District of Oregon
Press releases recorded for this federal judicial district.
Eugene Man Sentenced for Illegally Importing and Exporting Live ScorpionsRead the Press Release
MEDFORD, Ore.—A Eugene, Oregon man who formerly resided in Southern Oregon was sentenced in federal court today for violating the Lacey Act by illegally importing and exporting hundreds of live scorpions.
Darren Dennis Drake, 39, was sentenced to two years’ federal probation, 250 hours of community service, and a $5,000 fine payable to the Lacey Act Reward Fund.
According to court documents, between September 4, 2017 and March 21, 2018, Drake imported and exported dozens of live scorpions from and to contacts in Germany without first obtaining an import-export license from the U.S. Fish and Wildlife Service (FWS). On one parcel intercepted by U.S. Customs and Border Protection (CBP), Drake falsely labeled the package contents as “chocolates.” Drake also mailed or received several hundred live scorpions from other U.S. states, including Michigan and Texas, in violation of federal mailing laws.
On February 23, 2022, Drake was charged by criminal information with conspiracy to violate the Lacey Act. On March 14, 2022, he waived indictment and pleaded guilty to the single charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FWS Office of Law Enforcement with assistance from CBP and the U.S. Postal Inspection Service. It was prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
The U.S. Fish and Wildlife Service is responsible for protecting America’s wildlife from poaching, illegal commercialization, and other kinds of wildlife crime. If you have information related to a wildlife crime, please call 1-844-FWS-TIPS (1-844-397-8477) or email [email protected].
Scorpion near ruler for size comparison. Scorpions in transit.Indiana Man Sentenced to 10 Years in Federal Prison for Possessing Unregistered Destructive Devices During Portland ProtestsRead the Press Release
PORTLAND, Ore.—An Indiana man was sentenced to federal prison today for repeatedly and intentionally jeopardizing the lives of police officers, destroying public property, and encouraging others to commit violence during protests that occurred in Portland in 2020.
Malik Fard Muhammad, 25, was sentenced to 10 years in federal prison and three years’ supervised release.
“In the summer of 2020, a historic protest movement in Portland was marred by violent rioters taking advantage of the momentum built by thousands of peaceful demonstrators. Sadly, this violence drastically changed the narrative around these protests and what they accomplished. In the lead up to and during protests, federal law enforcement is focused on doing everything we can to support the First Amendment rights of individuals while keeping all demonstrators, other community members, and law enforcement officers safe. Holding accountable those individuals whose sole focus is violence and destruction, like Mr. Muhammad, is central to our ongoing effort to support the rights of all Oregonians,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
“Malik Fard Muhammad intentionally planned and committed acts of violence that threatened other protestors, members of the public, and law enforcement officers. This type of violence has no place in our community,” said FBI Portland Special Agent in Charge Kieran Ramsey. “The FBI is committed to apprehending and charging violent instigators who plan, promote, and commit acts of violence and destruction. We will continue to work with our law enforcement partners to protect the peaceful expression of free speech throughout Oregon.”
“The right to protest peacefully is absolute,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “But it is clear Mr. Muhammad didn’t come to exercise his rights. He came from out-of-state to bring violence to our community. This sentence should send a clear message to those who want to engage in violence that it will not be tolerated, and ATF will investigate these acts whenever they occur.”
“The risk of a law enforcement officer or community member being seriously hurt or killed by the actions of this individual was very real,” said Portland Police Chief Chuck Lovell. “I’m gratified to know that he is being held accountable for the danger his criminal actions caused. I want to extend my sincere thanks to the investigators and prosecutors whose diligent, meticulous work made this sentence possible, as well as the members of PPB and other agencies who put themselves at risk to protect our city against violence and destruction during this period of time.”
According to court documents, in late summer 2020, Muhammad traveled to Portland with his girlfriend from their home in Indianapolis to violently engage in area riots. On September 5, 2020, during a large civil disturbance in east Portland, demonstrators threw dangerous objects at police, including commercial grade fireworks, Molotov cocktails, and bottles. Muhammad later pleaded guilty in Multnomah County Circuit Court to seriously burning a demonstrator by throwing a Molotov cocktail and providing baseball bats to members of the crowd.
Following Muhammad’s arrest in October 2020, law enforcement seized his cell phone and found messages where he bragged about providing the baseball bats to other rioters. The cell phone also contained a shopping list including common supplies used to make a Molotov cocktail. The day after the demonstration, police located a discarded baseball bat with a Goodwill price tag in the area where the event occurred. Police found the Goodwill store where the bat was purchased and obtained surveillance footage showing Muhammad and his girlfriend buying the bats and several “growler” bottles.
On September 21, 2020, during a large demonstration near the Multnomah County Sheriff’s Office Penumbra Kelly Building, law enforcement observed an individual light on fire and throw an object toward the building. One officer observed the burning object flying through the air toward his vehicle, landing approximately 15 feet from a police sound truck. Officers recovered the unexploded device. It consisted of a yellow glass growler with a Goodwill sticker on the bottom, a cloth wick, and an ignitable liquid. It was later determined that the growler was one of the items purchased at Goodwill by Muhammad and his girlfriend. A DNA analysis also linked the growler to Muhammad.
On September 23, 2020, protesters set fire to and broke windows at the Multnomah County Justice Center. When officers advanced toward the crowd, an individual threw a Molotov cocktail in a large yellow growler that landed in front of the officers, shattered, and exploded into a large fireball. While some officers were able to move out of the way, one officer’s leg caught fire. Several videos obtained by law enforcement show Muhammad throwing the explosive device.
On October 11, 2020, police were monitoring a protest involving approximately 250 people in downtown Portland. Members of the group began heavily vandalizing various buildings and parks including the Oregon Historical Society, Portland State University, a Starbucks coffee shop, and a Bank of America branch, among others. Law enforcement observed Muhammad in the crowd dressed in black. Portland Police officers reported observing Muhammad using a metal baton to smash the windows of several buildings and arrested him after a short chase. Muhammad possessed a loaded handgun magazine in his pocket. A loaded handgun matching the magazine found on Muhammad’s person was found discarded near the location of his arrest.
Muhammad’s trip to Portland does not appear to be an isolated event. Investigators obtained evidence that he traveled to Louisville, Kentucky in August 2020 to meet with anti-government and anti-authority violent extremist groups to conduct firearms and tactical training. Investigators also obtained several public social media posts by Muhammad promoting violence toward law enforcement in other cities including Kenosha, Wisconsin, and Chicago.
On May 28, 2021, Muhammad was charged by criminal complaint with possession of unregistered destructive devices, engaging in civil disorder and obstructing law enforcement, and using explosives to commit a felony. Later, on June 15, 2021, a federal grand jury in Portland indicted Muhammad on the same charges. On May 28, 2022, he pleaded guilty to two counts of possessing unregistered destructive devices.
As part of his sentencing, Muhammad forfeited or abandoned his interest in a 12-gauge shotgun, an AR-15 semi-automatic rifle, a second rifle, a pistol, assorted ammunition, and all seized Molotov cocktail components and ingredients.
Muhammad’s federal sentence will run concurrently with a 10-year sentence recently imposed in Multnomah County Circuit Court. Muhmmad will serve his sentence in Oregon state prison.
U.S. Attorney Asphaug, Special Agent in Charge Ramsey, and Chief Lovell made the announcement.
This case was investigated by the Portland Police Bureau, FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant U.S. Attorney Adam E. Delph.
Tigard Man Faces Federal Charges for Threatening Mass Shooting at Elementary SchoolRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a Tigard, Oregon man with threatening a mass shooting at a local elementary school.
Brandon Richard Riess, 26, has been charged with transmitting a threat in interstate commerce.
According to court documents, on May 15, 2022, Riess submitted to a federal agency multiple electronic messages threatening a mass shooting at a Portland area elementary school. On May 16, 2022, law enforcement arrested Riess at his apartment in Tigard. Prior to his arrest, Riess admitted to sending the threatening messages and owning a pistol that was taken away several years earlier by his parents.
Riess made his initial appearance in federal court today before U.S. Magistrate Judge Youlee Yim You. He was arraigned, pleaded not guilty, and ordered detained pending a three-day jury trial scheduled to begin on August 16. 2022.
If convicted, Riess faces a maximum sentence of five years in federal prison, three years’ supervised release, and a fine of $250,000.
Riess also faces six counts of disorderly conduct in Washington County Circuit Court.
Administrators and parents of the affected elementary school have been notified of Riess’s arrest. No known active threat exists.
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 Washington County Sheriff’s Office, Sherwood Police Department, and Washington County District Attorney’s Office. Assistant U.S. Attorney Natalie K. Wight is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone with information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov. For immediate threats to life and safety, please call 9-1-1.
Vancouver Real Estate Developer Faces Federal Charges for Fraudulently Obtaining Covid-Relief Program Funds, Laundering ProceedsRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a real estate developer residing in Vancouver, Washington, and Lake Havasu, Arizona, with fraudulently obtaining Covid-relief program funds and laundering a portion of the proceeds.
Michael James DeFrees, 60, has been charged with wire fraud, bank fraud, and money laundering.
According to the indictment, between April 2, 2020, and April 4, 2022, DeFrees is alleged to have used two different business entities to illegally obtain under false pretenses Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans administered by the Small Business Administration (SBA). The EIDL and PPP programs, initially authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated mitigation measures.
To facilitate his scheme, DeFrees submitted multiple loan applications via two different banks headquartered in Washington State. In these applications, DeFrees indicated that he was the sole owner of two business entities—Gateway National Corporation, a construction company incorporated in Washington State, and Yacht Harbor, LLC, a real estate development company incorporated in Oregon—and that he, as the sole owner, had never been convicted of any criminal offense or placed on parole or probation. In reality, at the time he submitted these applications, DeFrees was serving a term of probation following a 2017 conviction in the Western District of Washington for falsifying records in a bankruptcy proceeding. After receiving the loan payouts, DeFrees laundered a portion of the proceeds using a third business entity.
DeFrees made his initial appearance in federal court today in the District of Arizona, where he was released and ordered to appear for further proceedings in the District of Oregon.
Wire and bank fraud are punishable by up to 20 and 30 years in federal prison, respectively. Money laundering is punishable by up to 10 years in federal prison.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the SBA Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The 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.
Toronto Man Sentenced to Federal Prison for Operating Dozens of Illegal Asian Brothels in Three CountriesRead the Press Release
PORTLAND, Ore.—A Canadian man was sentenced to federal prison today for his leadership role in an international sex trafficking organization operating dozens of illegal Asian brothels in the United States, Canada and Australia.
Zongtao Chen aka Mark Chen, 49, of Toronto, Ontario, Canada, was sentenced to 24 months in federal prison and three years’ supervised release.
According to court documents, Chen led a criminal enterprise that recruited women, primarily from China, to travel to the United States and elsewhere to engage in prostitution and other sex trafficking activities. The organization employed dispatchers who would receive incoming requests for “dates” from potential customers. The dispatchers would coordinate and schedule dates with women working in the various brothels.
On November 15, 2018, a federal grand jury in Portland returned a two-count indictment charging Chen and four co-conspirators with conspiring to use and using interstate facilities to promote, manage, establish, carry on, or facilitate a racketeering enterprise. On March 4, 2022, after being extradited to the U.S., Chen pleaded guilty.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from Homeland Security Investigations (HSI) agents in Omaha, Nebraska. The Toronto Police Service provided assistance. The Justice Department’s Office of International Affairs worked with law enforcement partners in Canada to secure the arrest and extradition of Chen to the United States. Participating CETF member organizations include the Portland Police Bureau, Beaverton Police Department, Tigard Police Department and Clackamas County Sheriff’s Office. It was prosecuted by Julia Jarrett, Assistant U.S. Attorney for the District of Oregon.
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.
Portland Man Faces Federal Charges for Using Instagram to Sexually Exploit Children OnlineRead the Press Release
PORTLAND, Ore.—On June 7, 2022, a federal grand jury in Portland returned an indictment charging a Portland man for using Instagram to persuade children to produce and send him sexually explicit photos of themselves.
Solomon Dean Cook, 18, has been charged with sexual exploitation of children, attempted sexual exploitation of children, receiving child pornography, and possessing child pornography.
According to court documents, Cook first came to the attention of federal law enforcement in January 2022 when the parent of a minor victim in Portland called the FBI’s National Threat Operations Center (NTOC) to report that an Instagram user had persuaded their child to produce and share a sexually explicit photo of herself. The user threatened to distribute the image if the child did not continue producing and sending more images.
In follow-up interviews with investigators, the minor victim identified a second child in Portland who had been victimized by Cook. She told investigators that Cook posted nude photos of both children on his Instagram stories.
After receiving the tip, federal agents traced two Instagram accounts to Cook and identified his Portland residence. On May 11, 2022, agents executed a federal search warrant on the residence. During the search, Cook confessed to enticing the reporting minor victim to produce the sexually explicit image and to exploiting additional victims in the same manner. Cook was arrested and made his first appearance in federal court the same day.
Cook will be arraigned on the indictment on June 10, 2022.
If convicted, Cook faces a maximum sentence of 30 years in federal prison with a 15-year mandatory minimum, a life term of supervised release, and a fine of $250,000. He may also be ordered to pay restitution to his victims.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF). It is being prosecuted by Mira Chernick, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
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.
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.
Man Charged with Murder on the Umatilla Indian ReservationRead the Press Release
PORTLAND, Ore.—A Umatilla, Oregon, man has been charged with murdering an adult male victim on the Umatilla Indian Reservation.
Kawlija Nicoah Scott, 25, has been charged by federal criminal complaint with murder.
According to the complaint, on May 25, 2022, Umatilla Tribal Police Department officers responded to a stabbing at a residence on the Umatilla Indian Reservation. Officers and paramedics found an adult male on scene who had sustained multiple stab wounds including one to his chest. Life-saving efforts were made, but the victim later died at a nearby hospital.
