Western District of Washington
Press releases recorded for this federal judicial district.
Ninth Circuit Court of Appeals upholds conviction of former State Auditor Troy X. KelleyRead the Press Release
Seattle - The 9th Circuit Court of Appeals today rejected the appeal of former Washington State Auditor TROY X. KELLEY, clearing the way for him to start serving the one-year-and-one-day sentence imposed by U.S. District Judge Ronald B. Leighton on June 28, 2018. The court declined to hear oral argument and upheld the conviction with an order today.
“Through two trials and multiple appeals, the attorneys in this office have sought nothing but justice for those Kelley defrauded and the members of our community who expect law breakers to be held accountable regardless of their station or standing in society,” said U.S. Attorney Brian T. Moran. “The time has come for Troy Kelley to accept his punishment and report to custody and conclude this lengthy legal odyssey.”
According to the evidence at trial, between 2003 and 2008, KELLEY operated a business that monitored real estate filings on county websites. KELLEY agreed with escrow companies that his business would charge a flat fee of $15 or $20 for each real estate transaction it monitored for the escrow companies’ customers. In addition to the flat fee, the escrow companies also gave Kelley $100-$150 of customer money for each transaction, which KELLEY agreed to use to pay expenses if necessary. KELLEY agreed to refund the money to the homeowners if there were no expenses. However, beginning in 2005, in virtually every case he handled, KELLEY kept the entire amount withheld on each transaction, thereby stealing nearly $3 million.
In 2008, class action lawsuits were filed against escrow companies, claiming that homeowners had been charged excessive fees in real estate transactions. After the lawsuits were filed, KELLEY falsified a letter to the plaintiff in one lawsuit to make it appear that KELLEY had refunded the plaintiff’s money, when in fact he had not. Concerned that the lawsuits would lead to his downfall, KELLEY transferred millions of dollars of stolen money through a series of bank accounts, ultimately placing the funds in an investment account for a company controlled by a Central American trust controlled by KELLEY. One of the escrow companies sued KELLEY to retrieve the stolen money. KELLEY testified falsely under oath in the lawsuit that he had only kept money he had earned for services provided. One of KELLEY’s convictions for making false declarations in a court proceeding is based on that testimony.
Beginning in 2011, KELLEY spent the stolen money on personal expenses and his campaign for State Auditor. To hide the fact that this was money he had stolen years earlier, KELLEY claimed on his tax returns that he was continuing to perform real estate services and to earn income through his business, when in fact he had not operated the business for years. In the same tax returns, KELLEY claimed tens of thousands of dollars of business deductions for personal items like spa treatments, a family trip, and household purchases such as sheets and toys. KELLEY’s tax fraud convictions are based on this conduct.
In December 2017, a unanimous jury convicted KELLEY of possession of stolen property, two counts of making false declarations under oath, and six counts of tax fraud. Following the trial, an unrelated U.S. Supreme Court ruling resulted in the dismissal of one of the tax fraud counts.
A first trial in March 2016 ended with the jury being able to reach a verdict on only one count, acquitting KELLEY on lying to the Internal Revenue Service agent who questioned him about his scheme in 2013.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI.
The case was prosecuted by Assistant United States Attorneys Arlen Storm, Andrew Friedman, Seth Wilkinson and Katheryn Frierson. Assistant United States attorney Michael Morgan handled the appeal.
18-30153._dkt._64_usv_kelley_002.pdfNineteen indicted in cartel-connected drug trafficking conspiracyRead the Press Release
Seattle - Fifteen people were arrested today throughout the Puget Sound region and in California following an 18-month investigation of a drug trafficking organization tied to the CJNG cartel in Mexico, announced U.S. Attorney Brian T. Moran. The defendants arrested today made their initial appearance in U.S. District Court in Seattle.
“This cartel is known as a violent and prolific drug trafficking group. I commend the DEA-led task force for taking a bite out of its drug distribution and money laundering networks,” said U.S. Attorney Brian Moran. “Over the course of this investigation law enforcement seized more than 100 pounds of methamphetamine and ten pounds of heroin, and agents and officers continued their work despite the challenges posed by the COVID-19 pandemic.”
“The South Sound Streets are safer today with the removal of this violent criminal ring that pushed heroin, methamphetamine and fentanyl into our communities,” said DEA Special Agent in Charge Keith Weis. “Without question the critical partnership between local, state and federal law enforcement agencies made today’s effort possible and ultimately benefits the public’s safety.”
“The results of this operation are a clear example of what can be achieved through HSI’s partnership with state, local and federal law enforcement agencies,” said Eben Roberts, acting special agent in charge HSI Seattle.” I commend all of the agents, officers and analysts involved in this operation. Their dedication resulted in the removal of massive amounts of narcotics from our community, the disruption of an extremely dangerous supply chain and undoubtedly saved numerous lives.”
The indictment charges conspiracy, possession, attempted possession and distribution of methamphetamine and heroin, as well as a money laundering conspiracy. These are the nineteen defendants named in the grand jury indictment:
Alan GOMEZ MARENTES; 35, Los Angeles, California, and Tukwila, Washington
Juan Antonio GONZALEZ CARRILLO; 31, Gardena, California
Luis MAGANA RAMIREZ; 32, Fife, Washington
Jose Elias BARBOSA CEBALLOS; 35, Port Orchard, Washington
Jose Daniel ESPINOZA; 33, Renton, Washington
Estefhany COREA MENDOZA; 27, Burien, Washington
Adrian IZAZAGA MARTINEZ; 29, Kent, Washington
Jorge MONDRAGON; 24, Kent, Washington
Benjamin FUENTES; 28, Renton, Washington
Luis ZAVALZA SANCHEZ; 31, Seattle, Washington
Alysha Marie JONES; 27, Shelton, Washington
Armando FIERRO PONCE; 26, Renton, Washington
Amanda MEYER; 35, Kent, Washington
Michael WOOD; 45, Port Orchard, Washington
Luis CASTILLO BARRAGAN; 32, Kent, Washington
Efrain LUNA RODRIGUEZ; 21, Maywood, California
Julian PINEDA CASILLAS; 33, Victorville, California
Blanca MEDINA; 36, Los Angeles, California, and Tukwila, Washington
Ruth GOMEZ MARENTES; 34, Kent, Washington
In all, fifteen search warrants were served in the Puget Sound region, and four were served today in California. Today alone, agents seized: twenty pounds of methamphetamine, heroin, cocaine, 200 fentanyl pills, nine firearms, and more than $250,000 in cash. Previously, during the investigation, law enforcement seized more than 100 pounds of meth, various quantities of cocaine, heroin, 1500 fentanyl pills, and six firearms.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation, and the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF). In addition, to the agencies listed above, these law enforcement agencies assisted in the investigation and/or with arrests and search warrants executed today: DEA Seattle Special Response Team, Valley Narcotics Enforcement Team, Valley SWAT, Pierce County SWAT, Pierce County Sheriff’s Office, Joint Narcotics Enforcement Team, Bremerton Special Operations Group, King County SWAT, King County Sheriff’s Office Metro, Burien Police Department, Auburn Special Investigations Unit, FBI Seattle, FBI SWAT, FBI Portland Tactical and TNET, which is comprised of Tacoma, Lakewood, Auburn, Kent, Bonney Lake and Puyallup Police Departments, the Pierce County Sheriff’s Office and the Washington State Department of Corrections. The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA).
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and Marci Ellsworth.
Limited images from this investigation are available from DEA Public Affairs Officer Jodie Underwood at [email protected].
gomez_marentes_et_al_indictment.pdfStatement of U.S. Attorney Brian T. MoranRead the Press Release
“I want to be very clear regarding the role of federal agents summoned to Seattle. They are here to protect federal properties and the important work that occurs in our courthouses and federal buildings. These are the places where federal judges decide cases and controversies, including those filed by protestors against the City, where social security benefits are processed, citizenship is made possible, and where the rights of the accused are protected.
Last weekend, the Nakamura Federal Courthouse was broken into, a smoke bomb and an American flag were burned, and the building was tagged with graffiti inside and out. These actions were not peaceful protests that my office and the Constitution works to protect. The Nakamura building bears the name of Seattle native Private First Class William Kenzo Nakamura. Before joining the U.S. Army in 1942, Nakamura and his Japanese American family were sent to an incarceration camp. He died in action near Castellina, Italy on July 4th, 1944, while protecting his platoon from withering machine gun fire. Private Nakamura was posthumously awarded the Congressional Medal of Honor, our nation’s highest award for heroism. The people who attacked this building, a building where wrongs are righted and disputes are settled according to the rule of law, are not protesting anything; they seek only to disrupt and destroy, and through their acts, they dishonor Private Nakamura’s memory and his extraordinary sacrifice for his country.
I and my colleagues are reaching out to community leaders with one message: Let’s not let the violence that has marred the Portland protests damage peaceful movements here for a more just society. These federal agents will join our usual law enforcement staff to safeguard our federal buildings. My hope is our community will speak with one voice to discourage those who seek to hijack peaceful protests with damage and destruction. “
Washington Tech Executive charged with COVID-Relief fraud and money launderingRead the Press Release
WASHINGTON – A Washington tech executive was taken into custody today and charged with fraudulently seeking over $5.5 million in Paycheck Protection Program (PPP) loans and laundering the proceeds, announced Acting Assistant Attorney General Brian C. Rabbitt at of the Justice Department’s Criminal Division and U.S. Attorney Brian T. Moran of the U.S. Attorney’s Office for the Western District of Washington.
Mukund Mohan, 48, of Clyde Hill, Washington, was charged by criminal complaint, unsealed today after he was taken into custody, in the Western District of Washington with one count of wire fraud and one count of money laundering. He is expected to make his initial appearance before U.S. Chief Magistrate Judge Brian A. Tsuchida at 2 p.m. PDT today.
The complaint alleges that Mohan submitted at least eight fraudulent PPP loan applications on behalf of six different companies to federally insured financial institutions. The complaint alleges that, in support of the fraudulent loan applications, Mohan made numerous false and misleading statements about the companies’ respective business operations and payroll expenses.
The complaint also alleges that, in further support of the fraudulent loan applications, Mohan submitted fake and altered documents, including fake federal tax filings and altered incorporation documents. For example, Mohan misrepresented to a lender that, in 2019, his company Mahenjo Inc., had dozens of employees and paid millions of dollars in employee wages and payroll taxes. In support of Mahenjo’s loan application, Mohan submitted incorporation documents showing that he incorporated the company in 2018 and filed federal unemployment tax forms for 2019. In truth, Mohan purchased Mahenjo on the Internet in May 2020 and, at time he purchased the company, it had no employees and no business activity. The incorporation documents he submitted to the lender were altered and the federal tax filings he submitted were fake.
The complaint further alleges that Mohan transferred at least $231,000 in fraudulently-obtained loan proceeds to his personal brokerage account for his personal benefit.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Federal Deposit Insurance Corporation – Office of Inspector General. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Friedman of the Western District of Washington are prosecuting the case.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
mohan_complaint.pdfWashington Tech Executive Charged with COVID-Relief Fraud and Money LaunderingRead the Press Release
A Washington tech executive was taken into custody today and charged with fraudulently seeking over $5.5 million in Paycheck Protection Program (PPP) loans and laundering the proceeds, announced Acting Assistant Attorney General Brian C. Rabbitt at of the Justice Department’s Criminal Division and U.S. Attorney Brian T. Moran of the U.S. Attorney’s Office for the Western District of Washington.
Mukund Mohan, 48, of Clyde Hill, Washington, was charged by criminal complaint, unsealed today after he was taken into custody, in the Western District of Washington with one count of wire fraud and one count of money laundering. He is expected to make his initial appearance before U.S. Chief Magistrate Judge Brian A. Tsuchida at 2 p.m. PDT today.
The complaint alleges that Mohan submitted at least eight fraudulent PPP loan applications on behalf of six different companies to federally insured financial institutions. The complaint alleges that, in support of the fraudulent loan applications, Mohan made numerous false and misleading statements about the companies’ respective business operations and payroll expenses.
The complaint also alleges that, in further support of the fraudulent loan applications, Mohan submitted fake and altered documents, including fake federal tax filings and altered incorporation documents. For example, Mohan misrepresented to a lender that, in 2019, his company Mahenjo Inc., had dozens of employees and paid millions of dollars in employee wages and payroll taxes. In support of Mahenjo’s loan application, Mohan submitted incorporation documents showing that he incorporated the company in 2018 and filed federal unemployment tax forms for 2019. In truth, Mohan purchased Mahenjo on the Internet in May 2020 and, at time he purchased the company, it had no employees and no business activity. The incorporation documents he submitted to the lender were altered and the federal tax filings he submitted were fake.
The complaint further alleges that Mohan transferred at least $231,000 in fraudulently-obtained loan proceeds to his personal brokerage account for his personal benefit.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Federal Deposit Insurance Corporation – Office of Inspector General. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Friedman of the Western District of Washington are prosecuting the case.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
DOJ settles False Claims Act allegations against drug testing lab with operations in Tacoma and DenverRead the Press Release
Seattle ‑ The U.S. Department of Justice and Sterling Healthcare Opco, LLC d/b/a/Cordant Health Solutions (Cordant), today settled a civil suit alleging Cordant illegally paid kickbacks to generate urine testing business from government insured consumers. Cordant has agreed to pay various government healthcare programs $11,942,913 to settle the allegations. Twenty percent of the settlement will go to the relator who first filed a qui tam case regarding the conduct in 2015, alerting the government to the misconduct.
According to the settlement, Cordant paid millions of dollars in remuneration to Northwest Physicians Laboratories, LLC (“NWPL”), and Genesis Marketing Group (“Genesis”) in exchange for referrals of urine drug tests paid for by federal healthcare programs in violation of the Anti-Kickback Statute and the False Claims Act. The kickbacks were paid to NWPL for claims that were filed between January 1, 2013, and July 31, 2015, and to Genesis from August 7, 2013, through March 31, 2015.
“This is the largest civil settlement in the illegal kickback scheme involving Northwest Physicians Laboratories,” said First Assistant United States Attorney Tessa G. Gorman. “The False Claims Act and Anti-Kickback Statute work together to make sure medical providers don’t cut side deals that line their pockets, but fail to provide value for taxpayers.”
