Western District of Washington
Press releases recorded for this federal judicial district.
Attorney General’s Advisory Subcommittee on Native American Issues Meets to Discuss Violent Crime in Indian CountryRead the Press Release
WASHINGTON – Attorney General William P. Barr’s Advisory Subcommittee on Native American Issues (NAIS) convened this week during the U.S. Attorney’s National Conference in Washington, D.C., to discuss a wide range of justice issues affecting Indian Country, announced U.S. Attorney Trent Shores, Chair, and U.S. Attorney Kurt Alme, Vice Chair.
“The Native American Issues Subcommittee is focused on reducing violent crime against women and children in Indian Country, including missing and murdered indigenous persons,” said U.S. Attorney Trent Shores. “I am thankful for Attorney General Barr’s leadership on these issues. He understands the law enforcement and jurisdictional challenges faced by Native Americans and Alaska Natives. We look forward to working with him and with our federal, tribal, state and local partners to find viable solutions that will improve public safety in Indian country.”
“In my first months as U.S. Attorney for the Western District of Washington, I am working to accomplish my goal of visiting leaders of all 25 federally recognized tribes in the Western District, to hear their concerns about law enforcement in Indian Country and the important working relationship with federal law enforcement,” said U.S. Attorney Brian T. Moran. “As part of the Native American Issues Subcommittee, I am pleased be able to represent those voices here at DOJ, and I look forward to upcoming visits to gather input from additional tribal partners.”
On Tuesday, the NAIS met with Tara Katuk Mac Lean Sweeney, Assistant Secretary of Indian Affairs, Department of the Interior, and discussed cross-agency collaboration in order to provide more responsive and effective justice services to Indian Country. They further discussed Indian Country case investigations, case intake and tracking databases, and tribal law enforcement resource allocation. The NAIS also reviewed President Trump’s priorities for Indian Country justice. Those priorities include protecting Native American children in the Indian Health Services system, collaboration among Department of Justice, the Department of the Interior, and tribal law enforcement agencies, reducing violent crime, and providing services to help victims to overcome trauma.
On Wednesday, Trent Shores, NAIS Chair and U.S. Attorney for the Northern District of Oklahoma, moderated a panel titled Murdered and Missing Indigenous Women: A Crisis in Urban America & Indian Country. Panelists included Charles Addington, Director of the Office of Justice Services, Bureau of Indian Affairs; Kurt Alme, U.S. Attorney for the District of Montana; Tracy Toulou, Director of the Office of Tribal Justice; Laura Rogers, Acting Director of the Office on Violence Against Women; and Bryan Vorndran, Deputy Assistant Director of the FBI. The panel discussed the development and implementation of protocols to investigate murdered and missing indigenous persons and how to more accurately measure the scope of the problem in both urban America and Indian Country in order to develop strategies to address it.
In August, the subcommittee is scheduled to reconvene in Indian Country in New Mexico.
The NAIS consists of the approximately 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and makes policy recommendations to the Attorney General regarding public safety and legal issues that impact tribal communities.
The NAIS is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime.
Scammer Who Re-victimized Unhappy Investors Pleads Guilty to Mail FraudRead the Press Release
A former Seattle resident who relocated to Laguna Niguel, California in the midst of his fraud scheme, pleaded guilty today in U.S. District Court in Seattle to mail fraud, announced U.S. Attorney Brian T. Moran. TROY CLINTON VAN SICKLE, 48, admits that between 2011 and 2014, he fraudulently operated an asset recovery business in order to defraud unhappy investors who previously had lost money they had invested with a Bellevue investment company. U.S. District Judge James L. Robart scheduled sentencing for September 30, 2019.
According to records filed in the case, during May and June 2011, VAN SICKLE represented to the unhappy investors that he had a company, Troy C. Van Sickle Consulting and Collections, and that for a fee he could help them recover their lost funds. VAN SICKLE falsely claimed that he had helped other investors recover large sums, and, in order to win investors’ trust, VAN SICKLE made various promises, including entering into a romantic relationship with one of the investors.
In February of 2012, VAN SICKLE moved to California. After he moved, VAN SICKLE told the investors that if they loaned him $75,000, he would (1) use the money in order to recover their lost investment, and (2) repay the $75,000 in 30 days. In fact, VAN SICKLE planned to use the money for his own purposes, including paying his rent through the end of the year, and did not intend to repay the investors. In July 2013, after one of the investors who loaned VAN SICKLE funds repeatedly sought the return of the money he loaned VAN SICKLE, VAN SICKLE sent the investor an invoice with false charges purporting to explain how VAN SICKLE had used the loaned funds in order to try to recover the investor’s funds.
Mail fraud is punishable by up to 20 years in prison and a $250,000 fine.
Over the course of the scheme, VAN SICKLE fraudulently took in $75,000. Under the terms of the Plea Agreement, in addition to repaying the investors that $75,000, VAN SICKLE has agreed to repay the investors an additional $175,000 in fees that he received from the investors.
The case was investigated by the FBI and the Washington State Department of Financial Institutions. The case is being prosecuted by Assistant United States Attorneys Arlen Storm and Andre Penalver.
Members of International Drug Trafficking Conspiracy Sentenced to PrisonRead the Press Release
Three members of an international drug trafficking organization were sentenced today in U.S. District Court in Seattle to prison terms ranging from 24-32 months for distributing more than a thousand kilograms of illegal marijuana, announced U.S. Attorney Brian T. Moran. The defendants pleaded guilty in March 2019, admitting in their plea agreements that they used money from conspirators in the Peoples Republic of China (PRC) to purchase homes in the Puget Sound area that they used for marijuana production. QIFENG LI, 41, was sentenced to 32 months in prison and 4 years of supervised release, his wife XIAMIN HUANG, 39, was sentenced to two years in prison and two years of supervised release, and brother QIWEI LI, 45, was sentenced to 30 months in prison. Of the three, QIWEI LI is the only one who is not a U.S. Citizen and faces deportation following his prison term. At the sentencing hearing U.S. District Judge John C. Coughenour said this was “an extensive and sophisticated grow operation over a multi-year period.”
“Foreign money is increasingly used to create networks of illegal and unsafe grow houses, blighting our neighborhoods and defeating the closely regulated marijuana marketplace the State of Washington pledged to create,” said U.S. Attorney Brian T. Moran. “These illegal grow houses are toxic from chemicals, pose a fire risk from jury-rigged wiring, and are targeted for violent strong-armed robberies. These defendants are forfeiting more than $1 million in cash and properties, but they are fortunate they escaped being shot or killed at one of their illegal grows.”
According to the facts admitted in the plea agreement, between July 2015 and May 2018, the conspirators purchased homes in Burien, Kent, Seattle and Tukwila, which they used exclusively for marijuana production. More than $598,000 was wired to the conspirators from China to fund the purchases. The defendants shipped more than 1,000 kilograms of marijuana to the New York City area, via FedEx, UPS, the U.S. Postal Service and a private freight forwarder. Ultimately, in an effort to streamline distribution, the conspirators established a shipping company, Pony Movers, LLC, to transport their marijuana from Western Washington to a warehouse in Little Ferry, New Jersey. The defendants then deposited the profits from the marijuana enterprise into their bank accounts in amounts less than $10,000 to avoid financial reporting requirements.
QIFENG LI and XIAMIN HUANG are U.S. citizens. QIWEI LI is a Lawful Permanent Resident who likely will face deportation following his prison term.
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 DEA and Homeland Security Investigation (HSI). Significant investigative assistance was also provided by the Seattle Police Department and FBI.
The case is being prosecuted by Special Assistant United States Attorney Joe Silvio and Assistant United States Attorney Marie Dalton. Mr. Silvio is an attorney with Homeland Security Investigations, specially designated to prosecute cases in federal court.
Drug Dealer Illegally Armed with Nine Firearms Sentenced to Twelve Years in PrisonRead the Press Release
A former bank robber who armed himself with nine firearms to protect his extensive drug dealing business, was sentenced today in U.S. District Court in Seattle to twelve years in prison for three federal felonies, announced U.S. Attorney Brian T. Moran. KEVIN TA, 31, of Des Moines, Washington, came to the attention of law enforcement in May 2018, when two Burien brothers overdosed on fentanyl within hours of each other. One brother did not survive. Electronic communications between TA and one victim suggested TA supplied the drugs. U.S. District Judge John C. Coughenour imposed five years of supervised release to follow the prison term.
“This defendant continued to deal his poison even after being sent a photo of one of his customers in a hospital bed on life support,” said U.S. Attorney Brian T. Moran. “This sentence protects the community from someone who illegally stockpiled firearms, was blinded by greed, and showed callous disregard for those whose addiction increased his profits.”
According to records filed in the case, following the overdose death, the King County Sheriff’s Office and the Bellevue Police Department moved quickly to build a case against TA and obtain search warrants. When law enforcement searched his residence and car on June 21, 2018, they seized seven firearms from his bedroom closet and found significant quantities of methamphetamine, heroin and fentanyl pills. In TA’s car they found two additional firearms and additional drugs.
When investigators reviewed TA’s electronic messages and social media posts, they found him bragging about the money he made dealing fentanyl. The mother of the overdose victim sent TA information and pictures via text about her son’s medical condition, and death from the overdose. TA did not react or slow his dealing when confronted by the fact that a customer had died. The brothers had not intended to purchase fentanyl, and did not know it was in the drugs they consumed.
TA was prohibited from possessing any firearms after serving a 31-month state prison sentence for bank robbery. TA pleaded guilty to being a felon in possession of firearms, possession of controlled substances with intent to distribute and possession of a firearm in furtherance of drug trafficking. The third count carries a mandatory 5 year sentence to run consecutive to any other sentence.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, DOJ leadership announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was brought through the coordinated investigation and prosecution of the King County Sheriff’s Office, Bellevue Police Department, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Drug Enforcement Administration (DEA), the King County Prosecuting Attorney’s Office and the U.S. Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Jessica Manca.
Elementary Music Teacher Charged with Possession of Child PornographyRead the Press Release
A Federal Way, Washington, man was arrested this morning for possession of child pornography and made his initial appearance in U.S. District Court in Seattle this afternoon, announced U.S. Attorney Brian T. Moran. CHRISTOPHER SCOTT NEWCOMBE, 35, has worked as a music teacher in a variety of public and charter schools in the Puget Sound region. Currently, he is an elementary music teacher in the Renton School District.
According to records filed in the case, KIK screens for explicit images on its messaging system and forwards information on those images to law enforcement. In November 2018, Homeland Security Investigations was alerted to the transmitting of sexually explicit images of young boys involving an internet protocol address ultimately traced to NEWCOMBE. Law enforcement obtained a search warrant for NEWCOMBE’s digital devices. The warrant was executed this morning, and NEWCOMBE was charged with possession of images of child pornography.
Since NEWCOMBE has been employed as a music teacher, Homeland Security is asking that those who have concerns and wish to communicate with law enforcement call 206-442-1469. NEWCOMBE’s current teaching position is at Renton’s Cascade Elementary School, but his social media profiles indicate prior teaching positions at schools in Tacoma, Federal Way, and Bainbridge Island.
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 better to 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 prosecuted by Assistant United States Attorney Matthew Hampton.
Arlington, Washington, Man Sentenced to Three Years in Prison for Sexual Abuse of a Minor and Possession of Child PornographyRead the Press Release
A 36-year-old Arlington, Washington, man was sentenced today in U.S. District Court in Tacoma to three years in prison and 15 years of supervised release for sexual abuse of a minor and possession of child pornography, announced U.S. Attorney Brian T. Moran. JAMES C. OVERTON pleaded guilty in January 2019, admitting he used internet messaging applications to have sexual communications with young girls. OVERTON met one 13-year-old girl online and, during the years that followed, convinced her to exchange sexually explicit photos. When she was 15, he took her to Olympic National Park for sexual conduct. At the sentencing hearing U.S. District Judge Ronald B. Leighton said OVERTON engaged in “a pattern of exploitation… this is a serious offense that affects real people.”
According to records filed in the case, OVERTON communicated using the internet with a number of young teens and preteens, attempting to have sexualized conversations with them. Over a period of time, he groomed the 13-year-old for sex and took advantage of her precarious emotional and psychological condition. In November 2016, OVERTON picked up the then-15-year-old from a location near her home and took her into Olympic National Park where he had her engage in sexual conduct. The teen’s family ultimately reported the conduct to law enforcement. When investigators got a court-authorized search warrant for OVERTON’s home and digital devices, they also recovered evidence of more than 100 images of child pornography. OVERTON had attempted to delete the images, but evidence remained on his devices.
OVERTON admitted he had communicated online with a number of young teens between the ages of 12 and 15 in addition to the victim of the sexual assault. Many of those conversations were sexual and involved his trying to obtain sexually explicit videos and images. OVERTON will be required to register as a sex offender.
The case was investigated by the National Park Service and Homeland Security Investigations.
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 better to 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 prosecuted by Assistant United States Attorney Matthew Hampton.
Former Bowling Coach Sentenced to Decades in Prison for Production of Child PornographyRead the Press Release
The former coach of a South King County bowling team was sentenced today in U.S. District Court in Seattle to 25 years in prison and lifetime supervised release for production and possession of child pornography, announced U.S. Attorney Brian T. Moran. TY LEE TREDDENBARGER, 54, of Burien, Washington, pleaded guilty in October 2018, admitting he photographed and saved images of his molestation of minor victims between the ages of 13 and 16. At the sentencing hearing U.S. District Judge John C. Coughenour said, TREDDENBARGER committed “a breach of trust as a coach,” and noted that the abuse lasted over a multi-year period.
“This defendant not only groomed the victims, he went to great lengths to convince the victim’s parents that he would take care of these children during out-of-state tournaments and overnight events,” said U.S. Attorney Brian T. Moran. “His horrific betrayal of trust, and using drugs to facilitate his sex abuse, is a parent’s worst nightmare. Instead of a trustworthy mentor these children were violated by a predatory monster.”
