Western District of Washington
Press releases recorded for this federal judicial district.
Seattle woman with prior murder conviction, sentenced to seven years in prison for armed drug dealingRead the Press Release
Seattle – A Seattle-area woman, whose life has been marked by abuse and addiction, was sentenced August 15, 2023, in U.S. District Court in Seattle to seven years in federal prison, announced Acting U.S. Attorney Tessa M. Gorman. Raven Marlyne Hudson, 39, pleaded guilty in May 2023, to drug trafficking and using a firearm in furtherance of a drug trafficking crime. She was arrested in July 2022, in Seattle’s University District, after she rammed a law enforcement vehicle while trying to avoid arrest. In her car, law enforcement found a variety of illegal drugs and two firearms – one of them stolen. At the sentencing hearing, U.S. District Judge James L. Robart said of the offense, “It was terrible… after 16 and a half years in jail and less than six months later you are doing serious drug dealing…. And ramming the cars is just not something we can tolerate.”
“Ms. Hudson’s history of childhood abuse and abandonment no doubt played a role in her drug addiction and criminal conduct,” said Acting U.S. Attorney Tessa M. Gorman. “It is our hope that the drug treatment in federal prison and the close monitoring and supportive services while on federal supervised release will make a difference and lead to a productive future for Ms. Hudson and her family.”
According to records filed in the case, in early 2022, Homeland Security Investigation (HSI) agents and Seattle Police Narcotics Detectives began investigating Hudson as a significant drug dealer in the Seattle area. In June, a person working with law enforcement ordered fentanyl pills from Hudson. Following that drug sale, law enforcement surveilled Hudson’s activities, seeing her move around to high-frequency drug trafficking areas. On July 12, 2022, agents and officers blocked Hudson’s car as she parked in Seattle’s University District. Hudson rammed one of the HSI vehicles before ultimately being removed from her car and arrested.
When investigators executed a court-authorized search warrant on Hudson’s car, they recovered more than 600 grams of methamphetamine, more than 118 grams of fentanyl powder, about 6,700 fentanyl pills, plus heroin and cocaine. Two Glock firearms were in the car. One of the Glocks was reported stolen, the other had a 25-round extended capacity magazine. Both guns were loaded with a round chambered.
Hudson cannot legally possess firearms due to prior convictions. In 2006 she was convicted in Kitsap County of Second-Degree Murder and Unlawful Possession of a Firearm. Hudson was released from state custody on the murder conviction in January 2022.
The case was investigated by Homeland Security Investigations (HSI) and the Seattle Police Department.
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
DOJ and California non-profit settle allegations of false claims for reimbursementRead the Press Release
Seattle – The U.S. Department of Justice and Sun Valley CARE Development, Inc. (CARE) today resolved allegations that CARE violated the False Claims Act by submitting false information to the Economic Development Administration (EDA) in connection with an EDA grant. CARE will pay the government $364,126 to resolve the matter, announced Acting U.S. Attorney Tessa M. Gorman of the Western District of Washington.
CARE is a California 501(c)(3) non-profit charitable organization located in Sun Valley, California. In 2008 EDA awarded a grant to CARE in the amount of $2,800,000 for the design and construction of a medical and nurse training facility in Sun Valley. The grant was administered by EDA’s Seattle Office.
The settlement today resolves allegations arising from CARE’s final request for reimbursement submitted to EDA in connection with the grant. In January 2018 CARE submitted to EDA a request for reimbursement that purported to set forth the costs CARE incurred constructing the medical and nurse training facility. The United States contends that the request for reimbursement and supporting documentation contained false information about CARE’s construction costs. Of the settlement amount, $182,063 is restitution. The additional settlement dollars are part of the enhanced penalties under the False Claims Act.
“The Department of Commerce OIG is dedicated to working with Department of Justice to curb fraud, waste, and abuse. It is of particular importance when a project receiving EDA funding to design and construct a nurse training facility benefitting the local community is negatively impacted. We greatly appreciate the cooperation and effort of the United States Attorney’s Office in ensuring justice is served in this matter,” said Jeffrey Lysaght, Special Agent in Charge, U.S Department of Commerce, Office of Inspector General.
The investigation began with a whistleblower complaint regarding work performed under the grant.
This matter was investigated by the U.S. Department of Commerce Office of Inspector General. Assistant United States Attorney Ashley Burns handled the case for the U.S. Attorney’s Office.
DOJ alerts independent K-12 schools about obligations under the Americans with Disabilities Act (ADA)Read the Press Release
Seattle – The U.S. Attorney’s Office, Western District of Washington, is reminding independent schools of their obligations under the Americans with Disabilities Act (ADA) with respect to the accommodation of students with type 1 diabetes. There are approximately 215,000 Americans under the age of 20 currently diagnosed with type 1 diabetes. A letter sent to independent schools in Seattle serving elementary and middle-school aged students, arriving this week, not only reminds educators of their obligations under the ADA, but also provides resources to assist schools in setting up policies and procedures for monitoring a child’s blood sugar in compliance with the ADA.
“Our office continues to receive complaints from parents that their school-age children with type 1 diabetes are not afforded full and equal access to services provided by independent schools,” said Acting U.S. Attorney Tessa M. Gorman. “I hope the letter, which is a reminder for schools, as well as the online resources referenced in the letter, will motivate educators and administrators to make the modifications necessary for a truly inclusive environment for all our children.”
The letter for the schools makes note of this settlement with a school in Louisiana. See Settlement Agreement Between the United States of America and Alexandria Country Day School, available at https://archive.ada.gov/alexandria_settle.htm.
The letter makes clear that staff at the school may need to be trained to support children with type 1 diabetes. Where a parent or guardian and a child’s physician or other qualified health care professional deem it appropriate (based on the child’s current health status) for a child to be assisted in diabetes care by a layperson, training child care staff members to assist with routine diabetes care tasks, including the administration of insulin by pen, syringe, or pump, is generally a reasonable modification under the ADA unless an independent school can demonstrate that the individual circumstances cause a fundamental alteration to its goods, services, facilities, privileges, advantages, or accommodations.
The letter also offers online resources such as:
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- Washington Superintendent of Public Instruction and Department of Health, “Guidelines for Care of Students with Disabilities,” available online at https://www.k12.wa.us/sites/default/files/public/healthservices/pubdocs/diabetes/diabetesmanual-ada.pdf;
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- National Diabetes Education Program, “Helping the Student with Diabetes Succeed: A Guide for School Personnel,” available online at https://diabetes.org/sites/default/files/2020-02/NDEP-School-Guide-Full-508.pdf;
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- American Diabetes Association, “Sample Diabetes Management Plan,” available online at https://diabetes.org/sites/default/files/2022-11/DMMP-updated-11-11-22.pdf.
In addition to schools, DOJ has entered into settlements with childcare centers and summer camps that failed to accommodate children with type 1 diabetes.
As the new school year begins, independent schools should examine their procedures to ensure a child’s diabetes care is integrated into the daily routine, with the proper support from school staff.
The full letter from the U.S. Attorney’s Office Civil Rights unit is below.
independent_schools_seattle_-_t1d_dcl_for_website.pdf-
Former Chief Financial Officer sentenced to prison for falsifying accounting entries for publicly traded Vancouver, Washington staffing firmRead the Press Release
Tacoma – The former Chief Financial Officer of Barrett Business Services, Inc. (BBSI) of Vancouver, Washington, was sentenced today in U.S. District Court in Tacoma to 15 days in federal prison for falsely certifying the company’s 2013 annual report, announced Acting U.S. Attorney Tessa M. Gorman. James Miller, 61, of Washougal, Washington, pleaded guilty on November 4, 2022, following years of shareholder litigation and a Security and Exchange Commission (SEC) fraud investigation. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “The entries were deliberate – you knew what you were doing…. We have to be able to rely on the fact that financial statements are accurate.”
“As a former auditor and CPA, Mr. Miller understood the importance of accurately disclosing financial information,” said Acting U.S. Attorney Gorman. “Nevertheless, he made fraudulent entries 29 times, totaling over $12 million. He ‘cooked the books’ and then certified the financial reports as accurate – keeping shareholders and company executives in the dark about the fraudulent entries for three years.”
According to records filed in the case, between 2008 and 2016, Miller served as CFO of Barrett Business Services Inc. The company provided human resources functions for other businesses. One of the services BBSI provided was calculating and paying workers compensation obligations for its customers. The amount of workers’ compensation paid out was a key indicator in assessing the company’s expenses.
Between 2012 and 2013, Miller made accounting entries that understated the amount by which the workers compensation expense had increased, and instead attributed $12 million of workers’ compensation expense to payroll taxes and other costs. Miller’s accounting entries violated Generally Accepted Accounting Principles and concealed potentially important trend from analysts evaluating the company.
After making each false entry, Miller directed a staff accountant to initial the entry. This created the appearance that the staff accountant had made the entries, when in fact Miller had done so.
Even as he was preparing the false entries, Miller exercised his options to sell tens of thousands of shares of BBSI stock, selling $2.4 million worth of shares in just two days in 2013.
In recommending that the court sentence Miller to ten months in prison, Assistant United States Attorney Seth Wilkinson noted, “When Miller executed those (stock) trades, he knew BBSI’s actuary had reported a substantial increase in workers’ compensation expense. And as Miller admitted in his SEC testimony, he also knew this was an important expense for the company. But, because Miller had secretly gamed BBSI’s accounting, the public—including those who purchased Miller’s stock—did not have this knowledge.”
The case was investigated by the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
Member of Tulalip Tribes charged with assault for stabbing incident at “Boom City” fireworks areaRead the Press Release
Seattle – An 18-year-old member of the Tulalip Tribes was indicted this week in U.S. District Court in Seattle for assault with a dangerous weapon and assault resulting in serious bodily harm, announced U.S. Attorney Tessa M. Gorman. Logan Winegar will be summoned for arraignment on the indictment next week.
According to police reports, on July 2, 2023, Winegar was asked to leave an area of “Boom City,” an area where stands sell fireworks, food, and other items. Winegar was near one of the food stands and was asked to leave. Witnesses say Winegar pushed a woman to the ground and stabbed her in the hip, thigh and stomach. The woman was a stranger to Winegar. He was pulled off the victim and both received medical treatment.
Assault with a dangerous weapon, and assault resulting in serious bodily harm are each punishable by up to ten 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 Tulalip Tribes Police Department and the FBI.
The case is being prosecuted by Assistant United States Attorney Jocelyn Cooney. Ms. Cooney serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.
winegar_indictment.pdfFederal Prosecutors, FBI, and Port of Seattle detail disturbing increase of sexual assaults on aircraftRead the Press Release
Seattle – With four federal criminal cases filed since the first of the year, and numerous sexual assault reports under investigation, federal law enforcement wants the traveling public to be alert and informed of the increasing number of reports of sexual assault and misconduct on aircraft. Acting U.S. Attorney Tessa M. Gorman and Special Agent in Charge of the FBI’s Seattle field office Richard Collodi joined Seattle Port Commissioner Toshiko Hasegawa at Seattle-Tacoma International Airport to raise awareness about the problem and the federal response.
“Since the first of the year, we have seen an increase in reports of sexual assaults on aircraft. It is quite unusual for us to have four filed cases as well as multiple active, but as yet uncharged, investigations in our office at one time,” said Acting U.S. Attorney Gorman. “We take these cases seriously and work with the FBI to investigate and prosecute them. Federal prison is the destination for those convicted of sexual abuse on an aircraft.”
“It is imperative for people to understand those who commit these types of crimes aboard aircraft will be held accountable,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “I’m concerned at the increase of these incidents and assure the traveling public the FBI and our partners will continue to investigate and prosecute any offender who victimizes someone on a plane.”
“We’re here today to stand up for travelers and to put would-be perpetrators on notice: Sexual assault is a crime everywhere and will not be tolerated. Not in the air, not on the ground, not on our watch,” said Port of Seattle Commissioner Toshiko Hasegawa. “The Port of Seattle is fully equipped and prepared to respond to all reports of sexual assault swiftly, severely, and with certainty. I am particularly grateful to the FBI for standing up for our passengers and for helping launch this public awareness campaign.”
Nationally the cases are rising, as well. In 2018, the FBI investigated 27 sexual misconduct cases aboard aircraft. Just four years later, in 2022 that number had more than tripled to 90 cases. 2023 is on pace to surpass the 90 cases, with 62 cases under investigation in the first half of the year.
The four filed federal cases in the Western District of Washington are:
U.S. v. Jack Roberson (23-cr-00123)
While flying from Atlanta to Seattle, the defendant, Jack Roberson, allegedly drank two double vodka tonics and appeared to fall asleep. He allegedly placed his hand on the 15-year-old victim’s thigh and slowly moved it up her thigh and under her skirt to her inner thigh. The victim reported to her guardian immediately and the defendant was taken into custody when the flight landed.
U.S. v. James Benecke (23-cr-00108)
The defendant, James Benecke, is accused of committing abusive sexual contact involving teenagers in two separate incidents. The first incident took place in April of 2023 as Benecke traveled from Alaska to Seattle. He is alleged to have touched the thigh and buttocks of a 16-year-old girl who was seated next to him. Two months later, while on a flight from Texas to Seattle, Benecke is alleged to have touched the inner thigh and buttocks of an 18-year-old girl.
U.S. v. Duane Brick (23-cr-00052)
The defendant, an airline mechanic, was flying on an aircraft of his employer, from Arizona to Seattle. He was seated next to the adult victim. He allegedly took her hand and placed it on his crotch while she appeared to be asleep after taking sleeping pills. He then touched her inner thigh, reached under her shirt, and attempted to reach into her pants. Trial is scheduled for September 11, 2023.
U.S. v. Munir Walji (23-cr-ooo11)
The defendant allegedly sexually assaulted a 15-year-old girl by touching her leg and genitals while aboard a flight from Atlanta to Seattle. The defendant is charged with Sexual Abuse of a Minor in Special Aircraft Jurisdiction and Abusive Sexual Contact in Special Aircraft Jurisdiction.
In each of these cases the public is reminded that the charges are allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
King County Sexual Assault Resource Center CEO Mary Ellen Stone noted that data shows young people are at highest risk of sexual assault – females between 16-19 are four times more likely than the general population to be victimized. Yet, young victims are the least likely to speak up for fear of escalating the bad behavior or causing trouble.
“Sexual assault can and does happen anywhere, including on planes and other public transit, and includes a spectrum of behaviors that include harassing comments, “upskirting,” unwanted touching, and rape,” said Mary Ellen Stone, Chief Executive Officer at the King County Sexual Assault Resource Center. “On aircraft, other passengers and crew can disrupt these behaviors, help hold offenders accountable, and begin a survivor’s long-term healing when they take a report seriously and understand not all survivors react the same.”
CEO Stone adds, “It’s natural to want to ignore these situations, but other passengers can send a strong message that sexually offending behavior won’t be tolerated by checking in with anyone you suspect is being victimized and offering help. Crews can take steps to separate the victim from the person causing harm, and above all, avoid minimizing any behavior that is making someone else uncomfortable.”
For free, confidential help or information, KCSARC’s 24-hour Resource Line is available at 1.888.99.VOICE (1.888.998.6423).
The FBI and U.S. Attorney’s Office has prepared a tip sheet attached to this press release.
