District of Oregon
Press releases recorded for this federal judicial district.
Grants Pass Man Sentenced to Federal Prison for Stealing from a Tribal Organization and Illegally Possessing a FirearmRead the Press Release
EUGENE, Ore.—A Grants Pass, Oregon man pleaded guilty and was sentenced to federal prison today for stealing more than $70,000 from the Cow Creek Band of Umpqua Tribe of Indians and illegally possessing a firearm as a convicted felon.
After pleading guilty to one count each of stealing from a Tribal organization and illegally possessing a firearm as a convicted felon, Kevin Lee Jones, 34, was sentenced to 120 months in federal prison and 3 years’ supervised release. Jones was also ordered to pay $74,228 in restitution to the Cow Creek Tribe.
According to court documents, on September 6, 2021, Jones attempted to disguise his identity and stole $74,228 in cash from a business owned by the Cow Creek Tribe in Canyonville, Oregon. Several weeks later, in October 2021, Jones, who has a lengthy criminal history and, as a convicted felon, was prohibited from possessing firearms, was found unresponsive in a car in Grants Pass with a loaded pistol in his waistband. During a later search of his residence, investigators located and seized an M4 rifle with an extended capacity magazine.
On December 14, 2021, Jones was charged by criminal complaint with illegally possessing a firearm as a convicted felon. On December 16, 2021, a federal grand jury in Eugene indicted him on the same charge. Later, on December 29, 2022, he was charged by criminal information with illegally possessing a firearm as a convicted felon and stealing from a Tribal organization.
This case was investigated by the FBI and the Cow Creek Tribal Police Department. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, in coordination with Josephine County District Attorney Joshua J. Eastman.
Forsage Founders Indicted in $340M DeFi Crypto SchemeRead the Press Release
PORTLAND, Ore.—A federal grand jury in the District of Oregon returned an indictment today charging four founders of Forsage, a purportedly decentralized finance (DeFi) cryptocurrency investment platform, for their roles in a global Ponzi and pyramid scheme that raised approximately $340 million from victim-investors.
According to court documents, Vladimir Okhotnikov, aka Lado; Olena Oblamska, aka Lola Ferrari; Mikhail Sergeev, aka Mike Mooney, aka Gleb, aka Gleb Million; and Sergey Maslakov, all Russian nationals, allegedly touted Forsage as a decentralized matrix project based on network marketing and “smart contracts,” which are self-executing contracts on the blockchain. As alleged in the indictment, the defendants aggressively promoted Forsage to the public through social media as a legitimate and lucrative business opportunity, but in reality, the defendants operated Forsage as a Ponzi and pyramid investment scheme that took in approximately $340 million from victim-investors around the world.
“Together with our partners, the department is committed to holding accountable fraudsters who cheat investors, including in the emerging DeFi space,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s indictment showcases the department’s ability to use all available investigative tools, including blockchain analysis, to uncover sophisticated frauds involving cryptocurrency and digital assets.”
According to court documents, the defendants allegedly coded and deployed smart contracts that systematized their combined Ponzi-pyramid scheme on the Ethereum (ETH), Binance Smart Chain, and Tron blockchains. Analysis of the computer code underlying Forsage’s smart contracts allegedly revealed that, consistent with a Ponzi scheme, as soon as an investor invested in Forsage by purchasing a “slot” in a Forsage smart contract, the smart contract automatically diverted the investor’s funds to other Forsage investors, such that earlier investors were paid with funds from later investors.
“Today’s indictment is the result of a rigorous investigation that spent months piecing together the systematic theft of hundreds of millions of dollars,” said U.S. Attorney Natalie Wight for the District of Oregon. “Bringing charges against foreign actors who used new technology to commit fraud in an emerging financial market is a complicated endeavor only possible with the full and complete coordination of multiple law enforcement agencies. It is a privilege to work alongside the agents involved in these complex cases.”
As further alleged in the indictment, the defendants falsely promoted Forsage to the public as a legitimate, low-risk, and lucrative investment opportunity through Forsage’s website and various social-media platforms. However, blockchain analytics confirmed that over 80% of Forsage investors received fewer ETH back than they had invested in Forsage’s Ethereum program, with over 50% of investors never receiving a single payout. Additionally, according to court documents, the defendants coded at least one of Forsage’s accounts (known as the “xGold” smart contract on the Ethereum blockchain) in a way that fraudulently siphoned investors’ funds out of the Forsage investment network and into cryptocurrency accounts under the founders’ control, which was contrary to representations made to Forsage investors that “100% of the [Forsage] income goes directly and transparently to the members of the project with zero risk.”
“While advancements in the virtual asset ecosystem bring new opportunities to investors, criminals are also finding new ways to orchestrate illicit schemes,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI remains committed to working alongside our domestic and international law enforcement partners to investigate and pursue subjects who orchestrate these scams and attempt to defraud investors.”
“Technology is always changing and scams and swindles evolve alongside it,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS), Criminal Investigations Group. “The U.S. Postal Inspection Service is committed to investigating those who engage in schemes involving cryptocurrency investment fraud, which can cause significant financial harm to unsuspecting victims. We urge individuals to be cautious when considering investments and to always do their due diligence before providing money or personal information to any individual or organization.”
“These individuals are alleged to have used trendy technology and opaque language to swindle investors out of their hard-earned cash,” said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “But, as the indictment alleges, all they were doing was running a classic Ponzi scheme. The technology may change, but the scams remain the same and with the collaboration amongst all our partners, we’re able to see through the phony promises and bring the schemes to light. HSI is committed to being at the forefront of financial investigations, using the full extent of our investigative capabilities to track down criminals no matter what new tricks they use.”
Okhotnikov, Oblamska, Sergeev, and Maslakov are each charged with conspiracy to commit wire fraud. If convicted, the defendants face a maximum penalty of 20 years in prison.
The FBI Portland Field Office, USPIS, and HSI New York’s El Dorado Task Force are investigating the case.
Trial Attorneys Sara Hallmark and Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Quinn Harrington and Meredith Bateman for the District of Oregon are prosecuting the case.
All investor victims of the Forsage scheme are encouraged to visit the webpage https://www.justice.gov/criminal-vns/case/united-states-v-vladimir-okhotnikov-et-al to identify themselves as potential victims and obtain more information on their rights as victims, including the ability to submit a victim impact statement.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Forsage Founders Indicted in $340M DeFi Crypto SchemeRead the Press Release
A federal grand jury in the District of Oregon returned an indictment today charging four founders of Forsage, a purportedly decentralized finance (DeFi) cryptocurrency investment platform, for their roles in a global Ponzi and pyramid scheme that raised approximately $340 million from victim-investors.
According to court documents, Vladimir Okhotnikov, aka Lado; Olena Oblamska, aka Lola Ferrari; Mikhail Sergeev, aka Mike Mooney, aka Gleb, aka Gleb Million; and Sergey Maslakov, all Russian nationals, allegedly touted Forsage as a decentralized matrix project based on network marketing and “smart contracts,” which are self-executing contracts on the blockchain. As alleged in the indictment, the defendants aggressively promoted Forsage to the public through social media as a legitimate and lucrative business opportunity, but in reality, the defendants operated Forsage as a Ponzi and pyramid investment scheme that took in approximately $340 million from victim-investors around the world.
“Together with our partners, the department is committed to holding accountable fraudsters who cheat investors, including in the emerging DeFi space,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s indictment showcases the department’s ability to use all available investigative tools, including blockchain analysis, to uncover sophisticated frauds involving cryptocurrency and digital assets.”
According to court documents, the defendants allegedly coded and deployed smart contracts that systematized their combined Ponzi-pyramid scheme on the Ethereum (ETH), Binance Smart Chain, and Tron blockchains. Analysis of the computer code underlying Forsage’s smart contracts allegedly revealed that, consistent with a Ponzi scheme, as soon as an investor invested in Forsage by purchasing a “slot” in a Forsage smart contract, the smart contract automatically diverted the investor’s funds to other Forsage investors, such that earlier investors were paid with funds from later investors.
“Today’s indictment is the result of a rigorous investigation that spent months piecing together the systematic theft of hundreds of millions of dollars,” said U.S. Attorney Natalie Wight for the District of Oregon. “Bringing charges against foreign actors who used new technology to commit fraud in an emerging financial market is a complicated endeavor only possible with the full and complete coordination of multiple law enforcement agencies. It is a privilege to work alongside the agents involved in these complex cases.”
As further alleged in the indictment, the defendants falsely promoted Forsage to the public as a legitimate, low-risk, and lucrative investment opportunity through Forsage’s website and various social-media platforms. However, blockchain analytics confirmed that over 80% of Forsage investors received fewer ETH back than they had invested in Forsage’s Ethereum program, with over 50% of investors never receiving a single payout. Additionally, according to court documents, the defendants coded at least one of Forsage’s accounts (known as the “xGold” smart contract on the Ethereum blockchain) in a way that fraudulently siphoned investors’ funds out of the Forsage investment network and into cryptocurrency accounts under the founders’ control, which was contrary to representations made to Forsage investors that “100% of the [Forsage] income goes directly and transparently to the members of the project with zero risk.”
“While advancements in the virtual asset ecosystem bring new opportunities to investors, criminals are also finding new ways to orchestrate illicit schemes,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI remains committed to working alongside our domestic and international law enforcement partners to investigate and pursue subjects who orchestrate these scams and attempt to defraud investors.”
“Technology is always changing and scams and swindles evolve alongside it,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS), Criminal Investigations Group. “The U.S. Postal Inspection Service is committed to investigating those who engage in schemes involving cryptocurrency investment fraud, which can cause significant financial harm to unsuspecting victims. We urge individuals to be cautious when considering investments and to always do their due diligence before providing money or personal information to any individual or organization.”
“These individuals are alleged to have used trendy technology and opaque language to swindle investors out of their hard-earned cash,” said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “But, as the indictment alleges, all they were doing was running a classic Ponzi scheme. The technology may change, but the scams remain the same and with the collaboration amongst all our partners, we’re able to see through the phony promises and bring the schemes to light. HSI is committed to being at the forefront of financial investigations, using the full extent of our investigative capabilities to track down criminals no matter what new tricks they use.”
Okhotnikov, Oblamska, Sergeev, and Maslakov are each charged with conspiracy to commit wire fraud. If convicted, the defendants face a maximum penalty of 20 years in prison.
The FBI Portland Field Office, USPIS, and HSI New York’s El Dorado Task Force are investigating the case.
Trial Attorneys Sara Hallmark and Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Quinn Harrington and Meredith Bateman for the District of Oregon are prosecuting the case.
All investor victims of the Forsage scheme are encouraged to visit the webpage www.justice.gov/criminal-vns/case/united-states-v-vladimir-okhotnikov-et-al to identify themselves as potential victims and obtain more information on their rights as victims, including the ability to submit a victim impact statement.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Portland Man Sentenced to Federal Prison for Shipping Firearm and Ammunition to the U.K., Possessing MethamphetamineRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to the federal prison today after he was caught shipping a handgun and ammunition to the United Kingdom and possessing a pound of methamphetamine in his residence.
Lyle Justin Schirm, 35, was sentenced to 30 months in federal prison and five years’ supervised release, resolving two separate criminal cases.
According to court documents, in November 2020, law enforcement authorities in the U.K. notified Homeland Security Investigations (HSI) about a FedEx parcel shipped from Portland to the U.K. containing a 9mm handgun and ammunition. When interviewed by U.S. law enforcement, Schirm admitted to shipping the firearm. Schirm also told investigators he learned about shipping firearms to the U.K. by watching a video on YouTube. HSI later confirmed Schirm did not have a license to ship a firearm to the U.K.
On November 5, 2020, as part of a separate drug trafficking investigation, agents from the U.S. Drug Enforcement Administration (DEA) executed a search warrant on Schirm’s northeast Portland apartment. U.S. Customs and Border Protection (CBP) had previously notified DEA that Schirm was receiving international shipments of items used to manufacture counterfeit prescription pills. During their search of Schirm’s residence, investigators located what appeared to be a small laboratory used to make counterfeit Xanax pills. In addition, they located and seized two firearms, ammunition, over $14,000 in cash, and approximately one pound of methamphetamine.
On March 9, 2021, a federal grand jury in Portland returned an indictment charging Schirm with smuggling goods from the U.S. One month later, on April 6, 2021, he was indicted a second time for possessing with intent to distribute methamphetamine, possession of a trademark die, criminal attempt to manufacture adulterated and misbranded drugs, and possession of a firearm in furtherance of a drug trafficking crime.
On May 24, 2022, Schirm pleaded guilty to smuggling goods from the U.S. and possessing with intent to distribute methamphetamine.
These cases were investigated by HSI and DEA with assistance from CBP and the Clackamas County Interagency Task Force (CCITF). They were prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
Former Oregon Dentist Sentenced to Federal Prison for Stealing Millions in Covid-Relief Funds and Illegally Distributing Controlled SubstancesRead the Press Release
PORTLAND, Ore.—A former Oregon dentist was sentenced to federal prison today for attempting to steal more $170 million in Covid-relief funds and illegally distributing thousands of doses of prescription drugs.
Salwan Wesam Adjaj, 44, of West Linn, Oregon, was sentenced to 70 months in federal prison and three years’ supervised release. He was also ordered to pay more than $10.5 million in restitution to the U.S. Small Business Administration (SBA) and multiple private lenders.
