Western District of Washington

A leader of the Ghost Riders motorcycle gang in Pierce County was sentenced today in U.S. District Court in Tacoma to five years in prison for possession of an unregistered short-barreled shotgun and being a felon in possession of explosives, announced U.S. Attorney Jenny A. Durkan.  KARL TWILLEAGER, a/k/a “King Karl”, 66, of Spanaway, Washington, has been in custody since his property was searched on June 13, 2013 and the weapons were discovered.  The explosives were being stored for a retaliatory attack on a rival gang.  U.S. District Judge Ronald B. Leighton imposed the sentence.

“The possession of illegal firearms and explosives by violent felons endangers a whole community,” said U.S. Attorney Jenny A. Durkan.  “This defendant and his gang planned a violent attack on rivals that could have caused serious injuries or deaths.  Innocent bystanders could have been caught up in the carnage.  The very act of storing those explosives illegally in the storage locker posed risks to the community should they be stolen or ignite accidently.”

According to the plea agreement signed in September 2013, ATF agents searched a Spanaway storage locker belonging to TWILLEAGER and found more than two sticks of Emulsion explosives and four blasting caps.  They also recovered six firearms, including three rifles, two shotguns, and a handgun, as well as additional ammunition and empty ammunition magazines.  Two days later they searched TWILLEAGER’s home and a shed on the property that was used as the Ghost Riders clubhouse.  They seized multiple rounds of different calibers of ammunition, and six more firearms, including four handguns, a rifle, and a J.C. Higgins model 20 12-gauge short-barreled shotgun, with a barrel length of approximately 15.5 inches with no serial number.  TWILLEAGER was convicted of second degree murder in Grant County, Washington in 1994 and is therefore prohibited from possessing firearms and explosives.
In asking for a five year sentence, prosecutors noted that the ‘Ghost Riders’ motorcycle gang was preparing for a violent attack.  “The government believes that the gel explosives and at least some of the firearms were gathered for the purpose of a planned violent attack on ‘Uncle Sam’s Bar and Grill’ in Spanaway, known to be a favored hangout of a rival motorcycle gang, the Bandidos.  This attack was to be in retaliation for Defendant Twilleager and about eight of his “brother” Ghost Riders having been tricked and assaulted at that very location on June 2, 2012 (almost exactly a year earlier),” prosecutors wrote in their sentencing memo.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Pierce County Sheriff’s Office Bomb Squad, the Washington State Patrol SWAT Team, the South Sound Gang Task Force, and the Seattle Police Department, and was prosecuted by Assistant United States Attorney Gregory A. Gruber.

            A southwest Washington cancer researcher was sentenced today in U.S. District Court in Tacoma to 18 months in prison, three years of supervised release and $376,679 in restitution for tax evasion, announced U.S. Attorney Jenny A. Durkan.  PETER D. URREA, 74, of Washougal, Washington made a variety of phony documents to avoid paying $376,679 he owed in income taxes for years 2005-2009.  At sentencing U.S. District Judge Ronald B. Leighton said, “this crime is unique because of its depth, and the tenacity and persistence” involved.

            “Instead of devoting all his energies to his cancer research, this defendant schemed to avoid paying his fair share of taxes – the very income that the government uses to fund trials and approval processes for the drugs he works to develop,” said U.S. Attorney Jenny A. Durkan.  “No one enjoys paying taxes, but it is an obligation we all share to keep our country strong and our safety nets in place.”

            According to records filed in the case, URREA began his scheme in 2004 by creating and filing W-2C forms on behalf of his employer Taiho Pharma USA.  These forms he created and filed, falsely indicated that Taiho Pharma paid him less than half his actual salary.  URREA created other forms to indicate some of the funds were paid to a company he controlled – then URREA falsified the business expenses associated with the company to reduce his tax obligation.  URREA engaged in this scheme for four years, from 2004-2008.  Because URREA failed to file all of the documents required when a company amends a W-2 form, the IRS started looking into the filings in 2009.  Taiho Pharma questioned why URREA was filing a W-2C, since those forms are only to be filed by the employer.  URREA attempted to blame a different employee at Taiho Pharma, claiming he had been acting on that person’s advice.  When the IRS asked for records related to expenses in tax years 2004-2008, URREA created a letter from a fictitious Vice President at Taiho Pharma indicating URREA would be responsible for all his research expenses – the company confirmed no such person ever worked there.

“Those who engage in dishonesty and deceit to cheat the tax system will be held accountable”, said Tamera Cantu, Assistant Special Agent in Charge of IRS Criminal Investigation in Seattle.

URREA pleaded guilty to an information charging tax evasion in July 2013.

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

A 30-year-old Seattle man who operated a ‘Ponzi scheme’ disguised as real estate investment opportunities in Peru, was sentenced today in U.S. District Court in Seattle to ten years in prison for wire fraud and money laundering, announced U.S. Attorney Jenny A. Durkan.  JOSE L. NINO DE GUZMAN, Jr., ran NDG Investment Group, LLC from 2006 until 2009 when his scheme collapsed.  The Washington State Department of Financial Institutions issued a cease and desist order in 2010 concerning his fraudulent sales of investment opportunities.  DE GUZMAN raised more than $30 million from over 200 investors for real estate investments in Peru.  However, most of the investments described to investors did not occur, instead DE GUZMAN spent investor money on homes, a yacht, jewelry and other luxuries, and to pay off earlier investors.  At sentencing U.S. District Judge Robert S. Lasnik said DE GUZMAN made “obscene expenditures of funds on hedonistic things for pride, hubris and ego.”  In discussing DE GUZMAN’s misconduct, Judge Lasnik said it was “beyond anything this court has seen before.”  Judge Lasnik called DE GUZMAN a “proven con man and a danger to the community.”

“This defendant committed a brazen, Ponzi-scheme spanning nearly three years and two continents and involving tens of millions of dollars, and more than 180 victims,” said U.S. Attorney Jenny A. Durkan.  “Month after month, day after day, Nino de Guzman lied to his friends and family and other investors, separating them from their hard-earned money, simply so he could live a lavish lifestyle.  And when his web of lies unraveled, he desperately tried to knit together other stories to avoid accountability.  The work of state authorities and the FBI put an end to his fraud.”

According to records filed in the case, DE GUZMAN left school at the University of Washington without graduating and at the age of 23 founded NDG Investment Group LLC.  Prior to starting the company in September 2006, DE GUZMAN had been employed by U.S. Bank as a teller and then as a personal banker.  However, despite his true background, DE GUZMAN solicited investors by telling them he had worked at U.S. Bank for three years as a business and commercial lending officer and specialized in fixed income with a focus on real estate.

DE GUZMAN made numerous misrepresentations about his success and the most basic fundamentals of the investments.  For example, DE GUZMAN falsely represented to investors that he had a proven track record of successfully developing real estate through an established company in Peru; that the investors’ funds would be used for specific real estate projects and that the investments were secured by real property in Peru; that investors would get a high rate of return on their investments when the development projects were complete; and that NDG would only receive a portion of the profits upon successful completion of the projects and after all the investors had received their original investment and projected rates of return.  These representations were false.  Neither DE GUZMAN nor NDG had ever successfully completed any real estate projects in Peru and, despite raising funds for approximately twenty projects, had only purchased a limited number of real properties.  No projects ever generated a profit.  Nevertheless, NINO DE GUZMAN told the investors their projects were completed or were progressing, and he sent periodic, fraudulent “updates” to investors, including showing “construction” sites for projects in which the land had not even been purchased.  Investors’ funds instead were used to fund DE GUZMAN’s expensive lifestyle, including the purchase of a $365,000 diamond ring, a $600,000 yacht, a $250,000 suite for Seahawks games and a $200,000 Bentley automobile.  Moreover, as in a classic Ponzi scheme, DE GUZMAN used millions of dollars of investors’ funds to pay off previous investors to continue the illusion that DE GUZMAN was a successful developer, and to induce additional investors.

DE GUZMAN pitched his investment opportunity at expensive downtown clubs and hotels, and emphasized NDG’s established alliances and relationships with well-known businesses and individuals.  Some of the investors were the parents or friends of people employed by NDG, and it was some of these employees who first reported DE GUZMAN to regulators when they became aware of the fraud.

“Nino de Guzman's scheme stole the dream of retirement and financial security from his victims,” said Steven J. Bellis, Assistant Special Agent in Charge of IRS Criminal Investigation in Seattle.  “I am pleased that the dedicated agents of IRS CI were able to bring their expertise in rooting out financial fraud to the law-enforcement team that put an end to the deception and held Nino de Guzman accountable for his crimes.”

“The severity of this sentence recognizes the outrageous conduct of a con man who took others’ life savings and ruined trusted relationships with friends and family.” said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle field office.  “The FBI had excellent partners in the IRS and DFI, together uncovering the extent of Nino De Guzman’s many lies and many victims, and in the USAO, who worked tirelessly on this case.  The lengthy joint investigation and the dedicated prosecution show our shared commitment to bring financial criminals to justice.”

DE GUZMAN was arrested on a criminal complaint on July 7, 2011, and was indicted by the grand jury later that month.  He pleaded guilty to wire fraud and money laundering on July 19, 2013.  He has been in custody since his 2011 arrest.  Judge Lasnik ordered him to pay $18,321,209 in restitution and imposed three years of supervised release following prison.  In addition, Judge Lasnik entered a money judgment in the amount of $31,618,674 against DE GUZMAN.

The case was investigated by the Washington State Department of Financial Institutions (DFI), the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorneys Tessa Gorman and Justin Arnold, as well as Special Assistant United States Attorney Robert Kondrat, who is a DFI attorney cross-designated to the United States Attorney’s Office to prosecute securities fraud cases.

A 22-year-old man who was arrested in July 2013 by University of Washington Police in a stolen truck with stolen firearms, body armor and gasoline incendiary devices, pleaded guilty today in U.S. District Court in Seattle, announced U.S. Attorney Jenny A. Durkan.  JUSTIN MILES JASPER pleaded guilty to transportation of a stolen vehicle, possession of a stolen firearm and possession of destructive devices.  He is scheduled for sentencing by U.S. District Judge Ricardo S. Martinez on February 20, 2014.

JASPER was arrested on July 3, 2013 near the UW campus in Seattle.  He was driving a 1998 Dodge Ram 2500 pick-up truck with Montana plates.  The truck had been reported stolen by the owner in Butte, Montana.  Inside the truck police found a Stevens Model 311A double-barrel 12-gauge shotgun, with no serial number, and a Mauser Model 1895 bolt-action rifle.  Both guns had been stolen from the same owner as the truck.  According to the plea agreement, the truck also contained six destructive devices commonly referred to as “Molotov cocktails.”

Under the terms of the plea agreement, both the prosecution and defense will recommend a sentence of three years in prison and three years of supervised release.  Both sides will recommend that Judge Martinez require mental health counseling while JASPER is on supervised release and will recommend the Bureau of Prisons place JASPER at a facility with mental health treatment while he is incarcerated.

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

A former western Washington real estate developer and his long-time girlfriend were sentenced today in U.S. District Court in Seattle for 25 counts of tax evasion and false statements related to their scheme to avoid paying taxes on more than $23 million in income, announced U.S. Attorney Jenny A. Durkan.  WINSTON BONTRAGER, 64, was sentenced to 11 years in prison and three years of supervised release.  His long-time girlfriend, PAULINE ANDERSON, 65, was sentenced to 39 months in prison.  As an Australian citizen, she likely will be deported following her prison term.  Both will share a restitution obligation of $2,717,510.  The couple was indicted in March 2012, and both have been in federal custody since June 2012.  They were convicted following a four week jury trial in July 2013.  At sentencing U.S. District Judge Richard A. Jones said to BONTRAGER, “You were a one man wrecking ball in the lives of many people...  You believed you had immunity from restitution and tax obligations...  You lived the lifestyle of the rich and famous while lying and cheating to avoid tax obligations.”

“This is Mr. Bontrager’s third conviction and sentencing hearing before a federal judge in Western Washington,” said U.S. Attorney Jenny A. Durkan.  “Despite having more than enough money to pay his taxes and his debt to society, this defendant brazenly thumbed his nose at every governmental agency and institution that he came into contact with, by lying, cheating and deceiving them, for one sole purpose: greed.”

BONTRAGER was previously convicted in 1983 for bank fraud and in 1994 for defrauding the Oregon Public Employees Retirement System and the IRS of over $687,000.  In 1994 he was sentenced to 40 months in prison.  BONTRAGER made numerous false statements surrounding his failure to pay more than $687,000 in restitution from his prior conviction.  During the trial prosecutors detailed how BONTRAGER and ANDERSON filed false tax returns from 2004-2009, failing to report more than $23 million in income and failing to pay more than $2.7 million in taxes.  Over $10 million was moved into foreign bank accounts in PAULINE ANDERSON’s name, and virtually all of the couples’ assets were put in ANDERSON’s name in order to hide it from the IRS and those seeking to enforce BONTRAGER’s restitution obligation and collect delinquent taxes.  At the same time that the couple paid little in income taxes, they purchased a luxury condominium in Bellevue and spent approximately $500,000 on an extensive remodel.  They owned a $325,000 wine collection, a $1.2 million home in Southern California, a 6.7 carat diamond ring, a Bentley worth $186,000, and they spent over $3.4 million in credit card purchases, including travel, cosmetic surgery, cosmetic dentistry, restaurants, and clothing and shoes.
At trial prosecutors described various development deals in Vancouver, Washington where BONTRAGER made millions of dollars, in some instances defrauding business partners as well as the IRS.

“Mr. Bontrager refused to pay court-ordered restitution to his victims from a previous fraud conviction.  Mr. Bontrager clearly failed to learn his lesson and continued to commit fraud.  In his latest scheme, he defrauded his new business partners and the American taxpayers.  He also enlisted the help of Ms. Anderson to conceal his fraud and ill-gotten gains,” said Kenneth Hines, Special Agent in Charge of IRS Criminal Investigation in Seattle.  “Today's sentences show that greed is a powerful emotion that cloud judgment and motivate people to abuse the trust of others.”

BONTRAGER was convicted of nine tax counts and eight counts of making false statements.  ANDERSON was convicted of 11 tax counts.

