Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that Marisa Beck, age 41, of Spokane, was sentenced for fraudulently obtaining more than $360,000 in COVID-19 relief funding intended for endangered small businesses and employees at risk of losing their jobs. Chief United States District Judge Stanley A. Bastian imposed a sentence of 12 months imprisonment to be followed by 3 years of supervised release, as well as restitution of $402,020.32, representing the total loss to the public as a result of the fraud.
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 to retain jobs and maintain payroll during the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low-interest bridge funding for small businesses placed at risk during the pandemic.
According to court documents and information presented at trial and the sentencing hearing, Ms. Beck admitted to fraudulently obtaining $368,829 in PPP and EIDL funding for three purported businesses: Cyra Solar LLC, Beck N’ Call Landscape, LLC, and Value in People Consulting, LLC. Ms. Beck admitted that these entities were not eligible for CARES Act funding because Beck N’ Call Landscape and Cyra Solar were not active businesses as of February 2020, and because she submitted false and fraudulent payroll, revenue, and other information associated with the three purported businesses in order to fraudulently obtain CARES Act funding.
“Many small businesses struggled during the COVID-19 shutdowns and were eligible for pandemic relief funds to keep their doors open and to ensure that their employees could keep their jobs. Fraudulent schemes diverted critical money set aside to help those businesses and instead were used to enrich individuals such as Ms. Beck,” stated U.S. Attorney Waldref. “I’m grateful for the investigators and prosecutors of our COVID Fraud Strike Force. Their teamwork and focus on uncovering fraud strengthens our community and protects small and local businesses.”
“Today’s sentencing underscores the VA Office of Inspector General’s commitment to rooting out fraudsters and safeguarding taxpayer funds,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG will continue to work with our law enforcement partners as part of the COVID-19 Strike Force to investigate fraud against relief programs intended to support bona fide recipients.”
The case was investigated by the Eastern Washington COVID Fraud Strike Force, and in particular by the U.S. Department of Veterans Affairs Office of Inspector General, Spokane Resident Office, with investigative assistance and support from the Federal Bureau of Investigation, Spokane Resident Agency, the Small Business Administration Office of Inspector General, Western Regional Office, and the Internal Revenue Service, Criminal Investigative Division, Seattle Field Office. Assistant United States Attorney Dan Fruchter prosecuted this case on behalf of the United States.
Richland, Washington - On August 21, 2024, a federal grand jury for the Eastern District of Washington returned an Indictment charging Gilbert Orosco, of Richland, Washington, with ten counts of conspiracy, fraud, and aggravated identify theft. Orozco made his first appearance in Federal Court on August 27, 2024.
The Indictment alleges that, beginning in July 2020, Orosco took part in a scheme in which he defrauded the United States government and the governments of California, Nevada, and Arizona to obtain money from the states’ COVID relief programs in the form of unemployment insurance proceeds funded, in part, by the United States government. Specifically, Orosco conspired with co-conspirators who acquired personal information from others and used it to fraudulently make mass online applications for money earmarked by the states to provide unemployment insurance relief for those who lost their jobs due to the COVID pandemic. The indictment alleges Orosco’s co-conspirators created and submitted false and fraudulent applications for unemployment insurance on behalf of individuals who were not seeking or eligible for the benefits, and did not know that their identities were being used to obtain benefits. Acting on the fraudulent applications, the states then mailed debit cards to Orosco’s home in Richland, Washington. According to the indictment, Orosco used the debit cards to withdraw cash from ATMs. After withdrawing the cash, Orosco would convert the money into cryptocurrency or money orders. Orosco would then allegedly use those assets himself or transfer them to co-conspirators.
The indictment alleges, between July 2020 and December 2021, unemployment insurance claims on behalf of approximately 70 different individuals were filed with state work force agencies, including in California, Nevada, and Arizona, that listed Orosco’s residence in Richland, Washington. Debit cards were then mailed to Orosco’s residence in the names of these individuals.
According to the indictment, during this period, Orosco used the debit cards in other people’s names to make 347 ATM withdrawals totaling approximately $282,814. Orosco also made another approximately 30 transactions using the debit cards at Winco, Albertson’s, and USPS locations in the Eastern District of Washington totaling approximately $57,095.
“Many people who lost their jobs during the pandemic were dependent on COVID-19 relief programs for financial support during an unprecedented time of uncertainty,” said U.S. Attorney Waldref. “We created the COVID-19 Fraud Strike force to protect everyone who relied on those critical funds and to combat pandemic-related fraud.”
This case was investigated by the Department of Labor, Office of Inspector General, and the Department of Homeland Security, Office of Inspector General COVID Fraud Unit. It is being prosecuted by Assistant United States Attorney Jeremy J. Kelley.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Taylor Thomas Rayne Sinclair, 23, of White Swan, Washington, was sentenced on one count of Assault with Intent to Commit Murder. Chief United States District Judge Stanley A. Bastian imposed a sentence of 168 months in federal prison to be followed by 3 years of supervised release, as well as restitution of $13,625.10.
