Eastern District of Washington
Press releases recorded for this federal judicial district.
United States and State of Washington File False Claims Act Complaint Against MultiCare for Knowingly Endangering Patients and Fraudulently Billing for Spinal Surgery ProceduresRead the Press Release
Spokane, WA – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the United States and State of Washington filed a Complaint in federal district court against MultiCare Health System, a Tacoma-based hospital and healthcare system that owns and operates MultiCare Deaconess Hospital (Deaconess) and MultiCare Rockwood Clinic in Spokane, alleging that MultiCare knowingly endangered patient safety and falsely and fraudulently billed Medicare, Medicaid, and other federal health care programs for spinal surgery procedures performed at Deaconess between 2019 and 2021 by Jason Dreyer, a former neurosurgeon.
Between 2013 and 2019, Dr. Dreyer practiced at Providence St. Mary’s Medical Center in Walla Walla, Washington, a hospital owned and operated by Providence Health & Services (Providence). In 2019, amidst allegations that he was performing medically-unnecessary surgeries, harming patients, and falsifying diagnoses, Providence permitted Dr. Dreyer to resign.
The Complaint against MultiCare announced today alleges that, following Dr. Dreyer’s resignation from Providence, MultiCare hired him to perform neurosurgery services at Deaconess. The Complaint alleges that during MultiCare’s hiring process, it became aware of concerns and “red flags” about Dr. Dreyer and his surgical judgment from his time at Providence, but, recognizing that he was a “workhorse”, made the decision to hire him and allow him to begin seeing patients and performing surgery at Deaconess Hospital in July 2019. The Complaint further alleges that in October 2019, MultiCare recognized that Dr. Dreyer was performing a high volume of surgeries and generating significant revenue for MultiCare, and so placed Dr. Dreyer on an incentive compensation structure, meaning that the greater volume and complexity of surgeries performed by Dr. Dreyer, the more money he would make.
The Complaint also alleges that in February 2020, the United States Attorney’s Office specifically informed MultiCare that it was investigating concerns that Dr. Dreyer was harming patients, falsifying diagnoses, and performing medically-unnecessary surgeries. According to the Complaint, despite receiving this information, as well as multiple internal complaints and concerns that Dr. Dreyer was performing medically unnecessary surgeries at MultiCare and endangering patients, MultiCare made the decision to allow Dr. Dreyer to continue seeing patients and performing surgery until the Washington Department of Health summarily suspended Dr. Dreyer’s ability to perform surgery in March 2021.
The Complaint alleges that MultiCare not only endangered patients through its conduct, but falsely and fraudulently claimed and received reimbursement for millions of dollars from federal health care programs between July 2019 and March 2021. The federal health care programs are: (1) Medicare, which provides health coverage to elderly and disabled Americans; (2) Washington State Medicaid, which is jointly administered and funded by the United States and the State of Washington, and which provides health coverage to low-income Washingtonians; (3) the U.S. Department of Veterans Affairs (VA) Community Care program, which provides health insurance coverage for veterans for certain specialized services that cannot be performed at VA facilities; (4) the TRICARE program, which provides health insurance coverage for active duty and retired military servicemembers, reserves, and their families; and (5) the Federal Employee Health Benefits program, which provides health insurance coverage to federal civilian employees.
“As alleged in the Complaint, MultiCare was aware of serious concerns that Dr. Dreyer was putting patients in danger,” said United States Attorney Waldref. “The Complaint alleges that MultiCare nonetheless made the decision to allow him to treat and operate on patients, even after it became aware of the federal investigation. This is an egregious breach of the public trust.”
In April 2022, Providence agreed to pay approximately $22.7 Million and implement a standard of care corporate integrity agreement to resolve its liability concerning surgical procedures performed by Dr. Dreyer and another neurosurgeon that Providence billed to federal health care programs. In April 2023, Dr. Dreyer agreed to pay approximately $1.2 Million to resolve his individual liability under the False Claims Act.
“Health care providers that perform medically unnecessary procedures undermine the public’s trust in the health care system and exploit taxpayer-funded programs,” stated Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, HHS-OIG is committed to protecting patients and the integrity of federal health care programs.”
“VA’s Community Care programs provide veterans and their families the ability to obtain critical healthcare services from providers within their own communities,” said Special Agent in Charge Jason Root of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “This enforcement action underscores the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and operations and preserving taxpayer funds."
“The filed complaint is a constructive step forward in holding MultiCare accountable for putting profit ahead of patient care and safety by willfully ignoring the dubious practices of one of its doctors,” said Bryan D. Denny, Special Agent-in-Charge for the Department of Defense (DoD), Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS remains committed to working with its partners to identify and eliminate fraudulent schemes that endanger patient safety and corrupt the integrity of the DoD’s health care program.”
“I’m grateful for the close collaboration we have had with our partners at the Washington Attorney General’s Office, the Department of Health and Human Services Office of Inspector General, the Office of Personnel Management Office of Inspector General, the Defense Criminal Investigative Service, and the U.S. Department of Veterans Affairs Office of Inspector General,” continued U.S. Attorney Waldref. “It was that close collaboration and teamwork throughout these investigations that made the Providence and Dr. Dreyer results possible. We will continue working with our law enforcement partners to protect patient safety and to hold accountable those who put profits ahead of patient safety.”
According to court documents, while the United States’ and State of Washington’s investigation of Providence began in February 2020, in April 2022, a former patient of Dr. Dreyer’s at MultiCare filed a qui tam complaint under seal in the U.S. District Court for the Eastern District of Washington. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. Over the past decade, recoveries in the Eastern District of Washington in False Claims Act cases have exceeded $400 million.
The filed complaint can found below
us_and_wa_complaint_in_intervention.pdfThe joint investigation was conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office; the U.S. Department of Veterans Affairs, Office of Inspector General, Spokane Resident Office; the Office of Personnel Management, Office of Inspector General, Seattle Field Office; the Defense Criminal Investigative Service, Seattle Field Office; and the State of Washington Attorney General’s Medicaid Fraud Control Division. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington are handling this matter on behalf of the United States.
Case No: 2:22-cv-00068-SAB (E.D. Wash.)
United States Files False Claims Act Complaint Against Department of Energy Prime Contractor Alleging Millions of Dollars in Fraudulent OverchargingRead the Press Release
Richland, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the United States filed a Complaint in federal district court against Hanford Mission Integration Solutions, LLC (HMIS), alleging fraudulent labor overcharging at the Department of Energy (DOE) Hanford Nuclear Site.
DOE’s Hanford Nuclear Site, a 580-square-mile in southeast Washington, was established in 1943 as part of the Manhattan Project, and was used to produce plutonium for nuclear weapons, including those used in the Trinity Test and the “Fat Man” bomb detonated over Nagasaki during the final days of World War II. Since the late 1980s, DOE has been engaged in an extensive environmental cleanup and decommissioning operation, involving remediation and treatment of large quantities of radioactive and hazardous waste.
HMIS is owned by three large government contracting companies: Leidos Integrated Technology, headquartered in Reston, Virginia; Centerra Group, LLC, headquartered in Palm Beach Gardens, Florida; and Parsons Government Services, headquartered in Centreville, Virginia. Since January 2021, HMIS has held the multi-billion-dollar Hanford Mission Essential Services Contract. Part of the HMIS contract requires it to provide fire protection and fire systems management services for the Hanford Site, in order to protect the public, the environment, and Hanford Site workers from fire hazards as well as from potential radiological or other hazards that could arise from natural or human-created fire activity.
The HMIS contract is a cost-type contract, meaning that HMIS is reimbursed for its reasonable, allowable, and allocable costs of performing work on the contract, and can earn profit, or fee, based on achieving various performance incentives. Costs include labor costs, such as the cost associated with labor hours performed by fire protection and fire systems management personnel employed by HMIS at the Hanford Site, who perform critical tasks such as testing and maintaining sprinklers, pipes, and electronic fire systems.
The Complaint alleges that, between January 2021 and October 2023, HMIS engaged in a systemic and fraudulent overcharging of DOE for fire protection work at Hanford. Specifically, the Complaint alleges that HMIS fire protection personnel regularly experienced extensive and unreasonable idle time on a daily or near-daily basis, due to HMIS’ failure to schedule and carry out work for them to perform. The Complaint further alleges that, during this extensive idle time, HMIS fire protection personnel took naps, watched movies and television, and engaged in other personal activity not related to performing work. The Complaint alleges that HMIS supervisors and management were fully aware of this extensive and unreasonable idle time for its personnel, but, rather than take steps to address it, they encouraged and directed HMIS fire protection personnel to falsely and fraudulently charge this idle time to work codes associated with HMIS’ contract, passing on the costs associated with this extensive and unreasonable idle time to DOE by fraudulently and falsely representing that work had been performed.
For example, the Complaint alleges that when a fire systems manager was asked via email how to charge a day in which a worker had no work to perform for the entire 10-hour day, the manager responded, via email: “[i]f they DID NOT have a job assignment for the day – that means you are on standby and would use the 600318.” According to the Complaint, 600318 was the cost code associated with training. The Complaint alleges, as an example, that a fire protection worker who did not have any work to perform for an entire 10-hour day, and spent a portion of that day watching the film “There’s Something About Mary” at his desk, then charged the entire 10-hour day to the 600318 training code, which HMIS management approved and submitted to DOE for reimbursement.
The Complaint also alleges that notwithstanding the extensive and unreasonable idle time during the regular, 10-hour Monday through Thursday Hanford workday, HMIS nonetheless scheduled substantial overtime for fire protection workers on Friday and weekends, and that these unnecessary overtime shifts themselves involved extensive and unreasonable idle time, causing DOE to be fraudulently billed for such shifts at premium pay rates.
The Complaint alleges that this systemic and pervasive practice of falsely and fraudulently billing DOE for extensive and unreasonable downtime was not only known to HMIS management, but encouraged by them. For example, the Complaint alleges that in July 2022, Michael Winkel, HMIS’s Director of Fire Systems Maintenance, instructed a pipefitter via email to use CACN 600320, a cost code associated with performing “preventative maintenance” on the fire system, for “downtime the remainder of the day.”
According to the Complaint, HMIS’s systemic and pervasive overcharging and fraudulent billing resulted in millions of dollars in overcharges to DOE, and jeopardized the critical fire protection systems at Hanford because this extensive and unreasonable idle time occurred when there was, in fact, important fire protection work that could and should have been performed to safeguard the public, workers, and the environment from fire dangers, including during dangerous wildfire seasons.
“Fire safety at Hanford is critical to the health of the public, workers, and the environment,” said United States Attorney Waldref. “It is inexcusable to think that a well-paid contractor entrusted with this critical task to protect our community would fraudulently bill DOE for idle time spent watching movies and literally sleeping on the job, all while putting the public at risk when critical work went uncompleted. We will continue to work hand-in-glove with our law enforcement partners to end fraud and corruption at Hanford and support environmental remediation.”
This case was originally brought by Bradley Keever, a sprinkler fitter in the fire protection group at HMIS. Under the False Claims Act, whistleblowers may file an action under seal in federal court. The United States investigates the allegations and determines whether to intervene in the action. Under the False Claims Act, the United States may recover up to three times the damages caused by the Defendant, plus additional penalties for each false claim or statement. If the United States obtains a recovery, the whistleblower is generally able to share in a portion of the recovery. Over the past decade, False Claims Act recoveries in the Eastern District of Washington have exceeded $400 million.
The complaint can be found here.
Assistant United States Attorneys Frieda Zimmerman, Molly Smith, and Dan Fruchter are prosecuting this case on behalf of the United States. The investigation was conducted by the Department of Energy, Office of Inspector General.
The claims articulated in the Complaint are allegations only; at this time there has been no determination of liability.
Case No. 4:21-cv-05156-SAB
8 People Arrested in Moses Lake on Federal Drug Trafficking Charges and Violent OffensesRead the Press Release
Moses Lake, Washington, - Today, United State Attorney Vanessa Waldref, announced the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service (USMS), Moses Lake Police Department (MLPD), Border Patrol, and the Washington Department of Corrections arrested eight individuals charged with various federal drug trafficking and violent offenses.
Among those arrested:
• Solomon Valle-Chavarria, Pedro Valley-Chavarria, Jose Mauricio Rodriguez-Sanchez and Paulino Portillo-Orozco were arrested on a 7-count indictment stemming from their methamphetamine distribution activities and unlawful firearm possession, to include a firearm believed to be utilized in a murder that occurred in November 2023 in Montlake Park.
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• Troy S. McLanahan’s residence was searched on January 23, 2024, pursuant to a federal search warrant related to his distribution of drugs out of said residence. During the execution of the search warrant, ATF and MLPD recovered approximately 35 guns, which included assault rifles, short-barreled shotguns, short-barreled rifles, as well as high-capacity shotgun banana clips, 3 silencers and more than 1 pound of methamphetamine (pictures below). McLanahan was subsequently charged by criminal complaint.
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• Rebecca A. Jimenez was arrested for her role in an incident on January 21, 2022, where a vehicle was set on fire in the Moses Lake Motel 6 parking lot over a drug debt. Her two co-defendants, Tyler Wallo and David Maybee are currently in state prison serving sentences for unrelated convictions and will have their appearance in federal court on these charges next month.
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• Cameron Ross was arrested for distribution, attempted distribution, and conspiracy to distribute large quantity of fentanyl pills into the Moses Lake community.
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• Nicholas E. Essex was arrested for distribution of methamphetamine into the Moses Lake community. When he was arrested, he was on pre-trial release for state charges of Possession of Depictions of Minors Engaged in Sexually Explicit Conduct.
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“During the arrests in these cases, illegal drugs and a large number of firearms were taken off our streets, demonstrating the significant impact that is felt when federal, state and local law enforcement work together,” said U.S. Attorney Waldref. “We will continue our collaborative, focused efforts to combat violent crime issues and make our communities safer and stronger.”
These cases are being prosecuted by Assistant United States Attorney Caitlin Baunsgard.
An indictment and a complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Found with Drugs, Guns, and Explosives Sentenced to 12 Years in Prison for Drug TraffickingRead the Press Release
Spokane, Wash. - On January 23, 2024, U.S. Senior District Judge Rosanna Malouf Peterson sentenced James Daniel Bacon, 35, of Colbert, Washington, to 140 months in federal prison for Possession with Intent to Distribute 50 Grams of Actual Methamphetamine, to be followed by 5 years on supervised release. Bacon will serve an additional 12 months in federal prison for violating his supervised release conditions from an underlying 2011 case, for a total of 152 months of imprisonment.
According to court documents, Drug Enforcement Administration (DEA) agents developed information that Bacon was in possession of methamphetamine and heroin. Following his arrest, federal agents searched a storage unit that Bacon was using to store drugs and weapons. Agents found 2 pounds of methamphetamine, a body armor plate carrier and plates, a velcro “police” patch for the plate carrier, several weapons including an AR-15 style rifle with a large capacity magazine, a plastic tub with more than 1,000 rounds of ammunition, 5 pounds of C-4 plastic explosives, and handcuffs.
“Mr. Bacon was a repeat offender who continued to distribute poison in our neighborhoods. He also had access to weapons and military-grade explosives that he could use to harm others,” stated U.S. Attorney Vanessa R. Waldref. “I am thankful for our law enforcement partners whose efforts removed dangerous narcotics and weapons from our streets to build a safer and stronger community.”
“DEA’s primary mission is to protect Americans from those who would poison and harm our citizens,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “Mr. Bacon clearly is a drug trafficker capable of great harm, not only through his drug distribution enterprise, but also his possession of weapons, body armor, police paraphernalia, and explosives. This is a dangerous person that the combined efforts of law enforcement partnered to take into custody. The sentence shows our unified resolve to mitigate these threats.”
“Mr. Bacon’s disregard for the safety of the community in which he distributed drugs resulted in his sentencing to prison, where he belongs.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “The danger he posed was greater than the illegal drugs he distributed, but also in his procurement of weapons and explosives which further aggravate the severity of his crimes. This case demonstrates the positive impact the FBI and our partners make when we work together to safeguard our communities.”
“We are thankful that DEA was able to stop Mr. Bacon when they did,” said ATF Seattle Special Agent in Charge Jonathan Blais. “Not only was he distributing drugs while possessing firearms, but it is also clear that he may have had further intentions to harm the community through the use of police paraphernalia and a significant amount of explosives. This sentence is clearly reflective of the harm he has, and could have, caused.”
This case was investigated by the DEA Spokane Task Force, DEA Coeur d’Alene Task Force, assisted by the ATF, FBI and the Spokane Police.
This case was prosecuted by Assistant United States Attorney Patrick J. Cashman.
2:20-cr-0084-RMP
United States Attorney’s Office Recognizes Vanessa R. Waldref as a 2024 YWCA Woman of AchievementRead the Press Release
Spokane, Washington – YWCA Spokane announced that eight outstanding local women will be honored in the community throughout February and March, leading up to YWCA Spokane’s 42nd Annual Women of Achievement Awards Ceremony and Luncheon, held Friday, March 15th at the Spokane Convention Center from 11:00AM-1:00PM, where they will be officially recognized. U.S. Attorney Vanessa R. Waldref is being awarded for her work in Government and Public Service.
