Western District of Washington
Press releases recorded for this federal judicial district.
Former Controller of Shelton, Washington outdoor equipment manufacturer sentenced to 12 months and one day in prison for wire fraudRead the Press Release
Seattle – The former Controller of a Shelton, Washington, outdoor equipment company was sentenced today to 12 months and one day in prison and three years of supervised release for his embezzlement scheme that stole more than $665,000 from the company, announced Acting U.S. Attorney Teal Luthy Miller. Jesse Arden Sherman, 63, of Elma, Washington illegally diverted company funds to his own accounts between 2012 and 2018. In addition, Sherman failed to pay taxes on his ill-gotten gain, resulting in a tax debt of $202,196. At the sentencing hearing U.S. District Judge Tiffany M. Cartwright emphasized the economic and non-economic losses experienced by the victim company and its employees.
According to records filed in the case, Sherman began working for Sims Vibration Laboratory Inc. in 2008. In his role as controller, he had complete access and control of the company accounting systems and banking functions. In 2012, he began abusing the trust the company had placed in him, by using a variety of schemes to steal from the company. Sherman made false representations to the company’s owner and President, he created false business records, and he created payroll checks and other checks that he deposited in his own accounts. In some instances, he noted in the company books that the check was “void” even though he had cashed it.
Sherman’s fraud resulted in a loss to the company of at least $665,840. As a Certified Public Accountant Sherman knew that he owed taxes on the money he obtained by fraud, but he failed to pay the $202,196 he owed on his taxes between 2013 and 2018.
In asking the court for an 18-month prison sentence, prosecutors noted that Sherman betrayed his employer’s trust month after month with each fraudulent check or entry in the company books. “Despite personal and professional privileges, Sherman elected to create a multi-faceted fraud scheme, which he deployed repeatedly over the years to unjustly enrich himself. Although he claims his gambling drove his behaviors, Sherman had the means and self-recognition to address this issue and instead of doing so he instead re-committed to his scheme over and over again to the detriment of SVL, SVL employees, SVL business partners, and Sherman’s family.”
Sherman has agreed to make restitution to the company of $665,840 and to the IRS of $202,196.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), the FBI and the Mason County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorney Brian Wynne.
Mexican national caught dealing drugs and guns sentenced to 10 years in prisonRead the Press Release
Tacoma – A 49-year-old Vancouver, Washington resident was sentenced today in U.S. District Court in Tacoma to 10 years in prison for drug and gun trafficking, announced Acting U.S. Attorney Teal Luthy Miller. Juan Onofre Flores Carrillo, 49, and his co-defendant Jesus Daniel Valenzuela Ayala, 24, were arrested in March 2024 when law enforcement raided their stash house and seized more than seven pounds of fentanyl, 43 pounds of methamphetamine and an assault rifle equipped with a grenade launcher. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “These controlled substances create significant problems for the community. There are individuals who overdose and die from these substances and those who don’t become addicted and become a drain on everyone.”
According to the criminal complaint, Flores Carrillo aka “El Cholo,” was identified in early 2023 as a significant fentanyl pill dealer in southwest Washington. For over a year, working with confidential informants, law enforcement made a series of significant drug buys from Flores Carrillo. In one instance Flores Carrillo sold an informant 3,000 fentanyl pills. On another occasion he sold the informant a kilogram of crystal methamphetamine. Twice Flores Carrillo sold the informant high-powered firearms: an AR-type rifle that was a “ghost gun” with no serial number, and a Norinco Mak-90 rifle.
In January and February 2024, law enforcement worked to identify the stash house where Flores Carrillo kept his drugs. Flores Carrillo continued to make drug sales of heroin as well as fentanyl. On March 13, 2024, Flores Carrillo agreed to sell 10,000 fentanyl pills. Shortly after he turned over the drugs he was arrested.
On November 13, 2024, Flores Carrillo pleaded guilty to conspiracy to distribute controlled substances and use of a firearm during and in relation to a drug trafficking crime.
In asking for a ten-year sentence prosecutors wrote to the court, “Firearms are a tool of the drug trade, and the danger of drug trafficking comes not only from the effect of drugs on users but from the violence associated with drug trafficking. The firearms that Flores Carrillo possessed and sold to…a person he believed to be a drug trafficker, are highly dangerous and not intended to be in the hands of drug users or drug traffickers.” In imposing sentence, Judge Estudillo commented, “If there’s firearms involved [in drug trafficking], violence could occur among drug dealers and innocent people could get hurt.
Codefendant Valenzuela Ayala was the only occupant of the stash house and was arrested. He was sentenced to seven years in prison. Both men are citizens of Mexico who will likely be deported following their prison terms.
The case was investigated by the FBI with assistance from the Vancouver Police Department, the Clark County Sheriff’s Office Special Investigation Unit, and U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI).
The case is being prosecuted by Assistant United States Attorneys Zachary Dillon and Max Shiner.
Charter fishing boat captain pleads guilty to defrauding Social Security Disability programRead the Press Release
Tacoma – A 50-year-old resident of Westport, Washington, pleaded guilty today in U.S. District Court in Tacoma to Social Security Fraud, announced Acting U.S. Attorney Teal Luthy Miller. Derek Gochanour admitted that he failed to tell the Social Security Administration that he was able to work, and illegally collected $126,928 in benefits. Chief U.S. District Judge David G. Estudillo scheduled sentencing for June 9, 2025.
According to the plea agreement and civil settlement agreement, in April 2001, Gochanour applied for disability insurance benefits from the Social Security Administration (SSA) due to his diagnosis of mitochondrial myopathy – a form of muscle disease. In January 2003, a court found Gochanour was disabled, and he began collecting benefits. Just two years later, Gochanour obtained his Merchant Mariner Credential from the U.S. Coast Guard indicating that he was physically able to perform shipboard functions.
In January of 2012, the Coast Guard granted Gochanour a medical waiver that required him to submit neurological evaluations regarding the stability of his condition so that he could keep his Merchant Mariner Credential. Gochanour provided the Coast Guard with several of these evaluations.
In 2015, Gochanour and an associate purchased a 41-foot charter fishing boat. Gochanour served as the captain, piloting the boat and helping customers catch fish in the ocean waters off of Westport. However, no wages were ever reported for Gochanour’s work on the charter craft.
In the plea agreement, Gochanour admits that since at least 2015, his medication and lifestyle allowed him to work several months per year and he should have reported that to SSA. For example, in 2015 Gochanour sent the Coast Guard a letter from his neurologist stating that he was able to work and perform duties on the job. However, he never provided that letter to SSA, even though he had received a notice that he needed to inform the agency of any relevant changes -- including if a doctor said his health had improved. In 2022, Gochanour submitted a Continuing Disability Review Report to SSA that did not disclose his improved health, his Merchant Mariner Credential, or his work as a charter ship captain.
Prosecutors have agreed to recommend a sentence of three months in prison followed by three months of home detention. Chief Judge Estudillo is not bound by the recommendation and can impose any sentence allowed by law. Social Security fraud is punishable by up to five years in prison.
In a parallel civil investigation, Gochanour has agreed to pay the government $253,856 of which $126,928 is restitution for the benefits he wrongly received. The remaining amount owed will settle civil claims.
The case was investigated by the Social Security Office of Inspector General (SSA-OIG) and the Coast Guard Investigative Service (CGIS).
The criminal case is being prosecuted by Special Assistant United States Attorney Jessica M. Ly. The civil case was handled by Assistant United States Attorney Katie Fairchild.
Pierce County woman sentenced to 84 months (24 months on count 1 consecutive to 60 months on count 2) in prison for role in drug ring and firearms possessionRead the Press Release
Tacoma – A high-level drug redistributor for a drug ring connected to Aryan prison gangs was sentenced today to 84 months (24 months on count 1 consecutive to 60 months on count 2) in prison for drug and gun possession, announced Acting U.S. Attorney Teal Luthy Miller. C’La Morales, 39, of Pierce County, was arrested as part of an extensive drug trafficking investigation of three interrelated drug distribution organizations tied to Aryan prison gangs operating both inside and outside state prisons. Morales served as a key associated of the leader of one distribution ring, Jesse Bailey, who has pleaded guilty to conspiracy to distribute controlled substances, possession of a firearm in furtherance of drug trafficking, and conspiracy to commit money laundering. At the sentencing hearing U.S. District Court Judge David Estudillo said, “You took on the responsibility to distribute large quantities of controlled substances. You had to know those were going to … lead to addiction and wreak havoc for those individuals and their families, friends, and loved ones.”
According to records filed in the case, Morales was a trusted member of the drug ring who trafficked fentanyl, heroin, and methamphetamine and possessed multiple firearms. The wiretap evidence in the case revealed that she was purchasing and distributing 10 ounces of heroin and 10,000 fentanyl pills at a time. Morales was well aware of the significant fire power Jesse Bailey kept to protect his drug trafficking activities including fully automatic weapons.
When law enforcement searched Morales’ storage locker and vehicle, they seized 5,815 fentanyl laced pills that were fraudulently stamped with the imprint for prescription Oxycodone and 480 grams of heroin. Within arm’s reach of the drugs, agents located a loaded Mossberg shotgun, several boxes of 12-gauge shotgun ammunition, and $5,183 of drug trafficking proceeds. In Morales’ car they found additional guns: On the floorboard between the front driver’s seat and passenger seat, law enforcement found a lock box containing two pistols with loaded magazines.
In asking for a ten-year prison sentence, prosecutors wrote to the court with concern about Morales’ drug trafficking history. “Morales is not new to drug trafficking while armed with firearms. In 2019 she was arrested for drug trafficking while armed with a firearm that eventually resulted in convictions for unlawful possession of controlled substances with intent to distribute and unlawful possession of a firearm. Morales committed the current charges while on warrant status for the Pierce County drug court program. Thus, despite her clear drug addiction and need for treatment, it is difficult to trust that she will maintain compliance with treatment and not return to trafficking controlled substances.”
Morales was sentenced to five years of supervised release following prison. This prosecution is one of some two dozen related to a lengthy investigation of South Sound based drug trafficking rings.
On March 22, 2023, Law enforcement made two dozen arrests on federal charges. The coordinated takedown involved ten swat teams and more than 350 law enforcement officers. On that day law enforcement seized 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona. Earlier in the investigation law enforcement seized 830,000 fentanyl pills, 5.5 pounds of fentanyl powder, 223 pounds of methamphetamine, 3.5 pounds of heroin, 5 pounds of cocaine, $388,000 in cash, and 48 firearms.
The top-level leader of the drug trafficking ring, Jesse Bailey, is scheduled to be sentenced on May 16, 2025, and his wife and co-conspirator Candace Bailey, is scheduled for sentencing on June 13, 2025.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorneys Zach Dillon, Max Shiner, and Jehiel Baer.
Former Seattle tech worker sentenced to three years in prison for defrauding employer, government programs, and former significant otherRead the Press Release
Seattle – A 31-year-old Seattle resident was sentenced today in U.S. District Court in Seattle to three years in prison for two counts of wire fraud and one count of aggravated identity theft related to his three different fraud schemes, announced Acting U.S. Attorney Teal Luthy Miller. Westcott Francis-Curley has been in custody since March 2024, following his indictment in August 2023. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez imposed three years of supervised release and ordered $689,675 in restitution to the three victims.
“Mr. Francis-Curley’s fraud spiral stemmed from greed,” said Acting U.S. Attorney Miller. “After his employer discovered his theft, he stole from a program designed to keep small businesses afloat during the pandemic. And when those proceeds were gone, he committed identity theft against his former romantic partner. This sentence is an important step to break the cycle of fraud.”
According to records filed in the case, the first scheme began in 2019, when Francis-Curley embezzled money from his then-employer by misusing cloud computing resources and accounts available to him as an employee. Francis-Curley used employer funds and his employee work authorizations to purchase cloud computing resources, then sell or lease them back to the company—paying himself with company money—at many times their market value. Through this scheme he obtained more than $550,000, and he was caught while attempting to obtain another half-million dollars. He spent significant portions of the proceeds on extravagances, such as trips on private jets, luxury hotel stays and a penthouse apartment at Seattle’s Harbor Steps complex. Even after Francis-Curley was caught and fired, he emailed customer service and corporate executives in an effort to receive an additional half-million dollars.
In 2020, Francis-Curley defrauded the Paycheck Protection Program (PPP), a COVID assistance program designed to help small businesses and their employees weather the pandemic. Francis-Curley filed paperwork claiming that two companies he controlled qualified for assistance, when in fact they had no payroll and did not qualify for relief. He obtained nearly $100,000 and spent much of it on personal goods and services. Program funds were limited, meaning his theft deprived other applicants of the needed assistance.
Finally, in October 2022, Francis-Curley applied for and obtained a credit card in the name of his former significant other. Francis-Curley used the card for more than $1,000 in personal expenditures. The unpaid bill means the damage from the identity theft continues to impact the victim.
In asking the court for the three-year sentence, Assistant United States Attorney David T. Martin wrote of Francis-Curley, “He had a comfortable life and a lucrative job, but that wasn’t enough. Leveraging a bit of Google research and the trust of his employer, Francis-Curley—in his own words—'found a way to make as much money as’ he wanted. Within weeks of commencing the scheme, he was living large: private jets, luxury hotels, cash gifts to friends and family, monthly credit card bills approaching six figures—the list goes on. In two months, he went from paying himself $13,000, to a quarter-million dollars, to—he hoped—a half-million dollars. Only getting caught stopped that unabashed escalation.”
Francis-Curley has agreed to pay restitution to his former employer, to the Small Business Administration, and to the person whose identity he used to obtain the credit card for fraud.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney David T. Martin.
Federal Way, Washington woman indicted for bank and wire fraud for fake investment schemeRead the Press Release
Seattle – A 52-year-old Federal Way, Washington woman was indicted this week by a federal grand jury for three counts of wire fraud and two counts of bank fraud, announced Acting U.S. Attorney Teal Luthy Miller. Jenni Yoon Jeong Lee allegedly held herself out to elderly members of the Korean community as an investment advisor. In reality, the investments went into accounts controlled by Lee and were used for her personal expenses. Lee allegedly defrauded at least 28 victims of over $3 million that was used for her expenses, her family’s expenses or to pay off earlier investors in the style of a Ponzi scheme.
“Ms. Lee held herself out as an experienced investment advisor offering her victims a guaranteed return on the funds they placed with her,” said Acting U.S. Attorney Miller. “However, the indictment notes that none of the money was invested and in fact, nearly $1 million of investor funds were accessed and spent at area casinos.”
According to the indictment, Lee created various business entities with names that made it seem they were financial investment companies. Lee opened and controlled bank accounts for these shell companies.
Lee held herself out as a financial advisor employed at the shell companies. She claimed both orally and in writing that she would place victim investments in funds that would guarantee a safe return, sometimes as high as 10%. She often represented that the principal was fully guaranteed so there was no risk associated with the investment.
Lee allegedly got the victims to write checks to one of the shell companies for ‘investment,’ or she induced the client to fund a self-directed IRA at a legitimate financial services company and give Lee access to manage the account. Lee would sometimes provide the financial services company with a promissory note to make it appear the client was loaning money to one of Lee’s shell companies. In this way she gained control of the investor funds.
In all Lee took in at least $3 million. Some money was paid back to investors making the full loss amount approximately $2.2 million. Of that, over $900,000 was withdrawn and spent at casinos.
The three counts of wire fraud are for specific transfers of funds from self-directed IRA accounts. The two counts of bank fraud are for depositing client checks into one of the shell corporation accounts. These counts are representative acts of the alleged scheme.
The charges in the indictment are punishable by up to 30 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Sean H. Waite
Vancouver, Washington, high volume tax preparer indicted for aiding and assisting false tax returnsRead the Press Release
Tacoma – A high-volume tax preparer in Vancouver, Washington was indicted last week for sixteen counts of aiding and assisting in the preparation of false and fraudulent returns, announced Acting U.S. Attorney Teal Luthy Miller. Keith Altamirano, 52, operated Integrity Investments, LLC, doing business as Servicios Latinos. Between 2017 and 2021, Altamirano prepared at least 12,000 tax returns. The grand jury alleges that his false entries on customer tax returns cost the U.S. Treasury more than $5 million in tax loss.
