District of Oregon
Press releases recorded for this federal judicial district.
Georgia Man Sentenced to Federal Prison for Using Stolen Identities to Obtain Food Stamps and Attempt to Purchase a Luxury VehicleRead the Press Release
PORTLAND, Ore.—A Georgia man was sentenced to federal prison today for using stolen identities to fraudulently obtain Supplemental Nutrition Assistance Program (SNAP) benefits and attempt to purchase a luxury vehicle worth nearly $80,000.
Mackenzie Braswell Sherman, 38, was sentenced to 24 months in federal prison and one year of supervised release.
According to court documents, in April 2019, Sherman used an adult victim’s personal information to submit an application to the Oregon Department of Human Services (Oregon DHS) for SNAP benefits funded by the U.S. Department of Agriculture (USDA). Sherman’s application was approved and he received $1,152 in food stamps.
Later, in October 2019, Sherman attempted to use the personal information of a second adult victim to obtain an auto loan to purchase a Mercedes Benz valued at nearly $80,000. Car dealership employees called the police and Sherman was arrested. When officers searched his vehicle, they located documents with several victims’ personal information, fraudulent bank cards, and a card reader.
Further investigation revealed that Sherman had opened or attempted to open multiple accounts with different financial institutions using stolen personal information. One institution, Unitus Federal Credit Union, suffered a loss of more than $1,800 when Sherman deposited fake checks into one of his fraudulently obtained accounts.
On January 8, 2020, a federal grand jury in Portland returned a five-count indictment charging Sherman with aggravated identity theft, theft of government funds, social security fraud, and access device fraud.
On September 6, 2022, Sherman pleaded guilty to aggravated identity theft.
This case was investigated by Homeland Security Investigations (HSI), the USDA Office of Inspector General (USDA-OIG), and the Social Security Administration Office of Inspector General (SSA-OIG) with assistance from Oregon DHS and the Portland Police Bureau. It was prosecuted by Assistant U.S. Attorney Rachel K. Sowray.
Medford Man Sentenced to Federal Prison for Possessing Thousands of Images of Child PornographyRead the Press Release
MEDFORD, Ore.—A Medford man previously convicted for raping a child was sentenced to more than 13 years in federal prison today for possessing 4,500 photos and videos depicting the sexual abuse of children, including infants and toddlers.
Jacob Lee Holt, 46, was sentenced to 162 months in federal prison and a life term of supervised release.
According to court documents, Kik Messenger, an instant messaging mobile application, reported that one of its users had shared child sexual abuse material. Special Agents from Homeland Security Investigations (HSI) traced the Kik account to Holt and determined that some of the images he shared depicted child victims previously identified by the National Center for Missing and Exploited Children (NCMEC).
In March 2018, investigators served a federal search warrant on Holt’s Medford residence. They located and seized six digital devices, three of which were later found to contain thousands of images and videos depicting child sexual abuse. Holt’s illicit collection included graphic violent images involving infants, toddlers, sadomasochistic conduct, and bestiality.
On March 30, 2020, Holt was charged by criminal complaint with receipt and possession of child pornography. Later, on August 20, 2020, a federal grand jury in Medford indicted him on the same charges. On November 24, 2020, Holt pleaded guilty.
In 2001, when he was 24, Holt raped a 13-year-old girl at a party. He was convicted in 2007 in Klamath County Circuit Court for second degree sexual abuse and sentenced to 30 days in prison and three years’ probation.
This case was investigated by HSI and the Southern Oregon High-Tech Crimes Task Force with assistance from the Medford Police Department and Josephine County Sheriff’s Office. It was prosecuted by Judi Harper, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical abuse 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 NCMEC’s website 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.
Created in January 2007, the Southern Oregon High-Tech Crimes Task Force provides cybercrime investigations and digital evidence forensic analysis for federal, state, and local law enforcement agencies in Southern Oregon. Member agencies include the Medford Police Department, Oregon State Police, the Jackson County Sheriff and District Attorney’s Offices, and HSI.
Jury Convicts Portland Repeat Offender on Federal Drug, Gun, and Money Laundering ChargesRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found a local man with several prior felony convictions guilty today on multiple drug, gun, and money laundering charges.
Dontae Lamont Hunt, 41, a Portland resident, was found guilty of conspiracy to possess with intent to distribute and distribute fentanyl analogue, possession with intent to distribute fentanyl analogue, and two counts each of possession of a firearm as a convicted felon and money laundering.
In September 2005, Hunt was sentenced to 240 months in federal prison and eight years’ supervised release after pleading guilty to possessing with intent to distribute crack cocaine and carrying a firearm during and in relation to a drug trafficking crime. In October 2016, Hunt was released from prison early after receiving a presidential sentence commutation.
According to court documents and trial testimony, in December 2017, Hunt was shot multiple times outside an apartment building in Eugene, Oregon. A surveillance video of the shooting showed Hunt walking in a nearby parking lot while talking on a cellphone and carrying a satchel. Immediately after the shooting, Hunt’s girlfriend came to his aid, retrieved the satchel, and placed it in a vehicle used to drop Hunt off at a Eugene hospital.
After departing the hospital, the vehicle was stopped by Eugene Police Department officers for a traffic violation and searched. Officers recovered a bloodstained satchel containing two loaded firearms, both of which were determined to have Hunt’s DNA on them. Back at the shooting scene, officers found a large amount of blood and an iPhone near where Hunt was shot.
On the phone, which was linked to Hunt, investigators found evidence of drug trafficking, including text messages and photos of what appeared to be counterfeit Oxycodone pills. Further investigation revealed that Hunt distributed counterfeit Oxycodone pills containing carfentanil, a powerful fentanyl analogue, in and around Portland and that his drug trafficking was connected to a fatal drug overdose in June 2018.
In September 2018, investigators searched three properties linked to Hunt, including his residence in Northeast Portland. At his residence, Hunt refused commands to surrender and remained alone upstairs for approximately 15 minutes. After he was taken into custody, Portland Police Bureau officers found blue pills adjacent to an upstairs toilet, consistent with and indicative of him disposing of evidence. Agents also located several dozen additional blue pills concealed in a jar of baby ointment, three firearms, and a gun box labeled with the make, model, and serial number of one of the firearms found in the bloodstained satchel in Eugene. Lab reports later confirmed the pills seized contained fentanyl analogue. Additional cellphones seized from Hunt’s residence also contained evidence of his drug trafficking activities. Agents also recovered more than $40,00 in cash and seized multiple vehicles.
Hunt will be sentenced on February 10, 2023, by U.S. District Court Judge Karin J. Immergut.
While awaiting trial, Hunt was housed at Federal Correctional Institution (FCI) in Sheridan, Oregon. During this time, a federal corrections officer used his position to introduce contraband—including narcotics, designer sneakers, and a cell phone—into the prison for the benefit of Hunt and other inmates. The now-former corrections officer pleaded guilty in May 2022 for his role in the bribery and contraband smuggling scheme.
This case was investigated jointly by the Portland Police Bureau, IRS-Criminal Investigation, and FBI with assistance from U.S. Drug Enforcement Administration and the Eugene Police Department. It is being prosecuted by Peter Sax, Gary Sussman, and Suzanne Miles, Assistant U.S. Attorneys for the District of Oregon. Forfeiture litigation was handled by Assistant U.S. Attorney Julia Jarrett.
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.
U.S. Attorney's Office Announces Appointment of District Election OfficersRead the Press Release
PORTLAND, Ore.—U.S. Attorney Natalie Wight announced today the appointment of two District Election Officers to oversee the handling of complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud in the District of Oregon for the upcoming November 8, 2022, general election.
Assistant U.S. Attorneys Quinn P. Harrington and Austin Rice-Stitt will lead the office’s efforts in coordination with the Justice Department’s nationwide Election Day Program.
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The department will address these violations wherever they occur. The department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
If you or someone you know is in immediate danger, please call 911.
The FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI Portland Field Office can be reached by calling (503) 224-4181.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C. by calling (800) 253-3931 or submitting an online complaint form at https://civilrights.justice.gov.
If you have questions about the Justice Department’s Election Day Program in Oregon or need assistance directing election-related complaints to the proper authorities, District Election Officers Harrington and Rice-Stitt can be reached by calling (503) 727-1000.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Armed Robbery Crew Posing as DEA Agents Charged in Federal CourtRead the Press Release
MEDFORD, Ore.—An indictment was unsealed in federal court today charging six Texas men for conspiring with one another to travel from Texas to Southern Oregon to commit an armed robbery of marijuana while disguised as agents from the U.S. Drug Enforcement Administration.
Nevin Cuevas Morales, 21, Michael Ray Acuna, 20, Jose Manuel Lopez, 22, Alan Jaasiel Lopez, 19, Jordan Allen Gammage, 19, and Juan Carlos Conchas, 20, all of San Antonio, Texas, have been charged with conspiracy to interfere with commerce by robbery, conspiracy to possess with intent to distribute marijuana, and using, carrying, and brandishing a firearm in furtherance of a drug trafficking crime.
According to court documents, in the afternoon of March 12, 2022, local law enforcement officers were dispatched to a rural address in Josephine County, Oregon after receiving reports of a possible armed robbery in progress. Minutes later, officers arrived on scene to find a residence with a closed driveway gate and two empty vehicles running in the driveway with all their doors open. The officers observed multiple individuals running toward the back of the property. Victims found in the residence told the officers that multiple armed individuals dressed in DEA attire and wearing body armor arrived at the property and restrained several of the victims with zip ties and duct tape.
The officers quickly cleared the residence and outbuildings and proceeded to search the property and idling vehicles. Inside the residence, garage, and outbuildings, they found numerous plastic totes containing packaged marijuana. They found more packaged marijuana in the vehicles and body armor, badges, firearms, ammunition, and shell casings dumped along the path the suspects fled on near the rear of the property. The badges located resembled those carried by DEA agents. Nearly all the outbuildings on the property appeared to be broken into.
Law enforcement conducted an extensive investigation to determine the identity of the robbers. They soon learned that, in late February, the group traveled from San Antonio, Texas to Southern Oregon, staying in multiple hotels. After arriving in Oregon, the group put on their DEA attire and posed, with firearms, for a photo in a hotel room. Investigators located and seized the incriminating photos and multiple text message conversations in which the conspirators discussed their robbery plans.
Local authorities arrested Alan Lopez the same day as the robbery in Josephine County. On October 14, 2022, after being transferred to federal custody, he made his first appearance in federal court in Medford and remains detained pending further court proceedings.
On October 6, 2022, Morales and Acuna were located and arrested in San Antonio. One week later, on October 13, 2022, Conchas and Jose Lopez were also arrested in San Antonio. All four made their first appearances in federal court in the Western District of Texas and were ordered detained pending transfer to the District of Oregon.
Jordan Gammage is currently at large and believed to be in the San Antonio area.
Conspiracy to interfere with commerce by robbery and conspiracy to possess with intent to distribute marijuana are punishable by up to 10 and 40 years in prison, respectively. Using, carrying, and brandishing a firearm in furtherance of a drug trafficking crime is punishable by up to life in prison.
This case was investigated by the FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the Josephine County Sheriff’s Office and the Texas Department of Public Safety. Assistant U.S. Attorneys Marco Boccato and Amy Potter are prosecuting the case.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Jury Convicts Longtime Hoover Criminal Gang Members of Racketeering Conspiracy, Murder in Aid of RacketeeringRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found two longtime Hoover Criminal Gang members guilty today for conspiring to commit racketeering through various criminal acts spanning decades, including murder, robbery, and drug dealing.
Lorenzo Laron Jones, 49, and Ronald Clayton Rhodes, 37, both residents of Portland, were found guilty of racketeering conspiracy, murder in aid of racketeering, and using and carrying a firearm during a crime of violence.
“Prosecuting violent street gangs as racketeering enterprises is a powerful law enforcement tool we believe will reduce shootings in Portland and begin to restore the safe, vibrant community the public deserves,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the U.S. Attorney’s Office for the District of Oregon. “Today’s convictions are an important milestone, but only the beginning of our effort to hold accountable all those responsible for gun violence in Portland.”
“When groups like this flood local streets with violence, the most effective response is for team law enforcement, the FBI, the U.S. Attorney's Office, alongside state and local law enforcement, to come together and leverage our most sophisticated investigative and prosecutorial methods. The most powerful response is a joint response,” says Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “These convictions cannot undo the damage that has been done but we hope it sends a clear message that we will continue to pursue the most violent and persistent offenders and hold them accountable for their blatant disregard for human life and the safety of our communities.”
“This verdict is the culmination of a tremendous amount of work by everyone involved and highlights how, working together with multiple law enforcement agencies, we are now able to hold gang members responsible for homicides and firearm related crimes and provide some closure to the victims and their families,” said Commander Timothy Robinson of the Portland Police Bureau’s Detective Division. “I would especially like to thank current and former detectives. They worked tirelessly on these cases, while still shouldering an ever-increasing caseload. Their search for justice and dedication to our community is unwavering.”
