Eastern District of Washington
Press releases recorded for this federal judicial district.
Registered Sex Offender Sentenced to Ten Years in Federal Prison for Possessing Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kyle Splattstoesser, age 43, of Ritzville, Washington, was sentenced after having previously pleaded guilty on May 14, 2013 to Possession of Child Pornography. Senior United States District Court Judge Robert Whaley sentenced Splattstoesser to a ten-year term of imprisonment, to be followed by a life-term of court supervision after he is released from Federal prison. Splattstoesser has a prior federal conviction in 2006 for Possession of Child Pornography and is a registered sex offender.
According to information disclosed during the court proceedings, in March of 2010, the Federal Bureau of Investigation and Grant County Sheriff's Office conducted an investigation of a mother using her children to produce images of child pornography. The mother, Pamela Ortega, plead guilty to three counts of Rape of a Minor and was sentenced in Washington State to 300 months imprisonment. As a result of the investigation into Ortega, law enforcement determined that one of the individuals she was communicating with about child pornography images was Kyle Splattstoesser. On April 29, 2011, the FBI executed a search warrant at Splattstoesser's residence and ultimately located a laptop computer that contained images of child pornography.
Michael C. Ormsby stated: "The United States Attorney's Office in the Eastern District of Washington continues to prosecute aggressively and seek appropriate punishment for child pornography crimes. The successful prosecution of this case is the direct result of the strong working partnership between Federal and local law enforcement officers in the Eastern District of Washington."
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 child victims;
- 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 investigation was conducted the Federal Bureau of Investigation and the Grant County Sheriff's Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-12-0137-RHW
59 Year Old Spokane Man Sentenced to Five Years in Federal Prison for Receiving Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that John Schadl, age 59, of Spokane, Washington, was sentenced on August 22, 2013, after having previously pleaded guilty on May 28, 2013 to Receipt of Child Pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Schadl to a five year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Schadl was ordered to forfeit the computer he used to receive the child pornography images.
According to information disclosed during the court proceedings, in January of 2012, the National Center for Missing and Exploited Children (NCMEC) received three separate investigative referrals regarding sexually explicit conversations of concern on an Internet website. NCMEC referred the investigative materials to the Washington State Internet Crimes Against Children (ICAC) Task Force. Investigation conducted by ICAC Detectives from the Airway Heights Police Department and the Spokane County Sheriff's Office determined that Schadl had received child pornography images on his desktop computer at his residence in Spokane, Washington.
Michael C. Ormsby stated, "This case in yet another example of the strong working partnership established between Federal and local law enforcement officers. The public should be aware of these partnerships as well as the United States Attorney's Office in the Eastern District of Washington continued commitment to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting these types of crimes is a priority for this Office, particularly because of the tender age of the innocent children victimized by child-pornography crimes."
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 child victims;
- 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 investigation was conducted Homeland Security Investigations, the Airway Heights Police Department, and Spokane County Sheriff's Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-0004-RMP
59 Year Old Spokane Man Sentenced to Five Years in Federal Prison for Receiving Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that John Schadl, age 59, of Spokane, Washington, was sentenced on August 22, 2013, after having previously pleaded guilty on May 28, 2013 to Receipt of Child Pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Schadl to a five year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Schadl was ordered to forfeit the computer he used to receive the child pornography images.
According to information disclosed during the court proceedings, in January of 2012, the National Center for Missing and Exploited Children (NCMEC) received three separate investigative referrals regarding sexually explicit conversations of concern on an Internet website. NCMEC referred the investigative materials to the Washington State Internet Crimes Against Children (ICAC) Task Force. Investigation conducted by ICAC Detectives from the Airway Heights Police Department and the Spokane County Sheriff's Office determined that Schadl had received child pornography images on his desktop computer at his residence in Spokane, Washington.
Michael C. Ormsby stated, "This case in yet another example of the strong working partnership established between Federal and local law enforcement officers. The public should be aware of these partnerships as well as the United States Attorney's Office in the Eastern District of Washington continued commitment to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting these types of crimes is a priority for this Office, particularly because of the tender age of the innocent children victimized by child-pornography crimes."
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 child victims;
- 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 investigation was conducted Homeland Security Investigations, the Airway Heights Police Department, and Spokane County Sheriff's Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-0004-RMP
Wenatchee Man Sentenced to Ten Years in Federal Prison for Posessing A Modified FirearmRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Juan Manuel Fernandez, age 33, of Wenatchee, Washington, was sentenced on August 8, 2013, after having previously pled guilty on March 21, 2013, to being a felon in possession of a firearm. Senior United States District Court Judge Wm. Fremming Nielsen sentenced Fernandez to a ten year term of imprisonment, to be followed by a three year term of court supervision after he is released from Federal prison. In addition, Fernandez was ordered to forfeit the firearm.
According to information disclosed during the court proceedings, in late July and early August 2012, a Columbia River Drug Task Force investigation revealed Fernandez was distributing methamphetamine in the Wenatchee area. On August 10, 2012, the Columbia River Drug Task Force executed a search warrant on Fernandez's Wenatchee residence and located a large quantity of methamphetamine as well as a Ruger Model 10-22 .22 caliber rifle. The rifle's barrel had been significantly modified to be easily concealed.
Michael C. Ormsby stated, "that this case is a perfect example of the cooperation and coordination between federal and local officials in efforts to combat violent crime in our region. Our colleagues in Wenatchee and Chelan County did a wonderful job on this case."
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Columbia River Drug Task Force, the Chelan County Sheriff's Office, the Wenatchee Police Department, and the Washington State Patrol. The case was prosecuted by Caitlin A. Baunsgard, Assistant United States Attorney for the Eastern District of Washington.
CR-12-00125-WFN
Spokane Valley Man Sentenced to Five Years in Federal Prison for Possessing Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Michael A. McGuffy, age 33, of Spokane Valley, Washington, was sentenced today after having previously plead guilty on April 17, 2013, to Receipt of Child Pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced McGuffy to a five year term of imprisonment, to be followed by a twenty year term of court supervision after he is released from Federal prison. In addition, McGuffy was ordered to forfeit the computer and USB devices he used to receive the child pornography images.
According to information disclosed during the court proceedings, in March of 2012, a Spokane County Sheriff's Office Internet undercover investigation discovered that McGuffy was sharing images of child pornography with other individuals, via the Internet, using a peer to peer file sharing program. On April 12, 2012, law enforcement from the Eastern District of Washington, Internet Crimes Against Children (ICAC) Task Force executed a search warrant at McGuffy's residence in Spokane Valley. The officers discovered McGuffy had downloaded in excess of 2000 images and 57 videos of child pornography onto his computer, which included images of minors under the age of twelve and sadistic and masochist images.
Michael C. Ormsby stated, "that our office and law enforcement partners take these cases very seriously and are committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting these types of crimes is particularly important because of the tender age of the innocent victims."
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 child victims;
- 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 investigation was conducted the United States Secret Service and the Spokane County Sheriff's Office. The case was prosecuted by Stephanie J. Lister, Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-0025-RMP
Nespelem Man Sentenced to Federal Prison for Domestic ViolenceRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Tommie Joe Flett, age 41, of Nespelem, Washington, was sentenced on Monday, August 5, 2013, after having previously pleaded guilty on April 29, 2013, to one count of Assault With a Dangerous Weapon and one Count of Domestic Assault by an Habitual Offender. United States District Court Judge Fred Van Sickle sentenced Flett to a thirty-four month term of imprisonment, to be followed by three years of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on June 5, 2012, Flett entered an apartment where his girlfriend was watching a movie with her girlfriend. Flett entered the living room and began hitting his girlfriend, then after knocking her to the ground, Flett began kicking her. Flett then choked his girlfriend. He then brandished a knife and cut her on the shoulder. The victim fled to a bathroom, where Flett brandished another knife, held it to her throat and said he wanted to kill her. Colville Tribal Police officers entered the apartment after a witness called 9-1-1. Flett was found in the apartment and arrested.
