Western District of Washington

Tacoma – A Pierce County, Washington man was sentenced today in U.S. District Court in Tacoma to four years in prison for unlawful possession of a machinegun and unlawful possession of firearms related to his October 2023 arrest at a Fife, Washington auto glass business, announced U.S. Attorney Tessa M. Gorman. Brady Lee Eltz, 39, has been in custody since his federal arrest on October 31, 2023. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “This conduct is not only serious but alarming to read about and see. You possessed very dangerous weapons. It’s unclear what your motivation was.” 

According to records filed in the case, on October 4, 2023, Fife Police were dispatched to an auto-glass repair shop where workers at the shop reported seeing firearms in the trunk of a vehicle Eltz brought in for repair. Workers also reported seeing bullet holes in the vehicle.

After law enforcement took Eltz into custody, they checked the bathroom at the business because Eltz had gone into the bathroom when he saw police arrive.

In the cabinet below the sink police found two firearms – 9 mm handguns. One, a Glock, had an illegal switch known as an “auto-sear” installed. The switch allows the gun to be fired automatically, making it a machinegun. The Glock had been reported stolen. Both the Glock and the other handgun had rounds chambered.

Fife Police towed Eltz’s vehicle and applied for a warrant to search it. During the search of the vehicle’s trunk, they found three additional firearms – including a stolen rifle that had been modified to fire automatically, making it a machinegun. Police then discovered a bag with two improvised explosive devices. Pierce County Sheriff’s Office bomb technicians were called in to evaluate the devices and make them safe. One was an explosive simulator likely stolen from the U.S. Army. It can cause serious bodily injury if exploded in a confined space. The second explosive was a thick cardboard tube filled with a black flammable powder.

After the explosives were made safe, police continued their search of the trunk and found two additional rifles, hundreds of rounds of ammunition, latex face masks, body armor, gun sights, holsters, and other firearms accessories. Eltz also had GPS trackers, several knives, and a voice-changing device.

As prosecutors wrote in their sentencing memo, Eltz has a history of collecting similar armaments, false credentials, and disguises. “In 2007, he had a gun magazine loaded with 30 rounds of hollow point ammunition, a homemade silencer, ballistic helmet, handcuffs, emergency vehicle red light, sword, electronic stun gun, nun-chucks, knives, and a City of Milton “Director of Public Safety” badge. In 2012, Eltz had a stolen rifle with a silencer, three pistols, two other rifles, a US Army backpack with Army gear, a Department of Defense identification card (in another name), multiple rifle and pistol magazines (loaded), a law enforcement duty belt, a WSP “SWAT Sergeant” shirt, night vision goggles, large military-style knives, and more. At the time, he was driving an older style police vehicle that still had emergency lights.”

All the guns, ammunition and auto-sear devices in this case are being forfeited to the government.

Eltz is prohibited from possessing any firearms because of criminal convictions including a 2013 conviction in the Western District of Washington for unlawful possession of firearms. Eltz was sentenced to five years in prison for that crime.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) with assistance from the Fife Police Department and the Pierce County Sheriff’s Office. The Washington State Patrol assisted with locating and arresting Eltz on a federal warrant after he posted bail and left state custody.

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

Seattle – The Department of Justice has seized more than $1 million in proceeds from a massive fraud scheme targeting seniors and other vulnerable populations, announced U.S. Attorney Tessa M. Gorman. The U.S. Attorney’s Office for the Western District of Washington filed a Verified Civil Forfeiture Complaint seeking forfeiture of 149 lots of collectible stamps and other items seized from the Robert A. Siegel Auction Galleries Inc. of New York. An investigation revealed that the stamps were purchased with monies stolen from victims who were swindled by fraudsters impersonating government agents, regulators, or romantic interests. Once the stamps have been forfeited to the United States, they will be liquidated by the U.S. Marshals Service and the government will seek to return the funds to the victims.

“Too often when victims have been defrauded in these schemes, their money is gone for good,” said U.S. Attorney Gorman. “We are delighted to be able to share good news with these victims and hope to be able to return funds to them through this civil forfeiture action.”

According to the court filings, the deposits made to the Siegel Galleries and used to purchase the stamps, have been traced to victims of crime. Multiple frauds were used in this case, both government impersonation scams and romance scams. Siegel Galleries is not accused of any crime.

The government has identified 28 victims, from Western Washington and from across the country who were defrauded and mislead. The fraud occurred in two phases. In phase one, victims were called by a person claiming to be from a government entity such as the FBI, SEC, or DOJ reporting that the victim’s bank account or personal identity had been breached and stating that the victim needed to send their funds to a different entity for safe keeping.  In some instances, victims were told they had been implicated in a money laundering scheme and to prove their innocence and protect their funds they needed to send them to the account designated by the caller. Victims were told their funds would be returned once the matter had been resolved. Some victims were defrauded of hundreds of thousands of dollars.

Some of the victims sent cashier’s checks directly to the gallery. Others were instructed to send the money via cashier’s check to a second set of victims: romance scam victims. These victims were contacted via social media, and believed they were assisting a romantic interest with money from an inheritance, or an investment or to pay debts. This second set of victims were told to deposit the cashier’s checks from the first set of victims and then withdraw the funds and send or wire the money to the gallery.

In all investigators have traced $1,012,300 to the various victims. Funds deposited toward the invoices for purchase of the stamps total $1,383,437. Prosecutors and agents are still working to trace funds to additional victims.

No criminal charges have been filed yet. Potential charges include conspiracy, mail fraud, wire fraud, and money laundering.

The FBI is investigating the case in coordination with Asset Forfeiture Assistant United States Attorney Krista Bush.

Seattle – A 26-year-old Vancouver, Washington man appeared in U.S. District Court in Seattle today, following his arrest on a criminal complaint for distributing fentanyl and methamphetamine, announced U.S. Attorney Tessa M. Gorman. Gregory Clark Bolton III, was arrested by the FBI and Clark County Sheriff’s Deputies yesterday, following the investigation of the overdose death of a 60-year-old Vancouver man. Bolton appeared at 2:00 on the first appearance calendar which was held in Seattle today.

According to the criminal complaint, Bolton was arrested back in June 2022 for distributing methamphetamine and fentanyl pills. He was charged in state court but absconded after being released on bail. The complaint today charges that drug trafficking activity under federal law.

In January 2024, Bolton again came on the radar of law enforcement after the overdose death of the Vancouver man. Following the death, law enforcement worked with the victim’s widow and other confidential informants to trace the source of the fentanyl powder that caused the death. Reviewing cell phone data and surveillance video at the scene of the drug sale they alleged that the powder was sold by Bolton. Bolton was arrested on January 24, 2024, and charged with possession of controlled substances with intent to deliver and possession of a firearm.  He was again released on bail and informed that a condition of his release was to have no law violations.

In April 2024, a person working with law enforcement purchased 100 fentanyl pills from Bolton. The drug sale was being surveilled by law enforcement. The purchased pills tested positive for fentanyl on June 11, 2024. Bolton was charged federally by criminal complaint on June 18, 2024, and was arrested June 25, 2024.

Possession with intent to distribute controlled substances is punishable by up to 20 years in prison. The investigation is ongoing and additional charges may be merited.

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

The case is being investigated by the Columbia River Organized Crime Task Force which includes the FBI and the Clark County Sheriff’s Office.

The case is being prosecuted by Assistant United States Attorney Kristine Foerster.

Tacoma – A 42-year-old Thurston County resident was sentenced today in U.S. District Court in Tacoma to 30 months in prison for making a threat against a Black federal employee at the Social Security office in Olympia, Washington, announced U.S. Attorney Tessa M. Gorman. Steven L. Veres was initially charged in July 2023. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said, “Your criminal history shows a disrespect for the law.”

“This defendant not only used racial slurs in this case, investigators discovered his use of racial slurs in social media messages back in 2020 when he was threatening to find and assault or kill a different Black victim,” said U.S. Attorney Gorman. “Such conduct is a window into his hate-filled mindset that leads to this prison sentence today.”

According to records filed in the case, on February 16, 2023, Veres and a companion went to the Olympia Social Security Administration office seeking a replacement Social Security card. When a Black Social Security Administration employee told Veres that Veres lacked the proper paperwork to obtain a new Social Security card, Veres became irate, threatening to assault and, per some witnesses, kill the worker. Veres also repeatedly yelled racial slurs at the employee.

Veres pleaded guilty in April 2024 to Influencing a Federal Official by Threat. The Court also imposed a hate-crimes sentencing enhancement, finding that Veres targeted the victim because of the victim’s perceived race or color.

Under the terms of the plea agreement, both sides asked for a sentence of 30 months in prison.

In asking for the 30-month sentence, prosecutors noted that Veres has a history with numerous criminal convictions. “Mr. Veres has an extensive criminal history, including convictions for taking a motor vehicle, possession of stolen property and vehicles, forgery, harassment (domestic violence), malicious mischief, methamphetamine possession with intent to distribute, obstruction, and identity theft. He also has a poor record on supervision, having “made himself unavailable for supervision on five occasions” and having been “returned to custody seven times” in his first stint on supervision in the mid-2000s, and then having made himself unavailable for supervision on 17 occasions and having been returned to custody 19 times on his lengthy period on supervision between 2007 and the present,” prosecutors wrote in their sentencing memo.

Veres will be on federal supervision for three years following his prison term.

As part of the plea agreement, Grays Harbor County will dismiss an unrelated prosecution against Veres for attempting to elude a police officer.

The case was investigated by the Federal Protective Service.

The case is being prosecuted by Assistant United States Attorneys Will Dreher and Elyne Vaught in coordination with the Criminal Section of the U.S. Department of Justice’s Civil Rights Division.

Tacoma – A trained welder who tried to use an oxyacetylene torch to break into a Tumwater credit union and steal from an ATM was sentenced today in U.S. District Court in Tacoma to 66 months in prison, announced U.S. Attorney Tessa M. Gorman. Randall Taufete’e, 34, pleaded guilty to arson and attempted larceny of a federally insured credit union on March 15, 2024. At today’s sentencing hearing U.S. District Judge Benjamin H. Settle said “Arson is an extremely serious offense. It destroys property and risks harm to the lives of others, including firefighters. You’re fortunate you didn’t set the entire structure on fire.”

According to records in the case, on October 24, 2022, Tumwater firefighters responded to a fire alarm at O Bee Credit Union. They observed flames coming from the top of the ATM machine which was in a wall of the building. The flames were extinguished but smoke had filled the building.

Following the fire, investigators found char and pry marks on the ATM machine, on the night deposit box, the drive through window and an exterior door. Surveillance video showed two men using a pry bar, an electric saw and an oxyacetylene welder’s torch to try to open the ATM and gain access to the building. The larceny attempt and arson did $198,018 in damage to the building.

A few days after the fire, Taufete’e was taken into state custody for being a felon in possession of a firearm. Agents then identified Taufete’e as one of the men in the surveillance video, but despite the video and other items linking Taufete’e to the arson, Taufete’e denied being involved.

Taufete’e and codefendant Brandon Ronald Collado were indicted in January 2023. Collado pleaded guilty in June 2023 and was sentenced to 30 months in prison.

Taufete’e pleaded guilty in March 2024.

In asking for a 92-month sentence, prosecutors noted that Taufete’e has more than a dozen criminal convictions as an adult, running the gamut from theft to assault, to robbery, burglary, and firearms possession.

Taufete’e will be on three years of supervised release following his prison term. He and Collado and will be required to pay $198,018 in restitution for the damage to the credit union.

The case was investigated by the Tumwater Police Department with the assistance of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).

Seattle – A former commercial airline mechanic was sentenced today to six months in prison and five years of supervised release for abusive sexual contact aboard an aircraft, announced U.S. Attorney Tessa M. Gorman. Duane Brick, 53, pleaded guilty March 5, 2024. At today’s sentencing hearing U.S. District Judge James H. Chun said, “This was a serious and frightening crime…. He was clearly a predator. He checked to see if she was responsive and when she was not, he continued the abuse.”

According to records filed in the case Brick was on a March 20, 2023, flight from Phoenix to Seattle. He was seated in a middle seat, with the 24-year-old victim in the window seat. The victim was anxious about flying and had taken an anti-anxiety medication. After politely tolerating Brick’s attempt at small talk, the victim put on her headphones and closed her eyes to try to relax. She fell asleep and awoke to find Brick had grabbed her hand and placed and pressed it on his crotch. The victim was frozen in shock.

Brick then tapped the victim on the face, head, arm, and breast to see if she was fully asleep. He reached under her shirt and bra and groped her breast. Brick pulled out the victim’s shirt and reached toward her waistband in an attempt to put his hands down her trousers. She pushed his hand away and said “no.” She turned her body away. Despite that, Brick tried two more times to reach into her pants.

In court today Assistant United States Attorney Grace Zoller said the assault was “intentional, methodical, and prolonged… it took place over many minutes. He knew she was not consenting and when he was caught, he blamed her.”

A witness in the aisle seat reported what he saw happening to the flight crew. The victim told the flight crew she wanted law enforcement called to meet the plane. However, the flight attendants failed to do that. Brick was an employee of their airline. Brick claimed to them that the touching was accidental. Brick, as an airline employee, was allowed to leave the plane quickly when it landed at Seattle.

The victim did report the assault. Brick was indicted April 12, 2023. His employment with the airline was terminated.

The FBI investigated this case.

The case was prosecuted by Assistant United States Attorneys Grace Zoller and Amanda McDowell.

The case is U.S. v. Duane Brick (23-cr-00052)

Tacoma – A former attorney from Mexico was sentenced June 21, 2024, to 90 months in prison for conspiracy to distribute controlled substances, announced U.S. Attorney Tessa M. Gorman. Gustavo Castellanos-Tapia, 38, of Burien, Washington, was a significant supplier of methamphetamine to the drug trafficking organization with ties to the prison gang known as the “Aryan Family.” In imposing the sentence, Chief U.S. District Judge David G. Estudillo rejected arguments from the defense the Castellanos-Tapia played a minor role in the drug ring.

Gustavo Castellanos-Tapia was identified as a significant supplier of methamphetamine to the drug trafficking organization. Law enforcement had

Castellanos-Tapia under surveillance and learned that he would deliver suitcases full of methamphetamine—some 30-40 pounds at a time—every few weeks.

Unlike some drug ring participants who become involved to feed their addiction, Castellanos-Tapia was not a drug user. In fact, he previously worked as a lawyer in Mexico and came to the U.S. in 2020 when the pandemic stalled the economy. He obtained work as a boat painter but got into drug dealing to increase his income.

