Eastern District of Washington
Press releases recorded for this federal judicial district.
Drug “Take Back Day” to Take Place Saturday, October 29 in the Eastern District of WashingtonRead the Press Release
Spokane – United States Attorney for the Eastern District of Washington Vanessa Waldref announced that Saturday, October 29, 2022, from 10:00 a.m. to 2:00 p.m. is DEA National Prescription Drug Take Back Day. This marks the 23rd bi-annual event in the eleven-year history of the Drug Take Back initiative. Drug Take Back Day gives the public the opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous, expired, unused, and unwanted prescription drugs.
The United States Attorney’s Office for the Eastern District of Washington will be partnering with the Drug Enforcement Administration (DEA), Spokane Police Department, and other community partners at Northtown Mall, 4750 North Division, located in the northwest corner of Division Street and Queen Avenue in Spokane.
At its last Take Back Day in April 2022, the DEA collected more than 720,000 pounds of expired, unwanted, and unused prescription medications. Over the 11-year span, DEA’s National Prescription Drug Take Back Day has brought in more than 15.9 million pounds of prescription drugs. With studies indicating a majority of abused prescription drugs come from family and friends, including from home medicine cabinets, clearing out unused medicine is essential. Of those numbers, Washington State collected prescription drugs at approximately 117 collections sites operated by the DEA and its state and local law enforcement partners.
“I am committed to reducing tragic drug overdose deaths. By participating in events like Prescription Drug Take Back Day, federal, state, local, and tribal community leaders can help remove expired narcotics from our communities, prevent medication misuse, and make Eastern Washington safer and stronger,” U.S. Attorney Waldref stated. “Drug take back events are one way our community can positively impact the opioid crisis and protect loved ones. Prescription drug misuse and overdose deaths do not discriminate – they can impact individuals of any age, race, gender or demographic.”
“The DEA is committed to making our communities safer and healthier by driving down overdose deaths and poisonings through targeted enforcement and community-based initiatives like DEA’s National Prescription Drug Take Back Day,” said Jacob D. Galvan, Acting Special Agent in Charge of the DEA Seattle Field Division. “For over a decade, National Take Back Day has encouraged the public to remove unneeded medications from their homes as a first step in preventing medication misuse and opioid addiction from ever starting. This year there are 76 collection sites in Washington, 26 of them are in Eastern Washington.”
“Everyday our community sees the fallout from drug addiction. Many Spokanites have lost loved ones to overdose deaths, and these numbers are only increasing,” Spokane Police Chief Craig Meidl stated. “In 2021, the Spokane County Medical Examiner reported an astonishing 285% increase in overdose deaths compared to 2020 in our county. Drug Take Back Day is one of many approaches we are taking to limit exposure of our loved ones and friends to drugs that may be easily accessible or are no longer needed.”
In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day. The FDA provides information on how to properly dispose of prescription drugs. To find out where year-round disposal sites are located, go to https://www.fda.gov/consumers/consumer-updates/where-and-how-dispose-unused-medicines.
For more information about Annual Prescription Drug Take Back Day, go to www.DEATakeBack.com
Cusick Man Sentenced to 168 Months in Federal Prison for Fentanyl TraffickingRead the Press Release
Spokane, Washington – United States District Judge Thomas O. Rice sentenced Antoinne James Holmes, age 23, of Cusick, Washington, to 168 months in federal prison after Holmes had pleaded guilty on April 7, 2022 to Conspiracy to Distribute Fentanyl. Holmes’ sentence will run concurrently with a 151 month sentence imposed for related conduct in Idaho. Holmes was also ordered to serve 5 years of supervised release upon completion of his prison time and to pay restitution.
According to court documents, Holmes, along with a co-defendant, was a distributor of fentanyl laced pills in both Eastern Washington and Idaho. On both May 14, 2020 and November 16, 2020, Holmes was contacted by law enforcement in Eastern Washington and found to be in possession of fentanyl laced pills and firearms. Holmes’ fentanyl trafficking directly impacted many lives in Eastern Washington and Idaho. On August 28, 2020, Holmes distributed fentanyl to a sixteen-year-old in Bonner County, Idaho, who subsequently died of a fentanyl overdose. Holmes was prosecuted for that distribution in the District of Idaho and sentenced to a concurrent 151 months’ imprisonment. On November 16, 2020, Holmes and his co-defendant used fentanyl in the presence of a five-month-old baby. The child overdosed on fentanyl but survived. Holmes was also identified as a fentanyl distributor to a Newport, Washington man, who subsequently died of a fentanyl overdose.
United States Attorney Vanessa R. Waldref, who is the Chief Federal Law Enforcement Officer in the Eastern District of Washington, stated, “Our hearts go out to every person and family affected by this terrible drug. As a result of Mr. Holmes’ involvement in distributing fentanyl, a family is morning the loss of their sixteen-year-old child. This significant sentence reflects how Mr. Holmes was caught with fentanyl not once, but twice, and put other children at risk. I am grateful for the joint efforts of our law enforcement partners, who work every day to keep Eastern Washington safe and strong by removing this poison from our communities.”
“Unfortunately, this is another tragic example that One Pill Can Kill,” said Jacob D. Galvan, Acting Special Agent in Charge of the DEA Seattle Field Division. “We will continue to work with all our state, local, and federal partners to hold accountable individuals like Mr. Holmes and ensure we keep our communities safe and healthy.”
The case was investigated by the Drug Enforcement Administration, the Spokane County Sheriff’s Office, the Pend Oreille County Sheriff’s Office, the Newport Police Department, the Sandpoint Police Department, and the Idaho State Police. This case was prosecuted by Michael J. Ellis, Assistant United States Attorney for the Eastern District of Washington.
Spokane Man Sentenced to 180 Months in Federal Prison for Prolific Drug TraffickingRead the Press Release
Spokane – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Corey A. Darilek, age 41, of Spokane, Washington, was sentenced today in federal court in Spokane, Washington. Judge Thomas O. Rice sentenced Darilek to 180 months in federal prison, followed by a 5-year term of supervised release. In July 2022, Darilek pled guilty to Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine, in violation of 21 U.S.C. § 841(a)(1), (b)(1)(A)(viii).
According to court documents, the Spokane Police Department was investigating Darilek’s drug-trafficking activities in the Spokane area, after he was identified as a significant drug distributor. The investigation led to a search warrant of Darilek’s Spokane-area home as well as several of his vehicles. The Spokane Police Department located over one pound of methamphetamine as well as heroin, multiple firearms, and approximately $10,000 in cash. Darilek told law enforcement he had been a drug trafficker for an extended period and was involved in large-quantity deals, including a recent 20-pound methamphetamine transaction with individuals in Montana. Darilek estimated he received multiple pounds of methamphetamine and several ounces of heroin per week from his supplier, which Darilek then distributed to customers in the Spokane area.
After Darilek’s arrest, he was released by the court to attend in-patient drug treatment based on his asserted methamphetamine addiction. Shortly after his release, Darilek terminated himself from the drug treatment program and a warrant issued for his arrest. After his re-arrest, he was again released by the court to drug treatment. Shortly after his second release, Darilek again terminated himself from his drug treatment program and another warrant issued. Darilek was a fugitive for almost one year before he was re-captured. Because of Darilek’s failure to comply with his release conditions and fugitive status, Judge Rice enhanced Darilek’s sentence.
United States Attorney Waldref commended the joint efforts of law enforcement for working to keep the Eastern District safe: “Mr. Darilek imported and distributed large-quantities of methamphetamine into the Spokane area. Then, after the Court afforded him numerous opportunities to enter drug treatment, he absconded twice and became a fugitive.” U.S. Attorney Waldref continued, “This “The sentence imposed on Mr. Darilek should put those on notice who seek to bring harm to our sentence removes Mr. Darilek from the community for fifteen years and reiterates my office’s commitment to ensuring that those who distribute dangerous narcotics in Eastern Washington are held accountable.”
communities by distributing illegal narcotics,” said Jacob D. Galvan, Acting Special Agent in Charge of the DEA Seattle Field Division. “The DEA, along with its partners, will pursue them and hold them accountable no matter how long it takes.”
“The nexus between drugs and criminal activity, including violence, is well established and has impacted our community in very unhealthy and destructive ways. SPD is committed to collaborating with our regional partners in our relentless pursuit to hold accountable those who deal drugs in our community and prey on people trapped in addiction,” stated Spokane Police Chief Craig Meidl.
This case was investigated by the Spokane Police Department as well as the Drug Enforcement Administration.
Assistant United States Attorney Caitlin Baunsgard of the Eastern District of Washington handled this matter on behalf of the United States.
Moses Lake Man Sentenced to 204 Months in Federal Prison for Drug Trafficking and Firearm OffensesRead the Press Release
Spokane, Washington – United States Attorney, Vanessa R. Waldref, announced today that United States District Judge Thomas O. Rice sentenced Guillermo Valdez, age 34, of Moses Lake, Washington, to 204 months in federal prison after Valdez had pleaded guilty on April 20, 2022 to two counts of Possession with Intent to Distribute 500 or More Grams of Methamphetamine and two counts of Felon in Possession of a Firearm. Valdez also was sentenced to 5 years of supervised release.
According to court documents, on February 24, 2021, Valdez participated in a residential burglary in Spokane County, Washington, during which Valdez stole eleven firearms. Valdez, along with a co-defendant, trafficked the stolen firearms, one of which was used during a homicide of a child in Othello, Washington, days after the burglary on February 27, 2021. Later, on April 2, 2021, a trooper with the Washington State Patrol attempted to pull Valdez over. Valdez, while driving 90-100 miles per hour, was observed throwing a bag which contained a pistol and 822 grams of methamphetamine from the vehicle. Valdez was detained while hiding in a tree after crashing his vehicle through a fence. Further, on July 7, 2021, Valdez was arrested at his residence in Moses Lake, Washington. Valdez’s residence was searched and 604 grams of methamphetamine was recovered, some from inside his minor child’s bedroom.
United States Attorney Waldref, who is the Chief Federal Law Enforcement Officer in the Eastern District of Washington, stated, “Mr. Valdez endangered his community by distributing large quantities of illegal narcotics, trafficking in stolen firearms, leading police on a high speed chase, and keeping distribution quantities of methamphetamine in a child’s bedroom. Here, Mr. Valdez’s distribution of illegal narcotics and firearms directly led to the homicide of a child and placed another child in danger. I’m grateful for the joint efforts of federal, state, and local law enforcement, who helped bring Mr. Valdez to justice and who work tirelessly to keep our communities safe and our neighborhoods strong.”
Assistant United States Attorney Earl A. Hicks, who was one of the lead prosecutors on the case, stated after the sentencing, “I’m grateful for the law enforcement team that investigated this case. Each day, these agents and officers serve their community, and they often do so at significant personal sacrifice. I’m honored to serve alongside such dedicated public servants as we work together to address violent crime and drug distribution in Eastern Washington.”
“Mr. Valdez’s brazen conduct clearly warranted this significant sentence,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “ATF is committed to keeping members of our communities safe from violent criminals such as Mr. Valdez.”
“We will continue to work with our partners at all levels to ensure individuals like Mr. Valdez no longer threaten the health and safety of our communities,” said Jacob D. Galvan, Acting Special Agent in Charge of the DEA Seattle Field Division.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the United States Marshals Service, the Othello Police Department, the Moses Lake Police Department, the Spokane County Sheriff’s Office, the Grant County Sheriff’s Office, and the Washington State Patrol. These cases were prosecuted by Earl A. Hicks and Michael J. Ellis, Assistant United States Attorneys for the Eastern District of Washington.
U.S. Attorney’s Office to Open a Staffed Branch Office in Tri-Cities, WashingtonRead the Press Release
Richland, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, today announced that a fully-staffed branch of the United States Attorney’s Office will be opening in Richland, Washington. At a press event earlier today, U.S. Attorney Waldref stated, “The number of cases prosecuted by the Richland Division of my office has risen significantly over the last two decades. As the number of cases continued to grow, it became clear that we need dedicated Assistant United States Attorneys, who live and work in the Tri-Cities area, to support our federal, state, and local partners and ensure that criminal defendants who commit federal crimes are prosecuted to the fullest extent.”
After learning that the U.S. Attorney’s Office would opening a staffed Richland Office, Senior United States District Court Judge Edward F. Shea stated, “I am pleased to join in celebrating the expansion of the U.S. Attorney’s Office in Richland. This expansion will strengthen the ongoing Federal-Local law enforcement efforts in Southeastern Washington for the benefit of all who live here.”
The Richland Division of the U.S. Attorney’s Office is in the Richland Courthouse and Federal Building, which is located at 825 Jadwin Avenue in Richland, Washington. Since 2019, the U.S. Attorney’s Office has prosecuted an average of approximately 70 cases each year arising in the Richland Division. While the U.S. Attorney’s Office has continued to prosecute a large volume of cases in Richland, the federal prosecutors handling these cases have been traveling from Spokane and Yakima to appear for hearings in Richland’s federal courthouse.
The U.S. Attorney’s Office for the Eastern District of Washington represents the United States in federal litigation, both criminal and civil, in the twenty Washington counties east of the crest of the Cascade Mountains. The Eastern District is home to approximately 1.5 million people, of which approximately 400,000 live in the Tri-Cities metropolitan area. The U.S. Attorney’s Office is responsible for enforcing federal criminal, civil, administrative, and tax laws. The Office works closely with federal, state, and local partners with one primary purpose: To ensure that justice is done in each individual case. The Richland Office, when it is fully staffed, is expected to have two fulltime Assistant United States Attorneys and one legal assistant.
“Many of the most significant federal cases and crimes we prosecute involve conduct in the Tri-Cities area,” said U.S. Attorney Waldref. She continued, “When I became the United States Attorney a little over a year ago, one of my top priorities was to build upon the work that the Department of Justice has been doing in the Tri-Cities. Today’s announcement is a realization of our goal to ensure the United States Attorney’s Office has a permanent and staffed presence serving Benton, Franklin, and Walla Walla Counties. We are fortunate to already have Special Assistant United States Attorney Laurel J. Holland, who has prosecuted state and federal cases in the Tri-Cities area since 2009. In the coming months, we anticipate that two additional AUSAs and will be joining SAUSA Holland in our Richland Office to pursue justice on behalf of the Tri-Cities area and throughout all of Eastern Washington.”
The following are some of the significant recent federal cases prosecuted out of the Tri-Cities area:
• Ayoola Taiwo Adeoti, 4:22-CR-06005-SAB, indictment for business email compromise, money laundering, and bank fraud conspiracy involving fraud of approximately three quarters of a million dollars from the Benton County government;
• HPM Corporation; 4:22-MJ-07038-JPH, global criminal and civil fraud settlement in March 2022 recovering $3 million from Hanford Site prime contractor for fraudulent COVID-19 relief claims under the Paycheck Protection Program;
• Ali Abed Yaser, et al., 4:21-CR-6042-SMJ, twenty-three people indicted in January 2022, for an alleged staged automobile accident scheme;
• Cody Easterday, 4:21-cr-06012-SAB, sentenced to 11 years and $244 million in restitution in October 2022 for a massive fraud scheme involving fictitious cattle;
• U.S. ex rel. Avila v. Sunrhys, LLC, 4:21-cv-05013-TOR, civil prosecution involving civil rights violations and housing fraud, resulting in July 2022 recovery of significant civil penalties and other remedial measures for a landlord in Walla Walla that was overcharging tenants and fraudulently obtaining federal subsidies intended to assist homeless veterans;
• U.S. ex rel. Yam v. Providence Health and Services; 4:20-CV-05004-SMJ, civil fraud prosecution and recovery in April 2022 of over $22.7 million for fraudulent billing of medically-unnecessary neurosurgery procedures to Medicare and Medicaid at Providence St. Mary’s Medical Center in Walla Walla;
• Trent Drexel Howard, 4:19-CR-06036-SMJ, sentenced to 23 years in federal prison in January 2022 for child pornography offenses after being extradited from Kazakhstan;
• Julio Leal Parra et. al., 4:19-CR-06061-SAB, sentenced to 16 years for a large drug-trafficking conspiracy involving ties to the Sinaloa cartel – Parra was one of five charged defendants in the case;
• Dr. Janet Sue Arnold, 4:18-CR-6044-EFS-1, sentenced to four years in federal prison in April 2022, for conspiring to distribute medically unnecessary fentanyl patches, opioid pills and other controlled substances out of her medical practice;
• Dale Gordon Black, 4:18-CR-6029-EFS, sentenced to 30 years in prison in July 2019, for producing child pornography;
• Hector Medina, 4:18-cr-06024-SMJ, sentenced to 15 years for in an overdose death and drug-trafficking conspiracy;
• Reynaldo Perez Munoz, 4:18-CR-6008-EFS, sentenced to 26 years in transnational conspiracy to distribute fentanyl, heroin, methamphetamine, cocaine, and to launder money gained from illegal drug distribution;
• Josue Medina-Perez and Francisco Delgado, 19-CR-06018-EFS, ten-defendant transnational drug conspiracy, which was one of the first fentanyl conspiracies involving prosecution of an Arizona-based source of supply;
• Sami Anwar, 4:18-cr-5064-EFS, sentenced to more than 28 years in October, 2020, after a three-week trial for falsifying human clinical research data;
• Rosalio Emmanuel Sanchez, 4:17-CR-06014-WFN-6, sentenced to 22 years in prison in May 2019, for distributing illegal narcotics in the Tri-Cities area after a five day jury trial in Richland;
• Bechtel Corporation et al., 4:17-CV-5074-SMJ, civil fraud prosecution and recovery in September 2020 of $57.75 million from Hanford Site prime contractor for fraudulent overbilling on radioactive waste treatment plant project;
• Miles Barton Nichols, 4:16-CR-6033-EFS-1, sentenced to life in prison in 2018 after being convicted in two separate jury trial of drug trafficking and firearms offenses.
• U.S. ex rel. Savage v. CH2M Hill Plateau Remediation Company; U.S. ex rel. Savage v. Washington Closure Hanford, et al; 4:14-CV-5002-SMJ and 4:10-CV-5051-SMJ; recoveries of approximately $10 million between 2017 and 2021 from Hanford Site contractors for use of fraudulent small business front companies on Hanford Site subcontracts.
• Bechtel National Inc., 13-CV-5013-EFS, civil fraud prosecution and $125 million recovery in November 2016 from Hanford Site contractor for use of substandard materials, quality assurance violations, and improper use of federal funds for lobbying activity.
• CH2M Hill Hanford Group, 09-CV-5038-EFS, civil and criminal prosecutions of time charging fraud at the Hanford Site, resulting in twelve criminal convictions and recovery of more than $18.5 million in damages and penalties between 2012 and 2015.
Currently the Tri-Cities area is served by several federal judges: U.S. Circuit Judge for the Ninth Circuit Court of Appeals Salvador Mendoza, Jr.; Senior U.S. District Court Judge Edward F. Shea, U.S. District Court Judge Mary K. Dimke, and U.S. Magistrate Judge Alexander C. Ekstrom. Relatedly, many federal law enforcement agencies – to include the Bureau of Alcohol, Tobacco, Firearms and Explosives; Customs and Border Patrol, the Drug Enforcement Administration; FBI; Homeland Security Investigations; Department of Energy Office of Inspector General; and the U.S. Marshal’s Service to name a few – have staffed offices, agents, and task force officers in the Tri-Cities area.
