Western District of Washington

Seattle – A man who committed a series of mail vehicle and mail key thefts plead guilty to theft of government property, mail theft, illegal transactions on access devices, and illegally possessing a firearm, announced Acting U.S. Attorney Tessa Gorman. Johny Mixayboua, 27, committed a string of mail theft incidents involving stolen postal vehicles, stolen postal keys, mail theft and associated crimes. The postal service had to halt deliveries in the zip code 98118 for about a week while investigators worked to track down and arrest Mixayboua. Mixayboua will be sentenced in U.S. District Court by Judge Richard A. Jones in Seattle on March 8, 2024.

According to the plea agreement, between December of 2022 and May of 2023, Mixayboua unlawfully gained access to cluster mailbox units in various locations throughout King County. He repeatedly stole mail from the cluster mailbox units that were addressed to others.

During this time, Mixayboua stole credit cards from the mail he unlawfully collected and used the stolen credit cards to make purchases for himself. He also stole and operated a United States Postal Service Vehicle. When law enforcement executed an arrest warrant on Mixayboua in May of 2023, he was found with a firearm. Mixayboua is prohibited from possessing any firearms because of previous felony convictions in King County Superior Court. 

This case was investigated by U.S. Postal Inspection Service (USPIS).

Theft of Government Property is punishable by up to 10 years in prison. Mail Theft is punishable by up to 5 years in prison. Access Device – Illegal Transactions is punishable by up to 15 years in prison. Unlawful Possession of a Firearm is punishable by up to 15 years in prison.

The case is being prosecuted by Assistant United States Attorney Elyne Vaught.

Seattle – A heating and plumbing business headquartered in Boothwyn, Pennsylvania will pay $1.35 million to settle allegations it failed to follow the terms of a contract for servicing fire and life safety systems at seven Veteran’s Affairs (VA) facilities nationwide. Media Plumbing and Heating, dba Kinetix, participates in the VA’s service-disabled veteran owned small business program. Under terms of its contracts with the VA, Media was supposed to hire sub-contractor companies that also qualified as service-disabled veteran owned to service the fire and life safety systems. However, between January 2016 and December 31, 2022, it failed to do so.

“Part of the VA’s mission is to assist veterans with the transition to life after their service. This program helps support service-disabled veterans as they seek to grow their businesses,” said Acting U.S. Attorney Tessa M. Gorman. “Media had agreed to find those similarly situated companies across the country to make the program work for other veterans. The failure to do that limited the impact of the program.”

“It is critical that companies who agree to hire service-disabled veteran-owned businesses honor those commitments. Many of our nation’s veterans depend on these contracts for their livelihoods,” said Jason Root, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “We thank the U.S. Attorney’s Office and our law enforcement partners for their efforts in this case.”

According to the settlement agreement, Media had agreed to find service-disabled veteran owned companies to service the fire and life safety systems at VA facilities in Seattle, Palo Alto, California, Louisville, Kentucky, West Palm Beach, Florida, Oklahoma City, Hines, Illinois, and Bedford, Massachusetts. If the company could not find such subcontractors, it was to do the work itself. Instead, it hired non-compliant subcontractors to do the work.

Of the $1.35 million settlement amount, $592,231 is restitution.

The matter was investigated by the Veteran’s Affairs Office of Inspector General (VA-OIG).

The investigation and settlement were handled Assistant United States Attorney Matt Waldrop for the U.S. Attorney’s Office, Western District of Washington.

Seattle – A 33-year-old SeaTac, Washington, man was sentenced today to one year and one day in prison and three years of supervised release for a money laundering conviction related to his participation in a call center scheme to defraud elderly victims across the country, announced Acting U.S. Attorney Tessa M. Gorman. Arifkhan Pathan was arrested on January 4, 2021. Between August 2020 and January 2021, Pathan played a key role in defrauding 28 victims of more than $700,000. The restitution amount will be determined by U.S. District Judge Robert S. Lasnik at a later date.

“According to the FBI, in 2022 there was more than $1 billion in victim losses due to these call center fraud schemes. These schemers often target elderly victims and pretend to be government officials to try to build trust so they can steal their money,” said Acting U.S. Attorney Tessa M. Gorman. “We need to repeatedly remind people that government employees will never ask you to withdraw and send packages of cash to some other address for ‘safe-keeping.’”

According to records filed in the case, in November 2020, investigators with Homeland Security Investigation became aware of suspicious packages arriving at Seattle UPS and FedEx locations. The investigation revealed the packages were filled with cash and were sent by victims from as far away as New York, Texas, and Colorado. The packages were sent to conspirators who used fake identity documents, such as driver’s licenses, to pick-up the packages. 

According to multiple victims in the case, they had received a telephone call from someone who claimed to be employed by the Social Security Administration. The caller claimed the victim’s Social Security number had been compromised, and the only way to protect the victim’s money was to withdraw thousands of dollars in cash from their bank accounts and send it via UPS or FedEx to an “agent” elsewhere in the U.S. for safe-keeping. The callers allegedly demanded the victims send packages containing as much as $30,000 in cash. The scammers used UPS and FedEx so the co-conspirators could track the packages and pick up the packages of cash using the fake identity documents. The investigation revealed the callers were connected to an Indian call center.

Pathan used false driver’s licenses in real people’s identities to pick up packages of cash sent by victims. Pathan deposited much of the money he picked up in various bank accounts that could be accessed by his co-schemers. He was paid a commission on the money of about seven percent. 

In asking for a 40-month prison sentence, Assistant United States Attorney Miriam Hinman wrote to the court, “Seven of these victims have explained to the Court how severely the offense impacted them, including substantial loss of retirement savings, loss of credit, ongoing debt, and inability to afford basic items like groceries and medications. This financial hardship also caused victims to suffer from enormous anxiety, causing weight loss, migraines, and more….

Pathan participated extensively in a fraud scheme that caused enormous harm to dozens of U.S. victims, many of whom were elderly and lost their retirement savings. He did so for personal profit and should not be allowed to escape from facing the consequences of his actions ….”

The case was investigated by the Homeland Security Investigations Border Enforcement Security Task Force (BEST) comprised of representatives from HSI, the Internal Revenue Service – Criminal Investigation Division, the U.S. Secret Service, the U.S. Postal Inspection Service, U.S. Customs and Border Protection, and the Seattle Police Department.

The case is being prosecuted by Assistant United States Attorneys Miriam R. Hinman and Casey S. Conzatti.

Tacoma – A 40-year-old Yelm, Washington man was sentenced today in U.S. District Court in Tacoma to ten years in prison for possession of images of child sexual abuse, announced Acting U.S. Attorney Tessa M. Gorman. Scotti Jason Ortiz has been in custody since his arrest on February 9, 2021.

According to records filed in the case, a foreign law enforcement agency alerted Homeland Security Investigations (HSI) Cyber Crimes Center (C3) Child Exploitation Investigations Unit that a Kik user was sharing images of child sexual abuse. Ortiz was identified as the user.

When a search warrant was served on Ortiz’ electronic devices, law enforcement determined he possessed a video showing the sexual molestation of three children under the age of 12. It does not appear that Ortiz created the images.

Ortiz has prior convictions relating to child sexual abuse. In 2005 he was convicted of third-degree rape of a child. In 2013 he was sentenced to 75-months in prison for failing to register as a sex offender and dealing and possessing depictions of minors engaged in sexually explicit conduct. Due to those convictions, Ortiz faced a mandatory minimum ten-year federal prison sentence.

Ortiz was released from the 75-month state sentence on June 30, 2020, and had been out of prison barely a month when he set up the Kik account in August 2020. It was through that account that he began to communicate with an undercover law enforcement agent in England about his sexual interest in children.

The case was investigated by Homeland Security Investigations (HSI).

The case was prosecuted by Assistant United States Attorney Zach Dillon.

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

Seattle – The Department of Justice and Innovative Sleep Centers PLLC and Innovative Sleep Centers, Inc., have resolved allegations that the sleep centers improperly billed Medicare and Medicaid for medical services. The clinics paid $644,562 to resolve the matter. Of the settlement amount, $435,404 went to the federal government as restitution and penalties and $209,138 to Washington State for its share of restitution and penalties. 

The United States contends that between 2013 and 2022, Innovative Sleep Centers (ISC) submitted three categories of false claims for payment to Medicare and Medicaid.

• Between January 2018 and December 2020, ISC submitted false claims to Medicare for evaluation and management (E&M) services that were performed by lower-level providers, but billed under the name of ISC’s Medical Director, Dr. Mehrdad Razavi. By identifying a physician as the rendering provider on the claims, the clinic was able to bill at a higher rate. Those bills were false.
• Between October 2013 and July 2022, ISC submitted claims to Medicare for office visits that falsely identified Dr. Razavi as the rendering provider. In fact, the services were provided by employees who were not qualified to perform office visits, including office staff, Respiratory Therapists, and Registered Polysomnographic Technologists. By billing the claims under a physician’s NPI, ISC obtained reimbursement for non-covered services.
• And finally, between January 2015 and December 2020, ISC submitted false claims to Medicare and Medicaid for sleep studies that were performed by technologists who did not have required credentials.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

The settlement resolved a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties known as relators to file suit on behalf of the government for false claims and to share in any recovery. The qui tam suit is captioned United States, State of California and State of Washington ex rel. SW Sleep LLC v. Innovative Sleep Centers, PLLC et al., No. 3:19-CV-5604 (W.D. Wash.).

The matter was handled by Assistant United States Attorneys Ashley Burns and Kayla Stahman and investigated by the Office of the Inspector General for the Department of Health and Human Services (HHS-OIG).

SEATTLE – Binance Holdings Limited (Binance), the entity that operates the world’s largest cryptocurrency exchange, Binance.com, pleaded guilty today and has agreed to pay over $4 billion to resolve the Justice Department’s investigation into violations related to the Bank Secrecy Act (BSA), failure to register as a money transmitting business, and the International Emergency Economic Powers Act (IEEPA).

Binance’s founder and chief executive officer (CEO), Changpeng Zhao, a Canadian national, also pleaded guilty to failing to maintain an effective anti-money laundering (AML) program, in violation of the BSA and has resigned as CEO of Binance.

Binance’s guilty plea is part of coordinated resolutions with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC) and the U.S. Commodity Futures Trading Commission (CFTC).

“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed – now it is paying one of the largest corporate penalties in U.S. history,” said Attorney General Merrick B. Garland. “In just the past month, the Justice Department has successfully prosecuted the CEOs of two of the world’s largest cryptocurrency exchanges in two separate criminal cases.  The message here should be clear: using new technology to break the law does not make you a disruptor, it makes you a criminal.”

“Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” said Secretary of the Treasury Janet L. Yellen. “Today’s historic penalties and monitorship to ensure compliance with U.S. law and regulations mark a milestone for the virtual currency industry. Any institution, wherever located, that wants to reap the benefits of the U.S. financial system must also play by the rules that keep us all safe from terrorists, foreign adversaries, and crime or face the consequences.”

“A corporate strategy that puts profits over compliance isn’t a path to riches; it’s a path to federal prosecution,” said Deputy Attorney General Lisa O. Monaco. “Today’s charges and guilty pleas – combined with a more than $4 billion financial penalty – sends an unmistakable message to crypto and defi companies: if you serve U.S. customers, you must obey U.S. law.” 

“Changpeng Zhao made Binance, the company he founded and ran as CEO, into the largest cryptocurrency exchange in the world by targeting U.S. customers, but refused to comply with U.S. law,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Binance’s and Zhao’s willful violations of anti-money laundering and sanctions laws threatened the U.S. financial system and our national security, and each of them has now pleaded guilty. Make no mistake: when you place profits over compliance with the law, you will answer for your crimes in the United States.”

“Binance’s crimes gave sanctioned customers unfettered access to American capital and financial services,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division (NSD). “This prosecution is a warning that companies that do not build sanctions compliance into their services face serious criminal penalties, as do the executives who lead them.”

“From the beginning of its existence, Binance and founder Changpeng Zhao chose growth and personal wealth over following financial regulations aimed at stopping the laundering of criminal cash,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “Because Changpeng Zhao knowingly operated a financial platform without basic anti-money laundering safeguards, the company caused illegal transactions between U.S. users and users in sanctioned jurisdictions such as Iran, Cuba, Syria, and Russian-occupied regions of Ukraine – transactions for which Binance profited with significant fees.”

“Binance’s activities undermined the foundation of safe and sound financial markets by intentionally avoiding basic, fundamental obligations that apply to exchanges, all the while collecting approximately $1.35 billion in trading fees from U.S. customers,” said Chairman Rostin Behnam of the Commodity Futures Trading Commission (CFTC). “American investors, small and large, have demonstrated eagerness to incorporate digital asset products into their portfolios. It is our duty to ensure that when they do so, the full protections afforded by our regulatory oversight are in place, and that illegal and illicit conduct is swiftly addressed. When, as here, an entity goes even further, deliberately avoiding to employ meaningful access controls, intentionally avoiding knowing customers’ identities, and actively concealing the presence of U.S. customers on its platforms, there is no question that the CFTC will strike hard and aggressively.”

“When you put growth above compliance, you end up in hot water,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Our team of investigators uncovered that Binance disregarded anti-money laundering Know Your Customer laws, failed to register as a money transmitter, and willfully violated U.S. sanctions tied to the International Emergency Economic Powers Act. When you do so, your business becomes a playground for bad actors. Hundreds of millions of dollars in illicit proceeds from ransomware variants, darknet transactions, and various internet-related scams moved through Binance in an attempt to evade detection by law enforcement.”

According to court documents, Binance admitted to prioritizing growth and profits over compliance with U.S. law. Binance launched in 2017 and focused on attracting high-volume customers, including U.S.-based customers. Binance quickly became the largest cryptocurrency exchange in the world, with the greatest share of its customers coming from the United States. As a result of serving U.S. customers, Binance was required to register with FinCEN as a money services business and to implement an effective AML program that was reasonably designed to prevent Binance from being used to facilitate money laundering. Binance chose not to comply with U.S. law and failed to implement controls and procedures to prevent money laundering. Binance also did not implement controls that would have prevented U.S. customers from conducting transactions with customers in sanctioned jurisdictions, despite knowing that the system it used to match customers for transactions would necessarily cause transactions in violation of IEEPA.

Instead of complying with U.S. law, in 2019, Binance announced that it would block U.S. customers and launched a separate U.S. exchange, Binance.US. Despite this announcement, Binance took steps to maintain a substantial number of U.S. customers. In particular, Binance focused on retaining valuable “VIP” customers, which were responsible for a large portion of Binance’s trading volume and revenue. These VIP customers were critical to Binance’s business because they helped provide the necessary liquidity to facilitate trades of digital assets. For example, Binance executives, including Zhao, made a plan to contact VIP customers and help the VIP register a new account for an offshore entity and transfer holdings to that account. Binance employees also called U.S. VIPs to encourage them to provide information that suggested the customer was not located in the United States.

Binance also did not implement the core components of an effective AML program: Binance did not implement comprehensive know-your-customer (KYC) protocols or systematically monitor transactions, and Binance never filed a suspicious activity report (SAR) with FinCEN. For years, Binance allowed users to open accounts and trade without submitting any identifying information beyond an email address. Binance began requiring all users to provide KYC information in August 2021 but allowed users who had not provided KYC to continue trading on the exchange until May 2022. Between August 2017 and October 2022, U.S. users, including VIPs, conducted trillions of dollars in transactions on the platform, generating over $1.6 billion in profit for Binance.

