Western District of Washington

            An investigation into the criminal conduct of members of the so-called ‘Sovereign Citizen’ movement has resulted in four defendants being convicted by juries in U.S. District Court in Tacoma, announced U.S. Attorney Jenny A. Durkan.  The jury deliberated for five hours before convicting RAYMOND LEO JARLIK BELL and UTE CHRISTINE JARLIK BELL of four counts of filing false, fictitious and fraudulent claims.  RAYMOND LEO JARLIK BELL was also convicted of 15 counts of assisting in filing false tax returns, three counts of mail fraud, and one count of obstruction of justice.  Judge Ronald B. Leighton scheduled sentencing for the couple from Yelm, Washington on June 14, 2013.

            Just last week, two other co-conspirators in a related case were convicted of federal charges for their criminal conduct.  KENNETH WAYNE LEAMING, 57, of Spanaway, Washington, was convicted of three counts of filing false liens against federal officials, and one count of harboring federal fugitives and being a felon in possession of firearms.  His co-conspirator, former Tacoma resident DAVID CARROLL STEPHENSON, was convicted of a single count of filing false liens against a federal official.

            “The right to criticize our government is one of the most cherished rights.  But this liberty does not include the right to commit crimes,” said U.S. Attorney Jenny A. Durkan.  “These defendants repeatedly broke the law with frauds aimed at taxpayers and public servants.  We are grateful the jury held them accountable for their actions.”

            According to records filed in the case, law enforcement was investigating an on-going tax fraud scheme involving the JARLIK BELLs when LEAMING and STEPHENSON’s criminal conduct was uncovered.  Both men already had federal criminal convictions.  The JARLIK BELL investigation centered on the filing of false tax returns using a scheme known as OID fraud; RAYMOND LEO JARLIK BELL advised and assisted others in using the scheme. In 2006, the BELLs obtained a tax refund in excess of $30,000 using the scheme.  Six others who were advised by JARLIK BELL also filed for and received fraudulent refunds they did not deserve.  One woman received a tax refund of more than $590,000.

“There are people out there peddling ideas that are the modern equivalent of snake oil. The notion that there is a secret way to get the government to pay you money that you are not entitled to is just plain wrong. Our tax laws are public record and this conviction by jury proves that people who file false claims and sell that idea to others will be held accountable for their deceit,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest.

            Materials found in a search of the JARLIK BELL home implicated LEAMING in separate criminal conduct.  When investigators with a warrant searched LEAMING’s Spanaway home on November 21, 2011, they found six firearms.  LEAMING was prohibited from possessing firearms because of a prior felony conviction of operating an aircraft without a pilot’s license.  Additionally, investigators determined that two wanted federal fugitives from Arkansas had been living with LEAMING in his home.  Finally, the search revealed that LEAMING and STEPHENSON, who was an inmate at the time in an Arizona federal prison, had been conspiring to file liens against various federal officials including the Arizona prison warden and the head of the Federal Bureau of Prisons.

            Members of the Sovereign Citizen movement profess a belief that both state and federal government entities are illegitimate.  Members of this group often engaged in so-called “freedom driving,” i.e., driving about without state-required licenses, either for their vehicles or themselves.  When contacted by local law enforcement, members of the group often bombard local officials (from the officer, to local judges, to mayors and other members of local government) with frivolous liens, false claims, and sometimes threats of violence.  Many members of this same group had previously come to the attention of federal law enforcement for engaging in various fraudulent tax schemes, wire fraud schemes, and (occasionally) inappropriate communications with various members of federal law enforcement and the judiciary.

            Two other defendants active in the Sovereign Citizen movement have already been sentenced to prison for their criminal conduct.  David Russell Myrland was sentenced in 2011 to 40 months in prison for making threats against elected officials in Kirkland, Washington.  And in 2012 Timothy Garrison was sentenced to 42 months in prison for assisting in the filing of false tax returns.

            The cases were investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), the FBI, ATF, the Federal Protective Service and the U.S. Marshal Service.

            The cases were prosecuted by Assistant United States Attorneys Vince Lombardi, Jill Otake, Thomas Woods and Matthew Diggs.

This afternoon, the Department of Justice filed its “Notice of Approval of the Monitoring Plan for the First Year” with the U.S. District Court.  The Notice of Approval states:

The Monitor submitted a draft of the Monitoring Plan to the Parties on February 1, 2013.  From February 25 to 28, 2013, the Monitor, the City of Seattle, and the Department of Justice engaged in lengthy and productive discussions about the draft Monitoring Plan.  The Monitoring Plan submitted to the Court reflects the input of both Parties during those discussions, and it balances the competing interests of certainty and flexibility.

As the Parties move forward with the first year of implementation of the Settlement Agreement, the Monitoring Plan will provide guidance to the Parties and create clear expectations for the people of Seattle.  As such, the Monitoring Plan complies with the requirements of the Settlement Agreement, does not impose new obligations on the parties, and avoids unnecessary delays while still providing an opportunity for collaborative implementation.  In addition, the Monitor’s current and proposed work are in line with the budget submitted to and approved by the Parties and the Court in November 2012.

After extensive and productive conversations with the parties and working hundreds of hours with members of the Seattle Police Department, the Monitor has submitted a plan that provides clear guidance and certainty for SPD’s reform efforts.  The Monitoring Plan details the requirements and deadlines for new policies and training, the Monitor’s role in assuring compliance under the Settlement Agreement, and, ultimately, what success looks like.

The Monitor has proposed a process for the development of policies and training that allows for significant collaboration among the parties and for critical community input.  The community must have faith and confidence that the reforms Seattle agreed to are implemented fully, efficiently, and effectively.

In an effort to avoid unnecessary distractions or delay, the Department of Justice will expedite its final review of the Monitoring Plan and anticipates filing its notice of approval with the Court soon.

            Six people who operated a web of apartments in four States used as brothels were indicted last week for conspiracy to transport individuals for prostitution, conspiracy to use a communications facility to promote prostitution and conspiracy to engage in money laundering, announced U.S. Attorney Jenny A. Durkan.  The indictment was returned following an undercover investigation involving the King County Sheriff’s Office, the Kirkland Police Department, the Bellevue Police Department, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).  The conspirators advertised Asian women for ‘massage services’ on backpage.com, and leased apartments in Bellevue and Kirkland, Scottsdale, Arizona, Chicago, Illinois, and Falls Church/Tysons Corner, Virginia.  Some of the defendants will appear in U.S. District Court in Seattle at 2:30 p.m. today.

            “These defendants exploited vulnerable women immigrants to enrich themselves,” said U.S. Attorney Jenny A. Durkan.  “We will work with our partners to stop this exploitation.  I commend the member of our community who alerted law enforcement.  I also applaud the good work of the King County Sheriff’s Office, and the Bellevue and Kirkland Police Departments for their work with ICE’s Homeland Security Investigations on this case.”

            According to the indictment and other records filed in the case, law enforcement began investigating reports of apparent prostitution activity at a Kirkland apartment complex.  The investigation revealed that six people were working together running a prostitution business utilizing apartments they rented in four different states, and ads placed on backpage.com.  Many of the women who provided sexual services were in the U.S. illegally, having overstayed their visas.  The women owed debts of as much as $60,000 to the leader of the prostitution ring, for providing them with the employment opportunities in the U.S.  Most of the women were recruited in Thailand and came to the U.S. knowing they would be sex workers to pay off their debt.  The conspirators used multiple cell phones to place the ads, and one of the conspirators worked as the “operator,” lining up appointments for the women.  Those indicted today include:

            UNRUEAN ABOULAFIA, 34, of Bellevue is the leader of the scheme.  A Thai national, she was in the U.S. illegally.  She allegedly recruited the women from Thailand, and advertised their services on backpage.com.  The women paid her their smuggling debt.

            THANYATHORN MOHR, 35, of Bellevue is a Thai National who was legally in the U.S.  She allegedly was the “operator” for the women, responding to the calls generated by the backpage.com ads, scheduling appointments and directing clients to the apartments.

            JEFF CHU, 48, a U.S. citizen living in Bellevue, allegedly leased various apartments for the group in Bellevue and in Illinois, in both his name and the name of his ex-wife.  He collected some of the proceeds for the conspiracy and laundered the money through various bank accounts.

            XINPING ZHANG, 39, a Chinese National legally in the U.S. and CHU’s ex-wife.  She allegedly rented various apartments for the conspirators, collected money and laundered funds.

            EDWARD FLANIGAN, 57 of Federal Way, Washington, allegedly rented apartments for the prostitution activities in Washington and Arizona.

            STEVEN ABOULAFIA, 59, a U.S. Citizen of Henderson, Nevada, and the ex-husband of the ring leader, allegedly leased apartments in Washington and Virginia and collected prostitution proceeds.

            “This investigation has revealed a criminal enterprise that spans at least four states and affects multiple residential neighborhoods,” said Brad Bench, special agent in charge of HSI Seattle. “Only through multi-agency cooperative investigations can law enforcement be most effective at attacking and dismantling these organizations that prey on the vulnerable and often bring other criminal activity into our area.”

“This case is more than prostitution, money laundering, and conspiracy.  It is about human trafficking,” said King County Sheriff John Urquhart.  “The Sheriff’s Office is committed to fighting human trafficking and holding responsible those who engage in this despicable activity.”