Further investigation revealed that Scott had stabbed the victim in the victim’s residence before fleeing the scene. Witnesses observed Scott running down a nearby road and waving two knives in the air. A short time later, tribal police officers located Scott and arrested him without incident.
Scott made his initial appearance in federal court today before U.S. Magistrate Judge Jeffrey Armistead. He was ordered detained pending further court proceedings.
Acting 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 Umatilla Tribal Police Department. Assistant U.S. Attorney Ashley R. 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.
The Dalles Man Sentenced to Federal Prison for Transporting and Possessing Child PornographyRead the Press Release
PORTLAND, Ore.—A resident of The Dalles, Oregon was sentenced to federal prison today for transporting and possessing thousands of images depicting child sexual abuse.
Nickolas K. Parsons, 27, was sentenced to 90 months in federal prison and 10 years’ supervised release.
According to court documents, in late 2019, as part of an ongoing investigation, officers identified a Twitter user who sent two MEGA links to child pornography. MEGA is an encrypted online file sharing service. Investigators traced the user’s Twitter account to Parsons’ residence in The Dalles where, in March 2020, they executed a federal search warrant. After seizing his mobile phone, Parsons admitted to viewing child pornography online and provided investigators with his MEGA account information. The account was later found to contain thousands of files containing child pornography.
On June 9, 2020, a federal grand jury in Portland returned a two-count indictment charging Parsons with transporting and possessing child pornography. On February 22, 2022, he pleaded guilty to both charges.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations. It was prosecuted by Natalie K. Wight, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at www.ice.gov/tips.
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.
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.
Medford Man Sentenced to Federal Prison for Possessing Methamphetamine on Post-Prison SupervisionRead the Press Release
MEDFORD, Ore.—A Medford, Oregon man on post-prison supervision after a previous drug trafficking conviction was sentenced to federal prison today for eluding law enforcement while in possession of methamphetamine and a firearm.
Vincent Russell Jacobo, 38, was sentenced to 80 months in federal prison and five years’ supervised release.
According to court documents, on December 31, 2020, a Jackson County Sheriff’s Office deputy was on patrol in Medford when he observed a black sedan driving toward him at a high rate of speed. The deputy attempted to stop the vehicle, but it fled and the deputy terminated the pursuit. A short time later, the deputy located the vehicle in a ditch and observed Jacobo attempting to crawl out the back window. Authorities arrested Jacobo and located a gram of heroin, two cell phones, and $1,500 on his person. Later, detectives from the Medford Area Drug and Gang Enforcement team (MADGE) searched Jacobo’s vehicle and located more than 90 grams of methamphetamine, a small quantity of heroin, a loaded pistol, and drug packaging material. At the time of the incident, Jacobo had recently been released from state prison after convictions for drug trafficking and other felonies.
On January 28, 2021, Jacobo was charged by criminal complaint with possessing with intent to distribute methamphetamine, illegally possessing a firearm as a convicted felon, and possessing a firearm in furtherance of a drug trafficking crime. Later, on February 1, 2022, he was charged by criminal information with possessing with intent to distribute methamphetamine. On February 28, 2022, Jacobo waived indictment and pleaded guilty.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from MADGE. It was prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon.
Los Angeles Man Sentenced to Federal Prison for Bank Fraud and Identity Theft SchemeRead the Press Release
PORTLAND, Ore.—A Los Angeles man was sentenced to federal prison today after he orchestrated an elaborate bank fraud and identity theft scheme targeting an elderly couple residing in Oregon.
Ijomah Joseph Oputa, 53, was sentenced to 36 months in federal prison and five years’ supervised release. Oputa was also ordered to pay $40,396 in restitution and forfeit $32,478.
According to court documents, since his arrest in Los Angeles in March 2021, Oputa has failed to disclose to law enforcement the details of his many suspected fraud schemes. Instead, he has repeatedly misled investigators on his sources and level of income as well as basic biographical details such as his date of birth, where and with whom he lives, how many siblings he has, and whether his parents are still living. Oputa’s repeated obfuscation of basic facts presented significant challenges to law enforcement. Despite these, investigators successfully uncovered a scheme Oputa concocted targeting an elderly couple residing in northeast Oregon.
In April of 2019, an elderly victim and his wife, both in their seventies, obtained a home equity line of credit from First Community Credit Union (FCCU). The couple accessed cash from this line of credit via an account they maintained at FCCU. Just two weeks after receiving the loan, Oputa called FCCU’s customer-service line, pretending to be his elderly victim. Oputa verified his stolen identity with the victim’s basic biographical details, account number, and monthly payment information. Oputa then proceeded to hijack his victim’s account.
After linking the victim’s bank account to his own email address, Oputa changed the mailing address on the account to a mailbox he controlled at a commercial mail drop in Los Angeles. Oputa then requested that a debit card linked to the account be issued to himself. Between June 2 and July 12, 2019, Oputa used the debit card to purchase 41 money orders at five U.S. Postal Service locations in the greater Los Angeles area. Together, the money orders totaled more than $32,000. Oputa deposited most of the money orders into bank accounts he maintained under other stolen identities at several Los Angeles banks. A review of records from one such account revealed that 74 money orders totaling nearly $71,000 had been laundered through it.
In mid-July 2019, the adult victim reported the unauthorized account activity to FCCU and local police. By then, FCCU had suffered losses exceeding $40,000. Local police referred the investigation to the U.S. Postal Inspection Service (USPIS).
On February 27, 2021, Oputa was charged by criminal complaint with aggravated identity theft and bank fraud. Later, on March 16, 2021, a federal grand jury in Portland indicted him on the same charges. Finally, on April 20, 2022, Oputa pleaded guilty to both charges.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by USPIS with assistance from the IRS, Environmental Protection Agency, and Small Business Administration Office of Inspector General. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Vancouver Man Sentenced to Federal Prison for Child Sex TraffickingRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for facilitating and benefitting from the sex trafficking of multiple children.
Keonte Desmond Scott, 24, was sentenced to 97 months in federal prison and five years’ supervised release.
According to court documents and trial testimony, in 2016, after he was released from prison, Scott met and befriended Johnl Jackson, 34, also of Vancouver. Jackson sold Scott cocaine and began coaching him in commercial sex trafficking. In late 2016, Scott met and began a relationship with another Vancouver resident, Diana Petrovic, 23. Jackson helped Scott traffic Petrovic and they began using her to recruit and traffic other minor females.
By early 2019, several minors reported to law enforcement that they had been trafficked by Scott and Petrovic. During the ensuing investigation, authorities learned of two teen girls, then 14- and 15-years-old, respectively, who together had run away from their homes in Lane County, Oregon and were introduced to Scott and Petrovic at a mall in Vancouver. Petrovic took the girls to a home the girls believed was Jackson’s and gave them drugs and alcohol. Scott and Petrovic told the girls they would take them to an upscale party, but, instead, took them to a location in Portland where they were sold for sex. Eventually, the girls separated themselves from Scott and Petrovic, spent the night elsewhere, and were driven back home by one of the girl’s mothers the next day.
Throughout the summer of 2018, after Scott had returned to prison, Petrovic worked closely with Jackson to traffic minors, including of the girls from Lane County.
On May 8, 2019, a federal grand jury in Portland returned a six-count indictment charging Scott, Petrovic, and a third accomplice, Evan Blake Barajas, 24, of Vancouver, Washington, with sex trafficking of children and transporting minors with intent to engage in sexual activity. On December 4, 2019, a fourth accomplice, Jamil Timpke-Rhoades, 23, of Vancouver, Washington, was added as a co-defendant by superseding indictment.
On December 9, 2021, Scott pleaded guilty to two counts of sex trafficking.
Barajas and Timpke-Rhoades are in custody pending a seven-day jury trial scheduled to begin on July 19, 2022.
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 December 4, 2019, Jackson and Petrovic were charged by 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 July 22, 2020, Petrovic was charged by superseding criminal information with and pleaded guilty to distribution of controlled substances to persons under 21. She will be sentenced on April 3, 2023.
On March 11, 2022, Jackson was convicted at trial of one count of conspiracy to engage in sex trafficking; three counts of sex trafficking of a child; two counts of sex trafficking by force, fraud, and coercion; and three counts of transportation of a minor with intent to engage in sexual activity. He will be sentenced on July 25, 2022.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
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.
Portland Man on Pretrial Release in Child Sex Abuse Case Indicted for Possessing and Distributing Child PornographyRead the Press Release
PORTLAND, Ore.—A federal indictment was unsealed today charging a Portland man with committing child pornography offenses while awaiting trial in a state child sex abuse case.
Raphael Alberto Whitfield, 33, has been charged with possession and distribution of child pornography.
According to court documents, on February 8, 2021, Whitfield was arrested after being indicted in Clackamas County Circuit Court on five counts of first-degree sexual abuse for allegedly abusing a child under the age of eight. Whitfield posted bail and was released the next day. Shortly thereafter, law enforcement in Oregon began investigating Whitfield’s use of Discord, an online instant messaging application, to send and receive child pornography. Search warrant returns showed that Whitfield had used the platform to distribute images depicting child sexual abuse as early as September 2020.
Law enforcement continued investigating Whitfield throughout much of 2021. These investigative efforts culminated in an October 2021 search of Whitfield’s person, car, and residence. Investigators seized two mobile phones, one of which was later found to contain more than 1,000 images depicting child sexual abuse. Many of these images were collected and saved while Whitfield was awaiting trial in Clackamas County.
On May 17, 2022, a federal grand jury in Portland indicted Whitfield and an arrest warrant was issued. On May 27, 2022, with the assistance of the Portland Police Bureau’s Special Emergency Reaction Team (SERT), the FBI executed the arrest warrant at Whitfield’s residence. When agents and SERT members knocked and announced their presence, Whitfield barricaded himself in the residence and attempted to take his own life by cutting his throat and wrist with a knife. Whitfield eventually exited the residence and was arrested and transported to a local hospital with non-life-threatening injuries.
Whitfield made his initial appearance in federal court today before U.S. Magistrate Judge Stacie F. Beckerman. He was arraigned, pleaded not guilty, and ordered detained pending a three-day jury trial scheduled to begin on August 2, 2022.
Possession and distribution of child pornography are each punishable by up to 20 years in federal prison, a life term of supervised release, and a $250,000 fine. Additionally, distribution of child pornography carries a 5-year mandatory minimum prison sentence.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF). The Portland Police Bureau assisted with Mr. Whitfield’s arrest. Assistant U.S. Attorney Mira Chernick is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to 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.
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.
Washington State Man Indicted After Escape from Federal Prison CampRead the Press Release
PORTLAND, Ore.—A federal indictment was unsealed today charging an Edmonds, Washington man for escaping from a satellite prison camp at the Federal Correctional Institute (FCI) in Sheridan, Oregon.
Andrew Cain Kristovich, 38, has been charged with one count of escaping from custody.
According to court documents, in the early morning hours of April 25, 2022, correctional officers at FCI Sheridan, a federal prison located in Yamhill County, Oregon, discovered that Kristovich was missing from his assigned bunk. Kristovich was serving a 60-month sentence after being convicted in the Western District of Washington for conspiring to distribute controlled substances and unlawfully using a controlled substance in possession of a firearm.
Later, on April 25, 2022, law enforcement officers were dispatched to a residence in Vancouver, Washington for a welfare check. The officers met a female who reported that Kristovich had told her he was getting released from prison and asked her to pick him up. After the woman picked him up, Kristovich sexually and physically assaulted her and then fled with her vehicle. On April 27, 2022, the woman’s vehicle was found locked and abandoned in a retail parking lot in Edmonds, Washington.
On May 14, 2022, a U.S. Marshals Fugitive Task Force arrested Kristovich in Carson City, Nevada. Kristovich was found in possession of a semi-automatic rifle.
Kristovich made his initial appearance in federal court in the District of Oregon today before U.S. Magistrate Judge Jolie A. Russo. He was ordered detained pending further court proceedings.
If convicted, Kristovich faces a maximum sentence of five years in federal prison, three years’ supervised release, and a fine of $250,000.
Kristovich also faces Washington State felony charges in Clark County Superior Court for second degree rape, second degree assault, second degree robbery, and theft of a motor vehicle.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case is being investigated by the Clark County Sheriff’s Office, the U.S. Marshals Service, and the FBI. It is being prosecuted by Ashley R. Cadotte, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Domestic violence is a serious crime that includes both physical and emotional abuse. It is frequently hidden from public view. Many survivors suffer 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 at 1-800-799-SAFE (7233). Many communities throughout the country have developed support networks to assist survivors in the process of recovery.
Leader of Hillsboro Methamphetamine Distribution Cell Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—On May 25, 2022, a Hillsboro, Oregon man was sentenced to federal prison for leading a Hillsboro area methamphetamine distribution cell that was part of a conspiracy to traffic large quantities of methamphetamine, heroin, and fentanyl from Mexico for resale in Oregon and Washington State.
John Armas, 44, was sentenced to 90 months in federal prison and five years’ supervised release.
According to court documents, Armas’ Hillsboro methamphetamine distribution cell was part of a larger drug trafficking network led by Victor Alvarez Farfan, 50, of Oregon City, Oregon. Armas would receive pounds of methamphetamine at his residence from Farfan or associates of Farfan and, in turn, transfer it to various co-conspirators for storage or further distribution. From May 2018 through October 2018, Armas planned and coordinated the transfer and distribution of more than 5 kilograms of methamphetamine.
On October 17, 2018, a federal grand jury in Portland returned a nine-count indictment charging Armas, Farfan, and 20 co-defendants with conspiracy to possess with the intent to distribute and distribute controlled substances; use of a communication facility, including cellular telephones, in the commission of a controlled substances felony; maintaining drug-involved premises to manufacture and distribute controlled substances; interstate distribution of drug proceeds and money laundering.