Altamirano was arrested late yesterday and will make his initial appearance on the indictment today at 1:00 in Tacoma.
According to the indictment, Altamirano falsified clients’ income tax submissions by listing fake medical expenses, and charitable donations for deductions, listing fake cars for depreciation and expense deductions, and by listing fabricated and inflated business expenses. Altamirano concealed his fraud by using “White Out” and omitting his name on his clients’ filed returns.
In an unrelated matter, Altamirano was charged last month in Clark County Superior Court, with attempted murder for intentionally crashing into the motorcycle that his son was riding. Altamirano allegedly claimed his car had been stolen and used to hit his son on February 18, 2025. Dash cam video from the vehicle told a different story and Altamirano was arrested and charged.
Aiding and assisting with filing a false or fraudulent tax return is punishable by up to three years in prison per count and a $100,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The tax fraud case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The tax fraud case is being prosecuted by the Economic Crimes Unit.
DOJ and Vix Technology (USA) Inc. resolve allegations of Paycheck Protection Program fraudRead the Press Release
Seattle – The U.S. Department of Justice and Vix Technology (USA) Inc. today resolved a qui tam False Claims Act lawsuitalleging Vix had too many employees to qualify for the $1,066,900 Paycheck Protection loan it received on May 18, 2021. Vix will pay $2,144,114 to resolve the matter. The relator of the qui tam case will receive a percentage of the settlement amount. The relator is the San Francisco company Blockquote that produces public interest internet research, news reporting and investigations.
According to the settlement agreement, on June 24, 2024, Blockquote filed a qui tam action alleging that Vix Technology had improperly received a COVID 19 Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration. To be eligible for the loan a business had to have fewer than 300 employees. Vix has more than 300 employees in its operations around the world and therefore did not qualify for the loan.
Vix Technology is an Australian company that designs, supplies, and operates automated fare collection systems, intelligent transportation systems access, payment, and passenger information display systems for the public transit industry. The company’s U.S. Operations are headquartered in Tempe, Arizona.
Vix does not admit any wrongdoing, but to avoid the uncertainty of litigation, entered into the agreement with the United States paying double damages of $2,144,114. Vix will also pay $20,000 to the relator, Blockquote, for attorney fees and costs.
“The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration, working with the U.S. Attorney’s Office and with private individuals who uncover fraudulent conduct, to recover the product of fraud and penalties as well,” said SBA General Counsel Wendell Davis.
The settlement was negotiated by Assistant United States Attorney Nickolas Bohl.
Tacoma man with lengthy criminal history pleads guilty to gun and drug chargesRead the Press Release
Seattle – A Tacoma resident, who was previously charged and acquitted in state court in a 2020 downtown Seattle mass shooting, pleaded guilty today in federal court in Seattle to drug trafficking and illegal firearms possession, announced Acting U.S. Attorney Teal Luthy Miller. Marquise Tolbert, 29, of Tacoma, Washington, was arrested in June 2023, and has been in federal custody since that time. Tolbert is scheduled for sentencing by U.S. District Judge Tana Lin on June 18, 2025.
According to records in the case, Marquise Tolbert admits he possessed a firearm on June 1, 2023. On that day Tolbert was arrested at this Tacoma address on a Washington Department of Corrections (DOC) warrant. A Ruger 5.7 pistol and loaded magazine were found in his residence. Tolbert is prohibited from possessing firearms due to a September 2022 conviction in King County Superior Court for illegally possessing a firearm.
Investigators with the FBI Safe Streets task force, the DEA, and the Seattle Police Gun Violence Reduction Unit were investigating a drug trafficking organization when Tolbert and his coconspirators were heard on a wiretap discussing a shoot-out in Federal Way. From that point on, investigators worked to identify those who were possessing and using firearms as part of their criminal activity. Investigators heard Tolbert discussing his purchase of the Ruger firearm from another member of the conspiracy. On the day he bought the gun law enforcement, surveilled Tolbert, followed him to his residence, arrested him, and secured the firearm.
Additionally, the investigation determined that Tolbert was involved in distributing controlled substances including oxycodone that was being shipped to Washington State from Arizona.
Illegal firearms possession is punishable by up to 15 years in prison. The drug distribution count is punishable by up to 20 years in prison. Under the terms of the plea agreement, prosecutors will recommend no more than seven years in prison for both counts of conviction. The actual sentence will be determined by Judge Lin after considering the sentencing guidelines and other statutory factors.
In 2020, Tolbert was involved in a gang shootout at 3rd Avenue and Pine Street in downtown Seattle. One woman was killed, and seven other bystanders were injured in the gun battle. Tolbert was acquitted on murder and assault charges connected to the case. His attorney’s argued he was not the first to fire in the gang related shooting. He was convicted of illegal firearms possession.
The case was investigated by the FBI, the Seattle Police Department, and the DEA as part of their focus on getting firearms off the streets.
The case is being prosecuted by Assistant United States Attorneys Stephen Hobbs and Michelle Jensen.
Venezuelan National arrested with large load of drugsRead the Press Release
Seattle – A 22-year-old Venezuelan National made his initial appearance this week in U.S. District Court in Seattle, following his arrest in Federal Way, Washington with a large amount of suspected narcotics, announced Acting U.S. Attorney Teal Luthy Miller. Sebastian Velasquez-Perez was taken into custody at St Francis Hospital after he was treated for a drug overdose. He remains in federal detention pending a hearing scheduled for March 17, 2025.
According to the criminal complaint, on March 8, 2025, Federal Way Police were called to a Federal Way motel when staff discovered Velasquez-Perez unresponsive in his room. The staff administered two doses of NARCAN and performed CPR. Velasquez-Perez was transported to the hospital, and law enforcement obtained a court order to search the room.
In the room law enforcement seized: five bags containing approximately 3.2 kilograms of methamphetamine; 12 bags of a powdery substance that will be tested as a possible controlled substance; five bags of fentanyl pills – approximately 5,000 pills in all; and two bags of black tar substance appearing to be heroin. Also in the room three cellphones, a digital scale with drug residue, and nearly $8,000 in cash.
There were no documents in the hotel room indicating that Velasquez-Perez was legally present in the United States.
The case is being investigated by the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI), and the Valley Narcotics Enforcement Team (VNET).
Citizen of Zimbabwe, who twice crossed illegally from Canada into Washington State, pleads guilty to gun and drug crimesRead the Press Release
Seattle – A citizen of Zimbabwe pleaded guilty today in U.S. District Court in Seattle to two federal felonies related to his illegal border crossing in the wilderness area between Canada and Western Washington, announced Acting U.S. Attorney Teal Luthy Miller. Tatenda Banga, 30, was observed twice in 2024 on surveillance cameras near Hozomeen, Washington in the North Cascades. Today Banga pleaded guilty to being an unlawful alien in possession of firearms and possession of controlled substances with intent to distribute. Sentencing is scheduled in front of U.S. District Judge Jamal N. Whitehead on June 12, 2025.
According to the plea agreement, on January 3, 2024, the U.S. Border Patrol detection technology captured an image of an armed person entering the United States near the north end of Ross Lake near Hozomeen, Washington. The image shows a person, later identified as Banga, crossing over the border with a longarm shotgun. Later that day Banga is seen defacing another camera near the border. Personnel from the Border Patrol and the National Park Service responded and searched for the person pictured in the surveillance, but the subject fled into the woods and was not located. Agents did find a loaded 12-gauge Winchester shotgun that appeared to match the gun in the surveillance image that the subject left behind during his flight from law enforcement. The gun was traced to a firearms dealer in Montreal, but no fingerprint records matching those on the gun were found at the time.
On December 27, 2024, the National Park Service alerted Border Patrol to suspected cross border activity. A National Park Service canoe was discovered near Ross Dam with a machete and food wrappers inside the canoe. RCMP cameras provided an image of someone with a headlamp and backpack moving toward the U.S./Canada border.
While driving Highway 20 (the North Cascades Highway) near the south end of Ross Lake, Border Patrol agents noticed Banga walking on the side of the highway. Banga’s appearance matched the appearance of the individual from the RCMP surveillance images. Banga was contacted for an immigration inspection and had no documents to establish that he had legally crossed into the U.S. or that he was legally present in the U.S. When Banga was taken into custody he was found to have scales, gelatin capsules and about 1.4 pounds of MDMA in his possession.
It was then that Border Patrol Agents recognized Banga as being the same individual who was recorded defacing cameras in the area nearly a year prior. Border Patrol Agents reran the fingerprints found on the shotgun that was recovered on the U.S. side of the border back in January 2024, and the fingerprints on the gun matched to Banga. Information on Banga’s phone also linked him to the shotgun. Banga admits that he unlawfully entered the U.S. while armed with the shotgun.
Being an unlawful alien in possession of a firearm is punishable by up to 15 years in prison. Possession of a controlled substance with intent to distribute is punishable by up to 20 years in prison. Judge Whitehead will determine the actual sentence after considering the sentencing guidelines and other statutory factors.
The case was investigated by the U.S. Border Patrol Blaine Sector Anti-Smuggling Unit, National Park Service, and U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI). The case is being prosecuted by Assistant United States Attorney Dane A. Westermeyer and Special Assistant United States Attorney Katherine Collins.
Former employee of an online car sales company sentenced to more than 11 years in prison for $2 million embezzlement and absconding before sentencingRead the Press Release
Seattle – A 42-year-old Tacoma man was sentenced today in U.S. District Court to 142 months in prison for wire fraud, for his scheme to steal more than $2 million from his employer, and for then going on the run before sentencing, announced Acting U.S. Attorney Teal Luthy Miller. John Whisenant was arrested in July 2023 and pleaded guilty in March 2024. Just before his July 2024 sentencing date, Whisenant sent an email to his pretrial services officer saying, “I’m not ready to go to jail yet.” Despite his efforts to evade police, the FBI located and arrested him on August 14, 2024.
At the sentencing hearing U.S. District Judge Lauren King said, Whisenant’s life had been, “a revolving door of crime and prison time.” Judge King noted that the fraud had “a devastating impact… the financial damage (for the victim company) was extreme.” As for his failure to appear for sentencing, Judge King said, “Your actions have destroyed your credibility before this court.”
“This was a sophisticated fraud scheme motivated by greed,” said Acting U.S. Attorney Miller. “Mr. Whisenant bought Porsches and Mercedes and $23,000 airline tickets. He dealt a devastating blow to the company that employed him. Over 20 years he committed 19 fraud offenses related to stealing, swindling, and cheating, but this was the largest. The time is past due for him to be held accountable.”
According to records filed in the case, beginning in October 2018 Whisenant worked in a variety of roles at the online used car sales company. About a year after he began with the company, Whisenant was promoted into a role where he had access to the company bank accounts and accounting software.
Beginning in about June 2019 and continuing until November 2021, Whisenant used his access to make 57 wire transfers totaling over $2 million into accounts he controlled. Whisenant disguised the transfers as legitimate business expenses in the company’s accounting software with a variety of false entries. Whisenant defrauded the company of $2,084,799.
According to records in the case, Whisenant used some of the money for a lavish lifestyle. He bought luxury automobiles such as Porches and Mercedes. He spent $123,096 for a 2022 Audi E-Tron and bought a $98,100 Tesla. He rented luxury homes in Southern California and purchased two airline tickets to Paris at a cost of nearly $23,000 each. More than $1 million went to pay his credit card debts.
The fraud on the company accounts was discovered when a bookkeeper began a more comprehensive review of the company’s financials in January 2022. Whisenant resigned abruptly in February 2022.
When confronted by the FBI, Whisenant tried to blame the embezzlement on the company CEO. As prosecutors noted in their sentencing memo the impact on the company has been severe. “Whisenant’s fraud seriously harmed his victims. His betrayal “traumatized” his co-workers. His fraud destabilized (victim company’s) finances and inflicted significant financial hardship on its largest shareholder, his family, and other investors. His actions may have ultimately cost (victim company’s) largest shareholder (and CEO) the company.”
Prior to his absconding prosecutors were recommending a seven-year prison sentence. Today, they recommended ten and a half years in prison to account for Whisenant’s disregard for the law and the court. While on the run Whisenant repeatedly swapped-out the SIM card in his phone to hide his location, and trafficked methamphetamine, GHB, Viagra and other pills to support himself.
This is Whisenant’s second federal fraud conviction. He was sentenced for wire fraud in 2017 and over the past two decades was convicted in state court of various credit card and check fraud crimes.
Whisenant has agreed to make full restitution of $2,084,779.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Sean Waite.
Violent pimp who trafficked women through the west, beating and threatening them, sentenced to 15 years in prisonRead the Press Release
Seattle – A California man was sentenced today in U.S. District Court in Seattle to 180 months (15 years) in prison for two federal felonies related to his sex trafficking of adult female victims, announced Acting U.S. Attorney Teal Luthy Miller. Winston Cornell Burt aka “Dice Capone,” 32, of Hemet, California, was arrested November 6, 2022, after he brutally assaulted a 20-year-old woman and engaged in a rolling gun battle as she fled in a van driven by a man who picked her up from the middle of Aurora Avenue in north Seattle. The sentence will run concurrent with a 176-month sentence imposed in King County Superior Court.
At today’s sentencing hearing U.S. District Judge John H. Chun said, “This was horrific criminal conduct – outrageous conduct. He treated (the victims) terribly – and that is an understatement.” Judge Chun ordered Burt to be on 15 years of supervised release following prison.
“Winston Burt is a manipulative and predatory person who has supported a luxurious lifestyle for himself with the prostitution profits of his victims,” said Acting U.S. Attorney Miller. “His conduct – badly beating women in his control and engaging in a rolling gun battle when one person tried to escape – put our community at risk. Throughout his adult life, Burt has exhibited nothing other than disregard for the law and a complete lack of respect for women.”
In October 2024, Burt pleaded guilty to the federal charges of Sex Trafficking through Force, Fraud, and Coercion and Unlawful Possession of Firearms. In King County Superior Court, he pleaded guilty to three counts of Assault 2; Drive-by Shooting; Unlawful Imprisonment; and Assault-3.
According to records filed in the case, Burt self-identifies as a “pimp” who led a sex trafficking enterprise through California, Arizona, and Washington. The young women were required to provide all the money they earned in prostitution to Burt. Three women had his name tattooed on their faces – a sign of “ownership.”
On November 2, 2022, Burt assaulted the 20-year-old victim in this case by kicking her, punching her, and pistol whipping her after she indicated she wanted to stop working for Burt. The assault occurred at an Airbnb in south Seattle. Three days later, on November 5, 2022, Burt assaulted the victim again and forced her to strip to her underwear. The victim tried to escape from the rental home by jumping out a third story window. The defendant and two women working for him forced her into a car and drove towards a motel on north Aurora Avenue. Burt was armed with a gun, but the victim was able to get out of the car and ran into traffic on Aurora wearing only her underwear. Burt and his other female sex workers tried to force the victim back into the car, but the victim stayed in the middle of the roadway until finally she was picked up by a driver who saw her in distress.
Even after the victim was driven away in a van, Burt gave chase on Aurora Avenue and fired shots at the van with the victim inside. The driver was eventually able to evade Burt and called the Washington State Patrol for assistance.
Ultimately law enforcement responded to the scene and got the victim to Harborview Medical Center for treatment.
“As this case so horrifically illustrates, human trafficking is a violent crime and, more than that, constitutes modern day slavery,” said W. Mike Herrington, Special Agent in Charge of the FBI Seattle field office. “Even after the victim took extreme measures to try to escape, including jumping from a third-story window, Mr. Burt cruelly chased, assaulted, and shot at her and the driver who stopped to help her. He engaged in all this violence for what could be the most egregious of purposes: to return to unlawful captivity a human being he viewed, in effect, as his property. The FBI and our federal, state, and local partners will continue to pursue consequences for violent offenders befitting their crimes, and justice for their victims.”
Burt was arrested on November 6, 2022, as he was attempting to leave the Airbnb in south Seattle. In the car police recovered more than $41,000 in cash, and a firearm. At the time of his arrest Burt was wearing a $29,000 diamond necklace and a watch appraised for $85,000.
Law enforcement determined that Burt had used some of his illegal income to purchase a home in Arizona. When that home was searched, they recovered an additional firearm, methamphetamine and nearly $25,000 in cash.
Burt will forfeit both firearms and more than $72,000 in cash.