The case was investigated by the Internal Revenue Service Criminal Investigation.  The case was prosecuted by Assistant United States Attorney Carl Blackstone.

A drug and gun smuggler based in Arizona was sentenced yesterday in U.S.  District Court in Seattle to 15 years in prison for his role in a wide ranging international drug conspiracy, announced U.S. Attorney Jenny A. Durkan.  RAUL ANCHONDO, 29, was convicted in May 2013, of Conspiracy to Distribute Controlled Substances, Conspiracy to Possess Firearms in Furtherance of Drug Trafficking Crimes & Crimes of Violence, and Possession of Firearms in Furtherance of a Drug Trafficking Crime.  Judge Robert S. Lasnik also imposed five years of supervised release as part of the sentence.

“This defendant was personally involved in moving large amounts of heroin and methamphetamine, drug proceeds, and military-style firearms on behalf of a violent drug cartel,” said U.S. Attorney Jenny A. Durkan.  “The drugs directly contribute to the cycle of addiction and abuse in Western Washington and the drug proceeds and firearms feed violence and destruction in Mexico.”

ANCHONDO was arrested in March 2012, following a lengthy investigation of the drug trafficking ring.  According to records filed in the case, during the investigation, agents seized multiple kilos of heroin, pounds of methamphetamine, and more than a dozen firearms, including military-style assault rifles which were bound for cartel members in Mexico.  During the course of the investigation, federal agents were able to interdict a shipment of a dozen weapons to Mexico, preventing high powered firearms from crossing the border.  In all, 34 people have been charged in the case.  Conspiracy leader Victor Berrelleza-Verduzco was sentenced in September 2013 to 20 years in prison.

According to testimony at trial, ANCHONDO ran a stash house for drugs and bulk cash in Arizona, and later became a courier, bringing multi-pound loads of methamphetamine and kilos of heroin up to Western Washington in hidden compartments of various load vehicles.  The compartments would be loaded with cash for the return trip – as much as $100,000 to $300,000 headed back to Mexico.  ANCHONDO helped pack and ship the drugs – the packages were wrapped in a distinctive way with the initials of the drug leaders in Mexico responsible for the load noted on the packaging.  At the direction of the conspiracy leaders, members of the conspiracy slept with firearms at their sides to protect the drugs and the cash.  ANCHONDO also received two high powered weapons for shipment to Mexico, and used other firearms during the course of the conspiracy.

This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  The case was investigated by the ICE’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco and Firearms (ATF), the Drug Enforcement Administration (DEA), the Lake Stevens Police Department, the Snohomish Police Department, Washington State Patrol, the Snohomish Regional Drug Task Force and the Seattle Police Department.

The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and John McNeil.

A 35-year-old Renton, Washington man was sentenced today in U.S. District Court in Seattle to five months in prison,  three years of supervised release, including five months in a halfway house, and $75,389 in restitution for wire fraud in connection with his scheme to advertise and sell fake Chihuly artwork, announced U.S. Attorney Jenny A. Durkan.  MICHAEL LITTLE bought various pieces of generic glasswork and artwork over the internet and falsely claimed to buyers that it was authentic Dale Chihuly work.  LITTLE continued his sales scheme even after eBay removed some of the postings, and PayPal reversed one of the purchases after being alerted to the fraud.  U.S. District Judge Robert S. Lasnik imposed the sentence.

“This defendant was persistent and creative in his fraud that recycled ordinary glass into costly works of art,” said U.S. Attorney Jenny A. Durkan.  “Fraud schemes like this one target all artists and damage confidence in the online marketplace.”

According to records in the case, between 2011 and April 2013, LITTLE offered for sale or sold various pieces of glass art and paintings that he represented were the original work of Dale Chihuly.  LITTLE marketed the works via eBay.  The artworks bore a signature that appeared to be Chihuly’s and LITTLE provided paperwork that he said authenticated the pieces as the work of Dale Chihuly.  However, an expert in Chihuly’s work examined the pieces at the request of a number of the purchasers and determined they were fakes.  The papers that were supposed to authenticate the works were forged.  LITTLE told various stories to potential buyers about how he had acquired the Chihuly work, including that his family had purchased the pieces after winning the lottery.  As early as 2011, PayPal had reversed one purchase, and eBay had removed some of LITTLE’s postings after being alerted to the fraud.  Despite the warning, LITTLE persisted in posting and selling the art in person, online and through a Renton auction house.

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

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

            A repeat offender who used recorded jail telephone lines to try to get his girlfriend to hide his gun from law enforcement, was convicted late yesterday of being a felon in possession of a firearm.  HERBERT D. ZENO, 33, a known gang member from the Vancouver, Washington area was convicted following a three day jury trial.  ZENO was arrested and booked into the Clark County Jail on January 31, 2013.  ZENO was charged federally February 19, 2013.  When sentenced by U.S. District Judge Ronald B. Leighton on January 31, 2014 , ZENO faces up to ten years in prison.

According to testimony presented at trial, on the same day of his arrest on state charges, ZENO used the jail telephone system to attempt to get his girlfriend to hide a firearm he possessed.  The jail calls were monitored and recorded.  The recorded phone calls resulted in a  court authorized search for the firearm.  It was discovered hidden under a dresser in ZENO’s mother’s home.  ZENO has prior convictions for drug possession (2003, 2005), robbery (2002) and illegal firearm possession (2002).  ZENO’s prior convictions bar him from possessing firearms.  ZENO has tattoos identifying him as a Bloods gang member and the firearm was found wrapped in a red Bloods bandana – a sign of his ownership.

The case was investigated by the FBI’s Safe Streets Gang Task Force which contains officers from the Vancouver Police Department and Clark County Sheriff’s Office.  The Bureau of Alcohol, Tobacco, Firearms & Explosives assisted with the investigation.

The case was prosecuted by Assistant United States Attorneys Michael Dion and Thomas Bates.

The former Chairman and CEO of Summit Bank, a Skagit County community bank, was sentenced today in U.S. District Court in Seattle to three years in prison and two years of supervised release for Making a False Entry in a Report of an Insured Bank, announced U.S. Attorney Jenny A. Durkan.  JAMES E. BISHOP, 70, of Mount Vernon, Washington pleaded guilty August 21, 2013.  In his plea agreement BISHOP admits that between 2009 and 2011, BISHOP and his son, who was the bank president, concealed from regulators the mounting number of loans that were in default.  Summit bank was ultimately closed by state regulators and sold in May 2011.  At sentencing Chief U.S. District Judge Marsha J. Pechman noted the length of the scheme, the number of accounts manipulated and the control BISHOP exerted over employees to stop them from notifying regulators.  “This conduct hurts communities greatly,” Chief Judge Pechman said.

“This defendant falsified reports to save ‘his’ bank and his fortune,” said U.S. Attorney Jenny A. Durkan.  “Rather than be up front with the regulators about the condition of the bank, the defendant and his son initiated a high-stakes shell game to deceive the FDIC.  Through his actions he shifted the risk for losses to the FDIC, and consequently to the public.”

According to the records filed in the case, in 2005 JAMES E. BISHOP became CEO of Summit Bank and Chairman of Summit Bank’s Board of Directors.  His son, James E. Bishop II, served as president of the bank, and both were significant shareholders in the bank.  James E. Bishop II has also been charged in the case.  The younger BISHOP served as president of Summit Bank from 2005-2011.  According to the statement of facts in the plea agreement, the bank was required to file various reports with the Federal Deposit Insurance Corporation (FDIC) disclosing the loans the bank had made and the status of the loans.  In his plea agreement BISHOP admits that between 2009 and 2011, he caused the bank to undertake financial transactions related to past due loans, which concealed the overdue loans in the quarterly reports that went to the FDIC, essentially hiding millions of dollars in loans that were past due, and causing the bank to appear financially healthier than it actually was.  For example, in one report on June 30, 2010, the Bank reported past due loans of approximately $6 million in outstanding loans, payments on which were past due for 30 or more days.  In truth, the bank had at least $13 million in outstanding loans, payments on which were past due for 30 or more days.

“The FBI values its partnership with the FDIC Office of Inspector General because the complexity of a fraud like this requires tremendous time and expertise,” said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle office.  “Collaboration between our offices brought specialized resources to bear and the USAO commendably used the uncovered information to bring a significant schemer to justice.”

“Today Mr. Bishop is being held accountable for deceiving regulators and seeking to undermine the integrity of the FDIC’s examination process,” said Fred W. Gibson Jr., Acting Inspector General for the Federal Deposit Insurance Corporation.  “In addition to his prison sentence, it is fitting that he will be banned from participating in the affairs of any federally insured financial institution going forward.  We appreciate the U.S. Attorney’s Office’s efforts in bringing this matter to a successful conclusion and achieving results that should deter others from similar criminal activity.”

As part of a civil enforcement agreement entered with the FDIC, BISHOP will pay $300,000 to the FDIC.

James E. Bishop II is scheduled for sentencing on December 6, 2013.

The case was investigated by the FDIC Office of Inspector General (FDIC-OIG) and the FBI.  The case was prosecuted by Assistant United States Attorney Matthew Diggs.

            An enrolled member of the Lummi Tribe was sentenced last week to ten years in prison for aggravated sexual abuse, announced U.S. Attorney Jenny A. Durkan.  ROBERT DEWEY JOHNSON, 48, of the Lummi Indian Reservation, sexually assaulted a woman who was a guest in his home while her young children were present.  The assault occurred on December 3, 2012.  At the sentencing hearing Chief U.S. District Judge Marsha J. Pechman imposed the ten year sentence saying she was concerned about the emotional harm to the victim and to her children who heard their mother’s screams.

            According to records filed in the case, the victim and her family were socializing in JOHNSON’s home.  When the victim’s significant other left to run an errand, JOHNSON sexually assaulted the victim in a bedroom of the home.  JOHNSON was indicted in May 2013 and pleaded guilty in July 2013.

            In addition to the prison term, JOHNSON will be on supervised release for five years and will be required to register as a sex offender.

            The case was investigated by the Lummi Police Department and the FBI.  The case was prosecuted by Assistant United States Attorney J. Tate London.

            A repeat offender who attempted to shoot a U.S. Marshal while handcuffed, was sentenced today in U.S. District Court in Tacoma to 15 years in prison, announced U.S. Attorney Jenny A. Durkan.  JOSEPH ROBERT SMITH, 41, was arrested by the U.S. Marshal Service Pacific Northwest Violent Offender Task Force on October 23, 2012.  In the course of the arrest, SMITH attempted to use a handgun he had hidden in his waistband to shoot one of the federal officers on the arrest team.  U.S. District Judge Robert J. Bryan imposed the sentence which will run concurrent with a 249 month sentencing in state court for four armed robberies.

            According to records filed in the case, SMITH was wanted on a warrant issued by the Department of Corrections for escape.  SMITH was located in Tacoma and was taken into custody after a short foot chase by officers.  SMITH was briefly patted down and handcuffed, with the plan to do a more thorough search after taking him to a more secure area.  As the officers were leading him out of the area where he was apprehended, SMITH brought his hands around from behind his back and attempted to grab the butt of a gun that was concealed in his waistband.  SMITH had the gun pointed at the leg of the Deputy Marshal escorting him and was attempting to chamber a round when the Deputy Marshal knocked the gun to the ground.

            Since 1989, SMITH has multiple felony convictions including burglary, robbery, escape, assaults, eluding, and domestic violence.

                The case was investigated by the U.S. Marshal Service and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).  The case was prosecuted by Assistant United States Attorney Todd Greenberg.

A long-time Seattle investment advisor was convicted today by a federal jury of 32 criminal counts including wire fraud, money laundering and investment advisor fraud, announced U.S. Attorney Jenny A. Durkan.  MARK F. SPANGLER, 58, formerly of Seattle, (who now resides in Portland, Oregon) promised his clients that he would protect their life’s savings by investing it in safe investments.  Instead, SPANGLER diverted their money – without their knowledge or consent – to two risky start-up companies that he controlled and in which he had a significant financial stake.  The jury deliberated for two days following the three week trial.  U. S. District Judge Ricardo S. Martinez will sentence SPANGLER on February 6, 2014.

“Mark Spangler gambled with other people’s money without their knowledge – he defrauded friends and family members who trusted him with their life’s savings,” said U.S. Attorney Jenny A. Durkan.  “This defendant used his position of trust as a tool to cheat his clients out of money for their mortgages, their children and grandchildren’s education, their retirement and plans for charitable giving.”

The evidence at trial demonstrated that SPANGLER repeatedly violated his fiduciary duty as an investment advisor by hiding where his clients’ money was invested, and by providing them with false account statements which, among other things, drastically inflated the value of their investments.  SPANGLER told his clients that their assets were worth over $73 million.  However, after SPANGLER ran out of money and put his business into receivership, only approximately $28 million was recovered for the victims, resulting in a loss of approximately $50 million.

Many of the investors who testified in court described how they were told their funds were conservatively invested in publicly traded companies and in bonds.  SPANGLER provided them false quarterly account statements fraudulently inflating the value of their accounts and how the money was invested.  When some investors sought to liquidate their holdings SPANGLER ran a Ponzi scheme using new money from investors to pay out the other investors.  Eventually, SPANGLER was unable to raise money to cover all the liquidation requests and was forced to place his investment business into receivership.  At trial, prosecutors presented evidence that federal law enforcement officials executed a search warrant at SPANGLER’s residence on September 23, 2011, disrupting SPANGLER’s plans to flee the jurisdiction.  SPANGLER had purchased airline tickets for Ecuador with his wife, Luanne Renfrow, and they were planning to leave on September 25, 2011.  The couple had also placed their million dollar Capitol Hill home and his $890,000 yacht up for sale when the search warrant was executed.

“The FBI is pleased that Mr. Spangler will be held accountable for hurting people who trusted him,” said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle office.  “Mr. Spangler exploited clients who specifically chose him for a reputation of honesty and integrity, then he constructed layers of deceit to mask his exploitation.  The FBI has been proud to partner with the USAO, IRS, and SEC in ending Mr. Spangler's callous criminal activity.”