On October 24, 2018, a coordinated law enforcement operation led by the FBI with assistance from Homeland Security Investigations (HSI), the Westside Interagency Narcotics (WIN) Task Force and the Clackamas County Interagency Task Force (CCITF) resulted in the arrest of Armas, Farfan and many of their co-defendants. As part of the operation, investigators searched Armas’ Hillsboro residence and seized a handgun and drug packaging material.
On January 13, 2020, Armas pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine. On November 23, 2021, Farfan became the last of 23 co-defendants charged in the conspiracy to plead guilty. On March 4, 2022, Farfan was sentenced to 180 months in federal prison and five years’ supervised release.
This case was prosecuted by the U.S. Attorney’s Office for the District of Oregon and is the result of a joint investigation by FBI, HSI, WIN, and CCITF. Forfeiture was litigated by the U.S. Attorney’s Office Asset Recovery and Money Laundering Division.
WIN includes representatives from the Washington County Sheriff's Office, Beaverton Police Department, Hillsboro Police Department, Tigard Police Department, Oregon National Guard Counterdrug Program, and FBI. CCITF includes representatives from 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) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Former Aequitas Senior Executive and Chief Financial Officer Pleads Guilty to Making False Statements to a CreditorRead the Press Release
PORTLAND, Ore.—A former senior executive and chief financial officer of Aequitas Management, LLC, and several other entities formerly owned by Aequitas, pleaded guilty today to submitting a false statement to an Aequitas creditor to obtain a $4.2 million loan for the now-defunct company.
Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank.
According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitas’s behalf
By early January 2016, Aequitas’s general counsel advised Gillis and other executives that the company would soon default on payments due to Private Note investors, causing an “event of default” on Aequitas’s loan agreement with Wells Fargo. Despite that advice, on or about January 15, 2016, Gillis signed and, with others, submitted to Wells Fargo an “advance notice,” requesting that Wells Fargo advance $4.2 million to Aequitas with a false certification that Aequitas was not confronting a potential event of default.
On August 11, 2020, the U.S. Attorney’s Office announced that Gillis had been charged in a 34-count indictment with conspiracy to commit mail and wire fraud, wire fraud, bank fraud, and money laundering. Gillis was charged alongside former Aequitas CEO Robert J. Jesenik, 62, of West Linn, Oregon, and former Aequitas executives Brian K. Rice, 55, of Portland, and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Florida. Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023.
Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years’ supervised release. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon.
As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court.
This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. Attorneys for the District of Oregon.
California Real Estate Developer Faces Federal Charges for Using Stolen Identities to Obtain COVID-Relief Program FundsRead the Press Release
PORTLAND, Ore.—A federal indictment was unsealed today charging a California real estate developer with using stolen identities to fraudulently obtain more than $1.5 million in loans intended to help small businesses during the COVID-19 pandemic.
Alfred E. Nevis, 52, of Arroyo Grande, California has been charged with wire fraud, aggravated identity theft, and money laundering.
According to court documents, from April 1, 2020, through at least August 6, 2020, Nevis is alleged to have used the identities of multiple individuals known to him—including current and former employees, business associates, and their spouses—to illegally obtain Economic Injury Disaster Loans (EIDLs) administered by the Small Business Administration (SBA). The EIDL program was one of several economic relief programs originally authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES). It enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated mitigation measures.
To facilitate his scheme, Nevis used the stolen identities to register straw corporations, obtain Employer Identification Numbers (EINs) from the IRS, and submit loan applications to SBA on behalf of the newly-registered corporations. In one instance, Nevis claimed a straw corporation called Isley Farms, registered in Oregon, had 12 employees and generated more than $725,000 in revenue in a 12-month period ending in January 2020.
Between April 1, 2020 and July 23, 2020, Nevis submitted at least 12 EIDL applications using the identities of at least eight individuals without their knowledge or permission. Together, these applications generated nearly $1.4 million in fraudulent loan disbursements. SBA approved one final EIDL for $150,000 in August 2020, bringing Nevis’ total fraud proceeds to more than $1.5 million. Nevis is further alleged to have laundered at least $160,000 of his ill-gotten gains.
Nevis made his initial appearance in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was arraigned, pleaded not guilty, and released pending a 3-day jury trial scheduled to begin on August 2.
Nevis faces a maximum sentence of 32 years in prison, fines of up to $500,000, and 3 years’ supervised release.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, the FDIC Office of Inspector General, 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.
Medford Man Sentenced to 15 Years in Federal Prison Under Armed Career Criminal ActRead the Press Release
MEDFORD, Ore.—On May 24, 2022, a Medford man with a long criminal history, including multiple convictions for strangulation and assault, was sentenced to federal prison for illegally possessing a firearm as a convicted felon.
James Calvin Patterson, 46, was sentenced to 15 years in federal prison and five years’ supervised release. Patterson’s sentence will run concurrently to a 45-month sentence recently imposed for a drug conviction in Jackson County Circuit Court.
According to court documents, in the early morning hours of March 30, 2019, two officers from the Medford Police Department observed a white compact car stopping in the middle of the road to pick up a passenger. Suspecting possible drug activity, the officers initiated a traffic stop. As one officer approached the vehicle, the front passenger, Patterson, began moving his hands around and near his midsection and waistband. Concerned Patterson was armed, the officer asked him to step out of the vehicle. Patterson initially did not move, but then quickly reached toward his waist band. Eventually Patterson excited the vehicle and, after initially complying with some of the officer’s commands, attempted to flee on foot.
Before long, the officer regained control of Patterson and forced him to the ground. As the officer tried to handcuff him, Patterson continued reaching for this waistband. After a struggle, officers successfully handcuffed Patterson. When they stood him up, a loaded pistol fell from his waistband.
Shortly after his arrest, Patterson made multiple recorded jail phone calls on which he admitted to possessing the firearm, acknowledged he was facing 15 years in prison, and stating he would have shot the officer if he had the chance.
On May 16, 2019, Patterson was charged by criminal complaint with illegally possessing a firearm as a convicted felon. Later, on June 5, 2019, a federal grand jury in Medford indicted Patterson on the same charge. On December 9, 2021, he pleaded guilty.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with assistance from the Medford Police Department. It was prosecuted by Assistant U.S. Attorney Marco A. Boccato of 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.
Southwest Washington Man Indicted for Overdose Death of Portland TeenRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned a superseding indictment charging a Vancouver, Washington man for his role in a fentanyl distribution scheme that led to the overdose death of a Portland teenager.
Manuel Antonio Souza Espinoza, 24, has been charged with conspiracy to distribute and possess with intent to distribute fentanyl, resulting in death; possession with intent to distribute fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
“Our community is flooded with counterfeit prescription pills that can take an innocent victim’s life in the blink of an eye. Sadly, taking a pill to get high does not have the same stigma or barrier to entry for many unwitting victims, leading to tragic results,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon. “We urge everyone, regardless of age, to talk with their friends and loved ones about the risks of taking pills not prescribed to them by a medical professional. Please help to protect those closest to you while we in law enforcement continue to battle this urgent public health and safety crisis.”
“HSI, along with our law enforcement partners, pursue those fueling the opioid epidemic in this region which is claiming the lives of so many young victims,” said Special Agent in Charge (SAC) Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest. “This heartbreaking story is a constant reminder to the public that the only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist.”
“All overdose cases are tragic, but this one involving a person so young was heartbreaking, and our sympathies are extended to his loved ones,” said Chief Chuck Lovell. “I’m grateful for the ongoing and important work of the members of PPB’s Narcotics and Organized Crime Unit, investigative assistance from the Clackamas County Interagency Task Force, and our federal partners. Any time an arrest like this is made, our city gets a little bit safer. However, addressing this issue is going to take more than law enforcement. We need the community to recognize this problem and help us promote awareness that these fentanyl pills and powder are lethal and are a significant threat to our community.”
According to court documents, the investigation that ultimately led to Espinoza’s arrest began after the tragic overdose death of a Portland teenager who, in March 2022, ingested a counterfeit “M30” Oxycodone pill manufactured with fentanyl. The investigation revealed that Espinoza—a known, high-volume Portland area drug dealer—was the third-level supplier of the counterfeit pills. On March 31, 2022, using a confidential informant, investigators arranged a controlled purchase of 1,000 pills from Espinoza. When Espinoza arrived at the agreed upon location, he was immediately arrested. Investigators located the 1,000 pills in his vehicle along with a loaded .40 caliber handgun with extended magazine.
On March 31, 2022, Espinoza was charged by criminal complaint with possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime. Later, on April 21, 2022, a federal grand jury in Portland indicted him on the same charges.
Espinoza made his initial appearance in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was arraigned, pleaded not guilty, and ordered detained pending further court proceedings.
If convicted, Espinoza faces a maximum sentence of life in federal prison.
U.S. Attorney Asphaug, Special Agent in Charge Hammer, and Chief Lovell made the announcement.
This case was investigated by Homeland Security Investigations, the Portland Police Bureau, and the Multnomah County District Attorney’s Office with assistance from the Clackamas County Inter-agency Task Force. Assistant U.S. Attorney Scott M. Kerin is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Opioid abuse affects communities across the nation. Provisional data from the Centers for Disease Control and Prevention (CDC) indicate that there were more than 100,000 drug overdoses in the U.S. during the 12-month period ending April 2021, an increase of nearly 29% from the previous 12-month period. 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 U.S.
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 or someone you know is 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.
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.
Oregon Marijuana Exporter Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—On May 23, 2022, a former resident of Milwaukie, Oregon was sentenced to federal prison for illegally exporting marijuana grown in Oregon to Georgia for resale and laundering the proceeds.
Dante Baldocchi, 30, currently a resident of Altadena, California, was sentenced to 21 months in federal prison and four years’ supervised release.
According to court documents, between January 2017 and June 2020, Baldocchi purchased marijuana in Oregon and arranged to have it shipped via freight to Georgia where he and others sold it to distributors in the Atlanta area and in North Carolina. Baldocchi and his associates shipped portions of the proceeds from Georgia back to Oregon in vacuum-sealed bags and other portions concealed in buckets of drywall spackle.
On June 9, 2020, a federal search warrant was executed on Baldocchi’s then-residence in Milwaukie. Investigators located more than 330 pounds of marijuana grown in Oregon.
On August 19, 2021, Baldocchi and an associate—Hunter Lacaden, 27, of Portland—were charged by criminal information with conspiring to distribute marijuana and commit money laundering. On October 13, 2021, Baldocchi pleaded guilty to both charges.
On September 21, 2021, Lacaden pleaded guilty to conspiring to distribute marijuana. On March 28, 2022, he was sentenced to 30 months in federal prison and three years’ supervised release.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations and IRS-Criminal Investigation with assistance from the Clackamas County Sheriff’s Office and Portland Police Bureau. Assistant U.S. Attorney Julia E. Jarrett prosecuted the case.
Former Federal Correctional Officer Pleads Guilty for Role in Bribery and Contraband Smuggling ConspiracyRead the Press Release
PORTLAND, Ore.—A former federal correctional officer at the Federal Correctional Institute (FCI) in Sheridan, Oregon pleaded guilty today for his role in a bribery and contraband smuggling conspiracy.
Nickolas Carlos Herrera, 32, pleaded guilty to conspiracy, providing contraband in prison, and accepting a bribe as a public official.
According to court documents, from April 2015 until he was placed on administrative leave in December 2019, Herrera was employed as a correctional officer at FCI Sheridan, a federal prison in Yamhill County, Oregon. Herrera used his position to introduce contraband into the facility for the benefit of select inmates including Donte Hunt, 40, who is in custody pending an October 2022 trial on federal drug, gun, and money laundering charges. In the spring of 2019, Herrera began bringing contraband items such as food, clothing, and cigarettes into the facility, which he gave to Hunt in exchange for money.
Later, Herrera brought Hunt marijuana; Suboxone, a Schedule III narcotic; Yeezy brand designer sneakers, and a cell phone. Herrera obtained the narcotics and other items from Elizabeth McIntosh, 34, a non-incarcerated associate of Hunt’s. On at least one occasion, Herrera allowed Hunt to use a staff phone at the prison to call McIntosh to arrange the delivery of Suboxone to Herrera. Herrera met McIntosh on multiple occasions to obtain the narcotics and other items for Hunt and accepted payment from McIntosh via transfers of cash and transfers using various digital payment services including PayPal, Apple Cash, and Square.
On September 24, 2020, a federal grand jury in Portland returned an indictment charging Herrera, Hunt, and McIntosh with conspiracy and bribing a public official. Herrera and Hunt were additionally charged with providing contraband in prison.
Herrera and McIntosh were arraigned on November 2 and 4, 2020, respectively. Both were released on conditions. Hunt was arraigned on November 19, 2020 and ordered to continue his pre-trial detention.
Herrera and Hunt face maximum sentences of 25 years in prison, a $750,000 fine, and five years’ supervised released. McIntosh faces a maximum sentence of 20 years in prison, a $500,000 fine, and five years’ supervised released.
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 Federal Bureau of Prisons. It is being prosecuted by Ethan Knight and Katherine Rykken, Assistant U.S. Attorneys for the District of Oregon.
California Man Sentenced to 25 Years in Federal Prison for Kidnapping Former Dating Partner, Illegal Firearm PossessionRead the Press Release
MEDFORD, Ore.—On May 17, 2022, a Humboldt County, California man was sentenced to 25 years in federal prison for the armed kidnapping of three adult victims, including a former dating partner, and illegally possessing a stolen firearm as a convicted felon.
George Gene Rose, 45, was sentenced to 300 months in federal prison and five years’ supervised release.