Regarding the federal presence in the area, U.S. Attorney Waldref added, “We will continue to support our federal, state, and local partners who have a long-established presence in Benton, Franklin, and Walla Walla Counties. We have been working closely with our law enforcement partners in Southeast Washington for years, and are thrilled to build even stronger relationships to make our growing communities in this region safer and stronger.”
United States Attorney Vanessa R. Waldref is the Chief Law Enforcement Officer for the Eastern District of Washington. She leads an office of 29 Assistant United States Attorneys: 23 in Spokane and 6 in Yakima. In the near future, that number is anticipated to grow by at least 2 in the new staffed Richland Office.
Two Washington Men Sentenced to Decades in Federal Prison for Crimes involving Multiple Homicides and a Carjacking on the Yakama Nation on Treaty Day in 2019Read the Press Release
James Dean Cloud sentenced for committing multiple murders and a carjacking. Donovan Quinn Carter Cloud sentenced for his role in the carjacking.
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that James Dean Cloud, age 39, and Donovan Quinn Carter Cloud, age 35, were sentenced by Chief District Judge Stanley A. Bastian for crimes involving multiple murders and a carjacking in 2019. James Cloud was sentenced to four terms of life imprisonment to run consecutively. James Cloud was also ordered to pay approximately $25,000 in restitution on behalf of the homicide victims and their families. Donovan Cloud was sentenced to 327 months of incarceration for his role in the carjacking.
Following today’s sentencing, U.S. Attorney Waldref stated, “The loss of life in this case is just horrific. It is the obligation of law enforcement and the United States Attorney’s Office to seek justice for victims and their families. Not everyone who suffered a loss in this case will be able to find solace, despite the lengthy prison terms that were handed down today. Our hearts go out to everyone who lost a family member due to the senseless violence that occurred on June 8, 2019. I praise the courage of the members of our community who came forward, cooperated with law enforcement, and testified at trial.”
According to court documents and evidence elicited at the trial of James Cloud, on June 8, 2019, in White Swan, Washington, four victims were shot and left for dead at 5151 Medicine Valley Road. A fifth victim was shot in his truck while parked in the driveway. A passenger in the truck, who was also shot, was able to escape while the suspects opened fire on the truck. The suspects fled the crime scene in a stolen truck, which broke down less than ten miles from the crime scene. In search of another vehicle, the suspects armed themselves and approached a nearby home. One suspect grabbed a child playing outside and held a gun to the child’s head, while the second armed suspect pointed a shotgun at the child’s parents and demanded the keys to the family vehicle. The suspects then kidnapped the child and fled. Because of the quick thinking of the child’s parents, who yelled for the child to jump from the moving vehicle, and the bravery of the child, the minor child escaped and survived. Notably, these offenses occurred when the Yakama Nation was celebrating Treaty Day, which marks the anniversary of the signing of the Yakama Nation Treaty of 1855, the treaty that formed the Confederated Tribes and Bands of the Yakama Nation.
During the investigation into these offenses, the Yakima County Sheriff’s Office, the Washington State Patrol, the Yakama Nation Police Department, and the FBI conducted a compressive and thorough analysis of both crime scenes and the vehicles used by the suspects. The investigation revealed that each of the murder victims had been shot with a .22 caliber rifle. Ballistic evidence established that .22 shell casings found at the crime scene matched up to a .22 rifle that was discovered in a canal near the second crime scene. A frightened witness identified James Cloud as the individual who possessed the .22 caliber rifle while at the 5151 Medicine Valley crime scene. Donovan Cloud’s latent fingerprint later was discovered on the rear-view mirror of the vehicle that was stolen during the kidnapping and carjacking.
On February 28, 2022, the jury trial of James Cloud began. Over the course of several days, multiple law enforcement, citizens, victims, and expert witnesses testified. Despite being afraid for his personal safety, a courageous witness came forward and testified about what happened at the 5151 Medicine Valley crime scene. Additional members of the community and victims likewise testified about the suspects’ actions on that horrific day.
On March 9, 2022, a jury found James Cloud guilty of four counts of First-Degree Murder, Carjacking, two counts of Brandishing a Firearm in Furtherance of a Crime of Violence, Kidnapping a Minor, Assault With a Dangerous Weapon, and three counts of Discharging a Firearm in Furtherance of a Crime of Violence. On the same day, Donovan Cloud pled guilty to Carjacking and Brandishing a Firearm in Furtherance of a Crime of Violence.
Earlier today, both James Cloud and Donovan Cloud were sentenced in Yakima, Washington. Several victims and their family members spoke at the sentencing hearing and relayed how these horrific crimes impacted their lives. Many victims also prepared written statements which were submitted to the Court. Chief Judge Stanley Bastian reviewed the trial transcripts, the victim impact statements, and listened to the victims and their representatives. When Chief Judge Bastian pronounced sentence, he stated that James Cloud had “been a danger to the community for a long time,” adding that Cloud “terrorized a community and terrorized a family.” Chief Judge Bastian also expressed his heartfelt sorrow to the victims of this case.
U.S. Attorney Waldref commended the efforts of the investigators and prosecutors who worked for years to bring justice to the victims of Cloud’s crimes. U.S. Attorney Waldref stated, “The sentences that were imposed in this case demonstrate that those who victimize members of our community will be held accountable and punished to the full extent of the law. However, such lengthy sentences simply cannot substitute for the tragic loss of so many lives. The public can feel better knowing that James Cloud and Donovan Cloud are no longer roaming the streets and will no longer be able to inflict harm on the Yakama Nation. The Eastern District of Washington is undoubtably safer and more secure. I am grateful for the dedication and perseverance of the FBI, the ATF, the Yakama Nation Tribal Police, the Yakima County Sheriff’s Office, and the Washington State Patrol, who collaborated with Assistant United States Attorneys Tom Hanlon and Rick Burson to see these cases through to just results. We will continue to mourn with the victims and our hearts will forever grieve for their families.”
Assistant United States Attorneys Tom Hanlon and Rick Burson, who prosecuted the case, expressed their gratitude to the law enforcement agents and officers, who handled the case. They also recognized the many victims whose lives will never be the same. “If it were not for the combined efforts of the FBI, ATF, Yakama Nation Police Department, and Yakima County Sheriff’s Office, there would have been no measure of justice for the victims in this case,” stated AUSA Tom Hanlon.
AUSA Rick Burson added, “We cannot understate the tragedy of this case. A number of innocent victims lost their lives, and their families will never be the same. I’m grateful for the bravery and courage of the surviving victims and witnesses who came forward. Because they agreed to speak with law enforcement and testified at trial, the victims and their families are hopefully able to feel some measure of justice in this case.”
“The spree of violence perpetrated by the Cloud brothers was horrifying and senseless,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “The investigation, conducted alongside our partner agencies, demonstrates the FBI’s diligence and commitment to prioritizing the investigation of violent crimes and the impact these crimes inflict on our communities. The efforts of investigators and prosecutors hopefully provides some sense of justice for the survivors. It is my hope that today’s sentence ensures that the Cloud brothers never terrorize their community again.”
“The sheer brutality of the Clouds’ actions clearly warranted such severe sentences,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “ATF will always work to ensure that violent criminals, such as the Clouds, are held accountable for their actions.”
This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Yakama Nation Tribal Police, the Yakima County Sheriff’s Office, and the Washington State Patrol. The case was prosecuted by Tom Hanlon and Rick Burson, Assistant United States Attorneys for the Eastern District of Washington.
Kennewick Man Pleads Guilty to Conspiracy to Obstruct an Official Proceeding, Lying to the FBI, and for his role in a Staged Accident SchemeRead the Press Release
Defendant Attempted to Make the Case Go Away by Falsely Accusing an FBI Agent and Another Individual Defendant Suspected was an FBI Informant of Soliciting a $20,000 Bribe
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Ali Abed Yaser, age 52 of Kennewick, Washington pleaded guilty to conspiracy to obstruct an official proceeding, making false statements to the FBI, conspiracy to commit mail and wire fraud, conspiracy to commit healthcare fraud, and two counts of mail fraud. Yaser faces the following possible maximum statutory sentences: 20 years for each count of mail fraud, conspiracy to commit mail fraud and wire fraud, and conspiracy to obstruct official proceedings; 10 years for conspiracy to commit healthcare fraud; and 5 years for making a materially false statement to the FBI. The court also may impose a fine up to $250,000, the payment of restitution, and a 5-year term of court supervision. United States District Judge Mary K. Dimke will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Yaser is scheduled to be sentenced on January 16, 2023, at 1:00 p.m. in Richland, Washington.
U.S. Attorney Waldref stated, “Staging an automobile accident to enrich yourself negatively impacts the entire community by raising insurance rates for law-abiding drivers. Worse still, after learning he was under investigation for staging an automobile accident and defrauding insurance companies, Mr. Yaser repeatedly chose to obstruct official proceedings and conceal his violations of federal law by lying to investigators, falsely accusing an FBI agent of soliciting a $20,000 bribe, threatening a potential witness, and tampering with evidence. Yaser’s corrupt conduct threatened the integrity of the proceedings and was designed to prevent his criminal activities from ever being uncovered.”
According to court documents, in February 2019, the Federal Bureau of Investigation (“FBI”) opened an official investigation into allegations that several individuals were involved in a scheme to defraud insurance companies by staging automobile accidents, and filing false and fraudulent claims with insurance companies, in violation of federal criminal laws. As part of the investigation, the FBI used a confidential human source (CHS) who covertly recorded conversations with individuals suspected of being involved in the staged accident scheme. A federal grand jury in the Eastern District of Washington later convened to further investigate Yaser and his co-defendants’ scheme.
During the investigation, the FBI discovered that on May 28, 2019, Yaser staged an automobile accident on County Route 12 in Benton County, Washington. The staged accident involved a Hyundai Sonata, driven by another individual being purposely driven into a Lexus IS driven by Yaser. At the time, a credit union had a lien of approximately $30,018.78 on the Lexus. Yaser subsequently filed fraudulent insurance claims representing that he was involved in an accident and suffered bodily injury and wage loss. Yaser was never injured because he was not even in the vehicle at impact. An insurance company paid Yaser and others approximately $126,990.
In May 2020, the FBI executed warrants to search several residences in Washington and California for evidence of federal crimes. Afterward, Yaser held a meeting at his residence because he suspected someone was providing information to the FBI and warned the CHS to be careful of that person.
In August 2020, Yaser told the CHS that he learned that the individual Yaser suspected was an FBI informant recently visited the CHS. Yaser admonished the CHS for not calling him when the suspected informant visited the CHS. Yaser told the CHS that he would have come over to his residence, closed the garage door, shut off the security system cameras, and killed the individual he suspected was the FBI informant. Yaser told the CHS “they would not have recognized his face from his foot.”
Yaser further encouraged the CHS to call the person Yaser thought was the FBI informant and to convince the person to meet with Yaser at his residence. Yaser directed the the CHS to send an audio-recording of a conversation between the CHS and the suspected informant. Yasir told the CHS, “the recording, you know, will not go to the government.” A few days later, Yaser met with the CHS and discussed plans to file a false, fictitious, and fraudulent complaint against the FBI case agent and the suspected FBI informant. Yaser also sought to persuade others to support this plan to make false allegations against the FBI case agent and the suspected informant. Specifically, Yaser wanted an audio recording of the suspected informant that Yaser could exploit and use to discredit the FBI agent in the case against Yaser.
In late August 2020, Yaser discussed fabricating a story to communicate to the local police and the FBI in furtherance of the scheme to discredit the FBI case agent and the individual Yaser suspected was an FBI informant and to make them unavailable as witnesses. Yaser’s ultimate goal was to have the FBI agent removed from the case. Yaser stated in sum and substance, “We will file a complaint with the police and the police will forward it to them [FBI]” and “[t]he police will turn it upside down on them, it won’t take half an hour and it would reach them.”
In September 2020, when interviewed by the FBI, Yaser tried to make the case against him go away by falsely accusing the FBI case agent, and the individual Yaser suspected of being an FBI informant, of soliciting approximately a $20,000 bribe from a third person. In doing so, Yaser engaged in misleading conduct toward the FBI agents with the intention of hindering, delaying, and preventing communication to these officers and a judge of the United States, of information relating to the commission and possible commission of federal offenses. He also attempted to corruptly obstruct, influence, and impede an official proceeding, that is, a federal grand jury proceeding and a criminal proceeding before a judge and court of the United States.
“Yaser and his co-conspirators went to great lengths, not only in committing crimes, but also covering them up and attempting to impugn the integrity of agents and the judicial process,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle Field Office. “There are no victimless crimes. This fraud creates a financial burden for insured drivers as their rates increase from staged accidents.”
“Yaser’s deceitful actions violated laws spanning the jurisdictions of several federal agencies. The fraud the defendant perpetrated, in part, exploited federal health care programs,” said Steven J. Ryan, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency diligently, working alongside fellow law enforcement agencies, pursues bad actors who target HHS programs.”
“Mr. Yaser took assertive actions to thwart this investigation, but, those actions ultimately failed thanks to the diligent efforts of the case agents, who investigated this case,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation, Seattle Field Office. “Mr. Yaser even lied and bullied others in hopes he could make his crime disappear. Unfortunately for him, Mr. Yaser learned that our law enforcement team does not back down when it comes to holding fraudsters accountable for their actions.”
This case was investigated by the Federal Bureau of Investigation, the United States Department of Health and Human Services, Office of Inspector General, and the Internal Revenue Service, Criminal Investigation, with the assistance of the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
Department of Justice Announces More than $1.6 Million in Federal Funding for the Yakama Nation to Address Violent CrimeRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, today announced two Department of Justice grant awards to the Confederated Tribes and Bands of the Yakama Nation. The first grant allocates $1,000,000 to target violent crimes against women. The second provides $609,751 in additional federal funding to provide services to crime victims on the Yakama Nation. Both grants were awarded on September 21, 2022.
Funding for the $1,000,000 grant was awarded by the Office on Violence Against Women, Indian Tribal Governments Program, which provides funds to Tribal nations to develop and enhance strategies for curtailing violent crimes and increasing the safety of Native American women. The Yakama Nation is one of just thirty tribes to receive funding in 2022 through the Indian Tribal Governments Program.
The second grant, totaling $609,751, was awarded through the U.S. Department of Justice’s Office of Justice Programs, Office for Victims of Crime (OVC). OVC is charged by Congress with administering the Crime Victims Fund, which supports a broad array of programs and services that focus on helping victims in the immediate aftermath of crime and continuing to support them as they rebuild their lives. Millions of dollars are invested annually in victim compensation and assistance in every U.S. state and territory.
In announcing these awards, U.S. Attorney Waldref stated, “It is critical that we work together – with our federal, state, local and Tribal partners – to address violent crime on the Yakama Nation. The citizens of the Yakama Nation deserve nothing less.” She continued, “These latest grant awards demonstrate the federal government’s continued commitment to combatting violent crime in Indian country. In fact, in the year since I became the United States Attorney, the FBI has devoted significant increased resources and personnel to fighting violent crime in the Yakima area. For example, we established an FBI Task Force targeting violent crime and drug distribution in the Yakima County. My office also works closely with federal, state, and Tribal law enforcement to diligently investigate – and where appropriate to prosecute – homicides, violent criminal offenses, suspicious deaths, and reports of Missing and Murdered Indigenous People. These combined efforts, along with the grant awards announced today, are a further indication the Department of Justice is doing its part to keep all citizens in Eastern Washington safe and strong.”
Additional information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at https://www.ojp.gov. Information regarding the Department of Justice’s Office on Violence against Women is available at https://www.justice.gov/ovw. Information about OVC is available at https://ovc.ojp.gov/.
Department of Justice Announces More than $1 Million in Grants Awarded to Kalispel TribeRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, today announced two Department of Justice grant awards to the Kalsipel Tribe of Indians – $ 609,751 in funding to provide services to crime victims on the Kalispel reservation and a $450,000 award to enhance advocacy on behalf of abused and neglected children involved in dependency proceedings within the Kalispel Tribal Court as well as in state court proceedings. Both grants were awarded on September 21, 2022.
Funding for the $609,751 grant was awarded through the U.S. Department of Justice’s Office of Justice Programs, Office for Victims of Crime (OVC). OVC is charged by Congress with administering the Crime Victims Fund (the Fund). Through OVC, the Fund supports a broad array of programs and services that focus on helping victims in the immediate aftermath of crime and continuing to support them as they rebuild their lives. Millions of dollars are invested annually in victim compensation and assistance in every U.S. state and territory. The award to the Kalispel Tribe is intended to provide services for crime victims that meet the needs identified by the community, while reflecting Tribal values and traditions.
Funding for the $450,000 grant was awarded through the U.S. Department of Justice Coordinated Tribal Assistance Solicitation. The purpose of the grant is to enhance the Tribe’s ability to advocate on behalf of abused and neglected children involved in dependency proceedings within the Kalispel Tribal Court and Pend Oreille County Court. Funding is expected to be used to retain a program manager, conduct volunteer recruitment, and to provide appropriate training. Funding also will be used to procure legal counsel and representation to protect the interests of children involved in complex legal proceedings.
In announcing these awards, U.S. Attorney Waldref stated, “For many years the Department of Justice and the Kalispel Tribe have enjoyed a strong, cooperative relationship. I’m grateful for the Tribe’s leadership in Eastern Washington and its contributions to the Spokane community. These grants will help the Tribe continue to devote resources to protecting victims, especially abused and neglected children. By allocating these resources now, we are helping future generations build safer and stronger communities on the Kalispel Reservation and throughout Eastern Washington.”
Additional information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at https://www.ojp.gov. Information about OVC is available at https://ovc.ojp.gov/.
Department of Justice Announces Grant Award to Kittitas County to Address Mental Health and Substance Abuse NeedsRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, today announced a $483,552 Department of Justice grant to the Kittitas County Sherriff’s Office. The grant provides funding to address mental health needs at the Kittitas County Jail.
The grant, which is administered by the U.S. Department of Justice’s Office of Justice Programs, was awarded on September 28, 2022. Funding is being made available pursuant to the DOJ’s Bureau of Justice and Mental Health Collaboration Program (JMHCP), which distributes resources to assist individuals with mental health and substance abuse disorders that come into contact with the justice system. JMHCP provides federal funding to achieve the following goals:
1. Enhance, expand, and operate mental health drop-off crisis stabilization treatment centers providing 24/7, year-round support for law enforcement, criminal justice agencies, and people who come in contact with the justice system;
2. Increase community workforce and capacity for certified mental health peer support specialists and increase the availability of wraparound services for supporting people with mental health disorders and co-occurring mental health and substance abuse disorders; and
3. Build and expand existing mental health collaboration programs across people and places in any part of the criminal justice system – e.g., jails, courts, and prosecutors’ offices – to mitigate the risks of recidivism for individuals with mental health and co-occurring substance abuse disorders.