According to court documents, the Hoovers are a criminal street gang operating in Oregon known to engage in acts of violence including murder, robbery, and drug dealing. The Hoovers originated in Los Angeles in the late 1960s and established a presence in Portland in the early 1980s. The gang has a loose hierarchical structure in which members have different amounts of power and influence based on age and gang activity. To maintain status and increase one’s position in the gang, members are expected to carry out violence on behalf of the enterprise.
The Hoovers are rivals with many Portland gangs, including multiple Blood and Crip sets, and are self-described “everybody killers.” Hoover members are expected to use violence to retaliate any perceived slight or actual act of violence against a Hoover member or ally.
Jones and Rhodes are longtime Hoover members who, together, have engaged in a 30-year pattern of violent racketeering activity. As senior members of the gang, Jones and Rhodes mentored younger members and new recruits, using them to conduct business and violence on behalf of the gang.
During trial, the government proved beyond a reasonable doubt that Jones murdered Wilbert Butler on September 17, 2017, in Portland. Jones was also proven to have engaged in multiple attempted murders, illegally possessed firearms as a convicted felon, and distributed controlled substances throughout the Portland area. Among other criminal acts, Rhodes was convicted of participating in the murder of Portland resident Kyle Polk on December 16, 2015, near a convenience store in southeast Portland.
On November 7, 2019, a federal grand jury in Portland returned a 13-count superseding indictment charging Jones, Rhodes, and two accomplices with racketeering conspiracy, murder in aid of racketeering, using and carrying a firearm during a crime of violence and causing death through the use of a firearm.
Jones and Rhodes face mandatory life sentences in federal prison. They will be sentenced by U.S. District Court Judge Michael J. McShane at a later date.
As part of the government’s ongoing investigation into the Hoover Criminal Gang’s racketeering activities, several other Hoover members and associates face pending federal charges or have been convicted and sentenced in federal court for crimes committed in support or on behalf of the gang’s criminal enterprise.
This case was investigated by the FBI, Portland Police Bureau, and Multnomah County Sheriff’s Office with assistance from the Gresham Police Department and Homeland Security Investigations (HSI). It is being 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.
U.S. Attorney's Office Announces Justice Department Grant to Support Project Safe NeighborhoodsRead the Press Release
PORTLAND, Ore.— The U.S. Attorney’s Office announced today that the Department of Justice has awarded more than $198,000 to support the Project Safe Neighborhoods Program in the District of Oregon. The grant funds—administered by the Bureau of Justice Assistance, part of the department’s Office of Justice Programs—will support community efforts to address the epidemic of gun crime and serious violence in Oregon.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Justice Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
“The Justice Department’s grants provide resources for our state and local law partners to help protect individuals and communities from violent crime,” said Associate Attorney General Vanita Gupta. “Through Project Safe Neighborhoods, the Department is taking a comprehensive approach, recognizing that we cannot simply arrest our way out of this problem—the resources in these grants will help our state and local partners reduce gun violence through increased community trust and investments in community-based initiatives like violence intervention programs.”
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced today are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Gresham Man Pleads Guilty to Stealing Covid Relief FundsRead the Press Release
PORTLAND, Ore.—A Gresham, Oregon man pleaded guilty today for stealing more than $77,000 in funds intended to help small businesses during the COVID-19 pandemic.
Justin Allen Cunningham, 40, pleaded guilty to one count of wire fraud.
According to court documents, in the late summer or early winter of 2021, Cunningham learned from friends about the opportunity to procure Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) by submitting fraudulent loan applications on behalf of fake business entities. The PPP program, originally authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in March 2020, provided emergency financial assistance to American employers suffering the economic effects of the COVID-19 pandemic and resulting shutdowns.
To facilitate his scheme, Cunningham paid his friends for their help securing him a loan on behalf of a sole proprietorship he ran as a hobby: an online sneaker retailer called “JC shoe juice.” Cunningham obtained an employer identification number from the IRS and opened an online business bank account. He provided this information to a friend who created bogus tax returns for Cunningham’s company and submitted a PPP loan application on his behalf. The loan application falsely claimed that JC shoe juice had operated since 2015, had six employees, and generated more than $460,000 in gross income in 2019. As a result of these false representations, Cunningham was issued a loan worth more than $77,000.
On January 21, 2022, a federal grand jury in Portland returned an indictment charging Cunningham with one count of wire fraud.
Cunningham faces a maximum sentence of 20 years in prison, a $250,000 fine or twice his gross gains or his victims’ gross losses, and three years’ supervised release. He will be sentenced on January 23, 2023, by U.S. District Court Judge Karin J. Immergut.
As part of his plea agreement, Cunningham has agreed to pay more than $81,000 in restitution to SBA and ReadyCap Lending, LLC, the business lending company that issued Cunningham the PPP loan.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Portland Area Men Face Federal Charges for Making and Distributing Hundreds of Thousands of Fentanyl PillsRead the Press Release
Two Portland area men are facing federal charges today for running a local drug trafficking organization responsible for making and distributing hundreds of thousands of counterfeit Oxycodone pills containing fentanyl.
James Dunn, Jr., 61, of Milwaukie, Oregon and Joshua Clay Wilfong, 50, of Vancouver, Washington have been charged by criminal complaint with conspiring with one another and others to manufacture, distribute, and possess with intent to distribute fentanyl and possessing with intent to distribute fentanyl.
According to court documents, in May 2021, law enforcements officials from Homeland Security Investigations (HSI), FBI, the Clackamas County Interagency Task Force (CCITF) and the Clark County Sheriff’s Office began investigating a drug trafficking organization allegedly run by Dunn and Wilfong that was responsible for manufacturing and distributing hundreds of thousands of counterfeit Oxycodone pills containing fentanyl in the greater Portland Metropolitan Area.
The investigation revealed that Dunn purchased fentanyl in Mexico and smuggled it into the U.S. for use as an active ingredient in counterfeit prescription pills. Dunn would give the fentanyl to Wilfong who would produce the pills in a makeshift laboratory he maintained inside a storage unit in Vancouver. On October 12, 2022, Wilfong and Dunn were arrested while they were negotiating the sale of more than 300,000 fentanyl pills.
Investigators executed a search warrant on Wilfong’s storage unit and found a pill press and laboratory equipment covered in suspected fentanyl powder. Investigators later learned Wilfong and Dunn routinely sold hundreds of thousands of fentanyl pills in single transactions and sold an average of 10,000 pills a week.
Dunn and Wilfong made their initial appearances in federal court today before U.S. Magistrate Judge Jolie A. Russo. They were ordered detained as a flight risk and danger to the community pending further court proceedings.
This case is being investigated by HSI, FBI, CCITF, and the Clark County Sheriff’s Office. Scott Kerin, Assistant U.S. Attorney for the District of Oregon, is prosecuting the case.
A criminal complaint is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
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.
Fentanyl pill lab showing manufacturing equipment Fentanyl pill lab showing manufacturing equipment 10 clear bags of seized blue fentanyl pillsJury Convicts Philomath Man of Failing to Register as a Sex OffenderRead the Press Release
PORTLAND, Ore.—On October 12, 2022, a federal jury in Portland found a Philomath, Oregon man guilty for failing to register as a sex offender.
Daniel Lynn Goering-Runyan, 37, was found guilty of one count of failing to register as a sex offender in violation of the Sex Offender Registration and Notification Act (SORNA).
“The Sex Offender Registration and Notification Act is an important law enforcement tool that helps break cycles of victimization in our communities. This case is a great example of the incredible work the U.S. Marshals Service does every day to locate and apprehend sex offenders who fail to register. Our communities are safer because of their dedication,” said Natalie Wight, U.S. Attorney for the District of Oregon.
According to court documents, in September 2014, Goering-Runyan was sentenced to 12 to 15 years in Nebraska state prison after he was convicted of sexually assaulting a five-year-old girl. At his sentencing hearing, Goering-Runyan acknowledged, on the record, that his conviction would require him to register as a sex offender. He reviewed and signed five more notices of his sex-offender registration obligations while in prison. Upon his release from prison in September 2021, Goering-Runyan signed a certificate of service acknowledging his receipt of a letter from the Nebraska State Patrol advising him of his lifetime requirement to register as a sex offender.
Upon his release from prison, Goering-Runyan properly registered as a sex offender in Nebraska. Two months later, in late November 2021, he told Nebraska officials he was relocating to Houston, Texas. A Nebraska official told him to register as a sex offender with the sheriff in Houston within three days of his arrival. Goering-Runyan never registered. Three weeks later, he traveled by bus to Corvallis, Oregon, arriving on December 25, 2021.
Over the next four months, Goering-Runyan lived in several places in and around Corvallis. He properly obtained an Oregon Identification from the Department of Motor Vehicles in early May, declaring himself an Oregon resident, but never registered as a sex offender as required under Oregon and federal law.
On May 3, 2022, a federal grand jury in Portland returned an indictment charging Goering-Runyan with one count of failing to register as a sex offender. The following day, on May 4, 2022, he was arrested by the Corvallis Police Department.
Failing to register as a sex offender is punishable by up to 10 years in federal prison. Goering-Runyan will be sentenced on November 30, 2022, by U.S. District Court Chief Judge Marco A. Hernández.
This case was investigated by the U.S. Marshals Service in Portland and Omaha, Nebraska with assistance from the Oregon State Police, the Corvallis and Philomath Police Departments, the Benton County Sheriff’s Office, and the Lancaster County (Nebraska) Sheriff’s Office. It was prosecuted by Bryan Chinwuba, Assistant U.S. Attorney for the District of Oregon.
The Sex Offender Registration and Notification Act (SORNA) is Title I of the Adam Walsh Child Protection and Safety Act of 2006. The act provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. The U.S. Marshals Service is the federal government’s lead law enforcement agency for sex offender and fugitive investigations.
Former Beaverton Mayor Pleads Guilty to Possession of Child PornographyRead the Press Release
PORTLAND, Ore.—Dennis “Denny” Doyle, the former mayor of Beaverton, Oregon, pleaded guilty today in federal court to illegally possessing child pornography.
Doyle, 73, a Beaverton resident, waived indictment and pleaded guilty to a single count of possession of child pornography.
According to court documents, between November 2014 and December 2015, Doyle knowingly and unlawfully possessed digital media containing child pornography. Several of the images Doyle possessed were of children under the age of 12 who had been identified as known sexually exploited minors by the National Center for Missing and Exploited Children (NCMEC).
On March 3, 2022, Doyle was charged by criminal information with one count of possession of child pornography.
Doyle will be sentenced on January 24, 2023, by U.S. District Court Judge Michael W. Mosman.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF). It is being 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.
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.
La Grande Man Faces Federal Charges After Sexually Abusing Two Minors He Met on SnapchatRead the Press Release
PORTLAND, Ore.—A La Grande, Oregon man faces federal charges today after he sexually abused and transported across state lines two minors he met on Snapchat.
Albert Wayne Johnson, 40, has been charged by criminal complaint with coercing and enticing a minor to engage in sexual activity and transporting a minor with the intent to engage in criminal sexual conduct.
According to court documents, on August 8, 2022, deputies from the Clackamas County Sheriff’s Office responded to a call of two minors abandoned at Barton Park in Boring, Oregon. The children told the deputies they met Johnson on Snapchat and that he had driven them from Washington State through Idaho and into Oregon and had sexually abused both repeatedly during the trip. Along the way, Johnson stopped at a motel in Othello, Washington and a campground in La Grande where he continued abusing both children. After arriving in Boring, Johnson left the children at a campsite in Barton Park and never returned.
On August 18, 2022, after receiving information about the abduction and alleged abuse that occurred in Othello, detectives from the Othello Police Department contacted the motel in Othello and obtained surveillance footage showing Johnson with the two children.
On August 30, 2022, officers and deputies from the La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, and Umatilla Tribal Police Department located Johnson at his residence in La Grande and arrested him on an outstanding parole violation warrant.
Johnson made his initial appearance in federal court today before U.S. Magistrate Judge Youlee Yim You. He was ordered detained pending further court proceedings.
Coercing and enticing a minor to engage in sexual activity and transporting a minor with the intent to engage in criminal sexual conduct are both punishable by up to life in prison with 10-year mandatory minimum sentences per count of conviction.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Othello Police Department, La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, Umatilla Tribal Police Department, and Clackamas County Sheriff’s Office. Assistant U.S. Attorney Ashley Cadotte is prosecuting the case.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 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.
Southern Oregon Man Twice Convicted for Involvement in Shootings Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
MEDFORD, Ore.—A Medford man with previous felony convictions for his involvement in two Medford area shootings was sentenced to federal prison today after he was found by police in possession of a firearm.
Hunter Talon Marlow, 26, was sentenced to 60 months in federal prison and three years’ supervised release.
According to court documents, on October 20, 2021, a witness contacted law enforcement after observing Marlow actively searching for a person who had shot at him in an attempt to retaliate. Marlow, who was previously convicted and served time in prison for shootings in 2014 and 2017, was prohibited from using or possessing a firearm. Later on October 20th, an officer from the Medford Police Department observed Marlow driving and attempted a felony traffic stop. After initially refusing to comply, Marlow surrendered to offices and was arrested. Officers found a loaded semi-automatic pistol with attached forty-round drum magazine in Marlow’s car.