In asking for the 15-year sentence and 25 years of supervised release to follow, prosecutors wrote to the court, “Burt is a sex trafficker who used physical, mental, and emotional coercion to prey upon and control his victims for his own financial benefit. He forced his victims to walk the “track” and arrange dates with sex buyers, thus making them vulnerable to rape, assaults, or arrest. He also required the victims to follow his “rules,” which included tattooing his name on their faces and earning him at least $2,000 per day through commercial sex. Despite being a prohibited person, Burt routinely carried firearms and used them to further threaten and control his victims.”
Speaking to the court by phone today, the victim said Burt “gets a thrill from violence and hurting people. I was one of the lucky ones who got away.”
The case was investigated by the FBI, and Seattle Police Department with assistance from the Washington State Patrol (WSP). FBI Phoenix also assisted.
Senior Deputy King County Prosecutor Alexandra Voorhees worked closely with Assistant United States Attorney Kate Crisham on this case.
Seattle man who trafficked drugs and fired gun in International District Drive-by sentenced to prisonRead the Press Release
Seattle – A 50-year-old Seattle man was sentenced today in U.S. District Court in Seattle to 90 months in prison for drug trafficking and carrying a firearm in furtherance of drug trafficking, announced Acting U.S. Attorney Teal Luthy Miller. Phuong Nguyen Le was stopped in connection with a drive-by shooting in Seattle’s International District in February 2023 and was indicted in May 2023. Le was taken into custody with a loaded firearm and fentanyl, heroin, and cocaine base. Le was arrested after he fired several shots out of the window of his car in the Little Saigon neighborhood. At the sentencing hearing U.S. District Judge John H. Chun said, Le’s conduct “inflicted serious risk to members of the community.”
“Local and federal law enforcement continue to work to increase safety in the International District. This case is a good example of our office working with the King County Prosecutors Office and the Seattle Police to take the cases where federal prosecution provides the most impact,” said Acting U.S. Attorney Miller.
On February 24, 2023, Seattle Police officers responded to reports of shots fired at the intersection of 10th Avenue South and South King Street in Seattle. Witnesses at the scene reported a man in a white Mercedes fired a handgun in the air multiple times at the intersection. SPD officers then located the vehicle nearby and found Phuong Nguyen Le driving, with his girlfriend in the passenger seat. Le was the owner of the vehicle. Le ultimately gave consent to search the vehicle. SPD officers seized the following items:
- a Springfield Armory XD-9 9mm caliber pistol, with a round of ammunition in the chamber and a partially loaded magazine;
- an additional Springfield Armory 9mm caliber magazine loaded with ammunition;
- two spent bullet shell casings;
- approximately 83 grams of heroin;
- approximately 135 grams of cocaine;
- approximately 194 grams of suspected fentanyl powder;
- approximately 350 pills suspected to contain fentanyl.
In asking for the 90 -month sentence, prosecutors wrote to the court, “Le was found in possession of multiple controlled substances, including fentanyl, which he intended to distribute to others for his financial gain. Making matters more concerning is the fact that he was armed with a loaded firearm while possessing the controlled substances. Worse still is the fact that Le discharged his firearm while driving through a neighborhood in Seattle. The combination of drug distribution with firearm possession places the community at danger and warrants a substantial custodial sentence.”
Le will be on five years of supervised release following prison.
In April of 2012, Le was convicted of distribution of cocaine base in U.S. District Court for the Western District of Washington. In September of 2020, Le was sentenced to two years in prison for illegal possession of a firearm and illegal possession of drugs
The case was investigated by the Seattle Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case is being prosecuted by Assistant United States Attorney Brian Wynne
Nigerian citizen, extradited from the U.K., arraigned on indictment for wire fraud involving stolen tax informationRead the Press Release
Seattle – A Nigerian citizen who was arrested and extradited from the U.K. on an indictment in the Western District of Washington was arraigned today in U.S. District Court in Seattle, announced Acting U.S. Attorney Teal Luthy Miller. Onomen Uduebor, 38, is charged in a three-count indictment related to a scheme to steal and use income tax data for fraud. The 2019 indictment was unsealed today for Uduebor’s first appearance. Uduebor entered a plea of ‘not guilty’ and trial is scheduled before U.S. District Judge James L. Robart on May 12, 2025.
“This defendant allegedly participated in a conspiracy that involved tricking companies around the United States, including a Tukwila-based company, into providing W-2 information on their employees. Then the conspirators filed fake tax returns in the employees’ names, claiming large refunds and causing chaos for those whose Social Security numbers had been stolen,” said Acting U.S. Attorney Miller.
According to the indictment, between February 2016 and April 2017, the conspirators created false emails that appeared to come from a company executive asking the Human Resources Department for the W-2 data. The conspirators manipulated the email so that any reply would go to an email address that they controlled. The conspirators then used the information from the W-2s to file more than 300 bogus tax returns claiming more than $1 million in tax refunds. The conspirators targeted companies across the U.S. in this scheme.
Uduebor is charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
The wire fraud charges are punishable by up to twenty years in prison. Aggravated Identity Theft is punishable by a mandatory minimum two years in prison to run consecutive to any sentence 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 Internal Revenue Service – Criminal Investigations (IRS-CI).
The case is being prosecuted by Assistant United States Attorney Miriam Hinman. Uduebor was arrested in the United Kingdom in September 2023. The U.S. Department of Justice’s Office of International Affairs provided valuable assistance with the extradition process.
Skagit County man once declared a sexually violent predator, pleads guilty to receipt and possession of images of child sexual abuseRead the Press Release
Seattle – A 71–year-old Skagit County man pleaded guilty today in U.S. District Court in Seattle to receipt and possession of images of child sexual abuse, announced Acting U.S. Attorney Teal Luthy Miller. Alan Lewis Meirhofer faces a mandatory minimum 15-year prison sentence when he is sentenced by U.S. District Judge John H. Chun on June 2, 2025.
According to records filed in the case, Meirhofer befriended teen boys in the Skagit County area by inviting them to hang out at his residence, where he provided them “gifts’ such as food, clothing, alcohol, cash, and marijuana. When one of the boys borrowed the phone, he noticed that Meirhofer had sent members of a group chat, images of his friends. The teen also saw images of child sexual abuse on the phone. The teens mother alerted police and Meirhofer was arrested in March 2021 and his electronic devices were seized.
The FBI asked the National Center for Missing and Exploited Children, (NCMEC) for any cyber tips associated with internet accounts linked to Meirhofer. There were more than a dozen reports of images of child sexual abuse linked to accounts controlled by Meirhofer. On July 17, 2024, Meirhofer was taken into federal custody.
In 1988 Meirhofer was convicted of burglary, kidnapping and rape. In 1990, Meirhofer was convicted of Burglary in the First Degree While Armed with a Deadly Weapon and Assault in the Second Degree. Meirhofer was civilly committed to the sexually violent predator Civil Commitment Center on McNeil Island. He was released in 2017 as a registered sex offender level 3, the level with the highest risk of reoffending.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case is being investigated by the FBI, the Skagit County Sheriff’s Office, the Bellingham Police Department, and the Skagit County Prosecuting Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
Second defendant sentenced to 7 years in prison for drug trafficking from RVs near a state parkRead the Press Release
Seattle –A King County woman, arrested after law enforcement discovered a drug lab and cache of firearms and explosives inside an RV near a state park, was sentenced today to seven years in prison for possession of fentanyl with intent to distribute, and unlawful possession of a machinegun, announced Acting U.S. Attorney Teal Luthy Miller. Chandler Bennett, 30, and her partner Braiden F. Wilson, were arrested following a May 12, 2024, shooting in rural King County. At today’s sentencing hearing U.S. District Judge Lauren King said, “You were taking deliveries of fentanyl at your mobile home… These crimes were egregious. You distributed a large amount of dangerous drugs.”
“Ms. Bennett was a key player in the drug distribution activities, negotiating the prices for fentanyl and other drugs from the couple’s supplier,” said Acting U.S. Attorney Miller. “The activities of Ms. Bennett and her co-defendant no doubt contributed to the crisis of fentanyl abuse that continues to plague our communities.”
According to records filed in the case, Homeland Security Investigation (HSI) was investigating Bennett and Wilson for dealing drugs on the dark web, when King County Sheriff’s deputies were called to the RV near Olallie State Park
when Wilson was shot. The deputies noticed that the RV had surveillance cameras and asked to get access to the recorded video to identify the assailant. Bennett refused to allow law enforcement to enter the RV, so they sought a warrant from a King County Judge.
When law enforcement entered the RV, they found a large cache of weapons as well as fentanyl powder, tablets containing fentanyl, and sundry items associated with the manufacture of tablets, including a manual pill press. Law enforcement located more than two and a half kilograms of fentanyl-laced pills. Law enforcement seized 16 firearms, body armor, silencers, and ballistic shields. They also found gun parts made from 3D printers – making them untraceable. There were multiple destructive devices and literature on the chemistry and manufacturing of explosives, as well as literature on how to convert firearms to fully automatic capability.
Agents and officers also searched two storage units associated with Bennett and Wilson and found two additional pill presses, more controlled substances, and mailing supplies. In all law enforcement seized more than two kilos of fentanyl-laced pills, nearly a kilo of fentanyl powder, and more than three kilos of methamphetamine. Computer and bank records reveal that Wilson distributed controlled substances via his dark web identity more than 2,000 times and he took in more than $287,000 in crypto currency.
Bennett pleaded guilty in October 2024.
In asking for a seven-year prison sentence prosecutors highlighted how Bennett and Wilson’s conduct put others in the community at risk. “The manner in which Bennett and her co-defendant possessed the controlled substances placed others in danger. For the controlled substances Bennett and her co-defendant possessed in their residence, they placed park goers at risk. For the controlled substances she and her co-defendant possessed in the storage unit, they exposed other storage unit customers and facility workers at risk. And these risks are not speculative because when investigators served a search warrant on one of the storage units, they found substances strewn about to such a degree that professional remediation experts needed to be obtained to make the facility safe for occupancy again.”
“For the second time in a matter of days, the great work of the King County Sheriff’s Office is quite evident,” said King County Sheriff Patti Cole-Tindall. “Because of the keen observation and perseverance of our patrol deputies, and the steadfastness determination of our Gun Violence Reduction Unit, another criminal contributing to the fentanyl crisis is off the street and unable to put any more members of the community in harm’s way.”
The case was investigated by Homeland Security Investigation (HSI), the King County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the United States Postal Inspection Service (USPIS), the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA), with assistance from the Washington State Patrol.
The case is being prosecuted by Assistant United States Attorneys Casey Conzatti and Brian Wynne.
Registered sex offender who was deported from United States arrested in Snohomish County for receiving images of child sexual abuseRead the Press Release
Seattle – A 42-year-old Mexican citizen was indicted this week for receiving images of child sexual abuse, announced Acting U.S. Attorney Teal Luthy Miller. Jaime Neri-Soto was arrested by Bothell Police detectives following an investigation prompted by reports to the National Center for Missing and Exploited Children (NCMEC). Using those cyber tips investigators were able to identify Neri-Soto as the owner of electronic devices allegedly containing images of child sexual abuse.
According to records filed in the case, in October 2024, WhatsApp alerted NCMEC that a user of its platform had uploaded images of child sexual abuse. In January 2025, the CyberTip was referred to the Bothell Police Department who immediately began work to connect the phone number and IP address to a particular individual. Working with information on the device and internet service providers, law enforcement was able to determine the location of the phone at various times and ultimately identified Neri-Soto.
Following some surveillance, Neri-Soto was arrested and taken to Bothell Police. When he was fingerprinted law enforcement learned he was a previously registered sex offender whose registration was terminated in 2017, when he was turned over to federal authorities for deportation.
Federal authorities were involved in the forensic analysis of the electronic devices Neri-Soto possessed. The cyber review allegedly found numerous images of child sexual abuse on one of the devices. Neri-Soto was charged federally by criminal complaint with receipt of images of child sexual abuse.
The grand jury returned an indictment for receipt of child pornography late yesterday.
The charges are punishable by up to twenty in prison.
Neri-Soto is scheduled for arraignment on March 13, 2025.
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 Bothell Police Department and the FBI.
The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
This case was also brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
California man sentenced to prison for scheme to smuggle Indian citizens into the U.S.Read the Press Release
Seattle –A Santa Rosa, California resident, who is a citizen of India, was sentenced today in U.S. District Court in Seattle to six months in prison for Conspiracy to Bring in and Transport Certain Aliens for Profit, announced Acting U.S. Attorney Teal Luthy Miller. Sushil Kumar, 35, and three others were indicted in connection with a scheme to smuggle non-citizens across the northern border for profit. The group was connected to two smuggling episodes in November and December 2023. At the sentencing hearing U.S. District Judge Tana Lin noted that those smuggled into the country are vulnerable. “That they wanted to be in the country doesn’t mean they were not exploited. Each was charged $5,000 to $10,000 which is months or years of their salary in the country from which they were coming… Human smuggling undermines our country’s ability to regulate the border at a real cost,” Judge Lin said.
According to records filed in the case, the two smuggling events involved eight different citizens of India. On November 27, 2023, a motion-activated camera caught multiple people jumping a fence near the Boundary Village Apartments in Blaine, Washington. The fence is a quarter mile east of Peace Arch Park. Border Patrol agents near the apartments saw five people run to a white minivan. The vehicle was stopped by Border Patrol. Five citizens of India were in the van with California resident Bobby Joe Green, 68, as the driver.
When questioned, three of the non-citizens told U.S. Border Patrol agents that they saw Mr. Kumar at Peace Arch Park prior to crossing the border illegally and identified him in 6-pack photo lineups. Two of the non-citizens stated that they communicated with Mr. Kumar via WhatsApp prior to November 27, 2023. One of the non-citizens stated that Mr. Kumar instructed him to jump over a specific fence, and that he sent the non-citizen a screenshot of his live location near the fence. The investigation revealed that Kumar and 26-year-old Rajat Rajat directed the non-citizens on where and how to cross the border. Rajat paid Green to transport the non-citizens from the border. Rajat asked for monetary payments from the non-citizens for being smuggled into the U.S.
Similarly, in December 2023, Rajat met three citizens of India in Peace Arch Park and allegedly directed them how to cross through the park and get into a car driven by Sneha. The car was stopped, and the non-citizens were interviewed. They indicated they had promised to make monetary payments to be smuggled into the U.S. Rajat was picked up near the border after Sneha and the three Indian nationals had been taken into custody.
In asking for an eight-month prison sentence, prosecutors wrote to the court, “Smuggling of non-citizens is a dangerous scheme that profits from exploiting vulnerable individuals while undermining the United States’ ability to regulate its borders and exposing our nation to potential security threats. Mr. Kumar admits that he knowingly and intentionally conspired with his co-defendants to smuggle and transport non-citizens with no lawful right to enter or remain in the United States, and that he engaged in these acts for his own financial gain.”
Three of the four defendants have pleaded guilty. Rajat Rajat, will be sentenced on April 23, 2025. Bobby Joe Green will be sentenced on March 13, 2025. The fourth defendant Sneha, 20, a citizen of India who is in the U.S. on a student visa and goes by just her last name, is scheduled to go to trial on a superseding indictment on May 12, 2025. Sneha was arrested in Renton and released on an appearance bond.
The charges contained in the superseding indictment of Sneha 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 Homeland Security Investigations (ICE HSI) and the U.S. Border Patrol.
The case is being prosecuted by Assistant United States Attorneys Jin Kim and Mike Dion and Special Assistant United States Attorney Katherine Collins.
Mexican national sentenced to five years in prison for drug trafficking and illegally possessing firearmRead the Press Release
Seattle – A 30-year-old citizen of Mexico was sentenced today in U.S. District Court in Seattle to five years in prison for unlawfully possessing a firearm and possession of controlled substances with intent to distribute, announced Acting United States Attorney Teal Luthy Miller. Jose Gerardo Rodriguez-Montoya was encountered twice by law enforcement – the first time while they were investigating a drug distribution ring bringing narcotics to the area from Arizona. At the sentencing hearing U.S. District Judge Jamal N. Whitehead said, “These offenses are serious. You had large quantities of fentanyl and other drugs… Dealing in fentanyl is dealing in death.”