The award to Kittitas County is intended to address increasing mental health needs at the Kittitas County Jail, which is located in Ellensburg, Washington. Funding will be used to hire additional staff with expertise in treating mental health disorders, to add additional training in this area for existing staff, and to provide additional resources to inmates who suffer from mental health and co-occurring substance abuse disorders. By devoting additional resources to addressing mental health needs, Kittitas County is seeking to decrease the likelihood of recidivism when inmates are released from custody.
In announcing the award, U.S. Attorney Waldref stated, “The United States Justice Department is committed to helping people that suffer from mental health challenges, who come in contact with the criminal justice system.” She continued, “The nearly $500,000 award will help ensure that inmates in Kittitas County have additional resources to get their lives on track and address what – in certain cases – is the root cause of their criminal behavior. To keep Eastern Washington safe and strong, we need to recognize and treat mental health disorders so that those who reenter our communities have the resources they need to become productive citizens.”
The Bureau of Justice Assistance (BJA) administers the JMHCP. BJA was created in 1984 to reduce violent crime, create safer communities, and reform aspects of our criminal justice system. BJA works with communities, governments, and nonprofit organizations to reduce crime, recidivism, unnecessary confinement, and promote a safe and fair criminal justice system. More information about BJA is available at https://bja.ojp.gov/about. Information specific to JMHCP is available at https://bja.ojp.gov/program/justice-and-mental-health-collaboration-program-jmhcp/overview.
Additional information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at https://www.ojp.gov/.
Eastern District of Washington Takes Part in Department of Justice’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
Spokane, Washington – The Justice Department has announced the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled maters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. The Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“From the Palouse to the Cascades, and from the small towns to the big cities, respect for our elders is a principle we can all live by in the Eastern District of Washington,” said U.S. Attorney Waldref. “Having safe and strong communities means protecting our seniors, who can be among our most vulnerable – and are often the same people who have protected all of us when we have been vulnerable ourselves.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
The following are examples of recent cases involving fraud perpetrated against older adults in the Eastern District of Washington:
• United States v. Jeffrey Carley, 1:21-cr-010: Defendant Jeffery Carley was an investment broker, who was sentenced to 60 months in federal prison for an investment scheme targeting older clients. As part of the scheme Carley stole money from his victims’ retirement accounts;
- United States v. Providence Health & Services, 4:20-cv-05004-SMJ: Two Walla Walla neurosurgeons alleged to have performed medically unnecessary spinal surgeries on elderly Medicare beneficiaries. Providence Health and Services agreed to pay $22.7 million to resolve liability, which is the largest-ever health care fraud settlement in the Eastern District of Washington;
- United States v. David Joseph Osinksi, 2-22-CR-0070-TOR: Osinksi has been indicted and charged with a $345,000 romance-fraud scheme allegedly involving an elderly victim in Spokane, Washington; and
- United States v. Ronald Walter Hannes, 2-22-CR-0085-TOR: Hannes, a registered financial advisor, indicted and charged with a $2.9 million scheme in which he allegedly defrauded a number of investors.
As part of the Eastern District’s elder fraud efforts, the U.S. Attorney’s Office engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization. This year, the Eastern District co-hosted, with the Washington State AG’s office, a conference to kick off a working group aimed at bringing together state and federal law enforcement and regulatory partners to combat health care fraud and elder abuse in the Eastern District of Washington. The working group developed and has begun to implement a detailed plan for community engagement and outreach involving state and federal partners, local government, community groups, private health insurers, and health care providers. Additionally, the Eastern District partnered with DEA on Operation Engage, which worked directly with the community, especially pharmacies and pharmacists, to educate and work with the public and health care practitioners to safeguard the community from opioids and prescription medications.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-866 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals, who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 3:00 a.m. to 8:00 p.m. PST. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rancher Sentenced for Running $244 Million “Ghost Cattle” ScamRead the Press Release
A cattle rancher in Washington was sentenced yesterday to 11 years in prison for defrauding Tyson Foods Inc. (Tyson) and another company (Company 1) out of more than $244 million by charging the victim companies for the purported costs of purchasing and feeding hundreds of thousands of cattle that did not exist.
According to court documents, Cody Allen Easterday, 51, of Mesa, used his company, Easterday Ranches Inc., to enter into a series of agreements with Tyson and Company 1 under which Easterday Ranches agreed to purchase and feed cattle on behalf of Tyson and Company 1. Per the agreements, Tyson and Company 1 would advance Easterday Ranches the costs of buying and raising the cattle. Once the cattle were slaughtered and sold at market price, Easterday Ranches would repay the costs advanced – plus interest and certain other costs – retaining the difference as profit.
“The Criminal Division is committed to holding those who carry out fraudulent schemes accountable, especially those that are complex, long-running, and seriously affect our nation’s food industry and commodities market,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
Between approximately 2016 and November 2020, Easterday submitted and caused others to submit false and fraudulent invoices and other information to Tyson and Company 1. These false and fraudulent invoices sought and obtained reimbursement from the victim companies for the purported costs of purchasing and raising hundreds of thousands of cattle that neither Easterday nor Easterday Ranches ever purchased, and that did not actually exist.
As a result of the fraud scheme, Tyson and Company 1 paid Easterday Ranches over $244 million for the purported costs of purchasing and feeding over 265,000 ghost cattle. Easterday used the fraud proceeds for his personal use and benefit, and for the benefit of Easterday Ranches, including to cover approximately $200 million in commodity futures contracts trading losses that Easterday had incurred on behalf of Easterday Ranches. In connection with his trading, Easterday also defrauded the CME Group Inc. (CME), which operates the world’s largest financial derivatives exchange, by submitting falsified paperwork, which resulted in the CME exempting Easterday Ranches from otherwise-applicable position limits in live cattle futures contracts.
“No one is above the law. Mr. Easterday amassed significant personal wealth, yet, he wanted more, so he defrauded his victims of nearly a quarter billion dollars by charging for cattle that never existed,” said U.S. Attorney Vanessa R. Waldref for the Eastern District of Washington. “But for the combined and incredible efforts of our law enforcement team, today’s sentence and the $244 million restitution award – one of the largest in our District’s history – would not have been possible. Fraud has a debilitating impact on society by draining our communities’ limited resources. Accordingly, we will continue to prosecute fraudsters to the fullest extent so we can keep our communities safe and strong in Washington State and throughout our great Nation.”
“Today’s sentence sends a strong message that individuals who commit fraud will be held accountable for the harm caused to banks, communities and the agricultural sector,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG). “The FDIC Office of Inspector General remains committed to investigating cases of swindle and deception that undermine the integrity of financial institutions, and we will continue to work with our law enforcement partners to bring to justice those who commit such offenses.”
“Cody Easterday spent years engaged in an extensive false billing scheme that resulted in millions of dollars in losses for the victim which led to sizable personal benefits for himself,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Today’s sentencing is proof that anyone who engages in deceptive practices like this will be held accountable for their actions. The Postal Inspection Service is proud to have partnered with the FDIC-OIG in this investigation.”
The FDIC-OIG and USPIS Criminal Investigations Group investigated the case.
Deputy Chief Avi Perry and Assistant Chief John “Fritz” Scanlon of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Brian M. Donovan and Russell E. Smoot for the Eastern District of Washington prosecuted the case.
Tri-Cities Rancher Sentenced to Eleven Years in Federal Prison and Ordered to Pay $244 Million in Restitution for “Ghost Cattle” FraudRead the Press Release
Defendant Sentenced in the Largest-Ever Criminal Fraud Scheme in the Eastern District of Washington
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Cody Allen Easterday, age 51, of Mesa, Washington, was sentenced by Chief District Judge Stanley A. Bastian to serve 132-months in federal prison for defrauding Tyson Foods Inc. (Tyson Foods) and another company out of more than $244 million by charging them for approximately 265,000 head of cattle that did not exist. Easterday entered into a guilty plea on March 31, 2021 to wire fraud for his $244 million “ghost cattle” scam, which is one of the largest-ever fraud schemes in the Eastern District of Washington.
At Easterday’s sentencing, Chief Judge Bastian remarked, this case involves “the biggest theft or fraud I’ve seen in my career – and the biggest I ever hope to see.” Chief Judge Bastian further remarked to Easterday that “you destroyed” the very “empire you spent so much time building. It all came to a collapse because of what you have done.” Chief Judge Bastian ordered Easterday to pay $244,031,132 in restitution, subject to offsets Easterday already paid, and imposed a three-year period of supervised release after Easterday is released from federal prison.
According to court documents and information disclosed during court proceedings, Easterday and the business he led, Easterday Ranches Inc., entered into agreements with Tyson Foods and another company (collectively the Victim Companies), whereby Easterday Ranches agreed to purchase and feed cattle on behalf of the Victim Companies. Under these agreements, the Victim Companies advanced Easterday Ranches the costs of buying and raising the cattle. After the cattle were slaughtered and sold at market price, Easterday Ranches would repay the costs advanced – plus interest and certain other costs. Easterday Ranches would then keep as profit the amount the sale price exceeded what was repaid to the Victim Companies.
Over a period of approximately four years, however, Easterday and his company collected hundreds of millions of dollars from the Victim Companies for more than a quarter million heads of cattle that Easterday and Easterday Ranches never purchased, raised, or fed. The fact is, none of these cattle ever existed; yet, Easterday and his company collected approximately $244 million for the purported costs of purchasing and raising these 265,000 “ghost cattle.”
As set forth in court filings, Easterday used most of the fraud proceeds to cover approximately $200 million in losses Easterday incurred from commodity futures trading on behalf of Easterday Ranches. In connection with these losses, Easterday also defrauded the CME Group Inc. (CME), which operates the world’s largest financial derivatives exchange, by submitting false paperwork, thereby exempting Easterday Ranches from certain position limits in live cattle futures contracts.The remainder of the $244 million Easterday stole from the Victim Companies went toward Easterday’s personal use and for the benefit of the Easterday farming empire – an empire that, by 2020, included more than 22,000 acres of farmland, 150 employees, revenues of over $250,000,000, and even a private plane and hangar.
“The Criminal Division is committed to holding those who carry out fraudulent schemes accountable, especially those that are complex, long-running, and seriously affect our nation’s food industry and commodities market,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
U.S. Attorney Waldref stated, “No one is above the law. Mr. Easterday amassed significant personal wealth, yet, he wanted more, so he defrauded his victims of nearly a quarter billion dollars by charging for cattle that never existed.” She continued, “But for the combined and incredible efforts of our law enforcement team, today’s sentence and the $240,000,00- restitution award – one of the largest in our District’s history – would not have been possible. Fraud has a debilitating impact on society by draining our communities’ limited resources. Accordingly, we will continue to prosecute fraudsters to the fullest extent so we can keep our communities safe and strong in Washington State and throughout our great Nation.”
Shortly after Easterday’s massive fraud was uncovered, Easterday Ranches and another of his companies, Easterday Farms, Inc., went into bankruptcy in the matter In re Easterday Ranches, Inc. et al., No. 21-00141-11 (Bankr. E.D. Wa.). Over the following year and a half, Easterday’s companies and their assets, including large amounts of real property, heavy farm equipment, and even aircraft, were liquidated in one of the largest bankruptcy cases in Eastern Washington history. Through the bankruptcy proceedings, the Victim Companies were able to recover approximately $65 million.
“The scale and brazenness of Mr. Easterday’s fraud is immense,” said Assistant United States Attorney Brian M. Donovan, who handled restitution and bankruptcy proceedings on behalf of the United States. “The amount he stole – nearly a quarter of a billion dollars – would have funded the combined police, courts, and fire department budget of Yakima, which is a city of nearly 100,000 people, for more than four years. Mr. Easterday’s greed destroyed his family’s farming empire and harmed innocent victims.”
This case was investigated by the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG) and U.S. Postal Inspection Service Criminal Investigations Group (USPISCI). The case was prosecuted by Deputy Chief Avi Perry and Assistant Chief John “Fritz” Scanlon of the Department of Justice Criminal Division’s Fraud Section as well as Brian M. Donovan and Russell E. Smoot, Assistant United States Attorneys for the Eastern District of Washington.
Former Washington State Correctional Officer Sentenced to Forty-Six Months in Federal Prison for Conspiring to Smuggle Drugs and Cell Phones into the Benton County JailRead the Press Release
Richland, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Eric Christian, age 34, of Kennewick, Washington, was sentenced by Chief District Judge Stanley A. Bastian to serve 46-months in federal prison for conspiring with inmates of the Benton County Jail to smuggle contraband into the jail in exchange for money. Christian, who pled guilty in December 2021 to Conspiracy to Provide Prohibited Objects to an Inmate of a Prison, was also sentenced to three-years supervised release after he completes his time in federal custody.
According to court documents and information disclosed during court proceedings, Christian, along with six co-defendants, conspired to introduce multiple cell phones, methamphetamine, heroin, suboxone strips, and other contraband into the Benton County Jail. As part of the conspiracy, which began in January and continued until April 2020, Christian and his coconspirators also provided access to dangerous offenders and gang members so that they could identify, assault, and retaliate against cooperating defendants as well as inmates charged with certain types of offenses.
“Mr. Christian was charged with protecting our community, and he breached that trust by providing dangerous criminals and gang members with access to illegal narcotics and unmonitored cell phones in the Benton County Jail,” U.S. Vanessa R. Waldref stated. “Here, a corrections officer breached the community’s trust and accepted money to break the law – exposing inmates at the jail to drugs and violence. Fortunately, this case is the exception, not the rule. I am sincerely grateful for the dedication and service of the vast majority of law enforcement officers, who work tirelessly to honor their duty to keep our communities safe and our neighborhoods strong.”
U.S. Marshal Craig Thayer stated, “Integrity throughout the criminal justice system is essential to the fair administration of justice. It is unacceptable for a public official to violate their responsibility and position of community trust. Law enforcement will not tolerate the very few who dishonor their badge, as the vast majority continue to serve with honor and integrity.”
“Mr. Christian broke his oath to serve and in doing so threatened the safety of other inmates,” said Jacob D. Galvan, Acting Special Agent in Charge of the DEA Seattle Field Division. “I thank all of our state, local and federal partners who assisted in this investigation and work tirelessly every day to ensure illegal contraband, including dangerous narcotics, are kept out of the corrections system.”
“This investigation came to a successful conclusion as a result of the efforts and teamwork of the detectives, the corrections staff, and the prosecutors involved,” stated Benton County Sheriff Tom Croskrey, “The Sheriff’s Office worked in collaboration with Benton County Corrections, the Benton County Prosecutor’s Office, and with our federal law enforcement partners.” Sheriff Croskrey continued, “We maintain a high level of expectations of those in law enforcement. When these standards are compromised and criminal conduct occurs, we will hold these individuals accountable.”
At sentencing, Chief Judge Bastian noted that Christian not only allowed phones and drugs into the jail, which threatened the stability and safety of the inmates, but he was directly responsible for allowing other inmates to be targeted and assaulted: “This abuse of trust,” and Christian’s “turning a blind eye” when other inmates were assaulted, shook the very core of a system that “depends on correctional officers to keep inmates safe.”
The case was investigated by the U.S. Marshal’s Service, Drug Enforcement Administration Tri- Cities Task Force, and the Benton County Sheriff’s Office. The case was prosecuted by Stephanie Van Marter, Assistant United States Attorney for the Eastern District of Washington.
Renton Doctor Pleads Guilty to Conspiring to Accept Kickbacks in Connection with Fraudulent Genetic Testing SchemeRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Christopher B. Bjarke, M.D., age 61, of Renton, Washington, pled guilty to conspiring to accept kickbacks in connection with a fraudulent genetic testing scheme that targeted elderly Medicare beneficiaries throughout Washington and in other states. Senior District Judge Rosanna Malouf Peterson accepted Dr. Bjarke’s guilty plea, and set sentencing for January 10, 2023 at 1:30 p.m. in Spokane, Washington.
The Medicare program provides health insurance coverage for elderly and disabled Americans. Medicare generally provides coverage for diagnostic laboratory testing only if the test is ordered by a physician who is treating the beneficiary for a specific medical problem, and uses the test results to treat the patient for that specific problem. According to the Plea Agreement and information disclosed in court proceedings, Dr. Bjarke engaged in a conspiracy and scheme through which he placed orders for Medicare for genetic testing for Medicare beneficiaries in the Eastern District of Washington and elsewhere that he was not treating and with whom he had no physician-patient relationship. According to the Plea Agreement and other court documents, Dr. Bjarke’s sole contact with these patients was when he was connected with the beneficiaries for a telephone call for a few minutes through telemarketers. After Dr. Bjarke had ordered the tests, the laboratories then billed Medicare for the test, while another company billed Medicare for a purported “telemedicine” visit, sometimes for as much as tens of thousands of dollars.
According to the Plea Agreement, through this scheme and conspiracy, Dr. Bjarke’s orders were responsible for more than $18.6 million paid by Medicare. In return for his participation in the scheme, between December 2020 and September 2021, Dr. Bjarke received $167,996.73 from his co-conspirators, which Dr. Bjarke admitted were kickbacks because they constituted payment in return for ordering medically unnecessary genetic testing and other services for patients that he was not treating and with whom he had no physician-patient relationship.
“Health care fraud and kickback schemes are serious public health and safety problems,” said U.S. Attorney Waldref. “They divert precious public funds away from treating patients, drive up the cost of health care services, and undermine trust in our health care system, often putting quality health care beyond the reach of those who need it the most. Telemarketing schemes that target and exploit the elderly are especially pernicious because they prey on those who are often most in need of a doctor’s independent judgment that is not tainted or biased by the doctor’s own personal financial interest.”
“Dr. Bjarke placed making money above the welfare of patients and preyed upon elderly and vulnerable members of the community,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle Field Office. “This conspiracy not only victimized taxpayers via Medicare, but also impacted the patients, who underwent unnecessary medical screenings, thereby affecting their peace of mind. Medicare ultimately paid over $18 million for medically unnecessary testing, a fact that should outrage every law-abiding taxpayer.”
“I am grateful for, and commend, the stellar investigative work on this case performed by HHS OIG and the FBI,” said U.S. Attorney Waldref. “We will continue to work with our law enforcement partners to make our communities safer and stronger, by aggressively pursuing telemedicine kickback schemes, healthcare fraud, and elder abuse.”
The conspiracy offense carries a maximum sentence of up to five years in federal prison. The case was investigated by HHS OIG and the FBI. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
Spokane Woman Sentenced to 23 Years for Child Sex TraffickingRead the Press Release
Spokane – On September 21, 2022, U.S. District Judge Thomas O. Rice sentenced Kylie Ruby Flores, 31, of Spokane, to 23 years in prison for conspiracy to engage in the sex trafficking of a six-year-old girl, whom Flores made available to an adult man for sexual abuse in exchange for housing, cash, and sneakers. Flores will also be on federal supervision for the remainder of her life.
