Western District of Washington
Press releases recorded for this federal judicial district.
Couple who Fled to Eastern Europe During Bank Fraud Investigation Enter Guilty PleasRead the Press Release
A King County couple who fled to Moldova, in Eastern Europe before being indicted by a federal grand jury for bank fraud related to loans fraudulently obtained from Westsound Bank, entered guilty pleas today in U.S. District Court in Seattle, announced Acting United States Attorney Annette L. Hayes. ALEKSANDR KRAVCHENKO, 36, pleaded guilty to conspiracy to commit bank fraud and filing a false income tax return. GALINA KRAVCHENKO, 35, pleaded guilty to filing a false income tax return. The couple profited from a mortgage fraud scheme in which ALEKSANDR KRAVCHENKO submitted phony loan applications to Westsound Bank. GALINA KRAVCHENKO acted as the real estate agent in the scheme earning large commissions on the fraudulent sales. ALEKSANDR KRAVCHENKO’s plea agreement estimates the loss amount on the bank fraud scheme at more than $10 million, and the tax loss on the false returns at more than $370,000. Chief U.S. District Judge Marsha J. Pechman scheduled sentencing for June 5, 2015.
According to records filed in the case, the KRAVCHENKOs were indicted in May 2009 for an extensive bank fraud scheme involving straw buyers and false statements on mortgage applications. According to facts admitted in the plea agreements, ALEKSANDR KRAVCHENKO had his wife GALINA, a real estate agent, locate real property that was available for purchase. ALEKSANDR KRAVCHENKO then recruited otherwise unqualified buyers to participate in purchasing and building on the properties. ALEKSANDR KRAVCHENKO submitted false and fraudulent construction loan applications and related documents to Westsound Bank, thereby causing Westsound Bank to make loans. A portion of the fraudulently-obtained loan proceeds were diverted for ALEKSANDR KRAVCHENKO’s personal use and benefit, and to further the fraud scheme. GALINA KRAVCHENKO made substantial real estate commissions on the deals. ALEKSANDR KRAVCHENKO submitted 55 loan packets to Westsound Bank worth $49 million – ultimately the bank suffered a $10.7 million loss on the loans and was closed by regulators on May 8, 2009.
Aware of the investigation, but before the indictment was returned, the two KRAVENCHENKOs fled the U.S. and went to Moldova where ALEKSANDR KRAVCHENKO retains citizenship. The two were out of the reach of U.S. law enforcement until December 2014, when GALINA KRAVCHENKO was returned to the U.S. based on an extradition warrant. GALINA KRAVCHENKO had been arrested in Moldova in September 2014 for having false Moldovan and Russian travel documents. GALINA KRAVCHENKO has been in custody since December 2014. ALEKSANDR KRAVCHENKO returned to the U.S on February 23, 2015 to resolve the criminal charges.
Under the terms of the plea agreements, both the prosecution and defense will recommend a five year prison term for ALEKSANDR KRAVCHENKO. He has agreed to make restitution of $10,759,722 for the bank fraud scheme and $370,541 for filing a false tax return. GALINA KRAVCHENKO is equally responsible for the $370,541 for filing a false tax return. Prosecutors will recommend a sentence of time already served in prison for her.
The case was investigated by the FBI, the Federal Deposit Insurance Corporation, Office of Inspector General, the Internal Revenue Service, Criminal Investigations, and the Washington State Department of Financial Institutions. The case is being prosecuted by Assistant United States Attorneys Tessa Gorman and Thomas Woods.
Press contact for the U.S. Attorney’s Office is Public Affairs Officer Emily Langlie at (206) 553-4110 or [email protected].
Former Kirkland Residents Sentenced to Prison for Hash Oil ExplosionRead the Press Release
Two men whose hash oil manufacturing operation exploded on New Year’s Day 2014, were sentenced today in U.S. District Court in Seattle to federal prison terms, announced Acting United States Attorney Annette L. Hayes. ROBBY WAYNE MEISER, 46, was sentenced to 30 months in prison and three years of supervised release, and BRUCE W. MARK, 62, was sentenced to 18 months in prison and three years of supervised release. The men were ordered to pay over $97,000 in restitution for damage to the apartment building. U.S. District Judge John C. Coughenour imposed the sentences.
“Hash oil manufacturing, and resulting explosions, are a growing and serious problem in Western Washington and elsewhere in the country,” said Acting United States Attorney Annette L. Hayes. “The materials and processes used to produce this product are dangerous and should never be used where they risk explosions or other serious harm. Those who put lives and property at risk will be prosecuted and punished.”
According to records filed in the case, on January 1, 2014, Kirkland Fire Department units responded to reports of an explosion and fire at the Inglenook Apartments on 142nd Street in Kirkland. Both defendants suffered burns in the explosion. Butane gas used in the manufacturing of hash oil exploded and blew out windows on the structure, expelling debris some 25 feet away. The north wall of the apartment was displaced outward approximately 6 – 8 inches by the blast, and the roof was disconnected from the wall. The fire department condemned parts of the building due to structural concerns. Officers found thirteen empty 8 ounce butane cans, and a box of twenty-four full 8 ounce cans in the apartment, together with a marijuana grow and other implements used to make hash oil.
When the defendants were arrested in July 2014, investigators found a second marijuana grow at the home they occupied in the Green Lake neighborhood of Seattle, as well as a small amount of butane used in hash oil manufacturing. In November 2014 the defendants pleaded guilty to Endangering Human Life While Manufacturing Controlled Substances.
Federal charges have been filed in connection with four other hash oil operations – three of them resulting in explosions and fires. In one of the cases from Bellevue, Washington, an apartment resident was injured trying to escape the flames and later died following complications from her hospitalization. The defendants in that case will be sentenced later this year.
The cases were investigated by multiple local and federal agencies including: the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service, the Bellevue Police Department, the Seattle Police Department, and the Kirkland Police Department.
The cases are being prosecuted by Assistant United States Attorneys Todd Greenberg and Vince Lombardi.
Press contact for the U.S. Attorney’s Office is Public Affairs Officer Emily Langlie at (206) 553-4110 or [email protected].Former Kirkland Residents Sentenced to Prison for Hash Oil ExplosionRead the Press Release
Two men whose hash oil manufacturing operation exploded on New Year’s Day 2014, were sentenced today in U.S. District Court in Seattle to federal prison terms, announced Acting United States Attorney Annette L. Hayes. ROBBY WAYNE MEISER, 46, was sentenced to 30 months in prison and three years of supervised release, and BRUCE W. MARK, 62, was sentenced to 18 months in prison and three years of supervised release. The men were ordered to pay over $97,000 in restitution for damage to the apartment building. U.S. District Judge John C. Coughenour imposed the sentences.
“Hash oil manufacturing, and resulting explosions, is a growing and serious problem in Western Washington and elsewhere in the country”, said Acting United States Attorney Annette L. Hayes. “As more states decriminalize marijuana, people such as these defendants are creating danger as they seek to manufacture a stronger product. It is important to send a public message that those who go too far and put lives at risk will be prosecuted and punished.”
According to records filed in the case, on January 1, 2014, Kirkland Fire Department units responded to reports of an explosion and fire at the Inglenook Apartments on 142nd Street in Kirkland. Both defendants suffered burns in the explosion. Butane gas used in the manufacturing of hash oil exploded and blew out windows on the structure, expelling debris some 25 feet away. The north wall of the apartment was displaced outward approximately 6 – 8 inches by the blast, and the roof was disconnected from that wall. On the inside, large gaps were seen between the ceiling and interior walls, and one interior wall had been moved about 10 inches. The sliding glass doors and frame were blown outward, away from the structure. The fire department condemned parts of the building due to structural concerns. Officers found thirteen empty 8 ounce butane cans, and a box of twenty-four full 8 ounce cans in the apartment, together with a marijuana grow and other implements used to make hash oil.
When the men were arrested in July 2014, investigators found a second marijuana grow at the home they occupied in the Green Lake neighborhood of Seattle, as well as a small amount of butane used in hash oil manufacturing. In November 2014 the men pleaded guilty to Endangering Human Life While Manufacturing Controlled Substances.
Federal charges have been filed in connection with four other hash oil operations – three of them resulting in explosions and fire. In one of the cases from Bellevue, Washington, an apartment resident was injured trying to escape the flames and later died following complications from her hospitalization. The defendants in that case are to be sentenced later this year.
The cases were investigated by multiple local and federal agencies including: the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service, the Bellevue Police Department, the Seattle Police Department, and the Kirkland Police Department.
The cases are being prosecuted by Assistant United States Attorneys Todd Greenberg and Vince Lombardi.
Press contact for the U.S. Attorney’s Office is Public Affairs Officer Emily Langlie at (206) 553-4110 or [email protected].Tribal Member Convicted of Sex Crime Returned to Prison for Failing to Register as a Sex OffenderRead the Press Release
An enrolled member of the Tlingit and Haida Indian Tribes of Alaska was sentenced to an additional 12 months in prison today for failing to register as a sex offender, announced Acting United States Attorney Annette L. Hayes. THOMAS LEE PETERS, 52, failed to register as a sex offender when he moved back to the Swinomish Reservation near La Conner in Skagit County. In 2009, PETERS was sentenced to five years in federal prison for three counts of sexual abuse of a minor for molesting a young relative while residing on the Swinomish Reservation. After his release from prison, PETERS initially registered in King County, but fled his Seattle residence without notice, and failed to check in with his probation officer as required. At sentencing U.S. District Judge Robert S. Lasnik told him the original charges of conviction were very serious and that he needed to register as a sex offender.
According to records filed in the case, PETERS was released from federal custody and registered as a sex offender with the King County Sheriff in February 2014. He signed a statement acknowledging that if he moved from the residence he listed in Seattle he needed to notify law enforcement. In late June 2014, PETERS violated the terms of his ten years of supervision. The violations included consuming alcohol, and failing to report to his probation officer as directed. In August 2014, Swinomish Tribal Police located PETERS on tribal land and arrested him at the request of the U.S. Marshal Service for failing to register as a sex offender.
PETERS pleaded guilty November 25, 2014.
The case was investigated by the U.S. Marshals Service and the Swinomish Police Department.
The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office.
Kent Man Sentenced to Eight Years in Prison for Dealing Heroin While ArmedRead the Press Release
A Mexican citizen who illegally possessed a firearm while dealing heroin was sentenced today in U.S. District Court in Seattle to eight years in prison, announced Acting United States Attorney Annette L. Hayes. Melquiades GARCIA GONZALEZ, 29, made a series of heroin sales to a person working with law enforcement in April 2014. In May 2014, GARCIA GONZALEZ agreed to sell three kilos of heroin to an undercover officer, with the promise of additional kilos of heroin in the future. At sentencing U.S. District Judge Richard A. Jones said GARCIA GONZALEZ “was controlling the lives of countless other people by providing the drug for their addiction.”
GARCIA GONZALEZ was arrested May 20, 2014, after attempting to deliver the three kilos of heroin to undercover officers in the parking lot of the Kent, Washington Home Depot. According to records filed in the case, GARCIA GONZALEZ drove through the parking lot at a high rate of speed narrowly missing other cars and pedestrians. Ultimately GARCIA GONZALEZ bolted from his car, and was chased on foot by officers. The officers saw GARCIA GONZALEZ throw a handgun into the bushes near a housing complex with young children playing in the yard. The weapon was a loaded Kahr .40 caliber pistol. In addition to the 3 kilos of heroin in the car, another kilo of heroin and a second loaded firearm was discovered at GARCIA GONZALEZ’ home.
On November 3, 2014, GARCIA GONZALEZ pleaded guilty to Alien in Possession of a Firearm, Possession of Heroin with Intent to Deliver; and Possession of Firearm in Furtherance of Drug Trafficking Crime.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and officers with Kent Police Department and Seattle Police Department.
The case is being prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute gun cases in federal court.
Members of Large Bank Fraud Ring IndictedRead the Press Release
A large bank fraud ring responsible for nearly a million dollars in fraud was indicted this week in U.S. District Court for the Western District of Washington, announced Acting United States Attorney Annette L. Hayes. Ten defendants are named in the indictment for fraud on seven different financial institutions. The indictment alleges that between November of 2010 and the present, the co-schemers used 219 different bank accounts to steal more than $987,000 from the banks. Eightof the defendants are in custody. Seven made their initial appearances in U.S. District Court today. Two defendants are still being sought, and one defendant is in state custody and will make his appearance next week.
According to the indictment, the defendants allegedly used stolen checks to make fraudulent deposits into various bank accounts. Using debit cards, the co-schemers would withdraw large amounts of cash before the bank determined the check used to inflate the balance was no good. Some of the people whose bank accounts were inflated were complicit in the fraud, allowing the co-schemers to use their debit cards. According to law enforcement records, many of the checks were stolen in car prowls and then used for the fraud. The victim banks include: Bank of America, Boeing Employees Credit Union (BECU), TwinStar Credit Union, Wells Fargo Bank, Sound Credit Union, Key Bank, and Banner Bank. All are federally insured financial institutions.
The 60 count indictment charges the defendants with bank fraud and aggravated identity theft for the fraudulent use of the debit cards. The defendants named in the indictment are:
CLAYTON LEON BIAS, JR., 25, Kent, Washington
ARTHUR NAPOLEAND WILCHER, 29, Tacoma, Washington
CALVIN DEWAYNE DAVIS, 26, Federal Way, Washington
OKILA AYANNA MALAYKA ULMER, 31, Renton, Washington
AMANDA RAE RIFFLE, 28, Tacoma, Washington
RELONNA DOLLINN WARD, 34, Tacoma, Washington
AVERY EDWARD LEE, 32, Milton, Washington
JOHNATHAN MARQUIEL TURNER, 22, Federal Way, Washington
SHAWN ANDRE TURNER, 24, Kent, Washington
SEPHORA QUILYN WATKINS, 27, Tacoma, WashingtonThe 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 U.S. Secret Service and the Pierce County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Former Bookkeeper Indicted for Embezzling from Tacoma Charity Thrift StoresRead the Press Release
The former bookkeeper for the St. Vincent de Paul Society Stores of Tacoma, Washington, was arrested yesterday afternoon on an indictment returned by a federal grand jury charging her with multiple counts of wire fraud and aggravated identity theft, announced Acting United States Attorney Annette L. Hayes. ANGELA TONEY SAUCIDO, 44, was arrested in Phoenix, Arizona. SAUCIDO moved from the Tacoma area to Phoenix in 2007, but continued to work for the charity as its bookkeeper. The indictment alleges the embezzlement began at least in 2006 and continued throughJuly 2013. SAUCIDO will make her initial appearance in U.S. District Court in Arizona today, with future court appearances in Tacoma.