According to records filed in the case, in March 2017, a young victim disclosed the abuse to a parent. The Des Moines Police Department and King County Prosecutor’s Office requested assistance from Homeland Security Investigations. HSI and the Seattle Police Department executed court authorized search warrants at TREDDENBARGER’s residence, seizing electronic devices that contained images of the sexual abuse of children. Analysis of the electronic devices revealed more than 300 images and 12 videos of TREDDENBARGER sexually abusing the young victims – many while they were drugged and sleeping. In the search, police also seized a fake smoke detector, fitted with a secret camera, and a small bathroom toiletry bag that also contained a hidden camera. TREDDENBARGER told law enforcement he used these devices to secretly film bowling team members in hotel showers and bathrooms during trips to bowling tournaments.
From the images, law enforcement was able to identify two additional victims. Some of the victims in the images remain unknown. TREDDENBARGER was charged with three counts of production of child pornography -- one count for each of the victims -- and possession of child pornography.
“The years of abuse that the victims in this case suffered at the hands of this dangerous child predator are inexcusable,” said Brad Bench, special agent in charge of HSI Seattle. “I applaud the victims for their bravery, as well as all of the law enforcement professionals who helped make today’s sentencing possible. Thanks to their efforts, this dangerous criminal has been removed from our community and will no longer have access to our children.”
Following the sentence in federal court, TREDDENBARGER will be sentenced for child molestation in King County Superior court. As part of the plea agreement, the state sentence will run concurrent to the federal prison sentence.
The case was investigated by Homeland Security Investigations with assistance from the Des Moines Police Department and the Seattle Police Department.
The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation cases in federal court.
Former Shipbuilding Project Manager Indicted for Fraud in $1.5 Million False Invoice SchemeRead the Press Release
A former project manager for Portland, Oregon-based shipbuilder Vigor Marine LLC, was indicted today by a federal grand jury in Seattle for ten counts of wire fraud related to his scheme to defraud his employer out of approximately $1.5 million, announced U.S. Attorney Brian T. Moran. SHELTON LAYNE SMITH, 50, of Portsmouth Virginia, is expected to be arraigned on the indictment in U.S. District Court in Seattle in the next two weeks.
According to the indictment, in 2016 and 2017, SMITH served as the project manager on the renovation of two U.S. Coast Guard cutters called the “Bertholf” and the “Waesche.” The renovations took place at Vigor’s Seattle facility. SMITH was responsible for selecting vendors and approving payments to them for equipment and services related to the renovations. The indictment alleges that, in this role, SMITH fabricated invoices from a fictitious company called “Marine Service Solutions” (MSS). The fraudulent invoices caused Vigor to pay out approximately $1.5 million for work that was never done and equipment that was never provided. The indictment alleges that SMITH used the fraud proceeds for his own purposes, including to finance his gambling activities.
SMITH’s scheme to defraud was an elaborate charade. SMITH persuaded a legitimate Vigor vendor to serve as a “pass-through” entity that received invoices from MSS, marked up the cost of the services, and passed on the fraudulent expenses to Vigor. The local vendor was not aware that Marine Service Solutions was not a real company. SMITH also misled a long-time acquaintance in Mississippi into setting up a bank account for MSS, cashing the checks, and funneling most of the proceeds to SMITH. In emails, SMITH posed as the Mississippi man, making it appear as if the Mississippi man was the owner of MSS.
The indictment also alleges that, when questioned by the FBI, SMITH repeatedly lied about MSS and encouraged his acquaintance in Mississippi to stick to a false story about the company.
Vigor terminated SMITH in 2017 after discovering that SMITH had mishandled the Bertholf project. SMITH’s successor discovered the fraud, and Vigor reported the crime to the FBI.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
s._smith_indictment.pdfRepeat Sex Offender Sentenced to Ten Years in Prison for Possession of Images of Child Rape and MolestationRead the Press Release
A 45-year-old Auburn, Washington man who used peer-to-peer software to share more than 2800 images of sexual assaults of children was sentenced to ten years in prison today, announced U.S. Attorney Brian T. Moran. JEREMY JAMES CHERRY, has a 2001 King County Superior Court conviction for rape of a child and attempted possession of child pornography. He served eight years in prison and participated in sex offender treatment. However, in March 2018, a Seattle Police Department Detective identified CHERRY as the owner of a computer that shared more than 2800 images of child pornography between August 2017 and March 2018. At the sentencing hearing U.S. District Judge John C. Coughnour said he was imposing the ten year sentence because of CHERRY’s prior hands-on offense against children.
According to records filed in the case, CHERRY was 27-year-old and acting as an in- home caregiver for three young children when one of them disclosed the sexual molestation. CHERRY pleaded guilty to rape of a child, and to attempted possession of child pornography. He served eight years in prison. CHERRY admitted that after sex offender treatment between 2010 and 2013, and once he completed his community supervision, he began seeking out child pornography again.
CHERRY was identified as part of Operation Broken Heart. Operation Broken Heart resulted in the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide operation conducted by 61 Internet Crimes Against Children (ICAC) task forces. During March, April and May of 2018, the ICAC task forces investigated more the 25,200 complaints of technology-facilitated crimes against children.
The case was investigated by the Seattle Police Department and the Department of Homeland Security Investigations and was prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
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.
Registered Sex Offender Sentenced to Nine Years in Prison for Transporting Images of Child Rape and AbuseRead the Press Release
A former cheerleading coach, who has a prior state conviction for possession of child pornography, was sentenced today in U.S. District Court in Seattle to nine years in prison for transporting child pornography, announced U.S. Attorney Brian T. Moran. LEONARD BERNARD LEWIS, 33, of Seattle, pleaded guilty in February 2019, admitting that he transported images of child rape and abuse on his personal electronic devices when he traveled from Seattle to London on March 1, 2018. U.S. District Judge John C. Coughenour imposed ten years of supervised release to follow the prison term.
According to records filed in the case, LEWIS was traveling to England to continue his career as a cheer coach. When he arrived and attempted to clear customs at Gatwick Airport, a United Kingdom Border Force Officer asked to examine LEWIS’ cell phone. After being given the password, the officer found several images of child pornography. The cell phone, two laptop computers and LEWIS’ PlayStation 4 were seized by law enforcement and LEWIS was detained. LEWIS was sent back to the U.S. the next day, and his electronic devices were delivered to Homeland Security Investigations. Forensic examination of LEWIS’ electronic devices revealed more than 5,000 images and 2,000 video files of child pornography.
The investigation determined that despite his sex offender status, which prohibited him from working with children, LEWIS had been employed at a local gymnastics facility. Between 2016 and 2018, LEWIS was employed as a cheer coach at the gym. LEWIS had used a relative’s Social Security Number so that the facilities’ background check did not reveal LEWIS’ registered sex offender status. LEWIS has been a registered sex offender since 2012 when he was convicted of possession of child pornography.
As Special Assistant United States Attorney Cecelia Gregson wrote in her sentencing memo, despite his earlier conviction LEWIS continued to seek out images of child rape and abuse and “to engage in conduct that undoubtedly supported an industry thriving on the sexual exploitation and misery of children.”
The case was investigated by Homeland Security Investigations and was prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
North Carolina Man Sentenced to Four Years in Prison for Spousal Rape and Assault on Military BaseRead the Press Release
A North Carolina resident, who previously resided on Joint Base Lewis-McChord (JBLM) with his service member spouse has been sentenced to four years in prison and eight years of supervised release for his rape and brutal assault on his estranged wife, announced U.S. Attorney Brian T. Moran. The couple were in the midst of a divorce but residing in the same residence when JIMMY ANTHONY INDARTE, 28, raped and strangled the victim to unconsciousness. When she regained consciousness, he chased her with a butcher knife. Military police were able to intervene and rescue the victim. At the sentencing hearing U.S. District Judge Benjamin H. Settle said “this is one of the most serious crimes that a person can commit.”
According to records filed in the case, in August 2017, INDARTE and his spouse were in the midst of a divorce, in part, because she had discovered INDARTE had tortured and intentionally killed one or more of the couple’s four puppies they had adopted over the previous 12 months. INDARTE had originally claimed the dogs died accidentally. INDARTE’s spouse discovered videos on INDARTE’s phone showing him raping her while she was unconscious, apparently from medications. When she confronted INDARTE about the videos, he choked her into unconsciousness. When she came to, she was able to call 9-1-1. Before law enforcement arrived, INDARTE chased his spouse through the home with a large kitchen knife. The couple’s three-year-old son was present during the assault.
Following the assault and a no contact order, INDARTE tried repeatedly to contact his former spouse in violation of the order and used falsified emails to try to make it appear the former spouse had fabricated information provided to the FBI. INDARTE used threats to try to convince his former spouse to stop cooperating with law enforcement.
The case is being resolved in federal court, because the rape and assault occurred on JBLM. INDARTE was arrested in December 2017 at his father’s residence in High Point, North Carolina. He has been detained since his arrest. INDARTE pleaded guilty to abusive sexual contact in March 2019.
The case was investigated by the FBI and the Army Criminal Investigation Command (CID).
The case was prosecuted by Assistant United States Attorney Grady Leupold.
Registered Sex Offender Sentenced to 14 Years in Prison for Enticing Minors via Social Media PlatformsRead the Press Release
A registered sex offender with two prior child pornography related convictions was sentenced today in U.S. District Court in Tacoma to fourteen years in prison and twenty years of supervised release for enticement of a minor, announced U.S. Attorney Brian T. Moran. PETER JAMES HUFFERD, 47, was on federal supervision living in sex-offender housing in Seattle when law enforcement discovered he was secretly using a cell phone to communicate with minor females via social media. HUFFERD convinced two of the minor females to send him sexually explicit images. At the sentencing hearing, U.S. District Judge Ronald B. Leighton said HUFFERD showed a pattern of criminal conduct that poses “a danger to society.”
According to records filed in the case, HUFFERD had just completed a ten-year prison term in April 2017 when he began federal supervision. HUFFERD was allowed one monitored cellular phone. Beginning no later than October 2017, HUFFERD used an unmonitored cell phone to communicate with minors on SnapChat, Instagram and Tumblr. HUFFERD began relationships with multiple minor females, convincing at least two of them to send him sexually explicit images.
HUFFERD was convicted in 2003 in Clallam County Superior Court of three counts of possession of child pornography and was sentenced to 85 days in custody. At the time law enforcement determined HUFFERD was posing online as a 15-year-old girl to try to get minors to send him sexually explicit images. In 2008, HUFFERD was sentenced to ten years in prison after a father discovered his 12-year-old daughter was chatting online with HUFFERD. HUFFERD was using the same identity of a 15-year-old girl and engaging in sexually explicit talk with the 12-year-old. HUFFERD was encouraging the child to cut herself. A search of HUFFERD’s computer revealed more than 300 sexually explicit images of children.
In the current case, in March 2018, U.S. Probation discovered the unmonitored cell phone in a search of HUFFERD’s sex offender residence. A court-authorized search warrant revealed HUFFERD’s illegal communications via social media.
The case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Brian Werner.
Guilty Plea from Kent Man Who made Multiple Online Threats to KillRead the Press Release
A 27-year-old Kent, Washington, resident pleaded guilty today in U.S. District Court in Seattle to two counts of making interstate threats for his online posts threatening members of President Trump’s family and media figures in Southern California and making threats to bomb synagogues, announced U.S. Attorney Brian T. Moran. CHASE BLISS COLASURDO, was arrested May 1, 2019. Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing for August 23, 2019.
According to the criminal complaint, in March 2019, a member of the public reported to the FBI concerns about Instagram and other social media posts where COLASURDO threatened to execute members of President Donald Trump’s family. Additionally, COLASURDO sent messages to five different media organizations that he was going to execute the family member. COLASURDO posted a photo on Instagram showing a hand with a firearm pointed at the photo of a Trump family member. When initially contacted by law enforcement in March, COLASURDO claimed his social media accounts had been hacked.
Despite his statements that he was not responsible for the posts, COLASURDO continued to make threatening comments, specifically threats to members of the Jewish community. In one post, he wrote it was time to start “bombing synagogues.” Throughout April 2019, COLASURDO sent threatening email messages and online posts to media figures in Southern California using anti-Semitic slurs and threats to kill. As law enforcement continued to track his activity, it became clear he was purchasing various items related to firearms, such as a holster, bulletproof vest, and ammunition. COLASURDO attempted to purchase a firearm but was denied.
When law enforcement served search warrants at COLASURDO’s apartment, they recovered Nazi and Adolph Hitler related items, as well as ammunition, night vision goggles, and a gas mask.
Interstate threats are punishable by up to five years in prison and three years of supervised release.
The case is being investigated by the FBI and U.S. Secret Service in conjunction with an investigation by the Los Angeles Police Department. Significant assistance was provided by the Sound Regional Violent Crimes Task Force. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Operator of Unlicensed Marijuana Distribution Business Sentenced to Prison for Maintaining a Drug Involved Premises and Possession of Oxycodone and Marijuana with Intent to DistributeRead the Press Release
The 28-year-old operator of a Rainier Valley marijuana business was sentenced today in U.S. District Court in Seattle to 15 months in prison and three years of supervised release for operating a drug involved premises, and possession of oxycodone and marijuana with intent to distribute, announced U.S. Attorney Brian T. Moran. KELED ALI, of Seattle was arrested in October 2018, and pleaded guilty in January 2019. ATF and Seattle Police Department investigated drug activity and a gang related shootings near ‘One Stop,’ a marijuana distribution business in the 5300 block of Rainier Avenue South. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said, “When you run an illegal business you become a much larger target to people that want to take your drugs or your profits…. It attracts a criminal element to the community.”
