District of Oregon
Press releases recorded for this federal judicial district.
Las Vegas Man Sentenced to Federal Prison for Stealing Hundreds of Thousands of Dollars in Change from Coin-Cashing MachinesRead the Press Release
PORTLAND, Ore.—A Las Vegas man was sentenced to federal prison Thursday for impersonating an employee of a coin-cashing company to steal hundreds of thousands of dollars in change from coin-cashing machines in multiple states.
Richard Anthony Pena, 34, was sentenced to 48 months in federal prison and three years’ supervised release. Pena was also ordered to pay approximately $582,000 in restitution.
According to court documents, from approximately January 1, 2021, and continuing until his arrest on December 22, 2021, in Clark County, Washington, Pena engaged in an elaborate scheme to steal hundreds of thousands of dollars in change from coin-cashing machines located in grocery stores and other commercial establishments in multiple states.
To carry out his scheme, Pena would disguise himself as an employee of a coin-cashing company, walk into various stores, act as if he was servicing the location’s coin-cashing machine, break into the machine, and walk out with the machine’s coin vault. Pena’s repeated this ruse dozens of times in stores en route from his home in Las Vegas to a grocery store in Vancouver, Washington where an alert employee observed Pena and notified law enforcement.
After his arrest, sheriff deputies from Clark County, Washington searched Pena’s rented vehicles and local hotel room. They located clothing Pena wore to disguise himself, tools he used to break into the coin-chasing machines, and laundry baskets and bags filled with millions of coins. Investigators seized approximately 1.5 million stolen coins totaling more than $133,000. In total, Pena cost his victim coin-cashing company more than $715,000 in losses and damage to coin-cashing machines.
On March 10, 2022, a federal grand jury in Portland returned an indictment charging Pena with conspiring with others to transport and transporting stolen money. On March 10, 2023, he pleaded guilty to the conspiracy charge.
This case was investigated by the FBI and Clark County (Washington) Sheriff’s Office. It was prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
WASHINGTON—The Department of Justice announced Wednesday the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people.
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities.” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
“We are pleased to join Attorney General Garland and other department leaders in making this important announcement. For years, supporting and enhancing public safety in Tribal communities has been a top priority for our office,” said Natalie Wight, U.S. Attorney for the District of Oregon. “We are eager to be among the districts leading the department’s efforts to prevent and respond to missing and murdered Indigenous people.”
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to United States Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
The program will dedicate five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys.
“The Executive Office for United States Attorneys and the United States Attorney community are committed to preventing and responding to cases of missing or murdered Indigenous people. To that end, we will work together with all relevant federal, Tribal, state and local law enforcement partners to locate missing persons and solve crimes where they have occurred,” said Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson. “This new program will allow the Department to build upon the work done by individual United States Attorneys’ offices and ensure continued support to those offices by coordinating outreach regionally on MMIP matters.”
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
In early 2022, the District of Oregon established an MMIP Working Group to increase multi-agency communication and collaboration in support of and response to Oregon-connected MMIP cases. The Working Group includes at least one representative from each of the nine federally recognized Tribes in Oregon, the FBI, Bureau of Indian Affairs, U.S. Department of Interior Regional Solicitor’s Office, U.S. Marshals Service, Oregon Department of Justice, Oregon State Medical Examiner’s Office, and Oregon State Police.
To learn more about the District of Oregon’s MMIP program, please visit https://www.justice.gov/usao-or/indian-country/mmip.html.
Eugene Man Faces Federal Charges for Unlawfully Possessing Machine Guns and a SilencerRead the Press Release
EUGENE, Ore.—An indictment was unsealed in federal court Wednesday charging a local man with illegally possessing two firearms converted into fully-automatic machine guns and a silencer.
Joshua Allen Lampe, 35, a Eugene resident, has been charged with unlawfully possessing two machine guns and a silencer. The National Firearms Act makes it illegal to possess and transfer certain firearms, including machine guns and silencers, without proper registration.
According to court documents, in an August 2022 search of Lampe’s Eugene residence, investigators located and seized dozens of firearms, knives, ammunition, firearm accessories and parts, scopes, laser sights, packaging materials, tactical gear, and other types of armaments.
In December 2022, investigators sought and obtained a warrant to search Lampe’s home for a second time in just four months. They discovered Lampe had quickly amassed hand tools, a rifle, firearm parts, machine gun switches, a 3D printer used to make switches, several ghost guns, a silencer, and packaging materials as well as methamphetamine, heroin, and fentanyl pills.
Analysis and testing by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) later confirmed two pistols seized from Lampe’s residence were operative machine guns having been converted with switches. An analysis also confirmed the silencer seized was an operative device.
Machine gun switches, sometimes referred to as “Glock switches,” are small attachments used to convert firearms from semi-automatic to fully-automatic.
Lampe made his initial appearance in federal court today before U.S. Magistrate Judge Mustafa T. Kasubhai. He was arraigned, pleaded not guilty, and released on conditions pending a jury trial scheduled to begin on September 5, 2023.
Illegally possessing a machine gun and a silencer are punishable by up to ten years in federal prison per count of conviction.
This case was investigated by ATF and the Eugene Police Department with assistance from the Lane County Sheriff’s Office. It is being prosecuted by the William M. McLaren, Assistant U.S. Attorney for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Drug Trafficker Faces Federal Charges After Portland Overdose DeathRead the Press Release
PORTLAND, Ore.—An area drug trafficker is facing federal charges Wednesday after his supply of illicit fentanyl was linked to a fatal overdose in Portland.
Efrain Roberto Diaz-Rangel, 34, a Mexican National residing in Portland, has been charged by criminal complaint with possessing with intent to distribute fentanyl and heroin.
According to court documents, in April 2023, the Westside Interagency Narcotics Team (WIN) began investigating a suspected fentanyl overdose of an adult victim in Portland. Investigators identified multiple people involved in a distribution chain responsible for selling counterfeit Oxycodone pills manufactured with fentanyl, some of which were determined to have caused the Portland victim’s overdose death. In May 2023, WIN requested investigative assistance from Homeland Security Investigations (HSI). Together, WIN and HSI obtained evidence that Diaz-Rangel was involved in the fentanyl distribution chain previously identified.
On June 27, 2023, HSI special agents arrested Diaz-Rangel. At the time of his arrest, Diaz-Rangel possessed approximately 1,000 counterfeit pills and a small quantity of heroin. Inside Diaz-Rangel’s residence, the agents located an additional 30,000 counterfeit pills, several additional pounds of heroin, and more than $10,000 in cash.
Diaz-Rangel made his first appearance in federal court today before U.S. Magistrate Judge Stacie F. Beckerman. He was ordered detained pending further court proceedings.
This case was jointly investigated by WIN and HSI with assistance from the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) Interdiction Task Force (HIT) and Portland Police Bureau. It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Drug Dealer Sentenced to More Than 12 Years in Federal Prison for Role in Fentanyl Death of Hillsboro ManRead the Press Release
PORTLAND, Ore.—A Portland area drug dealer was sentenced to federal prison Wednesday for distributing counterfeit pills containing fentanyl that caused the fatal overdose of a Hillsboro, Oregon man.
David Weaver, 40, a Portland resident, was sentenced to 150 months in federal prison and five years’ supervised release.
According to court documents, on February 3, 2021, a 25-year-old man was found deceased by his parents at their home in Hillsboro after he consumed a counterfeit Oxycodone pill containing fentanyl. In less than three weeks, law enforcement uncovered a four-person drug distribution chain whose illicit actions led to the young man’s death. Investigators identified Weaver as the person who purchased the deadly counterfeit pills from a drug trafficker who transported them from California to Oregon. Weaver resold the pills to others, including the individuals who supplied the pills to the Hillsboro overdose victim.
On February 18, 2021, using a seized cell phone, investigators arranged to purchase 100 fentanyl pills from Weaver who they arrested en route to a meeting location. A search of Weaver’s car and home led to the discovery and seizure of more than 900 fentanyl pills, approximately three and half pounds of methamphetamine, two pounds of heroin, a 9mm handgun, a shotgun with an obliterated serial number, and $22,483 in cash. Five days later, on February 23, 2021, investigators located and arrested Weaver’s supplier, Gerardo Corrales-Aragon, 30, whose place of residence is unknown, as he was leaving a Portland hotel.
On March 16, 2021, a federal grand jury in Portland returned a 13-count indictment charging Weaver, Corrales-Aragon and three others with conspiring with one another to possess with intent to distribute fentanyl and other related offenses.
On August 31, 2022, Weaver pleaded guilty to possessing with intent to distribute methamphetamine. As part of his plea agreement, Weaver agreed to a sentencing enhancement that his fentanyl distribution resulted in the death of the Hillsboro victim.
On March 6, 2023, Corrales-Aragon pleaded guilty to possessing with intent to distribute fentanyl and agreed to the same sentencing enhancement as Weaver. On June 9, 2023, Corrales-Aragon was sentenced to 150 months in federal prison and five years’ supervised release.
This case was investigated by the Portland Police Bureau, Washington County Sheriff’s Office, and Hillsboro Police Department with assistance from Homeland Security Investigations (HSI). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Drug Dealer Sentenced to 8 Years in Federal Prison for Role in Fentanyl Death of Yamhill County TeenRead the Press Release
PORTLAND, Ore.—An Oregon man was sentenced to federal prison Tuesday for distributing counterfeit pills containing fentanyl that caused the fatal overdose of a Yamhill County teen.
Dylan Wilson, 26, of Lafayette, Oregon, was sentenced to 96 months in federal prison and three years’ supervised release.
According to court documents, on July 21, 2021, Yamhill County Sheriff’s Office deputies responded to the fatal overdose of a 15-year-old in Dayton, Oregon. A search of the victim’s cell phone and an interview with one of the victim’s minor friends revealed that the victim had recently purchased what they thought were Oxycodone pills from Wilson. The victim was not aware that the counterfeit pills, labeled with “M30,” contained fentanyl. A toxicology report later confirmed the victim died of a fentanyl overdose.
The next day, on July 22, 2021, Yamhill County deputies and FBI special agents surveilled Wilson’s residence in Lafayette and arrested him without incident. Wilson confessed to knowing the victim was a minor before selling the counterfeit pills. A search of Wilson’s cell phone revealed evidence of his fentanyl supplier. Investigators identified the supplier as Scott Keeling, 23, of McMinnville, Oregon, and arrested Keeling the same day.
On December 7, 2021, a federal grand jury in Portland returned a three-count indictment charging Wilson and Keeling with conspiring with one another and others to possess with intent to distribute fentanyl and possessing with intent to distribute fentanyl.
On February 21, 2023, Keeling pleaded guilty to possessing with intent to distribute fentanyl. Two months later, on April 5, 2023, Wilson pleaded guilty to the same charge. On May 30, 2023, Keeling was sentenced to 96 months in federal prison and three years’ supervised release.
This case was investigated by the Yamhill County Sheriff’s Office and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Portland Area Gang Member Arrested, Faces Federal Charges for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.—A known Hoover Criminal Gang member arrested today at his home in Gresham, Oregon is facing federal charges for illegally possessing a firearm as a convicted felon.
Shakor Shovontae Ray Holiday, 29, has been charged by criminal complaint with one count of illegally possessing a firearm as a convicted felon.
According to court documents, with five prior felony convictions, including a 2020 federal conviction for illegally possessing a firearm as a convicted felon, Holiday is prohibited from possessing firearms. Despite this restriction, in May 2023, law enforcement obtained several images and videos of Holiday in possession of at least one firearm. Two videos obtained by investigators appeared to show Holiday driving a vehicle while holding an AR-style assault rifle and threatening rivals. Holiday was also observed in the photos and videos displaying various gang signs, including “H” and “107” hand signs associated with the Hoover Criminal Gang.
Today, investigators executed a federal search warrant on Holiday’s Gresham residence. They located and seized a 9mm handgun and an AR-style assault rifle resembling the firearm depicted in the photos and videos reviewed by law enforcement.
Holiday made his first appearance in federal court today before U.S. Magistrate Judge Jeffrey Armistead. He was ordered detained pending further court proceedings.
Illegally possessing a firearm as a convicted felon is punishable by up to 15 years in federal prison, three years’ supervised release, and a $250,000 fine.
This case was investigated by the FBI with assistance from the Portland Police Bureau, Gresham Police Department, Multnomah County Sheriff’s Office and Homeland Security Investigations (HSI). It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Former Federal Law Enforcement Officer Sentenced to 14 Years in Federal Prison for Transportation of Child PornographyRead the Press Release
EUGENE, Ore.—On June 20, 2023, a former Veteran’s Administration police officer and resident of Roseburg, Oregon was sentenced to federal prison for repeatedly placing hidden cameras in sensitive personal locations to capture sexually explicit photos and videos of minors.
Robert Wayne Roady, 50, was sentenced to 168 months in federal prison and 10 years’ supervised release.
In October 2020, Roady’s conduct was reported to the Douglas County Sheriff’s Office who opened an investigation. Roady later admitted to hiding the cameras.
