Eastern District of Washington
Press releases recorded for this federal judicial district.
White Swan Man Sentenced to Life in Federal Prison for First Degree Murder and Two Consecutive 10-Year Terms in Federal Prison for Discharging Firearms During Separate Crimes of ViolenceRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that George Skylar Cloud, age 22, of White Swan, Washington, and an enrolled member of Confederated Bands and Tribes of the Yakama Nation, was sentenced after having been convicted after a four-day jury trial in January 2019 of one count of First Degree Murder and one count of Discharging a Firearm During a Crime of Violence, and after having pleaded guilty on February 21, 2018, to one count of Discharging a Firearm During a Crime of Violence involving a separate incident. United States District Judge Stanley A. Bastian sentenced Cloud to a term of life imprisonment on the First Degree Murder count, and two consecutive 10-year terms of imprisonment on the Discharging a Firearm During a Crime of Violence counts.
According to information disclosed during court proceedings, in early to mid-March 2016, Cloud was a passenger in a Chrysler with multiple occupants. The owner of the Chrysler stopped to talk with an acquaintance near the Yakamart in Toppenish, Washington. Cloud decided to take the vehicle so he jumped into the front seat, displayed a firearm, and shot the car owner in her leg. The wounded victim got out and Cloud drove away in the stolen vehicle. Afraid of Cloud, the victim did not report the crime to law enforcement or seek medical treatment. However, members of the community later notified law enforcement that Cloud had bragged about shooting the car owner and stealing her car.
In late March 2016, Cloud and another individual mistakenly believed that Felina Metsker provided, or was going to provide, information to law enforcement about the incident so they decided to murder her. In late March 2016, Ms. Metsker was shot in the head in her residence. Cloud and another individual wrapped Ms. Metsker’s body in her bedding, dragged her across the floor of her residence, and placed her body in the stolen Chrysler. Cloud then transported Ms. Metsker’s body to a remote location within the boundaries of the Yakama Nation, and left her. Cloud returned to Ms. Metsker’s residence and requested some of his family members to assist him in trying to sanitize it. The stolen Chrysler was later abandoned in a rural area within the boundaries of the Yakama Nation.
On April 1, 2016, a citizen notified the Yakama Nation Police Department that blood had been observed in Ms. Metsker’s residence. Ms. Metsker had also been reported as a missing person. Detectives with the Yakama Nation Police Department responded to the residence, secured it and contacted the Federal Bureau of Investigation. After obtaining a warrant to search Ms. Metsker’s residence, FBI investigators observed dried blood on the residence’s ceiling, wall and floor. Investigators also perceived what appeared to be dried fragments of a human brain on a wall behind a bed. The FBI agent in charge of the investigation believed that the murderer(s) wrapped the victim’s body in bedding and transported the body to another location. In May 2016, human remains, including a skull, were discovered in a rural area within the boundaries of the Yakama Nation. The human remains were decomposed and animals had disturbed the area. Over the next 21 months, law enforcement officers conducted an unrelenting and thorough investigation.
As the investigation progressed, the FBI learned that Cloud had carjacked a victim in early to mid-March 2016, and stole her Chrysler vehicle. A Yakama Nation police officer eventually discovered the stolen Chrysler and notified the FBI. During a search of the Chrysler’s trunk, investigators discovered traces of DNA. This, along with other evidence, that had been collected was submitted to the FBI Laboratory in Quantico, Virginia. A forensic scientist determined that Ms. Metsker was the source of blood found in the residence, and the human remains were Ms. Metsker. An FBI metallurgist discovered traces of low zinc brass and lead embedded in the remains of Ms. Metsker’s skull, which was consistent with a bullet wound. No DNA or latent fingerprint evidence linking Cloud to Ms. Metsker’s residence was recovered. Several local residents were unwilling to cooperate with law enforcement during the investigation. In December 2017, a witness came forward and provided information concerning the murder.
At the sentencing hearing, Judge Bastian observed that although Cloud was only 22 years of age, he had a “remarkable history of incredible violence.” Furthermore, the Court observed that in murdering Ms. Metsker, Cloud stole a life from Ms. Metsker, he stole a mother from her children, and he stole a daughter from her mother.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the officers with the Yakama Nation Police Department and the Federal Bureau of Investigation who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentences imposed send a clear message that anyone who commits a violent federal crime will be sentenced to a lengthy term of federal prison.”
Two of Cloud’s family members have entered pleas of guilty for their respective roles. On December 14 and 19, 2018, Kristen Ashlie Windy Cloud and Nicole Lee Sunny Cloud pled guilty to one count of Misprision of a Felony. On March 6, 2019, Judge Bastion sentenced Kristen Ashlie Windy Cloud to serve an 18-month term of imprisonment, to be followed by a 1- year term of court supervision upon release from federal prison. Nicole Lee Sunny Cloud’s sentencing date is pending.
This case was investigated by the Yakima Resident Office of the Federal Bureau of Investigation, and the Yakama Nation Police Department. This case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
Nine Individuals Have Plead Guilty to Involvement in Staged AccidentsRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Richard Ronald Wells of Spokane, Washington pleaded guilty to multiple criminal charges in connection with his role in a conspiracy to defraud an insurance company by staging an automobile accident and to launder the criminally derived proceeds. Richard Ronald Wells pled guilty to six counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Chief United States District Judge Thomas O. Rice accepted Wells’ nine guilty pleas and scheduled a sentencing hearing for July 30, 2019, at 10:00 a.m. in Spokane, Washington.
According to court documents and information disclosed during court proceedings, Wells admitted to conspiring with others to stage an October 2016 accident in Liberty Lake, Washington, involving Wells’ 2015 Ram 3500 truck, Christopher Joseph Frangella’s 2005 Ford F250 truck, and another individual’s 2005 Baja boat in order to defraud Safeco Insurance Company out of approximately $338,266. Wells and Frangella allowed the other individual to deliberately crash Wells’ Ram 3500 truck into Frangella’s truck while towing the other individual’s boat. False material representations were made to police, emergency and medical personnel, and Safeco Insurance Company about the manner in which the accident occurred and the cause, nature and extent of the injuries incurred. Wells and the others falsely claimed that they suffered injuries from the accident and communicated with Safeco about their fraudulent claims via interstate telephone calls, facsimile transmissions, and mailings. Wells received an approximate $59,557 split of the fraud proceeds in the form of a check from Safeco.
Eight other individuals have pleaded guilty to criminal charges for their role in the scheme to defraud insurance companies: Ryan Folks Park of Spokane, Washington, pleaded guilty to fourteen counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit health care fraud, two counts of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Park admitted to directly participating in at least thirteen accidents staged by co-conspirators between 2013 and 2017 in Washington, Nevada, California, and Idaho. The fraudulent insurance proceeds generated by the thirteen staged accidents totaled approximately $2,836,852. He is scheduled to be sentenced on June 6, 2019.
Kimberly Rita Boito of Spokane, Washington, pleaded guilty to three counts of mail fraud, one count of wire fraud, one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit health care fraud, two counts of conducting monetary transactions in criminally derived property, and one count of conspiracy to conduct monetary transaction in criminally derived property. Boito admitted to participating in at least four staged accidents generating approximately $1,238,964 in fraud proceeds. She is scheduled to be sentenced on June 13, 2019.
Christopher Joseph Frangella of Nine Mile Falls, Washington, pleaded guilty to five counts of mail fraud and one count of conspiracy to commit mail and wire fraud. Frangella admitted to participating in five staged accidents in Washington, Idaho and Nevada. The fraudulent proceeds generated from the five accidents totaled approximately $968,737. He is scheduled to be sentenced on June 6, 2019.
Bonnie Jean Bonney of Placerville, California, pleaded guilty to five counts of mail fraud, one count of wire fraud, and one count of conspiracy to commit mail and wire fraud. Bonney admitted to participating in at least four staged accidents in California and Nevada which generated approximately $1,183,872 in fraudulent proceeds. She is scheduled to be sentenced on May 8, 2019.
Brittany Jo Harris of Newport, Washington, pleaded guilty to two counts of mail fraud, one count of conspiracy to commit mail and wire fraud, and one count of conspiracy to commit health care fraud. Harris admitted to participating in at least two staged accidents in Idaho and California that generated approximately $448,707 in fraudulent insurance proceeds. She is scheduled to be sentenced on July 18, 2019.
Stephanie Stock of San Jose, California, pleaded guilty to one count of conspiracy to commit mail and wire fraud. She is scheduled to be sentenced on July 16, 2019.
Matthew David Carter of Las Vegas, Nevada pleaded guilty to four counts of mail fraud and one count of conspiracy to commit mail and wire fraud. Carter admitted to participating in two staged accidents in Las Vegas, Nevada, that generated approximately $566,512 in fraud proceeds. He is scheduled to be sentenced on July 10, 2019.
Jason Allan Westfall of Las Vegas, Nevada, pleaded guilty to two counts of mail fraud, and one count of conspiracy to commit mail and wire fraud. Westfall admitted to participating in one stated accident in Las Vegas, Nevada, that generated approximately $275,607 in fraud proceeds. He is scheduled to be sentenced on July 10, 2019.
The vehicles used in some of the staged automobile accidents included: a 2002 Jaguar Vanden Plus; a 2005 Jaguar; a 2001 Jaguar XK8; a 2004 Infiniti FX35; a 2004 Cadillac Escalade; a 2006 Land Rover; a 2004 Mercedes Benz ML350; a 2008 Cadillac CTS; a 2007 BMW X3; and a 2001 BMW 530I. A 1995 Chaparral was used in a staged boating accident.
Eleven other defendants have been named in an indictment and are awaiting trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This investigation was conducted by the Federal Bureau of Investigation, IRS Criminal Investigation, United States Marshals Service, United States Social Security Administration Office of the Inspector General, and United States Drug Enforcement Administration, with assistance from the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
Prescription Drug “Take Back Day” in the Eastern District of WashingtonRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Saturday, April 27, 2019, from 10:00 a.m. to 2:00 p.m., is National Prescription Drug “Take Back Day.” This event will give the public its 17th opportunity in nine years 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 this Saturday with the Drug Enforcement Administration, Spokane Police Department, and other community partners at C.O.P.S. North Central/Knox Presbyterian Church, 806 W. Knox Avenue, Spokane.
U.S. Attorney Harrington said, “Participating in drug take-back events is one step that individuals can do to help positively impact the opioid crisis and protect their loved ones. Opioid overdoses have skyrocketed since the late 1990’s, becoming the worst drug epidemic in modern American history. Over 42,000 Americans died from opioid overdoses in recent years – more than deaths from automobile accidents or firearm-related homicides.”
Last fall, Americans turned in nearly 460 tons (more than 900,000 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and almost 4,800 of its state and local law enforcement partners. Of those numbers, Washington State collected 15,604 pounds of prescription drugs at approximately 96 collections sites operated by the DEA and 85 of its state and local law enforcement partners. In its 16 previous “take back” events, Washington State along has collected 224,037 pounds of prescription drugs. Overall, in its 16 previous Take Back events, DEA and its partners have taken in almost 11 million pounds – nearly 5,500 tons – of pills.
The disposal service is free and anonymous, no questions asked. Liquids, needles, or sharps cannot be accepted at the sites, only pills or patches.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The Substance Abuse and Mental Health Services Administration’s National Survey on Drug Use and Health shows year after year that the majority of misused and abused prescription drugs are obtained from family and friends, including someone else’s medication being stolen from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—pose potential safety and health hazards.
In the City of Spokane, year-round disposal sites are located at Spokane Police Department’s North Precinct, 5124 N. Market, Monday through Friday, 9:00 – 4:00; the Public Safety Building, 1100 W. Mallon Avenue, Monday through Friday 8:00 – 5:00; and Spokane Police Department’s Downtown Precinct in the Intermodal, 221 W. First, 24 hr/7 days a week. In Spokane County a year-round disposal site is located in the Spokane Valley Police Department lobby, 12710 E. Sprague Avenue, Monday through Friday, 8:00 – 5:00.
For more information about additional collection sites in Eastern Washington and the disposal of prescription drugs for the April 27, 2019, Take Back Day event, go to www.DEATakeBack.com
Toppenish Man Sentenced to 30 Months in Federal Prison for Involuntary ManslaughterRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Shane Marcus Lloyd, age 30, of Toppenish, Washington, and an enrolled member of the Confederated Bands and Tribes of the Yakama Nation was sentenced today after having pleaded guilty on November 15, 2018, to Crime on Indian Reservation – Involuntary Manslaughter. Senior United States District Judge Lonny R. Suko sentenced Lloyd to a 30-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. A restitution hearing is currently scheduled for June 27, 2019.
According to information disclosed during court proceedings, in March 2014, Lloyd was charged with driving under the influence. In November 2014, Lloyd pled guilty to first degree negligent driving and was placed on probation. Subsequently, a warrant was issued due to his alleged noncompliance with conditions of probation. On October 1, 2017, at approximately 5:00 a.m., Lloyd operated a motor vehicle while under the influence of alcohol. Lloyd ran a stop sign and crashed into another vehicle, which resulted in injuries to one victim and the death of the other victim. Law enforcement officers responded to the scene and smelled a strong odor of alcohol emanating from Lloyd’s person. Lloyd acknowledged that the accident was his fault.
Joseph H. Harrington said, “Driving under the influence of alcohol or drugs is a serious offense that can and does result in grave consequences to victims. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Yakama Nation Police Department, the Yakima County Sheriff’s Office and the Federal Bureau of Investigation who investigated this case. Their symbiotic professional partnership resulted in the successful outcome of this matter.”
This case was investigated by the Yakama Nation Police Department, the Yakima County Sheriff’s Office, and the Federal Bureau of Investigation. This case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
Yakima Man Sentenced to 188 Months in Prison for Drug TraffickingRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Carlos Peraza-Kissi, age 25, of Yakima, Washington, was sentenced April 17, 2019, for Possession with Intent to Distribute Methamphetamine. United States District Judge Stanley A. Bastian sentenced Peraza-Kissi to a 188-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, between October 2016 and April 2018, Peraza-Kissi organized the transportation of large amounts of methamphetamine from Arizona to Yakima, Washington. Peraza-Kissi also sold methamphetamine, heroin, and fentanyl in Yakima during that time. In April 2018, after observing Peraza-Kissi engaging in suspicious behavior, U.S. Drug Enforcement Administration (DEA) agents initiated a traffic stop on the vehicle he was driving and arrested him. Through further investigation, DEA found over three pounds of heroin, over two pounds of methamphetamine, twenty grams of fentanyl, and four firearms.
United States Attorney Harrington stated, “This case involves the distribution of dangerous drugs over an extended period of time, and the possession of guns. The sentence imposed reflects the seriousness of Peraza-Kissi’s conduct. I commend the investigative efforts of the DEA, Yakima Police Department and Yakima County Sheriff’s Office.”
The Drug Enforcement Administration, Yakima Police Department, and Yakima County Sheriff’s Office conducted the investigation of this matter. The case was prosecuted by Benjamin D. Seal, Assistant United States Attorney for the Eastern District of Washington.
Toppenish Man Sentenced to 10 Years in Federal Prison for Shooting at ResidenceRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Damien T. White, age 21, of Toppenish, Washington, and an enrolled member of the Confederated Bands and Tribes of the Yakama Nation, was sentenced today after having pleaded guilty on January 9, 2019, to Discharge of a Firearm During a Crime of Violence. United States District Judge Stanley A. Bastian sentenced White to a 10-year term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on May 20, 2017, White, an associate of the Sureno criminal street gang, approached a residence in Toppenish, Washington. White pulled out a firearm, aimed, and shot at the residence. White then ran away. Small children and several other individuals were inside the residence at the time of the shooting. Fortunately, no one was injured. Citizens of the community, who were fed up with gang-related violence, immediately reported the incident to the police.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Toppenish Police Department, the Yakama Nation Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court sends a clear message to others who may choose to engage in such criminal activity.”
