U.S. Attorney Announces Office Collects Over $7 Million

BOISE – United States Attorney Wendy J. Olson announced today that her office's Financial Litigation Unit collected more than $4.9 million in civil debts and in criminal fines, assessments, and restitution for the fiscal year that ended September 30, 2015.  U.S. Attorney Olson stated that the Financial Litigation Unit collected $2,504,945 in criminal fines, assessments, and restitution, and $2,427,383 in civil debts.  In addition, the Asset Forfeiture Unit collected approximately $2.3 million representing proceeds and instruments of crime in both criminal and civil forfeitures.  

“The more than $7.2 million our staff collected through civil debts, asset forfeiture, fines, assessments and restitution exceeds the U.S. Attorney's Office's annual operational budget,” said Olson.  “Our collection and asset forfeiture staffs of attorneys, paralegals, analysts and fiscal agents ensure that those who owe the federal government money as a result of litigation in this district or as a result of longtime debt, such as student loans, make appropriate payments.  They also ensure that those who have profited from committing crimes in the District of Idaho are deprived of the proceeds and tools of their crimes.  This year, all of these dedicated individuals have done outstanding work and served this office, taxpayers and the federal government well.”

The Financial Litigation Unit collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud.  It also collects civil debts for defaulted student loans and defaulted federally financed mortgages, working with debtors to arrange viable payment plans.  During fiscal year 2015, the office collected over $2.4 million in civil debt.  Of that, the office collected $1.5 million from EPA violations concerning release of hazardous substances.  This includes payments from Hecla Mining Company, P4 Production, and Clearwater Paper Corp.

In addition, the U.S. Attorney’s Office collected approximately $70,333 in defaulted student loans and $293,000 in fire suppression costs for human-caused fires.

From convicted criminals, the U.S. Attorney's Office collects fines, assessments, restitution, and asset forfeitures.  Victims of crime receive funds collected in criminal restitution cases.  In fiscal year 2015, the U.S. Attorney's Office collected over $2.5 million in criminal restitution that was distributed to victims of crime.  Other criminal collections such as fines go into the Crime Victims Fund.  From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country.  Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime.  Other recoveries go back to agency creditors.  

During the fiscal year, some notable criminal fine collections include: the collection of Randal Watson’s criminal fine of $25,000 associated with a drug offense; the collection of $50,000 from Owyhee Construction related to a fine for EPA clean-up costs; and the collection of $100,000 from Jeremy DeLuca as payment of a criminal fine related to misbranding of products at bodybuilding.com in 2008-2009.  In addition, funds were collected for crime victims, such as $25,500 from Melody Redondo related to mortgage fraud; $12,275 from Richard Zaranek related to embezzlement from a school district; and $17,452 from Robert Holloway related to bank robbery.  Through the Treasury Offset program, the office collected $11,586 from Aaron Hymas related to mortgage fraud.

Notable recoveries of the proceeds of crime through asset forfeiture include two drug cases involving the illegal trafficking and sale of analogues (synthetic marijuana) and drug paraphernalia in Boise, Nampa, Twin Falls and Pocatello.  Approximately $1.3 million in drug trafficking proceeds were recovered in these cases.