The settlement specifically applies to two Cordant operated labs: Regional Toxicology Services LLC d/b/a Sterling Reference Laboratory in Tacoma and Rocky Mountain Tox LLC d/b/a Forensic Laboratories in Denver.
In December 2019, NWPL and three executives were indicted for conspiracy to pay and solicit kickbacks in their dealings with various urine testing labs. Trial in the criminal case is set for February 1, 2021.
Payments to local laboratories in exchange for referrals of government insured health care, such as Medicare and TRICARE, violates the Anti-Kickback Statute. Paying remuneration to medical providers or provider-owned laboratories in exchange for referrals encourages providers to order medically unnecessary services. The False Claims Act and the Anti-Kickback Statute function, in part, to discourage such behavior.
“The questionable business practices and unnecessary medical testing revealed in this matter only served to improve financial gain and not the patients' well-being,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “This settlement outcome is but one example of DCIS's on-going commitment to working with its law enforcement partners to protect the integrity of federal healthcare programs, especially the Department of Defense's TRICARE program.”
“The government alleged that the Cordant organization paid millions of dollars to buy referrals at the expense of the nation’s taxpayers. By working with our law enforcement partners, we are able to root out kickback schemes that defraud the government,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will remain vigilant in guarding the integrity of our healthcare programs.”
As part of the settlement, Cordant does not admit any wrongdoing. Cordant agrees to cooperate fully in the government investigation. Cordant also entered into a Corporate Integrity Agreement (CIA) with the Office of Inspector General (OIG). The CIA promotes compliance with the statutes, regulations, program requirements, and written directives of Medicare and all other federal health care programs. Among other things, the CIA requires that for the next five years Cordant must retain an Independent Review Organization to monitor its arrangements with other individuals and entities, and it requires that Cordant routinely report to the OIG.
In addition to the U.S. Attorney’s Office, this matter was investigated by the Department of Health and Human Services Office of the Inspector General (HHS-OIG), the Defense Health Agency of the U.S. Department of Defense, and the FBI. Assistant United States Attorney Kayla Stahman negotiated the settlement for the U.S. Attorney’s Office.
Citizen of the UK sentenced to 42 months in prison for illicit sexual contact with a teen-agerRead the Press Release
Seattle — A citizen of the United Kingdom, who most recently resided in Nevada, was sentencing today in U.S. District Court in Seattle to 42 months in prison for Engaging in Illicit Sexual Conduct in a Foreign Place. JOSEPH LAWSON SCOTT, 35, cultivated a friendship with a woman he met in an online gaming community, and groomed her teen-age daughter for sexual abuse. In April 2018, SCOTT visited the family in Canada and sexually assaulted the girl. At the sentencing hearing, U.S. District Judge James L. Robart called the crime “abhorrent” and “deeply troubling.”
According to records filed in the case, SCOTT was arrested in Nevada where he worked as a bail bondsman in November 2019. He was indicted for four counts of Engaging in Illicit Sexual Conduct in a Foreign Place. SCOTT pleaded guilty to one count of the indictment in January 2020.
SCOTT will likely be deported following his prison term. However, should he be allowed to remain in the United States, the Court ordered 10 years of supervised release to follow his incarceration.
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 Homeland Security Investigations (HSI) and the Royal Canadian Mounted Police (RCMP).
The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Man charged with arson for setting fire to Seattle’s East Police Precinct during Capitol Hill ProtestRead the Press Release
Seattle – A former Seattle resident, who most recently resided in Tacoma, was arrested July 14, 2020, on a federal arson charge for setting fire to the outside of the Seattle Police East Precinct during the occupied protest known as ‘CHOP’, announced U.S. Attorney Brian T. Moran. ISAIAH THOMAS WILLOUGHBY, 35, will make his initial appearance in U.S. District Court in Seattle at 2:30 p.m. today.
“This is the third case we have charged federally for the criminal acts that tainted otherwise peaceful protests. Other crimes remain under investigation and may result in additional federal charges,” said U.S. Attorney Brian T. Moran. “Those who worked to turn protests into riots will not escape accountability for their criminal conduct.”
According to the criminal complaint, in the early morning hours of June 12, 2020, a person in distinctive clothing was captured on surveillance video near debris piled next to the wall of the Seattle Police East Precinct. In the video, the suspect appears to use a small can, similar to a gas can, to pour a liquid on the debris. The suspect steps out of frame, then appears to return with something that he lights on fire and tosses on the debris pile. The pile begins to burn, and the suspect walks away. The fire scorched the side of the building, but was extinguished by those nearby using fire extinguishers, and pulling the flaming debris from the building.
After the Seattle Police Department released pictures of the arson suspect, various people recognized him as WILLOUGHBY and noted that the distinctive sweatshirt came from a clothing line he represents. Relatives of WILLOUGHBY reported to police that he was in Seattle in the Capitol Hill Organized Protest Zone (CHOP) at the time of the fire. Following the fire, WILLOUGHBY took steps to remove posts from his social media accounts that may have linked him to the arson. However, at least some of his FaceBook posts remain, noting his anger at police and his knowledge of the East Precinct building.
WILLOUGHBY was originally arrested and charged in state court. WILLOUGHBY was arrested last night without incident at a Seattle residence.
“We support every American’s right to protest,” said ATF Seattle Field Division Acting Special Agent in Charge Mickey French. “But when someone turns to an act of violence, putting many lives in danger, ATF will work to ensure he or she is held accountable.”
“This defendant’s actions are another example, seen many times around the country, where recent peaceful protests and their message, were overshadowed by violence. In this case, he will have to answer for it,” said Raymond Duda, Special Agent in Charge, FBI Seattle.
The U.S. Attorney’s Office has charged two other defendants with crimes related to the civil unrest in May and June 2020. Margaret Aislinn Channon is charged with five counts of arson for setting police vehicles on fire the evening of May 30, 2020. Devinare Antwan Parker is charged with possession of an improvised destructive device for the improvised firearm he brought to a protest on May 31, 2020.
Arson is punishable by a mandatory minimum 5 years in prison and up to 20 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the FBI and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Altercation in North Seattle leads to federal gun chargeRead the Press Release
Seattle - A repeat offender who got into a fight with a man in North Seattle made his initial appearance today on a federal charge of being a felon in possession of a firearm, announced U.S. Attorney Brian T. Moran. CHRISTOPHER TOLLIVER, 46, was transferred to federal custody today following his arrest by Seattle Police on April 7, 2020.
According to a criminal complaint filed in the case, Seattle Police were called to the scene of a fight in the 9700 block of Woodlawn Avenue North. Witnesses reported seeing two men in an argument, with one holding a baseball bat. Police located the person with the bat, who said items had been stolen from his car the night before, and he identified TOLLIVER as the person who had stolen them. The man had confronted TOLLIVER about the theft and had carried the bat because he believed TOLLIVER carried a shotgun.
TOLLIVER had left the area on a scooter, but was quickly located by police. Nearby they found various bags matching the description of the bags that witnesses had seen in TOLLIVER’s possession at the scene of the altercation, including a backpack with a loaded, sawed-off shotgun inside.
TOLLIVER has multiple prior felony convictions from King County Superior Court, including a 2001 Manslaughter conviction, a 2011 drug conviction, and a 1995 conviction for assault with a deadly weapon. TOLLIVER is therefore prohibited from possessing firearms.
Being a felon in possession of a firearm is punishable by up to ten years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. Project Guardian ensures that federal resources are directed at the criminals posing the greatest threat to our communities. More information about Project Guardian is here.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Tobias Tobler.
tolliver_complaint.pdfCitizen of Kazakhstan, known as “fxmsp,” charged with computer fraud, wire fraud, and conspiracy for hacking hundreds of corporate networks in more than 40 countries worldwideRead the Press Release
Seattle – An indictment was unsealed today in the Western District of Washington charging a citizen of Kazakhstan, ANDREY TURCHIN, a/k/a “fxmsp,” 37, with various federal crimes related to a prolific, financially motivated cybercrime group that hacked the computer networks of a broad array of corporate entities, educational institutions, and governments throughout the world, announced U.S. Attorney Brian T. Moran. The “fxmsp” group established persistent access, or “backdoors,” to victim networks, which they then advertised and sold to other cybercriminals subjecting victims to a variety of cyberattacks and fraud.
“Cybercrime knows no international borders, and stopping these crimes requires cooperation between an array of international partners. I commend Kazakhstan for its assistance in this investigation,” said U.S. Attorney Brian T. Moran. “I am hopeful these critical international partnerships between cybercrime investigators will lead to holding Andrey Turchin accountable in a court of law.”
“Sophisticated cybercrimes can be extremely difficult to investigate. However, by working closely with our international law enforcement partners at the UK's National Crime Agency, along with victims, private sector security researchers and great cooperation from our international law enforcement partners in Kazakhstan, the FBI was able to disrupt Mr. Turchin and his alleged co-conspirator's criminal intrusions,” said Raymond Duda, Special Agent in Charge FBI Seattle Field Office. “This case demonstrates the FBI's commitment to uncover and counter cyber criminals, domestic or abroad.”
According to the five-count indictment and records on file, from at least October 2017 through the date charges were returned by a Grand Jury, in December 2018, TURCHIN and his accomplices perpetrated an ambitious hacking enterprise broadly targeting hundreds of victims across six continents, including more than 30 in the United States. Widely known in hacking circles by the moniker “fxmsp,” TURCHIN employed a collection of hacking techniques and malicious software (malware) to gain and maintain access to victim networks. For instance, he often used specially designed code to scan the Internet for open Remote Desktop Protocol (RDP) ports and conduct brute-force attacks to initially compromise victim networks. Once inside the victim’s system, he moved laterally throughout the network and deployed additional malicious code to locate and steal administrative credentials and establish persistent access. The conspirators often modified antivirus software settings to allow malware to continue to run undetected.
TURCHIN and his co-conspirators then marketed and sold the network access on various underground forums commonly frequented by hackers and cybercriminals, such as Exploit.in, fuckav.ru, Club2Card, Altenen, Blackhacker, Omerta, Sniff3r, and L33t, among others. Prices typically ranged from a couple thousand dollars to, in some cases, over a hundred thousand dollars, depending on the victim and the degree of system access and controls. Many transactions occurred through use of a broker and escrow, which allowed interested buyers to sample the network access for a limited period to test the quality and reliability of the illicit access. As has been publicly reported, the “fxmsp” group has been linked to numerous high-profile data breaches, ransomware attacks, and other cyber intrusions.
TURCHIN is charged with conspiracy to commit computer hacking, two counts of computer fraud and abuse (hacking), conspiracy to commit wire fraud, and access device fraud. Conspiracy to commit computer fraud is punishable by up to five years in prison. The two counts of computer fraud and abuse (hacking) are punishable by up to ten and five years in prison, respectively. Conspiracy to commit wire fraud is punishable by up to 20 years in prison. Access device fraud is 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 FBI Seattle Office, Cyber Crime Task Force, with the cooperation of the United Kingdom’s National Crime Agency (NCA), and with assistance from the U.S. Department of Justice’s Criminal Division’s Office of International Affairs, the FBI Legal Attaché Offices in London and Nur-sultan, and the National Security Committee of the Republic of Kazakhstan (KNB).
The case is being prosecuted by Assistant United States Attorney Steven Masada.
turchin_indictment.pdfSeattle Doctor Charged with Covid Relief FraudRead the Press Release
WASHINGTON – A Seattle doctor was taken into custody today on allegations that he fraudulently sought over $3 million in Paycheck Protection Program (PPP) loans.
Dr. Eric R. Shibley, 41, of Seattle, Washington, was charged by criminal complaint, unsealed today upon his arrest, in the Western District of Washington with one count of wire fraud and one count of bank fraud. He is expected to make his initial appearance before U.S. Magistrate Judge Michelle L. Peterson at 2 p.m. PDT today.
The complaint alleges that Shibley submitted several fraudulent PPP loan applications to federally insured financial institutions, other U.S. Small Business Administration (SBA)-approved lenders, and the SBA in the names of businesses with no actual operations or by misrepresenting the business’s eligibility. In the applications, Shibley allegedly misrepresented the number of employees and payroll expenses in several applications and concealed his own criminal history. To support the fraudulent applications, the complaint alleges that Shibley submitted fake tax documents and the names of purported employees who did not, in fact, work for the businesses for which Shibley claimed they worked. The complaint alleges that Shibley fraudulently sought over $3 million in PPP loans.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. SBA’s Office of Inspector General (OIG), the FBI, the Federal Deposit Insurance Corporation OIG, the U.S. Treasury Inspector General for Tax Administration, IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement, and the Department of Health and Human Services OIG. Trial Attorneys Laura Connelly and Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Werner of the Western District of Washington are prosecuting the case.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
shibley_complaint.pdfSeattle Doctor Charged with COVID Relief FraudRead the Press Release
A Seattle doctor was taken into custody today on allegations that he fraudulently sought over $3 million in Paycheck Protection Program (PPP) loans.
Dr. Eric R. Shibley, 41, of Seattle, Washington, was charged by criminal complaint, unsealed today upon his arrest, in the Western District of Washington with one count of wire fraud and one count of bank fraud. He is expected to make his initial appearance before U.S. Magistrate Judge Michelle L. Peterson at 2 p.m. PDT today.
The complaint alleges that Shibley submitted several fraudulent PPP loan applications to federally insured financial institutions, other U.S. Small Business Administration (SBA)-approved lenders, and the SBA in the names of businesses with no actual operations or by misrepresenting the business’s eligibility. In the applications, Shibley allegedly misrepresented the number of employees and payroll expenses in several applications and concealed his own criminal history. To support the fraudulent applications, the complaint alleges that Shibley submitted fake tax documents and the names of purported employees who did not, in fact, work for the businesses for which Shibley claimed they worked. The complaint alleges that Shibley fraudulently sought over $3 million in PPP loans.