According to court documents and information presented at the sentencing hearing, on the morning of November 19, 2022, Sinclair, who is an enrolled member of the Yakama tribe, entered the victim’s property through an open gate. The victim heard dogs barking and came outside. The victim didn’t recognize Sinclair and asked if he needed help. Sinclair pulled out a folding knife, ran up to the victim, and stabbed her several times, including in the face, abdomen, and hands. The victim and Sinclair wrestled for control of the knife. The victim was able to get ahold of the knife but at the same time, Sinclair put the victim in a chokehold. Sinclair eventually released the victim from the chokehold and the victim ran back inside the home. Sinclair attempted to follow, but the victim pushed Sinclair back outside and locked the door. The victim managed to call 911 with the help of her young child. The victim and her child ran into the bathroom and closed and locked the door. As the victim waited for help to arrive, she could hear windows being broken, loud banging noises, and Sinclair yelling inside the home.
Law enforcement arrived a short time later and arrested Sinclair. Investigators noticed two windows had been broken as well as the front door broken in and partially off the hinges. Investigators also located blood on the porch and around the home. The victim was taken to the hospital and treated for multiple stab wounds, including an orbital fracture and a collapsed lung.
“I commend the bravery of the victim in this case. What began as an offer of help to a stranger, unexpectedly escalated to an unprovoked, violent attack. The victim courageously fought off her attacker, then, despite having serious injuries, managed to call for help and get herself, and her young child, to safety inside a locked bathroom,” stated U.S. Attorney Waldref. “By working closely with our federal, tribal, and local law enforcement partners we will continue to hold those accountable who commit violent acts in tribal communities and work together to make Eastern Washington safer and stronger.”
“Horrifying is the only word that describes what the victim experienced at the hands of Mr. Sinclair,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Thankfully, she survived this vicious and unprovoked assault. Hopefully, she finds some comfort with the sentence delivered today.”
This case was investigated by Federal Bureau of Investigation, The Yakama Nation Tribal Police Department, and the Yakima County Sheriff’s Office. This case was prosecuted by Assistant United States Attorneys Michael Murphy and Courtney R. Pratten.
Richland, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Gerald Alan Nott, age 63, of Richland, Washington, was sentenced after pleading guilty to one count of Receipt of Child Pornography. United States District Judge Mary K. Dimke imposed a sentence of 180 months (15 years) imprisonment to be followed by a lifetime term of supervised release.
According to court documents and information presented at the sentencing hearing, between December of 2022 and March of 2023, a Southeast Regional Internet Crimes Against Children (SER-ICAC) detective developed information that Nott, who is a registered sex offender, was using the internet at his parent’s home in Richland, Washington to distribute child pornography. The more than 1600 image and video files depicted young children, including those approximately one to four years old, being sexually abused.
On March 16, 2023, detectives executed a search warrant at the home where Nott had accessed the internet. Nott told officers that he thought police might be coming to talk to him, so he attempted to delete the files containing child pornography from his tablet. Nott also admitted to hiding the tablet behind a cabinet. That same day, SER-ICAC officers executed a search warrant at Nott’s residence in Richland and seized a second tablet. A certified forensic examiner with SER-ICAC examined both tablets and located more than 100 video and image files of child pornography.
“This sentence sends a powerful reminder to Mr. Nott and others like him: Crimes that exploit children cannot, and will not be tolerated,” stated U.S. Attorney Waldref. “Mr. Nott ignored the conditions of his release and used the internet to view and distribute horrific depictions of young children being abused. However, thanks to the dedicated work of the Southeast Regional Internet Crimes Against Children Task Force and prosecutors from my office, we were able to hold Mr. Nott accountable and prevent him from further victimizing the most vulnerable among us.”
“HSI’s resolve to protect children from exploitation is unwavering,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “This sentencing is a critical reminder of our relentless pursuit of justice for the youngest and most vulnerable victims. Each image he possessed represents a child’s suffering, and our work is driven by a profound commitment to ensuring these children are safeguarded. We will continue to use every tool at our disposal to hold offenders accountable and prevent future abuse.”
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 Attorney’s 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.projectsafechildhood.gov
This case was investigated by the Southeast Regional ICAC Task Force, consisting of Homeland Security Investigations and the Richland and Kennewick Police Departments. This case was prosecuted by Assistant United States Attorney Laurel Holland.
Richland, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Lucas Daniel Murphy, age 38, was sentenced after pleading guilty to one count of Online Enticement of a Minor. United States District Judge Mary K. Dimke imposed a sentence of 240 months imprisonment to be followed by a lifetime of supervised release.
Judge Dimke called Murphy’s actions “ugly” and noted few offenses are more serious or cause more harm than this. Directly addressing the victim, Judge Dimke said: “Thank you for being here today. You are incredibly strong and brave to be here today. If you can be here today to stand up for yourself, you can do anything.”