“This case is a clear example of how greed triumphed over friendship, judgment and honesty,” said Kenneth J. Hines, Special Agent in Charge of the Seattle Field Office, IRS Criminal Investigation. “The title “Investment Advisor” is used by professionals all over the country as they assist their clients in securing their financial future.  But when a fraudster uses that title to prey on the dreams of investors, federal law enforcement will hold them accountable.  The jury’s message today to Mr. Spangler was, ‘guilty.”

During the course of his scheme, SPANGLER and his company collected over $4 million in investment advisor fees from his clients and over $1 million in fees from the two startup companies.  SPANGLER also stood to gain approximately 20% of any profits from the investments he made in the two startup companies if they turned out to be successful.  At the very same time SPANGLER was losing tens of millions of his clients’ money, SPANGLER used client fees to live a life of luxury.  SPANGLER traveled the world, purchased an $890,000 yacht, and a $20,000 engagement ring.

The case was investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorneys Carl Blackstone, Mike Lang, and Francis Franze-Nakamura.

            A former tax preparer who enriched himself by filing false tax returns for low income people was sentenced today in U.S. District Court in Tacoma to 30 months in prison, three years  of supervised release and $2.4 million in restitution for a false claims conspiracy, announced U.S. Attorney Jenny A. Durkan.  CLEO J. REED, 62, operated We ‘B’ Tax Service in University Place, Washington from October 2007, until July 2010.  During that time period REED filed more than 1300 fraudulent tax returns resulting in a tax loss of $4.2 million.  REED took a cut of the fraudulently inflated tax refunds he claimed for his clients.  At sentencing U.S. District Judge Benjamin H. Settle ordered REED to serve six months of home detention as part of his supervised release following his prison term.

            “This defendant made tax cheats and criminal conspirators of the poor to enrich himself,” said U.S. Attorney Jenny A. Durkan.  “By submitting the false returns he raided the federal treasury, taking money away from the very programs that could help these families move from welfare to work.”

            According to records filed in the case, REED operated a scheme where he had co-conspirators recruit low income clients for whom he could prepare false tax returns.  REED would inflate the wages the clients allegedly earned, so that they could maximize their refund under the Earned Income Tax Credit.  REED paid the recruiters a fee for each low income person they brought in to the scheme.  REED submitted their tax returns at times without even meeting or speaking to the client.  When the tax refund was approved by the Internal Revenue Service, REED kept a portion of the refund as his fee.  The large number of returns filed by REED claiming an Earned Income Credit triggered the investigation of his business.  Undercover agents posing as clients met with REED and he described how he would falsify their income to boost their tax returns.  He also discussed how he put recruiters to work – paying young single mothers to find him other single moms to expand the scheme.

            The IRS searched REED’s office on April 15, 2010.  He pleaded guilty in March 2013.

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

            A 34-year-old woman from Marysville, Washington, pleaded guilty today in U.S. District Court in Seattle to unlawful dealing in firearms, being a felon in possession of a firearm and distribution of methamphetamine, announced U.S. Attorney Jenny A. Durkan.  HEATHER CHANCEY, a/k/a HEATHER LEE SLATER, was the leader of a group of four people indicted in July 2013, following an undercover investigation.  Under the terms of the plea agreement, both sides will recommend between seven and ten years in prison when CHANCEY is sentenced by U.S. District Judge James L. Robart on February 3, 2014.  The judge is not bound by the recommendation and can impose any sentence up to forty years allowed by law.

            According to the indictment, on multiple occasions between October 2012 and January 2013, HEATHER CHANCEY and her coconspirators sold guns to an undercover law enforcement agent.  Most of the sales occurred in the parking lot of the Tulalip Resort Casino in Marysville, Washington.  Some of the sales occurred in other parking lots of businesses in Marysville or Arlington, Washington or at a Marysville residence.  CHANCEY was prohibited from possessing firearms because of a 2001 conviction for methamphetamine possession.  Some of the guns she possessed and sold in this case include: two sawed off shotguns and 13 regular shotguns – some with no visible serial numbers; 21 rifles – some with obliterated serial numbers; and four handguns.  In her plea agreement, CHANCEY admits making the sales or brokering the deals between the undercover officer and her coconspirators.  CHANCEY also admits an October 1, 2012 attempt to sell methamphetamine to the undercover officer at the same time she was selling him a firearm.

            This investigation was conducted by the Snohomish Regional Gang and Drug Task Force, the Seattle Police Department, and the FBI.  During the investigation, those agencies were assisted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Snohomish County Violent Offender Task Force and the United States Marshal’s Violent Offender Task Force.  The case is being prosecuted by Assistant United States Attorney Kate Crisham.

            A Woodinville, Washington based company and its owner were sentenced today in U.S. District Court in Seattle for violating the Arms Export Control Act and for wire fraud, announced U.S. Attorney Jenny A. Durkan.  The company, PRECISION IMAGE CORPORATION, is operated by owner, CHIH-KWANG HWA, out of his Woodinville home.  HWA obtained contracts to supply circuit boards to the U.S. Navy, by falsely claiming the boards would be manufactured in the United States.  Instead HWA illegally sent restricted information to a company in Taiwan for the boards to be manufactured there.  The company was fined $300,000 for violating the Arms Export Control Act.  HWA was sentenced for wire fraud to four months in prison, and six months of home detention as part of his two years of supervised release.  U. S. District Judge James. L. Robart imposed the sentences.

According to the charging information and the plea agreements in the case, between 2009 and 2011, HWA obtained contracts worth $180,034 to supply circuit boards to the U.S. Navy.  The Navy supplied technical data to PRECISION IMAGE that contained the technical specifications for the circuit boards.  This technical data was designated on the United States Munitions List, International Traffic in Arms Regulations.  As a result, this technical data could not legally be transmitted outside the United States without a license from the U.S. State Department.  CHIH-KWANG HWA knew about this restriction at the time he received the technical data from the Navy.  HWA did not get the appropriate licenses, and sent the restricted data to the Taiwan manufacturer.  One of the transmissions occurred in September 2011, and the Taiwanese manufactured circuit boards were later provided to the Navy.  In addition, many of the contracts awarded to HWA were set aside for companies that promised to manufacture the boards in the United States.  HWA falsely represented to the Navy in connection with these contracts that the boards were being manufactured in the United States, when instead they were being manufactured in Taiwan.

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Naval Criminal Investigative Service.  The case was prosecuted by Assistant United States Attorneys Todd Greenberg and Thomas Woods.

WASHINGTON - The Department of Justice announced today that it has reached a settlement with All Battery Sales and Service (ABS) of Everett, Wash., to resolve a lawsuit it filed on behalf of Curtis Kirk, a U.S. Army reservist.  The lawsuit alleged that the company violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) by failing to properly reemploy Kirk in September 2010, after he returned from military service in support of Operation Iraqi Freedom.  The lawsuit also alleged that the defendant unlawfully demoted and then terminated Kirk’s employment without proper cause.  If approved by the court, the settlement would resolve the allegations that the defendant violated the reemployment rights of Kirk.

ABS is a wholesaler, distributor and retailer of battery products, parts and services.  According to the complaint, filed in the U.S. District Court for the Western District of Washington, the defendant violated USERRA by not properly reemploying Kirk in a position as a front counter representative, or in a position with comparable seniority, status and pay.  The defendant reemployed Kirk in a lower status position than the one he held when he left for active duty service, with fewer guaranteed working hours, a less lucrative commission and bonus structure and fewer opportunities for promotion.  ABS later demoted Kirk further and terminated his employment without cause, also in violation of USERRA.

Under the terms of the settlement, ABS must pay Kirk $37,500 to compensate him for lost or reduced wages and benefits.  Among other things, the settlement also requires the defendant to provide training to ABS’ high-level officials and human resources staff on the USERRA rights and obligations of employers and covered employees.

“Employers have a legal obligation to ensure service members get their jobs back when they return from military duty as required by law,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division.  “The Civil Rights Division is committed to protecting the rights of those who, through their courage and sacrifice, secure the rights of all Americans.”

“Just as our dedicated men and women of the military protect our freedoms overseas, we must protect their interests here at home,” said U.S. Attorney Jenny A. Durkan.  “These soldiers have made many sacrifices, and the loss of a career or the job they are entitled to when they return home, cannot be allowed.  The U.S. Attorney’s Office is committed to enforcing the laws that protect the rights of those brave men and women who serve our country proudly.”

Subject to certain conditions, USERRA requires employers to promptly reemploy returning service members in the positions they would have held had their employment been not interrupted by military service or in a position of like seniority, status and pay.  In addition, any individual with Kirk’s length of absence for military service who is reemployed cannot be terminated, within one year after the date of full and proper reemployment except for just cause.

The case was litigated by Assistant U.S. Attorney J. Michael Diaz in the U.S. Attorney’s Office for the Western District of Washington, in collaboration with Andrew Braniff, USERRA/USAO Program Coordinator, in the Employment Litigation Section of the Civil Rights Division of the Justice Department.

The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA.   Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

            A Puyallup, Washington man who shot and killed two men who had entered the garage where he was growing marijuana, pleaded guilty today in U.S. District Court in Tacoma to manufacturing marijuana and possession of a firearm in relation to a drug trafficking crime, announced U.S. Attorney Jenny A. Durkan.  JEREMY PETER CAPODANNO, 36, was arrested in April 2013.  Use of a firearm in relation to drug trafficking carries a five year mandatory minimum term.  Under the terms of the plea agreement, CAPODANNO is forfeiting nearly $670,000 in proceeds from the sale of two properties -- his Puyallup home and a second home in Kent, Washington.  CAPODANO is also forfeiting a 2008 Mercedes, a 2008 Toyota pickup truck and five firearms seized at the crime scene.  Sentencing is scheduled before U.S. District Judge Ronald B. Leighton on January 17, 2014.

            “The defendant’s conduct put the safety of our community and his family at risk.  He armed himself expecting trouble, and unfortunately he got it,” said U. S. Attorney Jenny A. Durkan.  “Consistent with our enforcement priorities, we continue to focus on those who bring violence and use firearms to protect illegal drug businesses.”

            On December 6, 2012, CAPODANNO shot two people who had broken into the garage of his Puyallup residence – killing both of them.  In the garage loft was a marijuana grow with nearly 200 plants.  When police officers arrived, they found CAPODANNO in possession of a Glock 17, 9mm semiautomatic pistol, which is the gun that CAPODANNO used to kill the two men.  While searching CAPODANNO’S truck, police found additional marijuana as well as other weapons including a Bushmaster XM-15 assault rifle; an Intratec Tec-9 9mm pistol; a Benelli 12 gauge shotgun; and a Professional Ordinance MDL Carbon 15.

The case is being investigated by the Drug Enforcement Administration (DEA), the Pierce County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Matthew Thomas.

A California rap artist who performed under the name “Guerilla Black” was sentenced today in U.S. District Court in Seattle to 110 months in prison and five years of supervised release for a scheme to use credit card numbers stolen in Seattle in other states, announced U.S. Attorney Jenny A. Durkan.  CHARLES TONY WILLIAMSON, 36, of Torrance, California, was on the user end of the fraud involving hacks of point of sale credit card processing at businesses in Seattle and Shoreline, Washington, and at various businesses across the U.S.  WILLIAMSON purchased credit card numbers in bulk from a hacker based in Maryland and from various ‘carding’ websites so that he and his associates could use them for fraud.  At sentencing U.S. District Judge Ricardo S. Martinez said, “the impact of the crime is tremendous …from the banks and small businesses” to the runners who now have felony records.

“Undeterred by his first arrest and indictment, this defendant continued to direct platoons of co-schemers to use stolen credit card numbers and continue his digital crime spree,” said U.S. Attorney Jenny A. Durkan.  “I commend the dedicated agents who tracked his fraud through cyberspace – using critical skills and techniques to trace both the hacks and the frauds to dismantle the network.”

WILLIAMSON was indicted in July 2012, following the investigation into point of sale hacking at a restaurant in the Magnolia neighborhood of Seattle and a retail store in Shoreline, Washington.  Two men have already been sentenced for their roles in the hacking scheme.  David Benjamin Schrooten, 21, a Dutch citizen arrested in Romania, where he operated a carding website making the credit card numbers available for fraud was sentenced in February 2012 to 12 years in prison.  Christopher A. Schroebel, 21, of Keedysville, Maryland, who hacked into point of sale systems to steal credit card information was sentenced to seven years in prison in August 2012.  Schroebel was a key supplier of credit card information to WILLIAMSON.

Between January 11, 2011 and February 26, 2012, WILLIAMSON received and possessed at least 27,257 stolen credit card numbers, including cards issued by American Express, Visa, MasterCard and Discover.  The total number of stolen card numbers exceeds 30,000 following WILLIAMSON’s criminal conduct during the period of his pretrial release.  Federal law allows for a formula to determine the scope of the fraud by attributing a loss of $500 per credit card number, resulting in an estimated fraud loss in this case of $15 million.

Records in the case reveal how WILLIAMSON communicated by email with co-conspirators, telling them that he wanted to purchase “dumps” of stolen credit card numbers “in bulk,” that is lots of 100, 500 or more.  WILLIAMSON indicated that he wanted “freshly” stolen numbers so they would be easier to use, since the customers would not yet know their information had been stolen.  Additional records show that while WILLIAMSON was on release pending trial, he continued his criminal conduct by producing counterfeit credit cards and using stolen credit card numbers.  WILLIAMSON was rearrested following a lengthy investigation by the Manhattan Beach Police Department, the U.S. Secret Service (USSS) Electronic Crimes Task Force in Seattle and USSS Los Angeles Fraud Task Force.  In his plea agreement WILLIAMSON admits the credit card fraud both before and after his arrest on the indictment in the Western District of Washington.  WILLIAMSON has remained in custody since his arrest in January 2013.

The case was investigated by the Seattle U.S. Secret Service Electronic Crimes Task Force and Seattle Police Department as part of the Task Force, with assistance provided by the Manhattan Beach (California) Police Department and the Los Angeles Field Office, U.S. Secret Service.  The case was prosecuted by Assistant United States Attorney Kathryn Warma.