On November 5, 2020, a federal grand jury in Eugene returned an indictment charging Roady with attempted sexual exploitation of a child. On March 1, 2023, Roady pleaded guilty to a one-count criminal information charging him with attempted transportation of child pornography.
This case was investigated by the Douglas County Sheriff’s Office with assistance from the FBI. It was prosecuted by Adam E. Delph and Jeffrey S. Sweet, Assistant U.S. Attorneys for the District of Oregon with assistance from Allison D. Eichmann, Chief Deputy District Attorney for the Douglas County District Attorney’s Office.
If you or someone you know are in immediate danger, please call 9-1-1.
Anyone who has information the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Portland Area Diesel Repair Shop and Shop Owner Plead Guilty to Clean Air Act ViolationsRead the Press Release
PORTLAND, Ore.—A Portland area diesel repair shop and its owner pleaded guilty today in federal court to knowingly and intentionally tampering with monitoring devices on more than 200 vehicles after removing their emissions controls in violation of the Clean Air Act.
Pure Addiction Diesel Performance, LLC, located in Hillsboro, Oregon, pleaded guilty to tampering with pollution monitoring devices and was ordered to pay a fine of $148,733 to the Environmental Protection Agency (EPA). The company was also sentenced to three years’ probation.
Pure Addiction’s owner and operator, Travis Turner, 38, a resident of Forest Grove, Oregon, pleaded guilty to being an accessory to the tampering of monitoring devices and was sentenced to six months in federal prison.
“By disabling the emissions control systems of hundreds of diesel vehicles, Pure Addiction and its owner, Travis Turner, favored their own financial interests above the health and safety of our community, said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office. “We will continue working closely with our partners at the EPA to ensure all businesses and business owners play by the rules.”
“The defendants installed emissions defeat equipment on hundreds of diesel trucks, resulting in substantial increases in pollution from each individual vehicle,” said Scot Adair, Special Agent in Charge of EPA’s Criminal Investigation Division (CID) in Oregon. “EPA CID will continue to focus on stopping the usage of illegal defeat devices that contribute to serious health problems and put our communities at risk.”
According to court documents, beginning in at least 2018 and continuing through 2020, Pure Addiction tampered with and disabled the emissions control systems of approximately 245 diesel vehicles for paying customers in violation of the Clean Air Act. Pure Addiction charged its customers approximately $2,000 each for the emissions modification and collected more $400,000 in total for the unlawful services over an approximately two-year period.
As owner of Pure Addiction, Turner took action to assist the company in evading detection by federal environmental authorities by issuing, maintaining, and subsequently providing to investigators sales invoices that included inaccurate or incomplete information about the company’s illegal vehicle modifications. 46 of the service invoices Turner provided to investigators reflected “parts only” transactions when, in fact, those transactions included additional service work that violated the Clean Air Act.
On June 1, 2023, Pure Addiction was charged with one count of Clean Air Act tampering. In the same information, Turner was charged with one count of being an accessory after the fact to Clean Air Act tampering.
This case was investigated by EPA CID. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorneys for the District of Oregon, and Karla Gebel Perrin, Special Assistant U.S. Attorney for the District of Oregon.
If you witness an environmental event that may lead to an immediate threat to human health or the environment, please call 9-1-1. After alerting local emergency authorities, please also report incidents to the EPA’s National Response Center by calling 1-800-424-8802.
Oregon Man Indicted for Role in the Torture, Mutilation, and Murder of MonkeysRead the Press Release
EUGENE, Ore.—On June 14, 2023, a federal indictment was unsealed charging a Prineville, Oregon man with administering an online animal abuse group and illegally possessing firearms as a dismissed military officer.
David Christopher Noble, 48, has been charged with conspiring to engage in animal crushing and creating and distributing animal crush videos, creating animal crush videos, and illegally possessing a firearm as a dishonorably discharged person.
According to court documents, from an unknown date but no later than January 19, 2022, and continuing until February 2, 2023, Noble is alleged to have knowingly conspired with others to view, encourage, and fund animal crush videos as part of an online group using an encrypted chat application. As a group administrator, Noble paid for the creation of and celebrated videos depicting the torture, sexually-sadistic mutilation, and murder of adult and juvenile monkeys. Noble further managed the group’s membership and repeatedly changed the group’s name to evade detection by law enforcement.
In 2006, Noble, a former United States Air Force Officer, was dismissed from the Air Force and ordered to serve six months in military custody following a court martial for fraud and an unprofessional relationship. Despite these offenses, Noble is alleged to have illegally possessed multiple firearms, including a Colt M4 carbine assault rifle.
In January 2023, Noble relocated from Prineville to Henderson, Nevada after a federal search warrant was executed on his Prineville residence. On June 13, 2023, he was arrested in Henderson. On June 14, 2023, Noble made his first appearance in federal court in Las Vegas and was ordered detained pending his transfer to the District of Oregon.
Creating animal crush videos is punishable by up to seven years in federal prison and three years’ supervised released. Illegally possessing a firearm as a dishonorably discharged person is punishable by up to 15 years in federal prison and three years’ supervised release.
This case was investigated by Homeland Security Investigations (HSI). It is being prosecuted by William M. McLaren and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
19-Year-Old Oregon Woman Faces Federal Charges for Running Social Media Drug Distribution Service Targeting MinorsRead the Press Release
PORTLAND, Ore.—A Clackamas County, Oregon woman is facing federal drug charges for using social media to advertise, sell, and distribute illegal drugs to minors in and around Portland.
Averi Rose Dickinson, 19, a resident of Damascus, Oregon, has been charged by criminal complaint with conspiring to distribute and distributing controlled substances and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, in January 2023, the FBI began investigating Dickinson after learning she ran a drug distribution service called “Kiki’s Delivery Service” that advertised and took orders for illegal narcotics on various social media applications including Instagram, Snapchat, and Telegram. Investigators soon discovered that Dickinson had been operating the service for up to three years, taking and fulfilling orders for cocaine, LSD, MDMA, ketamine, marijuana, and various forms of pills, both real and fake. Investigators also identified Dickinson as a source of supply within a larger drug distribution chain responsible for several juvenile drug overdoses.
On June 14, 2023, investigators executed federal warrants on Dickinson’s Damascus residence and vehicle. They located and seized quantities of cocaine, ketamine, marijuana, and counterfeit Xanax bars; $3,000 in cash; a Glock 9mm handgun with extended magazine; an AR-style assault rifle; and a bullet proof vest. Dickinson told investigators she believed approximately 50% of her drug distribution clients were minors and that she used several minors as runners to deliver drugs.
Dickinson made her first appearance in federal court today before U.S. Magistrate Judge John V. Acosta. She was ordered detained pending further court proceedings.
This case was investigated by the FBI, Homeland Security Investigations (HSI), Clackamas County Interagency Task Force (CCITF), and Portland Police Bureau. It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Seized firearm 02Pendleton Man Charged with Possessing Child Pornography, Additional Victims SoughtRead the Press Release
PORTLAND, Ore.—On June 13, 2023, a federal grand jury in Portland returned an indictment charging a Pendleton, Oregon man with possessing child pornography.
Cameron Jacob Sheoships, 55, has been charged with one count of possession of child pornography.
According to the indictment, on or about May 24, 2023, Sheoships is alleged to have knowingly and unlawfully possessed material containing child pornography, including depictions of a child under 12 years old.
On May 25, 2023, Sheoships made his initial appearance in federal court before U.S. Magistrate Judge Jeffrey Armistead. He was released on conditions pending future court proceedings.
If convicted, Sheoships faces a maximum sentence of 20 years in federal prison.
This case was investigated by the FBI. It is being prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
If you or someone you know are in immediate danger, please call 9-1-1.
Anyone who has information about possible crimes committed by Sheoships, or the physical or online exploitation of any children, are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oregon Man Pleads Guilty to Conspiring to Provide Material Support to ISISRead the Press Release
PORTLAND, Ore.—An Oregon man pleaded guilty in federal court today for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS) by producing and distributing propaganda and recruiting materials online in coordination with ISIS members overseas.
Hawazen Sameer Mothafar, 33, an Iraqi national residing in Troutdale, Oregon, pleaded guilty to one count of conspiracy to provide material support to a designated foreign terrorist organization.
According to court documents, Mothafar immigrated to the U.S. from Iraq in 2014 and, since his arrival, has resided in Troutdale. An ISIS supporter since 2014, Mothafar was the co-founder of the Sunni Shield Foundation, a pro-ISIS media organization that created and published violent propaganda promoting ISIS ideology and objectives. In this role, Mothafar created the Sunni Shield’s first media product, a video of ISIS battle footage obtained from an official ISIS online platform intended to promote ISIS. In subsequent videos produced by Mothafar, he encouraged viewers to travel to Iraq and Syria to fight for ISIS and conduct attacks on behalf of the organization.
Mothafar and other members of the Sunni Shield obtained ISIS Central Media’s permission to begin publishing Al Anfal, an online newspaper promoting the Islamic State’s goals and advocating violent jihad. Mothafar oversaw planning and production of the publication while also serving as one of its graphic designers. Graphics designed by Mothafar for the publication incited readers to attack and kill Westerners and conduct knife attacks against ISIS enemies.
Mothafar communicated directly with ISIS Central Media officials in Iraq, from whom he regularly took instructions about media production. He represented the Sunni Shield in a private online group comprised of ISIS Central Media officials and representatives of other ISIS supporter groups. In this group, ISIS media officials would pass instructions to the supporter groups about official ISIS media campaigns. The supporter groups, including the Sunni Shield, would then prepare media materials to publish in support of the campaigns.
In addition to his work with the Sunni Shield, Mothafar aided other pro-ISIS media organizations and conspired with numerous ISIS associates in furtherance of his support to the terrorist organization. Mothafar provided graphic designs to the Khattab Media Foundation, assisted in the production of the Youth of the Caliphate magazine, published ISIS news on Nashr News Agency channels, worked with Fursan al-Rafa’ (Knights of Uploading) to publish pro-ISIS material on various websites, and assisted the Saqri Foundation with designs. Mothafar also communicated with Abu Qaswara al-Shanqiti, a Specially Designated Global Terrorist imprisoned in West Africa, and connected Qaswara al-Shanqiti with two ISIS officials in hopes of aiding his release.
On November 3, 2020, a federal grand jury in Portland returned a five-count indictment charging Mothafar with conspiring to provide material support to a designated foreign terrorist organization, providing and attempting to provide material support to a designated foreign terrorist organization, and making false statements in an immigration application and to a government agency.
Mothafar faces a maximum sentence of 20 years in prison, a $250,000 fine, and a life term of supervised release. He will be sentenced on January 11, 2024, before U.S. District Court Judge Marco A. Hernández.
This case was investigated by the FBI Portland Field Office. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Oregon Man Pleads Guilty to Conspiring to Provide Material Support to ISISRead the Press Release
An Oregon man pleaded guilty in federal court today for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS) by producing and distributing propaganda and recruiting materials online in coordination with ISIS members overseas.
Hawazen Sameer Mothafar, 33, an Iraqi national residing in Troutdale, Oregon, pleaded guilty to one count of conspiracy to provide material support to a designated foreign terrorist organization.
According to court documents, Mothafar immigrated to the U.S. from Iraq in 2014 and, since his arrival, has resided in Troutdale. An ISIS supporter since 2014, Mothafar was the co-founder of the Sunni Shield Foundation, a pro-ISIS media organization that created and published violent propaganda promoting ISIS ideology and objectives. In this role, Mothafar created the Sunni Shield’s first media product, a video of ISIS battle footage obtained from an official ISIS online platform intended to promote ISIS. In subsequent videos produced by Mothafar, he encouraged viewers to travel to Iraq and Syria to fight for ISIS and conduct attacks on behalf of the organization.
Mothafar and other members of the Sunni Shield obtained ISIS Central Media’s permission to begin publishing Al Anfal, an online newspaper promoting the Islamic State’s goals and advocating violent jihad. Mothafar oversaw planning and production of the publication while also serving as one of its graphic designers. Graphics designed by Mothafar for the publication incited readers to attack and kill Westerners and conduct knife attacks against ISIS enemies.
Mothafar communicated directly with ISIS Central Media officials in Iraq, from whom he regularly took instructions about media production. He represented the Sunni Shield in a private online group comprised of ISIS Central Media officials and representatives of other ISIS supporter groups. In this group, ISIS media officials would pass instructions to the supporter groups about official ISIS media campaigns. The supporter groups, including the Sunni Shield, would then prepare media materials to publish in support of the campaigns.
In addition to his work with the Sunni Shield, Mothafar aided other pro-ISIS media organizations and conspired with numerous ISIS associates in furtherance of his support to the terrorist organization. Mothafar provided graphic designs to the Khattab Media Foundation, assisted in the production of the Youth of the Caliphate magazine, published ISIS news on Nashr News Agency channels, worked with Fursan al-Rafa’ (Knights of Uploading) to publish pro-ISIS material on various websites, and assisted the Saqri Foundation with designs. Mothafar also communicated with Abu Qaswara al-Shanqiti, a Specially Designated Global Terrorist imprisoned in West Africa, and connected Qaswara al-Shanqiti with two ISIS officials in hopes of aiding his release.