As Binance’s internal communications showed, Binance’s compliance employees recognized that Binance did not have protocols to flag or report transactions for money laundering risks, which employees recognized would attract criminals to the exchange. As one compliance employee wrote, “we need a banner ‘is washing drug money too hard these days - come to binance we got cake for you.’” Due in part to Binance’s failure to implement an effective AML program, illicit actors used Binance’s exchange in various ways, including conducting transactions for mixing services that obfuscated the source and ownership of cryptocurrency; transferring illicit proceeds from ransomware variants; and moving proceeds of darknet market transactions, exchange hacks, and various internet-related scams.

Binance also knew that U.S. sanctions laws prohibited U.S. persons – including its U.S. customers – from trading with its customers subject to U.S. sanctions, including customers in comprehensively sanctioned jurisdictions, such as Iran. Binance knew that it had a significant number of users from comprehensively sanctioned jurisdictions and a substantial number of U.S. users and that its matching engine would necessarily cause U.S. users to transact with users in sanctioned jurisdictions in violation of U.S. law. Nonetheless, Binance did not implement controls that would prevent U.S. users from trading with users in Iran; and, because of this intentional failure, between January 2018 and May 2022, Binance willfully caused over $898 million in trades between U.S. users and users ordinarily resident in Iran.

As part of the plea agreement, Binance has agreed to forfeit $2,510,650,588 and to pay a criminal fine of $1,805,475,575 for a total financial penalty of $4,316,126,163. Binance has also agreed to retain an independent compliance monitor for three years and remediate and enhance their anti-money laundering and sanctions compliance programs. Binance separately has also reached agreements with the CFTC, FinCEN, and OFAC, and the Department will credit approximately $1.8 billion toward those resolutions.

The Department reached its resolution with Binance based on a number of factors, including the nature, seriousness, and pervasiveness of the offense, as a result of which Binance processed billions of dollars of cryptocurrency transactions for U.S. persons and caused U.S. customers to engage in transactions in violation of U.S. sanctions. Binance did not make a timely and voluntary disclosure of wrongdoing, but it received partial credit for its cooperation with the Department’s investigation, and it has taken steps to remediate its compliance program. Binance did not receive full credit for its cooperation because it delayed producing relevant evidence, including recorded meetings in which Binance executives discussed U.S. legal requirements. Accordingly, the total criminal penalty reflects a 20% reduction off the bottom of the applicable U.S. sentencing guidelines fine range.

In addition, according to court documents, Zhao, Binance’s founder, owner, and CEO, admitted that he understood that Binance served U.S. users and was thus required to register with FinCEN and implement an effective AML program. Zhao knew that U.S. users were essential to Binance’s growth and were a significant source of revenue and knew that an effective AML program would include KYC protocols that would mean that some customers would choose not to use Binance. Zhao told employees it was “better to ask for forgiveness than permission,” and prioritized Binance’s growth over compliance with U.S. law. Without an effective AML program, Binance caused transactions between U.S. users and users in jurisdictions subject to U.S. sanctions. These illegal transactions were a clear and foreseeable result of Zhao’s decision to prioritize Binance’s profit and growth over compliance with the BSA.

IRS-CI is investigating the case. The case is being prosecuted by Bank Integrity Unit Deputy Chief and National Cryptocurrency Enforcement Team Deputy Director Kevin Mosley and Trial Attorney Elizabeth Carr of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), Trial Attorneys Beau Barnes and Alex Wharton of NSD’s Counterintelligence and Export Control Section (CES), and Assistant U.S. Attorney (AUSA) Mike Dion for the Western District of Washington. Trial Attorney Julia Jarrett, formerly of MLARS and currently an AUSA for the District of Oregon, and Trial Attorney Matthew Anzaldi, formerly of CES and currently with NSD’s National Security Cyber Section, made substantial contributions to this investigation and prosecution.

MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. The Criminal Division has surged resources to the Bank Integrity Unit, which has imposed over $12 billion in penalties on financial institutions for sanctions violations over the last decade. NSD’s Counterintelligence and Export Control Section investigates and prosecutes individuals and corporations for violations of export control and sanctions laws, in addition to other national security crimes. NSD continues to expand its corporate enforcement efforts – including growing the ranks of prosecutors dedicated to this work and establishing a Chief Counsel and Deputy Chief Counsel for Corporate Enforcement.

Binance Holdings Limited (Binance), the entity that operates the world’s largest cryptocurrency exchange, Binance.com, pleaded guilty today and has agreed to pay over $4 billion to resolve the Justice Department’s investigation into violations related to the Bank Secrecy Act (BSA), failure to register as a money transmitting business, and the International Emergency Economic Powers Act (IEEPA).

Binance’s founder and chief executive officer (CEO), Changpeng Zhao, a Canadian national, also pleaded guilty to failing to maintain an effective anti-money laundering (AML) program, in violation of the BSA and has resigned as CEO of Binance.

Binance’s guilty plea is part of coordinated resolutions with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC) and the U.S. Commodity Futures Trading Commission (CFTC).

“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed – now it is paying one of the largest corporate penalties in U.S. history,” said Attorney General Merrick B. Garland. “In just the past month, the Justice Department has successfully prosecuted the CEOs of two of the world’s largest cryptocurrency exchanges in two separate criminal cases.  The message here should be clear: using new technology to break the law does not make you a disruptor, it makes you a criminal.”

“Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform,” said Secretary of the Treasury Janet L. Yellen. “Today’s historic penalties and monitorship to ensure compliance with U.S. law and regulations mark a milestone for the virtual currency industry. Any institution, wherever located, that wants to reap the benefits of the U.S. financial system must also play by the rules that keep us all safe from terrorists, foreign adversaries, and crime or face the consequences.”

“A corporate strategy that puts profits over compliance isn’t a path to riches; it’s a path to federal prosecution,” said Deputy Attorney General Lisa O. Monaco. “Today’s charges and guilty pleas – combined with a more than $4 billion financial penalty – sends an unmistakable message to crypto and defi companies: if you serve U.S. customers, you must obey U.S. law.” 

“Changpeng Zhao made Binance, the company he founded and ran as CEO, into the largest cryptocurrency exchange in the world by targeting U.S. customers, but refused to comply with U.S. law,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Binance’s and Zhao’s willful violations of anti-money laundering and sanctions laws threatened the U.S. financial system and our national security, and each of them has now pleaded guilty. Make no mistake: when you place profits over compliance with the law, you will answer for your crimes in the United States.”

“Binance’s crimes gave sanctioned customers unfettered access to American capital and financial services,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division (NSD). “This prosecution is a warning that companies that do not build sanctions compliance into their services face serious criminal penalties, as do the executives who lead them.”

“From the beginning of its existence, Binance and founder Changpeng Zhao chose growth and personal wealth over following financial regulations aimed at stopping the laundering of criminal cash,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “Because Changpeng Zhao knowingly operated a financial platform without basic anti-money laundering safeguards, the company caused illegal transactions between U.S. users and users in sanctioned jurisdictions such as Iran, Cuba, Syria, and Russian-occupied regions of Ukraine – transactions for which Binance profited with significant fees.”

“Binance’s activities undermined the foundation of safe and sound financial markets by intentionally avoiding basic, fundamental obligations that apply to exchanges, all the while collecting approximately $1.35 billion in trading fees from U.S. customers,” said Chairman Rostin Behnam of the Commodity Futures Trading Commission (CFTC). “American investors, small and large, have demonstrated eagerness to incorporate digital asset products into their portfolios. It is our duty to ensure that when they do so, the full protections afforded by our regulatory oversight are in place, and that illegal and illicit conduct is swiftly addressed. When, as here, an entity goes even further, deliberately avoiding to employ meaningful access controls, intentionally avoiding knowing customers’ identities, and actively concealing the presence of U.S. customers on its platforms, there is no question that the CFTC will strike hard and aggressively.”

“When you put growth above compliance, you end up in hot water,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Our team of investigators uncovered that Binance disregarded anti-money laundering Know Your Customer laws, failed to register as a money transmitter, and willfully violated U.S. sanctions tied to the International Emergency Economic Powers Act. When you do so, your business becomes a playground for bad actors. Hundreds of millions of dollars in illicit proceeds from ransomware variants, darknet transactions, and various internet-related scams moved through Binance in an attempt to evade detection by law enforcement.”

According to court documents, Binance admitted to prioritizing growth and profits over compliance with U.S. law. Binance launched in 2017 and focused on attracting high-volume customers, including U.S.-based customers. Binance quickly became the largest cryptocurrency exchange in the world, with the greatest share of its customers coming from the United States. As a result of serving U.S. customers, Binance was required to register with FinCEN as a money services business and to implement an effective AML program that was reasonably designed to prevent Binance from being used to facilitate money laundering. Binance chose not to comply with U.S. law and failed to implement controls and procedures to prevent money laundering. Binance also did not implement controls that would have prevented U.S. customers from conducting transactions with customers in sanctioned jurisdictions, despite knowing that the system it used to match customers for transactions would necessarily cause transactions in violation of IEEPA.

Instead of complying with U.S. law, in 2019, Binance announced that it would block U.S. customers and launched a separate U.S. exchange, Binance.US. Despite this announcement, Binance took steps to maintain a substantial number of U.S. customers. In particular, Binance focused on retaining valuable “VIP” customers, which were responsible for a large portion of Binance’s trading volume and revenue. These VIP customers were critical to Binance’s business because they helped provide the necessary liquidity to facilitate trades of digital assets. For example, Binance executives, including Zhao, made a plan to contact VIP customers and help the VIP register a new account for an offshore entity and transfer holdings to that account. Binance employees also called U.S. VIPs to encourage them to provide information that suggested the customer was not located in the United States.

Binance also did not implement the core components of an effective AML program: Binance did not implement comprehensive know-your-customer (KYC) protocols or systematically monitor transactions, and Binance never filed a suspicious activity report (SAR) with FinCEN. For years, Binance allowed users to open accounts and trade without submitting any identifying information beyond an email address. Binance began requiring all users to provide KYC information in August 2021 but allowed users who had not provided KYC to continue trading on the exchange until May 2022. Between August 2017 and October 2022, U.S. users, including VIPs, conducted trillions of dollars in transactions on the platform, generating over $1.6 billion in profit for Binance.

As Binance’s internal communications showed, Binance’s compliance employees recognized that Binance did not have protocols to flag or report transactions for money laundering risks, which employees recognized would attract criminals to the exchange. As one compliance employee wrote, “we need a banner ‘is washing drug money too hard these days - come to binance we got cake for you.’” Due in part to Binance’s failure to implement an effective AML program, illicit actors used Binance’s exchange in various ways, including conducting transactions for mixing services that obfuscated the source and ownership of cryptocurrency; transferring illicit proceeds from ransomware variants; and moving proceeds of darknet market transactions, exchange hacks, and various internet-related scams.

Binance also knew that U.S. sanctions laws prohibited U.S. persons – including its U.S. customers – from trading with its customers subject to U.S. sanctions, including customers in comprehensively sanctioned jurisdictions, such as Iran. Binance knew that it had a significant number of users from comprehensively sanctioned jurisdictions and a substantial number of U.S. users and that its matching engine would necessarily cause U.S. users to transact with users in sanctioned jurisdictions in violation of U.S. law. Nonetheless, Binance did not implement controls that would prevent U.S. users from trading with users in Iran; and, because of this intentional failure, between January 2018 and May 2022, Binance willfully caused over $898 million in trades between U.S. users and users ordinarily resident in Iran.

As part of the plea agreement, Binance has agreed to forfeit $2,510,650,588 and to pay a criminal fine of $1,805,475,575 for a total financial penalty of $4,316,126,163. Binance has also agreed to retain an independent compliance monitor for three years and remediate and enhance their anti-money laundering and sanctions compliance programs. Binance separately has also reached agreements with the CFTC, FinCEN, and OFAC, and the Department will credit approximately $1.8 billion toward those resolutions.

The Department reached its resolution with Binance based on a number of factors, including the nature, seriousness, and pervasiveness of the offense, as a result of which Binance processed billions of dollars of cryptocurrency transactions for U.S. persons and caused U.S. customers to engage in transactions in violation of U.S. sanctions. Binance did not make a timely and voluntary disclosure of wrongdoing, but it received partial credit for its cooperation with the Department’s investigation, and it has taken steps to remediate its compliance program. Binance did not receive full credit for its cooperation because it delayed producing relevant evidence, including recorded meetings in which Binance executives discussed U.S. legal requirements. Accordingly, the total criminal penalty reflects a 20% reduction off the bottom of the applicable U.S. sentencing guidelines fine range.

In addition, according to court documents, Zhao, Binance’s founder, owner, and CEO, admitted that he understood that Binance served U.S. users and was thus required to register with FinCEN and implement an effective AML program. Zhao knew that U.S. users were essential to Binance’s growth and were a significant source of revenue and knew that an effective AML program would include KYC protocols that would mean that some customers would choose not to use Binance. Zhao told employees it was “better to ask for forgiveness than permission,” and prioritized Binance’s growth over compliance with U.S. law. Without an effective AML program, Binance caused transactions between U.S. users and users in jurisdictions subject to U.S. sanctions. These illegal transactions were a clear and foreseeable result of Zhao’s decision to prioritize Binance’s profit and growth over compliance with the BSA.

IRS-CI is investigating the case. The case is being prosecuted by Bank Integrity Unit Deputy Chief and National Cryptocurrency Enforcement Team Deputy Director Kevin Mosley and Trial Attorney Elizabeth Carr of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), Trial Attorneys Beau Barnes and Alex Wharton of NSD’s Counterintelligence and Export Control Section (CES), and Assistant U.S. Attorney (AUSA) Mike Dion for the Western District of Washington. Trial Attorney Julia Jarrett, formerly of MLARS and currently an AUSA for the District of Oregon, and Trial Attorney Matthew Anzaldi, formerly of CES and currently with NSD’s National Security Cyber Section, made substantial contributions to this investigation and prosecution.

MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. The Criminal Division has surged resources to the Bank Integrity Unit, which has imposed over $12 billion in penalties on financial institutions for sanctions violations over the last decade. NSD’s Counterintelligence and Export Control Section investigates and prosecutes individuals and corporations for violations of export control and sanctions laws, in addition to other national security crimes. NSD continues to expand its corporate enforcement efforts – including growing the ranks of prosecutors dedicated to this work and establishing a Chief Counsel and Deputy Chief Counsel for Corporate Enforcement.

Binance Plea Agreement Zhao Plea Agreement Binance Information Zhao Information

Seattle – A 43-year-old man who was arrested in Federal Way, Washington in August 2022, with ten pounds of methamphetamine for a drug deal, was sentenced to ten years in prison, announced Acting U.S. Attorney Tessa M. Gorman. Tawn Tzo Saeteurn pleaded guilty in April 2023 to possession of a controlled substance with intent to distribute and possession of a firearm in furtherance of a drug trafficking offense. At today’s sentencing hearing, U.S. District Judge Richard A. Jones said, “Your continued dealing shows that you had little or no respect for the law.”