 “The Bellevue Police Department is committed to proactively targeting all forms of human trafficking with our law enforcement partners on all levels (local, county, state, and federal). Bellevue police condemns the financial and physical exploitation of these victims and the suspects who manage these operations,” said Bellevue Police Investigations Captain Steve Lynch.

            The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. 
Conspiracy to transport individuals for prostitution and conspiracy to use a communications facility to promote prostitution are each punishable by up to five years in prison, and conspiracy to engage in money laundering is punishable by up to twenty years in prison.

            The case is being investigated by the King County Sheriff’s Office; HSI Seattle, Chicago, and Washington, DC; the Bellevue Police Department; and the Kirkland Police Department.  The case is being prosecuted by Assistant United States Attorney Ye-Ting Woo.

            A Tacoma man who continued to deal drugs while illegally armed with a handgun even after his first federal arrest, was sentenced today to six years in prison and five years of supervised release, announced U.S. Attorney Jenny A. Durkan.  DAVID KUNTZ, 28, was arrested twice over a five month period with firearms while involved in drug trafficking.  A convicted felon, KUNTZ is prohibited from possessing firearms.  KUNTZ pleaded guilty in October 2012 to being a Felon in Possession of a Firearm, Possession with Intent to Distribute Oxycodone, and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.  At sentencing U.S. District Judge Ronald B. Leighton told him, “this conduct is corrosive in the community…. You are responsible for that.”

            According to records filed in the case, KUNTZ’s first arrest in this case occurred in June 2011 in the McDonald’s parking lot on South Tacoma Way and Highway 512.  KUNTZ arrived at a drug deal set up by a person working with law enforcement.  KUNTZ was driving in a truck with another person.  The driver of the truck tried to flee, crashing into vehicles parked in the lot.  At the time of the arrest KUNTZ was in possession of a Ruger semi-automatic pistol and $7,800 in cash that he admitted was for the drug buy.  KUNTZ was prohibited from possessing a firearm because of five felony drug convictions in Pierce County Superior Court.

            Following the June 2011 arrest, KUNTZ was again contacted by law enforcement while involved in drug trafficking.  On November 2, 2011, Lakewood Police stopped the car in which KUNTZ was riding.  KUNTZ was sitting on a firearm, a 9mm Smith and Wesson, and had more than 100 oxycodone pills in his possession.  He also had more than $2100 in cash.

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

            A former Tacoma, Washington banker who fraudulently raided the line of credit belonging to a non-profit organization, was sentenced today in U.S. District Court in Tacoma to four years in prison, five years of supervised release and $917,204 in restitution, announced U.S. Attorney Jenny A. Durkan.  JEFFREY R. GOODELL, 32, lied about his education to get a job at Northwest Commercial Bank, and then used his position as a loan officer to fund cash disbursements to friends and associates, and potential bank customers, using the bank accounts and line of credit of the Tacoma Rescue Mission.  In all, between 2009 and 2010, GOODELL disbursed nearly $1.3 million from the bank by using the Tacoma Rescue Mission bank accounts and line of credit.  U.S. District Judge Benjamin H. Settle ordered GOODELL into custody.

            According to records filed in the case, GOODELL repeatedly used the line of credit associated with the Tacoma Rescue Mission, and bank accounts held by the non-profit to make unauthorized loans.  When a bank executive grew suspicious, he had a friend impersonate the executive director of the organization on the phone to say the transactions were authorized.  GOODELL used phony emails to further his fraud by making it appear an executive with the non-profit Rescue Mission had authorized the transactions.  When executives first noticed depletions in their account, GOODELL sent them a new, falsified statement, saying the previous one was in error.  At one point, to keep the fraud going, GOODELL shaved his head and claimed he had been diagnosed with cancer and therefore needed to save up his annual leave.  In truth, GOODELL did not want to take leave or be away from the bank because of the risk his scheme would be uncovered.  GOODELL was fired by the bank in December 2010.

            In asking for a significant sentence prosecutors wrote that for more than six months, GOODELL pursued a fraud against the bank “with a vengeance.  Not only did he methodically drain one TRM account after another, after he had nearly drained all of its accounts, he fraudulently used the identity of a TRM officer to open yet another account.  Even after being confronted by (a TRM executive), Goodell brazenly continued the fraud the day after he assuaged (the executive’s) concern by sending her a fraudulent account statement.”

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

            A Korean National who fraudulently gained U.S. Citizenship in a fake marriage, was sentenced today to two years in prison and three years of supervised release for Conspiracy to Commit Immigration Fraud, Conspiracy to Harbor, Transport, and Induce Illegal Aliens and Attempt to Commit Immigration Fraud, announced U.S. Attorney Jenny A. Durkan.  MIYOUNG ROBERTS, 42, of Auburn, Washington, operated the Blue Moon bar in Federal Way.  In her supervisory role, ROBERTS arranged for more than two dozen Korean women to travel to and around the U.S. to work at various clubs, and she counseled them on how to avoid detection by immigration authorities.  At sentencing U.S. District Judge Ronald B. Leighton stated that ROBERTS’ conduct was “degrading” and “shameful.”

Between 2009 and 2012, ROBERTS worked first as an ‘Assistant Madam’ and later a ‘Madam,’ at the Blue Moon, hiring the women who served as “bar girls” and arranging their transportation from Korea to the U.S.  ROBERTS also arranged apartments for the women to live in and supervised some of the women’s prostitution activities.  ROBERTS herself entered into a fraudulent marriage to obtain a green card in the U.S. and attempted to arrange a fraudulent marriage for another co-conspirator.  The groom she recruited was actually an agent working undercover on the case.

ROBERTS did not limit her activities to the areas of King and Pierce Counties, but was prominent in supplying women to similar Korean bar businesses across the country.  “The defendant was involved in criminal activity for over three years, and even when not employed at the Blue Moon, she was actively recruiting and coordinating the travel of illegal Korean National women to work at various room salon [bar] businesses in New York, New Jersey, Texas, and Colorado.  ….Through such recruitment, the defendant was able to secure a job for herself at any one of these room salons around the country, and earned a reputation for being a successful room salon madam.  ….Through her work as a room salon madam, the defendant induced numerous Korean women to unlawfully enter and stay in the United States to work at various room salons in different cities,” prosecutors wrote in their sentencing memo.

The owner of the Blue Moon salon, Chang Kim, will be sentenced next month. 

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Washington State Liquor Control Board (WSLCB), the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI.

The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Matthew Thomas.

            The former owner of a Longview nightclub and long-stay hotel, was sentenced today in U.S. District Court in Tacoma to five years in prison and five years of supervised release, announced U.S. Attorney Jenny A. Durkan.  CHRISTOPHER LONNIE REID, 52, pleaded guilty in October 2012 to distribution of methamphetamine.  REID was charged federally in 2011 following an undercover investigation by the Drug Enforcement Administration (DEA) and the Cowlitz-Wahkiakum Narcotics Task Force.  At sentencing U.S. District Judge Ronald B. Leighton said, “this crime (methamphetamine distribution) destroys the fabric of a community brick by brick.”

            According to records filed in the case on October 22, 2010 and again on October 27, 2010 REID distributed methamphetamine to a person working with law enforcement.

            In their sentencing memo, prosecutors noted that REID was distributing drugs at the same time he was making money by renting rooms to drug addicts.  “Reid has owned a residential hotel-type building in Longview for the past several years.  Reid’s business, the Smallwood Hotel, rented small rooms.  The hotel had the reputation in the community of housing drug addicts,…  Given Reid’s drug dealing, the fact that he ran a hotel for drug addicts is an aggravating factor that this Court should consider when sentencing Reid,” prosecutors wrote in their sentencing memo.

            The case was investigated by the DEA and the Cowlitz-Wahkiakum Narcotics Task Force.  The case was prosecuted by Assistant United States Attorney Brian Werner.

WASHINGTON – Vice President Joe Biden and Attorney General Eric Holder today awarded the Public Safety Officer Medal of Valor to 18 public safety officers who exhibited exceptional courage in saving and protecting others and whose heroic actions were above and beyond the call of duty.

“This year’s Medal of Valor recipients have fearlessly responded to desperate cries for help – courageously risking their own lives to secure innocent victims, protect fellow officers, and end deadly assaults,” said Attorney General Eric Holder. “These extraordinary public servants have distinguished themselves by going above and beyond the call of duty.  And today, I am honored to join Vice President Biden in bestowing one of our nation’s most prestigious decorations on each of these heroes.”

The Medal of Valor, authorized by the Public Safety Medal of Valor Act of 2001, is awarded by the President of the United States to public safety officers cited by the Attorney General. Public safety officers are nominated by the chiefs or directors of their employing agencies and recommended by the Medal of Valor Review Board.  The Attorney General has designated the department’s Office of Justice Programs (OJP) to serve as the federal point of contact for the Medal of Valor initiative. OJP’s Bureau of Justice Assistance (BJA), led by Director Denise E. O’Donnell, administers the Medal of Valor initiative.

“We recognize 18 extraordinary individuals for their quick thinking, selflessness and exceptional courage,” said Office of Justice Program Acting Assistant Attorney General Mary Lou Leary. “They are law enforcement, corrections officers, and firefighters who went beyond the call of duty to risk – and in some cases, to give – their lives for their fellow citizens and colleagues.”