“Mr. Rose’s callous and terrifying kidnapping of his former partner and two other adult victims warrant the lengthy prison sentence imposed today. We hope this sentence will bring some measure of peace and closure for these victims after this harrowing ordeal,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
“The physical and emotional toll Mr. Rose subjected his victims to cannot be undone; however, our hope is that today’s sentence begins the healing process for these victims. His actions were cold-blooded and egregious and physical and emotional violence of this kind will not be tolerated,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, on August 3, 2020, Rose entered the apartment of his first victim, a former dating partner, and waited for them to return home from work. Once inside, he stole a shotgun and several shotgun shells belonging to the victim’s landlord. When the victim returned home with a roommate, Rose confronted both individuals and ordered them to the ground at gunpoint. He bound both by their hands and feet and placed duct tape over their mouths and faces. Rose located a third victim in an adjacent bedroom and tied them up in a similar manner at gunpoint. When the third victim tried to break free of the binding, Rose struck them in the head with the butt of the stolen shotgun.
Rose then forced all three victims into a stolen pickup truck and fled. Several hours later, he released his second and third victims in a rural area of Northern California and told them to seek help from a house located two miles away. Rose continued driving north toward Oregon, while his first victim faded in and out of consciousness. Near Talent, Oregon, Rose abandoned the truck and led his first victim, who was not wearing shoes, through a densely wooded area. He repeatedly voiced his intention to kill the victim and himself.
Three days after the kidnapping, Rose’s victim convinced him to turn himself in. Rose eventually allowed the victim to knock on the door of a nearby residence and negotiate the terms of his surrender to police. Rose was arrested in possession of the stolen shotgun and more than two dozen shotgun shells.
On May 20, 2021, a federal grand jury in Medford returned a two-count indictment charging Rose with kidnapping and illegally possessing a firearm as a convicted felon. On September 27, 2021, he pleaded guilty to both charges.
U.S. Attorney Asphaug and Special Agent in Charge Ramsey made the announcement.
This case was investigated by the FBI with assistance from the Jackson County Sheriff’s Office, Humboldt County Sheriff’s Office, and the Humboldt County District Attorney’s Office. It was prosecuted by John C. Brassell, Assistant U.S. Attorney for 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.
Man Pleads Guilty to Sexually Assaulting Woman on the Warm Springs Indian ReservationRead the Press Release
PORTLAND, Ore.—A Warm Springs, Oregon man pleaded guilty today for sexually assaulting a woman on the Warm Springs Indian Reservation.
Jerome Albert Stanley, Jr., 27, pleaded guilty to one count of abusive sexual contact.
According to court documents, on August 9, 2020, after being warned not to do so, Stanley entered a bedroom occupied by an adult woman in a residence on the Warm Springs Indian Reservation and sexually assaulted the woman. Later, during a recorded call with the victim, Stanley admitted to the abusive sexual contact and acknowledged it should not have happened.
On September 15, 2021, a federal grand jury in Portland returned a four-count indictment charging Stanley with sexual abuse of an incapable victim and aggravated sexual abuse by force. Prior to pleading guilty, on May 11, 2022, Stanley was charged by superseding criminal information with abusive sexual contact.
Stanley faces a maximum sentence of two years in prison, a $250,000 fine and five years’ supervised release. He will be sentenced on August 8, 2022 before U.S. District Court Judge Michael W. Mosman.
As part of the plea agreement, Stanley will pay restitution to his victim as identified by the government and ordered by the court at sentencing. He must also register as a sex offender.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI and the Warm Springs Tribal Police Department. Assistant U.S. Attorneys Pamela Paaso and Erin Greenawald are prosecuting the case.
Sexual assault is a serious violent crime frequently hidden from public view. Many survivors suffer in silence, afraid to seek help or not knowing where to turn. The traumatic effects of sexual 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 Sexual Assault Hotline by calling 1-800-656-4673 or visiting online.rainn.org to chat online. Trained staff members are available 24/7 year-round. Many communities throughout the country have also developed support networks to assist survivors in the process of recovery.
The StrongHearts Native Helpline offers culturally specific support and advocacy for American Indian and Alaska Native survivors of domestic and sexual violence. Please call 1-844-762-8483 or visit www.strongheartshelpline.org for more information.
Jury Convicts Former New Jersey Man for Role in Scheme to Defraud Elderly Oregonian of SavingsRead the Press Release
EUGENE, Ore.—A federal jury in Eugene found a former New Jersey man guilty today for his role in a scheme to steal $1 million from an elderly man residing in Roseburg, Oregon.
Thomas Gerard Mautone, 43, formerly of Newark, New Jersey, was found guilty of four counts of wire fraud.
According to court documents and trial testimony, Mautone was one of five individuals who together perpetrated a monthslong scheme to convince an elderly man to invest $1 million in a fraudulent high-yield international investment scheme. In July 2015, one of Mautone’s co-defendants, Jared Mack, 46, of Utah, made initial contact with the victim, by email, to pitch an investment opportunity claiming to produce weekly returns of 20%. Once the victim expressed interest in the purported investment opportunity, Mack introduced him to Mautone, the supposed connection to investment “platform partner,” and later codefendant, Olabode Olukanni, 39, of New York.
For several months, Mautone and his co-defendants maintained frequent contact with the victim and repeatedly attempted to assure him, via a series of increasingly intimidating and pressure-laden communications, of the investment opportunity’s legitimacy, low risk, and promised returns. These false representations were made despite Mautone knowing that others had their money stolen by his supposed Hong Kong investment partner, “YangXin Deng.”
In December 2015, the victim wired $1 million to a bank account in Dubai, which was controlled by codefendant Rovshan Bahader Oglu Qasimov, 38, of Azerbaijan. Qasimov immediately withdrew the money and used it to purchase gold from a jewelry store in Dubai, United Arab Emirates. The victim never saw his money again, nor did he receive the promised investment returns.
Wire fraud is punishable by up to 20 years in prison, a $250,000 fine, and three years’ supervised release. Mautone will be sentenced on September 8, 2022 by U.S. District Court Judge Michael J. McShane.
Mack, Olukanni, and Qasimov have all pleaded guilty and been 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 the FBI. Assistant U.S. Attorneys Gavin W. Bruce and William M. McLaren prosecuted the case.
U.S. Attorney's Office Recognizes National Police Week, May 11-17, 2022Read the Press Release
PORTLAND, Ore.— In honor of National Police Week, U.S. Attorney Scott Erik Asphaug recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year’s commemoration is observed Wednesday, May 11 through Tuesday, May 17, 2022.
“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”
“All of us at the U.S. Attorney’s Office are inspired everyday by the extraordinary courage and dedication of our law enforcement partners who repeatedly put their lives on the line to protect our communities. National Police Week is a longstanding tradition that affords all of us an opportunity to recognize and celebrate the accomplishments of law enforcement and honor those officers who have made the ultimate sacrifice in service of our country. We offer our deepest gratitude and sincere thanks to everyone in law enforcement as well as their families and loved ones,” said U.S. Attorney Asphaug.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, celebrated every year on May 15, honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021. Of that number, 319 succumbed to COVID-19.
According to 2021 statistics reported by the FBI through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers were killed in the line of duty by felonious acts and 56 died in accidents. Deaths resulting from felonious acts increased by more than 58 percent in 2021. Additionally, in 2021, unprovoked attacks were the cause of 24 deaths, outpacing all other line of duty deaths resulting from felony acts and marking the highest annual total in over 30 years of reporting. LEOKA statistics can be found on the FBI’s Crime Data Explorer website.
The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 5:00 PM PDT. The vigil can be streamed live online on the NLEOMF YouTube channel. A full schedule of National Police Week events is available on NLEOMF’s website.
Portland Gang Member Sentenced to Federal Prison for Armed Robbery of Eugene Marijuana DispensaryRead the Press Release
PORTLAND, Ore.—A Portland man affiliated with the Hoover Criminal Gang and Unthank Park Hustlers, two allied Portland street gangs, was sentenced to federal prison today for robbing a Eugene marijuana dispensary.
Timothy Christopher Gaines, 30, was sentenced to 84 months in federal prison and five years’ supervised release.
According to court documents, on December 20, 2019, Gaines and an accomplice robbed Green Therapy, a marijuana dispensary in Eugene, of several jars of marijuana and $912 in cash. Gaines brandished a firearm during the robbery and pointed it at a store employee cowering on the floor.
On June 25, 2020, Gaines was charged by criminal complaint with Hobbs Act robbery. Later, on July 23, 2020, a federal grand jury in Portland returned an indictment charging Gaines with the same. A superseding indictment returned on October 20, 2020 added a charge of using and carrying a firearm during and in relation to a crime of violence.
On February 14, 2022, Gaines pleaded guilty to using and carrying a firearm during and in relation to a crime of violence.
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 Eugene Police Department and Portland Police Bureau. Assistant U.S. Attorney Leah K. Bolstad 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.
Portland Man Sentenced to Federal Prison for Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for using a residential property he did not own as collateral for obtaining a bank loan worth more than $316,000.
Alireza Zamanizadeh, aka Ali Zamani, 63, was sentenced to 18 months in federal prison and five years’ supervised release. The court also ordered Zamanizadeh to pay $400,000 in restitution to the owner of the property.
According to court documents, on or about February 17, 2017, Zamanizadeh filed a quitclaim deed in Deschutes County, transferring a residential property in Bend, Oregon to his business for one dollar without the property owner’s consent. A quitclaim deed is a document used to quickly transfer the ownership of real property from one party to another.
Zamanizadeh then used the property as collateral for obtaining a loan worth $316,092 from a mortgage lender and forged the property owner’s signature on a statement verifying the property transfer. Based on his false representations, the mortgage company approved the loan and transferred the funds to Zamanizadeh’s bank account. After Zamanizadeh defaulted on the loan, the true owner of the property purchased the property out of foreclosure for $400,000.
On June 14, 2021, Zamanizadeh was charged by criminal information with bank fraud and aggravated identity theft. On September 14, 2021, he pleaded guilty to bank fraud.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation with assistance from the FBI. It was prosecuted by Katherine A. Rykken, Assistant U.S. Attorney for the District of Oregon.
Former Corvallis Lawyer Pleads Guilty to Wire Fraud and Identity TheftRead the Press Release
PORTLAND, Ore.—A former Corvallis, Oregon lawyer pleaded guilty today for perpetrating a scheme to defraud her clients and use their payments to fund personal expenses.
Megan Moeller, aka Megan Perry, 42, pleaded guilty to wire fraud and identity theft.
According to court documents, beginning in at least 2014, Moeller, whose legal practice purportedly involved family law, divorce, child custody and visitation, and adoption matters, knowingly and intentionally perpetrated a scheme to defraud her clients by accepting payment for various legal services, failing to perform those services, using fraudulent means to conceal her failure to perform the services, and using the proceeds to fund her own personal expenses.
In one instance, in June 2016, Moeller accepted payment from a client in a child visitation and support case. Moeller falsely claimed to have drafted and served an order to show cause regarding the enforcement of parenting time to her client’s former spouse. Despite Moeller’s claims to the contrary and her client’s repeated inquiries, the document was never received by the former spouse. On March 23, 2017, Moeller provided her client with a fraudulent affidavit of service of process and a fraudulent certified mail receipt on which Moeller had knowingly forged the signature of her client’s former spouse. Moeller also forged the signatures of a process server and a notary.
On March 1, 2018, Moeller submitted a Form B resignation to the Oregon State Bar. It was accepted on April 5, 2018.
On April 29, 2022, Moeller was charged by superseding criminal information with wire fraud and identity theft.
Wire fraud is punishable by up to 20 years in federal prison, $250,000 fine and 3 years supervised release. Identity theft is punishable by up to 15 years in federal prison, a $250,000 fine and 3 years supervised release.
Moeller will be sentenced on August 4, 2022, before U.S. District Court Judge Robert E. Jones.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Postal Inspection Service. It is being prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
U.S. Attorney's Office Joins in Recognizing Missing and Murdered Indigenous Persons Awareness Day, May 5, 2022Read the Press Release
PORTLAND, Ore.—On May 4, 2022, President Joseph R. Biden Jr. proclaimed today, May 5, 2022, as Missing and Murdered Indigenous Persons Awareness Day.
The proclamation reaffirmed the nation’s commitment to solving all missing and murdered Indigenous persons cases and addressing the underlying causes of these crimes, including sexual violence, human trafficking, domestic violence, other violent crime, systemic racism, economic disparities, and substance use and addition.
The U.S. Attorney’s Office for the District of Oregon joins its Tribal, federal, state, and local law enforcement partners in taking this opportunity to highlight the importance of supporting Tribal crime victims and synthesizing investigative leads and information across government and law enforcement agencies.
“Supporting and enhancing public safety in Tribal communities is a top priority for the U.S. Attorney’s Office and the Justice Department. As such, we are fully committed to implementing Savanna’s Act and bolstering the collection and reporting of data on missing or murdered Native people. Despite great progress we have made with our Indian Country partners, we know there is much more the Justice Department and federal government can do to support these communities. We will continue to work diligently toward safety, justice, and healing for all,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
In June 2020, the U.S. Attorney’s Office announced the hiring of its first Missing and Murdered Indigenous Persons (MMIP) program coordinator. In February 2021, the office released its first annual MMIP program report, summarizing what is known about missing and murdered Indigenous people in Oregon and outlining the office’s plans and goals. The U.S. Attorney’s Office is expected to release its second annual report this summer.
If you or someone you know have information about missing or murdered Indigenous people in Oregon, please contact the FBI Portland Field Office by calling (503) 224-4181 or by visiting tips.fbi.gov.
If you have questions about the U.S. Attorney’s Office MMIP program, please contact MMIP program coordinator Cedar Wilkie Gillette by emailing [email protected] or by calling (503) 727-1000.
