Western District of Washington

          A south Puget Sound area resident who tried to hide his illegal drug dealing behind what he falsely claimed was a ‘medical marijuana dispensary’ operating consistent with state law, was sentenced today in U.S. District Court in Tacoma to ten years in prison and five years of supervised release for two federal charges related to drug distribution, announced U.S. Attorney Annette L. Hayes.  LANCE EDWARD GLOOR, 37, was convicted in January 2016 of conspiracy to distribute marijuana, and manufacturing marijuana.  At the sentencing hearing U.S. District Judge Ronald B. Leighton said, “Mr. Gloor is a flim-flam man.  He manipulates those around him.  He, at the end of the day, persists at flaunting the basic, everyday rules.”

          “Far from being a marijuana crusader helping sick people, this defendant was nothing but a black marketeer,” said U.S. Attorney Annette L. Hayes.  “Despite repeated notice that his marijuana business was illegal under state and federal law, he continued to use lies, threats and intimidation to try to cover his tracks and make as much money as he could.”

          According to records filed in the case and testimony at trial, GLOOR and his long-time business associate were the subjects of law enforcement investigations as early as 2010.  In the fall of 2010, local law enforcement officers executed a search warrant at GLOOR’s home where they discovered more than 70 marijuana plants and a firearm.  While awaiting trial on charges filed in state court, GLOOR and his associate opened four so-called marijuana ‘dispensaries’:  Tacoma Cross, Lacey Cross, Seattle Cross, and over on the Kitsap Peninsula, KPN Cross.  A joint state and federal law enforcement investigation revealed that these locations claimed to be medical marijuana “non-profit dispensaries” operating under state law, when in fact they were for profit businesses generating millions of dollars in gross revenues inconsistent with all applicable state requirements.  Search warrants were served on the business in 2011, and following that GLOOR claimed he was getting out of the marijuana business.  In fact, further investigation and a second round of search warrants in 2013 revealed GLOOR was still operating two of the four dispensaries, but had attempted to do so while hiding his ongoing role. 

          At various times throughout the investigation and trial, GLOOR sought to contact and intimidate witnesses via text message and social media.  After GLOOR repeatedly violated court orders regarding the conditions of his release, he was taken into custody and has been incarcerated at the Federal Detention Center at SeaTac since April 2016.

          GLOOR was indicted with two co-conspirators in November 2013.  His co-conspirators have entered guilty pleas and are awaiting sentencing. 

          The case was investigated by the Thurston Narcotic Task Force (TNT) and the Drug Enforcement Administration (DEA).  The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Marci Ellsworth.

          A former Bellevue, Washington resident who assisted in the management of the Silk Road 2.0 website was sentenced today in U.S. District Court in Seattle to eight years in prison and four years of supervised release for Conspiracy to Distribute Controlled Substances, announced United States Attorney Annette L. Hayes.  BRIAN RICHARD FARRELL, 27, who used the moniker “DoctorClu” on the Silk Road site, came to the attention of Homeland Security Investigations agents in July 2014.  Silk Road 2.0 was a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. At the sentencing hearing U.S. District Judge Richard A. Jones emphasized that a strong deterrent message needs to be sent to people who sell illegal contraband on the dark web because such sites allow people to “hide in the cover of darkness in their houses.”

          “The dark web is not the safe haven some think,” said U.S. Attorney Annette L. Hayes.  “This sentence should send a clear message to those who peddle illegal drugs via the dark web: you will be caught, prosecuted and face serious penalties.”

          According to records filed in the case, Silk Road 2.0 went online in November 2013 following the government’s seizure of the first Silk Road website and the arrest of its alleged owner and operator, Ross William Ulbricht, a/k/a “Dread Pirate Roberts.”  In November 2014, Blake Benthall, a/k/a “Defcon,” the operator of the Silk Road 2.0 site, was arrested in San Francisco.  FARRELL was a key assistant to Benthall in running the site.

          “Silk Road 2.0” was one of the most extensive, sophisticated, and widely used criminal marketplaces on the Internet.  The website operated on the “Tor” network, a network of computers on the Internet, located around the world, designed to ‘anonymize’ or conceal the true IP addresses of computers that used the network and thereby the identities of the network’s users.  Since its launch in November 2013, Silk Road 2.0 was used by thousands of drug dealers and other vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to buyers throughout the world, as well as to launder millions of dollars generated by these unlawful transactions.  As of September 2014, Silk Road 2.0 was generating sales of approximately $8 million per month and had approximately 150,000 active users.

          FARRELL was one of the small staff of online administrators and forum moderators who assisted Blake Benthall with the day-to-day operation of the website.  Benthall and this small staff controlled and oversaw all aspects of Silk Road 2.0, including, among other things: the computer infrastructure and programming code underlying the website; the terms of service and commission rates imposed on vendors and customers of the website; and the massive profits generated from the operation of the illegal business.  FARRELL, operating under the moniker “DoctorClu,” was involved in activities such as approving new staff and vendors for the website, and organizing a denial of service attack on a competitor.  When a search warrant was served at FARRELL’s Bellevue home, agents seized $35,000 in cash as well as silver bullion and various types of drug paraphernalia.

          “As one of the key masterminds and coordinator of the Silk Road criminal marketplace, Farrell profited from the destruction of untold lives,” said Brad Bench, Special Agent in Charge of HSI Seattle.  “Criminals who operate digital black markets and those who trade their illicit goods on them quite mistakenly believe they are above the law. It is one of HSI’s top priorities to shut down these hidden websites and bring their criminal operators and customers to justice.”
 

          The case was investigated by Seattle-Tacoma Border Enforcement Security Task Force (BEST Seattle), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the United States Postal Inspection Service (USPIS), and the FBI. 

          The case is being prosecuted by Assistant United States Attorney Thomas Woods.

          BEST Seattle is comprised of members from HSI; U.S. Customs and Border Protection's Office of Field Operations; the U.S. Secret Service; the U.S. Coast Guard Investigative Service; the USPIS; and the Seattle and Port of Seattle police department. BEST Seattle investigates smuggling and related crimes and combats criminal organizations seeking to exploit vulnerabilities at the Seattle and Tacoma seaports and adjacent waterways.

          A Woodinville, Washington drywall company and its owner were sentenced today in U.S. District Court in Seattle to financial penalties and a probationary sentence for repeated violations of the Immigration Reform and Control Act of 1986, announced U.S. Attorney Annette L. Hayes.  DJ DRYWALL, INC., and owner DAVID L. JONES, 47, pleaded guilty in February 2016 to knowingly encouraging and inducing a Mexican national to reside in the United States in violation of law.  The guilty plea follows three different investigations and two civil fines regarding the company’s practice of illegally hiring undocumented workers. 

            “This employer repeatedly hired an illegal workforce as though the rules did not apply to him,” said U.S. Attorney Annette L. Hayes.  “Allowing some businesses to ignore hiring rules creates an uneven playing field for all.  These prosecutions are aimed at stopping this conduct and eliminating conditions for workers that are often unsafe and unsound.” 

            According to records filed in the case, DAVID L. JONES has a long work history in the drywall industry.  He incorporated DJ DRYWALL in 2006 and is the company president and sole stockholder.  In both 2008 and 2011, DJ DRYWALL was audited by Immigration and Customs Enforcement (ICE) and paid fines for violating immigration rules related to I-9’s -- a form required for employment.  Due to the violations in 2008, DJ DRYWALL paid a $32,316 fine.  Following a second audit in 2011, the company paid $27,405 for knowingly hiring 21 unauthorized aliens.  A third investigation in 2013 again revealed a pattern of hiring unauthorized workers and paying them ‘off the books,’ or encouraging them to submit false I-9 documents or green cards.

            Under the terms of the plea agreement, DAVID L. JONES forfeited $25,000 to the United States today at the sentencing hearing.  JONES will be on two years of probation.  The company will be on probation for five years and will pay a $75,000 fine over the next five years.  While on probation JONES will be required to qualify all his employees through the E-Verify internet system.

            “ICE is committed to holding businesses accountable when they knowingly hire an illegal workforce,” said Brad Bench, special agent in charge for ICE HSI in Seattle. “Employers who willfully violate our nation’s hiring laws gain an unfair economic advantage over their law abiding competitors.  Our goal is to protect job opportunities for the nation’s legal workers and level the playing field for those businesses that play by the rules.”

            The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) and was prosecuted by Special Assistant United States Attorney Don Reno.  Mr. Reno is an attorney with U.S. Immigration and Customs Enforcement specially designated to prosecute immigration crimes in federal court.

          A long-time Skagit County, Washington drug dealer and gang member was sentenced today in U.S. District Court in Seattle to ten years in prison for conspiracy to distribute controlled substances and possessing a firearm in furtherance of drug trafficking, announced U.S. Attorney Annette L. Hayes.  CRISTOBAL ORTIZ, a/k/a Filero, 27, of Mount Vernon, Washington, was arrested in February 2015 following a Drug Enforcement Administration (DEA) undercover investigation.  When court authorized search warrants were served at ORTIZ’ residence law enforcement recovered four firearms, methamphetamine, cocaine, and nearly $130,000 in cash.  At the sentencing hearing U.S. District Judge Robert S. Lasnik pointed out that those who are selling heroin and methamphetamine in Skagit County are having a “horrible impact.”

            “This defendant has long jeopardized community safety in Skagit County with violent, threatening behavior toward both law enforcement and members of the public,” said U.S. Attorney Annette L. Hayes.  “With four prior felony convictions – three involving firearms – this federal prison sentence will effectively protect the community.”

            ORTIZ has a 14 year history of crime in Skagit County and is well known to local police.  In addition to drug distribution, ORTIZ has three prior convictions arising from incidents where he or an associate fired one or more guns.  ORTIZ came to the attention of federal law enforcement in a 2013 wiretap investigation of a group of drug traffickers operating in Skagit, Snohomish, and Whatcom Counties.  In early January and February 2015, a person working with law enforcement purchased highly pure heroin from ORTIZ and co-defendant Miguel Reyes Bravo.  When law enforcement searched the homes of both men they seized heroin, methamphetamine, cocaine and multiple stolen firearms.

          Reyes Bravo was sentenced to six years in prison on April 15, 2016.  ORTIZ pleaded guilty on March 10, 2016.

          “This violent career criminal has been shut down and no longer will use his gang affiliations for illicit drug distribution,” stated DEA Special Agent in Charge Keith Weis.

            Writing to the court, Mount Vernon Chief of Police Jerry Dodd noted that ORTIZ had been involved with a violent gang operating in Skagit County and had more than 150 contacts with law enforcement. 

            The case was investigated by the Drug Enforcement Administration (DEA) with assistance from the Mount Vernon Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Skagit County Interlocal Drug Enforcement Unit (SCIDEU), the Bellingham Police Department, the Whatcom Gang and Drug Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI).

            The case was prosecuted by Assistant United States Attorneys Karyn Johnson and Steven Masada.

       Today prosecutors asked U.S. District Judge Ronald B. Leighton to set a new trial for TROY X. KELLEY on the fourteen charges that a Tacoma jury was unable to reach unanimous verdicts on.  Those charges relate to possession of stolen property, false statements, tax crimes and money laundering.  The court set the trial for March 13, 2017.

       “After careful review we have decided to seek a new trial for Troy X. Kelley on the charges the jury could not reach a verdict on,” said U.S. Attorney Annette L. Hayes.  “We believe it is in the interest of justice to seek final judgment on all the counts in the indictment.”

          A 39- year-old Ferndale, Washington resident was arrested as he approached the U.S./Canadian border this morning as he sought to travel to British Columbia to have sexual contact with a person he believed to be a 12-year-old girl, announced U.S. Attorney Annette L. Hayes.  CHRISTOPHER DAVID JOHNSTON was arrested as he attempted to illegally enter Canada.  He made his initial appearance in U.S. District Court in Seattle today where he is charged by complaint with Attempted Enticement of a Minor.  He will remain in custody pending a detention hearing next week.

          According to the criminal complaint, in early May 2016, JOHNSTON began communicating with a person who responded to a personal ad he had placed on Craigslist.  The ad said JOHNSTON was seeking a “young lady to spoil.”  An undercover agent responded to the ad, indicating that she was not yet 13 years old.  Despite knowing that young age, JOHNSTON engaged in increasingly sexualized emails, texts and chats with the agent, ultimately arranging to meet the ‘child’ in Abbotsford, BC for sex.  He was arrested in the U.S. as he rode his bicycle as he approached the border near Sumas, Washington.  Via text message he told the ‘girl’ that he was planning on crossing the border illegally to meet her in Canada.

          Attempted enticement of a minor is punishable by a mandatory minimum ten years to life in prison.

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

          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 is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).  The case is being prosecuted by Assistant United States Attorney Matthew Hampton.

WASHINGTON – Former Tukwila, Washington, Police Department (TPD) Officer Nicholas Hogan was charged today with using excessive force on a restrained arrestee on May 20, 2011, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.

