way, Washington – 42 months in prison
Arthur Napoleand Wilcher, 31, Tacoma, Washington – 42 months in prison

            Four other defendants, Okila Ayanna Malayka Ulmer, 33, of Renton, Avery Edward Lee, 34, of Milton, Sephora Quilyn Watkins, 29, of Tacoma, and Johnathan Marquiel Turner, 24, of Federal Way, were responsible for smaller amounts of fraud and were sentenced to brief periods of incarceration and multi-year terms of court supervision.  One defendant successfully completed federal drug court.

          The case was investigated by the U.S. Secret Service and the Pierce County Sheriff’s Office.  The case was prosecuted by Assistant United States Attorney Matthew Hampton.

          The U.S. Department of Justice awarded tribal communities in Western Washington more than $8 million aimed at providing important services to tribal members, announced U.S. Attorney Annette L. Hayes.  The grants come from various programs designed to provide resources for tribal youth, victims of crime and those fighting drug and alcohol addiction.

            “These grant funds go to support programs important to Western Washington Tribal communities,” said U.S. Attorney Annette L. Hayes.  “From drug courts to youth engagement the Department of Justice is supporting innovative programs to improve the lives of those who are members of our twenty-five federally recognized Tribes.”

            Three Tribal communities were awarded grants to enhance youth outreach.  Each of the supported programs is designed by the Tribes to address specific needs in their communities.  The grants include:

• Chehalis Tribes (Oakville, WA) - $346,791 – an engagement program to provide one-on-one support for high-risk youth.
• Stillaguamish Tribe (Arlington, WA)- $339,053- a program to engage youth through cultural activities building on partnerships with Tribal council, elders and leaders.
• Squaxin Island Tribe (Shelton, WA) -$349,909 – A teen engagement program to promote Tribal culture, inclusion, and leadership skills.

          Three Tribal communities received grant funding for drug and alcohol courts and treatment services:

• Lummi Nation (Bellingham, WA) - $480,895 – To establish a Family Drug Treatment Court to develop a comprehensive and effective program for treatment and reunification of families that have been torn apart by drug abuse.
• Lummi Nation -$573,284 – To establish a reentry program for community members who are incarcerated in state or local jails and help reorient them back into the community prior to their release.
• Squaxin Island Tribe - $554,224 – To support a family wellness team to provide services to those who have been involved with courts and substance abuse.
• Chehalis Tribes - $709,862 – To continue the offender reentry program including services to combat drug abuse and domestic violence.

          Four tribes received grant funding to support victims of crime with a comprehensive, collaborative approach including culturally appropriate services for the victims, family and community:

• Skokomish Tribe (Shelton, WA) - $447,040
• Puyallup Tribe - $349,020
• Chehalis Tribes - $287,132
• Stillaguamish Tribe -$372,561

          For additional information on the grants please contact the Office of Justice programs http://ojp.gov/ or the grant recipients.

WASHINGTON, D.C. - Attorney General Loretta Lynch today met with Deputy Chief Carmen Best and Mergitu Argo, chair of SPD's East African Advisory Council, as part of National Community Policing Week and the Obama Administration's commitment to building stronger relationships between law enforcement and the communities they serve.

         At a ceremony presenting the first-ever Attorney General's Awards for Distinguished Service in Community Policing, Seattle was recognized for hosting the Attorney General on her 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and the people they serve.

           Annette L. Hayes, U.S. Attorney for the Western District of Washington, accompanied Best and Argo to Washington, D.C.

          When in Seattle last fall, the Attorney General met with line officers and leadership at SPD's West Precinct; traveled to El Centro de la Raza to meet with the inaugural class of students from the Seattle Youth Employment Program SYEP, an internship program established by the Mayor's office for teenage students enrolled in Seattle public schools; and held a Community Policing Roundtable at the Northwest African American Museum where she solicited feedback from community members about their perception of and interactions with SPD, what they hoped to see as police reform continued, and the lessons they had learned from the consent decree process to date.

          As the Attorney General stated when in Seattle: "Sweeping progress will not occur overnight. But as Seattle's recent experience can attest, real progress is possible-when we engage with one another, when we summon our goodwill and good faith, and when we work collaboratively as partners with a mutual and shared interest in ensuring the safety and security of the communities we call home."

          The U.S. Department of Justice has awarded more than $2 million to government and non-profit entities aimed at protecting and assisting children and youth who are at risk of violence, exploitation and abuse, announced U.S. Attorney Annette L. Hayes.  The grants from the Office of Justice programs will continue some of the good work already underway and provide new services in some key areas.

            “These grants from the Department of Justice provide services to some of the most vulnerable victims in our city and helps law enforcement do important work investigating those who prey on children,” said U.S. Attorney Annette L. Hayes.  “These federal dollars flow to programs that have a track record of addressing critical needs in our community.”

            More than $1 million of the funding goes to two non-profit organizations to assist victims of human trafficking.  Youthcare in Seattle will receive $588,115 to support shelter, education and employment training for sex trafficked youth and young adults ages 12-24.  The grant will also pay for training and partnerships to expand community awareness about human trafficking.  The Seattle Indian Center was awarded $450,000 to assist Native American victims of sex trafficking and increase public awareness and understanding of the damage caused by human trafficking.

            In the area of youth violence prevention, both the City of Seattle and the non-profit Children and Youth Justice Center received grant funding totaling nearly $600,000.  The City of Seattle Youth Violence Prevention Initiative received a $258,000 grant to enhance current efforts to prevent youth violence.  The additional funding expands the program with youth suicide prevention as an important new component.  The Children and Youth Justice Center was awarded $327,729 to continue and enhance its work combatting youth gangs and violent crime throughout King County.

            Finally, the Seattle Police Department’s Internet Crimes Against Children (ICAC) Task Force received $453,540 to continue its work investigating a growing number of technology facilitated crimes against children.  In addition to personnel, the funding will pay for technology upgrades and training for investigators.  The ICAC is a clearing house for tips regarding a variety of child sexual abuse and exploitation crimes throughout western Washington.           

            For more information of DOJ grants please go to the website of the Office of Justice Programs http://ojp.gov/

          The long-time manager of a Hoquiam wood shavings business was convicted today in U.S. District Court in Tacoma of thirteen federal felonies following a six-day jury trial, announced U.S. Attorney Annette L. Hayes.  WILLIS D. “BILL” LONN, JR., 68, of Aberdeen was convicted of nine counts of mail fraud, two counts of income tax evasion, one count of money laundering conspiracy and one count of interstate transportation of stolen property.  The jury deliberated about two hours before returning the guilty verdicts.  U.S. District Judge Benjamin H. Settle scheduled sentencing for January 9, 2017.

            According to records filed in the case and testimony at trial, LONN was a long time manager for Long Beach Shavings Company (LBS).  The company was owned by LONN’s uncle and cousins and was based in California.  The company had one plant in Hoquiam, Washington where it processed wood shavings for use on farms, at horse shows or in pet stores.  LONN had worked at the Hoquiam plant for about a decade when he launched a scheme in the 2000s to steal and sell the wood shavings products for his own enrichment.  LONN did this by selling the shavings directly to customers in Washington and Oregon without turning the proceeds over to the company.  Later in the scheme, LONN arranged to get wood chips for free from a Montesano lumber mill, but he informed the parent company that an entity named M & R Lumber needed to be paid for the wood shavings.  LONN posed as M & R Lumber and created phony invoices to bill LBS for the shavings.  LONN then kept the money.  Between the two schemes LONN obtained more than $1.3 million from LBS.  He was terminated by the company in 2011 when the full scope of the scheme came to light.

            Testimony at trial revealed that LONN never paid income taxes on the ill-gotten gain in tax years 2009 and 2010.  Had LONN reported the income his tax bill for those years would have increased by more than $80,000.

            The case was investigated by the U.S. Postal Inspection Service (USPIS) and the Internal Revenue Service Criminal Investigation (IRS-CI).

            The case was prosecuted by Assistant United States Attorneys Brian D. Werner and Nicholas Manheim.

          Law enforcement agencies in Western Washington are getting nearly $8 million in federal grant funding for a range of projects designed to enhance community safety and improve crime fighting technologies, announced U.S. Attorney Annette L. Hayes.  The funded projects vary in size and scope, but all were proposed by local and state law enforcement based on needs in their departments.  The grants were awarded by the Office of Justice programs in a number of different categories: Forensic Science; Justice Assistance; Criminal History Records Improvement and DNA Backlog Reduction.

            “In awarding these grants the Office of Justice Programs looks for demonstrated need and a clear vision of how federal support can enhance community safety in our neighborhoods,” said U.S. Attorney Annette L. Hayes.  “I congratulate our law enforcement partners who obtained grant funding.”

            State and local law enforcement agencies will receive more than $4.7 million under the Edward Byrne Memorial Justice Assistance program.  The largest grant of $3.4 million is administered by the Washington State Department of Commerce to fund various anti-gang and drug enforcement task forces.  Other local law enforcement grants include:

• Seattle Police - $673,166 – for community policing, equipment and overtime.
• Tacoma Police - $287,469 – for community policing and prosecution programs.
• Snohomish County - $33,664 – for equipment to improve driving and training.
• Everett Police - $45,593 – for video systems and forensic software.
• Marysville Police - $12,956 – for two tracking and narcotics canines.
• Bellingham Police - $39,398 – for conversion of paper records to electronic data and ballistic helmets.
• Kitsap County - $38,053 – for new firearms equipment and technology.
• Bremerton Police - $23,752 – to preserve a community resource specialist position.
• Puyallup Police -$11,115 – for a camera system to enhance security in city parks.
• Thurston County - $25,982 –  for computer equipment used in case records management.
• Olympia Police - $17,168 – for training and leadership development.
• Longview Police - $16,389 – to support the salary of school resource officer.
• Clark County - $91,717 – to enhance community policing, and equipment for officer safety.

          The second group of grants is the Paul Coverdell Forensic Improvement grants. The Washington State Patrol was awarded $187,245 to purchase needed equipment in crime labs across the state (both state and local) and provide additional training to lab employees.  The grant is aimed at reducing some of the backlog in lab reports.  The Seattle Police Department also received a $249,999 grant to implement an electronic data system for its Latent Print Unit.

            Finally, the Washington State Patrol received a number of grants aimed at improving forensic data collection and testing:

• WSP Crime Lab – $1,585,019 for equipment and overtime to reduce the time delay to process DNA in case submissions and to get DNA into the national database.
• WSP - $421,269 to pay for post-conviction testing of DNA to exonerate the innocent.
• WSP -$569,199 – to update criminal history records in the state database and the National Crime Information Center.

         The Coverdell National Forensic Sciences Act of 2000 was named in memory of Georgia Senator Paul Coverdell who fought tirelessly for better support for forensic science labs.  The Byrne Grants are named in honor of New York City Police Officer Edward R. Byrne, who was killed in the line of duty on February 26, 1988.  Officer Byrne was just 22-years-old.

          Additional information about each grant should be available from the grant recipient.  