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 Yakama Nation Police Department, the Toppenish Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Meghan M. McCalla and Tom Hanlon, Assistant United States Attorneys for the Eastern District of Washington.
Tri-Cities Repeat Offender Sentenced to More Than 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Antonio Faustino Deleon, age 31, from the Tri-Cities Washington area, was sentenced, after having pleaded guilty to Possessing with Intent to Distribute 50 Grams or More of Pure Methamphetamine. United States District Judge Salvador Mendoza Jr. sentenced Deleon to a 188-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Deleon was contacted on March 29, 2018 by the Kennewick Police Department’s Criminal Apprehension Team (“CAT”) after they received a report of a suspicious vehicle in a parking lot. CAT Detectives immediately recognized Deleon as an occupant of the vehicle based on multiple previous encounters, to include a recent encounter where Deleon pulled a knife on a law enforcement officer. CAT Detectives knew there was an active warrant for Deleon’s arrest. Upon announcing themselves as police officers, Deleon and two other occupants of the vehicle made multiple furtive movements, and continued to do so contrary to multiple police commands. Eventually, the three occupants were removed from the vehicle without incident. CAT Detectives observed in plain view a large amount of methamphetamine on the floorboard of the vehicle. A search of the vehicle revealed an additional quantity of methamphetamine and heroin, weighing approximately one kilogram, in a backpack that contained Deleon’s identification. Deleon is a known long-term affiliate with the Sureno criminal street gang, and he is known by the moniker “Peanut.” Deleon’s history reveals at least thirty-one prior criminal cases. CAT Detectives referred the case to the FBI Safe Streets Task Force for federal prosecution.
During sentencing, Judge Mendoza noted Deleon’s significant criminal history, committing “crime after crime,” and that the public needed to be protected from Deleon’s future criminal activities.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Kennewick Police Department and the FBI who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court removes a drug trafficker from our streets and sends a clear message to others who may choose to engage in such criminal activity.”
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 Kennewick Police Department in partnership with the Federal Bureau of Investigation’s Safe Streets Task Force, which is comprised of officers from the Benton County Sheriff’s Office, Kennewick Police Department, Pasco Police Department, Richland Police Department, and Washington Department of Corrections. This case was prosecuted by Caitlin Baunsgard, Assistant United States Attorney for the Eastern District of Washington.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
Spokane -- Joseph H. Harrington, United States Attorney for the Eastern District of Washington, joined the Department of Justice in announcing observance of National Crime Victims’ Rights Week, April 7-13, 2019.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured."
U.S. Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington is committed to serving and protecting victims of federal crimes. We remain resolute to achieving justice for all victims of federal crimes.”
Each year in April, the Department of Justice and United States Attorneys’ offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 7-13, with the theme: Honoring Our Past. Creating Hope for the Future.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the Eastern District of Washington’s Victim Witness Program at (509) 353-2767.
Foreign National Indicted for Allegedly Receiving and Possessing Child Pornography and Possessing Counterfeit Green CardRead the Press Release
Spokane, Washington – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that a Federal grand jury indicted Orlando Baires-Cartagena for receiving and possessing child pornography and possessing a counterfeit Permanent Resident Card. A Permanent Resident Card, also known as a Green Card, is issued as proof that a foreign national is authorized to live and work in the United States. Baires-Cartagena was arrested and made his initial appearance on April 3, 2019, before U.S. Magistrate Judge John T. Rodgers in Federal Court in Spokane, Washington. Judge Rodgers ordered Baires-Cartagena detained pending trial.
According to allegations in the child pornography Indictment, Baires-Cartagena received images depicting minor and prepubescent children engaging in sexually explicit conduct and possessed visual depictions of child pornography, including images of prepubescent minors and minors who had not attained the age of twelve years old engaging in sexually explicit conduct. If convicted, the receipt of child pornography charge carries a maximum penalty of not less than 5 years nor more than 20 years imprisonment, a $250,000 fine, a term of court supervision of not less than 5 years nor more than life, and a special assessment of $5,000. The possession of child pornography charge carries a maximum penalty 20 years imprisonment, a $250,000 fine, up to a lifetime term of court supervision, and a special assessment of $5,000. Baires-Cartagena also would be required to register as a sex offender.
According to the allegation in the immigration fraud Indictment, Baires-Cartagena possessed a counterfeit Permanent Resident Card in the name of “Orlando Baires” that he knew to be forged, counterfeited and falsely made. If convicted, Baires-Cartagena faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and 3 years of court supervision after release.
Joseph H. Harrington said, “These Indictments demonstrate the United States Attorney’s Office for the Eastern District of Washington is committed to pursuing aggressively those accused of child pornography offenses and to protecting the integrity of the immigration process -- possessing a counterfeit immigration document circumvents the immigration laws and undermines confidence in the system. The charges contained in the Indictments are merely allegations. Baires-Cartagena is presumed innocent, as is any defendant in a criminal case, until proven guilty beyond a reasonable doubt in a court of law.”
The child pornography investigation 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.”
The charges contained in the Indictments are the result of an investigation by the Federal Bureau of Investigation and Southeast Regional ICAC Task Force, the United States Department of Homeland Security, United States Border Patrol, Homeland Security Investigations, and Moses Lake Police Department. The cases are being prosecuted by James Goeke and Matthew Duggan, Assistant United States Attorneys for the Eastern District of Washington.
U.S. Attorney’s Office for the Eastern District of Washington Collects $8,186,767 in Civil and Criminal Actions for Victims of Crime and U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Spokane, Washington – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced today that the Eastern District of Washington collected $8,186,767 in criminal and civil actions in Fiscal Year 2018. Of this amount, $1,750,262 was collected for victim restitution in criminal actions and $6,436,504 was collected in civil actions.
Additionally, the U.S. Attorney’s Office for the Eastern District of Washington worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,489,999 in civil cases pursued jointly by these offices.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending September 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices across the nation.
U.S. Attorney Harrington stated, “Today’s announcement is a testament to the diligent work of the United States Attorney’s Office for the Eastern District of Washington. It also sends a strong message that the United States Attorney’s Office will aggressively undertake efforts to ensure that victims are wholly restored, restitution and fines are paid in full, and civil financial obligations are satisfied.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” said Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
Examples of criminal and civil collections by the Eastern District of Washington in fiscal year 2018 include:
•Full recovery of restitution to victims in multiple Project Safe Childhood cases, such as United States v. Craig Morgenstern and United States v. Jeffrey Wint;
•Writ of execution sales of three properties resulting in nearly $1,000,000 in restitution and fine recoveries, plus additional civil collection of approximately $340,000 to the IRS and nearly $100,000 to local tax authorities in the matter United States v. J. Scott Vrieling;
•$3.2 million paid by Washington Closure Hanford, LLC in resolution of False Claims Act litigation in connection with small business subcontracts in connection with the Department of Energy’s Hanford nuclear site; and
•$2,489,999 paid by the State of Alaska in resolution of False Claims Act litigation involving States and their private consultants employing improper quality control practices with respect to their SNAP (food stamp) programs.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Department of Justice Awards $5.7 Million to Support Native American Crime Victims in Seven StatesRead the Press Release
Spokane, Washington – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, joined the Department of Justice in announcing ten awards totaling more than $5.7 million to support crime victims in Native American communities in seven states: Washington, Alaska, California, Oklahoma, Minnesota, New Mexico, and Wisconsin. One of the Native American communities receiving an award is located in the Eastern District of Washington. The Kalispel Indian Community of the Kalispel Reservation was awarded $679,259 to expand the Tribe’s victim assistance services program to serve victims of human trafficking. The funding will support the hiring of a victim advocate, as well as travel and training costs for staff. Funds will also be used to develop a strategic plan to improve crime victim services.
The group of 10 awards is the second in a series of grants being made by the Office of Justice Programs’ Office for Victims of Crime (OVC) to American Indian and Alaska Native communities. OVC has now awarded more than $9 million of up to $100 million to support tribal victim service programs. The awards—17 in total so far—will fund critical crime victim services, such as counseling, transitional housing, emergency services and transportation. The grants are supported by the Crime Victims Fund, a repository of federal criminal fines, fees and special assessments. The fund includes zero tax dollars.
“American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”
Joseph H. Harrington said, “This is a very significant award and it will enhance the Kalispel Indian Community’s ability to provide the important and critical services needed to effectively support victims of crime.”
According to the Bureau of Justice Statistics, American Indians and Alaska Natives experience violent crimes at rates far greater than the general population.
“American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership to improve the nation’s capacity to prevent and reduce crime, assist victims, and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
Spokane Dentist Pleads Guilty to Distributing OpioidsRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced today that Dr. James Stein-Sheridan Shelby, age 50, of Spokane, Washington, pled guilty to conspiring with Timothy James Felch, age 36, of Spokane, Washington, to distribute opioid pain medications, hydrocodone and tramadol, without a legitimate medical purpose and outside the usual course of professional practice. Dr. Shelby also pleaded guilty to three separate counts of distributing hydrocodone without a legitimate medical purpose and outside the usual course of professional practice. Dr. Shelby faces maximum terms of imprisonment of twenty years on each charge. United States District Judge Rosanna Malouf Peterson accepted Shelby’s guilty pleas and scheduled a sentencing hearing for May 15, 2019, at 9:45 a.m. in Spokane, Washington. Shelby’s co-defendant, Felch, entered a plea of guilty to the conspiracy charge in October 2018, and his sentencing hearing is on April 24, 2019, at 11:00 a.m.
According to court documents and information disclosed during the court proceedings, the U.S. Drug Enforcement Administration (DEA), Tactical Diversion Squad, and U.S. Department of Health & Human Services (HHS), Office of the Inspector General (OIG), initiated a criminal investigation of Dr. Shelby, a dentist, after receiving information that he was distributing hydrocodone and tramadol, without a legitimate medical purpose and outside the usual course of professional practice to an individual identified as M.B. In April 2018, DEA and HHS OIG executed a warrant to search Shelby’s clinic, Indian Trail Dental Care. When interviewed by federal agents, Shelby immediately indicated he knew DEA agents were at his clinic because of his prescribing to M.B. Shelby stated he initially performed extensive dental work on M.B. and prescribed her hydrocodone when she complained of pain in the lower left side of her jaw with a lump. Shelby stated that he eventually became involved in an inappropriate relationship with M.B. and she became addicted to hydrocodone. Shelby also stated that it had been several years since M.B. had been a regular patient and he was ultimately responsible for the prescriptions. In furtherance of the conspiracy, Shelby issued numerous prescriptions in Felch’s name and in the names of others as a mechanism to provide M.B. with additional amounts of hydrocodone and tramadol.
United States Attorney Harrington said, “Today’s guilty plea should serve as a warning to all medical professionals that if you prescribe opioids without a legitimate medical purpose and outside the usual course of professional practice, you risk federal prosecution. I commend the DEA and HHS-OIG agents who investigated this case.”
This investigation was conducted by the United States Drug Enforcement Administration and the United States Department of Health & Human Services, Office of the Inspector General. This case is being prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
Ninth Circuit Affirms Dismissal of Former U.S. Department of Agriculture Employee’s Federal Disability Discrimination and Whistleblower Retaliation LawsuitRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced today that the U.S. Court of Appeals for the Ninth Circuit affirmed the dismissal of a disability discrimination and whistleblower retaliation lawsuit brought by a former federal employee of the U.S. Department of Agriculture (USDA).
According to information disclosed during the court proceedings, Wendy Alguard, of Yakima, Washington, sued the Department of Agriculture claiming that the Agricultural Marketing Service, where Alguard worked as a commodity food grader, reassigned her after she reported that the Snokist cannery was hiding totes of moldy applesauce in 2011. Alguard claimed that the agency punished her for whistleblowing, by reassigning her and eventually removing her from federal service when she refused a directed reassignment. Alguard initially brought administrative claims before the Office of Special Counsel (OSC), the USDA’s EEO Office, and the Merit System Protection Board (MSPB). She withdrew her claim before the OSC and lost before the USDA and MSPB and the lawsuit sought review of those decisions. Alguard sought damages of approximately $600,000.00.
Chief Judge Thomas O. Rice dismissed the disability discrimination claim in August of 2015. Alguard filed her appeal with the Court of Appeals in October 2015. After two rounds of briefing, the Court of Appeals affirmed Chief Judge Rice’s order dismissing the case. The Court of Appeals found that the agency showed substantial evidence that overstaffing and declining work led to the decision to reassign Alguard, that any evidence of a retaliatory motive was weak at best, and that the agency correctly identified which workers would be reassigned.
Joseph H. Harrington stated, “Claims of employment discrimination and whistleblowing in federal employment are taken seriously. But when meritless lawsuits are brought, the United States Attorney’s Office for the Eastern District of Washington is dedicated to vigorously defending those suits and protecting the public purse.”
This case was defended by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
Spokane Valley Woman Pleads Guilty to Stealing over $88,000 from Greater Spokane County Meals on WheelsRead the Press Release
Spokane – Today, Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Michelle Susan Ferrell, age 59, of Spokane Valley, Washington, pled guilty to wire fraud. Senior United States District Judge Robert H. Whaley accepted Ferrell’s guilty plea and scheduled a sentencing hearing for May 14, 2019 at 9:30 a.m. in Spokane, Washington.
According to court documents and information disclosed during the court proceedings, between May 2013 and April 2018, Ferrell was a bookkeeper at Greater Spokane County Meals on Wheels (Meals on Wheels). Meals on Wheels, which is part of the nationwide Meals on Wheels America organization operating throughout the United States, relies on government funding and private donations to provide over 1,000 meals each day to elderly and disabled residents of Spokane County. As a bookkeeper for Meals on Wheels, Ferrell had access to Meals on Wheels’ bank accounts, debit cards, and payroll system.
While employed at Meals on Wheels, Ferrell frequently used Meals on Wheels funds and bank accounts to pay for her unauthorized personal expenses, including mortgage, utility, and property tax payments on Ferrell’s residence, and to electronically transfer funds to herself and her businesses. Ferrell frequently disguised these transfers in Meals on Wheels’ internal accounting system to make them appear as though they were legitimate Meals on Wheels expenses. In this manner, between May 2013 and April 2018, Ferrell stole $88,800 in Meals on Wheels funds for her own personal use.
Additionally, Ferrell, who was responsible for paying Meals on Wheels’ quarterly payroll taxes to the United States Internal Revenue Service (IRS), frequently underpaid the Meals on Wheels’ payroll taxes, or failed to file tax returns at all, and then falsified Meals on Wheels’ internal accounting records to reflect that it had paid the full amount due. Ferrell did this in order to ensure that Meals on Wheels would have funds in its account that Ferrell could use to pay her personal expenses without drawing attention to herself. When Meals on Wheels discovered this fraud, it was required to file corrected returns with the IRS, resulting in Meals on Wheels owing the IRS an additional over $120,000 in back payroll taxes, not including penalties or interest for late payment, which are still being assessed by the IRS.
United States Attorney Harrington said that “every day, more than one thousand elderly and disabled Spokane County residents rely on Meals on Wheels to provide food so that they don’t go to bed hungry or undernourished. Stealing from an organization that provides a crucial service to so many of the most vulnerable members of our community is simply beyond the pale.” Harrington continued, “I want to especially commend the stellar investigative work done by the FBI in making this result possible. This case demonstrates that our office will continue to work closely with our law enforcement partners to ensure that our tax dollars and charitable donations do not fall prey to fraud and embezzlement.”
The wire fraud charge carries a maximum penalty of 20 years imprisonment, a $250,000 fine, up to 3 years of court supervision after release, and restitution. Additionally, as part of the plea agreement, Ferrell has agreed to the United States’ forfeiture of her residence in Spokane Valley, because it represents the proceeds of the fraud.
This investigation was conducted by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene.
