District of Oregon
Press releases recorded for this federal judicial district.
Jury Convicts Portland Gang Affiliate of Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—On December 10, 2021, a federal jury found a known Portland gang affiliate guilty for illegally possessing a firearm as a convicted felon.
Kneko Tyray Moore, 33, a resident of Portland and an affiliate of the Rollin’ 60s Crips gang, was found guilty of one count of felon in possession of a firearm.
According to court documents, on the evening of April 17, 2020, the Portland Police Bureau (PPB) received numerous calls from neighbors about an unruly gathering at the Lone Fir Cemetery in Southeast Portland. Callers reported that approximately 20 people were having a barbeque and playing loud music. The gathering occurred during the height of the COVID-19 pandemic in direct violation of the governor’s stay-home order.
An undercover officer reported seeing known members or associates of the Rollin’ 60s Crips gang, including Moore, at the gathering. Six of the gathering attendees, also including Moore, were on state or federal supervision following felony weapons convictions. When marked police cars arrived on scene, Moore quickly left the group and walked toward a black sedan. Moore entered the vehicle and sped away, nearly hitting a tree and an unmarked police vehicle.
Two officers then assigned to PPB’s Gun Violence Reduction Team followed Moore as he left the cemetery and pulled him over after he almost struck another car. Both officers recognized Moore as a Rollin’ 60s affiliate and convicted felon and reported he was visibly nervous and trembling. Moore became agitated when the officers impounded his vehicle and was placed under arrest for interfering with an officer. When officers searched Moore’s vehicle, they found a loaded .40 caliber semi-automatic pistol with a chambered round on the front passenger floorboard.
On October 6, 2020, a federal grand jury in Portland returned a one-count indictment charging Moore with illegally possessing a firearm as a convicted felon.
Moore faces a maximum sentence of 10 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on April 11, 2022 before U.S. District Court Judge Karin J. Immergut. Moore, who was on supervised release in a prior federal firearm case, is also facing violation proceedings.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by PPB and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Gary Sussman, Jaclyn Jenkins, and Leah Bolstad, Assistant U.S. Attorneys for the District of Oregon.
Owner of Local Compounding Pharmacies Sentenced to Federal Prison for Tax Evasion and Health Care FraudRead the Press Release
PORTLAND, Ore.—A Southern California man who owned and operated two local compounding pharmacies was sentenced to federal prison today for evading the payment of approximately $5.5 million in personal income taxes and submitting false reimbursement claims to CVS Caremark, a national pharmacy benefit manager.
Matthew Hogan Peters, 38, was sentenced to three years in federal prison and three years’ supervised release. Peters was also ordered to pay more than $3,441,263 million in restitution to the IRS, in addition to back taxes Peters has already paid.
“Far too often, Matthew Peters bent and skirted the law to pad his pockets and fund a lavish lifestyle. Peters’ crimes, and the illicit actions of others like him, only serve to increase the cost of healthcare and prescription medications for ordinary Americans,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Healthcare fraud and tax evasion are serious federal crimes and will continue being handled as such by our office.”
“Health care fraud costs insurers and taxpayers tens of billions of dollars a year. Not only do government-funded programs—such as Medicare and Medicaid—take huge hits, but people in our community end up paying higher premiums for coverage. While neighbors and family members struggle to afford prescriptions and basic coverage, people like Mr. Peters are buying exotic homes and funding a lavish lifestyle,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
“Instead of providing honest pharmaceutical services, Mr. Peters instead focused his energies on a scheme designed to benefit only himself at the expense of the most vulnerable people in our communities,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Our country’s tax and health care systems are both essential to the well-being of all Americans, and IRS-CI is committed to protecting the integrity of these vital services.”
According to court documents, the U.S. Department of Health and Human Services’ Office of Inspector General, the Oregon Department of Justice’s Medicaid Fraud Unit, and other agencies pursued a multi-year investigation into alleged illegal kickback arrangements at compounding pharmacies owned by Peters and members of his family in several states. Two such pharmacies, Professional Center Pharmacy and Professional Center 205 Pharmacy, were located in Southeast Portland.
The investigation ultimately revealed that Peters had devised various indirect means of incentivizing healthcare providers to write prescriptions for compounded drugs—custom-mixed medications that generate outsized reimbursements from Medicare, Medicaid, and other healthcare-benefit programs—and to direct those prescriptions to his pharmacies for dispensing. These arrangements proved enormously profitable for Peters’ pharmacies.
Peters’s healthcare fraud conviction stemmed from his requests for reimbursements from CVS Caremark, a major pharmacy benefits manger based in Arizona. Peters sought reimbursements of approximately $3.4 million for medication his pharmacies had purportedly dispensed. In mid-2015, CVS Caremark audited Peters’s reimbursement claims and identified nearly a quarter-million dollars in potentially unwarranted reimbursements. Dozens of the discrepant claims lacked records proving customers’ receipt of medications.