The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. SBA’s Office of Inspector General (OIG), the FBI, the Federal Deposit Insurance Corporation OIG, the U.S. Treasury Inspector General for Tax Administration, IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement, and the Department of Health and Human Services OIG. Trial Attorneys Laura Connelly and Amanda R. Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Werner of the Western District of Washington are prosecuting the case.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Grays Harbor County woman charged with production of child pornographyRead the Press Release
Tacoma – A 34-year-old woman who resides in Hoquiam, Grays Harbor County in Southwest Washington State appeared in U.S. District Court in Tacoma Friday charged with production of child pornography, announced U.S. Attorney Brian T. Moran. TAMARA STANLEY was arrested without incident on June 25, 2020, and remains detained at the Federal Detention Center at SeaTac.
According to the criminal complaint, investigators obtained a judicially authorized search warrant for STANLEY’s email account. A review of the account revealed sexually explicit images STANLEY had created of a young child.
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 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case is being investigated by the FBI with assistance from the Airway Heights and Hoquiam Police Departments.
The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Port Orchard, Washington, woman charged with wire fraud for scheme to embezzle from company she founded and soldRead the Press Release
Tacoma - A 53-year-old Port Orchard, Washington, woman was charged today in U.S. District Court in Tacoma with wire fraud for her scheme to embezzle from a company she started and then sold to a Texas firm, announced U.S. Attorney Brian T. Moran. JULIE SUE DORAN is alleged to have transferred illegally nearly $725,000 from company accounts for her own expenses, including the purchase of property in Aruba. DORAN is scheduled to make her initial appearance in U.S. District Court in Tacoma on July 6, 2020.
According to records filed in the case, DORAN was the major shareholder and CEO of My YearLook, Inc., a start-up business that was designing a web portal to collect, store, and share school yearbooks in digital form. In February 2015, a Texas company, American Achievement Group Holding Corporation (“AAC”) purchased a majority stake in My YearLook by paying approximately $1.3 million into company accounts. The purchase agreement specified that the money was to be used to grow the company. DORAN was retained as the CEO at an annual salary of $160,000.
Within days of the Texas company transferring the money to the My YearLook accounts, DORAN began transferring the money into accounts she controlled and used it for her personal expenses such as payments to a horse training and boarding facility, purchase of a motorcycle and a recreational vehicle, and purchase of a property in Aruba. DORAN altered some of the transfer records to hide the embezzlement from the financial staff at the Texas parent company. The scheme unraveled in November 2015 when the financial team in Texas realized DORAN had multiple bank accounts and had falsified bank statements and records. She was fired in February 2016, and the parent company recovered the last $240,000 in the My YearLook accounts.
Wire fraud is punishable by up to 20 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney André M. Peñalver.
doran_complaint_filed.pdfIssaquah, Washington, man pleads guilty to possession of images of child rape and molestationRead the Press Release
Seattle - A 61-year-old Issaquah, Washington, man pleaded guilty today in U.S. District Court in Seattle to possession of child pornography, announced U.S. Attorney Brian T. Moran. PHILIP B. GILBERT, who was employed in the IT department of the Archdiocese of Seattle, was arrested on state charges in May 2019. He was charged federally in October 2019. GILBERT faces up to 20 years in prison when sentenced by Chief U.S. District Judge Ricardo S. Martinez on September 25, 2020.
According to the plea agreement, in January 2019 an electronic service provider reported GILBERT’s account to the National Center for Missing and Exploited Children (NCMEC) for uploading images of child rape and molestation. After obtaining a court-authorized search warrant, law enforcement served the warrant at GILBERT’s residence and seized electronic devices. The devices contained 256 images of child pornography.
Following GILBERT’s arrest, a victim came forward to law enforcement and reported GILBERT molested her. Contra Costa County, California, has charged the defendant with multiple sexual abuse crimes against a minor for which he faces life in prison. Following his federal sentence he will be transferred to California to resolve those charges.
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 King County Sheriff’s Office in subsequent collaboration with Homeland Security Investigations.
The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
Veteran’s Affairs Respiratory Therapist charged with stealing COVID-19 related medical supplies and selling them on eBayRead the Press Release
Seattle - A 41- year-old Bonney Lake, Washington, man was charged today in U.S. District Court in Seattle with theft of government property for his scheme to profit by stealing and selling respiratory support equipment from the Veterans Affairs Medical Center (VAMC), announced U.S. Attorney Brian T. Moran. GENE WAMSLEY was employed as a Respiratory Therapist at VAMC until he was placed on leave from VAMC on June 9, 2020. WAMSLEY made his initial appearance on the criminal complaint today in Seattle.
“Right now respiratory support equipment is critical in medical care for those suffering with COVID-19 infections. To steal and sell equipment needed to care for our veterans is a shocking betrayal,” said U.S. Attorney Brian T. Moran.
According to the criminal complaint, the investigation began in January 2020 when VAMC reported two bronchoscopes missing from the hospital. A third bronchoscope was reported missing in April 2020. Staff at the VAMC had noticed bronchoscopes listed for sale on eBay from a seller in Bonney Lake, Washington. The investigation linked the sale of three bronchoscopes to WAMSLEY. A further review of eBay records revealed WAMSLEY had sold five ventilators in March and April 2020. Three ventilators were found to be missing from VMAC during the same time period. EBay records reveal a variety of other respiratory support equipment sold by the account linked to WAMSLEY. Administrators at VAMC confirmed the items were used in the respiratory therapy department.
Law enforcement executed a court authorized search warrant at WAMSLEY’s home on June 9, 2020. Medical supplies and eBay sales records were seized in the search.
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.
Theft of government property is punishable by up to ten years in prison.
The case is being investigated by the Veterans Affairs Office of Inspector General (VA-OIG). The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
wamsley_complaint.pdfDOJ and City of Aberdeen, Washington, resolve complaint and investigation regarding Americans with Disabilities Act (ADA)Read the Press Release
Seattle - The U.S. Department of Justice and the City of Aberdeen, Washington, today reached a settlement regarding areas of the city that were found to be non-compliant with the Americans with Disabilities Act (ADA), announced U.S. Attorney Brian T. Moran. The areas of non-compliance came to light in 2019 when an Aberdeen resident who has impaired sight filed a complaint regarding obstacles on city sidewalks. An investigation by the U.S. Attorney’s Office confirmed the obstructions, and the city has agreed to make changes--either removing the obstacles or creating barriers that will allow a person who is visually impaired to be aware of the obstacle by use of a cane.
“I’m pleased the City of Aberdeen is working quickly to make these modifications to ensure that their streets and sidewalks are accessible for all,” said U.S. Attorney Moran. “Our ability to enforce the ADA is greatly served when members of our community alert us to areas of non-compliance. This complainant helped further accessibility by alerting the city and our office to obstacles that may pass unnoticed for sighted residents, but can badly injure those with visual impairments.”
According to the settlement, at five different intersections, the light poles on the streets contain boxes that protrude more than 12 inches into the circulation path at the intersection. Because the boxes stick out so far from the pole, a person using a cane to navigate could walk right into the metal box. The city is placing low-hanging barriers around the boxes so that canes will register the obstacle.
In four other locations, tree limbs overhang city streets below the 80-inch height minimum set by the ADA. The city will be trimming those trees so that the branches will no longer be an obstacle for those who may not be able to see them as they walk down the street.
Under the terms of the settlement, the City of Aberdeen will make all the modifications by August 1, 2020, and will report back to the U.S. Attorney’s Office on the work. If there are no other issues of ADA non-compliance over the next year, the U.S. Attorney’s Office will close the file.
The case was handled by Assistant United States Attorney Christina Fogg.
usao_ada_investigation_settlement_agreement_06.15.2020.pdfBradken Inc. Pays $10.8 Million to Resolve False Claims Act Allegations Involving Substandard Naval PartsRead the Press Release
The Department of Justice announced today that Bradken Inc. (Bradken) has paid $10,896,924 to resolve allegations that Bradken produced and sold substandard steel components for installation on U.S. Navy vessels. The United States alleged that a Bradken employee knowingly falsified test results to conceal the fact that the components did not meet the Navy’s specifications.
“When government contractors supply our armed forces with equipment that fails to meet performance standards, they not only cheat taxpayers, they also potentially put our service members at risk,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Today’s settlement demonstrates our commitment to ensuring the military receives products that enable it to perform its critical mission.”
Bradken, which operates a foundry in Tacoma, Washington, is a Delaware corporation with its principal place of business in Kansas City, Missouri, operating as a wholly owned subsidiary of Bradken Ltd. of Newcastle, Australia. Since the 1980s, Bradken has produced steel parts used by other contractors to build vessels for the United States Navy. The Navy’s contracts expressly required parts made of specified grades of high yield steel.
The settlement announced today resolves allegations that some of the steel Bradken produced did not conform to the Navy’s specifications. The United States alleged that a former Bradken metallurgist altered the results of tests designed to ensure that the parts met the specifications for high yield steel, and Bradken’s internal controls were inadequate to identify the hundreds of falsified test results. The United States further contended that Bradken invoiced shipbuilders for the steel parts as if they were made to the demanding military specification when they were not, causing the shipbuilders to invoice the Navy for defective parts.
“This settlement demonstrates the commitment of the Naval Criminal Investigative Service (NCIS) and our law enforcement partners to hold companies accountable for supplying substandard products, especially products that could impact the Department of the Navy’s (DON) war fighting ability and battlefield superiority, and the safety of our Sailors and Marines,” said Charles P. King, Special Agent in Charge, NCIS Northwest Field Office. “NCIS will continue to work diligently with our law enforcement partners to safeguard DON major acquisition programs. The success of the DON’s war fighting ability is dependent upon a sound and reliable acquisition process.”
“The announced settlement is representative of the law enforcement community's relentless efforts to hold accountable those who engage in unethical business practices that endanger America's warfighters, corrupts the defense procurement process, and inexcusably wastes taxpayer dollars,” said Bryan Denny, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS), Western Field Office. “This case clearly demonstrates that unscrupulous actions by government contractors and subcontractors will be investigated by DCIS and its law enforcement partners.”
This civil settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Washington, DCIS, NCIS, and the Defense Contract Audit Agency.
In addition to the civil settlement, U.S. Attorney Brian T. Moran for the Western District of Washington announced that the United States has filed a criminal charge against Bradken for committing the crime of major fraud against the United States. The United States and Bradken have also entered into a Deferred Prosecution Agreement (DPA) in which Bradken admitted the government’s allegations and agreed to take certain remedial actions. If Bradken complies with all of the DPA’s requirements, the government will dismiss the criminal charge after three years.
Except to the extent admitted as part of the DPA, the claims resolved by the civil settlement are allegations only. There has been no determination of liability in the civil case.
Bradken Inc. pays $10.8 million to settle False Claims Act allegations and enters into deferred prosecution agreementRead the Press Release
Seattle – The Department of Justice announced today that Bradken Inc. (Bradken), a subsidiary of Hitachi Construction Machinery, has paid $10,896,924 to resolve allegations that Bradken produced and sold substandard steel components for installation on U.S. Navy submarines, announced Assistant Attorney General of the Justice Department’s Civil Division Jody H. Hunt and U.S. Attorney Brian T. Moran for the Western District of Washington. Bradken and Bradken’s former lab director have also been charged criminally.
The United States Attorney’s Office filed a criminal complaint charging Elaine Thomas, Bradken’s former Director of Metallurgy, with Major Fraud Against the United States. Thomas will make her initial appearance in federal court in Tacoma on June 30, 2020. Also today, the United States Attorney’s Office for the Western District of Washington filed a criminal information charging Bradken with Major Fraud Against the United States. Under a deferred prosecution agreement, Bradken has accepted responsibility for the offense and has agreed to take remedial measures. If Bradken complies with the agreement, the government will dismiss the charge after three years.
According to the court filings, Bradken is the U.S. Navy’s leading supplier of high-yield steel for naval submarines. Bradken’s Tacoma foundry produces castings that prime contractors use to fabricate submarine hulls. The Navy requires that the steel meets certain standards for strength and toughness to ensure that it does not fail under certain circumstances, such as a collision. The court filings allege that, for 30 years, the Tacoma foundry (which was acquired by Bradken in 2008), produced castings that had failed lab tests and did not meet the Navy’s standards. The filings allege that Elaine Thomas, as Director of Metallurgy, falsified test results to hide the fact that the steel had failed the tests. Thomas falsified results for over 200 productions of steel, which represent a substantial percentage of the castings Bradken produced for the Navy. As part of the deferred prosecution agreement, Bradken admitted these allegations.
The court filings state there is no evidence that Bradken’s management was aware of the fraud until May 2017. At that time, a lab employee discovered that test cards had been altered and that other discrepancies existed in Bradken’s records. While Bradken initially disclosed these findings to the Navy, it then made misleading statements suggesting that the discrepancies were not the result of fraud. Bradken admits that these misleading statements hindered the Navy’s investigation and its efforts to remediate the risks presented by Bradken’s fraud.
The civil settlement resolves allegations that some of the castings Bradken produced did not conform to the Navy’s specifications. In addition to the allegations concerning the altered test results, the United States contended that Bradken invoiced shipbuilders for the parts as if they were made to the demanding military specification when they were not, causing the shipbuilders to invoice the Navy for parts that did not meet specifications.
“Bradken placed the Navy’s sailors and its operations at risk. Further, after Bradken’s management discovered the falsified data, they misled the Navy about the scope and nature of the fraud. Government contractors must not tolerate fraud within their organizations, and they must be fully forthcoming with the government when they discover it,” said U.S. Attorney Brian T. Moran. “The Navy has taken extensive steps to ensure the safe operation of the affected submarines. Those measures will result in increased costs and maintenance. Our agreement with the company is aimed at ensuring they improve their procedures and inform their peer companies about how their systems failed to detect the fraud. We hope such steps will improve the military procurement system.”
Secretary of the Navy Kenneth J. Braithwaite stated that “U.S. Navy suppliers must meet the very highest standards of quality. Our Sailors and Marines depend upon them to provide the very best equipment thereby enabling the Navy to meet world-wide commitments. While the Navy remains dedicated to maintaining and revitalizing our industrial base, we will aggressively investigate and pursue all possible recoveries from suppliers who do not meet standards.”