To be awarded a YWCA Women of Achievement Award, a woman must embody YWCA Spokane’s mission of eliminating racism, empowering women, and promoting peace, justice, freedom and dignity for all. The selected honorees give generously of themselves to make Spokane a better place for all to live.
The winners of the 2024 Women of Achievement Awards are:
- Melody Chang Heaton – Arts and Culture Award
- Colene Rubertt – Business and Industry Award
- Kristine Hoover – Carl Maxey Racial and Social Justice Award
- Samantha Clark – Community Enhancement Award
- Stephaine Courtney – Education Award
- Vanessa Waldref – Government and Public Service Award
- Denise Smart – Science, Technology and Environment Award
- Sindhu Surapaneni – Young Woman of Achievement Award
In announcing the 2024 awards, YWCA Spokane highlighted that U.S. Attorney Waldref
“exemplifies the call to protect, improve, and maintain the public’s well-being, health, and safety through her service to our community. As the first woman to serve as U.S. Attorney for Eastern Washington, Vanessa works tirelessly to protect the district from pressing issues of violent crime, child exploitation, fraud, corruption, drug trafficking, and environmental degradation. She has dedicated the majority of her legal career to public service, working as an attorney for the Department of Justice in various roles. She is a public servant, a leader, and a trailblazer.”
For 42 years, YWCA Spokane has celebrated successful women in the community for their achievements, along with their commitment to giving back to the Spokane community. Established with the goal of increasing community awareness and appreciation for the diverse contributions of women leaders in Spokane, YWCA Spokane has honored over 260 women in the region.
Additional information regarding the 2024 Women of Achievement and the event honoring these incredible women can be found here: https://ywcaspokane.org/2024-woa-honorees/
U.S. Attorney’s Office Observes National Human Trafficking Prevention MonthRead the Press Release
Spokane, Washington – January is National Human Trafficking Prevention Month. To commemorate the month, Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, along with several members of the office, joined with Lutheran Community Services Northwest on Wednesday, January 10, to honor survivors of Human Trafficking at a community reception at the Spokane’s Central Public Library. Lutheran Community Services is one of the United States Attorney’s Office’s principal partners in fighting human trafficking and advocating for survivors. The program included a training session for victim advocates, and was attended by law enforcement personnel, anti-trafficking advocates, and resource providers from around the region.
From L to R: Jolene Jones, First Assistant United States Attorney Rich Barker, U.S. Attorney Vanessa Waldref, Assistant United States Attorney Ann Wick, and Michelle SpicerU.S. Attorney Waldref reaffirmed her commitment to the importance of federal prosecutors and community partners working together, “My office routinely partners with trauma-informed service providers to protect victims and survivors by connecting them with the resources and support they deserve. We also seek decades-long sentences for those who are convicted of keeping others enslaved through physical and sexual violence.”
Also this month, Assistant United States Attorney, Ann Wick, who serves as the Human Trafficking coordinator for the Eastern District, will be co-presenting a training for all deputy prosecuting attorneys in Spokane County. This training will focus on identifying the signs of trafficking in drug, property crime or domestic violence cases. The training will help put the focus on the victim’s needs, while also pursuing criminal charges.
Earlier this month, U.S. Attorney Waldref recorded a public service announcement, where she encouraged the public to learn the indicators of Human Trafficking and shared ways in join in the fight to prevent it.
If you are a victim of human trafficking or suspect you know one, please call the FBI, your local law enforcement, or the National Human Trafficking Hotline at 1- 888-373-7888.
Drug Trafficker Sentenced to More than 6 Years in PrisonRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Jaime Alberto Garza, 52, of Othello, Washington, was sentenced after pleading guilty to Possession with Intent to Distribute 40 Grams or More of a Mixture or Substance Containing a Detectable Amount of Fentanyl. United States District Judge Thomas O. Rice imposed a sentence of 78 months in prison to be followed by 5 years of supervised release.
According to court documents and information provided at sentencing, in October of 2022, the Adams County Sheriff’s Office received information that Garza was distributing large amounts of fentanyl and methamphetamine in the community of Othello. A short time later, a search warrant was executed at Garza’s trailer. Law enforcement sized approximately 5,000 fentanyl pills, several ounces of methamphetamine, digital scales, 2 firearms, and a volume of ammunition.
Law enforcement arrested Garza during a high-risk vehicle stop and executed a search warrant on his jeep. Investigators located a loaded Colt .45 firearm that was determined to be stolen, .45 caliber ammunition, 50 fentanyl-laced pills, two plastic bags containing methamphetamine, and a bag of marijuana. Garza has a significant criminal history which included prior acts violence and drug trafficking offenses.
“Mr. Garza was trafficking a large amount of deadly fentanyl and other illegal narcotics in this small community. By partnering with state law enforcement, we were able to apprehend a dangerous and habitual offender, successfully pursue federal charges, and help make that community safer and stronger today,” stated U.S. Attorney Waldref. “My office is committed to working with federal, state and local law enforcement to put a stop to anyone who pumps this poison into Eastern Washington.”
“The Drug Enforcement Administration is committed to confronting fentanyl traffickers wherever they may try to sell their misery and death,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “Mr. Garza chose to prey on his small community and this sentence holds him accountable for these actions. We appreciate our partnership with the Adams County Sheriff’s Office and the U.S. Attorney as we work together to make our community safer.”
This case was investigated by The Drug Enforcement Administration and the Adams County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter.
Leader of Large Drug Trafficking Organization Sentenced to 25 Years in Prison for Conspiracy to Distribute Large Quantities of Methamphetamine and Fentanyl in Wenatchee and Moses Lake areas of Eastern WashingtonRead the Press Release
Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Edward James Salvador, age 41, of Wenatchee, Washington was sentenced after pleading guilty to Conspiracy to Distribute 500 Grams or More of Methamphetamine and 400 Grams or More of Fentanyl. United States District Judge Mary K. Dimke imposed a sentence of 300 months imprisonment to be followed by 5 years of supervised release.
According to court documents, Salvador, AKA Droopy, was identified as the leader of a drug trafficking organization operating between the Wenatchee and Moses Lake areas. Investigators with Homeland Security Investigations (HSI), the Columbia River Drug Task Force (CRDTF), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Moses Lake Police Department (MLPD) used a range of investigative techniques, including tracking warrants, controlled buys and cooperating defendant interviews to gather information about how the organization operated. Investigators learned Salvador was a Sureno gang member out of California who had relocated to the area after being released from California Department of Corrections custody.
The investigation revealed Salvador’s operation was distributing a very large amount of fentanyl-laced pills obtained from Bakersfield, California, into the Chelan and Douglas county areas with the help of multiple other individuals, most of whom were also Sureno gang members. Salvador would have individuals “audition” for the organization to see if they were cut out to work for him and make money. Salvador would pick up thousands of fentanyl pills as well as 15 to 20 pounds of methamphetamine from his supplier in California several times a month.
In early 2022, investigators learned that, in addition to trafficking large amounts of fentanyl-laced pills, Salvador was working with other high-level drug traffickers to set up a location in Moses Lake to cook methamphetamine.
In late March of 2022, Salvador met with other high-level drug traffickers in Moses Lake. The group discussed losing money because they were not moving enough drugs. The source of supply, who lived in California, committed to increasing the amount of methamphetamine being produced.
The next day information was received that Salvador had acquired 15 pounds of ephedrine, which is used in the production of methamphetamine, and the chemicals would be used to produce methamphetamine at a compound in Moses Lake. The drug trafficker who owned the compound would get to keep half of the drugs produced in exchange for letting the group cook methamphetamine on his property, as well as providing other materials for the drug production.
During the sentencing hearing, Judge Dimke noted that while Salvador had a troubled childhood and had a period of sobriety prior to his involvement in leading this organization, he returned to criminality in “epic fashion”. Judge Dimke stated Salvador exercised organization and control over an entire area and did so in a fashion and with such amount of violence that scares an entire community.
“Mr. Salvador spread a staggering amount of illegal narcotics into our communities, including by distributing as much as 20,000 fentanyl pills to his network of drug traffickers every couple weeks. Mr. Salvador also attempted to set up an operation to manufacture large quantities of methamphetamine in the Moses Lake area,” stated U.S. Attorney Waldref. “My office is committed to shutting down dangerous drug trafficking organizations that pump poison into our communities and neighborhoods. I’m thankful for all our federal, state and local partners, as well as federal prosecutors, who worked together seamlessly to put a stop to Mr. Salvador’s operation.”
“The scourge of narcotics has touched every corner of this nation, and we are proud to have worked with our regional partners to put a halt to Mr. Salvador’s illicit ventures,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI will use every resource at its disposal to eliminate the economies of scale created by these operations and remove these deadly drugs from our communities.”
“Mr. Salvador did everything under his power to grow his drug trafficking network in central Washington,” said ATF Seattle Special Agent in Charge Jonathan Blais. “We will always work to investigate those who are causing grave harm to our communities. This sentence sends a strong message that these actions will not be tolerated by ATF and our law enforcement partners.”
This case was investigated by the Homeland Security Investigations, the Columbia River Drug Task Force consisting of, the Chelan County Sheriff, Douglas County Sheriff, East Wenatchee Police Department, and the Wenatchee Police Department. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Moses Lake Police Department, and the Grant County Interagency Narcotics Enforcement Team also assisted in the investigation. This case was prosecuted by Assistant United States Attorney Caitlin Baunsgard.
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Kennewick Man and Woman Sentenced to Decades in Federal Prison for Child AbuseRead the Press Release
Richland, Washington – On January 4, 2023, United States District Judge Mary K. Dimke sentenced Bret Michael Emineth, age 41, to 30 years in federal prison for engaging in years-long sexual abuse of a minor victim and recording images depicting the abuse. The Court also sentenced Emineth’s codefendant, Malesa Hale, age 37, to 28 years in federal prison for conspiring with Emineth to abuse the victim and record the abuse. Judge Dimke also ordered both Emineth and Hale to pay restitution to the victim, and imposed a lifetime of federal supervision on both defendants upon their release from custody. Emineth and Hale are each from the Tri-Cities. Emineth, who began abusing the minor victim when the minor was only 12 years old, will also plead guilty to related charges in Benton County Superior Court.
“I simply cannot convey how horrendousness this behavior is,” Judge Dimke said from the bench, recognizing that Emineth and Hale had inflicted “harm that will last for a lifetime.” Directly addressing the victim, Judge Dimke said: “You are brave. You are strong. You are courageous. You saved others from the hell that you were subjected to,” by reporting to law enforcement. Judge Dimke specifically told the victim that if the victim had not come forward, there was no doubt that Emineth and Hale would have expanded their abuse to other children.
According to court documents and proceedings, in June 2021 the victim reported to the Kennewick Police Department that Emineth had repeatedly sexually and physically abused the victim for approximately 4 years. The victim told detectives that the abuse had started with grooming and touching, and progressed to sexual intercourse. In 2019, Emineth’s then-girlfriend, Hale, became suspicious of Emineth’s relationship with the victim. When Hale confronted Emineth, he told her that he was abusing the victim. Instead of reporting the abuse to law enforcement, Hale expressed interest and joined Emineth in sexually abusing the victim.
KPD detectives found explicit text messages between Emineth and Hale discussing their sexual abuse of the victim and their plans for future sexual abuse of the victim and other children. The messages also included photos of the victim being abused, many of which Emineth had taken at Hale’s direction and sent to Hale. KPD detectives then worked closely with Homeland Security Investigations (“HSI”) and the Southeast Regional Internet Crimes Against Children Task Force (“ICAC”) to perform full forensic examinations of the defendant’s cell phones, which revealed the extent of Emineth and Hale’s abusive conduct.
“Emineth and Hale’s child abuse was egregious, and today’s significant sentences recognize the horrors that the victim endured. But no sentence can return a child’s innocence,” said United States Attorney Vanessa R. Waldref. “All children deserve to live free from those who seek to exploit them. The U.S. Attorney’s Office will continue to prioritize offenses against our community’s youngest and most vulnerable victims. Today’s hearing sent one clear message to the victim, which is shared by each of the detectives, agents, and prosecutors who worked with you: we believe you.”
"This sentence is a testament to the resilience and confidence in law enforcement exhibited by the victim in this case," stated Special Agent in Charge (SAC) Robert Hammer, responsible for overseeing HSI operations in the Pacific Northwest. "The era of victimization has ended for this child, and HSI, along with our law enforcement collaborators, will tirelessly strive to prevent such exploitation from befalling anyone else."
“We express our gratitude to the detectives, witnesses, and the courageous child survivor for putting a stop to these horrific acts," stated Kennewick Police Chief Chris Guerrero. "We also extend our appreciation to the US Attorney’s Office and Homeland Security Investigations for collaborating with us to ensure accountability for those who victimize our children."
"The collaborative partnership of the SER-ICAC Task Force, which unites our law enforcement counterparts from Richland PD, Kennewick PD, and Homeland Security Investigations (HSI), in conjunction with the concerted efforts of the Benton County Prosecutor’s Office and the United States Attorney’s Office, has proven instrumental again in securing a successful plea deal with a substantial sentence," stated Commander Damon Jansen, Investigations Division with the Richland Police Department." Outcomes like this, marked by their severity, contribute significantly to the administration of justice for the children within our community who have endured egregious abuse yet have emerged as survivors."
This case was investigated by the Kennewick Police Department (“KPD”), Homeland Security Investigations (“HSI”), and the Southeast Regional Internet Crimes Against Children Task Force (“ICAC”). The federal case was prosecuted by Assistant United States Attorneys Laurel Holland and David Herzog, and the state case was prosecuted by Deputy Prosecuting Attorney Anita Petra of the Benton County Prosecutor’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Spokane Drug Trafficker sentenced to 14 Years in PrisonRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that James P. LeBlanc, age 45, of Spokane, Washington was sentenced after pleading guilty to Possession with Intent to Distribute 50 Grams of Actual (Pure) Methamphetamine. United States District Judge Mary K. Dimke imposed a sentence of 168 months imprisonment to be followed by 5 years of supervised release.
According to court documents and information disclosed at sentencing, in March of 2022, LeBlanc was involved in a car accident in Spokane. When the other driver attempted to exchange insurance information with LeBlanc, he took off running. Officers with the Spokane Police Department (SPD) attempted to locate LeBlanc but were unsuccessful. Officers then obtained a search warrant for Leblanc’s GMC Yukon and found two bags of cocaine, an amount of methamphetamine about the size of a softball, blue pills, two digital scales, ammunition, marijuana, extended magazines, a flash bang, and a Glock .40 caliber pistol that had been reported stolen out of Montana.
In August, following up on an anonymous tip to the Drug Enforcement Administration (DEA), detectives found an additional $4,401 dollars located in a hidden compartment in the dashboard of the Yukon.
In September of 2022, SPD officers assigned to the Violent Crimes Task Force attempted to take LeBlanc into custody at a house in northeast Spokane, but LeBlanc ran off and again was able to avoid arrest. SPD executed a search warrant on a Lincoln MKX LeBlanc was driving and seized a Glock 9mm pistol, digital scales, drug paraphernalia, and plastic baggies used in drug distribution. A DEA agent collected 169 grams of methamphetamine, 38 grams of cocaine, and approximately 1,500 fentanyl pills.
In October of 2022, SPD officers responded to a domestic violence call involving LeBlanc. When officers arrived, LeBlanc tried running, but was arrested in the backyard of a home nearby.
SPD again executed a search warrant on LeBlanc’s vehicle, a Pontiac G6. Offices secured two pistols, which had been reported stolen. Officers also located a large sum of cash, a substantial amount of drugs and a shotgun with a pistol grip.
“Mr. Leblanc was involved in three separate instances where he was armed and in possession of a significant amount of deadly narcotics he planned to distribute on our streets. His actions contributed to the growing epidemic of drug use in our communities,” stated U.S. Attorney Waldref. “Mr. Leblanc attempted to run from the law, but our dedicated law enforcement team put an end to Mr. Leblanc’s spree of criminal activity.”
“This is another example of the success we can achieve through our cooperative approach in Eastern Washington,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “We are all stronger together and this sentence highlights how effective we can be as a team.”
“The arrest and subsequent sentencing of James LeBlanc highlights the incredible work the officers of the Spokane Police Department undertake every day,” stated Lt. Rob Booth, SPD Tactical Operations Commander. “This arrest is another example of the interagency cooperation that exist between the Spokane Police Department and our federal partners. The dedication and tireless efforts of the Violent Crimes Task Force have taken a significant threat off the streets and made Spokane safer.”
This case was investigated by the Drug Enforcement Administration and the Spokane Police Department. This case was prosecuted by Assistant United States Attorney Patrick Cashman.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Two Men Facing Federal Charges in Connection to Seizure of Commercial Pill Presses, Drugs, and FirearmsRead the Press Release
Spokane, Washington - Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury has indicted Timothy Gary Maddox on 10 felony counts and Nicholas Bryan Adams on 7 felony counts in connection to the seizure of drugs, firearms, and two commercial pill presses.