            The largest volume used car dealership in Washington, pleaded guilty and was sentenced today in U.S. District Court in Seattle for failure to file a monetary transaction report, announced U.S. Attorney Jenny A. Durkan.  ZEIN AUTOMOBILES, INC., d/b/a Independence Auto Sales and Best Bet Auto Sales with locations in Lynnwood and Everett, forfeited $1.5 million to the United States, paid a $250,000 fine and entered into a corporate integrity agreement to ensure the illegal conduct does not happen again.  The car dealership was the subject of searches by law enforcement in September 2013.

            “This resolution takes substantial profit from a business that flouted the law to fatten its bank account,” said U.S. Attorney Jenny A. Durkan.  “It should serve as a warning to others – we will enforce laws on currency reporting which are an important tool for keeping illegal conduct out of the stream of commerce.”

In the plea agreement the corporation admits that between January 2010 and September 2013, its employees and agents entered into cash sales of vehicles in excess of $10,000 and failed to report the cash sales to the IRS.  In a search warrant affidavit describing the Drug Enforcement Administration led investigation, undercover officers and confidential sources repeatedly purchased vehicles for cash at the two dealerships.  Posing as drug traffickers, the undercover agents told sales people they did not want the cash transactions reported.  The undercover agents were very clear that they wanted the vehicles for drug trafficking purposes.  The sales people assured the agents that they were familiar and comfortable with such transactions and proposed various schemes that they said would avoid the cash transactions reporting requirements.  Such schemes are illegal.

Under the terms of the corporate integrity agreement, the company is required to keep a log and report every cash transaction in excess of $10,000.  Both the sales managers and title clerks are required to ensure the reports are made to the IRS.  During a two year probationary period, the company is subject to unannounced audits to ensure such reports are being made.  The company has also agreed to publicize its guilty plea, penalties, and compliance plan in formats to be approved by U.S. Probation.

The case was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Seattle Police Department and the King County Sheriff’s Office.

The case was prosecuted by Assistant United States Attorneys Kate Vaughan and Robert Westinghouse.

The final two owners and managers of crime infested motels in Tukwila, Washington pleaded guilty today to conspiracy to maintain drug involved premises, announced U.S. Attorney Jenny A. Durkan.  In their plea agreements, JASPAL SINGH, 37, and KULWINDER SAROYA, 42, both of SeaTac, Washington, admit they knowingly operated drug involved premises at the Travelers Choice Motel and Great Bear Motor Inn and profited from the drug activity there.  The men agree to forfeit the two motels, their home in SeaTac, more than $265,000 seized from their home and bank accounts and a 2007 Mercedes Benz.  Today’s pleas mean that all three motels shuttered and seized by federal agents in August 2013 will be sold by the U.S. Marshals Service.

“We will use all of our tools to seize criminal proceeds, protect the public and hold people accountable.  Since we shut these motels, the number of police calls to the immediate area has dropped by one-third,” said U.S. Attorney Jenny A. Durkan.  “These defendants profited by knowingly operating motels that were a blight on the community, creating an unsafe environment and soaking up police resources to the detriment of the community.  It is fully appropriate that this prosecution take the profit out of these criminal activities.”

Last week, a third defendant, LAKHVIR PAWAR, 41, the manager of the Boulevard Motel on Tukwila International Boulevard pleaded guilty and agreed to forfeit any interest in that motel as well as more than $90,000 he accumulated from the criminal activity.  All three men will be sentenced by U.S. District Judge John C. Coughenour on February 28, 2014.  The government has agreed to recommend no more than a year in prison for each defendant, but the judge is free to impose any sentence up to the maximum 20 years allowed by law.

According to records filed to seize the motels, the Tukwila Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) jointly-led investigation used undercover officers and people working with law enforcement to document criminal activity at the motels and the role the owners and managers played in that activity.  SAROYA and SINGH admitted they would collect or would direct their staff to collect a $10 entry fee for those coming on the property seeking drugs or sexual services.  The owners and/or managers would take the money and direct the customer to rooms to purchase drugs or sex.  In some instances the person taking the “fee” would call the motel room to inform the dealer or sex worker that a customer was on the way.  SAROYA and SINGH admitted today that they collected additional rental fees from the dealer or sex worker based on how many customers were sent to the room over the course of the day.

The investigation, search and seizure operation was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Tukwila Police Department.  Many additional agencies assisted the investigation including the U.S. Marshals Service; Department of Homeland Security; Drug Enforcement Administration; Federal Bureau of Investigation; Internal Revenue Service Criminal Investigation; U.S. Department of Agriculture Office of Inspector General; Washington State Patrol; Seattle, Auburn, Kent, Renton, Federal Way, and Port of Seattle Police Departments; Valley SWAT Team; King County Sheriff’s Office; Washington State Department of Corrections; and Washington State Department of Social and Health Services (DSHS).

The case is being handled by Assistant United States Attorneys Justin Arnold, Jill Otake and Richard Cohen.

            Two brothers who were arrested in June 2013 in connection with a conspiracy to illegally ship firearms parts to Thailand, have pleaded guilty in U.S. District Court in Seattle to conspiracy, announced U.S. Attorney Jenny A. Durkan.  NARES LEKHAKUL, 36, a lawful permanent resident of Bellevue, Washington, pleaded guilty today and NARIS LEKHAKUL, 42, a Thai citizen arrested in June 2013 at SeaTac Airport pleaded guilty last week.  Both men are scheduled to be sentenced by U.S. District Judge Richard A. Jones on January 24, 2014.

            In their plea agreements the brothers admit that NARIS LEKHAKUL, while living in Thailand, identified the firearms parts he wanted ordered and shipped overseas.  Initially the gun parts were sent to his brother NARES’ home in Bellevue, Washington, where NARES LEKHAKUL attempted to disguise the shipments which were sent on to Thailand.  After one shipment was seized in 2011, NARIS LEKHAKUL recruited four other people to receive the shipments of firearms parts, disguise them, and send them on to Thailand.  The co-conspirators did not obtain appropriate licenses to make the shipments.  The co-conspirators would use fake names and fake invoices to try to avoid detection, and they packed various firearms parts in specific ways to try to avoid detection by x-ray scanners.  Members of the group shipped various firearms parts with false labels.  For example, in one instance they shipped magazines for .45 caliber handguns, while labeling them “Vented steel case for electronic components” or “replacement springs and metal caps for bottling machine.”  Other shipments were labeled as “hobby parts,” or “glow in the dark marker sets.”  In all, the group is believed to be responsible for more than 240 shipments of restricted firearms components.  The defendants did not ship any assembled firearms or entire firearms disassembled.

            Prosecutors have agreed to recommend a sentence of four years in prison for NARIS LEKHAKUL, and 30 months in prison for NARES LEKHAKUL.  Judge Jones is not bound by the recommendation and can impose any sentence up to the five year maximum.
In addition to the LEKHAKUL brothers, these additional defendants have also pleaded guilty: WITT SITTIKORNWANISH, 24, a U.S. citizen residing in the Los Angeles area; WIMOL BRUMME, 41, a Thai citizen residing in Las Vegas; SANGSIT MOWANNA, 35, a U.S. citizen residing in the Los Angeles area; and
SUPANEE SAENGUTHAI, 35, a Thai citizen residing in Berkeley, California.

The Department of State promulgates the United States Munitions List, which consists of categories of defense articles and services that cannot be exported without a license issued by the Department of State.  The U.S. Munitions List includes the firearms’ parts and components shipped in this case.  As a result, the export of firearms components requires an export license.
The case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the U.S. Postal Inspection Service.

A federal felon who participated in a violent assault at the Federal Detention Center at SeaTac, Washington in January 2012, was sentenced today to 28 years in prison, announced U.S. Attorney Jenny A. Durkan.  ROY SCOTT FRITTS, 35, is already serving a life without parole sentence in Wyoming for an attempted murder conviction.  U.S. District Judge James L. Robart ordered that the 28 year sentence be served consecutive to the life sentence imposed in Wyoming.

“This sentence works to ensure a dangerous felon never returns to threaten society,” said U.S. Attorney Jenny A. Durkan.  “He persistently and repeatedly endangered the public, and in this case, the public servants we rely on to keep our prisons safe and secure.  This violent and dangerous conduct will not be tolerated.”

According to records filed in the case, FRITTS and co-defendant Sabir Shabazz attacked a prison guard at the FDC on the morning of January 3, 2012.  Shabazz beat the guard with a pipe.  The men claimed the attack was an escape attempt, but video of the assault shows it was just a brutal attack.  Other inmates intervened in the assault, likely saving the guard’s life.  At the time of the assault, FRITTS was armed with a homemade knife called a shank.  FRITTS threatened various officers with the shank during the melee.  On July 10, 2013, FRITTS was convicted by jury verdict of one count of conspiracy to assault a federal officer, and three counts of assault of a federal officer with a dangerous weapon.

            FRITTS had been sent to FDC SeaTac for a mental evaluation following a crime spree across five western states.  FRITTS had absconded from parole in Oregon, stole a truck in Nebraska, shot and attempted to kill the driver who had given him a ride in Wyoming, carjacked a car in Utah and tried unsuccessfully to carjack a second vehicle.  When arrested he was armed with a semi-automatic .45 caliber handgun.

      In asking for the lengthy sentence prosecutors wrote to the court, “The attack on the officer was premeditated and carried out with shocking violence.  The officer nearly died as a result of the attack and has been left permanently damaged.  But for the intervention of other inmates, the officer would have been murdered.  This was the worst officer involved assault in FDC SeaTac history. … Though FRITTS did not strike the blows, he is equally culpable.  He helped plan out the attack, in anticipation of the assault he armed himself with a deadly weapon, and stood ready to assist while it was carried out.”

            The FBI and Federal Bureau of Prisons (BOP) investigated the prison assault.  The case was prosecuted by Assistant United States Attorneys Bruce Miyake and Mike Lang.

A family law attorney who previously practiced in Kent, Washington was sentenced today to 25 years in prison and lifetime supervised release for Production of Child Pornography/ Sexual Exploitation of Children, one count of Receipt of Material Constituting or Containing Child Pornography, and one count of Possession of Child Pornography, announced U.S. Attorney Jenny A. Durkan.  DAVID S. ENGLE, 50, of Maple Valley, Washington was arrested in November 2012.  ENGLE, who both volunteered in and ran a business involving youth baseball, has been incarcerated since his arrest.  At sentencing U.S. District Judge James L. Robart took issue with a defense claim that these were not violent attacks saying, ”Molestation is violence… Sure, he didn’t threaten to break an arm… but this is violence, let’s be very clear on that.”

“This is a heart-wrenching betrayal of trust of the victims and the community,” said U.S. Attorney Jenny A. Durkan.  “While nothing can undo this damage, the long sentence will protect the community and sends a strong message about the horrendous acts.  Our advocates are resolved to do everything possible to support the victims as they deal with the horrific abuse.”

According to records filed in the case, ENGLE came to the attention of law enforcement following the investigation of an international movie production company that operated a website offering DVDs and streaming videos for sale.  The materials depicted young boys in sexually explicit activity.  Between 2005 and 2011, ENGLE purchased 184 different items from the website.  The international movie production company was put out of business when agents seized its inventory and records.  The company and the owners of the company are being prosecuted for child exploitation offenses, including the production and distribution of child pornography.

After law enforcement executed a search warrant on ENGLE’s home and storage locker in November 2012, they discovered more than 500 videos of ENGLE sexually molesting a young boy under the age of 16.  Law enforcement later discovered additional evidence of ENGLE sexually molesting another young boy, also under the age of 16.  ENGLE is being separately prosecuted for those offenses by the King County Prosecutor’s Office.  Following forensic examination of a number of computers, DVDs, thumb drives, and floppy disks, investigators determined that ENGLE was in possession of tens of thousands of images of child pornography, and thousands of videos of child pornography.

In asking for a 30 year prison sentence, prosecutors noted that ENGLE betrayed the trust put in him by the community.  “To then learn that Defendant had been charged with producing child pornography and molesting children added additional layers of anguish that can never be ameliorated.  To the mothers of Minor Victim 1 and Minor Victim 2, to all of the parents who put their trust in Defendant, to all of the children who called him “Coach,” to all of those involved in youth baseball for the pure enjoyment of the sport, and to the larger community, Defendant’s criminal conduct is especially monstrous,” prosecutors wrote in their sentencing memo.

The case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Marci Ellsworth.

A repeat offender who stole thousands of feet of copper wire from runway light towers at Seattle-Tacoma International Airport pleaded guilty October 17, 2013 to theft of public property, announced U.S. Attorney Jenny A. Durkan.  TIMOTHY LYNCH, 50, faces up to ten years in prison when sentenced by U.S. District Judge James L. Robart on January 13, 2014.

According to records file in the case, the theft was discovered on February 12, 2013, when a Port of Seattle employee noticed damage to the fence surrounding the runway light structures near South 188th Street and Des Moines Memorial Drive.  In total, approximately 7,200 feet of copper cable was stolen from Federal Aviation Administration towers, rendering them inoperable and potentially posing a threat to airline safety.  LYNCH admits that he entered a secured area of Sea-Tac airport and removed copper cable connected to the light towers.  Replacing the copper wire and repairs to damages cost the FAA more than $30,000.

Under the terms of the plea agreement, the parties will recommend that the Court sentence Lynch to 30 months in prison.

The case is being investigated by the FBI Safe Streets Task Force which includes officers from the Port of Seattle Police Department, the Seattle Police Department and the King County Sheriff’s Department.  The case is being prosecuted by Executive Assistant United States Attorney Thomas Bates.

A Burien man entered a guilty plea today in the case involving the seizure of three Tukwila, Washington motels that were operated as havens for drug dealing and sex crimes, announced U.S. Attorney Jenny A. Durkan.  LAKHVIR PAWAR, 41, was the manager of the Boulevard Motel on International Boulevard in Tukwila.  In his plea agreement, PAWAR admits to profiting from drug sales at the motel.  Under the terms of the plea agreement, PAWAR will forfeit his interest in the motel and in about $90,000 seized in August 2013 when the motel and two others were seized and shut down by federal authorities.  Under the terms of the agreement, if any of PAWAR’s relatives challenge the forfeiture, prosecutors can withdraw from the plea agreement.  Prosecutors will recommend a prison term of not more than a year and a day in prison, and will recommend that PAWAR be barred from owning or managing motels and from working at any motel owned or managed by his family during three years of supervised release.  Judge John C. Coughenour is not bound by the recommendation and can impose up to the 20 year maximum when PAWAR is sentenced before the court on February 28, 2014.