According to the indictment the embezzlement scheme involved a variety of frauds. SAUCIDO would transfer funds from the St. Vincent de Paul Society Stores bank accounts to her own bank accounts and falsify entries making it appear the transfers were for legitimate purposes. SAUCIDO forged signatures on checks and made electronic fund transfers to benefit her and her family. SAUCIDO made purchases for her personal use on the St. Vincent de Paul Society Stores Home Depot credit account, and then used the charity’s funds to pay for the purchases. Finally, SAUCIDO used the identities of other employees to make it appear they had received additional pay when in fact she had deposited the money into bank accounts she and her husband controlled.
The indictment charges seven counts of wire fraud and four counts of aggravated identity theft. Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. Aggravated Identity Theft is punishable by a mandatory two years of prison that must follow any term imposed on the wire fraud counts.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Matthew Hampton.
Seattle Man who Advertised Illegal Arsenal from Magnolia Apartment Sentenced to PrisonRead the Press Release
A man who sold guns and heroin from the basement apartment of a home in Seattle’s Magnolia neighborhood, was sentenced today in U.S. District Court in Seattle to six years in prison and three years of supervised release, announced Acting United States Attorney Annette L. Hayes. JORGE CARLOS CAMPS, 34, was arrested in May 2014, when law enforcement seized a dozen weapons including a Mac-11 submachine gun and silencer. The home was just a few blocks from a busy playground in a neighborhood park. CAMPS pleaded guilty in November 2014. At sentencing U.S. District Judge Richard A. Jones said CAMPS was dealing in “a dangerous combination of firearms and drugs.”
“This defendant played Russian Roulette with public safety by offering to put high powered firearms into the hands of anyone ready to pay,” said Acting U. S. Attorney Annette L. Hayes. “By ignoring the regulatory requirements that licensed dealers must comply with, Camps became part of the black market that regularly provides guns to convicted felons who often go on to use them to commit further crimes. Our communities should not have to deal with additional murders, assaults and armed robberies because of this defendant’s wrong doing.”
According to records in the case, on April 28, 2014, CAMPS sold heroin and a firearm to a person working with law enforcement. CAMPS sent pictures of various weapons via text message, along with a price list for the guns. He was selling assault rifles, tactical ballistic body armor, military grade ammunition, silencers, and a variety of tactical accessories. CAMPS also possessed, and was willing to sell, various badges and patches from area police departments. CAMPS has a prior felony conviction for violating a domestic violence court order and is prohibited from possessing firearms.
A second defendant, Roger Lee Hiddleston, 44, of Seattle, pleaded guilty in November 2014 and was sentenced to six years in prison for possessing a firearm and supplying heroin to CAMPS. Police stopped Hiddleston’s car after he left the Magnolia home. Inside they found heroin, methamphetamine, drug distribution materials, and $2,225 in currency. In the trunk they recovered a Sig Sauer Model P230 9mm Kurz semi-automatic pistol. Hiddleston is also prohibited from possessing firearms due to a domestic violence order.
The case was investigated by the Seattle Police Department, the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Lummi Tribal Couple Sentenced to Prison for Dealing Heroin, Meth and Crack CocaineRead the Press Release
Two members of the Lummi Indian Tribe were sentenced today in U.S. District Court in Seattle to prison terms for conspiracy to distribute controlled substances, including heroin and methamphetamine, announced Acting U.S. Attorney Annette L. Hayes. TANYA JEFFERSON, 45, was sentenced to 18 months in prison, and her husband JOHN JEFFERSON, 37, was sentenced to 46 months in prison. Both were charged federally in August 2014, following an undercover investigation by the Lummi Police Department and the FBI. In November 2014, both entered guilty pleas admitting that on five different occasions in April 2013, the JEFFERSONs sold heroin or methamphetamine to a person working with law enforcement. At sentencing U.S. District Judge Richard A. Jones said, “Every time you sell drugs you impact someone’s life…. Anytime you introduce those drugs in your tribe, you don’t know what type of tailspin of addiction you have introduced.”
“Heroin and methamphetamine trafficking has no place in any of our communities, least of all on tribal lands,” said Acting U.S. Attorney Annette L. Hayes. “Heroin abuse is a growing problem in Western Washington and beyond, with an alarming increase in overdose deaths, especially among people under thirty. Last week I convened a heroin summit to focus community resources on battling what has become a growing epidemic of opioid abuse. I commend the work of our Tribal partners, the Lummi, to lead in the effort to prevent heroin use and overdose deaths.”
In partnership with Lummi public health agencies, Lummi Nation police officers are some of the first in Western Washington to be trained to recognize the symptoms of heroin or opioid prescription drug overdose and administer naloxone, an opioid blocker to help prevent needless overdose deaths in the community. In the first ten months of the program, officers have successfully administered naloxone in eleven overdose situations and saved lives that otherwise would have been lost.
JOHN JEFFERSON has a lengthy criminal history with 59 adult convictions for a range of offenses, including assault and battery, aggravated theft, violation of no-contact orders, and resisting arrest. His most recent conviction is for domestic violence against his wife, and in that case he attacked her to prevent her from calling the police. He also failed to complete his domestic violence treatment sessions. TANYA JEFFERSON has prior convictions for drug dealing and forgery. She is now barred by the tribe from the Lummi reservation because of her drug dealing.
The case was investigated by the Lummi Police Department and the FBI. The case was prosecuted by Assistant United States Attorney Jerrod Patterson.
CEO of China Based Energy Company Sentenced to Five Years in Prison for Securities FraudRead the Press Release
February 20, 2015
The Chief Executive Officer of an energy firm headquartered in Tukwila, Washington, was sentenced today in U.S. District Court in Seattle to five years in prison, three years of supervised release and a $10,000 fine for two counts of Securities Fraud, announced Acting United States Attorney Annette L. Hayes. DICKSON LEE, 66, served as the CEO of L & L Energy Inc., until his arrest last year. L&L, a formerly NASDAQ listed company, purported to be engaged in various aspects of the coal business including mining, washing, and wholesale distribution of coal, all within the People’s Republic of China. LEE falsified reports to the U.S. Securities and Exchange Commission (SEC) regarding the existence of a Chief Financial Officer and, in a separate scheme, issued under false pretenses hundreds of thousands of shares of L&L stock to individuals controlled by LEE in a scheme to raise cash for the company. At the sentencing hearing U.S. District Judge Richard A. Jones said the case should send a message to CEOs “if you engage in deceit and false representations. . . there will be severe consequences.”
“Investors rely on the representations made by publicly traded companies, both in accounting records and their filings with regulators such as the Securities and Exchange Commission,” said Acting U.S. Attorney Annette L. Hayes. “Mr. Lee’s fabrications about key facts concerning his company undermined one of the foundations of our capital markets. That is what he has been held to account for today.”
According to records in the case, in 2008 and 2009, while trying to get L&L stock listed on a national exchange, LEE falsely reported the identity of the company’s Chief Financial Officer (CFO) and lied about the existence of adequate internal controls in public SEC filings. In fact, the person LEE claimed was the CFO had refused to accept the position, and L&L had no CFO to ensure accurate financial reporting. In 2009, when the purported CFO discovered the fraud, LEE paid the individual tens of thousands of dollars in cash and stock in exchange for her silence, and never disclosed the arrangement to shareholders. Finally, in 2013, during a subsequent SEC investigation, LEE falsely testified under oath about the CFO’s role in the company.
In the second count of Securities Fraud, LEE admits that in 2011 and 2012, he issued 730,000 shares of company stock to third-parties in China who, at LEE’s direction, sold the shares on the market to generate revenue for cash-strapped L&L. At the time, LEE knew that the SEC had initiated an investigation into L&L’s affairs and that raising cash through established investment banks was no longer a viable option. LEE also knew that L&L’s Board had been specifically advised that it could not authorize the direct issuance and sale of stock without public disclosure of the investigation. LEE, therefore, secretly issued L&L stock to China-based individuals under false pretenses and then directed their sale without ever disclosing the truth about the company. In order to further conceal his actions, LEE directed that the shares be falsely recorded in L&L’s accounting records as having been issued for compensation for services, although none of these individuals provided any benefit to L&L in return for the shares.
“This case should serve as a warning to those out there who think that rules don’t apply to them, who let their greed outweigh their obligation to the public trust,” said Special Agent in Charge Frank Montoya, Jr., of the FBI’s Seattle field office. “Those people should know the FBI is deeply committed to protecting the community against those who would violate that trust.”
In their sentencing memo, prosecutors explain how these crimes impact the investing public, writing to the court: “Dickson Lee’s conduct was particularly egregious because he flagrantly and repeatedly sought to undermine basic gatekeeping systems erected to prevent unaccountable corporate executives from fleecing investors….Lee…betrayed a deep contempt for the regular investor. The consequence of Lee’s actions is continued mistrust by the public in corporate executives, erosion of confidence in the securities markets, and significantly higher investment costs as investors spend more to conduct their own due diligence. This limits participation and the result is a less open and less liquid market to the detriment of the economy.”
The case was investigated by the FBI. A parallel civil case is being pursued by the SEC. The case is being prosecuted by Assistant United States Attorney Kathryn Kim Frierson.
Medical Device Maker Agrees to Pay $495,000 to Settle Allegations it Improperly Rewarded Military Physicians for Choosing Company DevicesRead the Press Release
MED-EL USA, based in Durham, NC, has settled claims that it improperly sought to influence military physicians to surgically implant MED-EL hearing devices in patients with hearing loss, Acting United States Attorney Annette L. Hayes announced today. MED-EL USA, a subsidiary of Austrian-based MED-EL, manufactures and sells cochlear implants and other hearing devices. The company agreed to pay the U.S. Army and U.S. Navy a total of $494,951 to settle allegations that it improperly provided meals and trips to an Army and a Navy Ear, Nose and Throat (ENT) specialist. The physicians were stationed at Madigan Army Medical Center in Tacoma, Washington and at the San Diego Naval Medical Center in San Diego, California.
“Patients need to be confident that their physician is selecting the best and most appropriate medical devices for their medical conditions – not the device that will result in free travel and/or a free meal for their doctor,” said Acting United States Attorney Annette L. Hayes. “That is why the Anti-Kickback Statute and False Claims Act generally prohibit payments to physicians, in cash or in-kind, in the hopes of influencing their medical decision-making and inducing them to order particular procedures, treatments and/or medical devices. Enforcement of these laws is particularly important in the military context given our obligation to provide quality healthcare to our servicemen and women and their families.”
According to today’s settlement, between 2010 and 2013, MED-EL USA embarked upon a deliberate campaign to increase the use of its products in Defense Department medical facilities. The government’s investigation revealed that MED-EL USA targeted the above-referenced Army and Navy ENTs and attempted to influence their choice of hearing devices by providing them free meals, overseas travel opportunities and honoraria requiring little to no actual work by the physicians. MED-EL USA sales to the military jumped from none to $400,000 during the period the two military physicians were the recipients of the company’s largesse.
In resolving the allegations involved in today’s settlement, MED-EL USA admits to no wrongdoing. Further, the company has dismissed its former Chief Operating Officer and terminated its relationship with the external sales consultant who orchestrated the alleged improper payments scheme.
The case was handled by Assistant United States Attorney Harold Malkin. Mr. Malkin heads the Affirmative Civil Enforcement (ACE) Unit for the U.S. Attorney’s Office.
The case was investigated by the Seattle Office of the Defense Criminal Investigative Service and the Army Criminal Investigation Command, Major Procurement Fraud Unit.Long-Time Seattle Area Pimp Sentenced to 10 Years in Prison for Sex Trafficking JuvenileRead the Press Release
A long-time Seattle area pimp was sentenced today in U.S. District Court in Seattle to 10 years in prison and 25 years of supervised release for Sex Trafficking of a Child, announced Acting United States Attorney Annette L. Hayes. DESMOND TREVAIN MANAGO, 26, pleaded guilty in September 2014, admitting that he forced a juvenile female to engage in prostitution in Washington, Idaho, Colorado, Arizona, and California. At sentencing U.S. District Judge Ricardo S. Martinez said, “Sex trafficking of children is seen as one of the worst crimes. . . You are affecting someone’s life forever.”
“Like the countless pimps who came before him, this defendant was manipulative and predatory,” said Acting United States Attorney Annette L. Hayes. “He viewed his victims as commodities that earned him money, and has spent his entire adult life exploiting troubled young women for his financial gain. The prison term and the federal supervision imposed by the court will produce long-term protection against future exploitation of vulnerable victims by this defendant.”
According to records in the case, between October and December 2012, MANAGO used force, fraud and coercion to cause a juvenile female victim to engage in commercial sex acts. MANAGO advertised the juvenile victim on Backpage.com and also forced her to “walk the track” – an area known for prostitution. The juvenile victim was forced to give MANAGO all the money she earned. In November 2012, MANAGO, accompanied by one of his family members, drove the juvenile victim and an adult woman to other states to work as prostitutes. MANAGO posted advertisements of his victims on Backpage.com in the different states and physically assaulted the adult victim. MANAGO left his victims in California and instructed them to wire their prostitution earnings to him in Seattle. Once MANAGO left the juvenile victim in California she broke free from his control.
MANAGO was prosecuted in King County Superior Court in 2009 as a member of the West Side Street Mobb – a gang that forced girls into prostitution to make money. MANAGO was sentenced to 30 months in prison. After he finished his prison sentence, he returned to the King County Jail for various violations. Jail records show that he continued to run his prostitution business while incarcerated, forcing women to pay some of their prostitution earnings to him while he was locked up.
MANAGO was arrested October 3, 2013 during a traffic stop for outstanding warrants. He was transferred to federal custody a year ago.
The case was investigated by the FBI, King County Sheriff’s Office and Tacoma Police Department. The case was prosecuted by Assistant United States Attorneys Kate Crisham and Ye-Ting Woo.
California Man who Fraudulently Obtained and Sold Computers Destined for Schools and Non-Profits Sentenced to 10 Years in PrisonRead the Press Release
A Palmdale, California resident who defrauded a federal government program designed to provide computers to needy schools and non-profits was sentenced today in U.S. District Court in Seattle to 10 years in prison for wire fraud, aggravated identity theft, and filing a false income tax return, announced Acting United States Attorney Annette L. Hayes. STEVEN ALEXANDER BOLDEN, 51, pleaded guilty in January 2014. His sentencing was delayed while criminal charges in California were resolved. At today’s sentencing hearing U.S. District Judge Ricardo S. Martinez ordered BOLDEN to pay $7.2 million in restitution. Judge Martinez said, “You’ve been a con man for a long, long time. . . You committed a very serious crime . . . Stealing from children . . . Children all across America.”