According to records filed in the case, Saeteurn had agreed to deliver ten pounds of meth and additional fentanyl pills to a drug purchaser. When Saeteurn arrived with the drugs, he was arrested and his car was searched. He had a .22 caliber pocket pistol in the driver’s side door of his vehicle, a .38 caliber Titan Tiger revolver on the floorboard of the passenger seat next to a bag containing 10 pounds of methamphetamine, and a 9mm Glock hidden in the gap between the driver’s seat and the center console.

In addition to the methamphetamine, Saeteurn had nearly a half kilo of fentanyl pills, some fentanyl powder, $2,495 in U.S. currency, plastic baggies, two scales, and five cell phones.

The case was investigated by the FBI.

The case was prosecuted by Assistant United States Attorney Zach Dillon.

Tacoma – A woman who was part owner and CEO of Tacoma Baking Co. pleaded guilty today in U.S. District Court in Tacoma to wire fraud in connection with nearly $350,000 in Paycheck Protection Program (PPP) loan funds, announced Acting U.S. Attorney Tessa M. Gorman. Jessica Heinlein, aka Jessica DeVisser, obtained three loans using fraudulent information. The largest, some $309,972, was obtained on behalf of Tacoma Baking Company. But much of the information in the applications was fraudulent, and the money was not used exclusively for payroll as required. Heinlein will be sentenced by U.S. District Judge Benjamin H. Settle on February 12, 2024.

According to the plea agreement, Heinlein made the first loan application on behalf of Tacoma Baking Company in April 2020. In the application she claimed two of the company’s eight owners were “sole owners” of the company. Heinlein created email accounts in the names of the two people she designated as “sole owners” so that she could respond to any questions from financial institutions.  Heinlein forged the signatures of the two people and provided copies of their drivers licenses without their permission. The loan funds were deposited in Heinlein’s personal account, and she used some of the money for her personal expenses. In addition to the loan funds, the Small Business Administration (SBA) also paid nearly $25,000 in interest and processing fees on the loan.

Heinlein sought PPP loans twice more. In January 2021 she applied for a PPP loan under “Jessica DeVisser Consulting,” claiming she was an independent contractor and had a monthly payroll obligation of $7,189. In fact, she was not an independent contractor and had no payroll obligation. She submitted altered financial records to support the application. The $17,900 loan was approved, but before Heinlein could access the money her bank froze the funds and returned them to the lender.

In April 2021, Heinlein tried a second time for a loan for “Jessica DeVisser Consulting.” In this case, she claimed the monthly payroll was $20,833. She received $20,833 in loan funds even though she was not an independent contractor and had no payroll. The funds were used for improper purposes.

Heinlein has agreed to pay restitution to the Small Business Administration of $360,881. The amount includes the loan amounts as well as fees and interest paid by the SBA.

At sentencing, prosecutors will recommend a sentence at the low end of the guidelines range. Judge Settle is not bound by the recommendation and can impose any sentence up to the maximum of twenty years in prison.

The case was investigated by the Federal Bureau of Investigation and the Small Business Administration Office of Inspector General (SBA-OIG).

The case is being prosecuted by Assistant United States Attorney Mike Dion.

Seattle – A 48-year-old citizen of Romania, who has no legal status in the U.S., was indicted this week for thirteen federal crimes for his attempt to smuggle six other Romanian nationals into the U.S., announced Acting U.S. Attorney Tessa M. Gorman. Ionel Niculae, aka Adrian Dumitrescu, was taken into custody near Lynden, Washington, at an accident scene where the car he was driving flipped over, badly injuring three passengers.

“We are responding to an increase in dangerous smuggling events on our northern border,” said Acting U.S. Attorney Tessa M. Gorman. “This case illustrates how these illegal smuggling efforts endanger not only those being smuggled into the U.S., but also others traveling near the border. The driver who was hit by the fleeing SUV was injured and is still recovering from the crash.”

“We have seen an uptick in the number of human smuggling events here in Washington State along our northern border with Canada,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI will continue to prioritize investigations into these organizations using dangerous tactics that jeopardize not only the lives of the individuals being smuggled, but also the lives of those in our communities who may be in danger by this reckless behavior.”

The indictment charges Niculae with one count of improper entry by an undocumented individual, three counts of bringing an undocumented individual into the United States at a place other than a designated Port of Entry and causing serious bodily injury, three counts of bringing an undocumented individual into the United States at a place other than a designated Port of Entry, and six counts of aiding and abetting the improper entry of an undocumented individual.

According to the criminal complaint, the Jeep Niculae was driving was seen crossing into Canada illegally three days before the September 17, 2023, accident. On the day of the crash, Canadian Border officers obtained images of the Jeep traveling near the Canada/U.S. Border and, moments later, a camera on the U.S. side picked up images of the Jeep crossing the border via some agricultural fields near Lynden.

Border Patrol agents set out to find the Jeep and were quickly alerted by the Sumas Police Department that the Jeep was involved in a crash with another SUV. The Jeep had flipped and three of the six passengers in the car had broken bones – two had broken pelvises and one had a broken leg. Niculae was not injured.

“Due to the exceptional vigilance and response of our Border Patrol Agents, Blaine Sector agents were able to assist with the accident scene and link the accident to a recent vehicle that illegally crossed the border smuggling several Romanian citizens. Events like this highlight the disregard smugglers have for human life,” said Chief Rosario Vasquez, Blaine Sector Chief Patrol Agent.

None of the people in the Jeep were legally present in the United States. Niculae possessed drivers licenses for both Washington and California and appears to have been residing in Southern California. He has been detained at the Federal Detention Center at SeaTac since being charged by criminal complaint on September 20, 2023.

Bringing an undocumented individual into the U.S. at a place other than a designated Port of Entry resulting in serious bodily injury is punishable by up to 20 years in prison. Bringing an undocumented individual into the U.S. at a place other than a designated Port of Entry is punishable by up to ten years in prison. Aiding and abetting improper entry by an undocumented individual is punishable by up to six months in prison.

The case is being investigated by Homeland Security Investigations (HSI) and U.S. Border Patrol with assistance from the Washington State Patrol and Sumas Police Department.

The case is being prosecuted by Assistant United States Attorney Sanaa Nagi.

Tacoma – A Pierce County, Washington man with a prior federal conviction for illegal gun possession, was indicted this week for unlawfully possessing firearms – including two weapons that had been modified to be machine guns, announced Acting U.S. Attorney Tessa M. Gorman. Brady Lee Eltz, 39, made his initial appearance on a criminal complaint last week, and was ordered detained. 

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

After law enforcement took Eltz info custody, they checked the bathroom at the business. Eltz had gone into the bathroom when he saw police arrive. In the cabinet below the sink police found two firearms – 9 mm handguns. One, a Glock, had an illegal switch known as an “auto-sear” installed. The switch allows the gun to be fired automatically, making it a machine gun. The Glock had been reported stolen. 

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

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

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

Illegal possession of a firearm is punishable by up to 15 years in prison. Possession of a machine gun is punishable by up to 10 years in prison.

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

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

Seattle – The Northwest Safe Trails Task Force, made up of the FBI and five western Washington Tribes, will receive $888,748 from DOJ’s Bureau of Justice Assistance to enhance efforts to battle violent crime and drug crime in tribal communities, announced Acting U.S. Attorney Tessa M. Gorman. The funding, delivered over five years, will pay for an additional federal prosecutor who can review and file cases in either tribal or federal court.

“I congratulate the Swinomish Indian Tribal Community for their successful application for this grant funding. Working to make our tribal communities safer is a key priority for the Department of Justice,” said Acting U.S. Attorney Gorman. “Having an additional prosecutor working with the Swinomish, Tulalip, Lummi, Nooksack, and Upper Skagit Tribes will improve our ability to assist the Tribes with the prosecutions they identify as key to community safety.”

Swinomish Senator Brian Porter, as Chairman of the Swinomish Law and Order Committee, championed this grant application and sees this grant as key to improving safety within tribal communities. “Partnering with our federal and tribal law enforcement is essential to combating violent and drug related crimes on our tribal lands,” said Senator Porter. “The FBI Pacific Northwest Safe-Trails Task Force has been an ally to Swinomish and our neighboring Tribes as we collaborate to prosecute large drug offenses that have a high community impact. The Safe Trails Special Assistant United States Attorney is a key component in our partnership as they will be able to work directly with our federal and tribal law enforcement to bring cases in federal court. We applaud the efforts and partnership with the United States Attorney’s Office for the Western District of Washington,” said Senator Porter.

The FBI investigates major crimes such as homicide, sexual abuse, major drug trafficking, and felony assaults on tribal land. This will be the second term of a dedicated prosecutor for the Safe Trails Task Force. During the last two-year grant period there were more than eight different federal cases prosecuted involving armed drug dealing in and around tribal communities.

“It takes resources to successfully perform our work.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Reducing and investigating violent crime on our state’s reservations is a goal for the FBI and our partners. Securing of this funding and enabling additional personnel to support investigations and prosecutions substantially advances that aim.”

The Special Assistant United States Attorney who is hired to work with the Safe Trails Task Force will join three other tribal liaisons working in the U.S. Attorney’s Office Western District of Washington. The current liaisons are Assistant United States Attorneys J. Tate London, Jocelyn M. Cooney, and Michael Harder.

Seattle – More than $4.4 million in Department of Justice funds will flow to Washington State entities to provide reentry services to those involved with the criminal justice system, announced Acting U.S. Attorney Tessa M. Gorman. The largest share of the grants – some $1.8 million – goes to the Washington State Department of Corrections for programs aimed at helping incarcerated persons be successful once released from custody.

“The vast majority of justice involved persons will be returning to our communities. It is critical that we invest in ways to improve reentry so that those former inmates can lead safe and productive lives,” said Acting U.S. Attorney Gorman. “These grants are aimed at mental health issues, substance abuse problems and family unification programs that can make a difference for individuals and for the community as a whole.”

The Department of Corrections (DOC) was awarded $550,000 to provide mental health and substance abuse treatment for 200 women at the Correction Center at Purdy. In its application, DOC says a shortage of health providers and constraints at the institution have limited the services it can provide. This additional funding will also be used to hire a psychologist and a reentry navigator to help those leaving custody to find services in the community.

The Department of Corrections was awarded $764,508 to evaluate, refine and expand services DOC provides to try to keep families together and break the cycle of intergenerational incarceration. The funding will provide access to mental health programs, substance abuse programs, and parenting skills programs. The University of Washington will help evaluate what programs are working.

Finally, DOC was awarded $534,828 to train staff in mental health disorders, and how to appropriately de-escalate and defuse mental health crises. The training will address mental health as well as co-occurring substance abuse disorder and intervention strategies. The training is for staff both at the institutions and those working in community supervision.

The non-profit organization House of Mercy of Federal Way was awarded $750,000to provide reentry services to some 864 formerly incarcerated persons.  The case management and training and reentry support will serve men returning to King, Pierce, Whatcom, Clark, Yakima, and Spokane counties. Former inmates who are involved in House of Mercy services have a re-offense rate below 5%.

Skagit County was awarded $677,356 for its Community Court. The program is an alternative problem-solving court that serves low-level non-violent offenders. The program connects the offenders with mental health and substance abuse services. Areas served include Anacortes, Burlington, Sedro Woolley, Mount Vernon, Hamilton, Lyman, Concrete, Marblemount, and Diablo.

The Suquamish Indian Tribe was awarded $784,943 for a new “Begin Again” program for those reentering the community from incarceration or court-ordered inpatient substance abuse treatment. The funding will ensure that tribal services are coordinated and culturally appropriate for those reentering the community.

And finally, Government Impact Consulting LLC of Marysville, Washington, was awarded $350,000 to work on barriers to Treatment Courts and work to enhance support for culturally appropriate treatment and recovery. The consulting group will work with community partners including Tribal Wellness to Healing courts to reduce the stigma around substance abuse treatment.

The U.S. Attorney’s Office, Western District of Washington has active programs to assist with reentry to the community for those involved with the criminal justice system. For more on those programs visit: https://www.justice.gov/usao-wdwa/reentry-program

Assistant United States Attorneys Zach Dillon and Michelle Lambert lead the reentry program in the Western District of Washington.

Seattle – More than $2 million in grants from the Department of Justice have been awarded to Western Washington tribal communities to enhance services for juveniles, announced Acting U.S. Attorney Tessa M. Gorman. The grants fund needs ranging from substance abuse and mental health treatment to academic support and getting students engaged in school.

“Each of these tribes submitted detailed proposals for how they could best use this federal money,” said Acting U.S. Attorney Gorman. “It is exciting to see how they will impact the lives of the youngest tribal members as they work to build safe and healthy communities into the future.”

The six tribal grants and their purpose are:

Stillaguamish Tribe of Indians - $499,700 to hire an online school support specialist to assist with tribal youth as risk of truancy and to develop programs to engage all youth in leadership and cultural activities.

Quinault Indian Nation - $500,000 to enhance the work of the Tribal Juvenile to Healing Wellness Court to centralize access to assistance for youth facing challenges such as substance addiction, mental health issues, absenteeism, and trauma.

Nooksack Tribe -$99,439 to assess current programming for youth and identify gaps and strategies for improvement.

Lummi Nation - $100,000 to coordinate services to tribal youth.

Nisqually Indian Tribe - $400,000 to develop a Juvenile Tribal Healing to Wellness Court - part of a comprehensive effort on behalf of the Tribe to address the increasingly serious problem of alcohol and opioid/drug use, and related crime, within the reservation population and among Tribal youth and young adults.

Lower Elwha Klallam Tribe - $500,000 for drug and alcohol prevention services through the Empowering Youth through the Ways of Our Ancestors (EYWOA) program. The program is based on evidence- and community-based participatory research that was conducted and implemented in partnership with the University of Washington’s Alcohol and Drug Abuse Institute, the Suquamish, and Port Gamble S’Klallam Tribes.

These grants are part of the Consolidated Tribal Assistant Grants for 2023 awarded by the Office of Justice Programs, Bureau of Justice Assistance.

Seattle – Two men who were federal inmates at the Federal Correctional Institute Great Plains in Hinton, Oklahoma, while organizing large methamphetamine shipments and sales, were sentenced today in U.S. District Court in Tacoma to long prison terms, announced Acting U.S. Attorney Tessa M. Gorman. Alfredo Valdovinos-Diaz, 45, previously of Vancouver, Washington, and Cosme Sanchez-Espino, 41, also previously of Vancouver, were both sentenced to 11 years in prison. Both men were indicted in 2020 and pleaded guilty to conspiracy to distribute controlled substances in July 2023.

In sentencing Valdovinos-Diaz, Chief U.S. District Judge David G. Estudillo said, drug dealing “affects families…. affects communities because of the crime associated with controlled substances, but also the effect on public services such as health care….(Drugs) take a toll on individuals who ingest a bad mixture, and maybe get a dose of fentanyl that is mixed into the methamphetamine, and they just die.”

