Court Records Establish That MultiCare Endangered Patients and Fraudulently Billed Taxpayers for Medically Unnecessary Spinal Surgeries. MultiCare’s Settlement Follows Federal and State Settlements with Providence Health & Services and Dr. Jason A. Dreyer in Related Actions Spokane, WA – The United States Attorney’s Office for the Eastern District of Washington today announced that MultiCare Health System (MultiCare), a Tacoma-based hospital and healthcare system that owns and operates MultiCare Deaconess Hospital (Deaconess) and MultiCare Rockwood Clinic in Spokane, will pay $3,728,000 to resolve federal and state allegations that it knowingly endangered patient safety and falsely and fraudulently billed Medicare, Medicaid, and other federal health care programs for spinal surgery procedures performed at Deaconess between 2019 and 2021, by Dr. Jason Dreyer, formerly a licensed physician and MultiCare neurosurgeon.This settlement with MultiCare comes after two years of successful federal litigation by the United States and the State of Washington,[1] and is part of six years of federal and state investigations, which resulted in a multi-million dollar settlement with Providence Health & Services (Dr. Dreyer’s previous employer) in 2022,[2] and a more than $1.1 million individual settlement with Dr. Dreyer in 2023, which resolved the allegations of the fraud committed while at MultiCare and a nine year exclusion of Dr. Dreyer from Medicare.[3]In this settlement, MultiCare made factual admissions regarding its conduct, agreeing to pay a total of $3.728 million, $1.6 million of which is restitution, due to the egregious nature of MultiCare’s violations of federal and state law as shown by its own admissions and detailed court records. .[4]  Based on MultiCare’s factual admissions and court records, the investigation and resulting litigation has shown that MultiCare hired, credentialed, and supervised Dr. Dreyer while MultiCare ignored and failed to take appropriate action on numerous red flags, warnings, and specific evidence of Dr. Dreyer’s fraud and endangerment of the public, all while increasing its own revenue with fraudulently obtained tax payer money.  Significantly, the court records reveal that, within months of Dr. Dreyer starting to operate on patients at MultiCare, two different physician assistants assigned at MultiCare to assist Dr. Dreyer in the operating room raised patient safety concerns directly to MultiCare management.  The first physically walked out of the operating room while Dr. Dreyer was performing surgery, out of fear of patient harm, and immediately complained to MultiCare management.  The second physician assistant also raised patient safety concerns to MultiCare management and resigned from MultiCare rather than continuing to work with Dr. Dreyer for fear of further patient endangerment. Court records show that MultiCare did not stop or curtail Dr. Dreyer’s surgeries based on the serious patient safety concerns of its own medical staff, or multiple other red flags.  MultiCare instead allowed Dr. Dreyer to perform a high volume of medically unnecessary complex spinal surgeries.  Despite knowledge of these concerns about Dr. Dreyer, MultiCare not only permitted Dr. Dreyer to continue performing surgeries, but further incentivized Dr. Dreyer to perform medically unnecessary surgeries quickly by tying his compensation directly to the number of surgeries he performed and their complexity. MultiCare continued to fraudulently bill various federal health care benefit programs for those surgeries.Several months after two physician assistants reported concerns about Dr. Dreyer, the United States Attorney’s Office directly informed MultiCare that it was investigating concerns that Dr. Dreyer had harmed patients, falsified diagnoses, and performed medically unnecessary surgeries, while working at Providence. The United States Attorney’s Office even supplied documents and evidence to support its concerns. Dr. Dreyer was still permitted to perform surgeries at MultiCare, including the surgery that initiated the present case. Dr. Dreyer was permitted to perform surgeries as a neurosurgeon at MultiCare with little restriction until, over MultiCare’s objection, the Washington State Department of Health summarily restricted Dr. Dreyer from conducting spinal surgeries.“As the voluminous court records of this case demonstrate, MultiCare had direct knowledge of the danger Dr. Dreyer posed to patients, including through reports made by its own medical staff, and later from explicit warnings from federal investigators,” said Pete Serrano, the First Assistant U.S. Attorney for the Eastern District of Washington.  “MultiCare nonetheless allowed Dr. Dreyer to operate on unsuspecting patients for nearly two years, generating thousands in additional revenue and putting profits before patient safety.  Today, thanks to years of comprehensive investigation and litigation, MultiCare has been held accountable for its role in defrauding the taxpayers and endangering some of the most vulnerable members of our community.”Court records show that MultiCare signed a prior settlement agreement in August of 2023 resolving these allegations, then backed out of the agreement, and then litigated the case for two years before resolving it with the settlement announced today. “Today’s settlement shows that no matter who you are, from an individual to a large corporation, if you commit fraud and choose to litigate with the United States rather than accept responsibility, you will be held accountable for your violations and you will pay more in the end,” said Serrano.“The alleged violations by MultiCare show a wanton disregard for ethics and the medical principle to do no harm,” Washington Attorney General Nick Brown said. “This settlement is a win for patient safety and protecting public dollars to get people necessary healthcare.”“Patients trust that the care that they receive from their health providers is medically necessary and in their best interest,” said Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “When providers perform medically unnecessary surgeries and bill federal health care programs including Medicare and Medicaid for them, they not only violate that trust but also exploit programs designed to protect vulnerable populations. HHS-OIG will continue to work closely with our law enforcement partners to hold accountable those who put their own profits over patient safety.”“Healthcare providers have a fundamental duty to protect the well-being of their patients, and the Defense Criminal Investigative Service will work tirelessly to ensure the health and safety of our service members and their families,” said John Helsing, Special Agent-in-Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Western Field Office.  “This settlement concludes an intensive multi-year investigation and underscores our commitment to holding providers accountable for putting financial gain over patient safety.”“We will continue to hold accountable those who prioritize profits at the expense of the health and safety of vulnerable patients,” said Special Agent in Charge Derek M. Holt of the U.S. Office of Personnel Management Office of the Inspector General. “We applaud our law enforcement partners and colleagues at the Department of Justice for their dedicated work to protect the welfare of the millions of Americans who rely on our federal health care programs, including the FEHBP.”“This settlement highlights our steadfast commitment to ensuring high-quality healthcare for veterans,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG is grateful for the support of the U.S. Attorney’s Office and our law enforcement partners in this case.”“This is the culmination of a multi-year, multi-agency, collaborative effort to fight egregious health care fraud directly impacting patient safety in Eastern Washington.  For years Dr. Dreyer, and both MultiCare and Providence, the hospitals that employed him and unleashed him on an unsuspecting public, endangered and harmed our friends and neighbors while lining their own pockets with taxpayer money,” said First Assistant Serrano.  “We could not have held this individual accountable, nor the hospitals that knowingly profited from the fraud, without a dedicated multi-agency team. It is that team that has forced those responsible to pay tens of millions of dollars, stopped Dr. Dreyer from being able to continue harming patients, and that brought the truth of what happened out from the corporate shadows and into the light of day. I’m grateful for the close collaboration we have had with our partners at the Washington Medicaid Fraud Control Division, the Department of Health and Human Services Office of Inspector General, the Office of Personnel Management Office of Inspector General, the Defense Criminal Investigative Service, and the U.S. Department of Veterans Affairs Office of Inspector General,” continued First Assistant Serrano. This court case began in April 2022, when a former patient of Dr. Dreyer’s at MultiCare, Dr. Deannette Palmer, filed a qui tam complaint under seal in the U.S. District Court for the Eastern District of Washington.[5]  The joint investigation and litigation was conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office; the U.S. Department of Veterans Affairs, Office of Inspector General, Spokane Resident Office; the Office of Personnel Management, Office of Inspector General, Seattle Field Office; the Defense Criminal Investigative Service, Seattle Field Office; and the State of Washington Attorney General’s Medicaid Fraud Control Division.  Assistant United States Attorneys Tyler H.L. Tornabene and Derek Taylor and health care fraud contractor Echo Fatsis of the Eastern District of Washington handled this matter for the United States.  Assistant Attorney Generals Rachel Sterett and Adam McGerty of the Washington State Attorney General’s Office handled this matter for Washington. Settlement Agreement2:22-cv-00068-SAB[1] On January 26, 2024, the United States and the State of Washington filed their Complaint-in-Intervention. United States and State of Washington File False Claims Act Complaint Against MultiCare for Knowingly Endangering Patients and Fraudulently Billing for Spinal Surgery Procedures, U.S. Dept. Just. (Jan. 26, 2024), https://www.justice.gov/usao-edwa/pr/united-states-and-state-washington-file-false-claims-act-complaint-against-multicare[2] Providence Health & Services Agrees to Pay $22.7 Million to Resolve Liability From Medically Unnecessary Neurosurgery Procedures at Providence St. Mary’s Medical Center, U.S. Dept. Just. (Apr. 12, 2022), https://www.justice.gov/usao-edwa/pr/providence-health-services-agrees-pay-227-million-resolve-liability-medically[3] Former Physician to Pay More than $1.1 Million to Resolve Allegations He Performed Medically Unnecessary Procedures, U.S. Dept. Just. (Apr. 24, 2023), https://www.justice.gov/usao-edwa/pr/former-physician-pay-more-11-million-resolve-allegations-he-performed-medically[4] Due to the voluminous nature of the referenced court records below, this press release includes hyperlinks to the specific court records relied upon. The primary court records referred to are found at ECF No. 16, ECF No. 64, and ECF No. 71. [5]When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act generally allows the relator to share in any recovery.  In the settlement agreement announced today, the relator, Dr. Palmer, will receive 17% of the settlement amount, $633,760.  Dr. Palmer was represented by the Gilbert Law Firm of Spokane.  In addition to receiving a share of the settlement amount, relators are also entitled to have all of their attorney fees and costs in the action paid by the defendant in successful False Claims Act qui tam case like this one. 

Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, joined the Spokane legal community, area law enforcement, and the Hyslop family in mourning the death of former U.S. Attorney William D. Hyslop, who passed away on September 11, 2022. Mr. Hyslop is the only person to serve two separate terms as the United States Attorney for the Eastern District of Washington. In 1991, he was appointed by President George H.W. Bush. Twenty-eight years later, Mr. Hyslop again was appointed to lead the United States Attorney’s Office, serving in that position until early 2021.

Mr. Hyslop grew up in Spokane and devoted significant time to the Spokane community. He attended Shadle Park High School, graduated from Washington State University, and attended the Gonzaga School of Law. His voluntary activities included, among other things, serving as the co-chair of the effort to remodel Lewis and Clark High School and as the vice chair of the Use of Force Commission, which was formed to implement changes to police training and procedure.