Today’s 18 recipients of the Medal of Valor are: Officer Julie Olson, Maplewood Police Department, Minn.; Officer Reeshemah Taylor, Osceola County Corrections Department, Fla.; Wildlife Officer Michael Neal, Arkansas Game and Fish Commission; Officer Sean Haller and Officer Rafael Rivera, California Highway Patrol; Trooper Robert Lombardo and fallen Trooper Joshua Miller, Pennsylvania State Police; Firefighter Peter Demontreux, New York City Fire Department; Firefighter Hope Scott and Captain William Reynolds, Virginia Beach Fire Department, Va.; Deputy Sheriff Krista McDonald, Kitsap County Sheriff’s Office, Wash.; Officers Timothy McClintick, Max McDonald, Douglas Weaver, Sergeant Karl Lounge Jr. and fallen Sergeant Thomas Baitinger, St. Petersburg Police Department, Fla.; and fallen Deputies William Stiltner and Cameron Justus, Buchanan County Sheriff's Office, Va.

“The Public Safety Officer Medal of Valor is the highest national award for valor awarded to a public safety officer,” said Bureau of Justice Assistance Director, Denise E. O’Donnell. “BJA is proud to administer a program which serves to recognize the exceptionally brave actions of individuals who have given selflessly in order to protect citizens and communities throughout our nation.”

Including today’s awardees, a total of 78 medals have been presented since the first recipients were honored in 2003.  More information about the award and today’s recipients, the Medal of Valor Review Board members, and the nomination process is on the OJP website at: www.ojp.usdoj.gov/medalofvalor.

            A Lynnwood, Washington couple who defrauded state and federal programs designed to assist the needy were sentenced to incarceration and home confinement today for multiple counts of mail fraud and theft of government funds.  IGOR MEYER, 47, was sentenced to 30 days in prison, six months of home detention and three years of supervised release.  His wife, ZOYA MUSHAILOVA, 35, was also sentenced to 30 days in prison, six months of home detention and three years of supervised release.  The couple had a household income of approximately $100,000 and owned their own home.  However, they represented to caseworkers that MEYER was a single father of four with income of less than $12,000 per year, allowing him to collect housing and other government benefits.  At sentencing U.S. District Judge Robert S. Lasnik said the fraud scheme “has a real corrosive impact on society… both in the attitude of taxpayers and in denying benefits to people who really need them.”

            The couple was indicted in October 2011, and the two were convicted following a jury trial in October 2012.  Evidence at trial revealed they schemed to defraud programs for the needy of more than $70,000 over three years.  The couple purchased a Lynnwood condominium in MUSHAILOVA’s name and they used a real estate management company to ‘rent’ it to MEYER claiming he was a former in-law of MUSHAILOVA.  MEYER applied for both food and Social Security benefits as a single father of four, claiming the family had no income.  MUSHAILOVA not only owned the Lynnwood condo, she also owned a rental property in Arizona, making the family ineligible for aid.  Far from being needy, the couple drove luxury cars, and took cross country and international vacations.  On the day they returned from one such vacation to New York and Mount Rushmore, MEYER submitted a declaration to the housing program claiming MUSHAILOVA was his “ex-wife” and he did not know where she lived.

            In asking for prison time, prosecutors noted that the average time on the waiting list for housing assistance in Snohomish County is six years.  “Defendants exploited social programs intended for the poor.  By fraudulently collecting housing benefits they did not need, they denied truly needy families the opportunity to obtain decent housing.  They stole funds intended to provide food, cash and medical assistance to the poor.  In short, defendants enriched themselves by victimizing the most vulnerable members of the community,” prosecutors wrote in their sentencing memo.

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

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

            A 42-year-old Whatcom County resident was sentenced today in U.S. District Court in Seattle to 14 years in prison and five years of supervised release for two counts of Aggravated Sexual Abuse, announced U.S. Attorney Jenny A. Durkan.  DAVID ALLEN JAMES is a Lummi Tribal member, and the crimes occurred on Lummi Tribal land so the case was prosecuted federally.  JAMES was indicted in May 2012 and pleaded guilty in October 2012.  At sentencing U.S. District Judge Robert S. Lasnik said, “We have come a long way in recognizing how devastating sexual abuse is to children and how it repeats itself through generations.”

            According to records filed in the case, JAMES admitted that between April 2010 and April 2012 he sexually assaulted two young children who were in his care.  The children, presently ages 7 and 8, disclosed the abuse and the Lummi Police Department and the FBI investigated.

            Speaking to the court JAMES said he hopes to use his time behind bars to get help to understand why he molested the children.  JAMES claims that he too was molested as a child.

            Judge Lasnik urged JAMES’ family to take a leadership role in bringing sexual abuse out of the shadows in their community saying it was “hurting generation after generation of children.  Step up and stop this cycle of sexual abuse.”

            The case was prosecuted by Assistant United States Attorney Nicholas Brown.

            The former controller of a hotel group based in Tacoma, Washington was sentenced today to 24 months in prison and three years of supervised release for six counts of wire fraud, announced U.S. Attorney Jenny A. Durkan.  From 2007 to 2011, HUGO LINGAT CAINGAT, JR., 59, of Bonney Lake, Washington, was employed as a controller at Aspen Lodging Group, LLC (ALG).  The company owns several hotels in the United States including Hotel Murano in Tacoma.  From March 2010 to December 2011, CAINGAT diverted more than $700,000 in income from the hotel group into a dormant bank account.  Them he used that account to pay his bills, including significant gambling bills.  At sentencing U.S. District Judge Benjamin H. Settle said, “the defendant was a man of skill and aptitude who gained the trust of his employer and then abused it.”

            According to records filed in the case, CAINGAT forged documents and signatures to execute his scheme.  He created duplicate invoices for inter-company payments totaling nearly $600,000, and eventually routed these payments into the dormant account.  From the dormant accounts the money went to pay his credit card bills.  CAINGAT was fired by the hotel group in December 2011 when the theft was discovered.  The case was ultimately referred to the FBI.  When agents interviewed CAINGAT at his home in May 2012, he indicated he wished to provide information on the scheme.  Instead, CAINGAT purchased a one way ticket to the Philippines.  CAINGAT was indicted by the grand jury in July 2012, and the process of extraditing CAINGAT from the Philippines had begun when he voluntarily returned to Washington State.  CAINGAT pleaded guilty in October 2012.

            In asking for a sentence of nearly three years, prosecutors noted that the scheme was sophisticated and lasted nearly two years.  “The defendant committed his embezzlement through multiple sub-schemes, which involved pre-configuring of a dormant account to pay his bills, transferring funds through multiple accounts, creating false inter-company payments, and forging another employee’s signature,” prosecutors wrote in their sentencing memo.

            CAINGAT was ordered to pay $750,550 in restitution.  That amount includes $50,000 the company spent investigating the embezzlement.

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

U.S. Attorney Jenny A. Durkan today issued her 2012 Annual Report on the activities and priorities of the U.S. Attorney’s Office for the Western District of Washington.

“Every person in our office is honored to serve the people of this region.  We work hard to advance the safety of our nation, the security of our communities and the rights of victims of crime,” said U.S. Attorney Durkan. "In 2012, we made significant progress in many of our priority areas: terrorism, violent crime, cybercrime and protecting vulnerable communities from both financial crime and physical exploitation.”

The U.S. Attorney’s Office also focused on stripping criminals of their profits, returning monies to taxpayers and victims.  In 2012, the office recovered more than $40 million to compensate the victims of crime and to support the federal treasury and law enforcement activities.   The office has discharged its mission in a manner that is fiscally responsible and adds value to the federal treasury. In 2012, the office saw significant collections of restitution for the victims of convicted predator Weldon Marc Gilbert, and we forfeited to the U.S. Treasury the proceeds of crime, including more than $5 million from an illegal internet gambling business.

The diverse Western District of Washington presents many challenges.  Western Washington has urban areas and vast open lands, National Parks and National Forests.  It is home to the largest military base west of the Rockies (Joint Base Lewis-McChord).  The district shares a water and land border with Canada and has two of the ten busiest sea ports in the United States.

“Part of our work is to reach out to all communities and residents as we work to build a safe and secure America.  I want to express my thanks to all who help keep Western Washington a safe and welcoming place to live, work and raise our children.  My colleagues and I look forward to continuing to meet these challenges in 2013,” said U.S. Attorney Durkan.

You can read the full report by following this link.

            A convicted felon who trafficked in multiple high powered firearms, was sentenced today in U.S. District Court in Seattle to 66 months in prison and three years of supervised release for Conspiracy to Unlawfully Deal in Firearms and being a felon in possession of a firearm, announced U.S. Attorney Jenny A. Durkan.  JOSHUA DAWSON, 21, is one of six Seattle area men, indicted in April 2012 following a firearms trafficking investigation.  The men sold guns to a person working with law enforcement in the Renton, Washington area.  At sentencing U.S. District Judge Richard A. Jones said, “You were directly involved in providing firearms that would hit the streets without any concern of where they would go or how they would be used.”

            “Getting firearms out of the hands of felons and off our streets is one of our top priorities,” said U.S. Attorney Jenny A. Durkan.  “I commend the creative and coordinated work by local and federal law enforcement to infiltrate this criminal gang that was trafficking the high powered weapons that fuel violence in our community.”