On Nov. 3, 2020, a federal grand jury in Portland returned a five-count indictment charging Mothafar with conspiring to provide material support to a designated foreign terrorist organization, providing and attempting to provide material support to a designated foreign terrorist organization, and making false statements in an immigration application and to a government agency.
Mothafar faces a maximum sentence of 20 years in prison, a $250,000 fine, and a life term of supervised release. Sentencing is scheduled for Jan. 11, 2024 before U.S. District Court Judge Marco A. Hernández.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Natalie K. Wight, and Assistant Director Robert R. Wells of the FBI Counterterrorism Division made the announcement.
The FBI Portland Field Office is investigating the case.
Three Men Face Federal Charges After Portland Overdose DeathRead the Press Release
PORTLAND, Ore.—Three Honduran nationals are facing federal drug trafficking charges today after their supply of illicit fentanyl was linked to a fatal overdose in Portland.
Manuel Velasquez-Estrejo, 38, Jorge Rivera-Nunez, 27, and Dennis Palma-Hurbina, 23, have been charged by federal criminal complaint with conspiring to possess and possessing with intent to distribute fentanyl.
According to court documents, on the morning of June 7, 2023, a sheriff deputy from the Washington Interagency Narcotics Team (WIN) responded to the scene of a fatal overdose on West Burnside Street in Portland where a deceased victim had been found by her adult son. The victim’s son told investigators that he and his mother had recently purchased around 100 fentanyl pills for $200 from a person later determined to be Velasquez-Estrejo. Later the same day, law enforcement arrested Velasquez-Estrejo in possession of approximately 1,000 multicolored fentanyl pills and two ounces of powdered fentanyl. They also located a motel room key on Velasquez-Estrejo’s person.
Further investigation revealed that Velasquez-Estrejo was staying at a motel on Northeast 82nd Avenue in Portland with two associates identified as Rivera-Nunez and Palma-Hurbina. Investigators surveilled the motel property and arrested Rivera-Nunez and Palma-Hurbina as they were leaving their room. A search of the room returned more than six pounds of powdered fentanyl, 11,295 multicolored counterfeit Oxycodone pills containing fentanyl, and half a pound of methamphetamine.
All three defendants made their first appearances in federal court today before U.S. Magistrate Judge Youlee Yim You. They were detained pending further court proceedings.
This case was jointly investigated by WIN, the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) Interdiction Task Force (HIT), Portland Police Bureau, and Homeland Security Investigations (HSI). It is being prosecuted by Assistant U.S. Attorney Scott M. Kerin and Certified Law Student Kara Blatt for the District of Oregon
WIN includes representatives from the Washington County Sheriff’s Office, Beaverton and Hillsboro Police Departments, Oregon National Guard Counter Drug Program, U.S. Drug Enforcement Administration, and HSI.
A criminal complaint is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Drug Trafficker Sentenced to Federal Prison for Distributing Fentanyl Linked to Fatal Overdose in HillsboroRead the Press Release
PORTLAND, Ore.—A drug trafficker was sentenced to federal prison today for his role in a conspiracy to distribute fentanyl that led to the fatal overdose of a Hillsboro, Oregon man in February 2021.
Gerardo Corrales-Aragon, 30, whose place of residence is unknown, was sentenced to 150 months in federal prison and five years’ supervised release.
According to court documents, on February 3, 2021, a 25-year-old man was found deceased by his parents at their home in Hillsboro after he consumed a counterfeit Oxycodone pill containing fentanyl. In less than three weeks, law enforcement uncovered a four-person drug distribution chain whose illicit actions led to the young man’s death. Investigators identified Corrales-Aragon as the individual responsible for transporting the deadly counterfeit pills from California to Oregon for distribution in and around Portland.
On February 23, 2021, law enforcement arrested Corrales-Aragon as he was leaving a local hotel to deliver fentanyl and methamphetamine in exchange for cash. Investigators found 4,000 fentanyl pills and six pounds of methamphetamine in Corrales-Aragon’s backpack and a loaded 9mm “ghost gun” in his waistband. Corrales-Aragon admitted to selling counterfeit pills to the Hillsboro victim’s drug supplier and possessing a firearm for his own protection while trafficking drugs. By the time of his arrest, Corrales-Aragon had been working with Mexican drug cartels to distribute drugs in the U.S. for more than half his life.
On March 16, 2021, a federal grand jury in Portland returned a 13-count indictment charging Corrales-Aragon and four others with conspiring with one another to possess with intent to distribute fentanyl and other related offenses.
On March 6, 2023, Corrales-Aragon pleaded guilty and agreed to a sentencing enhancement that his fentanyl distribution resulted in the death of the Hillsboro victim.
This case was investigated by the Portland Police Bureau, Washington County Sheriff’s Office, and Hillsboro Police Department with assistance from Homeland Security Investigations (HSI). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Jury Convicts Southern Oregon Man After Boobytrapped Home Injures Federal OfficerRead the Press Release
MEDFORD, Ore.—On June 2, 2023, a federal jury in Medford found a southern Oregon man guilty of multiple crimes resulting from his boobytrapping of a home that injured an FBI bomb technician.
Gregory Lee Rodvelt, 71, a former resident of Williams, Oregon, was found guilty of assaulting a federal officer and using and discharging a firearm during and in relation to a crime of violence.
According to court documents, on September 7, 2018, bomb technicians from Oregon State Police (OSP) and the FBI went to a property in Williams formerly owned by Rodvelt that he had lost in lawsuit. After Rodvelt learned that a receiver had been appointed to sell the property, he proceeded to boobytrap it.
When the bomb technicians arrived at the property, they observed a minivan blocking the gate. The technicians found steel animal traps affixed to a gate post and under the hood of the minivan. They also located homemade spike strips, which the receiver had previously run over. As the technician neared the residence, they observed a hot tub that had been placed on its side and rigged in a manner that when a gate was opened it would activate a mechanical trigger causing the spa to roll toward the person who had opened the gate.
The technicians further observed that the windows of the residence had been barred from the inside and there were security doors at the front and rear of the residence. The front door also had what appeared to be bullet holes from shots fired inside. In the garage, they found a rat trap modified to accept a shotgun shell. Though the trap was unloaded, it was connected to the main garage door so it would be tripped when the door was opened.
The technicians and two other law enforcement officers gathered near the front of the residence and used an explosive charge to breach the front door. The group carefully entered the residence, looking for traps, and found a wheelchair in the center of the front entryway. When the wheelchair was bumped, it triggered a homemade shotgun device that discharged a .410 shotgun shell that struck the FBI bomb technician below the knee. The group administered first aid to the wounded technician and transported him to a local hospital.
Assaulting a federal officer with a deadly or dangerous weapon is punishable by up to 20 years in federal prison. Using and discharging a firearm during and in relation to a crime of violence is punishable by up to life in federal prison.
Rodvelt will be sentenced at a later date by U.S. District Court Judge Michael J. McShane.
This case was investigated by the FBI with assistance from OSP and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Judith R. Harper and Jeffrey S. Sweet, Assistant U.S. Attorneys for the District of Oregon.
Corvallis Sex Offender Sentenced to 15 Years in Federal Prison for Attempted Online Enticement of a ChildRead the Press Release
PORTLAND, Ore.—On May 30, 2023, a previously convicted sex offender residing in Corvallis, Oregon was sentenced to federal prison for attempting to entice a minor online and being a convicted felon in possession of a firearm.
Thomas Anthony Lanier, 24, a resident of Corvallis, was sentenced to 15 years in federal prison and a life term of supervised release.
According to court documents, in November 2019, Lanier, a convicted sex offender since he was 18, was charged in Sunnyside, Washington with second degree kidnapping and domestic violence after he tried to kidnap the one-year-old child of a woman he met online. Lanier is alleged to have grabbed the infant while the child’s mother was in the shower. When the woman ran outside and yelled for help, Lanier wrapped his arm around her neck and threatened to kill her. Lanier was later released pending trial in Yakima County Superior Court.
In June 2020, Lanier met a Keizer, Oregon, woman online. Lanier pressured the woman to solicit babysitting jobs on Craigslist so he could have access to children. Lanier later expressed his desire to have sex with the woman’s 12-year-old cousin who he had seen in a photo. After these exchanges, the woman reported Lanier to law enforcement.
On July 9, 2020, at the direction of a police detective from the Salem Police Department, the woman gave Lanier the address of a house in Salem, Oregon where she claimed her minor cousin lived. The house was, in fact, vacant and owned by the City of Salem. Lanier planned to meet the woman and her cousin at the residence, purchase alcohol with them, and engage in sexual activity with both of them. When Lanier arrived at the house, he was met by law enforcement and arrested.
On July 8, 2021, a federal grand jury in Portland returned a four-count indictment charging Lanier with attempting to entice a minor online, accessing with intent to view child pornography, illegally possessing a firearm as a convicted felon, and committing a felony offense involving a minor as a registered sex offender.
On January 5, 2023, Lanier pleaded guilty to attempting to entice a minor online and illegally possessing a firearm as a convicted felon.
This case was investigated by the FBI with assistance from the Keizer and Salem Police Departments. It was prosecuted by Gary Y. Sussman, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Construction Company Operator Sentenced to Federal Prison for Role in Payroll Tax Evasion SchemeRead the Press Release
PORTLAND, Ore.—A Portland area construction company operator was sentenced to federal prison today for his role in a multiyear scheme to evade the payment of payroll and income taxes on the wages of construction workers.
Melesio Gomez-Rivera, 49, of Aloha, Oregon, was sentenced to 30 months in federal prison and three years’ supervised release. He was also ordered to pay $29.9 million in restitution to the IRS.
According to court documents, Gomez-Rivera owned and operated a residential construction company called Novatos Construction. From January 2014 until December 2017, Gomez-Rivera and several other construction company owners conspired with each other and David A. Katz, 47, of Tualatin, Oregon, the operator of Check Cash Pacific, Inc., a check cashing business with locations in the Portland area and Vancouver, Washington, to defraud the United States by facilitating under-the-table cash wage payments to construction workers. Their actions, individually and collectively, impeded and obstructed the IRS’s ability to compute, assess, and collect payroll and income taxes due on the cash wages.
To carry out the scheme, Gomez-Rivera and the other company owners cashed or had other individuals cash millions of dollars in payroll checks at various locations of Katz’s check cashing business, used the cash to pay construction workers under-the-table, and filed false business and payroll tax returns. In total, the group cashed approximately $192 million in payroll checks, causing a combined employment and individual income tax loss of $68 million.
On December 2, 2021, a federal grand jury in Portland returned a five-count indictment charging Gomez-Rivera, Katz and four other individuals with conspiring with one another to defraud the United States. Katz was additionally charged with four counts of filing false currency transaction reports with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
On March 1, 2023, Gomez-Rivera became the first of the six co-conspirators to plead guilty. All others are awaiting a 10-day jury trial scheduled to begin on December 5, 2023.
This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorneys Seth D. Uram and Gavin W. Bruce of the District of Oregon are prosecuting the case.
Two Portland Area Drug Traffickers Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—On May 25, 2023, two Portland area drug traffickers were sentenced to more than ten years in federal prison for their roles in a Mexican drug trafficking organization responsible for distributing fentanyl, heroin, and methamphetamine in and around Portland and elsewhere.
Rodrigo Diaz-Lopez, 53, of Gresham, Oregon, and Jonathan Avila-Suarez, 31, of Portland, were sentenced to 135 and 120 months in federal prison, respectively. Both men must also complete five-year terms of supervised release following the completion of their prison sentences.
According to court documents, Diaz-Lopez and Avila-Suarez were part of a drug trafficking organization (DTO) led by two brothers based in Nayarit, Mexico. Diaz-Lopez, who has three prior felony drug trafficking convictions and has been repeatedly removed from the United States following those convictions, served as a sub-distributor in the DTO responsible for receiving illegal narcotics from couriers and other distributors and brokering local sales. Avila-Suarez was a sub-distributor and stash house operator.
In early February 2021, as part of a long-term investigation into the DTO’s operations, special agents from the U.S. Drug Enforcement Administration (DEA) obtained information that Avila-Suarez had arranged for the delivery of 400 grams of heroin to a Portland hotel room. Agents observed the delivery and seized the heroin from Avila-Suarez’s customer. The next day, agents executed a federal search warrant on Avila-Suarez’s Portland apartment. They located and seized large quantities of heroin, methamphetamine, and fentanyl packaged for distribution and two firearms.
Around the same time, agents identified Diaz-Lopez and arranged for a controlled purchase of methamphetamine from him. On March 12, 2021, they executed a federal search warrant on Diaz-Lopez’s Gresham residence and seized several kilograms each of methamphetamine, heroin, and counterfeit Oxycodone pills containing fentanyl. Agents also located and seized $30,000 in cash, an assault rifle, and a handgun.