Fugitive Wanted in the District of Oregon Returned to the U.S. After Two Decades on the RunRead the Press Release
PORTLAND, Ore.—An international fugitive and former resident of San Diego who is wanted in the District of Oregon for perpetrating a real estate scam was apprehended in and returned to the U.S. from Costa Rica after more than two decades on the run.
Robin James McPherson, who faces charges of wire fraud and money laundering in the District of Oregon, made a federal court appearance this week in Houston en route to the Southern District of California where he will soon be sentenced for tax crimes.
According to a criminal complaint unsealed today in Oregon, in early August 2019, the FBI began investigating McPherson after several individuals reported being the victims of a real estate scheme operating out of Springfield, Oregon and Costa Rica. McPherson is alleged to have used a variety of marketing techniques, including cold calls, promotional websites, and Facebook advertisements, to find potential investors in an alleged Costa Rican real estate development opportunity called the Carara Parque Resort Corporation. After victims showed interest in the faux investment opportunity, McPherson would conduct sales calls, from Costa Rica, to explain the project.
Over a period of months, McPherson directed victims to wire investment funds to a bank account in Oregon. He then transferred the funds to Costa Rica. Between December 2015 and August 2019, approximately $1.2 million dollars were transmitted to the Oregon bank account. McPherson used many different excuses to explain to his investors why no resort villas had been constructed. McPherson did not disclose to investors that their contracts had not been honored and no villas were slated for construction. McPherson used investors’ funds to pay for various personal expenses including his own mortgage.
In December 2000, McPherson and two co-conspirators were found guilty at trial in the Southern District of California of conspiring to defraud the IRS and tax evasion. Prior to being sentenced in March 2001, McPherson fled the U.S.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of the Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Former Grass Seed Company Employee Charged in Scheme to Defraud SimplotRead the Press Release
PORTLAND, Ore.—An Idaho man who formerly supervised order-fulfillment and warehousing operations for the Jacklin Seed Company, a Liberty Lake, Washington producer and marketer of grass seed and turfgrass, has been charged for his role in multiple schemes to defraud the J.R. Simplot Company and Jacklin, its former subsidiary.
Richard Dunham, 64, a resident of Hayden Lake, Idaho, has been charged by federal criminal information with two counts of conspiracy to commit wire fraud.
According to court documents, from 1997 until its sale in 2020, the J.R. Simplot Company, a major privately held supplier of agricultural products headquartered in Boise, Idaho, owned and operated Jacklin. During this time, much of Jacklin’s business operations, including a seed-blending and warehousing facility, were located in and around Albany, Oregon. Dunham, who supervised Jacklin’s Albany operations, had the authority to purchase grass seed from certain Oregon growers over others.
At some point between 2013 and 2015, Dunham, Jacklin general manager Christopher Claypool, 53, of Spokane, Washington, and others realized that growers’ preference for higher-yield grasses was creating substantial shortages of lower-yield varieties Jacklin had contracted to deliver to its customers. Dunham and Claypool recognized that these shortages would either cause Jacklin to fail to deliver on its existing contracts or require Jacklin to pay a premium to growers to acquire necessary inventory, substantially eroding company profits. The pair anticipated that either result would negatively affect their careers.
From January 2015 and continuing until at least the summer of 2019, Dunham and Claypool directed Jacklin employees, at the Albany facility and elsewhere, to fulfill customer orders with different varieties of grass seed than the customers had ordered, to conceal such substitutions from the customers, and to invoice the customers as though no substitutions had taken place. Together, they referred to this scheme as “getting creative.”
To conceal the unauthorized substitutions, Dunham and Claypool directed Jacklin employees to package the substitute seed varieties with false and misleading labels. They also directed employees to invoice the customers under the original terms of their contracts, notwithstanding the unauthorized substitutions. As a result of this scheme, Simplot refunded or credited more than $1.5 million to defrauded buyers.
During the same time, Dunham and Claypool also agreed to import mislabeled seeds from Moore Seeds, a Jacklin supplier based in Debolt, Alberta, Canada, to offset the shortage of one of Jacklin’s best-selling grass seed blends. In doing so, Dunham conspired with Raymond Walker, 60, a resident of Debolt and Moore’s managing director, to purchase a less expensive seed blend at above-market rates in exchange for Walker falsely labeling the seed as Jacklin’s premier blend and shipping it, under that false pretense, to Jacklin in Oregon.
In additional to the undisclosed seed substitutions, Dunham engaged in another scheme while employed with Jacklin. Beginning in April 2015, Dunham conspired with Gregory McCarthy, the owner of Ground Zero Seeds, a grass seed production and wholesale company based in Yamhill, Oregon that regularly did business with Jacklin. Dunham and McCarthy, who were longtime friends, agreed that Ground Zero would pay Dunham a per pound kickback for grass seed purchased by Jacklin. These kickbacks were built into the prices reflected on Ground Zero’s invoices to Jacklin and, between April 2015 and September 2019, caused Ground Zero is pay Dunham more than $191,789.
In facilitating their scheme, Dunham and McCarthy regularly corresponded by email, referring to Ground Zero’s kickbacks to Dunham as “shoes” or contributions to his “shoe fund.” To conceal their scheme, Dunham maintained an LLC through which he claimed to provide consulting and brokering services. Dunham negotiated kickbacks and fees from Ground Zero and other Jacklin suppliers through the LLC’s business checking account.
Dunham made his initial appearance in federal court today before U.S. Magistrate Judge Stacie F. Beckerman. He was released pending further court proceedings.
On July 7, 2021, Claypool was sentenced to three years in federal prison and three years’ supervised release after previously pleading guilty to conspiracy to commit wired fraud and money laundering.
On March 3, 2022, McCarthy was charged with conspiracy to commit wire fraud. He was arraigned on March 15, 2022 in Portland and released pending a two-day jury trial scheduled to begin on July 26, 2022.
In September 2021, in a separate criminal case, ProSeeds Marketing, Inc., a Willamette Valley grass seed distributor, pleaded guilty after knowingly concealing a scheme to defraud Jacklin. On November 29, 2021, the company was sentenced to a year of probation, a $5,000 fine, and more than $78,000 in restitution.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation and the U.S. Department of Agriculture Office of Inspector General. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Federal Jury Convicts Clackamas Man for Armed Robbery of PubRead the Press Release
PORTLAND, Ore.—On April 27, 2022, a federal jury in Portland found a Clackamas, Oregon man guilty for robbing a local public house at gunpoint and making off with five cartons of cigarettes.
Dustin Lee Henderson, 40, was found guilty of interfering with commerce with threats or violence; possessing a firearm in furtherance of, and 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, on November 22, 2019, Henderson robbed the Lighthouse Pub, a public house and deli located on 82nd Avenue in Clackamas. In video surveillance of the robbery, Henderson was seen handing the pub clerk a bag and taking five cartons of cigarettes. The pub’s owner chased Henderson through a parking lot when Henderson discharged a single round from his firearm, prompting the owner to stop the chase. Law enforcement later recovered a .22 caliber cartridge case near the site of the shooting.
Law enforcement later observed Henderson in a nearby mobile home lot and arrested him. Investigators executed a state search warrant on a mobile home where Henderson resided and recovered the stolen cigarette cartons, clothes worn by Henderson during the robbery, and a .22 pistol. A DNA analysis later linked Henderson to the seized firearm.
On January 22, 2020, a federal grand jury in Portland returned a three-count indictment charging Henderson with interfering with commerce with threats or violence, possessing a firearm in furtherance of a crime of violence, and illegally possessing a firearm as a convicted felon.
Henderson faces a maximum sentence of life in prison with a 10-year mandatory minimum sentence, a $250,000 fine and five years of supervised release.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with assistance from Oregon State Police and the Clackamas County Sheriff’s Office. Assistant U.S. Attorneys Cassady Adams, Craig Gabriel, and Suzanne Miles 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.
California Man Sentenced to Federal Prison for Role in Eastern Oregon Methamphetamine Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—A Vacaville, California man was sentenced to federal prison today for his role in a conspiracy to traffic large quantities of methamphetamine from California for distribution in Northeast Oregon and Southeast Washington.
Noel Lomas Murillo, 34, was sentenced to 60 months in federal prison and three years’ supervised release.
According to court documents, in November 2017, the Blue Mountain Enforcement Narcotics Team (BENT), Oregon State Police (OSP), and the FBI began investigating a drug trafficking organization led by Murillo’s brother, Abel Lomas Murillo, 28, of Weston, Oregon.
The investigation revealed that, as early as July 2017, Noel Murillo transported drugs from Vacaville to Klamath Falls, Oregon where a courier would deliver them to his brother. Abel Murillo also made multiple trips to Medford, Oregon to pick up drugs and transport them to Morrow and Umatilla Counties for distribution.
In January 2018, an OSP trooper stopped one of the Abel Murillo’s couriers, Luis Alberto Navarro, 33, of Boardman, Oregon, in a vehicle traveling near Klamath Falls en route to Umatilla County. A search of the vehicle revealed 11 concealed packages containing more than eight kilograms of methamphetamine.
In early May 2018, as the investigation continued, Abel Murillo enlisted another courier, Noel Ponce Villegas, 28, also of Boardman, to drive methamphetamine from Medford to Boardman. Investigators surveilled Abel Murillo as he traveled from Umatilla County to a storage locker in Medford and loaded a trailer pulled by his truck. Abel Murillo paid Villegas to drive his truck and trailer while he followed him to minimize his own risk. In the early morning hours of May 6, 2018, investigators from BENT, OSP and FBI stopped Abel Murillo and Villegas as they drove near mile marker 102 on Interstate 84.
Investigators seized 42 packages of methamphetamine, 36 of which were concealed in the false bottom of a propane tank. The packages contained approximately 17.6 kilograms of methamphetamine. Later the same day, investigators executed a search warrant at Abel Murillo’s residence, seizing 29 firearms and body armor. Pursuant to a separate search warrant, another 10 pounds of methamphetamine and five firearms were found in a Medford storage locker Abel Murillo had visited earlier in the weekend.
On December 19, 2019, a federal grand jury in Portland returned a two-count superseding indictment charging Noel Murillo with conspiring to possess with intent to distribute and distribute methamphetamine and possessing with intent to distribute methamphetamine. On September 28, 2021, he pleaded guilty to the conspiracy charge.
On May 7, 2018, Navarro pleaded guilty to possessing with intent to distribute methamphetamine. He will be sentenced on May 23, 2022.
On April 15, 2019, Abel Murillo pleaded guilty to conspiring to possess with intent to distribute methamphetamine. On September 10, 2019, he was sentenced to 235 months in federal prison and five years’ supervised release.
On April 18, 2019, Villegas pleaded guilty to possessing with intent to distribute methamphetamine. On December 16, 2020, he was sentenced to time served and three years’ supervised release.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by BENT, OSP, and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Seized methamphetamine in vehicle trunk.U.S. Attorney's Office Joins in Recognizing 41st Annual Crime Victims' Rights Week, April 24-30, 2022Read the Press Release
PORTLAND, Ore.— Every April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW) to honor crime victims, promote their rights and recognize victim advocates. This year’s observance, the 41st annual commemoration, takes place April 24-30, 2022 with the theme: Rights, access, equity for all victims.
The U.S. Attorney’s Office joins its federal, state, local and tribal law enforcement partners in taking this opportunity to highlight the importance of providing necessary services at the earliest possible stage of victimization and litigation. Early intervention helps prevent further victimization and encourages victim involvement in the criminal justice system, mitigating the cycle of violence and restoring hope for the future.
“Supporting and seeking justice on behalf of crime victims is central to the mission of the U.S. Attorney’s Office. We see unbelievable examples of victim courage nearly every day in the work we do. Their persistence and resolve, often in the face of incredible adversity, motivates all of us in federal law enforcement to continue vigorously advocating on their behalf,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local, and tribal agencies host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, several national events are returning in-person, but will continue to feature livestream feeds. On the evening of April 28th, a candlelight vigil will be held on the National Mall near the U.S. Capitol from 3:30-4:30 pm PDT. On April 29th, the National Crime Victims’ Service Award Ceremony will be held at Constitution Gardens National Park on the National Mall from 12:00-2:00 pm PDT. To access a livestream feed for either event, please visit ovc.ojp.gov/live.
OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s events and in other victim-related observances throughout the year. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov. For ongoing updates from OVC and ideas throughout the year on how you can support victims, please subscribe to OVC’s email notifications at https://ovc.ncjrs.gov/ncvrw/subscribe/.
If you or someone you know are in immediate danger, please call 911. If you believe you’ve been the target or victim of a crime, please contact your local law enforcement agency or your nearest FBI field office immediately. The FBI Portland Field Office can be reached at (503) 224-4181 or by submitting tips online at tips.fbi.gov.
Southern Oregon Man Sentenced to Federal Prison for Assaulting Bureau of Land Management Employee with a Deadly WeaponRead the Press Release
MEDFORD, Ore.—A southern Oregon man was sentenced to federal prison today for assaulting a Bureau of Land Management (BLM) employee with a deadly weapon while the employee was taking photos of a campsite the man occupied on BLM property in Josephine County, Oregon.
Scott Dye, 56, was sentenced to time served and three years’ supervised release. Dye was in custody from the time of his arrest in June 2020 until his release after pleading guilty in December 2021.
According to court documents, on May 31, 2020, Josephine County Sheriff’s Office deputies and emergency personnel responded to an overturned school bus located on BLM property. Dye was identified as the driver and owner of the bus. On June 6, 2020, a BLM officer contacted Dye and told him he had 14 days to vacate the bus property.