“Salwan Adjaj’s crimes showed both his indifference to those enduring the economic effects of the COVID-19 pandemic and his disregard for the health and safety of those to whom he unlawfully dispensed prescription drugs. We appreciate all the investigative agencies that worked diligently to uncover Adjaj’s crimes and build the two criminal cases that brought him to justice,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“Our investigative efforts will expose criminal activity that spans SBA’s programs,” said Weston King, Western Region Special Agent in Charge of the SBA Office of Inspector General (SBA OIG). “This sentence demonstrates that those who defraud the nation’s vital economic programs will be held accountable. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who misuse IRS online systems to further fraudulent schemes and those who fraudulently obtain relief from the Coronavirus Aid, Relief, and Economic Security Act and its Paycheck Protection Program,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of our law enforcement partners and the United States Attorney’s Office to ensure this criminal activity is held to account.”
“Salwan Adjaj executed an elaborate ruse to take advantage of federal emergency assistance in a time when so many businesses were struggling to stay afloat. Even after several fraudulent loan applications were denied, Adjaj’s greed grew. He made up businesses, lied about employees and in the end stole more than 11 million dollars of Covid relief funds,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “The FBI and our partners will continue to find those who commit pandemic-related fraud and hold them accountable for their crimes.”
According to court documents, beginning no later than September 2020 and continuing until at least May 2021, Adjaj submitted dozens of fraudulent loan applications to SBA in an attempt to obtain Economic Impact Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds. The EIDL and PPP programs were among several economic relief programs originally authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES). They enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated mitigation measures.
Adjaj used the names and employer identification numbers (EIN) of fictitious business entities on his fraudulent applications. He further provided false information about the business start dates, number of employees, and locations, and the identities of the purported applicants and business owners. Most of the fraudulent applications were submitted in other peoples’ names, but with Adjaj’s personal residence as the business mailing address. In the spring of 2021, Adjaj purchased a collection of stolen identities online and began using the personally identifiable information acquired to register dozens of straw companies and obtain additional EIN.
After SBA rejected most of Adjaj’s initial EIDL applications, he began focusing primarily on the PPP program as well as on the Restaurant Revitalization Fund (RRF), a pandemic relief program authorized by the American Rescue Plan Act (ARPA) to support restaurants, bars, and other food- and drink-related businesses. Adjaj had substantially greater success stealing PPP and RRF funds than he did EIDL. In May 2021, Adjaj submitted three RRF applications for restaurants allegedly located Sarasota, Miami, and Daytona Beach, Florida. Like his fraudulent EIDL and PPP applications, Adjaj’s RRF applications contained false business information and all listed his personal residence as the business mailing address.
In total, Adjaj submitted more than 100 fraudulent Covid-relief program applications, stole the identities of more than 40 victims, and caused the SBA to pay out more than $11.5 million in loans, grants, and associated lender fees. Adjaj used the stolen funds to speculate in stocks and cryptocurrencies through online brokerage accounts. He continued this speculation with stolen funds even after his arrest and purported cooperation with the government.
For at least four years prior to engaging in Covid-relief program fraud, Adjaj also knowingly and intentionally distributed and possessed with intent to distribute thousands of doses of prescription drugs. In August 2020, investigators from the U.S. Drug Enforcement Administration (DEA) and Clackamas County Sheriff’s Office searched Adjaj’s dental practice and home and found a wide array of Schedule III and Schedule IV controlled substances, including Tramadol, anabolic steroids, injectable testosterone, Phendimetrazine, Diazepam, Alprazolam (Xanax), Lorazepam, Carisoprodol (Soma), and Zolpidem.
Further investigation by DEA and the Oregon Board of Dentistry (OBOD) revealed that Adjaj used his position as a dentist and DEA registration numbers to obtain some of the drugs acquired from a pharmaceutical manufacturer. Adjaj obtained additional drugs, including steroids and human growth hormone, from the dark web. All the drugs acquired were distributed by Adjaj without a legitimate medical purpose. Shortly after searching his residence and dental practice, the OBOD issued an emergency order suspending Adjaj’s dental license.
On October 14, 2021, Adjaj was charged by criminal complaint with aggravated identity theft and wire fraud. Later, on July 13, 2022, a federal grand jury in Portland indicted him on the same charges.
On June 23, 2022, Adjaj was charged by criminal information with distribution and possession with intent to distribute controlled substances. Three weeks later, on July 13, 2022, he pleaded guilty to the single drug charge.
On September 13, 2022, Adjaj pleaded guilty to wire fraud and aggravated identity theft.
Adjaj’s Covid-relief fraud case was investigated by TIGTA, SBA OIG, FBI, and the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Ryan W. Bounds. His drug case was investigated by DEA, the Clackamas County Sheriff’s Office, and OBOD and prosecuted by Assistant U.S. Attorney Peter D. Sax.
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.
Former Owner and General Manager of Oregon Dump Truck and Concrete Companies Sentenced to Federal Prison for Failing to Pay Employment TaxesRead the Press Release
PORTLAND, Ore.—The former owner and general manager of dump truck hauling and concrete companies based in Damascus, Oregon, was sentenced to federal prison today for willfully failing to pay employment taxes despite withholding them from employee paychecks.
Rebekah Joy Williams, 44, a resident of Damascus, was sentenced to eight months in federal prison and three years’ supervised release. She was also ordered to pay $725,492 in restitution to the IRS.
According to court documents, until the third and fourth quarters of 2017, Williams owned and operated Anbasa Transport LLC and Kelaye Conrete LLC, commercial dump truck hauling and concrete companies registered in Oregon that formerly operated in both Oregon and Washington State. As the sole owner and general manager of both companies, Williams was responsible for collecting, reporting, and paying federal income, Medicare, and Social Security taxes (also known as FICA taxes) on behalf of her employees.
Over at least a three-year period, from 2015-2017, Williams withheld these taxes from her employees’ paychecks and provided them with paystubs reflecting the withholdings. Despite doing so, IRS records showed that Williams made no payroll tax payments on behalf of either company from the third quarter of 2015 through the fourth quarter of 2017. In total, Williams failed to pay approximately $112,257 in employment taxes to the IRS.
In 2016, Williams hired an accountant to address her employment tax issues, but hid documentation the accountant needed to complete and file required payroll tax returns. Williams further lied to the accountant, claiming her companies’ payroll records had been damaged when a neighboring business caught fire. The accountant later told investigators that Williams was financially savvy and aware of her responsibility to pay payroll taxes.
Williams opened accounts at several different banks to hide her business proceeds from the IRS. Shortly after meeting with an IRS Revenue Officer in 2015, Williams began churning bank accounts, opening and closing accounts every 12 to 18 months. Meanwhile, Williams spent lavishly from both her personal and business bank accounts. She spent the payroll taxes withheld from her employees to fund vacations, pay her children’s private school tuition, attend professional sporting events, and fund an upscale lifestyle.
On October 19, 2021, a federal grand jury in Portland returned a 19-count indictment charging Williams with willfully failing to collect or pay over employment taxes. On November 14, 2022, she pleaded guilty.
This case was investigated by IRS-Criminal Investigation. It was prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
Portland Gang Affiliate Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.—A Portland resident and affiliate of the Rollin’ 60s Crips gang was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Kneko Tyray Moore, 34, was sentenced to 77 months in federal prison and three years’ supervised release.
According to court documents, on the evening of April 17, 2020, the Portland Police Bureau (PPB) received numerous calls from neighbors about an unruly gathering taking place at the Lone Fir Cemetery in southeast Portland during the height of the Covid-19 pandemic. Callers reported that approximately 20 people were having a barbeque and playing loud music in the cemetery. The gathering was a memorial party for Patrick Kimmons, a deceased Rollin’ 60s Crips gang member buried at the cemetery.
An undercover officer reported seeing known members or associates of the Rollin’ 60s Crips gang, including Moore, at the gathering. Six of the attendees, also including Moore, were on state or federal supervision following felony weapons convictions. When marked police cars arrived on scene, Moore quickly left the group and walked toward a black sedan. He entered the vehicle and sped away, nearly hitting a tree and an unmarked police vehicle.
Two officers then assigned to PPB’s Gun Violence Reduction Team followed Moore as he left the cemetery and pulled him over after he almost struck another car. Both officers recognized Moore as a Rollin’ 60s affiliate and convicted felon and reported he was visibly nervous and trembling. Moore became agitated when the officers impounded his vehicle and placed him under arrest for interfering with an officer. When officers searched Moore’s vehicle, they found a loaded .40 caliber semi-automatic pistol with a chambered round on the front passenger floorboard.
On October 6, 2020, a federal grand jury in Portland returned an indictment charging Moore with illegally possessing a firearm as a convicted felon. On December 10, 2021, he was found guilty after a four-day trial.
This case was investigated by PPB and the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by Gary Sussman and Leah Bolstad, Assistant U.S. Attorneys 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.
Hoover Criminal Gang Member Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.— A Hoover Criminal Gang member and Portland resident was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Kahlani Hamilton Jones, 20, was sentenced to 25 months in federal prison and three years’ supervised release.
According to court documents, as part of an ongoing federal racketeering investigation of the Hoover Criminal Gang, law enforcement obtained photos online of Jones, a convicted felon, possessing and offering to sell firearms.
On February 11, 2021, investigators executed a federal search warrant on Jones’ northeast Portland residence and located a loaded 40mm semiautomatic pistol with extended magazine in his bedroom. A search warrant was also executed at Jones’ girlfriend’s residence and on a vehicle the couple shared. Investigators found 1,000 suspected Xanax pills, two loaded magazines and assorted ammunition. They also found an empty box for the pistol located in Jones’ residence.
On April 13, 2021, a federal grand jury in Portland returned an indictment charging Jones with one count of illegally possessing a firearm as a convicted felon.
On October 31, 2022, Jones pleaded guilty under a global plea agreement with the U.S. Attorney’s Office for the District of Oregon and the Multnomah County District Attorney’s Office, resolving his federal and state criminal cases.
This case was investigated by the FBI with assistance from the Portland Police Bureau, Multnomah County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by the U.S. Attorney’s Office 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.
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.
Russian Cryptocurrency Money Launderer Pleads GuiltyRead the Press Release
PORTLAND, Ore.—On February 6, 2023, a Russian cryptocurrency money launderer previously extradited from the Netherlands to face charges in the District of Oregon pleaded guilty in federal court.
Denis Mihaqlovic Dubnikov, 30, pleaded guilty to one count of conspiracy to commit money laundering.
According to court documents, between at least August 2018 and August 2021, Dubnikov and his co-conspirators laundered the proceeds of Ryuk ransomware attacks on individuals and organizations throughout the United States and abroad. After receiving ransom payments, Ryuk actors, including Dubnikov and his co-conspirators, and others involved in the scheme engaged in various financial transactions, including international financial transactions, to conceal the nature, source, location, ownership, and control of the ransom proceeds.
Specifically, in July 2019, a United States-based company paid a 250 Bitcoin Ryuk ransom after a ransomware attack. On or about July 11, 2019, in Moscow, Russia, Dubnikov accepted 35 Bitcoin from a co-conspirator in exchange for approximately $400,000. The Bitcoin transferred to Dubnikov were directly sourced from the ransom paid by the American company. Dubnikov converted the Bitcoin to Tether and sent it to a second co-conspirator, who eventually exchanged it for Chinese Renminbi. Dubnikov’s co-conspirators laundered additional Bitcoin sourced from the original ransom payment. Dubnikov was compensated financially for his role in the scheme.
On November 2, 2021, Dubnikov was arrested in Amsterdam pursuant to a provisional arrest warrant. On August 16, 2022, he was extradited to the United States and made his initial appearance in federal court in the District of Oregon the next day.
Conspiracy to commit money laundering is punishable by up to 20 years in federal prison, three years’ supervised release, and a fine of $500,000. Dubnikov will be sentenced on April 11, 2023.
This case was investigated by the FBI and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Dubnikov’s extradition was handled by the Justice Department’s Office of International Affairs. He was transferred to the District of Oregon by the FBI.
The Department of Justice thanks Dutch authorities for their assistance in securing the arrest and extradition of Dubnikov.
First identified in August 2018, Ryuk is a type of ransomware software that, when executed on a computer or network, encrypts files and attempts to delete any system backups. Of note, Ryuk can target storage drives contained within or physically connected to a computer, including those accessible remotely via a network connection. Ryuk has been used to target thousands of victims worldwide across a variety of sectors. In October 2020, law enforcement officials specifically identified Ryuk as an imminent and increasing cybercrime threat to hospitals and healthcare providers in the United States.
Hoover Criminal Gang Member Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.—A Hoover Criminal Gang member and Portland resident was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Anthony Devion Bagsby, 31, was sentenced to 24 months in federal prison and 3 years’ supervised release.
According to court documents, as part of an ongoing federal racketeering investigation of the Hoover Criminal Gang, law enforcement obtained photos online of Bagsby, a convicted felon, possessing firearms. Further investigation revealed that Bagsby frequented an apartment occupied by known Hoover Criminal Gang members on Halsey Street in northeast Portland.
On April 16, 2021, while executing a federal search warrant on the apartment, investigators arrested Bagsby and several other individuals. They found a loaded Springfield XD-40 handgun in a basket in the kitchen. Three of the rounds found in the handgun were colored blue. In the living room, investigators found several items connected to Bagsby, including prescription medication and mail. In the same area, they found an empty magazine; several dozen 9mm cartridges; four .40 caliber rounds including one blue round matching the bullets found in the loaded handgun, and a plastic bag of methamphetamine. Investigators later located text messages on Bagsby’s phone wherein he bragged about obtaining a “brand new XD 40.”