One of the pill presses seized by investigators is the first known commercial press associated with illegal fentanyl manufacturing in the Eastern District of Washington. The presses are believed to be able to produce thousands of pills per hour.
Investigators also seized more than a dozen firearms, suppressors, switches used to convert firearms from semi-auto to full auto, and more than $57,000 in cash. Investigators also seized quantities of fentanyl, methamphetamine, heroin, and cocaine.
“Our community is safer and stronger as a result of the investigative work of the numerous law enforcement agencies, who came together to investigate this case,” stated U.S. Attorney Waldref. “Seizures of large-scale pill presses like this are key to cutting off the deadly supply of illegal fentanyl in the Inland Northwest and elsewhere.”
Maddox and Adams were arrested in connection to a months-long drug investigation by Homeland Security Investigations and the Regional Street Crimes Unit consisting of the Spokane County Sheriff’s Office, Spokane Police Department, Spokane Valley Police Department, Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Washington State Department of Corrections, and the Drug Enforcement Administration.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Assistant United States Attorney Russell E. Smoot Retires from the Department of Justice After More Than Twenty Years of Federal ServiceRead the Press Release
Spokane, WA – Today marks the final day of service for one of Eastern Washington’s longest-tenured federal prosecutors. Over the past twenty-one years, Assistant United States Attorney Russell E. Smoot has served with distinction as a trial attorney and leader within the United States Attorney’s Office. From 2016 through 2021, Smoot served as the Criminal Chief for the Eastern District of Washington, and, for much of that time, as the First Assistant United States Attorney. As First Assistant, Smoot served as the primary deputy and legal advisor to the U.S. Attorney. During his two decades of service, Smoot also served many other roles within the office, including Deputy Criminal Chief, Criminal Appellate Coordinator, and Anti-Terrorism / National Security Coordinator.
In addition to his leadership roles, Smoot honed his skills as a capable and talented trial attorney. Throughout his twenty-one years as an Assistant United States Attorney (AUSA), Smoot handled numerous criminal trials and argued dozens of appellate cases.
The many cases Smoot prosecuted include the pseudoephedrine trials, which helped reduce the proliferation of local meth-labs, and numerous large-scale drug-trafficking organization cases.
Among the many drug-trafficking conspiracy cases prosecuted by Smoot, the “pill hustle” case stands out as significant for the scope of the oxycodone-trafficking, the multi-jurisdictional investigation, and the prosecution. In 2015, the lead defendant, a member of the Eight Trey Gangster Crips, a Los Angeles-based street gang, was sentenced to 50 years in federal prison for leading a continuing criminal enterprise involving dozens of gang members and associates in the unlawful distribution oxycodone pills in the Spokane area. The case also involved 50 search warrants that were executed simultaneously in Los Angeles, Spokane, and Seattle. Of the 62 defendants charged in the scheme, 4 went to trial, including the lead defendant, who was convicted after a five-week jury trial in November 2014. The trial was handled by Smoot and AUSA Stephanie Van Marter.
Following the oxycodone case, Smoot was part of the trial team that prosecuted a Tri-Cities area man with cartel ties, who was sentenced to life in federal prison for murder in connection with a drug-trafficking conspiracy. At trial, Smoot, again with Van Marter, presented evidence that the victim was lured to a Spokane residence under the guise of resolving a drug debt. Upon arriving at the residence, the victim was beaten with baseball bats, tied up, and driven to a remote location in Stevens County. At that location, the victim was doused with gasoline, shot multiple times, and set on fire. During an investigation, law enforcement connected the murder to a methamphetamine-trafficking organization with ties to Eastern Washington, Mexico, North Dakota, and Idaho.
Smoot also prosecuted the first material support to terrorists cases in the District. In one such case, a local Eastern Washington man with experience in chemical explosives sought to provide his bomb-making expertise online to a person he believed intended to conduct an act of terrorism in the United States. He was sentenced to over 12 years in federal prison and a lifetime term of federal supervision.
Just last year, Smoot was part of a Department of Justice prosecution team, that handled one of the largest-ever fraud schemes in Eastern Washington history – the $244 million scheme involving an Eastern Washington rancher, who was sentenced in October 2022 to eleven years in federal prison after charging Tyson’s Foods Inc. and another company hundreds of millions of dollars for approximately 265,000 head of cattle that did not exist. Ultimately, the rancher was ordered to pay $244 million in restitution for his “ghost cattle” scheme. This restitution award is the largest-ever in Eastern Washington history.
“Serving as an Assistant United States Attorney has been the highlight of my professional career,” AUSA Smoot stated. “It has been an honor to serve alongside many dedicated, hard-working colleagues within this office and across the Department of Justice. There is no equivalent to standing in federal court ‘on behalf of the United States.’” Smoot continued, “Serving the United States and the Eastern District of Washington as an Assistant United States Attorney has been a truly exciting adventure.”
United States Attorney Vanessa R. Waldref thanked AUSA Smoot for his leadership and sacrifices on behalf of the people of Eastern Washington: “Russ’s public service has been nothing short of incredible – from the cases he has tried to the leadership positions he held. Since beginning his career as an AUSA in May of 2002, Russ has prosecuted a wide range of cases, including several jury trials of drug trafficking cases, homicides, and everything in between.” U.S. Attorney Waldref added, “Russ is one of the hardest working AUSAs in our District’s history. He will be sorely missed.”
Assistant United States Attorney Tim M. Durkin, who served as the office’s Civil Chief during the time Smoot served as the First Assistant and Criminal Chief, stated, "Russ Smoot dedicated his career to public service, participating in and overseeing complex criminal investigations and prosecutions of drug organizations, gangs and fraudsters in the Eastern District of Washington. He was an outstanding trial and appellate attorney, handling some of the most challenging cases the U.S. Attorney’s Office brings. He served with distinction and honor, and his skills will be terribly missed. Congratulations to Russ and his family!"
“Russ and I started our careers as Assistant United States Attorneys in early 2002, and we have worked closely together ever since,” stated Assistant United States Attorney Stephanie Van Marter, who serves as the office’s Special Litigation Counsel and, as noted earlier, tried several landmark cases with Smoot. “It is hard to imagine the U.S. Attorney’s Office without Russ Smoot in it. We are excited for Russ as he begins his next adventure, but we will miss him. His dedication to justice is unparalleled.”
Smoot graduated with honors from the University of Alaska Anchorage with a degree in political science in 1995. Before attending college, Smoot worked as a commercial fisherman, aircraft mechanic, and Alaskan bush pilot.
Smoot received his J.D. from Gonzaga University in 1999, graduating Magna Cum Laude and serving as a Notes and Comments Editor for the Gonzaga Law Review. During law school, Smoot became a law clerk at the United States Attorney’s Office. Then, after graduating from law school, Smoot worked for three years in private practice in Maine, before returning to Spokane and rejoining the United States Attorney’s Office shortly after 9/11.
Spokane Man sentenced to 48 Months in Prison for Armed Robbery at Spokane Valley MotelRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Christopher Bruce Gooch, 46, of Spokane, Washington, was sentenced after pleading guilty to Robbery Affecting Commerce. U.S. Senior District Judge Rosanna Malouf Peterson imposed a sentence of 48 months in prison to be followed by 3 years of supervised release. When imposing the sentence, U.S. Senior Judge Peterson noted Gooch’s lifelong criminal history beginning at age 11.
According to court documents, on the night of August 2, 2022, Agents with the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, and Firearms (ATF) were conducting surveillance of suspected drug traffickers at the Oxford Suites in Spokane Valley. During that surveillance, just before midnight, agents observed one of the suspected drug traffickers arrive at the motel carrying multiple duffle bags.
A short time later, surveilling agents observed a unique van arrive in the motel parking lot. A man, later identified as Dominic Shears, was observed getting out of the van and entering the front door of the motel. Shears then opened a side door to the motel. At this point, two other men, later identified as Christopher Gooch and Christopher Jones, got out of the parked van and went into the motel through the now open side entrance.
A few minutes later, agents observed the same three men carrying what appeared to be the same duffle bags leave through a side door of the motel. All three men got into the van, and quickly left the area.
Around the same time, the Spokane County Sheriff’s Office (SCSO) received a 911 call from the motel reporting that a motel guest had been robbed at gunpoint. The caller also told Sheriff’s Deputies that three suspects with masks left the motel in a van.
Believing the suspected drug trafficker may have been the victim of the robbery, The surveilling agents followed the van and advised SCSO and the Spokane Police Department (SPD) that law enforcement was following those believed to be involved in the robbery. SPD joined in the pursuit, and when the van reached downtown Spokane, the driver of the van briefly stopped and both Gooch and Jones got out of the vehicle and attempted to flee on foot. Jones was carrying a duffle bag as he attempted to flee the scene. Ultimately, both men were apprehended. Inside the duffle bag, SPD officers recovered approximately 1.5 pounds of methamphetamine, 400 grams of fentanyl-laced pills, and 150 grams of heroin.
Around the time SPD officers apprehended and detained Gooch and Jones, SPD also attempted a to conduct a traffic stop on the van, which Shears was driving. Instead of stopping, however, Shears eluded police and ultimately fired shots at police, after crashing his van into a building in downtown Spokane. Shears then engaged in a multiple-hour stand-off with law enforcement. The standoff ended when Shears came out of the front windshield area of the vehicle and fired at the police. Police returned fire, and Shears died of his injuries.
During interviews after the robbery, investigators learned Shears was a customer of the suspected drug trafficking law enforcement was surveilling. In fact, Shears placed a large order with the supplier, intending to rob the supplier. Shears then recruited Jones, who in turn recruited Gooch, to help with the robbery. When they arrived at the motel, all three men donned ski masks. Gooch remained in the hall, while Jones and Shears entered the supplier’s motel room and demanded the drugs. During the robbery, Shears had a black, semi-automatic firearm, which he put to the supplier’s head. Jones and Shears then grabbed two duffle bags from the room and left. A woman in the room was able to escape, run down the hall, and alert hotel staff.
Jones pleaded guilty to one count of Robbery Affecting Commerce on May 2, 2023, and was sentenced to 63 months in prison, followed by 3 years of supervised release.
“I am thankful for the dedicated members of law enforcement who put themselves in harm’s way every day to keep our streets secure and our communities safe. This case is a stark reminder of the dangerous nexus of drug trafficking and violent crime,” stated U.S. Attorney Waldref. “The United States Attorney’s Office is committed to partnering with our federal, state and local partners to prosecute violent offenders and build safer, stronger, and more resilient communities.”
Assistant United States Attorney Caitlin Baunsgard, who prosecuted the case, stated, “Drug trafficking is most often characterized as a non-violent offense. However, based on my 15 years investigating and prosecuting drug trafficking crime, this not accurate. This case is a stark reminder of the violence that frequently occurs with the illegal distribution of controlled substances. The US Attorney’s Office is committed to supporting all our law enforcement partners and the important work they do for our community. Despite many obstacles, they put their lives on the line in pursuit of community safety. I applaud their dedication.”
“This case is a chilling reminder of the violence that accompanies drug trafficking and resolve of the agencies to protect our communities from these violent offenders,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division.
“This is a well-deserved sentence,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “Mr. Gooch’s actions, along with those of his co-criminals, put the lives of area residents in great danger. We appreciate the support the Spokane Police Department and Sheriff’s Office’s support.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Homeland Security Investigations, the Spokane Police Department, and the Spokane County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Caitlin Baunsgard.
2:2022-cr-00135-RMP
United States Files False Claims Act Complaint Against Property Management Company for Fraudulently Claiming Hundreds of Thousands of Dollars in Rent Assistance During COVID-19 PandemicRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the United States filed a Complaint in federal district court against All Star Property Management, LLC (All Star), a property management company located in Spokane. The United States’ Complaint alleges that All Star falsely and fraudulently claimed hundreds of thousands of dollars in rent assistance intended to benefit struggling renters during the COVID-19 pandemic.
During the COVID-19 pandemic, Congress established an Emergency Rent Assistance program to provide funds through local and tribal governments to benefit struggling renters who had fallen behind on rent due to unemployment or other hardship. In Washington, the program was known as the Treasury Rent Assistance Program (T-RAP). Under T-RAP, landlords or property management companies could apply for T-RAP federal funding for a tenant’s past due and projected unpaid rent. As a material condition of receiving federal funds, landlords were required to certify that the information included in the T-RAP application, including the rent amounts, were truthful and accurate, and to certify compliance with material T-RAP program requirements. Landlords were further required to apply any funds received for a particular tenant to that tenant’s balance.
During the relevant time period, All Star was a property management company, owned by Defendant Gieve Parker, that managed rental properties on behalf of landlords in Spokane, including several properties owned by Arlin Jordin. According to the Complaint filed today, during the relevant time period, Jordin was serving a prison sentence at the Coyote Ridge Corrections Center in Connell, Washington, for drugging and raping a tenant, but Jordan continued to own and collect income from five Spokane properties managed by All Star, for which All Star and Jordin split the rental income.
The Complaint alleges that, between 2021 and 2022, All Star and Parker falsely and fraudulently sought and obtained T-RAP relief funding for more than 30 tenants for which All Star was not eligible, and shared the proceeds with Jordin for the properties that he owned. According to the Complaint, All Star and Parker violated the False Claims Act by falsely certifying that tenants had past-due rent when Parker and All Star knew that the tenants were not behind on rent. The Complaint also alleges that All Star and Parker knowingly claimed falsely inflated rent amounts that were higher than tenants’ actual rent. The Complaint further alleges that All Star and Parker fraudulently represented that T-RAP assistance was needed for tenants when Parker and All Star knew that the tenants were, in fact, consistently paying rent, either on the tenants’ own or through a charitable organization or government program. Further, the Complaint alleges that All Star and Parker falsely represented that the tenants were still residing at the residence when Parker and All Star knew that the tenants were no longer residents and therefore All Star was not eligible to receive any rental assistance. Finally, the Complaint alleges that All Star and Parker falsely and fraudulently represented that T-RAP funds would be used as rental assistance for tenants, when Parker and All Star knew that T-RAP were not being used as rent assistance, and in many cases the tenants did not even need rent assistance, resulting in Paker and All Star at times collecting double and even triple rent for the same tenant for the same month.
The Complaint alleges that All Star and Parker’s false and fraudulent T-RAP claims led them to receive hundreds of thousands of dollars in T-RAP funding for which they were not eligible. The Complaint also alleged that, as a result of the fraud, Jordin received T-RAP funds for which he was not eligible when All Star and Parker paid him a portion of the fraudulently-obtained funds.
“Building safer and stronger communities in Eastern Washington requires that residents have access to safe, secure, and affordable housing,” said U.S. Attorney Waldref. “Landlords and property management companies need to play by the rules, especially when they claim precious and limited rent assistance funds intended to protect members of the community struggling under the weight of a deadly pandemic. We will continue to work with our law enforcement partners to hold accountable those who abuse critically-important housing support programs.”
This case was originally brought by the Northwest Justice Project, Washington’s largest legal aid organization, on behalf of Krystal Jeffries, a former tenant in a property owned by Jordin and managed by All Star. Under the False Claims Act, whistleblowers may file an action under seal in federal court. The United States investigates the allegations and determines whether to intervene in the action. Under the False Claims Act, the United States may recover up to three times the damages caused by the Defendant, plus additional penalties for each false claim or statement. If the United States obtains a recovery, the whistleblower is generally able to share in a portion of the recovery. Over the past decade, False Claims Act recoveries in the Eastern District of Washington have exceeded $400 million.
Assistant United States Attorneys Tyler Tornabene, Jake Brooks, and Dan Fruchter are prosecuting this case on behalf of the United States. The investigation was conducted by the Federal Bureau of Investigation, Spokane Resident Office.
The complain can be found here:
all-star_complaint.pdfThe claims articulated in the Complaint are allegations only; at this time there has been no determination of liability.
Case No. 2:22-cv-00067-MKD
Clarkston Man Convicted of Attempted Enticement of a MinorRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that a jury returned verdicts on December 6, 2023, following the trial of David Elmo Curry, 38 of Clarkston, Washington. Curry was convicted by a jury on two counts of Attempted Enticement of a Minor.
Evidence introduced at trial established that on November 16, 2019, Curry was arrested when he arrived at a house in Yakima, Washington after having responded to an on-line ad by a woman purporting to be the mother of two daughters – ages 11 and 13. According to the ad, the mother was seeking money in exchange for sex with her minor children. The on-line ad actually was part of a sting operation conducted by the Washington State Patrol, assisted by the Yakima and Union Gap Police Departments and Homeland Security Investigations. At the time of his arrest, Curry had condoms and flavored lubricant with him. Curry was then charged in Yakima County Superior Court with Attempted First Degree Attempted Rape of a Child and Second Degree Attempted Rape of a child. He later was released on bail on these state charges.
Following Curry’s release on bail, a Homeland Security Investigations Task Force Officer, acting in an undercover capacity, responded to a separate on-line ad, which Curry placed by while on release. The undercover officer represented that he was a thirteen-year-old girl and Curry engaged the officer in sexual talk, requested nude images, and made arrangements to meet with him in person. At one point, Curry determined the purported child’s preferred candy and purchased flavored lubricant in a corresponding flavor for a planned meeting the next day, which never took place.