DAWSON was indicted following an undercover investigation involving the Seattle Police Department Gang Unit, the FBI Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).  The firearms that were sold as part of the conspiracy were very dangerous weapons.  They included handguns, shotguns, semi-automatic rifles with large capacity magazines and scopes, stolen firearms, and weapons tied to crimes of violence.  When he pleaded guilty in June 2012, DAWSON admitted selling eight guns between January and March 2012: a Smith and Wesson .38 caliber revolver; a Mac 11 9mm pistol; an SKS 7.62 assault rifle; a Romarm/Cugir, 7.62 x 39mm caliber rifle; a DPMS, .223/5.56mm caliber rifle; an Olympic Arms, multi rifle with a silencer; a Weatherby, 7mm caliber rifle; and a Maadi, 7.62 x 39mm caliber rifle.  In all in this operation, 25 guns were taken off the street, many of which were previously reported stolen.  DAWSON has prior convictions for robbery and theft.  When officers went to arrest him in April 2012, DAWSON fled in his car, crashing into multiple other vehicles.  When he was taken into custody, officers located a loaded Kel-Tec model PF-9, 9mm pistol in the glove compartment of his car.

“I want to congratulate the dedicated agents, officers and detectives who worked this investigation,” said Kelvin Crenshaw, Special Agent in Charge of the ATF Seattle Field Division.  “Thanks to their efforts a convicted felon who chose to peddle high powered weapons on the streets of Seattle is now behind bars and no longer a threat.  ATF is dedicated and resolute in the fight against violent crime and we will never rest in the pursuit of those who would threaten the safety and security of our communities.” 

“As we did in this case, the FBI will continue to work hand-in-hand with our partners, sharing resources to target those who would facilitate putting dangerous weapons in the hands of criminals,” said FBI Assistant Special Agent in Charge Steven M. Dean.  “This partnership is committed to reducing the drug- and gang-related violence in our communities.” 

Prosecutors wrote in their sentencing memo that “…those who possess and sell firearms illegally bear some of the responsibility for the resulting violence that occurs.  The illegal sale of firearms only serves to flood the area with weapons that are difficult, if not impossible, to accurately track.  Given the dangerousness that these weapons present, and the very real possibility that weapons sold illegally could subsequently be used in other crimes, trafficking in firearms presents unique risks.”

Five others were prosecuted as part of the case: Andre M. Conerly, 26, was sentenced to 96 months in prison; Daunte R. Williams, 29, was sentenced to 78 months in prison; James L. Henderson, 22, was sentenced to five years in prison; Alexander J. Olivio-Altheimer, 21, was sentenced to four years in prison; and Djuan O. Gardner, 28, was sentenced to 70 months in prison.

The case was jointly investigated by the FBI Seattle Safe Streets Task Force, the Seattle Police Department Gang Unit, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).  The case was prosecuted by Assistant United States Attorney Nicholas Brown.

            A Dutch citizen who was arrested and extradited from Romania was sentenced today to 12 years in prison for a computer hacking and credit card fraud scheme that victimized people around the world, announced U.S. Attorney Jenny A. Durkan.  DAVID BENJAMIN SCHROOTEN, 22, also known in the hacking world as ‘Fortezza’ pleaded guilty in November 2012 to Conspiracy to Commit Access Device Fraud and Bank Fraud, Access Device Fraud, Bank Fraud, Intentional Damage to a Protected Computer, and Aggravated Identity Theft.  At sentencing U.S. District Judge Ricardo S. Martinez asked him, “I don’t think you would ever consider walking into someone’s home, pulling out a gun and robbing them… Did it ever occur to you that you were doing that to all your victims?”

“By trafficking over 100,000 credit card numbers stolen by hackers, this defendant helped create the profitable black market for stolen data,” said U.S. Attorney Jenny A. Durkan. “We will target every link of the cyber crook business model.  The hacker who stole the numbers was sentenced to seven years in prison, the broker who sold them online was sentenced today to 12 years in prison, and next before the court will be the leader of a criminal gang that was using these credit card numbers for fraud.”

            SCHROOTEN and co-conspirator Christopher A. Schroebel, 21, of Keedysville, Maryland marketed stolen credit card numbers via internet sites.  Schroebel hacked into the computers of two Seattle area businesses and stole credit card information.  According to the records in the case, SCHROEBEL hacked into the point of sale computer in a restaurant in the Magnolia neighborhood of Seattle, and a restaurant supply store in Shoreline, Washington.  Schroebel inserted malicious code onto the victim’s computers that copied the personal information of the credit card transactions at the point of sale terminals.  Schroebel conspired and worked with SCHROOTEN to build “carding websites,” in order to make the stolen credit card numbers available to criminals for fraud.  Investigators estimate that tens of thousands of people were victimized by having their stolen credit card numbers trafficked by SCHROOTEN – with a damage figure of more than $63 million.

Charles Tony Williamson, 33, of Torrance, California, is charged with 22 counts of various felony offenses including Conspiracy to Access Protected Computers to Further Fraud, Access Device Fraud; Bank Fraud; and Aggravated Identity Theft for his role purchasing and using the stolen credit card numbers.  Williamson is scheduled for trial this spring.

“David Benjamin Schrooten's on-line criminal activities victimized thousands of U.S. citizens, and defrauded U.S. banking intuitions out of millions of dollars.  Mr. Schrooten’s arrest and conviction demonstrates the Secret Service’s ability to pursue criminal actors beyond the borders of the United States and should serve notice to other online criminals,” said Jim Helminski, Special Agent in Charge of the U.S. Secret Service in Seattle.  “I would like to commend the team of Seattle Electronic Crime Task Force Investigators, the many law enforcement organizations both domestic and international, and the prosecutors from the United States Attorney’s Office, Western District of Washington who worked many hours to investigate, and ensure extradition back to the United States to bring David Schrooten to justice

Credit card fraud costs financial institutions $40 billion annually. In the Western District of Washington more than 180,000 stolen credit card numbers have been identified in recent cyber cases.

The case is being investigated by the U.S. Secret Service Electronic Crimes Task Force and Seattle Police Department as part of the Task Force.  The U.S. Marshals Service assisted with extraditing SCHROOTEN from Romania.  The case is being prosecuted by Assistant United States Attorney Kathryn Warma.  Substantial assistance was provided by the Department of Justice Criminal Division Office of International Affairs.

A former Senior Vice President and loan officer at Pierce Commercial Bank was sentenced today in U.S. District Court in Tacoma to 10 years in prison and five years of supervised release for a mortgage fraud scheme that resulted in the collapse of the bank, announced U.S. Attorney Jenny A. Durkan.  SHAWN L. PORTMANN, pleaded guilty September 18, 2012, to Conspiracy to Make False Statements in Loan Applications and to Make False Statements to the Department of Housing and Urban Development (HUD) and one count of Making a False Statement in Loan Applications.  At sentencing U. S. District Judge Benjamin H. Settle called it a fraud on multiple layers that “escaped detection because it involved people at every level participating in the fraud.”

“Shawn Portmann’s greed destroyed dreams, ruined careers and defrauded millions from taxpayers,” said U.S. Attorney Jenny A. Durkan.  “He now will face the consequences of the damage he did to so many.  The depth of his fraud helped bring down a bank, and haunted innocent homeowners whose communities were degraded with vacant, foreclosed homes and a precipitous decline in property values.”

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

“Portmann’s greed resulted in the loss of the entire $6.8 million in TARP funds invested in Pierce Commercial Bank, directly contributed to the bank’s failure, and caused additional, significant financial losses for other TARP banks,” said Christy Romero, Special Inspector General for TARP (SIGTARP).  “Most importantly, the consequences of Portmann’s mortgage fraud scheme will have a lasting impact on the community, which relies on local banks such as Pierce Commercial to serve as the mainstay for lending to its businesses and citizens.  I want to praise the work of U.S. Attorney Jenny Durkan and our other law enforcement partners for their commitment to fighting fraud related to TARP.”

Although this sentencing does not erase the financial and emotional harm caused by Mr. Portmann to numerous victims—spanning homeowners harmed by the artificially inflated housing market to innocent bank employees who lost their jobs—I hope that they receive a measure of relief knowing that this unscrupulous predator is facing justice for his actions,” said Laura M. Laughlin, Special Agent-in-Charge of the FBI Seattle office. “The FBI and its partners remain committed to investigating criminal activity underlying the broader financial crisis.  This case sends a message to all those who exploit others for personal gain: fraud in the mortgage industry is unacceptable and will not be tolerated.”

“Mortgage fraud has done a lot of damage to our communities and to our individual concept of the American Dream,” said Kenneth J. Hines, the Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “This sentencing is a reminder of the serious consequences of mortgage fraud, and of the relentless pursuit that the IRS and our law-enforcement partners are making to hold accountable people whose greed got the better of them.”

“The sentence handed down today is proof positive to anyone who uses the US Mail to commit mortgage fraud:  If you are a purveyor of fraudulent mortgage schemes and you use the US Mail, you will be caught and you will serve time in federal prison,” said Bradley Kleinknecht, Inspector in Charge US Postal Inspection Service.

Seven other defendants in this case have already been sentenced to prison terms for their roles in the fraud.

This case was brought as part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations.  Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.  For more information on the task force, visit www.stopfraud.gov.

The case was investigated by the FBI, the HUD Office of Inspector General (HUD-OIG), Internal Revenue Service Office of Criminal Investigation (IRS-CI), the Washington State Department of Financial Institutions and the United States Postal Inspection Service.  The case was prosecuted by Assistant United States Attorneys Brian Werner and Arlen Storm.

