Source: United States Attorneys General 12

Seattle – The owner of a wholesale fish processor, Native American Fisheries, was sentenced today in U.S. District Court in Seattle to three years of probation for violating the Lacey Act by taking more than 7,000 pounds of illegally caught Columbia River salmon and selling it commercially.   Scott Kinley is a member of the Lummi Nation and knew the spring Chinook Columbia fishery was only open to Yakama Nation enrollees who were limited to fishing for subsistence and ceremonial purposes.  At the sentencing hearing U.S. District Judge Lauren King noted that Kinley lied when he was stopped and questioned by fisheries officers. “You lied and told them that the fish was for tribal elders. Instead of giving all of that fish to elders or providing it for a funeral or ceremonial purposes… you sold the vast majority of it and made tens of thousands of dollars.”

“These fish were taken at a critical time, when the Yakama Nation and its fisheries partners were trying to boost spring Chinook salmon returns to the Columbia Basin,” said U.S. Attorney Nick Brown.  “The high levels taken during this fishery prompted an emergency closure which hurt those tribal members who wanted fish for subsistence or ceremonial purposes.”

According to records filed in the case, Kinley knowingly purchased and sold thousands of pounds of protected salmon that was not available to his competitors.  The investigation revealed that Kinley sold the fish for about $11.75 per pound wholesale, while the retail price was $19.99 retail.  That places the full retail value of the salmon at $143,088.  Judge King ordered that $143,088 in restitution be paid to the Columbia River Intertribal Fish Commission (CRITFC) to fund habitat protection and restoration projects.

“The Columbia River Inter-Tribal Police Department and NOAA’s Office of Law Enforcement work collaboratively to protect these endangered species on the Columbia River,” said Greg Busch, Assistant Director of NOAA’s Office of Law Enforcement, West Coast Division. “The tribes and the entire region work too hard to protect and restore native salmon and steelhead in the Columbia River Basin to see them harvested and sold illegally.”

The program manager for the Yakama Nation Fisheries Program described the impact of the illegal sale of the poached fish as stealing from future generations.  “Illegal commercial sales encourage overharvest which in turn is detrimental to salmon recovery and rebuilding efforts underway. These activities destroy our attempts at a fair system of allocation and can limit legal harvest in a given year. Lastly, the entire reason for limiting harvest is conservation and recovery, that is, to allow enough fish to make it to either spawning grounds or back to the hatcheries to ensure future generations of fish,” Donella Miller wrote in the Yakama victim impact statement.

The case was investigated by the National Oceanic and Atmospheric Administration (NOAA) Office of Law Enforcement and the Columbia River Inter-Tribal Police Department, with assistance from the Washington Department of Fish and Wildlife.

The case is being prosecuted by Assistant United States Attorney James Oesterle.

Source: United States Attorneys General 12

Tacoma – A 48-year-old Longview, Washington, man was arrested this morning on a criminal complaint charging seven counts of making interstate threats, announced U.S. Attorney Nick Brown.  Mark Leonetti has allegedly repeatedly called U.S. Senators and members of the House of Representatives and left voicemails threatening bodily harm.  Leonetti will appear today in U.S. District Court in Tacoma.

“Making horrific and graphic threats to harm is always unacceptable, and we must always take threats of political violence seriously. In this instance, Mr. Leonetti refused to stop his conduct despite contact with law enforcement and mental health personnel,” said U.S. Attorney Brown.  “We acted now because it has become clear it is the only way to safeguard the community and those serving it.”

According to the criminal complaint, in 2021, Leonetti allegedly left more than 400 voicemails for members of Congress, several of which used slurs and were threatening.  This pattern of allegedly leaving voicemails for federal elected officials continued despite Leonetti being visited and warned several times by law enforcement and mental health professionals.  In early September 2022, he left threatening voicemails in the voicemail box of a congresswoman.  Emergency mental health professionals again contacted Leonetti after those calls.  In late September and October 2022, Leonetti left additional threatening voicemails for a different senator and a congressman.  The most recent voicemails were left on December 5, 2022 and contained bizarre and threatening statements about “murder” and “killing” individuals.