On July 20, 2021, a federal grand jury indicted Bagsby on two counts of illegally possessing a firearm as a convicted felon. On October 18, 2022, he pleaded guilty.
This case was investigated by the FBI with assistance from the Portland Police Bureau, Multnomah County Sheriff’s Office, Gresham Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by the U.S. Attorney’s Office 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.
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.
Former Fugitive Wanted in Oregon for Real Estate Scam Pleads GuiltyRead the Press Release
SAN DIEGO—On January 26, 2023, a California man who evaded federal authorities for more than two decades after being convicted at trial and who was wanted in District of Oregon for perpetrating a real estate scam while a fugitive pleaded guilty in San Diego.
Robin James McPherson, a former resident of San Diego, pleaded guilty to failing to appear, willfully attempting to evade income taxes, and wire fraud, resolving three separate pending criminal cases.
According to court documents, in December 2000, McPherson and two co-conspirators were found guilty at trial in the Southern District of California of conspiring to defraud the IRS and tax evasion. Prior to being sentenced in March 2001, McPherson fled the U.S.
In early August 2019, special agents from FBI’s office in Eugene, Oregon began investigating McPherson after several individuals reported being the victims of a Costa Rican real estate fraud scheme with ties to the Eugene area. McPherson used a variety of marketing techniques, including cold calls, promotional websites, and Facebook advertisements, to find potential investors for an alleged Costa Rican real estate development opportunity called the Carara Parque Resort Corporation. After victims showed interest in the faux investment opportunity, McPherson would conduct sales calls, from Costa Rica, to explain the project.
McPherson directed victims to wire investment funds to a bank account in Oregon and then had the funds transferred to a bank account he controlled in Costa Rica. Between December 2015 and August 2019, approximately $1.2 million dollars were transmitted to the Oregon bank account. McPherson used many different excuses to explain to his investors why no resort villas had been constructed. He did not disclose to his investors that their contracts had not been honored and no villas were slated for construction. McPherson used his investors’ funds to pay for various personal expenses including his own mortgage.
On October 22, 2020, McPherson was charged by criminal complaint in the District of Oregon with wire fraud and money laundering. In May 2022, he was apprehended in Costa Rica and returned to San Diego.
Today, McPherson waived indictment and venue and pleaded guilty to wire fraud, a charge pending in the District of Oregon. He also pleaded guilty to failing to appear and willfully attempting to evade income taxes, charges pending in the Southern District of California. On April 28, 2023, McPherson will be sentenced in San Diego on all three charges of conviction.
Wire fraud is punishable by up to 20 years in federal prison. Tax evasion and failure to appear are each punishable by up to five years in federal prison. All three charges also carry maximum fines of up to $250,000 or twice a defendant’s gross gains or losses and three years’ supervised release.
This case was investigated by the FBI and IRS-Criminal Investigation. It was prosecuted in the District of Oregon by Assistant U.S. Attorney Gavin W. Bruce.
Willamette Valley Grass Seed Company Pleads Guilty and is Sentenced in Scheme to Defraud SimplotRead the Press Release
PORTLAND, Ore.—On January 24, 2023, a Willamette Valley grass seed marketing and distribution company pleaded guilty and was sentenced in federal court for its role in a scheme to defraud the J.R. Simplot Company and its former subsidiary the Jacklin Seed Company.
Ground Zero Seeds Int’l, Inc. (GZI) pleaded guilty to one count of misprision of felony and was sentenced to one year of probation. The Yamhill, Oregon company was also ordered to pay a $40,000 fine and $516,000 in restitution to Simplot.
According to court documents, GZI and its president, founder, and owner, Gregory McCarthy, maintained longstanding commercial relations with the Jacklin Seed Company, a subsidiary of Simplot based in Liberty Lake, Washington. GZI and McCarthy routinely contracted with Jacklin for the purchase and sale of grass seed. These contracts were typically negotiated with Richard Dunham, a former Jacklin employee who oversaw the company’s order-fulfillment and warehousing operations in Oregon and had the authority to purchase grass seed from certain Oregon growers over others.
Beginning in April 2015, McCarthy and Dunham agreed that GZI would pay Dunham a per pound kickback for grass seed purchased by Jacklin. These kickbacks were built into the prices reflected on GZI’s invoices to Jacklin. Dunham artificially inflated the price Jacklin paid GZI for seed or reduced the price at which Jacklin sold seed to GZI. To help conceal the scheme from Jacklin, Dunham registered a separate business entity through which he purported to offer consulting and grass seed brokering services. Dunham used the company and a checking account in the company’s name to accept kickbacks from GZI, McCarthy, and others.
Between April 2015 and September 2019, McCarthy caused GZI to pay Dunham approximately $191,790.
Prior to GZI pleading guilty and being sentenced, a one-count superseding criminal information was filed charging the company with misprision of felony.
On April 29, 2022, Dunham was charged by criminal information with two counts of conspiracy to commit wire fraud and on July 7, 2022, he pleaded guilty to both charges. Dunham will be sentenced on June 21, 2023.
This case was investigated by IRS-Criminal Investigation and the U.S. Department of Agriculture Office of Inspector General. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Honduran Man Arrested in Portland Trafficking Rainbow Fentanyl and Firearms Charged in Federal CourtRead the Press Release
PORTLAND, Ore.—A Honduran man residing in Portland is facing federal charges after he was arrested moving two kilograms of rainbow-colored fentanyl and several firearms between two Portland-area motels.
Jose Isidro Zuniga Torres, 47, has been charged by criminal complaint with conspiracy to possess and possess with intent to distribute fentanyl.
According to court documents, the U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and Tigard Police Department are engaged in an ongoing investigation into the suspected trafficking of illegal narcotics from Mexico for distribution and sale in Oregon and Washington state. To date, law enforcement officials have charged or arrested eight individuals with connections to an international drug trafficking organization and seized more than five kilograms of powdered fentanyl, four and a half kilograms of heroin, three kilograms each of cocaine and crystal methamphetamine, 45,000 counterfeit oxycodone pills containing fentanyl, and 12 firearms.
As part of this investigation, on January 23, 2023, investigators were surveilling a motel in Portland when they observed two men, one later identified as Zuniga, exit a room carrying multiple boxes. The two men loaded the boxes and several additional bags into a vehicle and began driving toward another area motel. The investigators followed the vehicle and observed the two men unload the boxes and bags into a room at the second motel.
The next day, on January 24, 2023, investigators executed a federal search warrant on the second motel room. After making entry into the room, Zuniga was arrested without incident. Investigators located and seized more than 2 kilograms of hard, rainbow-colored fentanyl packaged for distribution, 417 grams of counterfeit oxycodone pills (M30s) containing fentanyl, 393 grams of crystal methamphetamine, 49 grams of cocaine, and eight firearms.
Zuniga admitted to possessing most of the drugs found in the motel room. He further told investigators the firearms were to be shipped to Honduras and were wrapped in tinfoil and clothing to avoid detection by law enforcement.
Zuniga made his first appearance in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was ordered detained pending further court proceedings.
This case is being investigated by the DEA, HSI, and Tigard Police Department. 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.
Company Operating Aluminum Processing Facility in the Dalles Pleads Guilty to Clean Air Act ViolationsRead the Press Release
PORTLAND, Ore.—On January 24, 2023, an Illinois-based company that operates an aluminum processing facility in The Dalles, Oregon, pleaded guilty to violating the Clean Air Act by negligently releasing a hazardous air pollutant from its facility, endangering employees and nearby community members.
Hydro Extrusion USA (Hydro), a limited liability corporation based in Rosemont, Illinois, pleaded guilty to negligent endangerment by discharging a hazardous pollutant.
“No cost savings or competitive advantage are worth the risk posed to the health and safety of Hydro’s workers or members of the 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 play by the rules.”
“By illegally melting contaminated scrap metal, the defendant knowingly and unlawfully violated environmental regulations and in doing so exposed their workers and the local community to hazardous air pollutants,” said Special Agent in Charge Scot Adair of the Environmental Protection Agency’s criminal investigation program in Oregon. “EPA, along with its state partners, are committed to holding companies accountable when they endanger the health of their employees and local communities.”
According to court documents, Hydro operates a secondary aluminum processing facility in The Dalles where it melts aluminum scrap in induction furnaces to produce reusable aluminum billets. While operating, air emissions from the company’s furnaces were open to the interior of the building and did not pass through any pollution control devices before reaching employees or being vented to ambient air.
Under the Clean Air Act, secondary aluminum production facilities are only permitted to use “clean charge,” aluminum scrap free of paints, coatings or lubricants. Despite this requirement, from July 2018 through June 2019, Hydro acquired and melted scrap aluminum coated in a mineral-oil based mixture that, when combusted, produced hazardous smoke. Hydro saved approximately $466,000 purchasing the unclean charge. During this time, Hydro employees noticed excessive smoke in the facility. Despite being notified by inspectors from EPA and the Oregon Department of Environmental Quality (Oregon DEQ), Hydro continued melting the unclean charge.
On August 23, 2022, after fully cooperating with the government’s investigation of this matter and agreeing to plead guilty, Hydro was charged by federal criminal information with one count of negligent endangerment.
Negligent endangerment under the Clean Air Act is punishable by a fine of up to $200,000 or twice the gross gains or losses resulting from the offense. As part of its plea agreement, Hydro has agreed to pay $550,125 prior to sentencing. The company will be sentenced on April 24, 2023, by U.S. District Court Judge Michael W. Mosman.
This case was investigated by the EPA Criminal Investigation Division (EPA-CID) with assistance from Oregon DEQ. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Former Beaverton Mayor Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
PORTLAND, Ore.—Dennis “Denny” Doyle, the former mayor of Beaverton, Oregon, was sentenced to federal prison today for illegally possessing child pornography.
Doyle, 74, a Beaverton resident, was sentenced to six months in federal prison and five years’ supervised release. Doyle was also ordered to pay $22,000 in restitution to his victims.
According to court documents, in late January 2022, the Beaverton Police Department was notified by a local business that a USB thumb drive containing possible child pornography had been found. The business provided the thumb drive to law enforcement, and it was determined that did indeed contain child pornography. Additionally, the drive contained personal photographs that appeared to belong to Doyle. Law enforcement also determined the images of child pornography were downloaded onto the thumb drive between November 2014 and December 2015, while Doyle was serving as the Beaverton mayor.
After the Beaverton Police Department referred the case to the FBI, special agents from FBI Portland’s Child Exploitation Task Force (CETF) contacted Doyle at his home. Doyle was immediately truthful with the agents, admitting the drive was his and that he had personally downloaded child pornography from his home computer. No further evidence of child pornography was located on Doyle’s digital devices.
On March 3, 2022, Doyle was charged by criminal information with one count of possession of child pornography and, on October 11, 2022, pleaded guilty to the single charge.
This case was investigated by FBI Portland’s CETF with assistance from the Beaverton Police Department. It was prosecuted by the U.S. Attorney’s Office 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.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. Child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the NCMEC’s website at www.missingkids.org.
FBI Portland’s 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.
Arizona Woman Caught Trafficking Fentanyl and Heroin on Interstate 5 Charged in Federal CourtRead the Press Release
PORTLAND, Ore.—An Arizona woman is facing federal charges after she was caught trafficking approximately 45,000 counterfeit oxycodone pills containing fentanyl and several additional pounds of bulk heroin on Interstate 5 near Salem, Oregon.
Nancy Garcia, 47, of Yuma County, Arizona, has been charged by criminal complaint with possessing with intent to distribute fentanyl and heroin.
According to court documents, on January 16, 2023, an Oregon State Police (OSP) trooper initiated a traffic stop on a vehicle being driven by Garcia northbound on Interstate 5 near Salem. The trooper identified Garcia as the sole occupant of the vehicle and observed that she was traveling with a statue of Santa Muerte, a saint-like figure some individuals believe offers protection in drug trafficking.
Garcia first told the trooper she was traveling to Seattle, but later said she was traveling to and planning to spend a week in Portland. The trooper lawfully searched Garcia’s vehicle and found more than 10 pounds of counterfeit oxycodone pills containing fentanyl and five and half pounds of bulk heroin in a bag on the floor behind the driver’s seat. The trooper placed Garcia under arrest and transported the drugs to a law enforcement lab for further evaluation.
On January 18, 2023, Garcia made her first appearance in federal court before U.S. Magistrate Judge Youlee Yim You. She 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 Paul T. Maloney, 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.
Federal Law Enforcement Partners Commemorate National Human Trafficking Awareness Day--January 11, 2023Read the Press Release
PORTLAND, Ore.—Today, federal law enforcement partners from the U.S. Attorney’s Office for the District of Oregon, FBI Portland Field Office, and Homeland Security Investigations Seattle Field Office join to commemorate National Human Trafficking Awareness Day and reaffirm their commitment to combating all forms of human trafficking.
“Human trafficking devastates families and communities and preys on the most vulnerable members of our society. As a federal prosecutor, I’ve seen the extraordinary suffering survivors have endured and the incredible strength, courage, and resolve they demonstrate as they rebuild their lives. Today is a day we honor these survivors,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“Due to the I-5 corridor, human trafficking remains a huge problem throughout the state of Oregon and sadly, our Violent Crime Squad and Child Exploitation Task Force have some of the busiest investigators in the FBI's Portland office. Traffickers often lure vulnerable victims with promises of a better life and then use violence and manipulation as a means to control,” said, Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “The FBI, along with our law enforcement partners, is working every day to protect those victims who are being exploited from further abuse. Help us help them. If you have information about human trafficking or child exploitation, please contact law enforcement immediately.”