Flores conspired with codefendant Trever Harder to engage in the sex trafficking of a six-year-old girl. After meeting Harder online on the dating application Plenty of Fish, Flores knowingly agreed to trade sexual access to the girl for a place to stay, small amounts of cash, and the promise of new Nike running shoes. According to the Plea Agreements entered by Harder and Flores, the child was able to describe the specific ways that Harder sexually abused her, including acts of sodomy. Law enforcement officers recovered a video that Harder had recorded after he set up a camera on a cat tree in his apartment in Cheney, Washington. The video depicts Harder raping the little girl on the couch in his apartment. Harder has also pleaded guilty and is pending sentencing.
“The facts of this case present some of the most egregious sexual abuse of a child one can imagine. Today’s sentence is important, but it is equally important to remember that Flores’s sentence will likely be much shorter than the lifelong impact on the child,” said Vanessa R. Waldref, United States Attorney for the Eastern District. “No sentence can return the child’s innocence, but our community is now safer and stronger. Most important, the child is now in a safe place.” The U.S. Attorney emphasized the importance of protecting children. “The little girl in this case was only six years old when her abuse began. Thanks to an effective and cooperative investigation, she is neither missing nor murdered today—but she is not the only child in danger. Today’s sentence sends a clear message to those who seek to sexually abuse children: justice is coming.”
David M. Herzog, the Assistant United States Attorney who prosecuted the case, thanked the agencies responsible for the investigation and the protection of the young victim. “Incredibly dedicated FBI agents worked hand-in-hand with state, local, and tribal law enforcement to secure justice for the victim in this case. I am particularly grateful to Chelsea Sayles, the Quileute Tribal Attorney, and our partners with Quileute Indian Child Welfare, who worked hand-in-hand with the FBI and the US Attorney’s Office to protect this child from further sexual abuse.”
“It is inconceivable as a parent how someone could participate in the victimization of a child under their care.“ said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field Office. “While the sentence in this case is significant and truly justified, it only brings a small measure of justice to the victim. I hope the dedication of FBI agents and our partners to hold predators like Ms. Flores accountable serves as a message to those who would victimize our most vulnerable among us.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the FBI’s Spokane Resident Office and the Spokane Police Department, with significant assistance from the Quileute Nation. The case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington
Moses Lake Resident Pleads Guilty to Fraudulently Obtaining $50,000 in COVID-19 Relief FundsRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Dondre Charles Jackson, age 29, of Moses Lake, Washington, pled guilty to fraudulently obtaining $49,999 in COVID-19 relief funds. This case is part of the Eastern Washington COVID-19 Fraud Strike Force launched by the U.S. Attorney’s Office earlier this year. District Judge Thomas O. Rice accepted Thomas’ guilty plea, and set sentencing for January 5, 2023 at 10:00 a.m. in Spokane, Washington.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided forgivable loans to eligible small businesses for job retention and certain other expenses.
According to the plea agreement and information disclosed in court proceedings, Jackson fraudulently obtained two PPP loans totaling $49,999 for his purported catering and food service business, and submitted fraudulent tax documentation in support of his application. According to the plea agreement and other information disclosed during court proceedings, Jackson’s business was fictitious, the documentation he provided was false and fraudulent, and he was therefore not eligible for any PPP funding.
“COVID-19 relief programs quickly ran out of money due to the number of people and businesses that requested funding, which meant that some deserving small businesses were not able to obtain funding to keep their businesses in operation during the COVID-19 pandemic,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because it is critical to the strength and safety of our communities that we all work together to combat pandemic-related fraud and bring much-needed accountability to these programs. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, and other penalties.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG and the Secret Service,” said U.S. Attorney Waldref. “We will continue to work with our law enforcement partners to strengthen our communities by protecting our small and local businesses.”
“In addition to the Small Business Administration, Office of Inspector General and other Task Force partners, Greg Ligouri, Resident Agent in Charge of the Spokane Office of the U.S. Secret Service, expressed his thanks and appreciation to the Grant County Sheriff’s Office and Moses Lake Police Department for their collaboration in this investigation. RAIC Ligouri went on to say that communities are safer and better served when law enforcement agencies are able to marshal resources as was done in this case.”
The case was investigated by the Eastern Washington COVID-19 Fraud Strike Force, and in particular by the SBA OIG and U.S. Secret Service. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
Spokane Man Sentenced to 200 Months in Federal Prison for Drug Trafficking OffensesRead the Press Release
Spokane, Washington – United States District Judge Thomas O. Rice sentenced Bradley Dale Hull, age 55, of Spokane, Washington, to 200 months in federal prison after Hull was convicted by a jury on May 18, 2022 of Possession with Intent to Distribute 100 Grams or More of a Mixture or Substance Containing Heroin and Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine.
According to court documents, on February 7, 2020, a detective with the Spokane County Sheriff’s Office was surveilling Hull’s residence in Spokane, Washington. After a separate search warrant was executed on Hull’s girlfriend’s residence, Hull was observed running through the snow barefoot towards a parked car. Hull was carrying a grocery bag which, after Hull was detained, was found to contain substantial quantities of methamphetamine and heroin. The grocery bag also contained more than $13,000 in U.S. Currency along with a number of collector coins. During the trial, Hull testified. Hull acknowledged that he collected coins, but denied the drugs were his, claiming the detective had seen someone else running with the bag. The jury, in returning a guilty verdict, rejected Hull’s claims. In announcing the sentence, Judge Rice observed that Hull had made false statements and perjured himself during his testimony.
United States Attorney Vanessa R. Waldref, the Chief Law Enforcement Officer in the Eastern District of Washington, stated, “Mr. Hull possessed large amounts of methamphetamine and heroin and was in such a hurry to evade law enforcement that he ran barefoot to his car on a February morning in Spokane. At trial, Mr. Hull sought to evade responsibility by making false statements to Judge Rice and the jury.” U.S. Attorney Waldref continued, “I’m grateful for the tireless efforts of our law enforcement team, who protect our community by removing dangerous drugs from our neighborhoods.”
Assistant United States Attorney Michael Ellis, who tried and prosecuted the case, thanked the agents and law enforcement officers who investigated the case. AUSA Ellis stated, “Whenever a case goes to trial, there is a tremendous amount of work that takes place behind the scenes. As an AUSA, I have the privilege of working closely with some the best law enforcement agents and officers in the United States. The verdict and sentence in this case are the direct result of the agents’ dedication and service within the Spokane community.”
The case was investigated by the Drug Enforcement Administration and the Spokane County Sheriff’s Office. This case was prosecuted by Michael J. Ellis, Assistant United States Attorney for the Eastern District of Washington.
Yakima Area Business Owner Indicted by Federal Grand Jury for Selling Rotten and Adulterated Fruit JuiceRead the Press Release
Indictment Alleges that Company Violated Food Safety Laws, Lied to Regulators, and Sold Rotten and and Dangerous Juice Products to Customers, Including for Use in School Lunches
Yakima, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury returned an Indictment charging Mary Ann Bliesner, age 80, of Sunnyside, Washington, with twelve felony counts of fraud, conspiracy, false statements, and violating food safety laws in connection with her company, Valley Processing Inc. (VPI), which was also charged in the Indictment.
The Indictment alleges that between October 2012 and June 2019, Bliesner and VPI conspired with others to introduce unsafe, adulterated, and misbranded fruit juice products, including apple juice and grape juice concentrate, into interstate commerce by selling them to customers worldwide. The Indictment alleges that these adulterated juice products contained harmful substances, that they were produced under unsanitary and filthy conditions, and that they were unsafe and unfit for human consumption. The Indictment further alleges that Bliesner and VPI lied to customers about the age and quality of their products, which, in some cases, included grape juice concentrate that had been stored in unsafe conditions outside the VPI facility for years and exposed to the elements before being sold and shipped to customers, including customers producing grape juice for the National School Lunch Program, which provides free or reduced-cost lunches to more than 20 million children each school day.
Additionally, the Indictment alleges that Bliesner and VPI failed to register two facilities that they used to store fruit juice products, and lied to inspectors with the U.S. Food and Drug Administration (FDA) about their existence and use. According to the Indictment, one of these facilities, located in Sunnyside, Washington, and known as the “Grape Road Facility” was used to store tens of thousands of gallons of grape juice concentrate for years in concrete vats that were not properly covered or cooled. According to the Indictment, when FDA investigators finally learned about the facility during a May 2018 inspection, the juice concentrate had a layer of mold and crust so thick and firm that a live rat was observed and photographed walking on top of it. The Indictment also alleges that testing of samples taken at the Grape Road Facility indicated that the product there was contaminated with bird and rodent feces, fur, insects, decaying remains of animals, mold, yeast, and other contaminants.
In November 2020, the United States filed a complaint in federal court seeking to enjoin Bliesner and VPI from producing, storing, or selling juice or juice products. In January 2021, Bliesner and VPI agreed to a consent injunction in which Bliesner and VPI promised that they were not processing, manufacturing, preparing, packing, holding, or distributing any type of food, and would not do so in the future without first notifying and receiving approval from the FDA.
The charges against Bliesner carry a maximum sentence of up to 20 years in federal prison, while the potential charges against VPI carry fines of $500,000 or more for each of the twelve counts charged.
Reporting public health and safety concerns supports a safe community for all. EPA’s online reporting form directs concerns to the appropriate regulatory authority: https://echo.epa.gov/report-environmental-violations. Concerns regarding the safety of FDA-regulated products such as food, beverages and medicines, can be reported at 1-888-463-6332. When reporting environmental, health and safety concerns, U.S. Attorney Waldref encourages Eastern Washington residents to also contact the U.S. Attorney’s Office dedicated Civil Rights and Environmental Protection phone line at (509) 835-6306 or email at [email protected]. Notifying the U.S. Attorney’s Office helps us protect the community from harmful violations of federal environmental, health & safety laws.
This case was investigated by the FDA’s Office of Criminal Investigations, and is being prosecuted by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene and Trial Attorney James J. Hennelly of DOJ’s Consumer Protection Branch.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney’s Office Issues Statement on the Passing of Former United States Attorney William D. HyslopRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, joined the Spokane legal community, area law enforcement, and the Hyslop family in mourning the death of former U.S. Attorney William D. Hyslop, who passed away on September 11, 2022. Mr. Hyslop is the only person to serve two separate terms as the United States Attorney for the Eastern District of Washington. In 1991, he was appointed by President George H.W. Bush. Twenty-eight years later, Mr. Hyslop again was appointed to lead the United States Attorney’s Office, serving in that position until early 2021.
Mr. Hyslop grew up in Spokane and devoted significant time to the Spokane community. He attended Shadle Park High School, graduated from Washington State University, and attended the Gonzaga School of Law. His voluntary activities included, among other things, serving as the co-chair of the effort to remodel Lewis and Clark High School and as the vice chair of the Use of Force Commission, which was formed to implement changes to police training and procedure.
For more than 40 years, Mr. Hyslop practiced law in Washington State, serving as the President of the Washington State Bar Association and working as a principle at the Spokane law firm of Lukins & Annis. While Mr. Hyslop greatly enjoyed his career in private practice, he remarked that “serving our great Country as the United Sates Attorney has been the highest honor and most fulfilling duty of my professional career.”
U.S. Attorney Waldref, who succeeded Mr. Hyslop as the Chief Federal Law Enforcement Officer in Eastern Washington, stated, “We were saddened to learn of Bill’s passing, and our hearts go out to his wife, two children, and grandchildren. Bill was a lifelong friend to the U.S. Attorney’s Office and a dedicated public servant. I was honored to serve with Bill, and I was impressed with his passion for serving the Spokane community. We will miss him greatly.”
Timothy J. Ohms, an Assistant United States Attorney who served under Mr. Hyslop, expressed his gratitude for Mr. Hyslop’s leadership: “Bill absolutely loved being a lawyer. He was passionate about the law and government service. I had the privilege of serving with Bill when he was a new U.S. Attorney in the early 1990s and again when Bill was reappointed in 2019. Bill was a thoughtful leader, who sought to achieve a just result in each and every case.”
Earl A. Hicks, who has served as an Assistant United States Attorney in Spokane for more than forty years, stated, “It was an honor to work with Bill during both of his appointments as the Chief Law Enforcement Officer in the Eastern District. He was a strong leader, who devoted his career to serving others. Bill was particularly good at working with law enforcement – bringing together federal, state, tribal, and local leaders to address difficult issues and serving side by side with law enforcement to keep Eastern Washington safe. Our community will surely mourn his loss.”
At the time of Mr. Hyslop’s resignation as the United State Attorney in 2021, Spokane Police Chief Craig Meidl stated, “U.S. Attorney Hyslop has been a constant partner with SPD in our efforts to keep Spokane the safe community that we all long to live in and raise our families. His engagement with local law enforcement, and commitment to safety first through prevention, education and enforcement, is second to none. We honor his commitment to justice through compassion and accountability, with the needs of the community being his priority.” Upon learning of Mr. Hyslop’s passing, Chief Meidl added, “Bill was thoughtful and reflective in how he approached community safety, an issue that was close to his heart. He closely partnered with the Spokane Police Department on many different programs, including fentanyl awareness and community engagement. He was a mentor and friend, and his passing will leave a gap that cannot be filled. I will miss him greatly.”
In February 2021, as he completed his service as the United States Attorney, Mr. Hyslop stated, “I intend to work to the last day on behalf of the people of Eastern Washington.” He then added, “I want to continue to do all I can to advocate for law enforcement and the hard work they do for us every day to keep us safe.” Mr. Hyslop was true to his word. Following his service as the United State Attorney, Mr. Hyslop became a founding board member of the Spokane Alliance for Fentanyl Education (“SAFE”). In his role at SAFE, Mr. Hyslop continued to work closely with state and federal law enforcement to help the community to better understand the significance and danger of fentanyl in Eastern Washington.
Mr. Hyslop will be sorely missed by the law enforcement community, especially those in the U.S. Attorney’s Office, who served alongside Mr. Hyslop at various points over the past three decades.
U.S. Attorney Vanessa Waldref to lead Attorney General’s Advisory Subcommittee on Environmental JusticeRead the Press Release
Spokane – U.S. Attorney Vanessa Waldref for the Eastern District of Washington has been selected to lead the Environmental Justice & Environmental Issues Subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the Environmental Justice Subcommittee, U.S. Attorney Waldref will play a key role in advising the AGAC on environmental matters of importance to the Department of Justice and U.S. Attorney’s Offices across the country.
“I am gratified that my colleagues and Attorney General Garland selected me for this important role,” said U.S. Attorney Waldref. “The Department of Justice makes critical contributions to protecting the environment and public health. We all benefit from robust enforcement of laws that ensure a healthy environment for all families to live, learn, play, and work.”
As Subcommittee Chair, U.S. Attorney Waldref also serves as a leader to implement the Department of Justice’s Comprehensive Environmental Justice Strategy. U.S. Attorney Waldref is training Assistant United States Attorneys throughout all of the 94 U.S. Attorney’s Offices to develop an environmental justice practice and engage in community outreach on the critical environmental issues impacting each District. U.S. Attorney Waldref stated, “I am thrilled to build an infrastructure within the United States Attorney’s Offices around the country to tackle environmental protection cases that defend critical resources and ensure safe living and working conditions for all the residents of our communities. No group of people should bear a disproportionate share of the negative environmental consequences resulting from industrial, governmental, and commercial operations or policies.”
Prior to her appointment, U.S. Attorney Waldref worked in the Department of Justice’s Environment and National Resources Division advocating for the enforcement of pollution control statutes. While she was an Assistant United States Attorney, she also taught several courses at Gonzaga Law School, including Environmental Law, where her teaching focused on the concrete ways that environmental and workplace safety regulations protect our homes, neighborhoods, and workplaces.
U.S. Attorney Waldref is committed to enhancing the environmental protection practice in her home district: “In Eastern Washington, we have great pride in the beauty of our mountains, trees, lakes, and rivers and the sustenance that our natural resources provide. Indigenous people first lived on these lands, cultivating these resources for future generations. Protecting our resources for fishing, hunting, agriculture and a healthy, high quality of life makes our region safer and stronger.”
The Attorney General’s Advisory Committee was established nearly 50 years ago by Attorney General Elliott Richardson. The Committee's purpose is to give United States Attorneys a voice in Department policies and to advise the Attorney General of the United States.
Reporting public health and safety concerns supports a safe community for all. EPA’s online reporting form directs concerns to the appropriate regulatory authority: https://echo.epa.gov/report-environmental-violations. When reporting environmental, health and safety concerns, U.S. Attorney Waldref encourages Eastern Washington residents to also contact the U.S. Attorney’s Office dedicated Civil Rights and Environmental Protection phone line at (509) 835-6306 or email at [email protected]. Notifying the U.S. Attorney’s Office helps us protect the community from harmful violations of federal environmental, health & safety laws.
Yakima Man Sentenced to Ten Years in Federal Prison for Drug TraffickingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Michael Ryan Shoemaker, 35, of Yakima, Washington, was sentenced in federal court in Yakima for Distribution of Fifty Grams or More of Pure (Actual) Methamphetamine. Chief United States District Judge Stanley A. Bastian sentenced Mr. Shoemaker to a total of 120 months in federal prison and ordered Mr. Shoemaker to serve a five-year term of supervised release. Mr. Shoemaker pled guilty on February 2, 2022.
According to court documents, in October 2020, the Drug Enforcement Administration Yakima Task Force identified Mr. Shoemaker as a largescale methamphetamine trafficker, operating in the Yakima area. Relying on a confidential source, DEA conducted a controlled purchase of methamphetamine from Mr. Shoemaker at his home near downtown Yakima. There, Shoemaker sold the confidential source more than 100 grams of methamphetamine.
United States Attorney Waldref commended the efforts of law enforcement for working to keep the Eastern District safe: “The DEA’s Yakima Task Force identified Mr. Shoemaker and quickly put a stop to his distribution of methamphetamine in the Yakima community.” U.S. Attorney Waldref continued, “Today’s sentence removes Mr. Shoemaker from the community for ten years and reiterates the U.S. Attorney’s Office’s commitment to vigorously prosecuting those who distribute poison in Eastern Washington.”
“This investigation is another example of the DEA’s commitment to protect our communities, and this sentence should serve as a warning to those who question our resolve in bringing to justice those who choose to distribute illicit narcotics,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
This case was investigated by the Drug Enforcement Administration Yakima Task Force. Assistant United States Attorney Todd Swensen prosecuted the case.
U.S. Attorney’s Eastern Washington COVID-19 Strike Force Announces Indictment of Two West Richland ResidentsRead the Press Release
Indictments Allege that Defendants Collectively Received More Than $800,000 in Fraudulently-Obtained COVID-19 Relief Funding, Seek Forfeiture of West Richland Residence Purchased with Fraudulently-Obtained Funds
Richland, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury has indicted two additional individuals for COVID-19 Fraud as part of the Eastern Washington COVID-19 Strike Force. The Indictments announced today are the most recent charges brought by the Strike Force, which has brought criminal charges against numerous individuals and recovered millions of dollars in fraudulently obtained COVID relief funding.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
One indictment announced today charges Jimia Rae Cain, age 52, of West Richland, Washington, with seven counts of fraud in connection with PPP and EIDL loans that she obtained in 2020. The Indictment alleges that Cain used false statements and fraudulent documents to obtain more than $330,000 in CARES Act funding for her purported business. The Indictment further alleges that Cain attempted to secure an additional $280,000 in EIDL funding, but this additional funding was declined.