Making interstate threats is punishable by up to 5 years in prison.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the FBI with assistance from the U.S. Capitol Police and the Longview Police Department.

The case is being prosecuted by Assistant United States Attorney Will Dreher.

Source: United States Attorneys General 12

Seattle – A 23-year-old Seattle man, was sentenced today in U.S. District Court in Seattle to ten years in prison for attempted sex trafficking of a minor, announced U.S. Attorney Nick Brown.  Issac Shorack was arrested at Sea-Tac Airport in February 2022 as he drove to the arrivals area to pick up a person he believed to be a 17-year-old minor.  In fact, Shorack had been communicating with an undercover agent about traveling to Seattle to work as a prostitute.  Shorack first came to the attention of law enforcement in November 2021, with a tip to a National Human Trafficking hotline alleging he was trafficking juveniles.  At today’s sentencing hearing, U.S. District Judge Tana Lin said Shorack preyed on “Young, confused, and impressionable girls…. You were looking for young vulnerable girls, and when they were afraid, you threatened them with violence.”

“Mr. Shorack used threats and violence to control vulnerable juveniles who he sold for sex on Aurora Avenue,” said U.S. Attorney Nick Brown.  “He made hundreds of thousands of dollars by exploiting and endangering young women and used the money to fund his lavish lifestyle.”

According to records in the case, the investigation began with a call to the National Human Trafficking Hotline in November 2021.  The caller reported information about minors who were being trafficked in the Seattle area – in the location known as “the track” or “the blade” on Aurora Avenue North.  The FBI began an investigation and was able to trace some of the activities of Shorack and the minors he controlled for sex trafficking.  Forensic examination of electronic devices revealed text messages showing Shorack in control of the minors’ activities including pricing, what sex acts they should engage in with sex buyers, the use of condoms and information about whether they were earning enough money for him.  Investigators analyzed Shorack’s texts to the minors about how much money they were making and saw that they correlated with cash deposits made into his bank accounts.  In his text messages, Shorack also bragged about physically assaulting another victim and threatened physical violence if the victims did not follow his orders.  Shorack also admitted that he knew at least three of his victims were minors.

The FBI used an experienced undercover agent based out of state to reach out to Shorack posing as a 17-year-old minor.  Shorack communicated with the “minor” via phone and text messages and attempted to entice her to travel to Seattle and work for him as a prostitute.  Shorack had some of the minors under his control reach out to the undercover officer as well to try to recruit her to work for him.   Shorack used various questions to try to determine whether the undercover was law enforcement.  Ultimately, Shorack purchased a ticket for the “minor” to fly to Seattle and told her he would pick her up outside baggage claim.  Instead, Shorack was arrested by Port of Seattle Police.

“It is deplorable that Mr. Shorack not only recruited minors from across the country, but he also demonstrated zero concern for his victims’ well-being,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field Office. “The work the FBI and our law enforcement partners are doing to combat modern-day slavery is critical in ending this dehumanizing crime.”

An analysis of Shorack’s bank accounts revealed he deposited more than $360,000 in prostitution proceeds.  Today Judge Lin ordered Shorack to pay $50,000 in restitution to each of his three minor victims for a total of $150,000.

In asking for a 12-year-sentece with ten years of community supervision to follow, Assistant United States Attorney Kate Crisham wrote to the court, Shorack “is a predatory person who was willing to recruit and live off the prostitution profits of vulnerable juveniles and young women. By virtue of engaging in this conduct, he poses a very real danger to the community and has the potential to continue to sexually exploit women upon his release.”

Shorack will be on ten years of supervised release following prison, and will be required to register as a sex offender.

The National Human Trafficking Hotline is 1-888-373-7888

The case was investigated by the FBI with assistance from the Seattle Police Department and the Port of Seattle Police.