“Thousands of kids would have benefitted from the equipment this defendant stole,” said Acting United States Attorney Annette L. Hayes. ”The Computers for Learning program’s goal has always been to put computer technology in more classrooms, so that more kids have the opportunity to be educated to their full potential. Stealing education opportunities from needy kids makes this fraud particularly egregious.”
According to court records, between 2007 and 2013, BOLDEN defrauded a Government Services Administration (GSA) program called “Computers for Learning,” that transfers excess government computers and related peripheral equipment directly to qualified schools and educational non-profit organizations. BOLDEN posed as 14 different non-profits to obtain the computers for free, and then sold them for his personal profit. Over the course of the scheme, BOLDEN obtained 19,442 items through the program with an original purchase price of $30.3 million. Based on its “fair market value,” the computer equipment that BOLDEN fraudulently acquired was worth about $7.2 million.
According to records in the case, BOLDEN became acquainted with a person operating a legitimate non-profit in Southern California. BOLDEN convinced the head of the non-profit to let him review the paperwork for the organization. Using the non-profit organization’s information, BOLDEN created an account in the Computers for Learning program, and in July of 2010, obtained 41 Dell and HP computers that were made available by the Border Patrol at Blaine, Washington. BOLDEN claimed the computers and later sold them for his own benefit. BOLDEN was convicted of aggravated identity theft because he used the identities of the non-profit organization and his acquaintance to further his scheme.
BOLDEN failed to report any income from the sale of the computers. In fact, records from a computer recycler in Santa Ana, California show it paid BOLDEN more than $64,892 in 2012. BOLDEN failed to report any of that income on his tax return.
BOLDEN was sentenced in California in September 2014, to a seven year prison sentence for a domestic violence crime which occurred in October 2013.
The case was investigated by multiple law enforcement partners led by the General Services Administration Office of Inspector General (GSA-OIG), the Internal Revenue Service Criminal Investigation (IRS-CI), the Department of Transportation Office of Inspector General (DOT-OIG), the Department of Justice Office of Inspector General (DOJ-OIG), the Department of Energy Office of Inspector General (DOE-OIG), the Department of Veterans Affairs Office of Inspector General (VA-OIG), the Social Security Administration Office of Inspector General (SSA-OIG), the Department of Homeland Security Office of Inspector General (DHS-OIG), the Army Criminal Investigation Division (CID) and the FBI.
The case was prosecuted by Assistant United States Attorney David Reese Jennings.
Canadian Youth Soccer Coach Arrested for Seeking Sex with Undercover Agent Posing as 12-Year-Old GirlRead the Press Release
A 47-year-old man from Surrey, British Columbia was arrested yesterday afternoon at a park in Burlington, Washington, where he was expecting to meet a 12-year-old girl whom he had tried to entice into having sexual contact with him, announced Acting United States Attorney Annette L. Hayes. KULDIP “KELLY” SINGH MAHAL, responded to a Craigslist posting and began communicating with what he believed to be a 12-year-old girl. In fact, he sent multiple sexually explicit messages and photos to an undercover agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). MAHAL, who works as a facilities manager for a Vancouver BC tech firm, crossed the border into the U.S. at Blaine yesterday and headed toward the park where he had agreed to meet the girl. MAHAL is a volunteer coach for a U-16 soccer team in British Columbia. He made his initial appearance in U.S. District Court in Seattle today and will remain detained pending a hearing on Monday, February 9, 2015.
“Homeland Security Investigation Agents work hard each day to keep our country, and in this case our children, safe from those who would do them harm,” said Acting United States Attorney Annette L. Hayes. “I am grateful for their hard work in this case.”
According to the complaint filed in the case, MAHAL responded to a posting on the Vancouver BC Craigslist site on January 15, 2015. MAHAL sent a picture of his arms and upper body, and expressed interest in a sexual relationship. MAHAL continued to communicate with the undercover agent even after the agent said she was 12-years-old. In fact MAHAL is alleged to have sent sexually explicit photos of himself and repeatedly requested the “girl” send sexually explicit photos of herself back to him. MAHAL allegedly engaged in lengthy sexualized chats via text message with the “girl.”
“In three weeks’ time, the defendant went from responding to an online posting to traveling from Canada to Washington State to meet a minor for illicit sex,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “Fortunately, he was actually communicating with an undercover HSI special agent. Individuals who cross international borders to sexually abuse children, whether they are Americans traveling overseas or foreigners traveling to the U.S., are within HSI’s jurisdiction and will be held to account for their crimes.”
Enticement of a Minor is punishable by a mandatory minimum term of imprisonment of ten years, and up to life.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Kate Vaughan. Ms. Vaughan heads up the Project Safe Childhood efforts of the U.S. Attorney’s Office. More on Project Safe Childhood here.
Snoqualmie Washington Man Indicted for Extensive Benefits Fraud SchemeRead the Press Release
A federal grand jury has indicted a former federal employee for multiple counts of wire fraud and mail fraud, and making false statements in connection with an extensive scheme to fraudulently obtain federal and state benefits, announced Acting United States Attorney Annette L. Hayes. DARRYL LEE WRIGHT, 46, of Snoqualmie, Washington, will appear today in U. S. District Court in Tacoma at 2:30 p.m. His sister KAREN M. BEVENS, 43, of Duvall, Washington, who is charged in one of the counts, will appear for arraignment next week. The indictment was returned following an investigation that revealed that WRIGHT was making false and conflicting claims to various agencies in an effort to fraudulently obtain benefits. The charged criminal conduct allegedly occurred from 2005 to the present, during which WRIGHT is alleged to have fraudulently received more than $250,000 in benefits.
According to the indictment, WRIGHT made a variety of false claims in his scheme to defraud the Department of Veterans Affairs, the Social Security Administration, and the Washington State Department of Employment Security. False statements also were made to the Department of Commerce, the Office of Personnel Management, the Washington State Department of Social and Health Services and the U.S. Army.
The nine count indictment charges schemes to commit both wire fraud and mail fraud, making false statements to the Army, and making a false statement to the U.S. Department of Commerce.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by multiple agencies led by the Social Security Office of Inspector General (SSA-OIG). The Office of Inspector General of these agencies were involved in the investigation: Veterans Affairs (VA-OIG), Department of Commerce (DOC-OIG), Office of Personnel Management (OPM-OIG), and General Services Administration (GSA-OIG). Also contributing to the investigation is the FBI, U.S. Army Criminal Investigation Division, the Washington National Guard, the Washington Employment Security Department and the Washington State Department of Social and Health Services.
The case is being prosecuted by Assistant United States Attorney David Reese Jennings.
Fugitive Bank Robber, on the Run for Nearly 5 Years, Pleads Guilty to Federal ChargesRead the Press Release
A convicted bank robber who absconded from supervised release and committed crimes across two states pleaded guilty today in U.S. District Court in Seattle to escape, being a felon in possession of a firearm and interstate transportation of a stolen vehicle, announced Acting United States Attorney Annette L. Hayes. BRADLEY STEVEN ROBINETT, 46, will be sentenced by U. S. District Judge James L. Robart on May 4, 2015. ROBINETT was arrested in Hillsboro, Oregon, in June 2014, after being on the run for nearly five years. ROBINETT was arrested after police, using an automated license plate reader in a shopping mall parking lot, determined the car he was driving had been stolen in King County, Washington. The police officers waited for the driver to return to the vehicle and arrested ROBINETT without incident.
According to court filings, ROBINETT was convicted of bank robbery, and in 2004 was sentenced to seven years in prison. In August 2009 he was released from a federal prison in Arizona and put on a bus to Seattle with the requirement that he report to a specific halfway house within 48 hours. ROBINETT never reported to the halfway house and a warrant was issued for him for escape. In September 2009, police on Bainbridge Island, Washington attempted to stop a car that led them on a high speed chase. ROBINETT was driving the car, fled from it and got away. Inside the car officers found a Glock 9mm pistol and a ballistic vest. Both items were stolen from the Seattle Police Department several years earlier. The vehicle ROBINETT was driving was reported stolen in Oregon. Prior to his arrest in June, the last time law enforcement saw ROBINETT was in November of 2009, when Washington State Patrol detectives encountered ROBINETT at a Park & Ride facility in Bellevue. At the time, ROBINETT was operating a stolen vehicle. ROBINETT attempted to ram a WSP vehicle before fleeing the area. The WSP trooper driving the vehicle managed to avoid the collision, but ROBINETT was able to escape.
In addition to his bank robbery conviction, ROBINETT has prior felony convictions for possession of stolen property (King County and Clallam County), unlawful possession of a machine gun, car theft and burglary (King County).
In 2011, ROBINETT was featured on the programs Washington’s Most Wanted and America’s Most Wanted.
The investigation was a joint effort between the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the FBI, the U.S. Marshals Service, the Washington State Patrol (WSP), the Bainbridge Island Police Department, and the Hillsboro, Oregon Police Department.
The case is being prosecuted by Assistant United States Attorney Mike Dion.
Man Who Preyed on Vulnerable with Sweepstakes Scam Sentenced to PrisonRead the Press Release
A South King County man who preyed on people across the country with a phony sweepstakes scam, was sentenced today in U.S. District Court in Seattle to two years in prison, three years of supervised release and $238,346 in restitution announced Acting United States Attorney Annette L. Hayes. EUGENE MAGANYA, 30, of Des Moines, Washington was indicted and arrested in February 2014, after a victim alerted law enforcement that he had sent a money order to a commercial post office business in Covington, Washington. The investigation revealed that more than 120 people had sent money orders or wired funds to various false identities used by MAGANYA. The victims sent the money thinking it was a fee for processing sweepstakes winnings. At sentencing U.S. District Judge Thomas S. Zilly noted the scam specifically targeted those who are “older and more vulnerable.”
According to records filed in the case, MAGANYA and co-conspirators in California sent out letters indicating the recipients had won a substantial sweepstake prize. The letters contained a check, and the recipients were told to deposit the check and send a portion of the money back as a fee to process the sweepstakes winnings. The checks were bogus, but before the recipient knew the check would not clear, the victim had withdrawn funds for the “fee” and sent it back to the scammers. The man who originally tipped off police had sent a money order for $2600 to one of MAGANYA’s false identities at the commercial mail box location. The day after MAGANYA’s arrest, the operators of the mail box store alerted police when another letter arrived for that same false identity – inside was $1000 cash from a 77-year-old woman who thought she too had won a sweepstakes.
At the time of his arrest, law enforcement discovered false drivers’ licenses in seven different names, all with MAGANYA’s picture. Agents contacted MoneyGram and Western Union and requested a list of all payments that had been sent to one of the fake identities that MAGANYA had in his possession at the time of his arrest. According to MoneyGram and Western Union, their records showed that over 120 victims had sent $346,760 in funds to the fake identities that MAGANYA possessed. Three co-conspirators were arrested in California and are being prosecuted there as well.
Writing to the court, Assistant United States Attorney Thomas Woods described the impact on the victims. “This was a cruel scheme. It preyed upon people’s hopes and wishes, leading them to believe that they had won a substantial amount of money. Many of the victims undoubtedly were down on their luck, and the letter must have appeared as a godsend. Very few of the victims likely could afford to lose the money that they did. Many of them lost thousands of dollars. Just as important, many of the victims emerged from the case scarred, less likely to trust others….”
Investigators were able to trace $238,346 of the wired funds to specific victims, but were unable to identify the victims associated with about $100,000 of wired funds.
The Federal Trade Commission has information on the sweepstakes scam here. As the FTC notes on the webpage, “Throw away any offer that asks you to pay for a prize or a gift. If it’s free or a gift, you shouldn’t have to pay for it. Free is free.”
The case was investigated by the U.S. Postal Inspection Service, the Covington Police Department and the FBI. The case was prosecuted by Assistant United States Attorney Thomas Woods.
Robber Dubbed “Alabama Band Robber” Pleads Guilty to 2014 Bank Robbery SpreeRead the Press Release
A serial bank robber dubbed the “Alabama Band Robber” because of a hat he wore, pleaded guilty today in U.S. District Court in Seattle to five counts of bank robbery and one count of possession of a stolen firearm, announced Acting United States Attorney Annette L. Hayes. MICHAEL RYAN HARDESTY, 40, of Woodinville, Washington was arrested August 19, 2014, after law enforcement linked him to five bank robberies in King, Snohomish and Whatcom Counties. When HARDESTY is sentenced on April 23, 2015, both sides agree to recommend a sentenced between nine and 13 years in prison. However, U.S. District Judge Ricardo S. Martinez is not bound by the recommendation and can impose any sentence allowed by law.
According to records filed in the case, HARDESTY was identified as a suspect in multiple bank robberies after the FBI released surveillance photos from the banks and dubbed him the “Alabama Band Robber” because of a hat that had the band’s distinctive name above the brim. He wore the hat in the July 11, 2014 robbery. A tipster identified the robber from the photos. HARDESTY pleaded guilty to the following robberies:
Bank of America, Martha Lake Branch, Lynnwood, July 7, 2014
Whidbey Island Bank, North Seattle Branch, July 11, 2014
Washington Federal, Bakerview Branch, Bellingham, July 18, 2014
Washington Federal, Lakeview Branch, Bellingham, July 25, 2014
Wells Fargo, Martha Lake Branch, Lynnwood, July 30, 2014
Law enforcement identified two cars associated with HARDESTY. One car was located in Burlington, Washington, but HARDESTY was able to evade police. Later, the Snohomish County Violent Offender Task Force (SCVOTF) located HARDESTY on I-5 in Snohomish County. He fled on foot and was ultimately apprehended by a K-9 who tracked him to the 12700 block of 3rd Avenue West. Law enforcement discovered a stolen firearm in HARDESTY’s belongings. A total of nearly $35,000 was stolen in the five robberies.
The case is being prosecuted by Assistant United States Attorney J. Tate London.
Several agencies were involved in the bank robbery investigation, as well as searching for the suspect, including the FBI’s Seattle Safe Streets Task Force, King County Sheriff’s Office, Whatcom County Sheriff’s Office, Bellingham Police, Mt. Vernon Police, Burlington Police and Child Protective Services. The Snohomish County Violent Offender Task Force is a multi-agency unit partnership with the Snohomish County Sheriff’s Office, U.S. Marshals Service and Department of Corrections.Key Player in ‘Silk Road 2.0’ Arrested in BellevueRead the Press Release
A Bellevue, Washington resident who assisted in the management of the Silk Road 2.0 website was arrested late last week on a complaint charging him with conspiracy to distribute heroin, methamphetamine, and cocaine, announced Acting United States Attorney Annette L. Hayes. BRIAN RICHARD FARRELL, 26, who used the moniker “DoctorClu” on the Silk Road site came to the attention of Homeland Security Investigations agents last July. Silk Road 2.0 was a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. The investigation of FARRELL resulted in a search warrant that was served earlier this month, and the arrest of FARRELL. He will appear in U.S. District Court in Seattle at 2:00 PM today.