In October 2015, seeking to resolve these discrepancies and avoid possible suspension from CVS Caremark’s network, Peters submitted to CVS Caremark 41 forged patient attestations, purportedly confirming individual patients’ receipt of prescriptions. CVS Caremark auditors saw that the patient attestations all bore the same unique digital code and, after further investigation, suspended Peters’ pharmacies from their network. A subsequent federal investigation confirmed that Peters had used Docu-Sign, an electronic signature application, from his personal computer to sign the attestations.
Peters greatly expanded his criminal liability by attempting to hide his pharmacy profits from the IRS. The IRS’s financial investigation into Peters revealed that he had generated nearly $14 million in gross income between 2014 and 2017. Peters developed several schemes to try and conceal his income and fraudulently decrease his federal income tax liability. Most of these schemes involved spending pharmacy profits on personal expenses and telling his accountant (and the IRS) that they were legitimate business expenses.
Peters’s purported business expenses included $3.3 million for property and construction in Belize; more than $5 million for personal residences in Laguna Beach and San Carlos, California and Incline Village, Nevada; and millions in cash transfers to straw entities and trust accounts in the names of others for Peters’ personal use. All told, between 2014 and 2017, Peters underreported his income tax liability by more than $5.4 million.
On December 19, 2019, a federal grand jury in Portland returned a two-count indictment charging Peters with healthcare fraud and aggravated identity theft. Later, on July 20, 2020, he was charged by superseding criminal information with healthcare fraud and tax evasion.
On August 4, 2020, Peters waived indictment and pleaded guilty to health care fraud and tax evasion.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI, IRS Criminal Investigation, the Offices of Inspectors General for the U.S. Postal Service and the U.S. Departments of Labor and Health and Human Services, the U.S. Postal Inspection Service, and the Defense Criminal Investigative Service. It was prosecuted by Assistant U.S. Attorneys Ryan W. Bounds and Seth D. Uram and Special Assistant U.S. Attorney Elizabeth Ballard Colgrove, for the District of Oregon.
Justice Department Awards More than $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
WASHINGTON— The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Oregon Criminal Justice Commission (CJC) was awarded $199,137 in PSN grant funds to administer in the District of Oregon.
The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.
“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”
“Local law enforcement agencies in Oregon are working tirelessly within their capability and resources to combat violent crime and ensure the safety of all Oregonians. Despite those efforts, gun violence in Portland, Gresham, and areas surrounding are at an all-time high. This year’s Project Safe Neighborhoods grant funds will be directed toward gun violence reduction efforts in those communities,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “The goal of Project Safe Neighborhoods is to reduce violent crime and victimhood across the U.S., including here in Oregon. It remains a top priority for our office and the entire federal law enforcement community.”
Grant funds will support new and existing crime-reduction and victim-support programs in the Portland-Gresham area. With BJA approval, CJC will begin the process of making subawards for PSN grant projects.
“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
For a list of all grantees, please visit: https://go.usa.gov/xe7Wr.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Douglas County Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
EUGENE, Ore.—A Winston, Oregon man was sentenced to federal prison today for possession with intent to distribute methamphetamine, which he had been selling in and around Douglas County, Oregon.
Steven Dwayne Lander, 60, was sentenced to 120 months in federal prison and five years’ supervised release.
According to court documents, over the course of several months, the Douglas County Interagency Narcotics Team (DINT) and the U.S. Drug Enforcement Administration (DEA) investigated Lander and his drug dealing in Douglas County. Following extensive surveillance, arrests of his customers and associates, and the monitoring of his movements, investigators executed multiple search warrants on Lander and his properties. More than 15 pounds of methamphetamine and a half pound of heroin were seized from his storage unit, vehicle, and person.
Lander has prior felony convictions for delivering and manufacturing controlled substances and illegally possessing a firearm as a convicted felon, and was previously sentenced to more than four years in prison.
On November 8, 2019, Lander was charged by criminal complaint and he was indicted on November 20, 2019. On November 7, 2021, Lander pleaded guilty to possession with intent to distribute methamphetamine.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by DEA and DINT. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, in close coordination with Douglas County Senior Deputy District Attorney Allison D. Eichmann.
Leader of International Firearm Trafficking Conspiracy Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Mexican national residing in Portland was sentenced to federal prison today for his leadership role in a conspiracy to illegally obtain hundreds of high-powered, semi-automatic rifles and high-grade firearms in and around Portland and smuggle them into Mexico for use by the Jalisco New Generation Cartel (CJNG).