“This defendant intentionally designed a business to undermine and thwart the State’s marijuana regulatory system – and because of that the business attracted violent crime and violent individuals,” said U.S. Attorney Brian T. Moran. “Even after the storefront was shut down, he persisted in selling not just marijuana but oxycodone – adding to the opioid epidemic. Federal law enforcement continues to target those who mix drug dealing and violence.”
According to records filed in the case, law enforcement became aware of gang activity related to the marijuana distribution business following a fatal shooting in December 2017 and a drive-by shooting in March 2018. ‘One Stop’ was not a licensed marijuana distributor under state or federal law. When undercover officers sought to investigate activities at the storefront, they were told marijuana could only be sold to customers introduced by other “members of their club.” On March 5, 2018, law enforcement executed a court authorized search warrant at the store. From a safe in the store officers recovered a 9 mm semi-automatic firearm, and they seized more than three pounds of marijuana from the store.
In October 2018, ALI was arrested after law enforcement observed him make numerous drug sales. In ALI’s car, law enforcement found more than two pounds of marijuana and 45 oxycodone pills packaged for resale.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Violent Pimp Sentenced to 23 Years in Prison for Sex TraffickingRead the Press Release
A Seattle area man with a prior history of promoting prostitution was sentenced today in U.S. District Court in Seattle to 276 months in prison and 15 years of supervised release for five federal felonies, including sex trafficking of a minor through force, fraud, and coercion, announced U.S. Attorney Brian T. Moran. AUBREY TAYLOR, 32, also known as “Uno,” was convicted March 6, 2019, following an eight-day jury trial. During the trial, multiple victims testified about how TAYLOR used threats, violence, sexual assault, and manipulation to control them and force them to engage in commercial sex acts in cities in Washington, Idaho, and Nevada and then give him the money they earned. At the sentencing hearing, U.S. District Judge Robert S. Lasnik said that Taylor “is intelligent and can be charming, and this, combined with [his] use of violence and threats gave [him] effective control over vulnerable people. But today is the judgment day.”
“This sentence should send a strong message that those who use physical and emotional coercion to force and manipulate victims into sexual slavery will be held accountable for their crimes,” said U.S. Attorney Moran. “This defendant put these victims in danger every day he used them – all to satisfy his own greed.”
According to records filed in the case and testimony at trial, TAYLOR took one seventeen-year-old young victim to Wenatchee in October 2014 and sexually assaulted her and forced her into prostitution. Three other victims testified that TAYLOR controlled them with mental and physical abuse or promises of love and a better life. The women were transported as far away as Las Vegas to engage in commercial sex acts. TAYLOR controlled one victim by rationing doses of heroin and using her addiction to keep her working as a prostitute. TAYLOR directed other victims to get tattoos of his name and nicknames as a form of branding and to demonstrate his control over them.
TAYLOR violently assaulted the women he controlled on multiple occasions. When law enforcement or medical professionals tried to get the victims to cooperate with law enforcement, they expressed their fear of TAYLOR. Text messages seized in the case reveal TAYLOR’s attempts to recruit numerous additional women and his use of threats and violence.
“This case demonstrates the great work that can be accomplished when agencies work together,” said Special Agent in Charge Raymond Duda of the FBI’s Seattle Field Office. “The task force model and partnerships across the state resulted in the incarceration of a violent predator. Taking this subject off the street significantly contributes to keeping the community safe.”
“Human trafficking is a serious violent crime that destroys lives and damages communities. We are deeply proud of the survivors who came forward and testified bravely in this case and we are equally proud of Kent Police Department’s investigators who worked tirelessly to put an end to this cycle of exploitation and abuse. It is our responsibility to hold traffickers accountable, and we will continue the fight to end this form of modern-day slavery,” said Kent Police Commander Andy Grove.
The case was investigated by the FBI, the City of Kent Police Department, and the Snohomish County Sheriff’s Office—working together on the North Sound Child Exploitation Task Force. The task force relied on strong partnerships with and valuable contributions by the City of Auburn Police Department, the Bellingham Police Department, and the Wenatchee Police Department.
The case was prosecuted by Assistant United States Attorneys Kate Crisham and Rebecca Cohen.
Port Angeles, Washington, Man Arrested for 2016 Laser Pointer Incident with Coast Guard HelicopterRead the Press Release
A 33-year-old Port Angeles, Washington, man was arrested this morning in connection with a September 26, 2016, laser pointer strike on a U.S. Coast Guard helicopter, announced U.S. Attorney Brian T. Moran. RANDALL MUCK was indicted by a grand jury last week, charging him with aiming a laser pointer at an aircraft and making false statements to government agents. MUCK will make his initial appearance in U.S. District Court in Tacoma at 2:30 today.
The indictment alleges that on the evening of September 26, 2016, MUCK pointed a laser beam at a Coast Guard helicopter. According to reports of the incident, the MH-65 Dolphin helicopter was descending when it was hit by a laser that originated near Fourth and Hill Streets in Port Angeles. Laser light can cause temporary loss of vision and force an air crew to abort its mission. In this incident, no one suffered permanent damage, but the crew had to return to base and be assessed medically before returning to duty. Helicopter crews from Whidbey Island and Oregon had to cover the Port Angeles area of responsibility while the air crew was being cleared to return for duty.
The subsequent investigation identified MUCK as a suspect.
The indictment also alleges that on May 3, 2018, when questioned by government agents, MUCK made false statements to the FBI claiming that he did not see the Coast Guard helicopter in the sky on September 26, 2016.
Both counts are punishable by up to five years in prison and a $250,000 fine.
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 U.S. Coast Guard Investigative Services and the FBI. The case is being prosecuted by Assistant United States Attorneys Grady Leupold and André Peñalver.
Former Washington State Bank CEO Sentenced to One Year in Prison for Multi-Year Tax Fraud of more than $865,000Read the Press Release
The former Chief Executive Officer of a Pacific Northwest community bank was sentenced today in U.S. District Court in Wisconsin to one year and a day in prison and one year of supervised release and a $150,000 fine for filing a false tax return, announced U.S. Attorney Brian T. Moran. Between 2010 and 2016, VICTOR KARPIAK, 64, now of La Crosse, Wisconsin, failed to report more than $2.3 million in income on his taxes. KARPIAK previously served as President and CEO of First Savings Bank Northwest based in Renton, Washington. He retired in 2013 and moved from the Seattle area. KARPIAK was charged in the Western District Washington, but chose to have the case resolved near his new home in Wisconsin. U.S. District Judge William M. Conley imposed the sentence.
According to records filed in the case, between 2010 and 2016, KARPIAK served as a trustee and consultant for a woman who was the beneficiary of a family and a marital trust. KARPIAK became a trustee because the woman’s late husband was a significant customer for the bank. Over those years, KARPIAK paid himself fees of $3,265,072 but on his taxes KARPIAK reported less than a third of that income ($943,322). The tax loss on more than $2,321,750 in income is $867,540. KARPIAK will pay $867,540 to the IRS as well as any interest or civil penalties the IRS imposes in the case. The interest alone in this case could total more than $143,647.
In their sentencing memo, prosecutors noted that that KARPIAK engaged in the tax fraud even as he earned significant salary and benefits as the bank CEO. “Our system of government relies on individuals --- particularly high-earners such as Karpiak --- to pay a modest portion of earnings toward communal projects and programs… (T)he true victim of Karpiak’s greed remains the public and his fellow taxpayers, from whom he effectively stole,” prosecutors wrote in their sentencing memo. Now with four homes across two states, multiple luxury vehicles and a pension alone of more than $150,000 annually, KARPIAK did not need to cheat on his taxes to make ends meet. As part of his sentencing hearing, KARPIAK made a payment on his tax obligation of more than $1 million.
“Today Mr. Karpiak was held accountable for willfully and intentionally violating his legal duty to declare and pay his taxes,” said Justin Campbell, IRS Criminal Investigation Special Agent in Charge, Seattle Field Office. “The U.S. tax system works because honest law-abiding taxpayers know that everyone, including corporate officers, are paying their fair share.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorneys Steven Masada of the Western District of Washington and Elizabeth Altman of the Western District of Wisconsin.
U.S. Attorney Recognizes Police Week in Speech to Washington State Homicide DetectivesRead the Press Release
U.S. Attorney Brian T. Moran recognized the service and sacrifice of federal, state, local, and tribal police officers today in a speech to Washington State homicide investigators at the Suquamish Clearwater Casino. Today is National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The day is commemorated as part of National Police Week, which is being observed Sunday, May 12 to Saturday, May 18, 2019.
“Police officers never know what dangers the next call will bring,” U.S. Attorney Moran said. “You always need to be at your best, especially when other people are at their worst. You are the guardians of the rule of law. Because of you, justice is brought to injustice.”
U.S. Attorney Moran noted that nationwide there was a seven percent spike in violent crime between 2014 and 2016 – with an 11 percent increase in the murder rate in 2015. These were the largest annual increases in violent crime since 1968. Because of that spike, the Department of Justice responded in 2017 with increased criminal filings against violent crime defendants, and increased those filings by another 15 percent in 2018. For 2018, there was a statistical decline in violent crime, indicating the increased filings are getting violent criminals off the street. U.S. Attorney Moran said his priorities include violent criminals involved in human trafficking and drug smuggling and distribution.
The success does not come without sacrifice. U.S. Attorney Moran noted that Washington law enforcement has had four line of duty deaths in the last 18 months. Just last month Cowlitz County Deputy Sheriff Justin DeRosier was shot and killed while responding to a report of a blocking vehicle. One month earlier, Kittitas County Deputy Ryan Thompson was killed responding to a road rage suspect. In July 2018, Kent Police Officer Diego Moreno was killed responding to reports of gunfire outside a restaurant. Officer Moreno was struck and killed after attempting to stop a fleeing vehicle. And in January 2018, Pierce County Deputy Sheriff Daniel McCartney was killed after responding to a 9-1-1 call late at night in Frederickson.
Nationwide, according to statistics reported to the FBI, 106 law enforcement officers were killed in line-of-duty incidents in 2018.
In October 1962, Congress enacted a joint resolution, which the President signed, declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
At a candlelight vigil on the evening of Monday, May 13, 2019, the names of Deputy McCartney and Officer Moreno were added to the National Law Enforcement Officers Memorial in Washington D.C.
Former Postal Worker Sentenced to Fourteen Months in Prison for Stealing Electronics from Priority Mail Processing FacilityRead the Press Release
A former U.S. Postal Service employee was sentenced today in U.S. District Court in Seattle to fourteen months in prison for stealing electronic devices from mail shipments and directing others to sell the stolen devices at pawn shops and on online marketplaces. JAMIE GUHLKE, 56, of Federal Way, Washington was indicted for theft of mail in April 2018 and pleaded guilty in November 2018. At the sentencing hearing U.S. District Judge James L. Robart said that GUHLKE’s crimes were a violation of her “position of trust” as a government employee.
According to records filed in the case, in 2015, while still employed as a mail handler at the United States Postal Service Priority Mail Annex in Kent, Washington, GUHLKE stole as many as 44 packages mailed by Quick Ship Electronics, Inc., a Woodinville-based electronics distributor, to customers across the country. The packages contained digital devices, including Apple iPads and Samsung Galaxy tablets. The thefts interfered with operations at the Priority Mail Annex, which is responsible for processing the vast majority of Priority Mail that originates in Washington State. Law enforcement traced the stolen devices to GUHLKE through records obtained from online marketplaces, like ‘OfferUp,’ ‘Craigslist,’ and ‘eBay,” as well as pawnshops. Those records showed that GUHLKE used a network of other people to re-sell the devices that she had stolen.
Law enforcement agents stopped GUHLKE’s car as she left work on August 26, 2015, and saw a Priority Mail package containing a stolen device on the passenger side of her car. In response, GUHLKE tried to flee, ignored commands and stomped on a police officer’s foot. After her employment at USPS was suspended, GUHLKE filed an unsuccessful claim for unemployment benefits, in which she denied the thefts and claimed that she had been set up by other USPS employees. As part of GUHLKE’s sentence, Judge Robart ordered her to pay $15,458 in restitution to Quick Ship Electronics.
“The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination,” U.S. Postal Service Office of Inspector General, Western Area Field Office Special Agent-in-Charge John D. Masters said. “Unfortunately, Ms. Gulhke decided to betray the public’s trust and steal mail from postal customers. Today’s sentence demonstrates that USPS OIG Special Agents and the U.S. Attorney’s Office are committed to safeguarding U.S. Mail and to hold accountable any Postal Service employee who steals mail.”
The case was investigated by the U.S. Postal Service - Office of Inspector General (USPS-OIG) and is being prosecuted by Assistant United States Attorney Siddharth Velamoor.
Kent Man Who Made Multiple Online Threats to Kill Arrested on Federal ChargesRead the Press Release
A 27-year-old Kent, Washington resident is in custody charged with two counts of making interstate threats for his online posts regarding members of President Trump’s family as well as ongoing threats to bomb synagogues and threats made against media figures in Southern California, announced U.S. Attorney Brian T. Moran. CHASE BLISS COLASURDO, was arrested May 1, 2019 and will make his initial appearance in U.S. District Court in Seattle at 2:00 PM Thursday May 2, 2019.
According to the criminal complaint, in March 2019, a member of the public reported to the FBI concerns about Instagram and other social media posts where COLASURDO threatened to execute members of President Donald Trump’s family. Additionally, COLASURDO sent messages to five different media organizations that he was going to execute the family member. COLASURDO posted a photo on Instagram showing a hand with a firearm pointed at the photo of a Trump family member. When initially contacted by law enforcement in March, COLASURDO claimed his social media accounts had been hacked.