“The arrest of Mr. Farrell is proof that federal law enforcement continues its efforts to root out those who subvert the Internet to set up black markets for illegal goods,” said Acting U.S. Attorney Annette L. Hayes. “Those who attempt to hide their tracks using sophisticated computer networks will be found because of the determined work of law enforcement agencies such as Homeland Security Investigations, the U.S. Postal Inspection Service and the FBI.”
“The coordinated efforts of U.S. and international law enforcement agencies to disrupt anonymous black market websites continues to pay off with this arrest,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “It is one of HSI’s top priorities to shutdown these hidden websites and bring their criminal operators and customers to justice."
According to the criminal complaint, Silk Road 2.0 went online in November 2013 following the government’s seizure of the first Silk Road website and the arrest of its alleged owner and operator, Ross William Ulbricht, a/k/a “Dread Pirate Roberts.” In November 2014, Blake Benthall, a/k/a “Defcon,” the operator of the Silk Road 2.0 site, was arrested in San Francisco. The complaint filed today charges that FARRELL was a key assistant to Benthall in running the site.
“Silk Road 2.0” was one of the most extensive, sophisticated, and widely used criminal marketplaces on the Internet. The website operated on the “Tor” network, a network of computers on the Internet, located around the world, designed to ‘anonymize’ or conceal the true IP addresses of computers that used the network and thereby the identities of the network’s users. Since its launch in November 2013, Silk Road 2.0 was used by thousands of drug dealers and other vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to buyers throughout the world, as well as to launder millions of dollars generated by these unlawful transactions. As of September 2014, Silk Road 2.0 was generating sales of at least approximately $8 million per month and had approximately 150,000 active users.
FARRELL was one of the small staff of online administrators and forum moderators who assisted Blake Benthall with the day-to-day operation of the website. Benthall and this small staff controlled and oversaw all aspects of Silk Road 2.0, including, among other things: the computer infrastructure and programming code underlying the website; the terms of service and commission rates imposed on vendors and customers of the website; and the massive profits generated from the operation of the illegal business. The complaint alleges that FARRELL, operating under the moniker “DoctorClu,” was involved in activities such as approving new staff and vendors for the website, and organizing a denial of service attack on a competitor. When the search warrant was served at FARRELL’s Bellevue home, agents seized $35,000 in cash as well as silver bullion and various types of drug paraphernalia.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Seattle-Tacoma Border Enforcement Security Task Force (BEST Seattle), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the United States Postal Inspection Service (USPIS), and the FBI. The case is being prosecuted by Assistant United States Attorney Thomas Woods.
BEST Seattle is comprised of members from HSI; U.S. Customs and Border Protection's Office of Field Operations; the U.S. Secret Service; the U.S. Coast Guard Investigative Service; the USPIS; and the Seattle and Port of Seattle police department. BEST Seattle investigates smuggling and related crimes and combats criminal organizations seeking to exploit vulnerabilities at the Seattle and Tacoma seaports and adjacent waterways.
Former Finance VP Sentenced for Embezzlement SchemeRead the Press Release
The former Vice President of Finance for the NW Division of US Foodservice was sentenced today in U.S. District Court in Tacoma to 30 months in prison, three years of supervised release and $496,845 in restitution, announced Acting United States Attorney Annette L. Hayes. JASON A. GREEN, 37, of Puyallup, Washington, conspired with his friend, Jimmie Dillingham, to steal from GREEN’s employer, US Foodservice. GREEN pleaded guilty to mail fraud, resulting in a loss of nearly half a million dollars to US Foodservice, in November 2013. In November 2014 Dillingham pleaded guilty to mail fraud and will be sentenced later this year. At the sentencing hearing U.S. District Judge Ronald B. Leighton told GREEN, “This offense is serious, it tears at the fabric of society . . . [it is the type of offense that] has a corrosive effect on people who didn’t have your opportunity. You were blessed. I can’t see the motivation.”
According to records in the case, beginning in July 2009 and continuing until late 2010, GREEN and Dillingham made up phony invoices indicating that Dillingham’s company had done work for US Foodservice. GREEN abused his access to payment systems at the company to approve expenditures for work that was never done. GREEN changed computer codes in the accounting records to conceal the fraud. In one part of the scheme, the men invented a security company and submitted phony bills for work it allegedly did at a Clark County warehouse. GREEN used his access to US Foodservice accounts to cancel the contract with a legitimate company and instead steered the business to Dillingham’s company. The warehouse property was later sold. After the men submitted the invoices for payment, Dillingham would deposit the checks and share the funds with GREEN. Both men gambled significant amounts of the embezzled money at area casinos.
In December 2010, the company tried to untangle shortfalls in various accounts and GREEN quit his job when confronted about fraudulent entries in the books. The company notified law enforcement which began the financial investigation.
The case was investigated by the FBI and the U.S. Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Arlen Storm.
Repeat Identity Thief Pleads Guilty to Mail Theft, Access Device Fraud and Aggravated Identity TheftRead the Press Release
A repeat offender with prior convictions for forgery and identity theft pleaded guilty today in U.S. District Court in Seattle, announced Acting U.S. Attorney Annette L. Hayes. BOBBIE DENISE CATTON, 50, pleaded guilty to two counts of possession of stolen mail, one count of access device fraud and one count of aggravated identity theft. When sentenced by U.S. District Judge James L. Robart, CATTON faces a mandatory minimum two years in prison for the aggravated identity theft that will run consecutive to any other prison time imposed on the other charges.
According to records filed in the case, between March of 2013 and January of 2014 CATTON and her cohorts stole large volumes of mail throughout King County from homes and apartment complexes. They used stolen checks, credit and debit card information and identifying documents to commit various types of fraud. When arrested by a King County Sheriff’s Deputy following a traffic stop, CATTON had dozens of credit/debit cards and bank statements in others’ names in her possession, along with financial and identifying information for hundreds of others.
CATTON was previously prosecuted federally in 2002 for identity fraud and was sentenced to 33 months in prison. She has multiple state convictions for, among other things, forgery and possession of stolen property.
The case was investigated by the King County Sheriff’s Office and the U.S. Postal Inspection Service (USPIS). The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Sequim Drug Trafficker Pleads Guilty to Meth Distribution ConspiracyRead the Press Release
The former owner of ‘Sellin Style’ car dealership in Sequim, Washington pleaded guilty last week to conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute, announced Acting U.S. Attorney Annette L. Hayes. TIMOTHY P. SMITH, 30, was arrested in February 2014, following a high speed chase that ended after two sets of spike strips were placed on the highway. All of SMITH’s charged co-conspirators, Kelsey J. Davis, Tammy R. Coburn, Holli A. Bell, Jacob E. Davis, and Charles D. Aslin, have also pleaded guilty in the case. SMITH faces a mandatory minimum ten years in prison, and up to life imprisonment, when sentenced by U.S. District Judge Robert J. Bryan on March 27, 2015.
According to records in the case, SMITH and his cohorts were under investigation by federal law enforcement since 2011. Some of the federally indicted offenses, investigated by local law enforcement, went back even further. In particular, SMITH sold methamphetamine to a person working with law enforcement on multiple occasions in June, July and August 2013 at his ‘Sellin Style’ car dealership on Old Blyn Highway near Sequim.
In conjunction with a separate investigation and take-down of a larger drug ring, which was supplying methamphetamine to SMITH and others, law enforcement arrested SMITH as he traveled back to Sequim from Kitsap County on Sunday evening, February 23, 2014. Shortly after SMITH’s vehicle crossed the Hood Canal Bridge, the Washington State Patrol pulled the car over. After initially stopping, SMITH sped away, traveling at speeds nearing 100 mph and weaving into the lane for oncoming traffic. Troopers noticed white bags tossed from the car; inside was 1.6 pounds of methamphetamine. The car hit one set of spike strips and continued on. After hitting a second set of spike strips the car came to a halt and SMITH and his girlfriend, Kelsey Davis, were taken into custody. Davis also had $4,000 in cash on her person, which she revealed in a monitored jail call to have been given to her by SMITH during the police chase.
The case was investigated by the FBI, ATF, and Olympic Peninsula Narcotics Enforcement Team (OPNET), a task force containing officers from Clallam County Sheriff’s Office, Jefferson County Sheriff’s Office, Port Angeles Police Department, Sequim Police Department, Neah Bay Department of Public Safety, Elwha Klallam Police, LaPush Police, the U.S. Coast Guard, U.S. Border Patrol, the Washington Department of Corrections, Washington State Patrol and the West Sound Narcotics Enforcement Team (WestNet).
The case is being prosecuted by Assistant United States Attorney Gregory A. Gruber.
Former Bellingham Financial Adviser Sentenced to Prison for Wire Fraud Involving Theft from Elderly ClientsRead the Press Release
A long-time tax and financial adviser in Bellingham, Washington was sentenced today to 51 months in prison, three years of supervised release and $251,892 in restitution for wire fraud, announced Acting U.S. Attorney Annette L. Hayes. JEFFREY M. KNUTSEN, 43, owned and operated Bellwether Financial Services dba Bellwether Wealth Management. In July 2005, KNUTSEN was barred by the Financial Industry Regulatory Authority (“FINRA”) from associating with any broker-dealer as a stock broker because of a customer complaint that KNUTSEN had embezzled from the client’s account. FINRA is an industry organization which regulates financial brokers and brokerage firms. Despite being barred, KNUTSEN continued to work with clients – many of them elderly – and now has been convicted of stealing more than $255,000 from 26 client accounts. At sentencing U.S. District Judge James L. Robart noted that KNUTSEN had continued a career of misappropriating money saying, “This is a crime of greed -- pure unadulterated greed – plain and simple.”
“This fraud damaged the elderly victims emotionally as well as financially,” said Acting U.S. Attorney Annette L. Hayes. “They trusted Jeffrey Knutsen to honestly invest their savings so they could enjoy a secure retirement. Now they are betrayed and wary as they try to safeguard any savings they have left.”
According to records filed in the case, after being barred by FINRA, KNUTSEN did not tell his clients that he had been barred, but instead told them he was moving to a different online brokerage to reduce the fees they would have to pay. He set up online accounts with TD Ameritrade and later E*Trade in his clients’ names and retained full access and control over the accounts, including check-writing privileges. He told the clients he would charge them a management fee of one percent or less per year to manage their accounts. However over seven and a half years he caused the online broker/dealers to issue more than 200 checks for more than $250,000 without the authorization or knowledge of his clients. KNUTSEN then deposited the checks in his account and used the money for his personal gain. Many of the victims were elderly and had little understanding of online brokerage accounts.
The Financial Industry Regulatory Authority (“FINRA”) has online resources to allow clients to check on their financial advisor’s disciplinary history here. The BrokerCheck website
is a free tool that FINRA has set up to help investors research the professional backgrounds of current and former FINRA-registered brokerage firms and brokers, as well as investment adviser firms and representatives.The case was investigated by the FBI and Bellingham Police Department. The case was prosecuted by Assistant United States Attorneys Steven Masada and Justin Arnold.
Tulalip Tribal Chief Judge Theresa Pouley Visits U.S. Attorney's Office to Celebrate Native American -- Alaska Native Heritage MonthRead the Press Release
In honor of Native American/Alaska Native Heritage Month, Tulalip Tribal Chief Judge Theresa Pouley spoke to the U.S. Attorney’s Office about justice in Indian Country. The Tulalip Tribes are one of three tribal entities in the country that were authorized by Attorney General Holder to set up a pilot program to prosecute domestic violence cases involving non-native defendants in tribal court under the Violence Against Women Act (VAWA) of 2013. Judge Pouley noted that over the last nine months five cases have been brought as part of the pilot project with three convictions, one dismissal and one case scheduled for trial in January 2015. More on VAWA is available here.
Judge Pouley is also the Associate Justice of the Colville Court of Appeals, and is the former Chief Judge of the Lummi Tribal Court. Judge Pouley was appointed to the Indian Law & Order Commission by President Obama in 2011. Judge Pouley graduated from Wayne State University Law School in 1987 and is admitted to the Michigan and Washington Bars. She is a member of the Colville Confederated Tribes in eastern Washington. More on Judge Pouley is available here.
Tacoma Man Sentenced to Ten Years in Prison for Possession of more than 10,000 Tablets of MethRead the Press Release
A Tacoma man who was arrested in a hotel room with as much as $200,000 worth of methamphetamine pills, was sentenced today in U.S. District Court in Tacoma to ten years in prison, announced Acting United States Attorney Annette L. Hayes. KYLE ANDREW EVERHART, 28, was convicted at trial of possession of methamphetamine with intent to distribute in September 2014. The jury determined the quantity of the drug as part of its verdict, which by law triggered a ten year mandatory minimum sentence. At sentencing U.S. District Judge Benjamin H. Settle noted that methamphetamine is “highly addictive” and a “poison.”
According to records filed in the case, EVERHART came to the attention of law enforcement in 2013, in connection with a drug distribution ring that moved as much as $1.2 million in drug proceeds through bank accounts since 2010. A search warrant executed in June 2013, resulted in the seizure of 4,700 MDMA pills, nearly a half a pound of cocaine, approximately 1,270 pills of oxycodone, and about 3 pounds of marijuana. Law enforcement officers also found a loaded Ruger semi-automatic handgun in the glove box of EVERHART ’s car. EVERHART was prosecuted in Pierce County Superior Court in connection with that conduct he was sentenced to a deferred jail term. In April 2014, he was arrested in a Tacoma hotel with two large bags of methamphetamine worth an estimated $100,000 to $200,000. Possession of those drugs was the subject of the federal prosecution.
The case was investigated by the South Sound Gang Task Force (SSGTF). The SSGTF is composed of members of the FBI Seattle Division, Lakewood and Tacoma police departments, the Washington State Patrol, the Washington State Department of Corrections, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Drug Enforcement Administration (DEA).