For more than 40 years, Mr. Hyslop practiced law in Washington State, serving as the President of the Washington State Bar Association and working as a principle at the Spokane law firm of Lukins & Annis. While Mr. Hyslop greatly enjoyed his career in private practice, he remarked that “serving our great Country as the United Sates Attorney has been the highest honor and most fulfilling duty of my professional career.”

U.S. Attorney Waldref, who succeeded Mr. Hyslop as the Chief Federal Law Enforcement Officer in Eastern Washington, stated, “We were saddened to learn of Bill’s passing, and our hearts go out to his wife, two children, and grandchildren. Bill was a lifelong friend to the U.S. Attorney’s Office and a dedicated public servant. I was honored to serve with Bill, and I was impressed with his passion for serving the Spokane community. We will miss him greatly.”

Timothy J. Ohms, an Assistant United States Attorney who served under Mr. Hyslop, expressed his gratitude for Mr. Hyslop’s leadership: “Bill absolutely loved being a lawyer. He was passionate about the law and government service. I had the privilege of serving with Bill when he was a new U.S. Attorney in the early 1990s and again when Bill was reappointed in 2019. Bill was a thoughtful leader, who sought to achieve a just result in each and every case.”

Earl A. Hicks, who has served as an Assistant United States Attorney in Spokane for more than forty years, stated, “It was an honor to work with Bill during both of his appointments as the Chief Law Enforcement Officer in the Eastern District. He was a strong leader, who devoted his career to serving others. Bill was particularly good at working with law enforcement – bringing together federal, state, tribal, and local leaders to address difficult issues and serving side by side with law  enforcement to keep Eastern Washington safe. Our community will surely mourn his loss.”

At the time of Mr. Hyslop’s resignation as the United State Attorney in 2021, Spokane Police Chief Craig Meidl stated, “U.S. Attorney Hyslop has been a constant partner with SPD in our efforts to keep Spokane the safe community that we all long to live in and raise our families. His engagement with local law enforcement, and commitment to safety first through prevention, education and enforcement, is second to none. We honor his commitment to justice through compassion and accountability, with the needs of the community being his priority.” Upon learning of Mr. Hyslop’s passing, Chief Meidl added, “Bill was thoughtful and reflective in how he approached community safety, an issue that was close to his heart. He closely partnered with the Spokane Police Department on many different programs, including fentanyl awareness and community engagement. He was a mentor and friend, and his passing will leave a gap that cannot be filled. I will miss him greatly.”

In February 2021, as he completed his service as the United States Attorney, Mr. Hyslop stated, “I intend to work to the last day on behalf of the people of Eastern Washington.” He then added, “I want to continue to do all I can to advocate for law enforcement and the hard work they do for us every day to keep us safe.” Mr. Hyslop was true to his word. Following his service as the United State Attorney, Mr. Hyslop became a founding board member of the Spokane Alliance for Fentanyl Education (“SAFE”). In his role at SAFE, Mr. Hyslop continued to work closely with state and federal law enforcement to help the community to better understand the significance and danger of fentanyl in Eastern Washington.

Mr. Hyslop will be sorely missed by the law enforcement community, especially those in the U.S. Attorney’s Office, who served alongside Mr. Hyslop at various points over the past three decades.

Spokane, Washington – Dr. Jacqueline Thomas, N.D., an East Wenatchee-based naturopathic doctor, and Dr. Rebecka Hoppins, an, Edmonds-based naturopathic doctor, have each agreed to pay $16,500 to resolve allegations under the Controlled Substances Act that they improperly prescribed controlled substances. The Controlled Substances Act regulates certain drugs deemed to pose a risk of abuse and dependence. To protect public safety and prevent misuse and diversion, the Act requires practitioners to register with the Drug Enforcement Administration (“DEA”) to prescribe these controlled substances.

During the relevant time period, Dr. Thomas and Dr. Hoppins were both naturopathic doctors licensed and practicing in the State of Washington. Under state and federal law, as naturopathic doctor, Dr. Thomas and Dr. Hoppins were only authorized to prescribe two types of controlled substances: codeine and testosterone products. Nonetheless, in the settlement agreement between the United States and Dr. Thomas, Dr. Thomas admitted to issuing 110 prescriptions for controlled substances that she was not licensed to prescribe between December 2016 and September 2021. These included the narcotic opioid tramadol; the sleep aids zolpidem (often sold under the brand name Ambien) and eszopiclone (often sold under the brand name Lunesta); the sedative pregabalin (sometimes sold under the brand name Lyrica); and the diet drug phentermine. Similarly, in the settlement agreement between Dr. Hoppins and the United States, Dr. Hoppins admitted to issuing 110 invalid prescriptions for controlled substances between 2017 and 2022, including the benzodiazepine alprazolam; the narcotic opioids hydrocodone and tramadol; and the sleep aids eszopiclone (commonly prescribed under the brand name Lunesta) and zopidem (often sold under the brand name Ambien).

The settlement agreement also further sets forth that both doctors ceased their improper prescribing practices after being contacted by the DEA. Dr. Hoppins voluntarily surrendered her DEA registration and implemented additional controls to ensure appropriate prescribing going forward, while Dr. Thomas entered into a separate compliance agreement with DEA to submit regular prescribing logs and to undertake additional corrective actions to ensure that this conduct does not recur.

“I am relieved that it does not appear anyone was seriously harmed by medications improperly prescribed by these practitioners, and I commend both for admitting their past conduct and committing to strict compliance going forward. But when a healthcare practitioner prescribes controlled substances that she is not licensed or qualified to prescribe, the public is placed at serious risk of potentially dangerous side effects, drug interactions, and contraindications,” said Vanessa R. Waldref, United States Attorney for the Eastern District of Washington. “This resolution demonstrates our strong commitment to protecting public health and to keeping our communities strong and safe. In particular, I commend the excellent investigative work conducted by DEA’s Diversion Group, and the Department of Health and Human Services Office of Inspector General. We will continue to work with our law enforcement partners to hold health care practitioners accountable.”

“The careless and irresponsible prescribing habits of Dr. Hoppins and Dr. Thomas are a violation of federal law and in serious breach of their naturopathic license, presenting a clear and present danger to our nation’s health, safety and security,” said Frank A. Tarentino III, Special Agent in Charge, DEA Seattle Field Division. “Although regretful and conciliatory, the behavior of these medical professionals significantly contributes to the many complexities fueling the opioid epidemic and endangering the citizens of Washington. We will continue to work with our local, state and federal law enforcement partners in the opioid and overdose prevention awareness campaign and relentless pursuit of all those involved in the trafficking of opioids.”

These are the latest in a series of settlements the U.S. Attorney’s Office has announced with naturopaths for improperly prescribing controlled substances. In November 2021, Dr. Christopher M. Valley, a Spokane-based naturopath, agreed to pay $47,700 to resolve his liability under the Controlled Substances Act, while Dr. Judith Caporiccio, a Richland naturopath, entered into a $70,096 settlement resolving her liability in February 2022.

The settlement was the result of a joint investigation conducted by DEA’s Seattle Field Office, Diversion Group, the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office, and the U.S. Attorney’s Office for the Eastern District of Washington. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene handled this matter on behalf of the United States.

final_hoppins_settlement_agmt_fully_executed.pdf

fully_executed_thomas_settlement_agreement.pdf

Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Martel Chavez-Mendoza, age 40, a resident of Yakima, Washington, was sentenced after having pleaded guilty on August 21, 2019, to distributing over 500 grams of methamphetamine. United States District Judge Stanley A. Bastian sentenced Chavez-Mendoza to a fourteen-year term of imprisonment, to be followed by a five-year term of court supervision after he is released from federal prison.

According to information disclosed during court proceedings, law enforcement received information that Chavez-Mendoza was selling methamphetamine and using a location near Sunnyside, Washington, to convert the methamphetamine from liquid to crystal form. During its investigation, the United States Drug Enforcement Administration (“DEA”) determined Chavez-Mendoza distributed a kilogram of methamphetamine to another individual. While conducting surveillance, DEA also observed Chavez-Mendoza and another individual purchasing acetone (commonly used to crystallize methamphetamine) and transporting it to a garage near Sunnyside.

As a result, DEA obtained warrants to search Chavez-Mendoza’s residence, vehicle, and another location. Investigators seized ninety pounds (approximately 44 kilograms) of methamphetamine and two pounds of heroin from Chavez-Mendoza’s vehicle. While searching Chavez-Mendoza’s residence, DEA seized firearms, drug ledgers and over $50,000 in U.S. currency. Investigators also found the remnants of a large-scale methamphetamine crystallization operation at a third location.

United States Attorney Hyslop said, “Ninety-pounds of methamphetamine is the largest single drug seizure in Yakima County in years. Taking this much meth off the streets is a great victory. Nonetheless, illegal drugs should be of significant concern to the community as they are to all law enforcement. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the DEA and Yakima Police Department who investigated this case. The sentence imposed by the court removes a large-scale drug trafficker from our community and sends a clear message to others who may choose to engage in such criminal activity.”

This case was investigated by the Yakima Resident Office of the U.S. Drug Enforcement Administration and the Yakima Police Department. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.

Richland, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a grand jury returned an Indictment charging Hanford Site Subcontractor BNL Technical Services, LLC (BNL) and its owner, Wilson Pershing Stevenson III, age 44, of Nashville, Tennessee, with eleven counts of fraudulently obtaining more than $1.4 million in COVID-19 relief funding intended for struggling businesses. The charges in the Indictment are the most recent announced by the Eastern Washington COVID-19 Fraud Strike Force, which was created in 2022 to combat fraud against COVID-19 relief programs in Eastern 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 government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.

“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 COVID-19 Fraud Strike Force because it is critical to the strength and safety of our community in Eastern Washington that we all work together to combat pandemic-related fraud. The Strike Force is one way to ensure that limited resources are provided to deserving local businesses that provide vital services for our communities.”

In February 2022, 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, U.S. Department of Veterans Affairs OIG, Department of Homeland Security OIG, Air Force Office of Special Investigations, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, convictions, and civil penalties, and have returned millions of dollars in fraudulently-obtained funds to the public.