The second Indictment announced today charges Andrei Borgheriu, age 45, of West Richland, Washington, with three counts of fraud in connection with $500,000 in EIDL funding that he obtained on behalf of his company Artway Transport, LLC. The Indictment alleges that Borgheriu falsely represented that the funding would be used as working capital for his company, but instead that Borgheriu used it for an all-cash purchase of a personal residence in West Richland, Washington. The Indictment alleges that, soon after receiving the EIDL funding, Borgheriu wired nearly all of the EIDL funding to the title company for the purchase of the personal residence. As set forth in the Indictment, the United States therefore also seeks forfeiture of the residence based on allegations that it represents proceeds from the fraudulently obtained EIDL funding.
“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the Strike Force in order to ensure that those who misused COVID-19 relief funding are held accountable and to protect the strength and safety of our vital small business community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Department of Homeland Security (DHS) OIG, Internal Revenue Service, Department of Energy OIG, and others.
“I commend the continuing investigative work performed to date by the Strike Force, including by SBA OIG, FBI, and TIGTA,” said U.S. Attorney Waldref. “As the Strike Force’s work moves forward, we will continue taking aggressive action to pursue property that was purchased with fraudulently-obtained funds, to ensure that those funds are returned to the public and that wrongdoers are not able to reap the benefit of homes and other property purchased with fraudulently-obtained funds. We also will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”
The fraud charges against Cain carry a maximum sentence of up to 30 years in federal prison, while the fraud charges against Borgheriu carry a maximum sentence of up to 20 years. This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force and by the FBI, SBA OIG, and TIGTA. The United States Attorney also thanks the West Richland Police Department for graciously providing critical support and assistance. The cases are being prosecuted by Assistant United States Attorneys Dan Fruchter, Frieda K. Zimmerman, Tyler H.L. Tornabene, and Brian Donovan.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sacramento Man Sentenced to 10 Years for Drug TraffickingRead the Press Release
Spokane, Washington –United States District Judge Thomas O. Rice sentenced Dennis Ray Hopkins, Jr., 42, of Sacramento, California, to 10 years in federal prison for offenses related to trafficking in methamphetamine and heroin and the unlawful possession of firearms. Judge Rice also ordered Hopkins to forfeit his interest in $5,685. Hopkins will also serve five years of supervised release following his release from prison. Hopkins pleaded guilty to the four offenses on March 23, 2022. He has been in federal custody since his arrest on July 29, 2021.
According to court documents, after Hopkins checked out of a Spokane-area hotel in June of 2019, hotel employees found abandoned property in his room that included approximately 600 grams of methamphetamine. No state charges were filed against Hopkins at that time. Two years later, on July 29, 2021, federal agents served a search warrant on another room rented by Hopkins at a Spokane-area hotel. Agents seized over twelve ounces of methamphetamine, nearly five ounces of heroin, and three firearms. As a prior convicted felon and an unlawful user of controlled substances, Hopkins was prohibited by federal law from possessing a firearm. As part of his plea agreement, Hopkins accepted responsibility for the abandoned methamphetamine found in 2019 and the methamphetamine, heroin, and firearms seized during the search in 2021.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, praised the investigative team for building the case that resulted in the issuance of the 2021 search warrant and Hopkins’ arrest. She also remarked on the importance of interagency cooperation in combating drug trafficking that crosses state lines, especially in cases involving firearms. “Mr. Hopkins had multiple firearms in a Spokane-area hotel along with large quantities of methamphetamine and heroin,” U.S. Attorney Waldref stated. “Where guns and drugs intersect, we will continue to work closely with our federal, state, local, and tribal law enforcement partners to ensure dangerous offenders are held accountable.”
“The FBI is dedicated to combating violent crime through the investigation of drug and firearm violations,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “The FBI and our partners are working every day to protect the communities where we live and work. Mr. Hopkins’s case is a perfect example of the hard work we all do to combat violent crime in Washington state.”
This case was investigated by the Spokane Resident Office of the FBI, with significant assistance from the Spokane Safe Streets Task Force (which includes the FBI, the Spokane Police Department, the Spokane Valley Police Department, the Spokane County Sheriff’s Office, the Washington Department of Corrections, and the United States Border Patrol). The FBI Montana Regional Violent Crime Task Force also contributed to this case. The case was prosecuted by Timothy J. Ohms, Assistant United States Attorney for the Eastern District of Washington.
Department of Justice Awards $400,000 to the Yakama Nation to Enhance Its Sex Offender RegistryRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, today announced a $400,000 Department of Justice grant to the Confederated Tribes and Bands of the Yakama Nation. The grant provides support and resources to the Tribes for maintaining a sex offender registry and ensuring sex offenders’ registration is current at all times.
The grant, which is administered by the U.S. Department of Justice’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (the “SMART” Office), in the Office of Justice Programs, was awarded on September 6, 2022. Funding was awarded pursuant to the Adam Walsh Child Protection and Safety Act, 34 U.S.C. § 20901, et seq. In accordance with this Act, funding is made available to assist jurisdictions with developing and enhancing programs to meet two goals: (1) ensuring that all states and federally-recognized Indian Tribes maintain an active sex offender registry; and (2) requiring registered sex offenders to maintain a current registration in each jurisdiction where the individual lives, works, or goes to school.
In announcing the $400,000 award, U.S. Attorney Waldref stated, “The United States Justice Department is committed to devoting resources to support keeping communities safe and strong.” She continued, “Sex offender registration and community notification are essential to improving the safety of our communities. The $400,000 award will help ensure that the Yakama Nation and individual members of the community are able to track and monitor convicted sex offenders. This information is vital to ensure that parents, teachers and conscientious members of the community have the tools they need to keep our children and families safe in their schools, neighborhoods and homes.”
The SMART Office administers the Sex Offender Registration and Notification Act (SORNA), which sets forth a comprehensive set of minimum standards for sex offender registration and notification in the United States. Among other things, SORNA requires that sex offender registries include the following information: duration of registration, in-person verification of sex offender registration information, participation in the Dru Sjodin National Sex Offender Public Website (NSOPW.gov), and interjurisdictional notification of relocating offenders. More specific information about the implementation of SORNA is available at https://smart.ojp.gov/sorna. Information specific to implementation of SORNA in Indian Country is available at https://smart.ojp.gov/IC-SORNA-guide. Additional information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at https://www.ojp.gov/.
United States Attorney’s Office Obtains Multi-Decade Sentences in Child Exploitation CasesRead the Press Release
Spokane – On Wednesday, September 7, 2022, the United States Attorney’s Office obtained sentences of 20 and 15 years against two child exploitation defendants. Senior U.S. District Judge Rosanna Malouf Peterson sentenced Jessica Ann Barrington, 31, of Spokane, to 20 years in prison for sexually violating a three-year-old girl and sending images of that conduct to at least ten men she met online. Judge Peterson also sentenced Jason Dean Talbott, 44, of Spokane, to 15 years in prison for receiving child pornography in a secret lair that he created at a friend’s home – while he was on federal Supervised Release for a prior federal conviction for child pornography. When they are released from these lengthy terms, each defendant will be on federal supervision for the remainder of his or her life.
Documents and hearings associated with these cases revealed chilling conduct by the defendants.
Defendant Barrington sought out men online to exchange sexual images of minor girls, and to discuss plans for raping, torturing, and one day impregnating them. At one point she contacted a man online who ran a child pornography blog and used the handle “daddy4ltlgrl” and told him she had access to three little girls. When that man asked her if she “played” with them, Barrington sent him an image depicting a three-year-old’s genitals and followed that up with images depicting herself engaging in the sexual abuse of the girl. She later invited the man to come to Spokane from California, offering “to share them with you or just watch you with them.” She also offered to allow him to lock himself in a room with the children so he could rape them.
Defendant Talbott is a recidivist child pornography collector. In 2012, he was sentenced to 60 months in custody after he was convicted of Receipt of Child Pornography, in violation of federal law. In 2019, after he was released on his first conviction, he built a computer system in a room at a friend’s house and downloaded significant new quantities of child pornography. A search of his digital devices revealed that he had been collecting child pornography since as early as 2001, both before and after his first prison term. On December 30, 2019, Talbott was arrested by the FBI on an airplane that had just landed at Spokane International Airport after a flight from Denver. In addition to a huge quantity of child pornography stashed at his secret computer lair, Talbott also had child pornography on his person, in his luggage, and in his car.
“The FBI and the United States Attorney’s Office stand ready to respond with thorough investigations, aggressive prosecutions, and significant sentences for anyone who abuses children,” said Vanessa R. Waldref, United States Attorney for the Eastern District. “Although no sentence can give these children back their innocence, our community is safer with these criminals behind bars.” U.S. Attorney Waldref also emphasized that these crimes involve vulnerable victims: “In one case today, the victim was only three years old, and in the other, there were thousands of child victims whose trauma and abuse was recorded so it can circulate online forever. Today’s sentences send a clear message to those who seek to abuse children, whether behind closed doors or computer screens: justice is coming, and the consequences of abusing children will be severe.”
David M. Herzog, the Assistant United States Attorney who prosecuted the cases, thanked numerous agencies responsible for securing justice. “FBI worked hand-in-hand with state and local law enforcement in each of these cases, along with members of the United States Probation Office. I am particularly grateful to the Spokane County Prosecutor’s Office, which was in lockstep with the U.S. Attorney’s Office throughout. Seamless cooperation across law enforcement and prosecutorial agencies allows us to reach fair global resolutions that will protect this community for decades.”
“I am heartbroken at the unspeakable horror these children endured, including from adults who should have protected them,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “While nothing can reverse the harm to the victims, we hope these sentences send a strong message to would-be child abusers and bring our community peace of mind.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
These cases were investigated by the FBI’s Spokane Resident Office and the Spokane Police Department, with significant assistance from the United States Marshal’s Service and the United States Probation Office. The cases were prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.
Asotin County Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
Spokane – Senior United States District Judge Rosanna Malouf Peterson sentenced Justin James Krasselt, age 27, of Clarkston, Washington, to over 273 months in federal prison today for Production of Child Pornography. When combined with the time Krasselt has been in state custody since his arrest, the result is a 25-year prison sentence. At the conclusion of his prison term, Krasselt will spend the rest of his life on federal supervision. Senior Judge Peterson also imposed financial assessments aimed at victim compensation in the amount of $8,000. Krasselt entered a guilty plea on June 7, 2022.
According to court documents, Krasselt shared child pornography within a public chat group on the Kik messaging application in June 2020. An undercover Homeland Security Investigations (HSI) Special Agent captured the child pornography posted and observed that one of the videos appeared to be produced by Krasselt. Days later, on June 16, 2020, law enforcement executed a federal search warrant at Krasselt’s Clarkston, Washington, residence. There, agents seized electronic devices, including Krasselt’s phone.
When interviewed by law enforcement, Krasselt admitted to using Kik on his phone and to sending and receiving sexually exploitative images of minors. The investigation and forensic review of Krasselt’s phone, however, revealed that Krasselt had done more than send and receive child pornography. Investigators found ten sexually exploitative videos that Krasselt recorded of an 8-year old girl. During a separate investigation, images and videos of this young child were discovered as far away as Dandenong, Victoria, Australia. A review of the electronic devices in Australia revealed a Kik chat between the foreign suspect and Krasselt. The devices in Australia also contained images and videos depicting Krasselt’s victim, which Krasselt sent through Kik.
“It is chilling how common internet messaging applications like Kik can be used to exploit the most vulnerable among us and how exploitive images can quickly be spread across the world through social media,” U.S. Attorney Vanessa R. Waldref stated. “Parents, teachers, conscious members of our community, and law enforcement must work together to ensure that social media applications are not misused to harm children. Today’s sentence should serve as a warning to those who victimize children through social media and otherwise: Our office is committed to prioritizing and aggressively pursuing cases involving child predators and holding them accountable for victimizing the most innocent members of our community.”
Assistant United States Attorney Ann T. Wick, who prosecuted the case, stated, “The victim’s mother said it best in her written statement to Senior Judge Peterson: ‘[Krasselt] took away something from a child that shouldn’t [have] been taken.’” AUSA Wick continued, “While the criminal justice system cannot give it back, the sentence today removed a predator from the streets and ensured that the victim can spend the rest of her childhood free of the man who harmed her.”
“Children are our most vulnerable population, and law enforcement must ensure that those who exploit children are held accountable to the fullest extent,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. He continued, “Advances in technology have emboldened child predators to perpetuate their crimes with ease and share illicit material across the internet. Today’s twenty-five year sentence sends a strong message that child exploitation will not be tolerated. We also hope that this sentence brings some measure of peace to the family.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
In a separate, but related investigation, Krasselt pleaded guilty in Asotin County, Washington, Case No. 20-1-00056-02, to three counts of child molestation in the first degree. On November 16, 2020, Krasselt was sentenced to 12 years in state prison in the Asotin County case.
The federal case was investigated by Homeland Security Investigations, with assistance from the Clarkston Police Department and Moscow, ID, Police Department. This case was prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
Stevens County Man Sentenced to Twelve Years in Federal Prison for Seeking Sex with a ChildRead the Press Release
Spokane – Senior United States Senior District Judge Rosanna Malouf Peterson sentenced James Drew Bradley, age 65, of Addy, Washington, to twelve years in prison this week for Attempted Online Enticement of a Minor. At the conclusion of his prison term, Bradley will spend the rest of his life on federal supervision. Judge Peterson also imposed a $55,000 fine. Bradley entered a guilty plea on May 26, 2022.
According to court documents, in 2019, the FBI and Spokane Police Department (SPD) opened separate investigations into Bradley, who was soliciting sex from both adult women and minor girls. The FBI’s investigation began in June 2019 when Bradley asked an adult woman to find a 12-year-old girl with whom Bradley could have sex. In text messages that continued into August 2019, Bradley asked the adult woman, “Did you find what I am looking for?” Bradley continued, “you can find a young one,” and offered $1,000 if the adult woman found a child for Bradley. The adult woman instead reported Bradley to law enforcement. With her consent, an underofficer SPD officer took over her phone to continue communicating with Bradley.
On August 8, 2019, in a chat with the undercover officer, Bradley again requested sex with a 12-year old girl and asked for child pornography of the girl. In subsequent messages, Bradley negotiated the terms of an in-person encounter, confirming that he had booked a hotel room at a hotel in Spokane. He also arranged to meet with the adult woman and 12-year old girl at a restaurant in Spokane. Bradley specifically promised to pay the adult woman $1,000 for sex with the child, or $1,200 for anal sex with both the adult and the child without a condom.
When Bradley arrived at the restaurant to meet the adult woman and child, FBI and SPD officers immediately arrested him. Inside his truck, officers recovered vacuum-sealed packs containing large quantities of cash. In a nearby motel room that Bradley had rented, FBI and SPD officers recovered lubricant, condoms, and sex toys.
“I commend the seamless cooperation between the FBI, SPD, and the U.S. Attorney’s Office,” said Vanessa R. Waldref, United States Attorney for the Eastern District. “For decades now, our community has been fortunate to have some of the most experienced and conscientious child exploitation investigators and prosecutors in the nation, both state and federal. This case shows exactly why we do proactive investigations into people who seek out children for sex. This investigation conducted by FBI and SPD prevented Mr. Bradley from continuing to seek out children for sex and protected vulnerable members of our community from harm and trauma. ”
Assistant United States Attorney David M. Herzog, who prosecuted the case, singled out the adult woman who identified Mr. Bradley to law enforcement. “We all owe a debt of gratitude to the woman who identified Mr. Bradley to the FBI and SPD when he asked her to locate a child with whom he could have sex. But for her courage and ethical conduct, Mr. Bradley would still be at large, posing a significant risk to the children in this community.” AUSA Herzog noted:
“This lengthy sentence will prevent Mr. Bradley from harming children for more than a decade, and is a warning to anyone who seeks to victimize children in Eastern Washington: whether you hide behind a computer screen or an adult go-between, law enforcement will catch and convict you, and the consequences will be severe.”
“After understanding the details of Mr. Bradley’s plan, it is clear prison is where he belongs,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Had it not been for the courage of a member of the public who provided a crucial tip in this case, Bradley’s pursuit of a child to victimize most surely would have continued.”
“The SPD is thankful justice was served in this case,” Spokane Police Chief Craig Meidl stated. “These cases are particularly disturbing when someone is willing to prey on innocent children for their own gratification. Thankfully, the collaborative efforts of Spokane Police and our law enforcement partners resulted in removing a dangerous predator from the streets before he victimized an innocent child.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the FBI’s Spokane Resident Office and the Spokane Police Department. This case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.
Wapato Man Sentenced to 50 Years in Federal Prison for Three Homicides on the Yakama NationRead the Press Release
Spokane, Washington – Today, Chief U.S. District Judge Stanley A. Bastian sentenced Clifton Frank Peter, 37, of Wapato, Washington, to 600 months in federal prison, to be followed by a 5-year term of court supervision after he is released, and restitution in the amount of $86,170. Earlier this year, Peter pleaded guilty to three counts of Second-Degree Murder. In announcing the 50-year sentence, Chief Judge Bastian described the murders as “horrible if not monstrous.” He also stated, “This case was senseless, pointless, [and] a horrible act – leaving three people dead and their families traumatized for life.”
According to information disclosed during court proceedings, Peter is an enrolled member of the Confederated Bands and Tribes of the Yakama Nation and has a violent criminal history. In 2011, he was convicted in Yakima County Superior Court of First-Degree Robbery with a Deadly Weapon and Theft of a Motor Vehicle and was sentenced to 36 months of imprisonment. In 2013, he was convicted of Second-Degree Unlawful Possession of a Firearm and sentenced to 9 months of imprisonment.
On June 1, 2020, Peter was at his home, which is located within the external boundaries of the Yakama Nation. Peter spent the day consuming alcohol and playing video games. He became visibly upset while playing a video game and began yelling; his family members decided to leave the residence due to his outbursts.
Peter attacked his mother as she attempted to leave, and then took her vehicle. As Peter backed out of his driveway, he nearly collided with a vehicle being driven by a person identified in court proceedings as Victim 1. Peter exited his vehicle and shot Victim 1 with a shotgun. Victim 1 died due to the shotgun blast. Peter then re-entered his mother’s vehicle and, traveling northbound, slammed into the back of another vehicle that was occupied by people identified in court documents as Victims 2 and 3. Peter got out of his mother’s vehicle and shot Victims 2 and 3 with the shotgun. Victims 2 and 3 each died as a result of the gunshot blasts.