The indictment alleges that Hogan, while acting as a TPD officer, deployed oleoresin capsicum spray (commonly referred to as OC spray or pepper spray) against an arrestee who was in four-point restraints and shackled to a gurney in a hospital.  The indictment identifies the arrestee only by the initials M.S.  The indictment further alleges that M.S. suffered bodily injury as a result of Hogan’s use of excessive force.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Hogan faces a maximum sentence of 10 years in prison for the civil rights violation, as well as a potential $250,000 fine.

The case is being investigated by the FBI’s Seattle Division.  The case is being prosecuted by Assistant U.S. Attorney Bruce Miyake of the Western District of Washington and Trial Attorneys Jared Fishman and Rose E. Gibson of the Civil Rights Division’s Criminal Section.

Former Tukwila, Washington, Police Department (TPD) Officer Nicholas Hogan was charged today with using excessive force on a restrained arrestee on May 20, 2011, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.

The indictment alleges that Hogan, while acting as a TPD officer, deployed oleoresin capsicum spray (commonly referred to as OC spray or pepper spray) against an arrestee who was in four-point restraints and shackled to a gurney in a hospital.  The indictment identifies the arrestee only by the initials M.S.  The indictment further alleges that M.S. suffered bodily injury as a result of Hogan’s use of excessive force.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Hogan faces a maximum sentence of 10 years in prison for the civil rights violation, as well as a potential $250,000 fine.

The case is being investigated by the FBI’s Seattle Division.  The case is being prosecuted by Assistant U.S. Attorney Bruce Miyake of the Western District of Washington and Trial Attorneys Jared Fishman and Rose E. Gibson of the Civil Rights Division’s Criminal Section.

Hogan Indictment

          A former police officer and a technology consultant who distributed hundreds of thousands of narcotic pills and other prescription drugs via an illegal internet pharmacy were sentenced to prison today, announced U.S. Attorney Annette L. Hayes.  CRAIG GREER, 43, of Hollywood, Florida, was sentenced to 60 months in prison.  KEVIN KOGAN, 48, of Cedar Park, Texas, was sentenced to 30 months in prison.  At the sentencing hearing U.S. District Judge Richard A. Jones said the conspiracy “pumped into our community an enormous amount of drugs…impacting people you will never see but whose lives and families you destroyed by feeding their addiction.”

            GREER is a former police officer, who worked to promote the internet pharmacy scheme.  GREER sent spam emails promoting the online pharmacy and made sure long-time customers got their drugs even if they did not have a valid prescription.  In prior versions of the scheme, GREER used his history as a police officer to lull some doctors into thinking the online pharmacy operated within the law.  GREER was also involved in overseas online pharmacies affiliated with lead defendant Juan Gallinal.  In addition to the prison term, GREER was sentenced to three years of supervised release, including 250 hours of community service and a money judgment of $88,635.

            KOGAN set up the websites and servers for the online pharmacy, and attempted to hide the conspiracy’s databases from investigators.  KOGAN not only handled the technology side of the operation, he lied to investigators, destroyed evidence and provided fraudulent information in response to a grand jury subpoena.  Records show he moved a critical company database to a server overseas in an effort to frustrate the law enforcement investigation.  In addition to the 30 month prison term, KOGAN was sentenced to three years of supervised release, including 150 hours of community service and a money judgment of $155,660.

          The internet pharmacy distributed drugs to some 200 customers in Washington State between 2009 and 2012.  The pharmacy shipped hundreds of thousands of pills of hydrocodone, phentermine, alprazolam (Xanax) and codeine (Tylenol 4) to people across the country who did not have valid prescriptions for the narcotics.  The conspiracy brought in more than $9 million in revenue from the sale of pills during the three year scheme.  The pharmacy operated four internet sites through which they solicited customers and allowed customers in Washington State to order drugs.  According to the indictment, the conspiracy would continue to refill prescriptions even if no valid prescription existed.  In some instances the conspirators simply looked for a physician in the same geographic area as the customer, with a similar sounding name and filled the prescription using the physician’s DEA number without the physician’s knowledge.  The pharmacy charged as much as ten times the usual price for the medications.

          The conspirators laundered the proceeds of their sales through a brick-and-mortar pharmacy in Florida called Discount Pharmacy of Pines.  In June 2012, the DEA seized the  websites, computers, and drug inventory associated with the illegal pharmacy.

          All but one of the defendants who were indicted in May 2014 have pleaded guilty and are awaiting sentencing:

• The originator of the scheme, JUAN GALLINAL, 48, of Pembroke Pines, Florida is a former police officer from Virginia. He is scheduled for sentencing in October 2016. 

• JORDAN TRUXELL, 26, of Davie, Florida served as the registered agent for Discount Pharmacy dba frontierpharmacies.com. He is scheduled for sentencing June 3, 2016. 

• THOMAS BROOKE, 54, of Cooper City, Florida was the bookkeeper for Discount Pharmacy was sentenced March 18 to five years in prison.  

• ALI LOVINS, 44, of Cooper City, Florida is a registered nurse and was the office manager for Discount Pharmacy.  LOVINS was sentenced March 4, 2016 to three years in prison. 

• JERRY DELMAN, 83, of Miami, Florida, a pharmacist who ostensibly oversaw the prescriptions going out the door to customers is being evaluated for a medical condition that could impact his ability to participate in a trial.

          This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  The case was investigated by the Portland Tactical Diversion Squad which is comprised of the Drug Enforcement Administration (DEA) and the Portland Police Bureau.  Substantial investigative assistance was provided by the Food and Drug and Administration (FDA) – Florida, and DEA Miami Field Division.

          The case is being prosecuted by Assistant United States Attorneys Mike Lang, Francis Franze-Nakamura and Brian Werner.

          A former member of the Makah Tribal Council was sentenced today in U.S. District Court in Tacoma to six months in prison for embezzlement of tribal funds, announced U.S. Attorney Annette L. Hayes.  RYLAND CHAD BOWECHOP, 38, of Bellingham, Washington pleaded guilty in February 2016, admitting that between June of 2010 and July 2014 he used a Makah tribal credit card for his personal expenses including cash advances at casinos.  At sentencing U.S. District Judge Ronald B. Leighton noted that this was a serious offense committed by a Tribal leader who was supposed to be looking out for the best interest of the tribe.

            “Not only did this defendant steal $30,000 from his own tribe, but he betrayed the trust of the people he was supposed to serve,” said U. S. Attorney Annette L. Hayes.  “The loss of funds is significant, but can be remedied.  The loss of trust has impacts that are much harder to repair.” 

            According to the plea agreement and other records in the case, BOWECHOP was elected to the Makah Tribal Council in 2009 after working in the Tribal Planning Department for many years.  As a Councilmember, BOWECHOP was provided a credit card to pay for his Council-related travel expenses.  BOWECHOP illegally used the card for personal expenses and to withdraw cash at casinos.  The amount of fraudulent charges is estimated to be $30,000.  BOWECHOP is required to pay $30,000 in restitution to the tribe.

            The case was investigated by the FBI and the Neah Bay Department of Public Safety.  The case was prosecuted by Assistant United States Attorney J. Tate London.

          A former Internal Revenue Service Revenue Agent was sentenced today in U.S. District Court in Seattle to 30 months in prison and three years of supervised release for accepting a $20,000 bribe, announced U.S. Attorney Annette L. Hayes.  PAUL G. HURLEY, 43, of Seattle, was convicted in February 2016 following a three day trial.  At sentencing U.S. District Judge John C. Coughenour said that in 35 years on the bench, this was his first bribery case.  He called HURLEY’s crime, “a tremendous breach of   public trust.”

          “The American public entrusts public officials to carry out their duties in an honorable way.  Revenue agents, such as this defendant, conduct taxpayer audits, demand records, conduct interviews, and have the power to assess additional federal taxes,” said U.S. Attorney Annette L. Hayes.  “When that power is used to line the pockets of those public officials it is a breach of trust of the highest order.”

          According to testimony at trial and records filed in the case, in the summer of 2015 HURLEY was randomly assigned to audit the corporate taxes of Have a Heart Compassion Care, Inc., a medical marijuana dispensary.  In a meeting at one of the dispensary locations, HURLEY presented the owner of the dispensary with the findings of the audit.  HURLEY indicated to the business owner that he had ‘saved the owner millions’ during the audit and that he lived paycheck to paycheck.  HURLEY asked the business owner for $20,000.  The business owner and his attorney reported the bribe request to the FBI.  Working with law enforcement, the business owner met twice with HURLEY and in recorded conversations delivered cash in marked bills. 

          At the trial, prosecutors noted that HURLEY had written on the audit paperwork that the business owner had no money to pay on his tax bill following the audit, even as HURLEY sought $20,000 to personally benefit from his work as a public employee. 

          HURLEY had been a revenue agent with the IRS since 2009 and resigned from the service after the conduct was discovered. 

          The case was investigated by the FBI and by the Treasury Inspector General for Tax Administration (“TIGTA”).

          The case was prosecuted by Assistant United States Attorneys Justin W. Arnold and Francis Franze-Nakamura.

            A childcare worker was arrested today and charged by criminal complaint with possession of child pornography, announced U.S. Attorney Annette L. Hayes.  KYLE J. TATE, 34, of Seattle was arrested this morning following the execution of a search warrant at his home.  TATE made his initial appearance in U.S. District Court in Seattle and was ordered detained pending a hearing next week.

            According to records filed in the case, TATE came to the attention of law enforcement earlier this week, when another individual implicated him in the collection and sharing of child pornography.  Due to TATE’s employment in childcare, investigators moved quickly to get a warrant to search his home and digital devices.  An initial review of those devices revealed images of child pornography.  At the time of his arrest TATE worked at the Hutch Kids Childcare Center.  According to the investigation to date, TATE previously worked at other childcare programs in the Seattle area and as a music tutor.  Law enforcement is working to identify these previous employers and provide them appropriate information.

            U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations (HSI) is leading the investigation and asks that anyone with relevant information or concerns email their contact information to hsiseattletips@ice.dhs.gov.

            “I commend HSI and the Seattle Police Department for their investigative work that led to the arrest of this defendant,” said U.S. Attorney Annette L. Hayes.  “Their efforts are essential to public safety in our communities and especially to protecting our children.”

                “We’re still in the very preliminary stages of this investigation, but obviously a top priority in all cases involving alleged online child exploitation is identifying any possible minor victims,” said Brad Bench, special agent in charge for HSI Seattle.  “We encourage parents who have questions or concerns regarding this investigation to contact the email that’s been established expressly for that purpose.  HSI special agents will be monitoring that inbox closely and will respond promptly to all inquiries.” 

            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.

            Seattle Police Department’s Internet Crimes Against Children Task Force (ICAC) is providing substantial assistance with this investigation.

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

          Two men who led a violent drug trafficking organization distributing meth, heroin and cocaine in the Seattle area were convicted April 28th of numerous counts of drug trafficking and one count of money laundering following a seven day jury trial, announced U.S. Attorney Annette L. Hayes.  The jury deliberated for seven hours before returning the guilty verdicts against SON V. TRAN, 29, and TUAN A VU, 50, both of Seattle.  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 distribution of controlled substance or possession of controlled substance offenses.  Both men face up to life in prison when sentenced by U.S. District Judge John C. Coughenour on August 16, 2016.

          These defendants have already pleaded guilty and are scheduled for sentencing in the months ahead:

Cuong T. Le, 57, of Federal Way, Washington

Niem H. Doan, aka “Linh,” 36, of Everett, Washington
Huy V. Tran, 39, of Seattle, Washington
Son T. Nguyen, aka “Nine Fingers” aka “Kim,” 42, of Seattle, Washington
Tam C. Nguyen, aka “Andy,” 39, of Tukwila, Washington
Long V. Trong aka “Black Long,” 42, of Seattle, Washington
Vinh Q. Nguyen, 29, of Seattle, Washington
Giang T. Ngo, aka “Uncle Jack,” 51, of Burien, Washington
Phuong H. Nguyen, aka “LJ,” 30, of Kent, Washington
Kenneth W. Thomas, 55, of SeaTac, Washington
Donald K. Jordan, aka “Looney,” 34, of Seattle, Washington
Donald C. Scholoff, 47, of Edmonds, Washington
Steven J. Connell, 47, of Seattle, Washington

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, Washington – 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, 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.

          I want to thank the jury for their service during this long trial, and the prosecutors from my office for their hard work in trying this case.  My office will thoroughly review the counts that the jury deadlocked on before making a decision about our next steps in this case.

CHARLOTTESVILLE, VIRGINIA – A federal law enforcement initiative targeting those trafficking methamphetamine into the greater Charlottesville area has led to a third federal conviction after a local man pled guilty today in United States District Court in Charlottesville, United States Attorney John P. Fishwick Jr. announced.