According to records in the case, in March and April 2023, Rodriguez-Montoya was identified as a drug supplier by someone working as a confidential informant. Law enforcement learned that the trafficking organization was expecting a new shipment of narcotics from Arizona, and they saw Rodriguez-Montoya unload a large duffel-bag from a car with Arizona plates and take it into his Federal Way apartment. When law enforcement moved in, they recovered three kilograms of fentanyl powder as well as three kilograms of heroin and various smaller amounts of methamphetamine and fentanyl pills. They also found a .45 caliber pistol in the apartment.
Seven months later he was arrested coming out of Snoqualmie Casino after being linked to a burglary and car theft. At the arrest Rodriguez-Montoya was found to have a handgun in his right front pocket.
Rodriguez-Montoya pleaded guilty to the two federal felonies in November 2024.
In asking for the five-year sentence prosecutors noted for the court the latest statistics on fentanyl overdose deaths in our community. “In 2023, the King County Medical Examiner’s office reported 1,085 confirmed overdose deaths related to fentanyl, 778 deaths in 2024, and 99 fentanyl-related deaths in King County so far this year. Fentanyl is estimated to be fifty times stronger than heroin. Even a tiny amount of fentanyl can kill. And Rodriguez-Montoya knows personally the devastating impact of fentanyl. In 2021, his father passed away from an accidental fentanyl overdose while living here in Seattle.”
Rodriguez-Montoya has been in federal custody since his arrest in February 2024.
Judge Whitehead imposed 4 years of supervised release to follow prison should Rodriguez-Montoya return to the U.S.
The case was investigated by Seattle Police department and U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI). The case is being prosecuted by Assistant United States Attorney Erika Evans.
Leader of $1.4 million bank fraud and identity theft scheme pleads guilty to victimizing bank customers nationwideRead the Press Release
Seattle – A leader in a nationwide $1.4 million bank fraud scheme pleaded guilty this week in U.S. District Court in Seattle to conspiracy to commit bank fraud, aggravated identity theft, and money laundering, announced Acting U.S. Attorney Teal Luthy Miller. Amber Towndrow, 36, was indicted along with coconspirator Darby Canfield, 35, in April 2024. Prosecutors have agreed to recommend no more than eight years in prison for Towndrow when she is sentenced by U.S. District Judge Jamal N. Whitehead on June 12, 2025.
According to records filed in the case, Towndrow and her coconspirators acquired personal identifying information for at least 19 victims nationwide. In Western Washington, the co-schemers used that personal information to register businesses with the Washington Secretary of State. Armed with the business documents and false identification documents such as drivers’ licenses and passports, Towndrow would open business bank accounts at financial institutions where the victim already had a personal savings account. The bank system would link the new business bank account to the real customer’s bank account. The conspirators would then transfer money from the personal bank account to the business account. Towndrow would then use a business account debit card to purchase money orders and high value goods such as designer merchandise or electronics. Towndrow and other conspirators would use various fake IDs to cash the money orders at locations such as Money Tree outlets.
With this scheme Towndrow committed bank fraud and identity theft in Washington, Colorado, Pennsylvania, California, New Jersey, Indiana, and Washington D.C.
The plea agreement details how Towndrow defrauded a victim living in Illinois by creating a company registered in Colorado. Towndrow listed the Illinois victim as the registered owner of the company. Towndrow traveled to a Chase branch in Seattle where she opened a business banking account for the fake company. Towndrow and her coconspirators used online banking to transfer $131,709 from the Illinois victim account to the business account. Towndrow used the business debit card to purchase 128 U.S. Postal Service money orders totaling $126,653. The money orders were made payable to various people the co-schemers could impersonate with their fake IDs. The conspirators then cashed several of the money orders at various locations in the Seattle area.
The plea agreement admits similar conduct regarding a victim residing in Texas, who was defrauded of $75,000, of which $50,000 was used to purchase MoneyGram money orders across the Seattle area.
Towndrow admits she opened at least 50 business bank accounts and attempted to obtain $1.4 million. She admits she successfully obtained $664,000.
Conspiracy to commit bank fraud, and bank fraud are punishable by up to 30 years in prison. Money laundering is punishable by up to 20 years in prison and aggravated identity theft is punishable by a mandatory minimum two years in prison consecutive to any other sentence imposed in the case.
The case is being investigated by The U.S. Postal Inspection Service, the Diplomatic Security Service, and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Sean Waite.
Chinese citizen who attacked Bellevue, Washington immigrant sentenced to 7 years in prisonRead the Press Release
Seattle– A 33-year-old citizen of China, who was residing in Los Angeles, was sentenced today in U.S. District Court in Seattle to seven years in prison for kidnapping, announced Acting U.S. Attorney Teal Luthy Miller. Ji Wang was arrested on May 13, 2024, in the Los Angeles area. Wang was identified as one of the kidnappers linked to the May 27, 2023, abduction and assault of a worker at a hot pot restaurant in Bellevue, Washington. At the sentencing hearing U.S. District Judge James L. Robert said, “They not only kidnapped the victim, but brutally assaulted him… It did serious injuries and permanent damage…. It’s about as callous a set of circumstances and as malicious an assault short of actually killing someone.”
According to records filed in the case, Ji Wang was connected to a ring smuggling people across the southern border into the U.S. for a fee. Wang had been illegally smuggled into the U.S. less than two weeks before the kidnapping. The investigation revealed that the victim referred people from China who wanted to cross into the U.S., for the smuggling services. The victim was supposed to collect and transfer smuggling fees from those who used the smuggling services. The victim did not collect as high a fee as the smuggling group anticipated. Wang and a co-schemer traveled to Bellevue in May and physically removed the victim from his work and forced him into a sedan.
The men beat the victim and smashed his face into the cement and dragged him down a set of stairs. Witnesses quickly alerted Bellevue Police. Officers worked with the victim’s girlfriend who placed a video call to the victim’s cellphone. Wang answered the call and showed his face. Police recorded the call and were able to identify Wang.
Wang and his associate dropped the victim at a service station in Bellevue. The victim was critically injured and needed emergency surgery for swelling of the brain. The victim was in a coma for six weeks. He has had four skull surgeries. He spent five months in Overlake hospital. He has lasting physical and cognitive damage from the assault. The medical bills from the assault are more than $1 million.
In asking for the 8-year sentence prosecutors wrote to the court, “the sentence should also be long enough to deter similarly situated defendants from engaging in such brazen and violent conduct to collect illegal smuggling debts.”
Wang was not legally present in the United States and will likely be deported following his prison term.
The case was investigated by the Bellevue Police Department, U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI), and the U.S. Marshal’s Service Task Force.
Key member of drug distribution ring linked to Aryan prison gangs sentenced to 14 years in prisonRead the Press Release
Tacoma – A key member of a drug distribution ring selling fentanyl pills, methamphetamine, and heroin throughout the Puget Sound region was sentenced today in U.S. District Court in Tacoma to 14 years in prison for his role in the conspiracy and for possessing firearms in furtherance of drug trafficking, announced Acting U.S. Attorney Teal Luthy Miller. Michael Slocumb, 46, attempted to evade law enforcement and helped move the drug ring activities to Arizona after the Shelton, Washington, stash house he and his partners operated was raided in December 2022. When law enforcement moved in on the multi-faceted drug conspiracy in March 2023, Slocumb was arrested in his new home in Arizona.
At today’s sentencing hearing Chief U.S. District Judge David G. Estudillo said about fentanyl pills, “People become addicted to these drugs . . . they end up taking a bad dose and that ends their time on this Earth.” Remarking on Slocumb’s guns, Judge Estudillo said, “The firearms involved here are extremely serious and the types of firearms make me wonder what they may have been used for.”
According to records filed in the case, in the fall of 2022, Slocumb made multiple trips to Arizona to pick up and transport narcotics to the Shelton stash house. Slocumb used the stash house to manufacture fentanyl pills using two different pill presses. When the stash house property was searched on December 9, 2022, law enforcement
seized more than 640,000 pills containing fentanyl, as well as a kilogram of fentanyl powder and 12 kilograms of methamphetamine, along with more than $81,000 in cash proceeds from drug trafficking. Slocumb was a key partner for the leader of the drug conspiracy.
The stash house property also contained 23 firearms, including a shotgun kept where the drugs were stored, and the pills manufactured. In his car, Slocumb kept several firearms including a loaded .40 caliber pistol behind the front seat. In a suitcase in the trunk were a 9mm handgun with a high-capacity magazine and an AR-15 type rifle with a folding shoulder stock and a loaded 115-round drum magazine. Also in the suitcase was a 9mm firearm silencer.
During this conspiracy, law enforcement intercepted Slocumb and the ringleader Bryson Gill discussing kidnapping a rival drug dealer. Slocumb was surveilling the target’s apartment when law enforcement made a show of being in the vicinity to get Slocumb to leave and ward off any violence.
Following the stash house raid, Slocumb was heard on the wiretap discussing his plan to move drug operations to Arizona. Slocumb and Gill continued their drug trafficking in Arizona until they were arrested in March 2023. When law enforcement searched the Arizona property, they seized approximately 70 firearms and thousands of rounds of ammunition.
Slocumb pleaded guilty in November 2024 to conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
In asking for a 15-year sentence, prosecutors wrote to the court, “Slocumb’s conduct in the drug conspiracy involved massive numbers of firearms, as well as ammunition, firearms accessories, large capacity magazines, and a firearm silencer. It is clear that he played a trusted role in partnership with Gill in not just distributing drugs but acting as an enforcer—he took direction from Gill in picking up guns following a trip to get drugs from the stash house, and on another occasion, he conspired with Gill to kidnap a co-conspirator who was a drug redistributor.”
Bryson Gill entered a guilty plea February 7, 2025, to conspiracy to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering, and is scheduled for sentencing on May 9, 2025.
Law enforcement made two dozen arrests on federal charges on March 22, 2023. The coordinated takedown involved ten swat teams and more than 350 law enforcement officers. On that day law enforcement seized 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona. Earlier in the investigation law enforcement seized 830,000 fentanyl pills, 5.5 pounds of fentanyl powder, 223 pounds of methamphetamine, 3.5 pounds of heroin, 5 pounds of cocaine, $388,000 in cash, and 48 firearms.
The top-level leader of the drug trafficking ring, Jesse Bailey, is scheduled to be sentenced on May 16, 2025, and his wife and co-conspirator Candace Bailey, is scheduled for sentencing on June 13, 2025.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorneys Zach Dillon, Max Shiner, and Jehiel Baer.
Two brothers from India arraigned on indictment for selling counterfeit cancer drugs and adulterated medicationsRead the Press Release
Seattle – Two brothers from India appeared in court today on a 2022 indictment for multiple counts related to their scheme to sell counterfeit and adulterated drugs in the United States, announced Acting U.S. Attorney Teal Luthy Miller. Avanish Kumar Jha, 38, and Rajnish Kumar Jha, 35, were arrested in Singapore on April 20, 2023, based on a request from the United States. In January 2025, a judge in Singapore ruled the men could be extradited to the U.S. to face 28 felony charges and the Minister for Law ordered their surrender on February 24, 2025. Both defendants entered pleas of not guilty and trial was scheduled for May 5, 2025, in front of U.S. District Judge Ricardo S. Martinez.
“The defendants in this case allegedly made hundreds of thousands of dollars while defrauding people who were clinging to hope that a late-stage cancer medication could save their life. Because of this fraud, victims received counterfeit medication that contained none of the cancer-fighting substance they thought they were ordering,” said Acting U.S. Attorney Miller. “This fraud scheme didn’t just steal money; it stole the prospect of more time with loved ones for those battling cancer.”
The investigation of the Jha brothers began in 2019, when investigators reviewed internet postings and other evidence indicating that the Jha brothers and their company, Dhrishti Pharma International, were offering to sell prescription drugs to buyers in the United States and elsewhere. Undercover agents with the Office of Criminal Investigations (OCI) of the Food and Drug Administration (FDA) and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) began communicating with the Jha brothers and ordered some of their products. Of particular concern was a “medication” labeled as “Keytruda,” a Merck drug for late-stage cancer. An analysis revealed that the Jha brothers were selling counterfeit Keytruda that contained none of active ingredient that made the authentic product effective. Other products contained contaminants.
The brothers allegedly shipped the counterfeit and adulterated drugs from India. They accepted various means of payment including wire transfers and direct money exchanges. In some cases, they used intermediaries in the United States to pick up cash payments. The drugs were packaged in such a way to avoid detection by international customs or other regulators.
Both men had been detained in Singapore since their arrest in April 2023 based on a provisional arrest request from the United States. The United States submitted a formal extradition request to Singapore in June 2023.
"This case highlights ICE HSI’s commitment to protecting the public from dangerous and fraudulent practices that put vulnerable individuals at risk," said acting Special Agent in Charge of ICE HSI Seattle Matthew Murphy. "The company in question preyed on those in desperate need of lifesaving treatments by offering counterfeit medications that provided nothing but false hope. Thanks to the diligent work of our special agents and our law enforcement partners, we are taking swift action to ensure those responsible are held accountable.”
The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations and ICE HSI.
The case is being prosecuted by Assistant United States Attorney Philip Kopczynski. The U.S. Department of Justice’s Office of International Affairs provided valuable assistance with securing the extradition. Significant assistance was provided by law enforcement partners at the U.S. Embassy in Singapore, including the ICE HSI Attaché and the U.S. Department of State’s Diplomatic Security Service Office of Overseas Criminal Investigations, and Singaporean authorities, particularly the Singapore Police Force and Attorney-General’s Chambers.
Guatemalan citizen charged for failing to register as a sex offender and illegally returning after deportationRead the Press Release
TACOMA – A 25-year-old Guatemalan man will make his initial appearance in U.S. District Court in Tacoma today for failing to register or update his sex offender registration and re-entering the U.S. following deportation, announced Acting U.S. Attorney Teal Luthy Miller. Juan Hernandez Zacharias was arrested in Mason County this morning by U.S. Immigration and Customs Enforcement Homeland Security Investigation agents.
Zackarias is charged by criminal complaint with two felonies. The first, failure to register or update his sex offender registration, relates to his sentencing in October 2022 for first degree child molestation. The sentencing documents advise Zackarias that should he leave the state, he must register as a sex offender within three days of returning. Zackarias allegedly did not register as required.
The second charge, reentry of a removed alien, relates to Zackarias’ return following deportation. On January 2, 2024, Zackarias had a removal hearing in Immigration Court. He was ordered removed and on February 4, 2024, he was removed from the United States and transported to Guatemala.
However, on May 16, 2024, Zackarias registered a white van with Washington State plates in his name – indicating that he had returned to Washington.
On December 6, 2024, Zackarias was arrested by Mason County Sheriff’s deputies for failing to register as a sex offender. The arrest was logged in the National Crime Information Center (NCIC). The NCIC system alerted ICE Homeland Security Investigations that Zackarias has an order of removal in place. The federal criminal complaint was sworn and filed with Magistrate Judge David W. Christal on February 21, 2025.
Failure to register or update sex offender registration is punishable by up to ten years in prison. Reentry of a removed alien is punishable by up to two years in prison.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI). The case is being prosecuted by Assistant United States Attorney Sean Waite and Special Assistant United States Attorney Katherine Collins.
King County man who dealt narcotics on the dark web and kept a cache of weapons at his RV sentenced to 8 years in prisonRead the Press Release
Seattle – A King County man, arrested after law enforcement discovered a drug lab and cache of firearms and explosives inside an RV near a state park, was sentenced today to eight years in prison for possession of fentanyl with intent to distribute, unlawful possession of a machinegun, and unlawful possession of destructive devices, announced Acting U.S. Attorney Teal Luthy Miller. Braiden F. Wilson, 29, and his partner, 30- year-old Chandler B. Bennett were arrested following a May 12, 2024, shooting in rural King County. At today’s sentencing hearing U.S. District Judge Lauren King said, the crimes “were egregious… You distributed a large amount of drugs that cause a danger to our community.”
“Mr. Wilson used the dark web to advertise his potentially deadly wares, shipping fentanyl pills across the country,” said Acting U.S. Attorney Miller. “He further placed the lives of the community in danger by stockpiling a cache of weapons and explosives, which he stored adjacent to a state park frequented by the public.”