Between 2020 and 2021, BNL provided contract labor services to Hanford Site prime contractors. As alleged in the Indictment, BNL’s labor costs and payroll continued to be paid by DOE throughout the pandemic, including when BNL employees were not able to physically work at the site and instead were teleworking or simply home in “ready” status. The Indictment alleges that Stevenson III, on behalf of BNL, nonetheless fraudulently sought and obtained more than $1.3 million in PPP funding for these employees despite their pay and benefits already being covered by DOE contract funds and other federal sources. The Indictment further alleges that Stevenson III transferred nearly all of the fraudulently-obtained CARES Act funding to himself and his family, including to a family trust, to pay off personal debts, and to personal accounts for himself and his wife. The Indictment alleges that Stevenson III then fraudulently and improperly sought and obtained forgiveness for more than $1.3 million in PPP funds by falsely representing that they had been used for payroll and other eligible business expenses.

The fraud charges carry maximum sentences of up to 30 years in federal prison.

This case was investigated by the Department of Energy, Office of Inspector General, Richland Field Office, the Small Business Administration, Office of Inspector General, and the Strike Force. Assistant United States Attorneys Tyler H.L. Tornabene and Dan Fruchter are prosecuting the case on behalf of the United States.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

United States v. Wilson Pershing Stevenson III et al., Case No: 4:23-cr-06014-MKD

Spokane, Washington - Today marks the final day of service for one of Eastern Washington’s longest-tenured federal prosecutors. Over the past thirty-three years, Assistant United States Attorney (AUSA) Timothy J. Ohms has served with distinction as a trial attorney and mentor within the United States Attorney’s Office. He is an expert in complex cases involving mental illness, international affairs/extradition, natural and cultural resource crimes, and violent crime. He was also one of the very first Assistant United States Attorneys in Eastern Washington to file cyberstalking charges.AUSA Ohms prosecuted several significant drug trafficking cases as well as violent crime cases arising in Eastern Washington. He also was at the forefront of prosecuting cases involving wildlife and Native American artifacts. Over the course of his career, AUSA Ohms tried more than forty cases to a verdict and argued eighty-six cases in the Ninth Circuit Court of Appeals.  Below are some highlights from AUSA’s tenure in the Eastern District of Washington:In 1992, AUSA Ohms and former AUSA Rolf Tangvald successfully prosecuted Barbara Fraley and Phil W. Champagne in connection with federal counterfeiting charges.  Through the investigation into Fraley, authorities learned that Champagne had staged his death in the Olympia area in the early 1980s to collect on a $1.5 million insurance policy.  After Champagne’s family collected on the insurance payout, he assumed the identity of Harold Richard Stegeman until his true identity was discovered during the investigation, prosecution, and trial of Fraley. The investigation began with the passing of a single counterfeit federal reserve note by Fraley at what was then a Perkins Restaurant in Ritzville. The case was the subject of a 1995 book by Burl Barer.In 1995, AUSA Ohms was a member of the prosecutorial team in United States v. Antero Carreno. The case was part of a larger investigation of organized drug trafficking in Northcentral Washington. Carreno ultimately pled guilty and stipulated to responsibility for smuggling 100 kilograms of cocaine into Canada.In 2001, AUSA Ohms was the trial attorney in United States v. John Calvert. Based on the evidence presented at trial, Calvert had been hired to retaliate against an elderly resident of Spokane who had testified in another federal case. In June of 1998, Calvert traveled to Spokane from Port Angeles with a co-conspirator. The co-conspirator entered the victim’s home and bound the victim and victim’s wife. The victim was able to break free, access a handgun, and shoot and kill the co-conspirator.  The victim was shot and injured in the exchange. Calvert was convicted on all counts charged against him and received a lengthy prison sentence.In 2002, AUSA Ohms led an investigation of crack cocaine distribution by members of the Rolling 20s Crips street gang in the Browne’s Addition neighborhood of Spokane. Members of the gang had taken over a large number of units at what was then the Casa Grande apartment complex. The drug distribution fueled a large amount of collateral criminal conduct in the area. The investigation involved the simultaneous service of 23 search warrants at the apartment complex and led to the conviction of 15 people involved in the criminal enterprise.In 2010, AUSA Ohms led the prosecution team in United States v. Clarence Stensgar, wherein Stensgar was convicted of raping two women on the Colville Indian Reservation.  For this pattern of sexual abuse, Stensgar was sentence to more than 10 years in federal prison.In 2011, AUSA Ohms and his trial partner, AUSA Tyler Tornabene, obtained a guilty verdict against Ricky S. Wahchumwah and Victoria Jim, who were convicted at trial for selling bald and golden eagle parts in violation of the Lacey Act.  Wahchumwah, Jim, and other co-defendants had been illegally poaching bald and golden eagles by using horse and deer carcasses for bait. The tail feathers, flight feathers, and plumes were removed from the eagles and offered for sale. Evidence in the case revealed that the total number of eagles killed as part of the criminal activity exceeded fifty.AUSA Ohms prosecuted the “Twisp Trio” in 2012, for violating the Endangered Species Act.  The charges related to the unlawful killing of endangered gray wolves near Twisp, Washington. The investigation began when a resident of the area attempted to ship a fresh wolf hide to Canada using a false description of the shipment and a false name. The shipper refused the package because it was draining blood.   In April 2014, AUSA Ohms prevailed in the Ninth Circuit Court of Appeals in United States v. Gillenwater, a case involving the transmission of threatening communications through the United States mail. AUSA Ohms argued the case before retired Supreme Court Justice Sandra Day O’Connor, who was sitting by designation on the case. Justice O’Connor wrote the opinion affirming the government’s position on appeal.In 2015, AUSA Ohms was the trial attorney in United States v. Cardenas, involving the possession of methamphetamine in conjunction with the unlawful possession of a firearm and an explosive device by a felon and in furtherance of a drug trafficking crime. The case stemmed from an incident on the lower South Hill in Spokane on April 26, 2012, in which Cardenas was shot during an exchange of gunfire with an unidentified person. The stolen firearm used by Cardenas was found on a woman who was attempting to drive Cardenas to the hospital. The evidence included bullets that were lodged in a neighboring home. Cardenas was convicted on all counts and sentenced to over 20 years in custody.  AUSA Ohms led the prosecution team in the 2015 trial of Jason C. Youker, who orchestrated a conspiracy to distribute methamphetamine and heroin from a private compound located on Gold Mountain near Republic, Washington. Evidence at trial established that Youker used the compound to cut and package heroin and methamphetamine and then buried these drugs on the compound. Youker would disclose the locations of heroin and methamphetamine to subordinates or customers by text message. Youker was found guilty of more than thirty criminal counts that included the unlawful possession of firearms and the use of a communication facility in the commission of a drug felony. Youker was later sentenced to twenty years in federal prison.In 2018, AUSA Ohms and then law clerk Emily Sauvageau won the case of United States v. Odell Kinard.  Just over a month prior, AUSA Ohms had volunteered to take over the drug-trafficking conspiracy case, which arose out of a Title III wiretap investigation.  The jury stayed out less than two hours before returning verdicts of guilty on all 12 counts.AUSA Ohms and his co-counsel, Russell E. Smoot obtained a conviction against Rio A. Mirabal for the 2021 arson of St. Charles Parrish and School in Spokane, Washington. Mirabal also was ordered to pay nearly $5 million in restitution for the damage caused by the fire.In 2023, AUSA Ohms served on the trial team with AUSA Michael J. Ellis in United States vs. Tainewasher. The case involved a toddler on the Yakama Indian Reservation who died from exposure to fentanyl.AUSA Ohms, who also served as a Special Deputy Prosecuting Attorney in Stevens County, played a critical role in bringing first-degree murder charges against Charles Lloyd Tatom in connection with the 1997 deaths of Marlene and Cassie Emmerson. For approximately two decades, AUSA Ohms and AUSA Earl Hicks worked together on a parallel conspiracy investigation involving an outlaw motorcycle club community in the Colville area. Charges in the case were filed just over a week ago.During his time with the Department of Justice, AUSA Ohms served on a detail to Romania as a Resident Legal Advisor. During his time overseas, AUSA Ohms represented DOJ’s Office of Overseas Prosecutorial Development, working with the Romanian Minister of Justice, judges, prosecutors, and other members of the criminal justice on matters of international priority, including human trafficking, counter terrorism, internal corruption, and transnational organized crime. During his four years in Romania, AUSA Ohms worked tirelessly to assist Romanian authorities to improve the efficiency and fairness of the criminal justice system.Throughout his career, AUSA Ohms served as a mentor to younger AUSAs – helping them navigate the courtroom and teaching them how to present a federal case. Ohms also played a key role in the office’s law student intern program, investing countless hours in the interview process and mentoring the interns accepted into the program. AUSA Ohm’s involvement and dedication to mentoring during his DOJ tenure has been invaluable both for the Eastern District of Washington and nationwide.  Many of the more than 100 law clerks AUSA Ohms mentored have become prosecutors, including several who serve as Assistant United States Attorneys and DOJ Trial Attorneys across the United States.“Tim’s advocacy on behalf of the people of Eastern Washington is second-to-none. Whenever there is a sensitive, high-profile, complex, or challenging case, Tim is the one to handle it,” stated U.S. Attorney Waldref. “Tim did not shy away from hard cases. He has a passion and talent for telling the story of the victim by ensuring their voice is heard and understood in the courtroom. While we will miss Tim, his legacy will live on through the lives that he has touched over his storied 33-year career.”First Assistant United States Attorney Richard R. Barker, stated, “Tim played a key role in recruiting me to the Eastern District of Washington, and he served as my mentor after I joined the office. I will forever be grateful for his example of what it means to be an AUSA – to always seek justice, to protect our community, and to make the right decisions, even when no one is looking. The U.S. Attorney’s Office for the Eastern District of Washington is a better place because of Tim Ohm’s Service.”“Tim Ohms is an exceptional lawyer, and it has been my honor and privilege to serve with him for the past thirty-three years,” stated AUSA Earl A. Hicks. “He is one of our most seasoned prosecutors. Whenever he was in trial, I would become entranced by Tim’s incredible opening statements.”   AUSA Ohms graduated from Western Washington University with a degree in English and Classical Greek. He received his J.D. from Seattle University School of Law in 1985 and a Masters of Fine Arts from Eastern Washington University in 2003 while also serving as an AUSA. After graduating from law school, AUSA Ohms worked in private practice in Clarkson before becoming a Deputy Prosecuting Attorney in Asotin County, Washington. In 1988, Ohms was appointed the Asotin County Prosecutor, where he served until joining the U.S. Attorney’s Office in October of 1991. 