David Acosta-Rosales, 51, was sentenced to 75 months in federal prison and three years’ supervised release.
“This case represents two important public safety issues. First, no state, regardless of its location and proximity to the U.S.-Mexico border, is beyond the reach of violent drug cartels. International drug trafficking may feel to most Americans like a distant, geopolitical issue with little connection to our own communities, but this could not be further from the truth. Second, every day across the U.S., drug traffickers and other criminals manipulate the legal process for obtaining firearms from licensed dealers in the U.S., of which there are hundreds of thousands. Our office will continue working closely with our law enforcement partners to prosecute anyone who attempts to illegally purchase or traffic firearms,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
“ATF will tirelessly investigate anyone who traffics in firearms,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “Whether they are organizing an international trafficking cell, as Acosta-Rosales was doing, or they are straw purchasing firearms for trafficking purposes, we will work to ensure that they are caught and, through the U.S. Attorney’s Office, prosecuted to the fullest extent of the law.”
According to court documents, since at least September 2019, Acosta-Rosales served as the leader of a hierarchical gun trafficking cell operating in the Portland area. In this role, Acosta-Rosales managed several co-conspirators who served as high-volume straw purchasers and recruiters of new straw purchasers. These associates would also oversee and liaise with lower-volume straw purchasers, who would, in turn, pass the guns they acquired back up to Acosta-Rosales’ direct reports.
Acosta-Rosales received orders and requests for semi-automatic rifles, high-grade firearms, and explosive devices from his “boss” in Mexico and other co-conspirators affiliated with CJNG. These co-conspirators were particularly interested and focused on obtaining high-powered, especially deadly firearms such as AR-15 and AK-47 platform rifles, semi-automatic .50 caliber rifles, and premium, military-style combat assault rifles.
Acosta-Rosales received hundreds of thousands of dollars to operate his scheme and recruited numerous straw purchasers to make the illegal gun purchases. One of Acosta-Rosales’ first recruits was his own young son who later withdrew himself from his father’s criminal enterprise. Before the illegally obtained firearms were transferred out of Oregon via courier, Acosta-Rosales himself participated in obliterating serial numbers on the guns and also recruited a co-conspirator to help obliterate serial numbers. Acosta-Rosales continued operating the conspiracy even after ATF agents arrested one of his co-conspirators and seized many of the group’s guns. In total, Acosta-Rosales facilitated the illegal purchase and transfer of approximately 150 guns to Mexico. He also acquired a grenade launcher and a .50 caliber tripod-mounted semi-automatic firearm that he intended to transfer to Mexico, but was arrested by federal agents before he could do so.
On October 6, 2020, a federal grand jury in Portland returned a 52-count indictment charging Acosta-Rosales and 10 associates with conspiracy, making false statements in connection with the acquisition of firearms, possessing and receiving firearms with obliterated serial numbers, and smuggling goods from the U.S.
Seven of Acosta-Rosales’ co-conspirators have pleaded guilty. Five have been sentenced and two are pending sentencing. The remaining three co-conspirators are pending trial.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by ATF and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Oregon Check Casher and Construction Company Operators Indicted in Payroll Tax Evasion SchemeRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland returned a five-count indictment today charging six individuals for their roles in a multiyear scheme to evade the payment of payroll and income taxes on the wages of construction workers.
David A. Katz, 45, of Tualatin, Oregon, the operator of Check Cash Pacific, Inc., a check cashing business with locations in the Portland area and Vancouver, Washington, is charged with conspiring with five individuals affiliated with Oregon-based construction companies to defraud the U.S. by facilitating under-the-table cash wage payments to construction workers to impede and obstruct the IRS’s ability to compute, assess, and collect payroll and income taxes due on the cash wages.
Additionally, Katz is charged with four counts of filing false currency transaction reports with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
Others charged with conspiracy to defraud the U.S. include Martin S. Elizondo, 46, also of Tualatin; Melesio Gomez-Rivera, 47, of Aloha, Oregon; Jorge Peraza, 49, and Natallie N. Graham, 46, both of Beaverton, Oregon; and Jose L. Altamirano, Sr., 60, of Bend, Oregon.
According to the indictment, from at least January 2014 and continuing through December 2017, Elizondo, Gomez-Rivera, and Peraza are alleged to have successfully evaded the employment tax obligations of their respective construction companies and assisted other construction companies do the same. To carry out the scheme, they cashed or had other individuals cash millions of dollars in payroll checks at various locations of Katz’s check cashing business, used the cash to pay construction workers under-the-table, and filed false business and payroll tax returns.