The case was prosecuted by Assistant United States Attorneys Jerrod Patterson and Rebecca Cohen.Former Bellevue Developer Convicted of Tax EvasionRead the Press Release
A former Bellevue based developer and lender who spent millions on gambling, thoroughbred horse racing, private aircraft, country club fees, a Bellevue penthouse, and two Palm Springs, California, homes was convicted late yesterday of two counts of tax evasion following a nine day jury trial, announced Acting United States Attorney Annette L. Hayes. THOMAS R. HAZELRIGG, III, 68, of Redmond, Washington, was indicted in July 2013. The jury deliberated three and a half hours before finding HAZELRIGG guilty. He faces up to five years in prison on each count when sentenced by U.S. District Judge Thomas S. Zilly on March 12, 2015.
“This trial laid bare Mr. Hazelrigg's wide ranging deceit and manipulation -- all in the service of greed,” said Acting United States Attorney Annette L. Hayes. “The failure to pay taxes -- especially by someone with this defendant's financial means -- tears at the fabric of our public trust. When Mr. Hazelrigg chose not to pay his fair share, he effectively cheated everyone.”
Evidence presented at trial described how HAZELRIGG first agreed to pay $533,454 in taxes owed for tax years 1989, 1990 and 1991 and then failed to pay the tax debt while living a lavish lifestyle that included multi-million dollar property purchases and remodels and expensive artwork. HAZELRIGG also evaded payment of his taxes owed for 1994, for which he had filed a return showing tax owed, but for which he made no payments. According to testimony at trial, between 1997 and 2007, HAZELRIGG illegally funneled income from his businesses into accounts that he controlled but that he kept secret from the IRS. HAZELRIGG used these accounts to pay for the multimillion dollar purchase and remodel of a Bellevue penthouse, two Chihuly glass chandeliers worth more than $460,000, and two luxury homes in Palm Springs, California. HAZELRIGG used these secret accounts to pay various household expenses including the use of a butler.
“Thomas Hazelrigg III, wrongly thought he could hide from his tax liability,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “What makes this case so egregious is that he consented that he owed the tax and then immediately took exceptional actions to avoid his obligation to pay, all while living a lavish lifestyle. This verdict today sends a strong message that tax evasion will not and cannot be tolerated. Americans who pay their fair share can be confident that IRS Criminal Investigation will pursue those who do not.”
HAZELRIGG hid his assets for ten years, until the IRS liens expired. After the liens were removed, HAZELRIGG sent an email saying he was "legit again." Following that email, HAZELRIGG took out loans in his own name, and purchased a condo in his own name.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorneys Matthew Diggs and Brian Werner.
Two Men Indicted for Illegal Firearms Possession in Incidents on Seattle’s Capitol HillRead the Press Release
Two men have been indicted for being felons in possession of firearms in two separate incidents in Seattle’s Capitol Hill neighborhood, announced Acting United States Attorney Annette L. Hayes. ROBEL SISAY GEBREMEDHIU, 31, and AWAD Y. AYNISHER, 30, both of Seattle were arrested in September and October 2014, as part of the Seattle Police Department’s emphasis patrols in response to community concerns about crime and safety. GEBREMEDHIU was arrested on September 27, 2014, after witnesses called 9-1-1 reporting a man running down Broadway with a gun. AYNISHER was arrested October 5, 2014, after a security guard alerted police to an impaired driver at a gas station on Broadway. AYNISHER had a loaded gun in his front seat and an Uzi type weapon in the trunk of his car. Both men are prohibited from possessing firearms because they each have prior federal felony convictions.
“Convicted felons armed with high powered firearms in busy city neighborhoods are a recipe for disaster,” said Acting U.S. Attorney Hayes. “I commend the Seattle Police Officers who worked quickly to protect the public and get these individuals off the streets safely.”
“I meet regularly with Capitol Hill residents and business owners and we’ve talked at length about their crime and quality of life issues,” said Seattle Police Chief Kathleen O’Toole. “These cases demonstrate that we’re listening carefully and working with our Federal partners to address their concerns.”
Both defendants recently served lengthy federal prison sentences and were on federal supervision at the time of their arrests. In the prior criminal cases, both defendants admitted distributing drugs as part of a gang known as the East African Posse (EAP). Both have been in federal custody for violating the terms of their court-ordered supervision and will be arraigned on these new indictments next week.
According to records filed in King County Superior Court, on September 27, 2014, two Seattle Police bike officers received a report of a man with a gun running south on Broadway just as various clubs and bars were emptying out for the night. The officers saw a man in clothes matching the suspect’s description in a parking lot, standing behind a truck. As the officers approached, GEBREMEDHIU dropped what was later identified as a loaded .40 caliber Glock firearm. GEBREMEDHIU was taken into custody for being a felon in possession of a firearm.
One week later, on October 5, 2014, police officers were monitoring the late night crowd at a gas station on Broadway when a security guard alerted them to a driver who had pulled into the parking lot in a reckless manner. The officers observed that the driver appeared to have difficulty standing. When the driver, AYNISHER, returned to his car, he backed up, hitting another car in the lot. Officers asked AYNISHER to get out of the car, screened him, and arrested him for driving under the influence. The car was impounded and officers saw in plain view a loaded semi-automatic 9mm handgun on the floor of the driver’s seat. The officers obtained a warrant, searched the car and found a second firearm – a Cobray M-11 9mm semi-automatic (Uzi type) pistol -- in the trunk.
The statutory penalty for being a felon in possession of a firearm is ten years in prison. Additional penalties are available to the court for those on supervised release at the time of the new charge.
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 Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Andrew Friedman.
Kirkland Resident Arrested for Interstate Threats to KillRead the Press Release
A Kirkland, Washington resident was arrested on a criminal complaint charging three counts of making interstate threats, announced Acting U.S. Attorney Annette L. Hayes. JALEEL TARIQ ABDUL-JABBAAR, 46, was arrested this morning at his home without incident, and will make his initial appearance in U.S. District Court in Seattle at 2:00 p.m. today. According to the complaint, ABDUL-JABBAAR made repeated threats to kill an officer formerly with the Ferguson, Missouri Police Department, members of the officer’s family and other law enforcement officers.
“We are fortunate to live in a country where the right to speak out about current events and disagree with our government is protected by the highest law of the land. Our freedom of speech does not, however, extend to making threats to kill or injure law enforcement officers,” said Acting United States Attorney Annette L. Hayes. “Although we each have the right to express our views about the decision reached by the state grand jury in Ferguson, Missouri, we cannot tolerate violence or threats of violence that are intended to intimidate, and ultimately silence debate. Such threats are crimes, and the individuals who make them must be held to account.”
According to the criminal complaint, ABDUL-JABBAAR started posting threats on his Facebook page shortly after the August 9, 2014 shooting of Michael Brown, through late November. ABDUL-JABBAAR posted various statements about killing police officers and traveling to Ferguson, Missouri. Among others, ABDUL-JABBAAR stated: “We need to kill (the officer) and anything that has a badge on.” ABDUL-JABBAAR also used Facebook communications to attempt to acquire a firearm.
Making interstate threats is punishable by up to five years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorney Todd Greenberg.Four Plead Guilty to Crimes Connected to Two Hash Oil Manufacturing ExplosionsRead the Press Release
Four men charged in July 2014 with two separate hash oil explosions pleaded guilty this week in U.S. District Court in Seattle, announced Acting U.S. Attorney Annette L. Hayes. The charges relate to explosions in Kirkland on January 1, 2014 and in Bellevue on November 5, 2013. Sentencing hearings for the defendants are scheduled for March 2015.
DANIEL JAMES STRYCHARSKE, 28, and JESSE D. KAPLAN, 31, pleaded guilty today to Endangering Human Life While Manufacturing Controlled Substances, Maintaining a Drug Involved Premises and Manufacturing Hash Oil and Marijuana in connection with the Bellevue explosion and fire on November 5, 2013 at the Hampton Greens apartment complex. Former Bellevue Mayor Nan Campbell was hospitalized for a broken pelvis she suffered trying to escape the flames. She later died following complications after her hospitalization. Two other apartment residents suffered shattered bones as they had to jump from their upper level apartments.
Yesterday, ROBBY WAYNE MEISER, 46, and BRUCE W. MARK, 62, pleaded guilty to Endangering Human Life While Manufacturing Controlled Substances in connection with the January 1, 2014 explosion and fire at the Inglenook Apartments in Kirkland. The explosion and fire threw debris some 25 feet, moved the north wall of the building 6-8 inches, and disconnected the roof from the building walls.
Endangering Human Life While Manufacturing Controlled Substances is punishable by up to ten years in prison. Maintaining a Drug Involved Premises is punishable by up to 20 years in prison and Manufacturing Hash Oil and Marijuana is punishable by up to five years in prison.
The cases were investigated by multiple local and federal agencies including: the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service, the Bellevue Police Department, the Seattle Police Department, and the Kirkland Police Department.
The cases are being prosecuted by Assistant United States Attorneys Todd Greenberg and Vince Lombardi.
U.S. Attorney’s Office Collects Nearly $20 Million in 2014Read the Press Release
Acting U.S. Attorney Annette L. Hayes announced today that the U.S. Attorney’s Office for the Western District of Washington collected $6.9 million in criminal and civil actions in Fiscal Year 2014. Of this amount, $4.7 million was collected in criminal actions and $2.2 million was collected in civil actionsThe Western District of Washington also collected an additional $12.2 million in forfeited assets related to criminal activity.
Additionally, the Western District of Washington worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $5.2 million in cases pursued jointly with these offices. The vast majority of the collections in shared cases were collected in civil actions.
Attorney General Eric Holder announced that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending September 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“These financial recoveries on behalf of the taxpayers demonstrate that this office will use all the tools at its disposal to protect public safety and our tax dollars,” said Acting U.S. Attorney Annette L. Hayes. “Among many other key recoveries, the amounts collected from those who have committed environmental crimes are particularly important. They send a clear message that those who damage our natural heritage will be held to account.”
In March and April 2014, Stowe Construction Inc. paid more than $334,000 related to their conviction for violation of the Clean Water Act. Stowe Construction, and its President Bryan Stowe, admitted knowingly violating the Construction General Storm Water Permit for the Rainier Park of Industry project, located on West Valley Highway in Sumner. Permit violations contributed to two major landslides at the site in 2010 and 2011. Both slides forced closure of the West Valley Highway. The case is one of the first storm water pollution criminal cases brought in the United States. More on the case is available here.
In a second environmental case, Ray Caldwell, owner of All-Out Sewer And Drain Service, Inc., a Longview, Washington, septic tank pumping business paid a $250,000 fine in April 2014 for violations of the Clean Water Act. Caldwell illegally dumped more than two million gallons of waste and pollutants into the Longview sewer system. More on the case is here.
In civil litigation, the largest collection was $500,000 from Alaska Airlines in September 2014 to settle an FAA civil penalty claims regarding a maintenance issue. More on that case here.
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 to 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, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Western District of Washington working with partner agencies and divisions, collectednearly $12.2 million in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
One of the most significant forfeiture actions concerned three former motels in Tukwila, Washington, which were seized by the government as chronic drug involved residences. To date the value of properties forfeited in that case exceeds $3 million. Additional forfeiture proceeds in that case will be recorded in fiscal year 2015. The motel properties are now being redeveloped by the City of Tukwila. More on this innovative case is available here.
Former Amazon Recruiter Sentenced to Prison for Welfare FraudRead the Press Release
A former executive recruiter for Amazon.com was sentenced today in U.S. District Court in Tacoma to one month in prison and three years of supervised release for Social Security fraud, announced Acting United States Attorney Annette L. Hayes. Between 2009 and 2012, MARLENE SCOTT, 42, concealed the fact that her mother and sister, who were welfare recipients, had moved from the United States to Lebanon and therefore were no longer entitled to collect welfare benefits in this country. SCOTT falsely told caseworkers that her mother and sister lived with her in the Magnolia neighborhood of Seattle. By hiding her mother and sister’s departure, defendant caused the Social Security Administration to pay out more than $50,000 in benefits, which Scott then withdrew. U.S. District Judge Ronald B. Leighton noted that SCOTT took the witness stand and lied when the case went to trial in June 2014. The judge declared a mistrial after the jury was unable to reach a unanimous verdict. Judge Leighton said the story SCOTT told on the witness stand was “preposterous.” Judge Leighton said Scott’s lies on the witness stand “were a profound offense to the legal system,” and, but for the false testimony, he might have given her a probationary sentence.
According to records filed in the case, SCOTT’s mother and sister moved to Lebanon in June 2009. The following year the women visited Scott in Seattle. They opened bank accounts in Magnolia and had their welfare payments deposited into those accounts. SCOTT repeatedly accessed the benefits by using her mother’s debit card or by forging her mother’s signature. During the 2010 visit, SCOTT called Social Security and claimed her mother was living in her home and SCOTT was charging her mother fair market rent. SCOTT forged her mother’s signature on forms and lied to Social Security personal when they called asking to speak to SCOTT’s mother. When investigators visited her home, SCOTT claimed her mother was visiting her sister and brother in North Carolina and provided a non-working phone number. SCOTT knew at the time that no one in her family remained in North Carolina since her brother had moved from there to Lebanon in 2003.
After the jury failed to return a verdict, SCOTT pleaded guilty on July 25, 2014. In accordance with the plea she repaid $50,973 to the government.
As prosecutors pointed out in their sentencing memorandum, those who defraud Social Security are stealing from the very poorest and most vulnerable Americans. Worse, fraud on the welfare system corrodes the trust required to maintain programs that provide a lifeline of last resort for the poor. Taxpayers contribute to SSI based on trust that the funds will be used to support others in real need. When someone like SCOTT, an Amazon professional, intentionally exploits that trust through fraud, the result is public cynicism, which further undermines these programs. The true victims of this offense are those genuinely in need.
In choosing to impose a prison term instead of home confinement, Judge Leighton said the prison time is “important as a message. This institution, the judiciary, cannot and will not knowingly tolerate perjury.”
The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG). The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Kate Crisham.
Chinese Citizen Sentenced to Two Years in Prison for Scheme to Smuggle Restricted Parts to ChinaRead the Press Release
A citizen of China was sentenced today in U.S. District Court in Seattle to two years in prison for violating the Arms Control Export Act, announced Acting U.S. Attorney Annette L. Hayes. SEE KEE CHIN, a/k/a, Alfred Chin, 56, of Hong Kong was arrested in Seattle on February 10, 2014, after he entered the United States as part of a scheme to obtain restricted parts and illegally smuggle them to China. CHIN attempted to obtain and export accelerometers that are designated on the United States Munitions List, International Traffic in Arms Regulations. The accelerometers are designed for low and zero gravity inertial navigation systems that can be used in satellites and launch vehicle applications. At the sentencing hearing, U.S. District Judge John C. Coughenour noted that it is important to send a message to others overseas that violations of the Arms Control Act will be punished.