According to the plea agreement, PAWAR admits that between 2003 and 2013, he was the primary manager at the Boulevard Motel.  Between 2007 and 2013, there were 33 drug related incidents, 27 assaults and 11 robberies at the motel.  During that time period, PAWAR knew drugs were being sold at the motel and profited from the drug activity.  PAWAR directed customers to the rooms where drugs were sold, first taking a fee from the customers.  PAWAR also charged those distributing drugs higher rent than other people renting rooms at the motel.

            As part of the plea agreement, prosecutors agree not to seek forfeiture of two other motels owned by PAWAR and his relatives: the Everspring Inn on Aurora Avenue North in Seattle and the Rodeway Inn in SeaTac, Washington.  However, the agreement states that should there be new evidence of similar illegal conduct at those motels, the government is not precluded from taking action including forfeiture.

The investigation, search and seizure operation was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Tukwila Police Department.  Many additional agencies assisted the investigation, including the U.S. Marshals Service; Department of Homeland Security; Drug Enforcement Administration; Federal Bureau of Investigation; Internal Revenue Service Criminal Investigation; U.S. Department of Agriculture Office of Inspector General; Washington State Patrol; Seattle, Auburn, Kent, Renton, Federal Way, and Port of Seattle Police Departments; Valley SWAT Team; King County Sheriff’s Office; Washington State Department of Corrections; and Washington State Department of Social and Health Services (DSHS).

The case is being handled by Assistant United States Attorneys Justin Arnold, Jill Otake and Richard Cohen.

            A 29-year-old Anacortes, Washington man was sentenced today in U.S. District Court in Seattle to 151 months in prison and 20 years of supervised release for possession of child pornography, announced U.S. Attorney Jenny A. Durkan.  CONOR RYAN KELLY BRODERICK has prior convictions for sex offenses, and came to the attention of police following reports from two victims that BRODERICK was harassing them, and threatening to post explicit pictures of them on the internet.  At sentencing U.S. District Judge Thomas S. Zilly said he was troubled by BRODERICK’s previous convictions.

According to records filed in the case, BRODERICK was arrested November 3, 2012 by Anacortes Police after a stalking incident.  The stalking followed a report to police by two different women claiming BRODERICK was threatening to post nude pictures of them on the internet unless they sent him additional pictures.  While incarcerated, BRODERICK called an acquaintance and told the person to remove a memory card from his computer.  Investigators who had been monitoring the jail calls, obtained a search warrant and ultimately determined the memory card and other media storage devices contained more than 100 images of child pornography.  Later, while released on bail, BRODERICK entered into a “sexting” relationship with a girl in Kentucky who identified herself as a 14-year-old.  BRODERICK has these prior convictions: Rape of a Child in the Third Degree (three counts), in Skagit County (2007) and Dealing in Depictions of Minors Engaged in Sexually Explicit Activity (two counts), in Skagit County (2007).

In asking for the 151 month prison sentence, prosecutors wrote to the court, “The picture that emerges of the defendant is clear and consistent – he is a sexual predator who has a compulsion to have sexual contact with children and view child pornography. …  Moreover, the defendant to date has shown no ability to control himself.  In his previous child pornography case, he violated his probation by accessing the internet, viewing more pornography, and not completing his sex therapy treatment.”

BRODERICK was prosecuted 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.projectsafechildhood.gov

The case was prosecuted by Assistant United States Attorney Jerrod Patterson.  The case was investigated by the Anacortes Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

A retired Lieutenant Colonel in the U.S. Army who served in Iraq as a contracting officer was sentenced in U.S. District Court in Tacoma on October 15, 2013 for criminal conflict of interest, announced U.S. Attorney Jenny A. Durkan.  HAROLD L. BROEK, 49, served as Chief of Contracting at the Tikrit Regional Contracting Center in Tikrit, Iraq, and admitted in his plea agreement that he used his position of authority to benefit himself to the detriment of the United States.  BROEK established a company, Global Motion, that received contracts from an Iraqi company to which he had awarded contracts.  U.S. District Judge Benjamin H. Settle sentenced BROEK to three years of probation, with 60 days of home detention, 40 hours of community service and $52,400 in restitution.  BROEK pleaded guilty July 23, 2013.

According to the records filed in the case, BROEK used his position of authority in the U.S. Army, his knowledge of government contracting, and his relationship with Rohit Goel and “Avalon International Limited” to contract with Goel and Avalon on government contracts.  Before BROEK left Iraq in 2007, he directed his family in Washington State to form a company, Global Motion, for the purpose of receiving contracts from Goel and Avalon.  While in Iraq, BROEK had entered into an illegal agreement with Goel whereby Goel would send certain government contracts, awarded by the United States to Goel and Avalon, to the new company formed by BROEK and his family.  Pursuant to this arrangement, Goel agreed to award government contracts to BROEK’s new company, to pay BROEK’s new company 30% of the profit on such contracts, and to front necessary funds or finance any contract expenditures BROEK’s company would incur in purchasing goods to perform under the contracts.

Before leaving Iraq and returning to the United States, BROEK participated in awarding contracts to Avalon.  Specifically, in July 2007, shortly before he left Iraq to return to Lacey, Washington, BROEK signed a waiver shortening the deadline on a contract for the purchase and delivery of line-of-sight radios.  By shortening the deadline, BROEK decreased the chances that Avalon’s competitors might win the contract.  Later in July 2007, one of BROEK’s subordinates in Iraq awarded a contract for line-of-sight radios, valued at $162,151, to Goel and Avalon.  Goel, in turn, awarded the contract for line-of-sight radios to BROEK’s company, Global Motion.

In September 2007, Avalon fronted $99,978 to Global Motion to finance the purchase of the line-of-sight radios.  To fill the line-of-sight radio contract, Global Motion spent $58,733 to purchase the radios and have them shipped to Iraq.  Global Motion retained the balance of the funds from Avalon, making a profit of $29,871.90 on this deal.

According to tax returns, Global Motion made a profit in 2007 and 2008 of $52,400.16.  Pursuant to the plea agreement, BROEK will make restitution payments to the United States in the amount of $52,400.16.

In sentencing documents, the United States argued that “it was clear that LTC Broek used his position and authority to enter into a business relationship with Avalon.  Only LTC Broek had the contact with, experience with, and relationship with Rohit Goel to start or suggest a new business relationship.  We also know that LTC Broek participated personally and substantially in his capacity as an Army Officer in at least one contract ultimately awarded to his family’s company, Global Motion.  The many other contracts directed to Global Motion by Avalon, though awarded and directed after Broek left Iraq, also stink of fraud, corruption, and conflict.  One has to ask why, and under what circumstances, a foreign contractor like Avalon would contract with Global Motion, a newly-formed company that had zero experience in contracting?  In fact, the only reason Avalon contracted with Global Motion was because of LTC Broek.”

The case was investigated by the Special Inspector General for Iraq Reconstruction, Federal Bureau of Investigation, and Defense Criminal Investigative Service.  The case was prosecuted by Assistant United States Attorneys David Reese Jennings and Marc Perez.

An enrolled member of the Nooksack Tribe was sentenced October 11, 2013 in U.S. District Court in Seattle to 280 months (23+ years) in prison for second degree murder, announced U.S. Attorney Jenny A. Durkan.  LEVI EUGENE CHARLES, 26, admitted that he killed Sauk-Suiattle Tribal member Kenneth Joseph by striking him in the head and face with an ax.  The murder occurred when 68-year-old Joseph awoke while CHARLES was burglarizing Joseph’s home on the Lummi reservation.  Charles pleaded guilty on June 6, 2013.  U.S. District Judge Richard A. Jones imposed five years of supervised release following the 23+ year prison term.

According to the plea agreement, CHARLES went to Joseph’s home the night of October 23, 2012.  CHARLES knew Joseph and had been in the home.  He admits he planned to break in and steal items to sell for cash.  CHARLES picked up a miniature baseball bat outside the residence and carried it inside.  Joseph heard the intruder and confronted him.  CHARLES hit Joseph with the mini baseball bat multiple times and then grabbed an ax from near the front door of the house and hit the victim with that in the head and face.  After killing Joseph, CHARLES threw a blanket over the body and hung blankets over the windows to conceal the crime scene.  CHARLES stole an ATM card from Joseph’s wallet, and took a TV and other items from the house.  CHARLES threw the small bat away in the woods and discarded the TV and other items at the end of the driveway.  He used the ATM card a few hours later to take $420 from Joseph’s bank account.

CHARLES was arrested October 29, 2012 and was indicted December 19, 2012.

The case was investigated by the Lummi Police Department and the FBI.  The case was prosecuted by Assistant United States Attorney Todd Greenberg.

            A 60-year old Vancouver, Washington man pleaded guilty October 2, 2013 to conspiracy to commit arson in connection with a March 2003 arson, announced U.S. Attorney Jenny A. Durkan.  MARK DUANE FUSTON, also known as “Mau Mau,” admitted he used propane and various flammable liquids to burn down the ‘Desire Video’ store that was nearing completion on NE 94th Avenue in Vancouver.  The fire destroyed the building causing some $850,000 in damage.  Sentencing is scheduled for December 16, 2013, in front of U.S. District Judge Benjamin H. Settle.  Prosecutors have agreed to recommend no more than 37 months in prison.  Judge Settle is not bound by the recommendation and can sentence FUSTON to any sentence up to the five year maximum.

            According to the plea agreement, FUSTON was hired to torch the building.  FUSTON and another man (now deceased) acted together to commit the arson.  On the night of March 27, 2003, FUSTON rerouted a propane line into the building and placed a remote control incendiary device in the building.  However, when the remote control device malfunctioned, FUSTON returned to the building and left a fuel trail to the building which he later ignited manually.  The fire ignited the propane trapped inside the building causing the explosion and fire.

            FUSTON was indicted March 27, 2013.

            The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Vancouver Police Department and the Vancouver Fire Department.  The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.

            A Lacey, Washington man with prior felony drug convictions, was sentenced October 1, 2013 to six years in prison and five years of supervised release for possession of oxycodone with intent to distribute and structuring financial transactions, announced U.S. Attorney Jenny A. Durkan.  G.B. BROWN, 54, was arrested on June 9, 2011, following a South Sound Gang Task Force investigation.  He was convicted following a jury trial on May 14, 2013.  U.S. District Judge Benjamin H. Settle imposed the sentence.

            According to records filed in the case, BROWN came to the attention of law enforcement as part of an investigation into oxycodone trafficking from California to the south Puget Sound region.  Law enforcement was aware of multiple packages of oxycodone pills that were shipped to BROWN’s Lacey address.  Prior to his arrest BROWN sought to purchase a large quantity of oxycodone pills from a person working with law enforcement.  He made multiple withdrawals of large amounts of cash from his bank accounts on consecutive days in amounts just under the $10,000 reporting requirement, which he consolidated and used to pay for the $45,000 worth of oxycodone pills in his possession at the time of his arrest.  Those withdrawals were the basis for the structuring count of conviction, as well as the court-ordered forfeiture of the remaining $49,300 in one of those bank accounts.

In asking for a lengthy prison term, prosecutors wrote to the court about the impact of oxycodone abuse on the community.  “…The dependency created by the drug, and supported by Brown and drug dealers like him, often haunts users for the rest of their lives.  Moreover, illicit drug users, themselves victims of their dealer’s greed, often end up then victimizing other people -- usually either by robbing or stealing, or by selling drugs themselves -- in order to fund their expensive but all-important drug habits.  Not only is the health of the individual drug users harmed, but the health and public safety of the entire community is put at risk in many ways.  Increased crime, some of it violent, either to support drug habits or simply committed by those high on drugs.  Persons high on drugs getting into vehicular accidents or causing injuries or damage to property and lives in other ways,” prosecutors wrote in their sentencing memo.

The case was investigated by the South Sound Gang Task Force and was prosecuted by Assistant United States Attorney Gregory A. Gruber.

            A former Washington State Prison inmate who led a tax fraud scheme from prison, pleaded guilty October 1, 2013 to eleven counts of tax fraud and three counts of illegal possession of firearms, explosives and a ballistic vest, announced U.S. Attorney Jenny A. Durkan.  KENNETH RANDLE DOOR, 44, was indicted on the tax charges along with three other co-conspirators in April 2012.  At the time of the tax fraud indictment, DOOR was already in custody on the weapons charges.  Sentencing on the tax charges is scheduled before U.S. District Judge Benjamin Settle on December 16, 2013.  DOOR will be sentenced on the illegal weapons possession charges on December 12, 2013.  At that sentencing hearing before U.S. District Judge Ronald B. Leighton, prosecutors will argue that DOOR is an Armed Career Criminal and therefore should be sentenced at or above the mandatory minimum of 15 years in prison.

            According to the indictment, in 2008 and 2009, the defendants conspired to file fake tax returns using the names and Social Security numbers of prison inmates to claim fraudulent refunds.  DOOR was incarcerated at the Washington State Penitentiary in Walla Walla.  Other conspirators were living in Tacoma and Puyallup.  Using the internet the conspirators identified companies that had declared bankruptcy and had recently closed.  The conspirators created fake W-2 forms indicating wages paid and taxes withheld from the individuals whose identities they used.  Virtually all of these individuals were prison inmates at the time who had not been employed by the now defunct companies.  The conspirators filed at least 31 false tax returns, attempting to obtain more than $145,000 in refunds.  The conspirators obtained nearly $72,000 in fraudulent tax refunds.

            DOOR’s co-conspirators in the tax scheme have been sentenced to terms ranging from eight months to 33 months in prison.

            The tax case was investigated by Internal Revenue Service Criminal Investigation (IRS-CI).  The weapons case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).  The cases are being prosecuted by Assistant United States Attorneys Steven Masada and Norman Barbosa.