According to court documents and information presented at the sentencing hearing, in August of 2021, Murphy met a 13-year-old minor using an online application. Despite knowing the victim was 22 years his junior, Murphy began communicating regularly with the victim on SnapChat. At first, Murphy and the victim discussed shared interests in music. Over time, the communications changed, and involved Murphy instructing the victim to engage in sex acts over live Snapchat video. He also directed the victim to send specific sexually explicit photos. Murphy expressed a desire to be with the victim, which culminated in a plan to travel to the victim’s location, pick up the victim and transport the victim back to Murphy’s home in New Mexico.
In December of 2021, the victim was staying with friends at a location in Kennewick, Washington. On or about December 18, 2021, Murphy drove from New Mexico to Kennewick, Washington, where he took the 13-year-old victim from a residential area. Murphy drove the victim to his residence in New Mexico. During the drive, Murphy provided the victim with alcohol and marijuana and sexually abused the victim.
The two remained at Murphy’s residence in New Mexico for several days. Murphy returned to work while the victim remained at Murphy’s residence. During this time, Murphy continued to sexually abuse the victim.
On December 22, 2021, Federal Bureau of Investigation agents and local New Mexico law enforcement officers and surrounded Murphy’s residence. The victim was rescued from the location and Murphy was taken into custody. The victim was taken to the hospital interviewed by a certified forensic interviewer. Investigators documented bruises on the victim’s neck and leg. Months later, when the victim was ready, Southeast Regional Internet Crimes Against Children investigators traveled to the victim’s location and conducted a painstaking interview, documenting the extent of Murphy’s abuse.
“As a parent, I am horrified by Mr. Murphy’s conduct. Mr. Murphy meticulously planned the abduction of his young victim and took steps to make it difficult for law enforcement to track his whereabouts. Mr. Murphy repeatedly physically and sexually abused his victim resulting in significant trauma for the victim and their family. While no sentence can replace the horrors the victim faced, hopefully, it will serve as an important step on a long road to healing,” stated U.S. Attorney Waldref. “I want to commend the excellent work done by the Kennewick Police Department in the initial steps of this case, as well as the stellar follow-up investigation undertaken by our federal and local partners in Washington and New Mexico.”
“The collaboration between our local and federal law enforcement agencies brought this victim home. Today, that victim stood before the Court and the community, addressed the harm the Defendant caused, and demonstrated that this harm will not define the victim’s life,” said Assistant United States Attorney Laurel Holland. “I am humbled by the strength of the victim and the victim’s family, and grateful for all of the community partners who enabled this outcome.”
“Child sex offenders' prey on the most vulnerable victims. While today’s sentencing cannot erase the harm inflicted upon the victim, I hope that it will serve as the first step towards closure,” said FBI-Albuquerque Special Agent in Charge Raul Bujanda. “The FBI and our law enforcement partners will never stop working to put predators who harm children behind bars. These are incredibly disturbing cases to investigate, but each time we're able to step in and protect a child victim from further sexual abuse, it's a good day.”
“Today’s sentencing reflects our unwavering commitment to justice and the protection of our community’s most vulnerable members,” said Richland Police Department Interim Chief, Craig Meidl. “The actions of this individual were heinous and will have lifelong impacts on the victim and her family. We remain dedicated to ensuring that perpetrators of such crimes are held accountable and that victims find the support they need to begin their healing process. Our thoughts are with the survivor and their family as they move forward from this traumatic experience.”
“This was a targeted assault on a child, trading away their innocence and safety for a lifetime of scars,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “It is my intent that HSI, alongside our partners in federal and local law enforcement will not only hold child predators like Murphy accountable for their crimes, but increase our methods of educating the public on ways to identify potential abusers lurking online.”
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 U.S. Attorneys’ Offices and 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 https://www.justice.gov/psc.
This case was investigated by the Kennewick Police Department, the Federal Bureau of Investigation, the Southeast Regional Internet Crimes Against Children Task Force, Homeland Security Investigations, the Valencia County Sheriff’s Office, and the Bernalillo County Sheriff's Office in New Mexico. This case was prosecuted by Assistant United States Attorney Laurel Holland.
A video statement from U.S. Attorney Waldref can be found here.
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Juan Pablo Carrillo-Nava, 46, was sentenced on one count of Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine. Chief United States District Judge Stanley A. Bastian imposed a sentence of 70 months in federal prison to be followed by 5 years of supervised release.
According to court documents and information presented at the sentencing hearing, the Drug Enforcement Administration (DEA) developed information that Carrillo-Nava was a drug runner for a drug trafficking organization based in Mexico and operating in Eastern Washington.
On August 13, 2020, investigators arranged a controlled purchase of methamphetamine from the organization. When agents went to the location where the drug transaction was supposed to take place, Carrillo-Nava had not yet arrived. After an extended period, Agents went to a second location where the drug organization had conducted drug transactions in the past. Agents observed a green Honda Accord Carrillo-Nava had used previously.
Agents requested a Spokane Police Department (SPD) marked patrol unit respond to the second location. An SPD unit responded and attempted to conduct a traffic stop. Instead of stopping, Carrillo-Nava sped off into a residential neighborhood, disregarding stop signs, and at times reaching speeds of 75 miles per hour in a 25-mile-per-hour zone.