After the murders, Peter attempted to hide the shotgun before walking to the residence of a family member. Peter told a family member that he had “done something bad,” and his family member refused to allow him to enter the residence. Deputies from the Yakima County Sheriff’s Office and officers from the Yakama Nation Police Department quickly responded the crime scene, and officers apprehended Peter. Members of the Washington State Patrol arrived and assisted with the crime scene, and the Federal Bureau of Investigation assumed jurisdiction over the investigation.
U.S. Attorney Vanessa R. Waldref condemned Peter’s acts as senseless violence that undermine the safety and strength of the Yakama Nation and all of Eastern Washington: “Three people are dead. Two children have been orphaned without any immediate family in the United States. A family patriarch will never see his grandchildren graduate from high school or walk his daughter down the aisle,” said U.S. Attorney Waldref. “Violence like this is not normal, and it cannot be normalized. The U.S. Attorney’s Office will continue to prosecute violence throughout Eastern Washington, in the big cities and small towns, on the farms and on the Palouse, and on every Indian Nation. I commend the collaborative efforts of the Yakama Nation Police Department, the Yakima County Sheriff’s Office, the Washington State Patrol, and the Federal Bureau of Investigation for their seamless partnership in this case, which resulted in a significant sentence. But for the families of Mr. Peter’s victims, nothing will ever be the same again. No sentence could ever bring back their beloved family members, but I hope there is some comfort in knowing that today, the Court removed from the Yakama Nation a dangerous offender whose hair-trigger response to being angry at a video game was to murder three people in cold blood.”
“The FBI, along with our partners, have made combating violent crime in Washington a priority,” said Richard A. Collodi, Special Agent in Charge of the Seattle Field Office of the FBI. “Three innocent people were murdered in what can only be described as utterly senseless acts. Today’s sentence is particularly resonant, given the nature and violence of Mr. Peter’s crimes.”
This case was investigated by the Yakima Resident Office of the Federal Bureau of Investigation. This case was prosecuted by Richard C. Burson and Tom Hanlon, Assistant United States Attorneys for the Eastern District of Washington.
Spokane Man Sentenced to Probation for COVID-19 Relief FraudRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Roshon Edward Thomas, age 42, of Spokane, was sentenced to a 5-year term of probation in federal court for fraudulently obtaining COVID-19 relief funding for small businesses. Senior United States District Judge Rosanna Malouf Peterson announced the sentence, the first sentencing in a case brought by the Eastern Washington COVID-19 Fraud Strike Force created by U.S. Attorney Waldref earlier this year.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic.
“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to protecting our small and local businesses, and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force to leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, and civil penalties, and recoveries of millions of dollars in fraudulently-obtained funds.
According to court documents and information disclosed during court proceedings, Thomas fraudulently obtained at least $54,900 in COVID-19 relief funding through two EIDL loans he obtained in July and August 2020 for a purported tattoo parlor and a clothing design company. In May 2022, Thomas pled guilty to submitting false and fraudulent claims to the United States, and admitted to using false and fraudulent information to obtain EIDL funding for both companies. As part of the sentence, Thomas will be supervised by the Court during the probation period and, among other conditions, will be required to maintain employment and to make full restitution of the funds that he fraudulently obtained.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG, TIGTA, FBI, and HSI,” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”
Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene prosecuted this case on behalf of the United States.
Texas Man Charged with Participating in Scheme to Defraud Spokane Resident of $345,000Read the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that a federal grand jury returned an Indictment charging David Joseph Osinski, age 57, a resident of Arlington, Texas, with six counts of conspiracy, wire fraud, and money laundering in connection with his alleged role in a fraud scheme that stole more than $345,000 from an elderly Spokane resident in 2021.
The Indictment alleges that Osinski created a bank account in the Dallas, Texas area to receive fraudulently obtained funds from the victim. As alleged in the Indictment, Osinski and his co-conspirators tricked the elderly victim, a recent widower, through a romance fraud scheme in which they made the victim believe that he was in an online relationship with a woman named “Kathleen” who was an international art dealer who was attempting to finalize an art transaction in Dubai, United Arab Emirates. The Indictment alleges that, posing as “Kathleen,” Osinski and his co-conspirators convinced the victim to wire approximately $189,000 to an account in Dubai, and an additional $156,640 to the Dallas-area account owned and controlled by Osinski, whom the conspirators claimed was involved in the supposed art transaction. As alleged in the Indictment, Osinski then immediately withdrew essentially all of the money by transferring it to a separate account of his used for cryptocurrency purchases.
“Internet scams, often perpetrated outside of the state, are a recurring problem which cause significant harm and hardship to residents here in Eastern Washington,” said U.S. Attorney Vanessa R. Waldref. “Unfortunately, fraudsters and scammers frequently target elderly members of our community. This case is an important part of our efforts to seek elder justice and fight elder fraud in Eastern Washington. In order to make Eastern Washington communities safer and stronger, we will continue to work with our law enforcement partners to vigorously prosecute scammers and their conspirators.”
If convicted, Osinski faces possible maximum statutory sentences of up to 30 years on the conspiracy charges, 20 years on the wire fraud charges, and 10 years on the money laundering charges.
This case was investigated by the Federal Bureau of Investigation, Seattle Field Office, Spokane Resident Office. This case is being prosecuted by Dan Fruchter and Tyler Tornabene, Assistant United States Attorneys for the Eastern District of Washington.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tri-Cities Man Sentenced to Ten Years in Federal Prison for Drug TraffickingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Aurelio James Gonzalez, 30, of Kennewick Washington was sentenced in federal court in Spokane for two counts of Distribution of Methamphetamine. Chief United States District Judge Stanley A. Bastian sentenced Gonzales to a total of 120 months in federal prison and ordered Gonzales to serve a five-year term of supervised release. Gonzales plead guilty on October 27, 2021.
According to court documents, in September 2021, DEA Tri-Cities, in partnership with the METRO Drug Task Force, identified Gonzales as a pound-level methamphetamine trafficker operating in the Tri-Cities area and elsewhere. Through the use of a confidential source, DEA conducted several recorded meetings with Gonzales as well as two separate controlled buys, where Gonzales sold the confidential source at total of approximately two pounds of methamphetamine. On February 17, 2021, a federal search warrant was executed at his residence in Kennewick, WA, where Gonzales lived with his significant other and two small children. Gonzales had taken one of those small children with him when he sold the methamphetamine to the DEA confidential source. When DEA executed the search warrant, agents located and seized cocaine, a digital scale, $14,805 in U.S. currency, ledgers about how to engage in money laundering, and a total of three firearms. Most of these items were located near a “Santa Muerte” shrine, depicted below, which is commonly associated with drug trafficking.
United States Attorney Waldref commended the joint efforts of law enforcement for working together to keep the Eastern District safe: “This case involved both largescale methamphetamine distribution as well the possession of several firearms in furtherance of Mr. Gonzales’s drug-trafficking organization.” U.S. Attorney Waldref continued, “Today’s sentence removes Mr. Gonzales from our community for 10 years and reiterates the U.S. Attorney’s Office’s commitment to vigorously prosecute those who distribute poison in Eastern Washington.”
“This investigation illustrates the strong relationships we have with our federal, state and local partners as we work together to keep our communities safe, healthy and free from dangerous drugs,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
This case was prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of transnational drug trafficking and related offenses. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for these drug related offenses in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Drug Enforcement Administration Tri Cities Task Force in partnership with the Kennewick, Pasco and Richland Police Departments. This case was prosecuted by Stephanie Van Marter, an Assistant United States Attorney for the Eastern District of Washington.
Toppenish Woman Charged with Drug Trafficking and Firearm OffensesRead the Press Release
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury has indicted Susen Ann Gorst, age 34, of Toppenish, Washington. The federal indictment charges Gorst with Possession with Intent to Distribute Fentanyl, Possession with Intent to Distribute Methamphetamine, and Possession of a Firearm in Furtherance of Drug Trafficking.
According to an August 1, 2021 criminal complaint, the investigation into Gorst stems from information that she was supplying fentanyl pills to multiple users in the Yakima area. Based on this information, the Yakama Nation Police Department and Drug Enforcement Administration (DEA) conducted surveillance at the El Corral Motel in Toppenish, Washington, where Gorst allegedly was selling fentanyl. On July 22, 2022, agents and officers from the DEA Yakima Resident Office, Homeland Security Investigations, the Yakama Nation Police Department, Yakima Police Department, and Toppenish Police Department executed a search warrant of Gorst’s motel room, where enforcement seized fentanyl pills, methamphetamine, and a Smith and Wesson semiautomatic firearm.
“When law enforcement and our communities come together, we are able to make tremendous strides toward addressing the opioid crisis,” stated U.S. Attorney Waldref. “Our office has been prosecuting fentanyl cases vigorously – on the Yakama Nation and throughout Eastern Washington – as part of our ongoing efforts to build safer and stronger communities. Fentanyl is particularly lethal, and we are proactively working to prevent the tragedy it causes on a daily basis.”
This case involves a joint investigation led by the Drug Enforcement Administration’s Yakima Resident Office, Yakama Nation Police Department, Homeland Security Investigations, Yakima Police Department, and the Toppenish Police Department. The case is being prosecuted by Frances Walker, Assistant United States Attorney for the Eastern District of Washington.
The details contained in the charging documents are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Spokane Neonatologist Pleads Guilty in Plot to Hire Multiple Hitmen to Kidnap His Estranged Wife and Assault a Former ColleagueRead the Press Release
Spokane – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Ronald Craig Ilg, age 55, of Spokane, Washington has pled guilty to Transmitting Threats in Interstate Commerce for his role in a scheme to hire multiple hitmen on the so-called “dark web.” Ilg faces a statutory maximum sentence of ten years in federal prison and up to three years supervised release. As part of the plea agreement, the United States and Ilg agreed to a sentencing range of 60 to 96 months. Sentencing is scheduled for November 8, 2022 at 9:00 a.m. before United States Senior District Judge William Fremming Nielsen.
According to court documents, Ilg, a former neonatologist in the Spokane area, transmitted dozens of messages in early 2021 through the dark web as part of a plot to harm a former professional colleague and to have his estranged wife kidnapped. Using the moniker “Scar215” and password “Mufassa$$” to conceal his identity, Ilg sent more than $60,000 in Bitcoin in furtherance of his nefarious schemes.
With respect to the first victim, Ilg directed the purported hitmen to assault a Spokane-area doctor, specifying that the victim “should be given a significant beating that is obvious. It should injure both hands significantly or break the hands.” As part of this scheme, Ilg paid more than $2,000 in Bitcoin, sent the purported hitmen the victim’s address, and provided the hitmen with a link to the victim’s picture. In follow up messages, Ilg directed “I would like to see evidence that it happened. If this goes well, I have another, more complicated job” for “[a]n entirely different target with entirely different objectives.”
With respect to his second victim, Ilg solicited purported hitmen to kidnap this victim, have her injected with heroin – all so she would drop divorce proceedings that were pending at the time and return to the failed relationship with Ilg. Notwithstanding that Ilg was subject to a no-contact order at this time, Ilg devised a bonus structure if the victim was in fact kidnapped and certain goals were achieved. Here again, Ilg promised the hitmen that he had “other jobs worth quite a bit to accomplish in the near future. So, if all goes well, then we can work together on a few other things also.” In all, Ilg transferred approximately $60,000 in Bitcoin in furtherance of the scheme to have his estranged wife kidnapped.
After the FBI obtained copies of Ilg’s dark web messages, he took certain actions to obstruct justice in this case. First, during a voluntary interview with the FBI, Ilg falsely claimed he paid the hitmen to kill himself. Second, Ilg sent a letter to a key witness against him – begging the witness marry him so he could control whether she testified. He also offered to pay tuition for the witness’s children to attend Gonzaga Preparatory School and St. Aloysius Catholic School in Spokane, Washington. Ilg even directed the witness to destroy evidence by burning Ilg’s letter.
“This case demonstrates how violent offenders exploit cyberspace and cryptocurrency to further their criminal agendas,” U.S. Attorney Waldref stated. “Mr. Ilg solicited and paid for multiple dark web hitmen to target the two victims in this case. Mr. Ilg also wanted to target additional victims if the hitmen followed through with the plan to harm these first two victims.” U.S. Attorney Waldref continued, “The amount of money Mr. Ilg paid to advance his schemes and his efforts to obstruct justice in this case indicate Mr. Ilg would stop at nothing to maintain control over his victims. Thankfully, the FBI learned of Mr. Ilg’s scheme and prevented him from following through on his plans to harm another doctor and kidnap his estranged wife.”
“This investigation is an example for would be criminals who mistakenly believe they are anonymous online,” said Michael Heiler, Acting Special Agent in Charge of the FBI’s Seattle field office. “As with this case, the FBI will continue to identify those individuals who are conducting criminal activity online, and, working with our partners, hold them accountable.”
This case is being investigated by the Spokane Resident Agency of the Federal Bureau of Investigation. Richard R. Barker and Patrick J. Cashman, Assistant United States Attorneys for the Eastern District of Washington, are prosecuting this case.
Nespelem Man Sentenced to Twenty-Two Years in Federal Prison for Assault with a Dangerous Weapon, Arson, Felon in Possession of a Firearm, Discharging a Firearm During a Crime of Violence, and for Violating His Federal Supervised Release.Read the Press Release
Spokane – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that John Edward McGinnis, age 35, of Nespelem, Washington, was sentenced in federal court in Spokane for Assault with Dangerous Weapon in Indian Country, Arson in Indian Country, Felon in Possession of a Firearm and Ammunition, and Discharging and Using a Firearm During and in Relation to a Crime of Violence. McGinnis had entered a guilty plea on May 21, 2021.
At today’s sentencing, United States Senior District Judge Rosanna Malouf Peterson ordered McGinnis to serve a total of 264 months in federal prison to be followed by a five-year term of supervised release. In this regard, McGinnis was sentenced to 240 months on the charges set forth above and to an additional 24 months for violating his federal supervised release. These sentences were ordered to run consecutively for a total of 264 months. McGinnis also was ordered to pay $9,919.03 in restitution. In announcing the sentence, Judge Peterson stated, “My heart goes out to the victims” in this case. She also emphasized that “the offense was really terrible” for everyone involved.
According to court documents, McGinnis kidnapped four people at gunpoint in early June 2020. During the ordeal, which lasted several hours beginning on the evening of June 1 and continuing into the morning hours of June 2, 2020, McGinnis held his victims at gunpoint and even fired several gunshots in the immediate area of these victims. At the time of these offenses, three of the victims were minor children – ages 9, 13, and 17. After holding three of his victims at gunpoint inside their home on the Colville Indian Reservation, Defendant forced these victims into a truck, which McGinnis later stole. McGinnis then forced the victims to drive to McGinnis’s trailer, which McGinnis lit on fire, causing the trailer to burn to the ground.
At one point during the ordeal, three of the victims were able escape. McGinnis, however, was not finished. He found another victim in the Grand Coulee area – robbing her at gunpoint and forcing her into the stolen truck. After he kidnapped this victim, McGinnis sexually assaulted her and threatened to kill her if she tried to escape. Ultimately, this fourth victim did manage to escape at a gas station in Spokane, Washington by causing McGinnis to believe she was going inside to pay for gas. Instead, the victim told the gas station attendant to call 911 and then locked herself inside the bathroom in fear McGinnis would come after her.
Shortly after this fourth victim escaped, Spokane Police saw the stolen truck near Second Avenue in Spokane, Washington. When officers tried to stop the truck, McGinnis led police on a high-speed chase that ended near Liberty Park, where McGinnis attempted to drive the truck off-road, and the truck became high centered. McGinnis was then taken into custody. Inside the stolen truck, police recovered a .22 caliber revolver, which McGinnis was not able to lawfully possess because of his prior convictions for second-degree burglary and assault with a dangerous weapon. Notably, McGinnis was on federal supervised release at the time of these offenses.
The case involved multiple federal, state, and local agencies, each of whom played significant roles in prosecuting the case, which began on the Colville Indian Reservation, continued into Grand Coulee Washington, and ended on the South Hill in Spokane.
“The facts of this case are shocking: Mr. McGinnis assaulted several minor victims, kidnapped them at gunpoint, sexually assaulted one of the minor victims, set fire to a trailer, and led police on a car chase that endangered even more lives,” U.S. Attorney Waldref stated. “The emotional trauma to each of these victims is real and will continue far longer than the twenty-two year sentence imposed today.” U.S. Attorney Waldref continued, “Today’s significant sentence is necessary to prevent Mr. McGinnis from harming others, including young children, but that is not all. By prosecuting cases such as this one, our office reaffirms its commitment to prioritizing and vigorously pursuing those who commit violent crimes on the Colville Indian Reservation, especially when the victims include some of the most vulnerable and innocent members of our community.”
“We feel for the victims,” said Michael Heiler, Acting Special Agent in Charge of the FBI’s Seattle field office, “and are thankful the subject was apprehended before he was able to do more harm. I would like to thank all of our law enforcement partners for working together to bring this horrible situation to some level of closure.”
Spokane County Prosecuting Attorney Larry Haskell added, “The convictions in this case showcase the success of multiple agencies collaborating and communicating with one another to make our communities safe. But more importantly, this sentence directly addresses the egregious conduct carried out by this individual and is a testament to the courage of the brave crime victims who survived their encounter with McGinnis.”
“The Spokane Police Department appreciates our partnerships with area law enforcement agencies, especially given that criminals frequently commit crimes that cross jurisdictional lines,” Spokane Police Chief Craig Meidl stated. “In this incident, the suspect had already victimized multiple people in two other jurisdictions and traveled to Spokane, where he put the public and our officers in danger with a high-speed chase through the city. We commend our criminal justice partners at the federal, state, and local levels for their strong work in developing this case and providing some measure of justice for the victims.”
“It takes a great deal of courage for victims to come forward and confront the person who hurt them,” stated Assistant United States Attorney Richard R. Barker, who led the federal prosecution of McGinnis. “I’m grateful for the victims’ courage in this case, and I commend the individual agents and officers, who put their lives on the line to keep our communities safe.”
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation, the Tribal Law Enforcement Department of the Confederated Tribes of the Colville Reservation Police, the Grand Coulee Police Department, and the Spokane Police Department. Richard R. Barker, Assistant United States Attorney for the Eastern District of Washington, prosecuted this case. Spokane County Deputy Prosecuting Attorney Preston McCollam led a parallel prosecution of Mr. McGinnis, which is being resolved as part of the federal prosecution.
Kirkland Man Charged with Drug Trafficking Offense Related to recent Motel RobberyRead the Press Release
Spokane – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Scott Banchero, age 58, of Kirkland, Washington, was charged by federal criminal complaint with Possession with Intent to Distribute 500 Grams or More of a Mixture or Substance Containing a Detectable Amount of Methamphetamine, in violation of 21 U.S.C. 841(a)(1), (b)(1)(A)(viii).
As alleged in the criminal complaint, in the early morning hours of August 3, 2022, Banchero was identified as the victim of a robbery at a local motel in Spokane Valley, Washington. Banchero had just arrived from the Seattle, Washington area when the robbery occurred.
Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, as well as Detectives with the Spokane Police Department’s Special Investigations Unit, subsequently executed a federal search warrant on a storage unit rented to Banchero near Spokane, Washington. In the storage unit, law enforcement located approximately 20,000 fentanyl-laced pills, 2 pounds of methamphetamine, 1 kilogram of heroin, and a half pound of cocaine.
Assistant United States Attorneys Patrick Cashman and Caitlin Baunsgard of the Eastern District of Washington are handling this matter on behalf of the United States.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Vanessa R. Waldref to Take Part in Spokane’s National Night Out Against Crime to Promote Community-Police PartnershipsRead the Press Release
Spokane – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that members of her office will participate in community events held as part of Spokane’s National Night Out Against Crime this evening at various events in the Spokane area. U.S. Attorney Waldref, along with United States Attorneys and Department of Justice officials from across the country, are partnering with local law enforcement to attend National Night Out Events throughout the nation.
Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. In most areas of the country, the program occurs annually on the first Tuesday of August. This year, approximately 40 National Night Out Events are scheduled in various Spokane neighborhoods.
“Building safe and strong communities is a Justice Department priority,” said U.S. Attorney Waldref. “When we build trust and support within the communities we serve, law enforcement is most effective. This is why events such the National Night Out are so important. By bringing community members and law enforcement officers together, we help to bridge the gap and build trust between law enforcement officers and the neighborhoods they serve.”
National Night Out with U.S. Attorney Waldref
WHO: U.S. Attorney for the Eastern District of Washington Vanessa R. Waldref will join officials from the U.S. Attorney’s Office and the Spokane Police Department at various locations in Spokane.
WHEN: Tuesday, August 2, 2022 from approximately 4:00 – 8:00 p.m. EDT
WHERE: Cannon Park, 1511 N Elm St, Spokane, WA 99201
Glass Playfield, 627 E Heroy Ave, Spokane, WA 99207
For more information on National Night Out events, visit https://natw.org/. For information about event at Cannon Park, visit https://www.facebook.com/events/5167445383359861/.
Rosalia Man Sentenced to Ten Years in Federal Prison and Lifetime Supervised Release for Coercion and Enticement of a MinorRead the Press Release
Spokane – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Philip Marion Harthill, age 74, of Rosalia, Washington, was sentenced in federal court in Spokane for Coercion and Enticement of a Minor. United States Senior District Judge Rosanna Malouf Peterson sentenced Harthill to 120 months to be followed by a life term of supervised release. In announcing the sentence, Judge Peterson emphasized that “the damage to children” caused by Harthill’s crimes is very “real.” Judge Peterson continued, “This is damage they will carry with them for their whole lives – damage to both the children and the families, who are impacted.” Judge Peterson further expressed that a 10-year sentence was necessary notwithstanding Harthill’s age. Harthill had entered a guilty plea on April 19, 2022.
According to court documents, Homeland Security Investigations (HSI) discovered in early 2019 that Harthill was transmitting child pornography online through Skype. Later that year, Harthill began an online chat via social media sites regarding Harthill’s sexual interest in minor children, particularly girls, who were ten-years old and older. During these communications, Harthill used the Kik Messenger to send at least two images containing child pornography. Harthill also used Kik to solicit additional child pornography.
Based on Harthill’s transmittal and solicitation of child pornography, Federal agents executed a search warrant at Harthill’s residence and seized several electronic devices, including Harthill’s laptop computer. On the laptop, investigators discovered 1,455 videos and 531 images of child pornography, including a split-screen video of Harthill sexually interacting with a young child, who stated she was nine years old and lives in another country.
During the investigation, Harthill agreed to speak with law enforcement and admitted to downloading, trading, and viewing child pornography for about five years. Harthill further admitted to sexually communicating online with underage girls, who were between 12 to 15 years old. In his statement, Harthill also admitted he would sometimes falsely portray himself as being 19 years old to his victims.
“This case is a stark reminder that sexual predators do not always fit a specific profile and, in some cases, may be the person you least suspect,” United States Attorney Waldref said. “Mr. Harthill used everyday internet applications like Skype and Kik to exploit the most vulnerable among us.” U.S. Attorney Waldref continued, “Today’s sentence is necessary to prevent Mr. Harthill from harming other children, and it should serve as a warning to those who victimize children: Our office is committed to prioritizing and aggressively pursuing cases involving online predators and holding them accountable for victimizing the most innocent members of our community.”
“Harthill exploited children by sharing their images with other child pornographers around the world,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “The resolve of HSI agents working both in the U.S. and overseas has resulted in a sentence that will hopefully provide some ease to those affected by his horrendous actions and keep Harthill behind bars, not behind a computer.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Spokane Resident Office of the United States Department of Homeland Security and the Washington State Police. This case was prosecuted by Ann T. Wick, Assistant United States Attorneys for the Eastern District of Washington.
Former Nurse Sentenced to 18 Months in Federal Prison for Tampering with Morphine Medications at Moses Lake ClinicRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Esther Rae Tuller, age 41, of Moses Lake, Washington, was sentenced today in federal court in Spokane for tampering with morphine medication while working as a registered nurse. Chief United States District Judge Stanley A. Bastian sentenced Tuller to 18 months in federal prison, followed by three years of supervised release.
According to court documents, between August 2019 and April 2020, Tuller was a Washington-licensed registered nurse employed at the Confluence Health Clinic in Moses Lake. Her position as a nurse provided her with access to medications, including opioid narcotics such as morphine, an opioid derivative commonly prescribed by hospitals and health care facilities to relieve pain.
While working at Confluence Health, Tuller used syringes to remove morphine from at least 17 vials, and then ingested that morphine as part of her own opioid addiction. She then replaced the morphine with a saline solution that was essentially salt dissolved in water, and attempted to glue the caps back onto the vials to make them appear intact. Before Tuller was apprehended by law enforcement, at least one Confluence Health patient who was prescribed morphine had to be rushed to the emergency room; that patient continued to be in excruciating pain after receiving only saline from what was supposed to be morphine vials. In sentencing Ms. Tuller, Chief Judge Bastian noted that Tuller’s conduct did not simply involve stealing medications, but putting patients at risk.
United States Attorney Vanessa R. Waldref emphasized that fostering safe and strong communities in Eastern Washington means addressing the opioid epidemic in all of its forms. “While Ms. Tuller’s addiction to opioids is both tragic and far too common, her decision to take advantage of her access to medical-grade morphine was an egregious breach of trust. It is deeply troubling that she compounded her misconduct by secretly replacing that morphine with saline in vials that she knew would be distributed to patients, recklessly endangering patients who rely on the integrity of our health care system every day.” United States Attorney Waldref continued: “I want to especially commend the stellar investigative work by the Drug Enforcement Administration’s Diversion Group and the Food and Drug Administration’s Office of Criminal Investigations. We will continue to work with our law enforcement partners to hold accountable those who abuse their position of trust and endanger patients.”
“Our DEA Diversion Investigators are another tool we are utilizing to address the opioid epidemic we are now facing,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “Their actions and investigations helped remove an individual from a position of trust and stop any further harm from happening to vulnerable individuals.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Acting Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
This investigation was conducted by the DEA’s Diversion Group in the Seattle Field Office, and the FDA’s Office of Criminal Investigations, Seattle Domicile. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene prosecuted this matter on behalf of the United States.
Department of Justice Awards $480,000 to Spokane County Sheriff’s Office for Rapid DNA TestingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, today announced $480,000 Department of Justice grant to the Spokane County Sheriff’s Office Rapid DNA program. The grant will help law enforcement in Spokane County identify, arrest, and prosecute both violent crimes and prolific property crimes, with the goal of enhancing the Sheriff’s Office’s technical expertise, increasing the number of solved crimes in Spokane County, and reducing the number of crimes against persons and property.
The grant, which is administered by the U.S. Department of Justice Office of Justice Programs, was awarded on July 26, 2022. The funding will be used by the Forensic Unit of the Spokane County Sheriff’s Office, which is an accredited lab covering various areas. The Rapid DNA program should accelerate the speed by which investigative leads can be developed, perpetrators identified, and innocent parties cleared. As a result, offenders will be more quickly apprehended.
In announcing the nearly $500,000 award, U.S. Attorney Waldref stated, “This grant is an example of the Justice Department’s commitment to devoting resources to our local law enforcement partners to ensure Eastern Washington remains Safe and Strong.” U.S. Attorney Waldref continued, “DNA testing is a critical tool for solving and prosecuting crime. In fact, DNA analysis has proven to be the difference in identifying, and in some cases exonerating, the accused. By devoting these additional resources in Spokane County, we are able to help law enforcement hold perpetrators accountable and deter others from committing criminal acts in Eastern Washington.”
More information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at https://www.ojp.gov/.
Convicted Felon Sentenced to Ten Years in Federal Prison for Drug Trafficking and Unlawful Possession of a FirearmRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Tyrell Wade Nault, 22, of Havre, Montana was sentenced in federal court in Spokane for Possession with Intent to Distribute Methamphetamine and Unlawful Possession of a Firearm. Chief United States District Judge Stanley A. Bastian sentenced Nault to a total of 120 months in federal prison and ordered Nault to serve a three-year term of supervised release. Nault plead guilty on December 2, 2021.
According to court documents, the Spokane County Sheriff’s Office arrested Nault and his girlfriend on May 29, 2020, as they were about to get into their car in a hotel parking lot in Spokane Valley, Washington. At the time of their arrest, both Nault and his girlfriend had outstanding arrest warrants related to criminal proceedings in Montana. During the arrest, the Spokane County Sherriff’s Office found $1,355 in U.S. currency and, a baggie of approximately 32 Oxycodone pills, and a loaded 9mm semiautomatic pistol on Nault’s person. Subsequent investigation revealed that the 9mm firearm was stolen. During a search of Nault’s vehicle, law enforcement found, among other things, a digital scale, additional U.S. currency, and several baggies containing at total of 81 grams of actual (pure) methamphetamine. At the time of Nault’s arrest, he had multiple prior felony convictions.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, commended the joint efforts of law enforcement for working together to keep the Spokane community safe: “These types of federal, state, and local partnerships, coupled with community engagement, are essential to prevent convicted felons from obtaining firearms and distributing poison in our communities.” U.S. Attorney Waldref continued, “Today’s sentence removes Mr. Nault from our community for 10 years, sending an important signal that the U.S. Attorney’s Office continues to vigorously prosecute those who distribute deadly narcotics in Eastern Washington.”
“Hopefully this lengthy sentence will give Mr. Nault the opportunity to think about the harm he has done to the community, and when released change his life for the better,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “We will continue to investigate and arrest those who, like Mr. Nault, act in ways that are against the law and harmful to our communities and nation.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, the Pacific Northwest Violent Offender Task Force, and the Spokane County Sheriff’s Office. The case was prosecuted by Dominique Juliet Park, Assistant U.S. Attorney for the Eastern District of Washington.
U.S. Attorney’s Eastern Washington COVID-19 Strike Force Announces Three More IndictmentsRead the Press Release
Spokane, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury has indicted three additional individuals for COVID-19 Fraud as part of the Eastern Washington COVID-19 Strike Force. The Indictments announced today are the most recent charges brought by the Strike Force, which has brought criminal charges against numerous individuals and recovered millions of dollars in fraudulently obtained COVID relief funding.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
One Indictment announced today charges Stephanie and Stephen Murphy, ages 36 and 42, of Davenport, Washington, with nine counts of fraud for fraudulently-obtaining three PPP loans for fictitious landscaping and wood products manufacturing businesses in 2021. The second Indictment announced today charges Dondre Jackson, age 29, of Moses Lake, Washington, with six counts of fraud in connection with two fraudulently-obtained PPP loans for a fictitious catering business. The Indictments allege that these businesses did not exist and that the Defendants falsified information and submitted fake documents to make it appear as though they were legitimate businesses that qualified for PPP loans, resulting in Defendants collectively obtaining over $100,000 in relief funding that was designated for legitimate small businesses struggling with the economic impact of COVID-19.
“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Department of Homeland Security (DHS) OIG, Internal Revenue Service, Department of Energy OIG, and others.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG, TIGTA, and the Secret Service,” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”
The fraud charges carry sentences of up to 20 years in federal prison as well as restitution for fraudulently-obtained funds. This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force and by SBA OIG, TIGTA, DHS OIG, and the U.S. Secret Service. The cases are being prosecuted by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Yakima Resident Pleads Guilty to Fraudulently Obtaining More Than $59,000 in COVID-19 Relief FundsRead the Press Release
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Karla Padilla, age 48, of Yakima, Washington, has pleaded guilty to felony charges of fraudulently obtaining more than $59,000 in COVID-19 relief funds. The plea announced today is the most recent conviction obtained by the Eastern Washington COVID-19 Strike Force, which has brought criminal charges against numerous individuals and recovered millions of dollars in fraudulently obtained COVID relief funding.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, convictions, and civil penalties.
During the plea hearing and in the written plea agreement, Padilla acknowledged that she fraudulently obtained more than $59,000 in PPP and EIDL funding for her purported collectible car business, Queen B Collectibles, using false information about the business, and that she unsuccessfully attempted to obtain an additional nearly $200,000 in additional funding in additional applications that she made that were not approved. Padilla further admitted that her PPP and EIDL applications were false and fraudulent in that Queen B Collectibles was not an active business, and that, therefore, neither Padilla nor Queen B Collectibles were eligible for any federal EIDL or PPP funding.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG and TIGTA” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”
Judge Mary K. Dimke accepted Padilla’s guilty plea and set sentencing for December 20, 2022, in Yakima.
Special Assistant United States Attorney Frieda K. Zimmerman, Assistant United States Attorney Dan Fruchter, and Assistant United States Attorney Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
Federal Crackdown in Yakima County Yields Firearm Seizures and IndictmentsRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that a federal Grand Jury has returned indictments charging multiple Yakima residents with federal firearms offenses.
The Indictments are the result of the collaborative efforts of the United States Attorney’s Office, the Department of Homeland Security, Homeland Security Investigations (“HSI”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and the Yakima Police Department (“YPD”), who worked together as part of the U.S. Attorney’s Project Safe Neighborhoods (“PSN”) initiative. PSN is a critical piece of the Department of Justice’s crime reduction efforts. The PSN program focuses on prosecuting individuals who most significantly drive violence in our communities. It supports and fosters partnerships between law enforcement, schools, the faith community, and local community leaders, to prevent and deter future criminal conduct.
In the Eastern District of Washington, U.S. Attorney Waldref has designated Yakima County for this special community-based crime-fighting program, to focus on reducing gang and gun-related violent crime in the Yakima Valley.
United States Attorney Waldref announced the filing of Indictments today against the following Defendants:
• David Hernandez Moreno, also known as “Peanut,” age 26, of Yakima, Washington. Defendant Moreno has prior convictions for Identity Theft, 4th Degree Assault, and Robbery. He was arrested on April 25, 2022, and has been charged with being a felon in possession of a firearm in violation of federal law.
• Julio Armando Chavez-Medina, also known as “Loki,” age 23, of Yakima, Washington. Defendant Chavez-Medina has previously been convicted of Unlawful Possession of a Firearm on three separate occasions. He was arrested on May 13, 2022, and has been charged with being a felon in possession of a firearm in violation of federal law.
• Alberto Pastrana, age 25, of Yakima, Washington. Defendant Pastrana has previously been convicted of 2nd Degree Assault, 3rd Degree Assault, and 4th Degree Assault. He was arrested on May 6, 2022, and has been charged with being a felon in possession of a firearm and possession with the intent to distribute methamphetamine Ibarra has previously been convicted of 1st Degree Burglary and 2nd Degree Assault. He was arrested on June 28, 2022, and has been charged with being a felon in possession of a firearm.
• Juan Carlos Moreno-Oregel, also known as “Bambino,” age 21, of Yakima, Washington. Defendant Moreno-Oregel has previously been convicted of 1st Degree Robbery. He was arrested on June 30, 2022, and has been charged with being a felon in possession of a firearm.
• Ray Jesus Greedy, age 34, of Mabton, Washington. Defendant Greedy has previously been convicted of 4th Degree Assault. He was arrested on June 3, 2022, and has been charged with being a felon in possession of a firearm.
During the arrests in these cases, law enforcement officers recovered seven firearms and three high-capacity magazines. “The heart of the Project Safe Neighborhood initiative is a commitment to keeping our communities in Eastern Washington safe and strong. Our collaborative, focused prosecution efforts are part of the overall community solution to pressing violent crime issues,” said U.S. Attorney Waldref. She went on to commend DHS, ATF, and YPD’s Gang Unit for their dedication to combating gang violence and pursuing violent offenders in the Yakima community. “These arrests and Indictments demonstrate the impact we can have when federal, state, and local law enforcement work together.”
“ATF recognizes the role that firearms play in violent crimes, which affect all of us in the Eastern District,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “The people of Eastern Washington deserve to live in safety. To ensure that they can, we will continue to work with our partners to remove violent offenders and their firearms from our streets.”
“Illegal firearm activity will not be tolerated in our community,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI will continue to leverage law enforcement partnerships, to address violence, providing community safety through the dedicated service of our skillful agents.”
“I cannot overstate how important it is to the Yakima Police Department to have such a strong, effective relationship with the U.S. Attorney’s Office,” said Matthew Murray, Chief of the Yakima Police Department. “Indicting those who engage in violence in our community is a powerful tool and sends an even more powerful message. In a perfect world, those involved in violent conduct could find the strength to walk away from that life on their own – but if they will not, the Yakima Police Department will do everything we can to hold them accountable and make the community safer and stronger. U.S. Attorney Waldref and her team are present, proactive, and reliable partners in our focused effort to reduce violent crime, including domestic violence, in the Yakima community, and I thank and commend them.”
These cases are being prosecuted by Tom Hanlon, Rick Burson and Michael Murphy, Assistant United States Attorneys for the Eastern District of Washington.
An indictment is merely an allegation. All Defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Announces Two Additional Indictments as Part of COVID-19 Relief Fraud Strike ForceRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, has announced two new indictments resulting from the COVID-19 Relief Fraud Strike Force launched by the U.S. Attorney’s Office earlier this year. The Indictments were recently unsealed.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
“COVID-19 relief programs quickly ran out of money due to the number of people and businesses that requested funding, which meant that some deserving small businesses were not able to obtain funding to keep their businesses in operation during the COVID-19 pandemic,” said U.S. Attorney Waldref. “We created the COVID-19 Fraud Strike Force because it is critical to the strength and safety of our community in Eastern Washington that we all work together to combat pandemic-related fraud. The Strike Force is one way to ensure that limited resources are provided to deserving local businesses that provide vital services for our communities. I greatly appreciate the hard work and esprit de corps of so many talented agents and agencies that are contributing to our collective efforts.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, and civil penalties, including these two most recent indictments.
On May 3, a federal grand jury returned an Indictment charging Natasha Opsal, age 40, a former Spokane resident now residing in Great Falls, Montana, with nine counts of fraud in connection with several COVID-19 relief loans. The Indictment charges that Opsal fraudulently sought over $600,000 through the PPP and EIDL programs for fictitious businesses, over $50,000 of which she received. The Indictment was unsealed today following Opsal’s arrest and arraignment on the charges.