The case was prosecuted by Assistant United States Attorney Kate Crisham. Ms. Crisham is the Anti-Human Trafficking Coordinator for the Western District of Washington. 

Source: United States Attorneys General 12

Seattle – A 50-year-old Olympia, Washington man was indicted late yesterday by a federal grand jury for three arsons that damaged or destroyed Jehovah’s Witness Kingdom Halls, announce U.S. Attorney Nick Brown.  Mikey Diamond Starrett, aka Michael Jason Layes, was charged in a superseding indictment with three counts of damage to religious property, including the use of fire, and three counts of using fire to commit a federal felony.  Layes will be arraigned on the indictment next week.

“As DOJ noted this week, we are putting a priority on prosecuting hate crimes,” said U.S. Attorney Brown. “We continue to work closely with our faith communities so that they have the most current information on how to protect places of worship.”

According to the superseding indictment, the defendant allegedly set fire to Jehovah’s Witness Kingdom Halls on three occasions: the Kingdom Hall of Tumwater, Washington on March 19, 2018; the Kingdom Hall of Olympia, Washington on March 19, 2018; and the Kingdom Hall of Olympia, Washington on July 3, 2018.  The superseding indictment alleges the defendant defaced, damaged, and destroyed religious real property at the Kingdom Halls because of the religious character of the properties.

“Our criminal investigators have been working tirelessly on these attacks since they began in 2018,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “We hope this indictment helps calm the fears of those in the Pierce and Thurston county areas through the knowledge that Layes is being prosecuted for his alleged crimes.”

Layes was previously charged with one count of damage to religious property, including the use of a dangerous weapon, and one count of use of a firearm during and in relation to a crime of violence, in connection with a shooting that damaged a Jehovah’s Witness Kingdom Hall in Yelm, Washington, on May 15, 2018.  The defendant was also previously charged with one count of unlawful possession of an unregistered firearm. Layes has been in federal custody since his arrest on September 8, 2021.

If convicted, the defendant faces a sentence of up to 20 years in prison on each charge of damage to religious property.  The defendant faces up to 10 years in prison if convicted on the unlawful possession of an unregistered firearm charge. If convicted, the defendant faces at least 10 years in prison to run consecutive to any sentence imposed for each of the remaining offenses.

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 Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) Seattle Field Division, the FBI, the Tumwater, Washington Police Department, and the Olympia, Washington Police Department.

The case is being prosecuted by Assistant United States Attorney Rebecca S. Cohen for the Western District of Washington and Trial Attorney Matthew Tannenbaum for the Justice Department’s Civil Rights Division.  Ms. Cohen serves as the Civil Rights Coordinator for the U.S. Attorney’s Office’s Criminal Division.

For more information and resources about DOJ’s work to combat hate crimes, visit www.justice.gov/hatecrimes.

Source: United States Attorneys General 12

Seattle – A 61-year-old Spanaway, Washington man was sentenced today in U.S. District Court in Seattle to eight years in prison for his key role in a large drug distribution ring, announced U.S. Attorney Nick Brown. Dwayne Douglas George was indicted in November 2021, along with 16 other defendants. George distributed significant amounts of methamphetamine and fentanyl in Western Washington, and acted as a courier, bringing large amounts of drugs to the northwest from California.  U.S. District Judge John C. Coughenour noted “the large amount of methamphetamine and fentanyl in the case.  Both are extremely dangerous and caused a lot of damage in this community.”

“Mr. George obtained as much as seven pounds of methamphetamine at a time directly from the leader of this drug distribution ring – and fed the addiction of countless people struggling in our community,” said U.S. Attorney Brown.  “He also was poised to bring 80,000 fentanyl pills to our community. Both meth and fentanyl are claiming lives across western Washington.”