Illegal Alien Sentenced to 19 Years in Federal Prison on Cocaine and Firearm ChargesRead the Press Release
Spokane, Washington – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Marcos Ramirez-Mercado, 46, of Yakima, Washington, and Michoacán, Mexico, was sentenced today after having pleaded guilty on September 6, 2018, to a conspiracy to distribute five kilograms or more of cocaine and the possession of a firearm in furtherance of the conspiracy. Senior United States District Judge William Fremming Nielsen sentenced Ramirez-Mercado to a 19-year term of imprisonment, to be followed by a 10-year term of court supervision following his release from prison. Upon his release from prison Ramirez-Mercado will likely be removed from the United States to his native Mexico and not be permitted to return.
According to information disclosed during the court proceedings, Ramirez-Mercado was the leader and organizer of a years-long, wide-ranging drug conspiracy in which whole kilograms of powder cocaine were secreted in boxes of drywall compound and trafficked from Yakima into Spokane. When law enforcement officers arrested Ramirez-Mercado in his car in June 2017, they found three drywall boxes, each of which contained a kilogram of cocaine, four boxes of .223 ammunition, and almost $2,000 in cash. In a secret room in the basement of his house in Yakima, officers recovered almost $550,000 in cash, eight firearms and ammunition, a kilogram of cocaine, and digital scales.
Prior to Ramirez-Mercado’s arrest, the Federal Bureau of Investigation obtained a number of lawful wiretaps during the course of the investigation, which began in 2014, and resulted in indictments being brought against Ramirez-Mercado and 21 other defendants. The wiretaps revealed that Ramirez-Mercado’s organization was trafficking huge amounts of cocaine into and across Eastern Washington, in quantities as high as a kilogram every few weeks, for years. Senior Judge Nielsen noted that the amount of cocaine for which Ramirez-Mercado was actually responsible will never truly be known, but it was certainly far much more than the three kilograms recovered from his car.
At Ramirez-Mercado’s sentencing hearing, several of his family members addressed the Court, describing him as a good man who made a mistake. Judge Nielsen, however, concluded that his years of trafficking large quantities of narcotics were much more than a mistake, and that his conduct was consistent with the lifestyle of a drug dealer. As Judge Nielsen noted, Ramirez-Mercado caused his customers to become addicted to cocaine and then held them captive to their addiction so he could continue to make a profit.
Joseph H. Harrington said, “The sentence imposed today reflects the seriousness of Ramirez-Mercado’s grave criminal conduct. I commend the FBI, the Spokane Sheriff’s Department, Spokane Police Department, and Washington Department of Corrections, along with the United States Customs and Border Protection and the Yakima Police Department Safe Streets Task Force. The cooperation among federal, state, and local law enforcement officers was remarkable. I salute their diligence and tenacity in pursuing the investigation wherever it led.”
Special Agent in Charge Raymond P. Duda of the FBI’s Seattle Field Office, agreed: “The lengthy sentence for Ramirez-Mercado, the leader of this drug trafficking conspiracy, demonstrates the serious consequences for individuals who compromise the safety and wellbeing of communities in Eastern Washington by engaging in illegal drug activity. Those who seek to enrich themselves at the expense of our communities should expect similar consequences. The FBI is particularly thankful for our local, state, and federal law enforcement partners, who were integral in this investigation.”
This case was part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation was conducted by the FBI Safe Streets Task Force, which includes law enforcement officers with the Spokane Sheriff’s Department, Spokane Police Department, and Washington Department of Corrections. United States Customs and Border Protection and the Yakima Police Department also provided invaluable assistance throughout the investigation. The case was prosecuted by David Herzog, an Assistant United States Attorneys for the Eastern District of Washington.
United States Files Suit Against Lockheed Martin, Mission Support Alliance, and Lockheed Executive Frank Armijo for Fraudulent Overcharging and KickbacksRead the Press Release
WASHINGTON - The United States has filed suit against Mission Support Alliance LLC (MSA), Lockheed Martin Corporation (LMC), Lockheed Martin Services Inc. (LMSI), and Jorge Francisco “Frank” Armijo for alleged false claims and kickbacks in connection with a multi-billion dollar contract with the Department of Energy (DOE) to support the environmental cleanup at the Hanford Site near Richland, Washington, the Justice Department announced today. During the period between 2010 and 2015, MSA, which was partly-owned by an LMC subsidiary, held a DOE prime contract to provide mission support services, including information technology services, for thousands of federal employees and contractors at the Hanford Site. Armijo is a Vice President of LMC and also served as a President of MSA between 2010 and 2015.
According to the Complaint filed by the United States, the Defendants fraudulently obtained tens of millions of dollars from DOE through a series of false statements, half-truths, material omissions, corrupt kickbacks, and outright lies. Defendants used these false statements in order to fraudulently obtain DOE consent to a $232 million subcontract between MSA and LMSI, another LMC subsidiary, according to the Complaint. The United States’ Complaint alleges that Defendants misrepresented the billing rates charged to DOE, the level of effort that they estimated would be needed to complete various work, the anticipated additional profit for LMSI on the subcontract, and MSA’s visibility into LMSI’s internal costs and profit estimates. According to the Complaint, Defendants’ fraud allowed them to obtain grossly inflated and improper additional profit on the subcontract, over and above the profit that LMC was already earning on the very same work through its ownership of MSA.
The United States’ Complaint alleges that certain LMC employees, including Armijo and Rich Olsen, another LMC official assigned to work as MSA’s Chief Financial Officer, were tasked by LMC to perform key roles for MSA, but that these LMC employees continued to work on behalf of LMC while assigned to MSA. According to the Complaint, these employees, including Armijo, misused their MSA positions to assist LMC in obtaining impermissible profit and grossly inflated pricing. Specifically, the Complaint alleges that these individuals falsely represented to DOE that MSA had independently evaluated LMSI’s pricing and proposal and determined that it represented fair and reasonable pricing for DOE and did not contain any additional profit for LMSI for the same work on which LMC was already earning profit through its ownership of MSA. The Complaint alleges that LMC paid Armijo and others millions of dollars in cash and LMC stock in return for these efforts as part of an incentive compensation program. According to the Complaint, these payments were kickbacks paid by LMC to Armijo and others as a reward for improperly using their MSA positions to provide favorable treatment for LMC.
In August 2018, Olsen paid $124,440 to resolve his liability arising from his role in the scheme set forth in the Complaint, and agreed to cooperate in the United States’ investigation of the Defendants and subsequent enforcement efforts.
Joseph H. Harrington, United States Attorney for the Eastern District of Washington, said: “Fraud, corruption, and self-dealing at Hanford will simply not be tolerated. The critical mission of cleaning up the Hanford Site in a safe, timely, environmentally responsible, and cost-efficient manner is too important to the public and the residents of this region.” Harrington went on to state, “This enforcement action demonstrates and underscores the United States Attorney’s Office’s commitment to working with our law enforcement partners to hold fraudsters accountable, whether they are individuals, businesses, or the nation’s largest corporations.”
“Where Congress has allocated money for specific purposes, we will not tolerate unlawful conduct by contractors who seek to enhance their profits at the expense of taxpayers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit demonstrates that the Department of Justice will work tirelessly to ensure that public funds are used for the important purposes for which they are intended.”
“The Department of Energy Office of Inspector General is committed to ensuring the integrity of Departmental contracts and financial expenditures,” said Teri L. Donaldson, Department of Energy Inspector General. “We take allegations of false claims, overbilling and kickbacks very seriously and will aggressively investigate these matters to ensure efficiency throughout DOE programs. We appreciate the efforts of the DOJ in pursuing these allegations and will continue our collaboration with the DOJ to investigative those who seek to defraud Department programs.”
Joe Franco, Deputy Manager for the Richland Operations Office at Hanford, said “the Department of Energy identified the possibility of fraud to the Department of Justice and DOE Office of Inspector General during DOE’s administration of the contract. DOE appreciates the efforts of the Department of Justice and the Inspector General, and we will continue to assist with their investigation and prosecution of the alleged fraudulent activity. DOE will not tolerate fraudulent behavior by its contractors and will continue to strengthen its federal oversight at Hanford.”
Assistant United States Attorneys Tyler Tornabene and Dan Fruchter are handling this matter in conjunction with the Commercial Litigation Branch of the Department of Justice’s Civil Division, with analytical support from Affirmative Civil Enforcement Investigative Analyst Jeanne Harkleroad and investigative support from the DOE’s Office of Inspector General. The claims asserted by the United States are allegations only; there has been no determination of liability. The lawsuit is captioned United States v. Mission Support Alliance, LLC, et al. (E.D. Wash.).
Richland Man Sentenced to 28 Years in Federal Prison for Producing and Distributing Child PornographyRead the Press Release
Spokane, Washington – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Zayne Kent Barbre, 29, of Richland, Washington, was sentenced today after having pleaded guilty on October 18, 2018, to four counts of Production of Child Pornography and one count of Distribution of Child Pornography. United States District Judge Salvador Mendoza, Jr. sentenced Barbre to a 28-year term of imprisonment on the production counts, which involved Barbre recording himself sexually assaulting minor boys, and 20 years on the distribution count, which involved him sending those videos to other adult men. The Court ordered those sentences to be served concurrently, and recommended that related state charges be served concurrently as well, and imposed a lifetime of supervised release on Barbre.
According to information disclosed during court proceedings, Barbre: drugged 14- and 15-year old minors with methamphetamine before engaging in sex with them; got them hooked on methamphetamine so he could continue to rape them in exchange for providing them with drugs; engaged in human trafficking by making a minor prostitute himself to other adult men in exchange for methamphetamine and money; enforced his will by telling a minor he had a gun; harbored a minor so he could ply him with methamphetamine and engage in sex with him; and repeatedly recorded these heinous crimes, often without his drugged victims’ knowledge. At times, Barbre handcuffed his victims while sexually assaulting them. After Defendant’s arrest, law enforcement agents searched his digital devices and discovered 170 still images and 272 videos of child abuse. Sixty-seven of the still images and twenty-four of the videos were unique, meaning Barbre likely created them.
Barbre’s conduct also violated numerous state laws, and the global resolution in this case was negotiated in conjunction and consultation with the Benton County Prosecutor’s Office, who filed State charges against Barbre for related criminal acts.
Joseph H. Harrington said, “The 28-year sentence imposed today reflects Barbre’s despicable and cruel criminal conduct. As Judge Mendoza noted during today’s sentencing hearing, there are only a handful of crimes as monstrous as what Barbre did here. On behalf of our communities in the Eastern District of Washington, I salute the individual bravery of each the victims who came forward in this case -- we all support you as you continue to recover. This successful prosecution is the direct results of the seamless law enforcement partnerships among the Kennewick and Richland, Washington Police Departments, the Southeast Regional ICAC Task Force, and the United States Department of Homeland Security, Homeland Security Investigations.”
“The abuse inflicted upon these young victims causes life-long mental and physical scars, said Brad Bench, special agent in charge of HSI Seattle. We arecommitted to finding and arresting these dangerous child predators; and I am grateful for our dedicated agents and the strong partnerships with all the agencies involved in bringing them 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. 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 Southeast Regional ICAC Task Force, the United States Department of Homeland Security, Homeland Security Investigations, and Police Departments for Kennewick and Richland, Washington. The case was prosecuted by David Herzog, Assistant United States Attorney for the Eastern District of Washington.
United States Files False Claims Act Suit Against Mission Support Alliance LLC, Several Lockheed Affiliates, and Jorge Francisco Armijo for Inflated Information Technology Subcontract CostsRead the Press Release
The United States has filed suit against Mission Support Alliance LLC (MSA), Lockheed Martin Corporation (LMC), Lockheed Martin Services Inc. (LMSI), and Jorge Francisco Armijo for alleged false claims and kickbacks in connection with a multi-billion dollar contract with the Department of Energy (DOE) to support the environmental cleanup at the Hanford Site near Richland, Washington, the Justice Department announced today. MSA is a Delaware Limited Liability Corporation that, during the time alleged in the lawsuit, was owned by Lockheed Martin Integrated Technology LLC, Jacobs Engineering Group Inc., and Centerra Group (formerly G4S Government Solutions, and, prior to that, Wackenhut Services Inc.). Both Lockheed Martin Integrated Technology and LMSI were wholly-owned subsidiaries of LMC. Mr. Armijo is a Vice President of LMC and also served as a President of MSA during the time period in question.
“Where Congress has allocated money for specific purposes, we will not tolerate unlawful conduct by contractors who seek to enhance their profits at the expense of taxpayers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit demonstrates that the Department of Justice will work tirelessly to ensure that public funds are used for the important purposes for which they are intended.”
The multi-billion dollar MSA Contract with DOE required MSA to provide a number of site-wide services to DOE and to other contractors involved in the clean-up of the Hanford Site. The allegations in the complaint relate to the management and technology solution services that MSA agreed to provide at Hanford. In January 2010, without competition, MSA awarded its affiliate, LMSI, a $232 million subcontract to perform that work from Jan. 1, 2010 through June 2016.
The United States’ complaint alleges that the defendants knowingly made or caused false statements to the DOE regarding the amount of profit included in the billing rates for LMSI under the subcontract it was awarded by its affiliate, MSA. The complaint also alleges that the defendants’ claims for these inflated rates violated the False Claims Act.
In addition, the complaint alleges that LMC made payments of more than $1 million to Armijo and other MSA executives in order to obtain improper favorable treatment from MSA with respect to the award of the LMSI subcontract at the inflated rates. The complaint further alleges that these payments violated the Anti-Kickback Act.
“Fraud, corruption, and self-dealing at Hanford will simply not be tolerated,” said U.S. Attorney Joseph H. Harrington for the Eastern District of Washington. “The critical mission of cleaning up the Hanford Site in a safe, timely, environmentally responsible, and cost-effective manner is too important to the public and the residents of this region.” Harrington went on to state, “This enforcement action demonstrates and underscores the United States Attorney’s Office’s commitment to working with our law enforcement partners to hold fraudsters accountable, whether they are individuals, businesses, or the nation’s largest corporations.”
“The Department of Energy Office of Inspector General is committed to ensuring the integrity of Departmental contracts and financial expenditures,” said Teri L. Donaldson, Department of Energy Inspector General. “We take allegations of false claims, overbilling and kickbacks very seriously and will aggressively investigate these matters to ensure efficiency throughout DOE programs. We appreciate the efforts of the DOJ in pursuing these allegations and will continue our collaboration with the DOJ to investigative those who seek to defraud Department programs.”
“The Department of Energy identified the possibility of fraud to the Department of Justice and DOE Office of Inspector General during DOE’s administration of the contract,” said Joe Franco, Deputy Manager for the Richland Operations Office at Hanford. “DOE appreciates the efforts of the Department of Justice and the Inspector General, and we will continue to assist with their investigation and prosecution of the alleged fraudulent activity. DOE will not tolerate fraudulent behavior by its contractors and will continue to strengthen its federal oversight at Hanford.”
This matter is being handled by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Washington, and the DOE-OIG. The claims asserted by the United States are allegations only; there has been no determination of liability.
The lawsuit is captioned United States v. Mission Support Alliance, LLC, et al.(E.D. Wash.).
Foreign National Sentenced to 5 Years in Federal Prison for Illegally Re-Entering the United States Following Previous DeportationsRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Juan Gomez-Fonseca, age 49, of Bridgeport, Washington, was sentenced after having pleaded guilty on October 19, 2018, to being an Alien Illegally in the United States After Previously Being Deported. Senior United States District Judge Wm. Fremming Nielsen sentenced Gomez-Fonseca to a 5-year term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. Gomez-Fonseca will be deported to his home country, Mexico, after he completes serving his prison sentence.
According to information disclosed during court proceedings, Gomez-Fonseca, a Mexican national, was arrested on March 13, 2018, in Okanogan County, Washington. He had been previously deported from the United States on four separate occasions. Gomez-Fonseca’s criminal record included convictions for false imprisonment, domestic violence assault, driving under the influence, obstruction of a police officer, illegal entry into the United States and being an alien in the United States after deportation.
