Richland, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that BNL Technical Services, LLC (BNL), pleaded guilty to fraudulently obtaining $493,865 as part of a scheme to obtain COVID-19 relief funding.  Chief United States District Judge Stanley A. Bastian accepted BNL’s guilty plea, and set sentencing for March 11, 2025, at 1:30 p.m., in Yakima, Washington. U.S. Attorney Waldref further announced that BNL’s owner, Wilson Pershing Stevenson III, of Nashville, Tennessee, agreed to pay $1,105,498 as part of a civil settlement in the case to resolve his individual liability arising from BNL’s receipt of COVID relief funding. 

In the plea agreement accepted by the court and in information disclosed during court proceedings, between 2020 and 2021, BNL provided contract labor services to Hanford Site prime contractors.  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.

In April of 2020, BNL applied for and received a $493,865 loan as part of the Paycheck Protection Program (PPP). Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide funding to small businesses in order to mitigate the economic impacts of the COVID-19 pandemic for small and local businesses. PPP loans were fully guaranteed by the United States, and the U.S. Small Business Administration (SBA) may grant a small business borrower forgiveness so long as the loan proceeds have been used for payroll and other eligible expenses. 

BNL fraudulently sought and obtained PPP funding for BNL employees despite their pay and benefits already being covered by DOE contract funds and other federal sources including the Veterans Administration. Shortly after receiving the funds, BNL transferred and used more than $424,230 of the PPP proceeds on unauthorized expenditures.

In August of 2021, BNL, through its sole owner Wilson Pershing Stevenson III, requested and was granted forgiveness of the $493,865 PPP loan, by falsely and fraudulently certifying the loan proceeds had been used for eligible uses and business expenses between April and October of 2020. 

“These critical and limited COVID-19 funds were set aside to help small businesses stay afloat during a deadly pandemic. BNL fraudulently obtained these funds and then illegally used the money for their own purpose,” stated U.S. Attorney Waldref. “I’m proud of the work done by my Office’s COVID-19 Fraud Strike Force in this case. By holding fraudsters accountable, we are protecting small and local businesses that are so important to our community and economy.” 

“Today’s guilty plea should send a message that the VA Office of Inspector General will diligently pursue those who would illegally line their pockets at the expense of the taxpayer,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG will continue to work with our law enforcement partners as part of the COVID-19 Strike Force to investigate fraud against relief programs intended to support bona fide recipients.”

“The misuse of pandemic relief funds intended to support struggling small businesses is a serious offense that undermines the integrity of critical assistance programs,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our office will remain steadfast in pursuing those who use such vital resources for personal gain. I want to thank the U.S. Attorney’s office and our law enforcement partners for their collaboration and dedication to justice in this case.”

This case was investigated as part of the U.S. Attorney’s Office COVID-19 Fraud Strike Force, an interagency team of federal law enforcement agencies dedicated to combatting COVID relief fraud in Eastern Washington. The BNL 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 VA Office of Inspector General. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting the case on behalf of the United States.

Yakima, Washington - On October 21, 2024, Chief United States District Judge Stanley A. Bastian sentenced Branden Scott Higgins, age 34, of White Swan, Washington, to nearly 3 months in federal prison for choking and assaulting his girlfriend. Chief District Judge Bastian also imposed 3 years of supervised release. 

According to court documents and information presented at the sentencing hearing, on September 10, 2023, Higgins and his girlfriend got into an argument about the couple’s finances. The argument escalated into a physical fight with Higgins pushing, then choking the victim, who was 26-weeks pregnant. Higgins then let go of the victim’s throat and grabbed a serrated knife and took two steps toward the victim before throwing the knife away. 

The confrontation continued into the master bedroom. Higgins pushed the victim onto the bed and began to choke her until the victim began to lose consciousness. Higgins only stopped the assault when the couple’s young child walked into the room. 

“Everyone deserves to live in a safe home. My heart goes out to this young mother who told investigators she feared for her life and the life of her unborn child while she was being choked to the point of unconsciousness,” stated U.S. Attorney Vanessa Waldref. “My office is committed to holding domestic violence offenders accountable, which is central to addressing the crisis of missing and murdered indigenous women and promoting safety and security on Tribal lands.” 

This case was investigated by the FBI and the Yakama Nation Police Department. It was prosecuted by Assistant United States Attorneys Letitia A. Sikes and Courtney R. Pratten. 