According to records filed in the case, both men were serving lengthy prison terms for drug trafficking in the Pacific Northwest. Valdovinos-Diaz was serving an eight-year sentence for a 2015 drug trafficking conviction. In that case, Valdovinos-Diaz was responsible for directing a methamphetamine distribution network, with ties to a Mexican drug cartel, that operated out of Vancouver, Olympia, and Tacoma, and was responsible for distributing multi-kilogram quantities of heroin and methamphetamine in western Washington. Valdovinos-Diaz’ drug trafficking activity did not end with his prison term. Using a contraband cell phone, he sent and received various messages in 2019 and 2020 instructing couriers and drug suppliers about packaging large shipments of methamphetamine and how to hide it in secret compartments under the floor of a vehicle or in the vehicle bumper.

Cosme Sanchez-Espino was serving a 15-year prison sentence for a 2008 drug distribution conviction in Montana. In that case, Sanchez-Espino distributed methamphetamine from his supplier in Washington to drug distributors in Montana. Like Valdovinos-Diaz, Sanchez-Espino used contraband cell phones to direct drug trafficking to Southwest Washington. Law enforcement seized loads of 57 pounds and 25 pounds of methamphetamine connected to the men.

In asking for a sentence of eleven years for lead defendant Valdovinos-Diaz, Assistant United States Attorney Max Shiner wrote to the court, Valdovinos-Diaz’ conduct “demonstrates that he is committed to criminal activity and that his “blatant disrespect” requires additional deterrence…. (His) communications demonstrate he knew how the drugs would be packaged, transported, and stored in hidden compartments. This strongly suggests his full knowledge of the weights and quantities of the drugs involved. Second, he was an experienced leader of a drug trafficking ring in the Vancouver area who continued his drug distribution activities in that area after his conviction…”

Both defendants are citizens of Mexico who likely will be deported following their prison terms.

The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Max Shiner.

Seattle – A former King County Jail guard, two Department of Corrections inmates, and three co-conspirators were indicted by a federal grand jury for five federal felonies including bribery, drug possession with intent to distribute, and conspiracy. Those arrested today will appear in U.S. District Court in Seattle at 2:00 this afternoon.

“Fentanyl and meth are horribly destructive in our community, and our correctional institutions are not immune. The challenge of keeping inmates safe is made much more difficult when correctional staff betray their positions of trust and authority,” said Acting U.S. Attorney Tessa M. Gorman. “I credit King County law enforcement officials with working quickly and cooperatively with the FBI to identify those allegedly involved in this bribery and drug smuggling conspiracy.”

According to the indictment, former King County Jail Guard Mosses Ramos, 39, of Milton, Washington, worked as a correctional officer for 17 years - from June 2006 until he was fired in September 2023. According to the indictment, between March and May 2023, Ramos accepted bribes to bring methamphetamine and fentanyl into the jail for the benefit of inmates Michael Anthony Barquet, 37, and Francisco Montero, 25. Both men are currently incarcerated.

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

“Impact in our community is built on the foundation of partnership and trust,” said Richard A. Collodi, Special Agent in Charge of FBI Seattle. “We are grateful for the exceptional collaboration with the King County Jail, King County Sheriff’s Office, King County Prosecutor’s Office, and the U.S. Attorney's Office for their shared commitment to holding public servants who violate trust accountable and for steadfast efforts to keep drugs out of our correctional facilities. Our partners identified the actions of an employee and brought the case to our attention which resulted in a successful joint investigation. This demonstrates the commitment by public safety professionals to hold those who violate this trust to the highest standards.”

Each of the defendants is charged with four counts in the five-count indictment. Ramos is charged with soliciting and accepting a bribe. The other defendants are charged with bribery for paying the bribes. All are charged with conspiracy to engage in bribery, conspiracy to distribute controlled substances, and possession of controlled substances with intent to distribute.

ramos_et_al_indictment.pdf

For Ramos, Barquet, and Montero, the charges carry mandatory minimum sentences if convicted of ten years in prison and up to life in prison. The other defendants face up to 20 years in prison if convicted.

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

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

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

Seattle – A 40-year-old Snohomish County man who is an enrolled member of the Tulalip Tribes pleaded guilty today in U.S. District Court in Seattle to involuntary manslaughter in connection with the February 2, 2020, crash that killed the sole passenger in his truck, announced Acting U.S. Attorney Tessa M. Gorman. Danny Lee Simpson, Jr. will be sentenced by U.S. District Judge Tana Lin on January 24, 2024, at 10:00 a.m.

According to the plea agreement, Simpson, his wife, and a mutual acquaintance had been drinking at a bar in Stanwood, Washington on February 1, 2020. After midnight, Simpson drove his truck, with the acquaintance as his sole passenger, to a gravel pit owned by his parents. Simpson had recently modified his truck, so it was suitable for off road use. Simpson had failed to check the braking system on the truck.

The sand and gravel pit was poorly lit and had a sheer 40-foot cliff face. Simpson knew about the cliff. The truck overheated and stalled. At about 1:15 in the morning, Simpson backed the truck off the sheer cliff. The truck landed upside down at the bottom of the cliff. The crash killed Simpson’s passenger – another member of the Tulalip Tribes. Simpson admits he knew or could have reasonably foreseen that it was dangerous to drive under the influence of alcohol near the cliff face in a dark, wet, and poorly lit gravel pit.

Prosecutors have agreed to recommend no more than 18 months in prison. Judge Lin is not bound by the recommendation and can impose any sentence up to the maximum of eight years in prison.

The case was investigated by the FBI and the Tulalip Police Department.

The case is being prosecuted by Assistant United States Attorneys J. Tate London and Jocelyn Cooney. Mr. London and Ms. Cooney serve as Tribal Liaisons for the U.S. Attorney’s Office, Western District of Washington.

Seattle – The U.S. Department of Justice is awarding more than $2.5 million in grants to three non-profit organizations that work to combat human trafficking and support survivors, announced Acting U.S. Attorney Tessa M. Gorman. The three non-profits focus their work on different geographic areas of Western Washington.

“The U.S. Attorney’s Office in Western District of Washington is a leader in prosecuting cases of human trafficking – whether it is sex trafficking of vulnerable victims or labor trafficking of immigrants who feel helpless to escape,” said Acting U.S. Attorney Gorman. “This grant funding will ensure the victims of modern-day slavery are rescued and supported as they put their lives back together.”

The largest grant, $950,000, is awarded to Innovations Human Trafficking Collaborative (IHTC) to provide support and resources to 300 survivors of sex and labor trafficking in the South Sound region. Specifically, the organization will focus on Thurston, Lewis, Pierce, and Mason counties and among ten tribes: Nisqually, Chehalis, Tulalip, Puyallup, Cowlitz, Quileute, Lower Elwha Klallam, Muckleshoot, and Hoh tribes. IHTC will provide training on best practices for local law enforcement, health, mental health, and social services providers while also mobilizing a network of non-profits, government agencies, the faith community, tribal elders, and businesses who can assist those seeking to escape human trafficking.

Seattle’s International Rescue Committee was awarded $800,000 to provide evidence-based and trauma informed Mental Health and Psychosocial Support (MHPSS) services to survivors of human trafficking in King County. Primary activities include individual counseling, group support, and case management services to survivors and training and technical assistance to providers to increase their capacity to serve survivors.

Finally, the Northwest Immigrant Rights Project (NWIP) was awarded $800,000 to provide legal services to human trafficking survivors in southwest Washington and on the Olympic Peninsula. Two other non-profits will have services funded through this grant award: Centro Integral Educativo Latino de Olympia (CIELO) an organization dedicated to meeting the human service needs of Latino residents of three rural counties with high risk for labor trafficking, specifically in non-timber forest harvesting, fishing/shellfish, and agriculture; and Pueblo Unido PDX, an organization dedicated to more effectively serving the immigration legal needs of indigenous language speakers. NWIP will oversee these subgrants.

Seattle – The U.S. Department of Justice Office on Violence Against Women has awarded $5.6 million to six Western Washington tribes and a non-profit entity working to combat domestic and sexual violence in tribal communities, announced Acting U.S. Attorney Tessa M. Gorman. The funding will be used for a range of services from emergency shelter to legal assistance to counseling for victims of domestic violence.

“We know that rates of domestic and sexual violence are disproportionately higher for Alaska Native and American Indian women. These grant funds are critical to providing safety in our tribal communities,” said Acting U.S. Attorney Tessa M. Gorman. “We welcome the coordinated effort by the Women Spirit Coalition to bring this grant funding to Western Washington.”

The tribal grants include:

Port Gamble S’Klallam Tribe - $1 million for transitional housing and to strengthen tribal court system interventions.

Makah Tribe - $425,000 for education and intervention strategies on domestic violence, sexual assault, and sex trafficking.

Snoqualmie Indian Tribe - $998,595 for planning and implementing a supervised visitation program; providing no-cost civil legal services for survivors; and continuing their advocacy and support efforts.

Confederated Tribes of the Chehalis Reservation - $650,000 – to enhance services such as crisis intervention, advocacy, emergency shelter, supportive counseling, information, and referral services.

Quileute Tribe - $650,000 - the New Beginnings Program will continue effective advocacy responses for victims of domestic violence including emergency transportation, housing assistance, and transitional housing assistance.

Tulalip Tribes -$1.5 million – as part of the Special Tribal Criminal Jurisdiction Program to enhance programs through the tribal prosecutor’s office that hold non-natives responsible for their crimes and provide support and safety for tribal victims.

Washington State Native American Coalition against Domestic Violence and Sexual Assault - $382,188 – for the Women Spirit Coalition that works with 22 tribes on anti-violence work and community awareness.

Additionally, DOJ announced $1.5 million in funding to the Washington State Attorney General’s Office to investigate Missing and Murdered Indigenous persons in “cold cases” – these are cases that occurred before 1980. The Attorney General’s Office will work with the tribes and their tribal archives to research and identify pre-1980 cold cases with civil rights violations involving Indigenous victims and create an inventory of these cases. The grant will produce a public report documenting what was found over the course of research.

Seattle – Two nursing home chains in Western Washington have resolved allegations they violated the Americans with Disabilities Act (ADA) by denying admission to prospective residents because of their Substance Use Disorder (SUD). One of the nursing home groups resolved a second ADA complaint that it failed to provide a sign-language interpreter for a patient who is deaf.

“It can be difficult to find appropriate nursing home care for our loved ones,” said Acting U.S. Attorney Tessa M. Gorman. “It should not be made more difficult by care centers who discriminate against those with disabilities, violating the ADA. I am pleased that both skilled nursing groups identified in these cases are changing their policies and training to comply with the ADA.”

Avalon Health Care Management Inc. manages three care centers in Western Washington: Avalon Care Center Federal Way; Benson Heights Rehabilitation Center; and Grays Harbor Health and Rehabilitation. The company previously managed Willapa Harbor Health and Rehabilitation. An investigation by the U.S. Attorney’s Office determined that Avalon facilities engaged in discrimination by denying admission to individuals with a Substance Use Disorder (SUD). The U.S. Attorney’s Office found that in some instances, patients were denied admission because they were prescribed FDA approved medication for Opioid Use Disorder (OUD). As part of the settlement Avalon will submit a draft non-discrimination policy to the U.S. Attorney’s Office for review. After approval, Avalon will post the policy at its facilities and will train its employees and contractors on the policy and on medications to treat SUD. Avalon will keep training and admission logs for review by the government and will alert government investigators to any ADA complaints. Avalon is to pay the government $12,000. However, $10,000 of the penalty is suspended pending successful compliance with the requirements of the settlement.

Arcadia Medical Resorts operates two skilled nursing care facilities in Renton as well as facilities in University Place and Union Gap, Washington. The U.S. Attorney’s Office investigation determined that individuals were denied admission to the Arcadia facilities because of their Substance Use Disorder (SUD). Arcadia agrees to update its policies and not discriminate against persons who have been prescribed medication for their Opioid Use Disorder. The chain will undertake new training and keep logs of training and patient admissions. Any ADA complaints will be forwarded to the U.S. Attorney’s Office. Like Avalon, Arcadia will pay the government $12,000. However, $10,000 of the penalty is suspended pending successful compliance with the requirements of the settlement.

Finally, in a different settlement, Avalon Health Care - Federal Way LLC, has agreed to pay a patient who is deaf $20,500, for violating the ADA by failing to provide the patient with a qualified sign-language interpreter while the patient was recovering from back surgery. The patient was in the facility from February 18, 2021, to March 11, 2021. Avalon did not act on the patient’s requests for a sign-language interpreter so the patient could not communicate with staff about her treatment plan or physical therapy.

Avalon disputes many of the government findings, but to avoid the cost and uncertainty of litigation, is choosing to resolve the matter. The settlement requires Avalon to put training, policies, and procedures in place to ensure staff do not violate the ADA and provide appropriate communication devices or services to the patients who need such assistance. The settlement lists a number of required improvements regarding evaluations, contracting, dissemination of policies and complaint tracking. The government will review the compliance for 18 months.

The patient who is deaf was referred to the U.S. Attorney’s Office by the Northwest Justice Project.

The U.S. Attorney’s Office for the Western District of Washington has investigated several similar complaints from patients who are deaf or hard of hearing regarding failures to provide communication assistance in the health care setting. Those settlements are detailed in the Disability Rights section of our website.

Tacoma – A Sumner, Washington man who has lived under a false identity for more than 25 years was arrested on a federal criminal complaint for Aggravated Identity Theft, falsely claiming to be a U.S. Citizen, and using a false document, announced Acting U.S. Attorney Tessa M. Gorman. Roberto Manzano, 53, was taken into custody yesterday and appeared in U.S. District Court in Tacoma. He was detained pending additional court proceedings next month.

According to the complaint, Manzano began living under a false identity shortly after a California court issued a warrant for his arrest in 1996 on domestic violence related assault and kidnapping charges. Manzano has been using an identity that belongs to a real individual, without that person’s knowledge. He used the identity for his employment with a logistics company in the Seattle area.  Manzano also used the identity to pass necessary clearance checks required by the Transportation Security Administration to perform his work at this logistics company. In evaluating his most recent application, TSA Investigations noticed some conflicting information and referred the matter to the Diplomatic Security Service for investigation.

Manzano has also used the identity to unlawfully vote in state and national elections since approximately 2004. 

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

Aggravated Identity Theft is punishable by a mandatory minimum two years in prison on top of any other sentence imposed in the case. Falsely claiming to be a U.S. Citizen is punishable by up to three years in prison and using a false document is punishable by up to five years in prison.

The case is being investigated by the Diplomatic Security Service (DSS) with assistance from the TSA.

The case is being prosecuted by Assistant United States Attorney Sean Waite.

Seattle – The U.S. Department of Justice Office of Justice Programs has awarded more than $5.9 million in federal grants to improve drug treatment and family recovery programs, announced Acting U.S. Attorney Tessa M. Gorman. The funding is going to Mason County, the cities of Kirkland and Olympia, the Quinault Indian Nation, Tulalip Tribes, and the Puyallup Tribe.

“On this Red Ribbon Week when we celebrate living drug free, I am excited to see new programs aimed at ending drug addiction,” said Acting U.S. Attorney Gorman. “Each of these entities has identified ways to improve their services and help those struggling with addiction and mental health challenges. Justice Department funding will help identify best practices that can be replicated elsewhere.”

The City of Kirkland, Washington, was awarded $1,286,400 to implement an opioid and substance abuse screening and treatment program in their jail. The program will include medication assisted treatment options both in custody and for those transitioning into the community.