Carrillo-Nava eventually crashed his vehicle into an oncoming vehicle, which propelled his vehicle into a chain link fence in the front yard of a Spokane home. Carillo-Nava then took off running, pursued by several bystanders. He was taken into custody a short time later by SPD and DEA. Agents executed a search warrant on Carrillo-Nava’s vehicle and located $28,200 in cash, almost two pounds of heroin, and more than a ½ pound of methamphetamine.
“Drug trafficking presents a serious danger to families, neighborhoods, and residents in our community. Mr. Carrillo-Nava attempted to avoid arrest by recklessly speeding through neighborhoods, ignoring traffic signs, and disregarding posted speed limits. Even after crashing his vehicle, Mr. Carillo-Nava attempted to escape responsibility by running from police,” stated U.S. Attorney Waldref. “Working with our federal, state, local and tribal partners, we will continue to target large-scale drug trafficking organizations, hold their members accountable, and keep our communities safe and strong.”
“Our communities are safer when those who disregard the safety of others, through drug trafficking and reckless and violent behavior, are held accountable,” said Ron Deist, Assistant Special Agent in Charge, DEA Spokane District Office.
This case was investigated by the Drug Enforcement Administration Task Force in both Spokane and North Idaho. The Spokane Police Department also participated in the investigation. The case was prosecuted by Assistant United States Attorney Caitlin Baunsgard.
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Bryan Wokal, 61, of Spokane, Washington, was sentenced on one count of Robbery Affecting Commerce. Chief United States District Judge Stanley A. Bastian imposed a sentence of 72 months in federal prison to be followed by 3 years of supervised release.
According to court documents and information disclosed at sentencing, on January 2, 2024, Wokal walked into the Kalispel Market on the Kalispel Indian Reservation in Airway Heights. Wokal approached the cashier, pulled out a gun, pointed it at the cashier, and demanded $400. When the cashier did not immediately respond, Wokal cocked the gun and repeated his demand. The cashier removed the money from the cash register and gave it to Wokal. Wokal then left the market. The next day, Wokal was arrested by the Spokane Police Department.
“Mr. Wokal’s armed robbery put employees and shoppers in grave danger and left the cashier with lasting trauma,” stated U.S. Attorney Waldref. “I am grateful for the quick work of the FBI, Kalispel Tribal Police, Spokane Police Department and Spokane Sheriff’s Office to identify Mr. Wokal and ensure he would be held accountable for the danger and harm he caused to the Kalispel Tribal Community.”
“The Kalispel Tribal Police Department is committed to ensuring the safety and security of our community,” said Kalispel Tribal Police Chief Rodney Schurger. “By working closely with the FBI, Spokane Police Department, and Spokane County Sheriff’s Office, we are combining resources and expertise to bring criminals to justice more swiftly and effectively.”
“The safety and security of our guests, Tribal Members, and Team Members continues to be our number one priority,” says Kalispel Tribal Council Vice Chair Curt Holmes. “We recognize that violent crime continues to escalate across the nation, as well as right here in our own communities. We are grateful for the quick efforts of our Kalispel Tribal Police Department, as well as the assistance of the FBI, Spokane Police Department and the Spokane Sheriff’s Office in making this arrest. We also appreciate the diligent work of the US Attorney’s Office in prosecuting offenders like Mr. Wokal to the fullest extent of the law.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
This case was investigated by the FBI, Kalispel Tribal Police, Spokane Police Department, and the Spokane County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Michael Ellis and Nowles Heinrich.
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Luke Michael Servas, a former public official for the Town Cusick, Washington, pleaded guilty to Bank Fraud in connection with embezzling Town funds. United States District Judge Thomas O. Rice accepted Servas’s guilty plea and scheduled a sentencing hearing for November 13, 2024, in Spokane, Washington.
According to the plea agreement and other court filings, Servas embezzled more than $195,000 while employed as the Town Clerk for the town of Cusick, Washington between October 2022 and March 2023. During that time period, Servas was also an elected member of the town council.
Like many cities and towns, Cusick residents elect a town council, which selects a town clerk. The clerk is responsible for managing Cusick’s finances and financial accounts. Cusick’s account also had two credit cards issued to make expenditures on behalf of the town: one issued to Cusick’s elected mayor, and one issued to Servas as town clerk.
Servas fraudulently and without authority used the mayor’s town credit card, as well as his own town credit card, to embezzle and transfer more than $190,000 in public town funds from Cusick’s bank account to PayPal accounts owned and controlled by Servas and his spouse, and to a cryptocurrency account owned and controlled by Servas.
In March of 2023, other town officials expressed concern that funds were missing from the town’s account. Servas contacted the Pend Oreille County Sheriff’s Office to report that between $150,000 and $200,000 had been stolen from the Town of Cusick’s operating bank account. Servas indicated that these funds were stolen using the mayor’s credit card account and falsely stated that only the mayor had access to the account. After making this report, Servas wrote a fraudulent $4,961 check from Cusick’s account to himself, forged the mayor’s signature as well as that of another town official, and cashed the check on or about March 20, 2023.