Michael C. Ormsby stated, "domestic violence is an ongoing problem that requires decisive action." "The United States Attorney's Office for the Eastern District of Washington is, and will continue to be, committed to aggressively prosecuting domestic violence crimes that occur within federal jurisdiction, including the Indian reservations in the District."
This investigation was conducted by FBI and the Colville Tribal Police Department. The case was prosecuted by Rudy J. Verschoor, Assistant United States Attorney for the Eastern District of Washington.
CR-12-00132-FVS
Spokane Valley Man Sentenced to Twelve Years in Federal Prison for Possessing Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Christopher Michael Ebner, age 38, of Spokane Valley, Washington, was sentenced today after having previously pleaded guilty on March 19, 2013 to possessing child pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Ebner to a twelve year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Ebner was ordered to forfeit the computer he used to possess the child pornography images.
According to information disclosed during the court proceedings, in January of 2012, a Spokane Police Internet undercover investigation discovered that Ebner was sharing images of child pornography with other individuals, via the Internet, using a peer to peer file sharing program. On January 26, 2012, law enforcement officers executed a search warrant at Ebner's residence in Spokane Valley. The officers discovered Ebner had downloaded well in excess of 400 images and 1,000 videos of child pornography onto his computer, which included images of minors under the age of twelve and sadistic and masochist images. Ebner's criminal history includes prior Washington State convictions in 2004 for Third Degree Rape of a Child and Possession of Depictions of a Minor Engaged in Sexually Explicit Conduct.
Michael C. Ormsby stated, "The United States Attorney's Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting these types of crimes is particularly important because of the tender age of the innocent victims."
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 (PSC) Initiative has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- 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 investigation was conducted the FBI and the Spokane Police Department. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-12-0126-RMP
Spokane Man Sentenced as Armed Career Criminal for Firearm PosessionRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Byron Cornelius Prince, age 49, of Spokane, Washington, was sentenced for the crime of being a previously convicted felon in possession of a firearm. United States District Court Judge Thomas O. Rice sentenced Prince to a 180 month term of imprisonment, to be followed by a 5 year term of court supervision after release from Federal prison. Because of his criminal history, which included three crimes of violence, Judge Rice found that Prince was an Armed Career Criminal. Prince has been in custody since November 14, 2012.
Prince was convicted following a two day jury trial in Federal District Court in Spokane, Washington. The trial began on April 29, 2013 and concluded with Princes's conviction on April 30, 2013. Evidence introduced at trial established that on the evening of June 21, 2011, Prince shot himself in the leg with a .22 caliber pistol during an argument with another individual. The shooting occurred near Prince's car, which was parked on the street outside Prince's residence in Spokane. As part of the investigation following the shooting, police officers obtained a warrant to search Prince's vehicle and found a .22 caliber pistol and holster in the trunk.
Michael C. Ormsby said, "The message should be clear, if you are a felon and you possess a firearm, the penalties will be severe. If you are an Armed Career Criminal, you will face a 15-year mandatory prison sentence. The safety of the community demands these sanctions."
The investigation was conducted by the Spokane Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
12-CR-00110-TOR
White Swan Man Sentenced to 84 Months Imprisonment for Assaulting Woman with ShoeRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Chet Arlie Moses, age 28, of White Swan, Washington, was sentenced on July 23, 2013 after pleading guilty in March, 2013 to committing an Assault with a Dangerous Weapon. United States District Court Judge Thomas O. Rice sentenced Moses to an 84-month term of imprisonment, to be followed by a 3-year term of court supervision upon release from Federal prison. Judge Rice also ordered Moses to pay nearly $4,000 in restitution to a Toppenish, Washington hospital and a health services organization.
According to information disclosed at the change of plea and sentencing hearings: On November 9, 2012, Moses, a member of the Spokane Tribe of Indians, and the female-victim had a verbal argument. The argument escalated and Moses began beating the female-victim with his fists and a shoe. Moses told the female-victim that he was going to kill her family. The female-victim was able to extricate herself from the scene and immediately contacted the Yakama Tribal Police Department. Tribal Police officers responded and observed that the female-victim was covered in blood. She was transported to the Toppenish Community Hospital where she was provided medical assistance. Thereafter, Detectives with the Yakama Tribal Police contacted the Federal Bureau of Investigation. Together, the law enforcement officers obtained a search warrant for Moses' residence located in White Swan, Washington. At the residence, the law enforcement officers observed a pool of dried blood on a blanket and also discovered a shoe with blood on the sole. Law enforcement officers later interviewed Moses and he confessed that he had assaulted the female-victim.
Michael C. Ormsby said, "Individuals like Chet Moses who commit serious assaults will be prosecuted aggressively and will face lengthy prison sentences. The United States Attorney's Office, the Federal Bureau of Investigation, and the Yakama Tribal Police Department, have a no tolerance for individuals who engage in such criminal conduct."
This investigation was conducted by the Federal Bureau of Investigation and the Yakama Nation Tribal Police Department. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney in the Eastern District of Washington.
12-CR-2088-TOR
U.S. Attorney's Office Selects Corporate Monitor for Department of Energy Prime Contractor CH2M Hill Plateau Remedition CompanyRead the Press Release
Spokane, WA – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced today the selection of Pamela M. Roberts, a former Supervisory Staff Accountant with the Securities and Exchange Commission, to serve as the Corporate Monitor of CH2M Hill Plateau Remediation Company (CHPRC). The selection was made pursuant to the March Non-Prosecution Agreement (the Agreement) between CH2M Hill Companies Ltd, (CH2M Hill) and the U.S. Attorney's Office. As the Corporate Monitor for CHPRC, Ms. Roberts will ensure that CHPRC is in compliance with the terms and conditions of the Agreement and that CHPRC is in compliance with its own policies and procedures regarding the recording and reporting of labor hours to the Department of Energy (DOE). In addition, Ms. Roberts will monitor CHPRC's compliance with its contractual and regulatory obligations to DOE including those related to CHPRC's claiming of performance based incentives under its contract with DOE.
By way of the Agreement CH2M Hill admitted that its subsidiary CH2M Hill Hanford Group Inc. had criminally conspired with its own employees to defraud the United States through massive and systemic timecard fraud. Under the Agreement, as well as a related civil settlement with the Department of Justice, CH2M Hill has paid $18.5 million in damages and penalties related to the conspiracy and corresponding false claims. Among other terms and conditions in the Agreement CH2M Hill agreed to pay for a corporate monitor for three years at CHPRC, its remaining subsidiary at the Department of Energy's Hanford Site in Southeastern Washington. The Agreement requires CH2M Hill to contribute up to $500,000 towards accountability systems to help ensure that hours charged by CHPRC to DOE are in fact actually worked. As the Corporate Monitor, Ms. Roberts will play a central role in working with CH2M Hill, DOE, and the OIG to implement this provision of the Agreement.