From June 6, 2020 through June 16, 2020, Dye enlisted the aid of both BLM officers and civilians on multiple occasions to move his overturned bus. Throughout this time, Dye explained to witnesses that he was being harassed and intimidated by local civilians who did not want him there. On June 15, 2020, multiple individuals threw rocks at Dye and told him that he needed to leave. Dye told a BLM employee he was being harassed and expressed his desire to remove the bus from the crash site and vacate the area as soon as possible.
On the morning of June 17, 2020, a BLM employee was travelling in a government vehicle on official business and stopped near Dye’s encampment to take some photos. After taking two photos, the employee heard the rear driver side window of his vehicle shatter. Realizing he was being shot at, the employee opened his driver door and entered the vehicle. As soon as he shut the door, a second round struck the steering wheel of the vehicle sending shrapnel into the employee’s hand. The employee also sustained minor abrasions on his ear from flying glass. The employee quickly departed the scene and called 911.
Less than an hour after the shooting, Josephine County sheriff deputies and BLM officers observed Dye walking on a BLM road near the encampment and detained him. Dye told the officers he owned the bus and was returning from a walk. When asked if he possessed any guns in the camp, Dye declined. Dye was eventually driven to and released in Merlin, Oregon and instructed not to the return to the bus. He was arrested again later the same day by BLM officers.
On the same day as the shooting, FBI and BLM agents executed a federal search warrant on the bus and surrounding camp site. They found a .223 caliber shell casing on the ground near the bus and an empty black rifle case and .223 magazine inside the bus near Dye’s sleeping pad. From the rear of the bus where the spent shell casing was found, agents observed a direct line of site to the location where the BLM employee’s vehicle was struck by gunfire earlier that day. A ballistics analysis later conducted by the FBI concluded that three shots were fired at an upward trajectory from Dye’s bus toward the BLM employee and his vehicle
On June 18, 2020, Dye was charged by federal criminal complaint with assaulting a federal officer, camping longer than permitted on public lands, and disposing of garbage on public lands. Later, on July 20, 2021, a federal grand jury in Medford returned a three-count indictment charging Dye with assaulting a federal officer; attempting to murder a federal officer; and using, carrying, and discharging a firearm in furtherance of a crime of violence.
On December 10, 2021, Dye pleaded guilty to assaulting a federal officer.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by BLM and FBI with assistance from the Josephine County Sheriff’s Office. Assistant U.S. Attorneys Marco Boccato, Adam Delph, and Amy Potter prosecuted the case.
Photo of Dye's campsite and overturned bus Photo of the BLM truck Photo of shattered window of BLM vehicle Photo showing bullet damage to steering wheelEugene White Supremacist Sentenced to Federal Prison for Mailing Threatening CommunicationsRead the Press Release
EUGENE, Ore.—A Eugene area white supremacist was sentenced to federal prison today for mailing threatening communications to a former teacher whom he targeted in part because of her sexual orientation.
Gary Franklin, 58, was sentenced to 48 months in federal prison and three years’ supervised release.
“Mr. Franklin’s harassment of the victim in this case was hateful and downright disturbing. Further, the bigoted and racist ideology he espoused and lauded have no place in our community. Nobody should have to live in fear of depraved individuals like Mr. Franklin. Mailing threatening communications is a serious federal crime and will continue to be a top priority for our office,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
“There is no way to undo the damage Gary Franklin did to the victim and her family with his hateful, repulsive, and threatening behavior,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon. “The FBI hopes today’s prison sentence can provide them some sense of comfort. No one should ever be targeted or threatened because of who they are. This kind of cruel and hate-filled terror has no place in our community and it won’t be tolerated.”
“Hateful and racist speech hold no place in our society,” said Anthony Galetti, Inspector in Charge of the U.S. Postal Inspection Service Seattle Division. “The U.S. Mail remains one of the primary means of communication and commerce in our country, and Mr. Franklin took advantage of that to spread hate and fear to his victim. We hope today’s sentencing sends a clear message that these kinds of mailings will not be tolerated and the U.S Postal Inspection Service will continue to work towards that mission.”
According to court documents, between December 2020 and May 2021, Franklin sent two threatening letters to a former community college professor of his whom he targeted in part because of her sexual orientation. The first letter contained a printout of what appeared to be a deceased, mutilated female. Handwritten wording above and below the image included racial and sexual orientation slurs and stated, “What I’d like to do to you.” The second letter contained another photograph of a deceased, decapitated female in a black trunk. The handwritten wording around the image stated that the photograph represented Franklin’s fantasy of what he wanted to do to the victim.
A forensic analysis conducted by the Oregon State Police Laboratory found Franklin’s fingerprints on the first letter. In May 2021, the FBI subsequently executed a search warrant on Franklin’s Eugene residence. Agents found and seized body armor, a boot spike, multiple knives, collapsible batons, a monkey’s fist flail, a set of brass knuckles, a 12-gauge shotgun shell, metal chain mail, and a black trunk like one depicted in his second letter. Agents also uncovered piles of literature and handbooks on death, dismemberment, murder, torture, and sexually-motivated killings.
As the investigation continued, authorities discovered evidence that Franklin was a white supremacist and may have been motivated by white supremacist and neo-Nazi ideologies. Open source and social media research revealed that Franklin was the administrator of a membership website called Aryan Folk. Investigators also discovered a Twitter account for Aryan Folk with a bio stating “I run a website for White Nationalist[s].” While searching Franklin’s residence, agents also discovered multiple photographs of Franklin with items and clothing bearing Nazi and white supremacist symbols.
On May 20, 2021, a federal grand jury in Eugene returned a three-count indictment charging Franklin with stalking and mailing threatening communications. On January 4, 2022, Franklin pleaded guilty to two counts of mailing threatening communications.
U.S. Attorney Asphaug, Special Agent in Charge Ramsey, and Inspector in Charge Galetti made the announcement.
This case was investigated by the FBI and U.S. Postal Inspection Service. It was prosecuted by Adam E. Delph, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov. For immediate threats to life and safety, please call 9-1-1.
Pacific Northwest Environmental Extremist and Arsonist Pleads GuiltyRead the Press Release
A Pacific Northwest environmental extremist, arsonist and former fugitive pleaded guilty yesterday in federal court for his role in two arson conspiracies targeting commercial and government-owned animal processing facilities in Oregon and California.
Joseph Mahmoud Dibee, 53, pleaded guilty to conspiracy to commit arson and arson in the District of Oregon and conspiracy to commit arson in the Eastern District of California.
Yesterday’s plea also resolves Dibee’s pending criminal case in the Western District of Washington.
According to court documents, beginning in October 1996 and continuing through December 2005, Dibee and at least 15 other individuals affiliated with the Earth Liberation Front and Animal Liberation Front, loosely affiliated environmental extremist groups, knowingly conspired with one another to damage or destroy various commercial and government-owned properties.
Dibee and his co-conspirators held meetings to plan arsons of targeted sites, conducted research and surveillance of the sites and discussed their planned actions using code words and code names. The conspirators designed and constructed destructive devices which functioned as incendiary bombs to ignite fires and destroy targeted sites. During their self-described “direct actions,” the conspirators dressed in dark clothing and wore masks and gloves to disguise their appearances. Some conspirators acted as lookouts while others were responsible for placing, igniting or attempting to ignite the improvised incendiary devices.
On or about July 21, 1997, Dibee and others used incendiary devices to destroy the Cavel West Meat Packing Plant, a commercial slaughterhouse and meatpacking facility in Redmond, Oregon. Several years later, in October 2001, Dibee and others attempted to destroy the Bureau of Land Management’s Wild Horse Corrals, a government-owned facility used to remove wild horses from public lands located near Litchfield, California. The group’s attack on the facility caused the destruction of a barn and its contents.
Prior to the second incident, Dibee and others recruited co-conspirators and gathered supplies and fuel to make incendiary devices. The group used Dibee’s residence in Seattle to construct the devices and traveled from Seattle to Northern California in Dibee’s truck.
In 2006, after a long-running domestic terrorism investigation led by the FBI, a federal grand jury in Oregon indicted Dibee and 11 co-conspirators. Dibee and others were later indicted in the Eastern District of California and Western District of Washington. The conspirators, together known as “the Family,” were ultimately linked to more than 40 criminal acts between 1995 and 2001 and caused more than $45 million in damages.
Dibee fled the United States in December 2005. In late summer 2018, Cuban authorities arrested Dibee on an Interpol Red Notice. The Department of State including the U.S. Embassy in Havana, as well as the Department of Homeland Security including the U.S. Coast Guard and Immigration and Customs Enforcement assisted in returning Dibee to the United States. The Justice Department’s Office of International Affairs provided valuable assistance.
With his continued acceptance of responsibility, the government will recommend Dibee receive a sentence of 87 months in federal prison. He will be sentenced on July 27 by U.S. District Court Judge Ann Aiken in the District of Oregon.
As part of his plea agreement, Dibee has agreed to pay restitution to his victims as determined by the government and ordered by the court.
One of Dibee’s co-conspirators remains at large. Josephine Sunshine Overaker, an American citizen who is either 47 or 50 years old, is believed to have fled to Europe in late 2001. Overaker faces 19 felony charges including conspiracy to commit arson and destruction of an energy facility, attempted arson, and arson in the District of Oregon, the Western District of Washington, and the District of Colorado. The FBI continues to offer a reward of up to $50,000 for information leading to Overaker’s arrest.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and U.S. Attorneys Scott Erik Asphaug for the District of Oregon, Phillip A. Talbert for the Eastern District of California and Nicholas W. Brown for the Western District of Washington made the announcement.
This case was investigated by the FBI and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The U.S. Attorneys’ Offices for the District of Oregon, Northern District of California, and Western District of Washington, and the National Security Division’s Counterterrorism Section are prosecuting the case.
Pacific Northwest Environmental Extremist and Arsonist Pleads GuiltyRead the Press Release
PORTLAND, Ore.—A Pacific Northwest environmental extremist, arsonist, and former fugitive pleaded guilty today in federal court for his role in two arson conspiracies targeting commercial and government-owned animal processing facilities in Oregon and California.
Joseph Mahmoud Dibee, 53, pleaded guilty to conspiracy to commit arson and arson in the District of Oregon and conspiracy to commit arson in the Eastern District of California.
Today’s plea also resolves Dibee’s pending criminal case in the Western District of Washington.
“No matter the agenda, using violence to advance a social or political cause is a serious crime. Over a series of years, Mr. Dibee and his co-conspirators caused millions of dollars in damage to commercial and government-owned properties. Today, after many years on the run, Mr. Dibee admitted to his role in these schemes and will finally face justice,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
“It has taken more than 20 years for Joseph Dibee to face justice. The FBI and our law enforcement partners never gave up. From destroying evidence to fleeing the country, none of Mr. Dibee’s tactics stopped us from making sure he was held accountable for his malicious and destructive actions,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, beginning in October 1996 and continuing through December 2005, Dibee and at least 15 other individuals affiliated with the Earth Liberation Front and Animal Liberation Front knowingly conspired with one another to damage or destroy various commercial and government-owned properties.
Dibee and his co-conspirators held meetings to plan arsons of targeted sites, conducted research and surveillance of the sites, and discussed their planned actions using code words and code names. The conspirators designed and constructed destructive devices which functioned as incendiary bombs to ignite fires and destroy targeted sites. During their self-described “direct actions,” the conspirators dressed in dark clothing and wore masks and gloves to disguise their appearances. Some conspirators acted as lookouts while others were responsible for placing, igniting, or attempting to ignite the improvised incendiary devices.
On or about July 21, 1997, Dibee and others used incendiary devices to destroy the Cavel West Meat Packing Plant, a commercial slaughterhouse and meatpacking facility in Redmond, Oregon. Several years later, in October 2001, Dibee and others attempted to destroy the Bureau of Land Management’s Wild Horse Corrals, a government-owned facility used to remove wild horses from public lands located near Litchfield, California. The group’s attack on the facility caused the destruction of a barn and its contents.
Prior to the second incident, Dibee and others recruited co-conspirators and gathered supplies and fuel to make incendiary devices. The group used Dibee’s residence in Seattle, Washington to construct the devices and traveled from Seattle to Northern California in Dibee’s truck.
In 2006, after a long-running domestic terrorism investigation led by the FBI, a federal grand jury in Oregon indicted Dibee and 11 co-conspirators. Dibee and others were later indicted in the Eastern District of California and Western District of Washington. The conspirators, together known as “the Family,” were ultimately linked to more than 40 criminal acts between 1995 and 2001 and caused more than $45 million in damages.
Dibee fled the U.S. in December 2005. In late summer 2018, Cuban authorities arrested Dibee on an Interpol Red Notice. The U.S. Department of State, the U.S. Department of Homeland Security including the U.S. Coast Guard and U.S. Immigration and Customs Enforcement, and the U.S. Embassy in Havana assisted in returning Dibee to the U.S.
With Dibee’s continued acceptance of responsibility, the government will recommend a sentence of 87 months in federal prison. He will be sentenced on July 27, 2022 by U.S. District Court Judge Ann Aiken in the District of Oregon.
As part of his plea agreement, Dibee has agreed to pay restitution to his victims as determined by the government and ordered by the court.
One of Dibee’s co-conspirators remains at large. Josephine Sunshine Overaker, an American citizen who is either 47 or 50 years old, is believed to have fled to Europe in late 2001. Overaker faces 19 felony charges including conspiracy to commit arson, conspiracy to commit arson and destruction of an energy facility, attempted arson, and arson in the District of Oregon, the Western District of Washington, and the District of Colorado. The FBI continues to offer a reward of up to $50,000 for information leading to Overaker’s arrest.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Asphaug, and U.S. Attorneys Phillip A. Talbert of the Eastern District of California and Nicholas W. Brown of the Western District of Washington made the announcement.