Castellanos-Tapia and 23 other defendants were indicted and arrested in March 2023. Over the course of the investigation, agents seized from members of the drug trafficking organization an estimated 255 pounds of methamphetamine, an estimated 830,000 fentanyl pills, more than 26 pounds of fentanyl powder, cocaine, six pounds of heroin, $668,000 of suspected drug proceeds, and 225 firearms.

In asking for a nine-year prison sentence, prosecutors pointed out that despite a small decrease in overdose deaths nationwide, Washington had an increase in overdose deaths of over 27% in the year ending December 2023.  “Drugs like the methamphetamine that Castellanos-Tapia distributed have a devastating impact on the community,” prosecutors wrote. “Users of these drugs frequently resort to stealing—from family members, friends, and complete strangers—to feed their addictions. No doubt, drug users are responsible for a large percentage of these crimes, as well as the violent crimes, in our communities.”

Because Castellanos-Tapia was not legally present in the United States he likely will be deported following his prison term.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections, with significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).

The case is being prosecuted by Assistant United States Attorneys Max Shiner and Zach Dillon.

The case is U.S. v Castellanos-Tapia CR23-5085

Seattle – A 27-year-old registered sex offender on supervision with electronic monitoring was brought into federal custody today for allegedly traveling to Oregon to sexually assault a teen, announced U.S. Attorney Tessa Gorman. The criminal complaint charging James Harrison Newcomer alleges that between February and April 2024 Newcomer assaulted three different teens he met via Snapchat. Newcomer will appear today at 2:00 in U.S. District Court in Seattle.

According to records filed in the case, Newcomer was on state supervision following his 30-month prison sentence for two counts of rape of a child. As part of the supervision, Newcomer was on electronic monitoring with an ankle bracelet. On January 19, 2024, the ankle monitor lost connection and when corrections officers went to arrest Newcomer on January 25, 2024, he had left the residence and could not be located.

Over the next three months, Newcomer connected with various teen girls via social media and then arranged to meet them in person. In those meetings he allegedly gave girls drugs and alcohol and sexually assaulted them. The victims were from Snoqualmie, Auburn and most recently, Woodburn Oregon. The victims ranged in age from 14 to 16.

Travel with intent to engage in sexual acts with a minor is punishable by up to 30 years in prison.

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

The case is being investigated by the FBI, the Woodburn, Oregon Police Department, the Marion County District Attorney’s Office, the Auburn Police Department, the Snoqualmie Police Department, and the Kent Police Department, with the assistance of the Department of Corrections. Anyone with information regarding other potential victims is asked to contact the Seattle FBI Field Office at 206-622-0460.

The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.

newcomer_complaint.pdf

Seattle – A 19-year-old SeaTac, Washington, man was indicted today for armed carjacking in connection with a crime spree that ended in a homicide, announced U.S. Attorney Tessa M. Gorman. Salman Subeyr Haji is believed to have fled abroad just days after he allegedly shot and killed a woman in the parking lot of the Tukwila Costco.  Haji has been charged with murder in King County Superior Court. The federal indictment for armed carjacking will prompt an international “red notice” for Haji, alerting international law enforcement to take him into custody.

“Our carjacking task force identified this case as meriting federal prosecution,” said U.S. Attorney Gorman. “Separate and distinct from the fatal shooting in Tukwila, this defendant is alleged to have used a firearm to steal a car from a woman driving in Seattle. She made a narrow escape. This defendant needs to be held accountable.”

According to the indictment and police reports, on January 26, 2024, Haji stole a Porsche Cayenne at gunpoint from a woman driving on Queen Anne Hill. Haji and another man were following the victim and rear-ended her to cause her to pull over. While attempting to retrieve insurance information from the glove box, Haji held a gun to the victim and demanded the keys to the vehicle and money. Haji then drove off in the vehicle.

The indictment lists several names Salman Subeyr Haji has used: Salmon Subeyr Haji, Salman Hagi, and Markell Somo Jefferson.

Carjacking is punishable by up to 15 years in prison. A second count of using a firearm in a crime of vi0lence is punishable by up to life in prison, with a mandatory minimum seven years in prison to run consecutive to any other prison sentence imposed in the case.

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

The case was investigated by the Seattle Police Department, Tukwila Police Department, the King County Sheriff’s Office, and the FBI.

The case is being prosecuted by Assistant United States Attorney Brian Wynne. AUSA Wynne is working closely with the King County Prosecuting Attorney’s Office on the case.

Seattle – U.S. Attorney Tessa M. Gorman for the Western District of Washington, joined national, state, local, and Tribal leaders today in recognizing World Elder Abuse Awareness Day (WEAAD). Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.

Highlighting the partnership between law enforcement and the public, U.S. Attorney Gorman emphasized the importance of awareness and education.

“Our Elder Fraud Coordinator and an investigator for the FBI are presenting in area retirement homes and community centers to provide important warnings to protect residents from fraud,” said U.S. Attorney Gorman. “With so many fraudsters using the internet, social media or phones to hunt for their prey, we all need to be vigilant to keep those we care about from falling victim to financial scams.”

Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.

The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.

Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.

To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration Impostor schemes, scammers impersonate government administrators and falsely reporting suspicious activity to request that the victims provide their Social Security number for confirmation. In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes. In contractor frauds, workers knock on the door of an elderly victim and claim the victim’s home needs repair. The workers demand payment for work and supplies, but they either perform no or sub-par work before disappearing with the money.

To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.

The Western District of Washington continues to work with federal, state, local, and Tribal law enforcement partners to investigate and prosecute elder abuse crimes.

This year we prosecuted a former bank manager who stole from the accounts of elderly customers and last year prosecuted a so-called “money mule” who played a role in stealing funds from elderly victims. Also in 2023 we prosecuted an unlicensed investment advisor who stole the funds of his investors – many of them elderly.

To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov. 

Tacoma – A 41-year-old Vancouver, Washington, man was sentenced today in U.S. District Court in Tacoma to 10 years in prison for drug distribution and firearms crimes, announced U.S. Attorney Tessa M. Gorman. Joseph Anthony Cannarozzi was identified in May 2021 as the source of potentially deadly fentanyl pills. The ensuing investigation determined Cannarozzi was dealing fentanyl pills and also selling anabolic steroids through the mail. At the sentencing hearing Chief U.S. District Judge David G Estudillo said, “This case is not about a statistic, it is about an individual who passed away from a mix of substance you sold him for money…. Controlled substances create real devastation and turmoil for real people.”

“Even after his pills were connected to a death, Mr. Cannarozzi, continued to deal fentanyl. Some 10,000 pills were seized from his home,” said U.S. Attorney Gorman. “That conduct, coupled with his possession of multiple firearms, justifies this significant prison sentence.”

According to records filed in the case, in May 2021 pills found with the victim of an overdose death were linked back to Cannarozzi prompting an investigation from the Clark County Sherriff’s Office. Officers surveilled Cannarozzi’s home and saw drug customers repeatedly coming to the home for suspected drug transactions. In October 2021, a search warrant at Cannarozzi’s home resulted in the seizure of 10,000 fentanyl pills made to look like prescription medication, as well as suspected steroids and records on drug distribution. Law enforcement also seized six firearms from the home.

The search revealed that Cannarozzi operated a business called “Locked and Loaded” that sold steroids and other medications via the internet. Financial records indicate that more than $1 million was processed through those business accounts.

Cannarozzi was charged federally in August 2022. Cannarozzi pleaded guilty to possession of controlled substances with intent to distribute and possessing firearms in furtherance of drug trafficking crimes on March 6, 2024.

In asking for the ten-year sentence Assistant United States Attorney Kristine Foerster wrote to the court, “The nation’s ongoing fentanyl-death epidemic would not be possible without suppliers like Cannarozzi. He trafficked in large quantities of deadly fentanyl pills disguised as prescription drugs. He did this despite knowing the pills could kill. He sold those pills to (the victim) and other customers, and he kept selling the pills even after they caused (the victim’s) death.”

The case was investigated by the Clark County Sherriff’s Office, the Vancouver Police Department, Homeland Security Investigation (HSI), and the United States Postal Service.

The case is being prosecuted by Assistant United States Attorney Kristine Foerster.

Tacoma– A 41-year-old Tacoma man was sentenced today in U.S. District Court in Tacoma to 80 months in prison for Assault Resulting in Serious Bodily Injury, announced U.S. Attorney Tessa M. Gorman. Shaun Lee Blue stabbed the victim multiple times leaving him critically injured. Chief U.S. District Judge David G. Estudillo said “it is difficult for the court to wrap around the idea that whatever the victim did could justify stabbing him 17 times.”

According to records filed in the case, Blue worked for the victim as a day laborer. On March 19, 2023, the men were working on removing an old trailer from a property in Eatonville, Washington. At the end of the workday, the two met up at the Roy Y Park and Ride lot so that the victim could pay Blue for the work he had done.

At the parking lot, both men got out of their cars and started to argue. Blue pulled a knife and stabbed the victim in the abdomen multiple times causing serious cuts to his intestines, colon, and liver. Blue continued to stab the victim even after the victim fell to the ground.

After the attack, Blue drove away and the victim was able to call 9-1-1 for help. He was found critically injured in his vehicle and was taken to the hospital. The victim continues to recover from his significant injuries and multiple surgeries.

The Roy Y Park and Ride is on the property of Joint Base Lewis McChord and therefore is in exclusive federal jurisdiction.

In asking for a sentence above the guidelines range Assistant United States Attorney Hillary Stuart wrote to the court, “Blue has not yet been deterred from violent crime despite numerous arrests and jail sentences. Blue’s prior interactions with the law should have put him on notice as to the serious consequences of his crimes, but it did not. He lacks any respect for the law or the legal system.”

The victim is asking for $25,363 in restitution. Chief Judge Estudillo will determine the exact amount of restitution at a hearing next month.

The case was investigated by the FBI, and Army Criminal Investigation Division (CID) with assistance from the Pierce County Sheriff’s Office.

The case is being prosecuted by Assistant United States Attorney Hillary K. Stuart.

Seattle – A 59-year-old Shoreline, Washington man was sentenced today in U.S. District Court in Seattle to 66 months in prison for possession of images of child sexual abuse, announced U.S. Attorney Tessa M. Gorman. Bruce Arthur Williamson came to the attention of federal law enforcement in October 2019 when Williamson communicated with an undercover agent in Tennessee regarding images of child sexual abuse. Law enforcement traced the communications to a residence Williamson shared with other sex offenders in Shoreline. At the sentencing hearing U.S. District Judge Richard A. Jones imposed 15 years of supervised release to follow the prison term.

At the sentencing hearing Judge Jones said, “Young children are not pieces of candy in a dish that you get to pick to violate… You participated in a market that makes it a dangerous place for children.” Judge Jones expressed concern that despite a prior conviction, sentencing and treatment, Williamson had failed to register as a sex offender and again sought out child sex abuse material.

The FBI executed a federal search warrant on the residence in May 2020. A forensic investigation by law enforcement determined that various electronic devices owned by Williamson contained images of child sexual abuse. Williamson fled following the search and was ultimately located living homeless in November 2023 when he came into federal custody.

Williamson pleaded guilty in February 2024. The plea to federal charges also resolves a state charge of failing to register as a sex offender.

In asking the court for the 78-month sentence Assistant United States Attorney Cecelia Gregson wrote to the court, “Those who collect and share images and videos of children being assaulted further a market that thrives on the sexual abuse of children. The collection of this material drive demand for new material and normalize horrific acts of sexual exploitation. And it subjects victims of child abuse to perpetual re-victimization, knowing that the digital record of their worst moments forever travels the globe to whet the sexual appetite of child predators. The defendant has proven by his repeated crimes against minors that he is an unapologetic child predator.”

The FBI investigated this case.

The case was prosecuted by Assistant United States Attorney Cecelia Y. Gregson.

Today, Special Master Mary Patrice Brown announced that she will authorize fifth-round payments for all eligible claims in the U.S. Victims of State Sponsored Terrorism Fund (the Fund) by Jan. 1, 2025. The Fund, which continues to collect deposits, anticipates that the fifth distribution will be at least $940 million. The amounts available for this distribution come from qualifying federal enforcement actions, including United States v. Binance Holdings Limited. 

“The Criminal Division is proud to administer the U.S. Victims of State Sponsored Terrorism Fund, which has provided more than $6 billion to victims of state sponsored terrorism since its founding. As announced today, that total will grow to nearly $7 billion in 2025,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The Criminal Division, through our Money Laundering and Asset Recovery Section’s Bank Integrity Unit, is committed to prosecuting financial institutions and individuals whose anti-money laundering and sanctions violations threaten our financial system and national security. I’m proud of the work the section has done to hold accountable those who do business with state sponsors of terrorism and to support victims through its administration of the Fund.” 

The Fund was established by Congress and is administered by the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), under the leadership of the Special Master. To date, the Fund has paid more than $6 billion to thousands of victims of state-sponsored terrorism and their families in four rounds of distributions and one round of lump-sum catch-up payments. The anticipated distribution announced today is in addition to these prior distributions. Apart from an initial appropriation of approximately $1 billion from Congress and additional Congressional appropriations for lump sum catch-up payments, funds available for distributions result from certain Justice Department prosecutions and cases and other U.S. government enforcement actions.

In November 2023, the department announced that Binance Holdings Limited (Binance) agreed to plead guilty to violations of the Bank Secrecy Act, money transmitting business registration requirements, and the International Emergency Economic Powers Act (IEEPA). The Bank Integrity Unit (BIU) of the Criminal Division’s MLARS, the National Security Division, and the U.S. Attorney’s Office for the Western District of Washington led the investigation and prosecution of Binance. Binance admitted to prioritizing growth and profits over compliance with U.S. law, including by failing to register as a money transmitting business, failing to implement an effective anti-money laundering program, and failing to implement controls that would have prevented U.S. customers from transacting with customers in sanctioned jurisdictions, including Iran, which is designated as a state sponsor of terrorism. Binance agreed to forfeit $898 million as a result of its violation of IEEPA. Today, the department announced that MLARS has determined that the full amount of Binance’s IEEPA forfeiture qualifies for deposit into the Fund.

The Fund continues to accept applications from potential new victim claimants. As the Special Master announced, the deadline for new claimants to submit applications to be considered for fifth-round payments is July 1. Claimants who were eligible for payments in prior rounds remain eligible for the fifth distribution and should not complete new applications.

More information about the Fund’s compensation to victims of state sponsored terrorism is available on the Fund’s website at www.usvsst.com, including application materials, frequently asked questions, and publications.