_tips_for_travelers.pdfBorder Enforcement Security Task Force seizes 30,000+ fentanyl pills from alleged trafficker in Tukwila, WashingtonRead the Press Release
Seattle – A 46-year-old Mexican citizen is in federal custody tonight charged with possession of controlled substances with intent to deliver, for some 30,000 fentanyl pills found in his pick-up truck, announced Acting U.S. Attorney Tessa M. Gorman. David Garcia-Garcia made his appearance on the criminal complaint this afternoon. He remains detained pending further hearings.
According to records filed in the case, the Border Enforcement Security Task Force became aware that a dealer known as “Daby,” was offering fentanyl for sale. Agents were able to identify Daby as an alias for Garcia-Garcia. A meeting was arranged with Garcia-Garcia near a restaurant in Tukwila to review the goods for a possible drug sale. Following the drug meeting, officers moved in and arrested Garcia-Garcia and impounded his truck.
Law enforcement obtained a search warrant for the truck and found multiple packages of fentanyl pills – the total was more than three kilos – likely more than 30,000 fentanyl pills.
Because of the amount of fentanyl involved, Garcia-Garcia faces a mandatory minimum ten years in prison and up to 40 years in prison.
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.
Garcia-Garcia faces deportation following any prison term.
The case was investigated by agents and officers from Homeland Security Investigation (HSI), the Drug Enforcement Administration (DEA) and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Elyne Vaught.
Resident of Tacoma hotel indicted for drug and gun crimesRead the Press Release
Seattle – A 43-year-old Tacoma man, who was taken into custody in February 2023, was indicted today by a grand jury for three federal felonies: Unlawful Possession of Firearms; Possession of Controlled Substances with Intent to Distribute; and Possession of Firearms in Furtherance of a Drug Trafficking Crime. Cesar Leonel Contreras-Arias will be arraigned on the indictment next week.
“This defendant was being sought on a Washington Department of Corrections warrant for escape, when he was found to have multi-pound quantities of fentanyl and methamphetamine,” said Acting U.S. Attorney Tessa M. Gorman. “Equally concerning was his possession of firearms – many of them reported stolen from across the Puget Sound region. Prosecuting armed drug traffickers remains a top priority for federal law enforcement.”
According to records filed in the case, Contreras-Arias was arrested February 2, 2023, outside Tacoma’s Clarion Inn on Tacoma Mall Blvd.. Contreras-Arias had been living at the hotel for about a year, and law enforcement had received information that he was dealing drugs from that location. When approached by law enforcement, Contreras-Arias tried to flee, smashing his truck into a police vehicle that had parked behind him. When law enforcement searched Contreras-Arias, they found two cell phones, $7,000 in cash and keys to three rooms at the Clarion Inn. Inside Contreras-Arias’ truck, officers found a .22 caliber Ruger handgun which had been reported stolen in Grays Harbor County.
Law enforcement searched the three rooms at the hotel and found 90 pounds of methamphetamine and five pounds of fentanyl powder. They also found eleven passports – some of them reported stolen. There were four firearms in one of the hotel rooms: a 9 mm Sig Sauer handgun that had been reported stolen in Tukwila; a tactical shotgun; a 9mm semi-automatic Glock; and a Springfield Hellcat 9mm handgun.
Law enforcement also searched a storage unit that Contreras-Arias and his companion had rented. Inside was another stolen handgun – a Colt Model Anaconda 44 magnum revolver. The Colt had been reported as lost and suspected stolen in Kitsap County. Two firearm magazines were in the storage unit, an extended 9mm magazine, and a polymer rifle magazine containing 30 rounds of 7.62x39 ammunition.
Contreras-Arias is prohibited from possessing firearms due to a 2016 conviction in Benton County for violating a protection order.
Illegal possession of firearms is punishable by up to 15 years in prison. Due to the drug quantities involved, possession of a controlled substance with intent to distribute is punishable by a mandatory minimum ten years in prison and up to life in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a mandatory five years in prison to run consecutive to any sentence imposed on the other counts of conviction.
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 South Sound Gang Task Force, composed of agents and officers from the FBI, Washington Department of Corrections, Pierce County Sheriff’s Office, and the Tacoma Police Department, among others. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) assisted with the investigation.
The case is being prosecuted by Assistant United States Attorney Marci Ellsworth.
contreras-arias_indictment.pdfTacoma man sentenced to 5+ years in prison for persistent fentanyl trafficking while illegally possessing firearmsRead the Press Release
Tacoma – A Tacoma man was sentenced today in U.S. District Court in Tacoma to 66 months in prison and three years of supervised release for dealing fentanyl while armed with a handgun, announced Acting U.S. Attorney Tessa M. Gorman. Peter Darnell King, 24 was arrested in September 2022, following a joint operation between the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Tacoma Police Department (TPD). At today’s sentencing hearing, Chief U.S. District Judge David G. Estudillo said, “Controlled substances, including fentanyl, as in this case, have had a huge impact on the community. Quite literally, they are killing people.”
“Peter King contributed to the addiction and violence plaguing the most dangerous street in Tacoma by regularly dealing fentanyl out of his hotel room on Hosmer Street,” said Acting U.S. Attorney Gorman. “He was arrested three times within 11 days, each time with fentanyl and a gun, and each time he immediately returned to trafficking a deadly drug when he was released from custody.”
According to records filed in the case, in May 2022, law enforcement learned of King’s drug dealing activity and began an investigation. ATF conducted undercover buys of fentanyl pills from King at his apparent residence, the Econo Lodge motel on South Hosmer Street. In July 2022, King was arrested by Tacoma Police officers who encountered him in the parking lot of a Home Depot store. He had nearly 1,000 fentanyl pills and a firearm was observed in his vehicle. The following day, after his release from custody, Lakewood Police contacted King at a gas station near the Tacoma Mall because his car appeared to have no license plates. King became agitated and was taken into custody – he had over 100 fentanyl pills and a firearm in his pockets.
The third arrest last summer was August 6, 2022, when King was found asleep in his car while a young toddler played unrestrained in the front passenger seat. King had a loaded firearm in his lap and 182 fentanyl pills in a coin purse at his waist.
ATF conducted a series of undercover operations at the Econo Lodge in mid-August, during which King was seen numerous times engaging in drug trafficking behavior. The final arrest was on September 7 in a joint operation by ATF and the Tacoma Police Department. Officers executed a search warrant at the Econo Lodge, during which they seized three firearms, body armor, ammunition, and fentanyl.
King pleaded guilty in April 2023 to Possession of Controlled Substances with Intent to Distribute and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.
In asking for a nine-year prison sentence Assistant United States Attorney Kristine Foerster wrote to the court, “Firearm possession, particularly in connection with drug trafficking, puts the community at significant risk. Every time King was stopped by police and found with distribution levels of fentanyl in the summer of 2022, he also had a gun. When Tacoma Police took one firearm, he had a new one days later. And King did not just keep a firearm at his hotel room, he carried guns with him and his drug stash as he moved throughout the community. He also kept both fentanyl and firearms in reach of his small child, as seen in August and September of 2022. A substantial prison sentence is necessary to not only punish King but to protect the public.”
The case was investigated by ATF and the Tacoma Police Department.
The case is being prosecuted by Assistant United States Attorney Kristine Foerster.
Tacoma man arrested for production of child sexual abuse materialRead the Press Release
Tacoma – A 27-year-old Tacoma resident was charged by federal criminal complaint today with production of child pornography, announced Acting U.S. Attorney Tessa M. Gorman. Demitri Super will appear in U.S. District Court in Tacoma today. He is being detained at the Federal Detention Center at SeaTac pending further hearings.
According to records filed in the case, a foreign law enforcement organization contacted the Homeland Security Investigations (HSI) Computer Crimes Center about a Skype video showing the rape of an infant. HSI quickly worked to identify the person in the video and agents interviewed and arrested Super today. The victim child has been identified and the parents have been notified.
Production of child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison.
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.
The case is being investigated by Homeland Security Investigation (HSI) and the case is being prosecuted by Assistant United States Attorney 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.
In separate cases, two men plead guilty to dealing fentanyl while armed with handgunsRead the Press Release
Seattle – Two men – both involved with firearms and fentanyl -- pleaded guilty this week in U.S. District Court in Seattle to federal charges that carry a mandatory minimum of five years in prison, announced Acting U.S. Attorney Tessa M. Gorman. Jade Alexander Beavin, 33, of Everett will be sentenced by U.S. District Judge Richard A. Jones on October 20,2023. Lavonta Austin, 30, of Seattle will be sentenced by U.S. District Judge James L. Robart on October 17, 2023.
“Our office and our investigative partners work every day to stop the flow of fentanyl into our community,” said Acting U.S. Attorney Gorman. “We pursue large cartel-connected drug rings that import hundreds of thousands of pills, as well as individual dealers whose criminal conduct with guns and drugs undermines the safety of our community. These two defendants who pleaded guilty this week, were caught repeatedly with drugs and guns, conduct that ultimately landed them in federal court.”
Jade Beavin was arrested by Everett Police on July 27, 2021, with three kilos of fentanyl powder in the trunk of his car. In the interior of the car was a loaded 9mm handgun. A court authorized search of the car also resulted in the seizure of a scale, ammunition, and drug ledger. Beavin was also arrested with narcotics and a revolver in January 2020 and was arrested with a third firearm in February 2022. When he is sentenced, prosecutors will recommend no more than ten years in prison and the defense has agreed to recommend no less than eight years in prison.
Lavonta Austin was first contacted by Seattle Police at 3rd Avenue and Pike Street in downtown Seattle on August 4, 2022. After selling fentanyl pills to an undercover officer, Austin attempted to run from police when they took him into custody. Austin had 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 prosecutors and defense will recommend a 5-year sentence.
In both cases the judge is not bound by the recommendation and can impose any sentence allowed by law.
Both men 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 five years in prison that runs consecutive to the sentence imposed on the drug possession charge.
U.S. v. Beavin was investigated by the Everett Police Department and the FBI. U.S. v. Austin was investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA). Both cases are being prosecuted by Assistant United States Attorney Cecelia Gregson.
Snohomish County tax preparer pleads guilty to assisting in the preparation of false tax returnsRead the Press Release
Seattle – A 43-year-old Everett, Washington, man pleaded guilty today in U.S. District Court in Seattle to aiding and assisting with the filing of false tax returns, announced Acting U.S. Attorney Tessa M. Gorman. Abinet Onkiso pleaded guilty to four counts and faces up to three years in prison per count when sentenced by U.S. District Judge Robert S. Lasnik on October 19, 2023.
According to records filed in the case, since at least 2012, Onkiso operated a tax preparation business called Affordable Income Tax LLC. As a tax preparer he intentionally exaggerated deductions for his clients: unreimbursed employee expenses, charitable deductions, and payments for “other taxes.” Between 2016 and 2019 Onkiso submitted exaggerated deductions on more than 79 tax returns for 29 different clients. In total the fake deductions led to a tax loss of $212,395.
Some of Onkiso’s clients were audited and paid approximately $12,000 of the taxes owed. The rest of the tax loss falls to Onkiso, who is required to make restitution to the Internal Revenue Service in the amount of $200,277, with credit for any amounts already paid.
Under the terms of the plea agreement, prosecutors will recommend no more than six months in prison. Judge Lasnik is not bound by the recommendation and may impose any statement allowed by law.
The case was investigated by Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.
Amazon Agrees to Injunctive Relief and $25 Million Civil Penalty for Alleged Violations of Children’s Privacy Law Relating to AlexaRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that Amazon.com Inc. and its wholly-owned subsidiary Amazon.com Services LLC (collectively Amazon), have agreed to a permanent injunction and a $25 million civil penalty as part of a settlement to resolve alleged violations of the Children’s Online Privacy Protection Act (COPPA), the Children’s Online Privacy Protection Rule (COPPA Rule) and the Federal Trade Commission Act (FTC Act) relating to Amazon’s voice assistant service Alexa.
Alexa is a proprietary voice-activated service that Amazon provides through its Echo smart speakers, its “Alexa App” mobile application, and other devices and applications. Since May 2018, Amazon’s Alexa-related offerings have included voice-activated products and services directed toward children under 13 years of age. When a user makes a verbal request of an Alexa-enabled device, Amazon saves the voice recording of the request and creates a written transcript of it.
In a complaint filed in the U.S. District Court for the Western District of Washington, the government alleges that, since at least May 2018, Amazon violated the FTC Act, COPPA and the COPPA Rule with respect to Alexa and Alexa’s child-directed offerings. The complaint alleges that Amazon retained children’s voice recordings indefinitely by default, in violation of COPPA’s requirement that these recordings be retained only as long as reasonably necessary to fulfill the purposes for which they were collected. Other alleged violations include making deceptive representations that Alexa app users could delete their or their children’s voice recordings, including audio files and transcripts and their geolocation information, when in fact Amazon on some occasions failed to delete all such information at users’ request. The complaint also alleges that Amazon engaged in unfair privacy practices with respect to Alexa users’ geolocation information and voice recordings, including (in some instances) by failing to honor users’ deletion requests and failing to notify consumers that it had not done so.
The stipulated order entered today by the federal district court requires Amazon to pay $25 million in civil penalties. The order imposes injunctive relief that requires Amazon to identify and delete inactive child profiles (profiles that have not been used for 18 months) unless a parent requests that they be retained. Amazon also will notify parents whose children have accounts of this change to its policies. The order further prohibits Amazon from making misrepresentations about Amazon’s retention, access to or deletion of geolocation information or voice information, including children’s voice information, and mandates deletion of geolocation information, voice information, and children’s personal information upon the request of the user or parent, respectively. Finally, the order requires Amazon to make disclosures to consumers relating to its retention and deletion practices regarding Alexa App geolocation information and voice information.
“Today’s settlement reflects the department’s dedication to protecting children online,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department and the FTC are committed to working together to ensure that companies do not misrepresent to parents how children’s personal information is handled, retained, or deleted, and do not retain that information for longer than reasonably necessary.”
“Amazon’s history of misleading parents, keeping children’s recordings indefinitely, and flouting parents’ deletion requests violated COPPA and sacrificed privacy for profits,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “COPPA does not allow companies to keep children’s data forever for any reason, and certainly not to train their algorithms.”
“Parents want and deserve to have control over data related to their young children – this includes recordings of the child’s voice, the child’s location, and the questions the child asks an Alexa device,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “Some may be delighted to have those recordings saved for sentimental reasons – but that needs to be the parent’s choice – not a decision made by Amazon. This settlement requires Amazon to provide notice to parents with ways they can select whether and how that data is retained.”
This matter was handled by Senior Trial Attorney James T. Nelson and Assistant Directors Lisa Hsiao and Rachael Doud of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Kayla Stahman for the Western District of Washington and Elisa Jillson, Andrew Hasty and Julia Horowitz of the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at www.FTC.gov.
North Carolina man charged with abusive sexual contact on Delta Airlines flight from AtlantaRead the Press Release
Seattle – A- 69-year-0ld Andrews, North Carolina resident is in federal custody tonight charged with abusive sexual contact on board an aircraft, announced Acting U.S. Attorney Tessa M. Gorman. Jack Allen Roberson was arrested at Sea-Tac airport Sunday evening and will remain in federal custody pending a detention hearing on Wednesday, July 19, 2023.