According to records filed in the case the investigation began in February 2020.  Various people working with law enforcement provided information regarding the drug distribution activities.  Aware of some of the group’s trafficking, law enforcement seized 9 pounds of methamphetamine in a traffic stop on May 16, 2020.  Another 30 pounds of meth were seized in a stop on April 2, 2021, and 57 pounds of methamphetamine and 20,000 fentanyl pills were seized in a traffic stop on September 28, 2021.  Additionally, on August 17, 2021, law enforcement seized 19 pounds of methamphetamine that conspirators attempted to mail to Fiji.

George helped the organization spread drugs to King, Pierce, Thurston, Lewis, Mason, and Kitsap counties. 

“Mr. George was a large-scale distributor of illegal narcotics which have caused countless deaths and sorrow for many families in the Pacific Northwest,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “The DEA and all of its partners will continue to investigate, arrest and hold accountable individuals like Mr. George and those organizations that seek to bring harm to our communities.”

In asking for an eight-year prison sentence, prosecutors wrote to the court that George “…worked alongside members of a large transnational drug organization, selling pound-quantities of methamphetamine. Moreover, he also made the decision to get involved in the distribution of fentanyl, an incredibly dangerous and oftentimes lethal drug, that he never used himself. Based on his conduct, the amounts of drugs he was distributing, and his long criminal past, including more than 30 years of drug trafficking, George is not only deserving of a significant sentence, but such a sentence is also clearly necessary to protect the public.”

Judge Coughenour ordered George to serve four years of supervised release following his prison term.

This case is 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) Seattle Field Division (SFD) Tacoma Resident Office (TRO) and Bremerton Police Department (BPD), with assistance from  Tahoma Narcotics Enforcement (TNET); the Seattle, Puyallup, Auburn, Federal Way, Kent, Bonney Lake, Tacoma,  and Lakewood Police Departments; the Pierce County Sheriff’s Office; Washington State Department of Corrections; Joint Narcotics Enforcement Team (JNET): Centralia and Chehalis Police Departments; Valley Narcotics Enforcement Team (VNET); and Washington State Patrol; Thurston Narcotics Team (TNT), Kitsap County Sheriff’s Office, and Mason County Sheriff’s Office; United States Postal Inspections Service (USPIS), Internal Revenue Service Criminal Investigation (IRS-CI), and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) with support from Northwest High Intensity Drug Trafficking Areas ( HIDTA).

The case is being prosecuted by Assistant United States Attorneys C. Andrew Colasurdo and William Dreher.

Source: United States Attorneys General 12

James Dean Cloud sentenced for committing multiple murders and a carjacking. Donovan Quinn Carter Cloud sentenced for his role in the carjacking.

Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that James Dean Cloud, age 39, and Donovan Quinn Carter Cloud, age 35, were sentenced by Chief District Judge Stanley A. Bastian for crimes involving multiple murders and a carjacking in 2019. James Cloud was sentenced to four terms of life imprisonment to run consecutively. James Cloud was also ordered to pay approximately $25,000 in restitution on behalf of the homicide victims and their families. Donovan Cloud was sentenced to 327 months of incarceration for his role in the carjacking.

Following today’s sentencing, U.S. Attorney Waldref stated, “The loss of life in this case is just horrific. It is the obligation of law enforcement and the United States Attorney’s Office to seek justice for victims and their families. Not everyone who suffered a loss in this case will be able to find solace, despite the lengthy prison terms that were handed down today. Our hearts go out to everyone who lost a family member due to the senseless violence that occurred on June 8, 2019. I praise the courage of the members of our community who came forward, cooperated with law enforcement, and testified at trial.”