Seattle – A 52-year-old Des Moines, Washington, man, who is a registered sex offender, was indicted by a grand jury this week for possession of images of child sexual abuse, announced U.S. Attorney Tessa M. Gorman. Edward James Creed, was on Washington State Department of Corrections supervision when he was found to have unapproved electronic devices in his residence and images of child sexual abuse on his phone. Because of his prior conviction, Creed faces a mandatory minimum ten-year sentence if convicted. He will be arraigned on the charge next week.

According to records filed in the case, Creed previously served nearly ten years in state custody for a 2008 Kitsap County conviction for rape of a child. He was released in 2017 but was returned to custody for a time in 2019. In March of 2024, a community corrections review of his phone revealed that he had collected images of child sexual abuse. After his arrest, a search of his room at the sex offender residence revealed that he had a number of unapproved electronic devices. Those devices are still being forensically analyzed.

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

The case is being investigated by Homeland Security Investigations (HSI) and the Washington State Department of Corrections. 

The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.

Seattle – A 56-year-old Portland, Oregon, man was indicted by a federal grand jury for attempted enticement of a minor and travel with the intent to engage in a sexual act with a minor, announced U.S. Attorney Tessa M. Gorman. Marc David McCool was arrested May 16, 2024, when he arrived at a Seattle area hotel, allegedly intending to sexually abuse fictitious 7 and 11-year-old children. McCool remains detained at FDC SeaTac and is scheduled for arraignment next week.

According to records filed in the case, McCool responded to an ad posted on social media by an undercover law enforcement agent. Over more than six weeks of “chats” via the Kik Messenger App, McCool allegedly described his sexual interest in children, his sexual abuse of other victims, and the types of “trophies” he kept from those prior criminal sexual acts. Ultimately, McCool arranged to travel to Seattle allegedly believing he would sexually abuse two young children. He was arrested after he traveled by train and a rideshare to the meet location. At the time of arrest, he had various items reflective of his sexual interest in abusing children: condoms, baby oil, rope, and stuffed animals.

Attempted enticement of a minor is punishable by no less than 10 years to lifetime imprisonment. Traveling with the intent to engage in a sexual act with a minor is punishable by up to 30 years imprisonment.

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

The case is being investigated by Homeland Security Investigation as part of the Seattle Police Department Internet Crimes against Children Task Force (ICAC).

The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.

U.S. v McCool 24-cr-00102

Seattle – Five sisters who reside in the Seattle area will appear today at 1:45 PM on a grand jury indictment charging them with conspiracy and mail fraud for their scheme to defraud a major active clothing retailer, announced U.S. Attorney Tessa M. Gorman. The five allegedly exploited a “Fast-Track Returns” policy whereby they scanned a return label at a post office to get a gift card with the refund amount via email, but never actually mailed the merchandise back to the retailer. Instead, they traveled to brick-and-mortar stores across the country and returned the merchandise for a second, duplicate refund. The indictment alleges that through this scheme defendants defrauded the retailer of more than $1 million.

“Refund fraud schemes such as this one simply drives up the costs for retailers and result in higher prices for the rest of us,” said U.S. Attorney Gorman. “We will work with our law enforcement partners to shut these down and hold the perpetrators accountable.”

“This investigation underscores HSI’s commitment to combatting organized retail theft, which poses a direct threat to the integrity and vitality of our economy,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Together, with the support of our communities and law enforcement partners, we will seek to dismantle these criminal enterprises and ensure that every individual and business can thrive in a secure environment."

The five are charged with conspiracy to commit mail fraud and 24 counts of mail fraud. The defendants are:

Dunia Almezal, 29, of Marysville, Washington

Layla Almansuri, 27, of Stanwood, Washington

Shahad Almansuri, 33, of Marysville, Washington

Raghad Almansuri, 32, Marysville, Washington

Nejoom Almansuri, 25, Marysville, Washington

According to the indictment, the defendants ordered multiple shipments per week from the victim company. Then, often before the items were delivered, the defendants requested a return label for the items. Once that label arrived via email, the defendants took the label to a self-service counter at the post office and scanned it, obtaining a return credit via email within two hours. However, the defendants never mailed the merchandise back. Instead, they traveled to retail stores in Washington and across the country returning merchandise for a second refund. That second refund was in the form of money to their debit cards. They returned goods in Arizona, California, Colorado, Florida, Michigan, Nevada, and Oregon, as well as Washington. The defendants would allegedly use the emailed gift card credit to purchase more goods, thus continuing the fraud.

The defendants would often travel together to make the returns and would transfer money between each other as a “cut” of the proceeds.

After becoming aware of the scheme, the victim retailer changed their return policies.

Conspiracy to commit mail fraud and mail fraud are punishable by up to 20 years in prison and a $250,000 fine.

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

The case is being investigated by Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service (USPIS).

The case is being prosecuted by Assistant United States Attorney Rachel Yemini.

almansuri_indictment.pdf

Seattle – The U.S. Department of Justice today resolved double billing allegations against Evergreen Treatment Services, announced U.S. Attorney Tessa M. Gorman. The settlement is on behalf of the U.S. Department of Health and Human Services (HHS) which runs the Medicare program and other government health plans. Evergreen Treatment Services will pay the government $1,453,982 to resolve the matter.

“I want to commend the data analysis work done by our Affirmative Civil Enforcement unit and HHS-OIG to identify the double billing,” said U.S. Attorney Gorman. “We want to be sure taxpayer dollars are safeguarded so they can legitimately go to critical services such as drug treatment.”

“Providers that participate in Medicare are obligated to bill for services honestly and lawfully. Submitting false claims diverts funding from essential health services, including critical drug treatment, which puts both patient well-being and federal health care programs at risk,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement shows that HHS-OIG will continue to work with our law enforcement partners to detect and deter actions that threaten the Medicare program and its enrollees.”

According to the settlement agreement, in January 2020, Medicare began paying for drug treatment services including medically assisted treatment. Evergreen, a non-profit based in Seattle, submitted claims in 2020 for the period January 1, 2020, to July 2020 and those claims were paid.  The claims are paid weekly, and services are bundled: medications, counseling, therapy, toxicology testing, intake activities and periodic assessments are billed under one billing code.

Evergreen then knowingly resubmitted bills that had already been paid. This conduct continued from January 8, 2021, to February 26, 2021. Evergreen was improperly reimbursed for these services. These double billings totaled $726,991.

Of the $1,453,982 settlement, $726,991 is restitution and the rest is a penalty under the False Claims Act.

This matter was handled by Assistant United States Attorney Matt Waldrop and Ryan Hardy, investigative analyst with the U.S. Attorney’s Office. HHS-OIG and the DEA Diversion Control Division provided significant investigative assistance.

Tacoma – Two men indicted in March 2023 as part of a drug distribution organization associated with an Aryan prison gang pleaded guilty to drug and gun crimes today in U.S. District Court in Tacoma, announced U.S. Attorney Tessa M. Gorman. Ronaldo McComb, 59, of Ridgefield, Washington, and Gregory Beers, 31, of Edgewood, Washington, will be sentenced by Chief U.S. District Judge David G. Estudillo in September 2024.

McComb pleaded guilty to conspiracy to distribute controlled substances and felon in possession of a firearm. The drug charge carries a mandatory minimum ten years in prison because of the amount of narcotics involved in the case. In a detailed plea agreement, McComb acknowledged multiple recorded phone calls with coconspirators in which he discussed his drug trafficking activities involving distributing multi-pound quantities of methamphetamine and tens of thousands of fentanyl pills and creating a distribution network of fentanyl pills up to Alaska. He further admitted to possessing large quantities of heroin and a 9mm handgun that law enforcement seized from the trunk of his vehicle following a traffic stop in February 2022. Law enforcement eventually arrested him on March 22, 2023. On that date, authorities found methamphetamine, heroin, three firearms, and large quantities of cash and gold bars in McComb’s Kalama residence. As part of the plea, McComb stipulated to the forfeiture of that cash and gold as proceeds of his drug trafficking. McComb was prohibited from possessing firearms due to his felony convictions for assault and robbery in Clark County and another assault conviction in Cowlitz County.

Gregory Beers pleaded guilty to conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.

Beers admitted in his plea agreement that he sent video messages to inmates in the Washington State Department of Corrections showing multiple high-powered firearms in his possession and large quantities of cash and gold he earned through his drug trafficking. The plea agreement detailed multiple calls in which Beers discussed his drug trafficking activities involving distribution of tens of thousands of fentanyl pills and multi-pound quantities of methamphetamine.

When police attempted to arrest Beers on the day of the takedown, he tossed a loaded pistol and fled over a neighbor’s fence. Police found two firearms in his residence and seven more in his car along with illegal drugs, cash, and drug ledgers. Ultimately Beers was arrested living in an RV in Tacoma. Once again, he was armed with guns and possessed large quantities of cash and expensive jewelry that he admitted as part of the plea agreement were proceeds from his drug trafficking.

Prosecutors and defense attorneys agreed to jointly recommend 13 years in prison for McComb and 12 and a half years (150 months) in prison for Beers. Chief Judge Estudillo is not bound by the agreed sentences and can impose any sentence allowed by law.

This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).

The case is being prosecuted by Assistant United States Attorneys Zach Dillon and Max Shiner.

Seattle – A 36-year 0ld Seattle man was sentenced today in U.S. District Court in Seattle to 8 months in prison for abusive sexual contact on a flight from Paris to Seattle, announced U.S. Attorney Tessa M. Gorman. Milan Edward Jurkovic was convicted following a three-day jury trial in December 2023. At the sentencing hearing, U.S. District Judge Robert S. Lasnik said, “The flight back should have been nothing less than the end of a joyous trip and instead she is the victim of a crime…. It shouldn’t have happened.”

“Trapped in an aircraft cabin, these assaults are particularly traumatic for vulnerable young people who trust the adults around them to behave appropriately,” said U.S. Attorney Gorman. “In this case the defendant groped a teenager traveling with a school group. She bravely spoke up. As I noted a year ago, we have a zero-tolerance policy for these aircraft sexual assaults. Predators will be prosecuted.”

According to records filed in the case and testimony at trial, on July 3, 2022, Jurkovic was a passenger on an Air France flight from Paris to Seattle. Also on the flight was a school group from Western Washington. The students were returning from a class trip abroad. The 16-year-0ld victim was seated next to Mr. Jurkovic.

About three hours into the flight, Jurkovic reached under the Air France blanket covering the victim and began groping the victim’s thigh. The victim was shocked and frozen with fear. Jurkovic proceeded to rub her thigh for an extended period of time, touching her inner thigh, before the victim was able to pull away and seek assistance from a classmate and then her chaperone. The chaperone traded places with the victim for the duration of the flight.

The incident was reported to the flight crew, and Port of Seattle Police met the flight as it arrived at SEA Airport. The victim was interviewed by law enforcement. Jurkovic provided contradictory statements to different audiences. Initially, he told the chaperone he had been rubbing his leg due to bad circulation, suggesting that he inadvertently touched the victim. Later, after being told by a Port of Seattle officer that he was under investigation for allegedly assaulting the passenger seated next to him, Jurkovic said he did not hurt anyone. He later volunteered that he had an itch on his leg. He was indicted by a grand jury on January 4, 2023, and arrested January 30, 2023.

In asking for a 16-month prison sentence, prosecutors wrote to the court, “reports of airline sexual assaults are on the rise. While they are not likely a new occurrence, the increase in reports likely reflects an increased societal desire to hold perpetrators of sexual offenses accountable. Airline sexual assaults demand a significant punishment….”.

The case was investigated by the FBI and the Port of Seattle Police.

The case was prosecuted by Assistant United States Attorneys Rachel Yemini and Brian Wynne.

Tacoma – A 28-year-old California man was sentenced Thursday in U.S. District Court in Tacoma to 66 months in prison and four years of supervised release for dealing fentanyl, laundering drug money, and arranging for people to be smuggled across the U.S. Mexico border, announced U.S. Attorney Tessa M. Gorman. Andre Jackson was identified as a key distributor of narcotics in the Kitsap County and Pierce County areas. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “Drug dealing is of course dangerous” and when you engage in human smuggling “you were making money off of vulnerable people."

According to records filed in the case, Jackson was in contact with a Mexican-based source of supply named “Pacheco.” Working at Pacheco’s direction Jackson coordinated the delivery of drugs from California to Washington State and the laundering of drug proceeds back to Pacheco, and his associates, in Mexico. At times, Jackson would deliver drugs in person from California to Washington. For example, in August of 2021, he delivered 3500 fentanyl pills to a person working with law enforcement. That deal was conducted at the Tacoma Mall. Later that day, he made a second smaller drug delivery to a codefendant at a grocery store parking lot in Bremerton.

The investigation also revealed Jackson wired drug proceeds from multiple Bremerton and Silverdale, Washington, locations to individuals in Mexico. Throughout August, September, and October 2021, Jackson sent money to sources in Mexico via Money Gram, CashApp or Western Union from various locations in Kitsap and Pierce Counties.

Finally, during the drug and money laundering investigation, law enforcement identified Jackson as someone facilitating the smuggling of non-citizens across the U.S./Mexican border. Jackson used various social media channels to recruit drivers who would smuggle non-citizens across the border or pick them up near the border and drive them north. A number of the recruited drivers were apprehended by law enforcement with the non-citizens in their vehicles.

Jackson was indicted and arrested in November 2022. In February 2024, he pleaded guilty to conspiracy to distribute controlled substances, conspiracy to commit money laundering, and conspiracy to transport certain non-citizens for profit. Other individuals charged federally in this investigation include Jason Baker (61-month sentence), Ashley Chico (18-month sentence), and John Irias-Mejia (18-month sentence).

In asking for a 6-year-prison sentence Assistant United States Attorney Stephen Hobbs wrote to the court, “Most basically, Jackson was involved in the distribution of significant quantities of fentanyl pills and likely other drugs. The Court is certainly aware of the dangers that controlled substances – particularly fentanyl – pose to those who use them. But Jackson was not just a street dealer or simple courier. He was in direct contact with the DTO leader in Mexico and played a knowing and significant role in transporting drugs from California to Washington, distributing the drugs in this State, and sending the proceeds back to Mexico.”

The case was investigated by HSI.

The case was prosecuted by Assistant United States Attorney Stephen Hobbs.