According to records filed in the case, Roberson was seated next to the 15-year-old victim who was traveling with her guardian. According to the criminal complaint, while Roberson appeared to be sleeping, he allegedly slipped his hand onto the victim’s thigh and ran in up under her skirt and towards her genitals. The victim reported the unwanted touching to her guardian who contacted the flight attendant. Roberson was moved to a different seat. Law enforcement was contacted and met the plane on arrival. Roberson was arrested and taken to the Federal Detention Center at SeaTac.
Abusive sexual contact on an aircraft is punishable by up to two years in prison and a $250,000 fine.
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.
The case is being investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Sanaa Nagi.
Tacoma man charged federally with production of images of child sexual abuseRead the Press Release
Tacoma – A 37-year-old Tacoma man will appear this afternoon in U.S. District Court in Tacoma charged with production of child pornography, announced Acting U.S. Attorney Tessa M. Gorman. Steven Nicholas Corona was arrested yesterday without incident and will make his initial appearance at 2:00 PM.
According to the criminal complaint, in December 2022 Australian law enforcement contacted law enforcement in the U.S. regarding images of sexual abuse of a young child that had been shared on the internet. Homeland Security Investigations (HSI) was able to identify Corona as the person who posted the photos and determined that the material had been created between June and September 2019. The investigation determined that Corona had been living with the child’s household and provided childcare at times during this period.
Production of child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years.
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.
The case is being investigation by Homeland Security Investigations.
The case is being prosecuted by Assistant United States Attorney 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.
DOJ and UW Medical Center - Northwest resolve allegations the medical center violated the Americans with Disabilities Act in caring for patients who are deafRead the Press Release
Seattle – University of Washington Medical Center – Northwest (UWMC-NW) will reform its policies and procedures for providing sign-language interpreters, and other assistive devices for patients who are deaf or hard of hearing following a complaint from a patient that such services were not provided during a hospitalization in 2021. UWMC-NW will pay the patient $40,000 in addition to the changes in training, policies, and procedures.
“Ensuring effective communication in medical settings has been a top priority in our civil rights work,” said Acting U.S. Attorney Gorman. “Before and after surgery, a patient must be able to understand the medical staff and communicate their level of pain, their concerns, and any questions they have about ongoing care. This settlement clearly lays out the steps for UWMC-NW to comply with the ADA and provide best practices for their patients.”
The Americans with Disabilities Act (ADA) mandates that public entities, including healthcare providers, provide auxiliary aids and services free of charge to patients who need them in order to communicate effectively. An investigation by the U.S. Attorney’s Office, Western District of Washington, determined that UWMC-NW failed to provide the complainant with a qualified sign language interpreter necessary to communicate effectively with her on several occasions during her hospital stay in April 2021 including pre-surgical consultation, surgery, and post-surgical care. The hospital did attempt to use a Video Relay Interpreter (VRI) service, but it was ineffective.
The settlement requires the hospital to make a number of changes including:
- UWMC-NW will have a designated ADA Coordinator on duty at all times that the hospital is open to the public. That person will coordinate services and assistive devices for patients who are deaf, deaf-blind, or hard of hearing.
- The UWMC-NW will enter into contracts with three interpreter services so that they are able to obtain an interpreter in a reasonable period of time.
- Video Remote Interpreting will be used only if it meets certain guidelines, and will not be used for certain complex or lengthy appointments where in-person interpretation is critical.
- All staff will be trained on the new procedures including the initial evaluation of whether a patient needs assistive services for communication.
- The hospital will log the use of assistive devices and services and provide that log to the U.S. Attorney’s Office every six months for review. The hospital will also provide any complaints regarding provision of assistive services.
- The review by the U.S. Attorney’s Office will continue for the next three years. If the U.S. Attorney’s Office believes the terms of this settlement have been violated it can file suit in U.S. District Court.
The investigation and settlement were negotiated by Assistant United States Attorney Matt Waldrop.
Brooklyn, NY, consultant for Amazon sellers sentenced to home detention and fine for role in bribery schemeRead the Press Release
Seattle – A successful consultant to Amazon third-party selling partners (3P Sellers) was sentenced today in U.S. District Court in Seattle for his participation in an international bribery scheme used to aid his clients, announced Acting U.S. Attorney Tessa M. Gorman. Ephraim Rosenberg, 48, was sentenced to two years of probation, including a year of home confinement, and a $100,000 fine. At the sentencing hearing, U.S. District Judge Richard A. Jones noted that Rosenberg “participated in the scheme for a period of three years. You stopped because you got caught by law enforcement.”
“Mr. Rosenberg participated in a scheme to bribe Amazon employees for confidential information and improper benefits – and he didn’t just funnel bribes through his co-conspirators to workers in India -- he paid a Seattle Amazon employee more than $18,000 for confidential information,” said Acting U.S. Attorney Gorman. “After first attacking the federal indictment brought in this case, Mr. Rosenberg has now admitted his crimes and has publicized his regret about his criminal conduct as a warning to others who scheme to illegally manipulate the marketplace.”
According to records filed in the case, between July 2017 and September 2020, Rosenberg and his coconspirators used a number of illegal tactics to steal internal and confidential data from Amazon. Rosenberg paid bribes to obtain confidential notes and information as to why certain clients, 3P Sellers, had been suspended by Amazon. The clients could then use that information to craft their appeals to be reinstated. Rosenberg also purchased forged documents to act as proof that certain products had been purchased from approved suppliers. In fact, the use of the forged documents could allow counterfeit or even unsafe products to enter the marketplace and harm consumers.
While Rosenberg used bribery and fraud to assist his clients, there is no evidence that he engaged in negative attacks on other 3P sellers. Other conspirators in the scheme made false complaints to Amazon, posted sham negative reviews and even defaced sellers’ product listings. Those defendants who attacked other Amazon sellers have faced more significant prison sentences.
Hadis Nuhanovic, 32, of Acworth, Georgia, was sentenced in February 2023, to 20 months in prison, forfeiture of $100,000 and $160,453 in restitution to the Internal Revenue Service. Rohit Kadimisetty, was sentenced last year to ten months in prison and a $50,000 fine. Kristen Leccese and Joseph Nilsen have pleaded guilty and are scheduled for sentencing on September 8, 2023.
In her sentencing memo, Assistant United States Attorney Miriam Hinman wrote, “Rosenberg committed a serious crime when he corrupted Amazon employees, stole from Amazon, and gained access to internal systems and controls—all to the disadvantage of Amazon, small businesses, and consumers. Rosenberg and his co-conspirators used their insider knowledge of Amazon to break its rules and abuse Amazon’s platform. They stole Amazon’s confidential information to line their own pockets… These activities resulted in deceiving customers and unfairly disadvantaging small businesses that followed the rules. This long running, global conspiracy caused significant harm.”
The case is being investigated by the FBI, with assistance from the Internal Revenue Service-Criminal Investigations (IRS-CI), and the Department of Justice Office of International Affairs.
The case is being prosecuted by Assistant United States Attorneys Miriam R. Hinman.
Alaska Military Servicemember indicted for allegedly molesting teens on flights through SeattleRead the Press Release
Seattle – A 41-year-old Chief Warrant Officer in the Army, currently stationed in Alaska, was indicted last week for two counts of abusive sexual contact while on board an aircraft, announced Acting U.S. Attorney Tessa M. Gorman. James Benecke was taken into custody at Joint Base Elmendorf-Richardson outside of Anchorage, Alaska and will make his initial appearance in U.S. District Court in Alaska today at 2:00 PM (Alaska Time – 3:00 Pacific Time). He will be scheduled to appear in U.S. District Court in Seattle later this month.
According to the indictment, on April 12, 2023, on an Alaska Airlines flight from Anchorage to Seattle, Benecke allegedly intentionally touched the buttocks of a 16-year-old teen who was seated next to him. The indictment charges that the contact was intentional for his sexual arousal.
Two months later, on June 12, 2023, on an Alaska Airlines flight from Dallas to Seattle, Benecke allegedly touched the buttocks and inner thigh of the 18-year-old woman who was seated next to him. In this instance, the contact was reported to the flight crew by the teen and her boyfriend and Benecke was moved to a seat at the rear of the plane. He was interviewed by law enforcement upon arrival in Seattle.
Due to the heavy travel schedule of the defendant, the investigation is ongoing and law enforcement is interested in speaking with anyone who may have been seated near to Benecke on an aircraft. Those with information should call: 1-800-CALL-FBI (225-5324)
Abusive Sexual Contact is punishable by up to two 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 Jocelyn Cooney.
Lynnwood, Washington, man sentenced to 30 months in prison for tech support of dark web drug dealingRead the Press Release
Seattle – A 39-year-old Lynnwood, Washington, man was sentenced today in U.S. District Court in Seattle to 30 months in prison for conspiracy to distribute controlled substances, announced Acting U.S. Attorney Tessa M. Gorman. Jonathan E. Williams handled the technology side of the darknet drug dealing operation while co-defendants Linus Lee and Joyce Oldrich were involved in packaging and mailing packets of LSD and MDMA. At the sentencing hearing U.S. District Judge James L. Robart noted that "MDMA, in the court's experience, is specifically marketed to young people," -- the drugs could end up in the hands of vulnerable people.
“Mr. Williams used his computer skills to make dangerous drugs available to anyone with a computer,” said Acting U.S. Attorney Gorman. “He may have physically kept his hands off the drugs but, using his computer keyboard, he enriched himself while putting others at risk.”
According to records filed in the case, the three defendants in this case were indicted in July 2022, following an investigation by the FBI and U.S. Postal Inspection Service of dark web drug dealing. Working on the dark web, investigators placed online orders for drugs. Based on the packages they received, investigators first identified 70-year-old Joyce Oldrich of Marysville, Washington as the person who had mailed the drugs. Tracking Oldrich, investigators identified 51-year-old Linus Lee of Shoreline, Washington. When law enforcement served a search warrant on Lee’s home, they seized more than 5,000 tabs of LSD, and more than four kilos of MDMA. Some of the drugs were already in parcels ready for mailing.
Information on Lee’s and Oldrich’s cell phones led investigators to Williams. In various encrypted messages, Lee and Williams discussed the market price for their drugs. When Williams’ residence was searched, law enforcement found no drugs, but linked $21,000 in cash to his drug selling activity. On Williams’ phone, they found evidence of his role managing the drug business on the dark web.
Both Lee and Williams have now been sentenced to 30 months in prison with three years of supervised release to follow. Oldrich was sentenced to a time served sentence, with three years of supervised release.
The case was investigated by the FBI and U.S. Postal Inspection Service (USPIS).
The case was prosecuted by Assistant United States Attorney Yunah Chung.
Woman who laundered more than $1 million in drug proceeds for Mexican cartel sentenced to 3+ years in prisonRead the Press Release
Seattle – A 36- year-old resident of Mexico was sentenced today in U.S. District Court in Seattle to 44 months in prison for her role in laundering millions of dollars in drug proceeds for drug traffickers, announced Acting U.S. Attorney Tessa M. Gorman. In March 2023, Sonia L. Mezquita Vega pleaded guilty to conspiracy to commit money laundering and a dozen counts of specific substantive counts of money laundering. At today’s sentencing hearing, U.S. District Judge Ricardo S. Martinez acknowledged that Mezquita Vega was not making the millions she was depositing, however, “The only reason the drug business survives is the money that comes with it,” Judge Martinez said.
“Drug dealing is a business that traffics in pain, sorrow, and heartbreak for the families who watch their loved one succumb to addiction,” said Acting U.S. Attorney Gorman. “Those who transmit the illegal drug proceeds to the drug cartels are a critical cog keeping the poisons of fentanyl, meth, heroin, and cocaine flowing to our communities. Such conduct deserves a significant sanction.”
Mezquita Vega was one of seventeen defendants indicted in August 2020 for a money laundering scheme that sent as much as $2.6 million to a drug trafficking organization in Mexico. Mezquita Vega has been in custody since she was arrested in the Tucson, Arizona area on February 3, 2022.
According to records filed in the case, Mezquita Vega initially worked as a “funnel account holder,” someone who opened a bank account where drug proceeds could be deposited and later transferred to or withdrawn by the drug traffickers. Later, Mezquita Vega became a “money mule,” traveling the country and picking up drug proceeds to deposit into her funnel account or others. Finally, Mezquita Vega supervised others in the money laundering scheme, traveling with them to collect drug proceeds and directing how the funds should be deposited.
During seven months in 2014, $352,030 was deposited in the funnel account opened by Mezquita Vega. At the same time, an additional $236,540 was funneled through an account apparently opened by Mezquita Vega’s mother. Between October 2014 and April 2016, Mezquita Vega became a money mule/depositor and was responsible for depositing $830,906 in drug proceeds.
In asking for the five-year sentence, Assistant United States Attorney Vince Lombardi wrote to the court, “Drug dealing is a business. If people could not make money – often lots of money – they would not sell drugs. Money is the vitally necessary fuel for the drug epidemic. And money laundering, of the type perpetrated by (this organization), is the pipeline that fuel flows through.”
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .
The case was investigated by Homeland Security Investigation and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Vincent T. Lombardi.
Tacoma man sentenced to three years in prison for defrauding union retirement plansRead the Press Release
Seattle – A 52-year-old resident of Tacoma who worked as a Third Party Administrator for union health and welfare and pension plans was sentenced today in U.S. District Court in Seattle to three years in prison for wire fraud and aggravated identity theft for stealing more than $200,000 from a union member’s account and other plans, announced Acting U.S. Attorney Tessa M. Gorman. Erik A. Read was indicted in April 2022 and pleaded guilty in March 2023. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez said, Read “had a position of trust that he utilized to steal money…. This was not a onetime event…. he put together an elaborate scheme to steal money.”
“Mr. Read used his specialized knowledge to steal the money a commercial painter had paid into his pension plan, hoping his theft would go undetected,” said Acting U.S. Attorney Gorman. “Read’s conduct was a highly detailed scheme involving forged records, fake IDs, and lies to colleagues. It didn’t just harm the victim financially, it also created great stress when the worker saw his pension vanish.”
According to records filed in the case, Read worked as a third party administrator for three different union plans from which he improperly diverted funds: the Western Washington Painter Defined Contribution Pension Plan, the International Brotherhood of Electrical Workers Local 191 Health and Welfare Plan, as well as the Washington State Plumbing and Pipefitting Industry Plan.
Court records detail how he stole from the account of one of the members of the painters’ union – a person who was listed as a “missing participant,” meaning he was no longer actively participating in the plan. Between April 2018 and May 2019, Read falsified records, forged signatures, and doctored a driver’s license to make it appear that the victim wanted his funds withdrawn from the fund to pay for medical treatment for a terminal illness. Read claimed to his coworkers that he was going to deliver the checks by hand to the victim and his family. In fact, Read deposited the checks into his own bank account. Even as he was earning $150,000 a year, he was improperly taking funds from the pension plans that he worked on. Read has agreed to pay $294,251 to the victim pension plans or their insurers.
In asking for a four-year prison term, prosecutor Brian Wynne wrote to the court, “While the financial impacts of Read’s crimes were great, the non-financial impacts on both individuals Read worked for and on behalf of are unquantifiable. The impacts include the stress on (one victim) upon learning his retirement had been stolen and his efforts to recoup it. The impacts also include the stress experienced by Read’s colleagues who unwittingly helped Read carry out the fraud and the stress and managerial impacts on the trusts whose plans Read administered.”