This case was investigated by the FBI and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by the U.S. Attorney’s Offices for the District of Oregon, Northern District of California, and Western District of Washington, and the National Security Division’s Counterterrorism Section.
Portland Housekeeper Pleads Guilty to Wire Fraud after Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—A Portland area housekeeper pleaded guilty today for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Kimberly Aralene Wells, 40, a resident of Portland, pleaded guilty to one count of wire fraud.
According to court documents, by the summer of 2020, after Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance to millions of Americans suffering the economic effects of the COVID-19 pandemic, Wells devised a scheme to defraud the Small Business Administration (SBA) by fraudulently applying for CARES Act-authorized Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) using a fictitious shell company.
To perpetrate her scheme, Wells used her fictitious company, Kim’s Cleaning Inc., to apply for PPP loans from Itria Ventures LLC, an online commercial lending platform based in New Jersey. In her loan applications, Wells falsely claimed her business posted gross annual receipts of more than $600,000 and maintained an average monthly payroll of more than $19,000. In reality, Wells’ company existed in name only and had no employees.
As a result of her misrepresentations, in February 2021, Itria disbursed nearly $49,000 in PPP funds to Wells. Wells in turn used the funds to pay for various personal expenses, including travel and gambling. Between July 2020 and May 2021, Wells also submitted three fraudulent EIDL applications that were denied by SBA.
On November 11, 2021, a federal grand jury in Portland returned a three-count indictment charging Wells with wire fraud.
Wells faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. She will be sentenced on August 8, 2022 before U.S. District Court Judge Michael H. Simon.
As part of her plea agreement, Wells has agreed to pay $51,457 in restitution to Itria and SBA.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
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.
Warrenton Man Sentenced to 17 Years in Federal Prison for Sexually Exploiting Children OnlineRead the Press Release
PORTLAND, Ore.—A Warrenton, Oregon man was sentenced to 17 years in federal prison today for sexually exploiting at least two children he met online.
Kirk Richard Cazee, 60, was sentenced to 204 months in federal prison followed by a 99-year term of supervised release.
According to court documents, in 2010, the Oregon Department of Justice received a tip that child pornography was being exchanged with an email address later determined to belong to Cazee. After obtaining a search warrant for the email account, investigators located emails wherein Cazee pretended to be a teenage boy or young adult to manipulate and deceive his minor victims. Between September 2006 and March 2010, Cazee persuaded multiple minor victims under the age of 16 to produce and send him sexually explicit content. In at least one instance, Cazee mailed a web cam and teddy bear to a minor victim and convinced her to produce sexually explicit videos for him using the web cam.
On September 27, 2018, a federal grand jury in Portland returned a 10-count indictment charging Cazee with production, receipt, transportation and possession of child pornography. On April 27, 2021, he pleaded guilty to two counts of production of child pornography.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Scott Erik Asphaug for the District of Oregon and Special Agent in Charge Kieran L. Ramsey of the FBI’s Portland Field Office made the announcement.
This case was investigated by the Oregon Department of Justice Internet Crimes Against Children task force with assistance from the FBI Salem Child Exploitation Task Force, Clatsop County Sheriff’s Office and the Astoria Police Department. It was prosecuted by Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and Assistant U.S. Attorneys Natalie K. Wight and Rachel Sowray from 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 National Center for Missing & Exploited Children’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.
Portland Man Sentenced to Federal Prison for Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Benjamin Tifekchian, 48, was sentenced to 21 months in federal prison and five years’ supervised release. Tifekchian was also ordered to pay more than $910,000 in restitution, including more than $26,000 to the Small Business Administration (SBA).
According to court documents, in May 2019, Tifekchian incorporated Bencho Jewelry Inc. (Bencho) in the State of Oregon and served as the company’s sole owner and officer. Bencho never had any employees and never generated more than $500 in revenue in any calendar year.
After Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic, Tifekchian devised and perpetrated a scheme to defraud the SBA by fraudulently applying for CARES Act-authorized Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans on behalf of Bencho.
In EIDL applications submitted to SBA in April and August 2020, Tifekchian falsely claimed Bencho had generated as much as $758,000 in revenue, had been operating for 20 years, and employed 12 people. SBA denied both applications. In June 2020, Tifekchian successfully obtained more than $884,000 in PPP funding after falsely claiming Bencho employed 78 people and had an average monthly payroll of $353,698. SBA guaranteed the loan and paid Bank of America, the FDIC-insured loan issuer, more than $26,000 in fees.
Tifekchian used the PPP loan to pay for gambling, vacations, and other personal expenses. Suspecting fraud, Bank of America froze the loan funds, but only after Tifekchian had spent more than $68,000.
On July 13, 2021, a federal grand jury in Portland returned a two-count indictment charging Tifekchian with bank fraud and wire fraud. On January 25, 2022, he pleaded guilty to bank fraud.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI, U.S. Treasury Inspector General for Tax Administration (TIGTA), and the SBA Office of Inspector General. 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.
Oregon Man Sentenced for Production of Child PornographyRead the Press Release
An Oregon man was sentenced today to 17 years in prison for coercing and persuading multiple minors to send him sexually explicit photos and videos of themselves over the internet.
Kirk R. Cazee, 60, of Warrenton, was sentenced to 204 months in prison after pleading guilty to production of child pornography on April 28, 2021. Cazee was also sentenced to serve 99 years of supervised release and to register as a sex offender after completion of his prison term.
As described in court documents and testimony, in March 2010, a CyberTipline Report from the National Center for Missing and Exploited Children (NCMEC), identified an email address that had been involved in the exchange of child pornography. Law enforcement traced the email address back to Cazee’s residence. Further investigation showed that beginning in 2006 and continuing to 2010, Cazee engaged in email and text communications with multiple minor victims. During the communications, Cazee posed as a teenage boy and coerced the minors to take sexually explicit photos and videos of themselves and to send the content to Cazee.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Scott Erik Asphaug for the District of Oregon and Special Agent in Charge Kieran L. Ramsey of the FBI’s Portland Field Office made the announcement.
The case was investigated by the Oregon Department of Justice and the FBI.
Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Natalie Wight for the District of Oregon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org.
Gypsy Joker Outlaw Motorcycle Club Members Sentenced to Life in Prison for Kidnapping, Torturing, and Murdering Former Club MemberRead the Press Release
Two members of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) were sentenced to life in federal prison yesterday for kidnapping, torturing, and murdering a former club member.
GJOMC Portland clubhouse president Mark Leroy Dencklau, 61, of Woodburn, Oregon, and member Chad Leroy Erickson, 51, of Rainier, Oregon, received life sentences after being convicted at trial in December 2021 of murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death; and conspiracy to commit kidnapping, resulting in death. Additionally, Dencklau was found guilty of racketeering conspiracy.
According to court documents and trial testimony, the GJOMC is a criminal organization wherein members and associates maintain their position and status in the organization by participating in, directly or indirectly, various acts of violent racketeering activity including murder, kidnapping, robbery, extortion, narcotics trafficking, and witness tampering. From 2003 until his arrest in 2018, Dencklau served as the president of the GJOMC’s Portland chapter.
According to evidence presented at trial, on July 1, 2015, the body of Robert Huggins, an estranged member of the GJOMC Portland chapter, was found lying in a field in Clark County, Washington. Huggins’ body was badly beaten, and appeared to have been tortured prior to his death. Huggins was previously stripped of his club membership for allegedly stealing from the club and from Dencklau in particular. Following this robbery, Dencklau directed GJOMC members to find Huggins.
According to testimony presented at trial, on the evening of June 30, 2015, Dencklau and others kidnapped Huggins from a residence in Portland and transported him to a rural property in Southwest Washington. Over the course of several hours, Huggins was severely beaten and tortured. He sustained numerous injuries to his head and face, including a fractured skull, as well as lacerations to his chest and torso. Trial evidence showed that Erickson, who took part in the torture of Huggins, slashed Huggin’s tattoo with a knife and then stabbed him in the leg. He then helped load Huggins into a vehicle and left him in a field. A medical examiner ruled that Huggins’ death was caused by multiple blunt and sharp force injuries.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Scott Erik Asphaug for the District of Oregon, and Special Agent in Charge Jonathan T. McPherson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Seattle Field Division made the announcement.
This case was investigated by the Portland Police Bureau and ATF, with assistance from the Organized Crime Drug Enforcement Task Force (OCDETF), U.S. Marshals Service, IRS-Criminal Investigation, the Clark County Sheriff’s Office, Oregon State Police and the Oregon and Washington State Crime Labs.
Trial Attorney Damaré Theriot of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Leah K. Bolstad and Steven T. Mygrant for the District of Oregon prosecuted the case.
Former WNBA Player Indicted for Assaulting Dating Partner on the Umatilla Indian ReservationRead the Press Release
PORTLAND, Ore.—A federal indictment was unsealed today charging a former WNBA player with assaulting an intimate dating partner on the Umatilla Indian Reservation.
Shoni Iman Schimmel, 29, of Pendleton, Oregon, has been charged with assault by strangulation of an intimate dating partner and assault resulting in substantial bodily injury.
According to the indictment, on June 13, 2021, Schimmel allegedly strangled her partner on the Umatilla Indian Reservation. Schimmel further assaulted her partner causing substantial bodily injury.
Schimmel was arrested by federal authorities today and made her initial appearance in federal court. She was arraigned, pleaded not guilty, and released pending a two-day jury trial scheduled to begin on June 14, 2022.
If convicted, Schimmel faces a maximum sentence of 15 years in federal prison, three years’ supervised release, and a fine of $250,000.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI and the Umatilla Tribal Police Department. Assistant U.S. Attorney Ashley R. Cadotte is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Domestic violence is a serious crime that includes both physical and emotional abuse. It is frequently hidden from public view. Many survivors suffer 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 at 1-800-799-SAFE (7233). Many communities throughout the country have developed support networks to assist survivors in the process of recovery.
The StrongHearts Native Helpline offers culturally specific support and advocacy for American Indian and Alaska Native survivors of domestic violence. Please call 1-844-762-8483 or visit www.strongheartshelpline.org for more information.
Gypsy Joker Outlaw Motorcycle Club Members Sentenced to Life in Prison for Kidnapping, Torturing, and Murdering Former Club MemberRead the Press Release
PORTLAND, Ore.—Two members of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) were sentenced to life in federal prison today for kidnapping, torturing, and murdering a former club member.
GJOMC Portland clubhouse president Mark Leroy Dencklau, 61, of Woodburn, Oregon and Portland clubhouse member Chad Leroy Erickson, 51, of Rainier, Oregon, received the life sentences after being convicted at trial in December 2021 of murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death; and conspiracy to commit kidnapping, resulting in death. Additionally, Dencklau was found guilty of racketeering conspiracy.
“Mark Dencklau and Chad Erickson will rightfully serve the rest of their lives in federal prison. These men prided themselves in using violence to intimidate others and increase their power and influence among club members and rivals. Organized violent crime has no place in Oregon and will not be tolerated. Today’s sentences were years in the making and required a dedicated and coordinated law enforcement effort. We are grateful to all the law enforcement agencies who participated in bringing these men to justice and exposing the Gypsy Jokers as the ruthless, violent gang they are,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
“The heinous nature of these crimes truly warrant these life sentences,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “ATF has vigorously investigated, and will continue to investigate, these outlaw motorcycle gangs when they perpetrate criminal acts.”
According to court documents and trial testimony, the GJOMC is a hierarchical criminal organization wherein members and associates maintain their position and status in the organization by participating in, directly or indirectly, various acts of violent racketeering activity including murder, kidnapping, robbery, extortion, narcotics trafficking, and witness tampering. Since the 1980s, the club has been active in several states including Oregon and Washington and, until recently, operated six clubhouses in the Pacific Northwest. The club also has international chapters in Germany, Australia, and Norway.
From 2003 until his arrest, Dencklau served as the president of the club’s Portland chapter. The GJOMC also oversaw several support clubs in Oregon and Washington including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club. Support club members conducted criminal activities in support of the GJOMC and served as a source of new members and revenue for the club.
On July 1, 2015, the body of Robert Huggins, an estranged member of the GJOMC Portland chapter, was found lying in a field in Clark County, Washington. Huggins’ body was badly beaten, and he appeared to have been tortured prior to his death. Huggins was previously stripped of his club membership for allegedly stealing from the club and, after breaking into Dencklau’s Woodburn residence, tying up Dencklau’s girlfriend and stealing multiple firearms. In the days and weeks following this robbery, Dencklau directed GJOMC members to find Huggins.
Several government witnesses testified at trial to Dencklau, Erickson, and their co-defendants’ roles in the revenge kidnapping, torture, and murder of Huggins. On the evening of June 30, 2015, Dencklau and others kidnapped Huggins from a residence in Portland and transported him to a rural property in Southwest Washington. Over the course of several hours, Huggins was severely beaten and tortured. He sustained numerous injuries to his head and face, including a fractured skull; lacerations to his chest and torso; and removed nipples. A local medical examiner ruled that Huggins’ death was caused by multiple blunt and sharp force injuries.
On June 28, 2018, a federal grand jury in Portland returned a four-count indictment charging Dencklau; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 40, of Portland, with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death and conspiracy to commit kidnapping, resulting in death.
Later, on November 29, 2018, Dencklau; Fisher; Erickson; Kenneth Earl Hause, 64, of Aumsville, Oregon; Ryan Anthony Negrinelli, 36, of Gresham, Oregon; and Joseph Duane Folkerts, 61, of Battleground, Washington, were charged by superseding indictment with racketeering conspiracy.
In December 2021, the federal jury who convicted Dencklau and Erickson acquitted Erickson and Hause, the GJOMC national president, of racketeering conspiracy.
On April 12, 2022, after previously pleading guilty, Pribbernow was sentenced to 140 months in federal prison. Fisher, Negrinelli, and Folkerts have also pleaded guilty and are awaiting sentencing.