“Mr. Servas not only carried out a fraudulent scheme to rob a town of its financial resources, but when his colleagues noticed the money missing, Mr. Servas filed a report with law enforcement to hide his theft.” stated U.S. Attorney Waldref. “Mr. Servas took these actions while an elected public official with a moral duty and legal obligation to protect that money. Our communities trust elected officials to serve others, rather than to look after only their own self-interest. When elected officials abuse this trust by committing theft and lining their own pockets with taxpayer money, these officials devastate our communities and undermine our democratic system of government. I commend the exceptional work done by the FBI and the Washington State Auditor’s Office to root out the fraud. We will continue to work closely with our law enforcement partners to expose and prosecute public corruption, self-dealing, and fraud.”
“I’m sure a small town like Cusick could have used the nearly $200,000 Mr. Servas embezzled,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Even more disturbing, Mr. Servas served in a position of trust as the Town Clerk when he committed his fraud. Investigating the corruption of public officials remains one the FBI’s most important priorities.”
This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency, with investigative and logistical support from the Pend Oreille County Sheriff’s Office and the Washington State Auditor’s Office. This case is being prosecuted by Assistant United States Attorney Dan Fruchter.
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that a federal grand jury has indicted Kaydee Jean Baker and Beth Ann Hayes, both of Thurston County, Washington, for bank fraud in connection with the unauthorized use of a bank account belonging to Kalispel Tribe’s Northern Quest Resort & Casino.
The Indictment announced today charges Kaydee Jean Baker and Beth Ann Hayes, both of Thurston County, Washington, with ten counts of bank fraud. The Indictment alleges that Baker and Hayes ordered checks displaying a routing number and bank account number for a bank account that did not belong to them, but instead belonged to Kalispel Tribe’s Northern Quest Resort & Casino. The indictment alleges that Baker and Hayes then used the checks drawing from that account, attempting to use the funds in that account for their own financial gain. According to the indictment, Baker and Hayes wrote over $30,000 in checks fraudulently drawn on the Northern Quest Resort & Casino bank account.
“The integrity of our financial system is essential to keeping communities safe and strong,” said United States Attorney Waldref. “My office will continue to work closely with our federal, state, local, and Tribal law enforcement partners to hold fraudsters accountable when they attempt to abuse the financial system in order to line their own pockets.”
The fraud charges carry sentences of up to 30 years in federal prison as well as restitution for fraudulently-obtained funds. This case was investigated by the FBI and the Kalispell Tribal Police Department. This case is being prosecuted by Assistant United States Attorney Frieda K. Zimmerman.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Case No: 2:24-CR-8-TOR
Spokane, Washington - On August 7, 2024, a federal grand jury for the Eastern District of Washington returned a two-count indictment charging Jaimes Tin Aung with one count of Conspiracy to Commit International Parental Kidnapping, and one count of aiding and abetting International Parental Kidnapping. Aung made his first appearance in Federal Court on Friday, August 9, 2024.
According to the indictment, Jaimes Aung’s son, Aaron Aung, was supposed to travel to the Pullman Police Department for a custody exchange of the victim with the victim’s mother. Aaron Aung and the victim never arrived for the custody exchange. Instead, agents with the FBI and U.S Customs and Border Protection (CBP) obtained photos of a vehicle Aaron Aung was allegedly driving, which had crossed into Mexico on June 1, 2024, at the Andrade, California, Port of Entry. The vehicle was registered to Jaimes Aung.
The indictment further alleges that between May 31, 2024, and June 16, 2024, Jaimes Aung assisted Aaron Aung in avoiding law enforcement. According to the indictment, Jaimes and Aaron Aung exchanged coded and encrypted messages. The messages from Jaimes Aung allegedly warned Aaron Aung about the ongoing investigation and included suggestions on how to avoid detection.
“My office is committed to protecting the most vulnerable among us,” stated U.S. Attorney Waldref. “Law enforcement and my extraordinary team of dedicated prosecutors stand ready to pursue those who seek to harm children.”
This case is being investigated by the FBI. This case is being prosecuted by Assistant United States Attorneys Rebecca Perez and Michael J. Ellis.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Alexander Kosnicki, 46 of Spokane Valley, Washington, was sentenced on one count of Felon in Possession of a Firearm and one count of Possession with Intent to Distribute Fentanyl. Kosnicki was convicted of those crimes on February 13, 2024, following a jury trial. United States District Judge Thomas O. Rice imposed a sentence of 70 months in federal prison to be followed by 6 years of supervised release.
According to court documents and information disclosed at trial and sentencing, on the night of November 22, 2022, Kosnicki was sleeping in the lobby of an apartment building in downtown Spokane. Residents of the building alerted security.
Security guards searched Kosnicki and located a small amount of methamphetamine and fentanyl pills as well as a handgun in Kosnicki’s jacket pocket. Security then called Spokane Police. At the time Kosnicki entered the apartment building carrying these illicit items, Kosnicki had a prior federal conviction for Possession with Intent to Distribute Fentanyl and Felon in Possession of a Firearm out of the Western District of Washington and was not allowed to possess a firearm.