            A repeat offender who was arrested dealing crack cocaine in downtown Seattle was sentenced today in U.S. District Court to 10 years in prison and three years of supervised release for possession of crack cocaine with intent to distribute, announced U.S. Attorney Jenny A. Durkan.  DEVIN JENNINGS, 35, had been out of federal prison for only five months when he was arrested for dealing crack cocaine in the 1500 block of Second Avenue in downtown Seattle.  Chief U.S. District Judge Marsha J. Pechman imposed two years of the sentence for supervised release violations on the sentence imposed for his 2004 conviction.   In that case JENNINGS was sentenced to 100 months in prison for being a felon in possession of a firearm and possession of a firearm with an obliterated serial number.  “Your addictions are controlling your decision making,” said Judge Pechman.  “If drugs give you a hair trigger temper… you need to leave them behind.”

            According to records filed in the case, Seattle Police began surveillance of the area around Second and Pike in downtown Seattle because of persistent street drug dealing.  Officers observed JENNINGS selling what appeared to be crack cocaine to multiple customers on August 16, 2012.  JENNINGS was arrested and resisted officers when they attempted to search him.  JENNINGS was told he would be more thoroughly searched at the police station and was placed in the back of an empty patrol car.  En route to the precinct, JENNINGS began kicking violently at the rear passenger door, bending it from its frame.  JENNINGS threatened the officers as they removed him from the car.  On the back seat and floorboards of the car officers discovered crack cocaine that JENNINGS had attempted to discard through the damaged car door.  JENNINGS pleaded guilty in October 2012.

            In asking that JENNINGS be sentenced to ten years in prison, prosecutors wrote to the court, that JENNINGS “has now been convicted of ten felony offenses and nearly twice as many non-felony offenses.  In light of Jennings’ extremely long, and often times violent, criminal history, the United States believes that a substantial term of imprisonment is appropriate.  We also believe that the seriousness of the offense also warrants a lengthy sentence.  While the offense did not involve a large quantity of drugs, the amount of crack cocaine was substantial.  Moreover, the fact that he returned to dealing drugs so quickly after his release from prison is concerning, as was his post-arrest behavior (i.e., damaging the patrol car, threatening the arresting officers, etc.).  Unfortunately, Jennings continues to be a person the community needs to be protected from.”

            The case was investigated by the Seattle Police Department and was prosecuted by Assistant United States Attorney Andrew Colasurdo.

WASHINGTON – Joseph McDaniels, 43, of Shoreline, Wash., was sentenced today in U.S. District Court for interstate transportation of a 22 year old woman for purposes of prostitution.  Judge James L. Robart sentenced McDaniels to 10 years in prison followed by three years of supervised release.   Requirements during the supervised release include registration under the Sex Offender Registration and Notification Act, sexual deviancy evaluation and treatment, restrictions and monitoring of his use of computers and restrictions on contact with minors.
           
On Sept. 28, 2012 McDaniels pleaded guilty to interstate transportation for prostitution.  The indictment alleged that between August 2011 and April 2012, McDaniels compelled the woman to engage in commercial sex acts through force, fraud and coercion and that McDaniels transported her between Washington state and Oregon for purposes of prostitution.

According to court filings, McDaniels is a registered sex offender and had completed serving a 15-year sentence for a series of robberies in the mid-1990’s when he was released from state prison in early 2011.  Only a few months later, McDaniels met and recruited the woman, preying upon her youth and drug addiction to coerce her into engaging in acts of prostitution.

According to court documents, McDaniels advertised the woman on Backpage.com, transported her to prostitution dates, took all of her money and supplied her with drugs.  He threatened to harm her and her family, and in December 2011, McDaniels was arrested and later convicted in state court for assaulting the woman.  He was arrested again in May 2012 after he had taken her to Portland, Ore., for prostitution, and then attempted to have the woman withdraw a state-issued no contact order against him. 
           
“The exploitation and sexual abuse of a vulnerable young woman is intolerable and the Justice Department will continue to prosecute and seek justice for victims of such abhorrent crimes,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.

“We will continue our battle against human trafficking in western Washington,” said U.S. Attorney for the District of Washington Jenny A. Durkan.  “We are fortunate to have committed local, state and federal officers working together to find and stop sexual predators like the defendant. Today the court ensured that other young women will not be exploited by him.”
           
This case was investigated by the Kent Police Department, Auburn Police Department, and the FBI’s Innocence Lost Task Force, and prosecuted by Assistant U.S. Attorney Ye-Ting Woo and Trial Attorney Daniel H. Weiss of the Civil Rights Division’s Human Trafficking Prosecution Unit.

The FBI’s Innocence Lost Task Force provides a rapid and effective investigative response to reported federal crimes involving the victimization of children. The task force strives to reduce the vulnerability of children to acts of sexual exploitation and abuse and strengthens the capabilities of federal, state and local law enforcement through training programs and investigative assistance.

U.S. Attorney Jenny A. Durkan reported to the White Center Community today about law enforcement efforts to enhance the safety of the community. In the fall of 2011, White Center was the focus of a coordinated 'Hot Spot' initiative, designed to bring concerted law enforcement and community resources together in one geographic area.

The multi-agency, federal and local law enforcement operation, called “Center of Attention,” that ended in late October 2011, focused on violent offenders who used White Center to engage in criminal activity.  The King County Prosecutor’s Office and the U.S. Attorney’s Office have been working hard with our law enforcement partners to bring those offenders to justice.

Among the 25 federal defendants, nearly all have now been convicted and sentenced.  Two dozen have pleaded guilty or were convicted at trial, including the successful prosecution of an armed career criminal just before the end of the year.  That defendant, Michael Gradney, faces a 15-year mandatory minimum sentence.

To date, 21 defendants have been sentenced to prison, including significant prison time for defendants selling large amounts of dangerous drugs and firearms.  In fact, the total amount of prison time that judges have imposed on the federal Center of Attention defendants is nearly 1400 months, or 115 years.

Here are two of the press releases announcing significant sentences:

http://www.justice.gov/archive/usao/waw/press/2012/November/rosas-martinez.html http://www.justice.gov/archive/usao/waw/press/2012/November/magna.html

Of the 26 state prosecutions, some have resulted in guilty findings while many are still pending.  State prosecutors are pursuing convictions and sentences in line with the goals of “Center of Attention.”

In addition to “Center of Attention” defendants, the owner of the former G.A.M.E. marijuana lounge pleaded guilty to a federal felony and was sentenced to six months of federal probation.  Federal probation is very rigorous, with close supervision by a federal probation officer and the possibility of prison time for up to three years if the defendant does not follow the probationary conditions. Judge Ricardo Martinez indicated he would be watching very closely to ensure the owner of G.A.M.E. did not violate any conditions of his probation.

And, just last week, as part of our ongoing enforcement efforts, prosecutors in our office convicted a man who committed an armed robbery of the Chase bank located at SW 100th Street and 16th Avenue.

Your can read the U.S. Attorney's Letter to the community here: white_center_ltr.pdf

            Two Southwest Washington men who trafficked more than three pounds of highly pure methamphetamine were each sentenced today to more than 10-years in prison, announced U.S. Attorney Jenny A. Durkan. STEVEN MCCRACKEN, 32, of Kelso, Washington and JESUS RAMIREZ-LUCIO, 33, of Washougal, Washington were each sentenced to 14 years in prison and five years of supervised release.  The men were convicted of conspiracy to distribute methamphetamine in October 2012, following a six day jury trial.  RAMIREZ-LUCIO was also convicted of distribution of methamphetamine, and MCCRACKEN was convicted of possession of methamphetamine with intent to distribute.  At sentencing U.S. District Judge Ronald B. Leighton said, “Methamphetamine destroys families. The community has a right to protect itself from those who would ply them with methamphetamine.”

According to records filed in the case and testimony at trial, a person working with police alerted members of the Clark Vancouver Regional Drug Task Force that MCCRACKEN and RAMIREZ-LUCIO were planning the drug deal.  The men met at a Kelso, Washington home on March 25, 2011, where MCCRACKEN paid RAMIREZ-LUCIO more than $34,000 for three pounds of methamphetamine.  After the drug deal, both men were followed by law enforcement as they left the house.  Police pulled MCCRACKEN over on I-5.  As the law enforcement officer approached the driver’s window, MCCRACKEN pulled out into traffic, leading police on a chase at speeds up to 90 MPH.  On the Route 432 bridge, MCCRACKEN pulled to the side of the road, left the car running and threw bags of methamphetamine into the Cowlitz River. MCCRACKEN was arrested, and other officers retrieved bags of meth floating in the river.  Some of the meth was damaged, but one of the bags was intact.  RAMIREZ-LUCIO was arrested as he traveled back to Vancouver with more than $34,000 in cash in a shopping bag in his car.  In a search of RAMIREZ-LUCIO’s home police recovered four firearms and a marijuana grow with more than 700 plants.

MCCRACKEN has been convicted three prior times in state court for distributing methamphetamine: Cowlitz County Superior Court, 1999; Clark County Superior Court 2002 and Josephine County Circuit Court (Oregon) 2006.