“Our nation is one that places a high value on opportunity, and through our many partnerships we can ensure that those opportunities are not poisoned by criminals who utilize slavery as cruel means to a harmful end,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI continues to fight human trafficking regardless of the form it takes, and will use our expertise in investigating transnational crime to prevent the exploitation of people through forced labor, domestic servitude, or sex trafficking.”
Human trafficking, sometimes referred to as trafficking in persons or modern slavery, is a serious federal crime involving the exploitation of individuals for labor, services, or commercial sex through force, fraud, or coercion. This coercion can be subtle or overt, physical or psychological. Exploitation of a minor for commercial sex is human trafficking, regardless of whether any form of force, fraud, or coercion was used.
Victims of human trafficking can be anyone regardless of race, color, national origin, disability, religion, age, gender, sexual orientation, gender identity, socioeconomic status, education level, or citizenship status. Although there is no defining characteristic that all human trafficking victims share, traffickers around the world frequently prey on individuals who are poor, vulnerable, living in unsafe or unstable environments, or are in search of a better life.
In the U.S., trafficking victims can be American or foreign citizens. Some of the most vulnerable populations for trafficking in the U.S. include American Indian and Alaska Native communities, LGBTQ individuals, individuals with disabilities, undocumented migrants, runaway and homeless youth, temporary guest-workers, and low-income individuals.
The U.S. Attorney’s Office for the District of Oregon is committed to continuing its victim-centered, trauma-informed approach to detecting hidden human trafficking crimes, holding perpetrators accountable, and helping to restore the lives of survivors, while strengthening strategic anti-trafficking partnerships.
If you or someone you know is in immediate danger, please call 911.
If you believe you or someone you know is a victim of human trafficking or may have information about a trafficking situation, please call the National Human Trafficking Hotline toll-free at 1-888-373-7888 or visit https://humantraffickinghotline.org. You can also text the National Human Trafficking Hotline at 233733.
January is National Slavery and Human Trafficking Prevention Month. Every year since 2010, the President has dedicated the month to raising awareness about the different forms of human trafficking and educating people about this crime and how to spot it. To learn more, visit https://www.whitehouse.gov/briefing-room/presidential-actions/2022/12/30/a-proclamation-on-national-human-trafficking-prevention-month-2023/.
Douglas County Man Sentenced to Five Years in Federal Prison for Manufacturing Illegal Short-Barreled Rifle and Selling DrugsRead the Press Release
EUGENE, Ore.—A Douglas County, Oregon man was sentenced to federal prison today for manufacturing and selling an illegal short-barreled rife and selling several ounces of methamphetamine.
Gregory Wayne Ferguson, 46, was sentenced to 60 months in federal prison and 4 years’ supervised release.
According to court documents, in January 2021, law enforcement learned that Ferguson had claimed to manufacture “ghost guns,” do-it-yourself firearms made from readily-available materials and components untraceable by law enforcement. Ferguson further claimed to have manufactured a short-barreled rifle that could be made into a fully-automatic weapon. In late January 2021, Ferguson test-fired the unmarked, short-barreled rifle with a prospective buyer and then sold it for $1,500. One week later, Ferguson sold 110 grams of methamphetamine to the same individual.
On March 15, 2021, Ferguson was charged by criminal complaint with illegally possessing a firearm made in violation of the National Firearms Act and distributing methamphetamine. Ferguson was arrested the next day. On September 21, 2022, he pleaded guilty to both charges.
Today’s sentencing resolves Ferguson’s federal criminal case and is expected to resolve several pending felony cases in Douglas County Circuit Court.
This case was investigated by ATF with assistance from the Douglas Interagency Narcotics Team, Douglas County Sheriff’s Office and Oregon State Police. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, in partnership with Chief Deputy District Attorney Allison Eichmann of the Douglas County District Attorney’s Office.
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.
Formed in October 1989, the Douglas Interagency Narcotics Team is a special investigative unit formed to combat illegal narcotics activity in Douglas County. DINT member agencies include Douglas County, including the Douglas County Sheriff and District Attorney’s Offices, the Oregon National Guard, Oregon State Police, and Roseburg Police Department.
Portland Man with 18 Prior Felony Convictions Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Ore.—On January 9, 2023, a Portland man with a criminal history spanning decades was sentenced to federal prison after he was arrested for discharging a firearm into the air outside a local restaurant during an altercation with his girlfriend.
Tyrone Lamont Allen, 53, was sentenced to 77 months in federal prison and three years’ supervised release.
According to court documents, on November 9, 2021, officers from the Portland Police Bureau (PPB) responded to a disturbance and reports of shots fired near a restaurant and bar in southeast Portland. Witnesses reported Allen, who was on post-prison supervision for committing multiple bank robberies, and his girlfriend were involved in an altercation inside the restaurant that escalated as the couple moved outside. When the woman threatened to call 911, Allen fired a single shot from a handgun into the air and drove off. Responding officers viewed surveillance footage of the incident and observed Allen arguing with and hitting his girlfriend. The video also showed Allen’s girlfriend hiding behind vehicles in the restaurant’s parking lot while he drove around looking for her.
While conducting their investigation, officers observed Allen drive by the restaurant. The officers quickly stopped his vehicle and detained him. Allen admitted to the officers that he “got a little hot” in his altercation with his girlfriend, but denied firing or possessing a firearm. Officers found a .38 caliber revolver with five spent casings in the cylinder underneath the driver’s seat of Allen’s vehicle. Allen claimed the firearm belonged to his girlfriend.
On October 3, 2022, Allen was charged by criminal information with illegally possessing a firearm as a convicted felon. On October 12, 2022, he pleaded guilty to the single charge.
This case was investigated by the FBI and PPB. It was prosecuted by Parakram Singh, 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.
Former Portland Attorney Sentenced to More Than Eight Years in Federal Prison for Embezzling Client FundsRead the Press Release
PORTLAND, Ore.—A former Portland attorney was sentenced to federal prison today for defrauding more than one hundred clients out of millions of dollars in insurance proceeds and using the stolen money to bankroll a lavish lifestyle.
Lori E. Deveny, 57, was sentenced to 101 months in federal prison and three years’ supervised release. Deveny was also ordered to pay more than $4.5 million in restitution to her victims.
“It’s hard to overstate the extraordinary impact Ms. Deveny’s crimes had on the many innocent and vulnerable victims who trusted her. As a former attorney, she had a special responsibility to her clients and to the public, but she repeatedly abused this trust and prioritized her own needs. This is a just sentence for serious crimes,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office.
“The cruelest thing of all is knowingly providing false hope. Having already suffered losses, Ms. Deveny’s clients deserved an attorney who represented their best interests. What they got instead was someone who inflicted more loss,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Today, Ms. Deveny is receiving what she never provided her clients: a picture of reality that those who choose to defraud will face the consequences of their actions.”
“While serving as an attorney, Ms. Deveny brazenly stole money that should have gone to pay for health care for her clients for serious injuries and ailments. Instead, that money funded things like big game hunting trips to Africa and home remodeling. She took advantage of people who were physically and emotionally hurting by forging insurance checks, stealing the funds and lying to her clients about the payouts,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “These actions not only got her disbarred but are now putting her behind bars. The FBI applauds our partners at IRS-CI and the U.S. Attorney’s Office, as we continue to bring to justice those who commit this kind of unconscionable financial fraud that harms the people in our shared community.”
According to court documents, between April 2011 and May 2019, Deveny used manipulation and deceit to systematically defraud at least 135 clients out of more than $3.8 million in insurance proceeds she held in trust on their behalf. To accomplish her scheme, Deveny stole her clients’ identities, forged insurance checks made payable to them, deposited client funds into her personal bank accounts, and continually lulled clients into a false sense of hope that they would receive compensation for their injuries. Many of Deveny’s victims were particularly vulnerable to her criminal behavior after sustaining serious brain and bodily injuries and never received the insurance payouts they were owed.
The Oregon State Bar Client Security Fund (CSF), Wells Fargo Bank, and the IRS also suffered losses as a result of Deveny’s scheme. The CSF made partial restitution payments to some of Deveny’s clients, resulting in a loss of more than $1.2 million. This is one of the largest losses in the Oregon State Bar’s history and resulted in the organization raising dues for all members for two years to cover the cost of the payments. Wells Fargo Bank lost more than $52,000 because Deveny stole and forged a check and the IRS sustained a tax loss of more than $621,000 when Deveny failed to report the money she stole from her clients on her personal income tax returns.
All told, Deveny’s crimes resulted in total losses to all victims of more than $4.5 million.
Deveny used the proceeds of her scheme to pay more than $150,000 on foreign and domestic airline tickets, more than $173,000 on African safari and big game hunting trips, $35,000 on taxidermy expenses, $125,000 on home renovations, $195,000 in mortgage payments, more than $220,000 in cigars and related expenses, $58,000 on pet boarding and veterinary costs, $41,000 on recreational vehicle expenses, $50,000 for a Cadillac luxury vehicle, and $60,000 on stays at a luxury nudist resort in Palm Springs, California.
On May 7, 2019, a federal grand jury in Portland returned a 24-count indictment charging Deveny with mail, bank, and wire fraud; aggravated identity theft; money laundering; and filing a false tax return.
On June 27, 2022, she pleaded guilty to one count each of mail, wire, and bank fraud; money laundering; and filing a false tax return; and two counts of aggravated identity theft.
This case was investigated by IRS-CI and the FBI with assistance from the Portland Police Bureau. It was prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
Central California Man Sentenced to Federal Prison for Abducting and Sexually Abusing an Oregon Minor He Met OnlineRead the Press Release
EUGENE, Ore.—A Mariposa, California man was sentenced to more than 15 years in federal prison today after he abducted and repeatedly sexually abused an Oregon minor he met online.
Deven Richard Dearing, 26, was sentenced to 187 months in federal prison followed by a life term of supervised release.
According to court documents, in August 2020, multiple law enforcement agencies began searching for an Oregon minor declared missing by her family. Investigators soon discovered social media exchanges between the minor and Dearing, who was found to be residing in central California near Sacramento. On August 29, 2020, FBI agents contacted Dearing and interviewed him about his online exchanges and the possible whereabouts of the Oregon minor. On the same day, unrelated to law enforcement’s contact with Dearing, the missing minor walked into the Merced County Sheriff’s Office in Merced, California and told police she had run away from home. Investigators later learned this story was a lie concocted by Dearing to hide his role in the minor’s abduction.
Following the minor’s safe return to Oregon, the FBI’s investigation revealed Dearing had met her in June 2020 through a chat website called Omegle and later continued chatting with her on Instagram. The chats showed that Dearing, who was 23 at the time, knew the girl was minor and, over several months, engaged in extensive, sexually explicit exchanges with her. Dearing further convinced the minor to produce and send him multiple sexually explicit photos and videos.
On August 20, 2020, Dearing drove more than 600 miles from his house in California to the minor’s home in Oregon. While en route, he devised a plan to disable the SIM card in the minor’s phone to prevent her from being tracked. After picking her up, Dearing initially took the minor to a hotel in Oregon where he sexually abused her and later transported her to California where the abuse continued for more than a week. Dearing eventually agreed to drop the minor off at a local police station.
On January 25, 2021, Dearing was charged by criminal complaint with attempted sexual exploitation of a child, transportation with intent to engage in criminal sexual activity, receipt of child pornography, and possession of child pornography.
Later, on April 15, 2021, a federal grand jury in Eugene returned an indictment charging Dearing with sexual exploitation of a child, transportation with intent to engage in criminal sexual activity, and receipt of child pornography. On September 15, 2022, Dearing pleaded guilty to the first two charges.
This case was investigated by the FBI’s Eugene Resident Agency and the Corvallis Police Department with assistance from the FBI’s Fresno, California Resident Agency, the FBI’s Cellular Analysis Survey Team (CAST) and the FBI’s Child Abduction Rapid Deployment (CARD) Team. It was prosecuted by William M. McLaren, Assistant U.S. Attorney for the District of Oregon, in coordination with the Benton County, Oregon and Mariposa County, California District Attorney’s Offices.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
FBI and Partners Issue National Public Safety Alert on Financial Sextortion SchemesRead the Press Release
PORTLAND, Ore.— The FBI, in partnership with Homeland Security Investigations and the National Center for Missing and Exploited Children, is issuing a national public safety alert regarding an explosion in incidents of children and teens being coerced into sending explicit images online and extorted for money—a crime known as financial sextortion.
Over the past year, law enforcement has received over 7,000 reports related to the online financial sextortion of minors, resulting in at least 3,000 victims, primarily boys, and more than a dozen suicides. A large percentage of these sextortion schemes originate outside of the United States, and primarily in West African countries such as Nigeria and Ivory Coast. As many children enter winter break this holiday season, the FBI and our partners implore parents and caregivers to engage with their kids about financial sextortion schemes so we can prevent them in the first place.
“The FBI has seen a horrific increase in reports of financial sextortion schemes targeting minor boys—and the fact is that the many victims who are afraid to come forward are not even included in those numbers,” said FBI Director Christopher Wray. “The FBI is here for victims, but we also need parents and caregivers to work with us to prevent this crime before it happens and help children come forward if it does. Victims may feel like there is no way out—it is up to all of us to reassure them that they are not in trouble, there is hope, and they are not alone.”