On February 3, 2022, a federal grand jury in Medford returned an indictment charging Marlow with illegally possessing a firearm and ammunition as a convicted felon. On June 22, 2022, Marlow pleaded guilty to the single charge.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Medford Police Department. It was prosecuted by Marco Boccato, Assistant U.S. Attorney for the District of Oregon.
U.S. Attorney's Office Encourages Reporting of Environmental CrimesRead the Press Release
PORTLAND, Ore.—Today, the U.S. Attorney’s Office for the District of Oregon joins its partners at the Environmental Protection Agency (EPA) and other federal regulatory agencies in encouraging Oregonians to report all known or suspected environmental crimes.
The U.S. Attorney’s Office for the District of Oregon enforces federal laws to protect environmental quality, human health, and wildlife throughout the State of Oregon. The office works with its partners throughout the Department of Justice to hold those who violate environmental law accountable, prioritizing cases that will reduce environmental harms to historically underserved, overburdened, and marginalized communities.
The district’s environmental crimes and justice coordinators lead efforts to enforce both criminal and civil environmental laws. Intentionally violating environmental laws—including, but not limited to, the Clean Air Act, Clean Water Act, and hazardous waste laws—is a federal crime and can be punishable by incarceration or monetary fines.
Examples of criminal or civil environmental violations include:
- A landlord who leases a home without disclosing known information about lead-based paint
- A federal contractor who violates a contractual provision mandating the proper disposal of hazardous waste
- Illegal asbestos removals that expose and create health risks for workers and the public
- Illegal handling, transportation, and disposal of hazardous wastes or pesticides
- Oil spills or other incidents that compromise the fishing rights or practices of indigenous or disadvantaged communities
- Air emissions of toxic pollutants resulting from inadequate or nonexistent pollution control
- False statements to the EPA or other regulatory agencies that threaten the integrity of environmental protection programs
If you are in danger, please call 911.
If you or someone you know believe you are the victim of an environmental crime or believe you have witnessed an environmental crime, please contact the Environmental Protection Agency’s National Response Center by calling 1-800-424-8802 or by submitting a tip online at https://echo.epa.gov/report-environmental-violations.
In May 2022, Attorney General Merrick B. Garland announced a series of actions to secure environmental justice for all Americans. In addition to launching a new Office of Environmental Justice within the Justice Department, Attorney General Garland also announced a new comprehensive environmental justice enforcement strategy to guide the Justice Department’s work and issued an Interim Final Rule that will restore the use of supplemental environmental projects in appropriate circumstances.
Oregon Man Charged with Sexually Exploiting Minor on Discord, Additional Victims SoughtRead the Press Release
PORTLAND, Ore.—An Oregon man has been charged with federal child exploitation crimes after he persuaded a child to engage in a sexually explicit video chat with him on Discord, a popular instant messaging social platform.
Jason Kroeskop, 40, of The Dalles, Oregon, has been charged by criminal complaint with enticing and sexually exploiting a child online.
According to court documents, in August 2022, special agents from Homeland Security Investigations (HSI) in Tulsa, Oklahoma were contacted by local law enforcement to request assistance with an investigation involving the online exploitation of a child under 12. Investigators discovered that Kroeskop pretended to be an Oregon teenager to convince the child to engage in sexually explicit acts during a video chat on Discord. He also recorded the video chat without the victim’s knowledge.
Investigators tracked Kroeskop’s Discord account, “Noctis Lucis #7347,” to an internet protocol address registered to his residence in The Dalles. On September 29, 2022, HSI special agents from Portland contacted Kroeskop at his place of employment. Kroeskop agreed to talk with the agents and admitted to having engaged in sexually explicit communications with multiple children online since at least 2021 using Discord, Snapchat, and Omegle. He was later arrested without incident.
On September 30, 2022, Kroeskop made his initial appearance in federal court before U.S. Magistrate Judge Jeffrey Armistead. He was detained pending further court proceedings.
This case was investigated by HSI Portland and The Dalles Police Department with assistance from HSI Tulsa. It is being prosecuted by Mira Chernick, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about other crimes committed by Kroeskop, or the physical or online exploitation of any 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.
Full Restitution Payment Obtained from Three Former Portland-Area Strip Club Operators Convicted of FraudRead the Press Release
PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that full restitution of over $600,000 was obtained 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 out of hundreds of thousands of dollars in business taxes owed.
On Sept. 23, 2022, the Clerk of the Court for the District of Oregon received a payment of $608,217, which was full payment of the outstanding restitution balance of David, George, and Daniel Kiraz. The Kirazes previously had paid less than ten percent of their original $657,243 restitution order.
“I am proud of our Financial Litigation Program for their hard work in securing this full restitution payment, and for their commitment to helping crime victims by diligently investigating these cases,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“Today’s restitution payment is the culmination of many years of dogged effort made by our agency and by our partners at the U.S. Attorney’s Office. This is a success we can all share in, as the funds secured today will be used for the benefit of our communities,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office.
According to court documents, David Kiraz, 40, of Happy Valley, Oregon, along with his father and brother—George Kiraz, 62, and Daniel Kiraz, 37, both of Portland—operated two Portland-area strip clubs, the Cabaret Lounge on West Burnside Street in Portland and Cabaret Lounge II on Southeast Stark Street in Gresham, Oregon. From 2007 through 2010, these clubs collected more than $1.5 million in cash for cover charges and dancer stage fees.
To conceal their total business income from the IRS, the Kirazes maintained a set of books at their clubs that did not include their cash payments, while maintaining a second set of books at David Kiraz’s home that tracked their actual receipts in full. The Kirazes reported their business activity on David Kiraz’s personal income tax return and provided their tax return preparers with only a two-page business financial summary compiled from their manipulated records. Together, these actions resulted in David Kiraz intentionally underreporting more than $1.5 million in taxable income and causing a combined state and federal tax loss of more than $649,000.
On April 8, 2015, a federal grand jury in Portland returned a seven-count indictment charging the Kirazes with conspiring with one another to defraud the United States, filing false income tax returns, and aiding and assisting in the preparation of false income tax returns. On May 26, 2016, after a six-day trial, they were found guilty.
On Tuesday, October 25, 2016, David and George Kiraz were sentenced to three years in federal prison and three years of supervised release. Daniel Kiraz was sentenced to one year and one day in federal prison.
This case was originally investigated by IRS:CI. It was prosecuted by Quinn Harrington and Seth Uram, Assistant U.S. Attorneys for the District of Oregon, and Leslie Goemaat, Trial Attorney for the Justice Department’s Tax Division.
Enforcement of the Kirazes’ restitution order was handled by Assistant U.S. Attorney Jessie D. Young and the staff and investigators of the U.S. Attorney’s Office’s Financial Litigation Program.
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.
Drug Dealer Targeting Portland High School Students Faces Federal ChargesRead the Press Release
PORTLAND, Ore.—A 42-year-old Portland man is facing federal charges for targeting and selling drugs to local high school students.
Jonathon Ash Clark aka “Jonathan Ash Clark” has been charged by federal criminal complaint with possessing with intent to distribute a controlled substance, distributing a controlled substance to a person under the age of 21, and using a minor in drug operations.
According to court documents, on September 28, 2022, Portland Public Schools officials contacted the Portland Police Bureau (PPB) to request assistance locating a missing student. School officials received word that the student was last observed with Clark, a suspected supplier of drugs for students. To quickly locate the student, responding PPB officers requested the assistance of the bureau’s Narcotics and Organized Crime Unit (NOC), the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) Interdiction Task Force (HIT), and Homeland Security Investigations (HSI).
Investigators soon located the missing student with Clark in Powell Park in southeast Portland. Officers contacted Clark and learned that he had an outstanding arrest warrant in Clackamas County for violating a protective order. During his arrest, officers searched Clark’s backpack and located small amounts of cocaine and MDMA, and a digital scale covered in white powder residue. Clark later admitted to selling drugs to minors.
Clark will make his initial appearance in federal court today before U.S. Magistrate Judge Jeffrey Armistead. The government will seek pre-trial detention.
This case was investigated by HIT, PPB NOC, and HSI. It is being prosecuted by Scott Kerin, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Willamette Country Music Concerts President Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
EUGENE, Ore.—The former president and minority owner of Willamette Country Music Concerts, LLC, who planned, managed, and promoted the annual Willamette Country Music Festival in Linn County, Oregon, pleaded guilty today after she falsified bank statements and financial summaries to influence the sale of her stake in the company.
Anne Hankins, 53, a resident of Springfield, Oregon, pleaded guilty to one count each of wire fraud and money laundering.
“With today’s guilty plea, Ms. Hankins has proven herself to be a serial fraudster,” said Craig Gabriel, Criminal Chief for the U.S. Attorney’s Office. “Falsifying bank statements and laundering money to fraudulently inflate the value of a company are serious federal crimes.”
“Ms. Hankins blatantly deceived her business associate and stole money that never belonged to her. However, today the curtains have come down and Ms. Hankins is facing the music for her fraud,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office.
According to court documents, as former minority owner of Willamette Country Music Concerts (WCMC), Hankins owned 49% of the company. As president of WCMC, Hankins was responsible for preparing monthly financial statements which she provided by email to the company’s majority owner who was based in Beverley Hills, California.
Beginning in September 2016 and continuing until March 2018, Hankins provided altered banks statements and false financial summaries to the majority owner to conceal WCMC’s true financial condition. In November 2017, the majority owner approached Hankins about purchasing her stake in the company and having Hankins continue to serve as the company’s president.
On or about February 7, 2018, Hankins sent an updated financial summary to the majority owner falsely reporting that the company had approximately $1.1 million in its operating account. In reality, there was only $16,000 in the company’s account. Based on these false financial statements, on March 1, 2018, the majority owner purchased Hankins’ stake in the company for $1.5 million.
After receiving the majority owner’s payment, Hankins directed her credit union to issue a cashier’s check from her account to the Clerk of the Court for the District of Oregon to satisfy a restitution order on a previous bank fraud conviction from 2001. Hankins thereby laundered the proceeds from one crime to pay her restitution on another.
On September 12, 2022, Hankins was charged by criminal information with one count each of wire fraud and money laundering.
Wire fraud is punishable by up to 20 years in federal prison and money laundering by up to 10 years in federal prison. Both charges also may result in fines of up to $250,000, or twice the gross gains or losses resulting from the offense, and three years’ supervised release.
Hankins will be sentenced on January 5, 2023, by U.S. District Court Judge Michael J. McShane.
As part of her plea agreement, Hankins has agreed to pay restitution as identified by the government and ordered by the court.
This case was investigated by IRS:CI and the FBI, and is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Umatilla County Drug Dealer Faces Federal ChargesRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging an Eastern Oregon man with distributing large quantities of fentanyl and methamphetamine in and around Umatilla County, Oregon.
Edain Laurel Lozano, 35, of Umatilla County, Oregon has been charged with possessing with intent to distribute fentanyl and methamphetamine and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, between May and September 2022, special agents from the FBI and officers from the Blue Mountain Enforcement Narcotics Team (BENT) set up, conducted, and surveilled multiple controlled purchases of methamphetamine and fentanyl-laced pills from Lozano. Each subsequent controlled purchase involved requesting and purchasing increasing quantities of the narcotics from Lozano. By the final controlled purchase, Lozano had agreed to sell multiple pounds of methamphetamine and several thousand counterfeit pills containing fentanyl.
On September 7, 2022, Lozano was arrested and consented to a search of his vehicle. Investigators located and seized over four pounds of methamphetamine, more than 5,000 counterfeit pills containing fentanyl, drug packaging materials, a digital scale, and a stolen handgun.
On September 23, 2022, Lozano was arraigned on the indictment and pleaded not guilty. Over the government’s objection, he was released on conditions pending a three-day jury trial scheduled to begin on November 8, 2022.
If convicted, Lozano faces a maximum sentence of life in prison with a 15-year mandatory minimum, five years’ supervised release, and a $10 million fine.
This case was investigated by the FBI and BENT. It is being prosecuted by the U.S. Attorney’s Office 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.
BENT is a regional drug task force founded in 1986 by the Pendleton Police Department and Oregon State Police. In 2005, BENT was designated as a High Intensity Drug Trafficking (HIDTA) task force by the White House Office of National Drug Control Policy (ONDCP). Current BENT member agencies include the Pendleton Police Department, Oregon State Police, FBI, Morrow County Sheriff’s Office, Oregon National Guard, Boardman Police Department, Milton-Freewater Police Department, Hermiston Police Department, and Umatilla Tribal Police Department.
Oregon Man Pleads Guilty to Federal Charges After Twice Breaking Windows and Destroying Property at a Planned Parenthood ClinicRead the Press Release
EUGENE, Ore.—An Oregon man pleaded guilty today after twice breaking windows and destroying property at a Planned Parenthood clinic in Grants Pass, Oregon because the clinic provides reproductive health services.
Devin Friedrick Kruse, 27, pleaded guilty to two counts of violating the Freedom of Access to Clinic Entrances (FACE) Act.
“The Justice Department will not tolerate unlawful and violent conduct that interferes with the work of reproductive health clinics,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This conviction should send a strong message that we will use federal civil rights law to protect clinics and staff that provide reproductive health services while safeguarding the rights of their patients.”