Michael C. Ormsby said, "We are very pleased that Ms. Roberts has agreed to be the corporate monitor at CHPRC. I am confident that she possesses the ability, experience, and drive to fulfill successful the responsibilities of the position. The United States Attorney's Office for the Eastern District of Washington is fully committed to assisting and supporting Ms. Roberts' monitoring mission, particularly in the area of labor hours and performance based incentives to which large bonuses for management are often tied. We cannot allow for another timecard fraud conspiracy to develop at Hanford. We anticipate that Ms. Roberts will work with cooperating CHPRC employees to prevent just that." Mr. Ormsby also said, "CH2M Hill has been true to its word and by all accounts has been fully complying with both the letter and spirit of the Agreement. We fully expect that they will continue their commendable assistance in the process of getting Ms. Roberts set up and supporting her efforts."
Under the Agreement Ms. Roberts will be given full access to CHPRC's records and computer network, all areas managed by CHPRC, and will have the ability to attend any meeting of CHPRC employees at any level of its corporate hierarchy. In addition, the Agreement calls for Ms. Roberts to have review and comment authority on CHPRC's policies and procedures as well as its internal audits. Ms. Roberts, though an independent monitor, will work with the Department of Energy Office of Inspector General (OIG) by, for instance, providing quarterly reports. The Agreement provides that, if CH2M Hill does not fully comply with its obligations, CHG is subject to criminal prosecution based, in part, on the official admissions of CHG that it did in fact criminally conspire with its own employees to defraud the United States.
Ms. Roberts will be the first corporate monitor ever appointed to monitor a contractor at the Hanford Site. Ms. Roberts is anticipated to officially start as the CHPRC Corporate Monitor on July 15, 2013 and will serve until March of 2016.
Yakima Drug Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jose Antonio Naranjo-Lozano, age 24, of Yakima, Washington, was sentenced today after being convicted of Conspiracy to Distribute Methamphetamine. United States District Judge Edward F. Shea sentenced Naranjo-Lozano to a ten year term of imprisonment, to be followed by a five year term of court supervision following release from Federal prison.
In July 2012, a complaint was filed alleging that Naranjo-Lozano and a codefendant had attempted to sell five pounds of methamphetamine to undercover DEA agents. As detailed in the complaint, Naranjo-Lozano and the codefendant arrived at the location for the drug sale with the bulk of the methamphetamine hidden in an electrically operated secret compartment located in their vehicle. Naranjo-Lozano later pled guilty to one count of conspiracy to distribute over 500 grams of a substance containing methamphetamine.
Michael C. Ormsby said, "This case involved a significant amount of methamphetamine that the Defendant intended to distribute on the streets of Yakima. The seriousness of this crime is reflected by the ten year sentenced imposed by the judge. The DEA is committed to continue its aggressive investigative efforts to keep methamphetamine and other dangerous illegal drugs off the streets. The United States Attorney's Office in the Eastern District of Washington is similarly committed to aggressively prosecute such crimes. "
The investigation of this case was conducted by the Drug Enforcement Administration. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Man Sentenced to 37 Months Imprisonment for Assault on Yakama ReservationRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jerrel Lee Charles, age 21, was sentenced today for committing an Assault Resulting in Serious Bodily Injury, a crime to which he pleaded guilty in March, 2013. Senior District Court Judge Edward F. Shea sentenced the Charles to a thirty-seven (37) month term of imprisonment, to be followed by a three (3) year term of court supervision following his release from Federal prison. Judge Shea also ordered that Charles complete a mental health evaluation and follow any treatment recommendations of the evaluation professional.
According to information disclosed during the court proceedings, on October 13, 2012, Charles and his girlfriend had an argument at their residence located on the Yakama Reservation, which argument escalated into a physical confrontation. An acquaintance of the couple decided to intervene. The acquaintance retrieved a firearm, struck Charles, and began firing rounds into the air. The acquaintance and the victim then left the residence, entered a vehicle, and began to depart the area. Charles obtained a rifle and fired a shot at the vehicle. The victim was struck by a round fired by Charles. The victim was subsequently transported to the hospital. The Yakama Nation Tribal Police Department and the Federal Bureau of Investigation immediately began an investigation. After discovering what had happened, the law enforcement officers obtained a search warrant for the Charles' residence and the rifle was found in his bedroom. After being advised of his Miranda warnings, Charles admitted he had shot the round that struck the victim. As explained during the court proceedings, Charles has a history of psychiatric hospitalizations.
Michael C. Ormsby said, "The Defendant endangered the lives of innocent people by discharging a firearm in the manner in which he did. The victim in this case is lucky to be alive. This type of conduct will absolutely not be tolerated in the Eastern District of Washington. I commend the Yakama Nation Tribal Police Department and the Federal Bureau of Investigation for their efficient and successful investigative efforts in this case."
This investigation was conducted by the Yakama Nation Tribal Police Department and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tom Hanlon.
12-CR-02083-EFS
Yakima Drug Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ruben Ornelas, age 33, of Yakima, Washington, was sentenced today after being convicted of distribution of methamphetamine. Chief United States District Judge Rosanna Malouf Peterson sentenced Ornelas to a ten-year term of imprisonment to be followed by a five-year term of court supervision following release from Federal prison.
In October 2012, Ornelas was charged by Indictment with distributing methamphetamine on four separate occasions in Yakima, Washington during the summer of 2012. Ornelas later pleaded guilty to one count of distributing over 50 grams of actual methamphetamine.
Michael C. Ormsby said: "I commend the DEA for its tenacious investigative efforts in this case, as well as its continuing commitment to rid the Eastern District of Washington of methamphetamine. The ten year jail sentence meted out today is plainly appropriate for a drug dealer trafficking in the significant quantity of methamphetamine involved in this case."
The investigation of this case was conducted by the Drug Enforcement Administration. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
12-CR-2077-RMP
Seattle Man Charged in Spokane Ethanol Plant Investment SchemeRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Robert J. Braun, age 53, originally of Spokane, and now residing in Seattle, appeared for an arraignment in United States District Court in Spokane. Braun is charged in a twenty-seven count indictment with multiple allegations of Wire Fraud and Securities Fraud. If convicted, Braun faces up to twenty years of incarceration and up to $5,000,000 in fines on the most serious charges.
According to the indictment, Braun raised approximately $1.5 million as part of a scheme to defraud more than 50 investors. The indictment alleges that Braun claimed that he was raising funds for an ethanol plant that would be built in Spokane County, and that investors could earn extraordinary returns. The indictment also alleges that Braun used various business names including S & B Energy, LLC, S & B Energy Spokane, LLC, Novahol Spokane, LLC, and Novahol Medical Lake, LLC. The indictment alleges further that Braun used investor funds for various unauthorized personal and living expenses, including mortgage payments for three homes that he owned and purchases at department and clothing stores. Braun also allegedly diverted investor funds towards a women's shoe store that he owned in Spokane. Between 2008 and 2012, Braun is alleged to have lulled investors into a false sense of security by telling them funding for the ethanol plant was imminent.