“The protection of children is a society’s most sacred duty,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “It calls on each of us to do everything we can to keep kids from harm, including ensuring the threats they face are brought into the light and confronted. Armed with the information in this alert message, parents, caregivers, and children themselves should feel empowered to detect fake identities, take steps to reject any attempt to obtain private material, and if targeted, have a plan to seek help from a trusted adult.”
Financial sextortion schemes occur in online environments where young people feel most comfortable—using common social media sites, gaming sites, or video chat applications that feel familiar and safe. On these platforms, online predators often use fake female accounts and target minor males, between 14 to 17 years old but the FBI has interviewed victims as young as 10 years old.
“The sexual exploitation of children is a deplorable crime. HSI special agents will continue to exhaust every resource to identify, locate, and apprehend predators to ensure they face justice,” said Steve K. Francis, HSI Acting Executive Associate Director. “Criminals who lurk in platforms on the internet are not as anonymous as they think. HSI will continue to leverage cutting-edge technology to end these heinous acts.”
Through deception, predators convince the young person to produce an explicit video or photo. Once predators acquire the images, they threaten to release the compromising material unless the victim sends money or gift cards. Often the predators demand payment through a variety of peer-to-peer payment applications. In many cases, however, predators release the images even if payments are made. The shame, fear, and confusion that victims feel when they are caught in this cycle often prevents them from asking for help or reporting the abuse.
“This is a growing crisis and we've seen sextortion completely devastate children and families,” said Michelle DeLaune, CEO of the National Center for Missing & Exploited Children. “As the leading nonprofit focused on child protection, we've seen first-hand the rise in these cases worldwide. The best defense against this crime is to talk to your children about what to do if they're targeted online. We want everyone to know help is out there and they're not alone.”
What if you or your child is a victim?
If young people are being exploited, they are victims of a crime and should report it. Contact the FBI Portland Field Office, call 1-800-CALL-FBI, or report it online at tips.fbi.gov.
The National Center for Missing and Exploited Children (NCMEC) has outlined steps parents and young people can take if they or their child are a victim of sextortion, including:
- Remember, the predator is to blame, not your child or you.
- Get help before deciding whether to pay money or otherwise comply with the predator. Cooperating or paying rarely stops the blackmail and continued harassment.
- REPORT the predator’s account via the platform’s safety feature.
- BLOCK the predator and DO NOT DELETE the profile or messages because that can be helpful to law enforcement in identifying and stopping them.
- Let NCMEC help get explicit images of you off the internet.
- Visit missingkids.org/IsYourExplicitContentOutThere to learn how to notify companies yourself or visit cybertipline.org to report to us for help with the process.
- Ask for help. This can be a very complex problem and may require help from adults or law enforcement.
- If you don’t feel that you have adults in your corner, you can reach out to NCMEC for support at [email protected] or call NCMEC at 1-800-THE-LOST.
Take a moment to learn how sextortion works and how to talk to your children about it. Information, resources, and conversation guides are available at fbi.gov/StopSextortion.
U.S. Attorney's Office Collects Nearly $33 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that it has collected nearly $33 million in criminal and civil actions in Fiscal Year 2022. Of this amount, $10.2 million was collected in criminal actions and $4.6 million was collected in civil actions.
The District of Oregon worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1 million in criminal and civil cases pursued jointly by these offices and $16.9 million in asset forfeiture actions.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“The District of Oregon’s Financial Litigation Program staff deliver a valuable service to victims of crime, as well as a valuable return to the American people by holding accountable those who have profited from crimes committed in Oregon and beyond, and by collecting on other actions resulting in civil settlements,” said Katie de Villiers, Chief of the U.S. Attorney’s Office Asset Recovery and Money Laundering Division. “We take seriously our obligation to make crime victims as financially whole as possible, whether those victims are private individuals, large companies, or government agencies. Our annual collections figure is a testament to our team’s daily hard work and unwavering pursuit of justice.”
An example of the district’s collection efforts was in U.S. v. Kiraz et al. In early October 2022, the U.S. Attorney’s Office announced it had secured a full restitution payment totaling more than $600,000 from the former operators of two Portland-area strip clubs who were convicted at trial in 2016 for conspiring to defraud the IRS and Oregon Department of Revenue. On September 23, 2022, the Clerk of the Court for the District of Oregon received a payment of $608,217 from David, George, and Daniel Kiraz. The Kirazes had previously paid less than ten percent of their original $657,243 restitution order.
A second example is in U.S. v. Idaho Power Company. In late August 2022, the U.S. Attorney’s Office announced it had reached an agreement with the Idaho Power Company, a Boise, Idaho-based utility, wherein the company would pay $1.5 million to settle allegations by the U.S. relating to the May 2014 Powerline and August 2015 Lime Hill fires in Baker County, Oregon. Soon after, the company paid the $1.5 million settlement in full.
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The District of Oregon’s Financial Litigation Program (FLP) is part of the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Division. The mission and goal of FLP is to fairly achieve the maximum recovery of civil and criminal debts consistent with applicable laws, regulations, and Justice Department policies. FLP attorneys and support staff work with individuals subject to restitution orders to bring closure for crime victims and recoup losses incurred by United States taxpayers.
Portland Area Mail Thief Sentenced to Federal Prison for Bank Fraud, Identity Theft, and Possession of MethamphetamineRead the Press Release
PORTLAND, Ore.—A Washington County, Oregon man was sentenced to federal prison today for using stolen bank checks and debit cards to defraud local residents and illegally possessing distribution quantities of methamphetamine.
William Anthony McCormack, Jr., 40, was sentenced to 121 months in federal prison and five years’ supervised release. He was also ordered to pay $8,553 in restitution to his victims.
According to court documents, between June and September 2020, McCormack devised a scheme whereby he would steal bank checks and debit cards from community mailboxes, primarily in Washington County, and use them to make unauthorized withdrawals from victims’ bank accounts. On at least five separate occasions, McCormack deposited stolen checks into victims’ Rivermark Community Credit Union accounts and immediately made unauthorized withdrawals from the same accounts.
On September 29, 2020, during a traffic stop for speeding and driving with a suspended license, a Tualatin Police officer arrested McCormack pursuant to a federal arrest warrant. At the time of his arrest, McCormack possessed 30 small plastic baggies containing approximately 30 grams of methamphetamine and two 9mm handguns. Officers also found several driver’s licenses, U.S. passports, and pieces of stolen mail in McCormack’s vehicle and hotel room.
On September 24, 2020, a federal grand jury in Portland returned a 12-count indictment charging McCormack with possession of stolen mail, possession of counterfeit U.S. Postal Service arrow keys, bank fraud, and aggravated identity theft. Later, on March 29, 2021, he was charged by superseding criminal information with one count each of bank fraud, aggravated identity theft, and possession with intent to distribute methamphetamine. On April 14, 2021, McCormack pleaded guilty to all three charges in the superseding criminal information.
Prior to pleading guilty, on March 16, 2021, McCormack was released from custody on conditions and placed into a residential drug treatment program. Less than three weeks after pleading guilty, he absconded from the treatment program and a warrant was issued for his arrest. McCormack’s whereabouts were unknown for more than a year before he was arrested by the Tigard Police Department on June 5, 2022.
This case was investigated by the U.S. Postal Inspection Service. It was prosecuted by Meredith D.M. Bateman, Assistant U.S. Attorney for the District of Oregon.
If you or someone you know are the victim of or witness a mail-related crime, please contact the U.S. Postal Inspection Service by visiting www.uspis.gov/report.
Former Portland Area Non-Profit Director Pleads Guilty to Stealing Covid Relief FundsRead the Press Release
PORTLAND, Ore.—A former Portland area non-profit director pleaded guilty today for stealing more than $320,000 in federal funds intended to help small businesses during the COVID-19 pandemic.
Theodore Johnson, 62, a Portland resident, pleaded guilty to one count of bank fraud.
According to court documents, in February 2017, Johnson incorporated and began serving as the director of operations for Ten Penny International Housing Foundation, an Oregon-based non-profit organization. After Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 to provide emergency financial assistance to American employers suffering the economic effects of the COVID-19 pandemic and resulting shutdowns, Johnson saw an opportunity to fraudulently obtain government funds on Ten Penny’s behalf.
In early March 2021, Johnson submitted his first of three Paycheck Protection Program (PPP) applications, falsely claiming Ten Penny employed 16 people and had an average monthly payroll of more than $57,000. To support his application, Johnson submitted fraudulent tax documents and created an electronic counterfeit IRS stamp to make it appear as though a form had been received by the IRS. Based on these false claims, Northeast Bank issued a PPP loan worth more than $143,000 to Ten Penny.
Two months later, in May 2021, Johnson submitted two more fraudulent PPP loan applications. In these applications, he again falsely claimed Ten Penny employed 16 people and had an average monthly payroll of at least $50,000. Johnson further falsely claimed to have used the entirety of his first PPP loan for eligible expenses. As a result, Central Willamette Credit Union issued Johnson a second PPP loan worth more than $130,000.
In addition to his three fraudulent PPP loan applications, Johnson submitted a fraudulent Oregon Cares Fund application on behalf of Ten Penny and received an additional $34,975.
On October 31, 2022, Johnson was charged by criminal information with one count of bank fraud.
Johnson faces a maximum sentence of 30 years in prison, a $1 million fine and five years’ supervised release. He will be sentenced on March 16, 2023, before U.S. District Court Judge Michael H. Simon.
As part of his plea agreement, Johnson has agreed to pay more than $321,000 in restitution to Northeast Bank, Central Willamette Credit Union, the U.S. Small Business Administration, and the Oregon Department of Administrative Services.
This case was investigated by the SBA Office of Inspector General and U.S. Treasury Inspector General for Tax Administration (TIGTA). It is being prosecuted by Meredith D.M. Bateman, Assistant U.S. Attorney for the District of Oregon.
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.
Eastern Oregon Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
PORTLAND, Ore.—A known drug dealer from Umatilla County, Oregon was sentenced to federal prison today after he was convicted at trial on multiple felony drug and firearm charges.
Jordan Anthony Camardese, 32, a resident of Umatilla, Oregon, was sentenced to 120 months in federal prison and four years’ supervised release. He was also ordered to forfeit a 9mm firearm used to facilitate his crimes.
According to court documents and trial testimony, on October 29, 2020, Camardese confronted several individuals about their alleged gang affiliations in or near the Pendleton Market, a small convenience store located in Pendleton, Oregon. After being confronted, several of the individuals left the market together in a single vehicle and traveled approximately one mile to a nearby auto detail shop. Camardese got into a vehicle driven by his wife and they sped off after the group.
When Camardese and his wife arrived at the auto detail shop, there was another confrontation and the shop’s owner repeatedly told Camardese to leave. As they drove away, Camardese pulled himself out of the passenger window and took a black handgun out of his waistband. After pausing briefly, the pair continued driving away. After hearing the commotion and seeing Camardese holding the handgun, a nearby witness called 911.
Officers from the Pendleton Police Department responded, located Camardese parked in his wife’s vehicle on a residential street less than a mile away, and placed him under arrest. Officers from the Blue Mountain Enforcement Narcotics Task Force (BENT) later searched the vehicle pursuant to a federal search warrant and located several of Camardese’s belongings as well as distribution quantities of heroin and fentanyl and assorted ammunition.
On November 12, 2020, a federal grand jury in Portland returned a three-count indictment charging Camardese with possessing a firearm in furtherance of a drug trafficking crime, possessing a firearm as a convicted felon, and possessing with intent to distribute heroin. Later, on July 13, 2021, a fourth charge of possessing with intent to distribute fentanyl was added.
On August 19, 2022, after a three-day jury trial, Camardese was found guilty on all charges.
This case was investigated by the FBI and BENT. It was prosecuted by Kemp Strickland and Sarah Barr, Assistant U.S. Attorneys for the District of Oregon.
BENT is a High Intensity Drug Trafficking Area (HIDTA) task force comprised of detectives from the Pendleton Police Department, Hermiston Police Department, Boardman Police Department, Oregon State Police, Morrow County Sheriff’s Office, Milton-Freewater Police Department, and Umatilla Tribal Police Department.
Man Pleads Guilty to Voluntary Manslaughter on the Umatilla Indian ReservationRead the Press Release
PORTLAND, Ore.—On December 14, 2022, a resident of the Umatilla Indian Reservation pleaded guilty after he repeatedly struck a fellow resident of the reservation with his fists, causing the person’s death.
Tom Redhawk Tias, 22, pleaded guilty to one count of voluntary manslaughter.
According to court documents, on January 26, 2021, Tias contacted law enforcement to report an unresponsive adult. Officers responded to the scene on the Umatilla Indian Reservation and located a deceased adult who multiple witnesses said Tias admitted to hitting. In an interview with law enforcement, Tias confirmed these accounts. The victim, who had an active Tribal protection order against Tias, was later determined to have died due to blunt force trauma to the head and neck.
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.
Tias faces a maximum sentence of 15 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on April 10, 2023, by Chief U.S. District Court Judge Marco A. Hernández.
As part of the plea agreement, Tias has agreed to pay restitution in full to the decedent’s next of kin his victim’s next of kin as identified by the government and ordered by the court.
This case was investigated by the FBI and Umatilla Tribal Police Department. Assistant U.S. Attorney Pamela Paaso is prosecuting the case.