“The First Amendment does not allow individuals to violate the civils rights of others. In this case, Mr. Kruse’s destructive and intimidating acts prevented women from accessing vital reproductive and pregnancy health services,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“Citizens have a legal right to peacefully protest, but Mr. Kruse’s actions of repeated violence toward a Planned Parenthood clinic crossed a line,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “The FBI will continue to work with our federal, state, and local law enforcement partners to ensure the safety of our communities while respecting individuals' First Amendment rights.”
According to court documents, on November 23, 2021, Kruse broke five security cameras, a window, and a sign at a Planned Parenthood clinic in Grants Pass. Three days later, on November 26, 2021, Kruse returned and threw a concrete block through the clinic’s window, tore down an intercom system, and broke several light bulbs. Kruse later admitted to damaging the facility because he was angry at Planned Parenthood for providing abortion services.
On February 24, 2022, Kruse was charged by misdemeanor criminal information with two counts of violating the FACE Act.
Under the FACE Act, first offenses involving property destruction are charged as misdemeanors punishable by up to one year in federal prison. Subsequent violations are charged as felony offenses.
Kruse will be sentenced on January 5, 2023, by U.S. District Court Judge Ann L. Aiken.
As part of his plea agreement, Kruse has agreed to pay restitution in full to Planned Parenthood as identified by the government prior to sentencing and ordered by the court.
This case was investigated by the FBI with assistance from the Grants Pass Police Department. It is being prosecuted by Gavin W. Bruce and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon, and Cameron A. Bell, Trial Attorney for the U.S. Department of Justice’s Civil Rights Division.
In 1994, Congress passed the FACE Act in response to an increase in violence toward patients and providers of reproductive health services. The FACE Act prohibits violent, threatening, damaging and obstructive conduct intended to injure, intimidate, or interfere with an individual’s right to seek, obtain, or provide reproductive health services.
If you or someone you know is in danger, please call 911.
Suspected violations of the FACE Act can be reported to the FBI by calling (503) 224-4181 or by visiting tips.fbi.gov.
North Carolina Man Sentenced to Federal Prison for Sexually Exploiting Oregon Child OnlineRead the Press Release
EUGENE, Ore.—A Greensboro, North Carolina man was sentenced to more than 16 years in federal prison today for sexually exploiting an Oregon child using Musical.ly, a social media application now known as TikTok.
Andrew Thomas Tager, 32, was sentenced to 195 months in federal prison and 15 years’ supervised release.
According to court documents, in May 2018, when Tager was 28 years old, he posed as a female employee of Musical.ly and began communicating with a then-10-year-old Oregon child. He encouraged the child to participate in a fictional “crown program” wherein the child could earn a “crown” by sending the “employee” photos and videos of herself. The child believed earning a crown would give her access to various privileges on Musical.ly not available to other users.
Tager directed the child to produce and send him pornographic photos and videos of herself using Kik Messenger, an instant messaging mobile application. Tager instructed the child on how she should pose and move, what she should wear, what props she should use, and how long the videos needed to be. Tager further threatened the child, telling her that if she quit “the program,” her photos and videos would be released to others.
When the child’s parents found the sexually explicit photos and messages on the child’s phone, they reported the conduct to law enforcement. On May 30, 2019, after a lengthy investigation, Tager was arrested in North Carolina.
On May 2, 2019, Tager was charged by criminal complaint with production of child pornography. Later, on May 31, 2022, he was charged by criminal information with production and attempted production of child pornography. On June 6, 2022, Tager waived indictment and pleaded guilty.
As part of his sentence, Tager must also register as a sex offender.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the North Bend Police Department. It was prosecuted by Ashley R. Cadotte and Amy Potter, Assistant U.S. Attorneys for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Umatilla County Man Charged with Attempted Murder After Armed Robbery at Wildhorse Resort and CasinoRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a Umatilla County, Oregon, man with attempted murder, assault with a deadly weapon and several other charges after he robbed the Wildhorse Resort and Casino on the Umatilla Indian Reservation at gunpoint and fired at least one round at a tribal police officer.
Javier Francisco Vigil, 51, has been charged with attempted murder, assault with intent to commit murder, assault with a deadly weapon, interfering with commerce by robbery, using and carrying a firearm during and in relation to a crime of violence, and illegally possessing a firearm as a convicted felon.
According to court documents, in the early afternoon on August 17, 2022, Vigil is alleged to have entered the Wildhorse Casino, walked straight to the cashier cage in the gaming area, and handed the cashier a note demanding $1 million. Vigil then drew a holstered pistol, pointed it at the cashier, and threatened to “bathe everyone in blood.” After being given nearly $70,000 in cash, Vigil exited the casino, pointed his firearm at a responding tribal police officer, and discharged at least one round. Vigil sustained injuries in an ensuing exchange of gunfire and was transported by officers to a local hospital.
Vigil appeared in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was arraigned, pleaded not guilty, and detained pending a 4-day jury trial scheduled to begin on November 1, 2022.
If convicted, Vigil faces a maximum sentence of 30 years in federal prison, 3 years’ supervised release, and a fine of $250,000.
This case is being investigated by the FBI with assistance from the Umatilla Tribal Police Department and the Hermiston Police Department. It is being prosecuted by Ashley R. Cadotte and Cassady Adams, Assistant U.S. Attorneys for the U.S Attorney’s Office in the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Former Oregon Dentist Pleads Guilty to Stealing Nearly $11.5 Million in Covid-Relief Program FundsRead the Press Release
PORTLAND, Ore.—A former Oregon dentist pleaded guilty today in federal court for fraudulently converting to his personal use nearly $11.5 million in loans intended to help small businesses during the COVID-19 pandemic.
Salwan Adjaj, 43, of West Linn, Oregon, pleaded guilty to wire fraud and aggravated identity theft.
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 the Small Business Administration (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. All of the applications were submitted online from an internet protocol (IP) address associated with Adjaj’s dental practice.
After SBA rejected most of Adjaj’s initial EIDL applications, he began focusing primarily on the PPP program as well as the Restaurant Revitalization Fund (RRF), a pandemic economic relief program aimed at supporting restaurants, bars, and other food- and drink-related businesses. The RRF program was authorized by the American Rescue Plan Act (ARPA) in March 2021. 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.
Together, Adjaj’s fraudulent applications caused the SBA to pay out more than $11.5 million in loans, grants, and associated lender fees.
On October 14, 2021, Adjaj was charged by criminal complaint with wire fraud and aggravated identity theft. On December 14, 2021, he was arrested following a pretrial release violation and, one day later, ordered detained pending further court proceedings. Adjaj remains in custody pending sentencing.
On July 13, 2022, in a separate criminal case, Adjaj pleaded guilty to illegally distributing controlled substances, including thousands of pills of prescription drugs and anabolic steroids. Adjaj further admitted to using his position as a dentist to obtain some of the drugs he illegally distributed.
In his Covid-relief fraud case, Adjaj faces a maximum sentence of 22 years in prison, a $250,000 fine (or twice his gross gains or his victims’ gross losses), and three years’ supervised release. In his drug case, Adjaj faces a maximum sentence of 10 years in prison, a $500,000 fine, and three years of supervised release. He will be sentenced in both cases on December 6, 2022, by U.S. District Court Judge Michael W. Mosman.
As part of his plea agreement, Adjaj has agreed to pay no less than $10.5 million in restitution to SBA and his victim lenders.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, the U.S. Secret Service, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.
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.
Two Nigerian Nationals Indicted for Fraud Scheme Targeting Dozens of Public and Private InstitutionsRead the Press Release
PORTLAND, Ore.—An indictment has been unsealed in federal court charging two Nigerian nationals for attempting to steal $25 million from nearly two dozen public and private entities around the United States, including at least one in Oregon.
Efeturi Ariawhorai aka Efeturi Simeon, 35, a dual citizen of Nigeria and Vanuatu who most recently resided in the United Arab Emirates, and Ikenna Nwajiaku, 41, a Nigerian national believed to be residing in or near Lagos, Nigeria, have been charged in an 11-count indictment with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
“Federal law enforcement is determined to use every tool and capability it has to pursue cyber criminals and retrieve money mistakenly sent to unknown bank accounts. We applaud the local victim in this case for quickly reporting the crime and giving authorities the best possible chance at retrieving their money. Unfortunately, many of these situations go a different and very costly way. When in doubt, we encourage anyone who thinks they are the victim of a cyber crime to report immediately to the FBI. Time is of the essence,” said Assistant United States Attorney Quinn Harrington, Chief of the Cyber and National Security Unit of the U.S. Attorney’s Office for the District of Oregon.
“The level of greed it takes to steal from schools and hospitals, especially during the height of a global pandemic, is beyond disturbing,” said Special Agent in Charge Kieran L. Ramsey. “Through quick action from many of these victims the FBI, with our Recovery Asset Team, was able to freeze funds and return a majority of the stolen money. In fact, we were able to recover the total loss of nearly $3 million for a victim in Oregon and keep that money out of the hands of criminals. If you are the victim of a cyber intrusion or fraud scheme please reach out to the FBI as soon as possible, we are here to help.”
According to the indictment, beginning in June 2019 and continuing until January 2021, Ariawhorai and Nwajiaku conspired with one another and others known and unknown to defraud various public and private entities located throughout the U.S., including numerous school districts, universities, colleges, and hospitals. As part of their scheme, Ariawhorai and Nwajiaku would contact organizations by email; impersonate employees of the targeted organization or professionals from other entities doing business with the target organization, such as construction companies; and convince the organizations to send payments to bank accounts controlled by third parties acting on Ariawhorai and Nwajiaku’s behalf.
To conceal their fraudulent activity, Ariawhorai and Nwajiaku used false names and various identity-concealing technologies including virtual private networks, compromised servers, and leased infrastructure. Ariawhorai and Nwajiaku would also register email addresses and internet domain names with slight variations on the names of real companies to trick victim organizations.
In total, in just over a year and a half, Ariawhorai and Nwajiaku attempted to defraud 20 victim organizations out of approximately $25.2 million. 15 of the victim organizations lost a combined $6.2 million as a result of the scheme.
Conspiracy to commit wire fraud and wire fraud are punishable by up to 20 years in federal prison and three years’ supervised release. Aggravated identity theft is punishable by up to two years in federal prison and one year of supervised release per count of conviction.
Ariawhorai and Nwajiaku are both fugitives. On November 25, 2021, Ariawhorai was arrested in Italy by Italian authorities and the United States made a formal request for his extradition. However, Ariawhorai fled house arrest prior to his transfer to the District of Oregon.
This case was investigated by the FBI. It is being prosecuted by AUSA Harrington.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
The FBI’s Recovery Asset Team (RAT), a component of the Internet Crime Complaint Center (IC3), was established in 2018 to streamline communication with financial institutions and assist FBI field offices with freezing funds for victims who made transfers to domestic accounts under fraudulent pretenses. In 2021, RAT assisted with 1,726 incidents nationwide that together involved losses exceeding $443 million. RAT helped freeze more than $328 million of these potential losses, a 74-percent success rate.
If you are the victim of an online or internet-enabled crime, please file a report online with IC3 at www.ic3.gov or by calling your local FBI field office as soon as possible. For RAT to be effective, individuals and organizations must report crimes immediately and include all pertinent information, including account details.
California Man Sentenced to Federal Prison for Trafficking Methamphetamine into Southern OregonRead the Press Release
MEDFORD, Ore.—On September 7, 2022, a San Diego, California man was sentenced to federal prison for trafficking large quantities of methamphetamine from Southern California to Southern Oregon for redistribution and sale.
Martin Jesus Velasco, 39, was sentenced to 48 months in federal prison and three years’ supervised release.
According to court documents, in late 2019, law enforcement learned Velasco was transporting pound quantities of methamphetamine north from California in rental cars and then selling it to local drug dealers in Southern Oregon. On at least two occasions, including the trip precipitating his arrest, Velasco traveled in a rental vehicle containing drug shipments with an associate and the associate’s girlfriend and infant child.
On February 6, 2020, Velasco was stopped in Ashland, Oregon and his vehicle was searched pursuant to a state search warrant. Authorities located a duffle bag with five one-pound packages of methamphetamine. Velasco and an accomplice were arrested. A later search of his cell phone revealed evidence of Velasco’s extensive and ongoing drug trafficking, including trading methamphetamine he acquired in Southern California for marijuana grown in Southern Oregon.
On March 3, 2020, Velasco was charged by criminal complaint with conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. Later, on November 5, 2020, a federal grand jury in Medford indicted him on the latter charge. On April 11, 2022, Velasco pleaded guilty.
This case was investigated by the U.S. Drug Enforcement Administration with assistance from the Medford Area Drug and Gang Enforcement (MADGE) team and Oregon State Police. It was prosecuted by Assistant U.S. Attorney Marco Boccato of the U.S. Attorney’s Office for the District of Oregon.
Gresham Man Faces Federal Charges After Overdose Death of Portland TeenagerRead the Press Release
A Gresham, Oregon, man is facing federal charges for selling fentanyl that resulted in the overdose death of a 17-year-old Portland teenager.
Duane Robert Hill, 38, has been charged by criminal complaint with conspiracy to possess with intent to distribute fentanyl and possessing with intent to distribute fentanyl.