“We will hold to account those who circumvent requirements designed to protect our national security,” said Acting U.S. Attorney Annette L. Hayes. “This defendant attempted to smuggle restricted equipment out of the United States knowing it was illegal to do so, and he admits he was working for others in China. Ensuring our technology does not fall into the wrong hands remains a top priority.”
According to the criminal complaint, a U.S. company that sells accelerometers reported suspicious contact with a Canadian who wanted to purchase restricted equipment. Between September 2013 and February 2014, the investigation revealed that the Canadian was inquiring on behalf of CHIN, who indicated he would personally pick up the order. CHIN was arrested in Seattle after he made payment of over $85,000, and attempted to pick up the items. CHIN had indicated he planned to smuggle the parts out of the country in his suitcase. He previously discussed hiding the items in children’s toys.
“Accelerometers are fairly common, in fact most people have one in their pocket installed in their cellphone,” said Brad Bench, special agent in charge of HSI Seattle. “What Chin was after wasn’t one of those. The accelerometers he attempted to purchase are specialized pieces of equipment designed to be used in satellites. This caught the attention of HSI special agents, whose job it is to keep restricted arms parts out of the hands of our nation’s enemies. HSI is committed to thwarting clandestine attempts by foreign nationals to illegally export sensitive technology from the U.S.”
The Department of State promulgates the United States Munitions List, which consists of categories of defense articles and services that cannot be exported without a license issued by the Department of State. The U.S. Munitions List includes the accelerometers ordered in this case. As a result, the export required an export license.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigation (HSI). The case was prosecuted by Assistant United States Attorney Thomas Woods.
Olympia Man who Preyed on 16-Year-Old, Sentenced to 15 Years in Prison for Production and Possession of Child PornographyRead the Press Release
A 47-year old Olympia, Washington man who was convicted in May 2014, was sentenced today in U.S. District Court in Tacoma to 15 years in prison for production and possession of child pornography, announced Acting U.S. Attorney Annette L. Hayes. MICHAEL T. LAURSEN was found guilty by U.S. District Judge Robert J. Bryan following a two day bench trial. Evidence at trial revealed that LAURSEN supplied a 16-year-old with drugs and photographed her in sexually explicit conduct. Judge Bryan imposed 10 years of supervised release following prison.
“This defendant betrayed the trust of a vulnerable young woman, claiming he would help and protect her when it really was just a ploy to exploit her,” said Acting U. S Attorney Annette L. Hayes. “He persisted in blocking the efforts of her family to get her into drug treatment and law enforcement officers investigating the crime. This 15 year prison sentence with ten years of federal supervision to follow will protect other vulnerable members of the community.”
According to records filed in the case, the victim was known to LAURSEN through her relatives. She first met LAURSEN when she was 12-years-old. After she turned 16 years old in 2012, LAURSEN initiated a sexual relationship with her, supplied her with drugs, and encouraged her to miss school. In June 2012 and October 2012, LAURSEN took photographs of the victim, including photographs of his sexual conduct with her. LAURSEN encouraged the victim to run away from home, and then had her stay with him in motel rooms, apartments, and other person’s homes. He directed her to engage in sexually explicit acts while he took photographs.
“This joint federal, state and local agency investigation illustrates the lengths to which law enforcement will go to bring a child predator to justice,” said Brad Bench, special agent in charge of HSI Seattle. “Now, with this federal sentence, the public can rest assured Laursen will spend more than a decade behind bars with close federal monitoring to follow.”
The case was investigated by the Washington State Patrol-Missing and Exploited Children’s Task Force, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI)-South Sound Investigative Task Force, Bureau of Alcohol Tobacco and Firearms, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Seth Wilkinson.
South King County Man Convicted of Sex Trafficking Juveniles Across State LinesRead the Press Release
A 42-year-old man, who trolled neighborhoods in south King County looking for teen-age girls to recruit into prostitution, was convicted today in U.S. District Court in Seattle of four criminal counts related to sex trafficking, announced Acting U.S. Attorney Annette L. Hayes. NATHAN BONDS was convicted of two counts of sex trafficking of a juvenile and two counts of transportation of a juvenile to engage in prostitution. The jury deliberated for five hours following a four day trial. U.S. District Judge John C. Coughenour scheduled sentencing for February 10, 2015, at 9:00 a.m.
According to records in the case and testimony at trial, in April 2013, BONDS was parked outside a Kent convenience store when he spotted and befriended a 15-year-old girl who had run away from home. BONDS let the girl borrow his cell phone, and then let her sit in his car, out of the rain. BONDS manipulated the girl into accompanying him to a hotel room where he raped her. Over the next few days, BONDS coerced the girl into working for him as a prostitute, convincing her she had no other options. BONDS advertised the girl on Backpage.com and made her give him all of the money she earned from prostitution acts. He also recruited the girl’s 17-year-old friend to work for him as a prostitute. On April 19, 2013, BONDS transported the 15-year-old girl and her 17-year-old friend, as well as a drug-addicted, homeless adult woman that he had also manipulated into working for him as a prostitute, to Portland to engage in prostitution. BONDS forced the two teens to take sexually explicit photographs, and then used some of those photographs to advertise them on Backpage.com.
Ultimately, both teens returned to their families and law enforcement identified BONDS as a sex trafficker. He was arrested June 5, 2013, and law enforcement recovered the computer and cell phone he used to conduct the prostitution business, both of which contained evidence establishing BONDS’s longtime involvement in prostitution.
Sex trafficking of juveniles is punishable by a mandatory minimum sentence of ten years, and up to life imprisonment.
The case was investigated by the North-Central Sound Child Exploitation Task Force which includes officers and agents from the Kent Police Department and FBI. The King County Prosecutors Office contributed substantial assistance to the prosecution. The case was prosecuted federally by Assistant United States Attorneys Kate Crisham and Ye-Ting Woo.
Longview, Washington, Landlords Agree to Settle Disability Discrimination LawsuitRead the Press Release
WASHINGTON – The Justice Department today announced that Longview, Washington, landlords Linda and Bert Barber, and their management agent, Lori Thompson, have entered into a consent decree and have agreed pay $25,000 to resolve claims that they discriminated on the basis of disability by refusing to grant a reasonable accommodation to waive a $1,000 pet deposit for a tenant with mental disabilities who needed a dog as an emotional support animal.
The consent decree resolves a lawsuit filed by the department on July 1, 2013, alleging that the defendants refused to grant a waiver of the pet deposit despite numerous attempts by the tenant to provide documentation of her disability and her need for the emotional support animal. The complaint also alleged that the defendants retaliated against the tenant after she filed a complaint with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department. The department’s complaint also alleged that defendants’ policies constituted a pattern or practice of discrimination in violation of the Fair Housing Act because they allowed reasonable accommodations for specially-trained service animals but precluded reasonable accommodations for emotional support animals. Defendants also refused to consider accommodation requests unless tenants had their physician complete forms that threatened penalty of perjury and threatened to require the physician to defend the information provided in court. Trial was set to begin on Nov. 19.
The settlement, which was approved today by Judge Benjamin H. Settle, requires the defendants to pay $20,000 to the HUD complainant and $5,000 to the United States. The settlement also requires that the defendants adopt a reasonable accommodation policy that complies with the Fair Housing Act, receive training on the requirements of the Fair Housing Act and report to the department for a period of eighteen months on their compliance with the settlement.
“The Fair Housing Act ensures that persons with disabilities have an equal opportunity to use and enjoy housing,” said Acting Assistant Attorney General Vanita Gupta. “This includes providing reasonable and necessary accommodations to persons who need assistance animals to help them with their disabilities. The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of persons with disabilities.”
“Landlords may not impose barriers that undermine the housing rights of people with disabilities,” said Acting United States Attorney Annette L. Hayes. “This settlement requires training for property managers, and clear statements in all advertisements about fair housing/non-discrimination policies to ensure this conduct will not be repeated.”
“Property owners have a legal obligation to permit reasonable accommodations where doing so allows persons with disabilities to fully enjoy their homes,” said HUD Assistant Secretary Gustavo Velasquez for Fair Housing and Equal Opportunity. “This consent decree reaffirms HUD’s commitment to working with the Department of Justice to take appropriate action anytime the Fair Housing Act is violated.”
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Latest Participant in OID-1099 Tax Fraud Scheme Sentenced to 18 Months in PrisonRead the Press Release
The latest participant in a well-known fraudulent tax refund scheme will spend 18 months in prison for four counts of filing fraudulent tax returns, announced Acting U.S. Attorney Annette L. Hayes. CHARLES SCOTT BROWN, 54, of Camas, Washington, was sentenced last week and ordered to pay more than $1.2 million in restitution to the Internal Revenue Service. At the sentencing hearing U.S. District Judge Robert J. Bryan told him, “This is a huge tax theft, not a nickel and dime deal. This is a serious, serious offense. I don’t know how someone can do this and not expect to get jail time.”
“This defendant is the latest in a line of U.S. and Canadian scammers illegally claiming huge tax refunds at the expense of law abiding Americans,” said Acting U.S. Attorney Annette L. Hayes. “Now he is paying with his freedom, and with a share of his future earnings for the money he stole.”
Between December 2007, and February 2008, BROWN submitted four fraudulent tax returns, claiming he was owed more than $1.2 million in tax refunds. When the refund checks came in, BROWN used the money for travel to Mexico and Hawaii, shopping sprees at Nordstrom and Zappos.com, and luxury hotel stays with expensive dinners out.
“At IRS Criminal Investigation, our top priority is protecting the integrity of our nation’s tax system,” said Special Agent in Charge Teri Alexander. “Together with the Department of Justice, we have a long history of identifying and prosecuting those who promote and use abusive tax schemes. The 1099 OID scheme that was used by this defendant and others sentenced in this district is particularly troublesome. These individuals not only evaded their legal tax obligation, they took their fraud a step further and attempted to blatantly steal millions from the U.S. Treasury. Our Special Agents are dedicated to ensuring that our tax laws are administered fairly under the law. When unscrupulous individuals such as this defendant seek to take advantage of the taxpaying public, we will be there to bring them to justice.”
Examples of other defendants prosecuted in the Western District of Washington for 1099 OID fraud include:
Franzie F. Colaco,
Nine years in prison
$6 million tax loss
Ronald L. Brekke,
12 years in prison
$6 million tax loss
33 months in prison
$360,000 tax loss
John Chung
One year in prison
$370,000 tax loss
Wonita Chung
18 months in prison
$612,237 tax loss
Raymond Jarlik-Bell
Eight years in prison
$705,276 tax loss
Peter Gibney
One year in prison
$465,136 tax loss
Debra Aaron
Five years in prison
$723,275 tax loss
The IRS has more information on 1099 OID fraud here: http://www.irs.gov/uac/Newsroom/IRS-Releases-the-“Dirty-Dozen”-Tax-Scams-for-2014;-Identity-Theft,-Phone-Scams-Lead-List.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). BROWN was prosecuted by Assistant United States Attorney Marci Ellsworth.Swedish Hospital Agrees to Settle Claim that it Failed to Provide Effective Communication Services for Individuals who are Deaf or Hard of HearingRead the Press Release
The U.S. Department of Justice and Swedish Edmonds Hospital have entered into a settlement agreement to remedy alleged violations of the Americans with Disabilities Act (“ADA”), announced Acting United States Attorney Annette L. Hayes. The U.S. Attorney’s Office for the Western District of Washington began the investigation after a complainant, who is deaf, alleged that during an emergency room visit to the hospital for her 13-year-old son she requested a sign language interpreter, but none was provided. During the more than five hours in which her son was treated at the hospital following a severe fall, he underwent an EKG, blood draws, and stitches. Because no sign language interpreter was made available, the complainant relied upon a non-medically certified interpreter on loan from her son’s school in order to communicate with doctors and staff regarding her son’s medical treatment.
“Every parent understands the importance of being able to communicate directly with a child’s healthcare provider, especially in a hospital setting,” said Acting U.S. Attorney Annette L. Hayes. “This resolution demonstrates our unwavering commitment to protect the rights of those who are deaf or hard of hearing and to ensure that they too are able to communicate with health care professionals.”
Under the settlement reached October 10, 2014, the hospital admits no law violation, wrongdoing or misconduct but agreed to: (1) adopt policies and procedures that ensure that individuals who are deaf or hard of hearing receive auxiliary aids and/or services (including sign language interpreters when necessary) that insure effective communication; (2) train its staff on the ADA’s effective communication requirements; and (3) pay $3,000 to the complainant.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on this critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, at www.ada.gov/hospcombr.htm. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
This matter was handled by Assistant United States Attorney Christina Fogg.
Election Day Officer and Investigators on Duty to Examine Complaints of Fraud or Voter Rights AbusesRead the Press Release
Acting United States Attorney Annette L. Hayes announced today that Assistant United States Attorney (AUSA) Arlen Storm will lead efforts in the Western District of Washington in connection with the Justice Department’s nationwide Election Day Program with respect to the upcoming November 4, 2014, general elections. AUSA Storm has been appointed to serve as the District Election Officer (DEO) for the Western District of Washington, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington DC.
“Every citizen must be able to vote without interference or discrimination and know that their vote will be counted without the corrosion of fraud,” said Acting United States Attorney Annette L. Hayes. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”In order to respond to complaints of election fraud or voting rights abuses and to ensure that such complaints are directed to the appropriate authorities, Acting United States Attorney Hayes stated that AUSA/DEO Storm will be on duty in this District until voting is complete. He can be reached by members of the public at the following telephone numbers: 206-553-7970 or 253-428-3800.
The Department of Justice has an important role in deterring election fraud and discrimination, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. Federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses. Complaints can be called in to the FBI at 206-622-0460.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Acting United States Attorney Annette L. Hayes said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Former Pierce County Hard Money Lender Sentenced to Prison for Mortgage Fraud SchemeRead the Press Release
A former hard money lender who resides in University Place, Washington was sentenced today in U.S. District Court in Tacoma to five years in prison, three years of supervised release and $831,607 in restitution for his mortgage fraud scheme announced Acting U.S. Attorney Annette L. Hayes. EMIEL A. KANDI, 37, pleaded guilty in April 2014 to Conspiracy to Submit False Statements in Loan Applications and to Make False Statements to the Department of Housing and Urban Development, and Submitting False Statements in Loan Applications. The mortgage fraud scheme caused a loss of more than $800,000 to the U.S. Department of Housing and Urban Development and defrauded mortgage applicants as well. At sentencing U.S. District Judge Ronald B. Leighton said KANDI “was a predator. He took advantage of situations. He found a method to secure funds… He was aggressive, he was pushing the envelope, he was a risk-taker without humility and without empathy – those characteristics are ruinous.”