Seattle – A- 70-year-0ld Andrews, North Carolina man was sentenced Wednesday to 6 months in custody and 12 months of supervised release following prison, for an assault on board an aircraft flying from Atlanta to Seattle, announced U.S. Attorney Tessa M. Gorman. Jack Allen Roberson was arrested at Sea-Tac airport in July of 2023. He pleaded guilty to simple assault in March 2024. At the sentencing hearing U.S. District Judge Lauren King noted the offense was egregious as passengers are captive when seated next to someone on a plane, and children are especially vulnerable in these circumstances. Judge King recognized the conduct was traumatizing for the victim and commended the teen's bravery in coming forward and participating in the criminal justice process.

According to records filed in the case, Roberson was seated next to the 15-year-old victim who was traveling with her guardian. While Roberson appeared to be sleeping, he slipped his hand onto the victim’s thigh and ran his hand up under her skirt and towards her genitals. The victim reported the unwanted touching to her guardian, who contacted the flight attendant. Roberson was moved to a different seat. Law enforcement was contacted and met the plane on arrival. Roberson was arrested and taken to the Federal Detention Center at SeaTac.

In asking for the prison sentence, Assistant United States Attorney Sanaa Nagi wrote to the court, “Airline assaults are a plague on our modern, highly mobile society. The Western District of Washington in particular, likely in part due to Seattle’s location and relationship with the greater international air travel network, has experienced a significant increase of the number of airline assault reports as of late… In the immediate aftermath of the assault, Roberson’s groping left the victim shocked and afraid…. Despite the trauma of being assaulted by a complete stranger, she found the courage to report what happened – to stand up for herself and declare that what Roberson did to her was not acceptable and should not go unpunished.”

The case was investigated by the FBI with assistance from the Port of Seattle Police.

The case was prosecuted by Assistant United States Attorney Sanaa Nagi.

Seattle – Law enforcement teams from the Drug Enforcement Administration (DEA), Seattle Police Department and IRS Criminal Investigation executed 24 search or arrest warrants taking four people into custody who are allegedly connected to a drug trafficking conspiracy, announced U.S. Attorney Tessa M. Gorman. The drug conspirators have ties to suppliers in Mexico and Colombia, and law enforcement in those countries are assisting with the investigation and search warrants.

“Whenever possible, we try to trace both the origin of drugs and the money going back to those who supply the drugs, said U.S. Attorney Gorman. “We want to ensure that those who would poison our communities – by trafficking drugs from afar – are held accountable for their actions in the United States. I am pleased with the collaborative work between law enforcement not only in the United States, but also with our partners in Colombia, whose collective efforts put a significant dent in this particular drug supply chain.”

“This cooperative effort is a win for the good guys and a tremendous example of the truly international cooperation needed to tackle this immense threat,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “I appreciate the extensive cooperation between the DEA, Seattle Police Department, Internal Revenue Service, and the Colombian National Police to create a top-to-bottom success by indicting Mexican cartel members, Colombian drug producers, and American distributors.”

“This operation is a fantastic example of collaborative police work between Seattle PD, the DEA, the IRS, and the Colombian National Police,” said Seattle Police Chief Sue Rahr. “This case highlights how Seattle PD will work tirelessly with its law enforcement partners domestically and internationally to make our community safer.”

"Following the money has taken this investigation to places both close and far from home, allowing us to disrupt this large-scale drug trafficking chain from end-to-end,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Teamwork and collaboration are indispensable to investigations this far-reaching, and we are proud to be working with some of the most dedicated law enforcement partners here in the U.S. as well as internationally. We are committed to keeping our communities safe from the scourge of illicit drugs, no matter where these investigations may take us.”

Four people were arrested today in the Western District of Washington and District of New Jersey, and they will have initial appearances and detention hearings over the next few weeks. Those arrested include:

• Ramon Duarte Garcia, 37, a citizen of Mexico residing in Kent, Washington.
• Humberto Lopez Rodriguez, 30, a citizen of Mexico, formerly of Renton, Washington, currently imprisoned at Federal Correctional Institution Lompoc, California
• Curtis McDaniel, 55, a U.S. citizen residing in Tukwila, Washington.
• Manuel Garcia Hernandez, 39, a citizen of Mexico, residing in Renton, Washington.
• Jose Luis Villafañe Osorio, 35, a citizen of Colombia, residing in Plainfield, New Jersey

Duarte Garcia was identified as a significant drug supplier when law enforcement stopped him driving back to the Pacific Northwest with 12 pounds of methamphetamine in his vehicle, along with a stolen firearm and $10,000 in drug trafficking proceeds.

Over the course of the investigation, law enforcement seized 84,000 fentanyl pills, more than a kilogram of fentanyl powder, 32 kilograms of cocaine, 15 kilograms of methamphetamine nearly three kilograms of heroin, nine firearms and $71,000 in drug proceeds. Today alone they recovered nine guns, including an AK-47, 2.5 kilograms of cocaine, and a pound of methamphetamine.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The investigation is being led by the DEA and Seattle Police Department. The IRS Criminal Investigation and OCDETF Auditor for the U.S. Attorney’s Office are conducting the financial investigation that is focused on the money launderers responsible for the transfer of significant sums of drug trafficking proceeds to sources of supply in Mexico and Colombia. Additional assistance was provided by Renton Police Department, Centralia Police Department, Homeland Security Investigations (HSI), the Department of Housing and Urban Development Office of the Inspector General (HUD OIG), Washington State Patrol, Pierce County and Valley SWAT teams. 

The Colombian National Police (CNP) and Colombian Prosecutor’s Office (Fiscalia General) partnered with U.S. law enforcement on this investigation. The Justice Department’s Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché in Bogotá provided critical assistance.

The cases from this investigation are being prosecuted by Assistant United States Attorneys Joe Silvio and C. Andrew Colasurdo in the Western District of Washington.

Seattle – A 33-year-old Auburn, Washington, man was arrested last night on a federal criminal complaint charging firearms and drug distribution crimes, announced U.S. Attorney Tessa M. Gorman. Andy Peter Vongdala was charged by criminal complaint after he was caught with large quantities of controlled substances and multiple firearms on April 26, 2024. At the time of his arrest, Vongdala was booked on outstanding warrants and subsequently posted bail. Vongdala will be detained on the federal charges pending additional hearings.

According to the criminal complaint, Vongdala was a suspect in a series of commercial burglaries in Renton, Washington. Renton Police worked with King County prosecutors and obtained a search warrant for Vongdala’s residence to search for distinctive clothing from the burglary investigation.

When police served the search warrant, they encountered Vongdala leaving his two-bedroom apartment. In a backpack he carried, police found a stolen Glock firearm and more than two kilograms of MDMA. Some of the drugs were in smaller bags inside a larger zip lock bag labeled “sample.”

A search of Vongdala’s residence revealed an additional firearm and firearm parts along with ammunition and body armor. In his bedroom, police recovered 61 kilograms of MDMA, more than 2300 fentanyl pills, nearly a kilogram of methamphetamine, and smaller amounts of suspected heroin, cocaine, and alprazolam.

Law enforcement seized a rifle with a casing catcher – a device that keeps shell casings from being left on the ground after the gun is fired. There were also numerous firearm magazines including extended magazines and a drum magazine. Suspected armor piercing bullets were seized as well.

Vongdala is charged with two counts of possession of controlled substances with intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime.

Due to the quantity of drugs seized in this case, the penalties include a mandatory minimum ten years in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by an additional five years in prison which runs consecutive to any other sentence imposed in the case.

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

The case is being investigated by the Renton Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).

The case is being prosecuted by Assistant United States Attorney Celia Lee.

Tacoma –A 21-year-old Bremerton, Washington, man was sentenced today in U.S. District Court in Tacoma to three years in prison for four federal felonies stemming from his extensive illegal harassing activity known as “swatting,” announced U.S. Attorney Tessa M. Gorman. Ashton Connor Garcia pleaded in January 2024 to two counts of extortion, and two counts of threats and hoaxes regarding explosives. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “Swatting is cruel. It is uncivilized. It is the willful terrorizing of other human beings.” Judge Settle added that he saw great need to “send a message that engaging in swatting will get more than a slap on the hand.”

“This conduct is not only outrageous, it is dangerous for the victims, for first responders and for members of the public who may need emergency response but cannot get it because resources are tied up at a false report,” said U.S. Attorney Gorman. “I hope this prosecution and sentence is a wake-up call for those who think swatting is fun or entertaining. It is a federal crime with potentially fatal consequences.”

According to the plea agreement and records in the case, from early June 2022 through March 2023, Garcia used voice over internet technology and social media platforms to make false emergency calls to dispatch services while urging others watch his illegal activity via social media. In his plea agreement, Garcia admits he intended his calls to cause a large-scale deployment of special weapons and tactics (SWAT) teams, bomb squads, and other police units to the targeted locations. He made these calls with malicious intent to harass, intimidate, and retaliate against certain individuals and organizations, and to obtain items of value through extortion.

The plea agreement details 20 different false emergency reports targeting victims in California, Illinois, Kentucky, Michigan, Minnesota, New Jersey, Ohio, Pennsylvania, Colorado, Washington, and Edmonton, Alberta, Canada. Garcia gathered personal information about his victims, and then threatened some of his victims with harm, including placing swatting calls to send an armed police presence to their home. Garcia demanded money, virtual currency, credit card information, or sexually explicit photos from some of the people he threatened.

Garcia made fake reports to non-emergency police numbers claiming things such as that he and others had planted explosive devices in particular locations. He falsely accused other individuals of committing crimes, such as murder, rape, and kidnapping, and he falsely claimed that these individuals possessed dangerous weapons, such as knives, firearms, and explosive devices. Frequently, he used the same scripts claiming that his father was holding him hostage, false claims that he shot his parents, false claims that his father stabbed his mother, and false claims that his father had raped female members of the family.

The false reports tied up law enforcement resources that could have been used for actual emergencies. In some instances, law enforcement entered the victim residence with weapons drawn and detained people at the residence.

In asking for a four-year prison sentence, Assistant United States Attorney Jessica Manca described some of the people harmed by Garcia’s crimes. In her sentencing memo, she wrote, “In Edmonton, Alberta, an 8-year-old boy and his mother were woken up in the night by a team of law enforcement officers with rifles. 20 officers and 7 civilian staff members were directly involved in that law enforcement response. In New Jersey, a man was removed from his house and detained at gunpoint, and an elementary school was locked down on the first day of school. Over 19 officers responded to the area, along with several officers from a neighboring police agency. In Colorado, a family was traumatized when officers suddenly broke down their front door to rescue a woman whom they believed was bleeding to death on the floor. At least 9 police units were dispatched to that incident.”

Commander Dan Grispino from the Shaker Heights Ohio Police Department traveled to Tacoma for the sentencing to ensure Garcia was held accountable. He recalled how a 12-year-old girl, was home alone when Garcia’s false call sent armed police to her home. “To see the terrified look on her face will always be with me,” Grispino said. “Swatting is not a prank, real lives were at stake…. Mr. Garcia showed no regard for the lifelong trauma he imposed on a 12-year-old girl.”

Garcia treated the swatting calls like entertainment. He broadcasted his swatting calls via the internet platform Discord. Garcia told other Discord users that he considered himself a “cyber terrorist.”

Today in court he expressed remorse saying, “I knew what I was doing was wrong…. I just didn’t realize the trauma I was causing.”

Garcia has been detained at the Federal Detention Center at SeaTac, Washington since he violated the terms of his pretrial release last year.

The case was investigated by the FBI, with substantial assistance from numerous local law enforcement agencies throughout the United States and in Canada.

The case is being prosecuted by Assistant United States Attorney Jessica Manca.

Tacoma – The former Executive Director of the Western Washington Indian Employment Training Program (WWIETP) was sentenced yesterday in U.S. District Court in Tacoma to five months in custody for embezzling from a program receiving federal funds, announced U.S. Attorney Tessa M. Gorman. Debbie Rawle, 69, formerly of Tacoma, served as Executive Director of the tribally owned non-profit job training program for several years until October 2019. The non-profit is now defunct and no longer receiving any federal funds. At the sentencing hearing, Chief U.S. District Judge David G. Estudillo said that a custodial sentence was appropriate given the seriousness of the offense, which hurt so many who were looking for assistance from the program.

“As the Chairman of the Squaxin Island Tribe noted for the court, this non-profit was supposed to provide services to twenty-one member tribes, whose members “are among those in the greatest need,”’ said U.S. Attorney Gorman. “While eligible tribal members’ needs went unmet, Ms. Rawle spent lavishly on herself – installing an above ground pool, buying electronics and accessories for motorcycles.”

According to records in the case, the job training non-profit received $698,153 in 2018 and $703,388 in 2019 to provide employment and training services for eligible tribal members. The U.S. Department of Labor, Employment and Training Administration, Division of Indian and Native American Programs administers the funds.

In September 2019, the Division of Indian and Native American Programs began investigating questionable expenditures using the debit card of the non-profit training organization at a Macy’s store. Rawle provided false and misleading information about the purchases, claiming they were work related. In fact, there were multiple purchases of items for Rawle’s own use including a new mattress, sunglasses, and clothing.

Further investigation revealed Rawle used the organization debit card for purchases at Best Buy, Amazon, and Costco. At Costco she purchased a cedar pavilion and above ground swimming pool, while on Amazon she ordered a pool maintenance kit, and motorcycle accessories costing more than $1,000. In all, the embezzled funds amount to $99,990, which Rawle has agreed to pay in restitution.

Vicki Kruger, a Squaxin Island tribal elder and former WWIETP board member, spoke at the sentencing hearing about the substantial harm caused by Rawle’s mismanagement and theft of Program funds, money that would have been used by tribal members to better their lives. According to Kruger, Rawle destroyed the program and harmed the well-being of tribal members for generations to come.

“Debbie Rawle embezzled federal grant funds that were intended to provide education, job training, and employment services to Native Americans in western Washington under the Western Washington Indian Employment and Training Program (WWIETP). As the former executive director of the program, Rawle violated the trust of those she served by personally enriching herself with those funds. We will continue to work with our law enforcement partners to aggressively identify those who misuse U.S. Department of Labor grant funds and bring them to justice,” said Quentin Heiden, Special Agent-in-Charge, Western Region, U.S. Department of Labor, Office of Inspector General.

The case was investigated by the U.S. Department of Labor, Employment and Training Administration, Division of Indian and Native American Programs (“DINAP”), the U.S Department of Labor Office of Inspector General (DOL-OIG) and the FBI.

The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.

Seattle –Two Estonian citizens will appear in U.S. District Court in Seattle at 2:00 PM today following their extradition from Estonia, announced U.S. Attorney Tessa M. Gorman.