          A prison guard at the Washington State Monroe Correctional Complex was arrested at the prison today on a federal complaint alleging he accepted bribes for smuggling contraband into the prison, announced U.S. Attorney Annette L. Hayes.  MICHAEL W. BOWDEN, 31, of Everett, Washington is charged with three counts of extortion under color of official right and one count of attempted distribution of methamphetamine.  The arrest follows a six month FBI investigation.  BOWDEN will make his initial appearance on the criminal complaint in U.S. District Court in Seattle at 2:00 PM tomorrow, September 29, 2016.

            “Our state prisons are no place for illegal drugs and other contraband,” said U.S. Attorney Annette L. Hayes.  “The Washington State Department of Corrections and the FBI have worked diligently to uncover sources of contraband flowing into the Monroe Correctional Complex.  This arrest should send a clear message that anyone involved in smuggling prohibited items into our state prison system will face serious consequences for their criminal conduct.”

            According to the criminal complaint, the Department of Corrections Intelligence and Investigations Unit asked the FBI to become involved in the investigation of contraband smuggling in December 2015.  Using confidential sources inside and outside the Monroe Correctional Complex, agents determined BOWDEN was accepting bribes of up to $1,000 to smuggle contraband into the prison.  On three different occasions between July and September 2016, BOWDEN smuggled tobacco, a SIM card, and what he believed was methamphetamine into an inmate at the prison.  In each of those three instances, the inmate turned the contraband over to investigators. 

            “Prison officials and staff abusing their authority betrays the public’s trust and threatens the integrity of the justice system,” said Special Agent in Charge Jay S. Tabb, Jr., of the FBI’s Seattle Field Office.  “The FBI launched a Prison Corruption Initiative in 2014 to expose criminal conduct by prison officials, particularly contraband smuggling in exchange for bribe payments.  The Washington Department of Corrections is a critical partner in this initiative, and the FBI is committed to working with the DOC to identify those who abuse their trusted positions.”

            “The men and women who serve as dedicated officers within our state’s correctional facilities are devoted to providing safety and security to those incarcerated by the judicial system.  Unfortunately, there are occasionally those who betray our trust in providing the safety we are sworn to uphold and we are committed to finding these bad actors so that they don’t compromise security or the integrity of our correctional system,” said Department of Corrections Secretary Richard Morgan.  “We appreciate the strong partnerships we have with our fellow law enforcement agencies, such as the FBI and the U.S. Attorney’s Office, in investigating and purging these individuals for whom we have zero tolerance so that we can maintain the safe and secure facilities expected of us by the law and our citizens.”           

            Extortion under color of official right is punishable by up to twenty years in prison and a $250,000 fine.  Attempted distribution of methamphetamine is punishable by up to twenty years in prison and a $1,000,000 fine.  These are maximum possible sentences that could be imposed on individual counts in this case.  They are not a statement of what the United States will recommend if the defendant is convicted, nor do they reflect the impact of the United States sentencing guidelines and other applicable law on any term of imprisonment.

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

            The case was investigated by the FBI in partnership with the Washington State Department of Corrections Intelligence and Investigations Unit.  The case is being prosecuted by Assistant United States Attorney Justin Arnold.

          Washington State is one of five states selected for a new U.S. Department of Justice grant to study and improve the use of fines and fees in the justice system, announced U.S. Attorney Annette L. Hayes.  Under the terms of the grant, the Washington State Minority and Justice Commission will receive $499,816 to study the impact of legal financial obligations in courts across the state, and develop a calculator that judges at all levels can use to determine an offender’s ability to pay and a realistic payment schedule.  Research to date indicates indigent offenders are unable to pay significant fines and fees, and that failure to pay can ultimately result in additional jail time.

            “Equal justice and due process are critical elements in the assessment of fines and fees in state and local courts,” said U.S. Attorney Annette L. Hayes.  “This grant, endorsed by prosecutors, defense attorneys, judges, court clerks and others is an excellent step in assisting the Washington state court system to ensure the enforcement of fines and fees is done in a way that is fair to all.”

            According to the grant application, the use of legal financial obligations varies widely across the state and across various court levels.  Recent court rulings require judges to make individualized rulings on the amount of fines and fees based on a defendant’s financial situation, but many judges are unsure how to individualize the process.  In addition, Washington has one of the highest interest rates on unpaid fines and fees at 12 percent.

            Under the grant, the Washington State Minority and Justice Commission will bring together stakeholders to promote and increase collaboration and data sharing among criminal justice agencies and officials.  The stakeholder group will study how legal financial obligations are assessed in Washington.  The group will explore a ‘calculator’ currently used in Edmonds Municipal Court to see if computer software can make the calculator a useful tool in courts across the state.  Grant funding will pay for a software company to work on the calculator to make it as easy to use as a smartphone app.  The calculator will be used as a pilot project in the Edmonds Municipal Court and in one superior court in the state.  The superior court will be selected for the pilot project based on whether defendants there are facing additional jail time for failure to pay court fees and fines.

          In endorsing the state’s grant application, the Washington State Office of Public Defense wrote, “Critically, legal financial obligations have been shown to disproportionally impact people of color, who disproportionally live in poverty.”

          The Director of ‘I Did The Time,’ an advocacy group that works to assist former defendants as they re-enter society, endorsed the grant application writing, “Our organization has been fighting to increase public awareness about the costs of legal financial obligations (LFOs) on individuals and families who stay tied to the system, forever at risk of returning to jail when they cannot find work, are not able to work due to disability status and/or can never get out from underneath the crushing increase in fines due to the oppressive interest rate.”

          The association of state prosecutors also endorsed the study.  “Our primary concern will remain the imposition and collection of actual victim restitution. The victim penalty assessment and the DNA database fee are also important in providing services and protection to crime victims. Beyond that, either mandatory or discretionary legal financial obligations should be re-evaluated for appropriateness of imposition and amount. We believe the imposition of interest on legal financial obligations in Washington State should be reduced or, possibly, eliminated.”

          The other states receiving grants from the Bureau of Justice Assistance under this program are: California, Louisiana, Texas, and Missouri. 

          Two Seattle men who led a violent drug trafficking organization distributing meth, heroin and cocaine were sentenced today in U.S. District Court in Seattle to long prison terms for numerous counts of drug trafficking and one count of money laundering, announced U.S. Attorney Annette L. Hayes.  SON V. TRAN, 29, the leader of the drug trafficking group was sentenced to 15 years in prison and TUAN A VU, 50, was sentenced to just over 13 years in prison.  Both men will serve five years of supervised release after prison.  At the sentencing hearing U.S. District Judge John C. Coughenour noted that the men led an organization involved with both drugs and violence.

            “These defendants and their organizations pumped large amounts of meth, heroin and cocaine into our communities, and they used violence to get their way,” said U.S. Attorney Annette L. Hayes.  “We will continue to use all the law enforcement tools at our disposal to ensure drug organizations like this one – from their leaders on down – are removed from our cities and towns, and held to account.”

          The two-year investigation lead by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF), revealed that the organization distributed cocaine, crack cocaine, heroin and methamphetamine across a wide swath of the greater Seattle metro area.  According to court records and testimony at trial, beginning in February 2013 law enforcement authorities used a variety of tools including telephone wire taps and confidential sources to infiltrate and interdict this drug organization.  The investigation determined that the organization distributed approximately 15-20 kilos of cocaine, 10-15 kilos of heroin and 5 kilos of methamphetamine per month.  In addition, on multiple occasions members of the drug trafficking organization were arrested with firearms.  During the investigation law enforcement seized drugs and cash including a September 2014 seizure of two kilos of cocaine, one pound of methamphetamine and $14,000 cash from a rental car.  In March 2015, investigators seized more than $32,000 from a hidden compartment in another vehicle.  At the end of the investigation, additional drugs and more than $100,000 in cash was seized from TRAN and VU’s residences. 

          Drug activity associated with the organization occurred over a wide geographic area with many drug sales occurring in the “Jungle” homeless encampment, as well as at homes and near businesses in Seattle, Renton, Shoreline and Kent.  The drug transactions occurred in areas ranging from the parking lot of Viet Wah supermarket near South Jackson Street, the parking lot of Dick’s Drive-In on NE 45th Street, the parking lot of a gas station on Beacon Hill, and at a motel in Tukwila.

           Both Son V. Tran and Tuan A. Vu were convicted of conspiracy to distribute controlled substances.  Son V. Tran was also convicted of fifteen separate counts of distribution of controlled substance or possession of controlled substance with intent to distribute offenses.  Tuan A Vu was similarly convicted of eleven separate counts of distribution of controlled substance or possession of controlled substance.

           More than twenty other defendants have been sentenced in the case to prison terms ranging from two years to twelve years.

           This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  This investigation was led by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF).  The SSTF includes task force officers from the Seattle Police Department, and the ENTF is composed of Bellevue Police Department officers, and agents and officers from the Washington State Patrol, US Postal Inspection Service, and the Redmond, Kirkland, and Mercer Island police departments in partnership with the King County Prosecuting Attorney’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA) and ICE’s Homeland Security Investigations (HSI), King County Sheriff’s Office, the Washington State Department of Corrections, and the Kent and Tukwila police departments, and the Seattle Fire Department.

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

          A man originally from the State of Oregon was sentenced today in U.S. District Court in Seattle to 18 years in prison and lifetime supervised release for receipt and possession of child pornography, announced U.S. Attorney Annette L. Hayes.  JOHN EVERETT KAMPH, 42, has a prior conviction in Oregon for the sexual molestation of a 6-year-old girl.  That prior conviction results in a mandatory minimum fifteen-year prison term.  U.S. District Judge James L. Robart imposed an 18-year sentence saying he “needs to protect the public from the defendant.”

            According to records filed in the case, KAMPH came to the attention of law enforcement when his internet service provider linked KAMPH’s email account to the receipt of images of child sex abuse.  When the Seattle Police Department executed a court-authorized search warrant on KAMPH’s electronic devices, they found more than 600 images of child sexual abuse.  The investigation revealed that KAMPH had not produced those images, but he had produced a video using his dog to interact with young children.  In what appears to be a Seattle park, KAMPH uses his dog to attract young children and positions dog treats and the camera in such a way that he focuses on the children’s underwear. 

            KAMPH was arrested in Seattle in September 2015.  KAMPH had failed to register as a sex offender as required by law due to his 1997 conviction for sexual abuse of a minor.  He had been living in an RV in the upper parking lot at Seattle’s Woodland Park and was working at a restaurant at the north end of Lake Union.

          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 Investigation (HSI) and the Seattle Police Department’s Internet Crimes Against Children (ICAC) Task Force.  The case was prosecuted by Special Assistant United States Attorney Cecelia Gregson.  Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation cases in federal court.

          A member of the Suquamish Tribe and his wife were sentenced to prison today in U.S. District Court in Tacoma for the repeated physical abuse of two of their six children, announced U.S. Attorney Annette L. Hayes.  GARNET L. MABE, 32, of Suquamish, Washington was sentenced to 30 months in prison and three years of supervised release.  MELISSA F. MABE, 35, was sentenced to one year in prison and three years of supervised release.  Six children have been removed from their care and Suquamish Tribal authorities are working to terminate their parental rights.  At sentencing U.S. District Judge Ronald B. Leighton said, “this is a tragic situation.  To see two parents who turn on their children and treat them in this fashion is inexplicable…. You robbed your children of their childhood and their trust.”