According to court documents and evidence elicited at the trial of James Cloud, on June 8, 2019, in White Swan, Washington, four victims were shot and left for dead at 5151 Medicine Valley Road. A fifth victim was shot in his truck while parked in the driveway. A passenger in the truck, who was also shot, was able to escape while the suspects opened fire on the truck. The suspects fled the crime scene in a stolen truck, which broke down less than ten miles from the crime scene. In search of another vehicle, the suspects armed themselves and approached a nearby home. One suspect grabbed a child playing outside and held a gun to the child’s head, while the second armed suspect pointed a shotgun at the child’s parents and demanded the keys to the family vehicle. The suspects then kidnapped the child and fled. Because of the quick thinking of the child’s parents, who yelled for the child to jump from the moving vehicle, and the bravery of the child, the minor child escaped and survived. Notably, these offenses occurred when the Yakama Nation was celebrating Treaty Day, which marks the anniversary of the signing of the Yakama Nation Treaty of 1855, the treaty that formed the Confederated Tribes and Bands of the Yakama Nation.

During the investigation into these offenses, the Yakima County Sheriff’s Office, the Washington State Patrol, the Yakama Nation Police Department, and the FBI conducted a compressive and thorough analysis of both crime scenes and the vehicles used by the suspects. The investigation revealed that each of the murder victims had been shot with a .22 caliber rifle. Ballistic evidence established that .22 shell casings found at the crime scene matched up to a .22 rifle that was discovered in a canal near the second crime scene. A frightened witness identified James Cloud as the individual who possessed the .22 caliber rifle while at the 5151 Medicine Valley crime scene. Donovan Cloud’s latent fingerprint later was discovered on the rear-view mirror of the vehicle that was stolen during the kidnapping and carjacking.

On February 28, 2022, the jury trial of James Cloud began. Over the course of several days, multiple law enforcement, citizens, victims, and expert witnesses testified. Despite being afraid for his personal safety, a courageous witness came forward and testified about what happened at the 5151 Medicine Valley crime scene. Additional members of the community and victims likewise testified about the suspects’ actions on that horrific day.

On March 9, 2022, a jury found James Cloud guilty of four counts of First-Degree Murder, Carjacking, two counts of Brandishing a Firearm in Furtherance of a Crime of Violence, Kidnapping a Minor, Assault With a Dangerous Weapon, and three counts of Discharging a Firearm in Furtherance of a Crime of Violence. On the same day, Donovan Cloud pled guilty to Carjacking and Brandishing a Firearm in Furtherance of a Crime of Violence.

Earlier today, both James Cloud and Donovan Cloud were sentenced in Yakima, Washington. Several victims and their family members spoke at the sentencing hearing and relayed how these horrific crimes impacted their lives. Many victims also prepared written statements which were submitted to the Court. Chief Judge Stanley Bastian reviewed the trial transcripts, the victim impact statements, and listened to the victims and their representatives. When Chief Judge Bastian pronounced sentence, he stated that James Cloud had “been a danger to the community for a long time,” adding that Cloud “terrorized a community and terrorized a family.” Chief Judge Bastian also expressed his heartfelt sorrow to the victims of this case.

U.S. Attorney Waldref commended the efforts of the investigators and prosecutors who worked for years to bring justice to the victims of Cloud’s crimes. U.S. Attorney Waldref stated, “The sentences that were imposed in this case demonstrate that those who victimize members of our community will be held accountable and punished to the full extent of the law. However, such lengthy sentences simply cannot substitute for the tragic loss of so many lives. The public can feel better knowing that James Cloud and Donovan Cloud are no longer roaming the streets and will no longer be able to inflict harm on the Yakama Nation. The Eastern District of Washington is undoubtably safer and more secure. I am grateful for the dedication and perseverance of the FBI, the ATF, the Yakama Nation Tribal Police, the Yakima County Sheriff’s Office, and the Washington State Patrol, who collaborated with Assistant United States Attorneys Tom Hanlon and Rick Burson to see these cases through to just results. We will continue to mourn with the victims and our hearts will forever grieve for their families.”

Assistant United States Attorneys Tom Hanlon and Rick Burson, who prosecuted the case, expressed their gratitude to the law enforcement agents and officers, who handled the case. They also recognized the many victims whose lives will never be the same. “If it were not for the combined efforts of the FBI, ATF, Yakama Nation Police Department, and Yakima County Sheriff’s Office, there would have been no measure of justice for the victims in this case,” stated AUSA Tom Hanlon.