“This defendant lined his pockets at the expense of taxpayers and his own clients,” said Acting U.S. Attorney Annette L. Hayes. “His scheme diverted funds that had been set aside to help people achieve the dream of homeownership. Kandi also hid as much as $35,000 in fraudulent charges in loan documents – money he siphoned directly into his bank accounts. As the recent housing crisis demonstrated, mortgage fraud can have a devastating impact on homeowners and on the economy.”
“Whether fueled by greed or hubris, Emiel Kandi thought he could get away with exploiting members of our community and the federal government,” said Assistant Special Agent in Charge Carlos L. Mojica of the FBI’s Seattle field office. “He boasted about being a wolf that preyed on the weak, but today he learned that criminal activity is not a badge of honor but a disgrace. The FBI and its partners in the Puget Sound Mortgage Fraud Working Group are committed to holding people like Kandi accountable for their fraudulent schemes.”
According to records in the case, between 2008 and 2009, KANDI submitted false information to obtain home mortgage loans. Some of these fraudulent home mortgage loans were designed to let KANDI cash out of properties that KANDI owned through his hard money lending. KANDI’s lending activities were typically secured by a borrower’s home and charged a high rate of interest. The hard money loans were structured, in some instances, to allow KANDI to seize control of a home if the borrower missed a single payment. Other fraudulent home mortgage loans included an inflated and often disguised commission payment to KANDI. In at least 19 loans, KANDI and his co-schemers submitted false information regarding the borrowers’ employment, salary, and intention to live in the home. Some of the loan paperwork included inflated appraisals so that KANDI could maximize the money he obtained in the scheme. The false statements were designed to make the loans appear legitimate and ensure that they would meet federal lending standards. Many of the loans were processed by Pierce Commercial Bank and were insured by the Federal Housing Administration (FHA), a unit within the federal Department of Housing and Urban Development (HUD).
“As a result of his conduct the legislature changed the law to protect consumers who secure loans with their primary residence, even when they are characterized as a business loan,” Deborah Bortner, Director of Consumer Services at the Washington State Department of Financial Institutions (DFI) said. “Emiel Kandi was particularly predatory to some of our most vulnerable citizens.”
“In the last number of years, we have seen enormous and damaging developments in the mortgage and housing markets. Convictions such as this set an important precedent that submitting false statements and fraudulent behavior will not be tolerated and will be aggressively pursued. The United States Department of Housing and Urban Development, Office of Inspector General is deeply committed to working in partnership with other federal, state and local authorities to ensure that corrupt individuals do not use their positions to enrich themselves at the expense of the HUD and its federally-insured mortgage loan program,” said David R. Barnes, Special Agent in Charge.
False statements were made in loan applications for various properties in Western Washington, including properties in Pierce, King, and Clark County. Under the terms of the plea agreement, KANDI agreed to make restitution of $831,607 due to HUD.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being investigated by the Puget Sound Mortgage Fraud Working Group, whose members include the FBI, the Department of Housing and Urban Development – Office of Inspector General, the Washington Department of Financial Institutions (DFI), and the Washington State Department of Licensing. The case is being prosecuted by Assistant United States Attorney Brian Werner and Special Assistant United States Attorney Hugo Torres. Mr. Torres is a King County Deputy Prosecutor specially funded by the Washington Department of Financial Institutions (DFI) to handle mortgage fraud cases in state and federal court.
Washington Supreme Court Justice Mary Yu Speaks to U.S. Attorney’s OfficeRead the Press Release
In recognition of Hispanic Heritage Month, Washington Supreme Court Justice Mary Yu spoke to the U.S. Attorney’s Office for the Western District of Washington about her groundbreaking career in the law. Justice Yu is of Hispanic and Asian heritage and is the first openly gay member of the Washington State Supreme Court. Justice Yu’s father was an immigrant from China, her mother was from Mexico. She is also the first Latina Justice and Justice of Asian heritage.
Justice Yu talked about her childhood in Chicago, and described her decision to pursue a legal career as a way to bring positive change in the community, especially for those who are disadvantaged. Justice Yu described the sense of history she feels in the Supreme Court chambers and talked about the importance of remembering that the parties in the cases are real people, not just names on papers filed with the court.
Justice Yu was appointed by Governor Jay Inslee on May 1, 2014. Justice Yu joined the Supreme Court after more than 14 years as an accomplished trial court judge in King County Superior Court where she heard a wide variety of criminal and civil cases and presided over hundreds of adoptions and other family law matters.
Justice Yu has a deep record of service both on and off the bench, mentoring young attorneys, law clerks and students, co-chairing the statewide Minority and Justice Commission, lecturing at Seattle University, helping lead the bar association’s leadership institute for young attorneys, and serving on the board of FareStart and the advisory board for the University of Washington School of Law’s Gates Public Service Program. She has officiated hundreds of weddings and adoptions, including our state’s first same-sex weddings on the first day couples of the same-sex could legally marry in our state.
Before becoming a judge, Justice Yu served as Deputy Chief of Staff to King County Prosecutor Norm Maleng and as a deputy in the Criminal and Civil Divisions. Prior to attending law school, Justice Yu worked in the Peace and Justice Office for the Archdiocese of Chicago as staff and later appointed by Cardinal Bernardin as Director of that Office.
Justice Mary Yu was raised in Bridgeport (a south side neighborhood in Chicago). She is the first in her family to graduate from college.
Olympia Tax Preparer Sentenced to Prison for Filing False ClaimsRead the Press Release
An Olympia, Washington tax preparer was sentenced today in U.S. District Court in Tacoma to two years in prison for a tax fraud scheme in which he falsely claimed tax refunds while victimizing his clients, announced Acting U.S. Attorney Annette L. Hayes. KYLE BAXTER, 31, pleaded guilty in July 2014 for the scheme that netted him more than $250,000 over three years. “You were evil and criminal while doing this,” said U.S. District Judge Robert J. Bryan. “These are serious offenses that hurt a group of people and the public.”
Court records in the case reveal BAXTER admitted that from 2010 through 2013, he represented himself to be a provider of tax preparation services operating under the name “Baxtax.” BAXTER maintained a website for “Baxtax,” and promoted his services through advertisement in local media, even though BAXTER never obtained a Preparer Tax Identification Number, ordinarily required of any person or entity that prepares tax returns for a fee. During that three-year period, BAXTER, a firefighter, filed at least 280 tax returns. Many of his clients were fellow firefighters, as well as emergency medical technicians and paramedics. In many filings, BAXTER claimed deductions and credits for which his clients were plainly ineligible, such as child tax credits for clients without children. The false filings increased the refunds paid by the IRS to the clients. BAXTER provided clients paper copies of tax returns purportedly reflecting their filings. However, the copies were not what had been provided to the IRS. BAXTER actually filed returns with distorted numbers that yielded even larger refunds, and BAXTER secretly diverted significant portions of these refunds to himself. Over the course of the scheme, BAXTER stole at least $250,000 in taxpayer funds by partially diverting refund payments in this manner. BAXTER was ordered to pay $255,033 in restitution to the Internal Revenue Service.
The case was investigated by the Internal Revenue Service-Criminal Investigation. The case was prosecuted by Assistant United States Attorney Rebecca Cohen.
Renton Man Sentenced to a Year in Prison for Illegally Collecting Nearly $220,000 in Social Security BenefitsRead the Press Release
A 67-year-old Renton, Washington man who illegally collected his father’s Social Security benefit checks for 17 years after his father’s death was sentenced today to a year in prison, announced Acting U.S. Attorney Annette L. Hayes. PATRICK M. DERRICK pleaded guilty to theft of public funds in May 2014, admitting that for 17 years following his father’s death he continued to collect and spend the Social Security payments that were wrongly deposited in his father’s bank account. In order to execute the fraud, DERRICK repeatedly forged his father’s signature on bank documents. At sentencing U.S. District Judge Ricardo S. Martinez noted that Social Security funds are public money set aside for the needy and disabled. DERRICK “stole from the most vulnerable who need these benefits to survive,” Judge Martinez said.
According to records filed in the case, DERRICK’s father died in November 1996. DERRICK never informed the Social Security Administration (SSA) of his father’s death. Monthly benefits continued to be paid into the father’s bank account, and DERRICK would withdraw the money by writing a check to himself and forging his father’s signature. He stole 201 monthly Social Security payments totaling $219,032. In September 2013, SSA learned of the father’s death. When interviewed by federal agents, DERRICK initially denied knowing about the payments to his father’s account and denied taking the money. DERRICK had a 21-year military career, followed by a 17-year career with Boeing. Prosecutors argued that this was not a case where the defendant was living on the margins and needed the extra money to survive.
Addressing the court, DERRICK said he started taking the money to “make ends meet” between his military and Boeing careers, and never seemed to be able to catch up with the bills. He admitted using the money to pay college tuition for his daughter and to make donations to his church. He said it is a relief that the “wait for the knock on the door is over.”
The Western District of Washington is a national leader in pursuing fraud on Social Security benefit programs. Eight other defendants have been charged over the last 18 months with theft of government funds for fraudulently collecting Social Security benefits for years after their parents’ death. As a result of the prosecutions, courts in this district have ordered in excess of $1 million in restitution to the United States. The following are the longest running of these frauds:
RAYMOND C. O’DELL, 70, who now resides in Arizona, was sentenced to six months in federal prison, six months of home detention, $188,436 in restitution and a $20,000 fine for theft of government funds. O’DELL’s mother died in November 1989, but he failed to notify Social Security and benefits continued to be paid into their joint account. On at least two occasions between November 1989 and June 2012, O’DELL contacted the Social Security Administration to update his mother’s contact information and never informed anyone of her death.
PATTY BUCHANAN, 57, is one of the largest Social Security benefit fraud cases prosecuted as part of the initiative in the Western District of Washington. BUCHANAN’s father died in May 1993, but she continued to receive and cash his benefit checks using a check cashing business. She told the outlet her father was infirm and homebound and that she had power of attorney. Every month for 19 years she cashed the checks – in all, 235 checks for a total of $239,083. When one of the tellers at the check cashing business became suspicious, BUCHANAN forged a fraudulent power of attorney document. When staffers at the outlet called to try to speak with BUCHANAN’s father, BUCHANAN had a male friend pretend to be her father. Ultimately, an anonymous tip to Social Security ended the fraud in December 2012. BUCHANAN was sentenced to 18 months in prison in June 2013.
DENNIS JAY GORIN, 76, of Eatonville, fraudulently collected about $100,000 in Social Security benefits belonging to his mother following her death in around 2003. GORIN did not notify federal or state authorities of his mother’s death and personally disposed of his mother’s body on property in a rural area. Between 2003 and 2013, GORIN forged his mother’s signature to embezzle an estimated $100,000 worth of Social Security benefits. GORIN pleaded guilty on May 21, 2013, and was sentenced in September 2013 to ten months in prison.
CLAUDIA RUTH GREENAMYER, 72, of University Place, fraudulently collected $219,960 following the death of her mother in 1996 and her father in 2000. The payments were made to bank accounts GREENAMYER held jointly with her parents. GREENAMYER continued to use the money without telling Social Security her parents were deceased. She forged signatures to continue the theft, and when confronted by agents in February 2013, she claimed to have seen her parents one month earlier. GREENAMYER pleaded guilty to theft of government funds on May 15, 2013 and was sentenced in September 2013 to three months in prison.
DAVID MICHAEL COSTA, 77, of Sammamish, fraudulently collected $297,948 of his mother’s Social Security benefits following her death in 1989. While COSTA originally thought the payments coming to the joint bank account were from an annuity, in 1992 he learned they were Social Security payments. Rather than alert authorities and pay back the $40,000 that had wrongly been paid, COSTA continued to collect the benefits for more than 15 years. COSTA forged his mother’s name on documents and substituted his address for hers on all records, updating it three different times over the years. COSTA pleaded guilty on June 3, 2013, and was sentenced in September 2013 to ten months in prison.
These cases were investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and are being prosecuted by Assistant United States Attorney Seth Wilkinson as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office.
Alleged Russian Cyber-Criminal Now Charged in 40-Count Superseding IndictmentRead the Press Release
WASHINGTON – A federal grand jury in Seattle returned a second superseding indictment late yesterday charging a Russian national with 11 additional counts and further detailing his alleged scheme to hack into businesses and steal credit card information for later sale over the Internet on “carding” websites.
The now 40-count superseding indictment alleges that Roman Valerevich Seleznev, aka “Track2,” 30, of Vladivostok, Russia, was involved in the theft and sale of more than 2 million credit card numbers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Annette L. Hayes of the Western District of Washington made the announcement.
“The charges returned by the grand jury detail a criminal scheme that continued right up until Mr. Seleznev’s arrest in July,” said Acting U.S. Attorney Hayes. “As set forth in the indictment, the government expects to prove at trial that Seleznev was a leader in the marketplace for stolen credit card numbers, and even created a website offering a tutorial on how to use stolen credit card numbers to commit crime.”
“The additions in this superseding indictment show how cybercriminals use the Internet not only to infiltrate and steal sensitive data, but also to teach other criminals how to navigate the credit-card selling underworld and get equipment that can be used to defraud U.S. citizens,” said Assistant Attorney General Caldwell. “The Criminal Division is committed to investigating these thefts and uncovering the methods of computer hackers to stay one step ahead of them and bring them to face justice.”
The superseding indictment charges Seleznev with 11 counts of wire fraud, nine counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of 15 or more unauthorized access devices and two counts of aggravated identity theft. Seleznev is currently scheduled for trial on Nov. 3, 2014, and will be arraigned on the new charges sometime next week.
According to court documents, between October 2009 and October 2013, Seleznev allegedly hacked into retail point of sale systems and installed malicious software to steal credit card numbers from various businesses. Seleznev allegedly created and operated the infrastructure to facilitate the theft and sale of credit card data, used servers located all over the world to facilitate his operation, and sold stolen credit card data on a website known as “2pac.cc.”
Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices.
The charges contained in the indictments 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 U.S. Secret Service Electronic Crimes Task Force, which includes detectives from the Seattle Police Department. The case is being prosecuted by Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington and Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section. The Office of International Affairs and the U.S. Attorney’s Office for the District of Guam provided substantial assistance in this case.Canadian Promoter of Tax Fraud Scheme Sentenced to Nine Years in PrisonRead the Press Release
A Canadian tax fraud promoter who was extradited from Canada and convicted at trial was sentenced today to nine years in prison for conspiracy and three counts of wire fraud, announced Acting U.S. Attorney Annette L. Hayes. FRANZIE F. COLACO, 54, of Brampton, Ontario, Canada was convicted in July 2014 following a two-day jury trial. COLACO conspired with Ronald L. Brekke and others to promote a scheme known as “1099 OID” fraud. Under this scheme, tax filers use fraudulent Form 1099-OID forms to claim tax refunds equal to the value of the filer’s personal debt. COLACO promoted this scheme throughout Canada and encouraged Canadian citizens to request refunds from the U.S. government. U.S. District Judge John C. Coughenour found COLACO responsible for more than $6.2 million in restitution to the Internal Revenue Service, and cited the “audacious nature of the scheme,” in imposing the lengthy sentence on COLACO.