According to court documents, an investigation leading to Hill began on June 16, 2022, when the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) Interdiction Task Force (HIT), including members of the Portland Police Bureau’s (PPB) Narcotics and Organized Crime Division (NOC) and special agents from Homeland Security Investigations (HSI), responded to the overdose death of a 17-year-old teenager in Portland. Investigators found one full and one-half blue “M-30” pill on the victim’s desk along with small amounts of an unknown crystal substance and a white powder residue. Lab reports later confirmed that the pills recovered were counterfeit Oxycodone pills manufactured with fentanyl. Investigators believe the teen died of a fentanyl overdose.
Further investigation uncovered evidence that Hill is the third-level supplier of the fentanyl pills found in the teen’s room and that are believed to have caused the teen’s death. It was determined that Hill had been distributing fentanyl pills in quantities ranging from 10 to 100 pills in and around Portland for nearly a year. Hill sold the counterfeit pills for between $4 and $5 apiece. One week after the teen’s death, investigators set up and conducted a controlled purchase of more than three dozen M-30 pills from Hill.
Today, on September 7, 2022, investigators executed a search warrant on Hill’s Gresham residence. When PPB’s Special Emergency Reaction Team (SERT) entered the residence, Hill attempted to flush pills down the toilet. He was arrested without incident. More than 200 M-30 pills were found in Hill’s residence and vehicle along with a 9mm handgun, a scale, assorted drug packaging materials, and $4,480 in cash. A portion of the fentanyl pills recovered from Hill’s toilet were rainbow-colored.
Hill made his initial appearance in federal court today before U.S. Magistrate Judge Youlee Yim You. He was detained pending further court proceedings.
This case was investigated by the Oregon-Idaho HIDTA Interdiction Team, PPB NOC, and HSI with assistance from the Oregon State Police Crime Laboratory. Assistant U.S. Attorney Scott M. Kerin is prosecuting the case.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Rainbow fentanyl has appeared recently in several forms in cities across the country. Versions seized recently in the Portland area resemble thick pieces of brightly-colored sidewalk chalk or small multi-colored pills sometimes referred to as “skittles.”
If you are in immediate danger or encounter fentanyl in any form, 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.
Seized fentanyl in resealable bags. Seized multi-color fentanyl in clear resealable bags. Seized rainbow-colored fentanyl in a clear resealable bag. Seized 9mm handgun.Key Supplier for Mexican Drug Trafficking Organization Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Mexican National residing in Portland was sentenced to federal prison today for supplying large quantities of methamphetamine and heroin to a Mexico-based drug trafficking organization operating in the Portland Metropolitan Area.
Eduardo Barbosa Lopez, 44, also known as Barbas, was sentenced to 188 months in federal prison and five years’ supervised release.
According to court documents, beginning in 2018, two men, Samuel Diaz and Faustino Monroy, organized, led, and ran a drug trafficking organization, based in Mexico, responsible for trafficking hundreds of pounds of methamphetamine and heroin into Oregon for distribution. Diaz and Monroy worked closely with associates who ran a Portland distribution cell, which, at its peak, was responsible for distributing as much as 77 pounds of methamphetamine and 55 pounds of heroin weekly in and around Portland.
Barbosa, whose documented history of drug trafficking includes multiple felony convictions spanning nearly two decades, served as one of Diaz and Monroy’s most prolific sources of supply for methamphetamine and heroin in the Portland Metropolitan Area. Barbosa was directly involved in smuggling drugs from Mexico into Oregon where they were processed and prepared for sale at stash houses throughout the metro area. A large network of local drug dealers would then distribute user quantities of each drug. The organization would routinely change stash locations, rotate vehicles and phones, and pay individual couriers to take time off to avoid detection by law enforcement. To conceal his individual role in the conspiracy, Barbosa used multiple cell phones and false passports, lied to law enforcement about his identity, and successfully thwarted an effort to track the movement of his vehicle.
Diaz and Monroy leveraged relationships with the operators of Tienda Mexicana González Bros., a small convenience store and market in Southeast Portland, to launder millions of dollars in drug proceeds. Between January 2015 and October 2019, the organization laundered at least $19 million dollars through the market. In July 2021, one of the operators of the market, Jesus González Vazquez, was sentenced to 132 months in federal prison for his role in the conspiracy.
In October 2019, Barbosa and many of his co-defendants were arrested as part of a coordinated, multi-agency law enforcement operation. Investigators executed federal search warrants at more than a dozen locations throughout the Portland area, seizing approximately 22 pounds of methamphetamine, quantities of heroin and cocaine, and seven firearms. Law enforcement also seized 51 firearms, including assault rifles, shotguns, and handguns, from defendants affiliated with the Diaz-Monroy organization.
On October 24, 2019, a federal grand jury in Portland returned a 61-count superseding indictment charging Barbosa and 41 others for their roles in the drug trafficking and money laundering conspiracy. Later, on November 5, 2019, a federal grand jury in Portland returned a separate, one-count indictment charging Barbosa with illegally reentering the United States after being deported for a felony offense. On April 5, 2022, he pleaded guilty to both charges.
Barbosa is the thirty-second defendant sentenced for his role in the conspiracy.
This case was investigated by Homeland Security Investigations (HSI) Portland and the Gresham Police Department with assistance from the FBI; U.S. Drug Enforcement Administration; Oregon State Police; Portland Police Bureau; and the Multnomah, Clackamas, and Clark County Sheriff’s Offices. The U.S. Attorney’s Office for the District of Oregon is prosecuting the case.
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.
Federal Law Enforcement Officials Warn of "Rainbow Fentanyl" Appearing in OregonRead the Press Release
PORTLAND, Ore.—With at least two notable seizures in the last several days in the Portland Metropolitan Area, officials from the U.S. Attorney’s Office for the District of Oregon and U.S. Drug Enforcement Administration are warning Oregonians to be on the lookout for “rainbow fentanyl,” a brightly-colored version of the highly-toxic synthetic opioid responsible for hundreds of fatal overdoses every day in the United States.
Rainbow fentanyl has appeared recently in several forms in cities across the country. A version seized recently in the Portland area resembles thick pieces of brightly-colored sidewalk chalk. Some versions seized elsewhere in pill or tablet form resemble candy.
If you or someone you know encounter any version of fentanyl, please refrain from handling it and call 911 immediately.
“We urge all Oregonians to be on the lookout for fentanyl in our community and respect the highly-toxic nature of this substance,” said Steve Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the U.S. Attorney’s Office for the District of Oregon. “Fentanyl is commonly disguised in fake prescriptions pills. If you find or come in contact with pills not dispersed by a licensed pharmacist, assume they are fake and potentially lethal. Fake pills are indistinguishable from real pills.”
“Fentanyl is the deadliest drug threat we face today,” said DEA Acting Special Agent in Charge Jacob D. Galvan from the Seattle Field Division. “It doesn’t matter what color, shape or form it comes in; just two milligrams of fentanyl – the equivalent of 10 to 15 grains of salt - is enough to kill someone. DEA’s Portland Office is seizing record amounts of fentanyl and we will continue this important work because we know American lives are at stake.”
Opioid abuse affects communities across the nation. Provisional data from the Centers for Disease Control and Prevention (CDC) indicate that there were more than 107,000 fatal drug overdoses in the U.S. in 2021, an increase of nearly 15% from the previous year. Synthetic opioids (primarily fentanyl) accounted for more than three quarters of these deaths. Drug overdose continues to be the leading cause of injury or death in the United States.
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.
Photo of Loose Rainbow Fentanyl
Photo of Bagged Rainbow Fentanyl in Hand for ScaleIdaho Power Company to Pay $1.5 Million in Civil Settlement for Powerline and Lime Hill FiresRead the Press Release
PORTLAND, Ore.— The U.S. Attorney’s Office for the District of Oregon announced today that Idaho Power Company, a Boise, Idaho-based utility that provides electricity to several states, including Oregon, has agreed to pay $1.5 million to settle allegations by the United States relating to the May 2014 Powerline and August 2015 Lime Hill fires in Baker County, Oregon.
The Powerline Fire ignited on May 31, 2014, and burned approximately 5 acres of federal land managed by the Bureau of Land Management (BLM). The Lime Hill Fire ignited on August 5, 2015, and burned approximately 2,592 acres of federal land managed by BLM and 9,337 acres of privately-owned land.
Idaho Power Company has a utility right-of-way on BLM land in Baker County on which it owns and operates its 138kV Ontario-to-Quartz transmission line. The United States contended in the civil action that the Powerline and Lime Hill fires were caused by the failure of structures on the Ontario-to-Quartz transmission line. The settlement reached is not an admission of liability by Idaho Power Company and the company denies the United States’ contentions.
This case was investigated by BLM with assistance from the U.S. Forest Service. The United States was represented in this matter by Assistant U.S. Attorneys Carla McClurg and Alexis Lien for the U.S. Attorney’s Office in the District of Oregon.
Company Operating Aluminum Processing Facility in the Dalles Charged with Clean Air Act ViolationsRead the Press Release
PORTLAND, Ore.—An Illinois-based company that operates an aluminum processing facility in The Dalles, Oregon has been charged with 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, has been charged by criminal information with negligent endangerment under the Clean Air Act.
“Enforcing emissions standards for hazardous air pollutants is critical to protecting the air we breathe and ensuring companies play by the rules,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office. “We will vigorously prosecute any company that risks the health and safety of its workers or our communities.”
“Our nation’s environmental laws are designed to protect our communities from hazardous pollutants,” said Special Agent in Charge Scot Adair of the Environmental Protection Agency’s (EPA) criminal investigation program in Oregon. “The criminal charge filed in this case demonstrates that companies that negligently violate those laws will be held responsible for their crimes.”
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. 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.
Hydro has fully cooperated with the government’s investigation of this matter and agreed to plead guilty.
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.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Eastern Oregon Man Sentenced to Federal Prison for Drug and Firearm OffensesRead the Press Release
MEDFORD, Ore.—A Baker City, Oregon man with several prior felony convictions was sentenced to federal prison today after he was arrested with multiple firearms and a large quantity of methamphetamine.
Jacob Grammon, 26, was sentenced to 95 months in federal prison and three years’ supervised release.
According to court documents, in April 2021, law enforcement in Baker County, Oregon obtained a search warrant for Grammon’s person and vehicle based on reports received of him possessing a large quantity of drugs and several firearms. On April 26, 2021, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with assistance from Oregon State Police and other law enforcement officers in Baker and Malheur Counties, conducted surveillance on and ultimately arrested Grammon. Officers located as 9mm pistol on Grammon’s person and two pounds of methamphetamine and several ounces of heroin in his vehicle. Grammon admitted to possessing additional firearms including an AR-15 rifle with a high-capacity drum magazine.
On May 20, 2021, a federal grand jury in Medford returned a four-count indictment charging Grammon with possessing with intent to distribute methamphetamine and heroin, illegally possessing a firearm as a convicted felon, and possessing a firearm in furtherance of a drug trafficking crime.
On May 16, 2022, Grammon pleaded guilty to illegally possessing a firearm as a convicted felon.
This case was prosecuted by the ATF with assistance from OSP and the Baker and Malheur County Sheriff’s Offices. It was prosecuted by Assistant U.S. Attorney Marco A. Boccato of the U.S. Attorney’s Office for the District of Oregon.
Portland Man Sentenced to Federal Prison for Role in Interstate Marijuana Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for his role in a conspiracy to traffic marijuana illegally grown in Oregon to several U.S. states for resale.
Kyle Lee Cerkoney, 40, was sentenced to 57 months in federal prison and five years’ supervised release.
Cerkoney was also ordered to forfeit criminally-derived proceeds and property identified by the government, including nine luxury watches, a diamond necklace, a Porsche 911 sports car, a semi-automatic rifle, and more than $570,000.
According to court documents, Cerkoney and two friends—Jeremiah David Cruz, 40, of Vancouver, Washington, and Robert Benjamin Kawika Dawe, 40, of Beaverton, Oregon—conspired with one another to transport black-market marijuana grown in Oregon to several U.S. states including New York, Ohio, Oklahoma, Georgia, Texas, Arkansas, Illinois, and Minnesota. The three men went to great lengths to conceal their illegal shipments. They hand-built large crates to package marijuana and marijuana extract for shipping, created false bills of lading, and flew to destination cities to personally receive their shipments. When commercial freight companies, under suspicion, began rejecting or limiting their freight shipments, the group started using a smaller private freight company.
Over the course of the conspiracy, Cerkoney, Cruz, and Dawe shipped or attempted to ship more than 1,000 kilograms of marijuana with an estimated street value in the destination states of more than $2.5 million. They used several bank accounts opened under various false business names to launder their proceeds and structured cash deposits to avoid detection by financial regulators.
On July 8, 2021, Cerkoney, Cruz, and Dawe were charged by criminal information with conspiracy to distribute and possess with intent to distribute marijuana. Cerkoney and Cruz were also charged with conspiracy to commit money laundering.
On November 4, 2021, Cerkoney waived indictment and pleaded guilty to both charges.