Despite his statements that he was not responsible for the posts, COLASURDO continued to make threatening comments, specifically threats to members of the Jewish community. In one post he wrote it was time to start “bombing synagogues.” As law enforcement continued to track his activity, it became clear he was purchasing various items related to firearms such as a holster, bulletproof vest and ammunition. COLASURDO attempted to purchase a firearm but was denied.
FBI agents arrested COLASURDO without incident about 11:30 AM on May 1, 2019.
The charges contained in the complaint are allegations. A defendant is presumed innocent unless and until the charges are proven in court beyond a reasonable doubt.
Interstate threats are punishable by up to five years in prison and three of supervised release.
The case is being investigated by the FBI in conjunction with an investigation by the Los Angles Police Department. The case in the Western District of Washington is being prosecuted by Assistant United States Attorney Todd Greenberg.
A Dozen Western Washington Indian Tribes Awarded Grants to Improve Services for Victims of CrimeRead the Press Release
A dozen tribes in the Western District of Washington have been awarded nearly $6 million in Department of Justice grants to improve their services for victims of crime, announced U.S. Attorney Brian T. Moran. The grants range from $85,000 for the Hoh Tribe to $779,488 for the Squaxin Island Tribe based on applications submitted by the tribes.
“These grant awards cover needs identified by the tribes themselves,” said U.S. Attorney Moran. “Whether it is providing emergency services for families in crisis, providing skilled interviewers for child abuse victims or providing a secure domestic violence shelter, each of these projects reflects the needs and culture of our tribal partners.”
“American Indian and Alaska Native communities face extensive public safety challenges, but through creative approaches that combine traditional methods with innovative solutions, they are demonstrating their determination to meet the needs of victims in their communities,” said Principal Deputy Assistant Attorney General Matt M. Dummermuth. “These grants, part of historic levels of funding awarded by the Department of Justice to American Indian and Alaska Native communities, will provide significant resources to bring critical services to those who suffer the effects of crime and violence.”
The twelve grants to Western Washington tribes include:
- Squaxin Island Tribe - $779,488 – to expand existing services and outreach to victims of domestic violence, sexual assault, stalking, sex trafficking and dating violence.
- Skokomish Tribe - $446,234 – to expand current programs to better serve elder victims.
- Jamestown S’Klallam Tribe - $420,119 – to establish a satellite Children’s Advocacy Center to increase accessibility to culturally relevant services including trained interviewers.
- Nooksack Tribe - $677,152 – to expand existing services with a needs assessment and strategic plan to implement a responsive Victim Services Program for victims of domestic violence, sexual assault, dating violence and elder abuse and neglect.
- Lummi Nation - $574,361 – to maintain a fully staffed, safe, secure and confidential shelter serving victims of domestic violence, sexual assault and elder abuse.
- Muckleshoot Tribe - $650,000 – to expand victim services with additional trained staff for crisis counseling and referrals to trauma counseling.
- Quinault Nation - $168,631 – to expand services provided by the Healthy Families Program with a satellite office and services to victims in crisis.
- Chehalis Confederated Tribes – $719,741 – to create a Crime Victims Service Trauma Center where victims can receive services in a centralized and non-threatening facility.
- Hoh Tribe - $85,000 – to conduct a community needs assessment and complete a strategic plan with the goal of developing a Victim Services Program.
- Lower Elwha Klallam Tribe - $556,556 – to serve the needs of all crime victims with particular focus on providing pediatric forensic exams for child victims.
- Puyallup Tribe - $407,408 – to expand existing services by strengthening the continuum of care for homeless crime victims and or victims with alcohol and substance abuse issues.
- Port Gamble S’Klallam Tribe - $420,119 – to support victims of crime with a focus on service to victims with disabilities and those who have been victimized multiple times, using services that are trauma-informed and culturally rooted in tradition.
“American Indian and Alaska Native crime victims continue to face challenges in accessing vital services and resources needed to help survivors address their trauma and navigate a complex system,” said OVC Director Darlene Hutchinson. “The Justice Department has made it a priority to partner with tribes to help victims and their families rebuild their lives in the aftermath of violence.”
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
Drug Cartel Leader Sentenced to 20 Years in Prison for Distributing more than 50 Kilos of MethamphetamineRead the Press Release
The leader of a dangerous drug distribution ring, who continued to run his drug operation after fleeing to Mexico, was sentenced today in U.S. District Court in Tacoma to 20 years in prison, announced U.S. Attorney Brian T. Moran. As early as 2010, JESUS ENRIQUE PALOMERA, 39, conspired with others to distribute methamphetamine in the Tacoma area. PALOMERA not only sold drugs, he sold guns as well – arranging the sale of nine guns in one day to an undercover law enforcement agent. At the sentencing hearing U.S. District Judge Robert J. Bryan said it was one of the largest drug conspiracies he had seen and “the threats of violence here were as bad as I have seen.”
“This defendant was a prolific drug dealer smuggling massive amounts of methamphetamine throughout the West Coast, and very specifically in the Tacoma area,” said U.S. Attorney Moran. “His hallmark was violence and threats of violence, not only against co-conspirators, but against their children, parents and loved ones. This prison sentence puts an end to his drug ring powered by fear.”
According to records filed in the case, following the gun sales in November 2011, PALOMERA fled to Mexico after some of his coconspirators were arrested. PALOMERA continued to run his drug operation from across the border, sometimes communicating with customers in Pierce County via Facebook. PALOMERA frequently threatened those working for him and their family members if they did not obey him. The threats were via Facebook and instant messaging.
PALOMERA continued to be involved in drug distribution in 2014 and 2015. At PALOMERA’s direction more than 50 kilos of methamphetamine were transported from Mexico and up through California and Oregon to Washington. PALOMERA’s threats of violence were made very real when one of the coconspirators went missing and is presumed dead after a load was seized by law enforcement. Sentencing documents reveal that PALOMERA threatened to kill this coconspirator during conversations with other coconspirators, and a number of people saw text messages and photos that indicated PALOMERA directed the beating and killing of the coconspirator
PALOMERA was taken into custody in Mexico in June 2015, and was extradited to the United States in July 2016. In November 2017, he pleaded guilty to two counts of conspiracy to distribute methamphetamine and being an alien in possession of a firearm.
PALOMERA’s coconspirator, James E. Roberts, was sentenced to ten years in prison in December 2015. Roberts owned an auto body shop in Lakewood, Washington, that was central to the drug trafficking ring. Several other conspirators have been sentenced, including:
- Lucas Manglona, who was sentenced to ten years in prison in February 2016.
- Tisha A. Janzen, who was sentenced to ten years in prison in July 2016.
- Daniel R. Vasquez, who was sentenced to 70 months in prison in May 2016.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Lakewood Police Department, the Washington Department of Corrections, the Los Angeles Police Department, the Siskiyou County Drug Task Force, the California Highway Patrol, the Oregon State Police, and the FBI. The case is being prosecuted by Assistant United States Attorneys Michael Dion and Amy Jaquette.
Owners of Northwest’s Largest Electronics Recycling Firm Sentenced to Prison for Wire Fraud ConspiracyRead the Press Release
The owners and Chief Executive Officers of Total Reclaim, the Northwest’s largest recycler of electronic waste, were sentenced today in U.S. District Court in Seattle to 28 months in prison and three years of supervised release for conspiracy to commit wire fraud. At the sentencing hearing, U.S. District Judge Richard A. Jones noted that with the men’s conduct could have impacted generations with mercury poisoning. “Your conduct spanned seven years and only stopped because you were caught. You had multiple opportunities to say enough is enough,” Judge Jones said.
CRAIG LORCH, 61, of Seattle, and JEFF ZIRKLE, 55, of Bonney Lake, Washington, earned millions of dollars through Total Reclaim by promising to recycle safely electronic products such as flat screen monitors. In marketing Total Reclaim’s services, LORCH and ZIRKLE warned that the products contained hazardous materials that can cause serious health conditions if processed in unsafe conditions such as those that exist in developing countries in Asia. LORCH and ZIRKLE promised customers that Total Reclaim would not export electronic waste to developing countries. But, in fact, the defendants secretly caused over 8 million pounds of mercury-containing flat screen monitors to be exported to Hong Kong, where they were demolished in an environmentally unsafe manor.
“Motivated by greed, these defendants betrayed every pledge they made to be good environmental stewards,” said First Assistant U.S. Attorney Tessa M. Gorman. “They protected their salaries of more than a million dollars a year, while harming the environment and risking the lives of disadvantaged Chinese workers who struggle daily just to support their families”
Total Reclaim was the biggest participant in “E-Cycle Washington,” a program created by the Washington legislature to provide for the safe recycling of hazardous electronic products. Under E-Cycle Washington, consumers drop off used electronics at stations such as Goodwill Industries free of charge. The program then paid Total Reclaim to recycle the electronics according to Washington Department of Ecology standards. Those standards bar recyclers from sending hazardous electronics products overseas.
According to records filed in the case, Total Reclaim promoted itself as a responsible electronics recycler. Total Reclaim’s website stated that “our commitment to environmental responsibility is at the core of everything Total Reclaim does.” Total Reclaim signed a public pledge in which it promised not to “allow the export of hazardous E-waste we handle to be exported” to developing countries, where workers are known to disassemble electronics, which contain dangerous materials such as mercury, without safety precautions. Total Reclaim signed agreements with customers, such as the City of Seattle, in which the customers agreed to pay Total Reclaim to recycle electronics in accordance with these standards. According to court filings, it would have cost Total Reclaim about $2.6 million to appropriately dispose of the monitors.
In 2008, contrary to its promises to the public, Total Reclaim began secretly exporting flat screen monitors to Hong Kong to avoid the cost of safely recycling the monitors in the United States. Flat screen monitors are known to contain mercury, which can cause organ damage, mental impairment, and other serious health consequences to people exposed to the material. LORCH and ZIRKLE caused at least 8.3 million pounds of monitors to be shipped to Hong Kong between 2008 and 2015. To prevent customers and auditors from learning of the practice, LORCH and ZIRKLE falsified documents, made false statements to customers, and stored the monitors at an undisclosed facility while they awaited shipping.
Defendants’ fraud was discovered in 2014 by a non-governmental organization known as the Basel Action Network (“BAN”). BAN, which studies the export of electronic waste, placed electronic trackers on flat screen monitors and deposited them for recycling. The trackers showed that the monitors were collected by Total Reclaim and then exported to Hong Kong. When BAN representatives followed the tracking devices to Hong Kong, they discovered that the monitors were being dismantled by laborers who smashed the monitors apart without any precautions to protect the workers or the environment. After BAN notified LORCH and ZIRKLE of its findings, LORCH and ZIRKLE tried to cover up their fraud by altering hundreds of shipping records.
LORCH and ZIRKLE have agreed to pay $945,663 in restitution.
As prosecutors wrote in their sentencing memorandum, this case is more than a financial fraud. “Lorch and Zirkle’s crime has all the hallmarks of a classic financial fraud. It includes lies to customers and auditors, the falsification of hundreds of documents, millions of dollars in ill-gotten gains, and a cover-up after the fraud was discovered. But this offense stands apart from the typical fraud because the greatest damage is not measured in dollars and cents. Rather, it lies in the health consequences that resulted from defendants’ calculated choice to prioritize their own economic well-being over the health of faceless foreign workers.”
The case was investigated by the Environmental Protection Agency Criminal Investigation Division (EPA-CID). The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Former Online Brokerage Employee Pleads Guilty to Wire FraudRead the Press Release
A former Seattle employee of the online brokerage firm ShareBuilder, pleaded guilty today in U.S. District Court in Seattle to wire fraud in connection with a kick-back scheme involving one of ShareBuilder’s affiliates, announced U.S. Attorney Brian T. Moran. AUGUSTINE OLOBIA, 49, now of Hurst, Texas, worked at ShareBuilder in Seattle from 1999 to 2013. In his plea agreement he admits he falsified data and approved payment of invoices that inflated the number of customers who opened trading accounts after viewing and clicking on links placed in ads by Texas-based affiliate Tega Creative. The inflated numbers increased revenue to Tega Creative, and OLOBIA was secretly paid about half the net income Tega Creative received. The loss to ShareBuilder’s owner, Capital One, is estimated at more than $1.5 million.
According to the facts admitted in the plea agreement, OLOBIA was responsible for managing the third party vendors who advertised ShareBuilder’s services. Those vendors were paid on a “bounty system.” ShareBuilder paid Tega Creative $40-$55 per account that was opened after a customer came to ShareBuilder via Tega Creative’s advertisement. Beginning in about 2008, OLOBIA executed a scheme to inflate the numbers of accounts that were attributable to Tega Creative. OLOBIA manipulated data in ShareBuilder’s computer system to vastly inflate the number of account openings attributable to Tega Creative’s marketing, and then approved invoices issued by Tega Creative that were based on the inflated numbers. For example in 2007, Tega Creative was credited with about 2,000 account openings. In 2008, as a result of the fraud, Tega Creative with credited with 10,000 account openings. OLOBIA was secretly paid about one-third of the gross monthly payment from ShareBuilder to Tega Creative.
The scheme was uncovered when OLOBIA left ShareBuilder, and other employees tried to reconcile the number of accounts attributed to Tega Creative. In January 2014, OLOBIA prepared a spreadsheet that tried to further the fraud and reconcile the accounts. OLOBIA provided the spreadsheet to an individual at Tega Creative who emailed it on to ShareBuilder. However, the spreadsheet did not end the company’s investigation and the case was referred to law enforcement.
U.S. District Judge Robert S. Lasnik scheduled sentencing for July 12, 2019. Prosecutors have agreed to recommend a sentence of no more than 18 months in prison. Judge Lasnik is not bound by the recommendation and can impose any sentence up to the maximum of twenty years in prison.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Michael Dion.