The case was investigated by the FBI’s Safe Streets Task Force, which includes officers from the FBI and the Vancouver Police Department, the Cowlitz-Wahkiakum Narcotics Task Force, which includes officers from the Kelso Police Department and the Cowlitz County Sheriff’s Office, among others, and the Clark Vancouver Regional Drug Task Force.

The case was prosecuted by Assistant United States Attorneys Brian Werner and Michael Lang.

            An Enumclaw financial advisor whose crimes were uncovered when he tried to collect a half million dollar death benefit on a client who was still living, was sentenced today to seven years in prison, three years of supervised release, and restitution in the amount of $5,705,023.24, announced U.S. Attorney Jenny A. Durkan.  AARON TRAVIS BEAIRD, 39, was arrested in July 2012, after he faked his suicide, traveled to Scotland for a week, and then returned to Sea-Tac airport where he was taken into federal custody for investigation of mail fraud and wire fraud.  BEAIRD pleaded guilty in August 2012.  At sentencing U.S. District Judge Ricardo S. Martinez said, “By stealing the money you took from the victims, you stole their hopes and dreams, but most importantly, you stole their trust.”

            “These crimes were a betrayal of trust,” said U.S. Attorney Durkan. “Mr. Beaird’s friends, relatives and members of his church thought he was safeguarding their families’ future. Instead, he used their money to live well, turning their dreams into nightmares.”

            According to records filed in the case, for about ten years BEAIRD held himself out as a financial advisor to friends and family and members of his church, the Church of Jesus Christ of Latter-Day Saints.  BEAIRD was trusted as a leader of the church.  But instead of investing conservatively in annuities and life insurance products, BEAIRD engaged in a scheme to defraud investors by falsely representing those annuity products and life insurance policies and in some cases appropriating annuity payments and policy premiums directly to his personal use.   BEAIRD created false account statements that he provided to his clients making them believe their funds were safely invested and would be available when they needed them.

  In the fall of 2011, BEAIRD took $500,000 from a client’s investment account without authorization, and used some of it to purchase a life insurance policy on the client.  In June 2012 BEAIRD filed to receive a death benefit on the policy even though the insured was still living.  The insurance company confronted BEAIRD and he disappeared from Enumclaw.  Shortly after his disappearance, his car was found near Deception Pass on Whidbey Island with a suicide note inside.  He had also mailed letters to several clients, confessing his fraud and advising them of his intent to take his own life.  Further investigation revealed BEAIRD had taken a taxi to Sea-Tac and flown to Scotland.  He returned a week later and was arrested.  The loss amount of his scheme is estimated at $5.7 million.

Victim statements in the case describe how BEAIRD’s theft has robbed people of not only their life’s savings, but their trust in others.  Some write about having to live in a travel trailer because they have no funds to finish building their home or have no money for their retirement or children’s education. “The sense of betrayal and distrust fostered by Mr. Beaird’s actions cannot be ignored.  This pervasive reality is matched by the deep financial losses incurred with little regard for what those losses meant to the victims.  In most instances, each victim’s financial well-being has been irreparably damaged.  Life savings were wiped out.  For some, the hope of a secure retirement has been replaced with despair and uncertainty, with little time to replace stolen funds.  Taken together, the emotional and financial damages inflicted by Mr. Beaird through his fraudulent scheme are overwhelming,’ prosecutors wrote in their sentencing memo.

The case was investigated by the Federal Bureau of Investigation with assistance from the Washington State Office of the Insurance Commissioner and the City of Enumclaw Police Department.

The case was prosecuted by Assistant United States Attorney Jim Oesterle.

            The owner of a medical marijuana dispensary that billed itself as a ‘cooperative’ when it really was just a for profit drug dealing enterprise, was sentenced today to six years in prison and four years of supervised release for conspiracy to distribute marijuana and conspiracy to commit money laundering.  CRAIG DOUGLAS DIEFFENBACH, 61, an owner of Seattle Cannabis Cooperative with locations in the Rainier Valley and Greenwood, pleaded guilty in August 2012.  His co-defendant, and co-owner, Jing Jing Mo, 31, will be sentenced next month.  At today’s sentencing Chief U.S. District Judge Marsha J. Pechman said she rejected the suggestion that he did this to help people, rather she said he saw selling marijuana as a business opportunity.

            “We have made clear that truly sick people and their caregivers will not be targets of our enforcement efforts.  This defendant was neither,” said U.S. Attorney Jenny A. Durkan.  “A green cross in the front window does not grant a license to sell pounds of drugs out the back door.”

According to records filed in the case, DIEFFENBACH admits operating the marijuana stores for profit, selling pound quantities of marijuana to people who presented no medical authorization card.  In her plea agreement, Mo admitted offering to sell 25 pounds of marijuana for distribution across the country.  The couple also admitted laundering funds from the sale of marijuana to pay to modify homes for marijuana production.  The pair were tied in to other drug traffickers including one distributing substantial amounts of ecstacy.

            "Marijuana traffickers continue to have a stranglehold on this state,” said Drug Enforcement Administration Special Agent in Charge Matthew G. Barnes.  "DEA will continue to do what it can to loosen their grip.”

            The case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Vince Lombardi.

            A teacher at Tenino Elementary School is in custody today charged with possession of child pornography, announced U.S. Attorney Jenny A. Durkan.  JAMES DONALD MOBLEY, 46, was arrested yesterday on a criminal complaint charging him with receipt and possession of child pornography.  MOBLEY is also active as a volunteer in Boy Scouts and as a private tutor.  The U.S. Postal Inspection Service and Tenino Police Department are investigating the case. Parents who are concerned about contact their children may have had with MOBLEY are asked to call Tenino Police at 360-264-2626.

            According to records filed in the case, the U.S. Postal Inspection Service has been investigating an international company that distributed child pornography through the mails and via download to personal computers.  In May 2011, foreign law enforcement executed a search of the business and seized hundreds of child pornography DVDs and business records.  An analysis of those records revealed that on multiple occasions between February 2009 and January 2011, MOBLEY had purchased suspected child pornography from the company.  In a search of MOBLEY’s home, law enforcement seized a computer hard drive and additional DVDs of child pornography.

            MOBLEY remains detained at the Federal Detention Center at SeaTac, Washington pending a detention hearing on Tuesday January 22, 2013.  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 Tenino Police Department and the U.S. Postal Inspection Service (USPIS).

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

            A Des Moines, Washington, man was sentenced this afternoon in U.S. District Court in Seattle to ten years in prison for possession of child pornography, announced U.S. Attorney Jenny A. Durkan.  GREGORY SEAN O’NEALL, 51, a convicted sex offender originally from Houston, Texas, was arrested in June 2012.  He pleaded guilty in September 2012.  Chief U.S. District Judge Marsha J. Pechman also sentenced O’NEALL to lifetime supervised release including sex offender treatment and the use of special software to monitor his computer.

            According to records in the case, O’NEALL came to the attention of the Internet Crimes Against Children Task Force because of his postings on an online file sharing site.  A Homeland Security Investigation agent working undercover on the site observed sexually explicit images of children being distributed from the internet protocol address at O’NEALL’s residence.  The agent engaged O’NEALL in an online chat.  O’NEALL discussed various photographs.  Further investigation revealed that O’NEALL had posted other pictures in albums on a web site.  More than 100 of the photos had been surreptitiously taken of young girls shopping with their families at retail stores.  The ‘up-skirt’ photos focused on the underwear area of the young girls, but were not child pornography.  Prior to his arrest O’NEALL worked for a contractor providing food samples at a Costco store in Federal Way, Washington.  Some of the pictures appear to have been taken at that store.

            O’NEALL has a prior sex offense conviction for molesting a 6-year-old girl who was left in his care.  On December 2, 1991, he was convicted in Fort Worth, Texas, for Indecency with a Child (Contact), and sentenced to 7 years of probation.

            In asking for a 135 month sentence prosecutors wrote to the court, “A substantial period of imprisonment is the only effective means to protect our community from the defendant, and it is also a fitting and just sanction for the harm he has caused.”

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

            The case was investigated by ICE’s Homeland Security Investigations (HSI) as part of the Internet Crimes Against Children Task Force (ICAC).

            The case was prosecuted by Assistant United States Attorney Jerrod Patterson, who coordinates Project Safe Childhood for the U.S. Attorney’s Office.

            A Lynnwood, Washington electronics company, its owner and two company executives, and a Chinese company and its representative were indicted today in U.S. District Court in Seattle for conspiracy to traffic in counterfeit goods, announced U.S. Attorney Jenny A. Durkan.  According to the indictment, CONNECTZONE.COM LLC had websites that advertised and sold computer networking products including products bearing trademarks owned by U.S. companies Cisco, but the investigation revealed the company obtained its products from multiple foreign suppliers of counterfeit goods including a Chinese firm, XIEWEI ELECTRONICS.

            “Protecting the intellectual property of American companies is critical to job growth and economic recovery – especially in our high tech industries,” said U.S. Attorney Durkan.  “I commend the dedicated investigators who uncovered this scheme.”

            Three of the individuals charged will appear in court tomorrow, January 18, 2013.  The CONNECTZONE.COM LLC defendants include:  DANIEL OBERHOLTZER, 50, of Lynnwood, the company owner; WARREN LANCE WILDER, 46, of Auburn, the sales manager; and EDWARD VALES, 31, of Seattle, the production manager.  SHENZHEN XIEWEI ELECTRONIC LTD, headquartered in Shanghai, China and its representative MAO MANG, aka “BOB MAO” are also indicted.