The next day, on November 5, 2021, Cruz also pleaded guilty to both charges and, on February 3, 2022, was sentenced to 21 months in prison and five years’ supervised release.
On November 1, 2021, Dawe pleaded guilty to conspiracy to distribute and possess with intent to distribute marijuana and, on April 11, 2022, was sentenced to 33 months in prison and three years’ supervised release.
After pleading guilty, Cerkoney aroused additional government suspicion by attempting to sell the Porsche 911 sports car he had recently agreed to forfeit. Cerkoney shipped the vehicle from Oregon to California for repair and resale following an accident.
This case was investigated by Homeland Security Investigations with assistance from IRS-Criminal Investigation and the Portland Police Bureau. It was prosecuted by Assistant U.S. Attorney Julia E. Jarrett for the U.S. Attorney’s Office in the District of Oregon.
Umatilla County Man Faces Federal Charges for Armed Robbery at Wildhorse Resort and CasinoRead the Press Release
PORTLAND, Ore.—A Umatilla County, Oregon, man is facing federal charges for robbing the Wildhorse Resort and Casino on the Umatilla Indian Reservation at gunpoint and brandishing a firearm.
Javier Francisco Vigil, 51, has been charged by criminal complaint with committing a Hobbs Act robbery and using and carrying a firearm during and in relation to a crime of violence.
According to court documents, in the early afternoon on August 17, 2022, Vigil is alleged to have entered the Wildhorse Casino, walked straight to the cashier cage in the gaming area, and handed the cashier a note demanding $1 million. Vigil then drew a holstered pistol, pointed it at the cashier, and threatened to “bathe everyone in blood.” After being given nearly $70,000 in cash, Vigil exited the casino, pointed his firearm at a responding tribal police officer, and discharged at least one round. Vigil sustained injuries in an ensuing exchange of gunfire and was transported by officers to a local hospital.
Vigil made his initial appearance in federal court today in Portland before U.S. Magistrate Judge Jolie A. Russo. He was ordered detained pending further court proceedings.
This case is being investigated by the FBI with assistance from the Umatilla Tribal Police Department and the Hermiston Police Department. It is being prosecuted by Cassady Adams, Assistant U.S. Attorney for the U.S Attorney’s Office in 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.
Alleged Russian Cryptocurrency Money Launderer Extradited from the Netherlands to the United StatesRead the Press Release
PORTLAND, Ore.—An alleged cryptocurrency money launderer was extradited this week from the Netherlands to the United States to face charges in the District of Oregon.
In August 2021, a federal grand jury in Portland charged Denis Mihaqlovic Dubnikov, 29, a Russian citizen, for his role in an international cryptocurrency money laundering conspiracy.
According to the indictment, between at least August 2018 and August 2021, Dubnikov and his co-conspirators are alleged to have knowingly and intentionally laundered the proceeds of ransomware attacks on individuals and organizations throughout the United States and abroad. Specifically, Dubnikov and his accomplices laundered ransom payments extracted from victims of Ryuk ransomware attacks.
After receiving ransom payments, Ryuk actors, 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.
In July 2019, Dubnikov laundered more than $400,000 in Ryuk ransom proceeds. Those involved in the conspiracy laundered at least $70 million in ransom proceeds.
On November 2, 2021, Dubnikov was arrested in Amsterdam pursuant to a provisional arrest warrant.
Dubnikov made his initial appearance in federal court in the District of Oregon today before U.S. Magistrate Judge Jolie A. Russo. He was arraigned and pleaded not guilty. A five-day jury trial is scheduled to begin on October 4, 2022.
If convicted, Dubnikov faces a maximum sentence of 20 years in federal prison, three years’ supervised release, and a fine of $500,000.
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.
This case was investigated by the FBI. It 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.
Justice Department components who worked on this seizure coordinated their efforts through the department’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks.
The Task Force prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The Task Force also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
An indictment is only an accusation of a crime. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Oregon Man Sentenced to Federal Prison for Kidnapping Ex-GirlfriendRead the Press Release
PORTLAND, Ore.—A Oregon man was sentenced to federal prison today for kidnapping his ex-girlfriend and transporting her from her home in Ilwalco, Washington to Rainier, Oregon.
James Donald Cooley, 61, a resident of Rainier, was sentenced to 120 months in federal prison and three years’ supervised release.
According to court documents, on May 18, 2020, Cooley traveled from his home in Rainier to his ex-girlfriend’s home in Ilwalco without notice or invitation. After parking his vehicle on the side of Highway 101 near his ex-girlfriend’s home, Cooley approached the woman and a confrontation ensued. Cooley grabbed the woman’s arms, tied her hands with zip ties, and began pulling her toward the highway. Cooley drug the woman several hundred feet to his vehicle, put a knife to her throat, shoved her into the backseat, and began driving back to Rainier, threatening to kill her several times en route.
When Cooley arrived at his residence, his sister, who also lives in Rainier, spotted Cooley’s ex-girlfriend at his residence. The ex-girlfriend told Cooley’s sister that she feared Cooley was going to kill her. Cooley’s sister immediately contacted the Columbia County Sheriff’s Office to report the incident. Sheriff deputies responded and arrested Cooley.
On June 17, 2020, Cooley was charged by criminal complaint with kidnapping. On February 11, 2022, Cooley waived indictment and pleaded guilty to the single charge.
This case was investigated by the FBI with assistance from Columbia County Sheriff’s Office. It was prosecuted by Greg Nyhus, Assistant U.S. Attorney for the U.S. Attorney’s Office in the District of Oregon.
Domestic violence involving a current or former partner is a serious crime that includes both physical and emotional abuse. Sometimes these crimes are hidden from public view with survivors suffering in silence, afraid to seek help or not knowing where to turn. The traumatic effects of domestic violence also extend beyond the abused person, impacting family members and communities.
If you or someone you know are in immediate danger, please call 911.
If you need assistance or know someone who needs help, please contact the National Domestic Violence Hotline by calling 1-800-799-SAFE (7233) or texting “START” to 88788. Many communities throughout the country have also developed support networks to assist survivors in the process of recovery.
Justice Department Announces Conclusion of Landmark Agreement Addressing Segregated Work Settings for People with DisabilitiesRead the Press Release
In an order issued on Aug. 12, the U.S. District Court for the District of Oregon found that the State of Oregon has fulfilled the terms of a settlement agreement with the Justice Department and people with disabilities in a landmark case challenging the state’s provision of employment services for people with disabilities in segregated settings. The case, Lane v. Brown/United States v. Oregon, was dismissed as a result.
The settlement agreement, in effect since 2015, resolved the first lawsuit in the nation to challenge a state’s reliance on segregated employment settings for individuals with disabilities, including sheltered workshops, as a violation of the integration mandate of Title II of the Americans with Disabilities Act (ADA). Sheltered workshops are segregated facilities that exclusively or primarily serve individuals with disabilities, in which people with disabilities have little or no contact with non-disabled persons besides paid staff. People with intellectual and developmental disabilities (I/DD) in sheltered workshops often earn wages well below minimum wage, sometimes pennies per hour. By contrast, supported employment services assist people with I/DD to prepare for, obtain and succeed in integrated workplaces at competitive wages.
“This ruling demonstrates once again that people with significant disabilities are fully capable of working in the community alongside their nondisabled peers with appropriate services and supports,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are pleased that Oregon has successfully implemented the reforms called for by our settlement agreement and remain committed to ensuring that people with disabilities across the country have every opportunity to access the job market. Simply put, people with disabilities must have the right to receive employment services in the community, pursue jobs consistent with their talents and preferences, earn fair wages, achieve social and economic independence and contribute to our nation’s economy.”
The lawsuit was filed as a class action in January 2012 by individuals with I/DD who were receiving services in Oregon sheltered workshops, but instead preferred to work in jobs in the community for a competitive wage. In March 2013, the Justice Department intervened in the lawsuit. The department claimed that Oregon was unnecessarily segregating adults with I/DD in sheltered workshops and placing Oregon youth with I/DD at serious risk of segregation in sheltered workshops in violation of Title II of the ADA.
In Olmstead v. L.C., the Supreme Court ruled that the ADA prohibits unnecessary segregation of people with disabilities, who have a right to live and receive services in the most integrated setting appropriate. The Lane case was the first lawsuit to address how the ADA’s integration mandate applied to state employment services.
The agreement required Oregon to provide supported employment services and related employment services so that 1,115 sheltered workshop workers would newly receive jobs in the community at competitive wages over the agreement’s term. The agreement also required at least 7,000 people — including more than 4,900 youth exiting school — to receive supported employment services aimed at enabling them to secure and maintain integrated, competitive employment opportunities. At least half of the youth served received individualized employment plans from Oregon’s vocational rehabilitation agency, identifying the services and supports necessary to achieve competitive employment. The Independent Reviewer who monitored Oregon’s compliance with the agreement found that, according to state data, Oregon met or exceeded these requirements.
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs. Please visit www.ada.gov/olmstead to learn more about the division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the other laws enforced by the Civil Rights Division.
Jury Convicts Florida Man for Using a Minor to Produce Sexually Explicit MaterialRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found a New Smyrna Beach, Florida man guilty today for video recording himself sexually abusing a child he met on social media and sharing the abuse video with others online.
Michael Wayne Lyon, 39, was found guilty of using a minor to produce a visual depiction of sexually explicit conduct.
According to court documents and trial testimony, in October 2017, Lyon began exchanging messages online with a 13-year-old child. He first claimed to be 15 years old and later “confessed” to be being 17. Lyon’s conversations with the child quickly turned sexually explicit and he convinced the child to send him naked photos of herself. After Lyon admitted to being in his 30s, the child tried to end their communication. Lyon persisted, continued contacting the child, and, in March 2018, travelled to the Pacific Northwest to meet the child.
Fearing for the safety of her family, the child agreed to meet Lyon. After traveling from Seattle to Oregon in a rented vehicle, Lyon took the child to a hotel near her residence where he sexually assaulted her. Lyon video recorded himself abusing the child and later shared the video online with several of the child’s friends and acquaintances. The child’s brother and mother captured a recording of the video before it disappeared and notified law enforcement. Local authorities interviewed the child’s parents and several other witnesses, but did not pursue the case further.
From 2018 through 2020, Lyon continued contacting the child and created multiple social media accounts to avoid the child’s repeated attempts to block him. Lyon’s messages became increasingly threatening and, later, openly violent. In October 2020, he threatened to kill the child and her family. Soon after, the child’s mother reported Lyon’s abuse and threats to the FBI.
On December 11, 2020, Lyon was charged by federal criminal complaint and an arrest was issued. Nine days later, he was arrested by local law enforcement in Hollidaysburg, Pennsylvania and turned over to the FBI. Lyon has remained in federal custody since his arrest.
On February 2, 2021, a federal grand jury in Portland returned a two-count indictment charging Lyon with cyberstalking and using a minor to produce a visual depiction of sexually explicit conduct.
Lyon faces a maximum sentence of 35 years in federal prison with a 15-year mandatory minimum sentence, a $500,000 fine and a life term of supervised release.
“In trials involving the sexual abuse of children, jurors are tasked with taking in and reviewing a horrendous set of facts. In this case, the young witness took the stand to tell the jury the details of what happened in her own words. The law enforcement community recognizes the courage it takes to go to police and to face an abuser at trial. Because of this strong young witness, the defendant was brought to justice, making our communities and children safer,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“Michael Lyon displayed horrific and disturbing behavior victimizing an innocent child over and over again,” said William Brooks, Assistant Special Agent in Charge of the FBI Portland Field Office. “The FBI and our law enforcement partners work every day to shut down child predators and deliver justice for victims. While this verdict effectively ends Mr. Lyon’s ability to sexually exploit children, the damage caused by this crime can linger for a lifetime for the victim. The FBI remains constant in our commitment to provide resources for victims to assist in the healing process.”
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Hermiston and Umatilla Police Departments.
It was prosecuted by Pamela Paaso and Suzanne Miles, Assistant U.S. Attorneys for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Zadeh Kicks Owner and Chief Financial Officer Charged in $85 Million Wire Fraud and Bank Fraud ConspiracyRead the Press Release
EUGENE, Ore.—The former owner and chief financial officer of Zadeh Kicks LLC, a now-defunct Oregon corporation that sold limited edition and collectible sneakers online, made their first appearances in federal court today after being charged with perpetrating a fraud scheme that allegedly cost customers more than $70 million in unfulfilled orders and defrauded financial institutions out of over $15 million.
Michael Malekzadeh, 39, a Eugene resident, has been charged by criminal information with wire fraud, conspiracy to commit bank fraud, and money laundering. Bethany Mockerman, 39, also of Eugene, has been charged with conspiring with Malekzadeh to commit bank fraud.
According to court documents, Malekzadeh started his business in 2013 by purchasing limited edition and collectible sneakers to resell online. Beginning as early as January 2020, Zadeh Kicks began offering preorders of sneakers before their public release dates, allowing Malekzadeh to collect money upfront before fulfilling orders. Malekzadeh advertised, sold, and collected payments from customers for preorders knowing he could not satisfy all orders placed.