“This defendant promoted theft of U.S. tax dollars by convincing Canadians they could get rich at others’ expense,” said Acting U.S. Attorney Annette L. Hayes. “This is a fraud – pure and simple – and one that will not go unpunished.”
The IRS flagged the vast majority of the 1099 OID filings as frivolous, but refund claims totaling approximately $14 million were paid to followers of Brekke and COLACO before the IRS detected the fraudulent nature of the returns. About two-thirds of those filing for money they didn’t deserve were Canadians who had never paid any income tax in the United States and were not owed any money by the U.S. Treasury. Those submitting the phony claims were told to quickly move the money to Canada where it would be more difficult for the IRS to recover the money. COLACO personally collected over $600,000 in fraudulent refunds under the scheme.
“In all my years investigating tax crimes, this is one of the most egregious cases I have ever seen,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “It is unfathomable that Colaco and his co-conspirators concocted a scheme wherein their followers could extract hundreds of millions of taxpayer funds, especially when many of their adherents were not even citizens of this country and had never paid a dime of income tax.”
The IRS has been able to get just over half of the $14 million back, resulting in a restitution figure for COLACO and Brekke of $6,206,998.
Brekke, the leader of the scheme, was sentenced in June 2012 to 12 years in prison. Other defendants convicted and sentenced include Donald Mason who received a $360,000 fraudulent refund check. He unsuccessfully attempted to help his wife receive an additional $333,000. He was sentenced to 33 months in prison. John Chung received a $370,000 fraudulent refund check. He was sentenced to a year in prison. Finally, Wonita Chung helped promote the scheme, and unsuccessfully attempted to receive approximately $210,000 in funds. She was sentenced to 18 months in prison.
The IRS has more information on 1099 OID fraud here: http://www.irs.gov/uac/Newsroom/IRS-Releases-the-“Dirty-Dozen”-Tax-Scams-for-2014;-Identity-Theft,-Phone-Scams-Lead-List
.The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and the United States Secret Service. The case was prosecuted by Assistant United States Attorneys Thomas Woods and Francis Franze-Nakamura.
Tacoma Man Sentenced to Nearly Four Years in Prison for Falsely Claiming $1.8 Million in Income Tax RefundsRead the Press Release
A Tacoma, Washington man who claimed more than $1.8 million in false income tax refunds was sentenced today in U.S. District Court in Tacoma to 46 months in prison, announced Acting U.S. Attorney Annette L. Hayes. SEENEY RISTICK, 33, pleaded guilty in June 2014. At sentencing U.S. District Judge Benjamin H. Settle noted that the dollars stolen were paid into the system by hard-working tax payers and intended to support all the things that the government does. Because of RISTICK’s actions that did not occur.
According to the plea agreement, between 2008 and 2013, RISTICK presented various fraudulent papers and forms to different tax preparation firms in Western Washington and directed the filing of bogus tax returns in his own name and the names of others, to include relatives and friends. To facilitate the scheme, RISTICK created false income journals and falsely claimed self-employment income and various tax credits, all with the intent to defraud the Internal Revenue Service. RISTICK typically approached the tax preparers by himself and presented fraudulent, and sometimes forged, powers of attorney, which purported to allow RISTICK to represent the named tax-filer in financial matters. At other times, he would accompany individuals to the tax preparation firms and assist them in filing the false tax return. RISTICK then charged the person for filing the false tax return between $500 and $1500 for the service he provided.
In all, RISTICK was involved in filing 524 fraudulent federal income tax returns, claiming a total of $1,826,944 in refunds. The U.S. Treasury paid out $1,584,398 before the fraud was uncovered. None of the money has been repaid.
“We want every American taxpayer to claim every entitlement, deduction, and credit that they are lawfully due,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigations. “However, when someone like Ristick undertakes to submit false returns claiming undue refunds, they effectively steal from those paying their honest share. IRS Criminal Investigation will tirelessly pursue those who would claim false refunds thereby undermine the tax system.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorney Steven Masada.
Edmonds Man who Operated Illegal Money Transmitting Business Sentenced to Two Years in PrisonRead the Press Release
A 55-year-old Edmonds, Washington man who moved more than $150 million from overseas sources, through his U.S. bank accounts, and then back overseas, was sentenced today in U.S. District Court in Seattle to two years in prison, announced Acting U.S. Attorney Annette L. Hayes. PAVEL ROMBAKH, who immigrated to the U.S. from Ukraine in the 1990’s, pleaded guilty to operating an unlicensed money transmitting business in May 2014. As part of his plea, he forfeited to the government cash and property worth $510,000. At sentencing, U.S. District Court Judge James L. Robart stated, “He moved a staggering $150 million…. The money came out of Russia and Cyprus, into the U.S. and was wired out to Latvia, the United Arab Emirates and China. That makes this a serious offense.”
According to records filed in the case, over a five year period, ROMBAKH received wires of more than $150 million from overseas and then wired the funds back out to other accounts. Many of the wires originated in Russia and Cyprus and were promptly re-wired to England, Latvia, the United Arab Emirates, and China. ROMBAKH kept a small percentage of the funds as his fee. Investigators were not able to determine the source of the funds, nor what they were used for overseas. Defense attorneys claimed some of the money went to a mining company in Mongolia, but no evidence corroborating this claim was found in the investigation.
“IRS Criminal Investigation is committed to ensuring the integrity of our nation's banking system,” stated Special Agent in Charge Teri Alexander. “Financial Institutions are regulated by federal law. Rombakh attempted to circumvent that law by acting like a bank but without the necessary oversight that protects our overall financial system.”
The case was investigated by IRS-CI and was prosecuted by Assistant United States Attorneys Thomas Woods and Francis Franze-Nakamura.Sex Offender Sentenced to 8+ Years in Prison for Failing to RegisterRead the Press Release
A violent sex offender who failed to register as required by law was sentenced today in U.S. District Court in Seattle to 99 months in prison, announced Acting U.S. Attorney Annette L. Hayes. TIMOTHY G. DORAN, 48, of Seattle was arrested in December 2011. DORAN pleaded guilty to failing to register as a sex offender in September 2012. However, over the last two years prosecutors presented evidence tying DORAN to the murder of a woman in Vietnam. U.S. District Judge Robert S. Lasnik ruled prosecutors had proven DORAN guilty of the murder by clear and convincing evidence, thus making the murder something he could consider at sentencing. Today Judge Lasnik noted DORAN had a history of “multiple instances of violence and depravity against women he claimed to love and cherish…He is a clear and present danger to any woman he establishes a relationship with…. He is a serial domestic abuser.”
“This case demonstrates our commitment to working with our law enforcement partners around the world to ensure justice is done,” said Acting United States Attorney Annette L. Hayes. “Working with law enforcement in Vietnam, bringing witnesses to court here in Seattle, our prosecutors made sure all the relevant facts could be considered by the court to hold this defendant accountable.”
According to records filed in the case, DORAN has a lengthy history of violence against women, including rape and assaults. In 1990 he was convicted of breaking his wife’s ankle and using a knife to make a cut across her neck. In 1992 DORAN raped and brutally beat his ex-girlfriend, leaving her and her children to die in a home filling with natural gas. He was sentenced to more than seven years in prison and was required to register as a sex offender. Following his release from prison for that crime, his new girlfriend sought a protective order because he threatened her with knives.
In mid-2010, DORAN moved to Vietnam without updating his sex offender registration. DORAN became involved with a young woman in Vietnam and in the early morning hours of March 6, 2011, he strangled her and left her body hidden in a closet in the home. Within days DORAN fled Vietnam and returned to the U.S. He traveled between various states, again failing to register as a sex offender. Following his arrest, U.S. prosecutors worked with law enforcement in Vietnam to obtain and present evidence tying DORAN to the murder.
DORAN will be on five years of supervised release following his prison term.
The case was investigated by the U.S. Marshal’s Service. The case was prosecuted by Assistant United States Attorneys Andrew Friedman, Jerrod Patterson and Brian Werner.
DOJ Awards Grants to Seattle and Educational Service District to Enhance School Safety and Combat Youth ViolenceRead the Press Release
Acting U.S. Attorney Annette L. Hayes announced today that the Puget Sound Educational Service District and the University of Washington will share a Department of Justice grant of nearly $1.5 million to improve school safety by early intervention with at-risk students. The grant is part of $63 million being awarded nationwide as part of the Comprehensive School Safety Initiative (CSSI). CSSI is a large-scale, multi-agency research effort to build knowledge about effective approaches to increasing school safety nationwide.
“This grant will help identify ways to keep at-risk kids in school and create safer schools for all,” said Acting U.S. Attorney Annette L. Hayes. “The University of Washington will take a rigorous look at the data on early interventions to identify programs that successfully prevent anti-social behavior before it starts.”
In addition to the research grant, the City of Seattle was awarded a $20,000 grant to become part of the National Forum on Youth Violence Prevention. As part of the program, Seattle is eligible for an additional $100,000 once it develops a plan to align and coordinate existing resources, engage in community outreach, and increase the engagement of youth, the faith community, law enforcement, victim services and others to combat youth violence.
Through the Comprehensive School Safety Initiative, the Office of Justice Programs’ National Institute of Justice (NIJ) is funding 24 research projects under two different solicitations. The first, “Investigator-Initiated Research,” includes nine awards to research organizations totaling more than $18 million. The second, “Developing Knowledge about What Works to Make Schools Safe,” provides more than $45 million to 15 school districts and their research partners. The Western Washington grant is in the second group.
“We know a great deal about how to make schools safe in general but very little about the specifics for various settings and populations,” said Dr. William J. Sabol, Acting Director of NIJ. “With this $63 million investment, the nation will gain an understanding of school safety that is scientifically sound, practical, and that can be easily interpreted and used by schools.”
President Obama’s January 2013 plan to end gun violence emphasized keeping guns out of potentially dangerous hands and recognized that additional actions are needed to make our schools safer. CSSI was launched in early 2014 in response to a Congressional request for a broad, research-based effort to increase safety in the nation’s schools.
The initiative has three primary goals: to collect national-level data; to convene stakeholders to identify and share best practices; and to conduct innovative research and evaluate pilot projects in school districts. The programs and policies within CSSI are designed to produce evidence about what works in such areas of school safety as effectiveness of school resource officers and mental health professionals, violence and bullying reduction, and effectiveness of such restorative justice interventions as youth courts. The initiative will also examine potential unintended consequences of school safety efforts, including the excessive use of exclusionary discipline and arrests of students.
Specifically, the grant to the Puget Sound Education Service District and the University of Washington calls for the evaluation of a three-step early warning and intervention process that identifies students at risk and matches effective, brief interventions to meet their needs. The process is designed to shift schools away from disproportionate, reactive and punitive discipline towards a more proactive and positive approach.The National Forum on Youth Violence Prevention aims to build a national conversation about youth and gang violence to increase awareness, drive action, and build local capacity to more effectively address youth violence. It models a new kind of federal and local collaboration, encouraging its members to change the way they do business by sharing common challenges and promising strategies, through comprehensive planning and coordinated action. Currently active in Boston, Chicago, Detroit, Memphis, and Salinas and San Jose, California, today DOJ announced the addition of Long Beach, California; Cleveland, Ohio; Louisville, Kentucky; Seattle, Washington; and Baltimore, Maryland.
Although NIJ has primary responsibility for CSSI, the program is a collaborative effort among more than 20 federal partners, including the Departments of Justice, Education, Health and Human Services, Homeland Security, and the Treasury. This partnership will allow the federal government to make a significant impact on school safety by investing limited funds in research that has practical applications for every school in the nation. By determining what interventions work best for specific schools and students, CSSI will provide professionals with a body of knowledge to help them make decisions about which programs will be most effective — and most cost effective — for their particular schools and their challenges.
A list of the awards and more information about CSSI are available at www.nij.gov, keywords: “School Safety.”
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART).
Annette L. Hayes Appointed Acting United States Attorney for the Western District of WashingtonRead the Press Release
The Executive Office of United States Attorneys has selected Annette L. Hayes to serve as Acting United States Attorney pending the appointment and confirmation of a presidentially appointed United States Attorney for the Western District of Washington. Ms. Hayes has served as the First Assistant United States Attorney since 2010. In that role she has been second-in-command of the U.S. Attorney’s Office and a key leader in both criminal and civil litigation in the office. Ms. Hayes takes over from Jenny A. Durkan, who stepped down yesterday.
Annette L. Hayes joined the U.S. Attorney’s Office in 1997 as an Assistant United States Attorney in the Criminal Division. She was assigned to prosecute a range of drug cases including large-scale, international trafficking and cartel related cases. In 2002, she became the Deputy Supervisor of the Complex Crimes Unit where she prosecuted cyber hacking and intellectual property cases while working with law enforcement on outreach to the private sector. In 2005, she became one of the supervisors of the General Crimes Unit where she worked closely with and trained many new attorneys on a range of federal crimes including child exploitation, drug, fraud, identity theft, immigration and violent crimes cases.
Prior to joining the U.S. Attorney’s Office, Ms. Hayes spent her first six years as an attorney handling a variety of civil litigation matters at law firms in Seattle and Washington, D.C.
Ms. Hayes is a graduate of Cornell Law School and Williams College.
Seven Western Washington Jurisdictions Awarded DOJ Grants to Help Reduce Violence and Protect SchoolsRead the Press Release
WASHINGTON, DC—Today the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) announced funding awards to seven cities and counties in the Western District of Washington, aimed at creating, and in some cases protecting, 33 law enforcement positions. Nearly $121 million will be awarded nationally, including $6.2 million for Western Washington.
“This essential program will put more officers on our streets and in our schools to improve community safety,” said U.S. Attorney Jenny A. Durkan. “It was a competitive process for grants, and today’s announcement is a tribute to these departments who demonstrated how they will serve their communities.”
The Seattle Police Department and Tacoma Police Department each received funding for ten new officers. Auburn is funded for five officers, Federal Way four officer and the cities of Fife and Aberdeen one officer each. The Skagit County Sheriff’s Department was awarded funding for two officers.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.