According to records filed in the case, Homeland Security Investigation (HSI) was investigating Wilson for dealing drugs on the dark web, when King County Sheriff’s deputies were called to the RV near Olallie State Park when Wilson was shot. The deputies noticed that the RV had surveillance cameras and asked to get access to the recorded video to identify the assailant. Bennett refused to allow law enforcement to enter the RV, so they sought a warrant from a King County Judge.
When law enforcement entered the RV, they found a large cache of weapons as well as fentanyl powder, tablets containing fentanyl, and sundry items associated with the manufacture of tablets, including a manual pill press. Law enforcement located more than two and a half kilograms of fentanyl-laced pills. Law enforcement seized 16 firearms, body armor, silencers, and ballistic shields. They also found gun parts made from 3D printers – making them untraceable. There were multiple destructive devices and literature on the chemistry and manufacturing of explosives, as well as literature on how to convert firearms to fully automatic capability.
Agents and officers also searched two storage units associated with Wilson and found two additional pill presses, more controlled substances, and mailing supplies. In all law enforcement seized more than two kilos of fentanyl-laced pills, nearly a kilo of fentanyl powder, and more than three kilos of methamphetamine. Computer and bank records reveal that Wilson distributed controlled substances via his dark web identity more than 2,000 times and he took in more than $287,000 in crypto currency.
Wilson pleaded guilty in October 2024.
Asking for an eight-year prison sentence prosecutors wrote to the court, “Wilson engaged in a comprehensive enterprise to distribute fentanyl-laced pills throughout the country by offering his products for sale on dark web
marketplaces… He maintained a veritable armory while engaged in his drug distribution business. Inside the motorhomes Wilson shared with his co-defendant, investigators found an operable machinegun; silencers designed to muffle the report of a discharged firearm; a shotgun stored in a case designed to look like it carried a musical instrument; destructive devices commonly called pipe bombs; and materials to make more destructive devices.”
“This is another example of great work by our patrol deputies, as they went above and beyond on a call that resulted in taking two dangerous criminals off the street,” said King County Sheriff Patti Cole-Tindall. “Additionally, I am so proud of the work done by our Gun Violence Reduction Unit. That team was able to ensure the proper steps were taken in this investigation, and in partnership with several federal agencies, were able to hold these people accountable and ensure justice was served.”
The case was investigated by Homeland Security Investigation (HSI), the King County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the United States Postal Inspection Service (USPIS), the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA), with assistance from the Washington State Patrol.
The case is being prosecuted by Assistant United States Attorneys Casey Conzatti and Brian Wynne.
Brazilian Extradited from Switzerland to the United States to Face Indictment Charging Involvement in $290M+ Cryptocurrency Fraud SchemeRead the Press Release
SEATTLE – A citizen of Brazil appeared in U.S. District Court in Seattle today, after being extradited from Switzerland to face a 13-count indictment for wire fraud and conspiracy regarding his bitcoin investment scheme, announced Acting U.S. Attorney Teal Luthy Miller. Douver T. Braga, 48, lived in Florida between approximately 2016 and 2021 during the bulk of the alleged fraud. The indictment alleges Braga operated a bitcoin investment scheme that was really a Ponzi scheme, as well as an illegal multilevel marketing scheme.
The grand jury returned the indictment in October 2022. It was unsealed last week following Braga’s arrest in Switzerland. Today Braga pleaded “Not Guilty,” and trial was scheduled in front of U.S. District Judge Tana Lin on April 28, 2025.
“Mr. Braga allegedly ran a fraud scheme that harkens back more than a century, but he updated his ‘Ponzi’ scheme with the hot new thing: bitcoin,” said U.S. Attorney Teal Luthy Miller. “The victim investors have waited years to see justice. I commend our federal partners at the FBI and IRS Criminal Investigation for their diligent work on this case.”
According to the indictment, Braga conspired with others to create a cryptocurrency trading platform called Trade Coin Club (TCC) with an office in Belize. As early as 2016, Braga worked with others to promote TCC, claiming that investors would make money because the TCC had a sophisticated software program that allowed investors to profit on the fluctuating price of bitcoin. Braga also promised that investors could make money by referring other investors to the platform. In reality, there was no investment platform and no sophisticated software. Those who invested early were paid off by later investors as in a Ponzi scheme.
Braga traveled the world promoting TCC: In Thailand in March 2017, in Nigeria and Macau in May 2017. TCC was promoted on social media and in videos. At various events Braga claimed TCC had as many as 126,000 members in 231 different countries.
Through his false promises of sophisticated investments and high returns, Braga induced tens of thousands of people to entrust over 82,000 bitcoin, valued at over $290 million at the time of investment, and to deposit it with TCC. Braga continued the false representations, creating an “online portal” where investors could track the supposed activity of their investment accounts. The site was a fiction as there was no trading activity.
Braga withdrew and misappropriated investor funds. Between December 2016 and July 2019, at least $50 million in bitcoin was transferred to accounts Braga controlled.
However, by late 2017 and early 2018, investors had trouble accessing their funds. In January 2018, TCC announced to investors that it was ceasing to operate in the United States and was cancelling their accounts. Many investors were located in the Western District of Washington.
Braga allegedly profited handsomely, while failing to report the earnings to the IRS. In 2017, he received bitcoin worth $30.5 million, but only reported income of $152, 298. In 2018, he reported $73,473 in income but got $13.1 million in bitcoin and in 2019, reported $72,870 in income while he received $10 million in bitcoin.
“The type of scheme Mr. Braga is charged with operating is not new, he just used the allure of a flashy new technology to obscure the well-worn scam.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “While the victims in this case waited and wondered about the fate of their investments, he siphoned off millions of dollars for his personal use. This case demonstrates the determination of the FBI and our partners in IRS Criminal Investigation to hold fraudsters accountable, no matter where in the world they may be.”
“The charges against Mr. Braga and his co-conspirators reflect a well-designed scheme to solicit investment in a fake cryptocurrency trading platform from victims around the globe,” said Special Agent in Charge Tyler Hatcher of IRS-Criminal Investigation (CI), Los Angeles Field Office. “Furthermore, Mr. Braga is alleged to have knowingly ignored and circumvented laws regulating multi-level marketing programs in the U.S.- laws that exist to protect investors from becoming victims in pyramid schemes. Despite the complexity of this scheme, IRS Criminal Investigation and our partners at the FBI successfully uncovered the evidence necessary to bring forth these charges.”
Braga is charged with 12 counts of wire fraud reflecting 12 wires investors sent to TCC for deposits in their “accounts.” Braga is charged with one count of conspiracy to commit wire fraud.
The charges are punishable by up to 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the IRS-CI and the FBI.
The case is being prosecuted by Assistant United States Attorneys Mike Dion and Phillip Kopczynski. The U.S. Department of Justice’s Office of International Affairs provided valuable assistance with securing the extradition.
braga_indictment.pdfDrug distributor caught with massive amounts of fentanyl and meth as well as firearms, body armor, and silencer sentenced to 13 years in prisonRead the Press Release
Tacoma – A 32-year-old Renton, Washington resident was sentenced today in U.S. District Court in Tacoma to 13 years in prison for his role in a drug trafficking ring connected to Aryan prison gangs, announced Acting U.S. Attorney Teal Luthy Miller. Shawn Ellis was arrested in March 2023, when federal agents moved in following a two-year investigation of drug trafficking activities. A search of Ellis’ car turned up buckets filled with fentanyl pills and kilos of methamphetamine, as well as four firearms – including a machine gun. At today’s sentencing hearing, Chief U.S. District Judge David G. Estudillo said, “We’re talking about a significant amount of controlled substances,” and added, “What is really significant and obviously scary for the community is the firearms.”
According to records filed in the case, Ellis was a prolific drug redistributor. He obtained drugs from one branch of the drug conspiracy and sold the drugs to other customers for profit. Ellis would order as much as 30 pounds of methamphetamine at a time. When Ellis was arrested, agents seized the buckets of fentanyl and methamphetamine as well as cocaine and fake Xanax pills. Ellis carried four guns in the car to protect his drugs – a loaded pistol between the driver’s seat and center console, an SK-15 rifle hidden in a violin case, a shotgun and a second loaded pistol. He also had body armor in the vehicle.
In a storage shed Ellis controlled were five additional firearms, a large amount of ammunition, additional body armor and a homemade silencer. Ellis also stored cash, jewelry, precious metals, coins and other collectibles in the shed – proceeds of his drug trafficking.
Ellis has two prior felony drug convictions and is prohibited from possessing firearms.
In asking for a 15-year sentence prosecutors wrote to the court, “But the danger Ellis posed to the community does not stop (with his possession of a silencer). He carried guns in his car along with his drugs, including a pistol which he kept close at hand near the driver’s seat. Ellis also kept in the car a second pistol, a shotgun, and an AR-15 type rifle that he hid in a violin case. This rifle proved to be a machinegun that fires fully automatically. As a felon, Ellis could not legally possess any firearms, much less a silencer or a machinegun.”
Law enforcement made two dozen arrests on federal charges on March 22, 2023. The coordinated takedown involved ten swat teams and more than 350 law enforcement officers. On that day law enforcement seized 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona. Earlier in the investigation law enforcement seized 830,000 fentanyl pills, 5.5 pounds of fentanyl powder, 223 pounds of methamphetamine, 3.5 pounds of heroin, 5 pounds of cocaine, $388,000 in cash, and 48 firearms.
The top-level leader of the drug trafficking ring, Jesse Bailey, is scheduled to be sentenced on June 13, 2025, and his wife and co-conspirator Candace Bailey, is scheduled for sentencing on May 16, 2025.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorneys Zach Dillon, Max Shiner, and Jehiel Baer.
Federal felon pleads guilty to committing drug and gun crimes while still on supervised releaseRead the Press Release
Seattle – A federal felon, still on supervision for a 2012 conviction, pleaded guilty today in U.S. District Court in Seattle to four federal felonies concerning drug and gun crimes, announced Acting U.S. Attorney Teal Luthy Miller. Barry Tremain, 58, of Gold Bar, Washington, was found with guns and drugs on two different occasions in May 2024. U.S. District Judge Jamal N. Whitehead scheduled Tremain’s sentencing for May 22, 2025.
According to records filed in the case, on May 7, 2024, Snohomish County Sheriff’s Deputies attempted to stop a vehicle Tremain was driving for a traffic violation. Tremain attempted to flee but was apprehended. Officers found Tremain with methamphetamine, scales, and $16,000 cash. In the car deputies found a 9mm handgun and additional methamphetamine, cocaine, fentanyl, and three cell phones. Tremain was taken into local custody and released a short time later.
Tremain was on supervision for a 2012 conviction for drug and firearms crimes, so federal probation visited Tremain’s Gold Bar residence on May 15, 2024. Tremain was found to have a .44 caliber revolver and additional methamphetamine. He had a drug ledger and more than $10,000 in cash.
Tremain pleaded guilty today to two counts of possession of controlled substances with intent to distribute, and two counts of unlawful possession of a firearm. Tremain is prohibited from possessing firearms due to 2012 convictions for three counts of distribution of heroin, being a felon in possession of a firearm, possession of a firearm in furtherance of drug trafficking, possession of heroin with intent to distribute and possession of methamphetamine with intent to distribute.
The drug charges are punishable by up to 40 years in prison and the gun charges are punishable by up to 15 years in prison. The actual sentence will be determined by Judge Whitehead after considering the sentencing guidelines and other factors.
The case was investigated by the Snohomish County Sheriff’s Office and U.S. Probation.
The case was prosecuted by Assistant United States Attorney Stephen Hobbs.
California man who molested teen on flight sentenced to two years in prisonRead the Press Release
Seattle – A 42-year-old Los Angeles County, California man was sentenced today in U.S. District Court in Seattle to two years in prison for abusive sexual contact aboard an aircraft enroute to Seattle from Burbank, California, announced Acting U.S. Attorney Teal Luthy Miller. Justin Baker was arrested March 14, 2024, when the Alaska Airlines plane arrived at SEA. Baker has been in custody since the jury returned its guilty verdict on October 23, 2024. At sentencing U.S. District Judge John C. Coughenour imposed the maximum sentence allowed by law saying, “I was particularly struck by the candor of the victim and her bravery in testifying.”
“This was a calculated and predatory sexual assault on an 18-year-old girl,” said Acting U.S. Attorney Miller. “Mr. Baker underestimated the victim’s strength in testifying, as well as the commitment we have in the Western District of Washington to hold these aircraft offenders accountable.”
According to records filed in the case and testimony at trial, Baker was in the middle seat, with the victim seated to his right next to the wall of the plane. Baker learned the victim was preparing to go to college and was just 18 years old. According to testimony at trial, Baker showed the teen sexually explicit text messages he had on his phone and then draped his jacket over his lap as well as her lower body. The victim attempted to move away from Baker and closer to the wall. He reached under the jacket and groped her leg. Despite the victim saying “No” and moving away when he first tried to touch her, he continued to grope her genitals over her clothing. Then he reached into her top and groped her breast
Ultimately, the victim got out of her seat to contact the flight crew. As she tried to pass by Baker, he groped her buttocks and pulled her back down into her seat. Ultimately the victim was able to leave and report the assault.
Speaking in court today, Assistant United States Attorney Grace Zoller said Baker, “treated the victim like an object… He dehumanized her.”
The victim shared how the assault has “shattered the trajectory of her life.” She told the court about anxiety around airports and flying, and how her family and loved ones “have watched me change in ways I have never imagined.” Her goal she said is to “hold Baker accountable.”
Judge Coughenour said he was imposing the maximum two-year sentence because of the “seriousness of the crime, the harm to the victim and the danger (Baker) poses to the community.”
When released from prison, Baker will be on five years of federal supervision and will be required to register as a sex offender.
The case was investigated by the FBI and the Port of Seattle Police. The case was prosecuted by Assistant United States Attorneys Kristine Foerster and Grace Zoller.
Indiana man sentenced to prison for conspiracy to violate the Clean Air ActRead the Press Release
Tacoma – A 44-year-old Columbia, Indiana man was sentenced today in U.S. District Court in Tacoma to four months in prison and a $25,000 fine for conspiracy to violate the Clean Air Act for his scheme to interfere with pollution control software on diesel trucks, announced Acting U.S. Attorney Teal Luthy Miller. Jonathan Achtemeier pleaded guilty in November 2024, admitting that between 2019 and 2022, he tampered with the monitoring devices on hundreds of vehicles nationwide so those trucks would not detect that their owners removed pollution control hardware systems. Achtemeier advertised his services on the internet and was able to tamper with the monitoring devices in diesel trucks remotely. Between 2019 and 2021 Achtemeier’s company grossed $4.3 million. At sentencing U.S. District Judge Tiffany M. Cartwright said, “This offense is characterized as a lack of respect for the law and a flaunting of the law…. The harm that comes from this type of offense is serious.”
“From the comfort of his home, this defendant caused environmental damage across the country, tampering with pollution controls on diesel trucks so that they spewed 30 to 1200 times the pollutants of a legally configured truck,” said Acting U. S. Attorney Teal Luthy Miller. “His motivation was money – but the rest of us will pay the price with dirty air and contamination in our soil and waterways.”
According to records filed in the case, Achtemeier conspired with mechanics in garages and operators of truck fleets to manipulate the monitoring software installed on diesel trucks. Coconspirators who wanted to disable their trucks’ pollution control hardware system—a process commonly known as “deleting”—sought Achtemeier’s help to trick the truck’s software into believing the emissions control systems were still functional, a process known as “tuning.” Monitoring devices on a deleted truck will detect that the pollution control hardware is not functioning and will prevent the truck from running. Achtemeier disabled the monitoring software on his client’s trucks by connecting to laptops he had provided to various coconspirators. Some of the coconspirators would pass the laptop on to others seeking to have the anti-pollution parameters disabled or modified on their trucks. Once the laptop was hooked up to the truck’s onboard computer, Achtemeier could access it from his computer and tune the computer designed to monitor the pollution control equipment. Achtemeier could “tune” trucks remotely, which enabled him to maximize his environmental impact and personal profit.
Removing the pollution control equipment and disabling the monitoring device results in trucks polluting at 30 to 1,200 times the level of a truck with pollution control systems. Tampering with a monitoring device is a violation of the Clean Air Act.