Chief United States District Judge Stanley A. Bastian presided over the trial, which began on December 4, 2023. Sentencing in this matter is set for March 26, 2024. Curry faces a minimum sentence of 10 years’ incarceration and a maximum possible sentence of life imprisonment, as well as no less than five years of supervised release and mandatory sex offender registration for each count.
“Mr. Curry attempted to meet, what he believed to be, a 13-year-old child for sex. When Mr. Curry did so, he had been released on bail for a similar charge,” stated U.S. Attorney Waldref. “I am thankful to our excellent law enforcement partners and the members of the Southeast Regional Internet Crimes Against Children Task Force who work to ensure our communities are protected from those that would harm the most vulnerable among us.”
“Once again, we are so proud of the teamwork and dedication displayed by the partnership with the SER-ICAC team, including the Washington State Patrol and Yakima Police Department, on this case,” stated Commander Damon Janson, Investigations Division with the Richland Police Department. “Having a dedicated, southeast regional team, focused on child internet sex crimes is both important and vital to the world we live in today.”
“This sentence serves as a poignant reminder of the vigilance required to shield our communities from those who prey on the most vulnerable. In a chilling narrative, Curry's actions, even while on bail for similar charges, lay bare the urgent need for unwavering dedication to protecting our children,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “I’m thankful for our law enforcement partnerships on the Internet Crimes Against Children Task Force that continue to demonstrate through these arrests that we will continue to patrol the shadows of the internet to bring these predators to justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations with the assistance of the Washington State Patrol, the Yakima Police Department and the Southeast Regional ICAC Task Force, consisting of the Richland and Kennewick Police Departments. This case was prosecuted and tried to a jury by Michael Murphy, Assistant United States Attorney for the Eastern District of Washington.
Man Indicted for Trafficking Methamphetamine, FentanylRead the Press Release
Spokane, Washington - Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury has indicted Charles Lee Dickerson on one count of Possession with Intent to Distribute 50 Grams of Actual Methamphetamine and one count of Possession with Intent to Distribute 40 Grams of Fentanyl.
According to court documents, On November 20, 2023, Kalispel Tribal Police (KTP) Officers received a call from the Tribal Gaming Authority team monitoring surveillance cameras at Northern Quest Resort and Casino. The Tribal Gaming Authority team reported security camera video showing an alleged drug transaction between two people in two vehicles in the Casino Parking lot.
KTP Officers reviewed the video and observed a man, later identified as Charles Lee Dickerson, smoking off a foil while seated in the driver seat of a red Jeep Trackhawk. Officers also saw what appeared to be a hand-to-hand exchange between Dickerson and another man in the parking lot.
KTP Officers detained and read Dickerson his Miranda warnings which Dickerson confirmed he understood. Officers then asked for consent to search him for an ID and search a satchel he was wearing at the time of the stop. Officers found approximately 12 grams of cocaine. Dickerson also had 136 “skittles” (multi-colored pills suspected to contain fentanyl) in his pants pocket. Officers also found $18,000 in U.S. Currency in the satchel.
During questioning at the Spokane DEA District Office, Dickerson stated a man had given him a quantity of meth and 10,000 pills from Mexico and that it would be found in the Jeep Trackhawk. Agents searched the vehicle and found one pound of meth, thousands of multi-color pills believed to contain fentanyl, and a quantity of cocaine.
“Illegal drugs and fentanyl have become a scourge across the United States and especially in Native Communities. My office is committed to aggressively stopping, and bringing to justice, those who peddle this deadly poison in Indian country”, stated U.S. Attorney Waldref. “I am grateful for our Tribal and law enforcement partners who work together to protect our communities and make them safer and stronger.”
This case is being investigated by the Drug Enforcement Administration.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Vanessa R. Waldref Testifies Before United States Senate Committee on Indian Affairs about Fentanyl in Native CommunitiesRead the Press Release
Washington, D.C. – On December 6, Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, testified before the United States Senate Committee on Indian Affairs. The title of the hearing was “Fentanyl in Native Communities: Federal Perspectives on Addressing the Growing Crisis.” At the hearing, U.S. Attorney Waldref was joined by Adam Cohen, Deputy Director, White House Office of National Drug Control Policy; Roselyn Tso, Director, Indian Health Service for the U.S. Department of Health and Human Services; and Glen Melville, Bureau Deputy Director, Bureau of Indian Affairs – Office of Justice Services.
U.S. Attorney Waldref gave background on the fentanyl crisis in native communities, and the Department of Justice efforts to respond to it – including prevention and education efforts. One example noted by U.S. Attorney Waldref is the Drug Enforcement Administration’s Operation Engage. In the summer of 2022, Operation Engage worked with the Spokane Tribe of Indians through the Boys and Girls Club in Wellpinit, Washington, to host a day of learning and activities that focused on making healthy choices and increasing drug prevention and awareness.
In addition to prevention and education efforts, U.S. Attorney Waldref highlighted significant prosecutions in the Eastern District of Washington addressing the distribution of fentanyl on Native American reservations. For example, in January, more than 120,000 fentanyl-laced pills and 42 pounds of methamphetamine were sized in a takedown in Yakima County, Washington. In another recent case highlighted in U.S. Attorney Waldref’s testimony, the U.S. Attorney’s Office prosecuted a drug dealer in connection with the overdose death of a young Native American mother, who purchased drugs from the defendant on the Colville Indian Reservation.
“It was an honor to testify before the Senate Committee on Indian Affairs. As I stated in my testimony, the Department of Justice’s commitment to serving Indian country goes beyond prosecution. We are public servants who want to do all we can to make Tribal communities stronger and safer,” stated U.S. Attorney Waldref. “To accomplish that goal, we will continue to work in partnership with Tribal, federal, state, and local partners to effectuate a multi-faceted response to the fentanyl epidemic, including prosecuting those who distribute deadly fentanyl in the Eastern District of Washington.”
When asked during the hearing about examples of success in combating the fentanyl crisis in Native communities by Senator Jon Tester of Montana, U.S. Attorney Waldref further highlighted a case that involved the Bureau of Indian Affairs, the Drug Enforcement Administration, and the U.S. Attorney’s Office in Montana. In that case, more than 100 pounds of illegal drugs, including 161,000 fentanyl-laced pills were seized. A significant portion of the drugs seized were believed to be destined for the Confederated Tribes of the Colville Reservation, as well as for other Native American communities and surrounding areas in Washington and Montana.
U.S. Attorney Waldref’s testimony is available here.
A recording of the entire hearing is available here.
Former Fairchild Airman Sentenced for Possession of Stolen AmmunitionRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that John I. Sanger, 31, of Rigby, Idaho, was sentenced after pleading guilty to Possession of Stolen Ammunition. United States District Judge Thomas O. Rice imposed a sentence of 24 months in prison to be followed by 3 years of supervised release.
According to court documents and information provided at sentencing, in August of 2021, the Federal Bureau of Investigation (FBI) and Air Force Office of Special Investigations (OSI) opened an investigation into Sanger, based on information Sanger was associated with two social media accounts − “awakened cascadian” and “problematicpatriot.” Sanger had used these accounts to discuss committing acts of violence to advance a political agenda. In December of 2020, Sanger used the “problematic pariot” account to call for the violent seizure of the U.S. Capitol building, stating, “They defrauded our election system and are still getting away with it. That means the system has run it’s course. People have to die.”
During the investigation, an Undercover Officer met with Sanger and discussed issues involving minorities, opposition to vaccines, and targeting of critical infrastructure. Specifically, the Undercover Officer and Sanger discussed targeting the Spokane County Public Health building and COVID-19 testing sites using a Molotov cocktail.
In March of 2022, Sanger told the Undercover Officer that multiple Air Force members stationed at Fairchild Air Force Base in Spokane were stealing ammunition from the Air Force and shooting the ammunition, which was paid for by taxpayers, for personal use. Sanger told the Undercover Officer that he was receiving stolen ammunition from another Air Force member, Staff Sergeant Nathan Richards, of the Fairchild 92nd Security Forces Squadron Combat Arms Training Management (CATM) section. Members of this section are trained in firearms and had access to ammunition.
On March 12th, 2022, Sanger, the Undercover Officer, Richards and Staff Sergeant Eric Eagleton, who also was a member of CATM, met to go target shooting at Fishtrap Lake. While at the range, Richards retrieved a plastic bag with hundreds of rounds of loose, green tip 5.56 M855 rounds and gave it to Sanger. Richards said that members of CATM would falsify records so that it appeared the stolen ammunition had been expended in the course of Air Force duties. After Sanger and others finished shooting, Sanger gave the Undercover Officer some of the stolen ammo Sanger received from Richards.
In April of 2022, Agents observed Sanger and Eagleton meet in the parking lot of the Northern Quest Resort and Casino. The agents observed Eagleton give Sanger a military-style ammunition can containing stolen ammunition. Following that meeting, Sanger sent the Undercover Officer text messages with photographs showing the stolen ammunition he had been given by Eagleton. A few days after the meeting, the UC and Sanger went to the Fishtrap shooting range and shot about 250 rounds of stolen ammunition.
Later that month, The Undercover Officer and Sanger met at the Undercover Officer’s RV. During the meeting, the Undercover Officer handed Sanger an unregistered gun suppressor Sanger had previously paid the Undercover Officer to buy for him. When Sanger exited the RV, he was arrested by the FBI and OSI special agents. Sanger was still in possession of the suppressor.
At the time Sanger was placed under arrest, the FBI and OSI special agents executed a series of search warrants at Sanger’s home. Agents located several firearms, firearm parts, empty firearm magazines and ammunition. They also found numerous patches, stickers, and paraphernalia associated with white supremacy and the neo-Nazi movement.
“Theft from the military is an affront to honorable men and women who dedicate their lives to government and military service in order to keep America safe and strong. I will not tolerate any abuse of trust by those charged to protect our great country,” stated U.S Attorney Waldref. “I applaud the tireless work and dedication of the Federal Bureau of Investigation, the Air Force Office of Special Investigations and our Federal Prosecutors in bringing Mr. Sanger to justice.”
“Like all who served the United States, Mr. Sanger took an oath when he enlisted in the military,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “His actions violated that oath, and he violated the trust imparted to him by the American people. I am proud of the work of our investigators and partners to quickly bring an end to Mr. Sanger’s conduct before his violent rhetoric turned into action.”
The case was investigated by the FBI’s Seattle Field Office, Inland Northwest Joint Terrorism Task Force (“INJTTF”), and the United States Air Force Office of Special Investigations (OSI).
This case was prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
2:22-cr-00052-TOR
Doctor Charged in $14M Medicare and TRICARE Fraud SchemeRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Thomas Andrew Webster, M.D., age 50, of Sylvania, Ohio, has been charged by Filing of Information on one count of Conspiracy to Violate the Anti-Kickback Statue in connection with a fraudulent medical supply scheme that targeted elderly Medicare and TRICARE beneficiaries throughout Washington and in other states.
The Medicare program provides health insurance coverage for elderly and disabled Americans. The United States Department of Defense’s TRICARE program provides health benefits to United States Armed Forces military personnel, military retirees, and their dependents. Medicare and TRICARE provide health insurance coverage for eligible health care services, including, under certain eligibility conditions, for Durable Medical Equipment (DME). For DME to qualify for reimbursement, DME was required to be ordered by a physician who is treating the beneficiary for a specific illness or injury. The DME was also required to contribute to the physician’s treatment of the illness or injury or to the improvement of the patient’s physical condition.
During the relevant time period, Dr. Webster lived in Olympia, Washington, and was a licensed physician in Washington. The Information charges that between May 2021 and September 2023, a company identified as “Company A” engaged in a telemarketing scheme to obtain beneficiary identifying and medical information by using telemarketers to contact Medicare and TRICARE beneficiaries in the Eastern District of Washington and elsewhere. According to the Information, Company A then used the information to create a fake medical record that reflected a doctor visit that never took place, and medical orders for DME. The Information charges that Dr. Webster then signed the fraudulent medical documentation and physician orders, and that the fraudulent orders were then sold to DME companies that used the orders to bill Medicare and TRICARE falsely and fraudulently.
The Information further alleges that between May of 2021 and September of 2023, Medicare and TRICARE paid more than $13.7 million for DME fraudulently ordered and referred by Dr. Webster. These beneficiaries, which included many residents of the Eastern District of Washington, included individuals who had no desire or medical need for the DME, individuals who had elected for hospice care and who therefore were not eligible to be treated for most types of illness or injury under Medicare, and individuals who lacked the limb for which Defendant placed the DME order because it had been previously amputated.
The Information also alleges that, as part of the scheme, Dr. Webster received $839,565 from Medicare and TRICARE for fraudulent telemedicine visits that never took place.
“Telemarketing schemes that target and exploit the elderly are especially pernicious because they prey on those who are often most in need of a doctor’s independent judgment that is not tainted or biased by the doctor’s own personal financial interest,” said U.S. Attorney Waldref. This is one reason that the U.S. Attorney’s Office, the Department of Justice, and our law enforcement partners, have made combatting elder fraud and abuse a top priority.”
The conspiracy offense carries a maximum sentence of up to five years in federal prison. The case is being investigated by HHS OIG and the Defense Criminal Investigative Service. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
An indictment or information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Marshals Capture Alleged Multimillion-Dollar Fraudster William MizeRead the Press Release
Spokane, Washington – During the morning hours of November 28, 2023, the U.S. Marshals Service in the Eastern District of Washington and Middle District of Florida located and apprehended William Oldham Mize, a fugitive wanted on federal charges for a multimillion-dollar fraud scheme involving false and fabricated insurance claims. Mize is alleged to have used the profits from his alleged schemes to purchase luxury automobiles, boats, along with other luxury items. Mize had been a fugitive since 2019.
Mize was indicted by a federal grand jury for the Eastern District of Washington on December 18, 2018. The federal indictment alleges numerous charges, including mail fraud, wire fraud, health care fraud, money laundering, and related conspiracy charges. According to the indictment and other court filings, Mize is alleged to have caused or participated in dozens of fake car accidents, falls, and other accidents in multiple states between September 2013 and April 2018. Mize then allegedly collected the insurance proceeds from these fabricated accidents. To date, insurers are alleged to have paid more than $6 million on Mize’s allegedly fraudulent claims.
Mize originally appeared in federal court on his indictment on January 9, 2019. He was released pending trial on conditions that included reporting to the U.S. Probation Office as often as directed, contacting his defense attorney weekly, posting an unsecured $750,000 appearance bond, surrendering his U.S. Passport, limiting his travel to Washington and Nevada, and showing up for all future court dates. Mize absconded in July 2019, and had been a fugitive ever since. During this time, Mize allegedly used a number of different aliases and had a history of frequenting various areas, including Washington, California, Florida, Mexico, Las Vegas and New Orleans.
On November 28, 2023, the U.S. Marshals apprehended Mize in Jacksonville, Florida, based on a lead that Mize was using an alias to sell a boat in the Jacksonville area. Mize was then located and arrested at a marina in central Florida. Later that day, Mize appeared before the Honorable Patricia D. Barksdale, who serves as a United States Magistrate Judge for the Middle District of Florida. Judge Barksdale issued an order of removal for Mize to be extradited back to Spokane, Washington to appear in United States District Court for the Eastern District of Washington. Below are photographs of Mize and the boat he allegedly was selling on Craigslist.org in the Jacksonville area.
Craigslist.orgThe United States Attorney for the Eastern District of Washington, Vanessa R. Waldref stated, “I am grateful for the tremendous work of the United States Marshals, who work tirelessly to locate fugitives, such as Mr. Mize. As a result, Mr. Mize’s victims finally will be able to confront Mr. Mize in a court of law, and the criminal justice process against Mr. Mize finally will proceed.”
“William Mize was a fugitive who thought that because he had financial means, he could avoid apprehension and flout the rule of law,” said Craig Thayer, U.S. Marshal for the Eastern District of Washington. “As evidenced, this is clearly not the case. No matter the resources they have or where they run to, the U.S. Marshals will never stop in the pursuit of fugitives until they have been brought to justice.”
The Pacific Northwest Violent Offender Task Force is a U.S. Marshals-led partnership comprising federal, state and local law enforcement officers from Washington, Oregon and Alaska. The task force’s primary mission is to locate, arrest and return to the justice system the most violent and egregious federal and state fugitives. Assistant United States Attorney Dan Fruchter is prosecuting the case on behalf of the United States.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
18-CR-00232-TOR
Anyone with information about a wanted fugitive is urged to contact the nearest U.S. Marshals office, the U.S. Marshals Service Communications Center at 1-800-336-0102, or submit tips via the USMS Tips App.
Pasco Woman Sentenced to 9 Years for Trafficking Rainbow-Colored Fentanyl PillsRead the Press Release
Richland, Washington- Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Amy Lynn Loza, age 38, of Pasco, Washington was sentenced after pleading guilty to Possession with Intent to Distribute 400 Grams or More of a Mixture of a Substance Containing a Detectable Amount of Fentanyl. United States District Judge Mary K. Dimke imposed a sentence of 108 months imprisonment to be followed by 5 years of supervised release.