Sergei Potapenko and Ivan Turõgin, both 39, were arrested in Tallinn, Estonia on November 20, 2022, on an 18-count indictment from the Western District of Washington charging conspiracy, wire fraud, and conspiracy to commit money laundering. The Estonian government authorized extradition. Late last week the Estonian Supreme Court declined to intervene in the extradition proceeding, clearing the way for the defendants’ removal to the United States. The FBI escorted the defendants to the United States.

According to the indictment, Potapenko and Turõgin, are alleged to have induced hundreds of thousands of victims to purchase contracts in a cryptocurrency mining service called HashFlare. Victims paid more than $575 million to the defendants’ companies. The defendants then used shell companies to launder the fraud proceeds and to purchase real estate and luxury cars.

According to the indictment, Potapenko and Turõgin claimed that their business, HashFlare, operated a massive cryptocurrency mining operation. Cryptocurrency mining is the process of using computers to generate cryptocurrency, such as Bitcoin, for profit. The defendants offered contracts under which customers could pay a fee to rent a percentage of HashFlare’s mining operations in exchange for the virtual currency produced by their portion of the operation. Customers from around the world, including from western Washington, bought more than $550 million worth of HashFlare contracts between 2015 and 2019.

HashFlare allegedly did not have the virtual currency mining equipment it claimed to have. In fact, according to the indictment, HashFlare’s equipment performed Bitcoin mining at a rate of less than one percent of the computing power it purported to have. When investors asked to withdraw their mining proceeds, the defendants were not able to pay with the mined currency as promised. Instead, the defendants either resisted making the payments, or paid off the investors using virtual currency the defendants had purchased on the open market—not currency they had mined. HashFlare closed its operations in 2019.

In May 2017, Potapenko and Turõgin offered investments in a company called Polybius, which they said would form a bank specializing in virtual currency. The defendants promised to pay investors dividends from Polybius’ profits. The men raised at least $25 million in this scheme and transferred most of the money to other bank accounts and virtual currency wallets they controlled. Polybius never formed a bank or paid any dividends.

The indictment also charges the defendants with conspiring to launder their criminal proceeds by using shell companies and phony contracts and invoices. The indictment alleges that the money laundering conspiracy involved at least 75 real properties, six luxury vehicles, cryptocurrency wallets, and thousands of cryptocurrency mining machines.

The men are charged with conspiracy to commit wire fraud, 16 counts of wire fraud, and one count of conspiracy to commit money laundering. Each of these crimes is punishable by up to 20 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.

The FBI is investigating the case.

The United States thanks the Cybercrime Bureau of the National Criminal Police of the Estonian Police and Border Guard for its support with this investigation. The U.S. Department of Justice’s Office of International Affairs (OIA) provided extensive assistance to the investigation and in securing the arrests and extraditions. U.S. Customs and Border Protection (CBP) assisted in facilitating the defendants’ entrance to the United States.

This investigation and arrests demonstrate the great cooperation between U.S. and Estonian law enforcement. Estonia has been a crucial ally to disrupt this cyber-enabled crime, and the United States thanks the Estonians for their continued assistance.

Assistant United States Attorneys Seth Wilkinson and Sok Jiang of the Western District of Washington, and Trial Attorneys Adrienne E. Rosen and David Ginensky of DOJ’s Money Laundering and Asset Recovery Section are prosecuting the case. Assistant United States Attorney Jehiel Baer of the Western District of Washington is handling asset forfeiture aspects of the case.

Individuals who believe they may have been a victim in this case should visit www.fbi.gov/hashflare for more information.

Two Estonian nationals will make their initial appearance in the U.S. District Court in Seattle at 5:00 p.m. EDT today following their extradition from Estonia to the United States to face criminal charges related to their roles in a massive multi-faceted cryptocurrency Ponzi scheme.

Sergei Potapenko and Ivan Turõgin, both 39, were arrested on Nov. 20, 2022, in Tallinn, Estonia, on an 18-count indictment filed in the Western District of Washington.

According to the indictment, Potapenko and Turõgin allegedly induced hundreds of thousands of victims to purchase contracts entitling them to a share of virtual currency mined by the defendants’ purported cryptocurrency mining service, HashFlare. Potapenko and Turõgin allegedly claimed HashFlare operated a massive cryptocurrency mining operation. Cryptocurrency mining is the process of using computers to generate cryptocurrency, such as Bitcoin, for profit. Potapenko and Turõgin allegedly offered contracts which, for a fee, allowed customers to rent a percentage of HashFlare’s purported mining capacity.  In exchange, HashFlare agreed to pay out the virtual currency produced by the contract holders’ portion of the operation. Between 2015 and 2019, customers from around the world allegedly entered into more than $550 million worth of HashFlare contracts.

However, HashFlare allegedly did not have the virtual currency mining equipment it professed to have and engaged in less than one percent of the Bitcoin mining activity it claimed. According to the indictment, when investors asked to withdraw their mining proceeds, Potapenko and Turõgin could not pay the investors with the mined currency they had promised. Instead, Potapenko and Turõgin either resisted making the payments or paid off the investors using virtual currency they purchased on the open market—not currency they had mined. According to the indictment, Hashflare continued offering contracts for virtual currency mining through August 2019.

In May 2017, Potapenko and Turõgin offered investments in a company called Polybius, which they said would form a bank specializing in virtual currency. Potapenko and Turõgin allegedly promised to pay investors dividends from Polybius’ profits.  Potapenko and Turõgin raised at least $25 million and used approximately $7 million of HashFlare proceeds in this scheme and allegedly transferred most of the money to other bank accounts and virtual currency wallets they and their co-conspirators controlled. Polybius never formed a bank or paid any dividends.

Victims of the defendants’ schemes paid more than $575 million to the Potapenko and Turõgin companies. Potapenko and Turõgin allegedly used shell companies and phony contracts and invoices to launder the fraud proceeds and to purchase real estate and luxury cars. The indictment alleges that the money laundering conspiracy involved at least 75 real properties, six luxury vehicles, cryptocurrency wallets, and thousands of cryptocurrency mining machines.

Potapenko and Turõgin are charged with conspiracy to commit wire fraud, 16 counts of wire fraud, and one count of conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison on each count.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Tessa M. Gorman for the Western District of Washington; Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office made the announcement.

The FBI is investigating the case.

The United States thanks the Cybercrime Bureau of the National Criminal Police of the Estonian Police and Border Guard for its support with the investigation. The Justice Department’s Office of International Affairs provided significant investigative assistance and in securing the arrest and extradition of Potapenko and Turõgin. U.S. Customs and Border Protection also assisted in facilitating the defendants’ entrance to the United States.

Trial Attorneys Adrienne E. Rosen and David Ginensky of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Seth Wilkinson and Sok Jiang for the Western District of Washington are prosecuting the case. Assistant U.S. Attorney Jehiel Baer for the Western District of Washington is handling asset forfeiture aspects of the case.

Individuals who believe they may have been a victim in this case should visit www.fbi.gov/hashflare.  

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Seattle – A former King County Jail guard pleaded guilty today in U.S. District Court in Seattle to bribery and distributing methamphetamine and fentanyl pills, announced U.S. Attorney Tessa M. Gorman. Former jail employee Mosses Ramos, 40, of Milton, Washington had been a King County jail guard for 17 years before he was fired last year. When sentenced by U.S. District Judge Ricardo S. Martinez 0n September 13, 2024, Ramos will face up to 20 years in prison.

According to records filed in the case, between March and May 2023, Ramos accepted bribes to bring about a pound of methamphetamine and 100 fentanyl pills into the jail for the benefit of inmates Michael Anthony Barquet, 37, and Francisco Montero, 25. Both men are currently incarcerated. Montero is facing trial in King County Superior Court for a double homicide. Barquet is scheduled for trial on drug and bribery charges in October 2024.

The web of bribes and drug trafficking extended outside the jail with three female coconspirators who are alleged associates of the two inmates: Neca Silvestre, 38, of Kent; Katrina Cazares, 38, of Burien; and Kayara Zepeda Montero, 27, of Seattle. All three remain charged in the case.

Bribery is punishable by up to 10 years in prison. Drug distribution is punishable by up to 20 years in prison.

While Ramos has accepted responsibility and pleaded guilty, the other defendants in this case have not and are presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the FBI and the King County Sheriff’s Office with support from the King County Prosecuting Attorney’s Office.

The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Vince Lombardi.

Seattle – A King County couple, arrested after law enforcement discovered a drug lab and cache of firearms and explosives inside their RV were indicted today for possession of fentanyl with intent to distribute and unlawful possession of a machinegun, announced U.S. Attorney Tessa M. Gorman. Braiden F. Wilson, 28, is also charged with unlawful possession of destructive devices, and unlawful possession of silencers. Wilson and his partner, 30- year-old Chandler B. Bennett were arrested following a May 12, 2024, shooting in rural King County. They will be arraigned on the grand jury indictment next week.

According to the indictment and the criminal complaint filed in the case, King County Sheriff’s deputies first encountered the couple when Wilson was shot in the arm. The deputies noticed that the RV had surveillance cameras and asked to get access to the recorded video to identify the assailant. Bennett refused to allow law enforcement to enter the RV, so they sought a warrant from a King County Judge.

When law enforcement entered the RV, they found a large cache of weapons as well as fentanyl powder, tablets containing fentanyl, and sundry items associated with the manufacture of tablets, including a manual pill press. Law enforcement located more than two and a half kilograms of fentanyl pills. Law enforcement seized 17 firearms, body armor, silencers, and ballistic shields. They also found gun parts made from 3D printers – making them untraceable. There were multiple destructive devices and literature on the chemistry and manufacturing of explosives, as well as literature on how to convert firearms to fully automatic capability.

Possession of fentanyl with intent to distribute in this quantity, is punishable by a mandatory minimum ten years in prison and up to life in prison. Possession of a machinegun is punishable by a maximum sentence of 15 years and a fine of up to $250,000. Possession of destructive devices and possession of silencers are each punishable by a maximum sentence of ten years imprisonment and a fine of up to $10,000.

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

The case is being investigated by Homeland Security Investigation (HSI), the King County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the United States Postal Inspection Service (USPIS), the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA), with assistance from the Washington State Patrol.

The case is being prosecuted by Assistant United States Attorneys Casey Conzatti and Brian Wynne.

bennett-wilson_complaint.pdf wilson-bennett_indictment.pdf

Seattle – A 30-year-old New York City man was sentenced today in U.S. District Court in Seattle to 42 months in prison for three counts of wire fraud and two counts of bank fraud related to his abuse of the COVID-19 Pandemic Paycheck Protection Program (PPP), announced U.S. Attorney Tessa M. Gorman. Donte McClellon was a resident of Seattle when he submitted falsified documents to obtain $500,948 in loan proceeds from three different financial institutions in May and June 2020. At today’s sentencing hearing U.S. District Judge Lauren King noted that the societal costs of these crimes are serious, saying that the crimes affected taxpayers and diverted funds from struggling small businesses. Judge King added that McClellon had never accepted responsibility for his crimes, and he used the money to fund investments and personal expenses.

“The negative effects of McClellon’s crime go beyond the financial loss. His fraudulent applications clogged an overtaxed application system and stole valuable resources from lending institutions working tirelessly to distribute money,” said U.S. Attorney Gorman. “McClellon even attempted to cut the line in front of actual small businesses. His fraud was not a one-time error in judgment, but rather a calculated attempt to take advantage of the relief systems set up for businesses struggling because of the COVID-19 pandemic.”

According to records filed in the case, McClellon used the names of three limited liability corporations he had once registered in the State of Washington to make his claims. Each of the entities, ‘Frostlake,’ ‘Cannonlake,’ and ‘Skylake’ LLC, had been inactive and showed no signs of business activity in any state or federal registries in the years leading up to the pandemic. Nevertheless, in May and June 2020, McClellon submitted Paycheck Protection Program applications claiming the entities each had as many as 13 employees and, in one case, gross receipts of more than $1.6 million. McClellon forged multiple Internal Revenue Service forms to make it appear the three companies were operating real estate, wholesale, or retail businesses, with employees who would benefit from the Paycheck Protection Program loans. McClellon claimed the businesses operated out of his home address in Seattle. The investigation revealed there was no business activity at that address.

In two cases, McClellon asked lenders to distribute the loan funds to bank accounts that McClellon had set up just days before he made the loan applications. The third loan went to McClellon’s personal bank account. McClellon consolidated most of the fraudulent proceeds in his personal account. McClellon used the money to pay his rent on a Manhattan apartment, for travel and gym memberships, and some $20,000 on Uber rides among other personal, non-business expenses.

The case was investigated by The FBI Seattle Field Division with assistance from FBI New York and the Small Business Administration Office of Inspector General (SBA-OIG).

The case was prosecuted by Assistant United States Attorneys Lauren Watts Staniar, Jessica Murphy Manca, and Krista Bush.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Tacoma – The final defendant of a two-man drug distribution crew was sentenced today in U.S. District Court in Tacoma to ten years in prison, announced U.S. Attorney Tessa M. Gorman. Dustin Carl Wurges, 37, was arrested November 8, 2021, with a large load of drugs, three firearms, and three sets of body armor in the Chevy Tahoe he was riding in. The driver of the car, Jonathan Mayhall was sentenced to ten years in prison on March 4, 2024. At that sentencing hearing, U.S. District Judge Benjamin H. Settle said, “Fentanyl has become a plague in this community and across the country… we know it has fatal consequences. The quantities that you brought here could well have contained a dose that would have caused someone to die.”

According to records filed in the case, law enforcement became aware of Wurges and Mayhall’s drug activity as they investigated an Aryan prison gang involved in trafficking drugs in the Puget Sound region. In November 2021, the men set up a drug deal with contacts in southern California. Initially they were taking $50,000 to purchase controlled substances, but when the prices seemed low, they upped their budget by an additional $200,000. As the two men returned from California, law enforcement monitored their progress. At a rest area in Thurston County Washington law enforcement arrested the men. In the car, law enforcement seized more than four kilograms of fentanyl, nearly two kilograms of cocaine, more than a kilogram of heroin, two and a half kilograms of methamphetamine, two firearms, three ballistic vests, money counters, and more than $87,000 in cash. Law enforcement seized an additional pistol from the purse of a female co-conspirator who was riding in the vehicle.

Wurges entered a guilty plea in the case in October 2023. Both the prosecution and defense agreed to recommend a sentence of ten years in prison with five years of supervised release to follow prison.

At the sentencing hearing today, Judge Settle said, “This is a very serious crime because of the wake of damage it leaves behind.”

The investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office.

The case is being prosecuted by Assistant United States Attorneys Zach Dillon and Max Shiner.