Harrington said, “The sentence imposed by the Court today not only promotes the rule of law, but reflects the serious consequences for foreign nationals who return illegally to the United States after having previously been deported multiple times and having previously committed multiple criminal offenses.”
This case was investigated by the Spokane Resident Office of the United States Border Patrol. This case was prosecuted by Matthew F. Duggan, an Assistant United States Attorney for the Eastern District of Washington.
Spokane Man Sentenced to 20 Years in Federal Prison for Child Exploitation Offenses Across the CountryRead the Press Release
Spokane, Washington – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Jonathan Paul Holden, age 44, of Mead, Washington, was sentenced after having pleaded guilty on October 11, 2018, to one count of Attempted Online Enticement of a Minor, and three counts of Attempted or Actual Child Pornography Production. United States District Judge Salvador Mendoza, Jr., sentenced Holden to a 20-year term of imprisonment, to be followed by a 20-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on February 6, 2018, the Southeast Regional Internet Crimes Against Children (“ICAC”) Task Force was conducting an online sting operation in which a law enforcement officer was working in an undercover capacity, purporting to be a 13-year old girl. Holden communicated online with the undercover officer in a sexually-explicit manner, believing that he was communicating with a child. During the online communications, Holden arranged to meet the purported girl later that day in Richland, Washington, for oral sex. When Holden arrived at the meet location, he was immediately arrested and taken into custody. A forensic examination of Holden’s digital devices and electronic media accounts revealed that Holden had been engaging in the solicitation of children for sex and child pornography for many years and all around the country. ICAC officers contacted Holden’s victims, and learned that the three principal victims with whom he had engaged in overt and explicit sexual communications and efforts to obtain child pornography were 13, 15, and 17 years old. These victims lived in Atlanta, Georgia, Houston, Texas, and Las Vegas, Nevada. Another victim who came forward during the investigation notified law enforcement that Holden had sexually abused her when she was 13 years old.
Holden’s federal case is a component of a global resolution negotiated in conjunction and consultation with the Spokane and Benton County Prosecutor’s Offices. Those offices have filed additional State charges against Holden for other criminal acts.
Joseph H. Harrington said, “Parents, please speak with your children about the dangers of chatting online so we can keep all our children safe. This case demonstrates the importance of undercover online enticement sting operations by law enforcement and their effectiveness in apprehending child predators; these operations lead to the apprehension of hands-on contact offenders. I commend the outstanding and dedicated work of federal, state and local law enforcement. The sentence imposed sends a strong message to would-be child predators and pornographers that federal, state and local law enforcement will work together to hold you accountable and bring you to justice. The United States Attorney’s Office for the Eastern District of Washington will continue to prosecute aggressively anyone who commits these horrible crimes against children.”
“Predators who chat online and view pornographic images of children fuel the disturbing actions of likeminded criminals who create the illegal content. Both rob the innocence of their victims and leave permanent scars that can never be entirely healed,” said Brad Bench Special Agent in Charge for Homeland Security Investigations (HSI) Seattle. “This case should send a clear message to those trolling the Internet to victimize children – you will be caught and pay with your freedom for such crimes. HSI will continue to work closely with our law enforcement partners to investigate these predators and ensure that they feel the full weight of the law.”
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 Southeast Regional ICAC Task Force, the United States Department of Homeland Security, Homeland Security Investigations, and the Washington ICAC task force with assistance from the Seattle Police Department. Essential support was provided by ICAC affiliates with the Cobb County Police Department Special Victims Unit in Cobb County, Georgia, and the Tomball Police Department, in Tomball, Texas, as well as Homeland Security Investigations in Las Vegas, Nevada. The case was prosecuted by David Herzog, an Assistant United States Attorney for the Eastern District of Washington.
Spokane Man Sentenced to 4 Years in Federal Prison for Unlawfully Possessing FirearmsRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Charles Edgar Troutt, age 49, of Spokane, Washington, was sentenced today after having pleaded guilty on May 18, 2018, to being a felon in possession of firearms. United States District Judge Stanley A. Bastian sentenced Troutt to a 4-year term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in September 2017, officers with the Spokane Police Department began conducting surveillance of Troutt’s residence. Officers observed Troutt place a backpack in the trunk of his vehicle and drive away. The officers were aware that Troutt had a suspended license and conducted a traffic stop. During the encounter, officers observed butane torches, a scale, drug paraphernalia, and suspected controlled substances wrapped in small baggies. After obtaining warrants to search Troutt’s vehicle and residence, officers seized a Smith and Wesson .357 revolver, a Sears 12-gauge sawed-off shotgun, and other firearms. Troutt is a convicted felon and is prohibited from possessing firearms and ammunition.
Joseph H. Harrington said, “The sentence imposed today should serve as a reminder that convicted felons must not possess firearms. The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for previously convicted felons who possess firearms. I commend the ATF and Spokane Police Department officers for their tireless efforts in combating firearms offenses in our community.”
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 Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Spokane Police Department Patrol Anti-Crime Team (“PACT”). This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Member of the Mongols Outlaw Motorcycle Gang Sentenced to 30 Months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Gabriel Trinidad Lopez, age 38, of Spokane, Washington, was sentenced today after having pleaded guilty on July 12, 2018, to being a felon in possession of a firearm. United States District Judge Stanley A. Bastian sentenced Lopez to a 30-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on November 4, 2017, while conducting community safety operations to reduce violence between local rival outlaw motorcycle groups, law enforcement officers observed Lopez riding a motorcycle. He is a member of the Mongols, an outlaw motorcycle gang. While following Lopez, the officers observed a number of traffic violations and initiated a traffic stop. During the encounter, Lopez told the officers he possessed a firearm. Lopez is a convicted felon and is prohibited from possessing any firearm or ammunition.
Joseph H. Harrington said, “The sentence imposed today should serve as a reminder that convicted felons must not possess firearms. The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for previously convicted felons who possess firearms. I commend the joint investigatory efforts of the ATF, FBI, and Spokane County Sheriff’s Office in the investigation of this outlaw motorcycle gang-related matter.”
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 Federal Bureau of Investigations Spokane Regional Safe Streets Task Force, Spokane County Sherriff’s Office Regional Intelligence Group, and the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
Transnational Drug Trafficker Sentenced to 25 Years for Conspiracy to Distribute Fentanyl, Heroin, Methamphetamine, and Cocaine and for Money LaunderingRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Jese Carillo Casillas, age 33, based out of Kennewick, Washington, was sentenced after having pleaded guilty on August 24, 2018 to Conspiracy to Distribute Fentanyl, Heroin, Methamphetamine, and Cocaine, as well as Conspiracy Launder Money. Senior United States District Judge Edward F. Shea sentenced Casillas to a 25-year term of imprisonment for his role in the drug conspiracy, to run concurrent to a 15-year term of imprisonment for Casillas’ role in the money laundering conspiracy, to be followed by a 5-year term of court supervision after he is released from federal prison. Upon completion of his sentence, Casillas will be deported because he is not a citizen of the United States.
According to information disclosed during court proceedings, this case arose from a joint investigation into the Ivan Calvillo Transnational Drug Trafficking Organization that has had a distribution cell rooted in the Eastern District of Washington since 2010. The investigation culminated in the arrest and indictment of 16 members of the organization for various drug trafficking and money laundering offenses. After Ivan Calvillo was murdered in Mexico in December 2015, Casillas took over operations for the organization, including the importation and distribution of Fentanyl, Heroin, Methamphetamine, and Cocaine. Casillas reported directly to the head of the transnational trafficking organization in Mexico. The organization was responsible for the monthly distribution of 50 to 100 kilograms of narcotics into the United States and Canada. From early 2015 until his arrest in August of 2016, this distribution network was organized, facilitated, and controlled by Casillas out of Kennewick, Washington.
This organization was known for its ability to import large quantities of these narcotics through designated half-way points in the Los Angeles and Riverside California areas into Vancouver, British Columbia, Canada, and to various locations throughout the Midwest and East Coast to include North and South Dakota, Minneapolis, Chicago, Kentucky, and New York for distribution.
In partnering with the Royal Canadian Mounted Police Federal Serious and Organized Crime Unit in Vancouver British Columbia and DEA Financial Crimes Task Force in Boston, Massachusetts, a large part of the investigation also involved the tracking of the organization’s drug cash proceeds. A DEA undercover officer, posing as a person who could launder the organization’s money, was in direct communication with Calvillo and later Casillas, who arranged for over two dozen cash money pick-ups of drug proceeds. The undercover agent would agree to pick up the cash drug proceeds and then took direction from Calvillo and Casillas as to where the laundered drug money should be wired. During this process, investigators were able to identify the scope of the organization as well as other members within this district. Calvillo and Casillas arranged for over $1.6 million dollars in cash drug proceeds to be picked up by the undercover operatives.
Joseph H. Harrington said, “This case highlights the joint commitment, dedication, and partnership between our state and federal partners as well as our international partners, in combatting this problem and the accompanying violence associated with trafficking such dangerous drugs into our community. I commend their outstanding work. This investigation made a substantial mark upon a large-scale organization operating throughout the world that had chosen our district as a point of operation. It is these types of investigations that bring into focus the dangers drug trafficking organization pose to our communities.”
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force in Tri-Cities Washington, the Drug Enforcement Administration in Boston, Seattle, Mexico City and Vancouver; the Royal Canadian Mounted Police Federal Serious and Organized Crime Unit in Vancouver British Columbia, Canada; Kennewick Police Department, Richland Police Department, Pasco Police Department, Benton County Sheriff’s Office, and Washington Department of Corrections. This case was prosecuted by Stephanie Van Marter and Caitlin Baunsgard, Assistant United States Attorneys for the Eastern District of Washington.
Bell Garden Locos Street Gang Member Sentenced to 18 Months in Federal Prison for Unlawfully Possessing a FirearmRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Lukes Lorenzo Herrera, age 21, of Grandview, Washington, was sentenced today after having pleaded guilty on September 13, 2018, to being a felon in possession of a firearm. Senior United States District Judge Lonny R. Suko sentenced Herrera to an 18-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on April 17, 2018, a Sunnyside Police officer stopped the vehicle Herrera, a documented Bell Garden Locos street gang member, was operating. After learning that Herrera’s driving privileges were suspended, the officer placed Herrera under arrest. While preparing to tow the vehicle, officers observed shotgun shells on the passenger floorboard and a handgun on the back seat. After obtaining a warrant to search the vehicle, officers seized a loaded Herman Weihrauch (“HMW”) .38 Special Revolver, shotgun shells, and 9mm ammunition. Herrera is a convicted felon who is prohibited from possessing firearms and ammunition.
Joseph H. Harrington said, “Convicted felons have no right to possess firearms and ammunition. If someone chooses to violate federal law, they will be prosecuted. I commend the outstanding work of the FBI, ATF, and Sunnyside Police Department in investigating this case.”
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 Yakima Resident Offices of the Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Sunnyside Police Department. This case was prosecuted by Patrick J. Cashman an Assistant United States Attorney for the Eastern District of Washington.
Richland-Based Research Laboratory and Its Owner Indicted for Allegedly Falsifying Opioid Addiction Drug Research TrialsRead the Press Release
Spokane – Today, Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced the unsealing of a 47-count Federal Indictment against two Richland, Washington based companies, Mid Columbia Research LLC and Zain Research LLC, and their owner, Sami Anwar. The Indictment charges the defendants with conspiracy to commit wire and mail fraud, fraudulently obtaining controlled substances, and furnishing false information to the U.S. Drug Enforcement Administration (DEA). The Indictment also seeks the forfeiture of at least $274,642.80 representing the proceeds of the alleged fraud.
The Indictment charges that between July 2016 and January 2018, the defendants fraudulently conducted and falsified a drug trial designed to study an experimental alternative treatment for daily opioid users who suffered from chronic pain. The Indictment charges that the defendants enrolled ineligible study subjects and forged physician signatures and falsified medical records and other documentation designed to make it appear as though a licensed physician had determined that the subjects were eligible for the study. The Indictment further charges that the defendants falsified records and study data designed to make it appear as though subjects were participating in the study and were receiving the experimental treatment when they were not, in order to falsely bill for the study and obtain over a quarter of a million dollars from the drug company that was sponsoring the study. The Indictment charges that the defendants created false and fraudulent documentation to hide the fraud from the sponsor, monitors, and federal regulators. The Indictment also charges that the defendants fraudulently obtained controlled substances, including the narcotic opioids hydrocodone/acetaminophen (which is commonly sold as Vicodin) and morphine, by falsely representing that these drugs would be and were being used for legitimate research purposes when they were not. Finally, the Indictment charges that the defendants submitted a false and fraudulent application to the DEA in a failed attempt to obtain
Gamma Hydroxybutyrate (commonly known as “GHB” or the “date rape drug”) for a separate sleep disorder study that the defendants also hoped to obtain funding for.
United States Attorney Harrington said “Investigating fraud and opioid-related crimes is a top priority for the Department of Justice. The United States Attorney’s Office for the Eastern District of Washington will continue to use all of the investigative and legal tools available to us to do so.”
DEA Special Agent in Charge of the Pacific Northwest Region Keith Weis was extremely pleased with today’s announcement, stating that “Conducting legitimate research is the foundation in which modern medicine is built on. To exploit that under the false premise of conducting lifesaving research to aid those who suffer opioid dependency is appalling, illegal, and criminal.” Weis further added that, “This investigative action in Eastern Washington is part of a continuing state wide strategy addressing illicit opioid access and diversion currently endangering our communities.”
The conspiracy, mail, and wire fraud charges against Defendant Sami Anwar each carry a maximum penalty of a 20-year term of imprisonment; a $250,000 fine, or double the gross gain or gross loss, whichever is greater; a 3-year term of court supervision; and restitution. Following the grand jury’s return of the Indictment, United States Magistrate Judge Mary K. Dimke issued a warrant for the seizure of over $175,000 from one of Mr. Anwar’s bank accounts constituting some of the proceeds of the alleged fraud.
An Indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
This investigation was conducted by the U.S. Drug Enforcement Administration. This case is being prosecuted by Dan Fruchter and Tyler H.L. Tornabene, Assistant United States Attorneys for the Eastern District of Washington.
United States Attorney Harrington Appoints District Election Officer in Support of Department of Justice Election Day ProgramRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced today that Assistant United States Attorney (AUSA) Ian Garriques will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election. AUSA Garriques has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Washington; and in that capacity, he will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Harrington said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen or diminished because of fraud or abuse. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination during general elections, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process, by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations during voting for the November 6 election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts of intimidation or harassment. For example, actions of persons designed to interrupt or intimidate voters from submitting their ballots via mail, ballot drop box locations, or accessible voting units or centers, or by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Harrington stated that AUSA/DEO Garriques is on duty in the Eastern District of Washington. He can be reached by the public at the following telephone number: (509) 454-4425.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The appropriate FBI field office can be reached by the public at (206) 622-0460 or to https://tips.fbi.gov.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Harrington said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Twisp Pharmacist Surrendered License, is Sentenced to 5 Years Probation and is Ordered to Pay a Fine for Illegally Possessing OpioidsRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Brian Shane Johnson, age 41, of Twisp, Washington, was sentenced today after having pleaded guilty on June 6, 2018, to possessing Oxycodone without a valid prescription or order. As part of the plea agreement, Johnson agreed to forfeit and surrender his pharmacist license to the State of Washington, Department of Health (DOH), Pharmacy Quality Assurance Commission (PQAC). United States Magistrate Judge John T. Rodgers sentenced Johnson to a 5-year term of probation and ordered him to pay a $7,500 fine.