Defendant Sentenced in the Largest-Ever Criminal Fraud Scheme in the Eastern District of Washington

Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Cody Allen Easterday, age 51, of Mesa, Washington, was sentenced by Chief District Judge Stanley A. Bastian to serve 132-months in federal prison for defrauding Tyson Foods Inc. (Tyson Foods) and another company out of more than $244 million by charging them for approximately 265,000 head of cattle that did not exist. Easterday entered into a guilty plea on March 31, 2021 to wire fraud for his $244 million “ghost cattle” scam, which is one of the largest-ever fraud schemes in the Eastern District of Washington.

At Easterday’s sentencing, Chief Judge Bastian remarked, this case involves “the biggest theft or fraud I’ve seen in my career – and the biggest I ever hope to see.” Chief Judge Bastian further remarked to Easterday that “you destroyed” the very “empire you spent so much time building. It all came to a collapse because of what you have done.” Chief Judge Bastian ordered Easterday to pay $244,031,132 in restitution, subject to offsets Easterday already paid, and imposed a three-year period of supervised release after Easterday is released from federal prison.

According to court documents and information disclosed during court proceedings, Easterday and the business he led, Easterday Ranches Inc., entered into agreements with Tyson Foods and another company (collectively the Victim Companies), whereby Easterday Ranches agreed to purchase and feed cattle on behalf of the Victim Companies. Under these agreements, the Victim Companies advanced Easterday Ranches the costs of buying and raising the cattle. After the cattle were slaughtered and sold at market price, Easterday Ranches would repay the costs advanced – plus interest and certain other costs. Easterday Ranches would then keep as profit the amount the sale price exceeded what was repaid to the Victim Companies.

Over a period of approximately four years, however, Easterday and his company collected hundreds of millions of dollars from the Victim Companies for more than a quarter million heads of cattle that Easterday and Easterday Ranches never purchased, raised, or fed. The fact is, none of these cattle ever existed; yet, Easterday and his company collected approximately $244 million for the purported costs of purchasing and raising these 265,000 “ghost cattle.”

As set forth in court filings, Easterday used most of the fraud proceeds to cover approximately $200 million in losses Easterday incurred from commodity futures trading on behalf of Easterday Ranches. In connection with these losses, Easterday also defrauded the CME Group Inc. (CME), which operates the world’s largest financial derivatives exchange, by submitting false paperwork, thereby exempting Easterday Ranches from certain position limits in live cattle futures contracts.The remainder of the $244 million Easterday stole from the Victim Companies went toward Easterday’s personal use and for the benefit of the Easterday farming empire – an empire that, by 2020, included more than 22,000 acres of farmland, 150 employees, revenues of over $250,000,000, and even a private plane and hangar.

“The Criminal Division is committed to holding those who carry out fraudulent schemes accountable, especially those that are complex, long-running, and seriously affect our nation’s food industry and commodities market,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.

U.S. Attorney Waldref stated, “No one is above the law. Mr. Easterday amassed significant personal wealth, yet, he wanted more, so he defrauded his victims of nearly a quarter billion dollars by charging for cattle that never existed.” She continued, “But for the combined and incredible efforts of our law enforcement team, today’s sentence and the $240,000,00- restitution award – one of the largest in our District’s history – would not have been possible. Fraud has a debilitating impact on society by draining our communities’ limited resources. Accordingly, we will continue to prosecute fraudsters to the fullest extent so we can keep our communities safe and strong in Washington State and throughout our great Nation.”

Shortly after Easterday’s massive fraud was uncovered, Easterday Ranches and another of his companies, Easterday Farms, Inc., went into bankruptcy in the matter In re Easterday Ranches, Inc. et al., No. 21-00141-11 (Bankr. E.D. Wa.). Over the following year and a half, Easterday’s companies and their assets, including large amounts of real property, heavy farm equipment, and even aircraft, were liquidated in one of the largest bankruptcy cases in Eastern Washington history. Through the bankruptcy proceedings, the Victim Companies were able to recover approximately $65 million.

“The scale and brazenness of Mr. Easterday’s fraud is immense,” said Assistant United States Attorney Brian M. Donovan, who handled restitution and bankruptcy proceedings on behalf of the United States. “The amount he stole – nearly a quarter of a billion dollars – would have funded the combined police, courts, and fire department budget of Yakima, which is a city of nearly 100,000 people, for more than four years. Mr. Easterday’s greed destroyed his family’s farming empire and harmed innocent victims.”

This case was investigated by the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG) and U.S. Postal Inspection Service Criminal Investigations Group (USPISCI). The case was prosecuted by Deputy Chief Avi Perry and Assistant Chief John “Fritz” Scanlon of the Department of Justice Criminal Division’s Fraud Section as well as Brian M. Donovan and Russell E. Smoot, Assistant United States Attorneys for the Eastern District of Washington.

           WASHINGTON – Moises Humberto Rivera-Luna, also known as Viejo Santos, 55, an alleged international leader of the violent MS-13 drug gang, made an initial appearance today in U.S. District Court following his extradition from Guatemala to the United States to face a racketeering charge connected to at least one murder. U.S. District Court Judge Royce Lamberth ordered Rivera-Luna held without bond.           The extradition was announced today by U.S. Attorney Edward R. Martin, Jr., Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations Acting Special Agent in Charge Christopher Heck of the Washington Field Office, and Chief Pamela Smith of the Metropolitan Police Department (MPD).Rivera-Luna is one of seven defendants charged in a fourth superseding, nine-count indictment, which was returned on May 3, 2013 alleging a racketeering conspiracy, murder in aid of racketeering, kidnapping in aid of racketeering, assault with a deadly weapon in aid of racketeering and other offenses. Rivera-Luna is charged only with committing racketeering conspiracy. The government alleges that Rivera-Luna, while incarcerated in El Salvador, supervised operations of MS-13 cliques in the Washington, D.C. area. Upon release, he traveled to Guatemala where he was subject to extradition.           “The decade-long pursuit of this alleged violent gang member illustrates our office’s resolve to remain focused and bring to justice those who violate the law no matter where they are, no matter how long it takes,” said U.S. Attorney Edward R. Martin, Jr.           “Keeping Americans safe from transnational criminal gangs is one of the Department’s top priorities,” said Supervisory Official Bacon. “This defendant’s appearance in federal court in Washington today demonstrates our relentless commitment to seeking justice for victims, no matter how long it takes. Thanks to the incredible work by our federal prosecutors and law enforcement partners, we are one step closer to bringing closure for the many victims of this defendant’s alleged brutal violence.”           “Moise Humberto Rivera-Luna will have his day in court, but he stands accused of very serious crimes. His alleged criminal activity combined with his leadership of the MS-13 transnational criminal organization, makes Rivera-Luna a significant threat to the safety of the American people,” said Acting Special Agent in Charge Christopher Heck. “We are grateful for the strong relationships we enjoy with our local, state, federal and international law enforcement partners. Without their cooperation, none of this would be possible. ICE HSI Washington, D.C. will continue to work relentlessly and exhaust all resources to investigate and apprehend anyone who presents a threat to national security or the residents of our communities.”           The indictment alleges that MS-13 engages in racketeering activity to include murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes. The indictment specifically states that some of the defendants allegedly participated in assaults against persons they believed to be rival gang members, made threats against persons they believed to be cooperating with law enforcement, and carried out extortions.           The range of criminal activity alleged in the indictment includes acts committed in the District of Columbia, Maryland, Virginia and other states. The indictment alleges that there was frequent contact between MS-13 members in the Washington, D.C.-metropolitan area and El Salvador, and that persons incarcerated in El Salvador encouraged or ordered assaults and murders.           Rivera-Luna is alleged to be an international leader of MS-13 who was sending orders and advice to an MS-13 clique operating in the Washington area, via cellular telephone calls from his prison cell in El Salvador. The indictment alleges that he and another MS-13 leader, Marvin Geovanny Monterrosa-Larios, also incarcerated in El Salvador, directed that a coalition of MS-13 cliques be formed in the Washington area. They advised local clique members that the coalition’s aim was to seek and kill MS-13 members who were found to be cooperating with law enforcement officials.                                                                                                Among other allegations, the indictment charges Rivera-Luna with ordering the murder of Louis Alberto Membreno-Zelaya, 27. Membreno-Zelaya was found stabbed to death on Nov. 6, 2008, near 11th Street and Otis Place, in Northwest Washington, D.C.           The indictment also alleges that Rivera-Luna authorized the murder of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, MD.           This case is being prosecuted by Trial Attorney Lakeita F. Rox-Love of the Criminal Division’s Violent Crime and Racketeering Section (VCRS) and Assistant U.S. Attorney Nihar Mohanty of the Violence Reduction and Trafficking Offenses (VRTO) Section of the U.S. Attorney’s Office for the District of Columbia. The case is being investigated by the Immigration and Customs Enforcement Homeland Security Investigations Washington Field Office and the Metropolitan Police Department (MPD).           The Justice Department’s Office of International Affairs provided significant assistance in securing the extradition of Rivera-Luna from Guatemala.           Assistance was provided by the Montgomery County and the Prince George’s County, MD. Police Departments, the State’s Attorney’s Office for Montgomery County, MD., the U.S. Attorney’s Office for the District of Maryland, and the U.S. Attorney’s Office for the Eastern District of Virginia.           The prosecution grew out of the efforts of the federal Organized Crime Drug Enforcement Task Force, a multi-agency team that conducts comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the nationwide program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.           An indictment is merely an allegation and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty in a court of law.