Seattle – Two men connected to a northern border people smuggling scheme made their initial appearances in U.S. District Court in Seattle today, announced U.S. Attorney Tessa M. Gorman. Jesus Ortiz-Plata, 45, of Independence, Oregon, and Juan Pablo Cuellar Medina, 35, of Everett, Washington were arrested yesterday with three non-citizens who had been smuggled into the United States from Canada. The arrests are the result of a lengthy investigation by Homeland Security Investigation’s Border Security Enforcement Team (BEST).

“These defendants have allegedly been linked to an extremely dangerous smuggling scheme where people are loaded into freight cars on trains traveling from Canada into the U.S.,” said U.S. Attorney Gorman. “Being locked in a freight train car is dangerous – there is no control over the heat, cold, or ventilation, and people can be injured or killed by shifting freight. In one dangerous instance last August, some 29 people were rescued from a boxcar filled with plastic pellets.”

Since late 2022, as Border Patrol and investigators encountered non-citizens who had illegally attempted to cross the border, a phone number later linked to Ortiz-Plata kept coming up as the number the non-citizens were supposed to contact. Ortiz-Plata was identified, and law enforcement got court permission to locate the signal from his cell phone.  On Thursday, Ortiz-Plata traveled from his home in Oregon and was followed from Seattle to an apartment in Everett.  He left the apartment with three men – all non-citizens.  All four were taken into custody.  Two had crossed the border in a freight train car and one claimed he had walked across the border and been picked up on the U.S. side.  Medina was the resident of the apartment where the men had been staying. Medina was arrested and was identified by one non-citizens as the person who had picked him up after they crossed into the U.S.

Conspiracy to commit illegal transportation of a non-citizen for private financial gain is punishable by up to ten years in prison and a $250,000 fine.

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

The case is being investigated by Homeland Security Investigations, the Border Security Enforcement Team, U.S. Border Patrol, and Border Patrol Air and Marine Group.

The case is being prosecuted by Assistant United States Attorney Celia Lee.

Seattle – A 23-year-old Puyallup, Washington, man was sentenced today to 15 years in prison for production and possession of images of child sexual abuse, announced U.S. Attorney Tessa M. Gorman. Shawn Stone was arrested at Sea-Tac airport in August 2022, as he returned from a family trip to Germany. At the sentencing hearing, U.S. District Judge Richard A. Jones talked about the impact on victims of child sexual abuse saying, “The damage to young children doesn’t stop, it goes on a lifetime…. Their pain continues and their suffering continues.”

The FBI identified Stone as a person sharing images of child sexual abuse on an online platform in the summer of 2022. When stopped and arrested at the airport, Stone admitted to sexually molesting children in Germany on a 2019 trip. Stone filmed that abuse, producing some of the images that were later disseminated online. Stone also admitted acquiring and sharing images involving the rape and torture of very young children. Stone pleaded guilty in January 2024.

Following the prison term, he will be on 25 years of supervised release and will be required to register as a sex offender.

At a future date, Judge Jones will determine the amount of restitution Stone owes the various victims depicted in his collection of images of child sexual abuse. More than 20 victims have filed claims which still must be reviewed by attorneys involved in the case.

The case was investigated by the FBI with assistance from the Washington State Patrol, Tacoma Police Department, Pierce County Sheriff’s Department, Washington Department of Corrections, and US Army.

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

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

Tacoma – The co-owner of two Clark County automotive businesses was convicted today of conspiracy and eleven felony counts of violating the federal Clean Air Act for tampering with diesel trucks’ emissions monitoring systems, announced U.S. Attorney Tessa M. Gorman. Tracy Coiteux, 44, of La Center, Washington, is the co-owner of Racing Performance Maintenance Northwest (known as RPM) and a related sales company called RPM Motors and Sales NW. A jury convicted Coiteux following a three-day jury trial. The jury deliberated for three hours before returning the guilty verdicts.  U.S. District Judge Benjamin H. Settle scheduled sentencing for August 19, 2024.

An indictment returned in May 2021, charged Coiteux and her husband, Sean Coiteux, 50, and the service manager, Nick Akerill, 44, with conspiracy to violate the Clean Air Act and eleven specific violations of the Clean Air Act for tampering with the emissions-monitoring system on vehicles when removing pollution control equipment between January 2018 and November 2020.

Sean Coiteux pleaded guilty in March 2024 and is scheduled for sentencing on August 13, 2024. Akerill pleaded guilty to state pollution charges and was sentenced to work 30 days on a Clark County work crew.

According to records filed in the case and testimony at trial, the investigation began when a former RPM employee notified the EPA that the company was performing the unlawful modifications, which are known as “deletes” and “tunes.” A single truck that has been deleted and tuned can cause the same amount of pollution as up to 1,200 trucks with compliant emissions systems. These modifications are marketed to truck owners as improving vehicle power and performance. 

The investigation revealed that between January 2018 and January 2021, the defendants charged their customers fees of about $2,000 per truck to remove (delete) emissions control systems required by federal law. They then modified (tuned) legally required software that works to ensure the vehicle’s pollution remains within legal limits. RPM Motors and Sales sometimes offered, as part of the sale of a truck, to remove the emissions control system after the customer purchased a truck. Email and other electronic records document the conspirators’ purchase of equipment and software kits to remove the pollution control and reprogram the monitoring systems. 

When agents executed a court authorized search warrant in January 2021, they found some of the emissions parts that had been removed and the replacement tailpipes. They found records detailing some 375 instances of removal of the emissions control hardware and software. 

Over the three years described in the court records, the defendants took in more than $500,000 for the modifications that violate the Clean Air Act.

Conspiracy is punishable by up to five years in prison. Each violation of the Clean Air Act is punishable by up to two years in prison and a $250,000 fine. The actual sentence will be determined by Judge Settle after considering the sentencing guidelines and other statutory factors.

The case is being investigated by Environmental Protection Agency’s Criminal Investigation Division. 

The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Cindy Chang and Environmental Protection Agency Special Assistant United States Attorney Karla Gebel Perrin.

Tacoma – A Brazilian National with multiple convictions for domestic violence assault, was sentenced today in U.S. District Court in Tacoma to 30 months in prison for federal felonies charging illegal possession of firearms, lying in connection with the purchase of firearms, falsely claiming U.S. citizenship, and unlawful possession of a firearm silencer, announced U.S. Attorney Tessa M. Gorman. Joao Ricardo DeBorba, 48, of Vancouver, Washington, has been detained at the Federal Detention Center at SeaTac since he was convicted at a bench trial in February 2024. He was sentenced today by Chief Judge David G. Estudillo.

According to records filed in the case, DeBorba entered the United States on a tourist visa in 1999. DeBorba overstayed the visa and falsified documents to work in the U.S. and to acquire firearms. In April 2019, while purchasing firearms in Portland and Lebanon, Oregon, and Lacey, Washington, DeBorba entered false information on government forms stating he was a U.S. citizen. Shortly after the first three gun purchases, DeBorba was arrested for drunken driving and was found to have a Glock pistol.

Despite that arrest, DeBorba continued to purchase firearms: a rifle in Gresham, Oregon, and a revolver in Vancouver, Washington, again providing false information about his citizenship on required forms.

In November 2019, DeBorba was arrested for domestic violence assault. DeBorba was served with a “No Contact” order and was instructed to surrender all of his firearms. On November 16, 2019, DeBorba was arrested for violating the no contact order and 20 firearms were seized from his residence.

In January 2022, DeBorba was convicted in a second case of domestic violence assault. He was again informed that he could not possess firearms.

When law enforcement served a search warrant at DeBorba’s residence, agents seized five firearms: three AR-15 style rifles with no serial numbers or manufacturers marks and two handguns – one without any serial number or manufacturers mark. The firearms, so-called “ghost guns,” appear to have been manufactured from parts ordered online.

In addition to the guns, DeBorba had a large amount of ammunition, a workbench with firearms parts and tools, firearms silencers, magazines, and various gun cases.

In asking the court for a five-year prison term, Assistant United States Attorney Max Shiner wrote to the court, “following his first reported domestic violence incident, DeBorba’s conduct only became more troubling. He increased his threatening conduct toward his wife. He threatened his roommates, who feared him because they knew he was accustomed to carrying a rifle with him. Despite having firearms seized from him, he replenished his cache of weapons and ammo, and began to obtain ghost guns as well as a firearm silencer, a highly restricted weapon under federal law.”

The case was investigated by the FBI, with assistance from the Vancouver Police Department, U.S. Immigration and Customs Enforcement (ICE), the Bureau of Alcohol, Firearms & Explosives (ATF), and the Social Security Office of Inspector General (SSA-OIG).

The case is being prosecuted by Assistant United States Attorney Max Shiner.

The case is US v. DeBorba CR22-5139-DGE

Seattle – A 56-year-old Portland, Oregon, man appeared in Federal Court today, following a six-week investigation by Homeland Security Investigations and the Seattle Internet Crimes Against Children Task Force, announced U.S. Attorney Tessa M. Gorman. Marc David McCool was arrested May 16, 2024, when he arrived at a Seattle area hotel, allegedly intending to sexually abuse fictitious 7 and 11-year-old children. When arrested McCool had various items reflective of his sexual interest in abusing children: condoms, baby oil, rope, and stuffed animals.

According to records filed in the case, McCool responded to an ad posted on social media by an undercover law enforcement agent. Over more than six weeks of “chats” via the Kik Messenger App, McCool allegedly described his sexual interest in children, his sexual abuse of other victims, and the types of “trophies” he kept from those prior criminal sexual acts. Ultimately, McCool made arrangements to travel to Seattle allegedly believing he would sexually abuse two young children. He was arrested after he traveled by train and a rideshare to the meet location.

McCool is charged with attempted enticement of a minor and travel with the intent to engage in a sexual act with a minor.

Attempted enticement of a minor is punishable by no less than 10 years to lifetime imprisonment. Traveling with the intent to engage in a sexual act with a minor is punishable by up to 30 years imprisonment.

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

The case is being investigated by Homeland Security Investigation as part of the Seattle Police Department Internet Crimes against Children Task Force (ICAC).

The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.

U.S. v McCool MJ24-297

Seattle – A federally convicted Ponzi schemer who fled before sentencing, will do 156 months in prison for his fraud convictions, with an additional 16 months in prison for absconding before his original sentencing hearing, announced U.S. Attorney Tessa M. Gorman. Volodimyr Pigida, 49, a Miami area resident who previously resided in Bellevue, Washington, was ultimately arrested October 24, 2023, after a three-hour standoff with agents in South Florida. At his sentencing hearing today, U.S. District Judge Ricardo S. Martinez told Pigida that he had abused the court’s “trust” by fleeing from justice. The judge also described Pigida’s fraud as an “extensive, elaborate, complex scheme” that caused “immense harm” for his victims.

“Accountability has been a long-time coming for Mr. Pigida,” said U.S. Attorney Gorman. “His refusal to accept responsibility for defrauding thousands of victims continues to this day and is reflected in the significant sentence imposed in this case.”

In December 2022, Pigida was found guilty by a jury in the Western District of Washington of 26 felony counts, including conspiracy, wire fraud, mail fraud, and bankruptcy fraud, among other crimes.

In his $11 million Ponzi scheme Pigida defrauded thousands of victims. Pigida and his wife, Marina Bondarenko, operated a ‘work-at-home’ email scheme named Trend Sound Promoter. The couple sold ad-promoting packages whereby those who bought a package were to be paid for email marketing. The couple made claims to those purchasing the packages that they could make big money for sending emails on Trend Sound’s behalf. In reality, the only significant money being generated was from those purchasing the packages, and it was used to pay earlier purchasers as in a typical Ponzi scheme. The scheme ultimately crashed – but not before the two raided the company’s accounts to purchase homes, expensive cars, and a yacht.

On August 4, 2023, Pigida failed to appear at his sentencing hearing before the district court in Seattle. A warrant was issued for his arrest. Pigida is a naturalized U.S. citizen who was born in Ukraine. Initially, there were indications that Pigida might have fled to war torn Ukraine. Ultimately, law enforcement discovered him hiding in a secret room of a relative’s home in Parkland, Florida. He was pulled from hiding after a standoff with police.

Assistant United States Attorney Philip Kopczynski described Pigida’s conduct in his sentencing brief, writing: “Defendant Volodimyr Pigida has shown nothing but contempt for this Court, the government, and the jury that heard the case against him. Last July, with his sentencing hearing looming on 26 felony convictions, Pigida fled. He sent a letter insisting he’s done nothing wrong, and insulting Your Honor, the prosecutors, and everyone else involved in his case. Through the diligent efforts of federal law enforcement, he was eventually found. He was arrested hiding behind a false wall in a relative’s house in Florida. Agents had to literally drag him out.”

Pigida and his wife were indicted for conspiracy and mail, wire, and bankruptcy fraud in November 2018. In September 2019, Bondarenko pleaded guilty to bankruptcy fraud and was sentenced to 38 months in prison. 

The case was investigated by the FBI and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Philip Kopczynski.

Seattle – A federal grand jury in Seattle indicted a 30-year-old South Haven, Michigan, man for traveling with intent to engage in a sexual act with a minor, announced U.S. Attorney Tessa M. Gorman. Keith Daniel Freerksen was arrested in South Haven Township on January 31, 2024, following an investigation that stretched from western Washington to Michigan.

According to records filed in the case, the 14-year-old went missing on January 5, 2024. A local police detective requested help from the FBI. An agent who specializes in Violent Crimes Against Children and Human Trafficking investigations occurring in Snohomish, Skagit, Whatcom, Island, and San Juan counties quickly assisted. By analyzing information on Uber rides that had been purchased for the victim by an unknown person, law enforcement was able to identify Freerksen, a registered sex offender in Michigan, as a potential suspect. Using information on Freerksen’s registered vehicle, they were able to trace his movement across the northern tier of states using license plate readers. The readers also captured Freerksen’s return trip through Idaho and Illinois in the days after the teen went missing.

When the police in South Haven Township served a search warrant at the request of the FBI, they recovered the victim and arrested Freerksen. He was ultimately transported to Western Washington and is being detained at the Federal Detention Center at SeaTac.

Traveling with intent to engage in a sexual act is punishable by up to 30 years in prison and a $250,000 fine.

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

The case is being investigated by the Skagit County Sheriff’s Office, local police, and the FBI.

The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.

Seattle – Thirteen people indicted in a significant drug trafficking investigation are being sought by law enforcement with 10 of them in custody tonight, announced U.S. Attorney Tessa M. Gorman. The defendants are named in three different indictments for a drug trafficking scheme. Two additional defendants were arrested today on criminal complaints.