            The Seattle Police Department (SPD) and the International Rescue Committee in Seattle (IRC) will receive U.S. Justice Department grants in recognition of their leadership combatting human trafficking, announced U.S. Attorney Jenny A. Durkan.  The two grants, $500,000 to SPD and $250,000 to IRC, will continue the work of the Washington Advisory Committee on Trafficking (WashACT).  The funding pays for investigators working on human trafficking cases, and for services to victims of human trafficking.

            “This funding will support vital work combatting human trafficking in western Washington, where strong partnerships have built a model program,” said U.S. Attorney Jenny A. Durkan. “The task force made up of federal, state and local law enforcement and community partners has helped more than 100 victims and prosecuted more than 60 cases of human trafficking.”

            WashACT has served as a model for human trafficking task forces around the country due to the uniquely successful collaboration among this multi-disciplinary team. WashACT was one of three task forces chosen to develop and lead intensive immersion leadership training for other human trafficking task forces sponsored by the Department of Justice (DOJ).  Further, WashACT leaders contributed significantly to DOJ’s Anti-Trafficking Task Force and are regularly called on to provide training and technical assistance on human trafficking and multi-disciplinary collaboration locally, nationally and internationally.

            “We appreciate the assistance of this grant in that it will help further the efforts of the department and others in fighting human trafficking.  Ultimately, it’s about making the victims whole again,” said Seattle Police Chief Jim Pugel.

            “Nothing is more important in combating human trafficking than providing victims and survivors with the support they need to build new lives for themselves,” said Kathleen Morris, Program Manager for the Washington Anti-Trafficking Response Network (WARN).  “This funding will allow IRC in Seattle and our WARN partners to provide essential support and services to those affected by human trafficking in our community.”

            The grant to the Seattle Police Department is from DOJ’s Bureau of Justice Assistance (BJA).  The grant to the International Rescue Committee in Seattle is from DOJ’s Office for Victims of Crime (OVC).  The grants support the Enhanced Collaborative Model Task Force taking a comprehensive approach to combating all forms of trafficking—sex trafficking and labor trafficking of foreign nationals and U.S. citizens (male and female, adults and minors). Awards made by BJA support law enforcement agencies to coordinate the goals, objectives, and activities of the entire task force in close collaboration with the U.S. Attorney’s Office  and victim service provider partner. Awards made by OVC support victim service organization to coordinate the provision of a comprehensive array of culturally and linguistically appropriate services to all trafficking victims identified within the geographic area impacted by the task force.

            A long-time financial advisor who was stripped of his insurance producers license in 2012, was arrested today on a federal charge of mail fraud for liquidating a client account without authorization, announced U.S. Attorney Jenny A. Durkan.  EDWARD H. KAHLER, 64, is the owner of Key Resources, a Kenmore, Washington retirement consultation company which sells annuities and life insurance.  The charge alleges that KAHLER used proprietary information from the company he used to represent to access customer accounts.  KAHLER allegedly used that information to liquidate the customer account and use the money for his own benefit.  KAHLER will make his first appearance in U.S. District Court in Seattle at 2:00 PM tomorrow, October 1, 2013.

            According to the criminal complaint, from 1983 to 2007 KAHLER was a financial advisor for Variable Annuity Life Insurance Company (VALIC), and was appointed by VALIC to sell its annuities.  VALIC terminated KAHLER in 2007 when it discovered he was promoting competing annuities.  Using information that he had in his files, KAHLER allegedly created profiles for former clients using the VALIC on-line system, and fraudulently caused VALIC to liquidate the clients’ accounts and send the proceeds to him for his personal use and benefit.  In the instance described in the complaint, on Christmas Eve 2012, KAHLER liquidated the account of a client who had died in 1984, and used the $125,000 to fund a trip to Las Vegas, the payment on a BMW and other personal expenses.  He also paid business expenses with the money.

            Mail fraud is punishable by up to 20 years in prison.

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

            The case is being investigated by the FBI, the U.S. Postal Inspection Service (USPIS), and the Social Security Administration Office of Inspector General (SSA-OIG). The case is being prosecuted by Assistant United States Attorney Justin Arnold.

            U.S. Attorney Jenny A. Durkan announced today that five police departments in western Washington have been awarded Department of Justice grants to fund additional officers under the Community Oriented Policing Services (COPS) program.  The Seattle Police Department received the largest grant – $1.25 million – for ten officer positions.  Auburn Police Department received $625,000 to fund five police positions.  Pierce County, Port Angeles and Sequim each received $125,000 to fund the salary and benefits of one police officer.  This year the grants are particularly focused on those departments developing school safety programs.

“In the wake of past tragedies, it’s clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department’s latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people.  Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”

            “Every additional cop on the streets helps community safety.  These grants focus on needs identified by communities,” said U.S. Attorney Jenny A. Durkan.  “We know that 10 new officers in Seattle will help fight crime in troubled areas.  And for some of our smaller communities, such as Sequim, the addition of one officer who can focus on school safety can improve the lives of hundreds of young people.”

            In addition to the COPS grants to fund personnel, the Tacoma Police Department also received $43,344 to fund its at-risk youth project.

Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions.  More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.

“The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues,” said Joshua Ederheimer, Acting Director of the COPS Office.  “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”

The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers.  The program provides the salary and benefits for officer and deputy hires for three years.

Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans.  There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer.  School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.  

The COPS Office is a federal agency responsible for advancing community policing nationwide.  Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

A mail thief who broke into locked mailboxes to steal checks and identities was sentenced today in U.S. District Court in Seattle to 44 months in prison and four years of supervised release, announced U.S. Attorney Jenny A. Durkan.  WILFREDO BERMUDEZ, 40, of Seattle, was arrested in November 2012 after 13 months of breaking into mailboxes in the Puget Sound region.  BERMUDEZ stole mail in three different counties, including checks, driver’s licenses, and other items by breaking into victims’ mailboxes.  He often threw away or destroyed the remainder of victims’ mail, and left the mailbox damaged or unusable in the process.  At sentencing U.S. District Judge Richard A. Jones noted the many victims who had mail stolen and their bank accounts violated saying, “It may seem like it is just the theft of one check, but it can be a disaster in that person’s life.”

                According to records filed in the case, BERMUDEZ cashed or attempted to cash checks from 27 different victims, including a church.  The loss amount in this case is nearly $80,000.  After stealing the mail, BERMUDEZ would alter the payee and the amount of the stolen checks and cash them at various banks.  Sometimes he made the checks payable to his own name, and on other occasions he used a stolen driver’s license and forged checks to be made payable to that identity.  In some instances, he even wore a costume to make his fraud more convincing; in early November 2012, he cashed and attempted to cash forged checks referencing “heat and cold system replacement” while wearing a plumber’s outfit.  BERMUDEZ was captured on surveillance video breaking in to the locked mailbox at a business plaza.  The red Hummer he purchased with the proceeds of his crimes is visible in the video.

            In asking for a sentence of more than four years in prison, prosecutors noted that many victims had their lives disrupted by the thefts, forcing them to make time consuming changes to various accounts, cancel vacations and change the way they use the mails.  Employees of a victimized church had their paychecks delayed while the church changed bank accounts.  One victim, a recent immigrant to the U.S., was pestered by creditors because BERMUDEZ had used his identity to run up big debts.  BERMUDEZ has two prior state convictions for identity theft.

            The lead investigative agency on the case is the U.S. Postal Inspection Service (USPIS), which was assisted by many local police agencies who responded to reports of mailbox thefts in King, Pierce and Thurston counties. 

            The case was prosecuted by Assistant United States Attorney Ehren Reynolds.

            An innovative partnership led by the U.S. Attorney’s Office was awarded nearly $500,000 from the Department of Justice to continue efforts to combat gun violence in Seattle, announced U.S. Attorney Jenny A. Durkan.  The two-year Project Safe Neighborhoods grant will support a comprehensive strategy to reduce gun crimes, work with at-risk youth, bolster re-entry efforts, and improve data gathering in the East and Southeast police precincts.  The U.S. Attorney’s Office will lead a partnership of the King County Prosecuting Attorney’s Office, Seattle Police Department (SPD), Seattle Neighborhood Group, South Seattle Community College, Washington Association of Sheriffs and Police Chiefs, and research partner Michelle Maike.

            “We must join together and use all tools to reduce gun violence in neighborhoods that have experienced far too much of it,” said U.S. Attorney Durkan.  “That means supporting prevention efforts for at-risk youth, giving those re-entering our neighborhoods skills and support, and continuing our emphasis on prosecuting gun-related crimes.  We are moving forward with proven community strategies, critical law enforcement support and extensive data gathering to keep our communities safe.”

            The grant funding announced today will continue to fund a Senior Deputy King County Prosecutor to act as a Special Assistant U.S. Attorney, reviewing and prosecuting firearms-related cases.  The grant also provides $90,000 for four youth prevention and intervention programs developed by Seattle Neighborhood Group.  The programs include a chess club run by SPD Detective Denise “Cookie” Bouldin, a youth-run record label, an urban writing project for teens, and a boxing program developed by a former gang member.  The grant also provides $90,000 to South Seattle Community College to provide life skills training, workforce development and other education programs to ex-offenders returning to the target neighborhoods.

Additional funding is aimed at gathering data on the programs and evaluating which strategies are working.  SPD will receive $20,000 for its crime analysis unit to purchase new equipment and gather data for the program.  An experienced researcher, Michelle Maike, will receive $100,000 to analyze the data and help develop new strategies to combat gun violence.  Additionally, $30,000 is targeted towards raising public awareness of the anti-crime efforts in impacted neighborhoods.  The Washington Association of Sheriffs and Police Chiefs will help administer the grant.

            U.S. Attorney Jenny A. Durkan announced today that the Department of Justice (DOJ) has reached a formal settlement with three men represented by the American Civil Liberties Union (ACLU) and the Northwest Immigrant Rights Project (NWIRP) over litigation regarding traffic stops on the Olympic Peninsula in Western Washington.  Under the terms of the settlement, the Border Patrol will affirm its continued commitment to constitutional policing through a letter sent to the ACLU of Washington and the NWIRP.  Additionally, within the next year, Border Patrol agents stationed at the Port Angeles Station will receive refresher training on traffic stops that require “reasonable suspicion” under the 4th Amendment to the U.S. Constitution.  Finally, for the next 18 months, the Border Patrol will provide certain forms they use to document traffic stops to the ACLU and the NWIRP, providing the groups with information regarding the frequency and the Border Patrol’s rationale for conducting such stops.  The forms provided to the groups will not include any information identifying the drivers or occupants of the vehicles involved in the stops.

            “This settlement is confirmation that we can both ensure the safety of our borders and protect all members of our communities in a constitutional manner,” said U.S. Attorney Durkan.  “I appreciate the dedication and hard work of the Border Patrol, who are both the first line of defense against danger and the first to welcome millions of our visitors.  I commend all the attorneys who worked to reach a settlement that moves us forward.”

            In April 2012, three plaintiffs, Jose Sanchez, Ismael Ramos Contreras, and Ernest Grimes, filed suit against the Border Patrol, United States Customs and Border Protection (“CBP”), and the Department of Homeland Security (“DHS”) alleging that Border Patrol agents were making traffic stops on the Olympic Peninsula without reasonable suspicion.  The federal government denies that the Border Patrol has a practice of unlawfully stopping vehicles on the Olympic Peninsula and denies wrongdoing with respect to any of the stops involved in the litigation.

            Today’s settlement requires both sides to pay their own attorney’s fees and does not involve any monetary payment to the plaintiffs.  It brings the lengthy litigation to a conclusion and prevents the further expenditure of federal resources.  The settlement agreement is posted on the U.S. Attorney’s website here.

            The litigation was handled for the U.S. Attorney’s Office by Assistant United States Attorney Rebecca Cohen, and for the U.S. DOJ by Timothy Belsan from the Office of Immigration Litigation.

            The final defendant of a violent bank robbery team pleaded guilty today in U.S. District Court in Seattle, announced U.S. Attorney Jenny A. Durkan.  In all, seven defendants have entered guilty pleas to their roles in the string of bank robberies.  JEANINE M. DANIELS, 32, of Los Angeles, California, pleaded guilty today.  The other defendants are: CHARLES A. WILLIAMS, 40, KEVIN L. BROWN, 38; CURTIS W. SMITH, 22; and DOUGLAS L. SMITH, 22, all of Los Angeles, California; JANALISA ESTRADA, 33, Hollywood, California; and ANTHONY V. MOSLEY, 46, of Tacoma, Washington.  All have entered guilty pleas and will be sentenced by U.S. District Judge Richard A. Jones over the next few months.

            According to records filed in the case, various members of the seven member ring participated in one or more of a string of takeover-style bank robberies in Washington, Ohio, Michigan and Colorado.  During the robberies, subjects entered the banks in groups, covered head to toe in loose clothing and gloves, and demanded money while jumping over teller counters.  The four robberies in Washington were:  the May 25, 2012 robbery of a Wells Fargo branch on Pacific Avenue South in Tacoma; the September 6, 2012, robbery of a U.S. Bank Branch on Bridgeport Way in Lakewood; the October 22, 2012, robbery of a Wells Fargo Bank branch on Lake City Way in Seattle; and the December 20, 2012, robbery of a Wells Fargo Bank branch on 132nd Avenue NE in Kirkland.  In their plea agreements, various members of the gang pleaded guilty to different robberies in Saline, Ypsilanti, Ann Arbor, Temperance, and Jackson, Michigan, and Toledo, Ohio.  DANIELS was initially contacted by law enforcement following a bank robbery in Denver, Colorado.  

“The FBI is pleased that Ms. Daniels and her partners are ultimately taking responsibility for their actions,” said FBI Special Agent-in-Charge Laura M. Laughlin.  “The harm they inflicted extends beyond the financial, to include the fear and trauma experienced by bank employees and customers, and the pain levied on their own families.  While these seven subjects have accepted responsibility for robberies in Washington, Michigan, and Ohio, the South Sound Gang Task Force remains committed to investigating additional subjects and associated bank robberies.  The task force combats gang violence in all its forms, and is dedicated to bringing criminals to face justice.”