Achtemeier charged as much at $4,500 per truck for work that often took him two hours or less. Achtemeier advertised his services on social media nationwide using images of semi-trucks spewing black exhaust. His company operated under the name Voided Warranty Tuning (VWT) or Optimized Ag.
In their request for an 18-month prison sentence and $100,000 fine, prosecutors wrote to the court, “Achtemeier spent years building a business dedicated to illegal tuning. He advertised his services on diesel-focused Facebook groups like West Coast Trucking where he had access to thousands of truck owners and enthusiasts. He encouraged customers to pass along his name and even provided them computers so they could help friends and neighbors delete their vehicles and use Achtemeier for tuning. This enabled him to quickly grow his business into a multi-million-dollar enterprise.”
The coconspirators in this case have service garages or truck fleets in various areas of Washington State. The trucks that were altered range from pick-ups such as a Dodge R3500 to Kenworth and Freightliner semi-trucks.
The case was investigated by the Environmental Protection Agency Criminal Investigation Division (EPA-CID).
The case is being prosecuted by Assistant United States Attorneys Lauren Watts Staniar and Dane Westermeyer, with Special Assistant United States Attorney Karla Perrin. Ms. Perrin is an attorney with the EPA.
Two Estonian Nationals plead guilty in $577M cryptocurrency fraud schemeRead the Press Release
Seattle –Two Estonian nationals pleaded guilty yesterday for their operation of a massive, multi-faceted cryptocurrency Ponzi scheme that victimized hundreds of thousands of people from across the world, including in the United States. As part of the defendants’ guilty pleas, they agreed to forfeit assets valued over $400 million obtained during the conspiracy.
According to court documents, Sergei Potapenko and Ivan Turõgin, both 40, sold contracts to customers entitling them to a share of cryptocurrency mined by the defendants’ purported cryptocurrency mining service, HashFlare. Cryptocurrency mining is the process of using computers to generate cryptocurrency, such as Bitcoin, for profit.
Between 2015 and 2019, Hashflare’s sales totaled more than $577 million, but HashFlare did not possess the requisite computing capacity to perform the vast majority of the mining the defendants told HashFlare customers it performed. HashFlare’s web-based dashboard, which purported to show customers their mining profits, instead reflected falsified data. Potapenko and Turõgin used the proceeds of the fraud conspiracy to purchase real estate and luxury vehicles and maintained investment and cryptocurrency accounts. Potapenko and Turõgin have agreed to forfeit assets worth, as of the date of the plea, more than $400 million. The forfeited assets will be available for a remission process to compensate victims of the crime. Details about the remission process will be announced at a later date.
Potapenko and Turõgin each pleaded guilty to one count of conspiracy to commit wire fraud. They are scheduled to be sentenced on May 8 and each face a maximum penalty of 20 years in prison. A federal district court judge will determine each defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Justice Department thanks the Cybercrime Bureau of the Estonian Police and Border Guard for its support with this investigation. The Estonian Prosecutor General and Ministry of Justice and Digital Affairs provided substantial assistance with the extradition. The Justice Department’s Office of International Affairs provided extensive assistance to the investigation and the extradition of the defendants.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Teal Luthy Miller for the Western District of Washington, Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division, and Special Agent in Charge W. Mike Herrington of the FBI Seattle Field Office made the announcement.
The FBI Seattle Field Office investigated the case.
Assistant U.S. Attorneys Andrew Friedman and Sok Jiang for the Western District of Washington and Trial Attorneys Adrienne E. Rosen and David Ginensky of the Criminal Division’s Money Laundering and Asset Recovery Section and are prosecuting the case. Assistant U.S. Attorney Jehiel Baer for the Western District of Washington is handling asset forfeiture aspects of the case.
Individuals who believe they may have been a victim in this case should visit www.fbi.gov/hashflare.
Two Estonian Nationals Plead Guilty in $577M Cryptocurrency Fraud SchemeRead the Press Release
Scheme Victimized Hundreds of Thousands of People in United States and Abroad
Two Estonian nationals pleaded guilty yesterday for their operation of a massive, multi-faceted cryptocurrency Ponzi scheme that victimized hundreds of thousands of people from across the world, including in the United States. As part of the defendants’ guilty pleas, they agreed to forfeit assets valued over $400 million obtained during the conspiracy.
According to court documents, Sergei Potapenko and Ivan Turõgin, both 40, sold contracts to customers entitling them to a share of cryptocurrency mined by the defendants’ purported cryptocurrency mining service, HashFlare. Cryptocurrency mining is the process of using computers to generate cryptocurrency, such as Bitcoin, for profit.
Between 2015 and 2019, Hashflare’s sales totaled more than $577 million, but HashFlare did not possess the requisite computing capacity to perform the vast majority of the mining the defendants told HashFlare customers it performed. HashFlare’s web-based dashboard, which purported to show customers their mining profits, instead reflected falsified data. Potapenko and Turõgin used the proceeds of the fraud conspiracy to purchase real estate and luxury vehicles and maintained investment and cryptocurrency accounts. Potapenko and Turõgin have agreed to forfeit assets worth, as of the date of the plea, more than $400 million. The forfeited assets will be available for a remission process to compensate victims of the crime. Details about the remission process will be announced at a later date.
Potapenko and Turõgin each pleaded guilty to one count of conspiracy to commit wire fraud. They are scheduled to be sentenced on May 8 and each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Justice Department thanks the Cybercrime Bureau of the Estonian Police and Border Guard for its support with this investigation. The Estonian Prosecutor General and Ministry of Justice and Digital Affairs provided substantial assistance with the extradition. The Justice Department’s Office of International Affairs provided extensive assistance to the investigation and the extradition of the defendants.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Teal Luthy Miller for the Western District of Washington, Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division, and Special Agent in Charge W. Mike Herrington of the FBI Seattle Field Office made the announcement.
The FBI Seattle Field Office investigated the case.
Trial Attorneys Adrienne E. Rosen and David Ginensky of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Andrew Friedman and Sok Jiang for the Western District of Washington are prosecuting the case. Assistant U.S. Attorney Jehiel Baer for the Western District of Washington is handling asset forfeiture aspects of the case.
Individuals who believe they may have been a victim in this case should visit www.fbi.gov/hashflare.
U.S. Attorney’s Office Collects more than $1.5 Billion in Criminal and Civil Actions in Fiscal Year 2024Read the Press Release
Seattle -- U.S. Attorney Tessa M. Gorman announced today that the Western District of Washington collected $1,518145,143 in criminal and civil actions in Fiscal Year 2024. Of this amount, $1,509,282,780 was collected in criminal actions and $8,862,362 was collected in civil actions.
The Western District of Washington worked with the Criminal Division’s Money Laundering and Asset Recovery Section and the National Security Division to obtain the $1.5 billion payment from cryptocurrency exchange Binance.
“Our office worked closely with Department of Justice components on the criminal case against Binance, in which Binance pleaded guilty to failing to register as a money transmitting business, willfully violating the Bank Secrecy Act and willfully causing violations of U.S. sanctions,” said U.S. Attorney Gorman. “That $1.5 billion coming through our office, is part of the $4.3 billion criminal fine and forfeiture. It is a record in the Western District of Washington.”
Independently, the U.S. Attorney’s Office for the Western District of Washington collected $3.8 million in criminal restitution payments, and an additional $8.8 million civil collections. Many of the criminal collections were for cases in which people intentionally failed to pay their income taxes. The owner of a string of coffee stands paid $96,000 in restitution to the Internal Revenue Service for intentionally underreporting his income from the business. A Snohomish County restaurant owner paid over $511,000 for tax fraud and a Tukwila restaurant owner paid $376,000 so that his $926,902 tax fraud debt was paid in full.
Of the civil collections, the district obtained $217,000 following the sale of Dr. Frank Li’s Spokane medical office building. The payment was applied to Dr. Li’s $2.85 million civil settlement for health care fraud.
Additionally, we collected $1.23 million from Yakima Products, Inc. These payments (which were in addition to payments made in 2023) satisfied Yakima’s $3 million settlement with the United States, for failing to pay duties on aluminum components imported from the People’s Republic of China. Learn more about the case here: https://www.justice.gov/usao-wdwa/pr/automobile-accessory-company-yakima-products-inc-settles-allegations-failed-pay-duties
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Western District of Washington, working with partner agencies and divisions, collected $2,864,850 in asset forfeiture actions in FY 2024. 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. A large portion of the forfeitures relate to the indictment of two men operating a business that posted stolen items for sale via online websites. You can learn more about the case here: https://www.justice.gov/usao-wdwa/pr/two-indicted-buying-stolen-goods-and-selling-them-online-amazon-or-ebay-more-3-million.
Owner of Vancouver, Washington tax preparation business that catered to immigrants sentenced to nine months in prison for tax fraudRead the Press Release
Tacoma –The owner of a Vancouver, Washington, business that sought to assist immigrants with a variety of services was sentenced late yesterday in U.S. District Court in Tacoma to 9 months in prison and 4 months of electronic home confinement for tax fraud charges, announced U.S. Attorney Tessa M. Gorman. Saul Valdez was an unlicensed tax preparer who led his immigrant customers to believe he was filling out their tax forms correctly. Instead, from 2016 through 2018, Valdez inserted a variety of false deductions and expenses on tax returns, lowering the customers’ tax obligations. At sentencing, U.S. District Judge Benjamin H. Settle said, ““This is a serious offense…. deterrence drives this case. This sentence should be one that deters you and sends a message to you and others like you that there will be a real penalty, not probation, for this conduct.”
“This defendant built his business by obtaining inflated tax refunds for clients who had little understanding of the U.S. tax system,” said U.S. Attorney Gorman. “Ultimately some of these clients were hit with back tax payments, fees, and penalties because this defendant intentionally filed false tax returns on their behalf.”
“Mr. Valdez abused credits designed to help low-income taxpayers, and his clients incurred over $23,000 in penalties along the way,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “We encourage those seeking a tax preparer this season to be vigilant and report dishonest business practices.”
According to records in the case, Valdez operated Conexion Latina and used programs such as TaxAct and TurboTax to prepare clients’ taxes. For tax year 2017, Valdez admits claiming false and fraudulent expenses, donations, and credits on 36 different tax returns. The tax loss on those 36 returns is $54,045. That is the amount of restitution Valdez has agreed to pay.
Using statistical sampling of 50 of some 2000 returns prepared by Valdez from 2016 through 2018, Valdez admits that the total tax loss for his fraud is $1,293,921.
The case was investigated by Internal Revenue Service Criminal Investigations (IRS-CI).
The case is being prosecuted by Assistant United States Attorney Kristine Foerster.
Mexican national who acted as transporter for smuggling conspiracy sentenced to 15 months in prisonRead the Press Release
Seattle – A transporter for a northern border human smuggling conspiracy was sentenced late yesterday in U.S. District Court in Seattle to 15 months in prison, announced U.S. Attorney Tessa M. Gorman. Jesus Ortiz-Plata, 46, of Independence, Oregon, weas arrested May 23, 2024, in Everett, Washington, with three non-citizens who had been smuggled into the United States from Canada. At the sentencing hearing, U.S. District Judge James L. Robart said it was “callous” to send people across the border in freight cars. “He was a commercial smuggler. He wasn’t doing this for altruistic purposes, he did it for cold hard cash,” Judge Robart said.
“This defendant was a cog in a conspiracy that transported people into the U.S. from across the northern border in an extremely dangerous smuggling scheme loading people into freight cars on trains traveling from Canada into the U.S.,” said U.S. Attorney Gorman. “These transnational smuggling groups charge thousands of dollars and risk the lives of those trying to reach the U.S. We will continue to investigate these smuggling groups to hold members accountable.”
Since late 2022, as Border Patrol and investigators encountered non-citizens who had illegally attempted to cross the border. As part of the investigation, agents frequently encountered a phone number that was later linked to Ortiz-Plata. After substantial investigation, Ortiz-Plata was identified, and law enforcement obtained court permission to track his location. After months of surveillance and monitoring, on May 23, 2024, Ortiz-Plata traveled from his home in Oregon and was surveilled by agents from Seattle to an apartment in Everett. Ortiz-Plata left the apartment with three men – all non-citizens who entered his vehicle. All four were taken into custody. Two had crossed the border in a freight train car and one claimed he had walked across the border and been picked up on the U.S. side.
On November 20, 2024, Ortiz-Plata pleaded guilty to conspiracy to transport certain aliens for profit.
In asking for the 15-month prison sentence, prosecutors noted that the defendant did not run the smuggling ring, but still played an important role in its success. “Ortiz-Plata admits that he knew the noncitizens he picked up were using freight trains to get into the United States; but nevertheless, he proceeded to participate. Even if he, himself, was not the one directing the noncitizens to jump on, Ortiz-Plata continued to facilitate, and thereby promote, this extremely dangerous smuggling route, multiple times, over the course of at least a year.”
Ortiz-Plata will likely be deported following his prison term.
The case was investigated by Homeland Security Investigations, the Border Security Enforcement Team, U.S. Border Patrol, and Border Patrol Air and Marine Group.
The case is being prosecuted by Assistant United States Attorneys Celia Lee and Special Assistant U.S. Attorney Katherine Collins.
Key member of drug ring associated with Aryan prison gang sentenced to 7+ years in prisonRead the Press Release
Seattle – A 65-year-old Shelton, Washington resident was sentenced today in U.S. District Court in Tacoma to 90 months in prison for his role in a drug trafficking ring connected to Aryan prison gangs, announced U.S. Attorney Tessa M. Gorman. Michael Warren was arrested in March 2023, when federal agents moved in following a two-year investigation of drug trafficking activities. A search of Warren’s home in December 2022, turned up two pill presses, more than 640,000 fentanyl pills and a kilo of fentanyl powder to make thousands more. Warren also possessed 23 firearms at the stash house.
At today’s sentencing hearing, Chief U.S. District Judge David G. Estudillo said, “the crime is unquestionably serious based on the amount of narcotics found at his residence and the presence of firearms.”
“This defendant demonstrates that drug trafficking is not just a young person’s game,” said U.S. Attorney Tessa M. Gorman. “Mr. Warren was a key drug transporter, manufacturer and distributor causing untold harm in our community.”
According to records filed in the case, Warren served as a trusted co-conspirator to the leader of one of the drug distribution cells led by Bryson Gill. In addition to manufacturing pills and storing them at his Shelton home, Warren drove to Arizona on multiple occasions to pick up methamphetamine and fentanyl from the group’s drug supplier.
Bryson Gill entered a guilty plea today to conspiracy to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering, and is scheduled for sentencing on May 9, 2025.
Law enforcement made two dozen arrests on federal charges on March 22, 2023. The coordinated takedown involved ten swat teams and more than 350 law enforcement officers. On that day law enforcement seized 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona. Earlier in the investigation law enforcement seized 830,000 fentanyl pills, 5.5 pounds of fentanyl powder, 223 pounds of methamphetamine, 3.5 pounds of heroin, 5 pounds of cocaine, $388,000 in cash, and 48 firearms.
The top-level leader of the drug trafficking ring, Jesse Bailey, is scheduled to be sentenced on May 16, 2025, and his wife and co-conspirator Candace Bailey, is scheduled for sentencing on June 13, 2025.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorneys Zach Dillon, Max Shiner, and Jehiel Baer.
Second defendant in organized refunding fraud ring sentenced to 30 months in prisonRead the Press Release
Seattle – A 29- year-old Wilkes-Barre, Pennsylvania man was sentenced today to 30 months in prison for wire fraud and money laundering crimes related to his operation of a fraudulent online shopping refund scheme, announced U.S. Attorney Tessa M. Gorman. Leonardo Vidal is the second defendant sentenced in an online refunding scheme that stole millions of dollars from retailers. U.S. District Judge Robert S. Lasnik ordered Vidal to be on three years of supervised release following prison.
“Those running these refunding schemes induced others to essentially steal and cheat while claiming there would be no consequences,” said U.S. Attorney Gorman. “These prison sentences are appropriate for the damage done to retailers and to our community in promoting these illegal schemes.”
According to records in the case, Vidal operated his own fraudulent refunding fraud scheme from June 2021 until April 2023 called Ressu Refunds. The scheme amassed 2,800 subscribers and obtained $6 million in fraudulent refunds for followers. Beginning in June 2022, Vidal conspired with 25-year-old Dearborn, Michigan, man Sajed Al-Maarej who operated a different refund site called “Simple Refunds.” As with the Ressu refund site, Simple Refunds operated through the messaging service Telegram.