“These defendants were brazenly bringing large loads of drugs to western Washington and didn’t hesitate to arm themselves with high-powered firearms,” said U.S. Attorney Gorman. “Even after law enforcement seized the drugs in various traffic stops in Oregon and Washington, they were not deterred.”

The lead indictment names ten members of the conspiracy to distribute controlled substances, including fentanyl, methamphetamine, cocaine, and alprazolam. Lead defendant Hector Duran Aldaco, 23, of Federal Way, Washington is also charged with using a firearm in relation to a drug trafficking crime. Others named in the indictment include:

Damian Pina-Raymundo, 19, of Enumclaw, Washington

Daniel Moreno, 24, of Federal Way, Washington

Rogelio Pena, 21, of Tacoma

David Padilla, 22, of Kent, Washington

Neldin Licona Rivera, 33, of Seattle

Sebastian Esquivel Rojas, 20, of Federal Way, Washington

A second indictment charges Salina Rose Atsemet, 26, of Renton, Washington for possession of cocaine with intent to distribute it for a seizure on February 27, 2024, where one kilo of cocaine and two firearms were taken by law

enforcement.

In a third indictment, Brian Axel Pedraza Cisneros, 20, and Jose Rodolfo Aguilar Cortes, 21, both of Federal Way, Washington, are indicted for a conspiracy to distribute controlled substances for a seizure of 14 kilos of cocaine and one firearm on March 24, 2024, in Lewis County.

The indictments call for forfeiture of items linked to the criminal conduct including firearms that were seized in the case.

In the investigation prior to the arrests today, law enforcement seized: 59 kilograms of fentanyl pills, 81 kilograms of methamphetamine, 21 kilos of cocaine and eleven firearms.

Two additional defendants who were involved in the drug trafficking activity were arrested on criminal complaints today:

Brian Garcia Lopez, 23, of Kent, Washington and

Otis Lee Dew, 25, of Puyallup, Washington

Today alone law enforcement seized an additional 12+ kilograms of

methamphetamine, more than 14,000 fentanyl pills, a half-kilogram of cocaine and 42 firearms. 

“Drugs and guns are a dangerous combination and this group had large amounts of both, posing a grave threat to Western Washington, “said David. F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The Drug Enforcement Administration is thankful to our Federal, state, and local partners who worked with us tirelessly on this case to safeguard the lives of our community endangered by this group.”

“Today’s enforcement action demonstrates the strength of partnerships around the region in keeping our communities safe.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “It’s satisfying to know the illegal drugs and weapons seized are now off the streets. The FBI and our partners will continue investigating these cases and holding those responsible accountable.”

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

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

This case was investigated by the Drug Enforcement Administration (DEA), FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Seattle Police Department, Oregon State Police, Portland Police Department, California Highway Patrol, the Los Angeles Strike Force, U.S. Customs and Border Protection, and Centralia Police Department.

This case is being prosecuted by Assistant United States Attorneys Casey Conzatti and Elyne Vaught.

Seattle – A 39-year-old Indian citizen was convicted of abusive sexual contact aboard an aircraft late yesterday in U.S. District Court in Seattle, announced U.S. Attorney Tessa M. Gorman. The jury deliberated about four hours following a three-day jury trial. Abhinav Kumar was arrested at Seattle-Tacoma International Airport on Sunday February 18, 2024, after groping the breast of a juvenile sitting near him on the aircraft. Abhinav Kumar was remanded to custody and faces up to two years in prison when sentenced on August 1, 2024.

According to records in the case and testimony at trial, the victim was traveling with family members who were sitting in the seats in front of the victim and across the aisle from the victim. The Emirates flight was from Dubai to Seattle. Kumar was seated in a window seat with an open center seat between him and the victim. Kumar engaged the 17-year-old in conversation and asked her to meet him for coffee. She politely declined the invitation.

Later, while the victim was trying to sleep under a blanket, Kumar spread his blanket over himself and over the middle seat. The on-board video shows the movement of his arm under the blanket reaching toward the victim.

The victim awoke to feel a hand under her blanket, and she pulled away. The hand returned, moving up her arm, then inside her shirt, and eventually reaching her breast. The victim froze at first but then got up and asked her mother to come to the bathroom with her.

The Emirates crew was notified, and they alerted law enforcement to meet the plane. Law enforcement interviewed the victim and family members and spoke with the defendant. He was arrested on a criminal complaint and then was indicted by the grand jury.

In closing argument, Assistant United States Attorney Sanaa Nagi talked about how the victim was frozen with fear: “Nobody expects for a person to grope them on a flight… The defendant did not expect the victim to be brave enough to report him.”

Abusive sexual contact is punishable by up to two years in prison.

The case was investigated by the FBI with assistance from the Port of Seattle Police and Customs and Border Protection.

The case is being prosecuted by Assistant United States Attorneys Miriam Hinman and Sanaa Nagi.

Seattle – A fast moving investigation resulted in the seizure of a large amount of fentanyl and four federal arrests, announced U.S. Attorney Tessa M. Gorman. The investigation began in late March with undercover agents setting up initial drug deals. The case culminated with arrests and seizures on May 9, 2024. The four defendants appeared today in U.S. District Court in Seattle.

“This quick work by federal and local law enforcement will save lives with 16 kilos of fentanyl powder and tens of thousands of pills taken off the street,” said U.S. Attorney Gorman. “With deadly fentanyl overdoses occurring at a rate of two a day in King County alone, we are focused at getting as much fentanyl as we can off the streets and out of circulation.”

“Fentanyl traffickers threaten the lives of our community for profit, and this amount of fentanyl represented over 1.6 million potentially lethal doses,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The Drug Enforcement Administration and our partners work tirelessly to stop those who would bring this tragedy to our communities and this case is another example of the power of teamwork to make us all safer.”

According to the criminal complaint, undercover agents working with Homeland Security Investigations posed as well-funded drug customers. They set up a deal to purchase kilos of fentanyl powder and pills. Elvin Irias-Escoto, 22, of Honduras, who lived in Renton, agreed to supply the drugs. DEA Tacoma agents surveilled Irias-Escoto and his coconspirators as they packed boxes, a backpack, and a cooler into a car at a Renton apartment complex. The four conspirators drove to the Bellingham area where they had set the drug sale for a shopping center parking lot. The defendants showed law enforcement two boxes which contained 15 packages of just over 15 kilograms of fentanyl powder.

Ultimately all four men were arrested. In addition to Irias-Escoto, these three defendants are charged in the case:

Selvin Ponce-Maradiaga, 26, of Honduras, living in Renton, WA

Sammy Maradiaga-Escoto, 20, of Honduras, living in Federal Way, WA

Hector Rosales-Martinez, 24 of Honduras, Washington residence unknown

In addition to the fentanyl powder, law enforcement seized a firearm that was in the car. A search of the Renton apartment by agents resulted in the seizure of an additional 60,000 fentanyl pills, another kilogram of fentanyl powder and multiple boxes of ammunition.

“Today's successful operation, resulting in four arrests and the seizure of a significant quantity of fentanyl, underscores the importance of collaborative efforts between HSI and our law enforcement partners,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This joint investigation exemplifies the dedication and coordination necessary to combat the scourge of illicit drugs in our communities. We remain committed to working together to disrupt criminal networks and protect the safety and well-being of our citizens."

"I cannot overstate the gravity of this fentanyl seizure and the pivotal role of our collaborative partnerships, said Tobin Meyer, Commander of the Skagit County Interlocal Drug Enforcement Unit (SCIDEU). “This operation epitomizes the effectiveness of pooling resources and expertise across agencies. Through unified efforts, we send a clear message to drug traffickers: we will relentlessly pursue you, disrupt your operations, and safeguard our communities from the devastating impact of illicit substances."

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

This case was the result of coordinated work between HSI, DEA, FBI, Skagit County Interlocal Drug Enforcement Unit, Whatcom County Sheriff’s Office, Customs and Border Protection Office of Field Operations, Customs and Border Protection Air and Marine Operations, and U.S Border Patrol.

The case is being prosecuted by Assistant United States Attorneys Yunah Chung and Jehiel Baer.

Seattle – Stephen Baird, the former CEO of S-Ray, Inc., pleaded guilty today in U.S. District Court in Seattle to wire fraud, announced U.S. Attorney Tessa M. Gorman. Baird, 68, formerly of Bainbridge Island, Washington, defrauded investors by making false statements about S-Ray’s product development and falsely claiming the company had obtained FDA authorization to market a dental device. Baird is scheduled for sentencing by U.S. District Judge Richard A. Jones on August 2, 2024.

Baird claimed S-Ray had developed an innovative ultrasound device that could take the place of X-rays, allowing dentists to quickly and safely image patients’ mouths. Baird falsely told investors that the Food and Drug Administration (FDA) had granted S-Ray “market clearance” to sell the device when, in fact, S-Ray never obtained FDA authorization to sell any device.

At a court hearing today, Baird admitted to engaging in a scheme to defraud S-Ray’s investors in connection with his promotion and sale of S-Ray stock. The Court will determine at a future hearing the amount of loss investors sustained and other facts relating to Baird’s fraudulent scheme.

Charging documents allege Baird’s scheme began in 2012 and defrauded some 200 investors of $10.75 million. The documents allege Baird told investors their funds would be used to bring a product to market, but Baird instead used at least 62% of the money – some $6.7 million – for his and his family’s personal expenses, including to purchase a luxury car and a house on Bainbridge Island.

Under the plea agreement, Baird agreed to pay restitution to investors and to forfeit property in amounts to be determined by the Court. The government agreed to recommend no more than seven years in prison.

The Securities and Exchange Commission filed a civil securities fraud action against Baird and S-Ray in March 2022. On January 6, 2023, the Honorable John H. Chun issued an order that imposed civil penalties against Baird and S-Ray, held them liable for disgorgement of investment funds, and enjoined Baird from serving as an officer or director of certain companies and from participating in certain types of securities transactions.

The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson and Special Assistant United States Attorney Jessica M. Ly.

Seattle – U.S. Attorney Tessa M. Gorman today announced the resolution of a False Claims Act qui tam matter alleging a Tacoma physician billed government insurance programs for medically unnecessary spinal surgeries. CHI Franciscan Health and St. Joseph Medical Center will pay $745,654 to resolve the matter and former Orthopedic Surgeon Kevin Schoenfelder will pay $197,054 to resolve the case.

“Unnecessary surgeries put patients at risk of medical complications,” said U.S. Attorney Gorman. “In this case we are concerned about protecting taxpayer funded health care, but even more concerned that patients may have needlessly suffered when enduring procedures that were more invasive than was necessary.”  

According to the settlement agreement, on May 21, 2018, Dr. Daniel Nehls filed a qui tam lawsuit alleging Dr. Schoenfelder had been performing medically unnecessary spinal surgeries, among other allegations. CHI resolved claims that the hospital billed for Dr. Schoenfelder’s performance of spinal surgery at more spinal levels than necessary and medically unnecessary spinal fusions at Tacoma’s St. Joseph Hospital. Dr. Scheonfelder resolved claims pertaining to his performance of allegedly medically unnecessary spinal surgeries. Between January 1, 2013, and June 30, 2018, these surgeries were billed to government health programs when they were not medically necessary. The surgeries were billed to Medicare, TRICARE, and Veterans Affairs. 

In resolving the case, neither the doctor nor the hospital and CHI Franciscan are admitting wrongdoing. Each is paying the government health programs the amount that was improperly billed and additional penalties. Additionally, Dr. Nehls, as the relator who reported the false claims, will receive 22% of the payments to the government health programs.

Dr. Schoenfelder retired in 2018 and surrendered his physician license in 2019.

“Health care providers who perform medically unnecessary procedures compromise the integrity of Federal health care programs and expose their patients to potential harm,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This outcome demonstrates that HHS-OIG along with our law enforcement partners will relentlessly pursue those who abuse taxpayer-supported health care programs.”

“Subjecting veterans to unnecessary medical procedures at the expense of the taxpayer will not be tolerated. Such activities put at risk VA’s ability to provide timely, quality healthcare within the local community,” said Acting Special Agent in Charge Gregory S. Phelan of the VA Office of Inspector General’s Northwest Field Office. “The VA OIG will continue to work with our law enforcement partners to ensure the integrity of VA’s programs and services.”

“This settlement sends a message to doctors that patient safety and the integrity of our healthcare programs, including the Department of Defense's TRICARE program, are paramount,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS remains committed to working with its law enforcement partners in protecting the integrity of federal healthcare programs, which facilitates an environment for our healthcare providers to be truly focused on quality patient care and safety.”

The settlement resolved a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties known as relators to file suit on behalf of the government for false claims and to share in any recovery. The qui tam suit is captioned United States ex rel. Daniel Nehls v. Catholic Health Initiatives et. al, C18-540-BHS.

The resolution of this case was handled by Assistant United States Attorneys Kayla Stahman and Nickolas Bohl.

Seattle – A 33-year-old resident of Sacramento, California was ordered detained today in U.S. District Court in Seattle on a misdemeanor charge of Assault in a special aircraft jurisdiction, announced U.S. Attorney Tessa M. Gorman. Breanna R. Mistler was arrested at Sea-Tac Airport when the Delta flight from Puerta Vallarta, Mexico arrived on May 1, 2024. Today, Magistrate Judge Brian Tsuchida ordered Mistler detained pending trial noting that the 2-year-old child victim was particularly vulnerable.

According to the criminal complaint, multiple passengers on the flight observed Mistler abuse the child. One reported that the child was in the window seat and Mistler in the aisle seat. The child woke-up Mistler, who then turned and allegedly kicked the child. At another point in the flight a witness reported Mistler allegedly shook the child “like a rag doll.” Despite interventions from passengers, Mistler allegedly persisted in the abuse.

Customs and Border Protection officers detained Mistler at the airport and noted bruises in multiple places on the toddler. The Port of Seattle Police and the FBI took over the investigation.

The child was cared for by a victim witness specialist. Child Protective Services (CPS) is involved with placing the child with a relative.

In ordering Mistler detained today at the Federal Detention Center at SeaTac, Judge Tsuchida said he was concerned about the safety of the child “because (Mistler) had committed the assaults in front of so many people on a lengthy plane trip.” The Judge said he had an independent duty to protect the victim.

The next hearing scheduled in the case is a preliminary examination scheduled for May 16, 2024.

The charges contained in the misdemeanor 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 handled by Assistant United States Attorney Carolyn Forstein. Assistant United States Attorney Mike Dion assisted with the detention hearing.