According to information disclosed during court proceedings, DEA initiated an investigation after receiving information from DOH that Johnson, the owner/operator of Brewster Drug, in Brewster, Washington, was working at the pharmacy while impaired. In July and October 2017, Douglas Okanogan Fire District No. 15 responded to two medical emergencies at Brewster Drug and administered Narcan, a nasal spray used for the treatment of an opioid emergency, to Johnson. On another occasion, Johnson was arrested for driving under the influence. After conducting an onsite audit, DEA served an Immediate Suspension Order (ISO) on Brewster Drug’s DEA Registration. The ISO suspended Brewster Drug’s authority to order or dispense Schedule II-IV controlled substances. When interviewed, Johnson told DEA investigators he diverted and used approximately 8-10 Oxycodone 30mg pills a day. DEA’s audit and criminal investigation revealed Johnson diverted approximately 10,594 Oxycodone 30mg pills, 1,099 Morphine IR 15mg pills, 189 Morphine ER 100mg pills, and 11,125 Carisoprodol 350mg pills, for personal use. On October 19, 2018, Johnson surrendered his credential to practice as a pharmacist and agreed to never resume the practice of pharmacy in the state of Washington.
U.S. Attorney Harrington said, “We rely on pharmacists to safeguard the integrity of our prescription drug system. Johnson took advantage of his unique position to divert prescription drugs for his personal use. A pharmacist’s diversion of prescription drugs for personal use is particularly troubling because it removes prescription drugs from lawful distribution channels, potentially putting patients’ health at risk. The sentence imposed holds Johnson accountable for his conduct. The United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting those who divert prescription drugs from their authorized controlled distribution system.”
“We are in a real struggle to reign in opioids plaguing our communities,” stated DEA Special Agent in Charge of the Pacific Northwest Region Keith Weis. “This individual has lost his DEA License because there is absolutely no place for the unaccountability surrounding his reckless and illegal dispensing.”
This case was investigated by the U.S. Drug Enforcement Administration, U.S. Department of Health & Human Services, Office of Inspector General, and the State of Washington Department of Health. This case was prosecuted by George J.C. Jacobs, III, and Dan Fruchter, Assistant United States Attorneys for the Eastern District of Washington.
Omak Man Sentenced to 115 Months in Federal Prison for Assault on a Colville Tribal OfficerRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Brandon Shea Marchand, age 44, of Omak, Washington, and an enrolled member of the Confederated Tribes of the Colville Reservation, was sentenced today after having pleaded guilty on September 25, 2018, to Assault on a Federal Officer Resulting in Bodily Injury. United States District Judge Rosanna Malouf Peterson sentenced Marchand to a 115-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. The sentence was at the high end of the advisory range recommended by the United States Sentencing Guidelines.
According to information disclosed during court proceedings, a Colville Tribal Officer, who is an enrolled member of the Oglala Sioux Tribe in South Dakota, attempted to serve an arrest warrant on Marchand in February 2018, on the Colville Reservation. Marchand drove away on a four-wheeler, causing the officer to pursue him over wintry terrain while Marchand yelled he was not going to jail, and this would be an officer-assisted suicide call.
Marchand threatened the officer with a machete and a makeshift flame-thrower constructed out of a propane torch, and sprayed the officer with bear mace, hitting him in the face, eyes, and upper body. Marchand also threw a paint can at the officer’s head, causing lacerations and bleeding on his face and head. As Marchand admitted in court documents, his conduct recklessly created a substantial risk of death or serious bodily harm to the pursuing officer.
Marchand continued to refuse to comply with the pursuing officer’s instructions and started to enter a residence the officer believed contained weapons. The officer discharged his service weapon, hitting Marchand in the leg. The officer immediately administered first aid to Marchand, including applying a tourniquet around his leg, until first responders from the Okanagan County Sheriff’s Department and Omak Police Department could respond. The officer and Marchand were taken to separate hospitals to receive medical treatment. To prevent flight, Marchand was kept under watch at the hospital by the Lincoln County Sheriff’s Department, the Spokane Police Department, the Safe Streets Task Force, and the Federal Bureau of Investigation.
During the sentencing proceedings, Judge Peterson noted Marchand’s violent criminal history and years of drug use, and expressed appreciation to the Tribal officer for embracing the challenging task of acting as a law enforcement officer on the Colville Reservation. Judge Peterson observed that Marchand had not only created a dangerous situation by attempting to elude the officer, but he had also engaged in a years-long course of violent criminal conduct affecting numerous other individuals on the Colville Reservation.
United States Attorney Harrington said, “Tribal, local, state and federal law enforcement officers place themselves in harm’s way every day to protect the community. When individuals engage in criminal conduct and place our law enforcement officers and the public in danger of physical harm, it is a serious matter and warrants serious consequences. The sentence imposed holds Marchand accountable for his actions.”
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 Colville Tribal Police Department and the Federal Bureau of Investigation. The case was prosecuted by David M. Herzog, an Assistant United States Attorney for the Eastern District of Washington.
Computer Sciences Corporation Agrees to Pay $389,355 to Resolve False Claims Act Allegations in Connection with Hanford Site Electronic Medical Records SystemRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Computer Sciences Corporation (CSC), a government contractor headquartered in Falls Church, Virginia, has agreed to pay $389,355 to resolve allegations that its predecessor corporation violated the False Claims Act in connection with its implementation of an electronic medical records system intended for use at the Department of Energy’s (DOE) Hanford Site. Between 2005 and 2012, CSC held a DOE prime contract to provide occupational health services for Hanford Site workers. As part of that contract, CSC was required to implement an electronic medical records system for the medical records of Hanford Site workers. In 2015, after the CSC prime contract was completed, CSC merged its government contracts business with another company, SRA International, to form CSRA, Inc.
The United States alleged that CSC submitted false claims and statements to DOE representing that the electronic medical records system was functional and would operate as intended and in accordance with contractual and DOE requirements.
United States Attorney Harrington said, “Hanford Site workers perform a vitally important mission through which they risk exposure to radioactive and hazardous materials. It is critical that accurate health records be maintained concerning these workers. This settlement underscores our determination to utilize all tools at our disposal to ensure that public funds are efficiently spent in a manner that best serves workers, the public, and the environment. I commend the outstanding work of the Department of Energy Office of Inspector General, which made this resolution possible.”
“The health and well-being of Hanford Site workers is paramount to the U.S. Department of Energy’s mission,” said Acting Inspector General April G. Stephenson. “The Office of Inspector General is committed to investigating allegations of misconduct that, if true, could place those workers at risk. Because of the hazardous environment in which these workers conduct Department operations, it is vital that proper health records are maintained. We will continue to work aggressively with our investigative partners to pursue those who do not fulfill their contractual obligations and attempt to provide false information to the government.”
The allegations resolved by this settlement were initially brought in a whistleblower lawsuit filed by two former CSC employees, Kirtley Clem and Matthew Spencer. The case is captioned United States ex rel. Clem et al. v. Computer Sciences Corporation, 16-cv-5160-LRS (E.D. Wash.) Under the False Claims Act, private citizens can sue on behalf of the United States, and share in any recovery. Mr. Clem and Mr. Spencer will receive $81,764 of the settlement.
Assistant United States Attorney Dan Fruchter negotiated the settlement, which was the result of a joint investigation conducted with the Department of Energy Office of Inspector General. The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Department of Justice Honors National Domestic Violence Awareness MonthRead the Press Release
October 25, 2018 – In recognition of National Domestic Violence Awareness Month, Deputy Attorney General Rod Rosenstein met with Acting Director of the Office on Violence Against Women (OVW) Katherine Sullivan and other senior Justice officials today to discuss the Violence Against Women Act’s (VAWA) essential focus on criminal justice responses to domestic violence. Deputy Attorney General Rosenstein also announced new OVW funding for the department’s Tribal Special Assistant U.S. Attorney (SAUSA) program.
“There is no place in our society for domestic violence, and holding perpetrators accountable and providing services to victims is a critical part of the Department’s response,” said Deputy Attorney General Rosenstein. “During this National Domestic Violence Awareness Month, I encourage law enforcement, prosecutors, judges, and other criminal justice professionals to speak out about domestic violence and redouble efforts to bring perpetrators to justice. I am especially pleased to announce new funding to support four new Tribal Special Assistant U.S. Attorneys, whose collaboration across the tribal and federal jurisdictional landscape is a model for effective prosecution of violence against women.”
Joseph H. Harrington, said, “This new grant from the DOJ Office on Violence Against Women will bolster our ongoing efforts to bring to justice those who commit such crimes. The United States Attorney’s Office for the Eastern District of Washington, is, and will continue to be, committed to aggressively prosecuting domestic violence assaults that occur within the areas under Federal jurisdiction, including the Indian reservations in the District. We will continue working closely with the Colville Tribe and supporting investigations and prosecutions of Indian Country cases involving sexual assault, domestic violence, dating violence, and stalking. This new SAUSA position will give us additional resources to prosecute those who commit such acts to the fullest extent of the law. This Grant underscores the Department of Justice’s commitment to keeping our citizens safe.”
OVW’s Tribal Special Assistant United States Attorneys (Tribal SAUSAs) Program is another Department initiative supporting innovative prosecutorial collaborations. These prosecutors bring cases in both tribal and federal courts, and help ensure that tribal and federal authorities have a seamless response in prosecuting cases under their jurisdiction. In OVW’s pilot project, Tribal SAUSAs reported a wide range of successes, including prosecution of cases that otherwise may not have been brought.
Today, OVW is announcing new Tribal SAUSA Program awards of $437,500 each to the following four tribes:
• Confederated Tribes of the Colville Reservation (Washington);
• Salt River Pima-Maricopa Indian Community (Arizona);
• Confederated Tribes of the Umatilla Indian Reservation (Oregon); and
• Rosebud Sioux Tribe (South Dakota).
Commemorated in the United States since 1987, National Domestic Violence Awareness Month educates the public, commemorates and honors victims and survivors, and connects service providers across the country. President Trump has continued the tradition of issuing a presidential proclamation to recognize October as National Domestic Violence Awareness Month.
Strengthening criminal justice is the core component of VAWA, and Acting Director Sullivan pointed to the Improving the Criminal Justice Response to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program (ICJR) as the “backbone of VAWA.” ICJR helps communities investigate and prosecute these crimes and keep violent criminals off the street. Since 1997, OVW has made 1,655 ICJR grant awards totaling over $847 million. In fiscal year 2018, OVW made 54 ICJR awards totaling $32.6 million.
This funding has supported justice responses including dedicated police and prosecution units, specialized courts, and offender monitoring in 538 communities. For example, Fairfax County in Virginia uses ICJR funding to support a specialized prosecutor for domestic violence and stalking cases and to monitor the enforcement of civil protective orders.
ICJR also funds unique collaborative approaches, such as Family Justice Centers – “one stop shops” housing police, prosecution, and victim services in one place – and multidisciplinary teams that decrease domestic violence homicides. Since 2012 OVW has awarded over $24 million in ICJR funding to reduce domestic violence homicide, including pilot sites, nationwide training, and research. This includes six awards totaling $3,299,977 for fiscal year 2018.
Many victims also face substance abuse issues, and may struggle to access the justice system and get the protection they need. OVW is today announcing an award of $450,000 to the Alliance for HOPE International to train Family Justice Centers to address this complex challenge. The Alliance for HOPE International will partner with the National Center on Domestic Violence, Trauma, and Mental Health.
VAWA was first authorized in 1994 and focused on strengthening the criminal justice response to domestic violence. VAWA was reauthorized in 2000, 2005, and 2013, and each reauthorization included expansions such as addressing elder abuse, combatting stalking, and serving victims of sex trafficking in Indian Country. More information about VAWA is available at www.justice.gov/ovw/legislation.
Prescription Drug “Take Back Day” in the Eastern District of WashingtonRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Saturday, October 27, 2018, from 10:00 a.m. to 2:00 p.m., is National Prescription Drug “Take Back Day.” This event will give the public its 16th opportunity in eight years to prevent pill abuse, diversion, and theft by ridding their homes of potentially dangerous, expired, unused, and unwanted prescription drugs.
Last Spring, Americans nation-wide turned in nearly 475 tons (949,046 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and almost 4,700 of its state and local law enforcement partners. Of those numbers, Washington State collected 17,018 pounds of prescription drugs at approximately 70 collection sites operated by the DEA and 63 of its state and local law enforcement partners. In its 15 previous “take back” events, Washington State alone has collected 208,433 pounds of prescription drugs. Overall, in its 15 previous “Take Back” events, the DEA and its partners have taken in almost 10 million pounds – nearly 5,000 tons – of pills.
The disposal service is free and anonymous, no questions asked. Liquids, needles, or sharps cannot be accepted at the sites, only pills or patches.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The Substance Abuse and Mental Health Services Administration’s National Survey on Drug Use and Health shows year after year that the majority of misused and abused prescription drugs are obtained from family and friends, including someone else’s medication being stolen from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—pose potential safety and health hazards.
Law enforcement agencies scheduled to participate as collection sites include: Asotin County Sheriff’s Office (Asotin County Fire Department); Colfax Police Department (City Hall); Connell Police Department (Connell City Hall); Kennewick Police Department; Odessa Police Department; Oroville Police Department; Othello Police Department; Pasco Police Department; Garfield County Sheriff’s Office; Pullman Police Department; Ferry County Corrections; Spokane Valley Police Precinct (Chas Health); Walla Walla Police Department; West Richland Police Department; Yakima Police Department (Cornerstone Medical Clinic/Virginia Mason Memorial); and Yakima County Crime Stoppers (Solarity Credit Union)
In the City of Spokane, year-round disposal sites are located at Spokane Police Department’s North Precinct, 5124 N. Market, Monday through Friday, 9:00 – 4:00; the Public Safety Building, 1100 W. Mallon Avenue, Monday through Friday 8:00 – 5:00; and Spokane Police Department’s Downtown Precinct in the Intermodal, 221 W. First, 24 hr/7 days a week. In Spokane County a year-round disposal site is located in the Spokane Valley Police Department lobby, 12710 E. Sprague Avenue, Monday through Friday, 8:00 – 5:00.
For more information about the disposal of prescription drugs and the October 27, 2018 Take Back Day event, go to www.DEATakeBack.com
Universal American Mortgage Company LLC (UAMC) Agrees to Pay $13.2 Million to Resolve False Claims Act Allegations Related to Loan GuaranteesRead the Press Release
Universal American Mortgage Company LLC (UAMC) has agreed to pay the United States $13.2 million to resolve allegations that it violated the False Claims Act by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain loans, the Department of Justice announced today. UAMC is a mortgage lender headquartered in Miami, Florida.
“Mortgage lenders may not ignore material FHA requirements designed to reduce the risk that borrowers will be unable to afford their homes and federal funds will be wasted,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “We will hold accountable entities that knowingly fail to follow important federal program requirements.”
“FHA mortgages are vital to first-time homebuyers and to families whose credit and assets were damaged by the 2008 economic crisis,” said U.S. Attorney Joseph H. Harrington for the Eastern District of Washington. “FHA underwriting and other requirements are critical to safeguarding the integrity of the public money used to operate this important program. We will continue to work with our law enforcement partners to ensure that mortgage lenders and others who profit from this program, while ignoring its rules, will be held accountable.”
“In a quest for profits, mortgage companies have ignored important lending standards” said U.S. Attorney Annette L. Hayes for the Western District of Washington. “Not only does this harm the borrowers leaving them over their heads in debt and underwater on their mortgages, it harms taxpayers because the mortgages are backed by government insurance. This settlement should serve as a warning to other lenders to diligently follow the rules.”
During the time period covered by the settlement, UAMC participated as a direct endorsement lender (DEL) in the U.S Department of Housing and Urban Development’s (HUD’s) FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan for compliance with FHA requirements before it is endorsed for FHA insurance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance and to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices.
The United States alleged that between January 1, 2006, and December 31, 2011, UAMC knowingly submitted loans for FHA insurance that did not qualify. The United States further alleged that UAMC improperly incentivized underwriters and knowingly failed to perform quality control reviews, which violated HUD requirements and contributed to UAMC’s submission of defective loans.
“One of our principle responsibilities is to protect and ensure the integrity of federal housing programs for the benefit of all Americans,” said Jeremy M. Kirkland, Acting Deputy Inspector General, U.S. Department of Housing and Urban Development, Office of Inspector General. “This settlement demonstrates our resolve and should signal to irresponsible lenders that this conduct will not be tolerated.”