Chehalis Tribal Member Sentenced to Prison for Abusive Sexual ContactRead the Press Release
A 31-year-old Chehalis Tribes member was sentenced today in U.S. District Court in Tacoma to 21-months in prison and five years of supervised release for abusive sexual contact, announced U.S. Attorney Brian T. Moran. ANTHONY TODD YOUCKTON, JR, pleaded guilty October 4, 2018 admitting he sexually molested a woman who was incapacitated by alcohol in July 2016. At the sentencing hearing, U.S. District Judge Ronald B. Leighton said the assault was a tragic event in the victim’s life.
According to records filed in the case, YOUCKTON and a female friend gave the intoxicated woman a ride home after a night of drinking. Because the woman was drunk, the two placed her in her bed and left the home. YOUCKTON returned to the woman’s home later in the overnight hours, got into the woman’s bed and molested her. When she awoke the next morning and found YOUCKTON in her bed, she called the tribal police. YOUCKTON was charged federally and arrested on February 13, 2018.
In asking for a 21-month term of imprisonment, prosecutors noted the devastating and life-long impact on the victim from the trauma of sexual abuse. Prosecutors asked for a 5-year-term of supervised release following the prison term, because of YOUCKTON’s history of drug and alcohol abuse.
The case was prosecuted in federal court because the crime occurred on tribal land involving a tribal defendant.
The case was investigated by the Chehalis Tribal Police and the FBI. The case was prosecuted by Assistant United States Attorneys J. Tate London and Rebecca Cohen. Both attorneys serve as Tribal Liaisons for the U.S. Attorney’s Office.
Olympia, Washington Man with Prior Conviction for Possessing Images of Child Rape and Abuse Sentenced to 48 Months in PrisonRead the Press Release
A 60-year-old Olympia, Washington resident was sentenced today in U.S. District Court in Tacoma to 48 months in prison and a lifetime of supervised release for possessing images of child sexual abuse, announced U.S. Attorney Brian T. Moran. DONALD A. DELATEUR was arrested in May 2018, as part of Operation Broken Heart – an investigation into peer-to–peer file sharing of images of child rape and abuse. A court-authorized search of DELATEUR’s electronic devices revealed they contained images of children being raped and sexually abused. At the sentencing hearing U.S. District Judge Benjamin H. Settle said “It is difficult to overstate the seriousness” of child pornography offenses. The victims of these offenses suffer their own “life sentence.”
“Victims of child sexual abuse, whose worst moments are video recorded and shared over the internet, are re-victimized each and every time an offender views those images or videos,” said U.S. Attorney Brian T. Moran.
In 2005, DELATEUR was convicted in Thurston County Superior Court of possessing child pornography. In 2015, DELATEUR was again contacted by federal investigators after his internet protocol (IP) address came up in an investigation of peer-to-peer file sharing of child pornography. However, in that instance, DELATEUR had been able to scrub his devices of images of child rape and molestation. At the time, DELATEUR was warned that if he continued his file sharing activities, he could face federal prison time. In 2018, his IP address was again linked to the trading of child pornography. This time the forensic examination of his devices uncovered the images of child sexual abuse.
DELATEUR pleaded guilty in January 2019.
Operation Broken Heart resulted in the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide operation conducted by 61 Internet Crimes Against Children (ICAC) task forces. During March, April and May of 2018, the ICAC task forces investigated more the 25,200 complaints of technology-facilitated crimes against children.
This investigation was led by Homeland Security Investigations as part of the Seattle-area ICAC. The case was prosecuted by Assistant United States Attorney Matthew Hampton.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Vancouver, Washington Man Sentenced to Prison for Scheme to Claim Disability Benefits while Working under a False IdentityRead the Press Release
A former engineer employed with technology manufacturing companies in the Vancouver, Washington area was sentenced today in U.S. District Court in Tacoma to 27 months in prison for his nearly twenty-year scheme to collect disability benefits under his own identity while working under a false identity, announced U.S. Attorney Brian T. Moran. STEVEN LYNN ROSS, 67, stole $368,458 in government benefits between 2001 and 2017. ROSS possessed identity documents he had fraudulently obtained in the names of children who died in the 1950s and 1960s. ROSS used the stolen identities to obtain identity documents in the false names as early as 1987. At today’s sentencing hearing U.S. District Judge Benjamin H. Settle imposed an additional $20,000 fine, saying, “Our government depends on the honesty of its citizens to work…. The victims here are future generations… his daughters and grandchildren will be paying.”
“By taking this money, the defendant stole, month after month and year after year, from government programs that are stretched to the limit, where every dollar is vital to provide for the community’s most vulnerable,” said U.S. Attorney Brian T. Moran. “These crimes have a corrosive effect on the public’s faith that benefit programs can work as intended. When people lie to obtain benefits, agencies must use their limited resources to detect and investigate fraud, instead of helping the truly deserving.”
According to records filed in the case, in 1987 ROSS assumed the identities of at least two deceased children in order to apply for Social Security numbers in their names. One of the children had died in a car accident as a toddler, the other died in a plane crash in 1968 at age thirteen. ROSS used these identities in various ways, obtaining drivers licenses, bank accounts and passports in different names. In 2001, ROSS began collecting Social Security Disability payments in his true name, saying he was unable to work due to physical ailments. In fact, at the same time that he was collecting disability payments, ROSS continued to work under one of the identities he had stolen. In this way, ROSS collected more than $360,000 in disability payments even though he was able to work and therefore not disabled under program rules. ROSS even used his false identities as “references” vouching for his disabled status in his submissions to the Social Security Administration.
The Washington State Department of Licensing began investigating when facial recognition software flagged that ROSS’s image appeared in more than one driver’s license photo. The case was turned over to the Social Security Office of Inspector General (SSA-OIG) and U.S. State Department Diplomatic Security Service (DSS). The DSS determined that ROSS had obtained passports in his own name as well as the names of three deceased children, and that all four passports contain ROSS’ picture. Between 1998 and 2011, ROSS traveled out of the country 22 times with one of the stolen identities, even as he also traveled internationally using his own name and passport as well.
ROSS pleaded guilty on January 15, 2019 to theft of public funds and aggravated identity theft. He is in the process of paying restitution of $368,458 and now will be responsible for the $20,000 fine as well. Judge Settle imposed three years of supervised release.
The case was investigated by the Social Security Office of Inspector General (SSA-OIG), the U.S. Department of State Diplomatic Security Service (DSS), and the Washington State Department of Licensing License Integrity Unit (DOL/LIU).
The case is being prosecuted by Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute benefit fraud cases in federal court.
Owner of Vancouver, Washington Precious Metals Firm Sentenced to Prison for Wire FraudRead the Press Release
A Vancouver, Washington, business owner who stole from later clients to pay off earlier ones in the style of a Ponzi scheme was sentenced today in U.S. District Court in Tacoma to four years in prison, announced U.S. Attorney Brian T. Moran. AARON MICHAEL SCOTT, 40, of Portland, Oregon, was indicted in October 2018 following state and federal investigations of his internet precious metals business, Blue Moon Coins. SCOTT began defrauding silver and gold purchasers as early as October 2013 and continued until Blue Moon Coins was shuttered by the Washington State Department of Financial Services in April 2014. At today’s sentencing hearing, U.S. District Judge Ronald B. Leighton said, “White collar crime is under-punished in the country. Drug addiction and white collar crime are two sides of a press that will destroy the fabric of society.”
According to records filed in the case, between October 2013 and April 2014, SCOTT repeatedly accepted customer money for the purchase of precious metals and coins and then used the money for his personal, company, and hobby expenses. SCOTT represented to customers that the money would be used immediately to purchase the coins and metals, but, instead, it was used for expenses or to fulfill earlier customer orders in the form of a Ponzi scheme. When customers complained about the delay in receiving their items, SCOTT used a plethora of excuses such as: weather delays; a supplier had gone bankrupt; a corporate buyout; ice and snow; delayed armored truck delivery; and a bad flu season.
In 2015, SCOTT declared bankruptcy revealing that he had a web of businesses involved in activities, such as producing rap albums and custom jewelry, including gold teeth or “grills.” During the fraud scheme, SCOTT owned a Maserati and a Porsche but transferred ownership of the luxury cars before the bankruptcy filing.
In all more than 139 customers were defrauded of more than $1.4 million. Losses to individual investors range from just over $2,000 to more than $154,000.
The case was investigated by the FBI, Vancouver Police Department and the U.S. Commodities Futures Trading Commission (CFTC). The CFTC has filed a civil enforcement action against SCOTT and Blue Moon Coins seeking restitution for the victims and a permanent registration and trading ban.
The case is being prosecuted by Assistant United States Attorney David Reese Jennings.
Repeat Sex Offender Sentenced to Ten Years in Prison for Possession of Images of Child Rape and MolestationRead the Press Release
A repeat federal felon, with prior state convictions for child molestation and child rape, was sentenced today in U.S. District Court in Seattle to ten years in prison for access with intent to view child pornography, announced U.S. Attorney Brian T. Moran. BRIAN KEVIN RUBENAKER, 59, of Everett, Washington, was on federal supervision following a nearly 13-year sentence for possession of child pornography when he was linked to a laptop computer hidden at another offender’s residence. Both men, convicted sex offenders, had their supervision revoked and were charged with new child pornography possession crimes. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez also imposed ten years of supervised release to follow his prison term.
“This defendant, already sent to state prison in 1998 for molestation and sexual abuse of minors, now faces a second significant federal sentence for acting on his sexual attraction to children,” said U.S. Attorney Brian T. Moran. “Those who collect and share images and videos of children being raped and tortured feed a market that thrives on the sexual abuse of children.”
According to records filed in the case, in October 2018, two federal probation officers made an unannounced visit to the Everett home of sex offender Mark Dreblow who was also on federal supervision. One of the probation officers noticed wires coming from a couch cushion. Under the cushion was a laptop computer, which Dreblow said belonged to RUBENAKER. Dreblow admitted the two men shared the computer and admitted it contained images of child sex abuse and exploitation. A forensic examination of the computer determined it contained multiple images of children being abused and exploited.
In 1998, RUBENAKER was convicted in Washington Superior Court of child molestation and rape of a child. In 2006, RUBENAKER was sentenced in federal court to nearly 13 years in prison for possession of child pornography. He was released in April 2016 on three years of supervised release. RUBENAKER was arrested in December 2018 for conspiracy to possess child pornography and pleaded guilty to access with intent to view child pornography in January 2019. Because of his status as a repeat offender, RUBENAKER was subject to a 10-year mandatory minimum sentence.
The case was investigated by Homeland Security Investigations with assistance from the Federal Probation Office. The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Long-Time Redmond, Washington Investment Advisor Pleads Guilty to Defrauding Investors of more than $3 MillionRead the Press Release
A long-time investment advisor in Redmond, Washington pleaded guilty today in U.S. District Court in Seattle to defrauding some 15 investors of more than $3 million, announced U.S. Attorney Brian T. Moran. DENNIS GIBB, 72, the President and owner of Sweetwater Investments Inc., pleaded guilty to wire fraud and falsification of records with the intent to obstruct a matter within the jurisdiction of the Securities and Exchange Commission (SEC). Simultaneously, GIBB and Sweetwater investment entered into a consent decree with the SEC liquidating the Sweetwater Income Flood LP Fund and barring GIBB from further investment activity. Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing in the criminal case for June 28, 2019.
“Sadly, this defendant sold his investors a dream of a safe retirement, representing that he would use a sophisticated investment strategy, including investing in government bonds, to produce stable returns. Instead, Dennis Gibb used investor funds to pay business expenses for Sweetwater Investments, as well as mortgage and car payments and other living expenses,” said U.S. Attorney Brian T. Moran. “He told investors there was $7.8 million in the fund – the reality was there was less than $2 million. The investors no longer have the safe retirement income they were promised.”
According to the criminal case filings and the SEC consent decree, GIBB created Sweetwater Income Flood Limited Partnership, a private fund Gibb managed, in 2008. As early as 2007, he began soliciting investors for the fund targeting those who wanted steady retirement income in the near future. According to the SEC between 2007 and 2018, about 20 investors put about $7.3 million into the fund. GIBB secretly transferred more than $3.1 million from the fund for his own expenses. To hide his theft, GIBB sent investors falsified quarterly account statements. When the SEC began an examination of the Sweetwater Investments in May 2018, GIBB provided false records to examiners indicating the fund had been liquidated.
In his plea agreement GIBB agrees to forfeit a money judgment in the amount of $3,197,401. Gibb will also owe full restitution for the amount he stole. The government will recommend that any money collected on the money judgment go toward the defendant’s restitution obligation. The SEC is ordering GIBB to liquidate the approximately $1.8 million remaining in the Income Flood Fund and provide it to the SEC for disbursement to victims.
Wire fraud is punishable by up to 20 years in prison. Falsification of records is punishable by up to three years in prison. Prosecutors have agreed to recommend no more than 78 months in prison. The court is not bound by the recommendation, the sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the SEC and the FBI. The case is being prosecuted by Assistant United States Attorney Matthew Diggs.
The SEC order is available here.
Members of International Drug Trafficking Conspiracy Plead GuiltyRead the Press Release
Three members of an international drug trafficking organization pleaded guilty today in U.S. District Court in Seattle to distributing more than a thousand kilograms of illegal marijuana, announced U.S. Attorney Brian T. Moran. The defendants admit in their plea agreements that they used money from conspirators in the Peoples Republic of China (PRC) to purchase homes in the Puget Sound area that they used for marijuana production. QIFENG LI, 41, his wife XIAMIN HUANG, 38, and brother QIWEI LI, 45, all face a mandatory minimum five years in prison and up to 40 years in prison when sentenced by U.S. District Judge John C. Coughenour on June 18, 2019.
“The entry of organized crime into the marijuana marketplace is of increasing concern in the Western District of Washington,” said U.S. Attorney Brian T. Moran. “This conduct brings crime to our neighborhoods, artificially fuels the housing market, and creates a blight of toxic abandoned grow houses. With this case, the defendants are forfeiting more than a million dollars of equity in properties and more than $350,000 in cash – putting a dent in the organized crime profits.”