U.S. Attorney Asphaug and Special Agent in Charge McPherson made the announcement.
This case was investigated by the Portland Police Bureau and ATF, with assistance from the U.S. Marshals Service, IRS-Criminal Investigation, the Clark County Sheriff’s Office, Oregon State Police, and the Oregon and Washington State Crime Labs. Leah K. Bolstad and Steven T. Mygrant, Assistant U.S. Attorneys for the District of Oregon, prosecuted the case with Damaré Theriot, Trial Attorney for the Criminal Division’s Organized Crime and Gang Section.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the District of Oregon’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement, community organizations, and local community leaders to prevent and deter future criminal conduct.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Portland Gang Member Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—A former member of Portland’s Hoover Criminal Gang was sentenced to federal prison today for illegally possessing a firearm as a convicted felon.
Javontae Nabien Gibson, 28, of Portland, was sentenced to 36 months in federal prison and three years’ supervised release.
According to court documents, as part of a federal racketeering investigation of the Hoover Criminal Gang, law enforcement obtained photos Gibson, a convicted felon, was posting online as advertisements for the sale of firearms and drugs. In August 2020, investigators executed a search warrant on Gibson’s northeast Portland apartment. They found and seized six handguns, two rifles, more than a dozen magazines, hundreds of rounds of ammunition, and approximately $5,000 in cash.
On August 19, 2020, a federal grand jury in Portland returned an indictment charging Gibson with illegally possessing a firearm as a convicted felon. On November 15, 2021, he pleaded guilty to the single charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Portland Police Bureau, Multnomah County Sheriff’s Office, Gresham Police Department, and FBI. 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.
Eugene Felon Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
EUGENE, Ore.—A Eugene man on supervised release for a drug trafficking conviction was again sentenced to federal prison today after threatening to shoot at an apartment and then driving to the apartment with a loaded assault rifle.
Billy Lynn Brosowske, 48, was sentenced to 120 months in federal prison and three years’ supervised release.
According to court documents, on February 11, 2020, Brosowske sent a series of threatening messages to a person he knew. Brosowske threatened to shoot at the person’s apartment if Brosowske’s ex-girlfriend was found to be inside. In one message, Brosowske admitted to knowing there were young children in the apartment who could be placed in “harms (sic) way.”
Officers from the Eugene Police Department responded immediately and located Brosowske’s truck near the apartment. Officers searched the truck pursuant to a state search warrant and located a loaded assault rifle with a chambered round and its safety turned off. Law enforcement arrested Brosowske two weeks later in The Dalles, Oregon, and he was taken into federal custody for violating his federal supervised release after a previous drug trafficking conviction.
On August 20, 2020, a federal grand jury in Eugene returned an indictment charging Brosowske with illegally possessing a firearm as a convicted felon. On November 10, 2021, he pleaded guilty to the single charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Eugene Police Department. It was prosecuted by Jeffrey Sweet and Will McLaren, Assistant U.S. Attorneys for the District of Oregon, in close coordination with Erik Hasselman, Senior Prosecutor for the Lane County District Attorney’s Office, who is prosecuting Brosowske for state crimes arising from this incident.
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.
Portland Man Sentenced to Federal Prison for Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—On March 30, 2022, a Portland man was sentenced to federal prison for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Eric Wade Lysne, 35, was sentenced to 30 months in prison and three years’ supervised release.
According to court documents, in April 2020, Lysne devised and perpetrated a scheme to defraud the Small Business Administration (SBA) and various financial institutions by fraudulently applying for and obtaining Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans using false borrower information. Lysne created fictitious entities, including Paradigm Consulting Groups (Paradigm), on whose behalf he applied for and received the loans.
In May 2020, Lysne applied for an EIDL, falsely claiming Paradigm employed 10 individuals in the agriculture sector and grossed nearly $1 million for the twelve-month period ending in January 2020. Lysne also falsely claimed that he, as the applicant, had not been convicted of any felonies in the last five years when, in fact, he had been in prison for nearly a year following a May 2019 felony conviction in Washington County, Oregon, and was then on post-prison supervision.
In early June 2020, SBA disbursed a $147,400 EIDL to Paradigm through Lysne’s personal bank account. The deposit was followed by an additional $10,000 advance paid several weeks later. After receiving the funds, Lysne spent them on various personal expenses, including travel bookings and numerous cash withdrawals.
In April 2021, Lysne applied for an increase in his EIDL balance, seeking to borrow an additional $302,600. The application was pending when Lysne was indicted in May 2021. Around the same time, Lysne also applied for a $50,000 PPP loan on Paradigm’s behalf from a bank in Logan, Utah. In the application, Lysne again falsely claimed he had not been convicted of any recent felonies. He further falsely represented that Paradigm employed two individuals and had an average monthly payroll of $20,000. Based on Lysne’s fraudulent misrepresentations, the bank approved the loan application in part and disbursed a $27,700 loan to Lysne.
Lysne made similar misrepresentations in five other successful PPP loan applications to various lenders. All told, Lysne fraudulently procured $360,467 in COVID-relief loans. He was ordered to pay that amount in restitution to the SBA and victim PPP lenders, and the court also ordered Lysne to forfeit an additional $185,100 to the United States Treasury.
On May 19, 2021, a federal grand jury in Portland returned a two-count indictment charging Lysne with bank fraud and wire fraud. On November 4, 2021, he pleaded guilty to both charges.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
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 prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Operator of Portland Animal Rescue Business Charged for Role in Wire Fraud Conspiracy, Illegally Dispensing Animal DrugsRead the Press Release
PORTLAND, Ore.—The operator of a Portland area animal rescue, rehabilitation, boarding, and adoption company is facing federal charges for her role in a conspiracy to defraud customers and for illegally dispensing animal drugs.
Tori Lynn Head, 26, has been charged by criminal information with conspiracy to commit wire fraud and dispensing animal drugs without proper labeling.
According to the information, in November 2019, Head and others started Woofin Palooza, an animal rescue business with facilities in Multnomah and Columbia County, Oregon. Head and others are alleged to have obtained pets with medical and behavioral issues from out-of-state and made them available for adoption to paying customers. Between December 2019 and January 2021, on more than 280 occasions, Head and others made material misrepresentations about the health and behavior of the animal offered for adoption. Based on these misrepresentations, customers paid Woofin Palooza more than $82,000 in adoption fees. During this same time period, Head sold customers mislabeled animal drugs in violation of the Food, Drug, and Cosmetic Act.
Head made his first appearance in federal court today before U.S. Magistrate Judge Jolie A. Russo. He was released pending further court proceedings.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Food and Drug Administration (FDA) with assistance from the Portland Police Bureau. Assistant U.S. Attorney Ethan Knight is prosecuting the case.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Indiana Man Pleads Guilty to Possessing Unregistered Destructive Devices During Portland ProtestsRead the Press Release
PORTLAND, Ore.—An Indiana man pleaded guilty today in federal court after repeatedly and intentionally jeopardizing the lives of police officers, destroying public property, and encouraging others to commit violence during protests in Portland.
Malik Fard Muhammad, 25, pleaded guilty to two counts of possessing unregistered destructive devices.
According to court documents, in late summer 2020, Muhammad traveled to Portland with his girlfriend from their home in Indianapolis to violently engage in area riots. On September 5, 2020, during a large civil disturbance in east Portland, demonstrators threw dangerous objects at police, including commercial grade fireworks, Molotov cocktails, and bottles. At least one demonstrator was seriously burned by a Molotov cocktail thrown in the direction of police. Muhammad was present at this event and provided baseball bats to members of the crowd.
Following Muhammad’s arrest in October 2020, law enforcement seized his cell phone and found messages where he bragged about providing the baseball bats to other rioters. The cell phone also contained a shopping list including common supplies used to make a Molotov cocktail. The day after the demonstration, police located a discarded baseball bat with a Goodwill price tag in the area where the event occurred. Police found the Goodwill store where the bat was purchased and obtained surveillance footage showing Muhammad and his girlfriend buying the bats and several “growler” bottles.
On September 21, 2020, during a large demonstration near the Multnomah County Sheriff’s Office Penumbra Kelly Building, law enforcement observed an individual light on fire and throw an object toward the building. One officer observed the burning object flying through the air toward his vehicle, landing approximately 15 feet from a police sound truck. Officers recovered the unexploded device. It consisted of a yellow glass growler with a Goodwill sticker on the bottom, a cloth wick, and an ignitable liquid. It was later determined that the growler was one of the items purchased at Goodwill by Muhammad and his girlfriend. A DNA analysis also linked the growler to Muhammad.
On September 23, 2020, protesters set fire to and broke windows at the Multnomah County Justice Center. When officers advanced toward the crowd, an individual threw a Molotov cocktail in a large yellow growler that landed in front of the officers, shattered, and exploded into a large fireball. While some officers were able to move out of the way, one officer’s leg caught fire. Several videos obtained by law enforcement show Muhammad throwing the explosive device.
On October 11, 2020, police were monitoring a protest involving approximately 250 people in downtown Portland. Members of the group began heavily vandalizing various buildings and parks including the Oregon Historical Society, Portland State University, a Starbucks coffee shop, and a Bank of America branch, among others. Law enforcement observed Muhammad in the crowed dressed in black. Portland Police officers reported observing Muhammad using a metal baton to smash the windows of several buildings and arrested him after a short chase. Muhammad possessed a loaded handgun magazine in his pocket. A loaded handgun matching the magazine found on Muhammad’s person was found discarded near the location of his arrest.
Muhammad’s trip to Portland does not appear to be an isolated event. Investigators obtained evidence that he traveled to Louisville, Kentucky in August 2020 to meet with anti-government and anti-authority violent extremist groups to conduct firearms and tactical training. Investigators also obtained several public social media posts by Muhammad promoting violence toward law enforcement in other cities including Kenosha, Wisconsin, and Chicago.
On May 28, 2021, Muhammad was charged by criminal complaint with possession of unregistered destructive devices, engaging in civil disorder and obstructing law enforcement, and using explosives to commit a felony. Later, on June 15, 2021, a federal grand jury in Portland indicted Muhammad on the same charges.
Possessing an unregistered destructive device is punishable by up to 10 years in federal prison per count of conviction. With Muhammad’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a sentence of 10 years in federal prison. He will be sentenced on June 21, 2022 before U.S. District Court Chief Judge Marco A. Hernandez.
Today’s change of plea is part of a global resolution of Muhammad’s federal and state criminal cases. He is scheduled to plead guilty and be sentenced in Multnomah County Circuit Court tomorrow.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
The Portland Police Bureau, FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives are investigating the case. Assistant U.S. Attorney Adam E. Delph is prosecuting the case.
12 Members of Drug Trafficking Organization Indicted for Distributing Counterfeit Oxycodone Pills Containing Fentanyl, Laundering ProceedsRead the Press Release
PORTLAND, Ore.—12 people are facing federal charges for conspiring to distribute counterfeit oxycodone pills containing fentanyl in the Pacific Northwest, and laundering millions in drug proceeds.
According to court documents, beginning in fall 2021, U.S. Drug Enforcement Administration (DEA) agents based in Portland began investigating a drug trafficking organization led by Luis Antonio Beltran Arrendondo, 32, of Las Vegas, who was suspected of importing counterfeit oxycodone pills containing fentanyl and heroin from Mexico into California, and transporting it to Oregon and Washington State for distribution. Arrendondo formerly resided in Oregon, but later relocated to Las Vegas with his significant other and accomplice Jacqueline Paola Rodriguez Barrientos, 41. Barrientos was also indicted as the chief money launderer for the Arrendondo organization.
As the investigation continued, agents interdicted couriers transporting fentanyl pills and heroin to Oregon. They executed search warrants in Hillsboro, Portland, Tualatin, and Wilsonville, Oregon; Fresno and Hawaiian Gardens, California; and Las Vegas. In total, these enforcement actions resulted in the seizure of approximately 115,000 counterfeit oxycodone pills suspected to contain fentanyl and stamped “M/30”, 41 pounds of methamphetamine, and more than 57 pounds of heroin.
A parallel financial investigation revealed that Barrientos laundered money generated by the Arrendondo organization through the Mazatlán Beauty Salon in Tualatin, Oregon and by buying real estate. The real estate purchases were made with cashier’s checks funded by large cash deposits. Currency Transaction Reports generated by several banks showed that Barrientos made frequent cash deposits ranging from $10,000 to more than $373,000 into accounts held in her name or the name of her salon. These deposits totaled more than $3.5 million during a 9-month period in 2021. Since February 2021, members of the Arrendondo organization purchased a total of nine residential properties in Oregon and Nevada with an estimated total value of more than $4.6 million. All nine properties were purchased outright with no mortgages.
On February 17, 2022, DEA agents arrested Arrendondo and Barrientos at their Las Vegas residence. Agents found and seized two luxury vehicles, several loose receipts documenting high-end retail purchases, credit card statements documenting more than $16,000 spent on tickets to attend a professional boxing match, and other evidence memorializing the couple’s high-end lifestyle.
On March 15, 2022, Arrendondo and Barrientos made their initial appearances in federal court. Both are in custody pending trial. All ten of Arrendondo and Barrientos’ co-conspirators have been arrested and are also pending trial in the District of Oregon.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by DEA with assistance from the FBI, Homeland Security Investigations (HSI), IRS-Criminal Investigation (IRS:CI), Tigard Police Department, and Oregon State Police. 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 defendants are presumed innocent unless and until proven guilty.
Opioid abuse affects communities across the nation. Provisional data from the Centers for Disease Control and Prevention (CDC) indicate that there were more than 100,000 drug overdoses in the U.S. during the 12-month period ending April 2021, an increase of nearly 29% from the previous 12-month period. 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 U.S.
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 or someone you know is 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.
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