            The indictment alleges that as early as 1997, while the company was operating as Electro Products, Incorporated, it was distributing counterfeit equipment manufactured in China.  The indictment alleges that DANIEL OBERHOLTZER, LANCE WILDER and EDWARD VALES would advise BOB MAO and XIEWEI ELECTRONICS and other Chinese companies regarding how to manufacture products that would look like genuine Cisco trademarked goods.  Some of the goods would be labeled “samples” when shipped to the U.S. to try to deceive U.S. Customs officials.  The U.S. based conspirators falsely advertised the counterfeit goods as genuine and offered it for sale at a much lower price than genuine Cisco equipment.  The indictment describes the various emails sent between the conspirators as they ran their scheme.  In addition to the conspiracy count, the indictment also charges two counts of mail fraud and four counts of trafficking in counterfeit goods.

“Counterfeiting high dollar goods can be very lucrative for enterprising criminals,” said Brad Bench, special agent in charge of HSI Seattle. “Their illicit activities ultimately come at the expense of trademark owners and consumers.  They don’t contribute to research and development and the knockoffs they sell generally don’t match the quality and safety of genuine items.”

            Conspiracy to traffic in counterfeit goods is punishable by up to ten years in prison and a $2 million fine; Mail fraud is punishable by up to 20 years in prison and trafficking in counterfeit goods is punishable by up to 10 years in prison.  The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

            This case is being investigated by the Seattle-Tacoma Border Enforcement Security Task Force (BEST) led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) with the Seattle Police Department, the Port of Seattle Police Department and assistance from U.S. Customs and Border Protection Office of Field Operations (CBP OFO). BEST Seattle is comprised of full time members from HSI; CBP OFO; the U.S. Secret Service; the Port of Seattle Police Department; the U.S. Coast Guard Investigative Service; and the FBI. The BEST 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 Norman Barbosa.

            A Southern California rap artist who performs under the name “Guerilla Black,” was arrested this morning following allegations he committed new financial frauds while he was on pretrial release, announced U.S. Attorney Jenny A. Durkan.  CHARLES TONY WILLIAMSON, 33, of Torrance, California, was taken into custody this morning following a lengthy investigation by the Manhattan Beach Police Department and the U.S. Secret Service (USSS) Electronic Crimes Task force in Seattle and USSS Los Angeles Fraud Task Force.  On June 20, 2012, WILLIAMSON was charged with 22 counts of various felony offenses including Conspiracy to Access Protected Computers to Further Fraud, to Commit Access Device Fraud, and to Commit Bank Fraud; Accessing a Protected Computer without Authorization to Further Fraud; Access Device Fraud; Bank Fraud; and Aggravated Identity Theft.  The new filing alleges WILLIAMSON continued to use illegally obtained credit card numbers for fraud, even after his indictment in the Western District of Washington.

            WILLIAMSON is scheduled to appear in U.S. District Court in the Central District of California today.

            According to records filed in the case, Manhattan Beach Police became aware of WILLIAMSON’s ongoing frauds in mid-November 2012.  Their investigation revealed that WILLIAMSON was using different ‘runners’ in the Los Angeles area to use counterfeit credit cards to purchase gift cards at a variety of stores.  The runners kept some of the gift cards but allegedly returned the bulk of the ill-gotten gain to WILLIAMSON.  Working with the U.S. Secret Service Electronic Crimes Task Force in Seattle and Los Angeles, investigators were able to trace the numbers on some of the seized counterfeit cards, discovering that many of the numbers were issued by foreign banks:  Corner Banca, (Switzerland); Guaranty Trust Bank (Nigeria); National Westminster Bank (England); and Poste Italiante (Italy).  Because the banks are overseas, it can take longer for the fraud to be detected and the card numbers cancelled.  Evidence uncovered in the case revealed WILLIAMSON was purchasing the credit card data from various “carding” sites operated by criminals in Eastern Europe.

            WILLIAMSON is already indicted for a scheme where he purchased that same type of information from two co-conspirators who have already pleaded guilty in U.S. District Court in the Western District of Washington.  David Benjamin Schrooten, 21, a Dutch citizen arrested in Romania, where he operated a carding website, is scheduled for sentencing next month.  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.

The case is being investigated by the Manhattan Beach Police Department, the U.S. Secret Service Electronic Crimes Task Forces in Seattle and  the U.S. Secret Service Los Angeles Fraud Task Force (LAFTF).  The Seattle Police Department is a key part of the Seattle Task Force. The case is being prosecuted by Assistant United States Attorney Kathryn Warma.

            Three Pierce County women who played important roles in a mortgage fraud scheme that crippled now defunct Pierce Commercial Bank were sentenced yesterday in U.S. District Court in Tacoma, announced U.S. Attorney Jenny A. Durkan.  All three of the women worked for years with scheme leader Shawn Portmann, whose fraudulent loans resulted in losses of more than $10 million.  Portmann will be sentenced later this month.  U.S. District Judge Benjamin H. Settle will determine restitution later this year.

            Loan Underwriter JEANETTE R. SALSI, 55, of Bonney Lake, Washington was sentenced to seven months in prison, four months of home confinement and three years of supervised release for conspiracy.  In 2004, SALSI followed Portmann from a different mortgage lender to PC Bank Home Loans (a subsidiary of Pierce Commercial Bank.)  Portmann paid SALSI 60 percent more than she made at her prior employer and she became the primary underwriter of loans originated by Portmann.  SALSI approved fraudulently generated loan applications despite the fact that they were filled with fraudulent documents.  SALSI knew the files contained false statements and phony documents regarding the applicant’s employment, debts, current residence and plans to reside in the home.  SALSI’s sign-off meant the loans were approved and sold to other financial institutions and the FHA.  After Portmann was fired at PC Bank Home Loans, SALSI followed him to two other mortgage companies.

            Personal Assistant ALICE LORRAINE BARNEY, 54, of Graham, Washington was sentenced to two months in prison, four months of electronic home confinement, 100 hours of community service and three years of supervised release.  BARNEY was Portmann’s long-time assistant who created and inserted some of the false documents into loan files.  BARNEY participated in submitting at least 60 fraudulent loan files.  After Portmann was fired from PC Home Loans, BARNEY followed him to his three next employers.

            Pierce Commercial Vice President and Residential Lending Manager SONJA LIGHTFOOT, 53, of Tacoma, Washington was sentenced to one month in prison, four months of home confinement, 60 hours of community service and three years of supervised release for her role in the conspiracy.  LIGHTFOOT joined the bank in 2002, before Portmann began his scheme.  Between 2004 and 2009 it was LIGHTFOOT’s job to lock the loans and sell them on the secondary market to other larger banks.  LIGHTFOOT knew that some of the loans contained false statements from borrowers but sold them anyway.  When the fraud was discovered the loans reverted back to Pierce Commercial Bank.  The risk that additional loans would revert back to the bank ultimately forced the closure of the bank.

            “Mortgage fraud can turn the American Dream of homeownership into a nightmare for our communities. Law enforcement will not sit idly by when greed causes professionals to abandon their integrity and become fraudsters,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest.

From 2004 to 2008, Shawn Portmann closed almost $1 billion in loans and he earned over $1.7 million per year.  A review of a sample of conventional and FHA loans revealed that Portmann and his staff closed over 300 loans with false and fraudulent information.  More than half of these loans have defaulted or otherwise caused loss to Pierce Commercial Bank, secondary investors, and/or the FHA, resulting in an estimated loss of $10 million.

Shawn Portmann is scheduled for sentencing January 28, 2013.  At that time Judge Benjamin H. Settle will set a restitution amount, a share of which will be owed by all the defendants in the conspiracy.

The case was investigated by the FBI, the HUD Office of Inspector General (HUD-OIG), Internal Revenue Service Office of Criminal Investigation (IRS-CI) and the United States Postal Inspection Service.  The case is being prosecuted by Assistant United States Attorneys Brian Werner and Arlen Storm.

            A 22-year-old Des Moines, Washington man will spend 32 years in prison for the January 2012 beating of a prison guard, and for the forced labor of two juveniles in the sex trades, announced U.S. Attorney Jenny A. Durkan.  SABIR SHABAZZ was in federal custody for sex trafficking two 13-year-old girls, when on January 3, 2012 he and another inmate assaulted a guard at the Federal Detention Center at SeaTac.  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 sentencing U.S. District Judge James L. Robart said the attack was carefully planned… “the blows were done to injure.“

            “This brutal assault on a prison guard rightfully earned this defendant a lengthy term behind bars,” said U.S. Attorney Jenny A. Durkan.  “He preyed on vulnerable 13-year-old girls while on the streets and viciously attacked one of the people we trust to keep our prisons and communities safe and secure.  This conduct will not be tolerated.”

            According to records filed in the case, in September 2010, SHABAZZ was arrested in connection with the sex trafficking of two 13-year-old girls.  SHABAZZ posted ads featuring the girls on backpage.com and with a co-conspirator took the earnings the young girls made in the sex trades.  SHABAZZ was being held on the sex trafficking charges when he assaulted the guard at the federal detention center.  The guard suffered significant head wounds, which were nearly fatal.  He has required surgery and significant rehabilitation. He likely will never be able to return to work as a prison guard.