AUSA Rick Burson added, “We cannot understate the tragedy of this case. A number of innocent victims lost their lives, and their families will never be the same. I’m grateful for the bravery and courage of the surviving victims and witnesses who came forward. Because they agreed to speak with law enforcement and testified at trial, the victims and their families are hopefully able to feel some measure of justice in this case.”

“The spree of violence perpetrated by the Cloud brothers was horrifying and senseless,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “The investigation, conducted alongside our partner agencies, demonstrates the FBI’s diligence and commitment to prioritizing the investigation of violent crimes and the impact these crimes inflict on our communities. The efforts of investigators and prosecutors hopefully provides some sense of justice for the survivors. It is my hope that today’s sentence ensures that the Cloud brothers never terrorize their community again.”

“The sheer brutality of the Clouds’ actions clearly warranted such severe sentences,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “ATF will always work to ensure that violent criminals, such as the Clouds, are held accountable for their actions.”

This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Yakama Nation Tribal Police, the Yakima County Sheriff’s Office, and the Washington State Patrol. The case was prosecuted by Tom Hanlon and Rick Burson, Assistant United States Attorneys for the Eastern District of Washington.

Source: United States Attorneys General 12

Spokane, Washington – The Justice Department has announced the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled maters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. The Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.

“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”

“From the Palouse to the Cascades, and from the small towns to the big cities, respect for our elders is a principle we can all live by in the Eastern District of Washington,” said U.S. Attorney Waldref. “Having safe and strong communities means protecting our seniors, who can be among our most vulnerable – and are often the same people who have protected all of us when we have been vulnerable ourselves.”

During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.

The following are examples of recent cases involving fraud perpetrated against older adults in the Eastern District of Washington:

• United States v. Jeffrey Carley, 1:21-cr-010: Defendant Jeffery Carley was an investment broker, who was sentenced to 60 months in federal prison for an investment scheme targeting older clients. As part of the scheme Carley stole money from his victims’ retirement accounts;

• United States v. Providence Health & Services, 4:20-cv-05004-SMJ: Two Walla Walla neurosurgeons alleged to have performed medically unnecessary spinal surgeries on elderly Medicare beneficiaries. Providence Health and Services agreed to pay $22.7 million to resolve liability, which is the largest-ever health care fraud settlement in the Eastern District of Washington;
• United States v. David Joseph Osinksi, 2-22-CR-0070-TOR: Osinksi has been indicted and charged with a $345,000 romance-fraud scheme allegedly involving an elderly victim in Spokane, Washington; and
• United States v. Ronald Walter Hannes, 2-22-CR-0085-TOR: Hannes, a registered financial advisor, indicted and charged with a $2.9 million scheme in which he allegedly defrauded a number of investors.

As part of the Eastern District’s elder fraud efforts, the U.S. Attorney’s Office engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization. This year, the Eastern District co-hosted, with the Washington State AG’s office, a conference to kick off a working group aimed at bringing together state and federal law enforcement and regulatory partners to combat health care fraud and elder abuse in the Eastern District of Washington. The working group developed and has begun to implement a detailed plan for community engagement and outreach involving state and federal partners, local government, community groups, private health insurers, and health care providers. Additionally, the Eastern District partnered with DEA on Operation Engage, which worked directly with the community, especially pharmacies and pharmacists, to educate and work with the public and health care practitioners to safeguard the community from opioids and prescription medications.

The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.

The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.

In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.

Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.

Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-866 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals, who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 3:00 a.m. to 8:00 p.m. PST. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website,  www.elderjustice.gov.

Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Attorneys General 12

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Christopher B. Bjarke, M.D., age 61, of Renton, Washington, pled guilty to conspiring to accept kickbacks in connection with a fraudulent genetic testing scheme that targeted elderly Medicare beneficiaries throughout Washington and in other states. Senior District Judge Rosanna Malouf Peterson accepted Dr. Bjarke’s guilty plea, and set sentencing for January 10, 2023 at 1:30 p.m. in Spokane, Washington.