The investigation was conducted by the Federal Bureau of Investigation, the Washington State Department of Financial Institutions (DFI), and the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by K. Jill Bolton, Assistant U.S. Attorney for the Eastern District of Washington and Special Assistant United States Attorney Robert Kondrat. Mr. Kondrat is an attorney with the Washington State Department of Financial Institutions, specially designated to handle securities fraud cases in federal court.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
2:13-CR-00083-RHW
Clarkston Man Sentenced to Federal Prison for Attempting to Provide Material Support to TerroristsRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Joseph Jefferey Brice, age 23, of Clarkston, Washington, was sentenced after previously pleading guilty on September 25, 2013 to the crimes of Attempting to Provide Material Support to Terrorists and Manufacturing an Unregistered Explosive Device. Following a day-long sentencing hearing on June 11, 2013, Senior United States District Court Judge Lonnie R. Suko sentenced Brice to a twelve and one half (12 ½) year term of imprisonment and a life term of court supervision following release from federal prison. In imposing the sentence Judge Suko focused on the need to protect the public from Brice in the future.
The charges stem from an incident that occurred on April 18, 2010, when an explosive device made by Brice prematurely ignited, causing him significant injuries. Subsequent to his hospitalization, Brice apparently self-radicalized and then began using social media to espouse his new found radical beliefs. Brice caught the attention of the Federal Bureau of Investigation (FBI) and the Inland Northwest Joint Terrorism Task Force (INJTTF) after he posted explosiverelated videos and jihad martyrs videos on a YouTube channel he registered under the name "StrenghofAllah." During its investigation, the FBI learned that Brice had utilized social media such as YouTube and both public and private internet sites to express his ongoing interests in explosives, terrorists, and terrorist organizations. Brice used numerous pseudonyms to discuss and defend Timothy McVeigh, who was responsible for the Oklahoma City Federal Building bombing in 1995. Brice posted dedication videos of Timothy McVeigh on YouTube in January 2010 and December 2010. Significantly, Brice also posted a comment on the internet in which he said, "Tim's characteristics are nearly the same as myself, physically/politically. Between December 2010 and May 2011, Brice had both public and private contact with a foreign-based jihadi internet site, upon which Brice posted instructions on the manufacturing of chemical improvised destructive devices ("IEDs") and other anti-law enforcement literature. In May 2011, after being asked over the internet for help with a problem that a purported "terrorist" was having with detonating chemical IEDs that were intended to be used in retaliation for the death of Usama bin Laden, Brice agreed and provided a correct, chemical-based, firing train formula.
Michael C. Ormsby said, "Aggressively investigating and prosecuting terrorist-related crimes is the number one priority for the United States Department of Justice and for the United States Attorney's Office for the Eastern District of Washington. Acts such as those committed by Brice will not go unpunished."
"Mr. Brice's obsession with explosives and damage is disturbing, but his interest in using them to kill indiscriminately is downright appalling," said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle office. "His sick, violent aspirations led him to share his designs even with those targeting fellow Americans. If Mr. Brice ever hopes to be a true member of any free society, he should use his years in prison to develop respect for the lives of others."
The investigation was conducted by the Federal Bureau of Investigation and the Inland Northwest Joint Terrorism Task Force. The case was prosecuted by Russell E. Smoot, an Assistant United States Attorney for the Eastern District of Washington.
11-CR-0057-LRS
Moses Lake Businessman Sentenced to Federal Prison for Failing to Report $2.6 Million in IncomeRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that J. Scott Vrieling, age 50, of Moses Lake, Washington, was sentenced today after having been convicted of four counts of failing to file federal income tax returns for the years 2004 through 2007. United States District Court Judge Robert H. Whaley, Jr. sentenced Vrieling to a 24-month term of imprisonment and a one-year term of court supervision following release from federal prison. Judge Whaley ordered Vrieling to pay $939,258 to the IRS for unpaid taxes, to file all delinquent income tax returns, and to pay penalties and interest in an amount to be determined by the IRS. Judge Whaley also ordered Vrieling to pay a fine in the amount of $100,000, the cost of prosecution in the amount of $14,269, and special penalty assessments in the amount of $100. Vrieling was taken into custody by the U.S. Marshal Service at the conclusion of today's sentencing hearing.
According to court records, Vrieling is the owner of Vrieling Financial located in Moses Lake, Washington. He is an independent insurance agent licensed to sell employee benefits, health insurance, and other insurance products.
By way of a four-count indictment that was returned by the grand jury in April, 2011, Vrieling was charged with four counts of failing to file federal income tax returns. Following a four-day jury trial in October, 2012, Vrieling was convicted on all counts. Evidence at trial established that Vrieling received over $2.6 million in gross income during the years 2004 through 2007. The evidence also established that Vrieling failed to file federal tax returns reporting this income and that he owed $956,258 in taxes.
Michael C. Ormsby said, "The United States Attorney's Office for the Eastern District of Washington aggressively investigates and prosecutes tax crimes. The privilege of living in the United States carries certain responsibilities, one of which is the payment of federal taxes. Everyone must pay their fair share and there are significant consequences for those who chose to cheat the system."
"There are people out there who willfully defy the tax laws based on false ideas and beliefs," said Tamera D. Cantu, Assistant Special Agent in Charge of IRS Criminal Investigation in Seattle. "Today's sentencing proves again that not fulfilling your tax obligations doesn't make them go away, it just puts you at risk of penalties, prosecution, and prison."
The investigation was conducted by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
11-CR-0057-RHW
Spokane Men Charged in Vehicle Fraud and Identity Theft SchemeRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington announced that a federal grand jury returned an 18 count indictment against Tam Quang Do, age 36, and Ming Quang Do, age 39. The indictment charges them with Conspiracy to Commit Wire Fraud, Wire Fraud, Odometer Fraud, and Aggravated Identity Theft. The fraud-related charges carry a maximum twenty (20) year term of imprisonment, with the Aggravated Identity Theft charge carrying a consecutive two-year term.
The indictment generally alleges that Tam Quang Do and Ming Quang Do purchased high-mileage vehicles in Eastern Washington and Northern Idaho. It is alleged that they fraudulently reset the vehicle odometers to reflect a significantly lower mileage total and thereafter created and utilized false and fraudulent sales advertisements about the vehicles' mileage, condition, and ownership history via the internet website "craigslist.com." It is also generally alleged that they provided the buyers with Washington and Idaho vehicle documents containing bogus information, the original owners' identification information, and forged signatures. It is alleged that Tam Quang Do and Ming Quang Do utilized a grocery parking lot located at 1616 W. Northwest Blvd. and a shopping plaza located at 1704 W. Wellesley Avenue in Spokane, Washington to negotiate and conduct many of the vehicle sales.
The public is encouraged to contact the U.S. Secret Service at (509) 353-2532 if they, or anyone they know, may have fallen victim to this or a similar scheme in the last six (6) to eighteen (18) months. This case was investigated by the United States Secret Service, Spokane County Sheriff's Office, and Kootenai County Sheriff's Office. The case is being prosecuted by Assistant United States Attorney Sean T. McLaughlin.
An Indictment Contains Allegations That a Defendant Has Committed a Crime. Every Defendant Is Presumed Innocent Unless and Until Proven Guilty Beyond a Reasonable Doubt.
Fluor Hanford Agrees to Pay $1.1 Million to Resolve Allegations of Improper LobbyingRead the Press Release
WASHINGTON – The Justice Department announced today that Fluor Hanford LLC (Fluor) has agreed to pay $1.1 million to settle allegations that Fluor violated the False Claims Act by using federal funds for lobbying. Fluor is a Department of Energy (DOE) contractor that performs management and engineering services at the DOE's Hanford Nuclear Site in Eastern Washington. Fluor's parent company, Fluor Corporation, is headquartered in Texas and performs engineering, construction, and personal services for commercial and government customers.