The deferred prosecution agreement describes substantial steps taken by Bradken to cooperate with the government’s investigation and overhaul to its quality control and compliance procedures. These steps include entering into a compliance agreement with the Navy, creating new positions devoted to oversight of lab testing and tracking, creating an audit and risk committee to oversee the compliance issues, and implementing of a new lab information system with anti-fraud controls. The company will also publish a detailed account of its missteps in the Casteel Reporter, a trade publication, to educate other government contractors. In addition, Bradken has made changes to the management team in place at the Tacoma Foundry. If Bradken complies with all of the deferred prosecution agreement’s requirements, the government will dismiss the charge after three years.
Bradken is a Delaware corporation with its principal place of business in Kansas City, Missouri, operating as a wholly owned subsidiary of Bradken Ltd. of Newcastle, Australia, which is a subsidiary of Hitachi Construction Machinery. Elaine Thomas, 66, is a resident of Auburn, Washington.
The charges contained in the complaint against Thomas 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.
“This settlement demonstrates the commitment of the Naval Criminal Investigative Service (NCIS) and our law enforcement partners to hold companies accountable for supplying substandard products, especially products that could impact the Department of Navy (DON) war fighting ability, battlefield superiority and the safety of our Sailors and Marines. NCIS will continue to work diligently with our law enforcement partners to safeguard DON major acquisition programs. The success of the DON war fighting ability is dependent upon a sound and reliable acquisition process” said Charles P. King, Special Agent in Charge, NCIS Northwest Field Office.
“The announced settlement is representative of the law enforcement community's relentless efforts to hold accountable those who engage in unethical business practices that endanger America's warfighters, corrupts the defense procurement process, and inexcusably wastes taxpayer dollars,” said Bryan Denny, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS), Western Field Office. “This case clearly demonstrates that any unscrupulous actions by government contractors and subcontractors will be reviewed and, if appropriate, vigorously investigated by DCIS and its law enforcement partners.”
The civil settlement, deferred prosecution agreement with Bradken, and pending criminal case against Thomas are the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Washington, the Department of Defense’s Defense Criminal Investigative Service, Naval Criminal Investigative Service, and the Defense Contract Audit Agency.
The cases are being handled by Assistant United States Attorneys Kayla Stahman, Seth Wilkinson, and David Reese Jennings for the U.S. Attorney’s Office, Western District of Washington, and Art Coulter of DOJ’s Civil Division Commercial Litigation Branch.
bradken_information.pdf bradken_signed_civil_settlement.pdf bradken_dpa.pdf thomas_elaine_m_complaint.pdfSeattle man pleads guilty to illegal possession of a dozen firearms including assault riflesRead the Press Release
Seattle – A 67-year-old Seattle man pleaded guilty today in U.S. District Court in Seattle to being a felon in possession of a firearm, announced U.S. Attorney Brian T. Moran. PARK QUAN was arrested July 29, 2019, after FBI agents investigating one of his roommates in connection with a data theft served a search warrant on his home and discovered a cache of weapons. QUAN has remained in custody since his arrest. Prosecutors and defense attorneys will recommend a four-year prison sentenced when QUAN is sentenced by U.S. District Judge John C. Coughenour on September 8, 2020.
According to records filed in the case, agents investigating the data theft were sweeping the residence for safety when they observed numerous firearms in a bedroom used by QUAN. Agents applied for and got a second judicially-authorized search warrant and began collecting the firearms. The cache of weapons included four semi-automatic handguns, six semi-automatic rifles, two of them assault rifles, and two additional rifles. At least one of the semi-automatic rifles was loaded. Law enforcement also seized a variety of ammunition, high-capacity magazines, flare launchers, some containers of explosive powder, and two bump stocks, which QUAN claimed to have purchased before the devices were outlawed.
QUAN has a 1983 federal conviction in Washington for being a felon in possession of explosives and a 1991 federal conviction in Texas for possessing an unregistered machine gun. QUAN also has a military court-martial conviction for soliciting the theft of military weapons. Due to those convictions, QUAN is prohibited from possessing firearms.
The case is being investigated by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorneys Steven Masada and Andrew Friedman.
DOJ files statement of interest in Seattle Housing Authority lawsuit involving Fair Housing ActRead the Press Release
Seattle—The U.S. Attorney’s Office Western District of Washington and the U.S. Department Justice today filed a statement of interest in Roque v. Seattle Housing Authority (SHA) as part of DOJ’s work to safeguard the civil rights of all Americans, announced U.S. Attorney Brian T. Moran. The suit arises out of the efforts of a resident of Raven Terrace in the Yesler Terrace area of Seattle to obtain parking garage access for his caregiver. The plaintiff, Tony Roque, has quadriplegia and requires caregiver assistance for his daily activities. Mr. Roque filed suit against the Seattle Housing Authority after it refused his request to modify its policies and allow his caregiver parking access in the building’s garage.
“With this filing DOJ is making clear what we believe to be the state of the law – the Fair Housing Act requires modifications to housing complex policies when modifications are necessary to afford a resident with a disability with equal access to the enjoyment of his or her home. That is true even when the accommodation relates to caregiver access, ” said U.S. Attorney Moran. “Safeguarding the rights of people with disabilities is even more important during this period of COVID-19, when the isolation and risks facing many people with disabilities are heightened.”
According to records filed in the case and the government’s statement of interest, Mr. Roque alleges that he needs caregiver assistance for the necessities of daily life – eating, dressing, administering medication, etc. Due to covid-19, the number of caregivers accessing his apartment has been reduced to one. That caregiver had been parking in the garage of Raven Terrace from 2018 until early March 2020 so that she could deliver Mr. Roque’s groceries and medical supplies and transport him to medical appointments, etc. On March 4, 2020, the Housing Authority had the caregiver’s car towed saying that since she was not a resident nor an employee she was not allowed to park in the building. When Mr. Roque requested a parking pass for the caregiver, his request was denied. The Seattle Housing Authority claimed that since the caregiver is not disabled, and the parking space was for the caregiver, it is not required to grant the accommodation.
In its statement of interest, DOJ states that under the FHA, a parking space for a caregiver of a resident with a disability may be a “necessary” accommodation under certain circumstances. Further under the ADA, a reasonable accommodation may not be denied solely because it would provide Mr. Roque with a benefit not available to other residents.
U.S. District Judge Richard A. Jones issued a temporary restraining order on May 4, 2020, prohibiting the Seattle Housing Authority from towing the caregiver’s car. Judge Jones can make the order permanent, depending on the decision made by the Seattle Housing Authority on Mr. Roque’s appeal.
The statement of interest was filed by Assistant United States Attorney Christina Fogg, the Civil Rights Coordinator in the Western District of Washington, and by Trial Attorney Max Lapertosa of the DOJ Civil Rights Division.
statement_of_interest_of_usa_roque_v_seattle_hous_auth.pdfThe Department of Justice files Statement of Interest in Support of Equal Treatment for Washington State Church based on recent Supreme Court RulingRead the Press Release
WASHINGTON - The Department of Justice today filed a statement of interest in a Washington State federal court supporting the First Amendment religious freedom claims of a Pierce County church, explaining how a recent Supreme Court decision, South Bay United Pentecostal Church v. Newsom (May 29, 2020), supports the church’s claim.
The statement of interest explains that Washington’s preferable treatment of secular gatherings such as restaurants, taverns, and outdoor protests compared to the restrictions imposed on indoor and outdoor religious services triggers heightened scrutiny under the Constitution.
The statement of interest is part of Attorney General William P. Barr's April 27, 2020 initiative directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
“The protections enshrined in the United States Constitution and the Bill of Rights are enduring, and we must be vigilant in making sure that governments do not unlawfully infringe upon the rights that they protect. First among these rights is the First Amendment’s guarantee that no government in this country may prohibit the free exercise of religion,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Constitution’s protections are especially critical during times of crisis. The United States must remain committed at all times to the right of all people to worship and pray and follow the dictates of their conscience in a manner that respects others and the public health and safety. By doing so, our nation honors the legacy of countless patriots who worked, struggled, fought, suffered, and died to protect our freedom. The Department of Justice will continue its efforts to secure the Constitutional rights of all people in this nation.”
“The department will continue to be vigilant in protecting religious liberty when states and localities exceed constitutional limits,” said Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, who, with Assistant Attorney General Dreiband, is overseeing the Justice Department’s effort to monitor state and local polices relating to the COVID-19 pandemic.
“At a time of uncertainty and anguish in our community, the ability to gather to express one’s faith and seek comfort is a fundamental right,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “Just as we have seen peaceful protestors gathered together and exercising their First Amendment rights, so too must we protect the right of religious institutions such as churches, mosques and temples to gather together and express their faith.”
Two weeks ago, the U.S. Supreme Court issued a ruling regarding California’s reopening plan in South Bay United Pentecostal Church v. Newsom (May 29, 2020). By a 5-4 vote, the Supreme Court declined to temporarily block California’s rules. In their opinions explaining the result, however, each Justice who wrote agreed that even during the COVID-19 pandemic the Constitution requires states to treat houses of worship equally with comparable secular businesses. Chief Justice Roberts concluded that, on the facts of the California case, California “exempts or treats more leniently only dissimilar activities, such as operating grocery stores, banks, and laundromats, in which people neither congregate in large groups nor remain in close proximity for extended periods.” He also noted that the “precise question of when restrictions on particular social activities should be lifted during the pandemic is dynamic and fact-intensive matter subject to reasonable disagreement,” which, when within constitutional bounds is entrusted to the “politically accountable officials of the states.” Justices Kavanaugh, Thomas and Gorsuch would have “grant[ed] the Church’s requested [relief] because California’s latest safety guidelines discriminate against places of worship and in favor of comparable secular businesses.”
In its statement of interest filed today in Haborview Fellowship v. Inslee, the United States explains that the State of Washington “exempts or treats more leniently” precisely the types of activities that Chief Justice Roberts said are appropriate comparators for religious gatherings—specifically, activities that involve people “congregat[ing] in large groups [ ]or remain[ing] in close proximity for extended period,” such as restaurants, taverns, and protests. Because those activities are permitted with social distancing and hygiene measures, the church must be treated the same unless the state can persuasively show that there are material differences between gathering for an extended period in a restaurant or tavern and a house of worship, or between an outdoor protest and an outdoor worship service.
Washington currently permits various restaurants and taverns to operate at 50% of capacity with no total cap on number of patrons, so long as they observe 6-foot social distancing and various hygiene measures. Places of worship, however, are limited to a hard cap of 50 people or 25% of capacity, whichever is less. Outdoor worship services are limited to 100 people. As detailed in the statement of interest, Governor Inslee has placed no limit on total numbers for outdoor protests, only requesting that participants “be safe for themselves and the people around them” by “wearing a mask and . . . distancing as much as you can.”
statement_of_interest.pdfThe Department of Justice Files Statement of Interest in Support of Equal Treatment of Washington State Church Based on Recent Supreme Court RulingRead the Press Release
The Department of Justice today filed a statement of interest in a Washington State federal court supporting the First Amendment religious freedom claims of a Pierce County church, explaining how a recent Supreme Court decision, South Bay United Pentecostal Church v. Newsom (May 29, 2020), supports the church’s claim.
The statement of interest explains that Washington’s preferable treatment of secular gatherings such as restaurants, taverns, and outdoor protests compared to the restrictions imposed on indoor and outdoor religious services triggers heightened scrutiny under the Constitution.
The statement of interest is part of Attorney General William P. Barr's April 27, 2020 initiative directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
“The protections enshrined in the United States Constitution and the Bill of Rights are enduring, and we must be vigilant in making sure that governments do not unlawfully infringe upon the rights that they protect. First among these rights is the First Amendment’s guarantee that no government in this country may prohibit the free exercise of religion,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Constitution’s protections are especially critical during times of crisis. The United States must remain committed at all times to the right of all people to worship and pray and follow the dictates of their conscience in a manner that respects others and the public health and safety. By doing so, our nation honors the legacy of countless patriots who worked, struggled, fought, suffered, and died to protect our freedom. The Department of Justice will continue its efforts to secure the Constitutional rights of all people in this nation.”
“The department will continue to be vigilant in protecting religious liberty when states and localities exceed constitutional limits,” said Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, who, with Assistant Attorney General Dreiband, is overseeing the Justice Department’s effort to monitor state and local polices relating to the COVID-19 pandemic.
“At a time of uncertainty and anguish in our community, the ability to gather to express one’s faith and seek comfort is a fundamental right,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “Just as we have seen peaceful protestors gathered together and exercising their First Amendment rights, so too must we protect the right of religious institutions such as churches, mosques and temples to gather together and express their faith.”
Two weeks ago, the U.S. Supreme Court issued a ruling regarding California’s reopening plan in South Bay United Pentecostal Church v. Newsom (May 29, 2020). By a 5-4 vote, the Supreme Court declined to temporarily block California’s rules. In their opinions explaining the result, however, each Justice who wrote agreed that even during the COVID-19 pandemic the Constitution requires states to treat houses of worship equally with comparable secular businesses. Chief Justice Roberts concluded that, on the facts of the California case, California “exempts or treats more leniently only dissimilar activities, such as operating grocery stores, banks, and laundromats, in which people neither congregate in large groups nor remain in close proximity for extended periods.” He also noted that the “precise question of when restrictions on particular social activities should be lifted during the pandemic is dynamic and fact-intensive matter subject to reasonable disagreement,” which, when within constitutional bounds is entrusted to the “politically accountable officials of the states.” Justices Kavanaugh, Thomas and Gorsuch would have “grant[ed] the Church’s requested [relief] because California’s latest safety guidelines discriminate against places of worship and in favor of comparable secular businesses.”
In its statement of interest filed today in Haborview Fellowship v. Inslee, the United States explains that the State of Washington “exempts or treats more leniently” precisely the types of activities that Chief Justice Roberts said are appropriate comparators for religious gatherings—specifically, activities that involve people “congregat[ing] in large groups [ ]or remain[ing] in close proximity for extended period,” such as restaurants, taverns, and protests. Because those activities are permitted with social distancing and hygiene measures, the church must be treated the same unless the state can persuasively show that there are material differences between gathering for an extended period in a restaurant or tavern and a house of worship, or between an outdoor protest and an outdoor worship service.