Yakima, Washington – Acting United States Attorney Richard R. Barker announced that on February 18, 2025, Chief United States District Judge Stanley A. Bastian sentenced David Roger Franklin, age 68, of Yakima, Washington, to 30 years in federal prison for production, transportation, and possession of child sexual abuse material. Chief Judge Bastian also imposed 10 years of supervised release.According to court documents and information presented at the sentencing hearing, on June 21, 2022, a computer technician working on Franklin’s laptop computer at Franklin’s office discovered folders containing images and videos of child sexual abuse material. FBI agents reviewed the images and determined some of the photos were taken with Franklin’s cell phone and depicted the sexual abuse of a young child with whom Franklin had contact. During a forensic interview with agents, the child related that Franklin told the victim the pictures he took of the child, and his sexual abuse of the child, would be their “little secret.”In addition to the photos of the known victim, Agents located an additional 89 videos and 21 still images on Franklin’s computer of young children being sexually abused by adult males.“I am so humbled by the courage of the victim in this case, who suffered such incredible harm, but nonetheless came forward and stood up to Mr. Franklin,” stated Acting United States Attorney Rich Barker. “In their victim impact statement, the victims put it like this: ‘I trusted [Mr Franklin] and he betrayed me.’ My team of devoted public servants and prosecutors will continue to work tirelessly to ensure that those who betray young children are held accountable for their actions.”     “Possessing child sexual abuse material is disturbing enough, but producing it, as Mr. Franklin did, is another thing entirely.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “He committed these acts without concern for the potentially devastating effect on the child he victimized. I thank the investigators who work these difficult cases diligently and methodically every day to hold offenders accountable for this appalling conduct.”This case was investigated by the FBI. It was prosecuted by Assistant United States Attorneys Michael D. Murphy and Letitia A. Sikes.1:23-cr-02026-SAB

 Spokane, Washington – On July 7, 2025, Richard R. Barker stepped down as the Acting United States Attorney for the Eastern District of Washington. Barker will be returning to private practice in Spokane after a distinguished career in public service.Acting United States Attorney Barker has over a decade of experience as a career prosecutor, serving as an Assistant United States Attorney since 2014.  During his career, Barker has held the positions of First Assistant United States Attorney, Tribal Liaison, Computer Crime and Intellectual Property Coordinator, Digital Asset Coordinator, and Public Affairs Officer.  From 2014 – 2019, Barker served as an Assistant United States Attorney in the nation’s capital, where he served as a dedicated homicide prosecutor.  In early 2019, Barker joined the Eastern District of Washington, serving as an Assistant United States Attorney (“AUSA”) in the Spokane office.Acting United States Attorney Barker has dedicated his career to serving victims of violent crime, while handling numerous homicide and violent crime cases. Late last year, Barker was lead counsel with AUSA Michael J. Ellis in the trial of Zachery Holt and Dezmonique Tenzsley for the double murder of two Tribal members and the attempted murder of a federal officer on the Colville Indian Reservation. In 2023, Barker successfully prosecuted Ronald Craig Ilg, who attempted to hire hitmen on the dark web to harm his wife and a former work colleague.  Earlier this year, Barker was lead counsel with AUSA Nowles Heinrich and Echo Fatsis in the successful trial of Luis Esquival Balonos, who was convicted on multiple drug trafficking charges stemming from more than one hundred pounds of illegal drugs being distributed on and around the Colville Indian Reservation and into Montana. Barker, who carried an active caseload while leading the office, was the first Eastern Washington U.S. Attorney in nearly two decades to try a case to a verdict while serving in the U.S. Attorney role.Throughout his career, Acting United States Attorney Barker also handled several significant drug trafficking prosecutions.  In 2023, Barker, with co-counsel AUSA Stephanie Van Marter, prosecuted the “Fetty Bros” Drug Trafficking Organization, which was distributing hundreds of thousands of fentanyl pills and other drugs into Eastern Washington and using extreme violence to insulate their organization. In his efforts to further address the fentanyl crisis, Barker worked with now former U.S. Attorney Waldref and the City of Spokane to create a Special U.S. Assistant Attorney position focused on prosecuting those responsible for illegal narcotics impacting the Spokane area.As First Assistant United States Attorney, Barker supervised the U.S. Attorney’s Office’s litigating units, which include the Criminal, Civil, and Appellate Divisions. As the Chief Deputy to the U.S. Attorney, Barker helped establish the District’s dedicated Appellate Division and worked closely with the Office’s administrative team to obtain additional DOJ resources for increasing public safety throughout Eastern Washington.Throughout his service, Former Acting U.S. Attorney Barker built strong relationships with Washington’s Native American communities and worked tirelessly to honor federal treaty rights with Tribal Nations in Eastern Washington and address the crisis of missing or murdered indigenous people. In early 2024, Barker played a key role in hiring the district’s first MMIP AUSA, who is fully dedicated to prosecuting cases of Missing or Murdered Indigenous People.  For Barker’s dedication to working with Native American communities and improving public safety, he received a Department of Justice Director’s Award in 2024.“Serving as a federal prosecutor has been the highlight of my career,” said Barker. “It has been an honor to represent the United States and seek justice for victims and their families. Spokane has truly become home for me and my family, and I look forward to remaining active in the legal community as I return to private practice right here in Eastern Washington.”Former U.S. Attorney Vanessa R. Waldref stated, “Acting U.S. Attorney Barker is an exceptional leader, a talented trial attorney, and a fearless advocate for justice. His service to the Department of Justice and dedication to protecting the communities of Eastern Washington is second to none. He led the District with distinction, focusing every day on doing the right thing for victims and the community and maintaining an unwavering commitment to upholding the rule of law.”Outside the U.S. Attorney’s Office, Barker will continue to serve as an adjunct professor at Gonzaga University School of Law, where he has taught courses in Trial Advocacy and Conflicts of Law. Barker also serves as a Lawyer Representative to the Ninth Circuit Court of Appeals.Stephanie Van Marter will be assuming the role of Acting United States Attorney for the Eastern District of Washington. “I’m honored to pass the torch to Acting U.S. Attorney Van Marter,” said Barker. “Steph has dedicated her career to the Department of Justice, and she will lead this office with the same honor, integrity, and commitment to justice as those who have served before her.” A formal announcement from the U.S. Attorney’s Office regarding Ms. Van Marter’s new role will be issued in the coming days.

Richland, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the United States filed a Complaint in federal district court against Hanford Mission Integration Solutions, LLC (HMIS), alleging fraudulent labor overcharging at the Department of Energy (DOE) Hanford Nuclear Site.

DOE’s Hanford Nuclear Site, a 580-square-mile in southeast Washington, was established in 1943 as part of the Manhattan Project, and was used to produce plutonium for nuclear weapons, including those used in the Trinity Test and the “Fat Man” bomb detonated over Nagasaki during the final days of World War II.  Since the late 1980s, DOE has been engaged in an extensive environmental cleanup and decommissioning operation, involving remediation and treatment of large quantities of radioactive and hazardous waste. 

HMIS is owned by three large government contracting companies: Leidos Integrated Technology, headquartered in Reston, Virginia; Centerra Group, LLC, headquartered in Palm Beach Gardens, Florida; and Parsons Government Services, headquartered in Centreville, Virginia.  Since January 2021, HMIS has held the multi-billion-dollar Hanford Mission Essential Services Contract.  Part of the HMIS contract requires it to provide fire protection and fire systems management services for the Hanford Site, in order to protect the public, the environment, and Hanford Site workers from fire hazards as well as from potential radiological or other hazards that could arise from natural or human-created fire activity. 

The HMIS contract is a cost-type contract, meaning that HMIS is reimbursed for its reasonable, allowable, and allocable costs of performing work on the contract, and can earn profit, or fee, based on achieving various performance incentives.  Costs include labor costs, such as the cost associated with labor hours performed by fire protection and fire systems management personnel employed by HMIS at the Hanford Site, who perform critical tasks such as testing and maintaining sprinklers, pipes, and electronic fire systems. 

The Complaint alleges that, between January 2021 and October 2023, HMIS engaged in a systemic and fraudulent overcharging of DOE for fire protection work at Hanford.  Specifically, the Complaint alleges that HMIS fire protection personnel regularly experienced extensive and unreasonable idle time on a daily or near-daily basis, due to HMIS’ failure to schedule and carry out work for them to perform.  The Complaint further alleges that, during this extensive idle time, HMIS fire protection personnel took naps, watched movies and television, and engaged in other personal activity not related to performing work.  The Complaint alleges that HMIS supervisors and management were fully aware of this extensive and unreasonable idle time for its personnel, but, rather than take steps to address it, they encouraged and directed HMIS fire protection personnel to falsely and fraudulently charge this idle time to work codes associated with HMIS’ contract, passing on the costs associated with this extensive and unreasonable idle time to DOE by fraudulently and falsely representing that work had been performed. 

For example, the Complaint alleges that when a fire systems manager was asked via email how to charge a day in which a worker had no work to perform for the entire 10-hour day, the manager responded, via email: “[i]f they DID NOT have a job assignment for the day – that means you are on standby and would use the 600318.”  According to the Complaint, 600318 was the cost code associated with training.  The Complaint alleges, as an example, that a fire protection worker who did not have any work to perform for an entire 10-hour day, and spent a portion of that day watching the film “There’s Something About Mary” at his desk, then charged the entire 10-hour day to the 600318 training code, which HMIS management approved and submitted to DOE for reimbursement.

The Complaint also alleges that notwithstanding the extensive and unreasonable idle time during the regular, 10-hour Monday through Thursday Hanford workday, HMIS nonetheless scheduled substantial overtime for fire protection workers on Friday and weekends, and that these unnecessary overtime shifts themselves involved extensive and unreasonable idle time, causing DOE to be fraudulently billed for such shifts at premium pay rates. 

The Complaint alleges that this systemic and pervasive practice of falsely and fraudulently billing DOE for extensive and unreasonable downtime was not only known to HMIS management, but encouraged by them.  For example, the Complaint alleges that in July 2022, Michael Winkel, HMIS’s Director of Fire Systems Maintenance, instructed a pipefitter via email to use CACN 600320, a cost code associated with performing “preventative maintenance” on the fire system, for “downtime the remainder of the day.” 

According to the Complaint, HMIS’s systemic and pervasive overcharging and fraudulent billing resulted in millions of dollars in overcharges to DOE, and jeopardized the critical fire protection systems at Hanford because this extensive and unreasonable idle time occurred when there was, in fact, important fire protection work that could and should have been performed to safeguard the public, workers, and the environment from fire dangers, including during dangerous wildfire seasons. 

“Fire safety at Hanford is critical to the health of the public, workers, and the environment,” said United States Attorney Waldref.  “It is inexcusable to think that a well-paid contractor entrusted with this critical task to protect our community would fraudulently bill DOE for idle time spent watching movies and literally sleeping on the job, all while putting the public at risk when critical work went uncompleted.  We will continue to work hand-in-glove with our law enforcement partners to end fraud and corruption at Hanford and support environmental remediation.”

This case was originally brought by Bradley Keever, a sprinkler fitter in the fire protection group at HMIS.  Under the False Claims Act, whistleblowers may file an action under seal in federal court.  The United States investigates the allegations and determines whether to intervene in the action.  Under the False Claims Act, the United States may recover up to three times the damages caused by the Defendant, plus additional penalties for each false claim or statement.  If the United States obtains a recovery, the whistleblower is generally able to share in a portion of the recovery.  Over the past decade, False Claims Act recoveries in the Eastern District of Washington have exceeded $400 million.  