The City of Olympia, Washington was awarded $1,000,000 to support training for first responders and to expand the capacity and the hours of operation for a diversion program. The grant will further support the creation of an adult mental health program. A research team from Washington State University will evaluate the project’s success.

Mason County’s Family Recovery Court was awarded $890,675 to enhance its support programs. The improvements are aimed at increased parent engagement, reduced substance use, and reduced mental health issues among parents.

Both the Quinault and Puyallup tribes are receiving about a million dollars to enhance drug treatment services for tribal members. The Quinault Adult and Family Healing to Wellness court will use $1 million to expand services to assist families in recovery. The three-year initiative will provide stabilizing services for those with drug use disorders.

Similarly, the Puyallup Tribal community was awarded $999,324 to reduce barriers to treatment services and increase the length of time a person is supported in treatment. Grant funds will also be used to strengthen family education and engagement in recovery.

The Tulalip Tribes were awarded $749,828 to expand the capacity of its Health and Wellness Court program by hiring additional staff and creating an alumni support network for those who have completed treatment.

To learn more about Red Ribbon week visit: https://www.redribbon.org/about

Seattle – A federally convicted Ponzi schemer was arrested today in South Florida following an hours-long stand-off with FBI Miami, announced Acting U.S. Attorney Tessa M. Gorman. In December 2022, Volodimyr Pigida, a Miami area resident who previously resided in Bellevue, Washington, was found guilty by a jury in the Western District of Washington of 26 felony counts, including conspiracy, wire fraud, mail fraud, and bankruptcy fraud, among other crimes.

In his $11 million Ponzi scheme Pigida defrauded thousands of victims. Pigida and his wife operated a ‘work-at-home’ email scheme named Trend Sound Promoter that ultimately crashed – but not before the two raided the company’s accounts to purchase homes, expensive cars, and a yacht.

On August 4, 2023, Pigida failed to appear at his sentencing hearing before the district court in Seattle. A warrant was issued for his arrest. Pigida is a naturalized U.S. Citizen who was born in Ukraine.

Pigida will appear in U.S. District Court in Fort Lauderdale tomorrow. Prosecutors will ask that he be detained and transferred to the Western District of Washington by the U.S. Marshals Service.

The FBI wanted poster is here: https://www.fbi.gov/wanted/wcc/volodimyr-pigida

The case is being prosecuted by Assistant United States Attorney Philip Kopczynski. 

Seattle – A 34-year-old Snohomish County man was sentenced today in U.S. District Court in Seattle to 8 years in prison and three years of supervised release for persistently dealing drugs while armed, announced Acting U.S. Attorney Tessa M. Gorman. Jade Alexander Beavin was caught three different times, twice with distribution amounts of narcotics while also carrying firearms. Beavin is prohibited from possessing firearms due to a lengthy criminal history. At the sentencing hearing, U.S. District Judge Richard A. Jones said, “It is an extremely dangerous circumstance when dealing that drug (fentanyl)with a firearm, because the gun is only there to protect you or protect the drugs.” 

According to records filed in the case, Beavin was arrested by law enforcement officers ten times between 2020 and 2022. The sentence imposed today references three specific incidents:

• January 24, 2020, Beavin was arrested by Everett Police officers due to an active Department of Corrections warrant. In his car Beavin had a Rossi Revolver and heroin.  Beavin also had materials to package the drug for distribution.
• On July 27, 2021, Beavin was again pulled over by Everett Police. In the vehicle was a Sig Sauer P365 9mm handgun, ammunition, and three kilos of fentanyl powder. The car also contained drug scales and a drug ledger.
• Finally, on February 25, 2022, Beavin was arrested by Everett Police on a Department of Corrections warrant. In the car was a loaded Taurus 9mm firearm.

Beavin is prohibited from possessing firearms due to multiple previous convictions: Residential Burglary, Second Degree Taking a Motor Vehicle Without Permission, and Bail Jumping, all in Snohomish County in 2018.

In asking for an eight-year prison sentence, Assistant United States Attorney Cecelia Gregson wrote to the court, “The defendant’s prior encounters with the criminal system also failed to deter or dissuade him from selling drugs and carrying firearms. A review of the defendant’s criminal history establishes that from the age of eighteen, the defendant has been in a revolving door of crime commission to prison admission.”

Speaking to the court, Beavin said, “I’ve struggled with addiction for the last ten years of my life… I made excuses and that is what I think addiction does to you – it takes away accountability…. Please help me.”

Judge Jones recommended drug treatment while incarcerated and ordered treatment as part of Beavin’s supervised release saying, “You have to make an affirmative decision that you want to change your life… Every day you need to get up and commit yourself to saying, ‘I need to make a change.’”

The case was investigated by the Everett Police Department with assistance from the FBI.

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

This case is 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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

Tacoma – A 21-year-old Taholah, Washington, man pleaded guilty today in U.S. District Court in Tacoma to abusive sexual contact in connection with the sexual assault of a teenager on the Quinault Nation reservation, announced Acting U.S. Attorney Tessa M. Gorman. Jerimiah McCrory was arrested in July 2021, after a teen victim reported McCrory raped her after attending a gathering on the Quinault reservation.  The investigation by Quinault Nation Police and the FBI revealed that other teens also had been sexually assaulted.

According to the plea agreement, the sexual assault of one teenager occurred on April 12, 2021, when McCrory and the victim were visiting a home on the Quinault Nation reservation. McCrory admits that he sexually assaulted the teen and pleaded guilty to abusive sexual contact in connection with that assault.  As part of the plea agreement, McCrory admits two other sexual assaults against teenage victims in 2019.  Those facts can be considered by the judge at sentencing as relevant conduct.

Under the terms of the plea agreement, prosecutors will recommend a sentence no higher than the top of the guidelines range. McCrory is scheduled for sentencing on January 26, 2024.

U.S. District Judge Ricardo S. Martinez is not bound by the recommendation and can impose any sentence allowed by law.  Abusive sexual contact is punishable by up to ten years in prison.

The case was investigated by the Quinault Nation Police and the FBI.

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

Seattle – Organizations dedicated to supporting victims of domestic violence, sexual assault, and stalking are receiving more than $3.6 million in federal grant funds to enhance their programs, announced Acting U.S. Attorney Tessa M. Gorman.  The largest award, $750,000, goes to the Washington State Coalition Against Domestic Violence to enhance services for survivors in rural areas of the state.  The funds support culturally appropriate programs in Skagit and Whatcom counties in Western Washington as well as Benton, Franklin, Walla Walla, and Yakima counties on the east side of the state.

“On this day when we wear purple to show support for the survivors of domestic violence, I am pleased to highlight the DOJ funding coming to Washington for the organizations that work to help and heal those who suffer abuse,” said Acting U.S. Attorney Tessa M. Gorman.  “The Office on Violence Against Women targets these federal dollars where they can do the most good, and it is a tribute to the quality of the programs in Washington that so many organizations successfully competed for these grants.”

In addition to the grant to the Washington Coalition against Domestic Violence, the Northwest Immigrant Rights Project received $500,000 to provide services in Adams, Benton, Chelan, Franklin, Grant, Okanogan, and Yakima counties.

The five other grant recipients include:

The Atlantic Street Center, Seattle - $575,000 – to enhance advocacy and therapeutic services in King and Pierce Counties with specific emphasis on communities of color.

YMCA of Clark County, Vancouver, Washington - $500,000 – to provide housing and supportive services for victims of domestic violence.

Turning Pointe Survivor Advocacy Center, Shelton, Washington - $500,000 to provide services in Mason County, including advocacy and outreach, training for first responders and language services.

Consejo Counseling & Referral Inc., Renton, Washington, - $400,000 to provide crisis intervention, safety planning, and therapeutic services to Hispanic/Latino survivors in King County.

The Yarrow Project, Normandy Park, Washington - $385,000 – to provide services to indigenous survivors of domestic abuse, sexual assault, and stalking.

October marks the observance of Domestic Violence Awareness Month. 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.

Seattle – The U.S. Department of Justice, Office of Justice programs is awarding more than $11 million in grant funding to entities in Washington State to combat community violence, especially youth violence, announced Acting U.S. Attorney Tessa M. Gorman. The two largest grants of $4 million each are going to the state and a King County non-profit for distribution to smaller community-based organizations.

“These federal dollars will help identify and support local programs that are working to reduce violence in our community,” said Acting U.S. Attorney Gorman. “I am particularly pleased to see the focus on youth violence and stopping gun crime. The epidemic of gun violence in our neighborhoods requires a sustained response from both law enforcement and community.”

The Washington State Department of Commerce was awarded $4 million to implement a Community Based Violence Intervention and Prevention Initiative to expand programs that address community violence across the state.  The money is targeted towards underserved communities. As part of this work the grant will fund a statewide summit to share tools and knowledge about what is working to decrease community violence.

Similarly, a $4 million grant to Seattle’s Children & Youth Justice Center will provide support, training, and technical assistance to up to five community-based organizations who are serving youth in King County to prevent community violence.  Additionally, the King County Department of Community and Human Services, Children Youth and Adult Division was awarded $1 million to implement policies aimed at reducing recidivism and enhancing community partnerships to reform the youth justice system.

Both the Eastern District of Washington and the Western District of Washington were awarded Project Safe Neighborhood grants aimed at combatting gun violence.  For western Washington $285,039 will go towards projects that prevent gun violence in the South Sound, Clark County, and Snohomish County regions.  In eastern Washington $110,648 will support gang and gun violence intervention in Yakima and Kennewick.

Additionally, Tacoma Police were awarded $800,000 to improve their investigation of gun crime.  The grant is to fund implementation and evaluation of ShotSpotter technology to identify precise locations of gunshots. The money will also fund additional fingerprint technology and equipment to improve the collection of evidence at crime scenes.

Finally, Educational Service District 112 in Clark County was awarded $1 million to implement an innovative school-based mental health treatment and case coordination program for students who are involved with the juvenile justice system or have been identified through the Student Threat Assessment process.  The money will fund three therapist who will serve students in schools in the nine districts that make up the Service District.

Tacoma – A 41-year-old Thurston County resident was arraigned today in U.S. District Court in Tacoma on two federal charges connected to threats made to a Black federal employee at the Social Security office in Olympia, Washington, announced Acting U.S. Attorney Tessa M. Gorman.  Steven L. Veres, remains detained pending trial which is now scheduled for November 28, 2023.

According to records filed in the case, on February 16, 2023, Veres and a companion went to the Olympia, Social Security Office seeking a replacement Social Security card.  At the first visit, a Social Security employee, who is Black, told Veres what documents he could use to get a replacement card.  When Veres returned to the office a second time, the employee told him the paperwork Veres brought still did not meet the requirements for a new card to be issued.  Veres became angry, used racial slurs, and threatened to assault or kill the worker.

Veres is charged with Influencing a federal official by threat, and interference with federally protected activities.  The grand jury alleges that Veres intentionally threatened the victim because of his race.

Influencing a federal official by threat is punishable by up to 10 years in prison, a $250,000 fine, and 3 years of supervised release.  Interference with a federally protected activity is a misdemeanor punishable by up to a year in prison.

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

The case is being investigated by the Federal Protective Service.

The case is being prosecuted by Assistant United States Attorneys Will Dreher and Jocelyn Cooney in coordination with the U.S. Department of Justice Civil Rights Division.

Tacoma – A 32-year-old Port Townsend, Washington man was arrested yesterday on a criminal complaint charging him with production of images of child sexual abuse, announced Acting U.S. Attorney Tessa M. Gorman. Matan Liyor Goodman is scheduled to appear in U.S. District Court in Tacoma at 2:00 PM today.

According to records filed in the case, the investigation began with a report to the National Center for Missing and Exploited Children (NCMEC) that a user of Kik Messenger had uploaded suspected images of child sexual abuse. Review of the computer records indicated the person uploading the images resided in Western Washington and the information was forwarded to the Internet Crimes against Children Task Force at the Seattle Police Department.

An agent with Homeland Security Investigations connected the computer information with Goodman at an address in Port Townsend. Further investigation revealed that Goodman is a registered sex offender due to convictions in California.

Law enforcement obtained a judicially approved search warrant to search Goodman’s home and person, including any electronic devices belonging to him.

Following the search, Goodman was taken into federal custody on probable cause.

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

Due to his prior convictions, Goodman faces a mandatory minimum 25 years in prison if convicted of Production of child pornography.

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

The case is being investigated by Homeland Security Investigations in partnership with the Seattle Police Internet Crimes Against Children Task Force (ICAC), with assistance from the Jefferson County Sheriff’s Office.

The case is being prosecuted by Assistant United States Attorneys Victoria Cantore and Matthew Hampton.

Seattle – The former plant manager of a barrel cleaning and reconditioning company, Seattle Barrel and Cooperage Company, was sentenced today in U.S. District Court in Seattle to 30 days in prison and four months of home detention for conspiracy and making a false statement to the Environmental Protection Agency, announced Acting U.S. Attorney Tessa M. Gorman. John Sanft, 58, pleaded guilty in January 2022. He was the company’s plant manager during a conspiracy to illegally dump caustic waste into the King County sewer system, which ultimately empties into Puget Sound.  The company used a hidden drain, and, over ten years, lied to regulators to carry out their illegal dumping.

At today’s sentencing hearing, U.S. District Judge Richard A Jones told Sanft, “You were aware of the hidden drain at Seattle Barrel. You were willfully making false statements to regulators…. You chose to lie and lie and continue to lie.”

Last month, company owner Louie Sanft was sentenced to 18 months in prison, a $250,000 fine, and three years of supervised release. The company was sentenced to be on five years of probation.

According to records in the case and testimony at trial, Seattle Barrel’s business involves collecting used industrial and commercial drums and reconditioning and reselling them. Part of the reconditioning process involved washing the barrels in a highly corrosive chemical solution. The caustic solution has a very high pH level. Since at least 2009, Seattle Barrel has operated under a discharge permit that prohibits it from discharging wastewater over a certain level of corrosivity (a pH exceeding 12) to the sewer system. Wastewater above pH 12 will corrode the sewer system and treatment plant, and potentially cause pass-through pollution to Elliott Bay and Puget Sound.

In 2013, King County conducted covert monitoring of Seattle Barrel, and discovered the company was illegally dumping effluent with a pH above 12 in violation of its permit. King County fined the company, but the pollution did not stop. Beginning in 2016, Louie Sanft represented to King County in written monthly certifications that the company had become a “zero discharge” facility and was not discharging any industrial wastewater to the sewer.

In fact, in 2018 and 2019, additional covert monitoring by the EPA’s Criminal Investigation Division revealed that Seattle Barrel was continuing to routinely dump wastewater with a pH above 12 into the sewer system despite telling local regulators that no industrial wastewater was being discharged. Agents then installed real-time monitoring equipment that allowed them to determine when the dumping was taking place.

Early on the morning of March 8, 2019, the covert monitors indicated Seattle Barrel was dumping high-pH material into the sewer. Agents immediately executed a search warrant and entered the building. Inside, they discovered a portable pump on the floor near the tank of caustic solution. They then discovered that the pump was being used to pump solution to a nearby hidden drain that had never been disclosed to King County. The drain led directly to the sewer system.