Between 2005 and 2009, Fluor contracted with the DOE to manage and operate the Hazardous Materials Management and Emergency Response (HAMMER) Center. The HAMMER Center provides homeland security and emergency response training to first responders and law enforcement personnel. Fluor allegedly used Department of Energy funds to lobby Congress and other federal officials to increase funding for the HAMMER Center, in violation of a federal law known as the Byrd Amendment, which prohibits the use of federal funds for lobbying.
"The money allocated by Congress for this program was designed to train first responders and law enforcement personnel to respond to crisis situations, not to lobby Congress for more funding," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. "This resolution demonstrates that the Justice Department will work to ensure that public funds are not used to influence legislation."
"The cleanup efforts at Hanford are too important to have prime contractors who misuse government funds to lobby for more government funds," said Michael C. Ormsby, United States Attorney for the Eastern District of Washington. "We are pleased that Fluor has settled these allegations and hope that this serves as a reminder to all prime contractors at Hanford that they must be good stewards of tax payer dollars."
The allegations resolved by today's settlement were initially alleged in a whistleblower lawsuit filed under the False Claims Act by Loydene Rambo, a former employee of Fluor. Under the False Claims Act, private whistleblowers can sue on behalf of the United States for false claims. The United States has the right to take over the action, as it did here. The whistleblower is entitled to a share of any recovery. Rambo will receive $200,000 of the government's settlement.
This case was handled by the Civil Division of the Department of Justice and the U.S. Attorney's Office for the Eastern District of Washington, with investigative assistance provided by the Department of Energy Office of Inspector General.
The False Claims Act suit was filed in the United States District Court for the Eastern District of Washington, and is captioned United States ex rel. Rambo v. Fluor Hanford, LLC et al., No. CV-11-5037 (E.D. Wash.). The claims settled in this case are allegations only; there has been no determination of liability.
Wapato Woman Sentenced to 10 Years in Federal Prison for Shooting Family MemberRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kara Lynn Stahi, age 20, of the Yakama Nation Indian Reservation, was sentenced today after having pleaded guilty in December, 2012, to Discharging a Firearm During the Commission of a Crime of Violence. United States District Court Judge Lonny Suko sentenced Stahi to a ten-year term of imprisonment, to be followed by a three-year term of court supervision upon her release from Federal prison.
During the court proceedings it was disclosed that, on July 22, 2012, a call was placed to 911 about a shooting on the Yakama Nation Indian Reservation. Yakama Tribal Police Officers quickly responded to the scene and discovered an individual with multiple gunshot wounds. The Tribal Officers also discovered several discharged ammunition casings. The victim was immediately transported to the hospital. A detective with the Yakama Police Department contacted the Federal Bureau of Investigation and a joint investigation began to determine the identity of the shooter.
The subsequent investigation revealed that during the early morning hours of July 22, 2012, Stahi had an argument with a family member. During the argument, James Anthony Lagmay retrieved a loaded firearm. Stahi took the firearm from Lagmay and used it to shoot the family-member-victim several times. After the shooting, Lagmay and Stahi, both of whom are previously convicted felons and, therefore, prohibited from possessing firearms, fled the crime scene. Federal arrest warrants were issued for Stahi and Lagmay, who were both arrested in the Fall of 2012. Lagmay subsequently pleaded guilty in October, 2012 for being a previously convicted felon in possession of ammunition. On January 31, 2013, Lagmay was sentenced to fifteen-month term of imprisonment, to be followed by a three-year term of court supervision upon release from Federal prison.
Michael C. Ormsby said, "This investigation is a superb example of the strong partnership among Tribal and Federal law enforcement personnel. The United States Attorney's Office, the Federal Bureau of Investigation, the Yakama Tribal Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives are committed to apprehending and prosecuting criminals who utilize firearms to commit crimes, particularly when the crime is as egregious as the offense committed in this case."
This investigation was conducted by the Federal Bureau of Investigation, the Yakama Nation Tribal Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Thomas J. Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
12-CR-2061-LRS
Two Moses Lake Drug Traffickers Sentenced to Lengthy Federal Prison TermsRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington announced that Isidro Madrigal-Galvan, age 20, and Renee Gomez, age 24, both of Moses Lake, Washington, were sentenced after being convicted by a jury of conspiracy to distribute methamphetamine and other offenses relating to the operation of a methamphetamine trafficking organization during May, 2010 through July, 2011. Senior United States District Judge Edward Shea sentenced Madrigal-Galvan to more than a 19 year term of imprisonment, to be followed by 8 years of court supervision upon release from Federal prison. As a condition of that supervision, Madrigal-Galvan is prohibited from returning to the United States – he is not a United States citizen and faces deportation to Mexico as a result the convictions in this case. Judge Shea sentenced Gomez to a 10 year term of imprisonment, to be followed by 6 years of court supervision upon release from Federal prison.
In April, 2012, Madrigal-Galvan and Gomez were charged by way of a multi-count Indictment with offenses relating to the distribution and possession of methamphetamine, including the possession with intent to distribute methamphetamine within 1,000 feet of a school, possession with intent to distribute methamphetamine on premisses in which an individual under the age of 18 was present or resided, maintaining a drug involved premises within 1,000 feet of a school, and using and carrying a firearm during and in relation to a drug trafficking crime. Following a trial, on October 10, 2012 the jury returned guilty verdicts against Madrigal-Galvan and Gomez on multiple counts.
At the sentencing hearing, Judge Shea noted a number of factors considered"aggravating" under federal Sentencing Guidelines, including that the drug trafficking conspiracy involved a premises that bordered a primary grade school. The Judge also noted that by Federal statute the sentence for using and carrying a firearm during and in relation to a drug trafficking crime must be served consecutive to the sentence imposed for any of the other crimes. These factors, in combination with others, resulted in Madrigal-Galvan's sentence of more than 19 years. With respect to Gomez, Judge Shea found that her role in the offenses was relatively minor by comparison to other participants, noting that in February, 2013, a third
member of the conspiracy, Martin Murillo-Barriga, was sentenced to over 16 ½ years. Based on the totality of the circumstances Judge Shea sentenced Gomez to a 10 year term of imprisonment, which was the minimum allowed by statute.Michael C. Ormsby stated that, "These sentences reflect the serious consequences associated with trafficking in methamphetamine, particularly when it is conducted so close to a grade school. The law enforcement agencies involved in this investigation should be commended for their efforts in investigating this, and other drug trafficking organizations. This case is yet one more example of the strong partnership among law enforcement professional here in the Eastern District of Washington."
The investigation of this case, which was related to a larger investigation conducted by the Drug Enforcement Administration that led to the service of several search warrants and the arrest of numerous individuals, was conducted by the Spokane Regional Drug Task Force in cooperation with the Moses Lake Police Department, the Grant County Sheriffs Office, the Grant County Interagency Narcotics Enforcement Team, the Douglas County Sheriff's Office, the Oregon State Police, the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, and Firearms; Immigrations and Customs Enforcement; and the United States Marshall's Service.
This case was prosecuted by Timothy J. Ohms and Caitlin A. Baunsgard, Assistant United States Attorneys for the Eastern District of Washington.