            According to records filed in the case, Suquamish Tribal Child Welfare workers received a complaint reporting abuse of the MABE children in February 2015.  Workers went to the home on the Suquamish Reservation and interviewed the children.  The two oldest children, ages 8 and 7, had multiple bruises and reported being hit, choked and kicked by their parents.  All of the children were removed from the home, and were taken to Seattle Children’s Hospital for further evaluation.  The investigation revealed that the children had been choked to the point of passing out; had been poked and cut with knives; had been kicked in the stomach; had been beaten with drumsticks, a back scratcher and metal ladle; and had been punished by being denied food.  

            The couple was charged federally in May 2015 and was indicted by the grand jury in June 2015.  In February 2016 each pleaded guilty to two counts of Assault of a Child Resulting in Substantial Bodily Injury.

            The Suquamish Tribal Police, the Suquamish Tribal Child Welfare Department and the FBI investigated the case.  The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Rebecca Cohen.  The case was prosecuted federally as part of the U.S. Attorney’s Office mission to combat crimes of violence in Tribal communities.

           A repeat sex offender who has multiple convictions for failing to register with law enforcement was sentenced today in U.S. District Court in Seattle to 14 years in prison and lifetime supervised release for a new set of sex crimes involving children, announced U.S. Attorney Annette L. Hayes.  PATRICK ALLEN SMITH, 46, pleaded guilty in May 2016 to attempted enticement of a minor and possession of child pornography.  At sentencing U.S. District Judge Thomas S. Zilly indicated a lengthy sentence is necessary to protect the public saying “these charges are very troubling to the court.”

            According to records filed in the case, SMITH was the subject of two separate law enforcement investigations in the spring of 2015.  The Pierce County Sheriff’s Office was investigating a complaint that SMITH had contacted a 14-year-old boy on Facebook and later by text, sending sexually explicit materials and attempting to arrange a meeting with the boy.  Fortunately, the teen’s family learned of the contact and reported it to police.  During that same time period, the Seattle Police Department’s Internet Crimes Against Children Task Force (ICAC) opened an investigation of SMITH concerning his receipt and distribution of child pornography.  SMITH was arrested in October 2015 for failing to register as a sex offender, and ultimately more than 600 images of young children being raped and molested were found on his electronic devices.

            SMITH is required to register as a sex offender following his conviction for child molestation in 1989 when he assaulted a child in a locker room at a YMCA.  He was convicted in 1994 for breaking into a home in an attempt to molest a young child residing there.  In 1995, 1997, 2005 and 2012, he was convicted of failing to register as a sex offender.

            The case was investigated by the Pierce County Sheriff’s Office, the Seattle Police Department’s Internet Crimes against Children Task Force (ICAC) and the U.S. Secret Service.  The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy prosecutor specially designated to prosecute child exploitation cases in federal court.

        A 38-year-old Seattle man who traveled to Colorado to groom and sexually molest a teenager he met on the internet was sentenced today in U.S. District Court in Seattle to ten years in prison and lifetime supervised release, announced U.S. Attorney Annette L. Hayes. GREGORY LYLE BRIDGES was residing in Seattle and working as a Senior Program Manager for Amazon.com when he first came to the attention of law enforcement for possession of thousands of images of child sexual abuse.  Further investigation revealed that for more than ten years BRIDGES had preyed on teen boys he met via social media.  At sentencing U.S. District Judge Marsha J. Pechman said BRIDGES was “leading a double life.”  Judge Pechman noted BRIDGES had “no understanding of the depth of harm” he had caused to the minor victim.

            “I commend the good work of Homeland Security Investigations and the Seattle Police Department in uncovering the full extent of the criminal conduct in this case,” said U.S. Attorney Annette L. Hayes.  “They looked beyond the voluminous amounts of child pornography to uncover all the other victims impacted by this defendant.”

            According to records filed in the case, BRIDGES came to the attention of law enforcement in December 2013, when Dropbox reported BRIDGES had uploaded images of child sexual abuse to his account.  In August 2014 BRIDGES was charged in King County Superior Court with possession of nearly 3,000 images of child pornography and more than 1700 videos of child pornography.  As investigators worked on the case, they identified various young men who, over the last ten years, had been approached by BRIDGES over social media.  The men had been teenagers at the time BRIDGES had sought them out and sexually abused them.  One of the victims was just 14 years old when BRIDGES contacted him and began grooming him for sex.  In April 2013, BRIDGES traveled to the boy’s home state of Colorado twice to engage in sexual contact.  BRIDGES took advantage of the boy’s difficult childhood and home life, buying him gifts and paying for hotel stays and meals.  Despite knowing the boy’s young age and his history of prior sexual abuse, BRIDGES pursued the sexual contact.

            “The collaborative efforts between the Seattle Police Department and HSI resulted in a unique investigation spanning four states,” said Steve Cagen, acting special agent in charge of HSI Seattle. “Our nation-wide investigative ability allowed for a successful prosecution. Through interviews conducted by multiple HSI offices, another sexual predator has been brought to justice for violating the innocence of children.”

            BRIDGES is required to register as a sex offender following his release from prison.  He was also ordered to pay $10,000 in restitution to some of the victims depicted in his child pornography collection.  These victims have been identified by the National Center for Missing and Exploited Children and those who possess or trade these pictures of their sexual abuse are subject to court ordered restitution.

            BRIDGES was charged in federal court in May 2015, and pleaded guilty in June 2016 to possession of child pornography and traveling with intent to engage in sexual acts with a minor.

            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 Attorney’s 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 Internet Crimes Against Children (ICAC) task force including agents and officers from the Seattle Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).

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

          The former Chairman of the Board of the Chehalis Tribal Housing Authority was sentenced today in U.S. District Court in Tacoma to thirty days in jail, two years of supervised release and $37,400 in restitution for theft from a tribal organization, announced U.S. Attorney Annette L. Hayes.  HECTOR RAY CANALES, SR., 55, pleaded guilty to conversion of tribal funds in May 2016.  At the sentencing hearing U.S. District Judge Ronald B. Leighton said CANALES had betrayed the trust of his tribe.

            According to records filed in the case, in 2009 CANALES applied for down payment assistance from the Chehalis Tribal Housing Authority knowing that he did not qualify for such assistance because he already owned a home.  CANALES engaged in a sham transaction to transfer his existing ownership to a relative, so that he could collect $37,400 from the down payment assistance program which he used to pay for a second home in the Chehalis area.  Even as he was “transferring” ownership of his current home, CANALES was listing the home as an asset on his mortgage application to Wells Fargo Bank.  CANALES used his position in the Tribe and his knowledge of the internal fiscal controls to illegally collect the down payment funds.  The fraud meant that other eligible Chehalis Tribal members did not get down payment assistance.

            CANALES has since repaid just over $24,000 to the tribe.

            The case was investigated by the Chehalis Tribal Police Department and the FBI.

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

Hacking Scheme Defrauded Banks of More Than $169 Million

A federal jury today convicted a Vladivostok, Russia, man of 38 counts related to his scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Annette L. Hayes of the Western District of Washington.  

Roman Valerevich Seleznev, aka Track2, 32, was convicted after an eight-day trial of 10 counts of wire fraud, eight counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of 15 or more unauthorized access devices and two counts of aggravated identity theft.  U.S. District Judge Richard A. Jones of the Western District of Washington scheduled sentencing for Dec. 2, 2016.

According to testimony at trial and court documents, between October 2009 and October 2013, Seleznev hacked into retail point-of-sale systems and installed malicious software (malware) to steal credit card numbers from various businesses from a server he operated in Russia.  Many of the businesses were small businesses, some of which were restaurants in Western Washington, including the Broadway Grill in Seattle, which was forced into bankruptcy following the cyber assault.

Evidence presented at trial demonstrated that the malware would steal the credit card data from the point-of-sale systems and send it to other servers that Seleznev controlled in Russia, the Ukraine or in McLean, Virginia.  Seleznev then bundled the credit card information into groups called “bases” and sold the information on various “carding” websites to buyers who would then use the credit card numbers for fraudulent purchases, according to the trial evidence.  Testimony at trial revealed that Seleznev’s scheme caused 3,700 financial institutions more than $169 million in losses.

When Seleznev was taken into custody in July 2014 in the Maldives, his laptop contained more than 1.7 million stolen credit card numbers, some of which were stolen from businesses in Western Washington.  The laptop also contained additional evidence linking Seleznev to the servers, email accounts and financial transactions involved in the scheme.

Seleznev is charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a RICO, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices.  Seleznev is also charged in the Northern District of Georgia with conspiracy to commit bank fraud, one count of bank fraud and four counts of wire fraud.  An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The U.S. Secret Service Electronic Crimes Task Force investigated the case.  The task force includes detectives from the Seattle Police Department and the U.S. Secret Service Cyber Intelligence Section in Washington, D.C.   Trial Attorney Harold Chun of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington are prosecuting the case.   The CCIPS Cyber Crime Lab and its Director, Ovie Carroll, provided substantial support for the prosecution.  The Office of International Affairs and the U.S. Attorney’s Office of the District of Guam also provided assistance in this case.

          Seattle – A federal court jury today convicted Roman Valerevich Seleznev, aka “Track2,” 32, of Vladivostok, Russia, of 38 counts related to his scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld, announced U.S. Attorney Annette L. Hayes.  The jury deliberated six hours following an eight-day trial.  U.S. District Judge Richard A. Jones scheduled sentencing for December 2, 2016.

          The 40-count indictment charged Seleznev with the theft and sale of more than 2.9 million credit card numbers.  According to testimony at trial and court documents, between October 2009 and October 2013, Seleznev hacked into retail point-of-sale systems and installed malicious software to steal credit card numbers from various businesses.  Many of the businesses were small businesses, and included restaurants and pizza parlors in Western Washington.  The Broadway Grill in Seattle was one of the better known victim businesses, which was forced into bankruptcy following the cyber attack.

          Seleznev operated a server in Russia that he used to install malware on the point-of-sale computer systems.  The malware would steal the credit card data from the point-of-sale systems and send it to other servers controlled by Seleznev, including in the Ukraine and McLean, Virginia.  Seleznev would bundle the credit card information into groups called “bases” and sell the information on various criminal “carding” websites.  The buyers would then use the credit card numbers for fraudulent purchases.  Testimony at trial revealed that 3,700 financial institutions lost more than $169 million because of the scheme.

            When Seleznev was taken into custody in July 2014 in the Maldives, his laptop contained more than 1.7 million stolen credit card numbers– some from businesses in Western Washington.  Also on the laptop was additional evidence linking Seleznev to the servers, email accounts and financial transactions involved in the scheme.

            In closing arguments prosecutors told the jury that if they “follow the digital fingerprints” Seleznev left across the internet, they would find “one of the most prolific credit card thieves in history.”

          In particular, Seleznev was convicted of ten counts of wire fraud, eight counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of 15 or more unauthorized access devices and two counts of aggravated identity theft.  Wire fraud is punishable by up to thirty years in prison and a $1 million fine.  Intentionally causing damage to a protected computer resulting with a loss of more than $5,000 is punishable by up to ten years in prison and a $250,000 fine.  Obtaining information from a protected computer is punishable by up to five years in prison and a $250,000 fine.  Possession of more than 15 unauthorized access devices is punishable by up to ten years in prison and a $250,000 fine.  Aggravated identity theft is punishable by an additional two years in prison on top of any sentence for the underlying crimes.  It is important to keep in mind that these are maximum possible sentences that could be imposed on individual counts in this case.  They are not a statement of what the United States will recommend at the time of sentencing.  Further, in determining what sentence to impose, at the time of the sentencing hearing, the Court will apply the United States Sentencing Guidelines to the specific facts of this case to come up with a non-binding sentencing guidelines range. 
 

          Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices.  Seleznev is also charged in the Northern District of Georgia with conspiracy to commit bank fraud, one count of bank fraud, and four counts of wire fraud.

          The Seattle case was investigated by the U.S. Secret Service Electronic Crimes Task Force, which includes detectives from the Seattle Police Department and the U.S. Secret Service Cyber Intelligence Section in Washington, D.C.  The case is being prosecuted by Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington and Trial Attorney Harold Chun of the Criminal Division’s Computer Crime and Intellectual Property Section.  The U.S. Department of Justice Cyber Crime Lab, and its Director, Ovie Carroll, provided substantial support for the prosecution.  The Office of International Affairs and the U.S. Attorney’s Office for the District of Guam also provided assistance in this case.

           A grand jury in Seattle today indicted RANDY LEE HALL, 31, on four new charges for shooting at law enforcement officers who were trying to arrest him in Auburn, Washington on June 28, 2016, announced U.S. Attorney Annette L. Hayes.  The superseding indictment charges HALL with assault of a person assisting federal officers, assault on a federal officer, using a firearm during a crime of violence, unlawful possession of ammunition and unlawful possession of a firearm.  HALL will be arraigned on the superseding indictment September 1, 2016.

            According to records in the case, in the spring of 2016, HALL was linked to multiple firearms and incidents where gunshots were fired.  On June 28, 2016 agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) were joined by officers from the Seattle Police Department and the Washington State Department of Corrections in order to arrest HALL on an outstanding warrant.  Law enforcement officers located a vehicle Hall had rented, and were waiting outside the Auburn apartment where the car was parked.  When HALL came out, the officers – dressed in clothing identifying their respective agencies -- verbally identified themselves as law enforcement officers and attempted to arrest HALL.  HALL brandished a pistol and fired at several officers: two ATF agents and two Department of Corrections (DOC) officers.  One DOC officer was hit but has since recovered.  HALL was also shot and was treated at Harborview Medical Center.  HALL made his first appearance on federal charges in U.S. District Court on July 5, 2016.

            The charges in the superseding indictment carry maximum penalties of twenty years in prison.  Using a firearm during a crime of violence is punishable by a mandatory ten year prison term to run consecutive to any prison term on the other charges.

            HALL’s prior felony convictions prohibit him from possessing firearms. 

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

          A 51-year-old Mountlake Terrace, Washington man was sentenced today in U.S. District Court in Seattle to 15 years in prison for production and possession of child pornography, announced U.S. Attorney Annette L. Hayes.  DAVID STEPHENS, 51, was identified by law enforcement in February 2015 as someone who was sharing images of child rape and abuse over a peer-to-peer file-sharing network.  When agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed a court authorized search warrant on STEPHENS’ home in March 2015, they seized electronic devices with thousands of images of child rape and abuse.  Among the images were some photos STEPHENS had produced of his molestation of a young child.  In addition to the mandatory minimum 15 year sentence, U.S. District Judge Marsha J. Pechman imposed a lifetime term of supervised release to follow the prison term.

            STEPHENS pleaded guilty April 28, 2016.  STEPHENS will be required to register as a sex offender.  His sentence calls for him to undergo sex offender treatment while he is in custody and following his release from prison.

            According to records filed in the case, STEPHENS had been charged with child pornography offenses in 2002 in Snohomish County, but because of legal issues those charges were ultimately dismissed.  The child of a former girlfriend also disclosed that STEPHENS had molested her over a period of years, but no charges were filed in that case.  Despite those encounters with law enforcement, STEPHENS continued to trade images of child sexual abuse and produced the images of his molestation of a child left in his care.

            In October 2016, the court will be asked to set restitution for victims in this case – both the victim depicted in the photos STEPHENS produced and the known victims depicted in the child pornography he viewed and traded over the internet.

          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 Attorneys Matthew Hampton and Siddarth Velamoor.

SEATTLE – The leader of a multi-national drug trafficking organization was arrested earlier this week and was returned to the United States yesterday from Mexico, announced U.S. Attorney Annette L. Hayes.  Four members of the organization were arrested June 23, 2016, in Washington State.  Conspiracy leader RICARDO RAMACHO, aka Ricky Ramacho, 34, fled from law enforcement from his residence in Mexico.  He was located and arrested August 9, 2016.  The indictment follows a two year investigation spanning multiple states and Mexico.  It charges five individuals with distributing large amounts of heroin – some of it smuggled from Arizona to Washington hidden behind door panels in rental cars.  During the June arrests, investigators searched three locations in Seattle and one in Renton.

“Heroin continues to take a terrible toll on people in our community and across this country,” said United States Attorney Annette L. Hayes.  “I commend the dogged work of the FBI and Bellevue Police Department to stop those who peddle this drug and profit from the misery of those who are addicted to it.  Their pursuit of those involved -- no matter where they are located -- is an important part of the effort to stop this terrible scourge.”

RAMACHO was taken into custody without incident Tuesday August 9th, in Playas de Tijuana near Tijuana, Mexico, by Baja California State Preventive Police, in close coordination with the FBI legal attaché office at the U.S. Embassy in Mexico City.  Mexican authorities repatriated RAMACHO yesterday, transferring him to FBI custody.  RAMACHO, a U.S. citizen, made his initial appearance yesterday in U.S. District Court for the Southern District of California, in San Diego.

According to the indictment and court records, within the last five years, the defendants participated in a drug distribution ring remotely directed by defendant RAMACHO from his residence in the Tijuana, Mexico area.  Beginning in June 2014, law enforcement authorities used a variety of tools including telephone record analysis, confidential sources, and surveillance to observe activities of this drug organization.  Investigators observed a drug supply purchase in Arizona and numerous drug sales at a Seattle residence in the Hillman City neighborhood and at a Seattle gas station in the Beacon Hill area. Investigators observed defendants at a Renton business search vehicle compartments that were later flagged by a law enforcement K-9 for the scent of narcotics.

“Once again, investigations like this one prove the essential value of strong law enforcement partnerships and our ability to work together to meet a common goal,” said Special Agent in Charge Frank Montoya, Jr., of the FBI’s Seattle division. “In this case, it enabled us to effectively target multiple subjects across the country and internationally. Our joint efforts enabled us to identify and shut down a significant drug-trafficking activity and key elements of the organization supporting it.  The FBI is particularly appreciative of our law enforcement partners in Mexico.”

“This operation was the result of close cooperation and collaboration between several Federal, State, and Local law enforcement agencies and prosecutors, including investigators from the Eastside Narcotics Task Force and the FBI’s Safe Streets Task Force,” said Bellevue Police Chief Steve Mylett.  “I am very proud of the hard work of these dedicated law enforcement professionals.  As a result of this large scale operation, a well-organized drug trafficking operation has effectively been dismantled, and the entire Puget Sound region is safer.”

Those arrested on the indictment include:

Ricardo Ramacho, aka Ricky Ramacho, 34, recently residing near Tijuana, Mexico
Alexa Rae Bockmier, 25, of Seattle, Washington (on June 15, 2018 charges against Bockmier were dismissed due to her successful completion of Drug Reentry DREAM Court)
Cody Alan Clay, 28, of Renton, Washington
Burrell Michael de Bose, aka “O.G.,” 64, of Seattle, Washington
Nicholas Matthew Bond, 30, of Seattle, Washington

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

This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  This investigation was led by the FBI’s Seattle Division and Bellevue Police Department’s (BPD’s) Eastside Narcotics Task Force (ENTF). The ENTF is composed of BPD officers, and agents and officers from the Washington State Patrol (WSP), US Postal Inspection Service, and the Redmond, Kirkland, and Mercer Island police departments in partnership with the King County Prosecuting Attorney’s Office. Special Weapons and Tactics (SWAT) teams from the FBI, BPD, and WSP conducted the arrests, and King County Sheriff’s Office assisted with the searches.

            The case is being prosecuted by Assistant United States Attorney Mark Parrent.

Yakima – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Israel Garcia, age 27, of Yakima, Washington, was sentenced today after previously pleading guilty to Assault on Federal Officers. Senior United States District Judge Lonny R. Suko sentenced Garcia to a 84 month term of imprisonment, to be followed by a 3-year term of court supervision upon release from Federal prison. Garcia will likely be deported to Mexico upon his release from Federal prison.

The following was disclosed during the court proceedings. On September 3, 2015, law enforcement officers attempted to arrest a known gang member. The gang member was a convicted felon and associated with the My Crew Kills (MCK) street gang. During a subsequent stand-off, the gang member fired a shot at a law enforcement officer. The gang member was subsequently arrested.

The Eastern Washington Violent Gangs Safe Streets Task Force/Yakima conducted an investigation which targeted members and associates of known violent street gangs. The investigation resulted in the issuance of three federal search warrants. On October 16, 2015, law enforcement officers executed simultaneous search warrants at separate residences. Officers approached the residence of Israel Garcia (aka Lil Gato). Garcia was known to be a convicted felon. Officers knocked on the door of the residence and announced their presence. The officers attempted to enter the residence and heard the sound of a firearm being locked and loaded. During a lengthy stand-off, Garcia threatened to shoot police officers. Garcia later attempted to flee on foot and was apprehended. During the search of his residence, officers discovered two firearms. A special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF&E”) discovered that the Jesus Arturo Lopez (“Lopez”) had legally purchased both of the firearms found in the residence. Furthermore, law enforcement determined that Lopez had also lawfully purchased the firearm found during the September 3, 2015 incident.

On October 16, 2015, special agents with the ATF&E and Federal Bureau of Investigation (“FBI”) contacted Lopez at his residence. During the interview, Lopez acknowledged that he had legally purchased several firearms for known convicted felons. Lopez advised that he knew that some of his customers had been involved in gang related shootings in the Yakima area. Lopez was charged and pled guilty to Transfer of Firearm to a Felon. On June 9, 2016, Senior United States District Judge Lonny R. Suko sentenced Lopez to a 36 month term of imprisonment, to be followed by a 3-year term of court supervision upon release from Federal prison.

Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, “law enforcement officers continually put their lives on the line to protect the public. The United States Attorney’s Office is committed to aggressively prosecuting individuals who assault law enforcement officers. Furthermore, the United States Attorneys’ Office and our law enforcement partners are committed to combating gang violence and prosecuting those who knowingly arm convicted felons.”

The investigation was completed by the Eastern Washington Violent Gangs Safe Streets Task Force/Yakima, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Yakima Police Department. This case was prosecuted by Tom Hanlon, an Assistant U.S. Attorney for the Eastern District of Washington.

            A 24-year-old member of the Quinault Tribe was sentenced today in U.S. District Court in Tacoma to three years in prison and three years of supervised release for Assault Resulting in Serious Bodily Injury, announced U.S. Attorney Annette L. Hayes.   RICKY LEE LOGAN, pleaded guilty in March 2016, to repeatedly assaulting his girlfriend during the period May 25-29 while both were on Tribal Trust land on the Quinault Reservation.  At sentencing U.S. District Judge Benjamin H. Settle noted that LOGAN was under the influence of methamphetamine at the time of the assaults saying “Your use of drugs has led to violent behavior….(The victim) was seriously injured as the result of this conduct.”