According to court documents, in October of 2022, the Tri-Cities Metro Drug Task Force and the Drug Enforcement Administration (DEA) began investigating several fentanyl traffickers operating in the Tri Cities. Investigators developed information that Loza had recently purchased several thousand fentanyl laced pills.
Agents obtained search warrants for two locations used by Loza – a home in Richland and the bedroom of a home in Kennewick. During those searches, agents located more than 14,000 rainbow- colored fentanyl pills and well as more than a pound of meth. Agents also located scales, baggies, and drug ledgers belonging to Loza. A loaded firearm was also found at the home in Richland.
When contact was made, Loza admitted to investigators that she had been involved in trafficking fentanyl and had purchased 17,000 pills in the last week.
U.S. Attorney Waldref stated, “Fentanyl has taken too many lives across the United States and right here in our community. Every day the Metro Drug Task Force and DEA are working to combat this dangerous poison. Thanks to their efforts in this case, thousands of fentanyl pills have been removed from our streets, making Eastern Washington safer and stronger.”
“Rainbow fentanyl is a despicable marketing tool used by traffickers to hide the deadly nature of fentanyl, which could have resulted in over 10,000 deaths in this case,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The team effort of DEA, alongside our state and local partners, kept this deadly drug off the streets and held Ms. Loza accountable for her actions.” According to the DEA laboratory, seven in 10 fake pills contain a potentially lethal dose of fentanyl www.DEA.gov/OnePill.
This case was investigated by the DEA and the Tri-Cities Metro Drug Task Force. This case was prosecuted by Assistant United States Attorney’s Stephanie Van Marter and Rebecca Perez.
4:22-CR-06048-MKD
Man Sentenced to 21 Years for Abusive Sexual Contact of a MinorRead the Press Release
Yakima, Washington – Chief United States District Judge Stanley A. Bastian sentenced Joseph Leonard Roy, age 58, of Mabton, Washington, to 252 months in federal prison for two counts of Abusive Sexual Contact of a Minor. Roy pleaded guilty to those charges on November 29, 2022. Chief Judge Bastian also ordered Roy to serve an additional 20 years on federal supervision after he is released from prison.
According to court documents, between 2017 and 2018, Roy sexually molested two minors in a home on the Yakama Nation, where Roy had access to the victims. Roy was dating a relative of the victims at the time of the abuse, and this disturbing conduct continued until one of the victims spoke out to a trusted family member, who then contacted authorities, to report the exploitation.
Following the sentencing, Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, stated, “My heart breaks for the victims in this case. I am grateful for their courage to come forward and engage with law enforcement to seek justice,” stated U.S. Attorney Vanessa Waldref. “Children deserve to live in a world where they feel safe -- free from abuse and the fear of abuse. Mr. Roy was held accountable today due to the joint efforts of the Yakama Nation Tribal Police Department, the FBI, the United States Attorney’s Office, and the community. By working together, we can continue to build trust and keep our communities safe and strong.”
“Mr. Roy’s unspeakable actions demonstrated that prison is where he belongs.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “As a parent, I can think of nothing worse than what the victims had to endure. I applaud them for seeking help which led to this sentence and which will remove him from this community for more than twenty years.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation and the Yakama Nation Tribal Police Department. This case was prosecuted by Assistant United States Attorney Michal Murphy.
1:21-CR-02006-SAB
Man Sentenced to 20 Years for Production of Child Pornography and Possession of Child PornographyRead the Press Release
Yakima, Washington – Chief United States District Judge Stanley A. Bastian sentenced Bryce Quinton Hale, age 28, of Yakima, Washington, to 240 months in federal prison for Production of Child Pornography and Possession of Child Pornography. Hale pleaded guilty to those charges on August 23, 2023. Chief United States District Judge Bastian also ordered Hale to serve an additional 10 years on federal supervision after he is released from prison and imposed $3,000 in restitution.
According to court documents, in August 2021, Hale produced images of child pornography which he shared with a chat group using the “Kik” app on his cellular phone. He was charged for this conduct in November 2021 and was placed on conditions of pre-trial release beginning on December 1, 2021. Hale then violated those pre-trial release conditions by accessing the internet and using another cellular phone on which he possessed additional images and videos of child pornography.
“Today’s sentence sends a clear message to those who continue to seek to victimize children: the U.S. Attorney’s Office and our partners will continue to work tirelessly to seek justice, and the consequences of exploiting children will be severe,” said Vanessa R. Waldref, United States Attorney for the Eastern District. “The FBI and the United States Attorney’s Office stand ready to respond with thorough investigations, vigorous prosecutions, and significant sentences for anyone who abuses children.”
“Child pornography is particularly troubling for the victims as the images continue to exist on the internet even after the perpetrator is stopped.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Despite being confronted by law enforcement with his horrendous actions, Mr. Hale continued to engage in unlawful activity. Protecting the children of Washington state is one of the highest priorities for the FBI, and our partners at the US Attorney’s office.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Michael Murphy.
1:21-CR-02052-SAB
Spokane Valley Man Sentenced to 12 Years in Federal Prison on Drug Charges and Violation of Federal Supervised ReleaseRead the Press Release
Spokane, Washington - United States District Judge Thomas O. Rice sentenced Justin Richard Byers, 39, of Spokane Valley, Washington, to 130 months in federal prison for Possession with Intent to Distribute 40 Grams or More of Fentanyl. U.S. District Judge Rice also sentenced Byers to an additional 14 months for violating his term of supervised release.
According to court documents, in February of 2023, the Moses Lake Police Department’s Street Crimes Unit developed information that Byers was selling fentanyl pills and had a federal warrant for his arrest stemming from multiple violations of his term of federal supervised release. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) tracked Byers to an RV at a campground in North Spokane. When Byers exited the RV, Agents approached Byers in an effort to arrest him. In response, Byers ran back inside the RV and, despite repeated commands, refused to come out. After approximately 30 minutes, Byers exited his trailer, and surrendered to agents without further incident. Byers was arrested on the federal warrant.
Agents obtained a search warrant for the RV and located 1,000 fentanyl-laced pills as well as a scale with drug residue.
In the sink, Agents located fentanyl pills as well as liquid, indicating Byers had attempted to flush the pills to avoid them being seized by Agents. Unfortunately for Byers, as there was no water in the RV. Byers attempted to pivot; however, unsuccessfully attempted to flush the pills down the sink with a carbonated soda. Agents ultimately removed the p-trap to the sink and located many additional fentanyl pills. Agents also located about 500 fentanyl pills strewn about the RV. Agents also located two handguns, one of which had been stolen.
Agents also learned Byers was connected to two storage units in Spokane. During a search, agents located a variety of ammunition, a loaded magazine, more suspected fentanyl-laced pills and a quantity of methamphetamine.
“Mr. Byers is a repeat offender, who, when released from prison, picked up right where he left off -- pedaling poison in our neighborhoods. Holding individuals accountable who are dealing drugs and removing these narcotics from our streets will make all our neighborhoods and communities safer and stronger,” stated U.S. Attorney Vanessa Waldref. “I’m grateful for the dedication of our law enforcement partners, who worked to bring Mr. Byers to justice.”
“One would hope that prison would be a deterrent for a convicted felon from pursuing additional illegal actions on release,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “In this case, Mr. Byers was not deterred. ATF will always work tirelessly to investigate those whose actions are a continuing danger to our communities.”
“We are proud of the work done by our Street Crimes Detectives on this case, and grateful for the relationship we have with our ATF partners to bring this to a successful conclusion, ” stated Moses Lake Police Chief David Sands.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Moses Lake Police Department’s Street Crimes Unit. This case was prosecuted by Assistant United States Attorney Caitlin Baunsgard.
White Swan Man Sentenced to 40 Years in Prison for Sexual Abuse of a Minor and Aggravated Sexual Abuse of a ChildRead the Press Release
Yakima, Washington – United States District Judge Mary K. Dimke sentenced Jeremiah Bobb, age 27, of White Swan, Washington, to 180 months in federal prison for one count of Sexual Abuse of a Minor and 40 years in prison for one count of Aggravated Sexual Abuse of a Child. The sentences will run concurrently. Bobb was convicted of those crimes on July 31, 2023, following a multi-day jury trial. United States District Judge Dimke also ordered Bobb to a lifetime of federal supervision after he is released from prison.
According to court documents, between 2016 and 2017, Bobb sexually assaulted two minors in a home on the Yakima Nation, where Bobb and the victims lived.
Bobb’s trial began on July 24, 2023. After testimony from numerous witnesses, the jury convicted Bobb of both charges on July 31, 2023. During the trial it was revealed by witnesses that for years Bobb had engaged in a pattern of sexually assaulting or attempting to sexually assault vulnerable females in the households where he had been staying.
“My heart breaks for the victims in this case. I am grateful for their courage to come forward and engage with law enforcement to seek justice,” stated U.S. Attorney Vanessa Waldref. “Children deserve to live in a world where they feel safe -- free from abuse and the fear of abuse. Mr. Bobb was held accountable today due to the joint efforts of the Yakama Nation Tribal Police Department, the FBI, the United States Attorney’s Office and the community. By working together, we can continue to build trust and keep our communities safe and strong.”
“Two children’s lives were forever impacted by Mr. Bobb’s grievous actions.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Our hope is they find the support they need going forward and some comfort knowing he is in prison. Protecting children in Washington state from predators like Mr. Bobb is one of the top priorities for the FBI and our partners.”
This case was investigated by the Federal Bureau of Investigation and the Yakama Nation Police Department. This case was prosecuted by Assistant United States Attorney Michael Murphy.
Accountant Pleads Guilty to Stealing More than $715,000 from Spokane Medical PracticeRead the Press Release
Spokane, Washington - Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced Carol Casilla, age 26, of Spokane, Washington, pleaded guilty to Wire Fraud in connection with Casilla’s theft of more than $715,000 from a Spokane medical practice at which she was employed between 2020 and 2023. United States District Judge Thomas O. Rice accepted Casilla’s guilty plea, and set sentencing for February 22, 2024, in Spokane.
According to court documents, between May 2020 and March 2023, Casilla was employed as an accountant by Spokane Dermatology Clinic (SDC), a dermatological practice located in Spokane. While employed at SDC, Casilla used her position to fraudulently issue company checks to herself and deposit them into her own personal accounts, and to make electronic funds transfers using company funds toward her personal credit cards. According to court documents, some of the transfers were made to a fictitious company that Casilla created in order to make it appear as though the transfers were for legitimate company expenditures. Casilla made hundreds of fraudulent transfers in this manner, stealing more than $715,000 in total.
“Ms. Casilla abused the trust of her employer to line her own pockets,” said United States Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who commit financial fraud, and to strengthen our communities by protecting our local businesses.”
“Ms. Casilla was a trusted employee and used her access to steal over $700,000 from her employer.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Additionally, she committed and hid her fraud for over three years. This guilty plea is the first step to restoring the victims and reinforcing accountability for those who violate trust.”
The charges to which Casilla pled carries a maximum sentence of up to 20 years in federal prison. This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting the case on behalf of the United States.
United States v. Casilla, Case No: 2-23-CR-00085-TOR
Spokane Man Sentenced to 20 Years in Federal Prison for Drug TraffickingRead the Press Release
Spokane Washington - Today, United States District Judge Thomas O. Rice sentenced Jody Lee Wallette, 36, of Spokane, Washington, to 20 years in federal prison for Distribution of 50 Grams or More of Actual (Pure) Methamphetamine. U.S. District Judge Rice also ordered Wallette to serve 5 years of supervised release following his release from prison. In pronouncing sentence Judge Rice told Wallette, “Your distribution of fentanyl and methamphetamine kills people. The amount of drugs you had was atrocious.”
According to court documents, in January of 2023, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Drug Enforcement Administration (DEA) developed information that Wallette was selling fentanyl-laced pills and methamphetamine and was in possession of a gallon-size bag of fentanyl pills. A confidential informant was subsequently utilized to conduct two audio and video recorded controlled buys of methamphetamine and fentanyl pills from Wallette in January and February 2023. During the January 2023 controlled buy, Wallette was captured on video holding a very large bag of crystal methamphetamine (below) in addition to the pound of methamphetamine he sold that day.
In March of 2023, Wallette was federally indicted by a Grand Jury and a warrant was issued for his arrest. A short time later, Wallette was contacted during a traffic stop and arrested. During a search of Wallette’s vehicle, agents located several hundred more fentanyl-laced pills, methamphetamine, cocaine, a loaded firearm, multiple rounds of miscellaneous ammunition, body armor, several cellphones and more than $4,500 in cash. Also located in Wallette’s vehicle was information pertaining to Randy Coy James Holmes regarding the investigation into the shooting of an ATF agent in Spokane and discussing the identity of a suspected confidential informant in that case.
The ATF and DEA also executed a search warrant at Wallette’s storage unit where they seized additional methamphetamine as well as numerous rounds of ammunition.
According to court documents, Wallette is a multiple-time convicted felon, and in fact, qualifies as a federal “Career Offender” based on several prior significant drug trafficking convictions.
“Mr. Wallette brought dangerous drugs into our community that put our neighborhoods at risk, stated U.S. Attorney Vanessa Waldref. “I am grateful for the efforts of our law enforcement partners to identify Mr. Wallette’s repeated drug trafficking activities, to prevent him from further distributing this poison, and to protect our families from drug-related violence.”
At sentencing, Assistant United States Attorney Caitlin Baunsgard stated, “Mr. Wallette’s conduct was egregious. This was not a one-time instance. Mr. Wallette’s drug trafficking and violent conduct occurred over the past 20 years.”
“Mr. Wallette knew his actions endangered our community and this sentence reflects that danger,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “Firearms, fentanyl and methamphetamine are a losing combination that only harms society as a whole.”
“Drug crime and gun violence too often go together, so I am gratified by our partnership with ATF and other law enforcement agencies as we confront this threat together,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “This case is another example of our unified resolve to keep our community safe from drug poison and gun violence.”
The case was investigated by the ATF and DEA Spokane Task Force consisting of DEA, HSI, USCBP and BIA. This case was prosecuted by Assistant United States Attorneys Caitlin Baunsgard and Stephanie Van Marter.
Toppenish Man Sentenced to 8 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
Yakima, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that Robert Ray Root, age 54, of Toppenish, Washington has been sentenced after pleading guilty to Receipt and Distribution of Child Pornography. Chief United States District Judge Stanley A. Bastian imposed a sentence of 96 months imprisonment to be followed by 10 years of supervised release. Root was also ordered to pay a total of $21,000 in restitution to 7 individual victims of his conduct.
According to court documents, Root had been downloading and sharing child pornography with others online for approximately 30 years when an undercover federal agent downloaded child pornography files from Root in October and November of 2021. In January 2022, agents executed a search warrant at Root’s home and seized several electronic devices, including a computer with thousands of child pornography images and more than 100 videos. In addition to admitting the decades’ long interest in and trading of child pornography, Root also admitted to investigators that he had sexually abused a young girl several years earlier.
“Mr. Root spent decades victimizing the most vulnerable among us,” said U.S. Attorney Vanessa R. Waldref. “Protecting children from harm remains a priority of my office and is critical to building a safe and strong Eastern Washington community. I am deeply grateful for the work of Homeland Security Investigations, our local partners, and the Internet Crimes Against Children Task Force, for pursuing those who use technology to exploit our children.”
“Sentences such as this highlight the importance our law enforcement partnerships bring to stopping the scourge of violence against children,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “In this case, our joint efforts stopped decades of exploitation and saved the childhoods of unknown future victims from the lifelong effects of trauma.”
“Having a dedicated southeast regional ICAC task force, in our own backyard, with a great partnership including a Richland PD sergeant and detective at work to bring individuals like Mr. Root to justice, is truly an amazing feat,” said interim Chief for the Richland Police Department, David Neher. “Each member of the ICAC team serves a remarkably crucial role in putting away individuals who have infiltrated our community and taken the innocence of our youth. This sentencing is one we can be proud of, and in the end, it’s the ‘why’ behind what we do every day.”
This case was investigated by Homeland Security Investigations with the assistance of the Yakima Police Department and the Southeast Regional ICAC Task Force, consisting of Richland and Kennewick Police Departments. This case was prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
United States Attorney’s Office Honors Native American Heritage Month and Participates in Second Annual Washington State Missing and Murdered Indigenous Women and People SummitRead the Press Release
Spokane and Yakima, Washington – Each year in November, communities across the United States celebrate National Native American Heritage Month. During this time, the Department of Justice also acknowledges the tremendous contributions of Native American communities to the United States, including those who work hard each day to support DOJ’s mission. In honoring our Tribal nations and heritage, we also remember the federal government’s trust and treaty responsibilities and obligations to strengthening Tribal sovereignty.