The case was investigated by the U.S. Department of Labor. The case was prosecuted by Assistant United States Attorneys Sok Tea Jiang, Brian J. Wynne, and Jehiel I. Baer.
Former Kirkland, Washington resident sentenced to 13 years in prison for possessing images of child rape and abuse, and for plan to sexually assault a childRead the Press Release
Seattle – A 35-year-old former resident of Kirkland, Washington was sentenced today in U.S. District Court in Seattle to 13 years in prison for attempted enticement of a minor and possession of child pornography, announced Acting U.S. Attorney Tessa M. Gorman. Marcus William Lowe has been in federal custody since November 2020. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez said, “The impact is lifelong to those victims who are revictimized every time those images are downloaded and viewed. Every single one of those photos reflects a real child, a real victim.”
“Those who prey on children face significant federal prison time,” said Acting U.S. Attorney Gorman. “These crimes leave life-long scars on the young and vulnerable. It is entirely appropriate that we use custody time, post sentence supervision and registration as a sex offender to keep our community safe.”
According to records filed in the case, in early October 2020, Lowe used an internet application to communicate with a parent about molesting a ten-year-old child. In fact, the child was fictitious, and the “parent” was an undercover FBI agent. When Lowe arrived at the location and spotted law enforcement he attempted to flee and injured a law enforcement officer in the process.
A review of Lowe’s electronic devices revealed he possessed several hundred images of child rape and sexual abuse. A minor child revealed that Lowe had sexually abused the child. He was sentenced in King County Superior Court to 41 months in prison for that conduct.
“It is heartbreaking that child predators cause lasting damage on innocent children without caring that they are destroying lives,” said Richard A. Collodi, Special Agent in Charge of FBI Seattle. “We hope that these prosecutions send a message to other would-be sex offenders that law enforcement takes these crimes seriously, and there will be consequences.”
Judge Martinez ordered that the 13-year federal sentence run concurrent to the state sentence. Lowe will be required to register as a sex offender following prison and will be on supervised release for 15 years following the prison term.
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 was investigated by the FBI. The operation was conducted in cooperation with the Seattle Police Department, and the Kirkland Police Department.
The case was prosecuted by Assistant United States Attorney Matt Hampton.
Two key players in Arlington, Washington, based drug ring sentenced to prisonRead the Press Release
Seattle – Two men who served key roles in a large, wide ranging drug distribution conspiracy were sentenced today in U.S. District Court in Seattle to significant prison terms, announced Acting U.S. Attorney Tessa M. Gorman. Aaron Alarcon-Castaneda (aka Sobrino), 38, of Chino, California was sentenced to six years in prison and Steven R. Delvecchio, 65, of Snohomish, Washington was sentenced to nine years in prison. At the sentencing hearing, U.S. District Judge John C. Coughenour said he imposed these sentences due to, “the enormous size of this drug trafficking organization, the large quantity of the two worst drugs I’ve seen in my 40 years on the bench: methamphetamine and fentanyl, and the existence of firearms.”
“While each of these men played a different role, such conduct was integral to spreading poison throughout our community,” said Acting U.S. Attorney Tessa M. Gorman. “Del Vecchio was the retail salesman, getting drugs into the hands of users, while Alarcon-Castaneda was the broker and money collector – coordinating the shipments of drugs and money to and from Western Washington. For the pain and addiction they caused, they have earned these significant prison sentences.”
According to records filed in the case, the investigation and drug ring take down on December 16, 2020, resulted in the seizure of 143 pounds of methamphetamine, 15 pounds of heroin, 35,000 fentanyl pills, 24 firearms, and $778,000. Drug ring leader Cesar Valdez-Sanudo, 36, was sentenced to 15 years in prison in January 2023. Valdez-Sanudo had buried large quantities of drugs and cash on his Arlington, Washington property. The drug ring distributed meth, heroin, and fentanyl in King, Pierce, and Snohomish Counties.
Alarcon-Castaneda was identified on the wiretap investigation shortly after he brokered a 44-pound shipment of methamphetamine from California to Washington. After law enforcement seized the load, Alarcon-Casteneda was heard on the wiretap discussing a plan to interrogate the courier who lost the load. During the conversation the drug ring leader told Alarcon-Castaneda to use the cables, meaning electrocute the courier. Law enforcement had to intervene to make sure that didn’t happen. Alarcon-Castaneda arranged for drugs and money to move up and down the west coast. When Alarcon-Castaneda’s home was searched, law enforcement found drugs hidden in everything from laundry soap bottles to the kitchen garbage can. He also had large quantities of cash drug proceeds.
Steven Del Vecchio is a ten-time convicted felon and long-time drug dealer in Snohomish County. Del Vecchio was originally a subject of an investigation by the Snohomish Regional Drug Task Force. On June 24, 2020, he was arrested, and a search of his home revealed more than two kilograms of methamphetamine, close to one kilogram of heroin, thousands of fentanyl pills, $115,000 in cash drug proceeds, and 19 firearms. That arrest and seizure didn’t stop him and, on the wiretap, he was identified as a dealer in the Valdez-Sanudo drug trafficking ring. When Del Vecchio was arrested on December 16, 2020, investigators recovered nearly a kilogram of methamphetamine, several ounces of heroin, and more than a thousand fentanyl pills.
In asking for the eight and ten year sentences respectively, prosecutors told the court, “these drugs not only destroy the lives of those who use them, they also destroy the lives of the users’ families and friends. Those families and friends are prisoners, forced to watch the toll these drugs take on their son, their daughter, their mother, their father, their friend.”
This case is 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 conducted by the U.S. Drug Enforcement Administration (DEA) Tacoma Residence Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Tacoma Police Department, Snohomish Regional Drug Task Force (SRDTF), the Skagit County Sheriff's Office, the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Internal Revenue Service (IRS).
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and C. Andrew Colasurdo.
Seattle-area man arrested for string of pot shop armed robberiesRead the Press Release
Seattle – An 18-year-old Seattle-area man, who was living at a SeaTac hotel, remains in federal custody for robbery, with a detention hearing next week, announced Acting U.S. Attorney Tessa M. Gorman. Caiden James Charlton was arrested Tuesday June 27, 2023, in connection with three armed robberies in May and June 2023. Charlton had his initial appearance yesterday and will appear for a detention hearing on Monday, July 3, 2023.
According to records filed in the case, Charlton is charged with the May 30, 2023, robbery of Herb’s House on NW 65th Street in Seattle; the May 30, 2023, robbery of Hashtag Cannabis on Nickerson Street in Seattle; and the June 10, 2023, robbery of Oz Cannabis on Stone Way in Seattle. In each of the robberies, surveillance video shows clothing, tattoos, and jewelry that has been linked to Charlton. Victims of the robberies noted distinctive face tattoos around Charlton’s eyes that were not concealed by his mask.
In each of the robberies, one of two intruders displayed a handgun and ordered the dispensary staff to open safes or empty the till. In addition to money, the suspects stole a large amount of marijuana products. In some cases, the safes at the dispensaries could not be opened due to time locks used to discourage robberies. In one case, the robbers stole the safe by detaching it from the floor.
The robbery crew would run to a getaway car after the robberies – two of the cars had been reported stolen.
According to the criminal complaint, on June 5, 2023, Charlton was arrested by Tacoma Police for being a felon in possession of a firearm. Photographs from the arrest indicate Charlton wearing clothing and jewelry associated with the robberies of the marijuana dispensaries. Charlton was released on bail June 9, 2023 – one day before the third robbery charged federally. Charlton may face
federal firearms charges based on the Tacoma arrest, as well as eight guns found in his possession at the time of his federal arrest on June 27, 2023.
Law enforcement continues to investigate other robberies potentially linked to Charlton and his accomplices. This includes robberies in West Seattle, Edmonds, and Bellevue. In all, law enforcement believes as many as ten marijuana dispensary robberies may be linked to Charlton and a juvenile arrested in Bellevue following the robbery of a dispensary there. The juvenile was located based on a currency tracker that was included in the cash he stole from the Bellevue dispensary.
“Mr. Charlton’s prior arrest for similar crimes did little to dissuade his continuing criminal activities.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Fortunately, no one was killed during his violent robbery spree. Taking him off the streets may have saved lives of employees and patrons of the businesses he targeted and highlights the priority given to these types of violent crime. I applaud the efforts of our agents and partners, including the Seattle Police Department, King County Sheriff’s Department, and others on the Safe Streets Task Force, to safely take him into custody.”
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.
The case is being investigated by the FBI, the Seattle Police Department, and the Bellevue Police Department, as well as the King County and Snohomish County Sheriffs’ Offices.
The case is being prosecuted by Assistant United States Attorneys Erin H. Becker and Elyne Vaught.
charlton_complaint.pdfPort Angeles, Washington, man indicted for sexual abuse of a minorRead the Press Release
Seattle – A 34–year-old resident of Port Angeles, Washington, was indicted late yesterday by a federal grand jury for two counts of sexual abuse of a minor, announced Acting U.S. Attorney Tessa M. Gorman. Briceson R. Standley has been detained since his arrest on a criminal complaint on June 15, 2023.
According to records filed in the case, in April and June 2022, Standley met up with a 15-year-old youth who he had communicated with on a social media app. In the first encounter, Standley sexually molested the youth. In the second encounter, Standley allegedly carried a machete and a pocketknife. Standley allegedly raped the youth. The 15-year-old ceased any communication with Standley and ultimately reported the conduct to a health care provider.
An investigation by the U.S. Park Service determined that the alleged assaults took place on a portion of Olympic National Park land. Federal courts have jurisdiction over such land.
Sexual abuse of a minor is punishable by up to 15 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 Investigative Services Branch of the National Park Service and Port Angeles Police Department.
The case is being prosecuted by Assistant United States Attorney Kristine L. Foerster.
California resident sentenced to 3+ years in prison for smuggling scheme using ride share companies to transport Indian Nationals crossing the northern border illegallyRead the Press Release
Seattle – A 49-year-old resident of Elk Grove, California, was sentenced today in U.S. District Court in Seattle to 45 months in prison for Conspiracy to Transport and Harbor Certain Aliens for Profit and Conspiracy to Commit Money Laundering, announced Acting U.S. Attorney Tessa M. Gorman. Rajinder Pal Singh, aka Jaspal Gill, pleaded guilty in February 2023, admitting that he took in more than $500,000 as a key member of a smuggling ring bringing hundreds of Indian Nationals across the border from Canada and then to locations in the mid-west and beyond. At the sentencing hearing, U.S. District Judge John C. Coughenour accepted the joint sentencing recommendation.
“Over a four-year period, Mr. Singh arranged for more than 800 people to be smuggled into the U.S. across the northern border and into Washington State,” said Acting U.S. Attorney Tessa M. Gorman. “This conduct was not just a security risk for our country, it also subjected those smuggled to security and safety risks during the often weeks-long smuggling route from India to the United States. Mr. Singh’s participation in this conspiracy preyed upon the Indian Nationals’ hopes for a better life in the United States, while saddling those smuggled with crushing debt of as much as $70,000.”
“Mr. Singh spent years illegally smuggling hundreds of Indian nationals into this country; all to make a quick profit,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Fortunately, through a committed HSI investigative team, complemented by U.S. Customs and Border Protection and the U.S. Attorney’s Office, that scheme has come to an end. Mr. Singh crushed the dreams of so many who quickly found themselves drowning in debt to their smuggler and unable to realize the life they sought in this country. Mr. Singh won’t need to order up any more Uber rides for the next three years.”
According to records filed in the case, as early as July 2018, Singh and his coconspirators used the ride share app Uber to transport people who had illegally crossed the border from Canada to the Seattle area. Those records detail how trips beginning near the border in the early hours of the morning, would be split between different rides. For example, one Uber trip would be from the border to Sea-Tac airport, and then minutes later the second Uber trip would be from a nearby airport hotel to an address in Lacey, Washington, owned by Singh’s spouse. All told, from mid-2018 to May 2022, Singh arranged more than 600 trips involving the transportation of Indian Nationals who had been illegally smuggled into the U.S.
Once the non-citizens had been smuggled into the U.S., Singh coordinated with other coconspirators who, using one-way vehicle rentals, would transport these individuals to their ultimate destinations outside Washington State.
Singh and his coconspirators used sophisticated means to launder the organization’s illicit proceeds. For example, on one instance, Singh and his coconspirators arranged for smuggling fees to be sent via Hawala from India to New York. Once the smuggling fee was received in cash from the New York Hawala, these funds were converted into a check, mailed to a coconspirator in Kentucky, and then were washed through multiple financial accounts. In the plea agreement, Singh admitted that the purpose of this money movement was to obscure the illicit nature of these funds, i.e., money laundering.
The smuggling scheme has been underway since at least 2018. It slowed during the pandemic when Canada was not admitting non-citizens. However as pandemic restrictions were lifted, the smuggling scheme became active again. In all, the investigation estimates that between July 2018, and April 2022, the 17 Uber accounts tied to this smuggling ring ran up more than $80,000 in charges.
In addition to the search of the home in Lacey, law enforcement searched two of Singh’s residences in California. During the search of one of his homes in Elk Grove, California, investigators found about $45,000 in cash as well as counterfeit identity documents. They also found copies of falsified documents that had been submitted to immigration judges in Washington during bond hearings for non-citizens who had been smuggled into the United States by Singh and his coconspirators, but who had been arrested by immigration authorities after illegally crossing the border.
Singh has agreed to forfeit cash and other personal property seized during the search of his residences, as well as a money judgement of $500,000 which represents proceeds he obtained from his criminal scheme.
Both sides agreed to recommend that Singh serve 45 months in prison. Singh is not legally present in the United States and will likely be deported following his prison term.
The investigation was led by Homeland Security Investigations (HSI) with assistance from U.S. Customs and Border Protection. Uber assisted with the investigation shortly before the arrest in this case.
The case was prosecuted by Assistant United States Attorney Joe Silvio.
FBI and Seattle Police arrest three connected to illegal gun possession and firearms traffickingRead the Press Release
Seattle – Three Seattle-area men were arrested today on a criminal complaint charging each defendant with unlawful possession of a firearm, announced Acting U.S. Attorney Tessa M. Gorman. Marquise Tolbert, 27, of Tacoma, Washington, Parchey Kelly, 29, of Issaquah, Washington, and Kisean Coleman, 22, of Renton, Washington, were arrested today. The men made their initial appearances in U.S. District Court in Seattle today.
According to the criminal complaint, Marquise Tolbert is alleged to have possessed firearms on May 28, 2023, and on June 1, 2023. Tolbert is prohibited from possessing firearms due to a September 2022 conviction in King County Superior Court for illegally possessing a firearm. Kelly allegedly possessed a firearm on May 30, 2023. Kelly is a prohibited person due to a conviction for assault – a domestic violence conviction from 2019. Coleman is alleged to have possessed a firearm on June 1, 2023. Coleman is a prohibited person due to theft and robbery convictions in King County Superior Court in 2019.
According to a detailed criminal complaint, investigators with the FBI Safe Streets task force, the DEA, and the Seattle Police Gun Violence Reduction Unit, were investigating a drug trafficking organization when Tolbert and the other defendants were heard on the wiretap discussing a gang related shoot-out in Federal Way. From that point on, investigators worked to identify those who were possessing and using firearms as part of their criminal activity.