The Medicare program provides health insurance coverage for elderly and disabled Americans. Medicare generally provides coverage for diagnostic laboratory testing only if the test is ordered by a physician who is treating the beneficiary for a specific medical problem, and uses the test results to treat the patient for that specific problem. According to the Plea Agreement and information disclosed in court proceedings, Dr. Bjarke engaged in a conspiracy and scheme through which he placed orders for Medicare for genetic testing for Medicare beneficiaries in the Eastern District of Washington and elsewhere that he was not treating and with whom he had no physician-patient relationship. According to the Plea Agreement and other court documents, Dr. Bjarke’s sole contact with these patients was when he was connected with the beneficiaries for a telephone call for a few minutes through telemarketers. After Dr. Bjarke had ordered the tests, the laboratories then billed Medicare for the test, while another company billed Medicare for a purported “telemedicine” visit, sometimes for as much as tens of thousands of dollars.

According to the Plea Agreement, through this scheme and conspiracy, Dr. Bjarke’s orders were responsible for more than $18.6 million paid by Medicare. In return for his participation in the scheme, between December 2020 and September 2021, Dr. Bjarke received $167,996.73 from his co-conspirators, which Dr. Bjarke admitted were kickbacks because they constituted payment in return for ordering medically unnecessary genetic testing and other services for patients that he was not treating and with whom he had no physician-patient relationship.

“Health care fraud and kickback schemes are serious public health and safety problems,” said U.S. Attorney Waldref. “They divert precious public funds away from treating patients, drive up the cost of health care services, and undermine trust in our health care system, often putting quality health care beyond the reach of those who need it the most. Telemarketing schemes that target and exploit the elderly are especially pernicious because they prey on those who are often most in need of a doctor’s independent judgment that is not tainted or biased by the doctor’s own personal financial interest.”

“Dr. Bjarke placed making money above the welfare of patients and preyed upon elderly and vulnerable members of the community,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle Field Office. “This conspiracy not only victimized taxpayers via Medicare, but also impacted the patients, who underwent unnecessary medical screenings, thereby affecting their peace of mind. Medicare ultimately paid over $18 million for medically unnecessary testing, a fact that should outrage every law-abiding taxpayer.”

“I am grateful for, and commend, the stellar investigative work on this case performed by HHS OIG and the FBI,” said U.S. Attorney Waldref. “We will continue to work with our law enforcement partners to make our communities safer and stronger, by aggressively pursuing telemedicine kickback schemes, healthcare fraud, and elder abuse.”

The conspiracy offense carries a maximum sentence of up to five years in federal prison. The case was investigated by HHS OIG and the FBI. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.

Source: United States Attorneys General 12

Spokane – On September 21, 2022, U.S. District Judge Thomas O. Rice sentenced Kylie Ruby Flores, 31, of Spokane, to 23 years in prison for conspiracy to engage in the sex trafficking of a six-year-old girl, whom Flores made available to an adult man for sexual abuse in exchange for housing, cash, and sneakers. Flores will also be on federal supervision for the remainder of her life.

Flores conspired with codefendant Trever Harder to engage in the sex trafficking of a six-year-old girl. After meeting Harder online on the dating application Plenty of Fish, Flores knowingly agreed to trade sexual access to the girl for a place to stay, small amounts of cash, and the promise of new Nike running shoes. According to the Plea Agreements entered by Harder and Flores, the child was able to describe the specific ways that Harder sexually abused her, including acts of sodomy. Law enforcement officers recovered a video that Harder had recorded after he set up a camera on a cat tree in his apartment in Cheney, Washington. The video depicts Harder raping the little girl on the couch in his apartment. Harder has also pleaded guilty and is pending sentencing.