Spokane Police officers searched Kosnicki. During the search, officers located $1,147 in cash in Kosnicki’s right sock and located two large bags of fentanyl pills in Kosnicki’s left sock.
“Mr. Kosnicki illegally possessed a firearm and was distributing deadly fentanyl in our communities. His actions contributed to the growing epidemic of drug use in our society,” stated U.S. Attorney Waldref. “Our office has been prosecuting fentanyl cases vigorously as part of our ongoing efforts to build safer and stronger communities. Fentanyl is particularly lethal, and we are proactively working to prevent the tragedy it causes to Eastern Washington families on a daily basis.”
“Fentanyl and firearms are a lethal combination, and I am gratified that the DEA and our partners could hold Mr. Kosnicki accountable for his behavior,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “Our community is safer because of this sentence.”
A video statement from U.S. Attorney Waldref can be found here.
This case was investigated by the Drug Enforcement Administration and the Spokane Police Department. This case was prosecuted by Assistant United States Attorney Rebecca Perez.
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that William Oldham Mize pleaded guilty to conspiracy, tax fraud, and failing to appear at court proceedings. United States District Judge Thomas O. Rice accepted Mize’s guilty plea and scheduled a sentencing hearing for November 6, 2024, in Spokane, Washington.
According to the plea agreement and other court filings, Mize was the ringleader of a massive insurance fraud scheme to intentionally cause automobile and boat collisions as well as staged home “accidents” in order to file false and fraudulent insurance claims and collect the proceeds. According to court documents, the scheme took place between 2013 and 2018, involved numerous staged collisions in Washington and Nevada, and obtained more than $6 million, most of which was kept by Mize.
Mize originally appeared in federal court on his indictment on January 9, 2019. Following his initial appearance, he was released pending trial. In July 2019, Mize fled from supervision and became a fugitive, living under a number of false identities.
On November 28, 2023, the U.S. Marshals apprehended Mize in Jacksonville, Florida based on a lead that Mize, using a false identity, was attempting to sell a yacht in which was living in the Jacksonville area. Mize was then located and arrested at a marina in central Florida and transported to Eastern Washington, where he has remained in custody.
U.S. Attorney Waldref stated, “Mr. Mize attempted, but ultimately failed, to avoid the consequences of his fraudulent and dangerous schemes. Over the course of several years, Mr. Mize defrauded insurance companies out of millions of dollars by staging fake accidents that caused real, physical harm to his co-conspirators and others. These schemes greatly increase insurance premiums and costs for everyone, making it more expensive for ordinary Americans to own a car and to have reliable transportation for themselves and their families. I am grateful for the excellent investigative work by our law enforcement partners and prosecutors in my office, as well as the tireless dedication of the U.S. Marshals to locate and return Mr. Mize to the Eastern District, where he finally will be held accountable for the great harm caused by his fraudulent scheme.”
“This case demonstrates the dedication of the FBI, the U.S. Marshals, IRS Criminal Investigation, and all our law enforcement partners to hold fraudsters and fugitives accountable no matter how long the process takes or how far they run,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “Mr. Mize pleaded guilty today after a multi-year, multi-million-dollar scheme, followed by years of hiding from the law.”
“Preventing auto accidents requires communal effort, and safety is something we all strive for. Mr. Mize, on the other hand, chose to travel a different path,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS CI), Seattle Field Office. “Going on the run, Mr. Mize tried to escape the consequences of his actions. Today, however, is the end of the road, and Mr. Mize is being held accountable for his crimes.”
“The United States Marshals Service worked as one team with the IRS and the FBI in this case to relentlessly pursue this fugitive until he was apprehended, in spite of his resources and intent to avoid capture, stated Gavin K. Duffy, Chief Deputy United States Marshal for Eastern Washington. “While this case has garnered significant attention, the partnership and teamwork between local, state, and federal agencies occurs every day in Eastern Washington to maximize both benefit to our community and to ensure Rule of Law is maintained.”
The FBI, Internal Revenue Service, and U.S. Marshals Service investigated this case. Assistant United States Attorneys Dan Fruchter and Jeremy J. Kelley are prosecuting the case on behalf of the United States.
Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Thomas Andrew Webster, M.D., age 51, of Sylvania, Ohio, pleaded guilty to conspiring to accept kickbacks in connection with a fraudulent telemarketing and medical supply scheme throughout Washington and in other states. United States District Judge Mary K. Dimke imposed a sentence of 24 months in federal custody to be followed by 3 years of supervised release, as well as restitution of $839,566.44. In addition, Judge Dimke imposed a fine of $50,000.
The Medicare program provides health insurance coverage for elderly and disabled Americans. The Department of Defense’s TRICARE program provides health benefits to United States Armed Forces military personnel, military retirees, and their dependents. Medicare and TRICARE provide health insurance coverage for eligible health services, including, under certain conditions, for durable medical equipment. Durable medical equipment are supplies ordered by a health care provider for a patient’s everyday or extended use, such as oxygen equipment, wheelchairs, crutches, or blood testing strips for diabetics. For durable medical equipment to qualify for reimbursement, the durable medical equipment is required to be ordered by a physician who is treating the beneficiary for a specific illness or injury and is required to be part of the course of that treatment.