Washington currently permits various restaurants and taverns to operate at 50% of capacity with no total cap on number of patrons, so long as they observe 6-foot social distancing and various hygiene measures. Places of worship, however, are limited to a hard cap of 50 people or 25% of capacity, whichever is less. Outdoor worship services are limited to 100 people. As detailed in the statement of interest, Governor Inslee has placed no limit on total numbers for outdoor protests, only requesting that participants “be safe for themselves and the people around them” by “wearing a mask and . . . distancing as much as you can.”
Tacoma, Washington, woman arrested for allegedly setting five police vehicles on fire during Seattle protestRead the Press Release
Seattle - A 25-year-old Tacoma, Washington, resident was arrested this morning on five federal counts of arson for burning five Seattle P0lice vehicles parked in the area of Sixth and Pine in downtown Seattle on Saturday, May 30, 2020, announced U.S. Attorney Brian T. Moran. MARGARET AISLINN CHANNON was taken into custody without incident at her Tacoma residence today. She will appear on the criminal complaint in U.S. District Court in Seattle at 1:00 p.m. tomorrow, June 12, 2020.
“This defendant was captured by multiple cameras using an accelerant, lit like a blowtorch, to start fires in five vehicles -- putting the public at risk and creating the very real possibility of a structure fire amidst the throng of people protesting downtown,” said U.S. Attorney Moran. “I commend the painstaking work of law enforcement using a variety of images to identify the defendant and locate her so she can be held accountable.”
According to the criminal complaint, investigators from the FBI, ATF, and Seattle Police Department reviewed various videos taken of the Saturday arsons, as well as videos taken at a protest Friday evening. CHANNON appears in videos from both days, and tattoos that she has on her hands and arms are clearly visible. Some of the tattoos link CHANNON to a missing person report in Texas in 2019. Ultimately, investigators uncovered CHANNON’s various social media accounts which helped confirm her identity. Investigators determined she had listed addresses first in Seattle and later in Tacoma.
Law enforcement executed a search warrant at CHANNON’s Tacoma residence and confirmed the distinctive tattoos. They also seized clothing and accessories that appear in some of the videos from the arsons.
“The number one mission of the FBI is to protect the American people and uphold the Constitution of the United States. The First Amendment guarantees Americans the right to express their opinions and peacefully protest. What it does not provide is the right to invoke violence under the guise of free speech,” said FBI Special Agent in Charge Raymond Duda of the Seattle Field Office. “In cooperation with our partners, we will work tirelessly to identify, investigate, and prevent individuals who are inciting violence, and coordinate with the United States Attorney's Office to address any federal violations.”
“ATF is the Federal agency primarily responsible for administering and enforcing the criminal and regulatory provisions of the Federal laws pertaining to arson. Arson is a crime of violence,” said ATF Acting Special Agent in Charge Jonathan Blais. “While we stand by every American’s Constitutional right to protest, when someone turns to violence, we will work tirelessly to investigate their crimes. We are working shoulder-to-shoulder with our local, state and federal partners to bring those responsible for actions such as this to justice.”
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Arson is punishable by up to ten years in prison.
The case is being investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Former North Carolina man charged with possessing destructive device for bringing improvised firearm to protestRead the Press Release
Seattle- A former North Carolina man who struck a Seattle Police Officer with a large can and threatened to kill all police, is now charged federally with possession of a destructive device for the improvised gun he brought to a Seattle protest, announced U.S. Attorney Brian T. Moran. DEVINARE ANTWAN PARKER, 25, was arrested Sunday evening, May 31, 2020, after he threw a 16-ounce can of beer through the window of a Seattle Police car, striking an officer in the face. When placed under arrest, PARKER possessed an improvised firearm capable of firing shotgun shells.
“This defendant came to a protest armed with a device that could have proved fatal not only to police, but to peaceful protestors in the area,” said U.S. Attorney Moran. “We will use our federal authority where appropriate to remove such threats from our community, so that people can safely exercise their constitutional right to protest peacefully and honor the memory of George Floyd.”
PARKER is in state custody and will be scheduled for his first appearance in federal court when the state charges are resolved.
According to the criminal complaint, 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 when PARKER threw a 16-ounce can of Bud Light Ice through the passenger window striking one of the officers in the face. PARKER was placed under arrest for third degree assault. When PARKER 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 carried several shotgun shells that fit the device.
As he was being arrested PARKER allegedly shouted at the officers that he brought the weapon to the protest to shoot and kill police officers.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Possession of a destructive device is punishable by up to ten years in prison.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives.
The case is being prosecuted by Assistant United States Attorney Erin H. Becker.
Two Whatcom County men charged in fentanyl drug distribution schemeRead the Press Release
Seattle - Two Bellingham, Washington, residents made their initial appearance today in U.S. District Court in Seattle following their arrest on May 28, 2020, for distributing fake oxycodone tablets tainted with fentanyl, announced U.S. Attorney Brian T. Moran. TROY J. KLANDER, 38, and ZACHARY D. SALAS, 38, are charged with conspiracy to possess fentanyl with intent to distribute. Both remain in custody following a five-month investigation of their drug trafficking activities.
“These counterfeit oxycodone pills, laced with unknown amounts of fentanyl, have proven deadly in our communities,” said U.S. Attorney Moran. “I commend the DEA agents and local law enforcement officers who continued this investigation despite the challenges presented by the COVID-19 lockdown.”
According to the criminal complaint filed in the case, law enforcement used confidential sources and undercover officers to purchase the fentanyl laced pills from KLANDER and to identify SALAS as a source of supply. On May 28, 2020, a Drug Enforcement Administration-led task force executed search warrants at six locations in Whatcom County. At one location, SALAS refused to co-operate with law enforcement resulting in a one-hour standoff. The standoff ended peacefully, and SALAS was taken into custody.
“Even with the hurdles presented by the COVID-19 crisis, we were able to investigate and safely remove these suppliers of dangerous counterfeit pills,” said DEA Special Agent in Charge Keith Weis. “These pills laced with fentanyl can be highly toxic when handled and are indiscriminately killing tens of thousands of people yearly in the U.S. The identification and disruption of those involved in this illicit distribution chain remains a high priority for law enforcement at every level.”
Over the course of the investigation law enforcement seized 500 counterfeit oxycodone pills tainted with fentanyl, cocaine, heroin, and crystal methamphetamine, as well as a stolen gun and more than $100,000 in cash.
Conspiracy to distribute fentanyl is punishable by up to 20 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The investigation is being led by DEA with significant assistance from the Whatcom County Sheriff’s Office Gang and Drug Task Force. The searches yesterday involved the DEA Seattle Special Response Team (SRT), Whatcom County Sheriff’s Office SWAT, Bellingham Police Department SWAT, Washington State Patrol SWAT, Homeland Security Investigation, Customs and Border Protection Air and Marine Unit, Skagit County Interlocal Drug Enforcement Unit (SCIDEU), and Snohomish Regional Gang Drug Task Force.
The case is being prosecuted by Assistant United States Attorney Seungjae Lee.
us_v._klander_salas.pdfSoftware Engineer Charged in Washington with Covid-Relief FraudRead the Press Release
WASHINGTON – A software engineer was charged in a complaint unsealed today for allegedly filing fraudulent bank loan applications seeking more than $1 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Baoke Zhang, 35, of Issaquah, Washington, was charged in a federal criminal complaint filed in the Western District of Washington with wire fraud and bank fraud.
“The defendant allegedly submitted false documents in a brazen scheme to acquire over 1.5 million dollars in loan funds made available for legitimate businesses adversely affected by COVID-19,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to identify and bring to justice those who commit fraud on CARES Act programs.”
“This defendant tried more than once to defraud the Paycheck Protection Program (PPP) – a program designed to keep people working,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “I am pleased that the systems designed to detect and deny fraudulent payments caught his scheme before federal funds went out the door.”
“SBA OIG applauds due diligence by SBA’s lending partners to maintain the integrity of the lending programs,” said Special Agent in Charge Weston King of the SBA Office of Inspector General (SBA OIG) Western Region. “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office in partnership with our law enforcement counterparts. I want to thank the Justice Department and our law enforcement partners for their dedication and pursuit of justice.”
“In the midst of this pandemic, anyone who attempts to engage in illegal activity will be aggressively pursued,” stated J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “Our mission at TIGTA is to protect the integrity of the nation’s system of tax administration. I appreciate the assistance of the Small Business Administration Office of Inspector General, the Department of Justice, and other law enforcements partners in this effort.”
“This is an example of someone who was attempting to take advantage of a program to help Americans during one the most difficult times in recent memory,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office. “We are proud to partner with SBA and TIGTA in ensuring funds provided for programs such as PPP, make it to the people who need it the most.”
Zhang allegedly sought over a million dollars in forgivable loans guaranteed by the SBA from multiple banks by claiming fictitious payroll expenses associated with fictitious information technology companies that he created. Zhang allegedly provided fraudulent documents to two different lenders in support of applications for loans guaranteed by the SBA for COVID-19 relief through the PPP. In total, Zhang sought forgivable loans in the amount of $1,525,000.
Allegedly, Zhang provided lenders with fraudulent IRS documentation purporting to show federal tax withholdings for a sole proprietorship in his name for 25 employees. As part of an effort to show that this business had been operating for several quarters, Zhang allegedly submitted to two lenders documentation purporting to show that, on April 3, 2017, the IRS had assigned an Employer Identification Number (EIN) to his sole proprietorship. In fact, the IRS assigned the EIN on April 3, 2020, only a week before Zhang submitted his application to the lender. Zhang allegedly also provided fraudulent IRS documentation purporting to show federal tax withholdings for 20 employees for a limited liability company he created.
Zhang allegedly provided falsified documentation purporting to show that an EIN for the second company had been assigned in 2018. In fact, the IRS assigned the EIN on April 21, 2020, just two days before Zhang submitted an application for the company to the lender. Zhang also allegedly provided the lender with a bank statement purporting to show that the company had disbursed payroll payments in December 2019. In fact, Zhang opened that account in April 2020.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Amanda Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Werner for the Western District of Washington are prosecuting the case.
The Justice Department acknowledges and thanks the TIGTA, the SBA OIG and the FBI for their efforts investigating this mater.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Software Engineer Charged in Washington with COVID-Relief FraudRead the Press Release
A software engineer was charged in a complaint unsealed today for allegedly filing fraudulent bank loan applications seeking more than $1 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Baoke Zhang, 35, of Issaquah, Washington, was charged in a federal criminal complaint filed in the Western District of Washington with wire fraud and bank fraud.
“The defendant allegedly submitted false documents in a brazen scheme to acquire over 1.5 million dollars in loan funds made available for legitimate businesses adversely affected by COVID-19,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to identify and bring to justice those who commit fraud on CARES Act programs.”
“This defendant tried more than once to defraud the Paycheck Protection Program (PPP) – a program designed to keep people working,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “I am pleased that the systems designed to detect and deny fraudulent payments caught his scheme before federal funds went out the door.”
“SBA OIG applauds due diligence by SBA’s lending partners to maintain the integrity of the lending programs,” said Special Agent in Charge Weston King of the SBA Office of Inspector General (SBA OIG) Western Region. “Providing false statements to gain access to SBA’s programs will be aggressively investigated by our office in partnership with our law enforcement counterparts. I want to thank the Justice Department and our law enforcement partners for their dedication and pursuit of justice.”
“In the midst of this pandemic, anyone who attempts to engage in illegal activity will be aggressively pursued,” stated J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “Our mission at TIGTA is to protect the integrity of the nation’s system of tax administration. I appreciate the assistance of the Small Business Administration Office of Inspector General, the Department of Justice, and other law enforcements partners in this effort.”
“This is an example of someone who was attempting to take advantage of a program to help Americans during one the most difficult times in recent memory,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office. “We are proud to partner with SBA and TIGTA in ensuring funds provided for programs such as PPP, make it to the people who need it the most.”
Zhang allegedly sought over a million dollars in forgivable loans guaranteed by the SBA from multiple banks by claiming fictitious payroll expenses associated with fictitious information technology companies that he created. Zhang allegedly provided fraudulent documents to two different lenders in support of applications for loans guaranteed by the SBA for COVID-19 relief through the PPP. In total, Zhang sought forgivable loans in the amount of $1,525,000.
Allegedly, Zhang provided lenders with fraudulent IRS documentation purporting to show federal tax withholdings for a sole proprietorship in his name for 25 employees. As part of an effort to show that this business had been operating for several quarters, Zhang allegedly submitted to two lenders documentation purporting to show that, on April 3, 2017, the IRS had assigned an Employer Identification Number (EIN) to his sole proprietorship. In fact, the IRS assigned the EIN on April 3, 2020, only a week before Zhang submitted his application to the lender. Zhang allegedly also provided fraudulent IRS documentation purporting to show federal tax withholdings for 20 employees for a limited liability company he created.
Zhang allegedly provided falsified documentation purporting to show that an EIN for the second company had been assigned in 2018. In fact, the IRS assigned the EIN on April 21, 2020, just two days before Zhang submitted an application for the company to the lender. Zhang also allegedly provided the lender with a bank statement purporting to show that the company had disbursed payroll payments in December 2019. In fact, Zhang opened that account in April 2020.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Amanda Vaughn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Werner for the Western District of Washington are prosecuting the case.
The Justice Department acknowledges and thanks the TIGTA, the SBA OIG and the FBI for their efforts investigating this matter.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two South King County men charged with drug trafficking for selling deadly fentanyl to Navy sailorRead the Press Release
Tacoma - Two South King County men have been charged with federal drug crimes in connection with their trafficking in counterfeit pills laced with deadly fentanyl, announced U.S. Attorney Brian T. Moran. CHASE FRIEDRICH, 28, was arrested April 21, 2020, at his Des Moines, Washington, apartment. His drug supplier, RAOUL V. NORMANDIA, JR., 28, was arrested April 24, 2020, near his Federal Way, Washington, residence. FRIEDRICH sold counterfeit Percocet pills to a Navy sailor – that sailor provided them to another sailor who died of a drug overdose. The pills are presumed to have been tainted with deadly fentanyl.