Earlier this week, U.S. Attorney Vanessa R. Waldref and her First Assistant, Richard Barker, joined Federal, State, and Tribal law enforcement, community leaders, other stakeholders, and victims at the Washington State Missing and Murdered Indigenous Women and People Task Force’s Second Annual Summit. During the Summit, U.S. Attorney Waldref addressed the group and provided an update on federal efforts to address the MMIWP crisis. “I want to thank the incredible leaders and community stakeholders who support the victims and families of this ongoing crisis,” U.S. Attorney Waldref stated. “As a result of your collective voices, federal, state, and Tribal governments are devoting significant resources to addressing the root causes that have led to increased numbers of missing and murdered indigenous women and people. We can honor Native American Heritage Month by recommitting to address the root causes underlying this crisis: fentanyl, domestic violence, child abuse, illegal possession and use of firearms, illegal narcotics, and human trafficking. Our communities are safer and stronger as we join together to seek justice on behalf of those affected by this tragic crisis.”
First Assistant United States Attorney Barker, participated on a panel with representatives from the Washington State Patrol, FBI, Tribal law enforcement, and the Washington Association of Sheriffs and Police Chiefs. Following the conference, First Assistant Barker reiterated the need for prosecutors and law enforcement to build trust with marginalized communities: “Federal, State, and Tribal law enforcement must not only work together to improve public safety in Tribal Nations, we must work together to earn the community’s trust. Although it will take time, we can earn community members’ trust by actively participating in community events, attending listening sessions, engaging with victims, supporting law enforcement, and honoring Tribal culture and tradition.”
More information on Native American Heritage Month is available at https://www.nativeamericanheritagemonth.gov/. Additional information regarding the Washington State Missing and Murdered Indigenous Women and People Task Force is available at https://www.atg.wa.gov/washington-state-missing-and-murdered-indigenous-women-and-people-task-force.
Department of Justice Awards More Than $1.7 Million to Support Public Safety in Eastern WashingtonRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced multiple Office of Community Oriented Policing Services (COPS Office) grant awards, totaling more than $1.7 million for the counties in Eastern Washington.
In total, COPS awarded more than $334 million to support state, local, and Tribal public safety and community justice activities. The grants announced today include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide.
The grants awarded in the Eastern District of Washington are as follows:
Recipient
Grant Title
Award Amount
Washington State University
Supporting Law Enforcement Agencies in Seeking Accreditation
$133,178
Confederated Tribes of the Colville Reservation
Equipment and Training Award
$827,661
Eastern Washington University
2023 COPS Hiring Program (CHP) Awards
2 Officers – $250,000
Soap Lake
2023 COPS Hiring Program (CHP) Awards
1 Officer – $125,000
City of Kennewick
Law Enforcement Mental Health and Wellness Act Implementation Projects
$129,173
Republic School District
School Violence Prevention Program
$244,026
“Local law enforcement is a crucial component of our mission to make and keep the communities of Eastern Washington safe and strong,” said United States Attorney Vanessa R. Waldref. I am pleased these funds will be used give critical support to the work law enforcement is doing on our streets and schools. These awards will support communities, schools, and universities in both urban and rural areas in our district. I am grateful that funding also is being devoted to improving public safety in our Native American communities and elsewhere.”
“Law enforcement officers across the country are showing up every day to protect their communities in the face of unprecedented challenges,” said Attorney General Merrick B. Garland. “These grants, which support the hiring of more than 1700 new officers and make critical investments in school safety and crisis intervention efforts, will help provide local law enforcement agencies with the resources they need to keep their communities safe, support officers, and build public trust.”
Complete lists of all program award recipients, including funding amounts, can be found here.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
Grand Coulee Man Sentenced to 5 Years in Prison for Violent Assault Against Partner, Tribal EldersRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Xander Lee Ostenberg, 18, of Grand Coulee, Washington was sentenced after having pleaded guilty to Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner in Indian Country. Ostenberg also pleaded guilty to two counts of Assault by Beating, Striking or Wounding. U.S. District Judge Thomas O. Rice sentenced Ostenberg to 60 months in prison, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to court documents, in early February 2023, Ostenberg and his partner began fighting in the bedroom of their residence on the Kalispel reservation. Ostenberg’s partner began screaming and her grandfather and family friend rushed to her aid. Then, Ostenberg hit the grandfather in the head causing him to fall to the ground and lose consciousness. Ostenberg subsequently turned to attack the family friend, knocking him to the ground, pulled out some of his hair, and began choking him. The family friend was eventually able to break free. At that point, Ostenberg dragged his partner out of the house, hit her, and put her in his vehicle. Later that day, Pend Orielle Sheriff’s Deputies located Ostenberg’s truck, pulled it over and detained him. Ostenberg’s partner was bleeding around her lips and nose, she also had bruises on her face and body. She confirmed to deputies that the injuries were from Ostenberg assaulting her.
U.S. District Judge Rice imposed the sentence based on the victim impact statements and aggressive nature of the offense.
U.S. Attorney Waldref stated, “My heart goes out to the victims in this case. No one should have to live in fear of violence in their home from a domestic partner or spouse. My office is committed to working closely with our federal, state, local and tribal law enforcement agencies to ensure Native American women and families are protected from this kind of violence and trauma.”
“Addressing violent crime is a priority for the Kalispel Tribe. We are thankful for the partnership between the Kalispel Tribal Police Department, the FBI and the U.S. Attorney's Office,” stated Kalispel Tribal Vice Chair Curt Holmes. “We stand committed to vigorously pursuing prosecution for people who commit crimes on our Reservation; especially crimes against our women and vulnerable people.”
“Mr. Ostenberg’s youth cannot be used as an excuse for his violent actions.” said Richard A. Collodi, Special Agent in Charge or the FBI’s Seattle field office. “While he has time to reflect on the choices he made which led to this prison sentence, his actions impacted the lives of multiple victims. Addressing violence on our state’s reservations remains a priority for the FBI and our partners across Washington.”
This case was investigated by the Kalispel Tribal Police, Colville Tribal Police Department, Pend Oreille County Sheriff’s Department and the Federal Bureau of Investigation. The case was prosecuted by Richard R. Barker, First Assistant United States Attorney for the Eastern District of Washington and Michael Vander Giessen, Assistant United States Attorney for the Eastern District of Washington.
2:2023-cr-00031-TOR
Felon Found with Almost a Dozen Firearms, Sentenced to 7 Years in PrisonRead the Press Release
Spokane, Washington. - United States District Judge Thomas O. Rice sentenced Zachary Wade Bennett, 41, of Spokane Valley, to 84 months in federal prison for Felon in Possession of a Firearm. United States District Judge Rice also imposed 3 years of federal supervision upon Bennett’s release from custody.
According to court documents, In September of 2020, Spokane County Sheriff’s detectives developed information that Bennett, who is a convicted felon, was dealing drugs and was in possession of a large number of weapons. During the execution of a search warrant at his home, Deputies found Bennett hiding in the attic. Bennett told deputies he did not respond to law enforcement at his house the night before the search warrant because he knew he would go to jail. He also told deputies he did not believe there were guns in the house. During a search of home, deputies found 10 guns, including three AR-15 rifles, boxes of ammo, drug paraphernalia, ledgers detailing his drug distribution operations, heroin and hallucinogenic mushrooms.
Bennett had previously been convicted for burglary, first degree and robbery, second degree in Spokane County Superior Court.
“I commend the work of our law enforcement partners who work to prevent violent crime by ensuring that repeat offenders like Mr. Bennett do not stockpile firearms and ammunition.” Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington stated. “Our community is safer and stronger today, because of the excellent work of the prosecutors and investigators in this case.”
“Drug dealing and stolen firearms in the hands of a convicted felon are a dangerous combination for the community,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “This sentence demonstrates that these types of actions will be investigated and prosecuted to the fullest extent of the law.”
This case was investigated by the Spokane County Sheriff’s Office, the Federal Bureau of Investigation Spokane Regional Safe Streets Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Patrick J. Cashman.
United States Attorney’s Office, Drug Enforcement Administration, and Spokane Police Department Announce Drug Take Back DayRead the Press Release
SPOKANE, WASHINGTON – The Drug Enforcement Administration has announced the date of its National Prescription Drug Take Back Day. On Saturday, October 28, DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs.
For more than a decade, DEA’s National Prescription Drug Take Back Day has helped Americans easily rid their homes of unneeded medications – those that are old, unwanted, or expired – that too often become a gateway to addiction.
Take Back Day offers free and anonymous disposal of unneeded medications at more than 4,000 local drop-off locations nationwide.
What: National Prescription Drug Take Back Day
When: Saturday, October 28th from 10 a.m. to 2 p.m.
Who: United States Attorney’s Office, Drug Enforcement Administration, and Spokane Police Department
Where: NorthTown Mall, 4750 North Division Spokane, WA 99207
(Northwest parking area)In partnership with local law enforcement, Take Back Day has removed more than 8,300 tons of medication from circulation since its inception.
Collection sites will not accept syringes, sharps, and illicit drugs. Liquid products, such as cough syrup, should remain sealed in their original container. The cap must be tightly sealed to prevent leakage.
“We have all witnessed the ravaging effects of the opioid epidemic in our region, and we are encouraged by the proactive efforts members of our communities are taking to prevent prescription drug misuse and addiction. This will make Eastern Washington safer and stronger,” U.S. Attorney Waldref stated. “We are honored to partner with the DEA, Spokane Police, the Spokane County Sheriff’s Office, and the Spokane Fire Department for this important event.”
“DEA is committed to protecting the communities we serve, and one way we do this is by collecting unused and unneeded prescription medications,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “Too often, substance misuse starts when young people take drugs they do not need from their parent’s or grandparent’s medicine cabinet. National Prescription Take Back Day is an easy way that you can help protect our communities and our families from substance misuse.”
“As overdose deaths and misuse of drugs continue to destroy lives, including families and loved ones, we as a community need to address this at every level. Drug Take Back Day is one of multiple efforts SPD collaborates with the DEA and the U.S. Attorney’s Office. Turning in unused, unwanted or dangerous drugs to be safely disposed of helps keep our family and loved ones safer. We hope the community takes advantage of this opportunity.”
For more information and to find a collection site near you, visit www.DEATakeBack.com.
Domestic Abuser Sentenced to 4 Years in Federal Prison for Firearm OffenseRead the Press Release
Spokane, Wash – United States District Judge Mary K. Dimke sentenced Michael Brian Ross, age 41, of Spokane, Washington to 4 years in federal prison after Ross pleaded guilty to being a Felon in Possession of a Firearm. Ross will also serve 3 years of supervised release after his release from confinement.
According to court documents, On February 8th, 2023, officers with the Department of Corrections (DOC) detained Ross on a DOC warrant issued for his failure to report. DOC officers then received permission to search Ross’s truck. Inside, they spotted what appeared to be a gun stashed under the dash. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were contacted and searched the truck. They removed a loaded 9mm caliber semi-automatic pistol.
At the time he was detained, Ross had three convictions for crimes that qualify for federal felonies, including, one count Second Degree Assault (Domestic Violence), First Degree Burglary, and seven counts of Possession of a Stolen Firearm.
This sentencing is part of the Eastern District of Washington’s Safe Homes, Safe Community initiative in Spokane, which is designed to help communities implement promising practices to protect domestic violence survivors by preventing abusers from having unlawful access to firearms in situations that are already dangerous for survivors.
“The unlawful possession of firearms by domestic violence abusers is too often deadly for victims of intimate partner violence and lethal for law enforcement officers responding to emergency calls,” U.S. Attorney Vanessa R. Waldref stated. “The Safe Homes, Safe Community initiative is making important progress in keeping firearms out of the hands of domestic abusers and in making our neighborhoods safe and strong.”
“With multiple qualifying felony convictions, Mr. Ross clearly knew he was not supposed to possess firearms, yet he did so anyway,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “This is a well-earned sentence and one from which he will hopefully change his ways upon release.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Washington State Department of Corrections. This case was prosecuted by Michael J. Ellis, Assistant United States Attorney for the Eastern District of Washington, and Michael L. Vander Giessen, Assistant United States Attorney for the Eastern District of Washington.
Domestic violence is a serious crime that can include both physical and emotional abuse, and it is frequently hidden from public view. Many survivors suffer in silence, afraid to seek help or not knowing where to turn. The traumatic effects of domestic violence also extend beyond the abused person, impacting family members, friends, and communities.
If you or someone you know are in immediate danger, please call 911.
If you need assistance or know someone who needs help, please contact the National Domestic Violence Hotline at 1-800-799-SAFE (7233). Many communities throughout the country have also created support networks to assist survivors in the process of recovery.
2:23-CR-0021-MKD
U.S. Attorney’s Eastern Washington COVID-19 Strike Force Announces Indictment of Spokane Valley Couple in Connection with Fraudulent COVID Relief LoanRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that a federal grand jury has indicted a Spokane Valley couple for fraud in connection with COVID-19 relief funding. The Indictment is the most recent announced by the Eastern Washington COVID-19 Strike Force, which has brought criminal charges against numerous individuals and recovered millions of dollars in fraudulently obtained COVID relief funding.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The EIDL program have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
The Indictment announced today charges Raymond and Jennifer Hilderbrand, ages 53 and 52, of Spokane Valley, Washington, with eight counts of fraud in connection with a fraudulently-obtained EIDL loan. The Indictment alleges that Raymond Hilderbrand applied for and received $363,000 in EIDL funding on behalf of his company, Hilderbrand Auto Service, with the intent to defraud, steal, and convert the proceeds of the EIDL loan for the couple’s use in Powerline Enterprise LLC, a purported business that was not eligible to receive EIDL funding. The Indictment also alleges that Defendant Jennifer Hilderbrand made false and fraudulent representations on an application for EIDL funding on behalf of Powerline Enterprise LLC, a purported business that was not eligible to receive EIDL funding. The SBA denied that application.
“We created the Eastern Washington COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington, stated U.S. Attorney Waldref. “My Office will continue to lead the effort to prosecute those who stole money intended for those in legitimate need.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Department of Homeland Security (DHS) OIG, Internal Revenue Service, Department of Energy OIG, and others.
The fraud charges carry sentences of up to 20 years in federal prison as well as restitution for fraudulently-obtained funds. This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force and by TIGTA, SBA OIG, and IRS-CI. This case is being prosecuted by Assistant United States Attorneys Frieda K. Zimmerman and Jeremy J. Kelley.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
White Swan Man Sentenced to 10 Years in Prison for Sexual Abuse of a Young GirlRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Charlie Jim Peters, age 35, of White Swan, Washington was sentenced after pleading guilty to one count of Sexual Abuse. Chief United States District Judge Stanley A. Bastian imposed a sentence of 120 months imprisonment to be followed by five years of supervised release and sex offender registration.
According to Court documents, on or about July 12, 2020, on the Yakama Nation reservation, Peters molested a sixteen-year-old victim while the victim was asleep inside a camper van. DNA analysis later confirmed Peter’s DNA from a sample recovered from the crime scene.
U.S. Attorney Vanessa R. Waldref for the Eastern District of Washington commended the efforts of the FBI Agents, Yakama Nation Police Officers and Yakima County Sheriff’s Deputies which led to this case: “Our hearts go out to the victim and the victim’s family. No sentence can undo the emotional trauma the victim suffered in this case. I am grateful for the investigative efforts that identified Mr. Peters and for the agents and prosecutors who devote their careers to this challenging, but most important work.”
“Mr. Peters will fortunately spend the next ten years in prison.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “While no sentence may seem long enough to a victim of his reprehensible actions, I commend her for taking the steps necessary which ultimately led to this sentence. The FBI and our partners are committed to making our state’s reservations safer for the citizens who call them home.”
This case was investigated by the Federal Bureau of Investigation and the Yakama Nation Police Department. The case was prosecuted by Michael Murphy, Assistant U.S. Attorney for the Eastern District of Washington.
1:20-CR-02046-SAB
Corrections Officer Sentenced to 5 Years in Prison for Drug TraffickingRead the Press Release
Richland, Washington – United States District Judge Mary K. Dimke sentenced Leticia Rodriguez,44, to 60 months in federal prison after her guilty plea to Conspiracy to Distribute 50 Grams or More of Actual (Pure) Methamphetamine, 400 Grams or More of Fentanyl, and 5 Kilograms or More of Cocaine. Rodriguez also will serve 5 years of federal supervision after she is released from federal custody.
According to information disclosed in court documents and proceedings, Rodriguez was part of a large drug trafficking organization that involved a legitimate landscaping business to cover up the organizations drug trafficking activities. Investigators developed information that Rodriguez would act a courier for cocaine, fentanyl, and methamphetamine as well large amounts of money between Eastern Washington, Arizona and California. She was arrested at the Walla Walla State Penitentiary, where she worked as a corrections officer.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, stated, “Ms. Rodriguez violated the trust of the public she had been sworn to serve. Her criminal conduct undermines the respect many of our law enforcement officials earn on a day-today basis. Our community must remain confident that no one is above the law.”
“This case demonstrates how corrosive drug trafficking, and specifically fentanyl, has become in society. This makes DEA and our federal, state and local partners’ obligation to confront its corrupting influence on our communities even more vital,” said Ronald A.Deist, Assistant Special Agent in Charge, DEA Spokane District Office.
This case was investigated by the DEA Drug Task Force, USCBP, Walla Walla Federal Penitentiary, Walla Walla Police Department, Metro Drug Task Force, and the Milton-Freewater Police Department. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter.