For example, in 2021, Malekzadeh began selling preorders of Nike Air Jordan 11 Cool Grey sneakers. Zadeh Kicks received and accepted preorder sales of over 600,000 pairs of sneakers, resulting in payments to Malekzadeh of more than $70 million. Malekzadeh had no way of acquiring the quantity of sneakers needed to fill the preorders received. In fact, he was only able to acquire just over 6,000 pairs. Customers were either left with unfulfilled orders or they received a combination refund of cash and Zadeh Kicks gift cards.
By April 2022, Malekzadeh owed customers more than $70 million in undelivered sneakers and unknown additional millions held by customers in worthless company gift cards.
In her role as Zadeh Kicks chief financial officer, Mockerman conspired with Malekzadeh to provide false and altered financial information to numerous financial institutions—including providing altered bank statements—on more than 15 bank loan applications. Together, Mockerman and Malekzadeh received more than $15 million in loans from these applications.
As part of the government’s ongoing criminal investigation, federal agents have seized millions of dollars in cash and luxury goods that Malekzadeh acquired with the proceeds of his fraud. The seized items include nearly 100 watches, some valued at over $400,000, jewelry, and hundreds of luxury handbags. The government also seized nearly $6.4 million in cash which was the result Malekzadeh’s sale of watches and luxury cars manufactured by Bentley, Ferrari, Lamborghini, Porsche, and others.
Malekzadeh and Mockerman are cooperating with the government’s investigation, including the seizure of assets described above. Both made their first appearances in federal court today before U.S. Magistrate Judge Mustafa T. Kasubhai and were released conditions pending further court proceedings.
If you or someone you know were a Zadeh Kicks customer with unfulfilled orders or otherwise believe you were defrauded by Malekzadeh or Mockerman, the FBI wants to hear from you. Please visit FBI.gov/ZadehKicks to complete a brief online questionnaire. Your voluntary responses will assist with the FBI’s ongoing criminal investigation and help to identify you as a potential crime victim. Based on your responses, you may be contacted by the FBI for more information.
This case is being investigated by IRS–Criminal Investigations, FBI, and Homeland Security Investigations (HSI) with assistance from the Oregon Intellectual Property Task Force. Assistant U.S. Attorneys Gavin W. Bruce and Quinn P. Harrington are prosecuting the case. The related asset seizures and forfeitures are being handled by Assistant U.S. Attorney Katie de Villiers and the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Division.
A criminal information is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Oregon Mother and Daughter Face Federal Charges for Role in International Drug Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—A Oregon mother and daughter, both members of a large international drug distribution organization based in India, are facing federal charges for conspiring with each other and others to traffic hundreds of thousands of counterfeit prescription pills into the U.S. for distribution in Oregon and elsewhere.
Jennifer McConnon, 48, and Sydney Sleight, 22, residents of Keizer, Oregon, have been charged with conspiring to distribute and possess with intent to distribute controlled substances and possessing with intent to distribute controlled substances.
John Doe aka “Bunny Jinn,” the unnamed leader of McConnon and Sleight’s drug distribution organization, has also been indicted for their role in the conspiracy.
According to the indictment, Bunny Jinn would, from India, export packages of real and counterfeit pills containing various controlled substances including Tapentadol, Lorazepam, Alprazolam, Clonazepam, Diazepam, Carisoprodol, Ketamine, and Tramadol into the U.S. McConnon and Sleight, operating in Oregon, received the packages, prepared the drugs for distribution, and distributed them to customers throughout the U.S.
Bunny Jinn, McConnon and Sleight used various encrypted messaging applications and services to communicate with one another and further their conspiracy. McConnon and Sleight, who maintained premises in Keizer to store and distribute the drugs, received more than 275 drug parcels via a post office box, and received payment for their participation in the scheme via several online payment applications.
McConnon made her initial appearance in federal court today before U.S. Magistrate Judge Jeffrey Armistead. She was arraigned, pleaded not guilty, and released pending a 5-day jury trial scheduled to begin on September 13, 2022. The date of Sleight’s first appearance in federal court is to be determined.
If convicted, McConnon and Sleight face maximum sentences of 20 years in federal prison.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
This case was investigated by the U.S. Drug Enforcement Administration and Salem Police Department. Assistant U.S. Attorney Scott M. Kerin is prosecuting the case.
Roseburg Daycare Owner Pleads Guilty to Stealing Government FundsRead the Press Release
EUGENE, Ore.—The owner of a Roseburg, Oregon in-home daycare facility pleaded guilty today in federal court for stealing federal childcare funds.
Katie Jo Thompson, 31, pleaded guilty to one count of theft of government funds.
According to court documents, Thompson cared for her disabled child while also operating a licensed childcare business out of her Roseburg residence. Thompson applied for various federal benefit programs administered by the Special Security Administration (SSA) on her child’s behalf. In these applications, Thompson misrepresented her household income, prompting an SSA investigation.
The investigation revealed that Thompson had applied for and received federal Employment Related Day Care (ERDC) program funds administered by the Oregon Department of Human Services (Oregon DHS) to support her business. The ERDC program requires that childcare program operators maintain attendance logs for one year. When SSA investigators obtained these logs from Thompson, they showed that Thompson had misrepresented the number of children in her daycare facility resulting in ERDC payments for childcare not provided. Thompson further claimed children were present in the facility who had never attended.
Thompson also used individuals hired to care for daughter who were funded by Medicaid’s Personal Support Worker program to work in her daycare facility thereby allowing Thompson to forgo paying daycare employees herself.
Between January 2018 and December 2019, Thompson fraudulently received and converted to personal use more than $329,000 in federal assistance funds provided by SSA and the U.S. Department of Agriculture.
On April 20, 2022, Thompson was charged by criminal information with one count of theft of government funds.
Thompson faces a maximum sentence of 10 years in prison, a $250,000 fine and three years’ supervised release. She will be sentenced on November 14, 2022, by U.S. District Court Judge Ann L. Aiken.
As part of her plea agreement, Thompson will pay restitution to the agencies she defrauded.
This case was investigated by the SSA Office of Inspector General (SSA-OIG) with assistance from Oregon DHS. Assistant U.S. Attorney Rachel Sowray is prosecuting the case.
Federal Law Enforcement Partners Encourage Community Reporting of All Hate CrimesRead the Press Release
PORTLAND, Ore.—Earlier this month, the Oregon Criminal Justice Commission released its third annual report reviewing the state’s recent bias crime and non-criminal bias incident reporting data. Among many concerning findings, the report noted that calls to the Oregon Department of Justice Bias Response Hotline increased by 53% from 2020 to 2021.
The U.S. Attorney’s Office for the District of Oregon and the FBI Portland Field Office commend individuals who have courageously come forward to report hate-related incidents and activity. With these incidents continuing to increase in Oregon and throughout the United States, federal law enforcement leaders in Oregon encourage anyone with information about hate crimes to call Oregon’s Bias Response Hotline, their local law enforcement agency or the FBI directly.
The Justice Department is committed to supporting victims of these crimes.
“Violent acts motivated by hate have no place in our shared community. The FBI is working with our law enforcement and community partners to hold those accountable who are so callously targeting innocent people,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “Even as we are seeing some increased reporting of hate crimes, we know the vast majority of these incidents are still going underreported and we need your help. If you're the victim of a hate crime or know someone being victimized, please contact law enforcement and the FBI.”
The FBI defines a hate crime as a “criminal offense against a person or property motivated in whole or in part by an offender’s bias against a race, religion, disability, sexual orientation, ethnicity, gender, or gender identity.”
Combatting hate crimes is a top priority of the U.S. Department of Justice and FBI. These crimes have a devastating impact on families and communities.
If you are concerned about your safety, please call 911 immediately.
If you or someone you know was the victim of or witnessed a hate-related crime or incident, please contact Oregon’s Bias Crime Hotline by calling 1-844-924-BIAS. Trauma-informed operators are available from 9am to 5pm Pacific time, Monday through Friday.
These crimes and incidents can also be reported to the FBI directly by calling 1-800-CALL-FBI or submitting a tip online at tips.fbi.gov.
Vancouver Man Sentenced to 16 Years in Prison for Child Sex TraffickingRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for transporting two teen girls across state lines, drugging and sexually abusing them, and selling them to other men for sex.
Johnl Jackson, 34, was sentenced to 200 months in federal prison and 5 years’ supervised release.
According to court documents and trial testimony, in 2016, Jackson met and befriended Keonte Desmond Scott, 23, also of Vancouver, after Scott’s release from prison. Jackson sold Scott cocaine and eventually began coaching him in commercial sex trafficking. In late 2016, Scott began a relationship with Jackson’s future co-defendant and fellow Vancouver resident Diana Petrovic, 23. Jackson helped Scott traffic Petrovic and they soon began using Petrovic to recruit and traffic other minor females.
By the summer of 2018, Scott returned to prison and Petrovic began working directly with Jackson. In late August 2018, Petrovic targeted a 15-year-old female on social media that Petrovic and Scott had previously trafficked, and convinced the girl to meet under false pretenses. Jackson, armed with a firearm, Petrovic, and another adult woman drove to Eugene to pick her up. When the group arrived, the girl was accompanied by a 14-year-old friend. On the drive back to Vancouver, Jackson supplied both girls with drugs and was overheard talking about how they are going to make them some money.
In Vancouver, Jackson supplied them with even more drugs and then Jackson and Petrovic engaged in sex acts with the heavily intoxicated girls. At some point they went to a house for Jackson to get additional cocaine. Inside the house, they sent one of the girls back to a room to engage in sexual acts with the drug supplier in exchange for drugs and money. Jackson and Petrovic later took the girls to a gathering at an auto shop in Battle Ground, Washington where they forced one of the girls to have sex with an adult man and took the money that the man paid her. The other girl, convinced Jackson and Petrovic were going to kill her, was able to escape with a man from the shop who helped her get back home.
Jackson and Petrovic took the remaining girl to a residence in Northeast Portland where she was forced to have sex with one man for $300 and forcibly raped by another. The girl ultimately was able to escape the hotel they later took her to and was rescued several hours later by her grandfather.
On May 8, 2019, a federal grand jury in Portland returned a six-count indictment charging Scott, Petrovic, and two accomplices with sex trafficking of children and transporting minors with intent to engage in sexual activity.
On October 9, 2019, in a separate criminal case, a federal grand jury in Portland returned a three-count indictment charging Jackson and Petrovic with sex trafficking of a child by force, fraud, and coercion; sex trafficking of a child; and transportation of a minor with intent to engage in sexual activity. Later, on November 17, 2021, Jackson and Petrovic were charged by a second superseding indictment with conspiring to engage in sex trafficking of children; sex trafficking of a child; sex trafficking of a child by force, fraud, and coercion; and transporting a minor with intent to engage in sexual activity.
On March 11, 2022, Jackson was convicted at trial by a federal jury in Portland.
On July 22, 2020, Petrovic was charged by criminal information with distributing a controlled to a person under 21 and pleaded guilty, resolving both of her criminal cases. She will be sentenced on April 23, 2023.
On December 9, 2021, Scott pleaded guilty to two counts of sex trafficking. On May 31, 2022, Scott was sentenced to 97 months in federal prison and five years’ supervised release.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Tigard Police Department and Portland Police Bureau. It was prosecuted by Assistant U.S. Attorneys Ashley Cadotte and Pamela Paaso with assistance from Assistant U.S. Attorneys Kelly Zusman, Suzanne Miles, and Thomas Ratcliffe, and Multnomah County Deputy District Attorney Glen Ujifusa.
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.
If you or someone you know is in danger, please call 911. If you are a human trafficking victim or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center at 1-888-373-7888 or by texting 233733. Calls and texts are answered 24 hours a day, seven days a week.
Human trafficking is a serious federal crime where individuals are compelled by force, fraud, or coercion to engage in commercial sex, labor, or domestic servitude against their will. Traffickers exploit and endanger some of the most vulnerable members of our society and cause unimaginable harm. In January 2022, Attorney General Merrick B. Garland launched a new national strategy to combat human trafficking that aims to prevent all forms of trafficking, prosecute trafficking cases, and support trafficking victims and survivors.
Linn County Drug Dealer Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore.—A Linn County, Oregon man was sentenced to federal prison today after he sold methamphetamine and a firearm to an undercover federal agent while on federal supervised release for a previous conviction.
Roger Lee Bishop, 56, a resident of Sweet Home, Oregon, was sentenced to 84 months in federal prison and five years of supervised release.
According to court documents, in August 2019, law enforcement learned that Bishop, a convicted felon, was trafficking methamphetamine in Linn County and had access to firearms. On or about September 12, 2019, an undercover federal agent arranged to meet Mr. Bishop and an accomplice at a hotel in Corvallis, Oregon to purchase methamphetamine. Once Mr. Bishop entered the hotel room, he proceeded to sell approximately four ounces of methamphetamine to the agent. Following the drug sale, Bishop offered and sold a handgun to the agent for $150. On October 30, 2019, Bishop and his accomplice were arrested following a traffic stop as part of a joint local and federal law enforcement operation.