On February 21, 2021, Avila-Suarez was charged by criminal complaint with possessing with intent to distribute controlled substances, using communications facilities in the commission of drug trafficking offenses, and maintaining drug involved premises. On March 15, 2021, Diaz-Lopez was charged by criminal complaint with possessing with intent to distribute controlled substances. Both men were later indicted on related charges.
On January 25, 2023, Avila-Suarez pleaded guilty to possessing with intent to distribute methamphetamine. One month later, on February 21, 2023, Diaz-Lopez pleaded guilty to possessing with intent to distribute heroin.
These cases were investigated by DEA. They were prosecuted by the U.S. Attorney’s Office for the District of Oregon.
These prosecutions were the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Local Entrepreneur Sentenced to Federal Prison for Covid-Relief FraudRead the Press Release
PORTLAND, Ore.—A Portland entrepreneur was sentenced to federal prison today for fraudulently applying for and obtaining loans intended to help small businesses during the Covid-19 pandemic.
Peter Peacock Blood, 59, was sentenced to 12 months in federal prison and 5 years’ supervised release. He was also ordered to forfeit more than $600,000 to the United States and to pay more than $590,000 in restitution to the U.S. Small Business Administration (SBA) and Chase Bank.
On March 25, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance to American employers suffering the economic effects of the Covid-19 pandemic and resulting shutdowns. According to court documents, in early April 2020, less than two weeks after the CARES Act was passed, Blood began submitting fraudulent applications for Covid-relief benefits on behalf of his two solar energy companies, Cycle Power Partners, LLC and Cycle Holdings, LLC.
Previously, Blood filed tax returns in 2019 and 2020 on behalf of Cycle Power Partners claiming the company had two or fewer employees, including Blood himself, and paid less than $9,600 in quarterly wages and other compensation. No quarterly tax returns were filed for Cycle Holdings during the same time period. Despite this, in two separate Paycheck Protection Program loan applications he submitted in April 2020, Blood claimed his companies had 10 employees and an average monthly payroll exceeding $116,000.
The first application resulted in a loan of more than $332,000 and the second, a loan of more than $290,000. Blood spent more than half of the funds received on a custom, military-style truck he outfitted into a camper and another $14,000 on home improvements.
On July 8, 2021, a federal grand jury in Portland returned an indictment charging Blood with two counts of loan fraud and, on December 16, 2022, he pleaded guilty to both counts.
This case was investigated by the SBA Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), and the FBI. It was prosecuted by Ryan W. Bounds and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Honduran Nationals Residing in Gresham Indicted for Roles in Fentanyl Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—Two Honduran Nationals residing in Gresham, Oregon have been indicted in federal court for transporting hundreds of thousands of counterfeit prescription pills containing fentanyl and several pounds of powdered fentanyl from California to Portland for resale.
Kevin Martinez-Avila, 27, and Allen Moya-Vargas, 29, have been charged with conspiring with one another and others to distribute and possess with intent to distribute fentanyl and possessing with intent to distribute fentanyl.
According to court documents, in February 2023, investigators from the Westside Interagency Narcotics Team (WIN) learned a drug courier from California was transporting a large load of fentanyl to somewhere in or around Portland. On February 22, 2023, WIN investigators located the courier’s vehicle and followed it to a residence in Gresham. Soon after, investigators observed Martinez-Avila drive away from the residence. They stopped his vehicle, searched it pursuant to a state search warrant, and located 47 grams of powdered fentanyl.
Inside the Gresham residence, investigators located Moya-Vargas, 150,000 counterfeit oxycodone pills containing fentanyl and more than seven pounds of powdered fentanyl. Investigators believe the residence was being used by Martinez-Avila and Moya-Vargas’ drug trafficking organization to unload and store fentanyl brought to the Portland area before it was distributed to others.
Both men made their initial appearances in federal court today before U.S. Magistrate Judge Jolie A. Russo. They were arraigned, pleaded not guilty, and ordered detained pending a jury trial scheduled to begin on June 27, 2023.
If convicted, Martinez-Avila and Moya-Vargas face maximum sentences of life in federal prison with 10-year mandatory minimum sentences.
This case was investigated by WIN. It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
WIN includes representatives from the Washington County Sheriff's Office, Beaverton and Hillsboro Police Departments, Oregon National Guard Counter Drug Program, U.S. Drug Enforcement Administration, and Homeland Security Investigations.
Jury Convicts Former Aequitas CEO and Company Executives for Roles in $300 Million Fraud ConspiracyRead the Press Release
PORTLAND, Ore.—After a six-week trial in Portland, a federal jury found three former executives of Aequitas Management, LLC, and associated companies, guilty today for their roles in a vast fraud conspiracy. Evidence at trial showed the conspirators raised nearly $300 million from defrauded investors.
Robert J. Jesenik, 63, former chief executive officer of Aequitas and resident of Lake Oswego, Oregon; Andrew N. MacRitchie, 59, formerly of Palm Harbor, Florida; and Brian K. Rice, 56, of Portland were found guilty of conspiring with one another to commit mail and wire fraud and 28 individual counts of wire fraud. Jesenik was also convicted of making a false statement on a loan application.
“Today’s guilty verdicts are an important milestone in the yearslong effort to hold Bob Jesenik and other former Aequitas executives accountable for cheating investors and going to extraordinary lengths to conceal the precarious and rapidly-declining financial condition of their company,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office.
“Theft is theft, whether it be taking from another's pocket or taking through a corrupt financial investment scheme. Bob Jesenik and his co-conspirators deliberately deceived investors and the federal government for years and now they will finally face the consequences,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Division. “The length of this investigation and this trial demonstrates the full measure to which the FBI, and our law enforcement partners, will go to seek justice. Today’s conviction sends a message that you will be held accountable for corrupt financial practices. We thank IRS-Criminal Investigation, the Employee Benefits Security Administration, and the U.S. Attorney’s Office for their diligent work on this case.”
“Strictly speaking, borrowing from Peter to pay Paul isn’t illegal. However, lying to Peter for personal financial gain and then not paying Paul is definitively criminal,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Corporate executives engaged in fraud tell a multitude of lies, and one of the first is convincing themselves they will get away with it. Today, these individuals are learning the cold, hard truth—they undeniably have not gotten away with it. IRS:CI is committed to bringing conmen and fraudsters to justice.”
“Some of the victims of this shameful scheme were participants of employee pension benefit plans, who worked hard for a secure retirement” said Klaus Placke, Employee Benefits Security Administration’s Regional Director in San Francisco. “We were pleased to partner with federal law enforcement agencies to prosecute these former executives to the full extent of the law.”
According to court documents, Jesenik, MacRitchie, Rice, and others used Aequitas, formerly headquartered in Lake Oswego, to solicit investments in a variety of notes and funds, many of which were purportedly backed by trade receivables in education, health care, transportation, and other consumer credit areas. At its peak, Aequitas employed nearly 200 people.
From June 2014 through February 2016, the former executives solicited investors by misrepresenting Aequitas’ use of investor money, the financial health and strength of the company and its subsidiaries, and the risks associated with its investments and investment strategies. Collectively, the defendants also failed to disclose other critical facts about the company, including its near-constant liquidity and cash-flow crises, the use of investor money to repay other investors and to defray operating expenses, and the lack of collateral to secure funds.
In 2005, Jesenik founded the Aequitas group of companies, and, as chief executive officer, controlled the organization’s structure and had ultimate decision-making authority over company activities. As elicited through trial testimony, Jesenik was a micromanager deeply entrenched in the day-to-day workings of Aequitas. He also served as the company’s principal pitchman, frequently telling others that Aequitas would one day rival leading asset management firms.
MacRitchie was Aequitas’s executive vice president and chief compliance officer responsible for the development and implementation of risk management and compliance processes and procedures. MacRitchie oversaw the company’s accounting, legal, and auditing functions, and participated in fundraising. He also established Aequitas’s New York office and directed the company’s “Lux Fund,” a Luxembourg-based fund used to solicit international investors.
Rice served as Aequitas’s executive vice president and president of wealth management. Among other responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitas’s affiliated RIAs.
The company’s largest holdings were from various hospital networks, a consumer debt-consolidator, a motorcycle lender, and Corinthian Colleges, one of the nation’s largest operators of for-profit technical and post-secondary schools. The student loans Aequitas owned from Corinthian Colleges, valued at more than $200 million, were by far the company’s largest single category of receivables.
By early 2014, the U.S. Department of Education began scrutinizing Corinthian’s graduation and job-placement rates and, by June of 2014, announced it would defer the payment of federal-aid funds to the schools. Soon after, Corinthian defaulted on its monthly recourse payment to Aequitas, costing the company more than $4 million per month.
The collapse of Corinthian Colleges set off a series of events that ultimately led to Aequitas’s own demise. Meanwhile, Jesenik, MacRitchie, Rice, and others committed numerous financial crimes in an effort to conceal Aequitas’ bleak financial picture. In June 2014, they prepared a letter to investors claiming that Corinthian’s woes would not impact Aequitas’s ability to recoup its investment from student borrowers. At the same time, they continued soliciting new non-equity investments in the company, falsely claiming Aequitas used new investment funds to purchase receivables when, in reality, they were using the funds to pay the company’s bills and prior investors. By July 2014, Aequitas was effectively insolvent, and, in March 2016, the company collapsed.
On July 13, 2022, a federal grand jury in Portland returned a 31-count superseding indictment charging Jesenik, MacRitchie, and Rice with one count each of conspiracy to commit mail and wire fraud and conspiracy to commit money laundering, and 28 counts of wire fraud. Jesenik was also charged with a single count of making a false statement on a loan application.
In 2019, former Aequitas executives and co-conspirators Brian A. Oliver, 58, of Aurora, Oregon, and Olaf Janke, 52, of Portland, pleaded guilty to conspiring to commit mail and wire fraud and money laundering. Oliver and Janke will be sentenced on December 19, 2023, and June 20, 2023, respectively, and, as part of their plea agreements, have agreed to pay restitution in full to their victims as recommended by the government and ordered by the court.
On May 26, 2022, former Aequitas senior executive and chief financial officer Nelson Scott Gillis, 70, of Lake Oswego, pleaded guilty to making a false statement to a bank. He will be sentenced on June 27, 2023, and has also agreed to pay full restitution.
Conspiracy to commit mail and wire fraud and wire fraud are punishable by up to 20 years in prison, three years’ supervised release, and a minimum $500,000 fine per count of conviction. Making false statements on a loan application is punishable by up to 30 years in prison, three years’ supervised release, and a $1 million fine.
This case was investigated by the FBI, IRS-Criminal Investigation, and U.S. Department of Labor Employee Benefits Security Administration. It was prosecuted by Ryan W. Bounds, Christopher L. Cardani, and Siddharth Dadhich, Assistant U.S. Attorneys for the District of Oregon. Assistant U.S. Attorney Hannah Horsley assisted the trial team.
Arizona Man Indicted for Shipping Fentanyl to Southern OregonRead the Press Release
MEDFORD, Ore.—A federal grand jury in Medford has returned an indictment charging a Phoenix, Arizona man with mailing large quantities of fentanyl to Southern Oregon.
Luke Austin Montgomery, 24, has been charged with three counts of attempting to distribute fentanyl.
According to court documents, in late 2022, law enforcement learned Montgomery had been shipping counterfeit oxycodone pills suspected to contain fentanyl from Phoenix to Southern Oregon. Soon after, investigators arranged the purchase of 1,000 counterfeit pills from Montgomery. The same day Montgomery fulfilled the order, he shipped an additional 10,000 pills to a second Southern Oregon address. Montgomery concealed the counterfeit pills in over-the-counter pill bottles packaged among various toiletries. Investigators later obtained videos Montgomery had allegedly created and used to sell the counterfeit pills on social media.
On May 9, 2023, Montgomery was arrested in Arizona. Today, he was ordered detained pending transfer to the District of Oregon.
Attempting to distribute more than 40 grams of fentanyl is punishable by up to 40 years in federal prison with a five-year mandatory minimum sentence, five years’ supervised release, and a $250,000 fine.
This case was investigated by the U.S. Drug Enforcement Administration and U.S. Postal Inspection Service. It is being prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
U.S. Attorney's Office Joins in Recognizing Missing and Murdered Indigenous Persons Awareness Day, May 5, 2023Read the Press Release
PORTLAND, Ore.— The U.S. Attorney’s Office for the District of Oregon joins its partners across the federal government, as well as people throughout American Indian and Alaska Native communities, in recognizing May 5, 2023, as National Missing and Murdered Indigenous Persons Awareness Day. Responding to unacceptable levels of violence that have caused a crisis of Missing or Murdered Indigenous Persons (MMIP) is a priority for the U.S. Attorney’s Office and the Department of Justice.
“The Justice Department is marshalling the full strength of its resources to confront the crisis of Missing or Murdered Indigenous Persons, which has devastated the lives of victims, their families, and entire Tribal communities,” said Attorney General Merrick B. Garland. “Addressing this crisis requires a whole-of-government approach, and we are grateful for the partnership of Tribal and other law enforcement agencies across the nation that are working alongside the Justice Department to help reduce crime and support victims in American Indian and Alaska Native communities.”