The investigation began April 18, 2020, when a Navy sailor was found dead in his workspace aboard a Navy ship. In his pocket were two counterfeit pills presumed to be laced with fentanyl. The Naval Criminal Investigative Services (NCIS) were able to identify the sailor who provided the pills to the victim and identified FRIEDRICH as his supplier. A search of FRIEDRICH’s apartment revealed cocaine, a handgun, and a bag of approximately 100 counterfeit pills.
Investigators were able to trace the pills and cocaine to NORMANDIA. He was arrested a few blocks from his home. In the vehicle was cocaine. During a court‑authorized search of NORMANDIA’s residence, law enforcement recovered firearms, ammunition, body armor, narcotics, and various signs of the drug trade, including scales, baggies, heat sealers, Moneygram receipts, and twenty cell phones.
Both men made their initial appearances and are being held on a federal charge of possession of controlled substances with intent to distribute.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by NCIS and the Kitsap County Sheriff’s Office as a part of the West Sound Narcotics Enforcement Team (WestNET) and is being prosecuted by Assistant United States Attorney Lyndsie Schmalz.
U.S. Attorney Brian T. Moran recognizes Police WeekRead the Press Release
Seattle— In honor of National Police Week, U.S. Attorney Brian T. Moran is recognizing the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.
“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”
“During these turbulent times, I hope we will all pause and reflect for a moment on the dedication and sacrifice of our law enforcement officers who risk danger every day – not just from bad actors, but now from an invisible virus,” said U.S. Attorney Moran. “In 2019, four Washington State law enforcement officers were killed in the line of duty: Kittitas County Sheriff’s Deputy Ryan Shane Thompson; Cowlitz County Sheriff’s Deputy Justin Richard DeRosier; Lynden Police Chief Michael Knapp, and Pierce County Deputy Sheriff Cooper Andrew Dyson. We remember them and their families who made the ultimate sacrifice to keep the rest of us safe.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year, the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.
Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019, including the 4 (for consistency with the use of numerals “89”) officers here in Washington State.
Deputy Ryan Shane Thompson (Kittitas County) was killed in a shootout on March 19, 2019. Deputy Justin Richard DeRosier (Cowlitz County) was shot and killed April 14, 2019; Lynden Police Chief Michael Knapp was struck and killed by a car on November 16, 2019, while crossing the street heading to a City Council meeting. Deputy Cooper Andrew Dyson (Pierce County) was killed in a car accident December 21, 2019, while answering an emergency call.
Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.
The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8 p.m. (EDT). To register to view this free online event, please visit www.LawMemorial.org/webcast.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
DOJ settles False Claims Act allegations with Seattle physician, his pain clinics, and his drug-testing labRead the Press Release
Seattle - The U.S. Department of Justice and the Washington State Attorney General today settled a False Claims Act investigation involving Seattle Pain Center, Northwest Analytics, and owner/physician Dr. Frank Danger Li, announced First Assistant U.S. Attorney Tessa M. Gorman. Dr. Li agreed to pay $2.85 million to state and federal authorities to settle allegations his companies billed government entities for medically unnecessary urine drug tests. Dr. Li’s seven pain clinics closed in July 2016 when the Washington State Medical Quality Assurance Commission suspended his medical license for improperly monitoring prescriptions of powerful opioids. Today’s settlement is a civil resolution unrelated to any criminal investigation or any action by state health regulators.
“Prescribing massive quantities of addictive opioids fed a crisis that continues to grip our community,” said First Assistant U.S. Attorney Gorman. “This billing for unnecessary urine tests is a way Dr. Li and his clinics profited on the pain of others. It is appropriate that we return these dollars to the government entities that were defrauded.”
“Our investigation helped stop Dr. Li and the providers he supervised from continuing to prescribe dangerous and excessive amounts of opioids,” Ferguson said. “Now we’re reclaiming more than one million Medicaid dollars for the unnecessary drug tests he ordered for his opioid prescription practice. These recouped dollars will cover medical costs for vulnerable Washingtonians, as it was intended.”
According to the settlement agreement, in addition to his pain clinics, Dr. Li owned drug-testing labs in Seattle and Everett. Northwest Analytics did urine drug testing for Li’s clinics. In July 2013, Li instituted a policy that, in nearly every instance, each patient being treated at Seattle Pain Centers had to have a full urine drug test panel every time they were seen by a provider. This policy resulted in thousands of medically unnecessary tests. The testing protocol did not follow state standards which recommended random testing of up to four times per year.
“Physicians have a responsibility to provide appropriate medical care and to bill federal health care programs properly. When Dr. Li – who our agency excluded from participating in Medicare and Medicaid programs – billed for medically unnecessary lab tests, our investigators acted decisively to hold him accountable,” said Special Agent in Charge Steven J. Ryan of HHS-OIG. “Physicians tempted to engage in such fraudulent activities should remind themselves of their professional obligations and the consequences of flouting them.”
“Performing needless medical services, especially those motivated by financial gain and not medical necessity, drains resources from legitimate patient care,” said Bryan Denny, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and our investigative partners will fully investigate and bring to justice those who deprive the Department of Defense of limited resources needed for the healthcare of our military, veterans, and their families.”
The settlement funds are divided as follows: restitution to Medicare of $1,590,265; restitution to TriCare of $123,000; restitution to the Railroad Retirement Board of $2,672, and restitution to Medicaid of $1,134,151 ($453,796 federal funds and $680,354 state funds). The settlement agreement details how the funds are to be paid over five years and various ways that the government claims are secured. The settlement amounts are based in part on Dr. Li’s ability to pay.
Dr. Li does not admit any wrongdoing as part of this settlement.
The investigation was coordinated by the Health and Human Services Office of Inspector General (HHS-OIG).
The matter was handled by Assistant United States Attorney Kayla Stahman as part of the U.S. Attorney’s Office’ Affirmative Civil Enforcement Unit. The Washington State Attorney General’s Medicaid Fraud Unit participated in the investigation and was represented in the settlement by Senior Counsel Carrie L. Bashaw.
2020.04.06_final_dr_li_settlement_agreement_-_signed_by_all_parties.pdfFormer Naturopath charged criminally for trafficking in misbranded drugs claiming they could prevent COVID-19Read the Press Release
Tacoma - A former Port Angeles, Washington, naturopathic physician was charged today with a federal felony related to his attempts to promote a misbranded drug as a prevention for COVID-19, announced U.S. Attorney Brian T. Moran. RICHARD MARSCHALL, 67, is scheduled to make his initial appearance via teleconference in U.S. District Court in Tacoma on May 12, 2020, on a charge of Introduction of Misbranded Drugs into Interstate Commerce.
“At a time when scientists are scrambling to identify COVID-19 treatments and vaccines, it is unconscionable and cruel to take people’s money for false hope and promises of a cure,” said U.S. Attorney Brian T. Moran. “This defendant knew better than to be peddling misbranded drugs. Fortunately, the community quickly notified law enforcement when they saw he had launched this scheme with a COVID-19 twist.”
According to the criminal complaint, on March 26, 2020, Food and Drug Administration criminal investigators began reviewing complaints from the public regarding postings on Facebook and a website linked to MARSCHALL that claimed the “Dynamic Duo” of substances could kill viruses, including the coronavirus. MARSCHALL billed himself as a “Health Coach” and retired naturopath. Various posts promote two substances that can “stop” coronavirus.
On March 30, 2020, an FDA investigator spoke to MARSCHALL on the telephone in an undercover capacity. MARSCHALL represented to the investigator that one of the substances “doesn’t boost the immune system, it just kills the virus.” MARSCHALL represented that the second substance would boost the production of white blood cells that attack infections. The undercover agent ultimately ordered the “Dynamic Duo” for $140 plus shipping.
The substances were received by FDA investigators in early April, along with documents. A review showed they were manufactured in facilities in Illinois and Texas. The original labeling for the substances does not claim to kill viruses, but still MARSCHALL included documents that stated the substances can “crush …. viral infections including those in the Corona family, like in China Corona-19.”
“Making claims that unproven drugs can prevent or treat COVID-19 causes more harm than good. Fraudulent products making false claims can be dangerous,” said Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We will investigate and bring to justice those who try to profit from the pandemic by offering unproven and illegally marketed coronavirus drugs.”
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
In 2011 and again in 2017, MARSCHALL was convicted and sentenced in federal court for distributing misbranded drugs. Due to these prior convictions, MARSCHALL faces increased penalties for introducing misbranded drugs into interstate commerce -- up to three years in prison and a $10,000 fine. In 2018, the Washington State Department of Health permanently revoked his credential to practice as a naturopath.
The case is being investigated by the FDA Office of Criminal Investigation (FDA-OCI). The case is being prosecuted by Assistant United States Attorney Brian Werner who serves as the COVID-19 Fraud Coordinator for the U.S. Attorney’s Office.
marschall_complaint_4-29-20.pdfDuring Sexual Assault Awareness Month, U.S. Attorney Moran recognizes important DOJ work assisting assault survivorsRead the Press Release
Seattle-April is Sexual Assault Awareness month, and as part of this week’s focus on National Crime Victims’ Rights, U.S. Attorney Brian T. Moran highlighted the important work his office is doing to support and protect victims of sexual assault. Over the past year, the office has prosecuted cases of assaults on tribal lands, military installations, national parks, and on board aircraft. In each case, specially trained members of the Victim Witness Unit work closely with victims to ensure their rights are protected and their voices are heard.
“Throughout my career as a prosecutor at the county, state, and now federal level, I have never forgotten that we do this work for the victims–many of whom have suffered unimaginable trauma,” said U.S. Attorney Moran. “In a system designed to protect the rights of the accused, I commend those who do the critically important work of guiding and assisting victims through the criminal justice system, working to ensure they are not further traumatized by the legal process and that they are heard and given a voice.”
Federal law enforcement has a unique responsibility in tribal communities to investigate and prosecute sexual assault and domestic violence. The U.S. Attorney’s Office works closely with the federally recognized tribes in the Western District of Washington to ensure such cases are investigated and prosecuted in tribal, state, or federal court depending on the jurisdictional complexities unique to each tribal nation.
Similarly, on military installations and federal lands, the U.S. Attorney’s Office works with federal law enforcement to investigate and prosecute cases of sexual assault, child molestation, enticement, and exploitation.
The U.S. Attorney’s Office for the Western District of Washington was one of the first to identify and actively pursue cases of sexual assault aboard aircraft. In an awareness campaign with the FBI and Port of Seattle, the U.S. Attorney’s Office highlighted the importance of the public awareness.
Autumn, a young woman who was sexually assaulted on a flight from Alaska to Seattle, said intervention from others was key. “If it hadn’t been for the woman who helped me up and told me to report you, the flight attendant who could tell something was wrong, and the airport staff she contacted, I wouldn’t have reported. I was too scared that no one would care. I was scared that people would judge me for not reacting better. Our youth shouldn’t have to grow up with those fears,” Autumn told the defendant in court at sentencing.
Now as she looks back on her experience with the criminal justice system, Autumn is grateful for the victim advocate, FBI agent and federal prosecutor who guided her through the process. “I was terrified, but I was pleasantly surprised by the process and the people I got to work with… If we don’t report these (assaults) there isn’t going to be any justice. I hadn’t wanted to speak at sentencing, but doing that helped me get some closure.”
Court-ordered restitution is paying for counseling and self-defense training which Autumn says has been valuable so that she can respond differently in the future.
Sadly, sexual assault is vastly underreported–The National Sexual Violence Resource Center cites a statistic that in 2018 only 25% of rapes and other sexual assaults were reported to police. For more information, visit King County Sexual Assault Resource Center at www.kcsarc.org or call 888-99-VOICE.
For more information on National Crime Victims’ Rights Week Call 855–4–VICTIM or visit VictimConnect.org to learn about victims’ rights and options.
Renton, Washington, man charged federally with murder in Olympic National ForestRead the Press Release
Tacoma – A 23-year-old Renton, Washington, man made his first appearance today in U.S. District Court in Tacoma on a charge of second degree murder for the February beating death of a 21-year-old woman, announced U.S. Attorney Brian T. Moran. The victim, a resident of California, had traveled to the Seattle area to meet up with ALEJANDRO J. AGUILERA ROJAS. The two traveled to the Sequim, Washington, area on February 10, 2020.
“I commend the Clallam County Sheriff’s Office and the FBI for their quick and thorough work on this case,” said U.S. Attorney Brian T. Moran. “The victim’s family has lost their loved one forever, and we will work hard to ensure that the defendant is held accountable for taking her life.”
According to the criminal complaint, AGUILERA ROJAS was having a relationship with the victim–a relationship hidden from his wife and family. The victim had traveled to Seattle to visit AGUILERA ROJAS. The victim’s friends and family members reached out to AGUILERA ROJAS, who gave them conflicting information about the victim’s whereabouts. A friend of the victim reported her missing to law enforcement when she did not contact them after February 10, 2020. The victim’s body was found off a logging road in Olympic National Forest on February 14, 2020. There were signs she had been beaten and stabbed. A broken and bloody tequila bottle, box cutter, and knife were located near where the victim’s body was discovered. There was no identification on the body.
Law enforcement reviewed surveillance video at a Sequim convenience store and determined a woman and a man, later identified as AGUILERA ROJAS, had visited the store. Law enforcement was able to determine that AGUILERA ROJAS’ cell phone and the victim’s phone had been in the area of the murder on February 10 and 11 and that both phones had then travelled back to the area of AGUILERA ROJAS’ residence, after the victim had been killed and left in the Olympic National Forest.
The autopsy of the victim by the King County Medical Examiner’s Office ruled the manner of death as a homicide and the cause of death by multiple blunt and sharp force injuries.
AGUILERA ROJAS was interviewed by law enforcement on February 19, 2020. He made a number of different statements about his relationship with the victim and what had happened. AGUILERA ROJAS was booked into Clallam County Corrections where he remained until being taken into federal custody. Because the murder occurred on federal land in the Olympic National Forest, the case is being prosecuted in federal court.
The case is being investigated by the FBI and the Clallam County Sheriff’s Office, with significant assistance from the Washington State Patrol.