In various conversations, Tolbert, Coleman, and Kelly discussed their efforts to obtain, buy or sell firearms. In some instances, the men texted images of the firearms they wanted to buy or sell. On May 30, 2023, law enforcement executed a search warrant in the 3800 block of Klahanie Drive SE, in Issaquah and seized four firearms from Kelly’s car and residence in an effort to interdict the gun sales.
On June 1, 2023, the wiretap indicated Tolbert was in the process of buying a Ruger handgun from Coleman. Law enforcement obtained a warrant and searched Tolbert’s residence seizing the Ruger firearm.
Coleman was arrested today, and additional firearms were seized from his residence. Tolbert was arrested on the federal charges today when he reported to his state probation officer. Kelly was arrested today without incident.
Illegal firearms possession is punishable by up to 15 years in prison.
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.
The case is being investigated by the FBI, the Seattle Police Department, and the DEA as part of their focus on getting firearms off the streets.
The case is being prosecuted by Assistant United States Attorneys Stephen Hobbs and Michelle Jensen.
Prolific Mail Thief indicted for nine federal feloniesRead the Press Release
Seattle – The suspect in a series of mail vehicle and mail key thefts was indicted today by a federal grand jury for nine federal felonies, announced U.S. Attorney Nick Brown. Johny Mixayboua, 27, was arrested on a criminal complaint last month and is now charged with three counts of theft of government property, unlawful possession of a postal key, mail theft, possession of stolen mail, illegal transactions with a credit or debit card, unlawful possession of a firearm, and unlawful possession of ammunition.
According to records in the case, on December 28, 2022, a U.S. Postal Service vehicle was stolen from the 6300 block of South Bangor Street in Seattle. In the vehicle was a postal key that is used to access the cluster mailbox units in the 98178 zip code. The key allows the postal worker to open the back of the cluster box to deliver mail to multiple households. Since the theft of the vehicle and postal key, there have been numerous reports of cluster boxes in zip code 98178 being opened and mail stolen.
Working with neighbors, the Postal Inspection Service was able to get door camera footage showing the person accessing the postal boxes. Neighbors reported credit cards being stolen and attempts being made to use them. Inspectors were able to review images from when the credit card attempts occurred and ultimately identified Mixayboua as the person stealing the mail and attempting to use the stolen credit cards.
Additionally, local law enforcement determined that vehicles used in a number of the mail theft incidents were reported stolen.
On January 17, 2023, two more Postal Service vehicles were stolen. One in the 3000 block of Beach Drive SW and a second one in the 3600 block of 57th SW. Both are in zip code 98116. Using doorbell camera footage from the block where one of the vehicles was recovered, investigators allegedly saw Mixayboua removing mail and parcels from the stolen postal vehicle and putting them in another vehicle. Again, law enforcement traced credit cards stolen from the mail and obtained surveillance footage that appears to show Mixayboua attempting to make purchases with the credit cards.
On January 30, 2023, a fourth postal vehicle was stolen – this time from the 2000 block of S. Columbian Way in Seattle. On March 28, 2023, a fifth postal vehicle was stolen from the 5700 block of S. 129th Ave. One of the people associated with the theft matches a description of Mixayboua. In late January and February, the mail theft incidents continued -- this time in the Snoqualmie, Washington area. The cluster boxes were opened with either a counterfeit or authentic postal key. Again, credit cards were stolen, and one was linked to images of Mixayboua making purchases at Target.
Throughout April, mail thefts continued from as far north as Lake Forest Park and as far south as southeast Seattle.
The postal service halted deliveries in zip code 98118 for about a week while investigators worked to track down and arrest Mixayboua.
Mixaboua apparently was living in a vehicle near a relative’s home. When he was arrested, law enforcement found a firearm that he threw into the bushes while attempting to run away and ammunition in the vehicle, resulting in the last two counts in the indictment. Mixayboua is prohibited from possessing firearms due to multiple felony convictions in King County for auto theft, possession of stolen property, and bail jumping.
Mail theft and possession of stolen mail are punishable by up to five years in prison. Theft of government property and unlawful possession of postal keys are punishable by up to ten years in prison. Illegal transactions on an access device, possession of ammunition, and being a felon in possession of a firearm are punishable by up to 15 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 U.S. Postal Inspection Service (USPIS) worked diligently to get Mixayboua into custody.
The case is being prosecuted by Assistant United States Attorney Elyne Vaught.
mixayboua_indictment.pdfU.S. Attorney Nick Brown announces departure from U.S. Attorney’s OfficeRead the Press Release
Seattle – U.S. Attorney Nick Brown today announced he is resigning as United States Attorney for the Western District of Washington effective June 21, 2023.
“I am grateful for the opportunity to serve as U.S. Attorney for Western Washington, and humbled to have been selected by President Biden to serve in this important role. Building safe and healthy communities is one of the most important challenges we face as a state. Leading the federal partners who work to keep our communities safe and learning from our community partners has reinforced for me the need to tackle these difficult challenges head on,” said U.S. Attorney Brown. “I hope to return to public service in the future, but I know that the U.S. Attorney’s Office will continue its excellent work under the career attorneys and professional staff who assisted me during my time in office. I would like to thank each of them for entrusting me to lead this incredible team.”
During his years in office, U.S. Attorney Brown put an emphasis on protecting civil rights, addressing the fentanyl crisis, combatting gun crime, and empowering community voices in our public safety efforts.
Brown was selected in 2021 to chair the Attorney General’s Advisory Subcommittee on Civil Rights. The U.S. Attorney’s Office under Brown put a priority on preventing and prosecuting hate crimes, protecting the most vulnerable and members of marginalized communities.
U.S. Attorney Brown partnered with state and local officials to lead multiple prosecutions of the groups that bring drugs to our communities and use firearms as part of their criminal conduct. Under U.S. Attorney Brown, the office brought multiple cases regarding illegal trafficking in firearms and “ghost guns” – firearms that were manufactured without serial numbers.
Understanding that law enforcement is just one of the factors in fostering community safety, U.S. Attorney Brown testified before congress about the community partnerships supported by his office that work to interdict gun violence and enhance reentry to the community by those who have been incarcerated. The office also engaged in new ways with a diverse group of community stakeholders.
Under Brown’s leadership the office pursued several initiatives, creating a new unit to combat cybercrime, pursuing a variety of fraud cases related to the COVID-19 pandemic, and prosecuting those involved in human trafficking.
U.S. Attorney Brown took the oath of office on October 8, 2021. His full biography is available here.
First Assistant U.S. Attorney Tessa Gorman will serve as the Acting U.S. Attorney.
Man with multiple arrests in Washington and Idaho sentenced to ten years in prison for drug trafficking while armed with a firearmRead the Press Release
Seattle – A 59-year-old man with arrests in three Western Washington counties and Idaho was sentenced this week in U.S. District Court in Seattle to ten years in prison, announced U.S. Attorney Nick Brown. Kermit Kellin Faglier pleaded guilty in October 2022 to one count of possession of a controlled substance with intent to deliver, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of access device fraud offense. U.S. District Judge John C. Coughenour imposed the sentence.
According to records filed in the case, Faglier was originally charged in the District of Idaho for a January 10, 2020, attempt to use a counterfeit credit card to purchase merchandise at a sporting goods store. The criminal charges from Idaho were later transferred to Washington as part of a global resolution of the case.
Faglier was arrested in Western Washington three times between January and May 2021. The first was January 23, 2021, in the town of Snoqualmie, where he was stopped driving a stolen vehicle. In the car, law enforcement found a stolen Smith and Wesson .38 revolver, a Glock semi-automatic pistol, methamphetamine, heroin, multiple driver’s licenses belonging to others, forged Washington driver’s licenses with Faglier’s picture but different names, multiple check cards, checks belonging to other people, and more than $2300 in cash.
Barely a week later, Faglier was arrested a second time in Mukilteo for attempting a fraudulent cash withdrawal from a bank. The February 1, 2021, arrest resulted in the seizure of counterfeit currency, checks, credit and debit cards, and multiple IDs from various states. Two guns were seized from the vehicle Faglier had been riding in – a 9 mm pistol and a 40 mm pistol. The van also contained heroin and meth.
On May 4, 2021, Faglier was contacted by officers in Spanaway, Washington because he had used a stolen identity to purchase a Ford F-150 truck. During the search incident, his arrest officers found methamphetamine in his pocket and a stolen Glock 43 semi-automatic handgun was in the center console of the truck.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Snoqualmie Police Department, the Mukilteo Police Department, the Pierce County Sheriff’s Office, and the United States Secret Service.
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.
Department of Justice leaders meet in Seattle to discuss strategies to combat community violenceRead the Press Release
Seattle – U.S. Attorney Nick Brown is hosting the Attorney General Advisory Committee’s Violent and Organized Crime Subcommittee in Seattle this week to share what is working in communities across the country to combat gun crime and enhance community safety. The group will hear from a variety of speakers on community programs working to end the cycle of gun violence, particularly among youth. Additionally, the Director of DOJ’s Project Safe Neighborhood program will lead discussions on the technical training and assistance available to support districts implementing anti-violence programs nationwide.
“This is an excellent opportunity to learn from other districts about strategies that are successfully promoting community safety,” said U.S. Attorney Brown. “We are also highlighting some of the community partnerships here in Western Washington that are working to get firearms away from those who shouldn’t have them. We’ll also spend time learning directly from community stakeholders about their perspectives on violence prevention.”
The King County Prosecutor’s Office will present about the Extreme Risk Protection Order program developed in Washington State. This “Red Flag” law has been a critical tool for getting firearms away from those with behavioral health or domestic violence issues or other violence risk factors. An Extreme Risk Protection Order ("ERPO") was utilized in a federal case during the investigation of Atomwaffen leader Kaleb Cole. Cole had numerous firearms removed from his residence north of Seattle under the ERPO. The Assistant United States Attorney who prosecuted Cole will present to the group about how the law was an important tool in the investigation that ultimately led to the federal prosecution and conviction for hate crimes.
The AGAC Violent and Organized Crime Subcommittee is led by United States Attorney Andrew Luger of Minnesota and the Vice-Chair is United States Attorney Jacqueline Romero of the Eastern District of Pennsylvania. U.S. Attorneys or their representatives are attending from New York, Illinois, California, South Carolina, North Carolina, Colorado, Louisiana, Alabama, Missouri, Mississippi, Georgia, Maine, Ohio, South Dakota, Tennessee, and Iowa.
Microsoft Agrees to Pay $20 Million Civil Penalty for Alleged Violations of Children’s Privacy LawsRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), announced today that the United States has resolved a case against Microsoft Corp. regarding its practices for collecting and retaining personal information from children who use Microsoft’s Xbox Live service. The stipulated order issued by the court today requires Microsoft to pay $20 million in civil penalties and imposes injunctive relief to settle allegations that Microsoft violated the Children’s Online Privacy Protection Act (COPPA) and the Children’s Online Privacy Protection Rule (COPPA Rule) in connection with the Xbox Live service, which consumers use to connect online and with others through the Xbox brand of gaming consoles.
In a complaint filed in the U.S. District Court for the Western District of Washington, the United States alleges that Microsoft knew that certain users were children but nonetheless continued to collect personal information, such as telephone numbers, before notifying parents of Microsoft’s information collection practices and before obtaining parental consent. In addition, the complaint alleges that, while Microsoft provided some notice to parents, that notice was incomplete and thus failed to comply with the COPPA Rule’s requirements. Finally, the complaint alleges that in certain instances when children started, but did not complete, creating Xbox Live accounts, Microsoft retained their personal information for longer than permitted by the COPPA Rule.
“It is essential that before collecting children’s personal information, online companies provide complete and timely disclosures about their information collection practices so that parents can make informed decisions,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department's Civil Division. “The department and the FTC are committed to ensuring that companies comply with the laws specifically designed to safeguard the privacy of children.”
“This settlement requires Microsoft to clearly communicate with parents about their child’s data and sets up procedures to monitor Microsoft’s compliance with federal statutes regarding children’s online privacy. This work will make children safer online,” said U.S. Attorney Nick Brown for the Western District of Washington. “I commend Microsoft for quickly acknowledging it was illegally collecting and retaining personal data of children younger than 13, and for taking steps to fix the problem.”
“Our proposed order makes it easier for parents to protect their children’s privacy on Xbox, and limits what information Microsoft can collect and retain about kids,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “This action should also make it abundantly clear that kids’ avatars, biometric data, and health information are not exempt from COPPA.”
This matter is being handled by Trial Attorney Katherine M. Ho, Senior Trial Attorney James T. Nelson, and Assistant Director Lisa K. Hsiao of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Rebecca S. Cohen for the Western District of Washington. Megan Cox and Peder Magee represent the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of California, visit its website at www.justice.gov/usao-wdwa. For more information about the FTC, visit its website at www.FTC.gov.
Arizona man sentenced to nine years in prison for “massive” tax fraud schemeRead the Press Release
Seattle – A 57-year-old Paradise Valley, Arizona man was sentenced today in U.S. District Court in Seattle to nine years in prison and a $1 million fine for an eight-year tax fraud scheme that resulted in more than $50 million in illegal tax refunds, announced U.S. Attorney Nick Brown.
Charles St. George Kirkland pleaded guilty in January 2023 to three counts of aiding or assisting the filing of fraudulent tax documents. At the sentencing hearing, U.S. District Judge John H. Chun rejected the defense request for a sentence of home confinement, commenting that Kirkland’s fraud was “a massive tax fraud scheme.” Judge Chun said he was struck by the “outrageous nature of the fraudulent scheme” and Kirkland’s “fraudulent and deceitful behavior.”
“This tax fraud scheme is an affront to all the taxpayers who honestly file tax returns and pay what they owe. These funds that Mr. Kirkland stole from the U.S. Treasury could have gone for infrastructure improvements, social services, and other programs aimed at community safety,” said U.S. Attorney Brown. “This is a significant sentence, and an example of the price to be paid for such dishonesty and deceit.”
According to records in the case, Kirkland falsely claimed in tax filings that he had lost more than $135 million by investing in solar equipment. Kirkland then “sold” those made-up losses to taxpayers through a network of tax preparers, telling the preparers that their clients could use Kirkland’s losses to claim refunds on their own tax returns. Taxpayers would file amended returns claiming that, because of the losses transferred from Kirkland, they were entitled to a refund of all the tax payments they had made in a prior tax year. After receiving the fraudulent refunds taxpayers paid 90% of the proceeds to Kirkland.
Taxpayers participating in Kirkland’s program filed nearly 3,200 fraudulent tax returns. In all, Kirkland’s scheme resulted in a loss to the U.S. Treasury of over $50 million. Kirkland collected $45 million.
Kirkland used a web of limited liability entities he controlled to claim both net operating losses and investment tax credits based on fake investments in solar equipment.
For example, in 2013 alone, Kirkland claimed his businesses lost more than $40 million through investments in solar equipment. In fact, the businesses spent only about $150,000 on solar equipment that year. From 2012 to 2018, Kirkland’s companies claimed to have lost more than $135 million on investments in solar equipment. The companies spent less than $6 million on solar equipment over that period.