“FHA depends upon the lenders we do business with to apply our standards and to truthfully certify that they’ve done so,” said David Woll, HUD’s Deputy General Counsel for Enforcement. “Working with our federal partners, HUD will enforce these lending standards so we can protect families from preventable foreclosure and to protect FHA from unnecessary losses.”
The allegations resolved by this settlement include a whistleblower lawsuit filed under the False Claims Act by a former employee of a related UAMC entity, Kat Nguyen-Seligman. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. Ms. Nguyen-Seligman will receive $1,980,000 from the settlement.
The settlement was the result of a joint investigation conducted by HUD, HUD’s Office of Inspector General, the Civil Division and the U.S. Attorneys’ Offices for the Eastern and Western Districts of Washington. The lawsuit is captioned United States ex rel. Kat Nguyen-Seligman v. Lennar Corporation, Universal American Mortgage Company, LLC, and Eagle Home Mortgage of California, Inc., 14-cv-1435 (W.D. Wash.). The claims asserted against UAMC are allegations only, and there has been no determination of liability.
Universal American Mortgage Company, LLC, Agrees to Pay $13.2 Million to Resolve False Claims Act Allegations Related to FHA Mortgage InsuranceRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Universal American Mortgage Company, LLC (UAMC) has agreed to pay the United States $13.2 million to resolve allegations that it violated the False Claims Act by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain mortgages. UAMC is a mortgage lender headquartered in Miami, Florida, doing business across the country, including in the Eastern District of Washington.
The United States alleged that between January 1, 2006, and December 31, 2011, UAMC knowingly submitted loans for FHA insurance that did not qualify. The United States further alleged that UAMC improperly incentivized underwriters and knowingly failed to perform quality control reviews, which violated HUD requirements and contributed to UAMC’s submission of defective loans.
During the period covered by the settlement, UAMC participated as a direct endorsement lender (DEL) in the U.S Department of Housing and Urban Development’s (HUD’s) FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan for compliance with FHA requirements before it is endorsed for FHA insurance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance and to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices.
“Mortgage lenders may not ignore material FHA requirements designed to reduce the risk that borrowers will be unable to afford their homes and federal funds will be wasted,” said Assistant Attorney General Joseph H. Hunt for the Justice Department’s Civil Division. “We will hold accountable entities that knowingly fail to follow important federal program requirements.”
United States Attorney Harrington said, “FHA mortgages are vital to first-time homebuyers and to families whose credit and assets were damaged by the 2008 economic crisis. FHA underwriting and other requirements are critical to safeguarding the integrity of the public money used to operate this important program. We will continue to work with our law enforcement partners to ensure that mortgage lenders and others who profit from this program, while ignoring its rules, will be held accountable.”
“In a quest for profits, mortgage companies have ignored important lending standards” said U.S. Attorney for the Western District of Washington, Annette L. Hayes. “Not only does this harm the borrowers leaving them over their heads in debt and underwater on their mortgages, it harms taxpayers because the mortgages are backed by government insurance. This settlement should serve as a warning to other lenders to diligently follow the rules.”
“One of our principal responsibilities is to protect and ensure the integrity of federal housing programs for the benefit of all Americans,” said Jeremy M. Kirkland, Acting Deputy Inspector General, U.S. Department of Housing and Urban Development, Office of Inspector General. “This settlement demonstrates our resolve and should signal to irresponsible lenders that this conduct will not be tolerated.”
“FHA depends upon the lenders we do business with to apply our standards and to truthfully certify that they’ve done so,” said David Woll, HUD’s Deputy General Counsel for Enforcement. “Working with our federal partners, HUD will enforce these lending standards so we can protect families from preventable foreclosure and to protect FHA from unnecessary losses.”
The settlement resolves allegations originally brought by Kat Nguyen-Seligman, a former employee of a related UAMC entity, in a lawsuit filed under the whistleblower provisions of the False Claims Act, which allows private parties to bring suit on behalf of the federal government and to share in any recovery. The whistleblower will receive $1,980,000 as her share of the federal government’s recovery in this case.
This matter was handled on behalf of the government by the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Washington and Western District of Washington, the Department of Housing and Urban Development, and the Department of Housing and Urban Development’s Office of the Inspector General. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene investigated UAMC’s conduct on behalf of the U.S. Attorney’s Office for the Eastern District of Washington. The case is captioned United States ex rel. Kat Nguyen-Selgiman v. Lennar Corporation, Universal American Mortgage
Company, LLC, and Eagle Home Mortgage of California, Inc., 14-cv-1435 (W.D. Wash.). The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Wapato Man Sentenced to 25 Years in Federal Prison for Voluntary Manslaughter and Assault with Intent to Commit MurderRead the Press Release
Yakima – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Deryk Alexander Donato, age 25, of Wapato, Washington, and an enrolled member of the Yakama Nation, was sentenced today after having pleaded guilty on February 21, 2018, to Voluntary Manslaughter, Assault with Intent to Commit Murder, and Discharge of a Firearm During a Crime of Violence. United States District Judge Stanley A. Bastian sentenced Donato to an aggregate 25-year term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in the early morning hours of July 7, 2017, a young man was shot and killed outside his residence in Wapato, Washington. According to a witness, the victim was shot after speaking with individuals who pulled up to the house in a sport utility vehicle. As the victim walked away, an occupant in the vehicle exited and began shooting at the victim. Investigators arrived on scene and interviewed a witness who heard someone yell “Bomber” or “No, Bomber.” Although unable to see the assailant’s face, the witness was able to give law enforcement officers a description of the shooter’s clothing. The victim, also an enrolled member of the Yakama Nation, died on scene.
Not long after this incident, the driver of a vehicle was shot in the shoulder by an assailant during an attempted carjacking near White Swan, Washington. The assailant fled on foot. The victim of this shooting was also an enrolled member of the Yakama Nation. While being interviewed by law enforcement, witnesses identified Donato as the shooter and said he used the nickname “Bomber.” Witnesses also provided a description of the clothing Donato was wearing during the attempted carjacking. Their descriptions matched the description of the clothing worn by the Wapato shooter.
As part of the investigation, officers interviewed one or more of Donato’s acquaintances who stated they saw Donato with a rifle near the time of the shooting incidents and asked him why he had a rifle. Donato told his acquaintances they would find out tomorrow and gave them a round of ammunition. Law enforcement obtained this round of ammunition to compare it with spent rounds of ammunition recovered from both shooting scenes. As a result of forensic examination, investigators were able to link the spent rounds of ammunition recovered at the shootings to Donato.
During sentencing proceedings, Judge Bastian commented that Donato “remained in a violent state of mind and continued to assault people with no apparent reason.” In imposing a 25-year term of imprisonment, Judge Bastian observed that Donato showed “no indication” he was “ever prepared to follow the law.”
United States Attorney Harrington said, “This case is another example of the excellent work that can be accomplished when federal, state, tribal and local law enforcement officers work together. The officers should be immensely proud of their investigative efforts. The United States Attorney’s Office for the Eastern District of Washington, the Federal Bureau of Investigation, and the Yakama Nation Tribal Police Department, Yakima County Sheriff’s Office, and Wapato Police Department are committed to investigating and prosecuting violent crimes occurring in the exterior boundaries of the Yakama Nation. We will continue our efforts to hold violent offenders accountable for their crimes.”
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 Yakima Resident Office of the Federal Bureau of Investigation, the Yakama Nation Tribal Police Department, and the Wapato Police Department. This case was prosecuted by Ian L. Garriques, an Assistant United States Attorney for the Eastern District of Washington.
Spokane Felon Sentenced to 20 Years in Federal Prison for Drug Trafficking and Firearm PossessionRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Jason Leslie Juliano, age 46, of Spokane, Washington, was sentenced after having pleaded guilty to being a previously convicted felon in possession of a firearm and ammunition and for possessing with the intent to distribute 50 grams or more of actual methamphetamine. United States District Judge Salvador Mendoza, Jr. sentenced Juliano to an aggregate 240-month term of imprisonment, to be followed by a 10-year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, Spokane Police Department officers initiated a traffic stop after observing Juliano driving illegally. During a pat down, officers found a loaded Smith & Wesson, model M&P 40, .40-caliber semi-automatic pistol in Juliano’s waistband behind his back. Officers determined Juliano was a previously convicted felon and arrested him. After obtaining a warrant to search Juliano’s vehicle, officers found two ballistic vests, two loaded firearm magazines containing 24 rounds of .40-caliber ammunition, and a locked safe in the trunk. A search of the safe revealed 145 grams of actual methamphetamine.
Joseph H. Harrington said, “The sentences imposed send a strong message to individuals who commit drug and firearm-related crimes in the Eastern District of Washington. I commend the law enforcement officers with ATF, DEA and the Spokane Police Department for their excellent investigative work in this case.”
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 Spokane Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Drug Enforcement Administration. This case was prosecuted by Earl A. Hicks, an Assistant United States Attorney for the Eastern District of Washington.
East Wenatchee Man Sentenced to More Than Five Years in Federal Prison for Unlawful Possession of Firearms and ExplosivesRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Michael Richard Ayers, age 53, of East Wenatchee, Washington, was sentenced today after having pleaded guilty on March 10, 2018, to Felon in Possession of a Firearms and Explosives and Possession of Unregistered Firearms. United States District Judge Salvador Mendoza, Jr., sentenced Ayers to a 66-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, police obtained a search warrant for the motorhome where Ayers was living based on reports that Ayers, a convicted felon, was obtaining firearms and firearm parts through straw purchases made by his then girlfriend. Ayers had also uttered threats to kill an East Wenatchee police officer. During the search, officers found two short-barreled rifles, a rifle receiver, a rifle-mounted flare launcher, five improvised grenades loaded with black powder and BBs that were designed to be fired from the flare launcher, as well as steel inserts used to convert the flare launcher into a short-barreled shotgun, body armor, ammunition, and large capacity magazines.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the investigative efforts of the law enforcement officers with the Wenatchee Police Department, the ATF and the United States Army 53rd Ordnance Company Explosive Ordnance Disposal. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court sends a clear message to others who may choose to engage in such criminal activity.”
ATF Special Agent Robert Almgren, the Resident Agent in Charge of the Yakima Field Office, stated, “Through the extraordinary efforts and expertise of agents, investigators, and prosecutors with the Wenatchee Police Department, the ATF Yakima Field Office, and the United States Attorney’s Office this hefty sentence illustrates that felons who are in possession of firearms will be pursued tirelessly and prosecuted to the fullest extent that the law allows.”
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 Yakima Resident Office of the ATF, and the Wenatchee Police Department with assistance from the United States Army 53rd Ordnance Company Explosive Ordnance Disposal. This case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
U.S. Attorney Joseph H. Harrington Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, observed that one year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with all levels of law enforcement, local organizations, and members of the community, including locally based prevention and reentry programs for lasting reductions in crime.
In support of the Department’s PSN programs throughout the country, on October 3rd the Attorney General announced awards of nearly $28 million in grant funding to combat violent crime through PSN and another $3 million for training and technical assistance to develop and implement violent crime reduction strategies and enhance services and resources for victims of violent crime. Over the past year, the Department has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make American neighborhoods safer.
The grants announced on October 3rd build on Attorney General Sessions’ commitment to reducing violent crime in America, as directed by President Trump’s February 2017 Executive Order. The Department has distributed additional resources and built up strong partnerships with local law enforcement in communities plagued by violent crime. Since the announcement of the reinvigoration of the PSN program in October 2017, the Department of Justice has increased the number of federal prosecutors focused on violent crime by over 300, directed its resources to improving cooperation between federal and local law enforcement agencies, restored local control of police agencies by reining in excessive use of consent decrees, reformed civil asset forfeiture and restored asset-sharing with state and local law enforcement, and helped fund over 800 hundred officers in police departments across America.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
Through the enhanced PSN, the Department is targeting the most violent criminals in the most violent areas, utilizing policing tools that did not exist even a few years ago. Tools like crime gun intelligence centers (CGIC), which combine intelligence from gunshot detection systems, ballistics, gun tracing, and good old-fashioned police work, help to develop real-time leads on the “trafficker sand trigger pullers” who are fueling the violence in their communities. By using modern technologies and cutting-edge police work, the Justice Department is deploying resources strategically to provide the greatest return on our community-based anti-violence efforts.
United States Attorneys across the country are implementing Attorney General Sessions’ reinvigorated PSN Program by developing and tailoring violent crime reduction approaches specific to the challenges and the unique resources of their respective Judicial Districts.
- In general, every PSN program incorporates these elements:
- Leadership by the United States Attorney to convene all partners;
- Partnerships with the community and at all levels of law enforcement;
- Targeted enforcement efforts that:
- utilize the full range of available data, methods, and technologies to identify the offenders that are driving violent crime rates in the most violent locations in the district; and
- ensure prosecution of those offenders in the federal, state, local, or tribal system – whichever provides the most certain and appropriate sanction;
- Prevention of additional violence through efforts such as:
- ensuring public awareness of the violent crime reduction strategy and results;
- communicating directly with offenders about the consequences of their violent behaviors; and
- supporting local crime prevention and offender reentry efforts;
- Accountability for results based on outcomes (reduction in violent crime), not merely outputs (numbers of investigations or prosecutions).
The United States Attorneys are using powerful federal laws against the criminals driving the violent crime in their communities. In fiscal year 2018, the Department brought cases against more violent criminals than ever before—increasing by approximately 15 percent than the Department’s previous record set just last year. Additionally, in 2018 the Department set another record by charging approximately 20 percent more criminals with federal firearms offenses than it had in 2017, which is the most in the Department’s history.
United States Attorney Joseph H. Harrington said, “Project Safe Neighborhoods continues to be a priority in the Eastern District of Washington as we work to partner with federal, state, local, and tribal law enforcement to specifically identify criminals responsible for violent crime in the District and pursue criminal prosecution. Throughout the past year, the United States Attorney’s Office has worked with its law enforcement partners to reduce violent crime. As part of the United States Attorney’s Office’s commitment to the PSN program, prosecutorial resources have been repurposed and enhanced to assist in the enforcement efforts to make our communities safer.”
In the Eastern District of Washington, the PSN program primarily targets gang-related gun violence, crimes of domestic violence in which a firearm is involved, and armed career criminals – those that have multiple drug-trafficking and/or violent felony convictions. The PSN program, however, is not limited to firearm-related offenses. As drug-trafficking activity has long been recognized as a “neighborhood” safety concern, Eastern District of Washington’s PSN program also focuses on disrupting and dismantling drug trafficking organizations and the local street dealers distributing methamphetamine, heroin, and opioid-based pills. As we celebrate the one-year anniversary of the revitalized PSN program, the following examples highlight some of the PSN activities in the Eastern District of Washington during the past year:
Apprehension of Violent Offenders with Outstanding Washington State Warrants:
- In June 2018, the U.S. Marshal Service partnered with local law enforcement, including the Pacific Northwest Violent Offender Task Force (“PNVOTF”), which is comprised of federal, state, and local law enforcement officers, to conduct “Operation Hopscotch.” The operation, conducted over an eight-day period, resulted in the apprehension and arrests of 55 individuals in the District (concentrating on Grant, Chelan and Douglas Counties) with outstanding warrants for violent felonies and/or sex offenses. Many of the arrested individuals had extensive criminal histories that included violence, drug-trafficking, and possession of weapons.
Enforcement of Federal Statutes:
- During the first three quarters of 2018, approximately 80 persons were charged with Federal firearm-rated offenses. Many of these persons were also charged with drug-trafficking offenses. The types of offenses charged include being a previously convicted felon in possession of a firearm, being an unlawful alien in possession of a firearm, making a false statement in the process of attempting to purchase a firearm, possessing a firearm in furtherance of a drug-trafficking offense, and possession of a machine gun or other destructive device.