Jose Alfredo Gonzalez-Martinez, 32, of Charlottesville, was arrested on a federal criminal complaint in late March and pled guilty today in District Court to distribution of methamphetamine. Two other men, Alfonso Lopez-Rios and John Mark Fisher were previously convicted and sentenced to federal prison time as part of the Operation Ice Storm initiative. Lopez-Rios was sentenced to 58 months in federal prison and Fisher was sentenced 132 months.

“Methamphetamine is often a drug that leads to other criminal behavior, acts such a domestic abuse, property crime, violence, things that destroy families and communities,” United States Attorney John P. Fishwick Jr. said today. “It is paramount that we continue to work with our partners in law enforcement in manners such as this to slow the spread of this deadly and addictive substance.”

According to evidence presented at previous hearings by Assistant United States Attorney Christopher Kavanaugh, Gonzalez-Martinez sold distribution-sized quantities in the Charlottesville area.

Gonzalez-Martinez, Lopez-Rios and Fisher were prosecuted as part of Operation Ice Storm, a multi-agency operation headed by the Drug Enforcement Administration and in partnership with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The operations’ goal is to target larger distributors and traffickers of methamphetamine into Charlottesville and surrounding areas.

The investigation of the case was conducted by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.

     A daycare operator from Covington, Washington pleaded guilty today in U.S. District Court in Seattle to theft of public funds for falsely claiming reimbursement from a program that provides childcare to low income families, announced U.S. Attorney Annette L. Hayes.  HINDIA YUSUF, 52, admitted that she falsely claimed $250,000 in reimbursement from the Working Connections Child Care program, a federally-funded program intended to promote employment in low-income families.  YUSUF is scheduled to be sentenced by U.S. District Judge John C. Coughenour on July 29, 2016.

     According to facts stated in the plea agreement, beginning in 2005 YUSUF operated Harar Home Daycare. Under a program administered by the Washington State Department of Social and Health Services, YUSUF was paid for providing childcare to low-income families. Between 2012 and 2014, YUSUF claimed to be caring for 24 children divided into two twelve hour shifts.  Beginning in January 2012, and ending on September 16, 2014, defendant submitted reimbursement reports to DSHS on which she intentionally overstated the number of hours of child care she and Harar Home Daycare had provided.  YUSUF billed DSHS for care at times when she was caring for no children.  YUSUF forged the signatures of parents on various logs so that she could seek reimbursement for childcare that was never provided.  The amount of loss is estimated to be $250,000.

     Theft of public funds is punishable by up to ten years in prison and a $250,000 fine.

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

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

     Press contact for the U.S. Attorney’s  Office is Public Affairs Officer Emily Langlie at (206) 553-4110 or Emily.Langlie@usdoj.gov.

          A former immigration court prosecutor who used a falsified document in an immigration proceeding, was sentenced today in U.S. District Court in Seattle to 30 days in prison, 100 hours of community service, one year of supervised release, and a 10-year ban on practicing law, announced U.S. Attorney Annette L. Hayes.  JONATHAN M. LOVE, 58, pleaded guilty in January 2016 to deprivation of constitutional rights under color of law.  At sentencing Magistrate Judge Brian A. Tsuchida said, “This is a very sad day . . . for no good reason you did great harm to this victim.”

          According to records filed in the case, in May 2009, LOVE represented to an immigration judge that a particular immigration form had been signed by a person facing deportation in 2000.  The evidence indicates that between July 2008 and May 2009, the form was fabricated and altered by LOVE to appear as though it had been signed in 2000, when in fact it had been signed in 2008.  The falsified form impacted the person facing deportation by foreclosing a particular form of relief from deportation.  When a new attorney noted the irregularities in the form, the case was reopened and the deportation was stayed.  The person facing deportation was granted lawful permanent resident status in 2014. 

          An investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ Office of Professional Responsible (OPR) did not uncover any other falsified documents in cases LOVE handled. 

          The plea agreement calls for LOVE to resign from any bar associations of which he is a member, and prohibits his re-application for ten years.  Prosecutors argued the ban was appropriate noting that defendants in immigration court have a “right to proceedings free from false and fabricated evidence knowingly presented against them.  When that right is denied, a real harm is inflicted both on society, which loses faith that its government plays fair, and the individual who suffers directly.”  LOVE has agreed to pay $12,000 in restitution to the victim for the legal fees spent battling for legal status.

          The case was investigated by ICE’s Office of Professional Responsibility.

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

          A Winlock, Washington wood buyer was sentenced today in U.S. District Court in Tacoma to six months in prison, six months of home detention and three years of supervised release and $159,692 in restitution for violating the Lacey Act by trafficking in big leaf maple illegally cut on national forest land, announced U.S. Attorney Annette L. Hayes.  HAROLD CLAUSE KUPERS, 48, owner and operator of a now defunct company, J & L TONEWOODS, admitted to purchasing multiple cuts of wood without requiring the seller to show a valid Specialized Forest Products Permit, as required by law.   KUPERS pleaded guilty in November 2015, admitting he suspected the wood had been illegally cut in the Gifford Pinchot National Forest.  At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “You were a central figure in what made this all [the stolen maple trade] work….You knew you were getting stolen wood, but you hid behind ignorance.” 

          “As long as unscrupulous mill owners like this defendant create a market for poached wood, our protected forests are at risk,” said U.S. Attorney Annette L. Hayes.  “This defendant was effectively a ‘fence’ for stolen goods.  In his case not stolen jewelry or electronics, but stolen publicly owned and irreplaceable natural resources.”

          According to records in the case, in April 2012, law enforcement officers with the U.S. Forest Service met with KUPERS and specifically informed him that he was required by Washington law to review Specialized Forest Products Permits for all persons from whom he purchased maple.  Despite being put on notice, between April 2012 and March 2014, KUPERS continued to purchase figured maple without requiring the harvesters to display a Specialized Forest Products permit.  KUPERS then sold this figured maple to purchasers in interstate commerce for total revenues of $499,414. 

         Three men who illegally cut the wood previously pleaded guilty to theft of public property or conspiracy to steal public property for illegally harvesting the maple trees in the Gifford Pinchot National Forest in November and December 2011 and May 2012.  James Miller, 36, of Morton, Washington was sentenced in February 2016 to six months in prison and three years of supervised release.  Ryan Justice, 28, of Randle, Washington, was sentenced in December 2015 to 15 months in prison.  Kevin Mullins, 56, of Packwood, Washington is scheduled for sentencing June 6, 2016.

          The case is being investigated by the U.S. Forest Service.  The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Matthew Diggs.

     A California-based corporation that imports sportswear for sale to various wholesale customers will pay $1.5 million to resolve allegations under the False Claims Act that it underpaid the import duties on shipments from 2010 to 2014, announced U.S. Attorney Annette L. Hayes.  Winds Enterprises, Inc. is the California division of Winds Enterprises, Ltd., a Hong Kong corporation whose business is the manufacturing of sportswear, which is imported into the United States and sold to various clothing lines. 

            “The undervaluing of imports not only defrauds our customs program, it skews the playing field for competitors,” said U.S. Attorney Annette L. Hayes.  “These types of qui tam lawsuits are an important tool for keeping the marketplace honest.”      

     The case was originally filed under seal as a qui tam, or whistleblower, case in 2013, with a former employee alleging that the company was undervaluing shipments to the United States and therefore paying lower duties on the shipments than authorized pursuant to applicable laws and regulations.  As is permitted by the qui tam statutes, the former employee or relator, will receive a portion of the settlement funds.  In this case the relator will receive 20 percent of the settlement or $300,000. 

     “Trade enforcement is a priority for U.S. Customs and Border Protection due to the significant role that it plays in the economic security of the United States,” said Richard DiNucci, Executive Director, Cargo and Conveyance Security, Office of Field Operations.  “CBP is responsible for facilitating the legitimate flow of trade, while enforcing the laws against the evasion of duties that protect against unfair trade practices.”

     Winds Enterprises, Inc. admits no wrongdoing in the case.

     The matter was investigated by U.S. Customs and Border Protection (CBP).

     The settlement was negotiated by Assistant United States Attorneys Kayla Stahman and David East.

     Press contact for the U.S. Attorney’s Office is Public Affairs Officer Emily Langlie at (206) 553-4110 or Emily.Langlie@usdoj.gov.

          A 26-year-old man who resided with his girlfriend and their two children on Tulalip Tribal land has been sentenced in U.S. District Court in Seattle to 70 months in prison and three years of supervised release for a series of assaults and threats against the woman and her children, announced U.S. Attorney Annette L. Hayes.  JOSHUA CARL VANDERWEL pleaded guilty to assault by strangulation, felony harassment and assault in the third degree on December 3, 2015.  VANDERWEL was arrested and originally charged in Tulalip Tribal court following the assaults in September 2014.  The case was charged federally in December 2014.

            At the sentencing hearing, U.S. District Judge Robert S. Lasnik recommended that VANDERWEL undergo intensive drug treatment for his methamphetamine addiction while incarcerated and on supervised release.  The judge noted that VANDERWEL’s girlfriend suffered an “extended period of hell on earth…” with VANDERWEL assaulting her, “threatening to push her off a cliff and slash her throat.”

            According to records filed in the case, during the week of September 20, 2014, VANDERWEL repeatedly assaulted and threatened his girlfriend.  The assaults included strangling her, hitting her with a metal pipe, throwing knives and lamps at her, and threatening to kill her and burn the house down with her small children inside.  VANDERWEL kept the woman captive in the home, not allowing her to use the phone or go to work. 

          VANDERWEL was arrested by Tulalip Tribal Police, and the case was originally prosecuted as part of a pilot project authorized by the Violence Against Women Reauthorization Act of 2013 (VAWA 2013).  The Tulalip Tribes of Washington is one of the first Tribes in the nation to exercise special criminal jurisdiction over certain domestic violence crimes, regardless of the defendant’s Indian or non-Indian status.

          The case was investigated by the Tulalip Tribal Police.  The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Rebecca Cohen and by Special Assistant United States Attorney Sharon Jones Hayden.  Ms. Hayden is a Tulalip Tribal Prosecutor specially designated to prosecute cases in federal court.

          The former bookkeeper for the St. Vincent de Paul Society Stores of Tacoma, Washington, was sentenced today in U.S. District Court in Tacoma to 45 months in prison and three years of supervised release for wire fraud and aggravated identity theft, announced United States Attorney Annette L. Hayes.  ANGELA TONEY SAUCIDO, 44, moved from the Tacoma area to Phoenix in 2007, but continued to work for the charity as its bookkeeper through March 2013.  At sentencing U.S. District Judge Benjamin H. Settle ordered SAUCIDO to pay more than $543,000 in restitution to St. Vincent de Paul Society.

          “This defendant enriched herself at the expense of those who could afford it least,” said U.S. Attorney Annette L. Hayes.  “Because of her conduct, St. Vincent de Paul has had to close a number of its stores and lay off a significant portion of its work force.  Those in our community who are down on their luck have fewer places to turn to get a helping hand.”

          According to records in the case, the embezzlement scheme involved a variety of frauds.  SAUCIDO would transfer funds from the St. Vincent de Paul Society Stores bank accounts to her own bank accounts and falsify entries making it appear the transfers were for legitimate purposes.  SAUCIDO forged signatures on checks and made electronic fund transfers to benefit her and her family.  SAUCIDO made purchases for her personal use on the St. Vincent de Paul Society Stores Home Depot credit account, and then used the charity’s funds to pay for the purchases.  Finally, SAUCIDO used the identities of other employees to make it appear they had received additional pay when in fact she had deposited the money into bank accounts she and her husband controlled.

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

          A 33-year-old Federal Way man was sentenced Friday April 8, 2016 to 90 months in prison and three years of supervised release for two counts of being a felon in possession of firearms, announced U.S. Attorney Annette L. Hayes.  ROBBY LEE ROBINSON, was convicted following a bench trial on January 6, 2016.  At trial prosecutors presented evidence that in October 2013, ROBINSON had assaulted a 15-year-old boy, pointing a rifle at him and the next day had threatened the boy’s grandmother while armed with a handgun.  At sentencing U.S. District Judge Marsha J. Pechman said ROBINSON created “an extraordinarily dangerous situation… where a teenage boy has a gun pointed at him.”

            According to records filed in the case, on October 29, 2013, ROBINSON’s girlfriend made a frantic call to 9-1-1 reporting that ROBINSON was assaulting her son and mother.  ROBINSON had attacked the grandmother first pinning her against an exterior wall and threatening her with a rifle.  When her 15-year-old grandson came to her aid, ROBINSON punched him, threw him down concrete stairs and pointed the rifle at him.  The boy and his grandmother were able to get into the house and lock the door, keeping ROBINSON out.  ROBINSON fled the scene before police arrived.  The next day police were called again when the grandmother reported that ROBINSON had called the home and was threatening to burn the house down.  ROBINSON was spotted in a car in the neighborhood, and using pepper spray, police were able to get him out of the car and into custody.  Inside the car police found a Ruger, Model Super BlackHawk, .44 Magnum revolver.