The South Sound Gang Task Force (SSGTF) in Washington arrested five of the subjects on December 22, 2012 on state bank robbery charges.  The SSGTF arrested the subjects as they prepared to board a Greyhound bus to Los Angeles, California.  Investigators were waiting at the bus station, based upon information that the group frequently traveled to Los Angeles by Greyhound bus within days of a bank robbery.

The Tacoma, Washington-based SSGTF investigated the robberies in Washington state in partnership with the Lakewood Police Department’s Gang Unit and the FBI Seattle Safe Streets Task Force.  The SSGTF is composed of members of the FBI Seattle Division, Lakewood and Tacoma Police Departments, the Washington State Patrol, the Washington State Department of Corrections, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).  FBI entities nationwide collaborated in the investigation, including the Los Angeles Field Office and the Ann Arbor, Denver, and Toledo Resident Agencies.

The case is being prosecuted by Assistant United States Attorneys Mike Dion and Kate Crisham

            The U.S. Department of Justice this week awarded more than $10 million to eight Indian Tribes in Western Washington to enhance services to crime victims and improve criminal justice in the tribal communities, announced U.S. Attorney Jenny A. Durkan.  The grant awards under various Justice Department programs are tailored to the needs identified by each tribe.

            “We look forward to continuing our partnership with the Tribes, and are confident these grants will help increase the public safety of each community,” said U.S. Attorney Jenny A. Durkan.  “One size does not fit all, and I am pleased these grants will address specific needs on Tribal lands.”

            The grants include nearly $2.6 million for crime issues related to alcohol and substance abuse:

• Swinomish Tribe ($349,379)
• Port Gamble S’Klallam Tribe ($460,105)
• Confederated Tribes of the Chehalis Reservation ($407,108)
• Puyallup Tribe of Indians ($628,807)
• Squaxin Island Tribe ($750,000)

 
Two tribal communities were awarded grants to improve the investigation and prosecution of child abuse cases, especially cases of child sexual abuse:

• Tulalip Tribes of Washington ($383,283)
• Puyallup Tribe of Indians ($369,805)

Five tribes received significant funding to combat violence against women:

• Confederated Tribes of the Chehalis Nation ($307,583)
• Cowlitz Indian Tribe ($711,000)
• Puyallup Tribe of Indians ($100,000)
• Swinomish Tribal Community ($700,000)
• Tulalip Tribes of Washington ($886,889)

In addition, tribes also received funding for their community oriented policing efforts providing for tribal police, training and equipment.  The total grant awards to each of the seven tribes are listed here:

Confederated Tribes of the Chehalis Reservation

1,125,991

Cowlitz Indian Tribe

711,000

1,032,932

Puyallup Tribal Council

2,586,479

Quileute Tribe

784,446

Squaxin Indian Tribe

824,445

Swinomish Indian Tribal Community

1,049,379

Tulalip Tribes of Washington

2,068,058

 Total

10,182,730

                                                                                                                                                                                                                                                                                                                                                              

A listing of all the grant awards is available here: http://www.justice.gov/tribal/docs/ctas-award-list-2013.pdf

            A Vancouver, Washington man who imported and sold hundreds of counterfeit vehicle airbags on eBay and Craigslist, was sentenced today in U.S. District Court in Tacoma to six months in prison, announced U.S. Attorney Jenny A. Durkan.  VITALIY YAREMKIV, 25, pleaded guilty in May 2013 to conspiracy to traffic in counterfeit goods.  YAREMKIV sold approximately 960 counterfeit vehicle airbags that he imported from China, Hong Kong and Taiwan.  These counterfeit airbags can be extremely dangerous and during testing have been known to catch fire, spew hazardous debris, and separate completely from the vehicle.  U.S. District Judge Ronald B. Leighton imposed three years of supervised release.

According to the statement of facts in the plea agreement, YAREMKIV operated a business, Vital Auto Parts and Sales, out of his Vancouver home.  He allegedly imported counterfeit Honda, Subaru and Toyota airbags from sources in China and elsewhere, and sold them over the internet representing them as the genuine product.  YAREMKIV sold at least 964 of the counterfeit airbags via eBay with a sales total of $137,243.  YAREMKIV sold individual Honda airbags for an asking price of $110.  Investigators believe that many of the airbags are sold to independent garages who install them in vehicles believing they have purchased a genuine airbag.  YAREMKIV has agreed to pay restitution of $137,243 to Honda Motors Corporation and Toyota Motors Corporation.

In asking for a prison sentence, prosecutors wrote to the court, “The National Highway Transportation Safety Administration (NHTSA) has tested some counterfeit airbags resulting in alarming failures.  Driving a car equipped with a counterfeit airbag may be more dangerous than driving a car with no airbag at all in light of the potential for explosive shrapnel being thrown at the driver or passenger whose airbag fails…..While law enforcement has seized some of these airbags and has continued to attempt to identify others that entered the stream of commerce, identifying vehicles that are equipped with Mr. Yaremkiv’s airbags in the used (and often salvage) car market is extremely difficult.  Some may continue to be installed in cars used on a daily basis for an indefinite amount of time presenting a continued risk of injury to unwary used car buyers.”

Information for consumers regarding counterfeit airbags is available here: http://www.safercar.gov/.

The case was investigated by the FBI and Homeland Security Investigations.  The case is being prosecuted by Assistant United States Attorney Norman Barbosa.

            A felon who most recently lived in the town of Concrete in Skagit County, Washington, was sentenced today in U.S. District Court in Seattle to 10 years in prison and three years of supervised release for illegally possessing guns and body armor, announced U.S. Attorney Jenny A. Durkan.  LARRY L. PRESSLEY, 45, has a lengthy criminal history including convictions for conduct including raping an 11-year-old girl and a drive-by shooting where he fired into a home full of children.  At sentencing U.S. District Judge Robert S. Lasnik said, “We have seen the havoc that is wreaked by people who should not have firearms.”

            According to the plea agreement filed in the case, PRESSLEY was arrested on an unrelated charge on January 12, 2012.  On January 20, 2012, law enforcement searched the home where PRESSLEY and his wife, also a felon, lived in Concrete, Washington.  Inside the home officers found a bullet proof vest (body armor) and two firearms.  One of the firearms had been reported stolen in Whatcom County, Washington.  On May 14, 2013, PRESSLEY pleaded guilty to possession of a stolen firearm and being a felon in possession of body armor.  PRESSLEY has prior felony convictions for attempted assault (1991), drive-by shooting and illegal possession of a firearm (1999) and assault (2012).

“Larry Pressley has been terrorizing Skagit County for a quarter of a century,” said U.S. Attorney Durkan.  “In 1987, he was involved in a brutal beating and robbery.  Since then, he has racked up six more convictions for crimes involving violence, guns, or both.  It is always troubling when a felon possesses a gun.  When a man like Pressley has a gun – a man who actually fired into a home full of children – it is extremely alarming.”

            The case was investigated by the FBI, Skagit County Sheriff’s Office, Washington State Department of Corrections, and Sedro Woolley Police Department.

            The case was prosecuted by Assistant United States Attorneys Michael Dion and Jill Otake.

            Two Tukwila, Washington brothers who were indicted earlier this year for illegal weapons possession, have pleaded guilty in U.S. District Court in Seattle, announced U.S. Attorney Jenny A. Durkan.  JAMAAL JOHNATHAN BOMBER, 30, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and sex trafficking of a child.   FREDERICK N. BOMBER, 31, pleaded guilty to being a felon in possession of a firearm.  FREDERICK N. BOMBER faces up to ten years in prison when sentenced by U.S. District Judge Thomas S. Zilly.  Under the terms of the plea agreement for JAMAAL JOHNATHAN BOMBER, prosecutors and the defense must recommend between 15 and 20 years in prison when he is sentenced.  Both men will be sentenced by Judge Zilly on December 19, 2013.

            According to records filed in the case, both men made sales of weapons or drugs to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).  In April 2013, FREDERICK BOMBER sold the agent a Browning .30-06 caliber rifle.  FREDERICK BOMBER was prohibited from possessing the rifle because of prior convictions for drug offenses (2003, 2006) and bail jumping (2006).

            According to his plea agreement, JAMAAL JOHNATHAN BOMBER sold crack cocaine to an ATF undercover officer on three different occasions in April and May 2013.  JAMAAL JOHNATHAN BOMBER also offered the undercover officer prostitutes, and on June 14, 2013, JAMAAL JOHNATHAN BOMBER had five women go to a hotel room specified by the undercover officer.  The women were detained by police.  One woman was just 16-years-old.  JAMAAL JOHNATHAN BOMBER assisted the woman in working as a prostitute and obtained the profits from the juvenile’s sex acts.  JAMAAL JOHNATHAN BOMBER posted pictures as advertisements for commercial sex acts on backpage.com and other sites, and transported the juvenile to locations for sex acts.  On the same day that the four women were detained by police, a search of JAMAAL JOHNATHAN BOMBER’s hotel room and car turned up crack cocaine as well as a 12-guage shotgun which he possessed to protect his drugs, the drug proceeds and himself.

            Prosecutors will recommend not more than 20 years, and defense attorneys can recommend no less than 15 years for JAMAAL JOHNATHAN BOMBER.  However, Judge Zilly is not bound by the recommendations and can impose any sentence allowed by law up to the maximum of life in prison.

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

            A resident of Seattle’s Ballard neighborhood was arrested this morning on a criminal complaint charging him with conspiracy to distribute marijuana, two counts of distribution of marijuana and possession of marijuana with intent to distribute, announced U.S. Attorney Jenny A. Durkan.  ALEJANDRO ANTONIO CASTILLO, 51, came to the attention of law enforcement in March 2013 after a middle school parent reported students were purchasing marijuana from CASTILLO’s home a block north of Ballard High School.  Surveillance of the home and purchases by undercover officers revealed that CASTILLO and his associates were repeatedly selling marijuana to minors including high school and middle school students from area schools.  CASTILLO will appear in U.S. District Court in Seattle at 2:00 today.

            “The Department of Justice priorities on marijuana are very clear – and one of the highest priorities is preventing the distribution of marijuana to minors,” said U.S. Attorney Jenny A. Durkan.  “The sale of marijuana to these teen-agers not only impacts their ability to learn, it disrupts the educational experience for other students.  This conduct is the reason we have stronger penalties for those who distribute drugs within 1000 feet of schools, parks and other places where children congregate.”

            “There was a gap in the law from the time I-502 passed until the legislature fixed the legal definition of marijuana that would have made the case extremely problematic for state prosecutors.  We appreciate federal prosecutors stepping in to handle this serious case of dealing marijuana to minors,” said King County Prosecutor Dan Satterberg.

            According to the criminal complaint on various dates in April 2013, Seattle Police detectives observed teens from Whitman Middle School and Ballard High School approach the home where CASTILLO lives with his family members and associates.  The teens would go to the back door of the home, be there for a few minutes and leave.  Some were observed to be holding plastic bags of what appeared to be marijuana as they left.  On April 5, 2013, detectives observed 18 teens between the age of 14 and 18 approach the house in a three hour period beginning just before noon.  Most of the teens appeared to come directly from Ballard High School.

            On four different occasions undercover officers posing as juveniles purchased both marijuana and brownies laden with marijuana from CASTILLO or his associates.  On April 24, 2013, Seattle Police served a search warrant at the home and seized approximately 1,200 grams of suspected marijuana which included approximately 99 marijuana cigarettes, nine trays of suspected marijuana brownies, four shotguns, one rifle, six handguns, and $4,755 in U.S. Currency.  According to police reports, the home had previously been targeted in a home invasion robbery.  Two men had fired a shotgun into the house, CASTILLO fired back with one of his firearms, but the robbers fled and no one was hit by gunfire.

            Conspiracy to distribute marijuana, two counts of distribution of marijuana and possession of marijuana with intent to distribute are punishable by up to five years in prison and a $250,000 fine.

            The case is being investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA) and is being prosecuted by Special Assistant United States Attorney Stephen Hobbs.  Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute gun and drug cases in federal court.

U.S. Attorney Jenny A. Durkan will join other Department of Justice leaders and U.S. Attorneys from the Pacific Northwest for a conference devoted to Native American Issues.  The U.S. Attorneys from the Attorney General’s Advisory Council (AGAC) Native American Issues Subcommittee (NAIS) will meet in Hood River, Oregon next week, Sept. 17-19, 2013. Washington State Tribal leaders will meet with DOJ leaders to discuss strengthening offender reentry efforts, white collar crime, juvenile justice issues, defending Indian hunting and fishing rights, and support for the implementation of the 2013 Violence Against Women Reauthorization Act (VAWA 2013).

“With twenty-five recognized Tribes in the Western District of Washington, the safety and security of our Native Communities is one of our top priorities,” said U.S. Attorney Jenny A. Durkan.  “These meetings with Tribal leaders can help tailor federal programs to meet the diverse needs of our Tribal partners – from large urban reservations to smaller rural tribes.  I look forward to the opportunity to work on these issues with other U.S. Attorneys and Tribal leaders.”

On Sept. 18, U.S. Associate Attorney General Tony West and Assistant Attorney General for the Office of Justice Programs Karol Mason will join the U.S. Attorneys for a special joint session with Tribal leaders from Oregon, Washington and Idaho to be held in Celilo Village, Oregon.

“While we are mindful of the great progress that is being made by U.S. Attorneys and tribal justice systems across Indian country, I look forward to exploring with the NAIS and tribal leaders ways that we can strengthen our government-to-government relationships even more, work ever closer with tribal nations, and advance our shared goal of building safe, sustainable, and healthy communities,” said Associate Attorney General West.

Thirty U.S. Attorneys from districts with Indian country or one or more federally recognized tribes serve on the NAIS.  The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues.

VAWA 2013 was signed into law by President Obama on March 7, 2013.  This law contains provisions that significantly improve the safety of native women and allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes.  Many of these critical provisions were drawn from the U.S. Department of Justice’s July 2011 proposal for legislation to combat violence against native women.  The Department is exploring with tribal leaders how the Department can help support the new law’s implementation.  This law generally takes effect on March 7, 2015, but also authorizes a voluntary pilot project to allow certain tribes to begin prosecuting additional cases sooner.

In June 2009, Attorney General Eric Holder launched a Department-wide initiative to enhance public safety in Indian country.  Significant progress has been made since then, and the U.S. Attorney’s Offices with Indian country jurisdiction have had a major role in this success.