Some of the taxpayers who participated in the program were Washington residents. For example, one Maple Valley, Washington couple claimed to be partners in Kirkland’s Solar Farm entity and amended their 2015 tax return to claim a net operating loss of $347,893. The couple got a tax refund of $17,759. In 2018, a Seattle couple claimed a 2017 tax loss from Solar Farm of $22,870 so that they could claim a refund of $28,180. In 2019, Grapeview, Washington resident claimed a 2018 solar energy credit of $10,341 so she could claim a refund of $10,704.
Kirkland owes $51,615,484 in restitution in addition to the $1 million fine imposed by Judge Chun.
Two days after agreeing to plead guilty, Kirkland and his wife began a divorce proceeding. In the proceeding, they agreed the wife would take ownership of approximately 100 parcels of real estate, five Tesla automobiles and the couple’s 10,000 square foot home in Arizona. Prosecutors noted in their filings that the government will continue to pursue the assets in order to satisfy the restitution obligation.
In asking for the nine-year sentence, prosecutors wrote to the court, “This is by far the largest loss in a tax case in this district in least a dozen years. Kirkland’s brazen fraud, his long history of professional misconduct, and his efforts to keep the stolen money make clear he will continue to engage in fraud as long as he is permitted to do so.”
“This sentence is a win for American taxpayers! All of Mr. Kirkland’s schemes served the sole purpose of making him very wealthy, and he cared little for those he manipulated,” said IRS Criminal Investigation Seattle Field Office’s Assistant Special Agent in Charge Carrie Nordyke. “The IRS relies on taxpayers to file accurate tax returns. If you observe something suspicious, go to IRS.gov and report it.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Former soldier sentenced to 30 years in prison for sexual abuse of young children on military bases including Joint Base Lewis-McChordRead the Press Release
Tacoma – A 40-year-old former soldier was sentenced Thursday, June 8, 2023, to thirty years in prison for raping two young children, announced U.S. Attorney Nick Brown. Lewis Patrick Thompson was arrested in July 2020 and pleaded guilty in October 2022. U.S. District Judge Robert J. Bryan ordered Thompson to be on lifetime supervised release following the prison term.
According to records filed in the case, the sexual assaults on the young children occurred on military bases overseas and in the U.S. The assaults occurred when Thompson was serving as a caregiver for the children.
The children disclosed the abuse to trusted adults when they were 11 years old. Both the Army Criminal Investigation Division (CID) and the FBI moved quickly to investigate the matter. Thompson has been incarcerated at the Federal Detention Center at SeaTac, Washington since the arrest.
At a future hearing, Judge Bryan will determine the amount of restitution Thompson must pay to the victims for the counseling and care they require due to the abuse.
The case was prosecuted by Assistant United States Attorney Matt Hampton.
Defendant who brought homemade gun to downtown Seattle protest sentenced to prisonRead the Press Release
Seattle –A former North Carolina man who brought an improvised gun to a 2020 Seattle protest and threatened to kill police was sentenced today in U.S. District Court in Seattle to two years in prison for possession of a destructive device, announced U.S. Attorney Nick Brown. Devinare Antwan Parker, 31, was arrested Sunday evening, May 31, 2020, after he possessed an improvised firearm capable of firing shotgun shells. At the sentencing hearing U.S. District Judge Ricardo S. Martinez said, “The offense conduct was extremely dangerous…. It was a very volatile time when emotions were running high. He basically had a homemade shotgun which was extremely dangerous.”
According to records in the case, at about 11:30 p.m. on Sunday evening, May 31, 2020, two Seattle Police Officers were driving their marked patrol car north on Third Avenue near Benaroya Hall. They saw Parker, who was downtown in violation of the curfew, walking down the middle of the street. Parker was ultimately arrested. When he was searched, officers found an improvised firearm constructed of two pieces of pipe and a firing pin with a laser pointer/ flashlight attached to the side. Parker also carried several shotgun shells that fit the device.
As he was being arrested, Parker shouted at the officers that he brought the weapon to the protest to shoot and kill police officers.
Following Parker’s federal arrest, prosecutors worked with his counsel to get him mental health treatment and the opportunity to resolve the case in King County’s mental health court. However, Parker repeatedly refused to participate in the mental health program, violated the conditions of his release with illicit drug use, and posted images on social media showing him using marijuana and displaying drugs, large amounts of cash, and apparent firearms parts.
In asking the court for a 27-month sentence, Assistant United States Attorney Erin H. Becker wrote to the court, “The government has struggled at length to reach a resolution in this case that would ensure community safety. For a long time, the government believed that this goal could be achieved through Mental Health Court. Parker’s mental illnesses and presumed addictions obviously present a danger to the community, and they may well have contributed to his offense. MHC offered an avenue for intensive oversight and supportive treatment to mitigate those risks. Unfortunately, it appeared that everyone wanted such a resolution except for Parker.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives.
The case was prosecuted by Assistant United States Attorney Erin H. Becker.
Six indicted in scheme that defrauded pandemic relief programs of more than $3 millionRead the Press Release
Seattle – A wide ranging fraud scheme, led by 29-year-old Paradise Williams, of Phoenix, was detailed today in a 26-count indictment charging wire fraud and money laundering, announced U.S. Attorney Nick Brown. Two defendants were arrested Monday in Phoenix, a third was arrested in Houston, and three defendants were arrested in Washington State. Two Seattle defendants are detained at the Federal Detention Center with hearings scheduled Friday and next week.
“The participants in this fraud were relentless in exploiting pandemic relief programs that were intended to assist small businesses and people who were vulnerable to eviction,” said U.S. Attorney Nick Brown. “The need for the emergency rental assistance greatly outweighed the funds available, and we know that fraud schemes such as this one stole money that should have gone to those desperately needing help.”
According to the indictment, Paradise Williams was the hub in a wheel of fraud. She created fake documents and told her accomplices how to pose as landlords and tenants claiming to need rental assistance. Because the program would pay for back rent and future payments, the person posing as the fraudulent landlord got payments of tens of thousands of dollars for each fake tenant application. Williams received kickback payments from those who used the scheme for fraud. Williams herself received more than $740,000 in emergency funds by posing as the landlord on at least 21 different applications for rental aid. In fact, neither Williams nor her accomplices owned any rental properties and were not the tenants they impersonated.
In addition to Williams the grand jury indicted:
Rayvon Darnell Peterson, 32, of Seattle, Washington
Tia Janee Robinson, 28, of Fife, Washington
Jahari Asad Cunningham, 45, of Houston, Texas
D’arius Akim Jackson, 37, Bonney Lake, Washington
David Jesus Martinez, 32, Pacific, Washington
In addition to the rental assistance fraud, members of the group defrauded or attempted to defraud the unemployment systems in Washington, California, South Carolina, and Nevada.
Between June 2020 and August 2021, Williams and others submitted at least 35 fraudulent applications for Economic Injury Disaster Loans (EIDL) seeking more than $3.7 million from the Small Business Administration (SBA). Two of the loans were funded for a loss of $300,000. Williams assisted her accomplices with forging documents and fake tax statements to defraud the SBA. Williams used multiple common email addresses and a common naming convention for business names as she attempted the fraud.
Williams and others also sought to defraud a different SBA program, the Paycheck Protection Program (PPP). In April and May 2021, Williams, Jackson, and others submitted at least 13 fraudulent applications to the SBA PPP program seeking approximately $253,000. Nearly $212,000 was paid out.
According to the indictment the money was used for luxury cars, lavish trips, designer clothes, jewelry, and even plastic surgery. Williams used over $90,000 in cash and wire transferred funds, from the proceeds and kickbacks she received, to buy a 2018 Range Rover sport utility vehicle and a 2017 Lexus ES Sedan. Both vehicles were seized in Phoenix on Monday. In June 2021, Williams used funds from the frauds to travel to Miami and while there she rented a Lamborghini.
Wire fraud in connection with a presidentially declared major disaster or emergency is punishable by up to 30 years in prison and a $1 million fine. Money laundering is punishable by up to 20 years in prison.
The case was investigated by the FBI with assistance from SBA-OIG.
The case is being prosecuted by Assistant United States Attorney Cindy Chang.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Marysville, Washington, man who ran fentanyl pill mill from his garage sentenced to 15 years in prisonRead the Press Release
Seattle – A Marysville, Washington, man was sentenced today in U.S. District Court in Seattle to 15 years in prison for three federal felonies connected to the fentanyl pill manufacturing lab in his rental home, announced U.S. Attorney Nick Brown. Jose Eduardo Garnica, 34, pleaded guilty in March 2023 to conspiracy to manufacture and deliver controlled substances, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. At the sentencing hearing, U.S. District Judge Tana Lin said, “This is one of the largest fentanyl seizures in the district. Mr. Garnica had so much fentanyl a hazmat team had to be called in.”
“This case weaves together all the strands that make fentanyl trafficking such a dangerous business,” said U.S. Attorney Nick Brown. “Mr. Garnica was manufacturing fentanyl pills with deadly powders that could make each pill lethal. His activities contaminated the home he rented, and he had 27 guns – many of them high powered assault weapons – adding to the danger. This is a significant prison sentence, but appropriate due to the risk he posed to our community.”
According to records filed in the case, Garnica came to the attention of law enforcement on June 17, 2022, when U.S. Customs and Border Protection (CBP) officers in Los Angeles inspected a package shipped from China to Garnica’s Marysville address. The package was labeled “furniture parts,” but in fact it contained dies for use in a pill press that would make pills that appear to have the markings of oxycodone pills. Further investigation of Garnica and Wilson revealed numerous unusual cash transactions and the purchase of 11 firearms in a three-month span of 2020. In fact, when law enforcement searched the home, agents seized 27 guns and 25 kilos of fentanyl. Law enforcement also seized 50,000 rounds of ammunition.
On July 21, 2022, agents with Homeland Security Investigations and the FBI executed search warrants at the Marysville residence and seized the pill press
and other materials for making fake oxycodone pills in the garage. Officers called a hazmat team to secure the lab due to the potentially deadly nature of fentanyl powder. Investigators determined that fentanyl residue had spread from the manufacturing location in the garage, throughout the house. The spread may have been caused by the HVAC system. Garnica has agreed to pay more than $71,000 to the owner of the home to remediate the residence.
In addition to the pill press and fentanyl powder, law enforcement found kilo sized bricks of fentanyl pills that appeared to have been smuggled into the U.S. from Mexico. Also of great concern, some of the pills Garnica was manufacturing also contained Xylazine – a sedative used in veterinary medicine that has been linked to more deaths. In some instances, those injected with Xylazine had had tissue damage requiring amputation.
In asking for an 18-year prison sentence, Assistant United States Attorney Vince Lombardi cited the unique danger of fentanyl and the heavy toll of fatal overdoses in King County. “…Fentanyl overdose deaths have continued to soar in the Seattle area. Overdose deaths attributable in whole or in part to fentanyl have risen from just 22 in 2016 to 709 in 2022. As of May 26, more than 500 overdose deaths were attributable to fentanyl for 2023 to date – a pace that puts King County at more than 1,000 overdose deaths by year end.”
The case was investigated by Homeland Security Investigations (HSI) and the FBI with assistance from the Washington State Patrol, National Guard Civil Service Team, Drug Enforcement Administration (DEA), Custom and Border Protection’s Air and Marine Operations, the Snohomish County Drug Task Force, and the Skagit County Drug Task Force.
The case is being prosecuted by Assistant United States Attorney Vince Lombardi.
Everett, Washington, man convicted of cyberstalking and making interstate threatsRead the Press Release
Seattle –A 42-year-old Everett, Washington, man was convicted today in U.S. District Court in Seattle of cyberstalking and making interstate threats following a three-day jury trial, announced U.S. Attorney Nick Brown. The jury deliberated about two hours before finding Christopher Scott Crawford guilty of an unrelenting campaign of online cyberstalking, threats, and harassment against a former romantic partner. Crawford was arrested on a criminal complaint on June 2, 2022. Crawford faces up to five years in federal prison when sentenced by U.S. District Judge James L. Robart on August 29, 2023.
According to records filed in the case, Crawford has repeatedly violated court ordered restraining orders by sending threats by text, email, social media messages, and phone calls. Crawford has 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.
Crawford has been detained since his arrest on June 2, 2022, at the Federal Detention Center (FDC) at SeaTac, Washington.
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.
Member of Tulalip Tribes sentenced to nearly four years in prison for assault and robberyRead the Press Release
Seattle – A 32-year-old member of the Tulalip Tribes was sentenced today in U.S. District Court in Seattle to 46 months in prison in connection with a carjacking during which he assaulted a driver who had tried to help him, announced U.S. Attorney Nick Brown. Michael J.D. Clark Jones, was arrested in February 2022, following a high-speed chase that left his girlfriend injured, and then he injured another person in the carjacking. In sentencing Jones to 46 months in prison and three years of supervised release, Judge John C. Coughenour said he was conscious of the “dangerous theft of the vehicle” and the concerns of the Tulalip Tribes.
According to records filed in the case, Jones fled from Tulalip Tribal Police at high speeds, ultimately crashing his car and leaving his girlfriend injured. Jones fled into the woods and ultimately came to the home of a woman on the Tulalip Indian Reservation. He told the woman he had been injured in a boating accident and asked her for a ride. The woman drove him a short distance to an intersection where she saw a tribal fish and wildlife truck. The woman started to get out of the car to get help from the fish and wildlife agents. Jones lunged at her and attempted to push her out of the car. The woman grabbed the door handle and steering wheel to keep from falling. Jones put the vehicle in drive and hit the gas pedal. The car accelerated across the road and hit an embankment. Jones hit the woman and tried to force her out of the moving car by punching her hand on the wheel. The door closed on the woman when it hit the embankment, and ultimately, she lost her grip and fell from the car. The force knocked the wind out of her, and she suffered back pain from the assault where Jones punched her in the shoulders, ribs, and chest.
Tribal police found the damaged car and located Jones at a home on the reservation where he was arrested. Jones told law enforcement he fled because he had just picked up 500 fentanyl pills.
In court today, Jones’ attorney said at the time of the crime Jones was “smoking 100 fentanyl pills a day.” Judge Coughenour commented that given that level of drug use, “It is amazing he is still alive.”
In asking for a 52-month sentence Assistant United States Attorney J. Tate London noted that the crime was “part of a pattern of endangering the lives of others,” and “showing little to no concern for the community.”
At a later hearing a Magistrate Judge will determine the amount of restitution Jones will pay to the victims in this case.
The case was investigated by the Tulalip Tribes Police Department with assistance from the FBI.
The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as the Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.
Former Bellevue, Washington, resident sentenced to 12 years in prison for securities fraudRead the Press Release
Seattle – A 42-year-old former Bellevue, Washington, man was sentenced today in U.S. District Court in Seattle to 12 years in prison for securities fraud, announced U.S. Attorney Nick Brown. Justin Costello victimized marijuana business owners, private investors, and investors who purchased stock in the public market. Costello used fraud proceeds for an expensive lifestyle, including an elaborate wedding with a James Bond theme. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez said the frauds “caused a severe impact financially, and a severe emotional impact…. People felt betrayed and violated by (Costello’s) actions.
"Mr. Costello had ‘big dreams’ -- building a lifestyle that emulated his hero, 007 James Bond — but he did so by victimizing dozens of people and businesses who entrusted their personal savings to him,” said U.S. Attorney Nick Brown. “When he was indicted, he fled with fake ID, cash, gold, and jewelry to finance a life on the run. But his story is not fiction and the $35 million damage to his victims is all too real. This prison sentence is fully appropriate.”