During the relevant time period, Dr. Webster lived in Olympia, Washington, and was a licensed physician in Washington. According to court documents and information presented at the sentencing hearing, between May 2021 and September 2023, Dr. Webster participated in a telemarketing scheme and conspiracy. A company identified as “Company A” obtained Medicare and TRICARE beneficiary information by using telemarketers to contact patients in Eastern Washington and elsewhere to obtain their personal and health information. Company A then used the information to create a fake medical record that falsely and fraudulently reflected doctor visits and treatment supposedly performed by Dr. Webster that did not exist, and fraudulent medical orders for durable medical equipment. Dr. Webster then signed the fraudulent medical documentation and durable medical equipment orders, which were then sold by Company A to companies that used the orders to falsely bill Medicare and TRICARE. Company A and Dr. Webster also falsely and fraudulently billed Medicare and TRICARE for the fictitious doctor visits and exams that did not take place.
Medicare and TRICARE paid more than $14.6 million for durable medical equipment fraudulently ordered by Dr. Webster for more than ten thousand beneficiaries in Eastern Washington and elsewhere, including beneficiaries who lacked the limb for which Defendant supposedly performed the exam and ordered the durable medical equipment, because it had been previously amputated. Dr. Webster also admitted to directly receiving at least $839,565 from Medicare and TRICARE for fraudulent doctor visits and exams that never took place. As part of the sentence, the court also ordered forfeiture of funds in Dr. Webster’s bank and investment accounts representing the proceeds of his criminal conduct, and ordered Dr. Webster to pay restitution to the Medicare and TRICARE programs.
“By placing his personal financial benefit ahead of his duty to patients, Dr. Webster violated the oath he took as a doctor and caused more than $14.6 million dollars to be lost from critical health care programs designed to care for elderly and disabled Americans, as well as for military servicemembers and their families,” stated U.S. Attorney Waldref. “Telemarketing schemes that target and exploit the elderly and our servicemembers 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.”
“Illegal kickback arrangements can corrupt the legitimate medical decision-making process and undermine the integrity of federal healthcare programs,” said Special Agent in Charge Steven J. Ryan with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Today’s sentence demonstrates the commitment of HHS-OIG and our law enforcement partners to hold those who exploit these programs for personal gain accountable.”
“Today’s sentencing is a clear signal that those who corrupt federal healthcare programs, including the Department of Defense’s TRICARE program, will be held accountable.” said Bryan D. Denny, Special Agent-in-Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “Dr. Webster’s greed siphoned off tax dollars meant to provide health care for members of the U.S. Military and their families. DCIS and our investigative partners will relentlessly pursue those who steal from the government at the expense of taxpayers, our nation’s warfighters, and their families.”
“I want to especially thank and commend the outstanding investigative work by our partners with HHS-OIG and DCIS,” continued U.S. Attorney Waldref. “Their skill and dogged determination throughout this complex investigation made this result possible. We will continue to work hand-in-glove with our law enforcement partners to hold fraudsters accountable.”
The case was investigated by HHS OIG’s Seattle Field Office and DCIS’ Western Field Office. Assistant United States Attorney Dan Fruchter prosecuted the case on behalf of the United States; Assistant United States Attorney Brian M. Donovan is handling the forfeiture action.
Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced Justin Leland has agreed to pay $224,620.88 to resolve allegations he participated in a kick-back scheme to bill Medicare for medically unnecessary durable medical equipment.
Medicare provides health insurance to elderly and disabled United States citizens. Medicare pays for covered health services, including durable medical equipment, under certain conditions. Durable medical equipment are supplies ordered by a health care provider for a patient’s everyday or extended use, such as oxygen equipment, wheelchairs, crutches or blood testing strips for diabetics. In order for durable medical equipment to be covered under Medicare, it must be ordered by a physician who is treating the beneficiary for a specific medical problem and must be used as part of the course of treatment for that specific medical problem.
According to court documents, in June of 2018, Leland registered US Professional Medical Supply LLC (USPMS) with the Washington Secretary of State. Leland also obtained a National Provider Identifier as a durable medical equipment and medical supply company and listed himself as the owner.
In September 2019, Leland submitted approximately 400 durable medical equipment billing claims to Medicare from USPMS, which all listed Leland as the provider and were ordered by doctors who solicited and received kickbacks in exchange for ordering the durable medical equipment. In total, Medicare paid out $112,310.44 for these claims.
During the investigation, Federal investigators learned patients received phone calls from telemarketers, provided brief statements to the callers, never actually saw or were examined by a provider, and received durable medical equipment that they did not actually need.
“This settlement puts durable medical equipment suppliers on notice that they will be held accountable if they attempt to defraud the United States,” stated U.S. Attorney Waldref. “These schemes compromise patient care and result in payment for services that are not medically necessary. Such services not only drive-up medical costs for everyone, but in some instances may even prove harmful to patients. My office is committed to stopping health care fraud, protecting the resources of the federal government, and protecting the well-being of patients.”