The department’s response to the MMIP crisis is a whole-of-department effort taking many forms. One year ago today, Deputy Attorney General Lisa Monaco joined Secretary of the Interior Deb Haaland to launch the Not Invisible Act Commission with the mission of reducing violence against American Indians and Alaska Natives. Later this year, the commission will deliver recommendations for addressing the MMIP crisis to the Attorney General and Secretary Haaland.
“Missing or Murdered Indigenous Persons Awareness Day calls on our nation to pause and honor the loved ones who have gone missing or who have been the victims of violent crime,” said Deputy Attorney General Lisa O. Monaco. “Acknowledging the many American Indian and Alaska Native people who have suffered, and continue to suffer, from the pain of a missing loved one or of violent crime serves as an important reminder of the urgency and importance of the department’s work to respond to the crisis of missing or murdered indigenous persons. The Justice Department—including our dedicated agents, analysts, and prosecutors—remains steadfast in our pledge to work as partners with Tribal governments in preventing and responding to the violence that has disproportionately harmed Tribal communities.”
“The Justice Department is committed to using every resource at its disposal to combat the Missing or Murdered Indigenous Persons Crisis,” said Associate Attorney General Vanita Gupta. “In addition to our core law-enforcement work, we are providing grant funding and guidance to help Tribes develop response plans for missing-persons cases, partner effectively with local law enforcement, and provide resources for victims of crime.”
In July 2022, Deputy Attorney General Monaco issued a memorandum reaffirming the department’s commitment to addressing the disproportionately high rates of violence experienced by American Indians and Alaska Natives and the high rates of indigenous persons reported missing. For more information about the Justice Department’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website.
In early 2022, the District of Oregon established an MMIP Working Group to increase multi-agency communication and collaboration in support of and response to Oregon-connected MMIP cases. The working group includes at least one representative from each of the nine federally recognized Tribes in Oregon, the FBI, Bureau of Indian Affairs, U.S. Department of Interior Regional Solicitor’s Office, U.S. Marshals Service, Oregon Department of Justice, Oregon State Medical Examiner’s Office, and Oregon State Police.
If you have questions about the U.S. Attorney’s Office MMIP program, please contact MMIP program coordinator Cedar Wilkie Gillette by emailing [email protected] or by calling (503) 727-1000.
California Man Faces Federal Drug Charges After Arranging Sale of 80,000 Fentanyl Pills and 66 Pounds of MethamphetamineRead the Press Release
PORTLAND, Ore.—A San Jose, California man is facing federal drug trafficking charges after he arranged the sale of approximately 80,000 counterfeit oxycodone pills containing fentanyl and 66 pounds of methamphetamine.
Oscar Manuel Rosas Gaona, 20, has been charged by criminal complaint with conspiring to possess and possessing with intent to distribute fentanyl and methamphetamine.
According to court documents, in April 2023, special agents from Homeland Security Investigations (HSI) arranged to purchase 10,000 counterfeit oxycodone pills containing fentanyl for 70 cents per pill. On April 14, 2023, the agents, working in partnership with the Clackamas County Interagency Task Force (CCITF), completed the arranged purchase with Rosas.
As the investigation continued, a second purchase from Rosas was organized and, on April 27, 2023, agents obtained an additional 70,000 fentanyl pills. The next day, on April 28, 2023, Rosas began arranging the delivery and sale of 65 pounds of methamphetamine. By May 4, 2023, the methamphetamine had arrived in Oregon and was seized by law enforcement. Rosas was taken into custody the same day.
Rosas made his initial appearance in federal court today before U.S. Magistrate Judge Jeffrey Armistead. He was ordered detained pending further court proceedings.
This case was investigated by HSI and CCITF. It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
CCITF, led by the Clackamas County Sheriff’s Office, works to disrupt and dismantle drug trafficking organizations operating in Clackamas County, and reduce illegal drugs and related crimes throughout the community. The task force is comprised of members of the Clackamas County Sheriff’s Office, Canby Police Department, Oregon State Police, HSI, and FBI.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Vancouver Man Sentenced to Federal Prison for Armed Robbery of Drug Dealer in PortlandRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for his role in an armed robbery of a drug dealer that ended in an exchange of gunfire outside an apartment complex on Hayden Island in Portland.
Anthony James Pastorino, 43, was sentenced to 77 months in federal prison and five years’ supervised release.
According to court documents, in the early morning hours of September 30, 2021, Pastorino, acting on the instructions of an accomplice, Seth Kamaile Teig, 38, also of Vancouver, traveled from Vancouver to an apartment complex on Hayden Island in Portland. At Teig’s direction, Pastorino waited outside the apartment complex in anticipation of robbing a known drug dealer. When the drug dealer arrived, Pastorino discharged his firearm and stole the drug dealer’s backpack. Pastorino and the drug dealer exchanged gunfire and both sustained serious injuries. Soon after, Pastorino and Teig fled the scene and traveled back to Washington.
Officers from the Portland Police Bureau responded to the scene and found 18 shell casings, a trail of blood, and Pastorino’s wallet. Later that day, a resident of the apartment complex found a handgun in some nearby bushes. Further investigation revealed that it was the gun used by Pastorino during the robbery. A later search of Pastorino’s phone revealed text messages wherein Teig directed Pastorino during the robbery and provided information about their target.
On October 27, 2021, special agents from Homeland Security Investigations arrested Pastorino for his role in the robbery. Pursuant to a court-authorized search warrant, the agents observed gunshot wounds on Pastorino’s arm and thighs.
On November 22, 2021, Pastorino was charged by criminal information with interfering with commerce by robbery and using, carrying, brandishing, and discharging a firearm during and in relation to a crime of violence. On February 2, 2023, he pleaded guilty to the latter charge.
On March 14, 2023, Teig was sentenced to 92 months in federal prison and five years’ supervised release for orchestrating the robbery.
This case was investigated by HSI and the Portland Police Bureau with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Portland Area Drug Trafficker Sentenced to 26 Years in Federal Prison for Role in Deadly Kidnapping of Washington State ManRead the Press Release
PORTLAND, Ore.—A Mexican National residing in Marion County, Oregon was sentenced to federal prison today for his role in the 2019 kidnapping and murder of a Washington State man and other drug trafficking crimes.
Marcos Alonso Castillo-Bernal, 48, was sentenced to 312 months in federal prison and 10 years’ supervised release.
According to court documents, in 2018, the Portland Police Bureau (PPB) began investigating a Mexican drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine, heroin, cocaine, and counterfeit OxyContin in the Portland area. The DTO was an intermediate source of supply to other organizations in Portland, on the Oregon coast, and in the Olympia, Washington area. In January 2019, Castillo-Bernal assumed control of the DTO and, along with various co-conspirators, was directly responsible for distributing large quantities of the illegal drugs in and around Portland.
From on or about April 9, 2019, until on or about April 13, 2019, Castillo-Bernal and others kidnapped, held hostage, and murdered Ricardo Corral-Moreno, of Olympia, Washington, and disposed of his body in a rural area near Molalla, Oregon. Castillo-Bernal and his co-conspirators targeted Corral-Moreno because of money he owed to Castillo-Bernal and others. Investigators identified ligature marks on Corral-Moreno’s wrists consistent with his having been tied up and determined he died of blunt force injuries to the back of his head. Castillo-Bernal’s DNA was also found on Corral-Moreno’s left cheek and ankle.
On January 6, 2022, a superseding indictment was unsealed charging Castillo-Bernal with various drug trafficking crimes and for his role in Corral-Moreno’s kidnapping and murder. He made his initial appearance in federal court the same day.
On January 18, 2023, Castillo-Bernal pleaded guilty to conspiring to possess with intent to distribute and distribute controlled substances, conspiring to commit kidnapping resulting in death, and illegally reentering the U.S.
This case was investigated by the U.S. Drug Enforcement Administration, FBI, Portland Police Bureau, Clackamas County Sheriff’s Office, and Clackamas County Interagency Task Force (CCITF). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Gresham Man Sentenced to Federal Prison for Stealing Covid Relief FundsRead the Press Release
PORTLAND, Ore.—A Gresham, Oregon man was sentenced to federal prison today for stealing more than $77,000 in funds intended to help small businesses during the COVID-19 pandemic.
Justin Allen Cunningham, 41, was sentenced to 10 months in federal prison and three years’ supervised release. He was also ordered to pay $81,207 in restitution.
According to court documents, in 2021, Cunningham learned about the opportunity to procure Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) by submitting fraudulent loan applications on behalf of fake business entities. The PPP program, originally authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in March 2020, provided emergency financial assistance to American employers suffering the economic effects of the COVID-19 pandemic and resulting shutdowns.
To facilitate his scheme, Cunningham paid his friends for their help securing him a loan on behalf of a sole proprietorship he ran as a hobby: an online sneaker retailer called “JC shoe juice.” Cunningham obtained an employer identification number from the IRS and opened an online business bank account. He provided this information to a friend who created bogus tax returns for Cunningham’s company and submitted a PPP loan application on his behalf. The loan application falsely claimed that JC shoe juice had operated since 2015, had six employees, and generated more than $460,000 in gross income in 2019. As a result of these false representations, Cunningham was issued a loan worth more than $77,000.
On January 21, 2022, a federal grand jury in Portland returned an indictment charging Cunningham with one count of wire fraud. On October 14, 2022, he pleaded guilty to the single charge.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorneys Ryan W. Bounds and Meredith D.M. Bateman prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney's Office Joins in Recognizing 42nd Annual National Crime Victims' Rights Week, April 23-29, 2023Read the Press Release
PORTLAND, Ore.— Every April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW) to honor crime victims, promote their rights and recognize victim advocates. This year’s observance, the 42nd annual commemoration, takes place April 23-29, 2023, with the theme: Survivor Voices: Elevate. Engage. Effect Change.
The U.S. Attorney’s Office joins its federal, state, local and Tribal law enforcement partners in taking this opportunity to highlight the importance of providing necessary services at the earliest possible stage of victimization and litigation. Early intervention helps prevent further victimization and encourages victim involvement in the criminal justice system, mitigating the cycle of violence and restoring hope for the future.
“Giving victims information and choices about how they can participate fully in cases is not only their right, but also meaningful and helpful for their recovery from the trauma of their victimization. We are honored to be a part of this important process,” said Amanda Reichmuth, Victim-Witness Coordinator for the District of Oregon.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local, and tribal agencies host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services.
OVC and U.S. Attorney’s Offices encourage widespread participation in the week’s events and in other victim-related observances throughout the year. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov. For ongoing updates from OVC and ideas throughout the year on how you can support victims, please subscribe to OVC’s email notifications at https://ovc.ncjrs.gov/ncvrw/subscribe/.
If you or someone you know are in immediate danger, please call 911. If you believe you’ve been the target or victim of a crime, please contact your local law enforcement agency or your nearest FBI field office immediately. The FBI Portland Field Office can be reached at (503) 224-4181 or by submitting tips online at tips.fbi.gov.
Federal Charges Filed After Weekend Traffic Stop Nets 86 Pounds of Powdered Fentanyl and MethamphetamineRead the Press Release
PORTLAND, Ore.—A suspected drug trafficker faces federal charges after he was caught transporting dozens of pounds of powdered fentanyl, methamphetamine, and other illegal drugs on Interstate 5 near Salem, Oregon.
Miguel Cruz-Barrales, 22, whose place of residence is unknown, has been charged by criminal complaint with possessing with intent to distribute fentanyl and methamphetamine.
According to court documents, on April 23, 2023, an Oregon State Police (OSP) trooper initiated a traffic stop on a vehicle driven by Barrales on Interstate 5 south of Salem. The trooper’s canine alerted to two duffle bags located in the trunk of the vehicle that contained numerous packages suspected to contain powdered fentanyl, methamphetamine, and other illegal drugs. The packages were later confirmed to contain 15 kilograms of powdered fentanyl, 24.4 kilograms of methamphetamine, .6 kilograms of heroin, and 4.6 kilograms of cocaine.
On April 24, 2023, Cruz-Barrales made his first appearance in federal court before U.S. Magistrate Judge Stacie F. Beckerman. He was ordered detained pending further court proceedings.
This case is being investigated jointly by the U.S. Drug Enforcement Administration (DEA) and OSP. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Arizona Man Faces Federal Charges After Eastern Oregon Traffic Stop Yields 100,000 Fentanyl Pills, Two Pounds of Powdered FentanylRead the Press Release
PORTLAND, Ore.—An Arizona man is facing federal charges after he was caught transporting 100,000 counterfeit oxycodone pills containing fentanyl, two pounds of powdered fentanyl, and six pounds of cocaine on Interstate 84 in La Grande, Oregon.
Moises Rojo Velazquez, 36, of Phoenix, Arizona, has been charged by criminal complaint with possessing with intent to distribute fentanyl.
According to court documents, on April 21, 2023, an Oregon State Police (OSP) trooper initiated a traffic stop on a vehicle driven by Rojo Velazquez on Interstate 84 westbound in La Grande. The vehicle was occupied by Rojo Velazquez, a passenger, and the passenger’s 17-year-old daughter. A second trooper located a large camo bag on the rear floorboard of the vehicle. The bag was found to contain more than 100,000 counterfeit oxycodone pills containing fentanyl, two pounds of powdered fentanyl, and six pounds of cocaine.