Portland Man Sentenced to Federal Prison for Stealing Covid Relief Funds While on Post-Prison SupervisionRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for fraudulently applying for and receiving Covid relief program funds for a fictitious business entity just five months after finishing a 70-month state prison sentence for armed robbery.
Dimitrius Nicholai Pryce, 43, was sentenced to eight months in federal prison and three years’ supervised release. He was also ordered to pay $24,900 in restitution to the U.S. Small Business Administration (SBA).
According to court documents, in February 2020, Pryce was released from state custody after serving a 70-month prison sentenced for armed robbery. A few months later, in early July 2020, he submitted a fraudulent Economic Impact Disaster Loan (EIDL) application, claiming he ran an “entertainment venue” that generated $53,000 in revenue in the twelve months prior to the Covid-19 pandemic. In the application, Pryce also falsely denied having been on “any form of parole or probation” after a felony conviction within the previous five years.
Pryce’s false representations caused the SBA to approve and disburse to him nearly $25,000 in EIDL funds. Pryce withdrew $21,000 of the funds in cash the same day he received it and spent the entire sum within three months. In January 2021, Pryce submitted three more fraudulent EIDL applications, pretending to be in the construction trades, but was denied on all three.
On February 8, 2022, a federal grand jury in Portland returned an indictment charging Pryce with one count of wire fraud. On October 12, 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. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
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.
Happy Valley Man Sentenced for Illegally Trafficking Counterfeit Gun Parts for Use as Airsoft AccessoriesRead the Press Release
PORTLAND, Ore.—On December 13, 2022, a Happy Valley, Oregon man was sentenced to federal probation for illegally trafficking counterfeit gun accessories, including suppressors, scopes, grips and sights, from China for resale as airsoft gun accessories.
Johnny Li, 25, was sentenced to five years’ federal probation, including 180 days of home detention, and ordered to pay $281,628 in restitution.
According to court documents, sometime in 2019, Li began trafficking counterfeit gun parts he purchased from China—often through Alibaba.com, one of the world’s largest online commerce companies—into the U.S. for resale online via his website SupplyAirsoft.com. In December 2019, U.S. Customs and Border Protection seized 35 counterfeit laser sights, labeled as “Toy Telescopes”, sent from a Chinese company to Li’s home in Happy Valley. CBP sent Li a letter notifying him of the seizure. Several months later, in May 2020, CBP seized additional rifle sights en route to Li and again notified him of the seizure.
On October 27, 2020, federal agents executed a search warrant on Li’s residence and seized hundreds of counterfeit gun parts and accessories. Altogether, the counterfeit items seized had an estimated value of more than $281,000.
On November 9, 2021, a federal grand jury in Portland returned an indictment charging Li with trafficking in counterfeit goods. On June 23, 2022, he pleaded guilty to the single charge.
This case was investigated by Homeland Security Investigations (HSI), the Portland Police Bureau (PPB), and the Oregon Intellectual Property Task Force. It was prosecuted by Quinn P. Harrington and Katherine A. Rykken, Assistant U.S. Attorneys for the District of Oregon.
Created in October 2011 by PPB, the Oregon Intellectual Property Task Force (formerly called the Intellectual Property Crimes Enforcement Team) investigates and enforces intellectual property crime, protecting the public’s health, safety, and economic welfare by interrupting the flow of counterfeit products. Since its founding, the task force has grown to include members from HSI, the U.S. Postal Inspection Service, Beaverton Police Department, Woodburn Police Department, Tigard Police Department, Washington County Sheriff’s Office, Washington County District Attorney’s Office, Multnomah County District Attorney’s Office and U.S. Attorney’s Office for the District of Oregon.
Anyone who has information about counterfeiting, or any of violations of intellectual property rights, are encouraged to submit a tip to the National Intellectual Property Rights Coordination Center (IPR Center) by visiting www.iprcenter.gov/report.
Washington State Man Charged with Production of Child Pornography and EnticementRead the Press Release
EUGENE, Ore.—A Tacoma, Washington man is facing federal charges after he allegedly used social media to find young girls and convince them to produce and send him sexually explicit photos and videos and engage in self-harm.
On November 17, 2022, a federal grand jury in Eugene returned an indictment charging Brandon Kuper, 20, with production of child pornography and enticement.
According to court documents, Kuper, operating under the username “Merqzs”, used Discord and Snapchat, two social media messaging applications, to find an unknown number of young girls and convince them to produce and send him sexually explicit photos and videos. Kuper threatened to harm his victims’ families or post sexually explicit photos of them online if they did not comply with his demands. In several instances, Kuper further asked his victims to cut his social media username, “Merqzs”, into their skin, photograph it, and send him the photos.
Kuper made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and detained pending a jury trial scheduled to begin on February 14, 2023.
This case was investigated by Homeland Security Investigations (HSI) with assistance from the Bend Police Department. Assistant U.S. Attorneys Amy Potter and John Brassell are prosecuting the case.
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 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.
Tigard Man Sentenced to Federal Prison for Trafficking Fentanyl, Other Illegal NarcoticsRead the Press Release
PORTLAND, Ore.—A Tigard, Oregon man was sentenced to federal prison today for trafficking illegal narcotics, including fentanyl and methamphetamine, in the Portland area.
Cole Richard Killion, 35, was sentenced to 72 months in federal prison and four years’ supervised release.
According to court documents, in March 2021, while investigating fentanyl trafficking in the Portland area, special agents from Homeland Security Investigations (HSI) learned, through various investigative tactics including financial analyses, that Killion was involved in the distribution of counterfeit oxycodone pills. Between December 2020 and February 2021, Killion’s bank account recorded 37 cash deposits and electronic funds transfers totaling approximately $56,000, which was inconsistent with his apparent employment status.
On August 4, 2021, agents executed a federal search warrant on Killion’s Tigard residence where he was living with his parents. That day, Killion left the house carrying a rectangular case containing more than 500 counterfeit oxycodone pills and various drug paraphernalia. A further search of the residence returned an additional 1,500 pills later confirmed to contain fentanyl, 187 grams of heroin laced with fentanyl, 345 grams of methamphetamine, and 501 grams of cocaine. Investigators also located two firearms, ammunition, and other materials indicating Killion’s involvement in drug trafficking.
On August 5, 2021, Killion was charged by criminal complaint with possessing with intent to distribute fentanyl, methamphetamine, heroin, and cocaine; possessing a firearm in furtherance of a drug trafficking crime; and impeding an officer authorized to conduct a search a warrant. Later, on August 17, 2021, a federal grand jury indicted Killion on the drug trafficking and firearm charges. On October 12, 2022, he pleaded guilty to possessing with intent to distribute fentanyl and methamphetamine.
This case was investigated by HSI with assistance from the Washington County Sheriff’s Office and Westside Interagency Narcotics Task Force (WIN). It was prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
WIN includes representatives from the Washington County Sheriff's Office and the Beaverton, Hillsboro, and Tigard Police Departments.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.
If you are in immediate danger, please call 911.
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.
Tillamook County Man Sentenced to Federal Prison for Unlawfully Transporting Explosive MaterialsRead the Press Release
PORTLAND, Ore.—A Tillamook County, Oregon man was sentenced to federal prison today after he was found driving a stolen vehicle while possessing explosive materials housed in a metal bottle.
Robert David Larsen, 36, was sentenced to 15 months in federal prison and three years’ supervised release.
According to court documents, on April 27, 2021, officers from the Cornelius Police Department pulled Larsen over while he was driving a stolen vehicle. Officers searched the vehicle and found suspected explosive materials and several catalytic converters in the trunk. The explosive material was constructed out of an 8-inch metal bottle filled with a smokeless, explosive powder. The bottle had a detonation cord inserted through a drilled hole in the bottle’s cap.
On June 1, 2021, a federal grand jury in Portland returned a three-count indictment charging Larsen with possessing an unregistered destructive device, unlawfully transporting explosive materials, and possessing explosive materials as a convicted felon.
On May 23, 2022, Larsen pleaded guilty to unlawfully transporting explosive materials.
Larsen was in state custody from April 2021 until July 2022, when he was transferred to federal custody. His 15-month federal sentence will run consecutive to the time Larsen served in state custody.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Cornelius Police Department. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Arizona Man Sentenced to 5 Years in Federal Prison for Fentanyl TraffickingRead the Press Release
PORTLAND, Ore.—An Arizona man was sentenced to federal prison today after he and an accomplice were stopped traveling in a vehicle with 12,000 fentanyl pills on Highway 26 near Government Camp, Oregon.
Jeray Lashawn Jessie, 32, a former Portland resident living in Phoenix, Arizona, was sentenced to 60 months in federal prison and five years’ supervised release.
According to court documents, in March 2021, as part of a larger drug trafficking investigation being conducted by the FBI and Clackamas County Interagency Task Force (CCITF), law enforcement officers stopped a rental car traveling westbound on Highway 26 near Government Camp. Jessie and an accomplice were the sole occupants of the vehicle traveling from Arizona to Portland. Investigators searched the vehicle pursuant to a warrant and located 12,000 counterfeit oxycodone pills containing fentanyl concealed in a backpack in the vehicle’s trunk. A subsequent search of Jessie’s cell phone revealed messages related to drug trafficking.
On August 17, 2021, a federal grand jury in Portland returned an indictment charging Jessie with possessing with intent to distribute fentanyl. On August 28, 2022, he pleaded guilty.
This case was investigated by the FBI and CCITF. It was prosecuted by Peter D. Sax, 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.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States 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.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.
If you are in immediate danger, please call 911.
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.
12,000 seized counterfeit oxycodone containing fentanyl in clear bags.Prineville Man Sentenced to Federal Prison for Attempted Production of Child PornographyRead the Press Release
EUGENE, Ore.—A Prineville, Oregon man was sentenced to federal prison today after he requested sexually explicit photos from an undercover law enforcement officer posing as a child online and travelled from his home to Bend, Oregon in hopes of having sex with the child.
Patrick James Adams, 36, was sentenced to 210 months in federal prison and a life term of supervised release.
According to court documents, on April 25, 2021, Adams sent a Facebook friend request to a person he believed was a 14-year-old girl from Bend. A few days later, Adams initiated contact with the account via Facebook Messenger and began chatting with undercover law enforcement officers. At the outset of and at multiple times during these conversations, the law enforcement officers told Adams he was chatting with a 14-year-old child. Over the next week, Adams requested nude images and videos from the purported child more than a dozen times. Adams also sent several images and an explicit video, which were used to confirm his identity. Throughout the conversation, he repeatedly reminded the fictitious minor not to tell anyone about the exchange.
On May 7, 2021, Adams traveled from Prineville to Bend in hopes of having sex with the child. Upon his arrival, Adams notified the fictitious minor victim that he would wait at a designated meeting area, a local public library, until she finished school. Investigators arrested Adams while he was waiting for the child.
On May 20, 2021, a federal grand jury in Eugene returned a three-count indictment charging Adams with attempting to use a minor to produce a visual depiction of sexually explicit conduct, attempting to coerce and entice a minor, and committing a felony offense involving a minor as a registered sex offender.
On July 26, 2022, Adams pleaded guilty to attempting to use a minor to produce a visual depiction of sexually explicit conduct.
This case was investigated by the Bend Police Department, Central Oregon Drug Enforcement (CODE) Task Force, Homeland Security Investigations (HSI), and Crook County Parole and Probation. It was prosecuted by Assistant U.S. Attorney William M. McLaren.
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.
Oregon Woman Sentenced to Federal Probation After Stealing and Crashing Vehicle Belonging to TribeRead the Press Release
EUGENE, Ore.—A former employee of the Burns Paiute Tribe was sentenced to federal probation today after she stole and crashed a vehicle owned by the Tribe used to transport students to and from school events.
Sara Janeese Hawley, 37, a resident of Burns, Oregon, was sentenced to three years’ federal probation. Hawley was also ordered to pay restitution to the Burns Paiute Tribe.
According to court documents, Hawley used an employee access code to enter the Burns Paiute Tribe’s Tribal Housing Department building where she took the keys to and stole a Dodge Caravan minivan owned by the Tribe. Hawley, who had earlier used methamphetamine and inhalants, drove away in and later crashed and totaled the vehicle.
On April 21, 2022, a federal grand jury in Eugene returned an indictment charging Hawley with embezzlement and theft from an Indian Tribal Organization. On August 23, 2022, she pleaded guilty to the single charge.
This case was investigated by the Bureau of Indian Affairs and the FBI. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Portland Woman Sentenced to Federal Prison for Attempting to Defraud Covid Relief Programs While on Supervised ReleaseRead the Press Release
PORTLAND, Ore.—A Portland woman was sentenced to federal prison today for violating the terms of her post-prison supervised release by submitting two fraudulent applications for loans intended to help small businesses during the COVID-19 pandemic.
Tiairre Travonne Chaney, 35, was sentenced to six months in federal prison followed by a 24-month term of supervised release.
According to court documents, in September 2015, Chaney was charged by criminal information with one count of wire fraud after she submitted 35 fraudulent income tax returns and caused the IRS to pay her more than $155,000 in unwarranted tax refunds. One month later, Chaney pleaded guilty to the single charge and, in February 2016, was sentenced to one year and one day in federal prison followed by a three-year term of supervised release. Chaney was released from prison in November 2016.