            ROBINSON has a lengthy criminal history including convictions for Domestic Violence Assault (2003), Violation of a No Contact Order (2004), Possession of Methamphetamine (2007) and Second Degree Assault (2008).  He is prohibited from possessing firearms.

            The case was investigated by the Federal Way Police Department and was prosecuted by Special Assistant United States Attorney Stephen Hobbs and Assistant United States Attorney Nicholas Manheim.  Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.

          A repeat sex offender who repeatedly raped a child left in his care was sentenced today in U.S. District Court in Seattle to 30 years in prison and lifetime supervised release, announced U.S. Attorney Annette L. Hayes.  LEROY ANTHONY WILLIAMS, 33, was arrested in September 2014, when the victim’s mother called Auburn Police after finding a video of a sexual assault of a child on his phone.  WILLIAMS attempted to destroy the phone before police arrived, but was unsuccessful.  At sentencing U.S. District Judge Robert S. Lasnik said WILLIAMS’ conduct was “horribly depraved and awful…. We need to get you off the streets and away from children.”

            According to records filed in the case, an Auburn resident called 9-1-1 on September 29, 2014 after finding a video on WILLIAMS’ phone showing him raping an 11-year-old child.  WILLIAMS has a prior conviction as a juvenile for sexually assaulting a 6-year-old child and has repeatedly failed to register as a sex offender as required by law.  Because of his prior conviction WILLIAMS is subject to a 25-year mandatory minimum prison term.

            Federal charges were brought in October 2014.  WILLIAMS pleaded guilty on December 17, 2015.  Following today’s sentencing he will be transferred to King County to face charges for the rape of the child in this case.

            The case was investigated by the Auburn Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

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

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

          A 47-year-old man from Surrey, British Columbia was sentenced today in U.S. District Court in Seattle to seven years in prison and ten years of supervised release for a federal sex crime, announced U.S. Attorney Annette L. Hayes.  KULDIP “KELLY” SINGH MAHAL was arrested in February 2015 at a park in Burlington, Washington, where he was expecting to meet a 12-year-old girl whom he believed he had enticed into having sexual contact with him.  MAHAL had in fact sent multiple sexually explicit messages and photos to an undercover agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).  At the sentencing hearing, U.S. District Judge Robert S. Lasnik said, “We have so many child victims and if we can stop abuse of real children by doing these sting operations, then it is a good use of government resources.”

          “Even with the knowledge that another man had been arrested in a similar internet enticement case, this defendant persisted in seeking sex with a 12-year-old child,” said U.S. Attorney Annette L. Hayes.  “This case should send a clear message to those trolling the internet to victimize children: you will be caught and pay with your freedom for such crimes.”

            According to records in the case, MAHAL responded to a posting on the internet in January 2015.  MAHAL sent a picture of his arms and upper body, and expressed interest in a sexual relationship.  MAHAL continued to communicate with the undercover agent even after the agent claimed she was 12-years-old.  In fact MAHAL sent sexually explicit photos of himself and repeatedly requested the “girl” send sexually explicit photos of herself back to him.  MAHAL engaged in lengthy sexualized chats via text message with the “girl.”  MAHAL crossed the border from Canada into the U.S. at Blaine, Washington and was arrested at the park where he thought he was going to meet the “girl” and have sex.

          MAHAL was employed as a facilities manager for a Vancouver, BC tech firm and was a volunteer coach for a U-16 soccer team in British Columbia.  

          “We entrust teachers and coaches to serve as role models for our children and safeguard their welfare,” said Bradford Bench, special agent in charge for HSI Seattle. “This sentence should serve as a stern warning to those who mistakenly believe cyberspace affords them anonymity and they can use the Internet to sexually exploit children with impunity.  HSI will continue to work closely with our law enforcement partners to investigate these predators and ensure that they feel the full weight of the law.”

          MAHAL will be required to register as a sex offender.

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

          A Kent, Washington man whose disability fraud scheme kept a homeless Denver man from getting assistance was sentenced in U.S. District Court in Seattle to 33 months in prison and $200,118 in restitution, announced U.S. Attorney Annette L. Hayes.  RICHARD ALAN DYSON, 62, stole the identity of a homeless man in Denver, Colorado and from 1999 to 2015 used the identity to work in construction while still collecting disability benefits in his own name.  When the Colorado man tried to get public assistance he was initially disqualified because of the work history attributed to him in Washington State due to DYSON’s identity theft.  At yesterday’s sentencing hearing U.S. District Judge Ricardo S. Martinez also imposed three years of supervised release.

            “This defendant did not just steal from a government program.  He kept a disabled man from getting the Social Security benefits to which he was entitled,” said U.S. Attorney Annette L. Hayes.  “The prison sentence imposed in this case sends a clear message that identity theft does real harm and will not be tolerated.”

            According to records in the case, DYSON applied for and was granted Social Security Disability in 1992, claiming he was unable to work due to a mental disability.  He collected monthly disability payments until his arrest in 2015.  In 1999, DYSON began earning income and reporting wages in Washington State under the name and Social Security number of a Colorado man.  Between 2007 and 2014, DYSON collected 99 weeks of unemployment benefits using the Colorado man’s name and Social Security number.  DYSON lived a completely separate, working life as the Colorado man.  DYSON maintained membership in a labor union, completed training courses, paid dues, and held union membership cards, all in the Colorado man’s name.  In all, he inhabited the stolen identity for nearly fifteen years, always careful to keep his two personas separate to further his scheme.  

            Writing to the court, prosecutors noted the fraud was uncovered when the Colorado victim applied for assistance.  “This investigation was initiated when a disabled, homeless man in Colorado applied for the critical public welfare benefits needed for survival, only to be denied because his record showed he was working regularly in Washington State.  Defendant’s misappropriation of (the victim’s) identification not only cheated the system as a whole, it specifically harmed (the victim) and deprived him of help he required….The victim’s vulnerability and life on the margin of society may have allowed Defendant’s scheme to go on as long as it did, but the impact of his offense is very real….”

            The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and is being prosecuted by Special Assistant United States Attorney Benjamin Diggs.  Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute fraud cases in federal court.

WASHINGTON – Today, the Department of Justice announced the launch of 10 regional Elder Justice Task Forces.  These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents. 

          “Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents.  These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”

          The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services (HHS), state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.   

            “The Department of Justice has a long history of holding nursing homes and long-term care providers accountable when they fail to provide their Medicare and Medicaid residents with even the most basic nursing services to which they were entitled,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “By bringing everyone to the table, we will be able to more effectively and quickly pursue nursing homes that are jeopardizing the health and well-being of their residents.”

          “The model developed in Western Washington relies on close collaboration between federal, state and local law enforcement partners to protect elderly Washingtonians,” said U.S. Attorney Annette L. Hayes.  “I’m proud that this district and my law enforcement colleagues are leaders in these investigations that too often demonstrate how physical abuse and financial fraud go hand in hand.”

          The 10 Elder Justice Task Forces will be launched in the following Districts: Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, District of Maryland, Southern District of Ohio, Eastern District of Pennsylvania, Middle District of Tennessee and the Western District of Washington.

          “We believe that by actively participating in the Elder Justice Task Forces announced today through joint investigations, sharing information and regular meetings; we will strengthen our efforts nationally to protect the most vulnerable of our population who reside in our nursing homes and other care facilities,” said Keesha Mitchell, President of the National Association of Medicaid Fraud Control Units and the Director of the Ohio Medicaid Fraud Control Unit.

          “The HHS Office of Inspector General (OIG) continues to pursue nursing home operators who provide potentially harmful care to residents who are often unable to protect themselves,” said Chief Counsel to the Inspector General Gregory Demske of HHS.  “Creating these task forces sends a message to those in charge of caring for these beneficiaries that grossly substandard care will not be tolerated.”

         “The Administration for Community Living was created to help ensure that older adults and people with disabilities are able to live the lives they want, with the people they choose, fully participating in their communities,” said Becky Kurtz, Director of the Office of Long-Term Care Ombudsman Programs at the Administration for Community Living.  “Our mission includes supporting their basic right to live with dignity, free from abuse.  We appreciate the Department of Justice’s leadership on this important initiative and applaud its long-standing commitment to elder justice efforts.”

            “Our most vulnerable citizens deserve the highest quality care and attention,” said Executive Director Kathleen Quinn of the National Adult Protective Services Association. “This initiative will help insure that long-term care facilities provide it. The Department of Justice is to be commended for this, and indeed all its efforts, to protect the millions of elder abuse victims in this country.”

            The Elder Justice Task Forces reflect the Department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the Department’s Elder Justice Initiative.  The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues.  It plays an integral role in the Department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries.  The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces.  Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.

          Two defendants were sentenced this month to long prison terms in separate cases for distributing or creating sexually explicit images of children, announced U.S. Attorney Annette L. Hayes.  In the first case, DANNY ZIMMERMAN, 43, a registered sex offender in SeaTac, Washington was sentenced March 15, 2016, to ten years in prison and 20 years of supervised release.  ZIMMERMAN was arrested in June 2015, after an investigation traced images of child rape to ZIMMERMAN’s Twitter account and his internet protocol (IP) address.  

            ZIMMERMAN pleaded guilty in December 2015, to possession of depictions of minors engaged in sexually explicit conduct.  According to records filed in the case, between September 2014 and February 2015, Twitter made multiple reports to the National Center for Missing & Exploited Children (NCMEC) about images of child rape uploaded to the internet.  The reports resulted in a law enforcement investigation involving Western Washington’s Internet Crimes Against Children (ICAC) Task Force.  The investigation revealed that the internet address involved in the distribution of the sexually explicit images was used by ZIMMERMAN.  ZIMMERMAN is a registered sex offender with two 1996 convictions for child molestation in the first degree.

            In the second case, GREGORY MARK MOLLEY, 54, of Issaquah, Washington was sentenced today to eight years in prison and 15 years of supervised release for receipt of images of minors engaged in sexually explicit conduct.  MOLLEY pleaded guilty in December 2015, admitting he used hidden cameras to film children in the bathroom and bedrooms of his home.

            Both men were sentenced by U.S. District Judge John C. Coughenour.  Judge Coughenour reminded MOLLEY at his sentencing that his conduct was devastating to the victims of his crime.

          The MOLLEY case was investigated by the King County Sheriff’s Office (KCSO) and the U.S. Secret Service.  The ZIMMERMAN case was investigated by the Internet Crimes against Children Task Force, the Kent Police Department, the King County Sheriff’s Office, and the Department of Homeland     Security Investigations. 

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

          These cases were 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.

          An enrolled Makah Tribal member who fled the Neah Bay jail and then assaulted a Neah Bay Police Officer in an attempt to escape custody was sentenced today in U.S. District Court in Tacoma to 15 months in prison and three years of supervised release, announced U.S. Attorney Annette L. Hayes.  BRANDON JOSEPH EATON, 32, escaped from custody on July 15, 2015.  The officer who was escorting EATON at the jail chased him down, and with the help of other community members, subdued EATON.  EATON bit and hit the officer causing cuts requiring more than a dozen stitches.  At sentencing U.S. District Judge Benjamin H. Settle said it is important for others “to know that if an officer gets injured in the line of duty such as this, it will not go without consequence.”

            According to records filed in the case, EATON was being escorted back to his cell after making a telephone call when he ran from the police station and refused to stop when ordered by police.  The Neah Bay Police Officer chased EATON for a few blocks.  When the officer caught up with EATON, the officer was punched in the face and head repeatedly and was bitten on the hand.  The officer’s wounds required 19 stitches.  As part of his sentence, EATON was ordered to pay $338 in restitution to the officer to compensate him for time off work and additional childcare costs.

            In asking for a prison sentence Neah Bay Police Chief Jasper Bruner wrote to the court “This request is not out of revenge or retribution, this is in the hope that he can address the substance abuse and emotional issues that have plagued him.  Mr. Eaton has a long standing history with our police department in a negative way.”

            The case was investigated by the FBI and the Neah Bay Office of Public Safety.  The case was prosecuted by Assistant United States Attorney Ye-Ting Woo.

          A SeaTac man who used a second identity to defraud public assistance programs for more than 20 years was convicted late yesterday of multiple federal felonies following a three day jury trial, 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 Fisher 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 United States Department of Housing and Urban Development.  The jury deliberated for just under three hours before finding FISCHER guilty on all counts. Sentencing before Chief U.S. District Judge Ricardo S. Martinez is scheduled for June 23, 2016.

            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 $164,000.  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 at various times to accommodate guests and to receive mail in his false name.  The housing benefits totaled more than $152,000.

          A case manager first noticed the potential 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.

          Mail fraud is punishable by up to 20 years in prison and a $250,000 fine, Theft of government funds is punishable by up to 10 years in prison and a $250,000 fine, Social Security Fraud, Misuse of a Social Security Number and making false statements are each punishable by up to 5 years in prison and $250,000 fine.