CR-12-0108-EFS
Hanford Contractor Agrees to Pay $18.5 Million Dollars to Resolve Civil and Criminal Allegations and to Cooperate with the United States in On-Going InvestigationRead the Press Release
RICHLAND - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, in conjunction with the United States Department of Justice's Civil Division, announced today that Colorado-based CH2M Hill Hanford Group Inc. (CHG) and its parent company, CH2M Hill Companies Ltd. (CH2M Hill), have agreed that CHG committed federal civil and criminal violations by defrauding the public through years of widespread time card fraud. In order to resolve CHG's civil and criminal liability, CH2M Hill has agreed: to pay a total of $18,500,000; to commit an additional $500,000 towards accountability systems; to consent to a corporate monitor; and to continue actively cooperating with an ongoing fraud investigation.
Specifically, the global resolution entered between CH2M Hill and the United States provides that CH2M Hill will pay $16,550,000 to resolve its civil liability under the False Claims Act. In addition, CH2M Hill entered into a Non-Prosecution Agreement with the United States Attorney's Office for the Eastern District of Washington to resolve its criminal liability. Under the terms of that agreement, CH2M Hill will refund an additional $1.95 million in wrongfully obtained profits, dedicate $500,000 to foster increased accountability at the Hanford Site, and pay for independent monitoring to ensure that CH2M Hill takes adequate corrective actions. To date, eight individuals have pleaded guilty to engaging in the same time card fraud scheme and conspiracy, in which conspiracy CH2M Hill has now admitted CHG itself was a co-conspirator.
Between 1999 and 2008, CH2M Hill had a contract with the United States Department of Energy to manage and clean 177 large underground storage tanks containing mixed radioactive and hazardous waste at the Department of Energy's Hanford Nuclear Site in southeastern Washington (the Tank Farms Contract). The Hanford Site was used for the production of nuclear weapons during World War II and the Cold War.
The global resolution entered between the United States and CH2M Hill is supported by an agreed statement of facts. According to those facts, CHG hourly employees involved in the cleanup routinely overstated the number of hours they worked. It is agreed that certain members of CHG management condoned the practice and, in turn, submitted inflated claims to the Department of Energy that included the fraudulently claimed hours. Specifically, CH2M Hill and the United States agree that CHG's hourly workers "consistently refuse[d] to perform any overtime work unless that overtime was offered, or 'called out,' in 8 hour blocks." As stated in the agreed statement of facts, "[t]he inability of CHG's upper management to secure the necessary overtime volunteers for various jobs threatened CHG's ability to complete various projects linked to the Tank Farms Contract performance incentives. This in turn threatened CHG's ability to earn certain fees, and therefore profits under the Tank Farms Contract." The agreed statement of facts also acknowledge that the inability to obtain performance-based incentives would have directly impacted the personal corporate bonuses of certain members of CHG's upper management. Consequently, "certain members of CHG's upper management, certain direct supervisors of the hourly workers, and certain other supervisory personnel, accepted the practice of hourly workers only working until the particular overtime job was completed, leaving Hanford, and falsely claiming a full 8 hours even when the job took less than 8 hours," according to the agreed statement of facts.
The widespread time card fraud at CHG was not limited to overtime abuse and had occurred for many years, in some instances even pre-dating the Tank Farms Contact, as stated in the agreed statement of facts. Furthermore, the agreed facts acknowledge that, "[c]ertain members of CHG's upper management, certain direct supervisors of hourly employees, and other certain supervisory personnel, did not discipline, formally or informally, CHG hourly workers for routinely engaging in known time card fraud. In fact, certain of CHG's direct supervisors of hourly workers engaged in patterns designed to avoid the detection of the routine time card fraud by law enforcement officials and internal auditors." In this manner, CHG "knowingly, willfully, and with intent to defraud, facilitated CHG's hourly workers routinely getting paid for hours they did not work and combined, conspired, and agreed with CHG hourly workers to accomplish the same, all at the sole expense of the citizens of the United States."
United States Attorney Michael C. Ormsby stated: "This sort of systemic fraud is an appalling abuse of the trust we place in our contractors at Hanford and it simply will not be tolerated." United States Attorney Ormsby went on to say: "I hasten to add that CH2M Hill has stepped up, admitted the criminal conduct of its subsidiary, and has agreed to pay back a good faith estimate of what was taken, including criminal proceeds from the conspiracy. CH2M Hill has also agreed to take substantial remedial steps going forward including having its remaining subsidiary at the Hanford Site, CH2M Hill Plateau Remediation Company, consent to a corporate monitor for 3 years, and to commit an additional $500,000 towards making sure that similar fraudulent conduct does not happen again." United States Attorney Ormsby also noted that: "Under this global resolution, CH2M Hill will continue its commendable cooperation demonstrated in this matter."
Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice, said: "Contractors owe a duty to the taxpayers to accurately bill the United States for work performed. This settlement demonstrates that the Department of Justice, working together with its law enforcement partners, will hold contractors accountable for false billing and restore wrongfully taken funds to the Treasury."
"I am pleased with today's announcement. I would like to express my thanks to the entire investigative team – Inspector General Special Agents, the United States Attorney's Office, the Department of Justice Civil Frauds Division and the FBI -- for their efforts on this investigation," said Gregory H. Friedman, the Department of Energy Inspector General. "It is essential that Department of Energy contractors be held accountable for effective stewardship of U.S. taxpayer dollars."
The civil fraud allegations under the False Claims Act resolved by today's settlement were initially alleged in a whistleblower lawsuit filed by Carl Schroeder, a former employee of CH2M Hill and one of those who pleaded guilty to the scheme. Under the False Claims Act, private citizens can sue on behalf of the United States and share in the recovery. The Act, however, bars whistleblowers from recovering if they were convicted based on their role in the scheme. The False Claims Act suit was filed in the United States District Court for the Eastern District of Washington, and is captioned United States ex rel. Schroeder v. CH2M Hill, No. 09- CV-5038 (E.D. Wash.).
This matter was handled by Tyler Tornabene, an Assistant United States Attorney for the Eastern District of Washington, and Daniel Fruchter, a Trial Attorney with the Civil Fraud Section of the United States Department of Justice's Civil Division, with investigative assistance provided by the Department of Energy Office of Inspector General and the Federal Bureau of Investigation.
DEA, LAPD, and SRDTF Conduct Massive West Coast Oxycontin SweepRead the Press Release
LOS ANGELES/SPOKANE, WA (Feb 28)– Early this morning, the Drug Enforcement Administration and the Los Angeles Police Department, in conjunction with the Spokane Regional Drug Task Force (SRDTF), led a large-scale enforcement action targeting a criminal organization spanning from Los Angeles to Eastern Washington. Hundreds of law enforcement officials, including federal agents and state and local officers executed 16 federal search warrants in Spokane, Washington, 30 in Los Angeles, California, and one in Mountlake Terrace, Washington. As a result, 41 subjects were taken into custody on federal charges including 12 in Spokane, one in Mountlake Terrace, and 28 in Los Angeles (two of the 28 were already in California State custody). Additionally, three subjects were arrested by LAPD pursuant to California State arrest warrants in a separate but related investigation.
This enforcement action stems from a thirty-two count Federal Indictment that was handed down in the Eastern District of Washington in January, 2013. The Indictment charges numerous individuals with criminal violation(s) relating to the distribution, possession and attempted possession of oxycodone hydrochloride, in violation of the Federal Controlled Substances Act. Some of the individuals named in the Indictment face potential mandatory minimum sentences of twenty years in prison. In addition, the United States has filed a notice of criminal forfeiture seeking a money judgment in the amount of $20 million dollars, which amount is alleged to represent the amount of proceeds obtained as a result of the charged controlled substances offense(s).Michael C. Ormsby, United States Attorney for the Eastern District of Washington said: “The tireless dedication and extraordinary efforts of the law enforcement officers involved in all aspects of this wide-ranging investigation are commendable. Today’s enforcement action is an outstanding example of the robust and effective working partnership among Federal, state, and local law enforcement officers both here in the Eastern District of Washington and in Los Angeles.”