Sajed Al-Maarej was sentenced to three years in prison in December 2024.
The Telegram channels represented to prospective purchasers that they could buy high value goods and keep them, while falsely claiming to the merchant company that a refund was due. Purchasers provided Al-Maarej and Vidal with information about their purchase (order number, name, address, value). For a cut of the refund, Al-Maarej, Vidal and their coconspirators would seek a refund by making false representations to the retailers about the status of the order. For example, Simple Refunds or Ressu Refunds would claim the item had not been delivered; was irretrievably damaged; or would have the purchaser mail a box of garbage or junk back to the company – once the package was scanned at the shipping point the refund was issued before the box arrived back and the fraud was discovered.
The men recruited “insiders” at UPS and the US Postal Service who would input false scans into the order tracking history to make it appear items had been lost in shipping, stolen from the mail, or returned to the company. The end goal was for the purchaser to keep the product and get their money back. The purchaser then paid Al-Maarej or Vidal 10-15% of the purchase price as a fee, enabling Al-Maarej and Vidal to enrich themselves.
In December 2022, Vidal acquired Simple Refunds from Al-Maarej. Vidal sold Ressu Refunds and Simple Refunds to a different Telegram user in April 2023. After selling the refunding scheme, Vidal began another illegal enterprise: purchasing the illegally refunded items and selling them. When confronted by law enforcement Vidal took investigators to the locations where he was storing the stolen goods in four shipping containers before selling them online. In one storage container, they found approximately 245 Dewalt Drills, approximately 92 Coway Airmega Air Purifiers, and approximately 78 M18 Fuel High Torque Wrenches, all commonly refunded items.
During an 8-month period that Vidal operated Ressu Refunds it facilitated more than 3,000 fraudulent refunds worth at least $5.3 million.
The total value of the fraudulent refunds through Simple Refunds and Ressu Refunds while Vidal was running them is $6,067,168. Vidal agreed to pay restitution of that amount.
Speaking at sentencing Vidal said, “I want to thank the FBI, because I was going down a very dark path…. I was not a bad person, but I knew it was wrong.”
The case is being investigated by the FBI and the United States Postal Inspection Service (USPIS). The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.
Deering, Alaska, man indicted for abusive sexual contact on an aircraft from Anchorage to SeattleRead the Press Release
Seattle – A 27-year-old Deering, Alaska man was arraigned today following his indictment for abusive sexual contact, announced U.S. Attorney Tessa M. Gorman. Trayton C. Ballot was arrested on January 15, 2025, when the Alaska Airlines flight he was on arrived at Seattle-Tacoma International airport. Ballot pleaded not guilty this morning and trial was scheduled in front of U.S. District Judge John H. Chun on April 7, 2025.
According to records filed in the case, the 17-year-old victim was flying with her mother and a friend from Anchorage to Seattle. Ballot was seated in the middle seat in a row near the back of the plane. The victim was in the window seat. Ballot appeared to be asleep, but then allegedly moved his hand onto the victim’s inner thigh and began rubbing her thigh. The victim removed Ballot’s hand. Two more times Ballot moved his hand onto the 17-year-old’s inner thigh, and she removed his hand. After the third time, the victim lowered her tray table and wedged a pillow under it to protect her lap. Despite those barriers, Ballot moved his hand under the armrest and attempted to place it over the victim’s thigh. The victim pressed down on the pillow to stop the assault and Ballot took his hand away.
The victim typed into her phone that the man seated next to her had touched her and showed the message to her mother who was seated in the row behind her. At her mother’s instruction, the victim notified the flight attendants who moved her to a different seat.
Ballot was arrested when the plane arrived in Seattle. He was held at the Federal Detention Center at SeaTac until the next day when he was released on many conditions including that he notify any airline of these charges before he travels.
Ballot waived his presence at arraignment and his attorney entered a plea of “Not Guilty.”
Abusive sexual contact is punishable by up to two years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Carolyn Forstein.
Michigan man sentenced to 20 years in prison for traveling to sexually abuse a minor who he removed from home in Washington and took back to MichiganRead the Press Release
Seattle – A 31-year-old South Haven, Michigan, man was sentenced today in U.S. District Court in Seattle to 20-years in prison for traveling with intent to engage in a sexual act with a minor and enticement of a minor, announced U.S. Attorney Tessa M. Gorman. Keith Daniel Freerksen was arrested in South Haven Township on January 31, 2024, following an investigation that stretched from western Washington to Michigan.
At the sentencing hearing U.S. District Judge Tana Lin noted the trauma inflicted on the victim and the victim’s family. For 30 days they searched for the victim, even calling every morgue in Washington State with fear their child was dead. Judge Lin said the victim, “Will continue to suffer trauma and pain.”
“What happened in this case is every parent’s nightmare – a predator comes into the home via social media and computer screens and manipulates your child to run away,” said U.S. Attorney Tessa M. Gorman. “This defendant secreted a child away, leaving a distraught family searching desperately for their loved one. When the victim should have been involved in normal teenage activities, the teen was instead manipulated and ensnared by the defendant.”
According to records filed in the case, the 14-year-old went missing on January 5, 2024. A local police detective requested help from the FBI. An agent who specializes in Violent Crimes Against Children and Human Trafficking investigations occurring in Snohomish, Skagit, Whatcom, Island, and San Juan counties quickly assisted.
By analyzing information on Uber rides that had been purchased for the victim by an unknown person, law enforcement was able to identify Freerksen, a registered sex offender in Michigan, as a potential suspect. Using information on Freerksen’s registered vehicle, they were able to trace his movement across the northern tier of states using license plate readers. The readers also captured Freerksen’s return trip through Idaho and Illinois in the days after the teen went missing.
When the police in South Haven Township served a search warrant at the request of the FBI, they recovered the victim and arrested Freerksen. He was ultimately transported to Western Washington and has been detained at the Federal Detention Center at SeaTac.
In asking for the 20-year sentence Assistant United States Attorney Cecelia Gregson wrote to the court, “It is very alarming that neither of Freerksen’s family members intervened when he returned home with the then fourteen-year-old victim in tow. Freerksen was undeterred by his previous sex offense conviction, corresponding imprisonment, and registration obligation. The rapid recidivism between Freerksen’s release from prison following child pornography offenses and the dedicated months he spent manipulating and enticing (the victim) is evidence he is either unwilling or unable to refrain from sexually abusing minors.”
The victim’s parents thanked law enforcement for finding and rescuing their child. The victim’s mother said, “I never imagined a predator would travel across the country to steal (my child).”
The twenty-year sentence will run concurrent with a fifteen-to-seventy-year indeterminate state sentence in Michigan. Freerksen will serve his time in the federal prison system. Judge Lin ordered twenty years of supervised release to follow prison. Freerksen will once again have to register as a sex offender.
The case was investigated by the Mount Vernon Police Department, FBI Seattle, and the Van Buren County, Michigan Sheriff’s Office and Prosecuting Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
Three Mexican Nationals arrested with 14 kilograms of crystal methamphetamineRead the Press Release
Seattle – Three citizens of Mexico were arrested late last week in Bellevue, Washington, in connection with a drug deal involving more than 25 pounds of crystal methamphetamine, announced U.S. Attorney Tessa M. Gorman. All three men are being held at the Federal Detention Center at SeaTac, Washington, on a criminal complaint.
According to records filed in the case, on January 29, 2025, law enforcement began communicating with a transnational drug organization about purchasing crystal methamphetamine. The deal was set for the next day: 30 pounds of crystal methamphetamine for $62,000 to be exchanged at a restaurant parking lot in Bellevue.
After seeing the drugs, law enforcement swooped in to arrest the drug traffickers. The traffickers attempted to flee but were taken into custody. The men are charged with conspiracy to distribute controlled substances and possession of controlled substances with attempt to distribute.
The three men are identified as:
Eber Omar Barrones-Madrid, age 24
Juan Jose Prado-Estrada, age 25
Jose Manuel Ochoa-Sanchez, age 27
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations (HSI).
The case is being prosecuted by Assistant United States Attorney Vince Lombardi.
Former soldier sentenced to 7+years in prison for sexual abuse of a child on Joint Base Lewis-McChordRead the Press Release
Tacoma – A former U.S. Army soldier was sentenced today in U.S. District Court in Tacoma to 87 months in prison for abusive sexual contact with a child, announced U.S. Attorney Tessa M. Gorman. Cameron James Taylor, 49, of Seattle, pleaded guilty in May 2024 and has been in custody since his guilty plea. At today’s sentencing hearing Chief U.S. District Judge David G. Estudillo noted the conduct in this case may cause the victim lifetime torment. The victim “is a strong individual” and “shows courage to move on” Chief Judge Estudillo said.
“This horrific conduct cannot go unpunished. Our work to protect children on our military bases is a priority in the Western District of Washington,” said U.S. Attorney Gorman. “Mr. Taylor sexually assaulted a child who was just 5 years old. He then pressured the child to hide the conduct when questioned by other adults. I commend the strength of the victim in this case.”
According to records filed in the case, Taylor left the Army in 2016 with an “Other than Honorable” discharge after he was investigated for sexual assault of an unconscious female in Germany, and for assaulting soldiers who went to arrest him. Taylor resigned in lieu of Court Martial.
Once back in the U.S., Taylor was convicted of the 2019 sexual assault of a 5-year-old neighbor child. Taylor forced the child to massage him and reach into his pants. In 2022, Taylor was sentenced in King County Superior Court to 18 months in prison.
During the investigation related to the neighbor child, other children who had been in Taylor’s care were interviewed. Taylor had coached a child, who was now a teen about hiding his sexual assaults. Ultimately, the child disclosed to a relative that in 2012, while stationed on JBLM, Taylor locked the then 5- or 6-year-old in a closet and sexually assaulted the child.
On the eve of trial, Taylor pleaded guilty.
In asking for the 8-year sentence prosecutors wrote to the court, “Taylor’s crimes reveal a man who lacks empathy and who prioritized his own pleasure over others’ pain. Taylor is also no stranger to the justice system; this is his third criminal sex offense. The government hopes that a 96-month sentence, coupled with lifetime supervised release, will prevent Taylor from reoffending again.”
Taylor is required to register as a sex offender following his prison term. Chief Judge Estudillo ordered that he be on supervised release for ten years following prison.
The case was investigated by U.S. Army Criminal Investigations (CID), the King County Sheriff’s Office, and the FBI.
The case was prosecuted by Assistant United States Attorneys Hillary K. Stuart and Erika J. Evans.
Member of Puyallup Tribe sentenced to 13 years in prison for shooting death of his friendRead the Press Release
Tacoma – A member of the Puyallup Tribe was sentenced today in U.S. District Court in Tacoma to 13 years in prison for the fatal shooting of someone he considered a friend, announced U.S. Attorney Tessa M. Gorman. Dennis Jacobsen, 32, was arrested shortly after the shooting on October 21, 2021. Jacobsen was originally charged with unlawful possession of a firearm because of convictions for robbery and unlawful firearms possession in Pierce County Superior Court. In June 2024, Jacobsen pleaded guilty to voluntary manslaughter and using a firearm during a crime of violence.
At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “This is a tragic story of illicit drug use and a firearm. The lives of the loved ones of the victim will carry this loss for years.”
According to records filed in the case, both Jacobsen and the victim had been drinking and using drugs the morning of the shooting. The two were seen together outside the victim’s home within the confines of the Puyallup reservation. The two men walked behind the home and witnesses heard three gunshots. The victim was shot once in the arm and twice in the head, at least once at close range. Witnesses then saw Jacobsen run from behind the house, get in a vehicle and drive away.
When police went to Jacobsen’s residence, they found the handgun with one bullet still in the chamber. The ammunition matched the type of ammunition used in the shooting.
In asking for the 15-year sentence, Assistant U.S. Attorney Todd Greenberg wrote to the court, “The impact of (the victim’s) killing has been felt deeply in the community. His girlfriend was pregnant with his son at the time of the killing. She can now only show her son the photographs of his father. (The victim’s) parents are now without a son and the greater Puyallup community has lost another tribal member to a violent tragedy.”
Jacobsen will be on five years of supervised release following his prison sentence.
The case was investigated by the Puyallup Tribal Police and the FBI.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Two members of multi-state drug trafficking rings linked to Aryan prison gangs sentenced to lengthy prison termsRead the Press Release
Tacoma – Two members of drug trafficking organizations linked to Aryan prison gangs were sentenced today in U.S. District Court in Tacoma to twelve- and seven-year prison terms, announced U.S. Attorney Tessa M. Gorman. Eric Smith,54, of Tacoma, was sentenced to twelve years in prison and Sara Thompson, 39, of Bonney Lake, Washington, was sentenced to seven years in prison. Both defendants were arrested in connection with the investigation of drug trafficking organizations connected to the Aryan Family and Omerta prison gangs. At the sentencing hearing for Smith, Chief U.S. District Judge David G. Estudillo said, “These drugs, particularly fentanyl, are creating a mess in our community. It creates people who can no longer function and leads to overdose and death.”
“Both of these defendants served as trusted coconspirators for the leaders of distribution cells identified in this case,” said U.S. Attorney Gorman. “As such they are responsible for distributing hundreds of thousands of doses of potentially deadly fentanyl and methamphetamine. The damage done to our communities is severe.”
“Every Fentanyl pill introduced into our communities has the potential to destroy lives.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “The defendants conspired with others, including with individuals already incarcerated, to traffic these deadly pills into Washington state. The FBI and our partners will continue our efforts to keep these poisons off the streets and out of our neighborhoods.”
According to records filed in the case, Eric Smith served as a trusted drug customer and redistributor for the leader of the criminal conspiracy, Jesse Bailey. Smith helped Bailey wash over 50 kilograms of methamphetamine to prepare it for distribution. Smith carried and was caught with various firearms while engaged in the drug trade. On November 1, 2024, he pleaded guilty to conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.
Sara Thompson pleaded guilty in August 2024 to conspiracy to distribute controlled substances. Thompson is in a romantic relationship with the leader of the drug distribution cell, 39-year-old Yehoshua Kilp. Thompson served as Kilp’s proxy for major narcotics deals. Law enforcement raided the Airbnb she stayed at with Kilp immediately after one of these deals and seized nearly 45 kilograms of methamphetamine, and over 5 kilograms of fentanyl in powder and pill form. Thompson continued to sell drugs on behalf of the drug trafficking organization even after Kilp was arrested on state charges.
At her sentencing Chief Judge Estudillo said, “The crime that’s associated with controlled substances, the violence that’s sometimes associated with it . . . It’s just a path of destruction for everybody around it. . . . These things have impact and there’s a reason why there’s significant consequences for this type of conduct.”
“Mr. Smith and Ms. Thompson helped a hate group distribute over a million potentially lethal doses of fentanyl into our neighborhoods,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “We, at the Drug Enforcement Administration, and our partners will do everything in our power to stop those who try to poison and destroy our communities with drugs, violence, and hate.”
Law enforcement made two dozen arrests on federal charges on March 22, 2023. The coordinated takedown involved ten swat teams and more than 350 law enforcement officers. On that day law enforcement seized 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona. Earlier in the investigation law enforcement seized 830,000 fentanyl pills, 5.5 pounds of fentanyl powder, 223 pounds of methamphetamine, 3.5 pounds of heroin, 5 pounds of cocaine, $388,000 in cash, and 48 firearms.
The top-level leader of the drug trafficking ring, Jesse Bailey, is scheduled to be sentenced on May 16, 2025, and his wife and co-conspirator Candace Bailey, is scheduled for sentencing on June 13, 2025.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorneys Zach Dillon, Max Shiner, and Jehiel Baer.
Nigerian who defrauded U.S. pandemic aid programs of more than $1 million sentenced to 54 months in prisonRead the Press Release
Tacoma – The second of two Nigerian men residing in Canada who defrauded pandemic aid programs of millions was sentenced today in U.S. District Court in Tacoma to 54 months in prison for wire fraud and aggravated identity theft announced U.S. Attorney Tessa M. Gorman. Fatiu Ismaila Lawal, 46, was extradited from Canada last July, and pleaded guilty in September 2024. At today’s sentencing hearing U.S. District Judge Tiffany M. Cartwright said, the crime required substantial planning. “This took advantage of programs designed to help people who were really struggling in an international emergency,” Judge Cartwright said.