“The facts of this case present some of the most egregious sexual abuse of a child one can imagine. Today’s sentence is important, but it is equally important to remember that Flores’s sentence will likely be much shorter than the lifelong impact on the child,” said Vanessa R. Waldref, United States Attorney for the Eastern District. “No sentence can return the child’s innocence, but our community is now safer and stronger. Most important, the child is now in a safe place.” The U.S. Attorney emphasized the importance of protecting children. “The little girl in this case was only six years old when her abuse began. Thanks to an effective and cooperative investigation, she is neither missing nor murdered today—but she is not the only child in danger. Today’s sentence sends a clear message to those who seek to sexually abuse children: justice is coming.”

David M. Herzog, the Assistant United States Attorney who prosecuted the case, thanked the agencies responsible for the investigation and the protection of the young victim. “Incredibly dedicated FBI agents worked hand-in-hand with state, local, and tribal law enforcement to secure justice for the victim in this case. I am particularly grateful to Chelsea Sayles, the Quileute Tribal Attorney, and our partners with Quileute Indian Child Welfare, who worked hand-in-hand with the FBI and the US Attorney’s Office to protect this child from further sexual abuse.”

“It is inconceivable as a parent how someone could participate in the victimization of a child under their care.“ said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field Office. “While the sentence in this case is significant and truly justified, it only brings a small measure of justice to the victim. I hope the dedication of FBI agents and our partners to hold predators like Ms. Flores accountable serves as a message to those who would victimize our most vulnerable among us.”

This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:

· Integrated federal, state, and local efforts to investigate and prosecute child  exploitation cases, and to identify and rescue children;

· Participation of PSC partners in coordinated national initiatives;

· Increased federal enforcement in child pornography and enticement cases;

· Training of federal, state, and local law enforcement agents; and

· Community awareness and educational programs.

For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

This case was investigated by the FBI’s Spokane Resident Office and the Spokane Police Department, with significant assistance from the Quileute Nation. The case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington

Source: United States Attorneys General 12

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Dondre Charles Jackson, age 29, of Moses Lake, Washington, pled guilty to fraudulently obtaining $49,999 in COVID-19 relief funds. This case is part of the Eastern Washington COVID-19 Fraud Strike Force launched by the U.S. Attorney’s Office earlier this year. District Judge Thomas O. Rice accepted Thomas’ guilty plea, and set sentencing for January 5, 2023 at 10:00 a.m. in Spokane, Washington.

On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided forgivable loans to eligible small businesses for job retention and certain other expenses.

According to the plea agreement and information disclosed in court proceedings, Jackson fraudulently obtained two PPP loans totaling $49,999 for his purported catering and food service business, and submitted fraudulent tax documentation in support of his application. According to the plea agreement and other information disclosed during court proceedings, Jackson’s business was fictitious, the documentation he provided was false and fraudulent, and he was therefore not eligible for any PPP funding.

“COVID-19 relief programs quickly ran out of money due to the number of people and businesses that requested funding, which meant that some deserving small businesses were not able to obtain funding to keep their businesses in operation during the COVID-19 pandemic,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because it is critical to the strength and safety of our communities that we all work together to combat pandemic-related fraud and bring much-needed accountability to these programs. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”

In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, and other penalties.

“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG and the Secret Service,” said U.S. Attorney Waldref. “We will continue to work with our law enforcement partners to strengthen our communities by protecting our small and local businesses.”

“In addition to the Small Business Administration, Office of Inspector General and other Task Force partners, Greg Ligouri, Resident Agent in Charge of the Spokane Office of the U.S. Secret Service, expressed his thanks and appreciation to the Grant County Sheriff’s Office and Moses Lake Police Department for their collaboration in this investigation. RAIC Ligouri went on to say that communities are safer and better served when law enforcement agencies are able to marshal resources as was done in this case.”

The case was investigated by the Eastern Washington COVID-19 Fraud Strike Force, and in particular by the SBA OIG and U.S. Secret Service. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.