The case is being prosecuted by Assistant United States Attorneys Ye-Ting Woo and Rebecca S. Cohen.
aguilera_rojas_complaint.pdfU.S. Attorney’s Office recognizes National Crime Victims’ Rights WeekRead the Press Release
Seattle - U.S. Attorney Brian T. Moran today recognized the important role of victims and victim advocates in the criminal justice system, as part of National Crime Victims’ Rights Week. The first victims’ rights week was declared in Philadelphia in 1975 and became a nationally recognized week with a declaration by President Ronald Reagan in 1981. This year April 19-25 is National Crime Victims’ Rights Week.
“The evolution of the rights of crime victims in the criminal justice system is a relatively recent development, and one that is critically important,” said U.S. Attorney Moran. “This week allows us to highlight important messages: Victims will be informed, heard, consulted and respected at all phases of criminal prosecutions. We encourage reporting crimes to law enforcement so that we can provide services and protect victims’ rights.”
In the Western District of Washington, a dedicated team of victim advocates makes sure crime victims are consulted, connected to resources, are notified of each hearing, and are able to participate as much as they want in the criminal process. Whether it is a crime of fraud or a crime of violence, victims can suffer major life disruptions and ongoing trauma. Some fear they will not be believed or may even be blamed for falling victim to a crime.
For victims of financial fraud, such as those who fell prey to Keenan Gracey, being a crime victim was a new experience. “I had never been a victim of a crime. It was scary, I felt violated… But I felt (the victim witness specialist) was going to fight for me. I felt like I knew what to expect,” Laurie said.
Laurie’s son Jason adds, “I got a lot out of it, learning what was happening with the case. I felt like I was actually part of it…. I was able to have my voice heard and I was able to positively contribute to the justice system… By showing up and voicing my opinion it allowed the judge to see the true impact of this crime on the community.”
Both say that by being involved in the justice system and speaking up, they gained closure. “It can happen to you and if it does, speak up and fight back to help the next person who could be victimized by the scheme,” Laurie said. Jason adds “You will feel supported and you will reclaim your strength. It allows you to heal and do so safely.”
The focus on victims’ rights began in the late 1970’s, and the protections were codified federally in the Victim and Witness Protection Act of 1982. Over the years, there have been other important milestones such as the establishment of DOJ’s Office of Victims of Crime (OVC) in 1983, passage of the Violence Against Women Act in 1994, the creation of the FBI’s internet crime site Ic3 in 2000, DOJ’s StopFraud.gov in 2010. As recently as 2019, victim rights were key considerations in the establishment of the Presidential Task Force on Missing and Murdered Native Americans and Alaska Natives, and the Debbie Smith DNA Backlog Grant Program.
The Office for Victims of Crime, part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties, and bond forfeitures.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local, and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, due to COVID-19, many communities are organizing virtual gatherings and online public awareness campaigns.
To learn about victims’ rights and options call 855–4–VICTIM or visit VictimConnect.org.
U.S. Attorneys Moran and Hyslop announce nearly $11 million to address COVID-19 pandemic in Washington StateRead the Press Release
Seattle – U.S. Attorney Brian T. Moran of the Western District of Washington and William D. Hyslop of the Eastern District of Washington today announced that the state of Washington received almost $11 million in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grants, to the Washington Department of Commerce and the city of Olympia, are available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. An additional $5.7 million has been allocated for other local jurisdictions in Washington. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“Our first responders continue to answer the call every single day, to keep our communities safe, while risking exposure to this dangerous virus,” said U.S. Attorney Moran. “The Department of Justice provides this funding with significant flexibility, so that state and local departments can use it in the ways that best benefit their officers and their community.”
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Former soldier who faked his suicide charged with sending a false distress message to the Coast GuardRead the Press Release
Tacoma – Two men who schemed to fake a suicide so one could go AWOL from the U.S. Army were charged today in U.S. District Court in Tacoma with making a false distress message to the U.S. Coast Guard, announced U.S. Attorney Brian T. Moran. DEVIN MITCHELL SCHMIDT, 20, a former soldier from Joint Base Lewis-McChord, and his cousin, RYEN ETHAN BELL, 21, of Bonney Lake, Washington will appear in U.S. District Court in Tacoma on June 4, 2020.
According to the criminal complaint, in December 2019, SCHMIDT schemed with BELL to fake his death by suicide so that SCHMIDT could end his military service and live in Mexico. The two men set their scheme in motion on December 18, 2019, when SCHMIDT filmed a fake suicide video saying goodbye to his family and friends. BELL reported to Port Townsend, Washington Police that his cousin had sent him the video indicating that he had committed suicide in Fort Warden Historical State Park. BELL and a friend drove to the park after he received the video via text message. BELL “found” SCHMIDT’s dog tags, unlocked phone and other belongings at the top of the cliff, 150 feet above the beach at Fort Warden.
As part of the scheme, BELL made the missing person report, knowing that his cousin was alive and in hiding. The report triggered a search first by the Jefferson County Sheriff’s Office and on December 19, 2019, a massive Coast Guard search of the waters below the cliffs in dangerous weather conditions. The search, which lasted approximately 10 hours, cost in excess of $172,000.
The scheme fell apart at about 4:00 p.m. on December 19, 2019, when BELL’s mother revealed that information she received from law enforcement made her suspicious of the missing person report. BELL’s mother said that BELL had told her SCHMIDT was missing and suicidal some four hours before he had actually received the suicide video. Law enforcement examined BELL’s phone and Facebook messages and determined the two planned to meet up at a Port Townsend McDonalds the evening of December 19, 2019 to begin the next step of their plan to go to Mexico. Police were waiting and arrested both men.
SCHMIDT received an ‘Other than Honorable Discharge’ from the military on March 25, 2020.
Making a false distress call to the Coast Guard is punishable by up to six years confinement, three years of supervised release, up to $100,000 in civil penalties and up to $250,000 in fines, and financial liability for all costs incurred by the Coast Guard for the life-saving efforts.
The case is being investigated by the U.S. Coast Guard Investigative Service (CGIS), with assistance from the Port Townsend Police Department and Jefferson County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Hillary Stuart.
bell_and_schmidt_complaint.pdfDepartment of Justice makes $850 million available to help public safety agencies address COVID-19 pandemicRead the Press Release
Seattle– The Department of Justice today announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local and tribal governments to apply immediately for these critical funds. The department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.
“As we all do our part to stop the spread of this virus, support for law enforcement is critical,” said U.S. Attorney Brian T. Moran. “These funds can help pay for protective gear to keep them safe, while they do their work to keep our communities safe.”
“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to the Congress for making these resources available and for the show of support this program represents.”
The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Moran announces nearly $60 million in grants available to support prisoners’ successful reentry into their communitiesRead the Press Release
Seattle – U.S. Attorney Brian Moran of the Western District of Washington today announced that nearly $60 million in Department of Justice grants is available to help communities address public safety by supporting successful reentry of adult and juvenile offenders into their communities.
“It is critically important that we help those who have served their time transition to a law abiding life following prison,” said U.S. Attorney Moran. “These grant opportunities build on the reforms of the First Step Act and make our communities safer by breaking the cycle of recidivism.”
“Our nation is facing difficult public safety challenges that demand strong and immediate action. The high rate of recidivism poses a dire threat to community safety and is being met with a robust response by this Administration,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this persistent challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including adult and juvenile reentry initiatives and research projects designed to improve our knowledge of what works in reentry programming.
A number of funding opportunities are currently open, with several more opening in the near future.
Correctional Adult Reentry Education, Employment, and Recidivism Reduction Strategies Program
Total Available $7.2 million Deadline 4/27/2020
Improving Community Supervision Outcomes Through Swift, Certain, and Fair Responses
Total Available $3 million Deadline 4/28/2020
Improving Reentry for People with Substance Use Disorders Program
Total Available $13.2 million Deadline 4/27/2020
Innovations in Reentry Initiative: Building System Capacity & Testing Strategies to Reduce Recidivism
Total Available $4 million Deadline 5/4/2020
Research and Evaluation on Promising Reentry Initiatives
Total Available $6 million Deadline 5/5/2020
Review and Validation of the First Step Act Risk Assessment Tool
Total Available: Determined after selection Deadline 4/10/2020
Second Chance Act Community-Based Reentry Program
Total Available $13.5 million Deadline 5/4/2020
Second Chance Act Evaluation Participation Support
Total Available $4 million Deadline 4/28/2020
Second Chance Act Youth Offender Reentry Program
Total Available $7 million Deadline 4/28/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities
Puyallup, Washington repeat offender charged federally with being a felon in possession of a firearmRead the Press Release
Tacoma – A 25- year-old Puyallup resident who has long associations with a Lakewood, Washington street gang, made his initial appearance March 30, 2020 in U.S. District Court in Tacoma on two counts of being a felon in possession of firearms. DESHAWN WEST was ordered detained at the Federal Detention Center at Sea-Tac. WEST had been in state custody since his arrest on February 14, 2020.
According to the criminal complaint, WEST, an aspiring rapper, posted multiple pictures on social media showing him holding firearms. Some of the guns had extended magazines and one appeared to be modified for rapid fire. On October 1, 2019, WEST was arrested near Big Sandy, Montana for failing to comply with the terms of his Washington State Department of Corrections probation. In the vehicle with WEST was a firearm that appeared to match one WEST was holding in various social media videos. At the time WEST’s girlfriend claimed the firearm belonged to her.
On February 12, 2020, WEST again posted videos to social media showing him holding firearms. On February 14, 2020, members of the FBI’s South Sound Gang Task Force served a search warrant on WEST’s Puyallup residence. WEST was taken into custody without incident, and in the apartment law enforcement located two firearms, extended magazines and ammunition.
WEST is prohibited from possession firearms due to felony convictions including assault and being a felon in possession of a firearm (2014) and assault (2018).
Being a felon in possession of a firearm is punishable by up to ten 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’s South Sound Gang Task Force in close coordination with the Pierce County Sheriff's Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Washington State Department of Corrections.
The case is being prosecuted by Assistant United States Attorney Jessica Manca.
U.S. Attorney announces more than $163 million available to fight addiction crisisRead the Press Release
Seattle – U.S. Attorney Brian T. Moran of the Western District of Washington, today announced that more than $163 million in Department of Justice grants is available to help communities address America’s addiction crisis.
“Sadly, even with our community focused on health amidst the COVID-19 crisis, those who struggle with addiction have no break from their disease,” said U.S. Attorney Brian Moran. “I hope state and local governments and non-profits will explore these federal funding opportunities and apply for the grants that can enhance their work with those suffering from addiction.”
“Our nation is facing the difficult challenge of curbing substance addiction, which threatens public safety and is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to prevent overdose deaths and break the cycle of addiction and crime.
A number of funding opportunities that address the addiction crisis are currently open:
Adult Drug Court and Veterans Treatment Court Discretionary Grant Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17098
Total Available $1.75 million Deadline 5/14/2020
Comprehensive Opioid, Stimulant, and Substance Abuse Site-based Program
https://bja.ojp.gov/COSSAP20
Total Available $27 million Deadline 5/21/2020
Enhancing Community Responses to America's Addiction Crisis: Serving Our Youngest Crime Victims
https://www.ovc.gov/grants/pdftxt/fy-2020-enhancing-community-responses-to-drug-crisis.pdf
Total Available: $19 million Deadline: 5/4/2020
Family Drug Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17090
Total Available $18.2 million Deadline 4/8/2020 (Extended)
Harold Rogers Prescription Drug Monitoring Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17754
Total Available $28.1 Deadline 5/5/2020
Juvenile Drug Treatment Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17051
Total Available $7.2 million Deadline 4/13/2020 (Extended)
Mentoring Opportunities for Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-16930
Total Available $48 million Deadline 4/13/2020
Opioid Affected Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17352
Total Available $9 million Deadline 4/20/2020
Research and Evaluation on Drugs and Crime https://nij.ojp.gov/funding/opportunities/nij-2020-17275
Total Available $1 million Deadline 4/20/2020
Residential Substance Abuse Treatment for State Prisoners
https://bja.ojp.gov/RSAT20
Total Available $4.5 million Deadline 4/6/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities
U.S. Attorney announces $83 million to support school safetyRead the Press Release
Seattle – U.S. Attorney Brian T. Moran of the Western District of Washington today announced that more than $83 million in Department of Justice grants is available to help communities improve school security and protect students, teachers and faculty from threats of violence.
“At a time when we are appropriately focused on a health crisis, we still must look ahead to the difficult problems facing our community and especially our children,” said U.S. Attorney Moran. “I urge school administrators, teachers and district leaders to review these grant offerings and take time now to apply for these important federal resources.”
“School violence is no longer an abstract threat but has become a tragic reality in too many of America’s communities. Moving to meet this challenge is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to tighten school security and improve the reporting of threats.
A number of funding opportunities for school safety are currently open, with another opening in the near future:
Research and Evaluation on School Safety
https://nij.ojp.gov/funding/opportunities/nij-2020-17308
Total Available $5 million Deadline 4/13/2020STOP Act School Violence Program (FY20)
https://nij.ojp.gov/funding/opportunities/nij-2020-17308
Total Available $71.4 million Deadline 4/13/2020Strategies to Support Children Exposed to Violence:
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17926
Total Available $7 million Deadline 4/27/2020For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
U.S. Attorney urges public to report suspected COVID-19 fraudRead the Press Release
Seattle – U.S. Attorney Brian T. Moran of the Western District of Washington today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected].
In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes.
“We cannot allow criminals to use the anxiety and fear surrounding this virus to further victimize our community,” said U.S. Attorney Moran. “Reporting this activity to the National Center for Disaster fraud will help law enforcement identify and ultimately prosecute those who try to profit using fraud schemes related to the virus.”
Some examples of these schemes include:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
- Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
- Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities. The Western District of Washington Coronavirus Fraud Coordinator is Assistant United States Attorney Brian Werner of the Complex Crimes Unit.
The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes. The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.
To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
U.S. Attorney Moran announces more than $65 million in grants available to fight human trafficking and assist trafficking victimsRead the Press Release
Seattle – U.S. Attorney Brian T. Moran today announced that more than $65 million in Department of Justice grants is available to help communities combat human trafficking and serve adults and children who are victimized in trafficking operations.