          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.

          A Seattle man who operated an investment advisory business for more than 20 years was sentenced today in U.S. District Court in Seattle to 40 months in prison, three years of supervised release and $547,461 in restitution for wire fraud, announced U.S. Attorney Annette L. Hayes.  SATYEN CHATTERJEE, a/k/a Satyen Chattopadhyay, 65, owned and operated Strategic Capital Management, Inc. from 1992 until the Washington State Department of Financial Institutions ordered it to cease operating illegally in October 2013.  At the sentencing hearing U.S. District Judge Thomas S. Zilly told him, “You did, over a long period of time, commit fraud…. stealing money from your friends and clients.”

            “This defendant, a native of India, took advantage of the trust that members of his own Bengali community placed in him,” said U.S. Attorney Annette L. Hayes.  “As is so often the case, his victims were harmed not only financially, but also in their ability to trust those around them.”

            CHATTERJEE, who once taught at the University of Washington Business School, pleaded guilty in May 2015, admitting engaging in a scheme to defraud investors between 2007 and 2013.  According to records filed in the case and with the Department of Financial Institutions (DFI), the investigation revealed that at least five victims were defrauded of more than $600,000.  CHATTERJEE convinced various investors to make investments with him in what he represented were fixed rate securities.  But in fact CHATTERJEE transferred the funds to his own bank accounts, used the money for his own expenses, or lost it as a day trader in the stock market. 

            For one investor CHATTERJEE created a false account statement making the investor believe his investment was secure.  In 2011, CHATTERJEE sent a series of lulling emails to some clients falsely indicating that long time investment associates had defaulted on agreements he had with them, and blaming them for losses in the investments.

          The case was investigated by the Washington State Department of Financial Institutions (DFI) and the FBI.  The case is being prosecuted by Assistant United States Attorney Justin W. Arnold and Special Assistant United States Attorney Robert Kondrat.  Mr. Kondrat is an attorney with DFI.

          A Korean national who had been deported from the U.S. and then returned using falsified documents to commit additional fraud was sentenced today in U.S. District Court in Seattle to four years in prison and $49,815 in restitution, announced U.S. Attorney Annette L. Hayes.  CHONG HWA LIM aka Jong Wha Rim, 64 of Federal Way, Washington, was arrested April 14, 2015 in connection with a bank fraud investigation.  LIM had been deported from the U.S. in 1995 for alien smuggling and making false statements to a Border Agent.  At sentencing U.S. District Judge Richard A. Jones said he had “a significant degree of concern about items found in the search of LIM’s apartment…. They raise concerns about the defendant’s true motives.”

            According to records filed in the case, LIM pleaded guilty in December 2015 to Illegal Reentry after Deportation, Forgery and False Use of a Passport, being a Felon in Possession of a Firearm, Conspiracy to Commit Wire Fraud, and Aggravated Identity Theft.  When law enforcement searched LIM’s Federal Way apartment in April 2015 they found  high-end identity device making equipment; police equipment; counterfeit identifications, credit cards and immigration documents; hundreds of new Social Security cards; a loaded .380 Beretta handgun; an unloaded Mossberg 500 12-gauge shotgun; and a binder containing names, social security numbers, and other identifying information for taxpayers (real and fake) used by the conspirators when filing fraudulent tax returns.  LIM and his coconspirators had submitted false tax returns under the names of other people and obtained more than $49,000 in fraudulent refunds.  LIM also used a fake Korean passport to obtain a Washington State driver’s license in a false name.

            The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), the Kent Police Department, Social Security Administration Office of Inspector General (SSA-OIG), Homeland Security Investigations (HSI) and the U.S. State Department Diplomatic Security Service (DSS). 

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

          The former bookkeeper for an online pharmacy that illegally distributed hundreds of thousands of narcotic drugs across the country was sentenced today in U.S. District Court in Seattle to five years in prison, three years of supervised release, and 200 hours of community service for conspiracy to distribute controlled substances and conspiracy to commit money laundering, announced U.S. Attorney Annette L. Hayes.  THOMAS BROOKE, 54, of Cooper City, Florida was the bookkeeper for Discount Pharmacy.  At the sentencing hearing U.S. District Judge Richard A. Jones said BROOKE was a “central cog in this operation… Thousands of people continued their addiction because of what you were involved in.”

            The internet pharmacy distributed drugs to some 200 customers in Washington State between 2009 and 2012.  The pharmacy shipped hundreds of thousands of pills of hydrocodone, phentermine, alprazolam (Xanax) and codeine (Tylenol 4) to people across the country who did not have valid prescriptions for the narcotics.  The conspiracy brought in more than $9 million in revenue from the sale of pills during the three year scheme.  The pharmacy operated four internet sites through which they solicited customers and allowed customers in Washington State to order drugs.  According to the indictment, the conspiracy would continue to refill prescriptions even if no valid prescription existed.  In some instances the conspirators simply looked for a physician in the same geographic area as the customer, with a similar sounding name and filled the prescription using the physician’s DEA number without the physician’s knowledge.  The pharmacy charged as much as ten times the usual price for the medications.

            The conspirators laundered the proceeds of their sales through a brick-and-mortar pharmacy in Florida called Discount Pharmacy of Pines.  BROOKE was a key figure in funneling the flow of money through the illegal business and to the conspirators.  In June 2012, the DEA seized the conspiracy’s websites, computers, and drug inventory.  Even after that seizure BROOKE set up different bank accounts and continued to structure deposits to avoid currency reporting requirements.

            Earlier this month Ali Lovins, 44, of Cooper City, Florida was sentenced to three years in prison.  Lovins is a registered nurse and was the office manager for Discount Pharmacy.  LOVINS pleaded guilty in April 2015 to four felony counts: conspiracy to distribute controlled substances by means of the internet; conspiracy to distribute controlled substances; conspiracy to launder money; and conspiracy to introduce misbranded drugs into interstate commerce.

            All but one of the defendants who were indicted in May 2014 has pleaded guilty and is awaiting sentencing:

• The originator of the scheme, JUAN GALLINAL, 48, of Pembroke Pines, Florida is a former police officer from Virginia. He is scheduled for sentencing in October 2016. 

• JORDAN TRUXELL, 26, of Davie, Florida served as the registered agent for Discount Pharmacy dba frontierpharmacies.com. He is scheduled for sentencing in May 6, 2016. 

• CRAIG GREER, 43, of Hollywood, Florida, a former police officer, worked to promote the internet pharmacy scheme. He is scheduled for sentencing on April 8, 2016. 

• KEVIN KOGAN, 48, of Cedar Park, Texas, set up the websites and servers for the online pharmacy, and attempted to hide the conspiracies databases from investigators.  He is scheduled for sentencing April 8, 2016.

• JERRY DELMAN, 83, of Miami, Florida, a pharmacist who ostensibly oversaw the prescriptions going out the door to customers is being evaluated for a medical condition that could impact his ability to participate in a trial.

            This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  The case was investigated by the Portland Tactical Diversion Squad which is comprised of the Drug Enforcement Administration (DEA) and the Portland Police Bureau.  Substantial investigative assistance was provided by the Food and Drug and Administration (FDA) – Florida, and DEA Miami Field Division.

            The case is being prosecuted by Assistant United States Attorneys Mike Lang, Francis Franze-Nakamura and Brian Werner.

          A former Bellevue resident who was deported from the United States following a conviction for a 1984 murder, was sentenced today in U.S. District Court in Seattle to five years in prison for violating immigration and gun laws, announced U.S. Attorney Annette L. Hayes.  JUNNE KYOO KOH, 51, was arrested in August 2014, after his contact with Bellevue Police in June and July 2014 triggered an investigation into his identity.  KOH used the identity of his deceased brother to return to the U.S. following deportation and to illegally purchase firearms.  At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said KOH “committed a very serious crime of violence in the past, that led to his deportation: the murder of his younger brother…. The offense is serious – deported for a very violent crime and voluntarily arming himself with not one but two firearms.”

            According to records filed in the case, JUNNE KYOO KOH called Bellevue Police in June 2014, claiming that his name was Sang K. Koh and that he believed his family was missing.  When police interviewed KOH at the family home he made accusations about neighbors being involved in kidnapping his parents and brother.  KOH talked about shooting the neighbors if they were involved.  Detectives removed one gun from the home and went with KOH to a storage locker to retrieve a second weapon.  The parents were ultimately located safely residing in Southern California.

          Further investigation revealed that KOH was convicted of the 1984 shooting death of his younger brother, Sang.  KOH had been sentenced to prison and deported.  However, KOH used his deceased brother’s identity to return to the United States and work for a number of years.  He also used his brother’s identity to purchase firearms, as he knew he was prohibited from possessing firearms because of the murder conviction.  KOH left the Bellevue area and was ultimately arrested August 6, 2014 in Los Angeles where he apparently was trying to locate his family.  On November 20, 2015, following a trial before Judge Martinez, KOH was found guilty of  being a felon in possession of a firearm, being an alien in possession of a firearm and illegal re-entry after deportation.

          The case was investigated by the Bellevue Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).  The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs.  Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.

          A grand jury in Seattle has indicted two shipping companies and two engineers for crimes related to the illegal discharge of oily wastewater from a cargo ship known as the M/V Gallia Graeca, announced U.S. Attorney Annette L. Hayes.  The ship’s operator, ANGELAKOS (HELLAS) S.A., its owner, GALLIA GREACA SHIPPING, LTD, and engineers KONSTANTINOS CHRYSOVERGIS and TRYFON ANGELOU are scheduled to be arraigned on the indictment on March 24, 2016.  ANGELAKOS (HELLAS) S.A. is a Panama company.  GALLIA GREACA SHIPPING, LTD is a Cyprus company.

            According to the indictment, 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, resulting in the accumulation of untreated oily water.  On October 16, 26 and 27, 2015, the defendants operated the equipment in a way that bypassed safeguards that prevent the discharge of oily water, resulting in the discharge of more than 5,000 gallons of contaminated water.  The indictment alleges that 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 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.

            The two engineers and the two companies operating the ship are charged with Falsification of Records in a Federal Investigation, which is punishable by up to 20 years in prison, with Concealment of Material Information from the United States, which is punishable by up to 10 years in prison, and with violating the Act to Prevent Pollution from Ships, which is punishable by up to five years of imprisonment.  Each count of conviction is also punishable by a $500,000 fine.

            The charges contained in the indictment are only allegations.  A person or entity 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 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.

          A long time bank robber who has done multiple prison terms for his crimes was sentenced today in U.S. District Court in Tacoma to 12 years in prison for a January 2015 bank robbery, announced U.S. Attorney Annette L. Hayes.  LARRY G. BAILEY, JR., 53, of Chehalis, Washington has spent most of his adult life in prison for bank robbery.  This latest robbery occurred shortly after he escaped from a half-way house following his last ten year prison term.  At sentencing U.S. District Judge Ronald B. Leighton said the prison term was necessary to protect the community.

            According to records filed in the case, on January 26, 2015 BAILEY walked into a Chase bank branch in Chehalis dressed as an elderly woman, with a canvas bag and one of his hands hidden under his shirt.  He introduced himself to the bank manager saying he was “on his third strike.”  BAILEY told the manager he had a gun and wanted to be taken to the vault.  BAILEY took $36,000 from the vault and fled on a silver bicycle.  A Lewis County Sheriff’s Deputy spotted BAILEY riding away near an I-5 overpass and after a brief foot pursuit took him into custody.  All of the stolen money was recovered.

            BAILEY’s bank robbery history begins in the 1980s.  His first prison term for bank robbery was 30 months and he was released in 1990.  In 1991 he was sentenced to nearly ten years in prison for bank robberies in Kansas and Spokane, Washington.  Five years after his release on that prison term, in July 2004, BAILEY was arrested and sentenced to ten years in prison for another bank robbery in Spanaway, Washington.  He escaped from a community corrections facility in Tacoma in March 2013, and was taken back into custody in August 2013.  BAILEY was sent back to prison to finish his prison term.  He had been out of prison less than a year when he committed the bank robbery in Chehalis.

            The case was investigated by the Chehalis Police Department, the Lewis County Sheriff’s Office and the FBI.  The case was prosecuted by Assistant United States Attorney Grady Leupold.

          A registered nurse from Florida is the first person to be sentenced to prison in connection with the illegal operation of an online pharmacy that distributed narcotics across the country, announced U.S. Attorney Annette L. Hayes.  ALI LOVINS, 44, of Cooper City, Florida is a registered nurse and was the office manager for Discount Pharmacy.  Today LOVINS was sentenced to three years in prison, three years of supervised release, 200 hours of community service, and will forfeit $313,360 in drug proceeds.  LOVINS pleaded guilty in April 2015 to four felony counts: conspiracy to distribute controlled substances by means of the internet; conspiracy to distribute controlled substances; conspiracy to launder money; and conspiracy to introduce misbranded drugs into interstate commerce.  At the sentencing hearing U.S. District Judge Richard A. Jones noted LOVINS was part of a conspiracy that distributed more than a million tablets of narcotic drugs, but noted that unlike a street drug dealer “you don’t have to be in the dark alleys… you don’t have to look in the sunken eyes of an addict… and there was no danger of the drug deal going bad.”  Judge Jones noted that prescription drug addiction contributes to the “epidemic of heroin abuse in this community.”