According to the facts admitted in the plea agreement, between July 2015 and May 2018, the conspirators purchased homes in Burien, Kent, Seattle and Tukwila, which they used exclusively for marijuana production. More than $598,000 was wired to the conspirators from China to fund the purchases. The defendants shipped more than 1,000 kilograms of marijuana to the New York City area, via FedEx, UPS, the U.S. Postal Service and a private freight forwarder. Ultimately, in an effort to streamline distribution the conspirators established a shipping company, Pony Movers, LLC, to transport their marijuana from Western Washington to a warehouse in Little Ferry, New Jersey. The defendants then deposited the profits from the marijuana enterprise into their bank accounts in amounts less than $10,000 to avoid financial reporting requirements.
QIFENG LI and XIAMIN HUANG are U.S. citizens. QIWEI LI is a Lawful Permanent Resident who likely will face deportation following his prison term.
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 DEA and Homeland Security Investigation (HSI). Significant investigative assistance was also provided by the Seattle Police Department and FBI.
The case is being prosecuted by Special Assistant United States Attorney Joe Silvio and Assistant United States Attorney Marie Dalton. Mr. Silvio is an attorney with Homeland Security Investigations, specially designated to prosecute cases in federal court.
Man who Held ATF Undercover Agent and Confidential Informant at Gunpoint Sentenced to 14 Years in PrisonRead the Press Release
One of two men who attempted to rob a federal agent working on an illegal firearms investigation, was sentenced today in U.S. District Court in Seattle to 14 years in prison, announced U.S. Attorney Brian T. Moran. ABDIRASHID HARET, 20, of Des Moines, Washington, pleaded guilty in December 2018, to assault on a federal officer and person assisting a federal officer, using a firearm in a crime of violence and robbery of funds belonging to the United States. At the sentencing hearing U.S. District Judge James L. Robart noted the defendant had a “fascination with guns,” that created “a situation that is dangerous to yourself, the people you are with, and the community.”
“This defendant illegally carried and trafficked firearms, bringing violence to our community,” said U.S. Attorney Brian T. Moran. “He was a convicted felon – arrested for assault and carrying a stolen gun – who returned to crime within months of his juvenile conviction. He threatened an undercover law enforcement agent – the very person we trust to do the dangerous work needed to keep us safe. This long prison sentence is warranted to protect our community.”
According to the facts in the plea agreement, HARET and co-defendant Omar Abdullah, 23, of Seattle, Washington, had made arrangements to sell two firearms to a man who, unknown to them, was a confidential informant (CI) working with ATF. The CI and an undercover ATF agent met with HARET and Abdullah in a vehicle in the parking lot of the Kent Lowe’s store. After the agent and CI got in the car, HARET and Abdullah used the two loaded firearms they brought to the meeting to rob the undercover agent and the CI. The undercover agent told HARET and Abdullah he would get additional money out of his car. HARET followed the agent out of the car, still armed with a firearm. The undercover agent was able to pull his own gun and fired at Abdullah who still held the CI at gunpoint in the car. HARET dropped his gun and attempted to flee. He was struck and injured running across Pacific Highway. Both Abdullah and HARET were taken to medical facilities. Abdullah continues to get specialized treatment for his gunshot wounds.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Tulalip Tribal Member Sentenced to more than 5 Years in Prison for Repeated Domestic Violence AssaultsRead the Press Release
A 36-year-old member of the Tulalip Tribes was sentenced March 21, 2019, in U.S. District Court in Seattle to 71 months in prison for multiple horrific assaults on his intimate partner, announced U.S. Attorney Brian T. Moran. MORGAN BRYANT pleaded guilty in December 2018 to two counts of assault resulting in serious bodily injury, assault by strangulation, assault with a dangerous weapon, and domestic assault by a habitual offender. According to records filed in the case, BRYANT assaulted his live-in partner on numerous occasions: punching her, kicking her, hitting her with a hammer and a wrench, and strangling her. When treated by medical professionals, the victim had a broken wrist, broken ribs, and broken bones in her face. At the sentencing hearing, U.S. District Judge Robert S. Lasnik said, “He cannot do this ever again to any woman.”
“Such violent, vicious assaults deserve significant federal prison time,” said U.S. Attorney Brian T. Moran. “The Tribal Liaisons in my office are using important tools such as the Habitual Offender Domestic Assault statute to ensure domestic violence assaults are investigated, prosecuted and punished to protect the vulnerable in our Tribal communities.”
According to records filed in the case, in March 2018, the victim sent her family and friends text messages asking for help. She included a photo that showed she had one black eye, an eye swollen shut, and bruises on her face. Tulalip Tribal Police responded to check on the victim. Because no one inside would answer the door, the police obtained a search warrant. Inside they found the victim with severe injuries, including a bloody head-wound with a towel super-glued in place, and broken bones in her face. The victim was taken to the hospital and later disclosed months of abuse, including a November 2017 fight where BRYANT broke her wrist and a January 2018 argument where BRYANT punched and kicked her, struck her with a wrench and hammer while keeping her locked in a bathroom for hours, strangled her, and hit her over the head with a plate. Finally, in the March 2018 assault that led to his arrest, BRYANT repeatedly punched her leaving her bruised and bloody.
BRYANT has previous convictions in Everett Municipal Court and Tulalip Tribal Court for domestic violence assaults on other victims.
The case was investigated by the Tulalip Tribal Police and the FBI. The case was prosecuted by Assistant United States Attorney Rebecca Cohen.
Repeat Federal Felon with 30+ Years of Criminal History Sentenced to 5+ Years in Prison for Witness Tampering and Absconding from SupervisionRead the Press Release
A Seattle man with three prior federal convictions was sentenced today in U.S. District Court in Seattle to 61 months in prison for witness tampering and absconding from federal supervision, announced U.S. Attorney Brian T. Moran. DAVID POSEY, 52, of Seattle, was arrested in June 2018 after he traveled to Portland, Oregon, without notifying his probation officer. POSEY had convinced an autistic woman whom he met at a local community college to travel with him. The investigation revealed that he pressured the 19-year-old victim to lie to law enforcement about sexual activity. The woman has a guardian because she is considered vulnerable and unable to make certain financial and personal decisions. At sentencing, U.S. District Judge Robert S. Lasnik said POSEY “is a crook and a fraudster…. A fraudster taking advantage of a situation and manipulating it to his advantage.”
According to records filed in the case, POSEY was released into the community from his 65-month federal prison sentence on June 4, 2017. Barely a year later, an arrest warrant was issued when he failed to check in with his probation officer. POSEY was located and arrested June 20, 2018, in a Portland motel room with a developmentally disabled 19-year-old. Following his arrest, POSEY communicated repeatedly with the woman by mail and telephone to get her to change the information she provided to law enforcement. Ultimately, a court-authorized search of mobile phones belonging to POSEY revealed the truth of the sexual contact and his efforts to get the witness to lie to law enforcement. In November 2018, POSEY pleaded guilty to tampering with a witness.
POSEY has criminal convictions dating back to 1985, including federal convictions for: being a felon in possession of a firearm, mail fraud, and conspiracy (1997); two counts of mail fraud (2004); and being a felon in possession of a firearm, unlawful production of identity documents, and counterfeiting (2011).
The case was investigated by the FBI with assistance from the U.S. Marshal Service Fugitive Task Force.
The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Kent Resident Convicted of Distributing Methamphetamine following Three Day Jury TrialRead the Press Release
A 32-year-old Kent, Washington resident was convicted today of distributing methamphetamine following a three day jury trial, announced U.S. Attorney Brian T. Moran. JOHNNY JAVIER MOREL-PINEDA faces a mandatory minimum 5 years in prison and up to 40 years in prison when sentenced by Chief U.S. District Judge Ricardo S. Martinez on June 14, 2019. MOREL-PINEDA is a citizen of Honduras who likely will be deported following his prison term.
According to testimony at trial and records filed in the case, MOREL- PINEDA came to the attention of law enforcement as a source of methamphetamine in the South King County area. A confidential informant, working with law enforcement, set up a drug deal with MOREL- PINEDA. The telephone calls setting up the April 2018 drug deal, as well as the drug sale in MOREL- PINEDA’s car were audio recorded. In the calls and via text message the two speak in code, calling an ounce of methamphetamine a “taco,” and pricing “four tacos” at $1200.
The jury deliberated about 90 minutes before reaching the guilty verdict.
The case was investigated by the Drug Enforcement Administration (DEA) and Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorneys Joshua Ferrentino and Amy Jaquette.
Flooring Company Settles Allegations it Paid Bribe for Government WorkRead the Press Release
The nationwide flooring company Spectra Contract Flooring with an office in Tukwila, Washington, has agreed to pay $133,718 to settle allegations it improperly provided kickbacks to a defense contractor, announced U.S. Attorney Brian T. Moran. The civil settlement comes after a criminal investigation, and false tax return conviction, of an employee of a government defense contractor who accepted benefits from Spectra. Spectra is a wholly owned subsidiary of Shaw Industries Group Inc. The criminal case, U.S. v Meisner, was resolved in May 2017. In the settlement announced today, Spectra does not admit any wrongdoing but chooses to resolve the claims.
According to records filed in the criminal case and the settlement agreement, in 2009, Spectra was one of the subcontractors working on a seismic upgrade at the Delta Pier Support Facility at the Bangor Submarine Base near Silverdale. The contractor leading the Bangor job was Cherokee General Corporation, a subsidiary of Doyon Government Group, headed by Brent S. Meisner. Meisner was in the midst of a remodel of his Gig Harbor, Washington, residence. Invoices submitted by Spectra reveal that the company billed the Navy for the work at Meisner’s residence under the seismic upgrade contract. Meisner paid nothing for the flooring services provided at his home. As is allowed by law in False Claims cases, Spectra is settling the matter for three times the cost of the false billing: $133,718.
In May 2017, Meisner was sentenced to 18 months in prison.
"The announced settlement is representative of the law enforcement community's dogged efforts to hold accountable those who engage in unethical business practices that stifle fair competition and ultimately result in a loss to the American taxpayer," said Bryan Denny, Special Agent in Charge, Western Field Office, Defense Criminal Investigative Service (DCIS). "As in this case, any unscrupulous actions by government contractors and subcontractors that tarnish and corrupt the integrity of the defense procurement process will be reviewed and vigorously investigated by DCIS and its law enforcement partners."
The False Claims Act allegations were investigated by the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), Army CID Major Procurement Fraud Unit and the Internal Revenue Service Criminal Investigation (IRS-CI).
The civil settlement was negotiated for the government by Assistant United States Attorney Kayla C. Stahman.
Former Skagit County Deputy Sheriff Sentenced for Embezzling from Law Enforcement OrganizationRead the Press Release
A former long-time Skagit County Sheriff’s Deputy was sentenced today in U.S. District Court in Seattle to 60 days in prison and six months of home confinement with electronic home monitoring in connection with his theft of more than $30,000 from a police dog handlers organization, announced U.S. Attorney Brian T. Moran. BRIAN A. LEHR, 53, of Sedro Wooley, Washington, was the Secretary/Treasurer of the Pacific Northwest Police Detention Dog Association. For at least six years, LEHR stole money from the organization to use for his own expenses, such as restaurant bills, hotel and event expenses, and even his cable TV and cell phone bills. By the time the theft was discovered, LEHR had stolen $33,641. At the sentencing hearing U.S. District Judge John C. Coughenour noted the theft was a “breach of trust.”
According to records filed in the case, LEHR took his leadership position with the Association in 1998. The Association, which was founded by canine law enforcement officers, seeks to promote high-quality training of detection dog teams in the Pacific Northwest. LEHR had complete control over the Association finances, and there was little oversite. In 2013, LEHR prepared a financial report suggesting the Association had nearly $20,000 in its bank account, when in fact he had stolen all but $276.79. LEHR stole the money by simply making payments from the Association accounts to his credit card bills or cable and cell phone bills or by using the Association debit card at stores, restaurants, hotels, and event ticket sites. LEHR also withdrew cash from the accounts for his own expenses.
The thefts harmed the Association in ways beyond the financial cost. The Association has not been able to bring in trainers to work with narcotic detection dogs, and it has been unable to purchase equipment and update its website with information for members. The embezzlement damaged its reputation in the law enforcement community and hurt its efforts to recruit members in law enforcement.
LEHR pleaded guilty to wire fraud in December 2018.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Andrew Friedman.
Western District of Washington Takes Part in Largest-Ever Nationwide Elder Fraud SweepRead the Press Release
Seattle – Attorney General William P. Barr and U.S. Attorney Brian T. Moran today announced the largest coordinated sweep of elder fraud cases in history, surpassing last year’s nationwide sweep. The cases during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them elderly.
In the Western District of Washington, three defendants operating various money‑transmitting schemes agreed to cease operation following civil complaints alleging that they were a critical part of tech support fraud schemes based in India. The operators, in Seattle, Shoreline, and Gold Bar, Washington, collected the fraud proceeds, kept a percentage, and forwarded the bulk of the money to the telemarketing centers in India. In one case, the Shoreline based conspirator sent more than $320,000 to India between December 2017 and May 2018. A fourth company sued civilly in the Western District of Washington is one of the fraudulent tech support companies using telemarketing centers to defraud seniors in Western Washington.
“Crimes against the elderly target some of the most vulnerable people in our society,” Attorney General William P. Barr said. “But thanks to the hard work of our agents and prosecutors, as well as our state and local partners, the Department of Justice is protecting our seniors from fraud. The Trump administration has placed a renewed focus on prosecuting those who prey on the elderly, and the results of today’s sweep make that clear. Today we are announcing the largest single law enforcement action against elder fraud in American history. This year’s sweep involves 13 percent more criminal defendants, 28 percent more in losses, and twice the number of fraud victims as last year’s sweep. I want to thank the Department’s Consumer Protection Branch, which led this effort, together with the Department’s Criminal Division, the more than 50 U.S. Attorneys’ offices, and the state and local partners who helped to make these results possible. Together, we are bringing justice and peace of mind to America's seniors.”