In May 2013, the Justice Department released its first report to Congress, required under the Tribal Law and Order Act, entitled Indian Country Investigations and Prosecutions (ICIP).  The ICIP report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAOs) with Indian country jurisdiction shows, among other things, a 54 percent increase in Indian country criminal prosecutions since Fiscal Year 2009.

The information contained in the report shows, among other things, the following:

• The Justice Department’s prioritization of Indian country crime has resulted in a notable increase in commitment to overall law enforcement efforts in Indian country.  Caseloads have increased overall from 1,091 cases filed in fiscal year (FY) 2009 to 1,138 in FY 2010 to 1,547 in FY 2011 to 1,677 in FY 2012.  This represents a nearly 54 percent increase in the Indian country crime caseload.

• The report shows a new era of partnership between the federal government and American Indian tribes, including an unprecedented level of collaboration with tribal law enforcement.  The increase in collaboration and communication strengthens the bond of trust between federal and tribal investigators, prosecutors, and other personnel in both federal and tribal criminal justice systems.  As a result, tribal communities will be safer places to live, work and raise families.

Read more about the Justice Department’s efforts to support implementation of VAWA 2013: http://www.justice.gov/tribal/vawa-tribal.html

Read the entire ICIP report at www.justice.gov/tribal/tloa-report-cy-2011-2012.pdf

Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html

            One of the leaders of a Mexican cartel connected to a drug and gun trafficking ring was sentenced today in U.S. District Court in Seattle to 20 years in prison, announced U.S. Attorney Jenny A. Durkan.  VICTOR BERRELLEZA-VERDUZCO, 24, of Everett, Washington, pleaded guilty in April 2013 to Conspiracy to Distribute Controlled Substances; Conspiracy to Commit Money Laundering; Conspiracy to Interfere with Commerce by Robbery; and Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime.  BERRELLEZA-VERDUZCO and his brother Cristian were the leaders of a large Mexico based drug and gun trafficking ring with ties to the violent Beltran-Leyva drug cartel.  At sentencing U.S. District Judge Robert S. Lasnik said BERRELLEZA-VERDUZCO  participated in “dangerous and serious crimes.”

            “This case shows how much our community is impacted by the crime and violence spread by international drug cartels,” said U.S. Attorney Jenny A. Durkan.  “I congratulate the dedicated agents and officers who not only intercepted the weapons destined for the cartel leaders, but also moved in to stop drug related violence being planned in our region.”

            According to records filed in the case, VICTOR BERRELLEZA-VERDUZCO was involved in both the smuggling of meth and heroin from Mexico into the United States and in efforts to smuggle guns back to Mexico.  In one phone call, monitored by law enforcement, VICTOR BERRELLEZA-VERDUZCO discusses obtaining a rifle with a grenade launcher, similar to the weapon in the movie “Scarface.”  VICTOR BERRELLEZA-VERDUZCO was involved not only in gun and drug trafficking, but in efforts to use violence to collect drug debts or rip off rival drug trafficking organizations.  Timely intervention by law enforcement stopped one home invasion robbery.

            “This sentencing illustrates that violent drug smugglers will ultimately pay a high price for their crimes,” said Brad Bench, Special Agent in Charge of ICE HSI in Seattle.  “These illegal drugs destroy lives and ruin our communities at home, and illegal weapons smuggled to Mexico add to the cartels’ reign of violence.  This defendant seriously compromised the public’s safety and well-being in both countries.  By sharing information and resources, HSI and its law enforcement partners have sent a strong message that this type of activity will not be tolerated.”

            VICTOR BERRELLEZA-VERDUZCO was arrested at a Utah stash house in April 2012 with more than a kilo of heroin.

            In asking for a long prison sentence prosecutors wrote to the court that VICTOR BERRELLEZA-VERDUZCO “was a leading member of a violent drug and weapons trafficking conspiracy, with direct ties to a violent Mexican cartel… during the wire, Defendant’s father was intercepted discussing having just met the leader of the cartel, and Defendant’s brother Cristian was intercepted speaking with another very-highly placed cartel figure….  Victor and his family sent large amounts of cash back to cartel figures in Mexico, and at least attempted to move military-style firearms back to those same figures.  Threats of violence were a frequent feature of this organization’s activities.”

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 ICE’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco and Firearms (ATF), the Drug Enforcement Administration (DEA), the Lake Stevens Police Department, the Snohomish Police Department, Washington State Patrol, the Snohomish Regional Drug Task Force and the Seattle Police Department.

The case is being prosecuted by Assistant United States Attorney Vince Lombardi.

            A 45-year-old University Place, Washington man pleaded guilty today in U.S. District Court in Seattle to Conspiracy to Kill Persons in a Foreign Country and Solicitation to Commit a Crime of Violence, announced U.S. Attorney Jenny A. Durkan. LONG VAN NGUYEN, admits that in 2012 he tried to pay to have various people in Vietnam killed.  NGUYEN thought that he was hiring an assassin to carry out the murders when in fact he was dealing with undercover federal law enforcement agents.  Prosecutors have agreed to recommend no more than 14 years in prison when NGUYEN is sentenced by U.S. District Judge Robert S. Lasnik on January 10, 2014.  However, Judge Lasnik is not bound by the recommendation and can impose any sentence allowed by law.

            According to the plea agreement signed today, in March 2012 NGUYEN solicited an undercover Homeland Security Investigations Special Agent to assassinate people in Vietnam.  NGUYEN had told others that he had sent $100,000 to a nephew in Vietnam, instructing him to spend only the interest earned by the money.  Instead, the nephew spent all the money so NGUYEN wanted him killed.  The undercover agent told NGUYEN he had associates in Vietnam who could do the killings.  NGUYEN agreed to a plan whereby his nephew ‘Bon’ would show the ‘assassins’ who NGUYEN wanted killed.  After identifying two proposed victims, NGUYEN then instructed the undercover agent that he wanted the nephew ‘Bon’ killed as well.  A police officer in Vietnam, as well as an undercover FBI agent posed as possible assassins in the scheme.  NGUYEN paid the undercover FBI agent additional money for the hit, and added four more people to the list of those he wanted killed.  He provided pictures to the undercover Homeland Security special agent of the four he wanted killed.  NGUYEN was arrested at his home on July 7, 2012 and has been in custody ever since.

            Conspiracy to Kill Persons in a Foreign Country is punishable by up to life in prison and Solicitation to Commit a Crime of Violence is punishable by up to 20 years in prison.

            The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), with assistance from the FBI and law enforcement in Vietnam.  The case is being prosecuted by Assistant United States Attorneys Jill Otake and Ye-Ting Woo.

            A registered sex offender with a prior conviction for child molestation was sentenced today in U.S. District Court in Seattle to 15 years in prison for receipt of child pornography, announced U.S. Attorney Jenny A. Durkan.  CHARLES GLENN PERKINS, 53, pleaded guilty in June 2013 following an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).  U.S. District Judge Ricardo S. Martinez recommended that PERKINS be placed at a prison with sex offender treatment and imposed a 15 year term of supervised release following his prison sentence.

PERKINS was identified by law enforcement in the current case when he tried to enter Canada on December 29, 2012 and was denied entry due to his prior convictions for sex offenses.  PERKINS is a registered sex offender in Washington State having previously been convicted of child molestation offenses in Kitsap County in 1987 and 1990.  The Canadian Border agents sent PERKINS’s laptop for screening and investigators noted two pictures of nude children.  Agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations obtained a search warrant for PERKINS’s Burien residence.  A review of his digital media revealed that he had received and possessed approximately 610 images and 10 videos of minors engaged in sexually explicit conduct.

PERKINS was prosecuted 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.projectsafechildhood.gov

The case was investigated by ICE’s Homeland Security Investigations (HSI), and was prosecuted by Assistant United States Attorney Jerrod Patterson.

            A repeat offender who was arrested in December 2011 with two firearms in his Tacoma apartment was sentenced today in U.S. District Court in Tacoma to 15 years in prison and five years of supervised release, announced U.S. Attorney Jenny A. Durkan.  JAMES QUINCY WILKINSON, 39, has prior convictions for burglary (1993), unlawful possession of a firearm (1994, 1999), Assault (1995, 98, 99) and assault of a child (2005).  WILKINSON was released from prison in January 2011.  Department of Corrections officers conducted the search after getting reports that WILKINSON was dealing drugs and possessing firearms.  U.S. District Judge Benjamin H. Settle determined WILKINSON qualified as an Armed Career Criminal, saying that the case was “extraordinary.”  The Judge stated that Wilkinson’s criminal history showed “indifference to the suffering and safety” of others, and found that a long sentence was required “for the protection of the public.”

            According to records filed in the case, in December 2011, the Pierce County Sheriff’s Office and the South Sound Gang Task Force received reports that WILKINSON was dealing drugs and was armed.  WILKINSON was on community supervision following a ten year prison sentence for assaulting and critically injuring a toddler.   Community Corrections officers searched WILKINSON’s car and found crack cocaine.  In his apartment they found two loaded weapons – one of them stolen.  At a bench trial in September 2012, WILKINSON was found guilty of being a felon in possession of a firearm and an Armed Career Criminal.  The finding mandates a sentence of at least 15 years in prison.

            The case was investigated by the Tacoma Police Department, the Washington State Department of Corrections, Lakewood Police Department, Washington State Patrol, FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the South Sound Gang Task Force.

            The case was prosecuted by Assistant United States Attorney Michael Dion.

            A leader of the Ghost Riders motorcycle gang in Pierce County pleaded guilty today in U.S. District Court in Tacoma to possession of an unregistered short-barreled shotgun and being a felon in possession of explosives, announced U.S. Attorney Jenny A. Durkan.  KARL TWILLEAGER, a/k/a “King Karl”, 66, of Spanaway, Washington, has been in custody since his property was searched on June 13, 2013.  When sentenced by U.S. District Judge Ronald B. Leighton on December 6, 2013, prosecutors and the defense will jointly recommend a five year prison term.  However, Judge Leighton may impose any sentence up to the ten year maximum allowed by law.

            According to the plea agreement signed today, on June 11, 2013, ATF agents searched a Spanaway storage locker belonging to TWILLEAGER and found more than two sticks of Emulsion explosives and four blasting caps.  They also recovered six firearms, including three rifles, two shotguns, and a handgun, as well as additional ammunition and empty ammunition magazines.  Two days later they searched TWILLEAGER’s home and a shed on the property that was used as the Ghost Rider’s clubhouse.  They seized multiple rounds of different calibers of ammunition, and six more firearms, including four handguns, a rifle, and a J.C. Higgins model 20 12-gauge short-barreled shotgun, with a barrel length of approximately 15.5 inches with no serial number.  TWILLEAGER was convicted of second degree murder in Grant County, Washington in 1994 and is therefore prohibited from possessing firearms and explosives.

            The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Pierce County Sheriff’s Office Bomb Squad, the Washington State Patrol SWAT Team, and the South Sound Gang Task Force, and was prosecuted by Assistant United States Attorney Gregory A. Gruber.

            In coordinated arrests this morning, the FBI, ATF, U.S. Postal Inspection Service and Seattle Police Department took eight people into custody for a wide ranging drug trafficking conspiracy, announced U.S. Attorney Jenny A. Durkan.  Members of the conspiracy maintained drug stash houses throughout the Pacific Northwest.  Search warrants were served today in Vancouver, Covington, Puyallup, SeaTac, Tukwila, Seattle and Tacoma, Washington.  Some of the drug traffickers conducted their deals at a Mexican restaurant in the South Park neighborhood of Seattle: the Juan Colorado.  The restaurant was closed today while law enforcement searched the premises.  The defendants will make their initial appearances at 2:00 PM today in U.S. District Court in Seattle.

            “The members of this drug trafficking conspiracy brought meth, cocaine and heroin to our communities preying on those with addictions to line their own pockets,” said U.S. Attorney Jenny A. Durkan.  “This lengthy investigation led to seizures of illegal weapons as well as street drugs.  This strong law enforcement collaboration is essential to keeping our communities safe.”

            According to court records, the investigation of the drug trafficking organization began in November 2011.  Surveillance indicates the conspirators brought the drugs up from California and sold them at various locations ranging from auto wrecking yards in Auburn to outside restaurants at the Southcenter shopping mall.  Many of the drug deals were made in or around the Juan Colorado Mexican restaurant on 14th Avenue South, Seattle.

            “Today’s operation is just the beginning of the end for an aggressive drug and weapons trafficking organization,” said FBI Special Agent-In-Charge Laura M. Laughlin.  “The FBI will continue to work with the Seattle Police Department, ATF and other law enforcement agencies to bring an end to the drugs, guns and violence that these criminals bring to our streets.”

            “Mixing criminals, guns and drugs is a foul recipe for any neighborhood,” said Seattle Police Chief Jim Pugel. “This organization spread its rotten ingredients throughout Puget Sound. Working together with our local and federal partners, we were able to ‘eighty-six’ this criminal enterprise, taking it off of the menu for good.”

            Members of the drug conspiracy arrested today following their indictment by the grand jury for drug distribution include:  JOSE AYALA MAZORAQUIL, 39, of Tukwila, Washington; ALFONSO ROJO LOPEZ, 26, and JOSEPH EDWARD BELL, 62, both of SeaTac, Washington;  PEDRO VELAZQUEZ GOMEZ, 27, and BENJAMIN CASTRO, 45, both of Seattle, Washington.  Three people were arrested on criminal complaints: VICTOR AMAYA CRUZ, 40, of Auburn, Washington for distribution of cocaine and methamphetamine and two additional defendants who will appear in court at 2:00 PM today.

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

            This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  The investigation was led by the FBI’s Safe Streets Task Force including officers and agents from the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the U.S. Postal Inspection Service (USPIS).  Today’s arrests and search warrants involved a number of law enforcement agencies: the King County Sherriff’s Office, Pierce County Sherriff’s Office, Tacoma Police Department and the Valley SWAT Team (Renton, Kent, Tukwila and Auburn Police Departments).

            The case is being prosecuted by Assistant United States Attorneys Jeffrey Backhus and Kate Crisham.