Seattle Public Utilities says the sewer lines downstream from Seattle Barrel are prematurely damaged and will need early repair. These discharges put utility workers at risk, as such caustic chemicals can cause blindness, skin necrosis, bone damage, and even death.

Louie Sanft, the owner and operator of Seattle Barrel, was convicted after a three-week trial of conspiracy, 29 violations of the Clean Water Act for discharging pollutants to the sewer, four counts of submission of False Clean Water Act Certifications and making a false statement to special agents of the EPA. In sentencing John Sanft, Judge Jones noted that unlike Louie Sanft, John Sanft did not lie to the jury from the witness stand.

According to Seattle Barrel, the company stopped using caustic solution after EPA executed the search warrant in 2019.

This case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the King County Industrial Waste Program and the Seattle Public Utilities, Drainage and Wastewater Source Control Division. 

The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Thomas Woods, and Special Assistant United States Attorneys Karla Perrin and Gwendolyn Russell, Regional Criminal Enforcement Counsel with the Environmental Protection Agency.

Tacoma –A 44-year-old former bank manager from Battle Ground, Washington, pleaded guilty today in U.S. District Court in Tacoma to Bank Fraud and Aggravated Identify Theft, announced Acting U.S. Attorney Tessa M. Gorman. Brian Davie, a former branch manager at Wells Fargo, used unauthorized cash withdrawals, money transfers, and cashier’s checks to steal over $1 million. Davie targeted elderly and vulnerable customers. Eight victims have been identified. One woman had more than $566,000 stolen from her retirement accounts. Davie is scheduled for sentencing by U.S. District Judge Benjamin H. Settle on January 2, 2024.

Davie worked for Wells Fargo in Battle Ground from March of 2014 until he was fired in June 2019. According to records in the case, Davie used his position as a manager at the branch to conduct unauthorized transactions. Davie had access to customer files containing information about bank account balances. Davie hid his criminal activity by repeatedly exchanging cashier’s checks until they were small enough to cash without triggering banking reporting requirements.

Davie continued undetected because he stole from elderly customers who might be less likely to closely monitor their account balances. Some of Davie’s victims had dementia or had limited English skills and did not understand banking transactions. In at least one case, Davie failed to file the paperwork to install a victim’s relative as a co-signer on the victim’s accounts. That failure prevented the relative from being able to monitor the account and detect the fraudulent transactions.

Davie deposited some of the stolen money in an account he created in the name of a relative’s business. He made some of the cashier’s checks payable to that relative or to the business account he created. Much of the money was withdrawn as cash.

In all Davie embezzled S1,279,840 from victim accounts. Wells Fargo reimbursed victims for their losses. Judge Settle will determine the amount of restitution at sentencing.

Prosecutors have agreed to recommend a four-year prison sentence. The actual sentence will be determined by Judge Settle who will consider a number of statutory factors before determining the appropriate sentence.

This case was investigated by the FBI with assistance from the Wells Fargo investigation team.

This case is being prosecuted by Assistant United States Attorney Zachary Dillon.

Tacoma – The former Executive Director of the Western Washington Indian Employment Training Program (WWIETP) pleaded guilty today in U.S. District Court in Tacoma to embezzling from a program receiving federal funds, announced Acting U.S. Attorney Tessa M. Gorman. Debbie Rawle, 68, of Tacoma served as Executive Director of the tribally owned non-profit job training program for several years until October 2019. The non-profit is now defunct and no longer receiving any federal funds. Rawle is scheduled to be sentenced by Chief U.S. District Judge David G. Estudillo for the embezzlement of nearly $100,000 on January 5, 2024.

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

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

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

“The Western Washington Indian Employment and Training Program (WWIETP) provided education, job training, and employment services to Native Americans through grants funded by the U.S. Department of Labor. As Executive Director, Debbie Rawle used her position at the WWIETP to embezzle these funds to personally enrich herself. We will continue to work with our law enforcement partners to aggressively identify those who commit similar crimes and bring them to justice,” said Quentin Heiden, Special Agent-in-Charge, Western Region, U.S. Department of Labor, Office of Inspector General.

Rawle has agreed to pay $99,990 in restitution. Embezzlement from a program receiving federal funds is punishable by up to ten years in prison and a $250,000 fine. The actual sentence will be determined by Chief Judge Estudillo who will consider a number of statutory factors before determining the appropriate sentence.

The case was investigated by the U.S. Department of Labor, Employment and Training Administration, Division of Indian and Native American Programs (“DINAP”). The case is being prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.

Seattle – More than a dozen law enforcement agencies in western Washington received U.S. DOJ Byrne grant funding to support local needs ranging from body-worn camera programs, to specialized equipment needs, to community outreach programs, announced Acting U.S. Attorney Tessa M. Gorman. The grants have been awarded over the last few weeks in advance of the new fiscal year.

“The largest amount of Byrne Grant funding, some $2 million, goes to the King County Sheriff’s Office to pay for implementation of body-worn cameras and for hiring mental health professionals as part of the King County Crisis Intervention team,” said Acting U.S. Attorney Gorman. “But even the smaller grants can make a big difference in jurisdictions where leaders have identified specific needs in their communities.”

The City of Seattle was awarded $918, 880 as the fiscal agent for a dozen neighboring jurisdictions. Some of the grant funding includes: $38,323 for fireworks emphasis patrols in Auburn; $10,861 for de-escalation tools in Des Moines; $11,310 for less lethal equipment in Shoreline; and $369,623 to help fund anti-crime coordinators in Seattle. The coordinators will work with populations that have special needs such as the elderly, immigrant, or disabled members of our community.

These are the other Byrne grant recipients and the grant purpose:

Bremerton - $17,240 – Crime prevention activities and initiatives

Port Angeles/Clallam County - $13,720 – Body worn camera program

Marysville - $13,541 – fingerprinting equipment, street cameras, language programs

Puyallup - $13,396 – automated fingerprint equipment

Longview - $11,852 – School resource officer

Lynnwood - $11,780 – firearms and accessories for officers

Everett - $39,544 – polygraph and police pursuit equipment

Kitsap County - $45,613 – purchase of police training simulator

Lakewood - $45,051 – video monitoring equipment and crime analysis software

Bellingham/Whatcom County - $47,374 – equipment for the Civil Disturbance Unit and citizen engagement software. Whatcom Co. - officer safety equipment.

Clark County - $140,576 – to strengthen community policing and enhance public protection

Tacoma/Pierce County - $358,803 – Tacoma: youth crime reduction programs. Pierce County: sex offender records management and notification.

The Byrne Grants are named in honor of New York City Police Officer Edward R. Byrne, who was killed in the line of duty on February 26, 1988. Officer Byrne was just 22 years old.

Tacoma – A 37-year-old Tacoma, Washington, man was sentenced today in U.S. District Court in Tacoma to 198 months in prison for production and possession of images of child sexual abuse. William Alexander Crisolo has been detained since his arrest on October 1, 2021, when an investigation revealed Crisolo was using computer networks to trade sexually explicit images of young children. At the sentencing hearing, Chief U.S. District Judge David G. Estudillo said, "There is one unbreakable rule.... to protect (a) child. To do no harm. You betrayed that rule... The trauma you caused will last a lifetime." 

According to records filed in the case, Homeland Security Cyber Crimes Center received a tip from a foreign law enforcement agency that Crisolo was claiming, via internet chats, that he was abusing two different minor children and filming the abuse. Law enforcement moved to search Crisolo’s residence and electronic devices. On his custom-built computer, investigators found more than 4,000 child sexual abuse images and 100 child sexual abuse videos. On Crisolo’s phone, law enforcement identified sexually explicit images of the two young child victims.

The case was investigated by Homeland Security Investigations with assistance from the Tacoma Police Department.

The case is being prosecuted by Assistant United States Attorneys Zachary Dillon and Matthew Hampton.

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

Seattle – A former U.S. Army Sergeant whose last duty post was Joint Base Lewis-McChord (JBLM) in western Washington was arrested today on an indictment charging him with two federal felonies: attempt to deliver national defense information and retention of national defense information. Joseph Daniel Schmidt, 29, will appear in U.S. District Court for the Northern District of California this morning and will be brought to the Western District of Washington for further court proceedings.

“Individuals entrusted with national defense information have a continuing duty to protect that information beyond their government service and certainly beyond our borders,” said Assistant Attorney General for National Security Matthew G. Olsen. “The National Security Division is committed to identifying and holding accountable those who violate that duty.”

“Joseph Daniel Schmidt was once a trusted guardian of our nation’s secrets and swore an oath to defend and protect US national security,” said Assistant Director Suzanne Turner of the FBI’s Counterintelligence Division. “As alleged by the government, Schmidt betrayed his promise and potentially placed our nation at risk in his attempts to pass national defense information to Chinese security services. The FBI and our partners remain steadfast in our commitment to protecting the American people and U.S. national security."

“Members of our military take a sworn oath to defend our country and the Constitution. In that context the alleged actions of this former military member are shocking – not only attempting to provide national defense information, but also information that would assist a foreign adversary to gain access to Department of Defense secure computer networks,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “I commend the FBI for their diligent work to end his alleged efforts to betray our country.”

According to records filed in the case, Schmidt was an active-duty soldier from January 2015 to January 2020. His primary assignment was at JBLM in the 109th Military Intelligence Battalion. In his role, Schmidt had access to SECRET and TOP SECRET information. After his separation from the military, Schmidt allegedly reached out to the Chinese Consulate in Turkey and later, the Chinese security services via email offering information about national defense information.

In March 2020, Schmidt traveled to Hong Kong and allegedly continued his efforts to provide Chinese intelligence with classified information he obtained from his military service. He allegedly retained a device that allows for access to secure military computer networks and offered the device to Chinese authorities to assist them in efforts to gain access to such networks.

Schmidt remained in China, primarily Hong Kong, until this week when he scheduled to fly to San Francisco. He was arrested at the airport.

Attempt to deliver national defense information and retention of national defense information are both punishable by up to 10 years in prison and a $250,000 fine.     

The FBI is investigating the case, with valuable assistance provided by the U.S. Army Counterintelligence Command.

Assistant U.S. Attorney Todd Greenberg for the Western District of Washington and Deputy Chief Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

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

A former U.S. Army Sergeant whose last duty post was Joint Base Lewis-McChord (JBLM) in western Washington was arrested today on an indictment charging him with two federal felonies: attempt to deliver national defense information and retention of national defense information. Joseph Daniel Schmidt, 29, will appear in U.S. District Court for the Northern District of California later today and will be brought to the Western District of Washington for further court proceedings.

“Individuals entrusted with national defense information have a continuing duty to protect that information beyond their government service and certainly beyond our borders,” said Assistant Attorney General for National Security Matthew G. Olsen. “The National Security Division is committed to identifying and holding accountable those who violate that duty.”

“Joseph Daniel Schmidt was once a trusted guardian of our nation’s secrets and swore an oath to defend and protect U.S. national security,” said Assistant Director Suzanne Turner of the FBI’s Counterintelligence Division. “As alleged by the government, Schmidt betrayed his promise and potentially placed our nation at risk in his attempts to pass national defense information to Chinese security services. The FBI and our partners remain steadfast in our commitment to protecting the American people and U.S. national security."

“Members of our military take a sworn oath to defend our country and the Constitution. In that context the alleged actions of this former military member are shocking – not only attempting to provide national defense information, but also information that would assist a foreign adversary to gain access to Department of Defense secure computer networks,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “I commend the FBI for their diligent work to end his alleged efforts to betray our country.”

According to records filed in the case, Schmidt was an active-duty soldier from January 2015 to January 2020. His primary assignment was at JBLM in the 109th Military Intelligence Battalion. In his role, Schmidt had access to SECRET and TOP SECRET information. After his separation from the military, Schmidt allegedly reached out to the Chinese Consulate in Turkey and later, the Chinese security services via email offering information about national defense information.

In March 2020, Schmidt traveled to Hong Kong and allegedly continued his efforts to provide Chinese intelligence with classified information he obtained from his military service. He allegedly retained a device that allows for access to secure military computer networks and offered the device to Chinese authorities to assist them in efforts to gain access to such networks.

Schmidt remained in China, primarily Hong Kong, until this week when he scheduled to fly to San Francisco. He was arrested at the airport.

Attempt to deliver national defense information and retention of national defense information are both punishable by up to 10 years in prison and a $250,000 fine.

The FBI is investigating the case, with valuable assistance provided by the U.S. Army Counterintelligence Command.

Assistant U.S. Attorney Todd Greenberg for the Western District of Washington and Deputy Chief Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

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

Schmidt Declaration

 

Schmidt Indictment

Seattle – A 41-year-old King County man was convicted today in U.S. District Court in Seattle of being a felon in possession of firearms and ammunition, announced Acting U.S. Attorney Tessa M. Gorman. Robby Lee Robinson was convicted following a four-day jury trial. Jurors deliberated for just over an hour before returning the verdict. U.S. District Judge Tana Lin scheduled sentencing for January 10, 2023.

“This case exemplifies why we restrict gun ownership when it comes to felons,” said Acting U.S. Attorney Gorman. “Mr. Robinson had a history of poor choices that resulted in prison sentences. On November 8, 2022, he chose poorly yet again, grabbing a gun and firing at another driver while traveling down a busy highway. He is fortunate no one was injured or killed. Such conduct cannot be tolerated.”

According to records filed in the case, just after 10:00 PM on November 8, 2022, a victim called 9-1-1 reporting that he had been involved in an accident and now the other driver was shooting at him. The incident occurred on the southbound lanes of Highway 18. The driver was able to get away from the car Robinson was driving and reported to police that it appeared the car had exited the highway.

King County Sheriff’s deputies were able to locate the car with the shooter and followed it to Maple Valley where the driver finally stopped the vehicle and surrendered. In the car police found two firearms, ammunition, and shell casings.

At trial Robinson and his wife claimed the guns belonged to her and that Robinson did not know the guns were in the car. Robinson was alone in the car at the time of the accident.  He testified that he felt threatened following the collision, and then described how he chased after the driver and repeatedly fired the gun he found on the floor of the car at the taillights of the other driver.  The bullets broke a window on the victim car, and law enforcement recovered bullet fragments in the vehicle.

Robinson faces up to 15 in prison.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), the Washington State Patrol, and King County Sheriff’s Office.

The case was prosecuted by Assistant United States Attorneys Stephen Hobbs and Rachel Yemini.

Seattle – A pair of real estate professionals, who as a married couple operated a real estate investment fund, were indicted this week by the federal grand jury for conspiracy, wire fraud and money laundering, announced Acting U.S. Attorney Tessa M. Gorman. Paul Waln, 58, of Dallas, Texas, and his ex-wife Tamara King, aka Tamara Waln, 54, of Toledo, Ohio, previously resided in Bellevue and Kirkland, Washington. The pair are scheduled to appear on the indictment on October 12.

According to the indictment, between August 2009 and December 2013, Waln solicited investments in a real estate fund called Halcyon. Twenty-two victims, most of whom were Seattle residents, invested $2.25 million in the fund. Waln told investors their funds would be pooled to purchase and renovate an apartment building in West Seattle, and then used for other real estate projects. Investors were required to leave their money in the investment pool for ten years. Waln said that at the end of the 10-year period, Waln would return the investment principal and earnings, which he estimated amount to a 20 percent annual return. Waln was entitled to receive a 1% fee for managing the investment fund.