1:23-cr-02056-SAB

Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced a federal grand jury has an indicted a Spokane dermatologist, and his associated businesses, for fraudulently obtaining and using approximately $1.5 million dollars in COVID-19 relief funds to purchase luxury sports cars, buy real estate, and pay off personal debt. 

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 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.  EIDL funds were to be used solely as working capital to alleviate economic injury to a business caused by the COVID-19 disaster, such as paying payroll, health insurance premiums, rent, utilities, and fixed debt payments.  EIDL funds were not to be used for personal purposes or to obtain real property or to pay off debts that were not yet due and owing, such as paying more than a fixed monthly payment on a mortgage or other loan.

The Indictment announced today charges William Philip Werschler, age 66, of Spokane, Washington, along with his businesses Spokane Dermatology Clinic, Premier Clinical Research L.L.C., and 3^rd and Sherman Plaza L.L.C., with 23 counts of fraud in connection with how Werschler and his businesses allegedly spent EIDL loans. 

Beginning no later than April 2020 and continuing until at least July 2022, Werschler applied for EIDL loans for his businesses: Spokane Dermatology Clinic, Premier Clinical Research, and 3^rd and Sherman Plaza L.L.C.  In total, Werschler and his businesses received more than $2.9 million in EIDL money. 

The Indictment alleges that Werschler used the EIDL funds for personal purchases including over half of the $575,000 purchase price of a house in Scottsdale, Arizona; the purchase of a 2011 Porsche 911 GT3 for $166,687; the purchase of a 1997 Porsche Carrera for $88,687; and $123,960 to pay off a loan for a storage unit at 6720 N. Pittsburg Street that was used to store automobiles, jet skis, and a boat. According to the indictment, Werschler also allegedly used EIDL money to pay off the balance of a loan for property on Grant Street in Spokane, Washington, for $286,792, and $550,000 to purchase two properties across from his Spokane Dermatology Clinic, both contrary to the proper use of EIDL funds. 

“Many small and local businesses struggled to stay afloat during the COVID-19 pandemic. The Economic Injury Disaster Loan program was designed to provide those business owners an economic lifeline,” stated U.S. Attorney Waldref. “My office has made it a priority to hold fraudsters accountable who used these critical funds to enrich themselves.”

 This case was investigated by the IRS Criminal Investigations, the FBI, and the Small Business Administration Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jeremy J. Kelley. 

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

Spokane, Washington - United States Attorney Vanessa Waldref announced today that Assistant United States Attorney (AUSA) Frieda Zimmerman will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election.  AUSA Zimmerman has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Washington, and in that capacity is responsible for overseeing the District’s handling of complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

United States Attorney Waldref said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election.  Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence.  The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).   

United States Attorney Waldref stated that: “The right to vote is the cornerstone of American democracy.  We all must ensure that those who are entitled to this right can exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Zimmerman will be on duty in this District on election day. She can be reached by the public at the following telephone number: (509) 353-2767.”

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (509) 458-8100.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

United States Attorney Waldref said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over ballot drop boxes, and almost always have faster reaction capacity in an emergency.

RICHLAND, WA – This year’s 20th Annual Youth and Justice Forum is set to welcome a record number of nearly 200 middle and high school students from across the region. The event will take place from 8:30 a.m. to 2 p.m. on Friday, Oct. 25, at the Richland Federal Building and U.S. Courthouse at 825 Jadwin Ave. in Richland.

This full-day event offers middle and high school students the opportunity to engage with local leaders in the justice system, explore higher education pathways, and learn about career opportunities in the field. This year’s forum will also feature a special message from United States Senator Patty Murray. During the event participants will engage directly with judges, lawyers, law enforcement officers, probation officers, and other professionals, gaining insights into the justice system, their rights, and responsibilities as community members. 

Additionally, students will explore potential career paths in justice-related fields. The forum’s principal goal is to foster racial and ethnic diversity within the justice system, ensuring it reflects and serves the communities it represents.

This year's registered schools include: Chiawana High School, Pasco High School, Delta High School, Kennewick High School, Legacy High School, New Horizons High School, Prosser High School, Riverview High School, Wahluke Jr. High School, Walla Walla High School, Southridge High School, Hanford High School, Kiona-Benton City High School, Horse Heaven Hills Middle School, Housel Middle School, Ochoa Middle School, Finley Middle School and Highlands Middle School.