            According to records in the case, on May 29, 2015, Quinault Tribal Police found the victim with bruising all over her back, side, face, jaw, and neck, and black eyes. She had puncture wounds on her hands. Her lungs had collapsed from the repeated beatings, and she had broken ribs.  The woman was rushed to the hospital and has since recovered.  LOGAN was indicted federally for the assault in October 2015.

            Because LOGAN is a tribal member and the assault occurred on Tribal land the case is under the jurisdiction of federal courts.  

            The case was investigated by the Quinault Tribal Police and the FBI.

            The case was prosecuted by Assistant United States Attorneys J. Tate London and Ye-Ting Woo.

          A 28–year-old enrolled member of the Crow Indian Tribe of Montana was sentenced today in U.S. District Court in Tacoma to 26 years in prison and five years of supervised release for second degree murder and use of a firearm in a crime of violence, announced U.S. Attorney Annette L. Hayes.  JEREMY SCHLENKER shot and killed 26-year-old Brandon Williams in the parking lot of the Emerald Queen Casino in Fife, Washington.  The two men were strangers.  Brandon Williams was trying to protect his companions from SCHLENKER in the early morning of March 21, 2015.  At the sentencing hearing U.S. District Judge Benjamin Settle noted the “profound loss and unrelenting emotional pain” for Williams’ family saying SCHLENKER engaged in an “unprovoked act of aggression” while under the influence of alcohol and marijuana. “Let the word go out: this is no place for mixing substance abuse with weapons possession,” Judge Settle said.

          “This devastating crime requires a lengthy sentence.  The victim’s family and friends deserve to know that the man who murdered their loving son and friend will be severely punished for his senseless and brutal crime,” said U.S. Attorney Annette L. Hayes.  “The public has a right to know that the defendant will not be out on the streets again for a long time – his anger once again fueled by alcohol, marijuana and guns.  And although no sentence will undo the harm that this defendant caused, it does ensure that justice will prevail over the violent mayhem this defendant spread in his wake.”

          According to records filed in the case, SCHLENKER had been drinking heavily the night of March 20, 2015.SCHLENKER traveled with his girlfriend to various locations on the Puyallup reservation assaulting his girlfriend multiple times and pointing a handgun at people – some of whom he did not know.  At one point SCHLENKER hit the rear bumper of a car in the parking lot of the Emerald Queen Casino.  When the driver of that car got out to check for damage, SCHLENKER pointed the gun at the driver ordering her to get back in the car.  That victim was able to get away.  Some 15 minutes later, still in the parking lot, SCHLENKER stopped his car behind a vehicle belonging to Brandon Williams.  SCHLENKER’s car was blocking Williams’ car from pulling out of a parking space.  SCHLENKER did not know Williams, but rolled down his window and pointed his gun at the four people in the car.  SCHLENKER got out of his car and approached the passenger side of Williams’ car, asking if those inside had a gang affiliation.  The passengers said they were just trying to leave.  When Williams got out of the car, SCHLENKER pistol whipped him twice.  As Williams turned back towards the driver’s door SCHLENKER fired twice, killing him.

          Following the shooting SCHLENKER initially fled to Oregon where he was apprehended.  SCHLENKER pleaded guilty on April 7, 2016.

          Since SCHLENKER is a Tribal member and the crime occurred on Tribal land, federal courts have jurisdiction in this case.

          The case was investigated by the FBI and the Puyallup Tribal Police Department.  The case was prosecuted by Assistant United States Attorneys Rebecca Cohen and Ye-Ting Woo.

          Two Bellingham brothers were convicted today in U.S. District Court in Seattle of federal felonies related to their attempt to smuggle more than 29 kilos of cocaine across the border between the U.S. and/Canada, announced U.S. Attorney Annette L. Hayes. Brothers JOHN EMMETT BROWN, JR., 46, and DERRICK LOUIS CARTER, 38, were each convicted of conspiracy to distribute cocaine and possession of cocaine with intent to distribute. The jury deliberated about 10 hours following an eleven-day trial.  U.S. District Judge Marsha J. Pechman scheduled sentencing for October 28, 2016.

            According to records filed in the case and testimony at trial, BROWN drove to Los Angeles in November 2014 where he picked up 29 or 30 bricks of cocaine with a value in excess of $2 million.  While in California, BROWN asked his brother, CARTER, to drive down I-5 to meet up with him and serve as a decoy car while he drove north.  Once back in Bellingham, the men recruited other co-conspirators to carry the cocaine over the border in backpacks.  Three men, BROWN and two others, crossed the border dressed in dark or camouflage clothing, and carrying smoke bombs and bear spray.  Each had a backpack with multiple kilos of cocaine.

            The smuggling run on November 8, 2014, was interrupted when CARTER was stopped speeding near the border by a Whatcom County Sheriff’s Deputy. The car smelled of pepper spray.  U.S. Border Patrol agents, who had arrived to provide backup to the Whatcom County Sheriff’s Deputy, knew that BROWN and CARTER were long-time smugglers who used bear spray to cover their tracks.  The two men were known to frequent the area where CARTER was contacted by law enforcement. Other U.S. Border Patrol personnel went to the border, and those agents spotted three figures running north from the border in that area.  They alerted RCMP about the apparent smuggling operation.  Two of the border-crossers were later arrested by RCMP in the vicinity of three backpacks filled with cocaine, bear spray, mobile phones, camouflage gear, a Kevlar helmet, and a firearm. The third smuggler -- BROWN -- got away.

            The various items left abandoned at the border were linked to BROWN via information on the recovered mobile phones as well as the assistance of witnesses who were present before and during the smuggling operation.  In June 2015, BROWN and CARTER were arrested on federal charges.

            Due to the large amount of cocaine, the men face mandatory minimum sentences of 10 years to life in prison.

            The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) with critical assistance from the Whatcom County Sheriff’s Office, Bellingham Police Department, U.S. Border Patrol, the Drug Enforcement Administration (DEA), Health Canada and the Royal Canadian Mounted Police.

            The case was prosecuted by Assistant United States Attorneys Erin H. Becker and S. Kate Vaughan.

          A Seattle psychologist was sentenced today in U.S. District Court in Seattle to 78 months in prison and five years of supervised release for attempted travel to engage in illicit sexual conduct and attempted receipt of child pornography, announced U.S. Attorney Annette L. Hayes.  JONATHAN BRENT WULF, 62, of Seattle posted an ad on Craigslist beginning a conversation with what turned out to be an undercover agent working for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI).  Through various communications by phone and internet, WULF said he wanted to have sex with the agent’s fictional 12-year-old stepdaughter.  WULF was arrested in September 2015 when he arrived at the hotel selected as the meeting place for the sexual encounter.  At the sentencing hearing U.S. District Judge Richard A. Jones noted WULF’s career as a clinical psychologist saying “You’ve been able to see the kind of damage this activity can cause.”

            “Predators use social media and the internet to prey on children,” said U.S. Attorney Annette L. Hayes.  “Even where there is careful oversight by parents, children are vulnerable to sexual predators through their online activities.  This defendant, a child psychologist, thought he could hide in the shadow of the internet.  He was wrong. Law enforcement and a prison sentence is what awaited him instead.”

          According to records filed in the case, over a two week period in September 2015, WULF repeatedly communicated with the undercover agent about his wanting to have sex with the agent’s fictional 12-year-old stepdaughter.  WULF repeatedly suggested that all text messages or other internet communications regarding his interest in underage sex should be deleted.  WULF also repeatedly acknowledged that pursuing sex with a minor was illegal.  WULF was a trained psychologist who had specialized in children and adolescents.  The Washington State Department of Health has suspended WULF’s license.

          “We entrust teachers and counselors to serve as role models for our children and safeguard their welfare, said Steve Cagen, acting special agent in charge for HSI Seattle. “This sentence should serve as a stern warning to anyone who mistakenly believes cyberspace affords them anonymity and they can use the Internet to sexually exploit children with impunity. HSI will use all of its law enforcement authorities to combat this heinous behavior -- we owe it to the children who are the victims in these cases, many of whom will bear the emotional scars of this trauma for the rest of their lives.”

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

          A leader of a large drug trafficking group who tortured a co-conspirator to get information about a missing shipment of drugs, was sentenced today in U.S. District Court in Seattle to 15 years in prison for three federal felonies related to the drug enterprise, announced U.S. Attorney Annette L. Hayes.  RAMON ZAVALA-ZAZUETA, 44, of Kent, Washington was arrested in August 2015 hiding in a closet of his residence with a loaded semi-automatic pistol.  In the residence were heroin and drug trafficking materials.  During the course of the investigation law enforcement seized more than 29 pounds of meth, more than 18 pounds of heroin, six pounds of cocaine, approximately $178,000 in cash and 16 firearms, including five assault rifles.  At the sentencing hearing U.S. District Judge Marsha J. Pechman said, “What you’ve done is extraordinarily serious.  It is blight on the United States and on your home country of Mexico…. After you are released, go back to Mexico and do not return.”

          “No one wants to live in a community impacted by the drugs and violence that this defendant is responsible for,” said U.S. Attorney Annette L. Hayes.  “I commend the federal, state and local law enforcement agencies that worked together to eliminate this threat from our midst.  Western Washington is a better place because of their hard work.”

          The investigation involved court authorized wire-taps and extensive surveillance of members of the criminal group who trafficked large amounts of heroin and methamphetamine to the Northwest from California and Mexico.  When law enforcement moved in to make arrests they served search warrants on seventeen residences, three storage facilities and more than a dozen vehicles tied to the criminal group.  Search warrants were executed in: Auburn, Bellevue, SeaTac, Seattle, Tukwila, Renton, Kent, Port Orchard, and Everett, Washington.  In all 22 defendants were charged in the case.

            The investigation revealed that ZAVALA-ZAZUETA was not only bringing multiple pound loads of meth and heroin into Western Washington, he was obtaining firearms and sending them south to Mexico where drug cartels use them in their drug trafficking activities.  ZAVALA-ZAZUETA was at times trading drugs for stolen guns.  Some of the firearms recovered were two AR-15 style rifles, and two handguns.

            ZAVALA-ZAZUETA used one of the handguns to threaten a co-conspirator who he thought had information about a lost load of methamphetamine.  ZAVALA-ZAZUETA brought the co-conspirator and later the co-conspirator’s wife to his residence, tied the man up with duct tape, beat him, put a gun to his head, and used a red-hot knife to burn him.  ZAVALA-ZAZUETA tortured the man in an attempt to get information about the load of drugs he thought had been stolen.

          Those sentenced to date in this case include:

Ediberto Asevez Santillano, 36, of Renton, Washington – ten years in prison

Brian Christensen, 40, of Port Orchard, Washington – seven years in prison;

Will Edward Brambila, 27, of Kent, Washington – four years in prison;

Sendhy Amairany Felix Acevez, 22, of SeaTac, Washington – three years in prison;

Francisco Flores Penuelas, 44, of Kent, Washington – three years in prison;

Hanzel Knight, 43, of Auburn, Washington – five years in prison;

Heriberto Pacheco Juarez, 23, of Kent, Washington – five years in prison;

Alfonso Leos Villasenor, 21, of Kent, Washington – five years in prison;

Steven James Montgomery, 53, of Edmonds, Washington – four years in prison;

Ricardo Topete, 25, of Seattle – four years in prison.