            In their sentencing memo prosecutors wrote, “It is hard to imagine a worse set of offenses - an assault calculated at killing a defenseless jail guard and involvement in the commercial sexual exploitation of two 13 year old girls…. Both girls were runaways and looking for shelter.  Unfortunately, they sought help from two people, including SHABAZZ, who viewed the two girls as tools to make money without regard for their well being.”

            The Tacoma Police Department and the FBI’s Innocence Lost Task Force investigated the sex trafficking case; the FBI and Federal Bureau of Prisons (BOP) and the Washington State Patrol Crime Scene Response Team (CSRT) investigated the prison assault.  The cases against SHABAZZ are being prosecuted by Assistant United States Attorneys Bruce Miyake and Mike Lang.

            An enrolled member of the Tulalip Tribes was charged today with second degree murder and two counts of criminal mistreatment related to the October, 2012 death of her young daughter and the neglect of her second daughter, announced U.S. Attorney Jenny A. Durkan.  CHRISTINA D. CARLSON will make her initial appearance in U.S. District Court in Seattle at 2:30 today.

            CARLSON was transferred to federal custody this morning and the criminal complaint was unsealed.  The complaint describes how on October 8, 2012, emergency crews were called to an address on Marine Drive NE on the Tulalip Tribal Reservation where CARLSON was performing CPR on her 19-month-old daughter who was unresponsive on a blanket on the ground.  The child was unconscious, not breathing and covered in urine and feces.  A second child, a 33-month old girl, was found strapped in her car seat in a nearby vehicle.  The child was pale, unresponsive and covered in urine and feces.  The girl was transported to the hospital and later recovered.  The 19-month old child died and the Snohomish County Medical examiner classified the manner of death as homicide by parental neglect.  According to the report the child was malnourished and dehydrated, weighing only 19 pounds.  The child’s skin in the diaper area was excoriated and infested with maggots.  Her hair was infested with lice.

            The investigation revealed that CARLSON had been living in the car with the girls on the property since mid-September.  On October 8, 2012 CARLSON had left the girls in the car while she went to use a phone at the residence on the property.  CARLSON was away from the car for more than an hour by some estimates.  About 20 minutes after the neighbors told her to go back to the car and her children, CARLSON returned asking them to call 9-1-1 because the youngest child was unresponsive.

            Second Degree Murder is punishable by up to life in prison.  Criminal mistreatment is punishable by up to ten years in prison.  The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

            The case is being investigated by the Tulalip Tribal Police and the FBI.

Two Lummi Nation members who fought with a third Tribal member, with one of them stabbing him to death, were sentenced today in U.S. District Court in Seattle to prison terms for involuntary manslaughter, announced U.S. Attorney Jenny A. Durkan.  JOHNATHAN CASEY PHAIR, 25, was sentenced to five years in prison and three years of supervised release, and DEZI-REY THOMAS LOUIE, 22, was sentenced to four years in prison and three years of supervised release.  The two pleaded guilty in September 2012 to the December 17, 2011, stabbing death of Lamar Felipe James at a home on Lummi Tribal land.  At today’s sentencing U.S. District Judge Richard A. Jones said, “This was a brutal and devastating crime.  And what caused both of you to be involved? Drugs.”

According to the plea agreements, LOUIE and PHAIR went to the home on Lummi Tribal land to purchase drugs.  LOUIE brought some electronics to the house to sell or exchange for drugs.  LOUIE met with James in a back room of the home.  The two men got into a physical fight.  PHAIR rushed into the room with a butcher knife and stabbed James multiple times.  One of the wounds severed an artery.  PHAIR and LOUIE ignored James’ serious wounds and failed to call for help.  Instead they fled the home and tried to conceal their guilt by burning their clothes.  PHAIR was arrested three days after the attack.  LOUIE was arrested on December 24, 2011.

The case was investigated by the Lummi Police and the FBI.  The case was prosecuted by Assistant United States Attorneys Susan Roe and J. Tate London.  Ms. Roe and Mr. London serve as Tribal Liaisons for the United States Attorney’s Office.

            A Monroe, Washington man with a lengthy criminal history was sentenced today in U.S. District Court in Seattle to nine years in prison and five years of supervised release for conspiracy to distribute controlled substances and counterfeiting, announced U.S. Attorney Jenny A. Durkan.  CHRISTOPHER FRICK, 38, is one of 34 people indicted in a drug trafficking conspiracy involving significant quantities of heroin, methamphetamine, and firearms, including military-style assault rifles and sniper rifles which were bound for Mexico.  FRICK bought and sold meth from other co-conspirators and “washed” and passed counterfeit bills in the Monroe area.  U.S. District Judge Robert S. Lasnik imposed the sentence.

According to records filed in the case, the investigation of the Berrelleza-Verduzco Drug Trafficking Organization began in 2011, and FRICK was heard on the court authorized wiretap, arranging drug deals.  FRICK was ordering meth from the group, even as he was being fitted with a GPS ankle bracelet by an Everett bail bondsman.  FRICK was also under investigation by the U.S. Secret Service for “washing” a $5 bill and reprinting it as a $50 bill and using the bill at a Monroe convenience store.  On March 29, 2012, FRICK’s residence was searched as part of the takedown of the drug trafficking ring.  Law enforcement recovered both methamphetamine and counterfeit bills at his home.  In the course of the investigation law enforcement seized more than 20 pounds of heroin, more than 30 pounds of methamphetamine, more than $190,000 in cash and 31 firearms – including 10 assault style rifles.

FRICK has 31 prior convictions including burglary, escape, drug possession, various theft offenses, vehicle theft and forgery/fraud crimes.  FRICK has a prior federal felony conviction related to mail theft in 1996.  Following his federal sentence FRICK had additional arrests and convictions for methamphetamine possession and forgery.  Prosecutors requested that Judge Lasnik recommend drug treatment for FRICK while serving his prison sentence.

            FRICK is one of the first defendants in this case to plead guilty and be sentenced.  Others are scheduled for trial later this year.

This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigations, providing supplemental federal funding to the federal and state agencies involved.  The investigation was led jointly by the Drug Enforcement Administration, Homeland Security Investigation and Alcohol, Tobacco, Firearms & Explosives and the Snohomish Police Department.  Additional participating agencies: Lake Stevens Police Department, Eastside Narcotics Task Force, Snohomish Regional Drug Task Force, Skagit County Interlocal Drug Enforcement Unit, Everett Police Department, Monroe Police Department, Marysville Police Department, Seattle Police Department, Snohomish County Police Department, Washington State Patrol, U.S. Customs and Border Protection’s Offices of Field Operations and Border Patrol.

The case is being prosecuted by Assistant United States Attorneys Vince Lombardi, Nicholas Brown, and J. Tate London.

            An employee of the Social Security Office of Disability Adjudication and Review was arrested today on a criminal complaint charging him with accessing child pornography, announced U.S. Attorney Jenny A. Durkan.  THOMAS JOSEPH BARRETT, 49, of Lynnwood, Washington was taken into custody at his place of work.  Search warrants were executed at his home and workplace.  BARRETT is employed as Senior Case Technician.  SSA immediately placed BARRETT on indefinite leave.  BARRETT will make his initial appearance in U.S. District Court in Seattle at 2:30 today.

According to the complaint filed in the case, SSA obtained evidence of inappropriate internet use by BARRETT during work hours in November 2012 and immediately initiated an investigation.  The Social Security Administration Office of Inspector General (SSA-OIG) investigated BARRETT’s computer use, reviewing his internet history and examining his computer’s hard drive.  The analysis produced evidence that BARRETT had viewed child pornography using the computer.  In addition, some of the website analysis revealed that BARRETT had accessed news stories about the penalties for possessing and distributing child pornography.  According to SSA, SSA’s network and data were never compromised.

            Accessing child pornography with intent to view is punishable by up to ten years in prison and a $250,000 fine.

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

            The case is being investigated by the Social Security Administration Office of Inspector General, Homeland Security Investigation and the Washington State Patrol.

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

            A Puyallup man who owns a western wear store in Tacoma was sentenced yesterday to ten years in prison for conspiracy to distribute heroin, announced U.S. Attorney Jenny A. Durkan. MARCOS ARAUJO URRIETA, 47, was arrested on September 17, 2011, following an investigation of heroin trafficking in the Tacoma area.  ARAUJO URRIETA pleaded guilty in September 2012.  U.S. District Judge Benjamin H. Settle imposed the mandatory minimum ten year sentence in the case.

            According to records filed in the case, ARAUJO URRIETA owned Zapateria Tarascos located at 924 E. 72nd Street in Tacoma.  The store sold western clothing including boots and other merchandise.  Law enforcement served a search warrant at a stash house in Tacoma on September 17, 2011.  At the house was a co-conspirator who had been sent by ARAUJO URRIETA to pick up six to eight kilos of heroin for him to distribute from his store.  Law enforcement officers then searched the store and found about four pounds of heroin and $250,000 in cash.  ARAUJO URRIETA admitted the cash was from drug sales as well as the sales of some store merchandise.

            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 Lakewood Police Department as the lead agency, and supported by the Pierce County Sheriff’s Office, and other member agencies of the Tahoma Narcotic Enforcement Team (TNET).  The Drug Enforcement Administration (DEA) Tacoma Resident Office also participated in the investigation.

            The case was prosecuted by Assistant United States Attorneys Matthew Thomas, Marc Perez, and Jeffrey Backhus.