The complaint can be found here.

Assistant United States Attorneys Frieda Zimmerman, Molly Smith, and Dan Fruchter are prosecuting this case on behalf of the United States.  The investigation was conducted by the Department of Energy, Office of Inspector General. 

The claims articulated in the Complaint are allegations only; at this time there has been no determination of liability.

Case No. 4:21-cv-05156-SAB

Spokane, Washington – On February 11, 2025, United States District Judge Mary K. Dimke sentenced Dustin T. Perrin, age 41, of Spokane, Washington, to 96 months in prison for several bank robberies. Judge Dimke also imposed 3 years of supervised release and restitution of $9,224.00.According to court documents and information presented at the sentencing hearing, on October 13, 2023, Perrin entered the First Interstate Bank brank at 57th Avenue and Regal in Spokane. Perrin was wearing a wig under his hat. Perrin handed a bank teller a bag and a handwritten note demanding the teller put cash in a bag. Perrin also warned the teller about activating the silent alarm. The teller handed Perrin $1,986 in cash, and Perrin left the bank on a bike and headed north.Perrin left the note at the bank. It was collected by law enforcement and sent to the Washington State Patrol Crime Laboratory. DNA analysis later confirmed Perrin’s DNA on the note.  









On November 17, 2023, Perrin rode his bike to the Numerica Credit Union branch on South Regal Street in Spokane, just a half mile from the bank Perrin robbed one month earlier. Perrin entered the bank, handed two bank tellers one bag each, and demanded the tellers put money in the bags. The tellers handed Perrin a total of $5,238 in cash. Perrin then left the bank on his bike.  









Perrin went to a Wal-Mart store that night. A security camera recorded him spreading out a large amount of cash while making a purchase.On January 22, 2024, Perrin rode his bike to a Washington Trust Bank branch located at 27 E. Indiana Avenue in Spokane. Perrin entered the bank wearing a blond wig. Perrin handed the teller a small bag and told the teller to put money in the bag. Perrin also warned the teller he had a gun and “not to do anything stupid,” while he pointed at a lump in his jacket. The teller handed Perrin $2,000 in cash, and Perrin left the bank on his bike. 









“For the people of Eastern Washington, their banks should be places of trust and security – not fear,” stated Acting U.S. Attorney Rich Barker. “Mr. Perrin’s repeated acts of intimidation and theft put innocent employees and community members at risk. As today’s sentence makes clear, violent crime will not be tolerated in Eastern Washington, and the U.S. Attorney’s Office will continue working alongside our federal, state, local, and Tribal law enforcement partners to hold offenders accountable and protect the safety if neighborhoods and communities in Spokane and throughout Eastern Washington.”“Today we, together with our law enforcement partners, are holding Mr. Perrin responsible for stealing from three different federally insured financial institutions,” said W. Mike Herrington, Special Agent in Charge of the FBI Seattle field office. “We are grateful no one was hurt, but this kind of violent crime terrorizes our communities nonetheless and is completely unacceptable.”“Today’s successful prosecution of Mr. Perrin is a testament to the strong partnership of our local, state, and federal law enforcement partners and our commitment to keep our community safe,” stated Spokane County Sheriff John Nowels.     This case was investigated by the FBI Spokane Regional Safe Streets Task Force and the Spokane County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Nowles Heinrich. 2:24-cr-00075-MKD

Spokane, Washington – Acting United States Attorney Richard R. Barker announced that on May 27, 2025, Tony J. Bolen, age 44, and Casey Allen Greer, age 48, were sentenced for Production of Child Pornography, Conspiracy to Produce Child Pornography, and Commission of a Felony Sex Offense by an Individual Required to Register as a Sex Offender. Greer was additionally sentenced for Distribution of Child Pornography, and Bolen was sentenced for Receipt and Transportation of Child Pornography. Bolen and Greer were convicted of these crimes on November 25, 2024, following a jury trial. United States District Judge Mary K. Dimke sentenced both men to 70 years in prison, followed by a life term of supervised release.  Judge Dimke also imposed a $5,000 assessment under the Justice for Victims of Trafficking Act, as to both men, and ordered Greer to pay $18,500 in restitution to victims.According to court documents and information disclosed at trial and sentencing, beginning in October 2021, and continuing to December 2021, Bolen and Greer worked together to produce image and video files depicting the sexual abuse of a young child that Greer had sexually abused as early as May 2021. Bolen and Greer discussed when Greer would have access to the minor and how Greer would medicate the victim to ensure the victim’s compliance during the sexual abuse. During one such communication, Greer advised that the medication he had administered to the victim had not worked.  He stated that he needed something like chloroform to keep the victim from fighting him.  Nonetheless, Greer repeatedly sent images and videos of the sexual abuse to Bolen. In written text messages, Bolen directed Greer to sexually abuse the victim in a specific way, record the abuse, and send it to him.Bolen and Greer both have prior Washington State convictions for Child Molestation. Because of these convictions, Bolen and Greer were required under state and federal law to register as sex offenders at the time of the above-listed offenses.At sentencing, Judge Dimke advised both defendants that the conduct they engaged in was heinous and victimized both the child involved, the child’s family, and the community at large.  She stated that the intention of the 70-year sentence imposed for each defendant is to ensure that neither man was ever released back into the community.  She spoke directly to the victim and the victim’s family, thanking them for their confidence and patience with the justice system.  Judge Dimke also spoke directly to the victim, stating, “You are strong.  You are brave…this does not define you.  You have a very bright future ahead of you.”“The defendants’ actions in this case were nothing short of horrific. They subjected a young child to unspeakable abuse, using sleep-inducing substances to control and exploit their victim,” stated Acting U.S. Attorney Barker. I am deeply grateful to Assistant United States Attorneys Ann Wick and Laurel Holland, whose tireless efforts and personal sacrifices were instrumental in bringing these offenders to justice. Trials like this one are emotionally grueling, but AUSAs Wick and Holland remained unwavering in their commitment to the victim and to the pursuit of justice. Because of this extraordinary dedication, Mr. Bolen and Mr. Greer will never again have the opportunity to harm another child.”AUSA Ann Wick, one of the lead prosecutors, added, “I am profoundly moved by the bravery of victims in cases like this one. Their courage in this case has ensured that two repeat sex offenders will no longer have the chance to harm innocent children. Justice was served because of the victim’s strength.”“These significant sentences represent a step toward justice for the immense harm these two individuals inflicted on the victim and their family,” said ICE Homeland Security Investigations Seattle acting Special Agent in Charge Matthew Murphy. “HSI and our partners remain steadfast in our commitment to protecting the most vulnerable, and we will continue to ensure that those who commit such heinous crimes are held fully accountable.”“Exceptional sentencing is appropriate for exceptionally heinous criminal acts.  Certainly, those who take sexual advantage of our young and vulnerable must be removed from our streets and communities and the Washington State Patrol appreciates the many agencies involved in the successful investigation, capture, and prosecution of these dangerous individuals,” stated Washington State Patrol Chief John Batiste. 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 jointly by Homeland Security Investigations, the Washington State Patrol, and Spokane Police Department, as part of the Internet Crimes Against Children Task Force. This case was prosecuted by Assistant United States Attorneys Ann T. Wick and Laurel J. Holland.

Spokane, Washington – On December 13, 2021, Senior United States District Judge W. Fremming Nielsen sentenced Patrick Elliott Pearson, 49, of Moses Lake, Washington, to 35 years in prison for shooting at four ATF agents with a shotgun in connection with a wide-ranging conspiracy to distribute heroin and methamphetamine. Earlier this year, a jury convicted Pearson of assaulting the agents, engaging in a drug conspiracy, discharging a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm. The United States Probation Office calculated Pearson’s advisory range under the United States Sentencing Guidelines at 30 years to life, with a mandatory 10-year sentence for discharging the shotgun, consecutive to all other counts. Judge Nielsen determined that Pearson’s criminal history was in Category VI, the highest category under the federal guidelines.

The evidence at trial showed that Pearson, along with co-defendant Luis Manuel Farias-Cardenas, controlled and facilitated a methamphetamine and heroin distribution ring in the greater Grant County and Yakima areas from 2015 to 2019. The jury considered extensive evidence at trial that demonstrated that Pearson was responsible for the distribution of hundreds upon hundreds of pounds of heroin and methamphetamine into the Grant County community. As part of his role in this endeavor, Pearson lived in a trailer on a compound in Mae Valley, Washington, outside Moses Lake. At that compound, the conspirators received, stored, and dealt methamphetamine and heroin to customers. Judge Nielsen concluded that the compound was a drug “stash house” and imposed an enhancement for Pearson’s maintenance of a premise for the purpose of drug trafficking.

On the morning of July 16, 2019, numerous ATF agents, Grant County deputies, and local officers went to Pearson’s Mae Valley compound to serve search and arrest warrants authorized by a federal magistrate judge. Specially trained agents from ATF’s Special Response Team (“SRT”) approached Pearson’s trailer to arrest him. As they approached, Pearson aimed his shotgun at the ATF agents and repeatedly pulled the trigger, blasting lead slugs and buckshot rounds at them through the trailer’s fiberglass walls. He then reloaded the shotgun and continued to shoot at the agents. Grant County Sheriff’s Office took the lead on the shooting investigation. The evidence at trial showed that Pearson knew where he needed to aim to hit the ATF agents, because he had installed numerous high-definition security cameras on the property that live-streamed what was happening outside his trailer onto a large, high-definition television screen inside the trailer.

The ATF agents did not shoot back at Pearson, because they were not able to see if anyone else was inside the trailer. With the aid of a trained law-enforcement canine, the ATF agents were eventually able to arrest Pearson. When he finally came out of the trailer, law enforcement officers learned that after shooting at the officers, he had tried to take his own life with the shotgun. He was unsuccessful, and the ATF agents immediately arranged for Pearson to be life-flighted to Spokane for medical treatment.