Clarence Daniels, 36, of Kent, Washington – seven years in prison.

Joseph Moore, 49, Kent, Washington – five years in prison.

          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, the FBI and the Seattle Police Department.  The searches and arrests involved agents and officers from: Homeland Security Investigations – Seattle, Port of Seattle Police Department, Washington State Patrol, Snohomish County Sheriff’s Office, Snohomish Regional Drug And Gang Task Force, King County Sheriff’s Office, Kitsap County Sheriff’s Office, Lynnwood Police Department, Kent Police Department, Renton Police Department, Auburn Police Department, Tukwila Police Department, Federal Way Police Department, and the Pierce County Sheriff’s Office.

          The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Thomas Woods.

          Two men who were significantly involved in a violent drug trafficking organization distributing meth, heroin and cocaine in the Seattle area were sentenced today in U.S. District Court in Seattle, announced U.S. Attorney Annette L. Hayes.  SON T. NGUYEN, aka “Nine Fingers” aka “Kim,” 43, of Seattle, was sentenced to ten years in prison and LONG V. TRONG aka “Black Long,” 43, of Seattle, was sentenced to six years in prison.  The two men were both mid-level members of the drug ring, distributing drugs and using firearms to enforce rules and protect their drug territory.  U.S. District Judge John C. Coughenour imposed the sentence.

            The two year investigation lead by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF) revealed that each month the organization distributed 15-20 kilos of cocaine, 10-15 kilos of heroin and five kilos of methamphetamine across a wide swath of the greater Seattle metro area.  The two leaders of the drug ring were convicted at trial in April 2016.

          Drug activity associated with the organization occurred over a wide geographic area with many drug sales occurring in the “Jungle” homeless encampment, as well as at homes and near businesses in Seattle, Renton, Shoreline and Kent.  LONG V. TRONG controlled the drug sales in an area of the ‘Jungle’ and had other people working for him as drug sellers in the area.  Evidence obtained during a court authorized wiretap of phones associated with the criminal group revealed TRONG and others discussed assaults and a homicide in the Jungle tied to the drug trafficking activity.

          On multiple occasions members of the drug trafficking organization were arrested with firearms.  SON T. NGUYEN delivered a firearm to one of the coconspirators intending that it be used in a violent crime.  When he was arrested, SON T. NGUYEN also possessed numerous firearms despite a lengthy criminal history which barred him from possessing guns.

          These defendants have already pleaded guilty and been sentenced to prison:

Phuong A. Nguyen, aka “P,” 42, of Kent, Washington – 12 years

Brieanna K. Carlson, 27, of Seattle, Washington – three years

Kimberle S. Alojasin, aka “Nguyen,” 56, of South King County – four years

Kenneth W. Thomas, 55, of SeaTac, Washington – four years

Yen T. Vu, 55, of Seattle – three years

Tony V. Nguyen, 23, of Seattle – two years

          This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  This investigation was led by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF).  The SSTF includes task force officers from the Seattle Police Department, and the ENTF is composed of Bellevue Police Department officers, and agents and officers from the Washington State Patrol, U.S. Postal Inspection Service, and the Redmond, Kirkland, and Mercer Island police departments in partnership with the King County Prosecuting Attorney’s Office.  Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA) and ICE’s Homeland Security Investigations (HSI), King County Sheriff’s Office, the Washington State Department of Corrections, and the Kent and Tukwila police departments, and the Seattle Fire Department.

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

WASHINGTON – The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a $425 million settlement with subsidiaries of Tesoro Corp., and Par Hawaii Refining that resolves alleged Clean Air Act violations and protects public health by reducing air pollution at six refineries. Under the settlement, the two companies will spend about $403 million to install and operate pollution control equipment, and Tesoro will spend about $12 million to fund environmental projects in local communities previously impacted by pollution. Tesoro will also pay a $10.45 million civil penalty. 

“This settlement, achieved in partnership with states, will benefit the air quality in communities across the Western United States,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “It uses cutting edge technology to address global environmental issues like climate change by controlling flaring and provides important reductions of harmful air pollution in communities facing environmental and health challenges.”

“The advanced technologies Tesoro and Par are required to implement are the future for protecting people from toxic air emissions,” said Assistant Administrator Cynthia Giles for EPA’s Enforcement and Compliance Assurance.  “This settlement puts new enforcement ideas to work that will dramatically cut pollution and protect communities.” 

Today’s settlement, a consent decree lodged in U.S. District Court for the Western District of Texas, includes provisions that resolves ongoing Clean Air Act violations at refineries in Kenai, Alaska; Martinez, California; Kapolei, Hawaii; Mandan, North Dakota; Salt Lake City, Utah; and Anacortes, Washington.  Of the $10.45 million civil penalty that Tesoro will pay, the United States will receive $8,050,000, and co-plaintiffs including the states of Alaska and Hawaii, and the Northwest Clean Air Agency will share $2.4 million.

Once the companies install the pollution controls required by the settlement, annual emissions reductions at the six refineries will total an estimated 773 tons of sulfur dioxide, 407 tons of nitrogen oxides, 1,140 tons of volatile organic compounds, 27 tons of hazardous air pollutants, 20 tons of hydrogen sulfide and the equivalent of 47,034 tons of carbon dioxide, which is a greenhouse gas.  A large number of the emissions reductions will occur in areas with impaired air quality and protect populations at risk for respiratory illnesses.  In particular, this settlement will reduce greenhouse gas emissions from flaring at the subject refineries by over 60 percent.

The settlement addresses a range of alleged leak detection and repair and flaring violations under the Clean Air Act at all six refineries as well as violations of the Act’s Prevention of Significant Deterioration, Non-Attainment New Source Review, New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants at certain refineries.  The settlement also addresses various violations of state clean air laws, programs and permits.

Refineries process crude oil into products like gasoline, diesel fuel, kerosene, jet fuel, asphalt and liquefied petroleum gas and emit pollutants from a number of different sources.  At the refineries subject to this settlement, fluid catalytic cracking units, sulfuric acid plants, heaters, boilers and sulfur recovery units, are substantial emitters of nitrogen oxides (NOx) and sulfur dioxide (SO2).  Flaring results in emissions of SO2, greenhouse gases and toxic air pollutants, including volatile organic compounds (VOCs) and hazardous air pollutants.  Fugitive emissions of VOCs result from leaking valves and pumps and can result in numerous health effects, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system, among other effects.

Leaks, flares, and excess emissions from refineries emit hazardous air pollutants, or air toxics, that are known or suspected to cause cancer, birth defects, and seriously impact the environment.  SO2 and NOx have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze.  Refineries also emit greenhouse gases that contribute to climate change, as well as fugitive VOCs.

The settlement incorporates the latest technological approaches to reducing flaring and making the flaring that does occur as efficient as possible.  And in addition to installing pollution control equipment, the settlement requires Tesoro to use a series of state-of-the-art Next Generation Compliance tools to monitor pollution.  Tesoro will use infrared gas-imaging cameras at four refineries to supplement the company’s enhanced leak detection and repair program.  These cameras are able to locate fugitive VOC emissions that may not be otherwise detected and to address these fugitive emissions and in doing so protect refinery employees from them.  Tesoro will also pay for third-party auditing of compliance with the enhanced leak detection and repair requirements at all six facilities.  EPA’s Next Generation Compliance strategy works to advance the use of state-of-the-art technology to identify and reduce pollution.

Under the settlement, Tesoro will also spend about $12.2 million to fund three pollution mitigation projects.  In addition to installing infrared cameras, Tesoro will install ultra-low NOx burners on a furnace at its Salt Lake City refinery.  Tesoro estimates that the cost of this mitigation project is $10.8 million and is expected to result in significant quantifiable reductions in NOX emissions.  Tesoro will also contribute $1 million to fund the replacement of old diesel school buses in Contra Costa County, California, with new compressed natural gas (CNG) school buses. Replacing existing school buses that run on diesel with vehicles that are powered by CNG decreases emissions of NOX, SO2, PM, greenhouse gases and other air pollutants.

This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution, which includes refineries, under the Clean Air Act’s Prevention of Significant Deterioration requirements.  The total combined SO2 and NOx emission reductions secured from all settlements under this initiative will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.

Tesoro Corp., is headquartered in San Antonio, Texas, and its subsidiaries, Tesoro Alaska Company LLC, Tesoro Logistics L.P. and Tesoro Refining & Marketing Company LLC operate five of the refineries covered by this settlement.  Par Pacific Holdings, Inc., formerly known as Par Petroleum Corp. and a parent corporation of Par Hawaii Refining, purchased the Kapolei refinery from Tesoro in 2013.

There will be a 30 day public comment period on the consent decree lodged today.  Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website: www.justice.gov/enrd/consent-decrees.

For more information on the settlement or to read the consent decree, go to

https://www.epa.gov/enforcement/tesoro-and-par-clean-air-act-settlement

          A Montesano man who expressed a desire to attack the police or U.S. Military personnel out of allegiance to the Islamic State of Iraq and the Levant (ISIL), pleaded guilty today to possession of machine guns in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes.  DANIEL SETH FRANEY, 33, a/k/a Abu Dawuud was arrested in February 2016, following an undercover investigation during which he repeatedly violated a permanent protection order prohibiting him from possessing firearms.  FRANEY faces up to ten years in prison when sentenced by U.S. District Judge Ronald B. Leighton on October 7, 2016.

          According to the plea agreement and other records filed in the case, on multiple occasions between September and November 2015, FRANEY handled several firearms, to include firing fully automatic machineguns on one occasion.  He did so while acknowledging he knew he was legally prohibited from possessing firearms.

          FRANEY became the target of a federal investigation following reports from members of the public that they had heard FRANEY espouse violent rhetoric, particularly in support of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.  The citizen reports indicated FRANEY had made statements advocating the killing of non-Muslim Americans, particularly members of the U.S. military and law enforcement.  One citizen reported that FRANEY repeatedly asked to purchase a firearm from the citizen, despite FRANEY’s admissions that he was not legally allowed to possess firearms.

          During the investigation, FRANEY traveled with a person who he thought would assist him in acquiring weapons.  In fact, the person was an undercover law enforcement officer who was investigating FRANEY in light of the above referenced reports.  During the undercover investigation, FRANEY was captured on audio attempting to acquire firearms, particularly AK-47s.  FRANEY also discussed what he deemed were good targets for an attack, all the while repeatedly referring to his support for ISIL.               

          The case is being prosecuted by Assistant United States Attorney Todd Greenberg for the Western District of Washington, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.  The investigation was conducted by the FBI’s Joint Terrorism Task Force, which combines investigators from federal, state, and local law enforcement.  Task force members include the Seattle Police Department, the Pierce County Sheriff’s Department, the Federal Protective Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and elements of the U.S. Army’s 902nd Military Intelligence Group.  In addition, the Grays Harbor County Sheriff’s Department contributed significantly to this investigation.