“This defendant made it his full-time job to defraud the U.S. for years before the pandemic, but he kicked it into high gear once critical aid to Americans workers was flowing,” said U.S. Attorney Gorman. “His fraud included using stolen identities of Washington residents to file dozens of unemployment claims in the first few weeks of the pandemic, contributing to the flood of fraudulent claims that caused the state to pause all unemployment payments. In this way his fraud harmed all Washingtonians who desperately needed assistance at the onset of the pandemic.”
According to records filed in the case, Lawal, and codefendant Sakiru Olanrewaju Ambali, 46, used the stolen identities of thousands of workers to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.7 million, primarily from pandemic unemployment benefits. Lawal admits that he personally submitted claims for $1,345,472.
Lawal personally submitted at least 790 unemployment claims using the stolen identities of 790 workers. He submitted claims for pandemic unemployment benefits to New York, Maryland, Michigan, Nevada, California, Washington and some 19 other states. Lawal also established four internet domain names that were subsequently used for fraud – creating some 800 different email addresses that were used in this scheme.
Additionally, between 2018 and November 2022, Lawal used stolen personal information to submit 3,000 income tax returns for $7.5 million in refunds. The IRS detected the fraud and paid just $30,000.
“While Mr. Lawal may not have secured the $7.5 million he sought from fraudulent tax refunds, each of the 3,000 returns he filed represents a life he disrupted,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office.
Lawal and co-defendant Ambali also attempted to use the stolen American identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration (SBA). The pair submitted some 38 applications, but SBA caught most of the fraud and paid only $2,500.
Lawal and Ambali had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.
Evidence gathered in the case shows that Lawal personally received a substantial portion of the criminal proceeds. Lawal was ordered to pay restitution of $1,345,472.
Co-defendant Ambali was sentenced to 42 months in prison in March 2024.
In asking for a 65-month prison sentence, the government argued, “During major disasters and nationwide emergencies, it is particularly important for the government to be able to disburse aid quickly to real victims to mitigate the impact of the crisis. The actual monetary loss to the government comes secondary to the fact that a real person or business behind each stolen identity had difficulty accessing assistance because a fraudulent claim was already paid in their identity. These difficulties were further compounded by the onslaught of fraudulent claims that clogged the infrastructure in place to distribute the aid. The estimated loss from these fraudulent pandemic unemployment claims is over $100 billion.”
The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Internal Revenue Service Criminal Investigation (IRS-CI), Washington State Employment Security Division (ESD), and the Small Business Administration (SBA).
The case was prosecuted by Assistant United States Attorney Cindy Chang of the Western District of Washington. DOJ’s Office of International Affairs assisted with extradition on this matter.
The COVID-19 Fraud Enforcement Task Force was established to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Leader of drug trafficking ring that used social media to communicate and advertise wares sentenced to 10 years in prisonRead the Press Release
Tacoma – The leader of a South Puget Sound drug trafficking organization that sent dangerous drugs as far away as Georgia and Ohio was sentenced today in U.S. District Court in Tacoma to ten years in prison for his multi-state drug trafficking scheme, announced U.S. Attorney Tessa M. Gorman. Joel Adrian Valencia Rosas, 28, of Lakewood, Washington was indicted in December 2023 following a lengthy investigation that uncovered the trafficking of cocaine, fentanyl and marijuana to East Coast locales, and the importation and distribution of fentanyl and cocaine in Western Washington. The drug ring used social media such as Snapchat and Instagram to communicate and recruit new members. At the sentencing hearing U.S. District Judge Tiffany M. Cartwright noted that Mr. Valencia Rosas was glamorizing drug dealing with his social media posts. “He used the lower-level members of the drug ring to take on higher risks… Mr. Valencia Rosas was willing to recruit and sacrifice others to make more money,” Judge Cartwright said.
“The defendants in this case are all young – 18-28 years old. Mr. Valencia Rosas, the ringleader of this trafficking group, actively enticed young people to join his criminal enterprise,” said U.S. Attorney Gorman. “On social media he not only posted the drugs available for sale and their prices, he also attempted to portray the drug trafficking lifestyle as glamorous and lucrative, posting pictures of himself with firearms, flashy vehicles, and cash. In reality, drug trafficking leaves destruction in its wake.”
During this investigation, the Drug Enforcement Administration and partner law enforcement agencies seized nearly 52 kilos of cocaine, more than 23 kilos of fentanyl pills, and 131 kilos of marijuana. One drug shipment seized by law enforcement contained 37 kilos of cocaine and more than a kilo of fentanyl pills. In June 2023, a traffic stop on Interstate 5 resulted in the
seizure of 200,000 fentanyl pills that had been hidden in the vehicle.
According to records filed in the case, Valencia Rosas has been trafficking drugs since at least 2018. His posts on social media talked about how much money he would pay for people to work as drug couriers. Even after Snapchat closed his account in December 2022, Valencia Rosas simply moved his recruiting efforts to another social media site: Instagram. He continued posting on his trafficking activities through 2023.
Valencia Rosas has been in custody since his arrest in December 2023.
In asking for an 11-year prison sentence, Assistant United States Attorney Marci Ellsworth wrote to the court, “Valencia Rosas was so successful that he could not traffic the drugs without bringing others into his criminal orbit. He could not move the hundreds of thousands of dollars in cash drug proceeds from Ohio and Georgia without more people, driving cash back to him or flying with it stuffed into their bags… none of those codefendants made money from their involvement in the DTO. Only Valencia Rosas made money, off the backs of his codefendants.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation was led by the Drug Enforcement Administration (DEA) with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) IRS- Criminal Investigations, TNET (Tacoma Narcotics Enforcement Team), TNT (Thurston Narcotics Task Force), Lakewood PD, Puyallup PD, Bonney Lake PD, Kitsap County Sheriff’s Office, Tacoma PD, Pierce County Sheriff’s Department, and Metro Cities SWAT.
The case is being prosecuted by Assistant United States Attorneys Marci L. Ellsworth and Crystal Correa.
Midlevel leader of drug distribution ring sentenced to 12 years in prison for distribution of fentanyl and methamphetamineRead the Press Release
Tacoma – A 46-year-old Spanaway, Washington man was sentenced today in U.S. District Court in Tacoma to 12 years in prison for his leadership role in a drug distribution ring selling fentanyl and methamphetamine in the Puget Sound region, announced U.S. Attorney Tessa M. Gorman. Sean Michael Moinette has been in custody since March 2023, in connection with the arrest of over two dozen conspirators, including some with ties to an Aryan prison gangs. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “the impact [of drug trafficking] on our community is almost immeasurable.”
“This defendant was deeply involved in distributing drugs, arranging couriers, and seeking various sources of supply. But when confronted with the information that his fentanyl was too strong and causing overdoses, he did not skip a beat and continued to scheme about moving his poison in our community,” said U.S. Attorney Gorman.
According to records filed in the case, Moinette was identified as a mid-level manager of a drug distribution cell tied to the Aryan Family and Omerta prison gangs. A wiretap investigation in summer of 2022 revealed that Moinette was buying large quantities of methamphetamine, fentanyl powder, and fentanyl-laced pills multiple times per week. Moinette continued to distribute large quantities of fentanyl powder even after discussions with his supplier that their customers were “dropping like flies.”
In other wiretap calls, he discussed using women as “live shipping containers” to transport fentanyl out of state. In sentencing Moinette, Judge Estudillo said, “Talking about using mules and transportation of drugs through airplanes up to Alaska . . . It’s hard to believe that’s just talk.”
When a drug redistributor was stopped and her car impounded, Moinette was heard on the wire scheming to break into the police impound yard to try to get the drugs out of the vehicle. The break-in did not occur.
Law enforcement arrested members of the drug distribution conspiracy on March 22, 2023, in a coordinated takedown involving ten swat teams and more than 350 law enforcement officers. On that day alone officers seized 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona. Those seizures are in addition to the estimated 223 pounds of methamphetamine, 830,000 fentanyl pills, multiple-pound quantities of fentanyl powder, cocaine, heroin, and marijuana, $338,000 of suspected drug proceeds, and 48 firearms law enforcement seized from members of the conspiracy during the two-year investigation.
Asking for a 13-year prison sentence, prosecutors wrote to the court that Moinette “continued to distribute fentanyl despite knowing that his fentanyl was having deadly consequences, and he forced his mules to transport this deadly substance using suppositories through the omni-present threat of violence that led one of his couriers to immediately respond “I know” when he threatened to stab her.”
Moinette is the eighth member of the drug conspiracy to be sentenced. Some defendants have received prison sentences of as much at 13 years in prison. Less culpable defendants have been sentenced to 14-50 months in prison. Drug ringleader Jesse James Bailey pleaded guilty last November and is scheduled for sentencing on February 28, 2025.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorneys Max Shiner, Zach Dillon, and Jehiel Baer.
Member of Lummi Nation convicted of Assault by StrangulationRead the Press Release
Seattle – A member of Lummi Nation was convicted today in U.S. District Court in Seattle of Assault by Strangulation, announced U.S. Attorney Tessa M. Gorman. Joseph Michael Quincy Jefferson, 35, was found guilty following a seven- day jury trial. Jurors deliberated about ninety minutes before reaching the guilty verdict. U.S. District Judge Lauren King scheduled sentencing for April 10, 2025.
According to records filed in the case and testimony at trial, on the night of April 8, 2023, Jefferson punched, pushed, and strangled his live-in partner. Sitting on her back he used the crook of his elbow to apply pressure to her neck, strangling her and causing her to black out twice. When the victim regained consciousness, she ran from the home barefoot and in her underwear, calling a friend and a neighbor requesting help. The victim went to the Lummi Nation Police Department and to the hospital. The victim made consistent statements to police and to those giving medical care, that she had been strangled. Medical providers documented her injuries that were consistent with being punched, pushed into a metal bookcase, and strangled. Her nose was broken.
At trial, Jefferson claimed he acted in self-defense. During her testimony, the victim minimized Jefferson’s conduct.
In closing arguments prosecutors detailed how the medical records and recorded statements proved the defendant’s guilt beyond a reasonable doubt. “He was the aggressor... There is no evidence that he faced immediate use of unlawful force,” Assistant U.S. Attorney Celia Lee said in her closing argument. “This is a case of gratuitous, intentional violence from someone who was jealous, angry, and drunk.”
Jefferson has been in custody since his bond was revoked in late October 2024 due to his ongoing contact with the victim in violation of his conditions of pretrial release. He remains in custody pending sentencing.
Assault by Strangulation is punishable by up to ten years in prison.
The case was investigated by the Lummi Nation Police Department and the FBI.
The case was prosecuted by Assistant United States Attorneys Celia Lee and Erika Evans. Ms. Lee serves as a Tribal Liaison for the U.S. Attorney’s Office. Ensuring public safety on tribal lands is a critical responsibility of the U.S. Attorney’s Office, Western District of Washington.
Mercer Island, Washington man sentenced to home incarceration for sexual assault of teen on aircraft flying to Seattle from AtlantaRead the Press Release
Seattle – A 72-year-old Mercer Island, Washington man was sentenced today in U.S. District Court in Seattle to 10 years of supervised release during which two years must be served as home incarceration for Attempted Sexual Abuse of a Minor in Special Aircraft Jurisdiction and Abusive Sexual Contact in Special Aircraft Jurisdiction, announced U.S. Attorney Tessa M. Gorman. Munir Walji was convicted following a four-day jury trial in September 2024. At the sentencing hearing U.S. District Judge Tana Lin said Walji’s conduct “called for a term of incarceration.” However, Judge Lin noted Walji’s extremely poor health. “But for your medical conditions I would impose a prison sentence. But I am deeply concerned that a prison sentence would be a death sentence.”
“This defendant unbuckled the seat belt of the teen sleeping next to him in the confines of an aircraft, and reached inside her pants, attempting to reach her genitals,” said U.S. Attorney Gorman. “This is shocking conduct that traumatized the victim and impacted her family. We will continue to prosecute these cases demonstrating our commitment to holding these perpetrators accountable.”
According to records in the case and testimony at trial, on November 10, 2021, Walji was seated in the aisle seat next to the 15-year-old victim on a Delta Airlines flight from Atlanta to Seattle. The victim’s mother was in the window seat.
As the flight neared arrival in Seattle the victim felt a hand on her leg, waking her. She moved away from Walji and tried to go back to sleep. But the touching became more aggressive with Walji rubbing her thigh, and then unbuckling her seatbelt and reaching inside the waistband of her pants and underwear. The victim said something causing Walji to stop.
The flight attendants responded to the row when the mother pushed the call button. They moved the mother and victim to a different row. Law enforcement was notified, and Walji was arrested upon arrival in Seattle.
In asking for the 30-month sentence recommended by federal pretrial officers, prosecutors wrote to the court, “Despite Walji’s history of family support, opportunity, and career success, he chose to engage in behavior worthy of society’s condemnation. He chose to take advantage of a sleeping 15-year-old girl on a plane who did not know how to respond to this adult male’s nonconsensual sexual advances.”
Walji’s attorneys cited his “severe persistent health problems” including blood cancer and reduced lung function that requires him to take 20 medications per day. Being in a congregate setting would be life threatening, according to Walji’s attorneys.
Prosecutor Laura Harmon countered that at this juncture it was unknown whether BOP could meet Walji’s medical needs. BOP has facilities with high level medical care for cancer patients.
Judge Lin concluded that even though prison was warranted, she was not willing to take the risk that the Bureau of Prisons could not meet his medical needs. Judge Lin also imposed a $5,000 fine and ordered Walji to register as a sex offender.
The case was investigated by the FBI.
The case was prosecuted by Assistant United States Attorney Brian Wynne and Special Assistant United States Attorney Laura Harmon. Ms. Harmon is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation and sex crimes in federal court.
Renton, Washington man who worked with his son to deal drugs and launder proceeds sentenced to 5 years in prisonRead the Press Release
Seattle – A 57-year-old Renton, Washington man was sentenced today in U.S. District Court in Seattle to five years in prison for drug trafficking and money laundering crimes related to his role in a drug distribution ring, announced U.S. Attorney Tessa M. Gorman. Frank Lozano Graves was arrested in July 2023 following an investigation of a drug trafficking organization involving Graves, his son and daughter, and other coconspirators. At the sentencing hearing U.S. District Judge Tana Lin said, “You knew the havoc that drugs wreak and yet you endangered your family…. You modeled for your children that drug dealing was okay, and you got them involved in it.”
“IRS-Criminal Investigations is a key partner in our efforts to take the profit out of drug distribution,” said U.S. Attorney Gorman. “The IRS-CI agents truly ‘follow the money,’ providing the evidence we need to seize bank accounts and assets such as homes or vehicles that have been purchased with drug money. In this way they do their part to remove the financial incentive of drug trafficking.”
“Mr. Graves enabled addiction in his own community for money,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “We follow the money to stop criminal organizations from profiting at the expense of human lives.”
According to records filed in the case, as early as July 2022, communications between Graves and his son, who was incarcerated, made it clear that Graves was dealing opioids. The investigation revealed that the drugs were coming from a source in Las Vegas. After Graves’ son was released from prison, the two men were heard on wiretapped phone calls discussing their drug conspiracy. Graves was even posting on social media about his drug trafficking. Graves was arrested in July 2023.
Following the arrest, agents with IRS-CI began analyzing Graves’ bank accounts and financial records. They could trace drug proceeds going into his accounts totaling about $800,000 over three years. Graves and his son set up a phony construction company to launder the funds. In his plea agreement Graves admits that the funds flowing into the accounts were from his drug trafficking activity.
As part of his sentence Graves is forfeiting to the government a vehicle, jewelry and more than $15,000 in cash seized from his home.
Graves’ son, Frank Marquis Graves, pleaded guilty today to conspiracy to distribute controlled substances and assault (for an attack on another inmate at the Federal Detention Center at SeaTac). Frank Marquis Graves is scheduled for sentencing on April 16, 2025.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Federal Bureau of Investigation (FBI), Seattle Police Department, and Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorneys Stephen Hobbs and Michelle Jensen.