On April 24, 2023, Rojo Velazquez made his first appearance in federal court before U.S. Magistrate Judge Stacie F. Beckerman. He was ordered detained pending further court proceedings.
This case is being investigated jointly by the U.S. Drug Enforcement Administration (DEA) and OSP. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Man Sentenced to Federal Prison for Voluntary Manslaughter on the Umatilla Indian ReservationRead the Press Release
PORTLAND, Ore.— A 23-year-old resident of the Umatilla Indian Reservation was sentenced to federal prison today for repeatedly striking a fellow resident of the reservation with his fists, causing the person’s death.
Tom Redhawk Tias was sentenced to 48 months in federal prison and three years’ supervised release.
According to court documents, on January 26, 2021, Tias contacted law enforcement to report an unresponsive adult. Officers responded to the scene on the reservation and located the victim who was deceased. Multiple witnesses interviewed by officers said that Tias said he hit the victim. Tias told police that he and the victim fought after the victim struck Tias with a branch. Tias admitted to law enforcement that he continued striking the victim after the victim fell to the ground.
On February 10, 2021, Tias was charged by criminal complaint with voluntary manslaughter. Later, on March 16, 2021, a federal grand jury in Portland indicted Tias on the same charge. On December 14, 2022, he pleaded guilty.
This case was investigated by the FBI and Umatilla Tribal Police Department. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Portland Man Sentenced to More than 17 Years in Federal Prison for Shooting Two People During Armed Marijuana RobberyRead the Press Release
PORTLAND, Ore.—A Portland man convicted at trial for shooting and robbing two illicit marijuana dealers was sentenced to more than 17 years in federal prison today.
Earnest Franklin Evans, also known as Ladarius Franklin Bolds, was sentenced to 210 months in federal prison and five years’ supervised release.
“Without hesitation, Earnest Evans shot two men with a sawed-off shotgun in a dense residential neighborhood in southeast Portland. We must put an end to violence like this is in our community,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the United States Attorney’s Office for the District of Oregon.
“There should be no doubt Evans is a violent felon who holds no regard for public safety,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “I commend our agents and our partners at PPB, FBI, and ATF for another successful joint investigation.”
According to court documents and trial testimony, on August 3, 2017, an associate of Evans set up a ruse to purchase 10 pounds of marijuana from two local illicit marijuana dealers. After arriving at an agreed upon location, the two dealers wheeled out a large black tote full of marijuana. Shortly thereafter, two masked men—Evans and a second associate—came out from behind the corner of a building with guns drawn. Evans had a sawed-off shotgun and his associate had a pistol. Evans shot one of the marijuana dealers in the arm and the second in the back as he was fleeing. Evans and his associates took the marijuana and divided it with one another. For his participation in the robbery, Evans received two pounds of marijuana.
Evans was arrested on November 19, 2018, following the execution of a federal search warrant on his Portland residence. Investigators located and seized a shotgun and ammunition from Evan’s residence.
On May 11, 2021, a federal grand jury in Portland returned a two-count superseding indictment charging Evans with robbery and using, carrying, and discharging a firearm during a crime of violence and drug trafficking crime. On June 17, 2021, he was found guilty on both charges.
This case was investigated by Homeland Security Investigations (HSI) with assistance from the Portland Police Bureau, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the FBI. It was prosecuted by Assistant U.S. Attorneys Peter D. Sax and Jeffrey S. Sweet.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Klamath Falls Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
MEDFORD, Ore.—A Southern Oregon man was sentenced to federal prison today for possessing and distributing large quantities of methamphetamine in and around Klamath Falls, Oregon.
Raul Sanchez-Lopez, 45, a resident of Klamath Falls, was sentenced to 84 months in federal prison and three years’ supervised release.
According to court documents, in July 2021, law enforcement executed search warrants at two Klamath Falls residences associated with Sanchez-Lopez. Inside one residence, officers located and seized thirteen bags containing approximately 680 grams of methamphetamine, scales, and other drug paraphernalia. Sanchez-Lopez admitted to mixing, weighing, and packaging methamphetamine and distributing it in the Klamath Falls area. In August 2021, he was charged by federal criminal complaint and arrested.
On July 14, 2022, a federal grand jury in Medford returned an indictment charging Sanchez-Lopez with possessing with intent to distribute methamphetamine and, on September 12, 2022, he pleaded guilty to the single charge.
This case was investigated by the U.S. Drug Enforcement Administration (DEA) with assistance from Oregon State Police, Klamath Falls Police Department, and Klamath County Sheriff’s Office. It was prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
Former Oregon Securities Broker Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A former Oregon securities broker was sentenced to federal prison today for willfully evading payment of more than $2.5 million in personal income taxes and using the excess cash to fund a lavish lifestyle.
James W. Millegan, aka JW Millegan, 65, of McMinnville, Oregon, was sentenced to 51 months in federal prison and three years’ supervised release. Millegan was also ordered to pay more than $2.5 million in restitution to the IRS and more than $1.4 million to 12 former clients.
“Tax evasion is a crime of greed that trivializes the duty all Americans share to pay their taxes. We take these crimes seriously and will continue working with our partners at the IRS to hold criminal tax evaders accountable,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office.
“It’s been said that the difference between tax avoidance and tax evasion…is the thickness of a prison wall. Mr. Millegan is learning that firsthand today,” said Bret Kressin, Special Agent in Charge of the IRS Criminal Investigation (IRS:CI) Seattle Field Office. “While everyone is entitled to use legal means to reduce their tax liabilities, Mr. Millegan actively attempted to evade his taxes for many years. Instead of paying his fair share, Mr. Millegan lived lavishly at the expense of honest taxpayers. Today, he is answering for those crimes.”
According to court documents, Millegan owned and operated J.W. Millegan, Inc. (JWMI), a small, commission-based securities broker-dealer business that served clients in the Portland and Salem, Oregon metropolitan areas. From 1996 to 2016, the firm was Millegan’s only significant source of income. Millegan closed JWMI at the end of 2016, in part because a Financial Industry Regulatory Authority (FINRA) arbitration panel determined he had churned the investment accounts of several clients and fined him $450,000. Millegan filed for Chapter 13 bankruptcy almost immediately.
Over a seven-year period from July 2009 through September 2016 while operating JWMI, Millegan evaded payment of $2.5 million in income taxes due from 2006 through 2015. Millegan filed tax returns each year reflecting his true income, which sometimes exceeded $1 million, and the taxes he owed on that income, which typically ranged from $125,000 to $350,000. Despite these returns, Millegan usually paid almost no taxes when due.
Millegan was described as a prolific spender by personal assistants hired to pay his bills. He used the proceeds of his tax evasion to fund an extravagant lifestyle that included a $4.5 million home in Portland’s Dunthorpe neighborhood, a $1.3 million beach house in Gleneden Beach, Oregon, Rolls Royce and Bentley automobiles for everyday use, equestrian expenses like stabling and lessons, and an attempt to establish Wallace Bridge, a world-class equestrian competition center and resort near Sheridan, Oregon.
In 2003, Millegan bought a classic 1938 Rolls Royce Phantom III touring car at a classic car auction. From 2004 to 2006, while owing hundreds of thousands of dollars in past due taxes, Millegan spent $800,000 restoring his Phantom III, including shipping it to a restoration specialist in the United Kingdom, so that he could show it at classic car shows. In 2006 and 2007, Millegan paid to show his Phantom III at multiple premier car shows in the United States, United Kingdom, and Europe.
To evade the payment of his taxes, Millegan concealed his income from the IRS by transferring it to six bank accounts he controlled, including transferring $1.4 million to the bank account of his deceased mother’s trust, which he used to pay his personal expenses. From July 2009 through September 2016, Millegan transferred $3.7 million to these accounts. To further conceal his income, Millegan submitted false financial statements to the IRS.
On November 21, 2019, a federal grand jury in Portland returned a 13-count indictment charging Millegan with tax evasion and investment churning. Later, on February 17, 2022, he was charged by superseding indictment with wire fraud and tax evasion.
On November 14, 2022, Millegan was convicted at trial on one count of tax evasion. Millegan’s wire fraud charges were dismissed at sentencing.
This case was investigated by IRS:CI. It was prosecuted by Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon. Assistant U.S. Attorney Hannah Horsley assisted the trial team.
The referenced media source is missing and needs to be re-embedded.Salem Drug Trafficker Sentenced to Federal PrisonRead the Press Release
MEDFORD, Ore.—On March 29, 2023, a Salem, Oregon man was sentenced to more than 12 years in federal prison after he was caught transporting several dozen pounds of methamphetamine.
David Contreras, aka Jorge Castillo-Gomez, 51, was sentenced to 151 months in federal prison and five years’ supervised release.
According to court documents, on April 9, 2019, Contreras and an accomplice were traveling north on Interstate 5 near Central Point, Oregon when they were stopped by an Oregon State Police (OSP) trooper for speeding. As the trooper approached the vehicle, he observed a cardboard box inside containing a clear package with a substance resembling methamphetamine. While the trooper processed the traffic violation, he determined that the driver had a suspended Oregon driver’s license and Contreras, a passenger, did not possess a license.
After an OSP narcotics canine alerted on the vehicle, troopers conducted a search. Inside the cardboard box they found several packages containing more than 33 pounds of methamphetamine. In addition to the drugs, they located a firearm concealed on the driver’s person, more than $3,000 in cash on Contreras’ person, and an additional $6,000 in cash in a backpack. The driver explained that he reported to Contreras who provided the troopers with a false name and identification documents.
On May 1, 2019, a federal grand jury in Medford returned an indictment charging Contreras and his accomplice with possessing with intent to distribute methamphetamine. On November 8, 2021, Contreras pleaded guilty to the single charge.
This case was investigated by OSP with assistance from Homeland Security Investigations (HSI). It was prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon.
Portland Man Caught Transporting Drugs to Central Oregon Sentenced to 10 Years in Federal PrisonRead the Press Release
PORTLAND, Ore.—A Portland drug dealer with a lengthy criminal history was sentenced to 10 years in federal prison today after he was arrested transporting methamphetamine, cocaine, heroin, and counterfeit oxycodone pills containing fentanyl to Redmond, Oregon.
Jason Robert Melcado, 51, a Portland resident, was sentenced to 120 months in federal prison and four years’ supervised release.
According to court documents, in June 2021, the Bend Police Department received information that Melcado was delivering methamphetamine and heroin to Deschutes County from Portland. Officers soon learned Melcado had an active felony arrest warrant and had recently been investigated by the U.S. Drug Enforcement Administration (DEA).
On July 12, 2021, Bend police determined that Melcado was traveling to Redmond. Upon his arrest, officers found Melcado to be carrying a loaded 9mm pistol with an obliterated serial number and approximately one dozen counterfeit oxycodone pills containing fentanyl. The next day, after obtaining a search warrant, officers found 217 grams of methamphetamine, nearly 1,000 counterfeit pills, and smaller quantities of heroin and cocaine in Melcado’s vehicle.
On August 19, 2021, a federal grand jury in Eugene returned a three-count indictment charging Melcado with possessing with intent to distribute methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and illegally possessing a firearm as a convicted felon.
On November 22, 2022, Melcado pleaded guilty to possessing with intent to distribute methamphetamine.
This case was investigated by the Central Oregon Drug Enforcement (CODE) Team and DEA. It was prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
The CODE team is a multi-jurisdictional narcotics task force supported by the Oregon-Idaho High-Intensity Drug Trafficking Area (HIDTA) program. CODE includes members of the Bend, Redmond, Prineville, Madras, Sunriver, and Black Butte Police Departments; the Warm Springs Tribal Police Department; the Deschutes, Crook, and Jefferson County Sheriff and District Attorney’s Offices; the Oregon State Police; the Oregon National Guard; DEA; and the FBI.
Clackamas Man Sentenced to 14 Years in Federal Prison for Armed Robbery of Local PubRead the Press Release
PORTLAND, Ore.—A Clackamas, Oregon man was sentenced to federal prison today for robbing a local pub with a gun.
Dustin Lee Henderson, 42, was sentenced to 168 months in federal prison and five years’ supervised release.
According to court documents, on November 22, 2019, Henderson robbed the Lighthouse Pub, a public house and deli located on 82nd Avenue in Clackamas. In video surveillance of the robbery, Henderson was seen handing the pub clerk a bag, brandishing a firearm, and taking five cartons of cigarettes. The pub’s owner chased Henderson through the parking lot when Henderson discharged a single round from his firearm, prompting the owner to stop the chase. Law enforcement later recovered a .22 caliber cartridge case near the site of the shooting.
Law enforcement later observed Henderson in a nearby mobile home lot and arrested him. Investigators executed a state search warrant on a mobile home where Henderson resided and recovered the stolen cigarette cartons, clothes worn by Henderson during the robbery, and a .22 pistol. DNA analysis later linked Henderson to the seized firearm.