WASHINGTON - The Department of Justice announced today that it has reached a settlement with Seattle Cancer Care Alliance (SCCA) relating to losses of more than 96,000 pills of oxycodone between 2011 and 2013.  SCCA self-reported the diversions after discovering that a nurse employed at the cancer care center had used falsified and altered prescriptions to divert oxycodone from SCCA’s on-site pharmacy.  The nurse conducted the scheme by drafting prescriptions for patients who were formerly receiving care at the center, obtaining physician signatures on those prescriptions, and then altering the prescriptions to reflect higher quantities and doses before transmitting them to the on-site pharmacy to be filled.  The nurse would then pick up the controlled substances from the pharmacy under the guise that she was doing so as a service to the patient.  Once her scheme was discovered, SCCA terminated the nurse’s employment.  She subsequently took her own life.

          “In our efforts to combat unlawful uses of prescription drugs we depend on the vigilance of pharmacists to closely monitor and enforce the controlled system of distribution,” said First Assistant, Helen J. Brunner.  “This case reflects the Justice Department’s commitment to use all of the enforcement tools at our disposal to ensure that highly-abused substances are provided to patients under the supervision of their doctors and not leaked to the illicit drug trade.”

          The investigation by the Department of Justice, in partnership with the Drug Enforcement Administration, determined that SCCA’s pharmacists violated the Controlled Substances Act when they dispensed controlled substances to the nurse who was conducting the fraud.  Specifically, DOJ found that that the pharmacists were not acting in the “usual course of their professional practice” when they failed to take steps to verify that the high-dose, high-quantity painkillers “prescribed” were appropriate for the patients purportedly receiving them, based upon each patient’s prior prescription history.  In fact, many of the former patients whose identities were used in the scheme were “opiate naïve.”  Had these individuals actually received and taken the high-quantity, high-dose oxycodone filled in their names, they could have been harmed as a result.

          The scheme carried out by the nurse was first uncovered in 2013, when a former patient at SCCA was injured on the job and was given a legitimate prescription for pain medication.  Washington State’s Department of Labor and Industries denied the claim because the state Prescription Monitoring Program indicated the patient was already receiving high strength pain medication from SCCA.  When the patient disputed receipt of such medications, workers with L&I alerted SCCA, which launched the internal investigation and uncovered the fraud.  Since its discovery, SCCA has notified all the affected patients about the fraud.

          Under the settlement reached July 7, 2016, SCCA admits no law violation, wrongdoing or misconduct but agreed, among other things to: (1) require its pharmacists to consult with the prescriber, or take other reasonable steps, to confirm the prescription’s appropriateness and veracity whenever there are signs that a prescription for a controlled substance is not appropriate for the patient to whom it is prescribed based upon the patient’s prior prescription history; (2) add an entry regarding the nurse’s fraud in the SCCA prescription and clinic records for each of the patients whose identities were used for the false prescriptions; and (3) pay the United States $250,000.

          The Drug Enforcement Administration monitors pharmacy prescribing practices to ensure compliance with federal law.  Pharmacies found in violation face escalating penalties up to the revocation of their DEA Registration number which allows them to write prescriptions for controlled substances.

          The case was litigated by Assistant U.S. Attorney Christina Fogg in the U.S. Attorney’s Office for the Western District of Washington.

settlement_agreement_fully_executed_2.pdf

          The leader of a large drug trafficking group with ties to California and Mexico, was sentenced today in U.S. District Court in Seattle to ten years in prison for conspiracy to distribute controlled substances, announced U.S. Attorney Annette L. Hayes.  EDIBERTO ASEVEZ SANTILLANO, 37, of Renton, Washington was arrested in August 2015 with two kilos of methamphetamine in his bedroom and more than $17,000 in cash in his residence.  During the course of the investigation law enforcement seized more than 29 pounds of meth, more than 18 pounds of heroin, six pounds of cocaine, approximately $178,000 in cash and 16 firearms, including five assault rifles.  At the sentencing hearing U.S. District Judge Marsha J. Pechman said, “You brought serious drugs into this country…. Your whole family has suffered because of this.”

          The investigation involved court authorized wire-taps and extensive surveillance of members of the criminal group.  When law enforcement moved in to make arrests they served search warrants on seventeen residences, three storage facilities and more than a dozen vehicles tied to the criminal group.  Search warrants were executed in: Auburn, Bellevue, SeaTac, Seattle, Tukwila, Renton, Kent, Port Orchard, and Everett, Washington.  In all 22 defendants were charged in the case.

         Those sentenced to date in this case include:

Brian Christensen, 40, of Port Orchard, Washington – seven years in prison;

Will Edward Brambila, 27, of Kent, Washington – four years in prison;

Sendhy Amairany Felix Acevez, 22, of SeaTac, Washington – three years in prison;

Francisco Flores Penuelas, 44, of Kent, Washington – three years in prison;

Hanzel Knight, 43, of Auburn, Washington – five years in prison;

Heriberto Pacheco Juarez, 23, of Kent, Washington – five years in prison;

Alfonso Leos Villasenor, 21, of Kent, Washington – five years in prison;

Steven James Montgomery, 53, of Edmonds, Washington --four years in prison;

Ricardo Topete, 25, of Seattle – four years in prison.

Clarence Daniels, 36, of Kent, Washington – seven years in prison.

Joseph Moore, 49, Kent, Washington – five years in prison.

          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, the FBI and the Seattle Police Department.  The searches and arrests involved agents and officers from: Homeland Security Investigations – Seattle, Port of Seattle Police Department, Washington State Patrol, Snohomish County Sheriff’s Office, Snohomish Regional Drug And Gang Task Force, King County Sheriff’s Office, Kitsap County Sheriff’s Office, Lynnwood Police Department, Kent Police Department, Renton Police Department, Auburn Police Department, Tukwila Police Department, Federal Way Police Department, and the Pierce County Sheriff’s Office.

          The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Thomas Woods.

          A 34 year old Las Vegas man was convicted today in U.S. District Court in Seattle of three federal felonies arising out of his transportation of two juveniles for the purpose of prostitution and sex trafficking of an adult woman through force, fraud, and coercion, announced U.S. Attorney Annette L. Hayes.  ROBERT RYAN POWELL was convicted of two counts of transportation of a juvenile with intent to engage in prostitution, and one count of sex trafficking an adult victim by force, fraud and coercion.  The jury deliberated about eight hours following a seven day trial.  U.S. District Judge Richard A. Jones scheduled sentencing for September 30, 2016.

            According to records filed in the case and testimony at trial, between January 2014 and January 2015, POWELL used force, fraud and coercion to keep an adult female working for him as a prostitute as he transported her across various western states including Nevada, Arizona, New Mexico, Utah, Colorado, South Dakota, Idaho and Washington.  POWELL used physical and emotional abuse to keep the woman working as a prostitute and supplying him with all her earnings. 

            In August 2014, POWELL recruited two juveniles in the Seattle area to work for him as prostitutes.  POWELL transported the two juveniles from Washington to San Jose, California, where he forced them to work as prostitutes and provide him with their earnings.  He then abandoned them in San Jose, where the girls were rescued by law enforcement.  POWELL was arrested in January 2015 in Rapid City, South Dakota where he was sex trafficking two adult women.  He was returned to Western Washington for prosecution.

            POWELL used Backpage.com to advertise the adult female for prostitution dates and used Backpage.com and other social media sites to recruit the juveniles to work for him as prostitutes.

            POWELL faces a mandatory minimum of 15 years in prison and up to life in prison for the felony convictions.  He was previously convicted in 2007 of Attempted Pandering in Clark County, Nevada, and in 2009 of Assault with a Deadly Weapon in Orange County, California.

            The case was investigated by the Seattle Police Department and the FBI’s Child Exploitation Task Force, with investigative assistance provided by the San Jose Police Department, Rapid City Police Department, the South Dakota Criminal Investigations Division, the Las Vegas Metropolitan Police Department, Orange Police Department, and the Los Angeles Police Department.  The case was prosecuted by Assistant United States Attorneys Kate Crisham and Amy Jaquette.       

          A SeaTac man who used a second identity to defraud federal and state public assistance programs for more than 20 years was sentenced today in U.S. District Court in Seattle to 30 months in prison, announced U.S. Attorney Annette L. Hayes.  TRAVIS EDWARD FISCHER, 49, lived with his girlfriend and three children in SeaTac, while also claiming benefits under the name Edward Travis Fischer in Seattle.  By pretending to be two completely separate people, FISCHER was able to illegally collect hundreds of thousands of dollars in benefits administered by the Social Security Administration, the Washington Department of Social and Health Services, and the Seattle Housing Authority.  At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said FISCHER stole money that should have been used to help other needy beneficiaries. Chief Judge Martinez also added: “These crimes have a corrosive effect on the public’s confidence that these programs can be administered properly.”

          According to records filed in the case and testimony at trial, FISCHER applied for Social Security disability benefits in his true name in August 1984, and collects them to the present day.  In 1987, FISCHER also applied for Supplemental Security Income (SSI) benefits in the name of Edward Fischer, using a different Social Security number.  Benefits were approved and paid to that identity beginning in 1987.  In order to keep receiving benefits FISCHER had to make false representations to Social Security at various times over the last 25 years.  FISCHER illegally collected more than $160,000 in benefits administered by the Social Security Administration.

          The fraud did not stop with Social Security benefits but extended to food and medical assistance from the Washington State Department of Social and Health Services (DSHS) totaling more than $154,000.  Further, FISCHER defrauded the Seattle Housing Authority by using the false identity to claim a low income unit in the Queen Anne neighborhood of Seattle while living in SeaTac with his girlfriend and children.  From 1990 to 2013, FISCHER used the Queen Anne residence as a home base for his fictitious second identity, and as his address for separate bank accounts and benefits in the Edward name.  The housing benefits totaled more than $152,000.

          A case manager first noticed the fraud after finding both names in a DSHS database in 2011.  When confronted, FISCHER first claimed he was the victim of identity theft, and then claimed that he had a twin brother who was also collecting benefits.

          In all, FISCHER was convicted of seven counts of mail fraud, seven counts of theft of government funds, Social Security Fraud, Misuse of a Social Security Number, and two counts of making a false statement to the United States.  He was ordered to pay $466,100 to the agencies he defrauded and will be on supervised release for three years following his prison term.

          The case was jointly investigated by the Social Security Administration Office of the Inspector General (SSA-OIG), the Department of Housing and Urban Development Office of the Inspector General (HUD-OIG) and the DSHS Office of Fraud and Accountability.

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

          The companies that own and operate a Greek shipping vessel and two engineers from the ship were convicted today in U.S. District Court in Seattle of 12 felony counts related to their dumping of oily waste at sea, announced U.S. Attorney Annette L. Hayes.  The ship operator, ANGELAKOS (HELLAS) S.A., the ship owner, GALLIA GRAECA SHIPPING LTD, the Chief Engineer, KONSTANTINOS CHRYSOVERGIS and Second Engineer, TRYFON ANGELOU were found guilty of violating the Act to Prevent Pollution from Ships, Falsification of Records in a Federal Investigation, and engaging in a Scheme to Defraud the United States.  The jury deliberated for three days following an eight-day jury trial.  U.S. District Judge John C. Coughenour scheduled sentencing for September 16, 2016.