Seattle – The Justice Department joins its partners across the federal government, as well as people throughout American Indian and Alaska Native communities, in recognizing May 5 as National Missing or Murdered Indigenous Persons (MMIP) Awareness Day.  In recognition of MMIP Awareness Day, Attorney General Merrick B. Garland announced ongoing efforts to tackle the MMIP and human trafficking crisis in American Indian and Alaska Native communities, and other pressing public safety challenges such as the fentanyl crisis in Tribal communities.

“There is still so much more to do in the face of persistently high levels of violence that Tribal communities have endured for generations, and that women and girls, particularly, have endured,” said Attorney General Merrick B. Garland. “In carrying out our work, we seek to honor those who are still missing, those who were stolen from their communities, and their loved ones who are left with unimaginable pain. Tribal communities deserve safety, and they deserve justice. This day challenges all of us at the Justice Department to double down on our efforts, and to be true partners with Tribal communities as we seek to end this crisis.”

“As I meet with each of our 25 Tribes, safety in our indigenous communities is always top of mind. At every visit we hear how fentanyl is impacting tribal communities and the need to prosecute outsiders dealing drugs that put tribal members at risk,” said U.S. Attorney Tessa M. Gorman. “We are working to stop the flow of fentanyl and are working to build the law enforcement relationships that are critical if a tribal member goes missing. This outreach to our sovereign tribal partners is one of the most critical and rewarding parts of my job as U.S. Attorney.”

Justice Department Prioritization of MMIP Cases

Last July, the Justice Department announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions.

In the Northwest Region, Cedar Wilkie Gillette will serve as the MMIP coordinator working out of the District of Oregon. Wilkie Gillette is expanding her work from Oregon to the Northwest region. Wilkie Gillette will gather reliable data to identify MMIP cases connected to Northwest tribes; conduct outreach with tribal communities to assist in the creation and implementation of community action plans; coordinate with tribal, local, state, and federal law enforcement in the development of protocols and procedures for responding to and addressing MMIP cases; and promote improved data collection and analyses throughout the Northwest.

Adding to the Northwest MMIP team, Assistant United States Attorney Bree R. Black Horse was sworn in May 2, 2024, as the MMIP AUSA to lead regional efforts in addressing MMIP. Western Washington Tribal Liaisons J. Tate London and Michael Harder attended the ceremony on the Yakama Nation. AUSA Black Horse will work out of the U.S. Attorney’s Office in Yakima.

The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to U.S. Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022. 

 

Addressing Violent Crime and the Fentanyl Crisis in Indian Country

As noted in the joint response to the NIAC, research suggests that certain public safety challenges faced by many American Indian and Alaska Native communities—including disproportionate violence against women, families, and children; substance abuse; drug trafficking; and labor and sex trafficking—can influence the rates of missing AI/AN persons.

Further, fentanyl poisoning and overdose deaths are the leading cause of opioid deaths throughout the United States, including Indian county, where drug-related overdose death rates for Native Americans exceeds the national rate.

Therefore, federal law enforcement components are ramping up efforts to forge stronger partnerships with federal and Tribal law enforcement partners to address violent crime and the fentanyl crisis, which exposes already vulnerable communities to greater harm.  In the Western District of Washington federal, tribal, and state law enforcement worked together to arrest and prosecute drug dealers impacting tribal communities:

A Monroe man dealing heroin and fentanyl; A Bellingham man dealing fentanyl while armed; and a Maple Falls man was sentenced to six years in prison.

Accessing Department of Justice Resources

Over the past year, the Department awarded $268 million in grants to help enhance Tribal justice systems and strengthen law enforcement responses. These awards have also gone toward improving the handling of child abuse cases, combating domestic and sexual violence, supporting Tribal youth programs, and strengthening victim services in Tribal communities.

For additional information about the Department of Justice’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website.

Click here for more information about reporting or identifying missing persons.

Seattle –A 45-year-old Vashon Island, Washington resident was sentenced today in U.S. District Court in Seattle to 20 years in prison for 21 federal felonies related to human trafficking and forced labor, announced U.S. Attorney Tessa M. Gorman. Jesus Ruiz-Hernandez, aka Christo Jesus Escobar Solares, was found guilty in January 2024 following a 13-day jury trial. At the sentencing hearing, U.S. District Judge James L. Robart said that after observing Ruiz-Hernandez through the trial he saw “a complete lack of respect for the truth.”

“For years, Jesus Ruiz-Hernandez lived a lie. He presented himself as the upstanding and hardworking owner of a successful landscaping business on Vashon Island. In reality, Ruiz-Hernandez was neither hardworking nor law-abiding,” said U.S. Attorney Gorman. “His business model was premised on enticing vulnerable persons from Mexico to come to the United States to work for his company – and then exploiting them by forcing them to work for him for little to no money while using their debts and immigration status to keep them tethered to him as his source of cheap labor.”

“The crimes committed here will leave a scar on the victims and the entire community that Ruiz-Hernandez conned into believing that he lawfully supported, that he was pursuing the American dream when he was in fact subjecting would be workers into a life of subjugation,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “I’m thankful for our task force partnerships that result in a resounding win in the fight against human trafficking and am especially grateful to both the Department of Justice and the Seattle Police Department, as it is through their key collaborations that these complex investigations are accomplished.”

Records filed in the case and testimony at trial revealed that Ruiz-Hernandez lured victims from his hometown of Vista Hermosa, Michoacan, with the promise of a better life for their families. In exchange, Ruiz-Hernandez required victims to put up collateral, including the temporary relinquishment of parental rights and interest in family properties. Ruiz-Hernandez, using smugglers he hired, brought the undocumented victims to the U.S. and then forced them to work for his company, Brothers Landscaping, on Vashon Island. He then charged the victims exorbitant fees for rent, food, and other expenses, housed them both in his home and worker properties and held ever increasing debts over their heads. 

In the spring of 2017, Ruiz-Hernandez used smugglers to bring an adult victim to the United States and then used force, threats of force, and physical violence to force the victim to work for him without pay. The jury found Ruiz-Hernandez committed aggravated sexual abuse against the victim. From 2018 until August 2021, Ruiz-Hernandez forced a second victim he had brought to the U.S. to work for him by threatening him with harm. The victim was also transported and harbored for financial gain. In all, Ruiz-Hernandez was convicted of exploiting the labor of seven people not legally in the U.S.

In asking for a sentence of more than 24 years in prison, prosecutors noted that the criminal conduct in this case had gone on for more than seven years and likely involved more than the seven victims. “Ruiz-Hernandez treated his victims as nothing more than commodities to earn him money. He either refused to pay them at all, claiming that they owed him for outrageously inflated amounts for rent and other expenses, or paid them well below what they had earned. He treated them as indentured servants, forcing them to perform unpaid labor both at his house and at the rental properties.”

Ruiz-Hernandez was also convicted of six counts of money laundering. Testimony revealed that Ruiz-Hernandez and his brothers had deposited over $1.5 million in checks from customers to their bank account between 2017 and 2022. Much of those funds were payment for the work done by the victims and others the defendant illegally brought to the U.S., trafficked, harbored, and exploited. Ruiz-Hernandez took steps to keep his name off corporate documents, financial records, numerous transactions, and hundreds of thousands of dollars of international wires to Mexico. Ruiz-Hernandez and his co-conspirators used some of that laundered proceeds to purchase two pieces of property on the island.

Following the trial on the human and labor trafficking counts, the jury determined that the properties on Vashon were purchased with laundered proceeds of his illegal scheme and ordered that the properties should be forfeited to the government.

The case was investigated by Homeland Security Investigations (HSI) Task Force Officer Megan Bruneau Zentner. Detective Zentner is with the Seattle Police Department, assigned to the HSI Task Force. Detective Zentner’s position is federally funded by the Department of Justice’s Enhanced Collaborative Model with a focus on investigating labor trafficking of foreign-born victims.

The case was prosecuted by Assistant United States Attorneys Kate Crisham, Jehiel Baer, and former Assistant United States Attorney Jocelyn Cooney. Ms. Crisham is the Western District of Washington coordinator of efforts to stop human trafficking.

Seattle – This year the theme of National Crime Victims’ Rights Week is “How Would You Help: Options, Services, and Hope for Crime Survivors.” U.S. Attorney Tessa Gorman joined a panel at Seattle City Hall to discuss the work of our Victim Witness Unit to assist those who are impacted by federal crimes.

“Whether it is making sure a victim of sexual assault is supported while they confront their assailant in court, or ensuring a victim of a financial crime has the opportunity to seek restitution, our victim witness staff put people first,” said U.S. Attorney Gorman. “They are on the front lines of law enforcement, helping victims pick-up the pieces and move forward after devastating events. It is difficult work, and I salute those who are devoted to helping others, this week, and every week.”

U.S. Attorney Gorman was joined by King County Prosecutor Leesa Manion, the Supervisor of the Seattle City Attorney’s Office Domestic

Violence Unit Lorna Staten-Sylvester, Washington State Senate Deputy Majority Leader Manka Dhingra, and Sexual Violence Law Center Director Riddhi Mukhopadhyay.

The panelists discussed how victim services and advocacy have evolved over the last several years. U.S. Attorney Gorman highlighted efforts to get restitution for victims of crimes through our Financial Litigation Unit. Additionally, U.S. Attorney Gorman noted how our office collaborates with community-based victim support groups, the King County Prosecuting Attorney’s Office, and the City Attorney’s Office through organizations such as the anti-human trafficking group WashACT.

This year, for the first time, the U.S. Attorney’s Office is making Awards of Excellence to law enforcement partners who have made great contributions to our work and our district. The Victim Witness 2024 Excellence Award is being presented to National Park Service Special Agent Susannah (Sanny) Lustig. Special Agent Lustig is credited with “revolutionizing how the National Park Service responds to victims.” In fact, Special Agent Lustig has an additional role with the National Park Service as the Victim Assistance Program Manager. She is a Child Forensic interviewer and assists other law enforcement agencies in this role. The U.S. Attorney’s Office Victim Witness Unit noted that Agent Lustig does a top-notch job of supporting victims and trains others in the National Park Service on best practices for assisting victims. The award cites two federal cases where Agent Lustig was especially effective in victim support: U.S. v. Turrey and U.S. v. Chapman.

The award for Lustig and for other law enforcement officers will be presented next month.

Seattle – The former bookkeeper of a Mukilteo, Washington, flooring company was sentenced today in U.S. District Court in Seattle to three years in prison for four counts of wire fraud, one count of aggravated identity theft, and one count of conspiracy, announced U.S. Attorney Tessa M. Gorman. Jodi Hamrick, who now resides near Memphis, Tennessee, was convicted following a five-day jury trial. At the sentencing hearing U.S. District Judge Richard A. Jones said Hamrick “had a pattern and practice of defrauding employers… and continued her manipulation for personal gain.” Judge Jones noted Hamrick “was motivated by pure greed. There was no justification, no hardship, no financial need.”

According to records filed in the case and testimony at trial, Hamrick conspired with David M. Gluth, the co-owner of Gluth Contract Flooring, to steal from the company and defraud the silent partner who had put up the money for the business. In the jury trial, prosecutors detailed how Hamrick and Gluth carried out the scheme by embezzling more than $400,000 from the commercial flooring business. Between 2011 and 2016, Gluth and Hamrick raided the company accounts to pay for everything from a home mortgage, to luxury vacations, to Nordstrom bills.

The two not only raided company funds, they also defrauded financial institutions by taking out loans without the knowledge or permission of the company’s co-owner. The two used the company funds for a variety of personal expenses. The lies and deceit in this scheme involved forged signatures, forged documents, altered records, secret bank accounts, secret credit cards, false bookkeeping entries, and false statements in declarations and court filings. The evidence in the case included years of Skype instant messages between Hamrick and Gluth, showing the planning and execution of the fraud in minute detail.

Ultimately, the company co-owner had to go to court to try to get the truth about the embezzlement from the company. The flooring company went bankrupt in 2016, and the victimized business partner was left with nothing but debt.

In imposing the sentence requested by prosecutors, Judge Jones highlighted the fact that Hamrick had stolen from an earlier employer but was not prosecuted for that theft. “You didn’t learn from it, you used it as an opportunity to get an advanced degree in theft,” Judge Jones said.

Judge Jones will determine how much restitution Hamrick must pay at a hearing scheduled for June 21, 2024. Hamrick will be on supervised release following prison for three years.

Gluth was charged in November 2020, and pleaded guilty in January 2021. Gluth was sentenced in 2021 to two years in prison and agreed to a restitution figure of $325,000. 

The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Michael Dion and Special Assistant United States Attorney Jessica M. Ly.

Seattle – A 47-year-old Inglewood, California, man was sentenced today in U.S. District Court in Seattle to 16 months in prison for an email compromise scheme that stole more than $3.3 million from two companies involved in manufacturing ferries and engines for those ferries, announced U.S. Attorney Tessa M. Gorman. Leslie Redd III, pleaded guilty to conspiracy to commit wire fraud and wire fraud. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez noted the severe impact that the crime had on the victim businesses and their employees, causing employees’ pay to be delayed and cut, and threatening the businesses’ viability. 

According to records filed in the case, including the plea agreement, in October 2018, Redd entered a scheme with a co-conspirator in Pennsylvania and others. The scheme began when a malicious link was sent to an email address of an employee at the engine-building company. The link allowed the conspirators to gain access to the company’s email system and review various emails, including those transmitting invoices. The conspirators then posed as a billing executive at the engine manufacturing company and sent the boat-building company instructions to wire the payment funds to a specific bank account. The conspirators had set up a fake company and the account at a Pennsylvania bank specifically to receive these funds. The false emails indicated the engine-building company’s usual bank account was undergoing an audit and said that the engine-building company therefore needed to use a different bank than it had previously. 

On October 29, 2018, the boat builder paid the invoice for $3,316,730 by wiring the funds as directed by the fraudulent emails. The co-conspirator in Pennsylvania quickly forwarded $3,074,500 to bank accounts controlled by Redd and other co-conspirators. Of the ill-gotten funds, Redd kept $857,350 in accounts he controlled. Investigators were able to seize $420,817 from those accounts.

In the sentencing memo, prosecutors describe how Redd, forwarded more than $2,000,000 of the money that he had received to China to other co-conspirators – people whose names he did not even know. Judge Martinez expressed particular concern that American citizens would help foreign criminals defraud fellow Americans.

Redd will be on three years of supervised release following prison. He was ordered to pay $2,802,368.24 in restitution (the amount of the outstanding loss).

The case was investigated by the FBI Seattle Office Cyber Task Force.

The case was prosecuted by Assistant United States Attorney Andrew Friedman and former Assistant United States Attorney Siddharth Velamoor.