In 2013, Waln married King, who was also a real estate agent. Waln and King then jointly managed the investment fund. Between February 2014 and December 2018, they conspired to misappropriate money from the fund to pay their personal expenses. The pair secretly transferred hundreds of thousands of dollars at a time from the fund to their management company, and then transferred the money to King’s personal accounts. In some instances, they wrote secret memos characterizing these transfers as “loans,” but the money was never repaid. Investors were never told about the “loans.”

Under the terms of the investment, Waln and King were required to distribute the investment funds to investors in 2019. But by the end of 2018, they had misappropriated all the money. In December 2018, Waln sent investors a letter falsely claiming that the fund’s general contractor had been diagnosed with cancer. Waln told investors that this would result in a two-to-three-year delay before he would be able to return investors’ money. The contractor in question never had a cancer diagnosis.

Finally, in October 2019, King informed the investors that all the money was gone, and the investment had failed. All the remaining investors lost their entire investments.

The defendants are charged with conspiracy, eight counts of wire fraud, and two counts of money laundering.

Conspiracy is punishable by up to five years in prison. Wire fraud and money laundering are punishable by up to twenty years in prison.

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

The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.

indictment_waln.pdf

Seattle – A Washington man was sentenced today in federal court for committing a hate crime in connection with an arson at a nightclub and event space in Seattle, Washington.

Kalvinn Garcia, 26, of Sedro Woolley, Washington, was sentenced to 48 months in prison followed by three years of supervised release for his bias-motivated arson at Queer/Bar, a nightclub and event space in Seattle.

According to facts admitted in his guilty plea, on Feb. 24, 2020, Garcia set fire to the contents of a dumpster in the alley directly behind Queer/Bar. Garcia was arrested only minutes after setting the fire. Garcia admitted to law enforcement that he set the fire and that he targeted Queer/Bar because it angered him to see a sign that said “queer.” Garcia also told officers, “I think it’s wrong that we have a bunch of queers in our society.” A few weeks after the incident, Garcia told a stranger that his intent in setting the fire was to trap and hurt the people inside. Garcia admitted that, through the use of fire, he willfully attempted to cause bodily injury to the occupants of Queer/Bar because of their actual or perceived sexual orientation or gender identity.

“The defendant committed an act of violence targeting innocent victims inside Queer/Bar, a known safe space for the LGBTQI+ community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Bias-motivated violence runs contrary to our values and violates our federal civil rights laws. This sentence should send the message that every person in our nation deserves equal protection under the law regardless of who they love or how they identify and that those carrying out similar acts of violence against the LGBTQI+ community will be brought to justice.”

At the sentencing hearing, U.S. District Judge John C. Coughenour said, “The potential for panic and trampling and death is incredible… Hate is hate, whether it is impacted by mental health or not.”

“Mr. Garcia endangered the lives of more than 100 people because of his hatred for members of our LGBTQI+ community,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “We work diligently with our federal, state and local partners to investigate and prosecute acts of hatred against people because of their sexuality or gender identity. This work is a priority because the effect of these hate crimes can linger in communities and traumatize the members of the targeted community for weeks, months or years after.”

“Mr. Garcia admitted to setting the fire in an effort to hurt people based on his own bias,” said Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office. “No person in the United States should fear for their safety based on their sexual orientation or gender identity. I am proud of the continued work of the FBI and our partners in protecting the civil rights of all people.”

The FBI Seattle Field Office and the Seattle Police Department investigated the case.

Assistant U.S. Attorney Will Dreher for the Western District of Washington and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section prosecuted the case.

For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.

Tacoma – A Snohomish, Washington, man who was rearrested following his sentencing in a drug trafficking scheme, was sentenced to 17 years in prison for charges including attempting to hire a hitman to kill a witness in his case, announced Acting U.S. Attorney Tessa M. Gorman.

Michael John Scott, 44, was sentenced today to 17 years in prison for Conspiracy to Distribute Controlled Substances, Possession of a Firearm in Furtherance of Drug Trafficking, Use of Interstate Commerce Facilities in the Commission of Murder for Hire, and Tampering with a Witness, Victim, or Informant. At the sentencing hearing, U.S. District Judge Robert J. Bryan said, “Mr. Scott had a long history of drug dealing capped by using interstate facilities to attempt to commit murder for hire and tampering with a witness.” Judge Bryan called these crimes “most serious offenses.”

Scott was sentenced in January 2020 to 78 months in prison for dealing fentanyl-laced pills and cocaine. According to documents filed with the court, as Scott was awaiting sentencing for his earlier drug distribution crimes, he continued to set up drug deals. Prior to Scott being remanded to custody for his 78-month sentence, he attempted to execute a drug deal. On January 30, 2020, he was arrested as he arrived to sell fentanyl pills to a person in Whatcom County. That person was working with law enforcement.

Following the January 2020 arrest, while in custody at the Federal Detention Center in SeaTac, Washington, Scott agreed to pay an associate $2,000 if he would assist Scott in finding a hitman to kill a witness against him and an associate of that witness. Scott said he would pay $10,000 each for the murders. Scott told his associate that he wanted the deaths to appear to be fentanyl overdoses. In June and July 2021, Scott wrote letters disguised as ‘legal mail’ to the person he thought was the hitman and to a friend he wanted to handle payment for the crimes. Through that friend, Scott made the upfront agreed upon payment to someone who he believed to be a hitman.

Scott pleaded guilty in June 2019 for his role in U.S. v Hernandez et al, a 32-defendant drug trafficking case that was unsealed in December 2018. Scott was a high-volume redistributor of fentanyl-laced imitation oxycodone pills and cocaine, who delivered hundreds of thousands of dollars in cash to his cartel suppliers for the drugs–sometimes as much as $150,000 at a time. When Scott’s home was searched in December 2018, law enforcement recovered illegal drugs, more than $40,000 in cash, and other tools of the drug trade.

The case was investigated by the FBI, the Whatcom County Sheriff’s Office, and the Drug Enforcement Administration (DEA).

The case is being prosecuted by Assistant United States Attorneys Kristine Foerster and Max Shiner.

Seattle – A 54-year-old Western Washington artist was sentenced today to 24 months of probation and 200 hours of community service for violations of the Indian Arts and Crafts Act by representing himself as a Native American artist, when he had no tribal enrollment or heritage, announced Acting U.S. Attorney Tessa M. Gorman. Lewis Anthony Rath, of Maple Falls, pleaded guilty in March 2023. U.S. District Judge Tana Lin thanked the tribal representatives who participated in the sentencing hearing. She read aloud the letter submitted by the San Carlos Apache Tribe Chairman, Terry Rambler, describing the harm to his 17,000 tribal members caused by Rath’s misappropriation of his Tribe’s culture in selling his fake artwork. Judge Lin also heard from Yavapai-Apache jewelry artist Matagi Sorensen who spoke about the importance of art to the survival of his people both culturally and financially.

According to documents filed in the case, the investigation of Lewis Anthony Rath began in July 2018, when the Indian Arts and Crafts Board received a complaint that Rath was representing himself as a San Carlos Apache Indian artist, when in fact, he is not an enrolled tribal member. For more than a year, Rath sold carved wooden totem poles, transformation masks, and pendants to Seattle retail stores, claiming they were Native American art.

Agents executed a federal search warrant at Rath’s residence and recovered feathers from birds protected under the Bald and Golden Eagle Protection Act and the Migratory Bird Treaty Act, according to results from the National Fish and Wildlife Forensic Lab.

In a statement to the court, Assistant U.S. Attorney Tate London stated, “Rath’s victims are real: they are Indian artists, many who struggle to make a living, who lost out on sales to those who seek authentic Indian artwork; and they are also consumers who were defrauded into purchasing fake Indian art.”

“Lewis Anthony Rath’s false Tribal affiliation involving the San Carlos Apache Tribe cheated customers and impacted the economic and cultural livelihood of Native American artists," said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “Protecting American Indian and Alaska Native culture and traditions is a critical part of the Indian Arts and Crafts Act. Our dedicated team of special agents work on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board to protect American Indian and Alaska Native artists and the consumers who purchase authentic Native American art and craftwork. This sentencing is important in the ongoing effort to hold Indian Arts and Crafts Act violators accountable. We want to thank our partners at the U.S. Department of Justice and the Indian Arts and Crafts Board for their assistance with this investigation.” 

“Counterfeit Indian art, like Lewis Anthony Rath’s carvings and jewelry that he misrepresented and sold as San Carlos Apache-made, tears at the very fabric of Indian culture, livelihoods, and communities,” stated U.S. Department of the Interior Indian Arts and Crafts Board (IACB) Director Meridith Stanton. “The IACB by statute is responsible for administering the Indian Arts and Crafts Act (IACA), an anti-counterfeiting law to protect Indian artists and consumers. Mr. Rath’s actions demean and rob authentic Indian artists who rely on the creation and sale of their artwork to put food on the table, make ends meet, and pass along these important cultural traditions and skills from one generation to the next. His actions also undermine consumers’ confidence in the Indian art market in the Northwest and nationwide. Due to the outstanding work of the Office of the U.S. Attorney-Western District of Washington and the U.S. Fish and Wildlife Service IACA Investigative Unit, Mr. Rath is being held accountable and the message is clear. For those selling counterfeit Indian art and craftwork it is important to know that wherever you are we will diligently work to find you and prosecute you under the Indian Arts and Crafts Act.” 

The case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement. The case was prosecuted by Assistant United States Attorney and Tribal Liaison J. Tate London.

Seattle – A 22-year-old French citizen from Epinal, France, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft in U.S. District Court in Seattle, announced Acting U.S. Attorney Tessa M. Gorman. Sebastien Raoult, aka Sezyo Kaizen, was arrested last year in Morocco and was extradited to the U.S. in January 2023. Raoult and two co-conspirators were indicted by a grand jury sitting in the Western District of Washington in June 2021. 

“People often think their actions from behind a screen won’t have consequences for them. Raoult and his co-conspirators used deceptive tactics to trick people into sharing personal login information and breached confidential data from numerous companies,” said Acting U.S. Attorney Tessa M. Gorman. “The FBI Seattle Cyber Task Force and our office’s cyber unit work tirelessly to ensure victims of fraud and hacking like this get justice.”

According to the plea agreement, Raoult and his co-conspirators hacked into protected computers of corporate entities for the theft of confidential information and customer records, including personally identifiable information and financial information. They hacked numerous companies, including companies in Washington State, elsewhere in the United States, and around the world. After Raoult and his co-conspirators hacked companies, a user going by the name ShinyHunters posted hacked data from many of those companies for sale on dark web forums, including RaidForums, EmpireMarket, and Exploit. Between April 2020 and July 2021, ShinyHunters posted sales of hacked data from more than 60 companies. Sometimes ShinyHunters threatened to leak or sell stolen sensitive files if the victim did not pay a ransom.

According to the records filed in the case, Raoult helped create websites that pretended to be login pages belonging to legitimate businesses. The conspirators sent phishing emails to company employees that were designed to look like they came from legitimate businesses and contained links to those login pages. Victims provided their account sign-on credentials on those fake login pages, and the conspirators obtained the victims’ credentials. Raoult and his co-conspirators used the login information to breach victims’ accounts, steal the data stored there, and search the stolen data for credentials to access additional data on companies’ networks and third-party service providers, such as cloud storage services. In total, the conspirators stole hundreds of millions of customer records and caused loss to victim companies that is estimated to exceed $6 million.

The conspiracy to commit wire fraud is punishable by a maximum of 27 years in prison. Aggravated identity theft is punishable by a mandatory minimum two-year prison term to follow any other prison sentence imposed in the case.

The case is being investigated by the FBI Seattle Cyber Task Force. The case is being prosecuted by Assistant United States Attorney Miriam R. Hinman. DOJ’s Office of International Affairs is providing substantial assistance. The Department of Justice also appreciates the significant cooperation and assistance provided by Moroccan and French authorities.

Seattle –A 42-year-old Everett, Washington, man was sentenced today in U.S. District Court to 6 years in prison and three years of supervised release for cyberstalking and making interstate threats, announced Acting U.S. Attorney Tessa M. Gorman. Christopher Scott Crawford was found guilty of an unrelenting campaign of online cyberstalking, threats, and harassment against a former romantic partner after a trial in U.S. District Court in Seattle in June of 2023. At the sentencing hearing, U.S. District Judge James L. Robart said, “The conduct that was the subject of trial was extraordinary…Concerning your respect for the law, you left behind a series of no contact and protection orders which you had no difficulty ignoring.”

“No one should have to experience cyberstalking and harassment ever. Crawford created an environment of constant fear and anxiety for the victim for three years,” said Acting U.S. Attorney, Tessa M. Gorman. “The abuse was unrelenting, and I am glad that our office and the Naval Criminal Investigative Service were able to work together to put a stop to it.”

According to records filed in the case, Crawford repeatedly violated court ordered restraining orders by sending threats by text, email, social media messages, and phone calls. Crawford sent threatening communications to various people associated with the victim in this case, such as parents, coworkers, siblings, and court-mandated professionals. The harassment included posting intimate pictures of the victim on a website and circulating private information about the victim to others. Crawford repeatedly stated to the victim and others that he wanted to make her life so miserable that she would take her own life.

In arguing for a sentence of five years before the court, Assistant U.S. Attorney, Cecelia Gregson said, “For three long years, the Defendant doggedly harassed, intimidated, psychologically harmed, socially harmed, professionally harmed, and financially harmed the victim. The intentions driving his maniacal persistence were to cause the victim to commit suicide or to create an atmosphere through cyber warfare that drew in other malevolent souls to do his bidding whether that be rape, torture, or murder.”

The matter was investigated by the Naval Criminal Investigative Service (NCIS).

The case was prosecuted by Assistant United States Attorneys Cecelia Gregson and Elyne Vaught.

Seattle – A 25-year-old Dearborn, Michigan, man was arrested today on an indictment returned in the Western District of Washington for a fraud scheme damaging retailers across the country, announced Acting U.S. Attorney Tess M. Gorman. Sajed Al-Maarej allegedly operated “Simple Refunds” through the messaging service Telegram, where coconspirators were encouraged to purchase items from retailers Al-Maarej claimed he could defraud. Al-Maarej and his staff of “professional refunders” impersonated the purchaser and lied to the retailer about the status of the item to secure a refund for the purchaser, while permitting the purchaser to keep the ordered item. In Western Washington alone, one company lost $1.4 million to the fake refund scheme.

Al-Maarej appeared in U.S. District Court in Michigan today, but ultimately will need to appear in Western Washington on the indictment.

According to the indictment, between September 2020 and December 2022, Al-Maarej represented to prospective purchasers that they could buy high value goods and keep them, while falsely claiming to the merchant company that a refund was due. Purchasers provided Al-Maarej information about their purchase (order number, name, address, value) and for a cut of the refund, Al-Maarej and his coconspirators would seek a refund by making false representations. For example, Simple Refunds would claim the item had not been delivered; was irretrievably damaged; or would have the purchaser mail a box of garbage or junk back to the company – once the package was scanned at the shipping point the refund was issued before the box arrived back and the fraud was discovered. Al-Maarej recruited “insiders” at UPS and the US Postal Service who would input false scans into the order tracking history to make it appear items had been lost in shipping, stolen from the mail, or returned to the company.