            According to records filed in the case and testimony at trial, a cargo ship named the M/V Gallia Graeca travelled from China to Seattle in October 2015.  During the voyage, a pollution-control device known as an oil water separator was inoperable.  On October 16, 26 and 27, 2015, the defendants bypassed safeguards that prevent the discharge of oily water and discharged overboard approximately 5,000 gallons of oily bilge water.  The defendants concealed these incidents from the Coast Guard by making false statements to inspectors, and making false statements and omissions in the ship’s oil record book.  When Coast Guard inspectors asked the engineers to operate the oil water separator during the inspection, the engineers did so in such a way that the equipment appeared to be working properly even though it was not.

            When Coast Guard inspectors examined the oil water separator they found its filters were clogged with oil and found oil residue in the overboard discharge piping.  Records indicated the oil water separator had not been serviced for months prior to the voyage from China.  According to the official oil record book presented to the Coast Guard, bilge water had not been discharged during the voyage to Seattle.  However, the Coast Guard investigation discovered evidence that oily water had been discharged into the sea three times on its voyage from China.

            Calling it “a voyage of deception and pollution,” prosecutors argued that the engineers tried to hide the pollution from the Coast Guard to avoid having the ship detained in Seattle.  Keeping the ship on schedule was a benefit to the owners and operators who had a contract to move $25 million in goods out of Seattle.  Shipping company executives had been in contact with the engineers about how they should present the log book for the Coast Guard inspection.

            Falsification of Records in a Federal Investigation is punishable by up to 20 years in prison.  Violating the Act to Prevent Pollution from Ships is punishable by up to six years of imprisonment.  Scheming to Defraud the United States is punishable by up to five years in prison.  Each count of conviction is also punishable by a $500,000 fine against each corporation, and $250,000 against each individual defendant.

            The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Matthew Diggs and by Special Assistant Attorney Stephen Bor.  Mr. Bor is an attorney with the United States Coast Guard specially appointed to prosecute criminal cases in federal court.

          The case is being investigated by the U.S. Coast Guard and the Environmental Protection Agency Criminal Investigation Division.

          The second of two King County residents who was convicted, in absentia, of Conspiracy to Distribute Ecstasy in 2009, was sentenced today in U.S. District Court in Seattle to seven years in prison, announced U.S. Attorney Annette L. Hayes.  KAUSHAL KAINTH, 27, formerly of Renton, Washington, failed to appear in the middle of the third day of his trial – fleeing before closing arguments could begin.  KAINTH was ultimately arrested in Canada and returned to the U.S. for sentencing in January 2016.   KAINTH’s co-defendant, Hardeep Singh, 25, formerly of Kent, Washington, fled following the first day of trial, and was arrested in Canada in 2013 and sentenced to seven years in prison in 2014.  At sentencing today U.S. District Judge Richard A. Jones noted that the pair attempted to distribute a large amount of drugs and that “once you put those drugs into the stream of commerce you have no idea what could happen.”  In announcing the seven-year sentence, Judge Jones also considered that KAINTH “absconded” in violation of the court order that required his appearance at trial.

          According to testimony at trial and records filed in the case, KAINTH and Singh conspired to distribute large amounts of ecstasy.  Over eight days in early May 2009, the men agreed to pay a third man to deliver large amounts of ecstasy and another drug, BZP, to co-conspirators at the Southcenter Mall in Tukwila, Washington and in San Jose, California.  KAINTH and Singh did not know the man that they offered to pay to deliver the drugs was working with law enforcement.  The man recorded both defendants on audio and video.  In all KAINTH and Singh gave that person working with law enforcement some 285,000 pills worth more than $2.8 million.  The pills were all seized by law enforcement.

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

          A Mill Creek, Washington man was sentenced today in U.S. District Court in Tacoma to six months in prison for importing drug paraphernalia and receipt of misbranded drugs, announced U.S. Attorney Annette L. Hayes.  JAE SEON YOON, (AKA: Jason YOON), 56, was the president or vice-president of multiple companies doing business in Washington State over the years including J&J, Inc. (d/b/a “Top Wholesale, Inc.”), Smomax, Inc. (d/b/a “346 Glass Pipe/Master Trading”) and Three People Corp. (d/b/a/ “Cigar USA”).  YOON pleaded guilty in March 2016.  Following YOON’s arrest in July 2015, his assets were seized and his most recent business venture in Lynnwood, Top Wholesale, was shuttered.   YOON imported and distributed drug paraphernalia and other goods with counterfeit markings that made them appear to be from established suppliers.  YOON also sold ‘sex pills’ claiming to enhance sexual prowess.  Such pills contained a variety of ingredients in combinations and at dosage amounts that were never approved by the FDA and were never listed on the labels.    At sentencing U.S. District Judge Ronald B. Leighton said “You were persistent in your decisions to circumvent customs and counterfeit laws.  This is an affront to the rule of law.”       

          YOON imported drug paraphernalia from China, sometimes via Canada, by marking them as vases, laboratory glassware, or oil and vinegar dispensers.  Multiple shipments were seized by law enforcement; one shipment was addressed to a wholly fictitious company in an attempt to evade discovery by law enforcement.  While the items were made in China, they were falsely marked with the logos of companies who manufacture similar goods in Germany and Canada.  YOON also imported e-cigarettes and chargers which bore counterfeit Underwriters Lab (U/L) markings.  U/L is an American worldwide safety consulting and certification company that provides safety standards for electrical devices and components.  YOON then sold the counterfeit items at Top Wholesale to small “mom and pop” type retail stores.

           YOON also imported counterfeit logo stickers to apply to items to increase their resale value, including Seattle Seahawks and other NFL team stickers.  YOON also trafficked in “Hello Kitty” logo items despite being served with a cease and desist letter by the registered trademark owner.

            In addition to the counterfeit goods and ‘sex pills,’ YOON trafficked in ‘spice’- a synthetic form of marijuana.  ‘Spice’ that was seized in the course of the investigation tested positive for controlled substances.  When YOON learned that the FDA was coming to discuss his operation, he had his staff move all the ‘sex pills’ and ‘spice’ to an off-site location.  He then moved the contraband back to the business for its continued sale when he thought the danger from the FDA visit had passed.

            In June 2015, law enforcement executed search warrants at YOON’s operations.  Agents seized 200,000 items of drug paraphernalia, more than 50,000 counterfeit items of all sorts, more than 10,500 ‘sex pills,’ and hundreds of packages of spice.  All told, it took more than four extended-length semi-truck trailers to remove all of the contraband and counterfeit merchandise from Top Wholesale.  Agents also seized nearly $800,000 in criminal proceeds; YOON had hidden $647,900 of that amount, in cash, in a safety deposit box rented in someone else’s name.  Revenue agents from the State of Washington assessed a fine in excess of $30 million for YOON’s sales of untaxed tobacco and other tobacco products since 2011.

            YOON will likely be deported to his native Korea when he finishes his prison term.

            The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from U.S. Customs and Border Protection (CBP), the Washington State Liquor and Cannabis Control Board, and the Food and Drug Administration (FDA) Office of Criminal Investigations.  The case is being prosecuted by Assistant United States Attorney Marci L. Ellsworth.

          A 27-year-old Seattle man pleaded guilty today in U.S. District Court in Seattle to threatening a federal official, announced U.S. Attorney Annette L. Hayes. JASPER KILMER HILLMAN BELL admits he made multiple phone calls to the staff of Congressman Jim McDermott in mid-April 2016, and in one call threatened to cut out the congressman’s tongue.  BELL expressed outrage over how delegates were being allocated between the two Democratic candidates for President and the role of Congressman McDermott as a ‘Super Delegate.’  Prosecutors will ask for up to a year in prison for BELL when he is sentenced by U.S. District Judge Robert S. Lasnik on October 28, 2016.

            According to the plea agreement, in mid-April 2016, protestors went to Congressman McDermott’s office unhappy about his support for a particular Democratic presidential candidate as a ‘Super Delegate.’  BELL had written to the Congressman three times about the Super Delegate controversy, and had called the office on multiple occasions.  On April 22, 2016, BELL called the Congressman’s office in Seattle seventeen times, and his Washington DC office an additional six times in one fifty minute period.  In the calls BELL expressed his outrage that protestors had been arrested at the Congressman’s office.   Speaking with staffers BELL demanded to know the Congressman’s home address and said he would “track him down and cut his (expletive) tongue out.”  He told one he would find Congressman McDermott’s home address and “…he would not be safe.”   Following the angry phone calls BELL went to the Congressman’s office and pounded on the locked exterior doors demanding to be admitted to the offices.   Seattle Police arrested BELL later that evening.

            Under the terms of the plea agreement, prosecutors will ask for no more than one year in prison. 

          BELL was in custody in the King County Jail until federal charges were filed earlier this week.  Following his guilty plea today he was released on the condition that he get anger management and mental health treatment.  Under the terms of his release bond, BELL is required to have no contact with Congressman McDermott and his staff, and must stay a quarter mile from the Congressman’s office.  BELL is required to stay a half mile away from any political rally in the state of Washington.

            The case was investigated by the Seattle Police Department, U.S. Capitol Police and the FBI.  The case is being prosecuted by Assistant United States Attorney Todd Greenberg. 

          One of the leaders of a drug smuggling ring that moved loads of drugs across the northern border with Canada in devices ranging from helicopters to backpacks was sentenced today in U.S. District Court in Seattle to seven years in prison, announced U.S. Attorney Annette L. Hayes.  SEAN WILLIAM DOAK, 42 of Vernon, British Columbia, Canada was indicted in 2010, for his leadership of a cross border drug smuggling ring that operated from at least 2007-2009.  DOAK was extradited to the U.S. in 2015, and pleaded guilty in December 2015 to Conspiracy to possess with the intent to distribute marijuana, cocaine and ecstasy.  At today’s sentencing U.S. District Judge Robert S. Lasnik noted that the drugs trafficked by DOAK’s organization damaged users and fed addiction across the U.S. and Canada.  The judge asked DOAK how he could reconcile his position as a supportive family man, with the damage he had done to other families with his drug trafficking.

            According to records filed in the case, DOAK was operating his drug trafficking ring even as he was on work release for a drug sentence in Canada.  DOAK and his co-conspirators arranged for loads of drugs to be smuggled across the United States/Canada border by truckers, hikers and snowmobilers, and increasingly towards the end of the charged conspiracy, by helicopters.  The MDMA and marijuana originated in Canada and was transported south into the United States; the cocaine was obtained in Southern California and transported into Canada.

            At various times law enforcement seized large loads of drugs connected to the ring: 200,000 MDMA pills on March 6, 2008; 72 kilograms of cocaine seized on March 10, 2008; 83 kilograms of cocaine seized on February 21, 2009; 20 kilograms of cocaine seized on February 28, 2009; 420 pounds of marijuana seized on February 23, 2009; and 325 pounds of marijuana and 40,000 MDMA pills seized on March 5, 2009.

            Other co-conspirators have been sentenced to prison terms ranging from 10 years in prison to 18 months in prison. 

            The case was investigated by the Drug Enforcement Administration (DEA) with assistance from the Royal Canadian Mounted Police (RCMP) and the Utah Highway Patrol.  The case is being prosecuted by Assistant United States Attorney Susan Roe.