“Members of this ring regularly circulate between Los Angeles and Spokane to fuel their customer’s insatiable appetite and pharmaceutical addiction,” said Seattle DEA Special Agent in Charge Matthew G. Barnes. “For too long, their web of destruction has fed upon, and profited from the misery of many Washingtonians, only to leave a surplus of illegally obtained pain killers and ruined lives in their wake. I would like to commend the ongoing cooperative efforts of our federal, state and local partners to keep our communities safe.”
“Today’s operation is another fine example of the outstanding partnerships that have been forged between agencies who are committed to ridding our communities of violent organized criminals who prey on our City” said Chief Charlie Beck. “I am extremely proud of the Los Angeles Investigators who worked tirelessly on this case for the past year culminating in today’s arrests.”
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, Seattle and Los Angeles Field Divisions, the Spokane Regional Drug Task Force, and the Los Angeles Police Department.
The following agencies provided significant assistance for today’s enforcement action: Drug Enforcement Administration; Los Angeles Police Department; Spokane Regional Drug Task Force; Los Angeles County Sheriff’s Department; Spokane County Sheriff’s Office; Spokane Police Department; Washington State Patrol; Fontana Police Department; Glendale Police Department; Pasadena Police Department; Gardena Police Department; Rialto Police Department; Inglewood Police Department; Long Beach Police Department; United States Marshal’s Service; Federal Bureau of Investigation; Riverside County Sheriff’s Department; Bureau of Alcohol Tobacco and Firearms; Homeland Security Investigations; United States Border Patrol and Internal Revenue Service – Criminal Investigation.
An Indictment Contains Allegations That an Individual Has Committed a Crime. Every Individual Is Presumed Innocent until Proven Guilty Beyond a Reasonable Doubt.
Former Liberty Lake Pastor Sentenced to Five Years in Federal Prison for Distributing Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Lonnie W. Castillo, age 49, of Liberty Lake, Washington, was sentenced today after having previously pleaded guilty to distribution of child pornography. United States District Court Judge Fremming Nielsen sentenced Castillo to a five year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Castillo was ordered to forfeit the computer and digital storage media he used to distribute and possess the child pornography.
According to information disclosed during the court proceedings, Castillo had been a pastor for over 15 years at the Liberty Lake Community Church and had also been a former YMCA Spokane Valley swim coach. United States Secret Service agents executed a federal search warrant at Castillo's residence in Liberty Park, Washington. The Secret Service agents discovered Castillo was in possession of 37 images and six videos of child pornography. The investigation revealed that Castillo was sharing images of child pornography with other individuals via the Internet. The images Castillo was distributing to others contained file names"pdo", "preteen", "underage", 5yo", "6yo", and "7yo", which are consistent with child
pornography.Michael C. Ormsby stated, "The United States Attorney's Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting these types of crimes is particularly important because of the age of the innocent victims."
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 (PSC) Initiative has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- 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 investigation was conducted United States Secret Service and the Spokane County Police Department. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-12-0003-WFN
Moses Lake Drug Trafficker Sentenced to over 16 Years in Federal PrisonRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington announced that Martin Murillo-Barriga, age 36, of Moses Lake, Washington, was sentenced today after being convicted of conspiracy to distribute methamphetamine and other offenses relating to the operation of a methamphetamine trafficking organization between May of 2010 and July of 2011. Senior United States District Judge Edward Shea sentenced Murillo-Barriga to a 16 ½ year term of imprisonment, to be followed by an 8 year term of court supervision following release from Federal prison. As a condition of that supervision, Murillo-Barriga is prohibited from returning to the United States – he is not a United States citizen and faces deportation to Mexico as a result the convictions in this case.
In April, 2012, Murillo-Barriga was charged by way of a five-count Indictment with the following offenses: Conspiracy to Distribute 50 Grams or More of Actual Methamphetamine and 500 Grams or More of a Mixture or Substance Containing a Detectable Amount of Methamphetamine; Possession of 5 Grams or More of Actual Methamphetamine with Intent to Distribute within 1,000 Feet of a School; Maintaining a Drug Involved Premises within 1,000 Feet of a School; Possession of Methamphetamine; and Attempted Possession with Intent to Distribute 50 grams or More of Actual Methamphetamine. The charges against Murillo-Barriga were tried before a jury and, on October 10, 2012, he was convicted on all counts.
At today's sentencing hearing, the judge found that Murillo-Barriga was a leader of a methamphetamine trafficking organization, that he committed the offenses as part of a pattern of criminal conduct engaged in as a livelihood, that he maintained a premises for the purpose of manufacturing or distributing a controlled substance, and that firearms were possessed during the offense. The judge also found that the Moses Lake property from which Murillo-Barriga directed the drug trafficking organization bordered a primary grade school. Murillo-Barriga faced a mandatory minimum term of 10 years of imprisonment but, based on the above aggravating factors, the judge imposed a 16 ½ year sentence.
Michael C. Ormsby stated that, "The sentence imposed today reflects the serious consequences associated with trafficking in methamphetamine, particularly when it is conducted so close to a grade school. The law enforcement agencies involved in this investigation should be commended for their efforts in investigating this, and other drug trafficking organizations. This case is yet one more example of the strong partnership among law enforcement professional here in the Eastern District of Washington."
The investigation of this case, which was related to a larger investigation conducted by the Drug Enforcement Administration that led to the service of several search warrants and the arrest of numerous individuals, was conducted by the Spokane Regional Drug Task Force in cooperation with the Moses Lake Police Department, the Grant County Sheriffs Office, the Grant County Interagency Narcotics Enforcement Team, the Douglas County Sheriff's Office, the Oregon State Police, the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, and Firearms; Immigrations and Customs Enforcement; and the United States Marshall's Service.
This case was prosecuted by Timothy J. Ohms and Caitlin A. Baunsgard, Assistant United States Attorneys for the Eastern District of Washington.
11-CR-108-EFS
Omak Man Sentenced to Prison for Domestic Violence Related Crimes on the Colville Indian ReservationRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Daniel Quilochin Fry, age 21, of Omak, Washington, was sentenced today for two domestic violence-related crimes occurring on the Colville Indian Reservation. United States District Judge Lonny R. Suko sentenced Fry to 108 months in Federal prison, to be followed by 36 months of court supervision upon release from custody.
Earlier, Fry pleaded guilty to Assault With a Dangerous Weapon in Indian Country, in violation of 18 U.S.C. §§ 1153(a) and 113(a)(3), and Maiming in Indian Country, in violation of 18 U.S.C. §§ 1153(a) and 114. According to information disclosed during the court proceedings, the investigation of this case began after the victim, who had been severely beaten on April 21 and 22, 2010 at a house located on the Colville Indian Reservation, placed a call to 9-1-1. The investigation revealed that Fry had periodically locked the victim in a closet and, over a five-month period, beaten her severely with a baseball bat, propane tank, and other objects. Fry had also threatened to kill the victim with a firearm. The maiming charge stems from an incident where Fry forced the victim to lie on the floor and he then poured scalding water on her leg and back.