During his sentencing hearing, Pearson claimed that he was not trying to hurt anyone, and that he was just trying to buy time by scaring the ATF agents. Judge Nielsen rejected this contention and told Pearson that the only conclusion that could be reached about his conduct that morning was that he was trying to hurt or kill the agents. Judge Nielsen specifically noted that Pearson was not “shooting blind,” based on the video surveillance system that was live-streaming the locations of the ATF agents. Judge Nielsen also found that the evidence of Pearson reloading the shotgun supported the conclusion that Pearson’s intent was not merely to scare the officers. Judge Nielsen also commented on the serious impact Pearson’s drug trafficking had on the community, noting that because of Pearson’s choice to distribute drugs, he was feeding the addiction of current addicts and making drugs available to others who might become addicts.

United States Attorney Vanessa Waldref commended the joint efforts of law enforcement and emphasized the need to keep Eastern Washington safe and strong from both drugs and drug-related violence. “No one can be allowed to shoot at law enforcement. Numerous brave ATF agents went to Mr. Pearson’s trailer that morning to do their jobs by executing a lawful court order and serving a valid arrest warrant. Thanks to Mr. Pearson’s poor aim, this community has not had to endure the potential tragedy of fallen ATF officers. Today’s sentence sends a clear warning to anyone who thinks they can shoot their way out of an arrest and get away with it – they cannot. If they try, the United States Attorney’s Office will work with its federal, state, and local partners to investigate and prosecute them to the fullest extent provided by law. When Mr. Pearson saw on his video screens that ATF was present with a warrant, he simply had to surrender to avoid the most serious charges in this case. Instead, with reckless disregard for human life, he tried to hurt or kill a number of agents.”

United States Attorney Waldref continued: “I am both grateful for, and inspired by, the professionalism shown by the ATF agents who risked their lives that morning. They relied on their training to keep themselves and Mr. Pearson safe, and no ATF officer even returned fire into the trailer despite being shot at multiple times. I thank and commend the ATF SRT team, their ATF, DEA, and Grant County colleagues, and the hundreds of law enforcement officers and professionals who executed dozens of other warrants that very same morning. No other execution of a warrant that morning involved anyone pulling a trigger—only Mr. Pearson shot at law enforcement that day, and it is appropriate that he will spend 35 years in federal prison for doing so.”

Jonathan T. McPherson, the ATF Seattle Field Division Special Agent in Charge, echoed the U.S. Attorney, stating: “The actions of the ATF Special Agents and officers from our partner agencies that day are truly commendable. They acted with high regard not only for the safety of the surrounding community, but also for Mr. Pearson, despite the fact that he was shooting at our Special Response Team. We are thankful none of our Special Agents were injured and that Mr. Pearson will serve a significant sentence.”

Frank A. Tarentino III, the Special Agent in Charge of DEA’s Seattle Field Division joined that sentiment, noting: “This brazen attack on law enforcement illustrates the direct correlation between drug trafficking and violence. We have long known that drug trafficking organizations use violence and fear to further their criminal enterprises. With the help of our partners, we strive to drive down drug-related violence that endangers our communities. We will continue to do so through enforcement actions, community engagement, education, and awareness.”

This investigation was part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation was conducted by DEA and ATF, with significant assistance from the Grant County Sheriff’s Department. The case was prosecuted and tried to a jury by Assistant United States Attorneys Caitlin A. Baunsgard and David M. Herzog.

Spokane, WA – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the United States and State of Washington filed a Complaint in federal district court against MultiCare Health System, a Tacoma-based hospital and healthcare system that owns and operates MultiCare Deaconess Hospital (Deaconess) and MultiCare Rockwood Clinic in Spokane, alleging that MultiCare knowingly endangered patient safety and falsely and fraudulently billed Medicare, Medicaid, and other federal health care programs for spinal surgery procedures performed at Deaconess between 2019 and 2021 by Jason Dreyer, a former neurosurgeon. 

Between 2013 and 2019, Dr. Dreyer practiced at Providence St. Mary’s Medical Center in Walla Walla, Washington, a hospital owned and operated by Providence Health & Services (Providence).  In 2019, amidst allegations that he was performing medically-unnecessary surgeries, harming patients, and falsifying diagnoses, Providence permitted Dr. Dreyer to resign. 

The Complaint against MultiCare announced today alleges that, following Dr. Dreyer’s resignation from Providence, MultiCare hired him to perform neurosurgery services at Deaconess.  The Complaint alleges that during MultiCare’s hiring process, it became aware of concerns and “red flags” about Dr. Dreyer and his surgical judgment from his time at Providence, but, recognizing that he was a “workhorse”, made the decision to hire him and allow him to begin seeing patients and performing surgery at Deaconess Hospital in July 2019. The Complaint further alleges that in October 2019, MultiCare recognized that Dr. Dreyer was performing a high volume of surgeries and generating significant revenue for MultiCare, and so placed Dr. Dreyer on an incentive compensation structure, meaning that the greater volume and complexity of surgeries performed by Dr. Dreyer, the more money he would make. 

The Complaint also alleges that in February 2020, the United States Attorney’s Office specifically informed MultiCare that it was investigating concerns that Dr. Dreyer was harming patients, falsifying diagnoses, and performing medically-unnecessary surgeries.  According to the Complaint, despite receiving this information, as well as multiple internal complaints and concerns that Dr. Dreyer was performing medically unnecessary surgeries at MultiCare and endangering patients, MultiCare made the decision to allow Dr. Dreyer to continue seeing patients and performing surgery until the Washington Department of Health summarily suspended Dr. Dreyer’s ability to perform surgery in March 2021. 

The Complaint alleges that MultiCare not only endangered patients through its conduct, but falsely and fraudulently claimed and received reimbursement for millions of dollars from federal health care programs between July 2019 and March 2021.  The federal health care programs are: (1) Medicare, which provides health coverage to elderly and disabled Americans; (2) Washington State Medicaid, which is jointly administered and funded by the United States and the State of Washington, and which provides health coverage to low-income Washingtonians; (3) the U.S. Department of Veterans Affairs (VA) Community Care program, which provides health insurance coverage for veterans for certain specialized services that cannot be performed at VA facilities; (4) the TRICARE program, which provides health insurance coverage for active duty and retired military servicemembers, reserves, and their families; and (5) the Federal Employee Health Benefits program, which provides health insurance coverage to federal civilian employees.

“As alleged in the Complaint, MultiCare was aware of serious concerns that Dr. Dreyer was putting patients in danger,” said United States Attorney Waldref.  “The Complaint alleges that MultiCare nonetheless made the decision to allow him to treat and operate on patients, even after it became aware of the federal investigation.  This is an egregious breach of the public trust.”

In April 2022, Providence agreed to pay approximately $22.7 Million and implement a standard of care corporate integrity agreement to resolve its liability concerning surgical procedures performed by Dr. Dreyer and another neurosurgeon that Providence billed to federal health care programs.  In April 2023, Dr. Dreyer agreed to pay approximately $1.2 Million to resolve his individual liability under the False Claims Act.  

“Health care providers that perform medically unnecessary procedures undermine the public’s trust in the health care system and exploit taxpayer-funded programs,” stated Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, HHS-OIG is committed to protecting patients and the integrity of federal health care programs.”

“VA’s Community Care programs provide veterans and their families the ability to obtain critical healthcare services from providers within their own communities,” said Special Agent in Charge Jason Root of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “This enforcement action underscores the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and operations and preserving taxpayer funds."

“The filed complaint is a constructive step forward in holding MultiCare accountable for putting profit ahead of patient care and safety by willfully ignoring the dubious practices of one of its doctors,” said Bryan D. Denny, Special Agent-in-Charge for the Department of Defense (DoD), Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office.  “DCIS remains committed to working with its partners to identify and eliminate fraudulent schemes that endanger patient safety and corrupt the integrity of the DoD’s health care program.”

“I’m grateful for the close collaboration we have had with our partners at the Washington Attorney General’s Office, the Department of Health and Human Services Office of Inspector General, the Office of Personnel Management Office of Inspector General, the Defense Criminal Investigative Service, and the U.S. Department of Veterans Affairs Office of Inspector General,” continued U.S. Attorney Waldref.  “It was that close collaboration and teamwork throughout these investigations that made the Providence and Dr. Dreyer results possible.  We will continue working with our law enforcement partners to protect patient safety and to hold accountable those who put profits ahead of patient safety.”

According to court documents, while the United States’ and State of Washington’s investigation of Providence began in February 2020, in April 2022, a former patient of Dr. Dreyer’s at MultiCare filed a qui tam complaint under seal in the U.S. District Court for the Eastern District of Washington.  When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States.  The relator is generally able to then share in any recovery.  Over the past decade, recoveries in the Eastern District of Washington in False Claims Act cases have exceeded $400 million. 

The filed complaint can found below





us_and_wa_complaint_in_intervention.pdf





The joint investigation was conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office; the U.S. Department of Veterans Affairs, Office of Inspector General, Spokane Resident Office; the Office of Personnel Management, Office of Inspector General, Seattle Field Office; the Defense Criminal Investigative Service, Seattle Field Office; and the State of Washington Attorney General’s Medicaid Fraud Control Division.  Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington are handling this matter on behalf of the United States. 

Case No: 2:22-cv-00068-SAB (E.D. Wash.)

Spokane – United States Attorney William D. Hyslop, of Spokane, Washington, announced today he will resign his position effective midnight February 28, 2021.

Yesterday, the Acting Attorney General conveyed to all Presidentially-appointed Senate-confirmed U.S. Attorneys the request from the President for their resignations. Mr. Hyslop honors and respects the President’s request. The Department of Justice has named Joseph H. Harrington, First Assistant U.S. Attorney, as the Acting U.S. Attorney following Mr. Hyslop’s resignation. Harrington previously served in this role and will do so again until a new Presidentially-appointed U.S. Attorney is confirmed by the United States Senate.

U.S. Attorney Hyslop was sworn in as U.S. Attorney on July 19, 2019, after having been named by President Trump and confirmed by the United States Senate. He previously served in this role from 1991 to 1993 in the President George H.W. Bush Administration. Hyslop has practiced law in Washington State for over 40 years and is a Past President of the Washington State Bar Association. He previously was a principal in the Lukins & Annis, P.S. law firm for many years. A graduate from Washington State University in 1973, Hyslop received a Master’s Degree from the University of Washington in 1977, and earned his Law Degree from the Gonzaga University School of Law in 1980.

In his resignation letter to The President, U.S. Attorney Hyslop, stated, “It goes without saying that serving our great Country as the United States Attorney for the Eastern District of Washington has been the highest honor and most fulfilling duty of my professional career. I previously served in this role in President George H.W. Bush’s Administration and have been honored and privileged to serve again these past years. The women and men of my Office are outstanding public servants and I have certainly appreciated the support of the Department of Justice and all law enforcement as we have worked to support the safety and security of the residents of the Eastern District of Washington. We have accomplished much good together as stewards of our justice system.”