“Using our civil authority, we are stopping a key cog in the wheel of tech support fraud,” said U.S. Attorney Brian T. Moran. “By taking out those who process the payments for the fraudsters, we stop the flow of ill-gotten gain to those preying on our senior citizens. This is a warning shot–a return to this fraud could result in additional sanctions.”
The Department took action in every federal district across the country, through the filing of criminal or civil cases or through consumer education efforts. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of millions of more dollars than last year, putting the total alleged losses at this year’s sweep at over three fourths of one billion dollars.
The charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Justice Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. The Western District of Washington also has formed an Elder Justice Taskforce. To file a complaint with the District, please do so on the Western District webpage.
The four cases filed in the Western District of Washington are:
U.S. v. Joy Emmanuel, 19-cv-309
U.S. v. Jasvit S. Tahim, 19-cv-307
U.S. v. Christine Reeves and VCARE USA LLC, 19-cv-325
U.S. v. Elagoon Business Solutions PVT LTD, 19-cv-00324
Assistant United States Attorney Kayla Stahman leads the Elder Justice Task Force in the Western District of Washington.
Violent Pimp Convicted of Human Trafficking Following Eight Day TrialRead the Press Release
A Seattle area man with a prior history of promoting prostitution was convicted on March 6, 2019, in U.S. District Court in Seattle of five federal felonies including sex trafficking of a minor, announced U.S. Attorney Brian T. Moran. The jury deliberated less than three hours following an eight-day trial before convicting 32-year-old AUBREY TAYLOR, also known as “Uno,” of all counts. During the trial multiple victims testified about how Taylor used threats, violence, sexual assault, and manipulation to control them and force them to engage in commercial sex acts in cities in Washington, Idaho, and Nevada and then give him the money they earned. TAYLOR faces a mandatory minimum 15 years in prison when sentenced by U.S. District Judge Robert S. Lasnik on May 21, 2019.
According to records filed in the case and testimony at trial, TAYLOR forced one young victim into prostitution on a trip to Wenatchee in October 2014 when she was 17 years old. Three other victims testified about how TAYLOR controlled them with mental and physical abuse or promises of love and a better life. The women were transported to as far away as Las Vegas to engage in commercial sex acts. One victim was controlled by rationing doses of heroin–using her addiction to keep her working as a prostitute. Other victims were instructed to get tattoos of TAYLOR’s name and nicknames as a form of branding and to demonstrate TAYLOR’s control over them.
The victims under TAYLOR’s control were violently assaulted by him on multiple occasions. When law enforcement or medical professionals tried to get the victims to cooperate with law enforcement, they expressed fear of TAYLOR. Text messages seized in the case reveal TAYLOR’s attempts to recruit numerous additional women and his use of threats and violence.
“He is a sex trafficker and a predator,” Assistant United States Attorney Kate Crisham said in closing arguments. “He sold his victims a dream of a bright future…but what they got instead was a nightmare.”
“I commend the dedicated law enforcement officers and trial team who worked diligently to investigate and prosecute these crimes,” said U.S. Attorney Brian T. Moran. “And I want to recognize the strength and courage of the victims who came to court and described their darkest moments to the jury in order to hold this defendant accountable.”
The case was investigated by the FBI, the City of Kent Police Department, the City of Auburn Police Department, the Bellingham Police Department, the Wenatchee Police Department, and the Snohomish County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Kate Crisham and Rebecca Cohen.
Active Duty Soldier at JBLM Arrested on Charges He Traveled to Foreign Country for Sex with ChildrenRead the Press Release
A 37-year-old Staff Sergeant stationed at Joint Base Lewis-McChord (JBLM) was arrested today on a criminal complaint charging him with traveling with the intent to engage in illicit sexual contact and possession of child pornography, announced U.S. Attorney Brian T. Moran. MOEUN YOEUN made his initial appearance in U.S. District Court in Tacoma this morning following his arrest at JBLM. YOEUN had been residing in Steilacoom, Washington. YOEUN will remain in custody pending a detention hearing next week.
According to the criminal complaint, YOEUN came to the attention of law enforcement when Facebook notified the National Center for Missing and Exploited Children (NCMEC) that a person associated with four user accounts was enticing minors to send images of sexually explicit conduct and was making travel plans to go to the Philippines to engage in sex with minors. The messages linked to the account indicate YOEUN traveled to the Philippines in February 2019.
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.
Traveling with intent to engage in illicit sexual conduct is punishable by up to 30 years in prison. Possession of child pornography is punishable by up to 20 years in prison..The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted, the sentence of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
FBI and U.S. Army CID are investigating the case as part of the South Sound Child Exploitation Task Force. The case is being prosecuted by Assistant United States Attorneys Matthew Hampton and Grady Leupold.
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
Puyallup Tribal Member Sentenced to 18 Months in Prison for Strangulation Assault on Intimate PartnerRead the Press Release
A 20-year-old enrolled member of the Puyallup Tribe was sentenced today in U.S. District Court in Seattle to 18 months in prison and three years of supervised release for assault by strangulation, announced U.S. Attorney Brian T. Moran. SHAWN MICHAEL SAM of Tacoma was indicted in November 2017 for an assault that occurred on the Swinomish Reservation on October 15, 2017. SAM punched and strangled his then-girlfriend to the point that she lost consciousness. U.S. District Judge John C. Coughenour imposed the sentence.
According to records filed in the case, the victim suffered significant injuries including black eyes, tenderness, and swelling. After SAM strangled his victim, he continued to punch and hit her after she regained consciousness. Following his arrest for this assault, SAM was released with electronic monitoring. However, he cut the monitoring bracelet on May 2, 2018, and was ultimately located nearly four weeks later at his sister’s home in Tacoma. When law enforcement arrived, SAM ran from police but was taken into custody following a foot chase.
Swinomish Chairman Brian Cladoosby wrote to the court, “We take these matters very seriously and we will not tolerate this behavior in our community. The Violence Against Women Act is important for our State and Nation and protects the most vulnerable in our communities. We support Judge Coughenour to uphold justice for the victims and support his decision.”
SAM pleaded guilty August 29, 2018.
The case was investigated by the Swinomish Police Department and the FBI. The case was prosecuted by Assistant United States Attorneys Rebecca Cohen and J. Tate London. Ms. Cohen and Mr. London serve as Tribal Liaisons for the U.S. Attorney’s Office specially designated to prosecute cases involving Tribal communities.
Woodinville, Washington, Winery and Concert Venue Agrees to Make Modifications to Increase AccessibilityRead the Press Release
Chateau Ste. Michelle Winery has agreed to make numerous improvements to its public spaces following an American with Disabilities Act (ADA) complaint from a patron who uses a wheelchair, announced U.S. Attorney Brian T. Moran. The patron complained to the U.S. Attorney’s Office after encountering physical barriers during her attendance at a summer concert at the venue. She also alleged that she was told she had to purchase more expensive concert tickets in order to obtain wheelchair accessible seating. In response, investigators and an outside architectural firm reviewed plans for the facility in June 2017 and made a site visit in October 2017, confirming barriers to accessibility. Although Chateau Ste. Michelle disputed the complainant’s ticketing claims, it has agreed to make numerous structural changes to its facilities by June 2019 and to conduct training for its public-facing employees to better serve patrons with disabilities.
“I commend Chateau Ste. Michelle for recognizing the need to correct barriers to equal access in its facilities, so that all those who want to visit the winery or enjoy a concert can do so,” said U.S. Attorney Brian T. Moran. “Equal access is a bedrock of our society and seemingly simple things like heavy doors, loose carpets, or table heights can significantly limit access for people using mobility devices.”
Under the agreement, some of the improvements Chateau Ste. Michelle has agreed to make include: multiple changes to bathrooms at the winery to make them accessible; improvements to table and threshold heights in the tasting room; securing loose rugs which can impede assistive devices and pose a tripping hazard; increasing the width of aisles and of accessible seating areas in the amphitheater; increasing the number of accessible parking spaces, and improving the slope and paths from the parking spaces to the amphitheater. In addition, the winery has agreed to pay the original complainant $500 to settle the claims.
DOJ will monitor compliance for one year following the improvements. If no further issues arrive the matter will be closed.
The settlement was negotiated for the U.S. Attorney’s Office by Assistant United States Attorney Christina Fogg.
Federal Way Tax Preparer Convicted in Scheme to Prepare False Income Tax ReturnsRead the Press Release
A 52-year-old Federal Way, Washington resident was convicted late yesterday of eight counts of aiding and assisting in preparing false income tax returns, announced U.S. Attorney Brian T. Moran. LINA PASTARS ran a tax preparation business out of her home and collected higher fees from customers by falsely inflating their deductions, so that her clients received a bigger refund. The jury deliberated about three hours following three days of testimony. Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing for June 28, 2019.
According to testimony at trial and records filed in the case, the investigation of PASTARS began in 2015, when the IRS audited one of her clients whose 2012 tax return claimed more than $30,000 in unreimbursed business expenses. The clients claimed PASTARS has claimed the deductions without their knowledge. The IRS Scheme Development Center then began a review of returns prepared by PASTARS between 2012 and 2014 and discovered the returns had unreimbursed employee business expenses that far exceeded the average claims in the Puget Sound region. The statistical analysis revealed PASTARS claimed unreimbursed business expenses for clients that were three to four times the average claim.
On two different occasions in March and April 2015, undercover IRS Criminal Investigation (IRS-CI) agents went to PASTARS posing as clients for tax preparation. Both were very clear that they had no employee business expenses. They told PASTARS that all their expenses were reimbursed by their employers. Nevertheless, PASTARS claimed thousands of dollars in unreimbursed expenses so that the returns showed a refund. She increased the fee that she charged each undercover agent saying “If I do deduction I charge more.” Undercover audio and video of these exchanges were admitted into evidence and played for the jury.
As PASTARS deductions and promised refunds grew, so did her business. Most of her customers paid in cash – making her profit from the scheme difficult to trace. But based on those customers who paid by check or via an online payment system she went from 159 returns prepared in 2012 to 366 prepared in 2015. Over those same years her trackable income from tax prep increased ten-fold from $6,500 in 2012 to $65,470 in 2015. Those figures do not account for clients who paid in cash.
The statistical analysis of returns prepared by PASTARS between 2012 and 2015 reveal that she inflated the deductions for business expenses and charitable donations by as much as $4 million. Investigators will now calculate the tax loss for purposes of sentencing.
Aiding and assisting in preparation of false income tax returns is punishable by up to three years in prison and a $100,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by Internal Revenue Service Criminal Investigation.
The case was prosecuted by Assistant United States Attorneys Seungjae Lee and Michael Dion.
Snohomish County Resident Convicted of Violating the Arms Export Control Act and Three Federal Firearms LawsRead the Press Release
A 35-year-old resident of Tulalip, Washington was convicted late yesterday in U.S. District Court in Seattle on four federal felonies related to illegal gun possession and trafficking, announced U.S. Attorney Brian T. Moran. HANY VELETANLIC, a citizen of Bosnia legally residing in the United States, was found guilty of violating the Arms Export Control Act, illegally possessing two unregistered silencers, and possessing a firearm with an obliterated serial number. The jury deliberated nearly three hours following two days of testimony. U.S. District Judge James L. Robart scheduled sentencing for May 20, 2019.
According to records filed in the case and testimony at trial, in February 2017, Swedish law enforcement seized a part of a Glock firearm from a residence in Fagersta, Sweden. The serial number on the Glock firearm had been filed off, but Glock Inc. was able to trace the sale of the firearm using a specialized company code imprinted on the part. The gun had been purchased by a resident of the Seattle area. When contacted by law enforcement, the resident said he had privately sold the gun to VELETANLIC. In May 2017, VELETANLIC contacted Homeland Security agents when he learned they had been asking about the firearm. VELETANLIC told agents about his activity selling firearms on eBay and in direct sales. After being advised of his Miranda rights, VELETANLIC ultimately admitted shipping packages of firearms overseas – as many as 20 different shipments to two different customer groups in Sweden. He also shipped gun parts to a person in France.
In the course of a July 2017 interview with law enforcement, VELETANLIC admitted that the customer in France had shipped him two silencers in exchange for the firearms parts. VELETANLIC claimed the silencers had been destroyed. However, when agents received permission to look in VELETANLIC’s gun safe, they found one of the silencers. The second silencer was turned over by VELETANLIC to agents in August 2017.
In May 2018, VELETANLIC was arrested on federal charges. At the time of his arrest he was carrying a Ruger pistol with an obliterated serial number. VELETANLIC admitted the weapon had an obliterated serial number because it had been stolen.
Violating the Arms Export Control Act is punishable by up to 20 years in prison. Possession of as unregistered firearm is punishable by up to ten years in prison. Possession of a firearm with an obliterated serial number is punishable by up to five years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations and Bureau of Alcohol, Tobacco Firearms & Explosives (ATF) with assistance from the Swedish National Police.
The case was prosecuted by Assistant United States Attorneys Matthew Diggs and Marie Dalton.
Chinese Telecommunications Device Manufacturer and its U.S. Affiliate Arraigned on Charges of Theft of Trade Secrets, Wire Fraud, and Obstruction of JusticeRead the Press Release
Seattle - Huawei Device Co., Ltd. and Huawei Device USA Inc. were arraigned today on charges of theft of trade secrets conspiracy, attempted theft of trade secrets, seven counts of wire fraud, and one count of obstruction of justice. The companies entered pleas of ‘not guilty.’ Chief U.S. District Judge Ricardo S. Martinez set trial for March 2, 2020.