            “As a registered nurse this defendant played a key role in the scheme,” said U.S. Attorney Annette L. Hayes.  “She lied about the online business in order to keep the drugs flowing.  As a nurse she knew the drugs she was selling were feeding addictions, destroying families and contributing to the opioid epidemic we are dealing with today.”

          The internet pharmacy distributed drugs to some 200 customers in Washington State between 2009 and 2012.  The pharmacy shipped hundreds of thousands of pills of hydrocodone, phentermine, alprazolam (Xanax) and codeine (Tylenol 4) to people across the country who did not have valid prescriptions for the narcotics.  The conspiracy brought in more than $9 million in revenue from the sale of pills during the three year scheme.  The pharmacy operated four internet sites through which they solicited customers and allowed customers in Washington State to order drugs.  According to the indictment, the conspiracy would continue to refill prescriptions even if no valid prescription existed.  In some instances the conspirators simply looked for a physician in the same geographic area as the customer, with a similar sounding name and filled the prescription using the physician’s DEA number without the physician’s knowledge.  The pharmacy charged as much as ten times the usual price for the medications.

          The conspirators laundered the proceeds of their sales through a brick-and-mortar pharmacy in Florida called Discount Pharmacy of Pines.  In June 2012, the DEA seized the conspiracy’s websites, computers, and drug inventory.

          “This individual blatantly abused her professional status as a registered nurse by facilitating the fraudulent and reckless prescription of highly addictive pharmaceuticals,” said DEA Special Agent in Charge Keith Weis.

          All but one of the defendants who were indicted in May 2014 have pleaded guilty and are awaiting sentencing:

• The originator of the scheme, JUAN GALLINAL, 48, of Pembroke Pines, Florida is a former police officer from Virginia.He is scheduled for sentencing in October 2016. 

• JORDAN TRUXELL, 26, of Davie, Florida served as the registered agent for Discount Pharmacy dba frontierpharmacies.com. He is scheduled for sentencing in May 6, 2016. 

• THOMAS BROOKE, 54, of Cooper City, Florida was the bookkeeper for Discount Pharmacy. He is scheduled for sentencing on March 18, 2016.  

• CRAIG GREER, 43, of Hollywood, Florida, a former police officer, worked to promote the internet pharmacy scheme. He is scheduled for sentencing on April 8, 2016. 

• KEVIN KOGAN, 48, of Cedar Park, Texas, set up the websites and servers for the online pharmacy, and attempted to hide the conspiracies databases from investigators.  He is scheduled for sentencing April 8, 2016.

• JERRY DELMAN, 83, of Miami, Florida, a pharmacist who ostensibly oversaw the prescriptions going out the door to customers is being evaluated for a medical condition that could impact his ability to participate in a trial.

          This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  The case was investigated by the Portland Tactical Diversion Squad which is comprised of the Drug Enforcement Administration (DEA) and the Portland Police Bureau.  Substantial investigative assistance was provided by the Food and Drug and Administration (FDA) – Florida, and DEA Miami Field Division.

          The case is being prosecuted by Assistant United States Attorneys Mike Lang, Francis Franze-Nakamura and Brian Werner.

Federal Monitor Merrick Bobb filed an assessment today that finds that the Seattle Police Department’s (SPD) new crisis intervention policies, training and operations to engage people in crisis are in initial compliance with the crisis intervention provisions of the court-ordered agreement with the Department of Justice.  The federal monitor filed the ninth of 15 formal assessments with the U.S. District Court and concluded that “there has been a real, tangible, and objective change in the way Seattle police are interacting, compassionately and with an eye towards treatment, with those in crisis.”

Specifically, the formal assessment found:

(1) SPD is dispatching its now large and trained cadre of crisis intervention-trained officers to crisis events in the great majority of instances;

(2) initial data indicates that officers use force against individuals in crisis less than two  percent of the time and, when they do use force, 80 percent of the time they use the lowest level of force – and did not once use the highest level of force – even in high-risk situations;

(3) over the past two years, all officers have received some level of crisis intervention training, which has been approved by the Department of Justice, the monitor and the federal court and developed in collaboration with the Crisis Intervention Committee (CIC), an all-voluntary interagency advisory committee composed of the region’s leading  mental and behavioral health experts, social service providers, clinicians, community advocates, academics, other law enforcement agencies, the judiciary and members of SPD;

(4) a sufficient number of officers appear to be stationed throughout the city, and on all watches, to provide coverage for crisis incidents;

(5) SPD has institutionalized attention to crisis intervention work by establishing and funding the CIT Program, implementing training and data collection processes, and continuing to take the lead in maintaining the CIC; and

(6) SPD is making strong efforts to guide people in crisis into the social service system, as opposed to arresting and jailing them. 

“As we have seen across the country, interactions between police officers and people in crisis, particularly those with mental illness, are a critical issue facing police today,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Without proper policies and training, these interactions have too often led to force being used against individuals in crisis, at times with disastrous results for both the officers and the individual.  We have also seen that, without effective programs in place, individuals with mental illness or other disabilities are being unnecessarily arrested and jailed, impairing effective treatment and overburdening our jails.  The Seattle Police Department has made tremendous progress in addressing these issues, and it is quickly becoming a model for departments across the nation.”

“Police officers in Seattle are expected to make 10,000 contacts with people in crisis this year, and each of those encounters presents real and unique challenges to public safety and officer safety,” said U.S. Attorney Annette L. Hayes of the Western District of Washington.  “In the past, many interactions with people in crisis resulted in force being used, but organizational and operational changes around crisis intervention, including training officers and empowering them to use discretion and de-escalation, are making a real difference.  SPD has embraced best practices and are approaching and resolving crisis situations in ways that increase safety and reduce the use of force.”

The overall purpose of the assessment was to determine whether specially trained officers are being dispatched to incidents involving individuals in crisis, appropriately leading interactions with individuals in crisis and minimizing the need to use force against these individuals (for example through de-escalation techniques).  In addition, the monitoring team assessed efforts that underlie the SPD’s ability to effectively meet certain requirements of the consent decree, including: adequately training officers; providing sufficient staffing in the field; maintaining the CIC to help drive a thoughtful and collaborative crisis intervention process; ensuring the ability to properly dispose of crisis incidents, including with attempted referrals to the social service system or arrest where appropriate; and maintaining a data tracking system to provide an ongoing feedback loop to system improvement and accountability.

Contrasting the approach to policing those in crisis prior to the consent decree – when SPD, like many other departments, had “no consistent, unified approach to crisis events” – the monitor found that SPD “ha[d] created a full-fledged crisis intervention program that is successfully being woven into the SPD organization.”

The full assessment is attached. 

Previous assessments

Information about the previous assessments can be found here:

• First four assessments relating to use of force reporting and investigations: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-initial-compliance-requirements-relating-reporting
• Fifth assessment covering the Force Review Board: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-department-s-force-review-board-initial-compliance-consent
• Sixth assessment concerning the Office of Professional Accountability: http://www.justice.gov/usao-wdwa/pr/assessment-seattle-police-department-s-office-professional-accountability-filed-court
• Seventh and eight assessments covering public confidence and community trust: http://www.justice.gov/usao-wdwa/pr/assessments-public-confidence-and-community-trust-seattle-police-department-filed-court

Upcoming assessments

The next assessments to be filed in March include assessments of SPD’s Early Intervention System and three uses of force-related assessments covering officer uses of force, use of force data and officer activity level.  

Seattle Monitor's Assessment 

SEATTLE – Federal Monitor Merrick Bobb filed an assessment today that finds that the Seattle Police Department’s (SPD) new crisis intervention policies, training and operations to engage people in crisis are in initial compliance with the crisis intervention provisions of the court-ordered agreement with the Department of Justice.  The federal monitor filed the ninth of 15 formal assessments with the U.S. District Court and concluded that “there has been a real, tangible, and objective change in the way Seattle police are interacting, compassionately and with an eye towards treatment, with those in crisis.”

Specifically, the formal assessment found:

(1) SPD is dispatching its now large and trained cadre of crisis intervention-trained officers to crisis events in the great majority of instances;

(2) initial data indicates that officers use force against individuals in crisis less than two  percent of the time and, when they do use force, 80 percent of the time they use the lowest level of force – and did not once use the highest level of force – even in high-risk situations;

(3) over the past two years, all officers have received some level of crisis intervention training, which has been approved by the Department of Justice, the monitor and the federal court and developed in collaboration with the Crisis Intervention Committee (CIC), an all-voluntary interagency advisory committee composed of the region’s leading  mental and behavioral health experts, social service providers, clinicians, community advocates, academics, other law enforcement agencies, the judiciary and members of SPD;

(4) a sufficient number of officers appear to be stationed throughout the city, and on all watches, to provide coverage for crisis incidents;

(5) SPD has institutionalized attention to crisis intervention work by establishing and funding the CIT Program, implementing training and data collection processes, and continuing to take the lead in maintaining the CIC; and

(6) SPD is making strong efforts to guide people in crisis into the social service system, as opposed to arresting and jailing them. 

“As we have seen across the country, interactions between police officers and people in crisis, particularly those with mental illness, are a critical issue facing police today,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Without proper policies and training, these interactions have too often led to force being used against individuals in crisis, at times with disastrous results for both the officers and the individual.  We have also seen that, without effective programs in place, individuals with mental illness or other disabilities are being unnecessarily arrested and jailed, impairing effective treatment and overburdening our jails.  The Seattle Police Department has made tremendous progress in addressing these issues, and it is quickly becoming a model for departments across the nation.”

“Police officers in Seattle are expected to make 10,000 contacts with people in crisis this year, and each of those encounters presents real and unique challenges to public safety and officer safety,” said U.S. Attorney Annette L. Hayes of the Western District of Washington.  “In the past, many interactions with people in crisis resulted in force being used, but organizational and operational changes around crisis intervention, including training officers and empowering them to use discretion and de-escalation, are making a real difference.  SPD has embraced best practices and are approaching and resolving crisis situations in ways that increase safety and reduce the use of force.”

The overall purpose of the assessment was to determine whether specially trained officers are being dispatched to incidents involving individuals in crisis, appropriately leading interactions with individuals in crisis and minimizing the need to use force against these individuals (for example through de-escalation techniques).  In addition, the monitoring team assessed efforts that underlie the SPD’s ability to effectively meet certain requirements of the consent decree, including: adequately training officers; providing sufficient staffing in the field; maintaining the CIC to help drive a thoughtful and collaborative crisis intervention process; ensuring the ability to properly dispose of crisis incidents, including with attempted referrals to the social service system or arrest where appropriate; and maintaining a data tracking system to provide an ongoing feedback loop to system improvement and accountability. 

Contrasting the approach to policing those in crisis prior to the consent decree – when SPD, like many other departments, had “no consistent, unified approach to crisis events” – the monitor found that SPD “ha[d] created a full-fledged crisis intervention program that is successfully being woven into the SPD organization.”   

The full assessment is attached. 

Previous assessments

Information about the previous assessments can be found here:

• First four assessments relating to use of force reporting and investigations: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-initial-compliance-requirements-relating-reporting
• Fifth assessment covering the Force Review Board: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-department-s-force-review-board-initial-compliance-consent
• Sixth assessment concerning the Office of Professional Accountability: http://www.justice.gov/usao-wdwa/pr/assessment-seattle-police-department-s-office-professional-accountability-filed-court
• Seventh and eight assessments covering public confidence and community trust: http://www.justice.gov/usao-wdwa/pr/assessments-public-confidence-and-community-trust-seattle-police-department-filed-court

Upcoming assessments

The next assessments to be filed in March include assessments of SPD’s Early Intervention System and three use of force-related assessments covering officer uses of force, use of force data and officer activity fifth_systemic_assessment-crisis_intervention.pdf (1.98 MB)level. 

            A former Internal Revenue Service Revenue Agent was convicted today in U.S. District Court in Seattle of two felony counts related to receipt of a bribe, announced U.S. Attorney Annette L. Hayes.  PAUL G. HURLEY, 43, of Seattle, was convicted following a two day trial.  The jury deliberated for three days in reaching its verdict.  U.S. District Judge John C. Coughenour scheduled sentencing for May 13, 2016.