Significant Federal Sentences for Drug-Trafficking and Firearm Offenses:
- Additionally, throughout this past year, a number of PSN investigations and prosecutions for drug trafficking, firearm, and violent offenses have resulted in significant and impactful sentences:
- Daniel Woolem, a resident of Moxee, Washington, was prosecuted and found guilty, after a jury trial, of conspiracy to distribute methamphetamine and distribution of methamphetamine. In February 2018, Woolem was sentenced to approximately 20 years in federal prison.
- Cameron C. Butler, formerly of Broward County, Florida, was prosecuted for possession of an unregistered destructive device (a Molotov cocktail), interstate stalking, and possession of child pornography. In March 2018, Butler was sentenced to 18 years in federal prison.
- Jose Martin Aguilar, a resident of Pasco, Washington, was prosecuted for conspiracy to distribute methamphetamine. In March 2018, Aguilar was sentenced to 27 years in federal prison.
- Miles Barton Nichols, a resident of Pasco Washington, was prosecuted and found guilty, after two jury trials, of possessing with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a convicted felon in possession of a firearm. In March 2018, Nichols was sentenced to a mandatory life term in federal prison.
- Jared Ryan Marcum, a resident of Pasco, Washington, was prosecuted for possession with intent to distribute methamphetamine, possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a convicted felon in possession of a firearm. In May 2018, Marcum was sentenced to 25 years in federal prison.
- Johnny Andres Asuncion, III, a resident of Yakima, Washington, was prosecuted and found guilty, after a jury trial, of possession with intent to distribute methamphetamine. In May 2018, based on his extensive criminal history, Asuncion was sentenced to a mandatory life term in federal prison.
- Joseph Trevino, a resident of Malott, Washington, was prosecuted for domestic assault by a habitual offender. In June 2018, Trevino was sentenced to 10 years in federal prison.
- Joey Alan Yamada, a resident of Spokane, Washington, was arrested on drug-trafficking and firearm possession charges and prosecuted possessing with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. In July 2018, Yamada was sentenced to 14 years in federal prison.
- Angel Abel Campos, a resident of Toppenish, Washington, and a Sureno gang member, was prosecuted for being a convicted felon in possession of a firearm and participating in the discharge of a firearm during the commission of a crime of violence. In August 2018, Campos was sentenced to over 14 years in federal prison.
- Michael G. Painter, a resident of Spokane, Washington, was prosecuted for possessing with the intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a convicted felon in possession of a firearm. In August 2018, Painter was sentenced to 20 years in federal prison.
Educational/Preventative Partnerships:
- As part of the EDWA PSN program, the USAO has joined forces with the Firearm Crime Enforcement Committee (FACE). This program presents information to convicted felons in area prisons. An Assistant U.S. Attorney, United States Probation Officers, Washington State Department of Corrections Officers, Alcohol Tobacco and Firearm Agents and others meet with felons who have been pre-screened as likely qualifying for the Armed Career Penalty if convicted of a subsequent firearms violation. For the prisoners who are nearing release, the FACE panel presents information regarding penalties that will be imposed for subsequent convictions. The panel also provides resources to help these prisoners make decisions that will keep them from returning to prison.
These examples of PSN activities in the Eastern District of Washington reflect the symbiotic partnerships that exist among federal, state, local, and tribal law enforcement, as well as local communities, to develop effective, locally-based strategies to reduce violent crime.
The Department has already started to observe positive signs of progress under PSN nationwide. The FBI’s Crime in the United States Report for 2017 reflects that the troubling increases in violent crime from 2015 and 2016 are beginning to reverse. The report estimates that the nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent. The preliminary information for 2018 gives reason for optimism that the PSN efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago. PSN is working.
Learn more about Project Safe Neighborhoods at https://www.justice.gov/psn.
- In general, every PSN program incorporates these elements:
Federal District Court Upholds Forest Service’s Northfork Ecosystem Restoration ProjectRead the Press Release
Spokane– Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that United States District Judge Rosanna Malouf Peterson granted summary judgment in favor of the U.S. Forest regarding an ecosystem restoration project challenged by the Alliance of the Wild Rockies.
According to information disclosed during court proceedings, the Alliance filed a lawsuit in August 2016 challenging the Colville National Forest’s decision to approve the North Fork Mill Creek A to Z Project. That project had been carefully designed through cooperation between the Forest Service, timber industry, and a variety of environmental organizations that had formed the Northeast Washington Forestry Coalition. The Forest Service used a Stewardship Contract authorized by the National Forest Management Act (NFMA) that proposed ecosystem restoration involving rebuilding of roads, fish habitat-improvement projects, thinning of overstocked stands of trees, pre-commercial thinning of young trees, and some aspen restoration in the North Mill Creek drainage of the Three Rivers Ranger District on the Colville National Forest. The Forest Service had approved the project in June 2016.
The Alliance sued the Forest Service in August 2016, claiming that the Forest Service had violated the NFMA by allowing Vaagen Brothers Lumber Company to select and pay for a contractor to conduct the environmental analysis and writing of an environmental assessment (EA) for the project. The Alliance also claimed that the project violated the National Environmental Policy Act (NEPA) and the Administrative Procedures Act (APA) because the EA did not properly disclose cumulative effects of the North Fork Project with other projects planned in adjacent watersheds, would not protect habitat for fisher and pine marten (two small forest carnivores) under the NFMA, would reduce snow-intercept cover used by deer and elk on winter range, and would increase sediment production that could injure fish species.
The Alliance previously sought a preliminary injunction from the district court, which Judge Peterson denied in October 2016. The Alliance appealed that decision to the Ninth Circuit Court of Appeals in Seattle, Washington. The Ninth Circuit ruled against the Alliance on August 1, 2017. The case then returned to the district court for a determination on the merits.
Judge Peterson first found that the awarding of the Stewardship Contract to Vaagen Brothers Lumber in Colville, Washington was based on open and fair bidding and did not violate the NFMA. Judge Peterson also found there was no conflict of interest in letting Vaagen Brothers select the subcontractor to prepare the EA under NEPA because the extensive record in the case showed that the objectivity and integrity of the NEPA process had not been compromised.
Judge Peterson also found that the Forest Service had not violated NEPA when it analyzed impacts of sedimentation in the streams in the North Fork drainage and that the cumulative effects analysis complied with NEPA. Judge Peterson determined the Forest Service’s approach to analyzing impacts to furbearing species such as pine marten and fisher was proper and complied with NEPA and NFMA.
Joseph H. Harrington stated, “Sound forest management benefits the American public and provides needed resources and recreational experiences close to our communities. Natural resource managers should be commended for developing this collaborative project which provides timber and jobs while protecting the natural environment.”
This case was defended by Rudy J. Verschoor and Vanessa R. Waldref, Assistant United States Attorneys in the Civil Division of the United States Attorney’s Office for the Eastern District of Washington.
Olympia Man Sentenced to 10 Years in Federal Prison for Attempted Child Sex TraffickingRead the Press Release
https://www.justice.gov/pscSpokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Paul Rosier, age 76, of Olympia, Washington, was sentenced after having pleaded guilty on June 26, 2018, to Attempted Child Sex Trafficking. Senior United States District Court Judge Edward F. Shea sentenced Rosier to a 10-year term of imprisonment, to be followed by a life term of court supervision after he is released from federal prison. Judge Shea also ordered Rosier to pay $105,000 in fines, $5,000 of which was ordered pursuant to the Justice for Victims of Trafficking Act. Rosier will be required to register as sex offender upon his release from confinement.
According to information disclosed during court proceedings, as part of an undercover sting operation, a Kennewick Police Department detective with the Southeast Regional Internet Crimes Against Children Task Force, posing as a 16-year old minor and pimp, signed on to the “Pinger” social media application and received a message from Rosier stating Rosier planned to be in the Kennewick area and was looking for a “hook up” and a “rub and more.” As part of the sting operation, the undercover detective replied that he had a 13-year old friend who might be available. Rosier text-messaged the undercover detective asking if the 13-year old was available for an “outcall,” a commercial sex trade term that means the person performing the service comes to the customer’s location. Rosier also sent a message to the undercover detective asking for “Daty” and “bbbj”, commercial sex industry terms for oral sex on a female and oral sex performed on a male without a condom. Rosier specifically requested the 13-year old girl perform these acts. When the undercover detective asked Rosier what the 13-year old was worth to him, Rosier text-messaged $160, and indicated he wanted “FS,” an abbreviation for “full service” and meaning intercourse. The undercover detective, posing as a pimp, replied that his fee was an additional $40. Rosier messaged the undercover detective that he was at a hotel in Kennewick, Washington, and provided his room number. After the undercover detective notified Rosier the under-age girl was at the hotel, members of the Southeast Regional Internet Crimes Against Children task force arrested Rosier when he went to meet her. A search incident to arrest revealed Rosier possessed $200.
Joseph H. Harrington said, “I commend the outstanding work of the Southeast Regional Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Kennewick Police Department. Sexual predators routinely target the young and most vulnerable in our communities. The sentence imposed removes a sexual predator from the streets and sends a strong message that the federal government will use all of the tools at its disposal to investigate and prosecute these crimes.”
“Adults who prey on children deserve the consequences of their actions. In this case, Rosier was looking for a child to engage in sexual acts with him. Thanks to the efforts of the Southeast Regional Internet Crimes Against Children Task Force, we prevented him from doing so,” said Brad Bench, Special Agent in Charge of HSI Seattle. “Combatting child predators is truly a team effort that requires the cooperation of local, state and federal law enforcement entities, and this case is testament that the work we do truly does make our community safer.”
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 United States Department of Homeland Security, Homeland Security Investigations, the Kennewick Police Department, and the Southeast Regional Internet Crimes Against Children Task Force. This case was prosecuted by Laurel Holland and Scott T. Jones, Assistant United States Attorneys for the Eastern District of Washington.
Department of Justice Announces More Than $70 Million to Support School Safety and $64 Million to Improve State Criminal Record SystemsRead the Press Release
Spokane - Joseph H. Harrington, United States Attorney for the Eastern District of Washington, joined the Department of Justice in announcing more than $70 million in grant funding to bolster school security, educate and train students and faculty, and support law enforcement officers and first responders who arrive on the scene of a school violence incident, including $150,000 to fund the Ellensburg School District and $49,750 to fund the Northeast Washington Educational Service District 101 in the Eastern District of Washington. Overall, schools in the State of Washington will get more than $1 million through the Bureau of Justice Assistance’s STOP School Violence Threat Assessment and Technology Reporting Program and the STOP School Violence Prevention and Mental Health Training Program.
These grants are in addition to the funding to the National Association of School Resource Officers (NASRO), announced by Attorney General Sessions last week, to expand and update their curriculum to better support training programs. These grants combined will better protect students, teachers, faculty, and first responders across the United States. Additionally, the Department is awarding more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems, which will help law enforcement and increase the effectiveness of background checks.
“President Trump and his administration will ensure the safety of every American school," Attorney General Jeff Sessions said. "Earlier this year he signed into law the STOP School Violence Act, which provides grant funding to develop anonymous school threat reporting systems, to implement school building security measures, and to train students, school personnel, and law enforcement on how to prevent school violence. Today I am announcing $70 million in these grants to hundreds of cities and states across America. These grants will go a long way toward giving young people and their families both safety and peace of mind.”
Joseph H. Harrington said, “The award made to the entities in the Eastern District of Washington are welcomed with exuberance. These grants will better protect students, teachers, faculty, law enforcement officers, and first responders”
The Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA) and the Office of Community Oriented Policing Services (COPS Office) together are making more than 220 awards to jurisdictions across the country to help make schools more secure. The awards, granted through three funding streams, will provide new technology for reporting systems and other threat deterrent measures and create school safety training and education programs for school administrators, staff, students, and first responders. This includes the support for existing crisis intervention teams and the creation of new ones.
• BJA’s STOP School Violence Threat Assessment and Technology Reporting Program will provide 68 awards valued at more than $19 million. This funding supports training to create and operate threat assessment and crisis intervention teams and to develop technology for local or regional anonymous reporting systems. This technology may be in the form of a mobile phone application, hotline, or website.
• The STOP School Violence Prevention and Mental Health Training Program, also managed by BJA, will provide training and education on preventing violence and effectively responding to related mental health crises. This program will fund 85 awards at nearly $28 million.
• The COPS Office School Violence Prevention Program (SVPP) will provide nearly $25 million to 91 jurisdictions for school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence against others and self, target hardening measures, and technology for expedited notification of law enforcement during an emergency.
The grants are authorized by the STOP School Violence Act, which are intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.
The Department also announced that it has awarded more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems. These grants are administered by the Bureau of Justice Statistics, part of OJP. Approximately $43 million in funding will be administered through the National Criminal History Improvement Program (NCHIP), and nearly $21 million will be awarded under the National Instant Criminal Background Check System (NICS) Act Record Improvement Program. These grant programs help states automate and upgrade records accessed by the firearms background check system. This year, at the direction of the Attorney General, the Department prioritized funding for projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.
The Department is also investing over $1 million in research to better understand the factors behind mass shooting incidents. The grant awards, made by the Department’s National Institute of Justice (NIJ), part of OJP, support scientific investigations that will examine factors that contribute to mass violence, identify any patterns in mass shootings, analyze psychological and social life histories of mass shooters and community-level predictors of mass violence, and will examine firearm purchasing patterns of known mass shooters in order to create a risk prediction tool.
For addition information on today’s grant announcements, visit www.bja.gov or www.cops.usdoj.gov.
NOTE: The breakdown of the STOP School Violence Grants can be found here: STOP School Violence Threat Assessment and Technology Reporting Program, STOP School Violence Prevention and Mental Health Training Program, and COPS Office School Violence Prevention Program
Two Bell Garden Locos Street Gang Members Sentenced for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced the sentencings of Grandview, Washington residents, Fidel Gonzalez-Molina, Jr., age 24, and Edvin Daniel Osorio, age 21, following their pleas of guilty to being previously convicted felons in possession of ammunition and a firearm. Gonzalez-Molina and Osorio are members of the “Bell Garden Locos” street gang. United States District Judge Salvador Mendoza, Jr. sentenced Gonzalez-Molina for unlawfully possessing ammunition to a 15-month term of imprisonment, to be followed by a 3-year term of court supervision following release from Federal prison. United States District Judge Stanley A. Bastian sentenced Osorio for illegally possessing a firearm to a 6-month term of home confinement, followed by a 3-year term of probation.
According to information disclosed during court proceedings, a Sunnyside Police Department officer initiated a stop on a vehicle with four occupants after receiving reports that someone in the vehicle was target shooting at street signs near Harrison and Sheller Road. The driver, Gonzalez-Molina, told officers he was a former member of the “Bell Garden Locos” street gang. Osorio, the front-seat passenger, was known by law enforcement to be a member of the same gang. During the stop, officers observed a plastic shopping bag fly from the passenger compartment. Officers retrieved it and found a sales receipt from a local sporting goods store for the recent purchase of .357 caliber ammunition. After obtaining consent to search the vehicle, officers found a Smith and Wesson .357 caliber revolver wrapped in a blue bandana inside the glove compartment. Officers then contacted the sporting goods store and reviewed its security video as it related to the time stamp on the sales receipt. The store’s video revealed Gonzalez-Molina and Osorio were involved in purchasing the ammunition.
Joseph H. Harrington said, “Convicted felons have no right to possess firearms and ammunition. If someone chooses to violate federal law, they will be prosecuted. I commend the outstanding work of the FBI, ATF, and Sunnyside Police Department in investigating this case.”
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 Sunnyside Police Department, the Yakima Resident Office of the Federal Bureau of Investigation, and the Yakima Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
Spokane Man Sentenced to 135 Months in Federal Prison for Defrauding Individuals in Connection with Advance Fee SchemeRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Derrick John Fincher, age 48, of Spokane, Washington, was sentenced today after being found guilty by a jury of Conspiracy to Commit Wire Fraud. Chief United States District Judge Thomas O. Rice sentenced Fincher to a 135-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. Fincher was also ordered to pay $2,015,000 in restitution to his victims.