“After finally having to answer for his crimes, Mr. Costello went on the run” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “His flight to avoid prison demonstrates that is exactly where he belongs. I applaud the work of our investigators and prosecutors who finally put an end to his elaborate fraud, and to our partners who were able to apprehend him before he could leave the country.”
As part of his securities fraud scheme, Costello purchased two companies that were trading for pennies on the over-the-counter market and renamed them GRN Holding Corporation and Hempstract Inc. Costello recruited investors in these companies, allegedly making numerous false statements. Costello told potential private investors that he had an MBA from Harvard, that his personal wealth was significantly larger than it was, and that GRN Funds LLC, a private equity and hedge fund he owned, had over $1 billion in assets under management. None of that was true.
With these falsehoods, Costello convinced various investors across the country to invest in his companies.
Today., some of those recruited investors told the court how Costello preyed on their friendship to get them to invest. One told the court “Nothing with Costello was real… We were groomed by this predator… The stage was set for this big con.”
Another told the court “He is a liar, a financial psychopath, and a human wrecking ball.”
A third told the court that her husband was a changed man after losing all of their money investing with Costello. She described how her husband became depressed and took his own life.
Costello did not just defraud friends, he also committed fraud on those investing on public markets. He had press releases and securities filings made with multiple false representations. Between July 1, 2019, and May 18, 2021, over 7,500 investors purchased and sold GRN Holding Corp. securities while Costello was making, and causing to be made, material misrepresentations concerning GRN Holding Corp. Collectively, these investors lost approximately $25 million. Similarly, with Hempstract Inc., he made false statements and defrauded investors. Between November 2018 and June 2021, 29 private investors lost about $6 million.
Between October 2019, and January 2021, Costello hired an unindicted coconspirator to use Twitter in a pump and dump stock scheme. Costello would acquire the penny stock of a company and then instruct his prolific Twitter user to tweet falsehoods about the company that would drive up the stock price. The coconspirator would tweet about the stock as often as 90 times a day. In one instance Costello didn’t just use Twitter, he also instructed some of his “investors” to purchase stock in the company, driving the share price from a nickel to $2 per share. After driving the share price up, Costello sold the shares for a profit of more than $355,000. The prolific Twitter user was given a share of Costello’s profits from the pump and dump scheme. In all Costello made $625,092 in the pump and dump scheme.
Along with the securities fraud, in 2017 Costello owned and operated a company called Pacific Banking Corp that provided banking services to marijuana businesses in Washington, Colorado, California, Illinois, and Alaska. Costello sent false account statements to the marijuana businesses, so that they were lulled into thinking their money was secure. However, between 2019 and 2021, Costello diverted money from three marijuana business to benefit himself and his other companies. The three marijuana businesses lost about $3.7 million.
Costello was apprehended October 6, 2022, by law enforcement in Southern California. He had fake identification documents, cash, and valuables indicating he hoped to flee to Mexico to avoid prosecution.
In addition to the financial harm, prosecutors noted that Costello’s investors suffered a betrayal that stays with them to this day. “Costello’s deceit – about his background, his education, and his purported success – was designed to convince unwitting investors to trust him. And trust him they did. But when lies and fraud are exposed, victims are left with significant emotional and psychological damage. They blame themselves for being gullible and overly trusting. The resulting stress, anxiety, and sense of betrayal causes great emotional and psychological harm, and damages the victims’ relationships with friends, family, and others,” prosecutors wrote in their sentencing memo.
Judge Martinez recognized that harm in imposing the sentence saying, “in many financial crimes the victims are not known to the fraudster… Financial crimes where the defendant befriends the individual and uses them to entice others to the scheme has a completely different emotional impact. It leaves victims feeling helpless and hopeless.”
In his Plea Agreement, Costello agreed to pay no less than $35 million in restitution, but the Court will enter the final restitution amount in August 2023. Costello is forfeiting assets that were seized at the time of his arrest including $60,000 in cash, gold bars, Mexican pesos, two designer watches, and gem encrusted jewelry.
The case was investigated by the FBI.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Michael Dion.
Prolific mail thief who allegedly stole postal vehicles and postal keys arrested on federal chargesRead the Press Release
Seattle – The suspect in a series of mail vehicle and mail key thefts was arrested today on a federal complaint charging him with theft of mail and possession of stolen mail, announced U.S. Attorney Nick Brown. Johny Mixayboua, 27, is accused of a string of mail theft incidents involving stolen postal vehicles, stolen postal keys, mail theft, and associated crimes such as identity theft. Mixayboua will appear in U.S. District Court in Seattle at 2:00 today.
According to the criminal complaint, on December 28, 2022, a U.S. Postal Service vehicle was stolen from the 6300 block of South Bangor Street in Seattle. In the vehicle was a postal key that is used to access the cluster mailbox units in the 98178 zip code. The key allows the postal worker to open the back of the cluster box to deliver mail to multiple households. Since the theft of the vehicle and postal key, there have been numerous reports of cluster boxes in zip code 98178 being opened and mail stolen.
Working with neighbors, the Postal Inspection Service was able to get door camera footage showing the person accessing the postal boxes. Neighbors reported credit cards being stolen and attempts being made to use them. Inspectors were able to review images from when the credit card attempts occurred and ultimately identified Mixayboua as the person stealing the mail and attempting to use the stolen credit cards.
Additionally, local law enforcement determined that vehicles used in a number of the mail theft incidents were reported stolen.
On January 17, 2023, two more Postal Service vehicles were stolen. One in the 3000 block of Beach Drive SW and a second one in the 3600 block of 57th SW. Both are in zip code 98116. Using doorbell camera footage from the block
where one of the vehicles were recovered, investigators allegedly saw Mixayboua removing mail and parcels from the stolen postal vehicle and putting them in another vehicle. Again, law enforcement traced credit cards stolen from the mail and obtained surveillance footage that appears to show Mixayboua attempting to make purchases with the credit cards.
On January 30, 2023, a fourth postal vehicle was stolen – this time from the 2000 block of S. Columbian Way in Seattle. On March 28, 2023, a fifth postal vehicle was stolen from the 5700 block of S. 129th Ave. One of the people associated with the theft matches a description of Mixayboua.
In late January and February, the mail theft incidents continued -- this time in the Snoqualmie, Washington area. The cluster boxes were opened with either a counterfeit or authentic postal key. Again, credit cards were stolen, and one was linked to images of Mixayboua making purchases at Target.
Throughout April, mail thefts continued from as far north as Lake Forest Park and as far south as southeast Seattle.
The postal service halted deliveries in zip code 98118 for about a week while investigators worked to track down and arrest Mixayboua.
The U.S. Postal Inspection Service (USPIS) has worked diligently to get Mixayboua and his coconspirators into custody.
The case is being prosecuted by Assistant United States Attorney Elyne Vaught.
Seattle man who defrauded relief programs of more than $1 million sentenced to 8+ years in prisonRead the Press Release
Seattle – A former Seattle resident who defrauded federal COVID-19 benefit programs of more than $1 million was sentenced today to 100 months in prison for wire fraud and aggravated identity theft, announced U.S. Attorney Nick Brown. Bryan Alan Sparks, 42, was indicted for the fraud scheme in November 2021 and pleaded guilty January 20,2023. At the sentencing hearing, U.S. District Judge James L. Robart said, Sparks was “a serial thief and a fraudster – one of the more successful ones…. I am appalled by the damage Mr. Sparks has done.”
“People such as Mr. Sparks took advantage of the public and our government at the height of a crisis, and I’m glad to see him held accountable for the damage he caused,” said U.S. Attorney Nick Brown. “The harm goes beyond depleting government funds – his use of other people’s identities has damaged the victims and will continue to cause problems for them into the future.”
According to records filed in the case, from March 2020 until at least January 2021, Sparks and a coconspirator used stolen personal information of more than 50 Washington residents and businesses to apply for Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA) and unemployment benefits from the Washington Employment Security Department (ESD). Sparks and his coconspirator obtained approximately $521,900 from SBA and $519,700 from ESD. Sparks opened fraudulent bank accounts to receive the benefits and had unemployment benefit debit cards mailed to a variety of addresses in the Seattle area where he could retrieve them. In all, Sparks attempted to obtain at least $1.98 million in federally funded payments.
Sparks used the identities of real people and, in some instances, actual small businesses to open bank and credit accounts. The victims suffered significant harm. One person saw his credit score drop 200 points because of the seven credit and bank accounts opened in his name. The victim’s impact statement stated that the financial toll of Sparks’ crimes included being unable to execute his plan to start a business and invest in real estate. He believes that these consequences will be lasting for “years to come.”
Another victim wrote about spending hours on the phone with law enforcement reporting the identity theft. “This fraud has changed me and will always cause me to have concern for my safety and for my family’s safety . . . This is something that I would never want anyone else to have to deal with. It is not a good feeling, and this is how it will be.”
In September 2020, law enforcement linked Sparks to lock boxes seized in Portland, Oregon. When the safes were searched, officers seized more than $65,000 in cash and a number of debit cards.
Assistant United States Attorney Cindy Chang wrote in her sentencing memo, “During a nine-month period, despite multiple encounters and seizures by law enforcement in multiple states, Sparks possessed at least 46 cell phones, 14 laptops, multiple credit card skimmers, countless bank and identification cards in identities other than Sparks…, and various other sophisticated devices used for identity theft.”
In all, Sparks was ordered to pay $1,041,661 in restitution to the government programs. He will be on supervised release for five years following the prison term.
“Bryan Sparks caused substantial harm to individuals by stealing their identities and misusing Social Security numbers,” said Gail Ennis, Inspector General for the Social Security Administration. “This sentence of 100 months holds Sparks accountable for his actions. I thank our law enforcement partners for their invaluable work on this case and the U.S. Attorney’s Office for prosecuting this case.”
The investigation of this case is led by the Social Security Administration, Office of the Inspector General (SSA-OIG) and U.S. Postal Inspection Service, with partners: Colusa County Sheriff’s Office (CA); Washington State Employment Security Department; Small Business Administration, Office of the Inspector General; Amtrak Police Department (D.C.); FBI (Sacramento, CA office); FBI Cyber Task Force (D.C.); Washington State Department of Licensing, Driver and Vehicle Investigations; and the Department of Labor, Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former company Chief Financial Officer indicted for using $35 million in company cash to invest in cryptocurrency ventureRead the Press Release
Seattle – A Mercer Island, Washington resident who previously served as a start-up company Chief Financial Officer (CFO) was indicted today in U.S. District Court in Seattle for wire fraud for taking and misusing some $35 million from his employer, announced U.S. Attorney Nick Brown. Nevin Shetty, 39, is scheduled for arraignment on the indictment on May 25, 2023.
According to the indictment, Shetty was hired as the CFO of a private company in March 2021. The company was raising capital for its work in multiple rounds of funding. The company, with Shetty, was working on policies as to how the money raised should be conservatively invested while the company worked to grow its business. The company adopted an investment policy statement that called for company cash to be invested only in fixed income instruments payable in U.S. dollars. Only certain types of conservative investments were approved.
Despite the fact that Shetty helped draft the policy and disseminate it, he moved $35 million in company funds to a cryptocurrency platform he controlled as a side business. Shetty created that side business, called HighTower Treasury, in or around February 2022. In March 2022, he was told he could not continue as CFO at his employer due to concerns about his performance. Shortly after he got this news, Shetty secretly transferred the funds out of the company’s account.
Between April 1 and 12, 2022, Shetty transferred $35,000,100 of his employer’s money to an account for HighTower. No one else at the company knew of these transfers. The money was supposed to be invested by HighTower in a realm of cryptocurrency sometimes referred to as decentralized finance or “DeFi.” HighTower would pay Shetty’s company 6% interest and keep the remainder of any interest earned, which could have been substantial. As an owner of HighTower, Shetty stood to keep those profits. Shetty kept this investment in cryptocurrency secret from the board and other employees at the company where he worked.
However, the cryptocurrency investments soon began declining and by May 13, 2022, the value of the $35 million investment was nearly zero.
The company reported the embezzlement to the FBI who launched an investigation.
Wire fraud is 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 case is being prosecuted by Assistant United States Attorney Philip Kopczynski.
shetty_indictment.pdfArtist who falsely claimed Native American heritage sentenced for violations of the Indian Arts and Crafts ActRead the Press Release
Seattle – A 67-year-old Western Washington artist was sentenced today to 18 months of federal probation for violations of the Indian Arts and Crafts Act (IACA) by representing himself as a Native American artist, when he had no tribal enrollment or heritage, announced U.S. Attorney Nick Brown. Jerry Chris Van Dyke aka Jerry Witten, of Seattle, pleaded guilty in March 2023. At the sentencing hearing, U.S. District Judge Tana Lin noted that this was not a one-time error, but a ten-year period of “undermining a community and identity.”
“Prosecuting cases of fraud in the art world is a unique responsibility and part of our work to support Tribal Nations,” said U.S. Attorney Nick Brown. “I hope this case will make artists and gallery owners think twice about the consequences of falsely calling an artist Native and work Native-produced. They should consider the damage to reputation, the legal fees, and ultimately a criminal record. Fake Native art should be kept out of the marketplace because it harms the legitimate Native art community.”
The investigation of Jerry Van Dyke began in February 2019, when the Indian Arts and Crafts Board received a complaint that Van Dyke was representing himself as a Nez Perce Indian artist, when in fact, he is not an enrolled tribal member. Investigators from the U.S. Fish and Wildlife Service made undercover purchases at a gallery in the Pike Place Market area of Seattle that advertised pendants Van Dyke had made as Native American art. Van Dyke used the name Witten for these sales. When interviewed by agents, Van Dyke admitted knowing about the Indian Arts and Crafts Act, and admitted he was not a tribal member. Through the gallery Van Dyke had sold more than $1,000 worth of carved pendants represented as Native American artwork based on Aleut masks. According to the plea agreement, Van Dyke had worked with the gallery for more than ten years, with the gallery owner providing him with woolly mammoth ivory, antlers, animal bones and fossilized walrus ivory to make the pendants that it sold.
Speaking in court today, Shannon F. Wheeler, Chair of the Nez Perce, said “artwork is full of our culture… it is a piece of who we are.” Chair Wheeler continued that the sale of fake Native art “continues a process of devaluing us as a people.”
Native art “speaks of the enduring relationship that we have with our landscape,” said Nez Perce Cultural Resource Director Nakia Williamson. “All we have left is our identity, and that is under attack.”
“Jerry Van Dyke’s false tribal affiliation and marketplace saturation erodes the sustainability and economic well-being of Native American artists," said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. "Our dedicated team of special agents works 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 end violations of the Indian Arts and Crafts Act. 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.”
"By statute, the Indian Arts and Crafts Board (IACB) is responsible for the Indian Arts and Crafts Act, a truth-in-marketing law governing the sale of Indian art and craftwork. The prosecution of Jerry Van Dyke under the Indian Arts and Crafts Act for counterfeiting Alaska Native art is another critically important step in protecting the economic livelihoods and rich cultural heritage of contemporary and traditional Indian artists, as well as preserving the vitality of the Indian art market in the Northwest and nationwide,” stated IACB Director Meridith Stanton. “When individuals and businesses market art misrepresented as Indian made, they undercut Indian artists and Indian economies, and prey upon unwitting consumers. For those selling counterfeit Indian art and craftwork, wherever you are we will diligently work to find you and prosecute you under the Act.”Van Dyke pleaded guilty in March 2023 to Misrepresentation of Indian Produced Goods and Products. The crime is punishable by up to one year in prison.