            According to testimony at trial and records filed in the case, in the summer of 2015 HURLEY was randomly assigned to audit the corporate taxes of Have a Heart Compassion Care, Inc., a medical marijuana dispensary.  In a meeting at one of the dispensary locations, HURLEY presented the owner of the dispensary with the findings of the audit.  HURLEY indicated to the business owner that he had ‘saved the owner millions’ during the audit and that he lived paycheck to paycheck.  HURLEY asked the business owner for $20,000.  The business owner and his attorney reported the bribe request to the FBI.  Working with law enforcement, the business owner met twice with HURLEY and in recorded conversations delivered cash in marked bills.  Some of this cash was seized from HURLEY at the time of his arrest following the second meeting with the business owner.

            At the trial, prosecutors noted that HURLEY had written on the audit paperwork that the business owner had no money to pay on his tax bill following the audit, even as HURLEY sought $20,000 to personally benefit from his work as a public employee.  “This is a case about what he didn’t do,” prosecutors told the jury, noting that HURLEY had failed to fulfill his duties as a revenue agent during the audit. 

            HURLEY had been a revenue agent with the IRS since 2009.  Receiving a Bribe by a Public Official is punishable by up to 15 years imprisonment and a $250,000 fine.

            The case was investigated by the FBI and by the Treasury Inspector General for Tax Administration (“TIGTA”).

                The case was prosecuted by Assistant United States Attorneys Justin W. Arnold and Francis Franze-Nakamura.  Press contact for the U.S. Attorney’s Office is Public Affairs Officer Emily Langlie at (206) 553-4110 or Emily.Langlie@usdoj.gov.

           Investigators with the Drug Enforcement Administration (DEA) and the Seattle Police Department (SPD) arrested the operator of a number of ‘clean and sober’ residential facilities on February 9, 2016, following an investigation that revealed the man was dealing illegal drugs, announced U.S. Attorney Annette L. Hayes.  TIMOTHY REHBERG, 50, of Everett was arrested Tuesday following a three-month investigation.  In a search of the office at the primary I.C. Clean People Recovery Housing, Incorporated facility in the 2900 block of Everett Avenue in Everett, authorities located approximately one pound of crystal methamphetamine, a quarter pound of heroin, small quantities of marijuana, oxycodone and methadone, and a .38 caliber revolver.  REHBERG will make his initial appearance on the criminal complaint in Seattle at 2:00 PM this afternoon.  He remains in custody pending a detention hearing.

            According to charging documents in Snohomish County, REHBERG came to the attention of law enforcement in December 2015, when a witness identified him as someone selling methamphetamine, heroin, and marijuana.  Further investigation confirmed REHBERG’s identity and his occupation as the owner and operator of a chain of clean and sober housing facilities under the name ‘I.C. Clean People Recovery Housing.’  The person working with law enforcement made four purchases of illegal drugs, including methamphetamine, heroin, and marijuana, from REHBERG.  REHBERG is prohibited from possessing firearms due to prior felony convictions as well as an active protection order from a domestic partner.

            The federal charges will be filed at the initial appearance this afternoon.  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 investigation was led by the DEA and SPD with assistance from Health and Human Services, Office of the Inspector General (HHS-OIG), the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Washington State Attorney General’s Office.

SEATTLE – A Montesano man arrested early Saturday morning is charged by criminal complaint with illegal firearms possession, announced U.S. Attorney Annette L. Hayes.  The complaint alleges that DANIEL SETH FRANEY, 33, a/k/a Abu Dawuud, possessed firearms in violation of a permanent protection order prohibiting him from possessing firearms.  On multiple occasions between September and November 2015, FRANEY handled several firearms, to include firing fully automatic machineguns on one occasion.  FRANEY will appear in U.S. District Court in Tacoma today, February 8, 2016, at 2:30 PM.

“This defendant possessed firearms, including machine guns, even though he knew he was prohibited from doing so.  He also discussed attacking members of the military and law enforcement,” said U.S. Attorney Annette L. Hayes.  “I commend the FBI and the Joint Terrorism Task Force for their diligent efforts to pursue all available leads to ensure the public was protected from any possible harm.”

As set forth in the complaint, beginning in April 2015, multiple Washington state residents began reporting to law enforcement 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.  They also reported hearing FRANEY advocate for 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 is not legally allowed to possess firearms.

FRANEY was captured on audio attempting to acquire firearms, particularly AK-47s.  FRANEY also discussed what he deemed were good targets for an attack.  In discussing his attack aspirations, FRANEY repeatedly referred to his support for ISIL.

“The FBI works diligently to have a positive relationship with the Muslim community,” said Frank Montoya, Jr., Special Agent in Charge of the FBI’s Seattle Division.  “From our conversations with Muslim community leaders, we know they reject this type of violent ideology and actively contribute to the security of our community, Washington State, and our country.”

FRANEY is charged by complaint with three counts of unlawful possession of firearms and two counts of unlawful possession of machineguns.  Each count is punishable by up to ten years in prison and a $250,000 fine.

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

The case is being 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.

          A 59–year old enrolled member of the Port Gamble S’Klallam Tribe was sentenced today in U.S. District Court in Tacoma to life imprisonment for five counts of aggravated sexual abuse of a minor.  In October 2015, a jury convicted LEROY CHARLES following a five day trial.  At sentencing U.S District Judge Ronald B. Leighton said, “Mr. Charles is in every sense an evil man…. Because of the awful offenses and fallout from those offenses, the pain and hurt he has inflicted makes these very serious offenses…This  (sentence) deters Mr. Charles from ever inflicting pain and hurt on anyone again.”

            “For years, this defendant raped and abused helpless children, and threatened them and their families with further violence,” said U.S. Attorney Annette L. Hayes.  “I commend the strength and perseverance shown by these now young adults in coming forward and seeking justice in this case.  Because of the victims’ courage, they have ensured that the defendant will never again have the opportunity to victimize children or other members of their community.”

          According to testimony at trial, between 1999 to 2005, CHARLES viciously raped his minor relatives when they were adolescents or young teenagers at various times and places on the Port Gamble S’Klallam reservation.  CHARLES overpowered the victims -- in one instance, drugging and then raping the child, and in another instance, tying up and raping the child.  CHARLES threatened to kill each of the victims and their families if they disclosed the abuse.  When one of the victims left the reservation, CHARLES traveled to the victim’s out-of-state residence, again threatening the victim and saying he would be able to find the victim anywhere.  Trial testimony also established that CHARLES raped two other minor aged relatives, in the mid 1980’s, when they were 5 and 6 years old.  For one of the relatives, the sexual assaults continued for years until the child was nearly 11 years old. 

            Writing to the court the Port Gamble S’Klallam Tribal Council told Judge Leighton, “The Council is worried that the tribe’s well-being would be jeopardized if the defendant is released.”

          The case was investigated by the Port Gamble S’Klallam Tribal Police and the FBI.  The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Bruce Miyake.

     The former cross country ski coach at a Seattle private school was sentenced today in U.S. District Court in Seattle to eight years in prison for transportation with intent to engage in criminal sexual activity, announced U.S. Attorney Annette L. Hayes.  JASON CHRISTOPHER PAUR, 45, of Seattle was arrested by the Royal Canadian Mounted Police in December 2013 at Silver Star ski area in British Columbia, Canada.  The arrest came after female students on a school sponsored field trip discovered a video camera had been hidden in their bedroom.  The camera had been positioned to video-tape the young students while they got dressed after showering.  PAUR pleaded guilty in November 2015.  At the hearing U.S. District Judge John C. Coughenour sentenced PAUR to 15 years of supervised release to follow the eight year prison term.

     “This betrayal of trust is every parent’s nightmare,” said U.S. Attorney Annette L. Hayes.  “I commend the victims, their families and the school who have remained steadfast in the pursuit of justice in this case.”

     According to records in the case, the investigation revealed that PAUR had secretly recorded students while on the annual school ski trip in 2011, 2012, and 2013.  The camera seized in Canada contained images of students between the ages of 14 and 17 being filmed while changing clothes or after exiting the shower.  In addition, PAUR secretly filmed students changing while on a cross country running trip in 2012, and in 2013, and filmed a student changing in a storage room at the private school.  PAUR used the pictures for his own sexual gratification.  PAUR traveled with the students to Canada knowing that he planned to film them for his own sexual gratification.

     PAUR was immediately removed from the field trip by the chaperones who notified police.  PAUR was fired by the school, which has fully cooperated with law enforcement.  Since his arrest in 2013, PAUR has been in custody either in Canada or in the Federal Detention Center at SeaTac.

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

     Press contact for the U.S. Attorney’s Office on February 2, 2016 is First Assistant United States Attorney Micki Brunner at (206) 553-7970.

SEATTLE – Assessments of the state of public confidence and community trust in the Seattle Police Department (SPD) were filed with the Court yesterday.  These assessments are the seventh and eighth – of 15 total – formal assessments by the Federal Monitor overseeing whether SPD is complying with the specific requirements and overall goals of the consent decree.  The public confidence and community trust surveys looked at progress towards a primary goal of reform: promoting public confidence in SPD, its officers and the services SPD delivers. 

An assessment of SPD’s Office of Professional Accountability was filed last week and can be found here.  Five previous assessments – which can be found here and here – related to SPD’s use of force reporting investigations and found that, with respect to four of them, SPD was in “initial compliance” with the requirements of the consent decree.  The two assessments filed today were not designed to evaluate compliance with specific terms of the consent decree.  Rather, these assessments surveyed the “many areas, initiatives, programs, and general characteristics that are commonly associated with community policing and public confidence in law enforcement – and [are] an evaluation of how SPD is doing with respect to each of them.”

“An overarching goal of reform is ensuring that the people of Seattle have trust and confidence in SPD’s ability to be responsive to a diverse community’s needs,” said Annette L. Hayes, U.S. Attorney for the Western District of Washington.  “The public confidence survey demonstrates that Seattle residents have increasing faith in SPD.  At the same time, it also helps identify areas where there remains work to do, particularly in isolated and marginalized communities, where positive perceptions are lagging.  The commitment of community stakeholders – including the Community Police Commission – to identify areas of concern and work with SPD to build strong public safety partnerships is to be commended.” 

The assessments of public confidence and trust in SPD include two elements.  The first is a statistically-valid survey of public confidence in the SPD and its officers.  That survey – which found the overall approval of SPD improving, disapproval of the department decreasing, and fewer troubling interactions between officers and Seattle residents, particularly African Americans and Latinos and notably with respect to the excessive use of force – was filed with the Court in October and can be found here.

The second element of the assessment is a qualitative review of SPD’s efforts to build public confidence with the community.  This review included conducting interviews over several months with SPD personnel; reviewing numerous documents and reports created by the SPD, Community Police Commission, and other governmental and community organizations; and interviewing community members from across Seattle.  The goal of the review was “to ensure efforts to implement community policing and increase public trust are aligned with recognized best practices in the field of policing today.” 

Overall, the Monitor found that, since the start of the consent decree, SPD “has not only fully embraced a community-oriented policing approach, but has demonstrated . . . a willingness to engage and join with the community in an effort that is impressive in focus and shows early signs of success.”  That said, the Monitor also noted that these efforts “are just a beginning of the steps necessary to cementing an organizational culture capable of building and sustaining trust with the community,” particularly in isolated communities. 

The full assessments are attached.

Aspects of community outreach and engagement have been tasked to the CPC as part of the consent decree process.  For instance, following also study and community outreach, the CPC recently released a report on SPD’s recruitment, hiring, and training practices addressing how well they promote engagement with members of the city’s diverse racial, ethnic, immigrant, and refugee communities.  This was the first of two reports the CPC was charged in the consent decree to complete.  The CPC has announced that it expects to release an additional report in the spring of 2016 that will examine the formal and informal channels of communication between the SPD and these same communities.  

Upcoming Assessments

The next assessment to be filed will address crisis-intervention and the dispatching of crisis-trained officers. Also filed in February will be an assessment of the Early Intervention System.  In March, assessments relating to supervisors, stops and detentions, and three use of force-related assessments covering officer uses of force, use of force data and officer activity level will be filed.

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          A Lynden, Washington man who was prosecuted in 2010 for interfering with a U.S. Border Patrol helicopter, was sentenced today to eight months in prison, four months of home detention and a $10,000 fine for assault on a federal officer, announced U.S. Attorney Annette L, Hayes.  In July 2015, WAYNE P. GROEN, 46, intentionally drove his truck at a high rate of speed towards three U.S. Border Patrol agents who were working on the side of a road near GROEN’s home.  At the sentencing hearing U.S. District Judge James L. Robart called GROEN’s conduct “deeply disturbing” and said it was “extremely dangerous, extremely stupid and extremely filled with the potential for dangerous harm to others.”

            According to records filed in federal court, GROEN has had a series of escalating interactions with law enforcement over the last six years.  In 2010, he was sentenced to 60 days in jail after he shined a spotlight at a CBP helicopter flying near his property, temporarily blinding the pilot who was forced to take precautions to avoid a crash.  Even after that conviction and jail time, GROEN did not change his behavior and engaged in various aggressive interactions with law enforcement, culminating in the July 2015 event where he saw the agents working near his property.  GROEN got into his truck for the sole purpose of trying to run the agents off the road.  GROEN first swerved at high speed towards two agents on one side of the road, and then drove in the lane for on-coming traffic to swerve towards a third agent on the other side of the road.  Fortunately, all three agents were able to jump out of the way. 