The end goal was for the purchaser to keep the product and get their money back. The purchaser then paid Al-Maarej 15-25% of the purchase price as his fee.

Al-Maarej engaged in fraudulent refunding activity as well, requesting more than $1 million in refunds from retailers throughout the country. In one instance, Al-Maarej obtained a refund for bulky tools, but he returned to the retailer an envelope filled with plastic toy frogs. He claimed that he personally obtained more than $70,000 in refunds from a Western Washington-based retailer. Al-Maarej boasted about his personal refunding achievements on Simple Refunds to lend credibility to his scheme and attract customers.

The total value of the fraudulent refunds through Simple Refunds and Al-Maarej’s own conduct is approximately $3.9 million.

The Simple Refunds channel on Telegram amassed a following of more than 1,000 subscribers. Al-Maarej used a second channel to post information on successful refunds.

The indictment details how two Snohomish County residents ordered thousands of dollars of merchandise and conspired with Al-Maarej to get the payments refunded. Al-Maarej or others at his direction, allegedly impersonated the buyers, claimed the items had been “delivered not received” and got the purchase price refunded. The customers kept the items.

In May 2022, Al-Maarej deepened his fraud by allegedly offering a “mentorship” program where he would teach others to create their own refunding scams – he charged $6,000 for admission to the program. He boasted that students would “learn from the best in the game, from everything fraud related, to legit businesses and cleaning your money.”

As alleged in the indictment, Al-Maarej used interstate wires to communicate about the frauds with coconspirators. He is charged with four counts of wire fraud for his communications with Snohomish County coconspirators. He is charged with three counts of mail fraud for three instances of packages sent to Snohomish County addresses.

Conspiracy is punishable by up to five years in prison. Mail fraud and wire fraud are punishable by up to 20 years in prison.

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

The investigation is open and ongoing with the possibility of additional charges against other defendants.

The case is being investigated by the FBI and the United States Postal Inspection Service (USPIS). The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.

Seattle –A 35-year-old man from Bellflower, California who was a leader of a multi-state methamphetamine and fentanyl distribution ring was sentenced to 15 years in prison in U.S. District Court in Seattle for drug trafficking crimes, announced Acting U.S. Attorney Tessa M. Gorman. Jose Maldonado-Ramirez has been in custody since his arrest in October 2021. At the sentencing hearing, U.S. District Judge John C. Coughenour said, “I can’t remember a prior sentencing involving this quantity of methamphetamine.”

“Our office tries to combat the fentanyl crisis by identifying and prosecuting high-level operators of large-scale trafficking schemes. This case is a perfect example,” said Acting U.S. Attorney Tessa M. Gorman. “Maldonado-Ramirez was bringing deadly drugs to communities all over the country. Thanks to our collaboration with agents and local police, we have interrupted his entire operation.”

Jose Maldonado-Ramirez plead guilty to conspiracy to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering in March 2023. A total of eighteen people were arrested and charged in relation to this case. According to records filed in the case, Maldonado-Ramirez’s narcotics operation was moving drugs from California and distributing them in King, Pierce, Thurston, Lewis, Mason, and Kitsap counties. The drug trafficking organization was also distributing drugs to locations in the Southeastern United States, the Midwest, the Northeast, and all the way to Fiji.

Over the course of an eighteen-month investigation, Drug Enforcement Administration agents seized approximately 128 pounds of methamphetamine, 37,000 fentanyl pills, and dozens of handguns. Concerningly, agents also intercepted a call between Maldonado-Ramirez and his girlfriend after a drug shipment was seized. They were discussing the identity of a local officer and plotting to kill him, according to the Government’s sentencing memorandum.

In asking for a sentence of 15 years, Assistant U.S. Attorney C. Andrew Colasurdo said in a statement to the court, “This [drug trafficking organization] was well-organized, well-sourced, and well-connected, and they were prepared to take drastic measures to protect what they had built as they openly discussed killing an officer during an intercepted conversation after a large shipment of drugs was seized.”

This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.  The investigation was led by the Drug Enforcement Administration (DEA) Seattle Field Division (SFD) Tacoma Resident Office (TRO) and Bremerton Police Department (BPD), with assistance from  Tahoma Narcotics Enforcement (TNET); the Seattle, Puyallup, Auburn, Federal Way, Kent, Bonney Lake, Tacoma,  and Lakewood Police Departments; the Pierce County Sheriff’s Office; Washington State Department of Corrections; Joint Narcotics Enforcement Team (JNET): Centralia and Chehalis Police Departments; Valley Narcotics Enforcement Team (VNET); and Washington State Patrol; Thurston Narcotics Team (TNT), Kitsap County Sheriff’s Office, and Mason County Sheriff’s Office; United States Postal Inspections Service (USPIS), Internal Revenue Service Criminal Investigation (IRS-CI), and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) with support from Northwest High Intensity Drug Trafficking Areas ( HIDTA).

The case is being prosecuted by Assistant United States Attorneys C. Andrew Colasurdo and Michelle Jensen.

Seattle – A 30-year-old man from Seattle, WA was sentenced today in U.S. District Court in Seattle to 60 months and one day in prison for drug trafficking and using a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Tessa M. Gorman. Lavonta Austin pleaded guilty in July of 2023 in U.S. District Court in Seattle. At the sentencing hearing, U.S. District Judge James L. Robart, said, “The statistics are just bleak. People die every day from drug overdoses, but you can’t have overdoses without someone selling the drugs. Gun violence is rampant in our society, but you can’t have gun violence without someone carrying a loaded 45 caliber gun.”

“Both 3rd and Pine and 12th and Jackson are areas hard hit by the dangers of fentanyl and firearms,” said Acting U.S. Attorney Tessa M. Gorman. “It is important that we do all we can to keep those areas safe, the businesses around it open, and deadly drugs off the streets.”  

According to records filed in the case, Lavonta Austin was first contacted by Seattle Police at 3rd Avenue and Pike Street in downtown Seattle on August 4, 2022. Austin sold fentanyl pills to an undercover officer, and then attempted to run from the police. The police took him into custody. Austin had been carrying methamphetamine, fentanyl, more than $2,000 in cash, and a loaded 45-caliber handgun. A few months later, on October 9, 2022, Austin was arrested at a Seattle motel with fentanyl, methamphetamine, $1,770 in cash, and a loaded 9mm handgun. Both the prosecution and the defense recommended a 5-year sentence.

Austin pleaded guilty to possession of controlled substance with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. The drug possession charge is punishable by up to 20 years in prison. The gun crime is punishable by a mandatory minimum of five years in prison that runs consecutively to the sentence imposed on the drug possession charge. 

This case is part of an effort to reduce drug trafficking and gun violence at 3rd and Pine and 12th and Jackson in Seattle. The City of Seattle, along with the Seattle Police Department, the King County Sherriff’s Office, the Drug Enforcement Agency, and the U.S. Attorney’s Office of Western Washington are all a part of this coordinated effort.

The Western District of Washington prosecuted several cases in conjunction with the effort to improve public safety on Third and Pine and 12th and Jackson. All of these cases involved charges of drug trafficking and related firearms crimes, including:

Kendall Alston, who was sentenced to 60 months and one day in February 2023;

Ceandrick Davis, who was sentenced to 60 months and one day in January 2023;

Mar’jon Guyton, who was sentenced to 24 months in January 2023;

Joseph Johnson, who was sentenced to 48 months in May 2023;

Cuong Cao and Amirkai Brown, both of whom are pending trial over the next several months.

This case was investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA). This case was prosecuted by Assistant United States Attorney Cecelia Gregson.

Seattle – A 35-year-old Renton, Washington, man was sentenced today in U.S. District Court in Seattle to 40 months in prison for his role in a plot to burn the Seattle Police Officers Guild building in downtown Seattle in September 2020, announced Acting U.S. Attorney Tessa M. Gorman. Justin Christopher Moore pleaded guilty in September 2022. At the sentencing hearing, U.S. District Judge Lauren King said, “What you did showed a complete disregard for human life. Our ability to peacefully assemble is a fundamental right to our society. Your acts of violence can deter people from exercising that fundamental right.”

According to records filed in the case, Moore made and carried a box of 12 Molotov cocktails in a protest march to the Seattle Police Officers Guild (SPOG) building on Labor Day, September 7, 2020. Ultimately the marchers were moved away from the building in downtown Seattle. Police smelled gasoline and grew concerned about the intentions of protestors. The box containing the 12 gasoline devices was found in the parking lot next to the SPOG building. Using video from that day and from other protests, as well as information from the electronic devices of other co-conspirators, Moore was confirmed as the person seen carrying the box of destructive devices. 

In June 2021, law enforcement executed a search warrant at Moore’s residence. They seized clothing that is consistent with the images of what Moore was wearing when he carried the Molotov cocktails. From the basement storage area, they also recovered numerous items that are consistent with manufacturing explosive devices. Law enforcement recovered a notebook in which Moore had made entries related to the manufacturing of destructive devices and the ingredients necessary.

In asking for a 41-month sentence, Assistant United States Attorney Todd Greenberg noted that carrying and leaving the box of explosive bottles was inherently dangerous. “Moore’s offense was extremely dangerous and created a substantial risk of injury to numerous bystanders…. Moore carried the box of twelve Molotov cocktails in a crowd of over 1,000 people who were participating in the protest march. All of them were in harm’s way if one of the devices had exploded.”.

The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Seattle Police Department.

The case is being prosecuted by Assistant United States Attorney Todd Greenberg.

In commemoration of the 29th anniversary of the original enactment of the Violence Against Women Act (VAWA), the Justice Department announced today nearly $193 million in formula and discretionary grant awards to support crucial services and justice responses for survivors of domestic violence, dating violence, sexual assault, and stalking, including $3,784,202.00 for the Western District of Washington.

For nearly three decades, VAWA has provided the tools and resources to protect and serve survivors of domestic violence, dating violence, sexual assault, and stalking. To commemorate the 29th anniversary of VAWA, the U.S. Attorney’s Office for Western Washington is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $3,784,202. to Western Washington to support community responses to gender-based violence.

Acting US Attorney Tessa Gorman commented: “I am pleased to announce that Western Washington has been awarded funding from the Office on Violence Against Women. Prosecution of those who commit violence against women, along with supporting victim services is integral to the work of our office. We are very appreciative of the benefit these grants will have on our community.”

VAWA’s signature program is the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants Program, which awards funds to every U.S. state and territory to promote a coordinated community response among law enforcement, prosecution, courts, victim services organizations, and other community services to ensure the safety of survivors. OVW is awarding $3,784,202.00 under the STOP Program to Western Washington to enhance the capacity for our community to develop programs to end gender-based violence and hold offenders accountable. 

“Prior to the enactment of VAWA, survivors were primarily left to fend for themselves, often cycling in and out of dangerous environments with little help from legal systems or service providers.” OVW Director Rosie Hidalgo said. “VAWA has changed this landscape by supporting a coordinated community response to address domestic violence, sexual assault, dating violence, and stalking in a more comprehensive manner. It emphasizes survivor-centered, trauma-informed, and community-based approaches and ensures that services are available across every state and territory.”

OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

A Washington man was sentenced today in the U.S. District Court in Seattle to 40 months in prison for his role in a plot to burn the Seattle Police Officers Guild (SPOG) building in downtown Seattle in September 2020.

According to court documents, Justin Christopher Moore, 35, of Renton, made and carried a box of 12 Molotov cocktails in a protest march to the Seattle Police Officers Guild building on Labor Day, Sept. 7, 2020. Ultimately, the marchers were moved away from the building in downtown Seattle. Police smelled gasoline and grew concerned about the intentions of protestors. The box containing the 12 gasoline devices was found in the parking lot next to the SPOG building. Using video from that day and from other protests, as well as information from the electronic devices of other co-conspirators, Moore was confirmed as the person seen carrying the box of destructive devices.

In June 2021, law enforcement executed a search warrant at Moore’s residence. They seized clothing that is consistent with the images of what Moore was wearing when he carried the Molotov cocktails. From the basement storage area, they also recovered numerous items that are consistent with manufacturing explosive devices. Law enforcement recovered a notebook in which Moore had made entries related to the manufacturing of destructive devices and the ingredients necessary.

In asking for a 41-month sentence, Assistant U.S. Attorney Todd Greenberg for the Western District of Washington noted that carrying and leaving the box of explosive bottles was inherently dangerous. “Moore’s offense was extremely dangerous and created a substantial risk of injury to numerous bystanders…. Moore carried the box of 12 Molotov cocktails in a crowd of over 1,000 people who were participating in the protest march. All of them were in harm’s way if one of the devices had exploded.”

The FBI, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department investigated the case.

Assistant U.S. Attorney Todd Greenberg for the Western District of Washington prosecuted the case, with valuable assistance provided by the National Security Division’s Counterterrorism Section.

Tacoma – A 40-year-old Tacoma resident was sentenced today in U.S. District Court in Tacoma to twenty-eight years in prison and a lifetime of supervision for producing and possessing images of child sexual abuse, announced Acting U.S. Attorney Tessa M. Gorman. A 2018 investigation revealed that Lamar Allen Thompson, who was on state supervision as a sex offender for a 2016 conviction for molesting two minor children, filmed his molestation of two different minor children. Washington State Department of Corrections Officers arrested Thompson on November 8, 2018. Thompson has been in state or federal custody ever since. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said that the crimes were “cruel and merciless.”

“This is a lengthy sentence, but necessary in this case to protect the community from an offender who would not be deterred,” said Acting U.S. Attorney Gorman. “Despite a prior prison sentence, despite state supervision and registration as a sex offender, Mr. Thompson preyed on the trust of friends and family to horribly harm additional children.”

According to records filed in the case, Thompson’s creation of images of child sexual abuse came to light when he lost his phone at a Tacoma manufacturing plant where he worked. In an effort to locate the phone’s owner, co-workers saw pictures of child sexual abuse and alerted law enforcement. Law enforcement obtained a warrant to review the phone, determined it belonged to Thompson, and discovered he had filmed his abuse of multiple children.

Following his arrest on federal charges, Thompson asked for multiple trial delays and then pleaded guilty in March 2023, on the morning his trial was supposed to begin.

In asking for a 45-year sentence, Assistant United States Attorney Matthew Hampton wrote to the court, “Lamar Thompson committed unspeakable acts of violence against innocent children. Thompson’s depraved and selfish acts were an attack on those children’s psyches. They, not Thompson, will bear the heavy psychological load that all survivors of child sexual abuse must carry. And they will do so for the remainder of their lives…. These children and their families, not Thompson, will ultimately pay the price for Thompson’s selfishness and cruelty. It therefore falls to this Court to speak for the community and state in no uncertain terms that those who commit acts of sexual abuse against the most vulnerable among us cannot escape justice.” 

“Today’s significant sentence reflects the horrific nature of continued child victimization by a repeat sex offender, even after prior registration and conviction,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI is committed to protecting children from predators and encourages the reporting of suspicious behavior to law enforcement.”

The case was investigated by Homeland Security Investigations with assistance from the Tacoma Police Department and the Washington State Department of Corrections.

The case was prosecuted by Assistant United States Attorneys Matthew Hampton and Zachary Dillon.

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