The case was investigated by the U.S. Fish and Wildlife Service. The case was prosecuted by Assistant United States Attorney and Tribal Liaison J. Tate London.
Seattle man sentenced to ten years in prison for possession of drugs and a “ghost” machinegunRead the Press Release
Seattle –A 32-year-old Seattle man was sentenced today to ten years in prison for his possession of a so-called “ghost gun” and drugs in a stolen vehicle, announced U.S. Attorney Nick Brown. Jade B. Irey was arrested at an auto parts store in Kent, Washington on March 24, 2022. On December 5, 2022, Irey pleaded guilty to unlawful possession of a machinegun, possession of controlled substances with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. At the sentencing hearing U.S. District Judge James L. Robart said, Irey had been “a one-person crime wave.” Judge Robart noted that Irey had 700 fentanyl pills and the machinegun, making the case “one of the most serious I’ve seen in recent history.”
“Unregistered, fully automatic, and with an extended magazine, this weapon and others like it are designed for one thing: to kill,” said U.S. Attorney Nick Brown. “We are intent on using all the tools Congress has given us to combat possession of such illegal weapons and the damage they do in our communities.”
According to records in the case, Irey was under investigation for a December 2021 burglary in Bellevue, where he apparently dropped his cell phone while leaving the scene. The resident turned the cell phone over to police. Bellevue Police put Irey under surveillance, following him and an associate from his residence in the Magnolia neighborhood of Seattle to stops throughout the area. When a records check indicated the vehicle Irey was driving was stolen, police arrested Irey inside the auto parts store in Kent. A search of the car turned up the ghost gun and a pouch containing methamphetamine, black tar heroin, and 700 suspected fentanyl pills. Using court authorized search
warrants, investigators reviewed information on Irey’s electronic devices detailing his drug sales and ownership of the firearm.
Irey is also charged in state court for a number of crimes including burglary, identity theft, car theft and hit and run. The plea and sentencing in this case is part of a global resolution and the state sentences are expected to run concurrent with the ten year federal sentence.
The case was investigated by the Bellevue Police Department Special Operations Unit with assistance from Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Redmond, Washington man sentenced to one year in prison for Paycheck Protection Program fraudRead the Press Release
Seattle – A 62-year-old Redmond, Washington man was sentenced today in U.S. District Court in Seattle to one year in prison for conspiring to defraud the federal Paycheck Protection Program (PPP) of $646,000 in COVID-19 relief funds, announced U.S. Attorney Nick Brown. Joseph M. Freeman used the names of two companies he registered to obtain forgivable Paycheck Protection Program loans. After detecting the fraud, federal investigators froze approximately $220,000 that remained in Freeman’s bank account and returned it to the Small Business Administration. At the sentencing hearing U.S. District Judge James L. Robart said, “Other people who were in the same situation chose to suffer those circumstances rather than commit fraud on the Paycheck Protection Program… I think it is important to understand you cannot steal from the government.”
“When Mr. Freeman obtained pandemic relief funds through fraud, it meant other legitimately needy business owners were delayed and possibly denied funds as there was a limited pool of relief money,” said U.S. Attorney Nick Brown. “As we continue to emerge from the pandemic, it is critical that we uncover the fraud and hold accountable those who sought to unjustly profit from programs designed to keep the needy afloat.”
According to records in the case, in May 2020, Freeman and his coconspirators used information about a company he formed in 2004 to claim $500,000 in PPP funds. Freeman claimed Special Delivery LLC had 15 employees and a payroll of $200,000 per month, when in fact it had no employees other than Freeman. Freeman used fake Internal Revenue Forms to make it appear the company had employees and sought $500,000 in PPP funds. On May 20, 2020, the loan proceeds were wired to Freeman’s bank. After receiving the funds, Freeman created an account with a payroll service to disburse the funds to individuals who were not employees of the company. In fact, the list included friends, family, and people to whom Freeman personally owed money.
On June 15, 2020, Freeman and his coconspirators submitted a second fake application. Freeman claimed New Jack Trucking LLC had 10 employees and a monthly payroll of $58,400. Freeman and his associates claimed the business had been in operation in February 2020 even though the entity never had any genuine business activity. The coconspirators used fake IRS forms and a falsified bank statement to make it appear New Jack Trucking was a genuine business with employees. On June 16, 2020, Freeman and his coconspirators obtained $146,000 for that fraudulent application.
Freeman supplied some of the loan proceeds to his coconspirators and used some of the funds for his own benefit. The account contained debits for airline travel, hotel expenses, and tickets to various venues and sporting events.
In July 2020, after federal investigators detected the fraud and notified Freeman’s bank, approximately $220,000 of the loan proceeds were frozen and returned to the Small Business Administration. The net loss from the scheme is $426,666.
As Assistant United States Attorney Cindy Chang noted, the damage was not just the stolen funds, but the strain fake applications put on the benefit system. “During major disasters and times of crisis, it is particularly important for the government to be able to disburse aid quickly to victims to mitigate the impact of the crisis. When individuals exploit these vulnerable periods, they not only drain finite monetary resources, they also burden limited infrastructure resources. For example, it was widely reported that the large volume of PPP applications in the first few months of the pandemic overwhelmed SBA servers and frustrated small business owners across the country who were unable to even submit an application, much less receive funds.”
Judge Robart ordered Freeman to pay $426,666 in restitution and to be on three years of supervised release following his prison sentence.
This case was investigated by the U.S Treasury Inspector General for Tax Administration (TIGTA).
The case was prosecuted by Assistant United States Attorney Cindy Chang.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former manager of two Skagit County dialysis clinics sentenced to 30 months in prison for bank fraud and identity theftRead the Press Release
Seattle – A former Washington State resident who now resides in Texas was sentenced today in U.S. District Court in Seattle to 30 months in prison for Aggravated Identity Theft and Bank Fraud, announced U.S. Attorney Nick Brown. Jeanne Ang Rather, 51, was indicted in May 2021 for stealing the personally identifying information of at least ten people who worked under her at dialysis clinics. Between September 2019 and March 2020, she used the information to fraudulently open credit accounts and charge expenses for her family. She also stole and deposited checks from the clinics into her own bank accounts. U.S. District Judge John C. Coughenour ordered Rather to be on three years of supervised release following the prison sentence.
According to records filed in the case, Rather was the manager of two dialysis clinics in Skagit County. In addition to stealing the identities of her subordinates, she stole 20 checks from insurance companies written to one of the clinics and deposited the checks into her personal bank accounts. She defrauded the clinic of $98,511 and ran up credit card charges that defrauded a bank of $106,089 for a total loss amount of more than $204,000. In her plea agreement in February 2022, Rather agreed to make full restitution to the bank and clinic.
The case was investigated by the U.S. Postal Inspection Service (USPIS)..
The case was prosecuted by Assistant United States Attorneys Sok Tea Jiang and Yunah Chung.
Former Finance Director pleads guilty to embezzling $3 million+ from two local non-profitsRead the Press Release
Seattle – The former Finance Director at two Seattle area non-profits pleaded guilty today in U.S. District Court in Seattle to embezzling more than $3 million from her employers, announced U.S. Attorney Nick Brown. Susana Tantico, 62, of Renton, Washington committed the embezzlement over a nine-year period. Tantico will be sentenced by U.S. District Judge James L. Robart for two counts of wire fraud on August 15, 2023.
“Ms. Tantico was a trusted financial professional who sadly used her skills to steal from organizations serving those most in need of help,” said U.S. Attorney Brown. “Each time she used the organization’s credit card for trips, gambling, or clothing, she knew she was effectively stealing from people who depended on assistance from her employer. Then she used her access to the organization ledgers to cover-up the theft. The true victims are the clients who should have been served with the funds she stole.”
According to the charging information and plea agreement, in 1999 Tantico began working for a non-profit that provides healthcare to underserved populations. Ultimately, Tantico became the non-profit’s Finance Director. Between 2011 and June 2020, Tantico embezzled nearly $2.3 million from the healthcare non-profit. She used the non-profit’s debit and credit cards to withdraw $1.6 million at casinos for gambling. She also used the debit and credit cards to pay for personal vacations, such as a $26,000 family trip to Disneyworld, and trips to Las Vegas and San Diego. Tantico also used the medical non-profit’s debit and credit cards for more than $83,000 worth of purchases at Nordstrom and $40,000 worth of purchases at Apple stores.
After running up the big bills, Tantico used the non-profit’s funds to pay the credit card bills and disguised the payments as legitimate expenses, such as medical supplies. Throughout this timeframe, Tantico told the non-profit auditors that she was aware of no fraud at the non-profit.
In 2020, Tantico went to work as Finance Director for a different non-profit -- one with a focus on criminal justice issues. Tantico used more than $485,000 of the non-profit’s funds for gambling at casinos. She transferred $21,000 from the non-profit to her mortgage servicer to pay her home mortgage. She also transferred money to her personal bank account. Tantico then altered the bank records to hide the embezzlement. At one point, she was questioned by one of the organization’s banks about all the withdrawals at casinos. She claimed that the non-profit held youth programs at the casinos and claimed the withdrawals were for cash prize giveaways. In all, Tantico stole nearly $893,000 from the non-profit. The non-profit has incurred $132,000 in costs to forensically audit its books, fix its accounting procedures and records, and reply to vendors.
Prosecutors have agreed to recommend a prison sentence of no more than 41 months in prison. Judge Robart is not bound by the recommendation and can impose any sentence allowed by law.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine.
The case was investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
GCI Communications Corp. to Pay More than $40 Million to Resolve False Claims Act Allegations Related to FCC’s Rural Health Care ProgramRead the Press Release
WASHINGTON – GCI Communications Corp. (GCI), located in Anchorage, Alaska, has agreed to pay $40,242,546 to resolve allegations that it violated the False Claims Act by knowingly inflating its prices and violating Federal Communications Commission (FCC) competitive bidding regulations in connection with GCI’s participation in the FCC’s Rural Health Care Program. The program provides more than $570 million each year to assist rural health care providers with their telecommunications needs.
Under the Rural Health Care Program, the FCC pays a subsidy equal to the difference between the more expensive cost for a telecommunication service in a rural area and the less expensive cost for the same service in an urban area in the same state. FCC regulations also require contracts for these subsidized services be awarded through a competitive bidding process. The United States alleged that, between 2013 and 2020, GCI failed to comply with FCC regulations that governed how telecommunications companies must calculate their prices for purposes of claiming subsidy payments, and as a result GCI received greater subsidy payments than it was entitled to. The United States further alleged that GCI caused Eastern Aleutian Tribes Inc., a rural health care provider in Alaska, to agree to inflated prices after the relevant contract was competitively bid. As a result, GCI knowingly received higher payments under the program, from 2015 through 2018, in connection with its contract with Eastern Aleutian Tribes, Inc.
“Telecommunications providers that seek to participate in important FCC programs like the Rural Health Care Program must comply with applicable rules, including those governing how they competitively bid on contracts and set their prices,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to preventing the misuse of taxpayer funds.”
“Providing health care services in rural areas, especially to Indigenous people in remote areas of Alaska, is vital and must be protected,” said U.S. Attorney Nick Brown for the Western District of Washington. “This $40 million settlement should deter other companies from attempting to improperly enrich themselves by overcharging the government for important healthcare-related telecommunications services.”
“Compliance with the Universal Service Fund’s Rural Health Care Program rules is a critical component in making sure that medical providers have access to the types of communications equipment and services needed to enhance medical options and care in rural communities,” said FCC Enforcement Bureau Chief Loyaan Egal. “This global settlement reflects our strong partnership with the Department of Justice in protecting the USF, and we thank them for their efforts in this particular case.”
Contemporaneous with the civil settlement, GCI has agreed to enter into a corporate compliance agreement with the FCC. GCI will also resolve an FCC administrative investigation and an FCC proceeding arising from GCI’s participation in the Rural Health Care Program.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Robert Taylor, GCI’s former Director of Business Administration. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Taylor v. GCI Liberty, et al., Case No. 19-cv-2029 (W.D. Wash.). The whistleblower will receive $6.4 million as his share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Western District of Washington, with assistance from the FCC’s Office of the Inspector General and the FCC’s Enforcement Bureau.
The matter was handled by Trial Attorney David M. Sobotkin and Assistant U.S. Attorney Kayla Stahman for the Western District of Washington.
gci_settlement_agreement_-_fully_executed_0.pdfThe claims resolved by the settlement are allegations only and there has been no determination of liability.
Accounting Manager for Everett, Washington, company pleads guilty to embezzling more than $2.5 million from employerRead the Press Release
Seattle – A 39–year-old Kent, Washington, woman pleaded guilty today in U.S. District Court in Seattle to wire fraud and tax fraud charges for her 10-year embezzlement scheme, announced U.S. Attorney Nick Brown. Christin Guillory, an Accounting Manager at an Everett-based manufacturing company, stole more than $2.5 million from her employer by transferring funds to accounts Guillory set up in the names of fake companies and then routing the funds to her own bank accounts. Guillory faces up to 20 years in prison when sentenced by U.S. District Judge Ricardo S. Martinez on August 11, 2023.
According to the plea agreement, in April 2013, Guillory set up an account with payment processor Square that used a display name that made it appear it was an account of a commercial shipping company. Between 2014 and 2019, Guillory secretly paid $1,695,591 to that account and then transferred the money to her own bank accounts. She made false entries in the company books to conceal the theft.
In 2019, Guillory stopped using Square for her fraud and instead used two PayPal accounts. She gave one of the PayPal accounts a display name similar to that of her employer. For the second account, she used the name of a shipping company with which she had no affiliation. In 2020 and 2021, she caused the transfer of $604,000 to the PayPal accounts and made false accounting entries to cover her tracks. She then transferred the bulk of the money for her own use. Becoming more brazen, between August and November 2021, Guillory transferred $247,000 directly from company accounts to her own bank accounts. Again, she made fraudulent accounting entries and reused legitimate invoices to make it appear the payments were for appropriate business purposes. In all, Guillory made at least 867 secret transactions using interstate wires that totaled $2,536,086.
The scheme was detected when a financial institution reported irregularities.
Guillory is also charged with making a false tax return for failing to report the more than $2.5 million in income she embezzled. For example, for the tax year 2019, Guillory represented that her income was $38,022, but failed to report the $615,392 in income she received that year from her embezzlement. In all, Guillory failed to pay $590,850 that she owed in taxes.
“Ms. Guillory received millions of dollars of ‘involuntary contributions’ from her employer, stolen amounts which she gave herself by abusing her position of trust within the company,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Financial and tax crime have consequences, and Ms. Guillory’s guilty plea today is a compelling reminder of that.”
Wire fraud is punishable by up to twenty years in prison. Filing a false tax return is punishable by up to three years in prison.
Under the terms of the plea agreement, prosecutors will recommend no more than 41 months in prison for Guillory. The actual sentence is up to Judge Martinez who will consider a number of statutory factors before determining the appropriate sentence.
The case was investigated by the FBI and the Internal Revenue Service: Criminal Investigation (IRS:CI).
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.