            GROEN has been in prison since he was arrested for the assault in August 2015.  After GROEN pleaded guilty, he met with representatives of the U.S. Border Patrol to apologize for his conduct.  In court today GROEN claimed he now understands the damaging impact of his conduct, and is hoping for a positive relationship with the Border Patrol.  GROEN said he is working with his family to ensure they are co-operative with law enforcement in the future.  Judge Robart sentenced him to 50 hours of community service as well as the prison term, home confinement and fine.  Judge Robart suggested GROEN do some of that community service by telling groups in the Lynden community what he has learned from his criminal conviction. 

            The case was investigated by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) and the Whatcom County Sheriff’s Office.  The case was prosecuted by former Assistant United States Attorney Jerrod Patterson and by Assistant United States Attorney Todd Greenberg.

          A 57-year-old repeat bank robber was sentenced today in U.S. District Court in Seattle to 127 months in prison and three years of supervised release for multiple bank robberies and the armed robbery of the Nordstrom fine jewelry department, announced U.S. Attorney Annette L. Hayes.  WILLIAM MITCHELL was arrested in Grants Pass, Oregon on November 12, 2014, following a string of robberies in Washington State and the robbery of the downtown Nordstrom fine jewelry department on September 11, 2014.  At sentencing U.S. District Judge Richard A. Jones said, “In committing these robberies you displayed a callous disregard for the victims and a callous disregard for the consequences of your actions.” 

          “Seeing a firearm brandished during a bank robbery is a searing experience for anyone who is there,” said United States Attorney Annette L. Hayes.  “I commend the FBI and Seattle Police Department for their work on this case that will ensure this defendant will not be able to victimize more bank tellers and patrons for a very long time.” 

            According to records filed in the case, MITCHELL was identified as a serial bank robbery suspect following the robberies of Homestreet Bank in Seattle (July 28, 2014), Wells Fargo Bank in Seattle (July 29, 2014), Timberland Bank in Olympia (October 30, 2014) and Numerica Federal Credit Union in Spokane (November 7, 2014).  Seattle police also used DNA evidence to connect MITCHELL to the armed robbery of the Nordstrom store.  DNA evidence also connected MITCHELL to bank robberies in Naples, Florida on April 4, 2014 and in Santa Barbara, California on October 2, 2014.  Speaking with investigators following his arrest, MITCHELL admitted he also committed bank robberies in South Burlington, Vermont on July 5, 2014, Ocean Springs Mississippi on May 23, 2014 and Manchester, New Hampshire, on May 30, 2014.

            In some of the robberies MITCHELL was armed with a .22 caliber hand gun.  In others he was armed with a pellet gun or an airsoft gun – both of which appeared to the victims to be deadly firearms.

            MITCHELL has an extensive criminal history in Canada and the U.S. dating back to the early 1980s.  In 1990 MITCHELL was sentenced to 207 months in prison for eleven armed bank robberies in Florida, Wisconsin, California and Washington.

            The case was investigated by the FBI and the Seattle Police Department.  The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs.  Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.

SEATTLE - A former resident of Mercer Island, who stole more than $220,000 from immigrants with promises of immigration assistance, was sentenced today in U.S. District Court in Seattle to 16 months in prison and $222,900 in restitution for four counts of wire fraud, announced U.S. Attorney Annette L. Hayes.  DALIA IVETTE SINGH, aka Dalia Pena, 62, now a resident of Clearwater, Florida, pleaded guilty in October 2015.  At the sentencing hearing U.S. District Judge Richard A. Jones called her behavior “predatory” saying she preyed on those “least able to defend themselves... Her sole purpose was to take money from people who could least afford it.” 

“This defendant not only stole money from vulnerable immigrants, she created false hopes and destroyed dreams,” said United States Attorney Annette L. Hayes.  “This case is a reminder that there are imposters who prey on those who fear deportation.  As this case demonstrates, members of our immigrant communities can safely reach out to law enforcement to report these kinds of scams and frauds, and be assured that those responsible will be held to account.”

According to court records, between 2008 and 2011, SINGH defrauded more than 40 immigrants from the Caribbean and Latin America.  SINGH charged some families as much as $36,000, claiming she had a contact with U.S. Citizenship and Immigration Services (USCIS) who could provide the immigrants with legal status in the United States.  SINGH claimed her USCIS contact ran a special program the immigrants could use to get legal status.  There was no such program and no USCIS contact – SINGH fabricated the story to defraud the victims.  The fake program SINGH described required enrollment of a group of people, not just individuals, and so she encouraged victims to recruit more people to enroll with them.  In one instance, Singh defrauded about 30 members of a church out of nearly $100,000 with her false promises.

“Those who choose to capitalize on the fear of deportation to victimize immigrants and undermine our nation’s legal immigration system will be held accountable for their actions,” said Shawn Fallah, resident agent in charge of ICE’s Office of Professional Responsibility in Seattle.  “We will continue to work tirelessly with our law enforcement counterparts to investigate criminals and imposters who manipulate and exploit the system for their own personal gain and see that they are brought to justice.”

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and its Office of Professional Responsibility (OPR).

A 35-year-old citizen of Belarus will appear in U.S. District Court in Seattle today following his arrest last year in Vienna, Austria and extradition to the Western District of Washington, announced U.S. Attorney Annette L. Hayes.  ALEXANDER MIHAILOVSKI was indicted in August 2012 for conspiracy to commit wire fraud, accessing a protected computer in furtherance of fraud, and intentional damage to a protected computer.  MIHAILOVSKI will make an initial appearance today before U.S. Magistrate Judge John L. Weinberg.

“This defendant has now learned the hard lesson that so many other cyber criminals have had to confront: engaging in cybercrime from another country is not an effective shield from being held to account,” said United States Attorney Annette L. Hayes.  “This defendant made his initial appearance today because we worked diligently with our law enforcement partners around the world to identify and extradite him.  Like others who have committed crimes in our district, this defendant will have his day in court subject to all the protections our criminal justice system provides.  But if found guilty, he will be held responsible for the very real harm he caused to the victims of his scam.” 

            According to the indictment, MIHAILOVSKI operated a credit card payment processing company called Mystique Enterprises LTD, doing business as PSBILL.  MIHAILOVSKI and his company were part of an international cybercrime ring that netted $71 million by infecting victims’ computers with “scareware” and selling rogue antivirus software that was supposed to secure victims’ computers but was, in fact, useless.

The prosecution of MIHAILOVSKI is part of Operation Trident Tribunal, a coordinated enforcement action targeting international cybercrime rings that caused more than $71 million in total losses to more than one million computer users through the sale of fraudulent computer security software known as “scareware.”  Scareware is malicious software that poses as legitimate computer security software and purports to detect a variety of threats on the affected computer that do not actually exist.  Users are then informed they must purchase what they are told is anti-virus software in order to repair their computers.  The users are then barraged with aggressive and disruptive notifications until they supply their credit card number and pay for the “anti-virus” product, which is, in fact, fake.

The scareware scheme used a variety of ruses to trick consumers into unknowingly infecting their computers with the malicious scareware products, including web pages featuring fake computer scans.  Once the scareware was downloaded, victims were notified that their computers were infected with a range of malicious software, such as viruses and Trojans and badgered into purchasing the fake antivirus software to resolve the non-existent problem at a cost of up to $129.  An estimated 960,000 users were victimized by this scareware scheme, leading to $71 million in actual losses. 

MIHAILOVSKI is the second foreign national prosecuted in the scheme.  In December 2012, Mikael Patrick Sallnert, 40, a citizen of Sweden, was sentenced to four years in prison and was ordered to pay $650,000 in forfeiture.  Sallnert also served as a credit card payment processor for the crime ring.

This case is being investigated by the FBI Seattle Division Cyber Task Force and other FBI entities.  The case is being prosecuted by Assistant U.S. Attorney Norman Barbosa.  Substantial assistance was provided by the Criminal Division’s Office of International Affairs and the Computer Crime and Intellectual Property Section.

Critical assistance in the investigation was provided by the Security Service of Ukraine, German Federal Criminal Police, Netherlands National High-Tech Crime Unit, London Metropolitan Police, Latvian State Police, Lithuanian Criminal Police Bureau,  Swedish National Police Cyber Unit, French Police Judiciare, Royal Canadian Mounted Police, Romania’s Directorate for Combating Organized Crime, Cyprus National Police in cooperation with the Unit for Combating Money Laundering, the Danish National Police, and the Austrian Federal Ministry of Justice.

To avoid falling victim to a scareware scheme, computer users should avoid purchasing computer security products that use unsolicited “free computer scans” to sell their products.  It is also important for users to protect their computers by maintaining an updated operating system and using legitimate, up-to-date antivirus software, which can detect and remove fraudulent scareware products.

Computer users who think they have been victimized by scareware should file a complaint with the FBI’s Internet Crime Complaint Center, www.ic3.gov.

SEATTLE – The assessment of the Seattle Police Department’s (SPD) Office of Professional Accountability (OPA) was filed with the Court today.  The assessment constitutes the sixth – of 15 total – formal assessments by the Federal Monitor overseeing whether SPD is complying with the specific requirements and overall goals of the consent decree.  The assessment examined the intake of complaints, and investigations of officer misconduct. 

The previous five assessments – which can be found here and here – related to SPD’s use of force reporting investigations and found that, with respect to four of them, SPD was in “initial compliance” with the requirements of the consent decree.  The assessment filed today was not designed to evaluate compliance with specific terms of the consent decree.  Rather, it sought to provide information that would guide (1) revisions to two OPA policies and the OPA Training and Operations Manual (filed with the Court this week), and (2) the process currently underway for evaluating proposals to improve the civilian oversight and accountability system. 

“At the heart of this assessment is a core goal of reform: ensuring that complaints about officer misconduct are handled transparently, expeditiously, and with integrity,” said Annette L. Hayes, U.S. Attorney for the Western District of Washington.  “This assessment has already informed changes to the way OPA works, and will be critical in further refining how civilian oversight works in Seattle.” 

The civilian-led OPA conducts SPD’s complaint-driven administrative investigations of officer misconduct.  The OPA assessment specifically evaluated the effectiveness of three areas of these administrative investigations: (1) the design of the process and protocols; (2) the adjudication/review phase; and (3) the investigations themselves.

The Monitor concluded, as to design of the process, that SPD’s complaint investigation process is “exceptionally strong and very well structured.”  The Monitor noted that the process requires extensive documentation and redundancy from intake to follow-up to case summary to case completion with internal and external transparency built into the structure.  The Monitor also noted that the classifications and findings systems that the Department of Justice – and many community members – concluded were too complex and undermined credibility have been streamlined. 

With respect to the effectiveness of adjudication and review, the Monitor concluded that the “back-end” review phase is “among the strongest we have seen,” noting significant advances since DOJ concluded in its investigation in 2011 that OPA overused and misused a now-defunct remediation of “Supervisory Intervention” to dispose of serious complaints.

In the third area of review – the strength of the investigations themselves – the Monitor found the quality of 86 percent of OPA’s investigations are either adequate or superior.  To the extent there were inadequate investigations that did not establish sufficient information to support an evidence-based evaluation of an incident, the Monitor identified three areas: (1) the quality and consistency of interviews; (2) the timeliness of interviews; and (3) those investigations that raise potential criminal or terminable offenses (such as false statements).  The full OPA assessment is attached below.

Upcoming Assessments

The Monitor’s assessment of Public Confidence and Trust in the Seattle Police Department will be filed next week.  That assessment evaluates SPD efforts at promoting public confidence in SPD, its officers, and the services SPD delivers.  

The next assessment to be filed will address crisis-intervention and the dispatching of crisis-trained officers.  Also filed in February will be an assessment of the Early Intervention System.  In March, assessments relating to supervisors, stops and detentions, and three use of force-related assessments covering officer uses of force, use of force data and officer activity level will be filed.

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          An enrolled member of the Tulalip Tribes was convicted today in U.S. District Court in Seattle of seven charges involving his repeated assault of an intimate partner, announced U.S. Attorney Annette L. Hayes.  Following a six day jury trial, BRIAN H. JONES, SR., 46, 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.  The jury deliberated six hours before returning its verdicts.  U.S. District Judge Richard A. Jones scheduled sentencing for May 6, 2015.

            According to records filed in the case and testimony at trial, JONES assaulted both his ex-wife and her then-current 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, and 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. 

            JONES faces up to twenty years in prison for each of the crimes of assault by strangulation, assault resulting in serious bodily injury, assault with a deadly weapon, and witness tampering.  He faces a mandatory minimum term of seven years in prison consecutive to the other sentences for assault with a deadly weapon.  JONES also faces up to ten years in prison for the crime of felon in possession.

            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.