The indictment, returned by a grand jury last month, details Huawei’s efforts to steal trade secrets from Bellevue, Washington based T-Mobile USA and then obstruct justice when T-Mobile threatened to sue Huawei in U.S. District Court in Seattle. The alleged conduct described in the indictment occurred from 2012 to 2014.
Under the maximum sentencing provisions applicable to corporate entities, Conspiracy and Attempt to Commit Trade Secret Theft are punishable by a fine of up to $5,000,000 or three times the value of the stolen trade secret, whichever is greater. Wire Fraud and Obstruction of Justice are punishable by a fine of up to $500,000.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Todd Greenberg and Thomas Woods of the Western District of Washington, with assistance from the Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.
U.S. Attorney Brian T. Moran has been recused from this matter because of legal representations he undertook before he joined the Department of Justice. Per direction from ethics officials in the Department of Justice, First Assistant U.S. Attorney Annette L. Hayes will act as U.S. Attorney with respect to this matter pursuant to the authority conferred by 28 U.S.C. § 515.
Former Washington State Bank CEO Pleads Guilty to Multi-Year Tax Fraud of More than $865,000Read the Press Release
The former Chief Executive Officer of a Pacific Northwest community bank pleaded guilty today in U.S. District Court in Wisconsin to filing a false tax return, announced U.S. Attorney Brian T. Moran. VICTOR KARPIAK, 64, now of La Crosse, Wisconsin, admits that between 2010 and 2016 he failed to report more than $2.3 million in income on his taxes. KARPIAK previously served as President and CEO of First Savings Bank Northwest based in Renton, Washington. He retired in 2013 and moved from the Seattle area. KARPIAK was charged in the Western District Washington, but chose to have the case resolved near his new home in Wisconsin. Sentencing by U.S. District Judge William M. Conley is scheduled for May 17, 2019.
According to the facts admitted as part of his plea, between 2010 and 2016, KARPIAK served as a trustee and consultant for a woman who was the beneficiary of a family and a marital trust. Over those years KARPIAK paid himself fees of $3,265,072 but on his taxes KARPIAK reported less than a third of that income ($943,322). The tax loss on more than $2,321,750 in income is $867,540. In the plea agreement KARPIAK agreed to pay $867,540 to the IRS as well as any interest or civil penalties the IRS imposes in the case. The interest alone in this case could total more than $143,647.
Filing a false tax return is punishable by up to three years in prison and a $250,000 fine or twice the gross tax gain or loss. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorneys Steven Masada of the Western District of Washington and Elizabeth Altman of the Western District of Wisconsin.
Cowlitz County Man Sentenced to 10 Years in Prison for Illegal Weapons PossessionRead the Press Release
A Longview, Washington, man who was convicted in July 2016 of a triple homicide in Vancouver was sentenced today in U.S. District Court in Tacoma to an additional ten years in federal prison for two federal felonies involving illegal weapons possession, announced U.S. Attorney Brian T. Moran. BRENT LUYSTER, 37, was convicted following a three-day trial in November 2018 of being a felon in possession of firearms and being a felon in possession of ammunition. At the sentencing hearing U.S. District Judge Benjamin H. Settle imposed a ten-year sentence to be served consecutive to LUYSTER’s state sentence. Judge Settle said, “There is a great need to be concerned at protecting the public . . . this case warrants the maximum sentence.” For the state murder convictions, LUYSTER had been ordered to serve a state sentence of life in prison with no chance of parole. The federal sentence of ten years will follow this state sentence.
“The hatred and violence embodied by this defendant is truly abhorrent,” said U.S. Attorney Brian T. Moran. “This sentence is a safety net – to hold him accountable for his federal crimes – but also to ensure that regardless of his state convictions and sentence, Brent Luyster will remain locked up to protect our communities.”
According to the evidence at trial in the case, Cowlitz County Sheriff’s deputies were called to a Longview home in May 2016 after a woman fled to a neighbor’s home saying she had been assaulted and her child was missing. The woman told responding officers that LUYSTER had hit her in the head with a gun. Another neighbor reported hearing gunshots. Ultimately, officers located LUYSTER on a hillside behind the house and convinced him to surrender. He had ammunition in his pockets, and at the location where he had been concealed on the hillside, officers recovered three firearms: a Bushmaster rifle, a Glock .40 caliber handgun, and a Keltec .12 gauge shotgun. Additional ammunition was discovered on the hillside. Inside the house where LUYSTER lived, law enforcement found five additional rifles and a handgun. The investigation revealed that LUYSTER’s live-in girlfriend had purchased the weapons for LUYSTER. LUYSTER was prohibited from possessing firearms due to multiple felony convictions, including convictions for assault, burglary, theft, malicious harassment, and riot with a deadly weapon.
Following the May 16 assault, while state charges were pending in Cowlitz County, LUYSTER shot and killed three people and critically injured a fourth on July 15, 2016, at a home near Woodland, Washington. He was convicted of three counts of aggravated first degree murder in November 2017.
While incarcerated at the Federal Detention Center at Sea-Tac, LUYSTER informed another inmate that he planned to assault a guard or make a violent disturbance at his trial. A search of his cell revealed two weapons LUYSTER had crafted out of parts of his bed–one a homemade knife and the other a weapon that looked like a screwdriver.
LUYSTER has a long and violent criminal history, including racially motivated attacks. In 2001, he beat an African-American man who stepped on his property in search of his dogs. Four years later, he was convicted of Malicious Harassment for shooting an African-American man in the leg. In 2014, he threatened an African-American man in a bar. LUYSTER also has a history of domestic abuse.
The case was investigated by the Cowlitz County Sheriff’s Office, Longview Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Federal Bureau of Investigation (FBI).
The case is being prosecuted by Assistant United States Attorneys Bruce Miyake and Ye‑Ting Woo.
Repeat Offender with 30 Year Criminal History Sentenced to Prison for Drug Dealing on Kent’s East HillRead the Press Release
A one-time Crips gang member with prior convictions for assault, robbery, and drug dealing was sentenced today in U.S. District Court in Seattle to 70 months in prison for conspiracy to distribute methamphetamine, announced U.S. Attorney Brian T. Moran. ANTHONY COLBERT, 49, of Seattle pleaded guilty in September 2018, following his arrest as part of “Operation East Watch.” The law enforcement initiative, led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), focused on drug dealing and gang violence in Kent’s East Hill neighborhood. COLBERT was fresh from a federal prison sentence for drug dealing when he was identified as a key drug conspirator at the Highland Green apartments. COLBERT tried to hide behind others as he distributed drugs in the community. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said COLBERT had “an extensive criminal history with very serious offenses – made even worse by the fact that when he committed these crimes he had just gotten off of supervised release.”
“This defendant has already served a total of 25 years in prison for state and federal offenses and now is adding to that unenviable record,” said U.S. Attorney Brian T. Moran. “The East Watch initiative targeted offenders causing crime and violence in an area that saw 29 shootings in 2018. By taking these habitual offenders out of our communities we hope to make our neighborhoods safer for all of us.”
“Mr. Colbert’s willingness in conspiring to distribute this deadly drug placed the community at great risk,” said ATF Seattle Field Special Agent in Charge Darek Pleasants. “His actions show contempt for law and order and this sentence is justified by the danger he poses to society.”
According to records filed in the case, just four months after being terminated from supervised release for a 2014 federal conviction for distributing oxycodone and Percocet, COLBERT came to the attention of law enforcement. COLBERT was identified as the source of supply of methamphetamine for co-defendant Allen Betts III, who distributed the drugs out of his Highland Green apartment complex. Law enforcement observed COLBERT bring the drugs to Betts on multiple occasions, before Betts sold the drugs to an undercover agent and a person working with law enforcement.
COLBERT has criminal history dating back to the 1980’s for drug and gun crimes. In 1991, he was sentenced to 65 months in prison for firing shots in a Seattle neighborhood in a turf dispute with another gang. In 1995, within a year of his release from prison he was sentenced to 12 years in prison for robbery. In 2006, while still on state supervision he illegally possessed a firearm and was sentenced to an additional 70 months in prison. His federal conviction followed with a three-year federal sentence.
All eight defendants in Operation East Watch have pleaded guilty. Two of the eight await sentencing later this year.
- Mario Parra-Cetino, 28 of Kent, Washington was sentenced earlier this month to 66 months in prison for conspiracy to distribute heroin and being a felon in possession of a firearm.
- Anthony Ripley, 46, of Tacoma, was sentenced in November 2018, to ten years in prison for drug and gun possession crimes.
- Eddie Tarik Musa Bell, Jr was sentenced in November to four years in prison for distribution of methamphetamine and being a felon in possession of a firearm.
- Devon Parramore, 50 of Kent, was sentenced last month to 33 months in prison for distribution of methamphetamine.
- Allen Betts III, 40, of Kent, pleaded guilty to conspiracy to distribute methamphetamine and unlawful possession of a firearm and was sentenced last month to four years in prison.
- Neal Stringer, 46, of Kent and Des Moines, pleaded guilty to conspiracy to distribute methamphetamine and being a felon in possession of a firearm. He is scheduled for sentencing in April 2019.
- Kenyon Taylor, 39, of Federal Way, pleaded guilty in December 2018, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. He is scheduled for sentencing in March 2019.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, DOJ leadership announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The operation was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives’ (ATF) Puget Sound Regional Crime Gun Task Force and the Kent Police Department. The task force contains agents and officers from King County Sheriff’s Office, Washington State Department of Corrections, Washington State Patrol, Drug Enforcement Agency, U.S. Marshals Service, Seattle Police Department, and Valley Narcotics Enforcement Team.
The cases are being prosecuted by Assistant United States Attorney Amy Jaquette and Special Assistant United States Attorney Jessica Manca. Ms. Manca is a Senior Deputy King County Prosecutor specially designated to prosecute gun crimes in federal court.
Canadian Drug Trafficker Sentenced to 7 Years in Prison for Ecstasy Smuggling ConspiracyRead the Press Release
A Canadian who smuggled ecstasy (MDMA) into the U.S. by hiking across rugged areas of the northern border was sentenced today in U.S. District Court in Seattle to seven years in prison, announced U.S. Attorney Brian T. Moran. NATHAN HALL, 41, was identified as the second smuggler in an unsuccessful attempt to bring more than 20 kilos of ecstasy into the U.S. in April 2013. HALL was identified by his co-defendant, Border Patrol agents, and information in a backpack dropped at the scene. Authorities believe HALL was the second suspect who fired a shot when confronted by agents. HALL denies he was the gunman but admits that he did carry a firearm on an earlier smuggling run in March 2013. The presence of the firearm strapped to his thigh was captured by a trail camera near the border. At the sentencing hearing, U.S. District Judge Robert S. Lasnik noted HALL “has a history of chronic lying, using fake ID, and ignoring court orders.”
According to records filed in the case, HALL was a member of a conspiracy that transported ecstasy in backpacks by hiking over rough rural terrain at the border. The ecstasy was then transported to California for distribution. On a smuggling run in April 2013 near Sumas, Washington, two smugglers wearing camouflage clothing were confronted by Border Patrol Agents. One smuggler, Jeffrey Laviolette, was taken into custody and ultimately sentenced to ten years in prison. The second smuggler fired a shot, dropped his backpack, and ran back into Canada. The backpack contained identification documents with HALL’s photo but a fake name. HALL was later arrested in Canada. The process of extraditing HALL from Canada took more than five years. In November 2018, HALL pleaded guilty to Conspiracy to Distribute MDMA and Possession of a Firearm in Furtherance of a Drug Trafficking Offense. HALL continues to deny he is the smuggler who fired the shot but admits carrying a firearm previously.
HALL will likely be deported following his prison term. He can petition for treaty transfer back to Canada.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The case was investigated by Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection Air and Marine, Coast Guard Investigative Services, and the Whatcom County Sheriff’s Office with assistance from the Abbotsford Police Department and the Royal Canadian Mounted Police (RCMP).
The case was prosecuted by Assistant United States Attorneys Sarah Vogel and Marie Dalton.
U.S. Attorney’s Office for Western District of Washington Collects more than $11 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Seattle - U.S. Attorney Brian T. Moran announced today that the Western District Washington collected $11,162,511 in criminal and civil actions in Fiscal Year 2018. Of this amount, $6,797,143 was collected in criminal actions and $4,365,367 was collected in civil actions.
Additionally, the Western District of Washington worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $39,535,912 in cases pursued jointly by these offices. Of this amount, $15,751 was collected in criminal actions and $39,519,761 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the ninety-four U.S. Attorneys’ offices.
“While you cannot put a price on justice, sometimes a just result means victims and taxpayers get restitution thanks to the diligent work of our attorneys and professional staff,” said U.S. Attorney Brian T. Moran. “Even years after the criminal conviction or civil settlement, members of our Financial Litigation Unit work hard to identify assets that should go to those who are victimized by fraud and other crimes.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
Some of the largest collections involve false billings and fraud on government programs. In August 2018, International Marine and Industrial Applicators LLC and Marine Equipment Supply LLC paid $2.8 million to settle claims for work which it had fraudulently billed the Navy at Puget Sound Naval shipyards. In a second case, prominent tourist ship captain Paul D. LaMarche paid $354,769 as part of a civil settlement and criminal penalty for defrauding the Railroad Disability program. Some of last year’s collections were from cases prosecuted as early as 2013. Last year, the office secured $114,661 for victims of investment fraud figure Mark Spangler and $188,820 for victims of Enumclaw financial advisor Aaron Travis Beaird.
In addition to restitution and civil settlements, the U.S. Attorney’s Office for the Western District of Washington forfeited property totaling $2,178,980. That amount includes forfeitures in U.S. v. ONG where the government seized more than $1 million in bitcoin and $235,000 in cash.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.