The same day, May 3, a federal grand jury returned an Indictment charging Yuriy P. Anishchenko, age 34, a former Spokane resident last known to be residing in Kent, Washington, with three counts of fraud in connection with two EIDL loans sought and obtained by Anishchenko. The Indictment charges that Anishchenko fraudulently obtained over $300,000 for non-qualifying and ineligible businesses. The fraud charges in both cases carry maximum sentences of up to 20 years in federal prison.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially by the U.S. Secret Service, SBA, FBI, and TIGTA” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding.”
Assistant United States Attorney Dominique Park is prosecuting United States v. Anishchenko, while Special Assistant United States Attorney Frieda Zimmerman and Assistant United States Attorney Tyler H.L. Tornabene are prosecuting United States v. Opsal. Both cases were investigated by the COVID-19 Relief Fraud Strike Force.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. Opsal, Case No: 2:22-CR-0053-TOR
United States v. Anishchenko, Case No: 2-22-CR-0057-TOR
United Against Hate Pilot Program in Eastern Washington Paves the Way for National Roll OutRead the Press Release
Spokane, Washington – U.S. Attorney Vanessa R. Waldref announced today the accomplishments of her office’s pilot outreach program, United Against Hate, which directly connects the United States Attorney’s Office and its local and federal law enforcement partners with a diverse group of community organizations to increase community understanding and reporting of hate crimes and hate incidents. This community outreach program seeks to address the chronic underreporting of hate crimes and hate incidents and build strong relationships between law enforcement and the communities they serve to more effectively share resources and respond to potential unlawful acts of hate.
U.S. Attorney Waldref announced the Eastern District’s engagement in the United Against Hate program in March of 2022. In the last few months, the U.S. Attorney’s Office has successfully partnered with several community organizations and houses of worship to discuss how law enforcement responds to reports of hate crimes, hate incidents, and unlawful discrimination. Presenters at United Against Hate events include Assistant United States Attorneys, detectives and crime analysts from the Spokane Police Department, and special agents from the Federal Bureau of Investigation. The United Against Hate programs have taken place throughout Eastern Washington, including at a Jewish Temple in Spokane, an Islamic Center in Pullman, and a Sikh Temple in Eastern Washington.
Based in part on the success of the United Against Hate program in Eastern Washington, on May 18, 2022, Assistant Attorney General Kristen Clarke formally announced the Department of Justice’s nationwide rollout of the program. U.S. Attorney Waldref was selected to present at the national rollout of United Against Hate today. Yesterday, at that rollout event U.S. Attorney Waldref encouraged other districts around the country to follow Eastern Washington’s lead in proactively reaching out to houses of worship, minority communities, and community organizations on the critical issue of combatting hate crimes and hate incidents.
“Law enforcement has a vital role in protecting the public from hate-motivated offenses.,” said U.S. Attorney Waldref. “By encouraging the reporting of hate crimes and hate incidents, the United Against Hate program provides law enforcement the tools to more effectively combat the uptick in hate-based violence.
The underreporting of hate crimes and hate incidents allows perpetrators to go undetected and un-prosecuted, which allows them to continue to spread their unacceptable messages of hate, fear, and intimidation. The United Against Hate program is designed to ensure that all members of our community feel safe and know that they live in a place where acts of hate will not be tolerated.”
“Hate crimes have no place in our community,” said Spokane Police Chief Craig Meidl. “The Spokane Police Department is pleased to partner with the US Attorney’s Office in educating the public about what constitutes a hate crime, how to report one, and how to combat such crimes. Hate crimes are particularly impactful not only because of the harm they cause directly to the victims, but because they also take a substantial emotional toll on victims, families, loved ones and our community. SPD is dedicated to holding accountable those responsible for crimes fueled by prejudice and bias,” said Chief Meidl.
Each United Against Hate presentation discusses vital pieces of information, which include:
‐ What constitute hate crimes or hate incidents and encouraging the public to always report them to law enforcement
‐ How to report a hate crime or hate incident to law enforcement. For example, to call 911 if there is a crime in progress or any potential immediate threat or danger. Otherwise hate crimes and hate incidents can also be reported to an individual’s local Crime Check (in Spokane, 509-456-2233) or by reporting it to the FBI (by calling 509-458-8100 or submitting tips to www.fbi.gov/tips).
‐ Even when prosecuting a hate crime or hate incident is not viable, the data from such reporting to law enforcement is essential both to investigating and prosecuting related hate crimes by the same individual or group and in determining where, when, and how to best deploy law enforcement resources, such as additional patrols, to help detect and deter hate crimes.
Community members who attended the United Against Hate presentations participate in group discussions and activities and provide the law enforcement panelists with their questions and concerns. Additionally, when appropriate, for United Against Hate presentations in Spokane County the U.S. Attorney’s Office has joined with the Spokane County Human Rights Task Force (SCHRTF), a private non-profit organization. SCHRTF’s Hate Reporting Tool Kit is an online tool for reporting hate crimes and hate incidents and includes an option to report anonymously. The SCHRTF Hate Reporting Tool Kit is found at www.ReportHateBias.org.
“The Spokane County Human Rights Task Force created its Hate Reporting Tool to determine the extent of hate activity occurring in our county in order to provide victim support and targeted outreach programming. The Hate Reporting Tool is simple to access and simple to use,” said Board member, Hershel Zellman. “We are excited to join with law enforcement in promoting the United Against Hate program and emphasize that the information provided through the Hate Reporting Tool is treated confidentially by the Task Force and has no connection to law enforcement,” said Past-President, Dean Lynch.
“My office is thrilled with the excellent reception and impact that our United Against Hate efforts have already had in making our communities in Eastern Washington safer and stronger. These presentations offer panelists and community members the opportunity to share stories, concerns, and understand our shared values for safe neighborhoods to raise our families and the freedom to express religious beliefs without fear,” said U.S. Attorney Waldref. Community members and leaders who are interested in exploring whether to host a United Against Hate presentation are encouraged to contact the U.S. Attorney’s Office Civil Rights Team at [email protected] or by leaving a voice mail at (509) 835-6306.
“We cannot bring the full force of the people’s power against hate crimes, hate incidents, and other civil rights violations without individuals being given opportunities to come forward. We encourage anybody in our community to report these concerns. We are all partners in keeping each other safe and building a stronger community that reflects our values of hope and belonging where we protect each other and have a joint mission to pursue justice for all,” stated U.S. Attorney Waldref.
The U.S. Attorney’s Office’s online complaint form is available at https://www.justice.gov/usaoedwa/edwa-civil-rights-webpage.The form can be emailed to [email protected], or concerns can be shared by leaving a voice mail for our Civil Rights Team at (509) 835-6306.
United Against Hate presentation photos from outreach to a local Jewish Temple:
Pictured from left to right: Special Assistant U.S. Attorney Frieda Zimmerman, Detective Brian Cestnik Spokane Police Department, FBI Special Agent Ryan Butler, Assistant U.S. Attorney Dan Fruchter, Spokane PD Sargent Zachary Dahle, Assistant U.S. Attorney Tyler Tornabene, Spokane PD Senior Crime and Intelligence Analyst Thomas Michaud, and Hershel Zellman board member Spokane County Human Rights Task Force.
Pictured: Assistant U.S. Attorney Dan Fruchter
Pictured from left to right: Special Assistant U.S. Attorney Frieda Zimmerman, Spokane PD Senior Crime and Intelligence Analyst Thomas Michaud, and Spokane PD Sargent Zachary Dahle.
Pictured from left to right: Assistant U.S. Attorney Dan Fruchter, Spokane County Human Rights Task Force board member Hershel Zellman, and Special Assistant U.S. Attorney Frieda Zimmerman.
Photo from U.S. Attorney’s outreach to an Eastern Washington Sikh Temple:
Pictured: Assistant United States Attorneys Tyler Tornabene (left) and Dan Fruchter (right)
Photo from U.S. Attorney’s and FBI Outreach to a Pullman Islamic Center:
Pictured: FBI Special Agent Christian Parker (left) and Assistant United States Attorney Tyler Tornabene (right)
Pictured: U.S. Attorney Waldref speaking at World Refugee Day in Spokane
California Mortgage Lender Agrees to Pay More Than $1 Million to Resolve Fraud AllegationsRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that American Financial Network, Inc., a mortgage lender based in Brea, California, has agreed to pay $1,037,145 to resolve allegations that it improperly and fraudulently originated government-backed mortgage loans insured by the Federal Housing Administration (FHA), a component of the U.S. Department of Housing and Urban Development (HUD).
“FHA-backed mortgages are a critical resource for first-time homebuyers, moderate-income borrowers, and families who have suffered negative credit due to the pandemic or other events out of their control,” said U.S. Attorney Waldref. “By improperly originating ineligible mortgages, lenders take advantage of the limited resources of the FHA program and unfairly pass the risk of loss onto the public.”
Since at least December 2011, AFN has been a participant in FHA’s Direct Endorsement Program. Through this program, a lender such as AFN is authorized to originate and approve mortgage loans to be insured by FHA without any prior review or approval by FHA. Lenders such as AFN are responsible for carefully underwriting the mortgage to make sure that it meets all FHA requirements. Once a mortgage loan is insured by FHA, if the borrower defaults or is unable to repay the mortgage, the lender that holds the mortgage note can submit a claim for insurance benefits to FHA to cover its losses.
The settlement resolves allegations that between December 2011 and March 2019, AFN knowingly underwrote certain FHA mortgages and approved for insurance certain mortgages that did not meet FHA requirements or qualify for insurance, resulting in losses to the United States when the borrowers defaulted on those mortgages. The settlement further resolves allegations that AFN knowingly failed to perform quality control reviews that it was required to perform.
This case began in March 2019 when a whistleblower, a former loan processor with AFN, filed a qui tam complaint under seal in federal court in Spokane. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. Pursuant to the settlement agreement, the relator in this case will receive $228,172 of the settlement, and will also recover her attorney’s fees, expenses, and costs.
“Quality and affordable housing is a critical issue in Eastern Washington and across the nation,” said U.S. Attorney Waldref. “Protecting the resources that support families who dream of purchasing their first home makes our community stronger. I commend the exceptional investigative work by Veterans Affairs Office of Inspector General and HUD’s Office of Inspector General that holds accountable those who abuse housing programs.”
“HUD’s Office of Inspector General is committed to working with the Department of Justice and our law enforcement partners to ensure that federal programs designed to help our nation’s most vulnerable are not abused,” said Special Agent-in-Charge Scott Tanchak. “Today’s settlement demonstrates the Government’s commitment to protecting the integrity of HUD programs.”
“Investigations such as these help safeguard the integrity of the home loan approval process and protect vulnerable veterans from fraudulent lending practices,” said Special Agent in Charge Jason Root of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG thanks the U.S. Attorney’s Office for the Eastern District of Washington and HUD’s Office of Inspector General for their partnership in this joint investigation.”
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington, HUD’s Office of Inspector General, and the U.S. Department of Veterans Affairs, Office of Inspector General, Spokane Resident Office.
Assistant United States Attorneys Tyler H.L. Tornabene and Dan Fruchter and Special Assistant United States Attorney Frieda K. Zimmerman handled this matter on behalf of the United States. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Spokane Man Sentenced to 7 Years for Second Child Pornography OffenseRead the Press Release
Spokane, Washington – Senior United States District Judge Rosanna Malouf Peterson sentenced Brian D. Knight, 47, of Spokane, Washington, to 7 years in federal prison for possessing child pornography, the highest sentence available under the terms of Knight’s plea agreement. Judge Peterson also ordered Knight to serve 10 years on federal supervision after he is released from prison. Knight pleaded guilty late last year.
According to court documents and proceedings, undercover FBI agents downloaded numerous images of child pornography from Knight in 2019 before executing a search warrant at his residence in Spokane. Agents found numerous digital devices containing child pornography that Knight appeared to have downloaded between 2017 and 2019. Knight also sustained a prior conviction for possession of child pornography under Washington law in 2009 after a minor girl disclosed that Knight had sexually abused her. In that case, Knight was sentenced to 14 months in state custody. In addition to having a prior child pornography conviction, Knight had also bookmarked multiple child rape stories, including one called “baby Sex Is the Best.tx.” He also had an “incest/underage sex permission form” on one of his devices. Knight also created – under an alias – a foundation called “Fish4Kids,” which was allegedly designed to give aquariums to autistic children. This purported foundation never actually provided any aquariums, but presumably would have put Knight in contact with autistic children. He also lied to law enforcement about his child pornography conduct, wiped his devices to hide the true volume of his child pornography collection, and had prior convictions for domestic violence assaults, interference with domestic violence reporting, and cyberstalking.
In imposing the highest sentence available under the terms of Knight’s guilty plea, Judge Peterson described his conduct as predatory and rejected defense arguments that he should receive a lower sentence because of certain medical ailments. The Court also expressed concern about Knight’s prior convictions and potential lack of commitment to sex offender treatment opportunities.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, commended the FBI’s investigation. “All children should be safe from sexual predators, particularly those who have offended before,” said U.S. Attorney Waldref. “Protecting children from harm, especially online exploitation, remains a priority of my office and is critical to building a safe and strong Eastern Washington community.”
“This is not the first time Mr. Knight has demonstrated disregard for the law and acted on his sexual interest in children,” said Donald M. Voiret, Special Agent in Charge of FBI Seattle Field Office. “The materials our agents recovered from his devices were chilling, and show why it is so important that the FBI continues to relentlessly seek out child pornography defendants.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
ꞏ Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
ꞏ Participation of PSC partners in coordinated national initiatives;
ꞏ Increased federal enforcement in child pornography and enticement cases;
ꞏ Training of federal, state, and local law enforcement agents; and
ꞏ Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Spokane Resident Office of the FBI, and was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.
United States Attorney Waldref Joins Attorney General Garland in Recognizing World Elder Abuse Awareness DayRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, joined United States Attorney General Merrick B. Garland today in recognizing World Elder Abuse Awareness Day.
“From the Palouse to the Cascades, and from the small towns to the big cities, respect for our elders is a principle we can all live by in the Eastern District of Washington,” said U.S. Attorney Waldref. “Having safe and strong communities means protecting our seniors, who can be among our most vulnerable—and are often the same people who have protected all of us when we have been vulnerable ourselves.”
U.S. Attorney Waldref’s comments dovetailed with the comments of Attorney General Garland. “The Department of Justice is committed to protecting and supporting the most vulnerable among us, including by advancing elder justice. Elder abuse, fraud, and neglect remain urgent problems in our country, particularly as the COVID-19 pandemic ushered in a new wave of exploitative practices targeted at seniors. The Justice Department has worked to expand our capacity to prevent elder abuse, prosecute perpetrators of that abuse, and protect and support elderly survivors.”
The Attorney General also noted several DOJ initiatives designed to protect and enrich the lives of the Nation’s seniors. “Our Elder Justice Initiative coordinates programmatic efforts to prevent and respond to elder abuse, including by developing training and resources for our partners at all levels of government and beyond. Our grantmaking components have also funded the development of coordinated, multi-disciplinary approaches to advancing elder justice, including Multidisciplinary Teams. In addition, Elder Justice Coordinators in each of our 94 U.S. Attorneys’ offices nationwide are working to successfully prosecute cases of elder abuse, including by supporting our Transnational Elder Fraud Strike Force. The Strike Force, which was launched and is led by the Department’s Consumer Protection Branch, brings together attorneys, agents, and analysts from across the federal government to disrupt and prosecute foreign-based fraud schemes that target American seniors.”
U.S. Attorney Waldref concluded by joining Attorney General Garland’s call for the United States to be a leader in the prevention of elder abuse: “On World Elder Abuse Awareness Day, the Department of Justice joins our partners across America and around the world in reaffirming our commitment to preventing and ending elder abuse in all of its forms.”
If you need assistance or to report elder abuse, please contact your local adult protective services agency through the Eldercare Locator or by call the helpline at 1-800-677-1116 Monday – Friday 9am - 8pm EST. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10:00 am – 6:00 pm EST.
Noncitizen in Yakima County Sentenced to 15 Years in Federal Prison for Methamphetamine Trafficking and Child ExploitationRead the Press Release
Spokane, Washington – On June 3, 2022, United States District Judge Salvador Mendoza, Jr., sentenced Lorenzo Jimenez Alanis, 47, of Mabton, Washington, to 15 years in federal prison for distributing methamphetamine, along with downloading and possessing a large collection of child pornography. Judge Mendoza also ordered Alanis to serve five years of federal supervision after he is released from prison, although under current U.S. law, it is likely that Alanis will be removed from the United States after his release from custody. Alanis pleaded guilty earlier this year.
According to information disclosed in court documents and during proceedings, Alanis was a source of supply for pound level quantities of methamphetamine associated with a drug trafficking organization operating directly out of Mexico. Alanis was arrested in a DEA Tri-Cities operation while he was delivering four pounds of methamphetamine. A search warrant was executed at his home and additional quantities of methamphetamine, multiple firearms and indicia of drug trafficking were also seized. When Alanis was arrested, officers searched his cellular telephone and discovered thousands of images and videos of children being sexually abused, tortured, and violated. Troublingly, Alanis’ collection included images and videos depicting prepubescent children who were the same age as his own children and younger. Alanis came to the United States unlawfully in 1992, when he was approximately 17-18 years of age, and has lived in the lower Yakima Valley since then.
“The wide scope of Mr. Alanis’ criminal conduct is staggering. This case involved both largescale methamphetamine dealing as well as downloading and collecting thousands of crime scene photos of minors being sexually abused,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “I commend the seamless communication and collaboration in this case between DEA, Customs and Border Protection, Homeland Security Investigations, the Internet Crimes Against Children (ICAC) Task Force in Richland, and our state and local partners—what began as a drug case concluded with a child exploitation offender behind bars for 15 years. Whether it is illegal drugs or illicit images of children, law enforcement in the Eastern District will continue to seek out, investigate, and prosecute criminal conduct to keep the communities of Eastern Washington safe and strong.”
“Mr. Alanis used his direct connections with a Mexican drug trafficking organization to supply methamphetamine in Eastern Washington, and even more disturbing, possessed large amounts of child pornography,” said Acting Special Agent in Charge Jacob D. Galvan, DEA Seattle Field Division. “The DEA, with its federal, state, and local partners, will relentlessly pursue individuals who seek to harm and exploit vulnerable individuals, especially children.”
“Mr. Alanis represented a triple threat to our community through his trove of videos depicting violent sexual abuse of children, distribution of methamphetamine, and firearms possession,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “I applaud the work of our federal and state law enforcement partners in Eastern Washington to address these critical threats and ensure that criminals like Mr. Alanis are brought to justice.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation
and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was also 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. Information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by DEA Seattle Field Division, Tri-Cities Resident Office, United States Customs and Border Protection, METRO Drug Task Force, the Kennewick, Richland, West Richland, and Pasco Police Departments, Homeland Security Investigations, Tri-Cities Resident Office, and the ICAC Task Force. The case was prosecuted by Stephanie A. Van Marter, Assistant United States Attorney for the Eastern District of Washington.