4:21-CR-06028-MKD-7
Man Sentenced to 51 Months in Federal Prison for Selling Fentanyl Linked to Overdose DeathRead the Press Release
Richland, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Ron Montgomery, age 43, of Richland has been sentenced after pleading guilty to conspiracy to distribute fentanyl. Senior United States District Court Judge Edward F. Shea imposed a sentence of 51 months in federal custody followed by five years of supervised release.
According to information disclosed during court proceedings, investigators were led to Montgomery, following the death of a man in July of 2018 from a fentanyl overdose. Montgomery, along with Christopher West, who was sentenced in March, were identified as being responsible for selling the pills to the man that died. During the next several months, investigators conducted surveillance on Montgomery and witnessed hundreds of quick visits to his residences, indicative of ongoing drug distribution. A search warrant was ultimately executed at Montgomery’s residence where fentanyl laced pills, firearms and other evidence of distribution were located.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington stated, “Fentanyl is the deadliest drug threat facing our great nation. The sentence imposed sends a stern warning to those who may seek to distribute this poison in our community that they will face significant consequences. The Eastern District of Washington is safer and stronger today as a result of the incredible partnership of our law enforcement agencies, who came together to investigate and successfully prosecute this important and tragic case.”
"Mr. Montgomery distributed dangerous drugs into his own community for years." said Richard A. Collodi, Special Agent in Charge of the FBI's Seattle field office. "While we have taken one drug dealer off the streets, the FBI and our partners will continue working to provide safer neighborhoods for the citizens we've sworn to protect."
This case was investigated by the Benton County Sheriff’s Office and the FBI’s Southeast Washington Safe Streets Task Force which includes additional officers and detectives from the Kennewick Police Department, Pasco Police Department, Richland Police Department, Border Patrol and Department of Corrections. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter.
4:20-CR-06003-SMJ
Department of Justice Announces More than $2 Million in Federal Funding for Washington State Patrol DNA Capacity EnhancementRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, today announced a Department of Justice grant award for Washington State Patrol’s Crime Laboratory Division. The grant allocates $2,245,651 to increase DNA casework and to reduce the current turnaround time for DNA processing.
The Washington State Patrol Crime Laboratory Division (WSPCLD) is the established public provider of forensic DNA and DNA database services in Washington State. There are 5 existing casework DNA laboratories in the WSPCLD, which provide forensic DNA casework services for the entire state of Washington. The WSPCLD also has an existing Combined DNA Index System (CODIS) database laboratory, which is a computer software program that operates local, state, and national databases of DNA profiles from convicted offenders, unsolved crime scene evidence, and missing persons.
The expected outcomes of this grant are to increase WSPCLD’s capacity to meet the steady rise of submissions, reduce the backlog of samples needing testing, and grow the CODIS database of DNA profiles from crime scene and database samples. These activities will result in more timely investigative leads for law enforcement agencies to aid criminal investigations and increase public safety.
In announcing this award, U.S. Attorney Waldref stated, “It is critical that we work together – with our state and local law enforcement partners – to address the growing need for DNA casework.” She continued, “This award will fund critical services to better assist with DNA processing and support my office’s mission to seek justice on behalf of all citizens in Eastern Washington. The Washington State Patrol’s crime lab has been an invaluable partner, especially in federal cases arising on Tribal land. Thanks to their incredible work, we have prosecuted a number of cases that would not have been possible without the work by WSP’s professional forensic analysts.”
Additional information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at https://www.ojp.gov. Information regarding the Department of Justice’s Office on Violence against Women is available at https://www.justice.gov/ovw.
Department of Justice Announces $650,000 in Federal Funding for Mentoring Youth Affected by Opioid and Other Substance Misuse in Yakima CountyRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, today announced a Department of Justice grant award for the Safe Yakima Valley’s Youth Mentoring Program. This grant allocates $650,000 to expand their mentoring program and provide substance misuse awareness training.
The 2021 Washington State Healthy Youth Survey indicates that Yakima County youth use alcohol and marijuana at higher rates than statewide counterparts (21% v. 18%) constituting a
61.5% increase over a three-year period. We can expect that, without preventative actions such as mentoring, substance use rates will rise further. Safe Yakima Valley’s Youth Mentoring Program will mitigate the harmful impact of individual and family substance misuse.
Pursuant to the grant award, six program objectives will be tracked: 1) Expanding and enhancing Safe Yakima Valley’s Youth Mentoring Program with Elements of Effective Practice for Mentoring, 2) Developing 300 positive adult role models with a high degree of mentor competency, established through successful completion of mentor training, 3) Providing substance misuse awareness training to 300 adult mentors, 4) Initiating direct one-on-one mentoring for 300 target youth for a minimum of 39 contact hours over a 12-month minimum match period, 5) Providing 10 hours of “Keepin’ it REAL” drug-prevention training to 300 target youth, and 6) holding 18 mentee-family engagement events.
In announcing this award, U.S. Attorney Waldref stated, “Our office is committed to reducing tragic substance misuse, especially when it affects those who are most vulnerable in our district. We all are alarmed at the increased rates in substance abuse by today’s youth, and we must take action. Youth mentoring programs like this one allow federal, state, local, and Tribal community leaders an outlet to provide youth in need with information to prevent substance misuse and make Eastern Washington safer and stronger.”
Additional information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at https://www.ojp.gov. Information regarding the Department of Justice’s Office on Violence against Women is available at https://www.justice.gov/ovw
U.S. Attorney’s Office for the Eastern District of Washington Observes Domestic Violence Awareness MonthRead the Press Release
Spokane, WA – October marks the observance of Domestic Violence Awareness Month. U.S. Attorney for the Eastern District of Washington, Vanessa R. Waldref, joins the U.S. Department of Justice in commemorating Domestic Violence Awareness Month, paying tribute to victims and survivors, and saluting the dedication of advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work in support of survivors.
Domestic violence, dating violence, and intimate partner violence can have long-lasting impacts and consequences. Approximately one in four women and one in seven men will experience severe domestic violence in their lifetimes; however, rates are disproportionately higher for
American Indian and Alaska Native populations, women of Color, lesbian, gay, bisexual, transgender, queer, intersex, and two-spirit people, and people with disabilities. Domestic Violence Awareness Month provides an opportunity to spread awareness about domestic violence and encourage everyone to play a role in ending gender-based violence.
A crucial part of combatting domestic violence and reducing violent crimes includes enforcing federal firearm prohibitions. Domestic violence abusers with access to a gun are five times more likely to kill their partners. In addition to their lethality, firearms are used by abusers to inflict fear, intimidation, and coercive control. Under federal law, people with domestic violence misdemeanor and felony convictions and those subject to domestic violence protective orders are prohibited from purchasing or possessing firearms.
In October 2022, U.S. Attorney Waldref announced her office’s Safe Homes and Safe Community Initiative to prevent domestic violence homicides and prevent abusers who have previously been convicted of domestic violence offenses from having access to firearms. Working with the Yakima Police Department, Yakima County Prosecutor’s Office, Spokane Police Department, and Spokane County Prosecutor’s Office, the U.S. Attorney’s Office to target individuals who were identified as repeat domestic violence abusers in possession of firearms. Data shows that offenders with a history of domestic violence pose a high risk of homicide to their family members. Indeed, domestic violence offenders with a gun in the home are five times more likely to kill their partners than other offenders.
“Everyone deserves to live in a safe home free of domestic violence,” said U.S. Attorney Waldref. “Federal prosecutors witness the devastating impacts of domestic violence on the lives of victims and their families, who may endure long-term trauma and are at increased risk for returning to abusive relationships. Here in the Eastern District of Washington, my Office is committed to use all the tools at our disposal—including leveraging our partnerships with local law enforcement and local prosecutors—to ensure victims have a viable path to safety and justice.”
Several cases have already been charged in Safe Homes, Safe Community. Some examples include:
- United States v. James Duane Deckard, 1:22-cr-02066-MKD: Sentenced to 48 months in March 2023 for being an Unlawful User of Controlled Substances and Person Convicted of Domestic Violence in Possession of a Firearm and Ammunition, in connection with pointing a firearm at his intimate partner during a domestic dispute;
- United States v. Frederick Terrell, 2:22-cr-00138-RMP: Sentenced to 51 months in June 2023 for being a Felon in Possession of a Firearm, in connection with sending his domestic partner a series of threating videos of himself firing a pistol;
- United States v. Daniel Parks Conant, 2:23-cr-00057: Indicted in May 2023, for possessing a firearm after being convicted of domestic abuse on the Colville Indian Reservation in February 2021.
U.S. Attorney Waldref continued, “Right here in Eastern Washington my Office’s Safe Home Safe Community Initiative focuses on curbing gun violence by removing firearms unlawfully possessed by individuals with a track record of violent crime and domestic violence – these efforts protect victims, law enforcement, and the entire community.”
Video Message: https://www.youtube.com/watch?v=zRNct8hfuxw
U.S. Attorney Waldref continued, “Right here in Eastern Washington my Office’s Safe Home Safe Community Initiative focuses on curbing gun violence by removing firearms unlawfully possessed by individuals with a track record of violent crime and domestic violence – these efforts protect victims, law enforcement, and the entire community.”
Facing domestic violence? Find support in your state through @OVWJustice's Local Resources: https://www.justice.gov/ovw/local-resources
Immediate help for domestic violence victims: Call the National Domestic Violence Hotline (@ndvhofficial) at 1-800-799-7233 or Strong Hearts Native Helpline (@strongheartsdv) at 1-844-762-8483. #DVAM2023
Brothers Each Sentenced to 12 Years in Federal Prison for Trafficking 50 pounds of Methamphetamine and 50,000 Fentanyl Laced PillsRead the Press Release
Yakima, Washington – On October 17th, Chief United States District Judge Stanley A. Bastian sentenced brothers Carlos Reyes-Santana, 28, of Pasco, Washington and Eduardo Reyes-Santana, 26 of Kennewick, Washington to 12 years in federal prison for possession with intent to distribute 500 grams or more of methamphetamine. They will also serve 5 years on supervised release.
According to information disclosed during court proceedings, the brothers had been under FBI surveillance because of their ties to a drug operation based in Mexico that is run by their uncle.
During the investigation, the defendants were observed making what appeared to be drug deliveries over the course of several months.
In May of 2021, agents executed several search warrants in connection to the investigation.
While searching Carlos’ home, agents discovered approximately 52 pounds of methamphetamine, approximately 1 pound of cocaine, approximately 50,000 fentanyl laced pills, approximately 3.5 kilograms of heroin and $420,000 in cash. During a search of Eduardo’s home, agents found 5 five firearms as well as thousands of rounds of ammunition.
On the same day, agents executed a search warrant at a storage unit in Pasco. Agents found 7 kilograms of cocaine, 1 pound of methamphetamine, 50 fentanyl laced pills and more than $70,000 in cash.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington stated, “These defendants were responsible for injecting a massive amount of fentanyl and other deadly drugs into our neighborhoods. My office is committed to tackling the opioid crisis by holding individuals accountable who pedal this poison and working closely with our law enforcement partners to seize these dangerous narcotics from our streets to save lives in our communities.”
“Tragically, this family-operated drug trafficking network was distributing poisons which destroy families and communities,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “The FBI, along with our partners, are committed to removing these illegal drugs from Washington state and the path of addiction, violence, suffering, and overdoses that accompanies them.”
This case was investigated by the FBI’s Southeast Washington Safe Streets Task Force. The task force was assisted by multiple local law enforcement entities, including the Benton County Sheriff’s Office, Richland Police Department, Kennewick Police Department, Pasco Police Department, West Richland Police Department, Franklin County Sheriff’s Office, the Tri-Cities Metro Drug Task Force, and the Washington State Department of Corrections. The Drug Enforcement Administration and the United States Border Patrol also provided assistance.
This case was prosecuted by Assistant United States Attorney Caitlin Baunsguard and Patrick J. Cashman.
4:2021-cr-06022-SAB
Wenatchee Man Sentenced to 12 Years in Federal Prison for Distributing Child Pornography on the “Dark Web”Read the Press Release
Spokane, Washington – On October 11, 2023, U.S. District Judge Thomas O. Rice sentenced Michael Luis Ibarra, 36, of Wenatchee, Washington, to 12 years in federal prison for distributing images of child pornography on the “Dark Web.” Judge Rice also ordered Ibarra to serve the remainder of his life on federal supervision after he is released from prison. Ibarra was also ordered to pay a total of $114,000 in restitution to 38 individual victims of his conduct.
In January of 2021, Ibarra was identified as a user of a website on the “Dark Web” dedicated to the distribution of child pornography. Ibarra was commended at one point by website administrators for distributing a “herculean” quantity of child pornography. Ibarra communicated with undercover federal agents in chat rooms and shared with them child pornography on several occasions.
Ibarra’s electronic devices were seized at his home in Wenatchee and searched by the Federal Bureau of Investigation. Agents found more than fifteen thousand child pornography files, with more than five thousand files depicting the sexual abuse of infants and toddlers.
“The FBI and the United States Attorney’s Office stand ready to respond with thorough investigations, vigorous prosecutions, and significant sentences for anyone who abuses children,” said Vanessa R. Waldref, United States Attorney for the Eastern District. “No sentence can give these children back their innocence; however, our community is safer with Mr. Ibarra behind bars. Today’s sentence sends a clear message to those who seek to victimize children, whether behind closed doors, through the dark web, or computer screens: the U.S. Attorney’s Office and our partners will continue to work tirelessly to seek justice, and the consequences of exploiting children will be severe.”
“Mr. Ibarra may have believed the Dark Web afforded him a level of protection from law enforcement” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Thanks to the dedication of our investigators, we were able to bring his reprehensible activities to an end. The FBI and our partners will continue the work of protecting the most vulnerable of our citizens.”This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Michael J. Ellis, Assistant U.S. Attorney for the Eastern District of Washington, and Kyle P. Reynolds, Trial Attorney for the Child Exploitation and Obscenity Section of the United States Department of Justice Criminal Division.
2:21-CR-00173-TORGrant County Man Sentenced to More Than 22 Years for Production and Attempted Production of Child PornographyRead the Press Release
Spokane, WA – On October 11, 2023, U.S. District Judge Thomas O. Rice sentenced Michael Gene Rice, 49, of Soap Lake, Washington, to 264 months and 27 days in federal prison for Production and Attempted Production of Child Pornography. Defendant Rice pleaded guilty on July 13, 2023. Judge Rice also ordered Defendant Rice to pay $48,000 in restitution to his victim and be federally supervised for the rest of his life after being released from custody.
According to court documents and proceedings, Rice was apprehended after an 11-year-old girl disclosed that Rice directed her to record herself on a phone engaging in sexually explicit conduct. The recorded footage was later found in Rice’s iCloud account. The Grant County Prosecutor’s Office successfully prosecuted Rice on charges of First Degree Dealing in and Possession of Child Pornography, resulting in guilty verdicts after a jury trial. Sentencing is pending in that case.
Rice previously was convicted of Rape of a Child in the First Degree in 2002, for which he received a suspended sentence. The victim in that case was also 11 years old.
Combined with the time Rice spent in state custody prior to appearing in federal court – 338 days, the federal sentence results in confinement of Rice for a total 23 years. “Protecting our children is a top priority of my office,” U.S. Attorney Vanessa Waldref said. “Mr. Rice repeatedly engaged in harmful conduct taking advantage of our youth in the Eastern District of Washington. With our strong partnership with state and local law enforcement and prosecutors, we were able to successfully remove Mr. Rice from the streets and prevent him from further victimizing the most vulnerable among us.”
“Grant County is a safer place after this significant sentencing,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations operations in the Pacific Northwest. “HSI and our law enforcement partners are relentless in protecting the children of our communities and this result should serve as a warning to others that seek to target our children.”
This case was investigated by Homeland Security Investigations and the Grant County Sheriff’s Office and prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington. The Grant County case is being handled by Deputy Prosecuting Attorney Carlee Bittle, who is also a Special Assistant United States Attorney.
2:23-CR-23-TORFormer Spokane Resident Indicted by Grand Jury for Cryptocurrency Investment ScamRead the Press Release
Spokane, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a grand jury returned an Indictment charging Michael Joseph McElhiney, age 37, formerly of Spokane, Washington, with thirty-three counts of fraud in connection with running a cryptocurrency investment scam theft that defrauded investors of more than $350,000 between March 2021 and September 2022.
The Indictment alleges that McElhiney defrauded investors by pretending to operate a cryptocurrency investment fund known as MAC Blockchain Solutions. The Indictment alleges that McElhiney promised prospective investors that he and his purported business partners ran a successful cryptocurrency investment fund that invested in emerging cryptocurrencies and other blockchain-based projects, such as Ethereum staking and cryptocurrency liquidity pools. According to the Indictment, McElhiney promised that he would invest funds provided by investors, and manage those investments for the benefit of his clients. McElhiney promised guaranteed or variable returns depending on the supposed investment vehicle, and always promised investors that they could liquidate their investments and get their money back at any time. McElhiney then sent investors information using a platform called Coin.FYI that purported to track the progress of their investments. In actuality, the Indictment alleges, McElhiney never invested the funds provided by investors, but instead kept the funds for his own personal use, and the purported Coin.FYI accounts that McElhiney showed investors did not correspond to any actual investment funds but instead were fabricated figures intended to convince investors that McElhiney had invested their funds and that the investments were appreciating in value. The Indictment alleges that McElhiney defrauded investors of more than $350,000 in this manner, including defrauding investors not only of cash but rare art and precious metals.