Michael C. Ormsby said, "Domestic violence is a serious problem nationwide, but is even more pronounced on Indian Reservations where women suffer a disproportionate amount of violence. The physical and emotional scars of domestic violence affect victims for years. This case was particularly egregious because the abuse started when the victim was 17 years old and because the protracted assaultive behavior went on for 5 months. The United States Attorneys Office in the Eastern District of Washington is committed to reducing domestic violence through aggressive prosecution."
This investigation was conducted by the Colville Tribal Police Department, in partnership with the Federal Bureau of Investigation. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
11-CR-079-LRS
Armed Career Criminal Sentenced to 188 Months ImprisonmentRead the Press Release
Yakima – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that David Allen Vickers, age 40, of Yakima, Washington , was sentenced for being a felon in possession of a firearm. Senior District Court Judge Fred Van Sickle determined that, based on Vickers' lengthy criminal history which includes convictions for violent crimes and drug trafficking, he is an armed career criminal. Accordingly, Judge Van Sickle sentenced Vickers to a 188 month term of imprisonment, to be followed by a 5 year term of court supervision upon release from Federal prison. The Defendant has been in custody since his arrest on January 19, 2012.
On October 4, 2012, Vickers pleaded guilty to the charge of being a previously convicted felon in possession of a firearm. According to information disclosed during the proceedings in this case, on January 19, 2012, the Vickers armed himself with a shotgun and entered a convenience store located in Yakima, Washington. Vickers attempted to rob the business owner. The business owner grabbed the shotgun during the attempted robbery. The shotgun discharged during the struggle. Vickers then ran out of the store. The business owner chased Vickers and fought with him in the snow. During the struggle, the business owner was able to take possession of the shotgun. Vickers then attempted to obtain a ride from citizens driving in the area. Officers with the Yakima Police Department were called to the scene and quickly arrested him. Vickers claimed that he had been forced to commit the robbery to pay for a drug debt.
Michael C. Ormsby said, "The United States Attorney's Office, the Yakima Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, are committed to working in partnership to protect communities from convicted felons who possess firearms and endanger the lives of citizens within the Eastern District of Washington." Mr. Ormsby emphasized that overriding personal safety concerns dictate that private citizens should seek assistance from law enforcement officials rather than confronting and engaging armed criminals.
This matter was investigated by the Yakima Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
12-CR-02036-FVS-1
Spokane Man Sentenced to Five Years in Federal Prison and Paid $75,000 to the U.S. Marhsal Service for Transportation of Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of
Washington, announced that William Roberts, age 64, of Spokane, Washington, was sentenced
today after having previously pleaded guilty to transportation of child pornography. United
States District Court Judge Rosanna Peterson sentenced Roberts to a 5 year term of
imprisonment to be followed by a life term of court supervision after he is released from Federal
prison. In addition, Roberts paid $75,000 to the United States Marshal's Service in lieu of
forfeiting his residence.According to information disclosed during the court proceedings, in February of 2011,
an FBI Internet undercover investigation discovered that Roberts was sharing images of child
pornography with other individuals, via the Internet, using a peer to peer file sharing program.
On April 6, 2011, FBI Special Agents executed a federal search warrant at Robert's residence in
Spokane, Washington. The FBI agents discovered that Roberts had downloaded child
pornography beginning as early as September of 2003. Although Roberts had installed file
wiping software on his computer, the FBI was able to forensically find in excess of 600 images
of child pornography on the computer. The images included depictions of minors under the age
of twelve and of sadistic and masochist activity. Roberts had transported the images via the
Internet and utilized his residence to facilitate the crime.Michael C. Ormsby stated, "Prosecuting child pornography crimes is particularly
important for the United States Attorney's Office in the Eastern District of Washington. The
public should understand that my Office and FBI are committed to investigating and
prosecuting aggressively child pornography crimes in this District. Indeed, in addition to jail
time, the appropriate punishment in child pornography crimes may include, as it did in this case,
a significant monetary payment in lieu of forfeiture of a defendant's residence. "This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the 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 (PSC) Initiative has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- 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 investigation was conducted by the FBI. The case was prosecuted by Stephanie J.
Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of
Washington.CR-11-00174-RMP
Former Walla Walla County Undersheriff Sentenced to Prison for Embezzling over $67,000 in Public FundsRead the Press Release
Richland - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Carole J. Lepiane, age 58, of College Place, Washington, was sentenced for embezzling public funds while working as the Walla Walla County Undersheriff. Senior United States District Judge Fred Van Sickle sentenced Lepiane to a 6 month term of imprisonment. Upon release from custody, Lepiane will be under court supervision for 1 year, with a condition of supervision that she must reside at a residential re-entry center for 4 months. In addition, Judge Van Sickle ordered Lepiane to pay $81,271 in restitution.
Lepiane pleaded guilty on October 11, 2012 to one count of Theft From a Federally Funded Local Agency, in violation of 18 U.S.C. § 666(a)(1)(A). According to information disclosed during the court proceedings, Lepiane worked for Walla Walla County Sheriff's Office (WWCSO) for over 35 years. From 1998 to July 2009, she served as Undersheriff. Her responsibilities included overseeing deposits of funds into the WWCSO bank accounts, such as cash funds received as bail for jail inmates. Also, the WWCSO received checks, which represented the proceeds from jail inmates' use of the phone system. These funds were required to be deposited into an Inmate Welfare Fund, and used to improve conditions for inmates at the
Jail. From 2004 to June of 2009, Lepiane operated a check for cash swap. She stole some of the cash bail money that was taken in by the Jail. She then inserted a check from the phone proceeds for the amount of cash bail stolen to maintain the total amount of the original deposit and hide the theft. As a result, the checks for the phone proceeds were not contributed to the Inmate Welfare Fund. Using this scheme, Lepiane stole from the fund on at least 50 separate occasions, taking $67, 145 from Walla Walla County. She used the stolen funds to make numerous cash deposits into her personal bank account and also pay for personal online shopping purchases.As part of the agreed resolution of this case, at sentencing Lepiane paid restitution in the amount of $81,271 to Walla Walla County. The restitution represents the $67,145 in stolen funds and approximately $14,000 to reimburse Walla Walla County for the cost of conducting an audit.
Michael C. Ormsby United States, the Attorney for the Eastern District of Washington, said, "It is a privilege to serve in law enforcement. Individuals who abuse that role and betray the public's trust for their personal benefit will be aggressively investigated and prosecuted," Mr. Ormsby also cautioned the public not to let Lepiane's theft undermine their confidence in other dedicated public servants and the stellar work performed by the Walla Walla County Sheriff's Office. United States Attorney Ormsby also recognized the cooperative attitude of the Walla Walla County Sheriff's Office and the hard work conducted by the FBI, the Washington State Patrol, and the Washington State Auditor's Office.
"The vast majority of law enforcement officials are honorable public servants who perform their duties with the utmost integrity, and, sometimes, at great personal cost," said Special Agent-in-Charge Laura Laughlin of the FBI Seattle Division. "However, in those rare instances when these officials violate their duty to uphold the law and instead commit crimes themselves, the FBI will conduct a thorough, impartial investigation to preserve and restore public trust and confidence."
This investigation was conducted by the FBI and the Washington State Patrol, with assistance from the Washington State Auditor's Office. The case was prosecuted by Mary K. Dimke, an Assistant United States Attorney for the Eastern District of Washington.
CR-12-6054-FVS