On October 24, 2019, Bishop was charged by criminal complaint with distributing methamphetamine and illegally possessing a firearm as a convicted felon. Later, on February 18, 2021, a federal grand jury in Eugene indicted Bishop on the same charges. On March 24, 2022, Bishop pleaded guilty to both charges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the Philomath Police Department, the Linn Interagency Narcotics Enforcement Team (LINE), and the Sweet Home Police Department. Assistant U.S. Attorney William M. McLaren prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
Felony Lane Gang Member Sentenced to Federal Prison for Role in Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Lauderdale Lakes, Florida man was sentenced to federal prison today for his leadership role in a bank fraud and identity theft scheme targeting female victims in the Portland Metropolitan Area.
Delvin Mills, 30, was sentenced to 55 months in federal prison and three years’ supervised release. Mills was also ordered to pay $98,733 in restitution.
According to court documents, Mills was a member of the Felony Lane Gang, an interstate criminal organization based in Florida that traveled to locations throughout the U.S. to commit vehicle break-in and fraud sprees. The organization targeted female victims who would leave their purses, wallets, and valuables in parked cars. After victims exited their vehicles—often to drop off children, run errands, or visit a gym—Felony Lane Gang members would break into the vehicles to steal targeted items. After the theft, the gang members quickly deployed associates to conduct fraudulent bank or merchant transactions using their victims’ stolen identification, checks, and credit or debit cards.
In the fall of 2019, Mills led a group of individuals who traveled to Portland to target local victims. Once Mills and his accomplices stole items from a vehicle, they checked to see if one of several female co-conspirators resembled the victim. If one of their female co-conspirators could impersonate the victim, they would attempt to cash fraudulent checks written in the impersonated victim’s name. The co-conspirators would cash checks at various local banks, using the outer-most lane of each bank’s drive-up teller window to avoid detection.
Investigators identified 32 vehicle thefts and 22 instances of bank fraud committed during Mills’ most recent known Oregon crime spree. In total, this spree resulted in a financial loss of more than $98,000. After Mills left Portland, he and a co-conspirator—Damian Fletcher, 27, of Fort Lauderdale, Florida—travelled to Denver, Colorado where they continued breaking into cars and stealing identities.
On June 6, 2020, a federal grand jury in Portland returned a 14-count superseding indictment charging Mills, Fletcher, and four co-defendants with conspiring to commit bank fraud, bank fraud, and aggravated identity theft. On February 24, 2021, Mills pleaded guilty to conspiring to commit bank fraud and aggravated identity theft.
After Mills pleaded guilty and was released on supervision conditions pending sentencing, he was arrested in Nevada for again breaking into cars. One month after his Nevada arrest, he was arrested in Southern Illinois for perpetrating a scheme similar to the one he had operated in Oregon. Mills’ arrest in Illinois led to a second federal conviction for which he will be sentenced on July 20, 2022.
On January 7, 2021, Fletcher pleaded guilty to conspiring to commit bank fraud and aggravated identity theft. On May 3, 2021, he was sentenced to three years in federal prison and three years’ supervised release.
Co-defendants Megan Spurlock, 28, of Washington State; Linda Marie Lupo, 53, of Deerfield, Florida; and Justin Curry, 29, of Fort Lauderdale, have all pleaded guilty and were sentenced for their roles in the scheme.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations with assistance from the West Linn Police Department, Tualatin Police Department, and Clark County Sheriff’s Office. It was prosecuted by Seth D. Uram and Quinn P. Harrington, Assistant U.S. Attorneys for the District of Oregon.
U.S. Attorney Scott Erik Asphaug Announces DepartureRead the Press Release
PORTLAND, Ore.—Scott Erik Asphaug announced today that, effective July 17, 2022, he will step down as U.S. Attorney for the District of Oregon. Asphaug will become the Justice Department’s Resident Legal Advisor in Nairobi, Kenya, where he will be detailed to the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) to work with Kenyan counterparts on justice sector issues.
Marco A. Hernández, Chief U.S. District Court Judge for the District of Oregon, also announced today that he will appoint Natalie K. Wight to serve as U.S. Attorney for the District of Oregon in an interim capacity pending her confirmation to the position by the U.S. Senate. On June 6, 2022, President Joseph R. Biden Jr. nominated Wight to serve as Oregon’s next Senate-confirmed U.S. Attorney, vice Billy J. Williams who resigned in February 2021.
Asphaug, a 17-year veteran of the Department of Justice, has served as U.S. Attorney for the District of Oregon since February 2021. Prior to being appointed U.S. Attorney, he held several leadership positions in the District of Oregon including First Assistant U.S. Attorney and Executive Assistant U.S. Attorney.
Former Oregon Dentist Pleads Guilty in Federal Drug CaseRead the Press Release
Defendant also faces federal charges for fraudulently obtaining millions in COVID-relief funds
PORTLAND, Ore.—A former Clackamas, Oregon dentist pleaded guilty today to illegally distributing controlled substances, including thousands of pills of prescription drugs, and anabolic steroids.
Salwan Wesam Adjaj, 43, a resident of West Linn, Oregon, waived indictment and pleaded guilty to a one-count information charging him with distributing and possessing with intent to distribute controlled substances.
According to court documents, beginning in at least March 2016 and continuing until August 2020, Adjaj knowingly and intentionally distributed and possessed with intent to distribute thousands of doses of drugs including Tramadol, anabolic steroids, injectable testosterone, Phendimetrazine, Diazepam, Alprazolam (Xanax), Lorazepam, Carisoprodol (Soma), Zolpidem, and Promethazine. Adjaj used his position as a dentist to obtain some of these drugs from a pharmaceutical manufacturer. None of the drugs distributed by Adjaj were for a legitimate medical purpose.
On December 15, 2021, in a separate criminal case, Adjaj was charged with aggravated identity theft and wire fraud for fraudulently converting to his personal use nearly $8 million in loans intended to help small business during the COVID-19 pandemic.
Adjaj is in custody pending sentencing. In his drug case, he faces a maximum sentence of 10 years in prison, a $500,000 fine, and up to 3 years of supervised release. He will be sentenced on October 11, 2022, by U.S. District Court Judge Michael W. Mosman.
As part of the plea agreement, Adjaj has agreed to abandon his ownership interest in any criminally-derived property, including, but not limited to, a 2017 Maserati Levanti.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Drug Enforcement Administration (DEA), the Clackamas County Sheriff’s Office, and the Oregon Board of Dentistry. It is being prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.
Drug Dealing Pilot from Southern Oregon who Attempted to Hire a Hitman to Kill Associate Sentenced to Federal PrisonRead the Press Release
MEDFORD, Ore.—A Josephine County, Oregon man who distributed marijuana throughout the U.S. using his private airplane and who hired a hitman to kill a drug trafficking associate was sentenced to federal prison today.
John Tobe Larson, 71, was sentenced to time served in federal prison and five years’ supervised release. Larson has been in custody for approximately 35 months since his arrest in August 2019.
According to court documents, in May 2019, law enforcement received reports that Larson was distributing marijuana from South Oregon throughout the U.S. via his private airplane and smuggling bulk cash proceeds back into the state. Investigators further learned that Larson had expressed interested in hiring someone to murder an associate he believed threatened his drug trafficking enterprise. Following these revelations, investigators staged a series of undercover meetings with Larson wherein a federal law enforcement officer posed as someone willing to carry out Larson’s murder-for-hire scheme.
In meetings with the undercover officer, Larson disclosed the identity of his targeted associate, discussed his reasoning for wanting the associate killed, and offered to pay the officer $20,000 to carry out the scheme. At their third and final meeting, federal agents arrested Larson and executed a search warrant on his residence and airplane hangar. Agents seized various items associated with Larson’s trafficking scheme including his airplane, approximately $100,000 in cash, and marijuana distillate.
On July 22, 2019, Larson was charged by criminal complaint with using interstate commerce facilities in the commission of a murder-for-hire. Later, on October 15, 2020, a federal grand jury in Medford indicted Larson on the same charge and added a second charge of possessing with intent to distribute a controlled substance. On April 20, 2022, Larson pleaded guilty to the drug trafficking charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Oregon State Police Southwest Region Drug Enforcement Section team. It was prosecuted by Marco Boccato, Assistant U.S. Attorney for the District of Oregon.
Utah Man Sentenced to 12 Years in Federal Prison for Receiving Child PornographyRead the Press Release
PORTLAND, Ore.—A Provo, Utah man was sentenced to federal prison today for receiving child pornography.
Jeremy David Croskey, 48, was sentenced to 144 months in federal prison and 15 years’ supervised release.
According to court documents, in April 2019, special agents from FBI Portland’s Child Exploitation Task Force (CETF) began working with detectives from the Yamhill County Sheriff’s Office to investigate sexually explicit messages Croskey sent to a minor victim. FBI traced Croskey’s messages to his home in Provo where they executed a search warrant and seized digital devices containing child pornography.
In May 2020, Croskey was also charged in Utah County, Utah, with illegally possessing a firearm, controlled substance, and drug paraphernalia. In September 2020, Croskey was indicted in Yamhill County Circuit Court on six counts of first-degree sexual abuse.
On March 29, 2022, Croskey pleaded guilty in federal court to receipt of child pornography. Croskey’s plea was jointly negotiated by the U.S. Attorney’s Office for the District of Oregon, the Yamhill County District Attorney’s Office, and the Utah County Attorney’s Office, resolving all three of his criminal cases.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the Yamhill County Sheriff’s Office and the Provo Police Department. It was prosecuted by Natalie K. Wight, Assistant U.S. Attorney for the District of Oregon.
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.
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 National Center for Missing & Exploited Children’s website at www.missingkids.org.
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.
Salem Drug Trafficker Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Salem, Oregon area drug trafficker was sentenced to more than 12 years in federal prison today after being arrested with distribution quantities of methamphetamine and heroin and two handguns.
Chase Benjamin Russell-Brown, 31, was sentenced to 150 months in federal prison and four years’ supervised release.
According to court documents, on November 5, 2019, officers from the Salem Police Department Strategic Investigations Unit (SIU) were conducting surveillance at a Salem hotel known for drug activity. Officers observed Russell-Brown, who had twice been arrested in the prior two months for drug trafficking offenses, exit the hotel carrying a bag and leave in a vehicle with expired registration. When the officers attempted a traffic stop, Russell-Brown fled.
Russell-Brown led officers into a crowded grocery store parking lot where the officers attempted to block him in a parking aisle. When officers positioned behind Russell-Brown’s vehicle approached on foot, Russell-Brown put his car into reverse, accelerated, and rammed a patrol car, nearly hitting the officers. After the collision, an officer in another patrol car drove forward and contacted Russell-Brown’s vehicle from the front, attempting to pin the vehicle in place. As officers approached on foot a second time, Russell-Brown continue to accelerate the vehicle trying to break free. Finally, officers were able to break the window of Russell-Brown’s vehicle and place him under arrest.
Officers found two loaded handguns on Russell-Brown’s person and several dozen grams of methamphetamine and heroin, drug packaging material, and additional ammunition and magazines in his vehicle. In total, approximately 380 grams of methamphetamine were seized from Russell-Brown during his three drug trafficking arrests.
On November 21, 2019, a federal grand jury in Portland returned an eight-count indictment charging Russell-Brown with possessing with intent to distribute methamphetamine and heroin, using and carrying a firearm during and in relation to a drug trafficking crime, and illegally possessing a firearm as a convicted felon.
On September 16, 2020, Russell-Brown pleaded guilty to possessing with intent to distribute methamphetamine and illegally possessing a firearm as a convicted felon.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Salem Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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 Pleads Guilty to Embezzling Client FundsRead the Press Release
PORTLAND, Ore.—A former Portland attorney pleaded guilty today to multiple felony charges after perpetrating a scheme to defraud her clients and use the proceeds to pay for personal expenses.
Lori E. Deveny, 56, pleaded guilty to mail, bank, and wire fraud; aggravated identity theft; money laundering; and filing a false tax return.
According to court documents, between April 2011 and May 2019, Deveny systematically stole funds she held in trust for her clients. The funds were derived from insurance proceeds due and payable to her clients. Deveny is accused of forging client signatures on settlement documents she sent to various insurance companies, making unauthorized transfers of funds to personal accounts and falsely telling clients that the insurance companies were to blame for delays in settling claims. Many of Deveny’s clients never received the insurance payout they were owed.
Deveny used the proceeds of her scheme to pay for personal credit card and loan payments, numerous big game hunting trips to Africa and the resulting taxidermy costs, other vacations, her husband’s photography business, home remodeling, expensive cigars and other expenses associated with a lavish lifestyle.
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.
Deveny will be sentenced on November 23, 2022, before U.S. District Court Judge Michael W. Mosman.
As part of her plea agreement, Deveny has also agreed to pay restitution in full to her victims as determined by the government and ordered by the court.
Mail and wire fraud are punishable by up to 20 years in prison and money laundering is punishable by up to 10 years. All three offenses carry maximum fines of $250,000 or twice the gross gains or losses resulting from the offense and three years’ supervised release. Bank fraud is punishable by up to 30 years in prison, a $1 million fine, and five years’ supervised release. Filing a false tax return is punishable by up to three years in prison, a $250,000 fine or twice the gross gains or losses resulting from the offense, and one year of supervised released. Aggravated identity theft is punishable by up to two years in prison running consecutive to any other carceral sentence imposed.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation and the FBI and is being prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.