On March 17, 2022, Henderson was charged by superseding indictment with interfering with commerce with threats or violence, possessing a firearm in furtherance of a crime of violence, and illegally possessing a firearm as a convicted felon.
On April 27, 2022, after a three-day trial, Henderson was found guilty on all counts.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Clackamas County Sheriff’s Office with assistance from Oregon State Police. Assistant U.S. Attorneys Cassady Adams, Craig Gabriel, and Suzanne Miles prosecuted the case.
Clackamas Man Arrested on Child Pornography Charges Three Months After Release from Federal CustodyRead the Press Release
PORTLAND, Ore.—A Clackamas, Oregon man appeared in federal court today after he was arrested on child pornography charges less than three months after completing a federal prison sentence for similar conduct.
Nicholas James Stacy, 29, has been charged by criminal complaint with transporting and possessing child pornography.
According to the complaint, in March 2023, special agents from Homeland Security Investigations (HSI) were contacted by Portland Police Bureau detectives investigating multiple CyberTipline reports they had received regarding Stacy’s alleged use of Facebook, Dropbox, and other web services to possess and distribute child pornography.
Stacy was released from federal custody in December 2022 after serving a 60-month sentence on a previous child pornography conviction. While on post-prison supervision, Stacy was prohibited from possessing a computer or other electronic devices or accessing the internet for any reason without permission from his probation officer.
On March 16, 2023, investigators executed federal search warrants on Stacy’s person, residence, and his mother’s residence. Agents seized multiple electronic devices Stacy possessed in violation of his terms of supervision and placed him under arrest.
Stacy made his first appearance in federal court today before U.S. Magistrate Judge Youlee Yim You. He was ordered detained pending further court proceedings.
This case was investigated by HSI, the Portland Police Bureau, and U.S. Probation Office. It is being prosecuted by Mira Chernick, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at report.cybertip.org.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Vancouver Man Sentenced to Federal Prison for Planning Armed Robbery that Resulted in a Shoot-OutRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for orchestrating an armed robbery of a drug dealer that ended in an exchange of gunfire outside an apartment complex on Hayden Island in Portland.
Seth Kamaile Teig, 38, was sentenced to 92 months in federal prison and five years’ supervised release.
According to court documents, in the early morning hours of September 30, 2021, Teig and an accomplice, Anthony James Pastorino, 43, also of Vancouver, traveled from Vancouver to an apartment complex on Hayden Island in Portland. At Teig’s direction, Pastorino waited outside the apartment complex in anticipation of robbing a known drug dealer. When the drug dealer arrived, Pastorino discharged his firearm and stole the drug dealer’s backpack. Pastorino and the drug dealer exchanged gunfire and both sustained serious injuries. Soon after, Pastorino and Teig fled the scene and traveled back to Washington.
Officers from the Portland Police Bureau responded to the scene and found 18 shell casings, a trail of blood, and Pastorino’s wallet. Later that day, a resident of the apartment complex found a handgun in some nearby bushes. Further investigation revealed that it was the gun used by Pastorino during the robbery. A later search of Pastorino’s phone revealed text messages wherein Teig directed Pastorino during the robbery and provided information about their target.
On November 17, 2021, special agents from Homeland Security Investigations (HSI) located and arrested Teig at a hotel in Gresham, Oregon. During a search of Teig’s person, the agents located and seized a handgun. A second firearm was found in Teig’s hotel room and body armor, ammunition, and drug paraphernalia were found inside his vehicle.
On December 15, 2021, Teig was charged by criminal information with one count each of interfering with commerce by robbery, using and carrying a firearm during and in relation to a crime of violence, and possessing an unregistered firearm. On October 19, 2022, Teig pleaded guilty to using and carrying a firearm during and in relation to a crime of violence.
On November 22, 2021, Pastorino was charged by criminal information with one count each of interfering with commerce by robbery and discharging a firearm during and in relation to a crime of violence. On February 2, 2023, Pastorino pleaded guilty to the latter charge. He will be sentenced on May 3, 2023.
This case was investigated by HSI and the Portland Police Bureau with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Florida Man Sentenced to 25 Years in Federal Prison for Using a Minor to Produce Sexually Explicit MaterialRead the Press Release
PORTLAND, Ore.—A New Smyrna Beach, Florida man was sentenced to 25 years in federal prison today for video recording himself sexually abusing a child he met on social media and sharing the abuse video with others online.
Michael Wayne Lyon, 39, was sentenced to 25 years in federal prison and 10 years’ supervised release. Lyon must also register as a sex offender for life.
According to court documents and trial testimony, in October 2017, Lyon began exchanging messages online with a 13-year-old child. He first claimed to be 15 years old and later “confessed” to be being 17. Lyon’s conversations with the child quickly turned explicit and he convinced the child to send him naked photos. By the time Lyon admitted to being in his 30s, he had already extracted extensive personal information from the child including their full name, age, phone number, address, and the names of various family members. When the child tried to end the communication, Lyon persisted, continued contacting the child, and, in March 2018, travelled to the Pacific Northwest in hopes of meeting the child.
Fearing for the safety of family, the child agreed to meet Lyon. After traveling across the country, Lyon rented a car in Seattle and traveled to Oregon where he took the child to a hotel. Lyon video recorded himself abusing the child at the hotel and later shared the video online with several of the child’s friends and acquaintances.
From 2018 through 2020, Lyon continued contacting the child and created multiple social media accounts to avoid the child’s repeated attempts to block him. Lyon’s messages became increasingly threatening and, later, openly violent. In October 2020, he threatened to kill the child and the child’s family. Soon after, the child’s mother reported Lyon’s abuse and threats to the FBI.
On December 11, 2020, Lyon was charged by federal criminal complaint and an arrest warrant was issued. Nine days later, he was arrested by local law enforcement in Hollidaysburg, Pennsylvania and turned over to the FBI. Lyon has remained in federal custody since his arrest.
On February 2, 2021, Lyon was indicted by a federal grand jury in Portland, and, on August 11, 2022, he was convicted at trial.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Hermiston and Umatilla Police Departments.
It was prosecuted by Pamela Paaso and Suzanne Miles, Assistant U.S. Attorneys for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jury Convicts Pennsylvania Man for Dealing Fentanyl Analogue that Caused Fatal Overdoses in OregonRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found a Pennsylvania man guilty today for distributing a fentanyl analogue on AlphaBay, a former darknet marketplace, that caused the overdoses of three people in Oregon, two of whom died.
Henry Konah Koffie, 37, of Darby, Pennsylvania, was found guilty on two counts of distribution of a controlled substance resulting in death, one count of distribution of a controlled substance resulting in serious bodily injury, and five counts of distribution of a controlled substance.
“Henry Koffie sold illicit fentanyl analogues on the darknet, exploiting profits while risking the lives of many Americans addicted to dangerous opioids. Today, fentanyl can be purchased for less than a few dollars in many American cities. The mass availability of fentanyl in our country is staggering and represents a profound public safety and health threat,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the United States Attorney’s Office for the District of Oregon. “We in law enforcement will continue doing our part to hold fentanyl dealers like Henry Koffie accountable, but we implore all community members to be vigilant in protecting themselves and their loved ones. If you possess pills not dispensed by a licensed pharmacist, assume they are fake and contain a deadly dose of fentanyl.”
“Today’s conviction of Henry Koffie for distributing fentanyl on AlphaBay resulting in the overdoses of three people, two of whom died, serves as a reminder of the grave danger posed by the illegal distribution of synthetic opioids,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest. “Using the darknet does not provide anonymity. HSI special agents are highly skilled in conducting investigations that involve darknet markets, cryptocurrency transactions, and other illicit online activities. HSI will continue to work with our law enforcement partners to investigate and bring to justice those who contribute to the opioid epidemic that has devastated communities across America.”
“The conviction of Henry Koffie was possible due to the excellent relationships between federal and local law enforcement in Portland. The United States Postal Inspection Service values our partnerships with the Portland Police Bureau, Homeland Security Investigations, and United States Attorney’s Office which led to the conviction of this purveyor of death on a national scale. Koffie’s reckless lack of regard for the lives of others is reprehensible and ends here. We hope this verdict allows the victims and their families to start the healing process,” said Tony Galetti, Inspector in Charge of the United States Postal Inspection Service (USPIS), Seattle Division.
“To see the senseless loss of life through overdoses caused by dangerous and illegal drugs is heartbreaking for families and our community,” said Assistant Chief Art Nakamura of the Portland Police Bureau (PPB). “We hope this verdict is the first step in healing for the families involved. This is a great example of the impact law enforcement can have when they join efforts to combat illegal drugs that are inflicting harm on our communities. Thank you to the Narcotics and Organized Crime Unit and our partners, including Homeland Security Investigations, the FBI, Philadelphia Police Department, Pennsylvania State Police, United States Postal Inspection Service, Multnomah County District Attorney’s Office, and United States Attorney’s Office who worked together to bring justice to the victims and their families.”
According to court documents, in just over a year, three Portland residents overdosed on furanyl fentanyl supplied by Koffie, a darknet narcotics vendor known as DNMKingpin and later Narcoboss on AlphaBay. The first victim was a 19-year-old student at Portland State University who, on May 2, 2016, overdosed 30 minutes after ingesting powdered furanyl fentanyl. Paramedics administered Naloxone and breathing assistance to the student, saving her life. Investigators interviewed the student’s source who said he supplied the student with the powdered furanyl fentanyl he purchased from DNMKingpin on AlphaBay.
One year later, on May 6, 2017, Portland Police Bureau (PPB) officers responded to a fatal overdose of a 27-year-old in southeast Portland. The victim’s roommates told the officers that the victim had ordered fentanyl from Narcoboss on AlphaBay who had advertised the furanyl fentanyl as “China White.” One roommate further told officers that he and the victim had ordered a gram of fentanyl from Narcoboss for $40 and that it had arrived in a USPS priority mail envelope shipped from Philadelphia.
Three weeks later, on May 29, 2017, PPB officers responded to a fatal overdose of another 27-year-old who had resided in northeast Portland. Officers located a small vial of furanyl fentanyl in the victim’s residence as well as a notebook containing information on accessing AlphaBay and a Bitcoin wallet. They further located an envelope in the victim’s trash can with a return address in Philadelphia.
Between May 25 and June 21, 2017, investigators conducted five controlled buys of powdered fentanyl from Narcoboss. All five orders were fulfilled from addresses in and around Philadelphia. Around the same time, investigators in Wisconsin and Pennsylvania located and identified Koffie’s fingerprints on packages of furanyl fentanyl resembling those shipped to law enforcement in Portland that were purchased from AlphaBay via Narcoboss.
Further investigation revealed that between April 6, 2016, and May 23, 2017, Koffie received 14 packages of furanyl fentanyl totaling approximately seven kilograms from distributors in China and Hong Kong. In May and June of 2017, two additional packages shipped to Koffie containing another half kilogram of furanyl fentanyl were intercepted by United States Customs and Border Protection (CBP). It was later determined that Koffie used an online postage company called Stampnik to purchase more than 5,700 postage labels he used to ship furanyl fentanyl throughout the United States, including the labels affixed to parcels seized in Oregon, Wisconsin, and Pennsylvania.
On July 12, 2017, Koffie was charged by criminal complaint in the District of Oregon with distribution of a controlled substance resulting in serious bodily injury or death. Later, on April 21, 2021, he was charged by superseding indictment with conspiracy to distribute a controlled substance, distribution of a controlled substance resulting in serious bodily injury, distribution of a controlled substance resulting in death, and distribution of a controlled substance. The conspiracy charge was dismissed before trial.
Koffie faces a maximum sentence of life in prison, a $10 million fine and three years’ supervised release. He will be sentenced on May 30, 2023, before United States District Court Judge Michael W. Mosman.
Koffie is under federal indictment in two other judicial districts. On August 1, 2017, a federal grand jury in the Western District of Pennsylvania returned an indictment charging Koffie with four counts of distributing a controlled substance. On September 20, 2017, a federal grand jury in the Eastern District of Pennsylvania returned a two-count indictment charging Koffie with distributing a controlled substance and distributing a controlled substance within 1,000 feet of a playground. Both cases are pending.
This case was investigated by HSI, USPIS, and PPB with assistance from the FBI, Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) task force, CBP, Philadelphia Police Department, and Pennsylvania State Police. It was prosecuted by Scott M. Kerin, Parakram Singh, and Andrew T. Ho, Assistant United States Attorneys for the District of Oregon.
On July 20, 2017, the Justice Department, in partnership with the FBI, United States Drug Enforcement Administration (DEA), HSI and IRS-Criminal Investigation (IRS-CI), seized and shut down AlphaBay, which, at the time, was the largest criminal marketplace online. At the time of its seizure, AlphaBay had operated for over two years on the darknet and was used to sell illegal drugs, stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other hacking tools, firearms, and toxic chemicals throughout the world.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Hawaii Man Indicted for Traveling to Oregon to Sexually Abuse Two Children, Sharing Video Recordings of the Abuse OnlineRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland returned an indictment today charging a Hawaii man with sexually abusing two children and sharing video recordings of the abuse with others online.