“Durable medical equipment businesses that participate in illegal kickback schemes to boost their profits undermine the public’s trust and jeopardize the integrity of the Medicare program," said Special Agent in Charge Steven J. Ryan with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement demonstrates HHS-OIG’s enduring commitment to work with our law enforcement partners to combat health care fraud and aggressively pursue those who exploit federal health care programs.”
The settlement was the result of an investigation conducted by the FBI, and the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office. Assistant United States Attorney Jeremey Kelley handled this matter on behalf of the United States.
Richland, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Sharte Dashon Kimble, age 32, has been sentenced after pleading guilty to conspiracy to Possession with Intent to Distribute 400 Grams or More of Fentanyl. Senior United States District Court Judge Edward F. Shea imposed a sentence of 165 months in federal custody. At the time of the offense, Kimble was on supervised release following a conviction on federal drug and firearms charges. As a penalty for the supervised release violation, Senior Judge Shea imposed a penalty of 25 months which will be served consecutively to the 165-month sentence imposed in this case.
According to court documents and information presented at the sentencing hearing, in June of 2023, the Missouri River Drug Task Force in Helena, Montana, developed information that Kimble was a large source of supply of illegal narcotics. Law enforcement arranged a controlled buy of fentanyl pills from Kimble at the Walmart in Kennewick, Washington.
On June 15, 2023, Kimble was identified as the driver of gray Mercedes E350 that was parked in the Walmart parking lot. As the controlled buy was underway, multiple law enforcement vehicles approached the Mercedes, with the occupants wearing marked vests and their emergency lights activated.
Kimble saw the units moving in and took off running towards Highway 395. Kimble tossed a bag of fentanyl pills and a cell phone away as he attempted to escape law enforcement. Investigators located the bag and phone. Inside the bag were two one-gallon-sized plastic bags that contained approximately 20,283 fentanyl pills.
Investigators searched the Mercedes and located a loaded Glock .380 caliber pistol that had been reported stolen, a loaded magazine, cocaine packed in small plastic bags, almost $40,000 in cash, more than 1,000 fentanyl pills, as well as receipt for a storage unit in Yakima, Washington.
Investigators searched the Yakima storage unit and located hundreds of rounds of ammunition, extended magazines, a Glock pistol, a Norinco rifle, a Colt. 22 rifle, a 2-pound brick of cocaine, and several vials of small blue pills.
“Our community is safer and stronger today because of Mr. Kimble’s sentence. Despite a prior conviction on similar charges, Mr. Kimble was undeterred and continued to supply large quantities of deadly fentanyl and other illegal narcotics, all while possessing stolen firearms. Additionally, when investigators moved in to take Mr. Kimble into custody, he attempted to escape putting members of the Tri-Cities community at risk,” stated U.S. Attorney Waldref. “Prosecutors in my office, working alongside our law enforcement partners, will continue to target those driving the fentanyl epidemic and hold them accountable.”
“This sentence is clearly warranted based on Mr. Kimble’s extensive and expansive illegal actions involving firearms and narcotics,” said ATF Seattle Special Agent in Charge Jonathan Blais. “This was not the first time ATF has investigated Mr. Kimble, in fact he was on federal probation when he was arrested for these crimes, and we hope this sentence makes him reflect on, and change, his behavior.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri River Drug Task Force, the Drug Enforcement Administration, and the Kennewick Police Department. This case was prosecuted by Assistant United States Attorneys Rebecca Perez and Stephanie Van Marter.
Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Aaron Aung was charged by criminal complaint on one count of International Parental Kidnapping. Aung was arraigned in federal court on August 2, 2024.
According to the complaint, on June 3, 2024, Aung was supposed to travel to the Pullman Police Department for a custody exchange of the victim with the victim’s mother. Aung and the victim never arrived for the custody exchange. Instead, agents with the FBI and U.S Customs and Border Protection (CBP) obtained photos of a vehicle Aung was allegedly driving, which had crossed into Mexico on June 1, 2024, at the Andrade, California, Port of Entry.
The complaint further alleges that on July 4, 2024, Aung, the victim, and Aung’s fiancé, Nadia Cole, were contacted by Mexican officials in Mexico. Cole later was deported from Mexico to the United States, while Aung and the victim remained in Mexico at that time. Three days later, on July 7, 2024, Aung and the victim were encountered by Mexican officials near the United States-Mexico border in Nogales, Mexico. Aung and the victim were then deported by Mexican officials to the port of entry near Nogales, Arizona, where they were presented to CBP officials. CBP then took custody of both Aung and the victim. CBP also detained Aung on an outstanding felony warrant issued out of Whitman County, Washington for custodial interference first degree.
“Children deserve to live in a world where they are safe, surrounded by adults who love and care for them,” stated U.S. Attorney Waldref. “Our office prioritizes offenses against our community’s youngest and most vulnerable victims and will continue to aggressively prosecute those who harm children.”
This case is being investigated by the FBI. This case is being prosecuted by Assistant United States Attorneys Rebecca Perez and Michael J. Ellis.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.