“During this unprecedented time of anxiety and fear over COVID-19, it is critical that work continue to assist the vulnerable in our nation, especially the victims of human trafficking – modern day slavery,” said U.S. Attorney Brian Moran. “I want our partners in this work to be able to apply for this federal financial assistance, something that can happen even as we face the pressing need to combat the spread of the virus.”
“Our nation is facing difficult challenges, none more pressing than the scourge of human trafficking. Human traffickers pose a dire threat to public safety and countering this threat remains one of the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight against this insidious crime. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs that support human trafficking task forces and services for human trafficking survivors.
A number of funding opportunities are currently open, with several more opening in the near future.
Missing and Exploited Children Training and Technical Assistance Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17351
Total Available $1.8 million Deadline 4/6/2020 (Extended)
Multidisciplinary Task Force Program to Combat Human Trafficking
Total Available $22 million Opens week of 3/16/2020
Preventing Trafficking of Girls
Total Available $1.7 million Opens week of 3/16/2020
Research and Evaluation on Trafficking in Persons https://nij.ojp.gov/funding/opportunities/nij-2020-17324
Total Available $2.5 million Deadline 4/20/2020
Services for Victims of Human Trafficking
Total Available $16.5 million Opens week of 3/16/2020
Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking Total Available $2 million Opens week of 3/16/2020
Human Trafficking Training and Technical Assistance Program
Total Available $5 million Opens week of 3/16/2020
Improving Outcomes for Child and Youth Victims of Human Trafficking
Total Available $6 million Opens week of 3/16/2020
Integrated Services for Minor Victims of Labor Trafficking
Total Available $8 million Opens week of 3/16/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities
U.S. Attorney’s Office on alert for fraud allegations regarding COVID-19Read the Press Release
Seattle – U.S. Attorney Brian T. Moran is asking our federal, state, and local law enforcement partners to be alert to frauds preying on those concerned about COVID-19.
“In a time of high stress and fear it is critical that for the public to know that law enforcement at all levels remains dedicated to protecting them from harm – whether it is from scams, frauds or violent crime,” said U.S. Attorney Moran. “As Attorney General Barr has directed, we will remain vigilant in detecting, investigating and prosecuting wrongdoing related to the crisis. To those who are engaged in perpetrating these schemes, you are on notice that my office will aggressively pursue you and hold you to answer for preying on our communities.”
The Western District of Washington has extensive expertise in cybercrime and is already monitoring issues related to phishing attempts and efforts to infect emails, links and postings with malware. Members of the public need to be wary of emails or online posts that could be infected with malware that could then infect their electronic devices and steal personal and financial information.
“The pandemic is dangerous enough without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated,” Attorney General William Barr said in his communication to the U.S. Attorneys.
If you or someone you know believe you’ve been the target or victim of an outbreak-related fraud scheme, please contact the FBI’s Internet Crime Complaint Center (IC3) by visiting www.IC3.gov.
Southwest Washington man charged with making anti-Semitic threats against neighborRead the Press Release
Tacoma, Washington – A 48-year old La Center, Washington man was arrested today on a criminal complaint charging him with cyberstalking and two counts of interstate threats, announced U.S. Attorney Brian T. Moran. MATHIAS DOUGLAS KANE was arrested late yesterday without incident outside his home. KANE will make his initial appearance in U.S. District Court in Tacoma at 2:30 today.
According to the criminal complaint, KANE made online threats against a neighbor who took in KANE’s 13-year-old child when the child needed a place to live. On multiple occasions in January 2020, KANE posted personally identifying information about his neighbor online and threatened to harm her. KANE posted anti-Semitic comments and threatened to harm state Child Protective Services (CPS) workers, members of law enforcement and Jews. KANE identified himself as a White Nationalist and used a screenname and images involving NAZI symbols.
On two occasions KANE was contacted by law enforcement regarding his access to weapons. KANE denied possessing firearms, but refused to allow law enforcement to search his home. KANE posted multiple times about manufacturing guns and ammunition and his access to firearms parts. A search of his home and vehicle last night did not recover any firearms.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Cyberstalking and making interstate threats are both punishable by up to 5 years in prison.
The case is being investigated by the FBI with assistance from the Clark County Sheriff’s Office and the La Center Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
kane_complaint.pdfPierce County tax preparer arraigned for tax fraud conspiracy involving preparation of false income tax returnsRead the Press Release
Tacoma, Washington – A 51-year-old Lakewood, Washington, man was arraigned today in U.S. District Court in Tacoma for a multi-year fraudulent tax preparation scheme he operated, even after his father went to prison for the same conduct. CLEO J. REED Jr., created “Just Us Tax Service” and later merged it with “Young’s Tax Service.” The companies filed tax returns falsely claiming high rates of Earned Income Tax Credits (EITC) to increase clients’ tax refunds and therefore the fee they would receive for tax preparation.
REED Jr. pleaded “not guilty,” and trial was scheduled for May 12, 2020, in front of U.S. District Judge Benjamin H. Settle.
According to records filed in the case, in 2011 and 2012, even as REED Jr’s father’s tax preparation business was under investigation for preparing fraudulent returns, REED Jr opened and operated “Just Us Tax Service” and allegedly used the same fraudulent technique utilized by his father’s tax preparation business. When the IRS terminated REED Jr’s tax prep registration, he had an acquaintance open and register “Young’s Tax Service” in 2014 and continued filing tax returns with fraudulent entries for Earned Income Tax Credit. REED Jr filed the false returns from his home, from Everyday Essentials, the marijuana dispensary he owned and operated in Puyallup, and from his employment location with the Sumner School District.
The total amount of tax loss in this case and the illegal gain to REED Jr is still being calculated.
REED Jr is charged with one count of conspiracy to defraud the United States and seven counts of aiding in the preparation of false tax returns. Conspiracy is punishable by up to 5 years in prison and aiding in the preparation of false tax returns is punishable by up to three 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 Internal Revenue Service Criminal Investigation (IRS-CI), and is being prosecuted by Assistant United States Attorney Arlen Storm.
reed_jr_superseding_indictment.pdfCar prowler who preyed on visitors to National Parks sentenced to two years in federal prison to follow state prison termRead the Press Release
Tacoma, Washington – A repeat offender who victimized more than 40 hikers and campers in National Parks across western Washington was sentenced today in U.S. District Court in Tacoma to two years in federal prison to follow a 25 month state prison term. MICHAEL WAYNE PICKERING, 41, of Aberdeen, Washington, prowled at least four dozen cars at more than seven different trailheads and parking lots stretching from Mount Rainier National Park to Third Beach on the Pacific coast, to trailheads in the interior of the Olympic Peninsula’s national park and forest. At the sentencing hearing U.S. District Judge Benjamin H. Settle called the crimes “planned and methodical,” and ordered PICKERING to serve three years of supervised release following prison.
“The victims in this case didn’t just suffer a financial loss, they were emotionally damaged as well,” said U.S. Attorney Brian T. Moran. “Some returned from what was supposed to be a relaxing time in nature, to find themselves stranded with a damaged vehicle, their electronics, clothes and money stolen, marooned in the national forest, with no cell phone service. For some it has forever changed their interest in outdoor activities.”
According to records filed in the case, on March 28, 2019, PICKERING and his girlfriend smashed windows and stole thousands of dollars of equipment from vehicles parked at the Graves Creek Trailhead and Fletcher Canyon Trailhead in Olympic National Park. This was the beginning of a month-long theft spree. PICKERING and his girlfriend used credit and debit cards stolen from the vehicles to make purchases at various stores – the overall financial damage was more than $50,000. PICKERING was only stopped when he was caught shortly after walking out of a store where he used victims’ bank cards, with a window punch (a tool used to break car windows), and three credit cards in a victim’s name in his pocket.
PICKERING did not just take credit and debit cards. He stole expensive electronics, car and house keys, and even diaries, clean clothes, make-up, and toiletries. When law enforcement searched his residence, they found PICKERING had been stockpiling much of the gear he stole or selling it online. He used the stolen debit and credit cards to buy himself luxuries such a flat screen TVs, gaming systems, a drone, and clothes.
Victims wrote to the Court about how the car prowls violated their sense of safety and changed their attitude toward camping. Some of the comments include:
It’s really hard to feel so unsafe in the outdoors, which is where I usually find peace and solace. . .
The crime happened on the last day of a hiking/camping/backpacking trip with friends. I took what otherwise was a great vacation and made it very sour.
We were exhausted and freezing by the time we returned to the trailhead. When we found the truck windows busted out and my luggage stolen it was devastating…We had to drive for nearly an hour with the cold wind and rain coming in through the windows…I have not returned to Washington since this event.
PICKERING has a 15-year history of property crimes in and around Olympic National Park, such as burglary, identity theft, and trespassing.
The case was investigated by rangers from the National Park Service in collaboration with local law enforcement, including Forks Police Department, Mason County Sheriff’s Office, Grays Harbor Sheriff’s Office, and the Washington State Patrol.
The case was prosecuted by Assistant United States Attorney William Dreher.
Bothell man charged with money laundering using bitcoinRead the Press Release
Seattle – A Bothell, Washington, man is charged in an eight-count complaint for operating an illegal money exchange business involving bitcoin, announced U.S. Attorney Brian T. Moran. KENNETH WARREN RHULE, 26, made his initial appearance on the criminal complaint in U.S. District Court in Seattle yesterday. RUHLE is charged with conducting an unlicensed money transmitting business, five counts of laundering of monetary instruments, and one count of conspiracy to produce and distribute marijuana.
According to the criminal complaint, RHULE came to the attention of law enforcement in April 2018 as someone operating an unlicensed bitcoin exchange business under the name “Gimacut93.” At various locations–primarily Starbucks coffee shops–in Western Washington, RHULE met repeatedly with undercover agents posing as criminals who needed to launder funds. Through their conversations the undercover agents made it seem they were laundering money related to human trafficking activities. RHULE agreed to exchange bitcoin for cash apparently knowing the cash was the proceeds of criminal activity. In fact, RHULE offered the undercover agents advice on virtual currency and how to hide the source of the funds. RHULE asked the agents no questions as required under the “know your customer” rule.
Even as he was engaged in the operation of the unlicensed financial exchange business, RHULE was operating a marijuana products business that has no license with the State of Washington. The facility, based in Monroe, Washington, manufactures hash oil and other marijuana products using the names HerbinArtisans, Heady.Watr, and KlearKrew. Electronic messages reviewed in the case indicate RHULE was exchanging various marijuana products for cryptocurrency. RHULE claimed that he was manufacturing in the Seattle area but selling some of his product in Florida.
Operating an unlicensed money transmitting business is punishable by up to five years in prison. Laundering monetary instruments is punishable by up to 20 years in prison. Conspiracy to manufacture and distribute the amount of marijuana involved in this case is punishable by a mandatory five years in prison and up to 40 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations and the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Marie Dalton.
rhule_complaint.pdfProlific Snohomish County fentanyl dealer sentenced to 15 years in prisonRead the Press Release
Seattle – The head of a drug distribution ring who was convicted at trial of drug and gun crimes was sentenced today in U.S. District Court in Seattle to15 years in prison, announced U.S. Attorney Brian T. Moran. RHETT IRONS, 41, of Lynnwood, Washington was convicted on December 12, 2019, of conspiracy to distribute fentanyl pills, possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. At the sentencing hearing U.S. District Judge Richard A. Jones noted that fentanyl is probably the most dangerous drug being sold right now, and noted that IRONS had guns and drugs accessible to children. “You were the clear leader of a drug trafficking organization,” Judge Jones said.
“This defendant exploited others’ addictions so he could live a life of luxury,” said U.S. Attorney Brian Moran. “Testimony at trial revealed he got his dealers and customers hooked on fentanyl – a powerful and potentially fatal opioid – all so he could make more money and have the cars and vacations he thought he deserved.”
According to records filed in the case and testimony at trial, in February 2018, the Snohomish Regional Drug Task Force began targeting organizations distributing fentanyl pills throughout the north sound region. IRONS was a leader of one of the organizations. He had originally trafficked oxycodone pills, but switched to trafficking fentanyl – a stronger and cheaper pill – that he rebranded as “supers". It was also more deadly. To maximize profits and to protect him from law enforcement scrutiny, IRONS fronted the pills to his distributors and took the profits afterwards allowing the addicts to have a cut of the profits. Many distributors used that profit to buy from IRONS to support their own addiction. During this time, agents also learned of a luxury home IRONS rented in Bothell dubbed “the mansion” by his distributors. The house had a pool, hot tub and tennis courts – IRONS allowed some of his dealers to live at the home, and stored pills and firearms there.
Law enforcement used confidential sources and an undercover agent to make purchases from IRONS. In February 2019, law enforcement searched IRONS’ residence in Lynnwood.
At IRONS’ home agents found a loaded Glock semiautomatic pistol and additional magazines under a mattress in the master bedroom. They found more pills and more than $50,000 in cash. In the basement where IRONS allowed another redistributor to live, agents found a gun safe with eight firearms including three assault rifles. IRONS has prior felony convictions, which preclude him from possessing firearms.
During the investigation, law enforcement confirmed that a former drug customer of IRONS died in April 2018 from acute fentanyl intoxication. It is unknown whether fentanyl purchased from IRONS caused the death.
“Today, the head of this poisonous snake was cut off,” said DEA Special Agent in Charge SAC Keith Weis. “Irons directed dozens of individuals dealing thousands of fentanyl pills onto the streets of the north sound communities that endangered all it touched, in the name of greed.”
In asking the court for a 17-year prison term, prosecutors wrote to the Court: “This Defendant has altered the lives of countless individuals. He created addictions. He fed addictions. …This Court will never know all of the lives shattered by Defendant’s greed. There is no way to provide his victims with restitution. There is no way to know the number of families Defendant destroyed, the individuals he left addicted, or even the deaths connected to his organization.”
Following his prison term, IRONS will be on federal supervision for five years.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration (DEA) as part of the Snohomish Regional Drug Task Force. Both the Snohomish County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives were key investigative partners.
The case was prosecuted by Assistant United States Attorneys Lisca Borichewski and Chantelle Dial.