Benjamin Victor Houghton, 27, of Captain Cook, Hawaii, has been charged with three counts of using a minor to produce a visual depiction of sexually explicit conduct and two counts of aggravated sexual abuse.
According to the indictment, Houghton is accused of sexually abusing two children under the age of 12 on three separate occasions, video recording the abuse, and sharing videos of the abuse online. On two of the three occasions, Houghton is also alleged to have knowingly crossed state lines, into Oregon, for the purpose of abusing the children.
On February 24, 2023, Houghton was arrested in the District of Hawaii and made his first appearance in federal court in Honolulu. He was ordered detained pending transfer to the District of Oregon.
Using a minor to produce a visual depiction of sexually explicit conduct is punishable by up to 30 years in federal prison with a 15-year mandatory minimum sentence. Aggravated sexual abuse is punishable by up to life in federal prison with a 30-year mandatory minimum sentence.
This case was investigated jointly by the FBI Portland and Honolulu Field Offices and Homeland Security Investigations (HSI) in Portland. It is being prosecuted by William M. McLaren, Assistant United States Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Wilsonville Man Who Orchestrated Violent Robberies Targeting Southern Oregon Marijuana Growers and Dealers Sentenced to Federal PrisonRead the Press Release
MEDFORD, Ore.—A Wilsonville, Oregon man who orchestrated multiple violent robberies targeting Southern Oregon marijuana growers and dealers was sentenced to federal prison today.
Shannon Christopher Harrop, 33, was sentenced to 162 months in federal prison and five years’ supervised release. Harrop was also ordered to pay $26,040 in restitution.
“This defendant choreographed multiple armed robberies in and around Medford that endangered dozens of lives,” said Nathan J. Lichvarcik, Chief of the U.S. Attorney’s Office Eugene and Medford Branch Offices. “Fortunately, law enforcement intervened to protect our community.”
“Mr. Harrop’s sentence is well justified,” said Jonathan T. McPherson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Seattle Field Division. “Without the efforts of federal, state and local law enforcement his brazen criminal actions would have continued, further endangering the lives of community members.”
According to court documents, over a seven-month period beginning in September 2019, Harrop and multiple co-conspirators orchestrated four violent robberies targeting marijuana growers and dealers in and around Medford. The first robbery occurred on September 19, 2019, when two robbers handcuffed and robbed two victims at gunpoint in Medford, stealing $60,000 worth of a bulk narcotic individuals involved in the robbery claimed to be hemp. Law enforcement later determined that the robbery occurred during a drug deal brokered by Harrop. Harrop was contacted by investigators, but denied setting up the deal and having any knowledge of the robbery.
The second robbery occurred on November 2, 2019, in Eagle Point, Oregon at a residence located on a secluded marijuana grow. The robbers entered the residence pretending to be law enforcement officers executing a search warrant, handcuffed two individuals present at gun point, and stole several dozen pounds of marijuana, various personal items, and one of the victim’s vehicles. Law enforcement stopped a second vehicle traveling with the stolen vehicle and determined it was a rental car leased by Harrop who again denied involvement in the robbery. Inside the rented vehicle, officers located ski masks, zip ties, handcuffs, tactical vests, and two firearms.
The third robbery occurred on December 19, 2019, at a large marijuana grow in Applegate, Oregon. Several individuals pretended to be the U.S. Marshals Service executing a search warrant. The robbers handcuffed one individual at gun point and engaged in an armed standoff with another. This time the robbers got away with only five pounds of marijuana and $5,000 in cash. Law enforcement located several hundred plastic totes containing marijuana on the property they believed the robbers were targeting.
In the fourth and final robbery, on April 25, 2020, law enforcement responded to reports of shots fired in Josephine County, Oregon. They discovered the shots were the result of another robbery of a marijuana grow where multiple victims were restrained and robbed at gun point. Despite being fired on by one of the victims, the robbers got away with 71 pounds of processed marijuana and four jars of marijuana extract.
Over the next several months, through various recorded statements, investigators were able to connect Harrop and multiple associates to all four robberies. In one statement, Harrop admitted to visiting the location of the fourth robbery and seeing the processed marijuana, marijuana extract, and cash later targeted in the robbery.
Beginning in June 2020, Harrop tried to convince an undercover law enforcement agent to deliver forty kilograms of cocaine to Ohio on his behalf. In addition, Harrop attempted to orchestrate a fifth robbery with the undercover agent and multiple co-conspirators. On the day the robbery was supposed to occur, in July 2020, law enforcement officers arrested Harrop and his accomplices without incident.
On July 23, 2020, a federal grand jury in Medford returned an eight-count indictment charging Harrop and eight accomplices with conspiracy to interfere and interfering with commerce by robbery; conspiracy to possess with intent to distribute marijuana; using, carrying, and brandishing a firearm in furtherance of a drug trafficking crime; possessing firearms as convicted felons; and possessing firearms in furtherance of a drug trafficking crime.
On August 30, 2022, Harrop pleaded guilty to conspiring to interfere and interfering with commerce by robbery and using, carrying, and brandishing a firearm in furtherance of a drug trafficking crime.
Seven of Harrop’s accomplices have pleaded guilty. Six have been sentenced and one is pending sentencing. Harrop’s eighth accomplice is awaiting trial.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the U.S. Marshals Service, Oregon State Police, the Jackson and Josephine County Sheriff’s Offices, and Medford Police Department. It was prosecuted by Marco Boccato, Assistant U.S. Attorney for the District of Oregon.
McMinnville Man Faces Federal Charges After Selling Fentanyl that Caused Seven to Overdose, One FatallyRead the Press Release
PORTLAND, Ore.—A McMinnville, Oregon man is facing federal charges after selling fentanyl he claimed was cocaine that caused seven people to overdose, one fatally.
John Kyle Donnahoo, 28, has been charged by criminal complaint with distribution of fentanyl resulting in serious bodily injury and death.
According to court documents, on February 10, 2023, Donnahoo sold powdered fentanyl he claimed was cocaine to an individual at a residence in McMinnville for $100. Seven individuals, including the buyer, were present in the residence during the sale. One of the individuals tested the powder twice using fentanyl “test kits,” but neither test produced a positive result. All seven individuals consumed and overdosed on the fentanyl. Four were treated with Narcan at the scene by responding police officers and medical personnel before being rushed to the hospital in critical condition. One of these victims later died and three were admitted to an intensive care unit. Donnahoo took the other three individuals to the hospital himself where they were treated and eventually discharged.
Donnahoo made his first appearance in federal court today before U.S. Magistrate Judge Stacie F. Beckerman. Donnahoo was ordered detained as a danger to the community pending further court proceedings.
This case is being investigated jointly by the U.S. Drug Enforcement Administration, FBI, McMinnville Police Department, and Yamhill County Sheriff’s Office.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Central Oregon Woman Sentenced to 20 Years in Federal Prison for Sexually Abusing a Child, Sharing Video of Abuse OnlineRead the Press Release
EUGENE, Ore.—A Redmond, Oregon woman was sentenced to 20 years in federal prison today for sexually abusing a six-year-old child, videorecording the abuse, and sharing the video online with a romantic partner.
Selina Wynne Duflo, 35, was sentenced to 240 months in federal prison and 12 years’ supervised release.
According to court documents, on a least two occasions in July 2019, Duflo, acting at the direction of her romantic partner—Daniel Seibert, 30, of Lake Forest, California—sexually abused a six-year-old child in her care, recorded the abuse, and sent the recordings to Seibert. In 2019, federal agents executed a search warrant for digital devices in their investigation of Seibert. While searching Seibert’s devices, police recovered videos of Duflo sexually abusing a six-year-old child. One of the videos also included a two-year-old child.
On May 4, 2021, a federal grand jury in Eugene returned a four-count indictment charging Duflo with production and transportation of child pornography. On December 1, 2022, Duflo pleaded guilty.
On January 21, 2021, Seibert was sentenced in the Central District of California to 292 months in federal prison after previously pleading guilty to producing child pornography, traveling to engage in illicit sex, and using a facility of commerce to induce a minor to engage in criminal sexual activity.
This case was investigated by Homeland Security Investigations (HSI) with assistance from Oregon State Police and the Deschutes County Sheriff’s Office. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at report.cybertip.org.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Portland Fentanyl Dealer Charged in Federal CourtRead the Press Release
PORTLAND, Ore.—A local man caught dealing counterfeit prescription pills and powdered fentanyl in downtown Portland was charged today in federal court.
Yexon Efrain Mendez-Zuniga, 19, of Beaverton, Oregon, has been charged by criminal complaint with possessing with intent to distribute fentanyl, unlawfully possessing a firearm, and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, on February 22, 2023, officers from the Portland Police Bureau were conducting surveillance in downtown Portland where numerous open-air drug transactions had been observed and reported. At approximately 10:40am, a PPB officer observed Mendez-Zuniga conduct a suspected hand-to-hand drug transaction near the intersection of SW 4th Avenue and SW Washington Street. Within a matter of minutes, officers observed Mendez-Zuniga conduct several additional transactions. They also observed Mendez-Zuniga using a handheld radio, appearing to communicate with other accomplices in the area.
Shortly thereafter, two officers approached Mendez-Zuniga near Director’s Park on SW Yamhill Street and directed him to stop. Mendez-Zuniga initially ran from the officers, but was soon arrested without incident. The officers searched Mendez-Zuniga’s person and located two clear baggies containing approximately 250 blue M30 pills and a chunk of suspected fentanyl powder, a loaded 9mm handgun, and a large fold of cash.
In an interview with officers, Mendez-Zuniga claimed he started dealing drugs one week prior to earn more money than he did in his previous job as a roofer. He admitted to selling approximately 300 M30 pills daily for $2 a piece and small quantities of powdered fentanyl he would pinch off a larger piece he had purchased from another dealer. He further told officers that he possessed the firearm for his own protection while dealing drugs. Investigators estimate Mendez-Zuniga has sold as many as 2,100 counterfeit pills containing fentanyl in Portland in the last week.
Mendez-Zuniga is expected to make his first appearance in federal court this week.
This case was investigated by the Portland Police Bureau’s Narcotics and Organized Crime Unit (NOC) and Neighborhood Response Team (NRT) with assistance from Homeland Security Investigations (HSI). It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Salem Man Pleads Guilty for Using Twitter to Threaten Violence Against Robinhood EmployeesRead the Press Release
PORTLAND, Ore.—A Salem, Oregon man pleaded guilty today for using Twitter to threaten violence against employees of Robinhood Markets, Inc., an online financial services company based in Menlo Park, California.
Christopher David Michalski, 39, pleaded guilty to one count of interstate communication of threats.
According to court documents, on or about April 14, 2022, a Robinhood employee contacted the FBI to report a series of Twitter posts spanning nearly a year threatening violence toward Robinhood employees, including its Chief Executive Officer and his family. Further investigation revealed that the Twitter account used to transmit the threats, @goldshroomand1, was associated with the internet protocol address of Michalski’s home in Salem and that several photos of firearms accompanying the threats were taken at a nearby shooting range.
On April 25, 2022, Michalski was charged by criminal complaint with interstate communication of threats. The next week, on May 4, 2022, special agents from the FBI and officers from the Salem Police Department arrested Michalski without incident. On May 19, 2022, Michalski was indicted by a federal grand jury in Portland.
Michalski faces a maximum sentence of five years in federal prison, a $250,000 fine, and three years’ supervised release. He will be sentenced on May 15, 2023, by U.S. District Court Judge Michael H. Simon.
This case was investigated by the FBI with assistance from the Salem Police Department’s Strategic Investigation Unit. It was prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
Portland Man Sentenced to Federal Prison for Assaulting Postal EmployeeRead the Press Release
PORTLAND, Ore.—On February 21, 2023, a Portland man was sentenced to federal prison for punching a U.S. Postal Service employee after stealing several trays of mail from a post office.
Dellmon Timmy Smith, 53, was sentenced to 30 months in federal prison and three years’ supervised release.
According to court documents, on November 22, 2021, Smith—who has a criminal history spanning decades that includes multiple felony convictions for theft and making threats of violence during his various thefts—entered a back door of the Creston U.S. Post Office on SE Foster Road in Portland, pushed past a postal service employee, grabbed two trays of mail, and ran away. The employee yelled for help and several other postal employees chased Smith down the street. When the first employee caught up to Smith, Smith dropped the trays of mail, reached into his waistband, and said “I have a gun, I’m going to shoot you.”
As two other employees caught up, Smith turn around and punched one of the employees in the face, below their left eye, and before falling to the ground. The employees took pictures of Smith, collected the stolen mail, and returned to the post office. Smith was later identified and arrested without incident.
On June 22, 2022, a federal grand jury in Portland returned a two-count indictment charging Smith with mail theft and assault on a federal officer. On November 28, 2022, he pleaded guilty to the assault charge.
This case was investigated by the U.S. Postal Inspection Service (USPIS). It was prosecuted by Meredith D.M. Bateman and Seth Uram, Assistant U.S. Attorneys for the District of Oregon.