“Cryptocurrency fraud is a new variation on the same old song and dance of investment fraud,” said United States Attorney Waldref. “Whether it’s cryptocurrency fraud, multilevel pyramid scams, real estate scams, old-fashioned Ponzi schemes, or other investment fraud vehicles, we will work closely with our law enforcement partners to hold fraudsters accountable when they prey on innocent members of the community in order to line their own pockets.”
The fraud charges carry maximum sentences of up to 30 years in federal prison. This case was investigated by Department of Homeland Security, Homeland Security Investigations, Spokane Resident Agency, and by the Spokane Police Department. Assistant United States Attorneys Dan Fruchter and Tyler Tornabene are prosecuting the case on behalf of the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. McElhiney, Case No: 2-23-CR-00082-TORQuincy Man Sentenced to 10 Years for Receipt of Child PornographyRead the Press Release
Spokane – On October 11, 2023, U.S. District Judge Thomas O. Rice sentenced Joseph Thomas Schmitz, 35, of Quincy, Washington, to 120 months in federal prison for Receipt of Child Pornography. Schmitz pleaded guilty on May 11, 2023. Judge Rice also ordered Schmitz to pay $6,000 in restitution to two of his victims and special assessments totaling $7,000 to funds benefitting victims of human trafficking and child pornography crime. Judge Rice further ordered that Schmitz be federally supervised for 10 years after being released from prison.
According to court documents and proceedings, Schmitz was identified as a suspect in May 2021 after his wife called the police and reported finding nude photos of an approximately 11 years old female in a hidden folder on Schmitz’s iPad. Pursuant to search warrants, federal agents searched Schmitz’s electronic devices and iCloud account and found child pornography files linked to 25 previously identified child pornography victims, in addition to more images and videos of the 11-year-old girl. Agents additionally found evidence of Schmitz using the Kik application back to November 2019, frequenting groups dedicated to the viewing and sharing of child sexual abuse and sharing links with others within these groups.
“The sentence imposed in this case recognizes the ongoing and lasting harm caused by child exploitation. It sends a strong message to Mr. Schmitz and others who use what they believe to be online anonymity to exploit the most vulnerable among us,” said United States Attorney Vanessa R. Waldref. “My office prioritizes these offenses against our community’s youngest and most vulnerable and will continue to prosecute those who harm children.
This sentencing is yet another example of the impact federal and state law enforcement partnerships bring to the safety of our communities,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “The success of this case lied in the vigilance of family members and our joint efforts to end further victimization.”
This case was investigated by Homeland Security Investigations and the Quincy Police Department and prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
2:21-CR-097-TOR
U.S. Attorney Vanessa R. Waldref Honored by Washington Women Lawyers for “Passing the Torch” and Going “Above and Beyond” to Mentor Women LawyersRead the Press Release
Seattle, Washington – On October 7, 2023, Washington Women Lawyers (“WWL”) selected United States Attorney Vanessa R. Waldref as the 2023 recipient of the Justice Mary Fairhurst Passing the Torch Award. U.S. Attorney Waldref was honored at WWL’s Annual Event, which was held at the Seattle Art Museum.
Each year, WWL awards the Chief Justice Mary Fairhurst Passing the Torch Award to an attorney that “has gone above and beyond in mentoring women lawyers, making a difference, and ‘passing the torch’ to others in a way that supports” WWL’s Mission — a mission, which is “to further the full integration of women in the legal profession, promote equal rights and opportunities for women, and prevent discrimination against them.”
During this year’s WWL event, U.S. Attorney Waldref was specifically recognized for her commitment to public service as a federal prosecutor, work as an adjunct professor at the Gonzaga University School of Law, and her dedication to mentoring students and lawyers alike. Vanessa Waldref is the first woman to serve as U.S. Attorney in the Eastern District of Washington.
After the award was announced, First Assistant United States Attorney for the Eastern District of Washington, Rich Barker, joined in congratulating U.S. Attorney Waldref on this prestigious honor: “Vanessa is a trailblazer and incredible example of what it means to be a leader and mentor. During her first two years as our United States Attorney, Vanessa has opened a new branch office in the Tri-Cities, led some of the most significant criminal and civil cases in our district, and encouraged new leadership opportunities for women within the office. Vanessa has also worked tirelessly to build an office that is not only diverse in background, skill, and experience, but also promotes equal opportunity, creates an inclusive culture, and promotes a workforce that reflects the diversity of Eastern Washington.”
In accepting the award, U.S. Attorney Waldref stated, “I am truly honored to receive this award, which recognizes Justice Fairhurst’s legacy of justice and stewardship in our great state. Justice Fairhurst is a mentor to so many women lawyers in Washington and beyond. She is an example of the type of lawyer and leader I strive to be — a person of integrity, who leads with conviction, compassion, and a commitment for doing what is right.” She added, “Trailblazers like Justice Fairhurst inspired me as I took the helm as U.S. Attorney for the Eastern District of Washington. I am grateful for the unique opportunity to lead such an incredible office and work closely with attorneys, law enforcement, and community stakeholders to build safer and stronger communities for everyone.”
First Assistant Barker added, “At both the U.S. Attorney’s Office and as an adjunct professor at Gonzaga, I have seen firsthand how Vanessa dedicates herself to mentoring law students and lawyers. She has dedicated her life to public service. In doing so, she inspires us to be better attorneys, better prosecutors, and most importantly, better people. There is no one more deserving than U.S. Attorney Waldref for the Justice Mary Fairhurst Passing the Torch Award.”
The award is named in honor of the Honorable Mary Fairhurst, who retired as a justice on the Washington Supreme Court in January 2020. She also served a four-year term as chief justice in 2016.
Additional information regarding WWL is available at www.wwl.org.
From left to right, King County Superior Court Judge Jaime Hawk, Senior Counsel at Recurrent Energy, Rachael Proctor, United States Attorney for the Eastern District of Washington, Vanessa R. Waldref, Spokane Municipal Court Judge Gloria Ochoa-Bruck
United States Attorney and Grant County Prosecuting Attorney Announce Appointment of Deputy Prosecutor Carlee Bittle as a Special Assistant United States AttorneyRead the Press Release
Spokane, WA – United States Attorney Vanessa R. Waldref and Grant County Prosecuting Attorney Kevin McCrae jointly announced today that Carlee Bittle, who serves as a Deputy Prosecuting Attorney in Grant County, has been appointed as a Special Assistant United States Attorney (SAUSA) for the Eastern District of Washington. As a SAUSA, Bittle will prosecute cases in both state and federal court, focusing primarily on crimes against children.
In making this announcement, U.S. Attorney Waldref reiterated her office’s commitment to holding accountable those who harm children: “We will continue to prosecute the area’s most dangerous criminals to the fullest extent. Today’s announcement should serve as yet another signal to those who victimize children that such crimes will not be tolerated in our communities.”
U.S. Attorney Waldref continued, “Federal, State, Tribal, and local partnerships are essential to building safer and stronger communities in Eastern Washington. Many of these partnerships exist on the law enforcement level, including through joint task forces and cross deputization agreements.” U.S. Attorney Waldref further emphasized, “By combining federal and state resources, we are able to accomplish more to keep our communities safe than we otherwise could.” The SAUSA program applies this same principle to criminal prosecution – permitting experienced prosecutors to handle criminal cases in both state court and federal court.
Grant County Prosecuting Attorney Kevin McCrae similarly addressed the importance of utilizing state and federal partnerships to address crime against children, “As a Deputy Prosecuting Attorney and a SAUSA, Carlee Bittle will have the ability to rely on both federal and state laws to prosecute those who commit crimes against our children, allowing us to better protect children and achieve justice on behalf of children who are harmed.”
Both U.S. Attorney Waldref and Prosecuting Attorney McCrae also commended SAUSA Bittle’s commitment and dedication to public service. Bittle has served as a Deputy Prosecuting Attorney for Grant County since July of 2017. She is primarily responsible for the prosecution of SAU cases. The Special Assault Unit (SAU) prosecutes sex offenses, crimes against children and crimes of domestic violence.
Newly appointed SAUSA Bittle expressed her continued desire to protect the most vulnerable in our communities. “I’m excited to join the U.S. Attorney’s Office, while also continuing my work as a state prosecutor in Grant County. It is an honor to work with the talented state and federal investigators, who devote their careers to protecting young children from physical and sexual abuse. Through combined state and federal efforts, we can make Grant County a safer place to live, work, and raise our families.”
During a resent visit to the federal courthouse in Spokane, SAUSA Bittle was sworn in as a member of the federal bar for the Eastern District of Washington. Photographs of SAUSA Bittle are included below.
Ferry County Hospital District Agrees to Pay $15,000 Penalty and Implement Corrective Actions to Address Improper Opioid Dispensing Practices at Republic PharmacyRead the Press Release
Spokane, WA – The Ferry County Hospital District agreed to pay a $15,000 Controlled Substances Act penalty and to institute corrective actions in regards to opioid prescribing practices at Republic Drug Store, a pharmacy in Republic, Washington, that Ferry County Hospital District purchased in January 2021 and has continued to operate since that time, announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington.
To protect the public, the Controlled Substances Act and its implementing regulations place legal responsibilities on medical professionals to ensure that opioid medications and other controlled substances are prescribed, dispensed, and used for medically-appropriate purposes and in a safe manner. The responsibility for the proper prescribing and dispensing of controlled substances is upon the prescribing practitioner, but a corresponding responsibility rests with the pharmacist who fills the prescription to ensure that prescriptions are legitimate, safe, and medically appropriate. This responsibility includes addressing and resolving “red flags”, that is, indications that a particular prescription may be unsafe or medically inappropriate, by obtaining additional information before filling the prescription.
In the settlement announced today, Ferry County Hospital District admitted that, between October 2017 and November 2021, Republic Drug Store and its pharmacists and employees did not always appropriately exercise their corresponding responsibility in filling prescriptions for opioids and other controlled substances. Ferry County Hospital District admitted that Republic Drug Store filled prescriptions that contained “red flags”, i.e., indications of possible fraud, drug-seeking, lack of medical necessity, potential for abuse or health risk, or potential for drug diversion into the community, without appropriately resolving those red flags prior to dispensing. Ferry County Hospital District further admitted that these red flags included: (1) numerous patients for whom Republic Drug Store filled prescriptions for a dangerous and medically-inappropriate combination of drugs known as the “holy trinity” (an opioid, a benzodiazepine, and a muscle relaxant taken in tandem), as well as other dangerous combinations; (2) high doses of opioids, including patients prescribed opioid doses far in excess of guidelines promulgated by the Centers for Disease Control (CDC); (3) fraudulent prescriptions purportedly issued by physicians who were no longer practicing medicine or who had their licenses suspended or revoked; (4) early refill prescriptions that Republic Drug Store filled with no explanation of why the patient had exhausted the prior month’s supply more than a week early; and (5) prescriptions written by naturopathic doctors who did not have the medical authority to prescribe controlled substances.
“Pharmacies, such as Republic Drug, play a critical role in keeping our communities safe and strong,” said U.S. Attorney Waldref. “Pharmacies serve a vital gatekeeper function in keeping our residents safe and healthy, preventing the diversion of dangerous drugs, and combatting addiction. I’m grateful that Ferry County Hospital District accepted responsibility and has entered into a robust agreement with the Drug Enforcement Administration (DEA) to ensure that it complies with its gatekeeper function and obligations going forward.”
In addition to the $15,000 civil penalty, Ferry County Hospital District has entered into a Memorandum of Agreement (MOA) with the DEA concerning Republic Drug Store. Under the MOA, Republic Drug Store agreed to resolve all “red flag” prescriptions prior to dispensing any controlled substances. Republic Drug Store is also required to conduct quarterly physical inventory audits and provide those to the DEA. These audits must be performed by a team that includes a licensed pharmacist. Additionally, Republic Drug Store is required to provide training for its employees on how to detect and prevent filling of fraudulent or medically inappropriate prescriptions. Finally, Republic Drug Store further agreed to review and update its controlled substance policies and procedures to ensure compliance with the Controlled Substances Act going forward.
“This resolution would not have been possible without the exceptional investigative work by DEA Seattle Field Division’s Diversion Group, and I am grateful for our longstanding and continuing partnership,” stated U.S. Attorney Waldref. “We are committed to working hand-in-glove with DEA Diversion Group and our law enforcement partners to protect our communities and public health and safety.”
“DEA’s core mission is to protect Americans and we need our partners in the healthcare community to help us by following the rules. When they do not, we hold them accountable, not to punish, but to encourage their cooperation and ensure that they are doing their part to keep people safe,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “We deeply appreciate our partnership with the United States Attorney’s Office in the Eastern District of Washington, without whom this success would not have been possible.”
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington and DEA’s Seattle Field Division, Diversion Group. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene handled this matter on behalf of the United States.
republic_drug_final_fully_signed_sa.pdfArkansas Business Owner Pleads Guilty to Fraudulently Obtaining More than $16.5 Million in COVID Relief FundingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Tyler Keith Penix, age 37, of Bentonville, Arkansas, formerly known as Tyler Keith Andrews, pled guilty to fraudulently obtaining more than $16.5 million as part of a wide-ranging conspiracy to obtain fraudulent COVID relief funding. United States District Judge Thomas O. Rice accepted Andrews’ guilty plea, and set sentencing for January 11, 2024, at 10 a.m., in Spokane. This conviction is the most recent conviction, and most significant loss amount, announced by the Eastern Washington COVID-19 Fraud Strike Force launched in 2022.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided forgivable loans to eligible small businesses to retain jobs and maintain payroll during the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low-interest bridge funding for small businesses placed at risk during the pandemic.
“COVID-19 relief programs quickly ran out of money due to the number of businesses that requested funding, meaning that struggling, deserving small businesses were not able to obtain critically needed funding to keep their businesses afloat during the shutdowns and disruptions caused by the COVID pandemic,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because it is critical to the strength and safety of our communities that we all work together to combat pandemic-related fraud and bring much-needed accountability to these programs. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security (DHS) OIG, Department of Labor OIG, Air Force Office of Special Investigations, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments and convictions, and have recovered millions of dollars in penalties and restitution for the public.
In the plea agreement accepted by the court, and in information disclosed during court proceedings, Mr. Penix admitted to preparing and submitting dozens of fraudulent applications for PPP and EIDL funding for purported businesses supposedly owned by himself and others. For example, Mr. Penix admitted to preparing two EIDL applications for two purported businesses owned by Spokane resident and co-defendant Yuriy Anishchenko. Through the fraudulent applications prepared by Penix, Anishchenko received more than $300,000 for his two purported businesses, neither of which was an active business at the time of the applications. According to court documents, Anishchenko then shared some of the proceeds with Penix, and referred to Penix more than a dozen additional potential “clients” for which Penix prepared and submitted dozens of additional fraudulent EIDL applications using false information and fraudulent documents, and that Penix shared in the proceeds from many of these as well. Finally, Penix admitted to preparing and submitting numerous false and fraudulent PPP and EIDL applications on behalf of purported businesses owned by him, again using fictitious documentation and false statements. In total, Penix admitted to obtaining more than $3.25 million in PPP and EIDL funding for his own businesses, and another $13.5 million in EIDL funding for Anishchenko and other co-conspirators.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG, the FBI, and TIGTA,” said U.S. Attorney Waldref. “The extent of Mr. Andrews’s fraud – more than $16 million is staggering. I’m so grateful for the support and collaboration with the U.S. Attorney’s Office for the Western District of Arkansas and the State Department’s Diplomatic Security Service. This was an extensive and wide-ranging conspiracy that required exceptional investigative work and close coordination. We will continue to work with our law enforcement partners to strengthen our communities by protecting our small and local businesses.”
“This guilty plea sends a signal to wrongdoers that evidence of their crimes will be brought to light,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our Office will remain relentless in the pursuit of fraudsters who sought to exploit SBA’s vital pandemic response programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“The money these subjects fraudulently received should have benefitted legitimate small businesses during the pandemic,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “I’m thankful for the work by members of the COVID Fraud Strike Force and the United States Attorney’s Offices to hold accountable those who would take advantage of disaster funding for their own nefarious purposes. This should serve as an example of the effort and resources law enforcement and prosecutors will leverage to seek justice.”
The charges to which Andrews pled carries a maximum sentence of up to 20 years in federal prison. The cases were investigated by the Eastern Washington COVID Fraud Strike Force, and in particular by SBA-OIG, the FBI, and TIGTA. The U.S. Attorney’s Office for the Western District of Arkansas and Department of State Diplomatic Security Service provided additional assistance and support. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
While Andrews has been adjudged guilty, the Indictment against Anishchenko remains pending. An Indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Case No. 2:22-CR-00057-TOR