By June 2018, Chaney was found to have violated her supervised release conditions by failing to pay restitution, failing to file true and correct taxes, and failing to report to her probation officer. As a result, she was placed on GPS monitoring for 30 days. In December 2019, Chaney violated her supervision terms a second time by again failing to report to her probation officer and pay restitution and also failing to obtain lawful employment. She was sentenced to three months in prison and her 33-month term of supervised release was reimposed.
In January and May 2021, Chaney violated her supervised release a third time by submitting to the U.S. Small Business Administration (SBA) two fraudulent applications for Economic Injury Disaster Loans (EIDLs)for Tncw Baked Goods, LLC, a straw entity she formed after the onset of the pandemic. In her applications, Chaney falsely denied being on supervised release and denied her felony conviction. In the second application, she falsely claimed Tncw Baked Goods, LLC, realized gross revenues of $45,663 in 2020 when in fact it had done no business whatsoever.
This case was investigated by the SBA Office of Inspector General and the Treasury Inspector General for Tax Administration (TIGTA). It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
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.
Drug Dealing Husband and Wife Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore.—A Douglas County couple known for distributing drugs was sentenced to federal prison today after they were linked to the overdose death of man to whom they had sold drugs to for more than a year.
Brian Joseph Ramos, 49, and Christine Marie Ramos, 41, residents of Yoncalla, Oregon, were sentenced to 70 and 51 months in federal prison, respectively. The Ramoses must also serve five-year terms of supervised release following the completion of their prison sentences.
According to court documents, in May 2018, detectives from the Douglas Interagency Narcotics Team (DINT) learned that an adult male stopped by the Ramoses home in Yoncalla after his release from a residential drug treatment program. Later the same day, the man tragically died of fentanyl poisoning. The next day, investigators interviewed the Ramoses who confirmed the man was at their residence the day prior, but denied giving him drugs. Christine Ramos, who was at work when the man stopped by their residence, admitted to selling the man pills for up to two years prior to his overdose. At one point after learning the man was injecting the pills she sold him, Christine Ramos stopped selling him drugs, but resumed thereafter.
Detectives searched the Ramoses’ residence and found several dozen grams of methamphetamine, 260 pills, drug paraphernalia, and digital scales. Several pills that later tested positive for fentanyl were found in the Ramoses’ vehicles. Evidence recovered from Brian Ramos’s phone revealed that he had in fact sold a pill to the man who succumbed to the fatal overdose.
On August 30, 2018, the Ramoses were charged by criminal complaint with conspiring with one another to possess with intent to distribute methamphetamine, oxycodone, and hydromorphone. On March 29, 2021, both waived indictment and pleaded guilty.
This case was investigated by DINT and the U.S. Drug Enforcement Administration. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Formed in October 1989, the Douglas Interagency Narcotics Team is a special investigative unit formed to combat illegal narcotics activity in Douglas County. DINT member agencies include Douglas County, including the Douglas County Sheriff and District Attorney’s Offices, the Oregon National Guard, Oregon State Police, and Roseburg Police Department.
California Drug Trafficker Arrested in Southern Oregon Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore.—A California man with multiple prior felony drug trafficking convictions over more than two decades was sentenced to federal prison today after he was arrested transporting nearly two kilograms of methamphetamine from California to Oregon.
Jose Baldemar Izar, 42, of Lancaster, California, was sentenced to 84 months in federal prison.
According to court documents, in October 2020, investigators from the Douglas Area Interagency Narcotics Team (DINT) received a tip that Izar was trafficking drugs from California to Oregon for distribution in the Roseburg, Oregon area. Further investigation revealed that Izar was in frequent contact with several suspected methamphetamine dealers in the Roseburg area and that he was known to drive vehicles rented under another name.
On March 17, 2021, DINT officers learned Izar would be traveling from California to Douglas County. The same day, they stopped a rented vehicle in which Izar was a passenger. Investigators searched the vehicle and located more than 1,700 grams of methamphetamine, a small quantity of heroin, and drug packaging materials.
On March 18, 2021, Izar and a co-conspirator were charged by criminal complaint with possessing with intent to distribute methamphetamine. Later, on August 19, 2021, Izar and his co-conspirator were charged by criminal information with conspiring with one another to possess with intent to distribute and distribute methamphetamine. On November 3, 2022, Izar waived indictment and pleaded guilty to the conspiracy charge.
This case was investigated by DINT and the U.S. Drug Enforcement Administration. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Formed in October 1989, the Douglas Interagency Narcotics Team is a special investigative unit formed to combat illegal narcotics activity in Douglas County. DINT member agencies include Douglas County, including the Douglas County Sheriff and District Attorney’s Offices, the Oregon National Guard, Oregon State Police, and Roseburg Police Department.
Southern Oregon Woman Indicted for Using Deceased Spouse's Identity to Obtain Federal Student AidRead the Press Release
MEDFORD, Ore.—A Southern Oregon woman is facing federal charges alleging she used her deceased spouse’s identity to fraudulently obtain more than $36,000 in federal student aid.
On October 6, 2022, a federal grand jury in Medford returned a nine-count indictment charging Cynthia Pickering, 55, of Central Point, Oregon with wire fraud, aggravated identity theft, and student loan fraud.
According to court documents, beginning in September 2017 and continuing though April 2019, Pickering is alleged to have devised a scheme to use her deceased spouse’s personally identifiable information to submit multiple applications for federal student aid and enroll her former spouse at three different colleges and universities in Oregon. These fraudulent applications caused the three colleges and universities—Eastern Oregon University, Rogue Community College, and Western Oregon University—to disperse $36,341 in federal student aid into Pickering’s personal checking account.
To conceal her scheme, Pickering attended online classes pretending to be her former spouse so that her spouse would remain eligible for the student aid. Pickering did what was necessary to pass first term courses at each institution and collect the funds.
On November 15, 2022, Pickering was arrested at her residence in Central Point. The next day, on November 16, 2022, she made her first appearance in federal court in Medford before a U.S. Magistrate Judge. Pickering was arraigned, pleaded not guilty, and released pending a jury trial scheduled to begin on January 24, 2023.
Wire fraud and student aid fraud are punishable by up 20 years and five years in federal prison, respectively, per count of conviction. Aggravated identity theft is punishable by up to two years in prison consecutive to any other carceral sentence imposed.
This case was investigated by the U.S. Department of Education, Office of Inspector General (ED-OIG). It is being prosecuted by John C. Brassell, 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 believe you are the victim of federal student aid fraud or are otherwise aware of student aid fraud being committed, please contact ED-OIG by calling 1-800-MIS-USED (1-800-647-8733) or submit a tip online at https://oighotlineportal.ed.gov/eCasePortal/.
Portland Woman Faces Federal Charges for Role in Local Fraud RingRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a local woman for her alleged role in a fraud ring that used the stolen identities of multiple victims in the Portland area to open bank accounts and credit cards, purchase vehicles, and produce false documents.
Mary Phoenix Nguyen, 40, of Oregon City, Oregon, has been charged with aggravated identity theft; social security fraud; illegally possessing device-making equipment; producing, using, or trafficking a counterfeit access device; making illegal transactions with an access device; and possessing fifteen or more unauthorized access devices.
According to court documents, in April 2022, special agents from Homeland Security Investigations (HSI) began investigating Nguyen and others in the Portland and Vancouver, Washington areas for their roles in a coordinated fraud ring targeting individuals in the Portland Metropolitan Area, Texas, Florida, and elsewhere. Nguyen and her associates used stolen identities and personal information to obtain credit cards, unlawfully access victims’ bank accounts, apply for multiple vehicle loans, rent at least six apartments and other residences, and fraudulently produce various personal and financial documents including social security cards, driver’s licenses, vehicle titles, and vehicle bills of sale.
From at least February 2021 to October 2022, Nguyen and her associates are believed to have cost victims more than $120,000 and fraudulently obtained vehicles with a total estimated value of more than $150,000.
On October 18, 2022, Nguyen was arrested at her Oregon City residence. She made her initial appearance in federal court today before a U.S. Magistrate Judge and was arraigned, pleaded not guilty, and detained pending further court proceedings. A four-day jury trial is scheduled to begin on January 3, 2023.
Illegally possessing device-marking equipment and making illegal transactions with an access device are punishable by up to 15 years in federal prison. Producing, using, or trafficking a counterfeit access device is punishable by up 10 years. Social security fraud is punishable by up to five years in prison. Aggravated identity theft is punishable by a mandatory minimum of two years in prison per count of conviction consecutive to any other carceral sentence imposed.
This case was investigated by HSI and the Portland Police Bureau with assistance from the U.S. Postal Inspection Service. Special Assistant U.S. Attorney Rachel Sowray is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Jury Convicts Former Oregon Securities Broker of Tax EvasionRead the Press Release
PORTLAND, Ore.—After a two-week trial, a federal jury in Portland found a McMinnville, Oregon man guilty today of evading $2.5 million in income taxes by hiding his income in multiple bank accounts and submitting false financial statements to the IRS.
James Millegan, 65, was convicted of one count of tax evasion.
According to court documents, Millegan owned and operated J.W. Millegan, Inc., a small, commission-based investment advisory business that served clients in the Portland and Salem, Oregon metropolitan areas. From 1996 to 2016, the investment firm was Millegan’s only significant source of income.
Over a seven-year period from July 2009 through September 2016, Millegan evaded payment of $2.5 million in income taxes. 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 often failed to pay the IRS.
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, a $1.3 million home on the Oregon coast, Rolls Royce and Bentley automobiles for everyday use, equestrian expenses like stabling and lessons, and an attempt to establish a world-class equestrian competition center and resort near Sheridan, Oregon. Millegan also bought a classic 1938 Rolls Royce touring car, spent $800,000 restoring it, and showed it in premier car shows in the U.S., Great Britain, and Europe.
To evade the payment of his income 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. A jury trial on the wire fraud charges is scheduled to begin in March 2023.
Tax evasion is punishable by up to five years in federal prison. Millegan will be sentenced on April 3, 2023, by U.S. District Court Judge Karin J. Immergut.
This tax evasion case was investigated by IRS-Criminal Investigation. Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon, are prosecuting the case. Assistant U.S. Attorney Hannah Horsley assisted the trial team.
Former Owner and General Manager of Oregon Dump Truck and Concrete Companies Pleads Guilty after Failing to Pay Employment TaxesRead the Press Release
PORTLAND, Ore.—The former owner and general manager of dump truck hauling and concrete companies based in Damascus, Oregon pleaded guilty today to willfully failing to pay employment taxes despite withholding them from employee paychecks.
Rebekah Joy Williams, 44, a resident of Damascus, pleaded guilty to one count of failing to pay over employment taxes.
According to court documents, until the third and fourth quarters of 2017, Williams owned and operated Anbasa Transport LLC and Kelaye Conrete LLC, commercial dump truck hauling and concrete companies registered in Oregon that formerly operated in both Oregon and Washington State. As the sole owner and general manager of both companies, Williams was responsible for collecting, accounting for, and paying federal income, Medicare, and Social Security taxes (also known as FICA taxes) on behalf of her employees.
Over at least a three-year period, from 2015-2017, Williams withheld these taxes from her employees’ paychecks and provided them with paystubs reflecting the withholdings. Despite doing so, IRS records showed that Williams made no payroll tax payments on behalf of either company from the third quarter of 2015 through the fourth quarter of 2017. In total, Williams failed to pay approximately $112,257 in employment taxes to the IRS.
On October 19, 2021, a federal grand jury in Portland returned a 19-count indictment charging Williams with willfully failing to collect or pay over employment taxes.
Williams faces a maximum sentence of five years in prison, a $250,000 fine or twice her gross gains resulting from the offense, and three years of supervised release. She will be sentenced on February 14, 2023, by U.S. District Court Judge Karin J. Immergut.
As part of her plea agreement, Williams has agreed to pay $725,492 in restitution to the IRS.
This case was investigated by IRS-Criminal Investigation. It was prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
U.S. Attorney's Office Reaches ADA Settlement with Portland Motel Lacking Accessible Entrances or Guest RoomsRead the Press Release
PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that it has reached a settlement with Studio 6, a Portland motel, to resolve allegations that the motel lacked accessible entrances, rooms, and other facilities.
The settlement resolves an Americans with Disabilities Act (ADA) complaint filed by an individual with a mobility impairment who alleged that Studio 6 did not have an available guest room to accommodate persons with mobility-related disabilities, including wheelchair users; had no accessible entrances or internal routes from the motel’s lobby to its guest rooms; and that the motel’s only accessible parking space was being used for other purposes and its reservation service failed to sufficiently identify and describe the property’s accessible guest rooms.
Under the ADA, inns, hotels, and motels may not exclude individuals with disabilities by failing to provide accessible accommodations and accurately describing their accessible features in enough detail to reasonably permit individuals with disabilities to assess whether a property will meet their accessibility needs.
Under the settlement agreement, Studio 6 has agreed to make certain modifications to improve accessibility at its property, including installing an exterior wheelchair ramp to the main entrance, providing three accessible guest rooms and parking spaces, altering the lobby area and first floor to increase overall accessibility, and conducting annual ADA staff training.
“Our office is committed to working with any property owners, public or private, to help obtain compliance with the ADA,” said Natalie Wight, U.S. Attorney for the District of Oregon.
Studio 6 cooperated with the U.S. Attorney’s Office during this investigation.
The United States was represented in this matter by Michael Jeter and Joshua Keller, Assistant U.S. Attorneys for the District of Oregon.