The Eastern District of Washington includes the twenty Washington counties east of the crest of the Cascade Mountains. The United States Attorney’s Office, with staffed offices in Spokane and Yakima, Washington, is responsible for representing the federal government in virtually all litigation involving the United States in the Eastern District of Washington. This includes all criminal prosecutions for violations of federal law, civil lawsuits by and against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers.

“With the close cooperation between all federal, state, local and Tribal law enforcement, we have met the criminal justice challenges confronting this region, wrongdoers have been held accountable, the rule of law has been enforced, and public safety and security have been advanced. And taxpayers’ interests have been protected. I can’t speak highly enough of the phenomenal prosecutors and staff at the U.S. Attorney’s Office who appear in Court every day to address these tough criminal and civil issues. It has been my incredible honor to lead and work with them,” Hyslop said.

Hyslop has worked to ensure that all law enforcement, whether federal, state, local or Tribal, work closely and cooperatively together to support the safety and security of the residents of Eastern Washington. He has promoted holding criminals accountable and has been proactive in urging the community to get educated about the deadly dangers of Fentanyl and other drugs being smuggled into this region to be sold on our streets.

Ray Duda, who served as the Special Agent in Charge of the FBI in Washington State during Mr. Hyslop’s service stated, "It has been a privilege and an honor to work so closely with a true patriot like U.S. Attorney Bill Hyslop. The focus and determination he has brought to aggressively prosecute those individuals who victimized the citizens of the Eastern District of Washington has been impressive. His hard work and leadership will have a positive impact on our communities for many years to come."

DEA Special Agent in Charge Keith Weis commends USA Hyslop for his outstanding leadership. “During his tenure, he has supported all the agencies focused on reducing supplies of dangerous drugs and related violence impacting our Eastern Washington’s Communities. He has been extremely dedicated to enforcing the rule of law while also exhibiting heartfelt compassion and empathy towards those caught in the deadly grip of addiction. Over the last year he has been the architect and driving force of a multi-pronged fentanyl awareness campaign that was crucial in bringing together law enforcement with all facets of Eastern Washington’s Communities to highlight and educate our citizens on the extreme dangers of fentanyl use. I have no doubt his tireless efforts have saved lives. The DEA wishes USA Hyslop the best in his next endeavors, he has been an invaluable leader and will be greatly missed by law enforcement.”

Spokane Police Chief Craig Meidl stated, "U.S. Attorney Hyslop has been a constant partner with SPD in our efforts to keep Spokane the safe community that we all long to live in and raise our families. His engagement with local law enforcement, and commitment to safety first through prevention, education and enforcement, is second to none. We honor his commitment to justice through compassion and accountability, with the needs of the community being his priority."

Kennewick Police Chief Ken Hohenberg stated, “We have been blessed to have Bill Hyslop as our U.S. Attorney for the Eastern District of Washington. Mr. Hyslop has been active and engaged in bringing Federal support and resources to our communities throughout the Eastern District of Washington. He was instrumental in supporting an enhanced Federal presence in the Tri-Cities as well as Federal prosecution on violent career criminals, predators who prey on our children, and major drug trafficking organizations. He coordinated and led our efforts by bringing resources on the Federal level in the fight against Fentanyl which have claimed lives not only locally but throughout our Country. Mr. Hyslop and his office have played an important role in keeping our communities safe during his tenure as our U.S. Attorney in the Eastern Washington and we are grateful for his service.”

Hyslop concluded, “I intend to work to the last day on behalf of the people of Eastern Washington. And after I’m out of office, I want to continue to do all I can to advocate for law enforcement and the hard work they do for us every day to keep us safe. They deserve our thanks and appreciation, and our continued support.”

https://youtu.be/W71sanlvZZQ

Spokane, WA – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Randy Coy James Holmes, age 25, of Spokane, Washington, was sentenced today to more than 20 years in federal prison for Assault with a Deadly Weapon on a Federal Law Enforcement Officer in violation of 18 U.S.C. § 111(a)(1), (b) as well as Discharge of a Firearm During a Crime of Violence in violation of 18 U.S.C. § 924(c). The charges stem from  Holmes’s attempted robbery of an undercover law enforcement officer in November 2021.  United States District Court Judge Thomas O. Rice pronounced sentence.

According to court documents and information disclosed at court proceedings, in early November 2021, a Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Confidential Informant reported that Holmes, who is a documented Sureno gang member and uses the alias “Whispers,” was looking to obtain a firearm to conduct future strong-arm robberies. The informant arranged for Holmes to contact an undercover ATF agent so Holmes could purchase a firearm from the agent. ATF intended to sell Holmes an inoperable firearm and then arrest him. The same day, a second ATF confidential informant advised ATF that Holmes contacted a second informant to obtain a firearm.

On November 5, 2021, Holmes agreed to meet the undercover ATF agent at the Motel 6 parking lot in Spokane to purchase the firearm. Holmes had offered to pay the undercover agent approximately one ounce of methamphetamine in exchange for the firearm, instead of U.S. Currency. Holmes arrived at the Motel 6 as planned, driving a Dodge Charger. Holmes’s co-defendants, Vincent Petrushkin and William Huntington Burns, who are also Sureno gang members, were inside the Dodge Charger with Holmes. 

Before Holmes’s got out of the car, Burns provided Holmes with a firearm, which later was identified as a 9mm semi-automatic Glock handgun, as so called “protection” for the transaction with the undercover agent. Holmes then exited the Charger and got into the front passenger seat of the undercover ATF agent’s car. During the transaction, the undercover agent expressed concerns to Holmes about conducting the transaction at that location given that Holmes arrived with two additional individuals in his car. The undercover agent then asked to move the transaction to a nearby parking lot, away from the two men in the Dodge Charger.

Holmes then responded that he would “tell the homies” and started to get out of the undercover agent’s car. Holmes, however, stopped short of fully exiting the car. Instead, Holmes re-entered the car, pulled out the 9mm semi-automatic handgun, pointed the gun at the undercover agent’s head, and demanded the firearm the undercover agent was going to sell him. Among other things, Holmes screamed at the undercover agent, while pointing a gun at the agent’s head: “give it to me now… I’m gonna shoot you in the f’ing head ese … I ain’t f’ing playing with you.”

The undercover agent, who was in reasonable apprehension of immediate bodily harm, raised his hands above his head, and advised Holmes that the firearm was in the back of the car. Holmes then fully exited the undercover agent’s vehicle and ran around to the back of the car to obtain the firearm. This interaction between Holmes and the undercover ATF agent inside the car was captured on a video recording device from inside the undercover agent’s vehicle.

After Holmes got out of the car, the undercover agent exited the vehicle and directed Holmes to drop the gun. Rather than drop his firearm, Holmes repeatedly fired the 9mm semi-automatic Glock at the undercover agent, striking the agent multiple times, and causing the agent serious and permanent bodily injury. The undercover agent returned fire, striking Holmes. Audio from the shooting was captured by the video recorder inside the undercover agent’s car.

ATF surveillance agents quickly arrived at the scene and rendered life-saving aid to Holmes before he and the undercover agent were transported to the hospital. At the hospital, emergency room personnel located approximately 1 ounce of methamphetamine in Holmes’s jacket pocket.

At the time of this offense, Holmes was on federal supervised release stemming from a 2019 conviction for being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1), 924(a)(2). Holmes also was on Washington State Department of Corrections community custody supervision from an unrelated state felony conviction. 

Codefendants Petrushkin and Burns have both previously pled guilty to federal offenses related to this incident.  Additionally, Kenneth Rankin Gazzaway was identified as having purchased the that Glock 9mm semi-automatic handgun firearm from a Federal Firearms Licensee in the Spokane area.  The ATF learned Gazzaway was a methamphetamine user, which precluded him from purchasing a firearm.  Nonetheless, Gazzawaylied on federal paperwork in order to purchase this and other firearms. During the case, Gazzaway admitted to traded some of the firearms he illegally purchased for drugs. One of those individuals to whom Gazzaway traded firearms was Adam Layton, who is another documented Sureno — i.e., the same criminal street gang as Holmes.

During today’s sentencing hearing, the undercover ATF agent, his wife, and his mother, provided powerful victim impact statements discussing the impact Holmes’s actions had on their family’s life.  Excerpts of the undercover agents statements are included as an attachment. 

During the sentencing process, Holmes attempted to shift blame for the offense, blaming a multitude of other individuals for his actions.  However, Judge Rice was not persuaded, and sentenced Holmes to more than two decades in federal prison.

“This tragic case demonstrates the danger and violence that too frequently occurs when convicted felons possess firearms and engage in illegal drug trafficking,” stated U.S. Attorney Waldref. “I am grateful for the exceptional courage and bravery of law enforcement officers, who put their personal safety at risk to protect our community, and I commend the ATF agents involved for their exceptional professionalism in rendering life-saving aid to Mr. Holmes before he could be treated at a hospital. Our community is stronger as a result of these agents’ tremendous service. My heart goes out to the the undercover ATF agent and his family. They have made tremendous sacrifices to ensure the safety of the community.  I commend him for his service and thank all of the brave men and women who led the investigation and prosecution in this case.”

“Thanks to the bravery, quick thinking, and professionalism of this agent and the nearby team, Mr. Holmes survived an incident of his own making and will have the next two decades in prison to consider the consequences of his repeated offenses,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “I commend the law enforcement officers in Washington state and across the country who protect their communities, knowing every day could take a dangerous turn in just a moment and might never be the same for themselves and their families.”

Assistant United States Attorney, Caitlin Baunsgard, who led the United States’ prosecution in this case, stated, “In this case, a multiple-time convicted felon — who was being supervised by two separate courts, and who was living in a halfway house after having been released from federal prison — was looking for a gun to commit home-invasion robberies.” AUSA Baunsgard continued, “In response to this clear threat to the community, the ATF fearlessly, and without hesitation, did their job.  These agents stepped up to protect and serve the community.  I am so proud to work with this amazing group of professionals.” 

This case has been investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Spokane Police Department.  This case is being prosecuted by Assistant United States Attorneys Caitlin Baunsgard and Patrick Cashman. 

Case No.: 2:21-CR-164-TOR





us_v_holmes_victim_statement.pdf

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