According to information disclosed during court proceedings, Fincher and his conspirators, Vassily Anthony “Tony” Thompson and John Patrick Nixon, orchestrated an advance fee fraud scheme that duped their victims into paying $160,000 to $1 million as “show money” or “insurance fees” to purportedly obtain loans of millions of dollars from the Export-Import Bank and other lending institutions. The victims sought these loans for legitimate business ventures the victims were pursing including: a celebrity golf tournament in Coeur d’Alene, Idaho, a movie studio in Montana, and a housing development near Charlotte, North Carolina. In reality, Fincher and his co-conspirators used the victim’s money to pay their own personal living expenses. The victims were defrauded out of $2,015,000.
Joseph H. Harrington said, “Posing as legitimate businessmen, the defendant and his conspirators used false promises to extract significant fees from their victims, but they provided nothing in return. Their promises of loans were empty as they were nothing more than a fraudulent scheme designed to line their pockets. The sentence imposed sends a strong message to others who may engage in similar conduct. I commend the FBI and the Special Agents for their tenacity and dedication in uncovering and investigating this advance fee scheme. The United States Attorney’s Office for the Eastern District of Washington will continue to prosecute aggressively white collar crime occurring in this District.”
The Court previously sentenced Fincher’s conspirators, Thompson and Nixon, to 9-year and 2-year terms of imprisonment, respectively, followed by a 3-year term of court supervision, and ordered them to pay $2,015,000 in restitution.
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation. This case was prosecuted by Scott Jones and Joseph Derrig, Assistant United States Attorneys for the Eastern District of Washington.
California Man Sentenced to 9 Years in Federal Prison for Defrauding Investors in Connection with Advance Fee SchemeRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Vassily Anthony “Tony” Thompson, age 64, of Los Angeles, California, was sentenced today after being found guilty after a February trial of Conspiracy to Commit Wire Fraud. Chief United States District Judge Thomas O. Rice sentenced Thompson to a 9-year term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. Thompson was also ordered to pay $2,015,000 in restitution to his victims.
According to information disclosed during court proceedings, Thompson and his conspirators, Derrick John Fincher and John Patrick Nixon, orchestrated an advance fee scheme that duped individuals into investing in three sham business ventures – a celebrity golf tournament in Coeur d’Alene, Idaho, a movie studio in Montana, and a housing development near Charlotte, North Carolina, by falsely promising them access to tens of millions of dollars from the Export-Import Bank and other lending institutions. Thompson and his associates induced investors to pay “advance fees” of $160,000 to $1 million, which the investors were told was “show money” or “insurance fees.” In reality, Thompson used the money to pay his personal living expenses. Three victims were defrauded out of $2,015,000.
Joseph H. Harrington said, “Today’s sentence should send a strong message to would-be fraudsters who target individuals for financial gain. I commend the FBI and the Special Agents for their tenacity and dedication in uncovering and investigating this fraudulent scheme. The United States Attorney’s Office for the Eastern District of Washington will continue to prosecute aggressively white collar crime occurring in this District.”
Fincher will be sentenced on September 13, 2018.
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation. This case was prosecuted by Scott Jones and Joseph Derrig, Assistant United States Attorneys for the Eastern District of Washington.
Spokane Felon Sentenced to 20 Years in Federal Prison for Firearms Possession and Drug TraffickingRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Michael C. Painter, age 32, of Spokane, Washington, was sentenced today after having pleaded guilty to possessing with the intent to distribute 50 grams or more of actual methamphetamine, possessing firearms in furtherance of a drug trafficking crime, and being a previously convicted felon in possession of firearms. Chief United States District Judge Thomas O. Rice sentenced Painter to a 240-month term of imprisonment, to be followed by a 5-year term of court supervision following release from Federal prison. Chief Judge Rice also imposed an additional 24-month term of imprisonment, to run concurrent to the 240-months, after finding that Painter violated court supervision stemming from a previous firearm-related conviction.
According to information disclosed during court proceedings, Painter was a passenger in vehicle stopped for a traffic infraction. During the stop, deputies determined Painter had a pending arrest warrant. While searching Painter incident to arrest, deputies seized a loaded Glock, model 22, .40 caliber, pistol from Painter’s waistband and approximately 54 grams of actual methamphetamine in his pants. After obtaining a warrant to search the vehicle, deputies seized a loaded Hi-Point, Model C9, 9mm pistol and 218 grams of actual methamphetamine from a bag in the area where Painter was sitting. At the time, Painter was serving a term of federal supervised release.
Joseph H. Harrington said, “The sentence imposed today sends a strong message to individuals who commit drug and firearm-related crimes in the Eastern District of Washington. I commend the law enforcement officers with ATF, FBI and Spokane County Sheriff’s Office for their excellent investigative work in this case.”
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 Spokane County Sheriff’s Office, the Spokane Federal Bureau of Investigations’ Safe Streets Task Force, and ATF. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Sureno Gang Member Sentenced to 172 Months in Federal Prison for His Involvement in Discharge of a Firearm During Crime of Violence and Being a Felon in Possession of a FirearmRead the Press Release
Spokane– Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Angel Abel Campos, age 24, of Toppenish, Washington, a documented Sureno gang member, was sentenced today after having pleaded guilty in May 2018, to being a felon in possession of a firearm and participating in the discharge of a firearm during a crime of violence. United States Senior District Judge Lonny R. Suko sentenced Campos to a 172-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison, and ordered Campos to pay $16,000 restitution to the victims.
According to information disclosed during court proceedings, on January 17, 2017, a male and female, who happened to be wearing the color red, were walking in the Yakamart parking lot in Toppenish, Washington. A male approached and asked “what do you bang?” The two pedestrians replied they were not gang members, left the Yakamart parking lot, and walked to a McDonald’s restaurant. Campos, who was driving a blue Mercury Mountaineer, drove another male around Toppenish until they spotted the two pedestrians. Campos slowed down, turned off his headlights, and pivoted his vehicle toward them. Several gunshots were fired at the two pedestrians. Both victims suffered gunshot wounds. The victims were unable to identify the persons involved in the shooting. The Toppenish Police Department and the Federal Bureau of Investigation began an investigation. Law enforcement officers developed leads from surveillance footage recovered from the Yakamart and McDonald’s restaurant.
On March 21, 2017, members of the Pacific Northwest Violent Offender Taskforce arrested Campos due to an outstanding warrant. Inside a blue Mercury Mountaineer, the officers observed an assault rifle and high capacity magazine. The assault rifle was not utilized in the January 17, 2017, shooting incident.
Campos is a documented Sureno gang member and has a lengthy criminal history. As an adult, Campos has been convicted of attempting to elude a police officer, second degree assault, fourth degree assault, second degree possession of a firearm, and bail jumping.
United States Attorney Harrington said, “The sentence imposed sends a strong message to gang members that their actions will not be tolerated. These cases are an example of the superb work that that can be accomplished when federal, tribal, and local law enforcement work together. The United States Attorney’s Office will continue to prosecute violent crimes that occur in the Eastern District of Washington.”
The cases were 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.
The Federal Bureau of Investigation, the Toppenish Police Department, the Yakama Nation Police Department, the Yakima County Sheriff’s Office, the Yakima Police Department, and the Pacific Northwest Violent Offender Taskforce participated in the investigation of these two matters. The cases were prosecuted by Tom Hanlon, Assistant United States Attorney for the Eastern District of Washington.
Lockheed Martin Corporation/Mission Support Alliance Employee Enters Settlement of Alleged False Claims Act Violations in Connection with Contracts at Hanford SiteRead the Press Release
The Justice Department announced today that Richard A. Olsen agreed to pay $124,440 to resolve claims that he violated the False Claims Act by submitting inflated prices in connection with a subcontract between Mission Support Alliance, LLC (MSA), a prime contractor at the Department of Energy (DOE) Hanford Nuclear Reservation, and Lockheed Martin Services, Inc. (LMSI), a subsidiary of Lockheed Martin Corporation (LMC). LMSI provided services to MSA as well as other prime contractors assisting with environmental cleanup services at the Hanford site near Richland, Washington. Mr. Olsen was an employee of LMC working for MSA. LMC, through a subsidiary, was one of the owners of MSA.
“We are committed to maintaining the integrity of the federal government’s procurement process,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This investigation and its resolution demonstrate that the Justice Department will work with its agency partners to protect public funds and ensure they are used for their intended purposes.”
In August 2009, MSA began performance under a multi-billion dollar services contract with the DOE for the environmental cleanup of the Hanford Site. The United States alleged that under the terms of MSA’s contract with DOE, LMSI, as an affiliate of MSA, was not entitled to receive profit on the work it performed for MSA. The United States further alleged that Mr. Olsen, while he was an employee of LMC working for MSA, falsely represented to DOE that the LMSI subcontract did not include any profit. Mr. Olsen allegedly received a payment of at least $41,480 from LMC for obtaining DOE’s consent to the inflated LMSI subcontract.
“This settlement requires Mr. Olsen to pay back three times the amount he received from the alleged fraud and holds Mr. Olsen accountable for his actions,” said Joseph H. Harrington, United States Attorney for the Eastern District of Washington. “It also sends a strong message to those individuals who may engage in similar conduct. I commend the outstanding investigative work performed by the Department of Energy Office of Inspector General, which made this resolution possible.”
“The Department of Energy Office of Inspector General is committed to ensuring the integrity of our contractors and subcontractors by detecting and holding accountable those who choose to engage in false claim and kickback schemes,” said DOE’s Acting Inspector General April G. Stephenson. “This settlement is a result of our staff’s dedicated work to ensure the government is not charged with false and inflated claims. We appreciate the efforts of the DOJ in pursuing this matter and will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”
The investigation of Mr. Olsen was handled by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Eastern District of Washington, and the DOE Office of the Inspector General.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
U.S. Attorney’s Office to Take Part in Spokane’s National Night Out Against CrimeRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that on Tuesday, August 7th, members from his office will participate in community events held as part of Spokane’s National Night Out Against Crime.
National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, more caring places to live. National Night Out enhances the relationship between neighbors and law enforcement while bringing back a true sense of community. Furthermore, it provides a great opportunity to bring law enforcement and the community together under positive circumstances.
Joseph H. Harrington said, “National Night Out Against Crime is an outstanding opportunity for neighbors to gather with their law enforcement and community partners. When such groups gather they demonstrate that battling crime in our communities is truly a collective responsibility. The United States Attorney’s Office for the Eastern District of Washington looks forward to joining others on Tuesday to help continue to spread the important message that we are all in this together.”
For more information visit https://www.spokanecops.org/events/ or https://www.spokanecounty.org/1439/Neighborhood-Watch
Chief Financial Officer of Mission Support Alliance Agrees to Pay $124,440 for Allegedly Accepting Kickbacks from Lockheed MartinRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Richard A. Olsen, the Chief Financial Officer (CFO) for Department of Energy (DOE) prime contractor Mission Support Alliance LLC (MSA), has agreed to pay $124,440 to resolve allegations that he violated the False Claims Act and the Anti-Kickback Act when he took at least $40,000 in illegal kickbacks paid to him by Lockheed Martin Corporation (Lockheed Martin).
In August 2009, MSA began performance under a multi-billion dollar services contract with DOE to provide services in support of the environmental cleanup of DOE’s Hanford Site. MSA was partly owned by Lockheed Martin and entered into a subcontract worth hundreds of millions of dollars with a subsidiary of Lockheed Martin for the performance of IT services at the Hanford Site. By operation of the prime contract and subcontract, the United States, through DOE, paid 100 percent of the IT services provided by Lockheed Martin at Hanford.
The United States alleged that Mr. Olsen, while he was an employee of Lockheed Martin on loan to MSA as MSA’s CFO, received at least $41,480 in illegal kickback payments from Lockheed Martin to improperly obtain or reward favorable treatment for Lockheed Martin in connection with the subcontract and/or prime contract. The United States’ allegations included that Mr. Olsen assisted in drafting and submitting false statements to DOE regarding the labor rates charged by Lockheed Martin as well as Lockheed Martin’s anticipated profit in providing IT services at Hanford. The United States further alleged that Mr. Olsen was involved with the resulting submission of false and inflated claims to DOE between March 1, 2010 and February 21, 2012, when he received the $41,480 illegal kickback payment from Lockheed Martin rewarding him for the impermissible profit Lockheed Martin reaped as a result of the alleged fraud.
United States Attorney Harrington said, “This settlement requires Mr. Olsen to pay back three times the amount he received from the alleged fraud and holds Mr. Olsen accountable for his actions. It also sends a strong message to those individuals who may engage in similar conduct. I commend the outstanding investigative work performed by the Department of Energy Office of Inspector General, which made this resolution possible.”
The settlement agreement requires Mr. Olsen to pay the full $124,440 settlement amount within five days of signing the agreement. The settlement agreement further requires Mr. Olsen to cooperate with the ongoing investigation of the alleged fraud scheme including submitting to an in person interview with Special Agents for the Department of Energy Office of Inspector General (OIG).
April G. Stephenson, DOE’s Acting Inspector General said, “The Department of Energy Office of Inspector General is committed to ensuring the integrity of our contractors and subcontractors by detecting and holding accountable those who choose to engage in false claim and kickback schemes. This settlement is a result of our staff’s dedicated work to ensure the government is not charged with false and inflated claims. We appreciate the efforts of the DOJ in pursuing this matter and will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”
This settlement was negotiated by Assistant United States Attorneys Tyler Tornabene and Dan Fruchter, with analytical support from Affirmative Civil Enforcement Investigative Analyst Jeanne Harkleroad, and in conjunction with the Department of Justice Civil Frauds Section and the Department of Energy Office of Inspector General. The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Spokane Man Sentenced to 14 Years in Federal Prison for Possessing Four Pounds of MethamphetamineRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Joey Alan Yamada, age 55, of Spokane, Washington, was sentenced today after having pleaded guilty on April 17, 2018, to possessing with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Chief United States District Judge Thomas O. Rice sentenced Yamada to a 168-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, while executing a warrant to search Yamada’s residence, Spokane Police officers seized approximately four pounds of methamphetamine secreted in a safe and behind a wall. Officers also seized sixteen firearms, including a sawed-off rifle, and other drug trafficking accoutrements.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Spokane Police Department, the DEA, and the ATF who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court removes a drug trafficker from our streets and sends a clear message to others who may choose to engage in such criminal activity.”
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 Spokane Resident Offices of the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Spokane Police Department. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Spokane Man Sentenced to 126 Months in Federal Prison for Distributing Methamphetamine and Violating Court SupervisionRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Jason Obermiller, age 34, of Spokane, Washington, was sentenced today after having pleaded guilty in April 2018, to distributing and conspiring to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and admitting to violations of court supervision. Chief United States District Judge Thomas O. Rice sentenced Obermiller to a 90-month term of imprisonment, to be followed by an 8-year term of court supervision after he is released from Federal prison. Chief Judge Rice also imposed a 36-month term of imprisonment, to run consecutive to the sentence imposed in the drug case, after finding that Obermiller violated court supervision stemming from a previous conviction for bank fraud conspiracy. Chief Judge Rice also ordered Obermiller’s sentence to run consecutive to the 33-month state term of incarceration he is currently serving.
According to information disclosed during court proceedings, in September 2016, Obermiller distributed and conspired to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and did so after he had absconded from court supervision stemming from a bank fraud conspiracy conviction.
U.S. Attorney Harrington said, “Prosecuting drug crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. Drug traffickers should be aware that there are serious criminal penalties connected with possessing with the intent to distribute any drug and that this Office is committed to prosecuting aggressively drug cases in the Eastern District of Washington.”
This case was investigated by the Spokane Resident Office of the U.S. Drug Enforcement Administration, Spokane Police Department, and the Northwest High Intensity Drug Trafficking Area. This case was prosecuted by Caitlin Baunsgard, Allyson Edwards, and George J.C. Jacobs, III, Assistant United States Attorneys for the Eastern District of Washington.