Individuals in Oregon who believe their civil rights may have been violated may submit complaints online by visiting https://civilrights.justice.gov. For more information on the ADA, or to access publications available to assist entities in complying with the ADA, visit ada.gov or call the Justice Department’s toll-free ADA information line at 1-800-514-0301 or 1-800-514-0383 (TDD).
Portland Man Sentenced to 10 Years in Federal Prison for Trafficking Large Quantities of Methamphetamine and Counterfeit Fentanyl PillsRead the Press Release
MEDFORD, Ore.—A Portland, Oregon man with a prior drug trafficking conviction was sentenced to federal prison today after he was found driving on Interstate 5 in Southern Oregon with more than ten pounds of methamphetamine, nearly three pounds of counterfeit pills containing fentanyl, and two firearms.
Jonathan James Lawson, 29, was sentenced to 120 months in federal prison and five years’ supervised release.
According to court documents, on March 6, 2021, law enforcement learned Lawson was traveling from Southern California to Josephine County, Oregon with a large quantity of drugs. The next day, law enforcement spotted Lawson driving northbound on Interstate 5 near Grants Pass, Oregon and conducted a traffic stop. Inside Lawson’s vehicle, officers located a large tool case containing approximately ten pounds of methamphetamine, 700 grams of counterfeit pills containing fentanyl, body armor, and a revolver. Officers located an additional 480 grams of fentanyl pills, ammunition, drug paraphernalia, and a second firearm elsewhere in the vehicle.
On May 4, 2021, Lawson was charged by criminal complaint with possessing with intent to distribute controlled substances and possessing a firearm in furtherance of a drug trafficking crime. Later, on March 15, 2022, Lawson was charged by criminal information with possessing with intent to distribute methamphetamine. On May 9, 2022, he pleaded guilty to the single charge.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Rogue Area Drug Enforcement (RADE) task force, Grants Pass Police Department, and Oregon State Police. It was prosecuted by Marco Boccato, Assistant U.S. Attorney for the District of Oregon.
North Carolina Man Sentenced to Federal Prison for Punching Passenger on Commercial Flight to PortlandRead the Press Release
PORTLAND, Ore.—A Charlotte, North Carolina man pleaded guilty and was sentenced to federal prison today for punching a fellow passenger in the face on a Portland-bound commercial flight from Denver.
Yuriy Poplauskiy, 40, was sentenced to 12 months in federal prison and one year of supervised release.
According to court documents, on August 14, 2019, on a commercial flight from Denver to Portland, several passengers observed Poplauskiy exhibiting strange behavior, leading some to believe he was intoxicated. With 25 minutes remaining in the flight, Poplauskiy peered through a gap in the seats at a man sitting behind him on the aisle. Poplauskiy glared at the man and mumbled “when we land, I’ll see you at the airport.” Poplauskiy then stood up, called the man a name, and punched him in the jaw. Poplauskiy ran to the lavatory, but eventually returned to his seat. Minutes later, prior to landing, Poplauskiy tried to start a fight with another male passenger and groped a male flight attendant’s genitals. Police officers met the plane at the gate in Portland and arrested Poplauskiy.
On September 18, 2019, a federal grand jury in Portland returned an indictment charging Poplauskiy with assault by striking while on board an aircraft. Before sentencing today, he pleaded guilty to the single charge.
Prior to his plea and sentencing, Poplauskiy violated his pre-trial release conditions six times, including by incurring two new criminal convictions for unlawfully possessing methamphetamine and eluding arrest in a motor vehicle.
This case was investigated by the FBI with assistance from the Port of Portland Police Department and the Portland Police Bureau. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Nevada Man Sentenced to 25 Years in Federal Prison for Sexually Abusing a ChildRead the Press Release
PORTLAND, Ore.—A Nevada man was sentenced to federal prison today for repeatedly sexually abusing a young child across multiple states for years.
Albert Wayne Welling, 60, was sentenced to 300 months in federal prison followed by a lifetime term of supervised release.
According to court documents, over a period of several years, Welling, who was employed as an interstate truck driver, repeatedly sexually abused and assaulted a child beginning when the child was in kindergarten. The child would accompany Welling on interstate trips and stayed in hotels with him in Oregon, Nevada, and other states. During these trips, Welling abused the child daily or every other day at hotels, in his truck or in other locations in multiple states. During the period of abuse, Welling acted as if he was in an adult sexual and romantic relationship with the child, giving the child gifts and allowing the child to use a debit card he funded. In exchange for these gifts, Welling would tell the child “you owe me.” The child bravely disclosed Welling’s abuse in September 2020.
On October 15, 2020, a federal grand jury in Eugene returned an indictment charging Welling with aggravated sexual abuse of a child. Later, on July 21, 2022, charges of traveling to engage in illicit sexual conduct with a minor, coercing and enticing a minor, and transporting a minor with intent to engage in criminal sexual activity were added by superseding indictment.
On July 26, 2022, after a stipulated facts bench trial before U.S. District Court Judge Michael J. McShane, Welling was found guilty on all counts on which he was tried: coercing and enticing a minor, traveling with intent to engage in illicit sexual conduct with a minor, and transporting a minor with intent to engage in criminal sexual activity.
This case was investigated by the FBI Eugene Resident Agency with assistance from the Cottage Grove Police Department. It was prosecuted by Jeffrey S. Sweet and William M. McLaren, Assistant U.S. Attorneys for the District of Oregon, in coordination with the Lane County District Attorney’s Office.
If you or someone you know is in immediate danger, please call 911.
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.
Oregon Man Faces Federal Charges After Abducting and Sexually Abusing a Canadian ChildRead the Press Release
PORTLAND, Ore.—An indictment was unsealed in federal court today charging a Gladstone, Oregon man with abducting and sexually abusing a Canadian child he met online.
On September 20, 2022, a federal grand jury in Portland returned an indictment charging Noah Madrano, 41, with traveling in interstate or foreign commerce with intent to engage in illicit sexual conduct, sexually exploiting a child, transporting a child interstate with intent to engage in criminal sexual activity, and possessing child pornography.
According to court documents and proceedings, Madrano met a child online whom he sexually exploited for more than a year. He then traveled to Canada to meet the child in person, took her to a hotel room, sexually abused her, and videorecorded his abuse. Following this incident, he returned to the U.S.
Madrano later returned to Canada, abducted the child from outside her school, and took her to another hotel room. At the hotel, Madrano made the child dye her hair and wear a hooded sweatshirt to disguise her appearance. Madrano abused the child for several days. After briefly returning to the U.S., Madrano again returned to Canada, picked up the child and drove her back to the U.S. in the trunk of his vehicle. Madrano brought the child to a hotel room in Oregon where he continued abusing her.
In the early morning hours of July 2, 2022, special agents from FBI Portland’s Child Exploitation Task Force (CETF) and officers from the Oregon City Police Department made entry into Madrano’s hotel room and found him inside with the minor. Madrano was arrested and indicted on state and federal charges. The child was taken into protective custody and returned to her parents in Canada.
Madrano made his first appearance in federal court today. He was arraigned, pleaded not guilty, and a five-day jury trial was scheduled to begin on December 13, 2022. Madrano remains in custody pending a detention hearing to be held on November 2, 2022.
If convicted, Madrano faces a maximum sentence of life in federal prison with a 15-year mandatory minimum.
This case was investigated by FBI Portland’s CETF with assistance from the Oregon City Police Department and the Royal Canadian Mounted Police. Madrano’s federal case is being prosecuted by Mira Chernick, Assistant U.S. Attorney for the District of Oregon. His state case is being prosecuted by Adrienne Chin-Perez, Deputy District Attorney for the Clackamas County District Attorney’s Office.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The FBI CETF conducts sexual exploitation investigations—many of them undercover—in coordination with other federal, state, and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child exploitation.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Former New Jersey Man Sentenced to Federal Prison for Role in Scheme to Defraud Elderly OregonianRead the Press Release
EUGENE, Ore.—A man formerly residing in Newark, New Jersey was sentenced to federal prison today for his role in a scheme to deceive and cheat $1 million from an elderly man residing in Roseburg, Oregon.
Thomas Gerard Mautone, 43, was sentenced to 30 months in federal prison and three years’ supervised release. Mautone was also ordered to pay $1 million in restitution to his victim.
According to court documents and trial testimony, Mautone was one of five individuals who together perpetrated a scheme to convince an elderly man to invest $1 million in a fraudulent high-yield international investment scam. In July 2015, one of Mautone’s co-defendants, Jared Mack, 46, of Utah, made initial contact with the victim to pitch an investment opportunity claiming to produce weekly returns of 20%. Once the victim expressed interest in the purported investment opportunity – and produced evidence he had $1 million to invest – Mack introduced him to Mautone, the supposed connection to investment “platform partner,” and codefendant Olabode Olukanni, 39, of New York.
For several months, Mautone and his co-defendants maintained frequent contact with the victim and repeatedly attempted to assure him, via a series of increasingly intimidating and pressure-laden communications, of the investment opportunity’s legitimacy, low risk, and promised returns. Mautone made these false representations despite knowing that others had their money stolen by his supposed Hong Kong investment partner, and despite being convicted only two years earlier of wire fraud for pitching a similar high-yield investment scam in South Carolina.
In December 2015, following this monthslong pressure campaign, the victim wired $1 million to a bank account in Dubai, United Arab Emirates, which was controlled by codefendant Rovshan Bahader Oglu Qasimov, 38, of Azerbaijan. Qasimov immediately withdrew the money and used it to purchase gold from a jewelry store in Dubai. The victim never saw his money again, nor did he receive the promised investment returns.
On June 21, 2017, a federal grand jury in Eugene returned a six-count indictment charging Mautone, Mack, Olukanni, and Qasimov with wire fraud.
On May 13, 2022, Mautone was convicted at trial by a jury in Eugene.
Mack, Olukanni, and Qasimov all pleaded guilty and were sentenced for their roles in the scheme.
This case was investigated by the FBI. It was prosecuted by Gavin W. Bruce and William M. McLaren, Assistant U.S. Attorneys for the District of Oregon.
Two California Drug Traffickers Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that two California men have been sentenced to federal prison for trafficking large quantities of methamphetamine and heroin from California to Oregon.
Jack Scott Lewis, 36, of Los Angeles, was sentenced today to 120 months in federal prison and five years’ supervised release. Previously, on June 6, 2022, Lewis’s accomplice, Michael Panoosi, 56, also of California, was sentenced to 210 months in federal prison and five years’ supervised release.
According to court documents, in December 2019, detectives from the Douglas Interagency Narcotics Team (DINT) began investigating Panoosi, a California-based drug dealer, for transporting large quantities of methamphetamine from California to Oregon for distribution and sale in Douglas, Jackson, Josephine, and Lane Counties. Investigators learned that Panoosi would transport several dozen pounds of methamphetamine on each trip from California and was known to use a driver to transport and deliver drugs. Panoosi had multiple prior drug convictions.
On October 11, 2020, Panoosi, Lewis, and another person were seen driving in Northern California toward Oregon. DINT detectives stopped and searched the group’s vehicle in Douglas County and found 46 pounds of methamphetamine and one pound of heroin. The detectives found more methamphetamine and three handguns in Lewis’s backpack. Two of the guns were loaded, two had obliterated serial numbers, and one had a high-capacity magazine. Another handgun and drug packaging material were found in Panoosi’s backpack.
On October 15, 2020, a federal grand jury in Eugene returned indictments charging Lewis and Panoosi with possessing with intent to distribute methamphetamine and possessing firearms in furtherance of a drug trafficking crime.
On March 8, 2022, Panoosi pleaded guilty to possessing with intent to distribute methamphetamine. Later, on June 6, 2022, Lewis pleaded guilty to the same charge.
This case was investigated by the U.S. Drug Enforcement Administration (DEA) and DINT. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Formed in October 1989, the Douglas Interagency Narcotics Team is a special investigative unit formed to combat illegal narcotics activity in Douglas County. DINT member agencies include Douglas County, including the Douglas County Sheriff and District Attorney’s Offices, the Oregon National Guard, Oregon State Police, and Roseburg Police Department.
Tigard Woman Sentenced for Failing to Register as a Distributor of Foreign-Sourced Medical DevicesRead the Press Release
PORTLAND, Ore.—A Tigard, Oregon woman pleaded guilty and was sentenced today for failing to register with the U.S. Department of Health and Human Services as a distributor of hyaluronic acid injectables she purchased online from Korea.
Yasemin Zafar, 42, was sentenced to 12 months’ probation and a $1,000 fine.
“U.S. consumers rely on the FDA to ensure that their medications and medical devices are safe and effective,” said Acting Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations (FDA-OCI) Los Angeles Field Office. “We will continue to investigate and bring to justice those who threaten the health of consumers by evading FDA requirements.”
According to court documents, sometime in 2018, Zafar began selling hyaluronic acid, a medical product used as a filler for cheek augmentation, without registering with the U.S. Department of Health and Human Services as required by federal law. Zafar knew the products she sold were regulated by the U.S. Food and Drug Administration (FDA). Specifically, in September 2018, Zafar sent messages noting that eBay kept removing her products because they required a prescription and she did not know if the products, which came from Korea, were approved by the FDA. Zafar’s actions intentionally circumvented the FDA’s regulatory authority.
On July 12, 2022, Zafar was charged by criminal information with failing to register as a medical device distributor. Today, before her sentencing, Zafar waived indictment and pleaded guilty to the single charge.
This case was investigated by the FDA-OCI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.