Altamirano is alleged to have used co-conspirators to cash payroll checks at Katz’s business to pay employees of his construction company under-the-table. Graham is alleged to have worked in the office of a subcontracting company used to facilitate and organize the unreported cash payments to workers.
In total, Katz and his co-conspirators cashed approximately $192 million in payroll checks, causing a combined employment and individual income tax loss of $68 million.
Katz, Elizondo, Gomez-Rivera, Peraza, and Graham will be arraigned on these charges in federal court in Portland on December 15, 2021.
Conspiracy to defraud the U.S. is punishable by up to five years in federal prison, a $250,000 fine, and three years’ supervised release. Filing false currency transaction reports is punishable by up to 10 years in federal prison, a $250,000 fine, and three years’ supervised release.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorneys Seth D. Uram and Gavin W. Bruce are prosecuting the case.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Local Man Faces Federal Charges for Hoax Bomb Threats Directed at Multiple Schools and a Hospital in OregonRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland returned an indictment today charging a former resident of Newberg, Oregon with calling in hoax bomb threats to three schools and one hospital in Oregon.
Sean Case McGinley, 40, has been charged with four counts of making interstate threats involving explosives and four counts of conveying false information and hoaxes about destructive devices.
According to court documents, on October 26, 2021, McGinley began making multiple calls to the Newberg-Dundee Police Department dispatch center in which he referenced putting a pipe bomb under a vehicle in Newberg. Officers checked the area McGinley referenced, but did not locate a bomb. Meanwhile, McGinley’s calls and phone number were recorded and determined to originate from the St. Louis, Missouri area. Investigators later learned that McGinley formerly resided in Newberg and had family in and around St. Louis.
On November 9, 2021, McGinley placed another call to the Newberg-Dundee dispatch center claiming that a pipe bomb had been placed in the vehicle tailpipe of a Newberg Municipal Court judge. A Newberg-Dundee police officer returned McGinley’s call and spoke with him about the alleged tip. During this discussion, McGinley told the officer that he hoped someone would place a pipe bomb in the judge’s vehicle tailpipe and that he believed the judge was worthless.
On the morning of November 12, 2021, the principal of Newberg High School contacted Newberg-Dundee police to report a potential bomb threat. The principal gave officers a voicemail from an unknown person claiming there was a pipe bomb in the school. Officers determined that the hoax threat was placed by McGinley and that it also originated in St. Louis. Later the same morning, McGinley called a similar threat into Sherwood High School. McGinley then called a school resource officer at Sherwood High School, identified himself, and provided information about a purported pedophilia ring in Sherwood.
Between November 18 and 23, 2021, McGinley called in at least eight additional bomb threats to various public and private institutions. On November 18 and 22, 2021, McGinley called in threats to St. Paul High School and an elementary school in Tigard, Oregon. On November 23, 2021 alone, he called in four separate threats to Fowler Middle School and Twality Middle School in Tigard, the Providence Newberg Medical Center, and Providence Sherwood Medical Plaza. The threat made to the Providence Sherwood Medical Plaza prompted the facility to evacuate ambulatory patients and staff.
Amidst McGinley’s late November threat spree, authorities sought and obtained a federal criminal complaint and arrest warrant against McGinley and, on November 24, 2021, FBI agents arrested him in St. Louis. McGinley made his first appearance in federal court in the Eastern District of Missouri on November 29, 2021 and was ordered detained pending transfer to the District of Oregon. The investigation into McGinley’s threats is ongoing.
Making interstate threats involving explosives is punishable by up to 10 years in federal prison, three years’ supervised release, and a fine of $250,000. Conveying false information and hoaxes about destructive devices is punishable by up to five years in federal prison, three years’ supervised release, and a fine of $250,000.
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 Newberg-Dundee, Tigard, and Sherwood Police Departments and the Marion County Sheriff’s Office. 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.
Pendleton Man Sentenced to Federal Prison for Assault with a Deadly Weapon, Distribution of MethamphetamineRead the Press Release
PORTLAND, Ore.—A Pendleton, Oregon man was sentenced to federal prison today for shooting a family member with a semi-automatic pistol and distributing methamphetamine.
Royce Francis Speedis, 34, was sentenced to 77 months in federal prison and three years’ supervised release.
According to court documents, in early March 2019, Speedis and co-defendant Lavella Ruth Thompson, 28, also of Pendleton, arranged to purchase methamphetamine on the Umatilla Indian Reservation. On March 7, 2019, three individuals drove to the reservation to meet and sell methamphetamine to Thompson. Thompson arrived in an SUV and tried to convince the three people to follow her to a second location to complete the sale. When they declined, Thompson returned to the SUV. Three men then exited the SUV with guns and opened fire into the sellers’ car. One passenger in the sellers’ car sustained non-life-threatening injuries after being struck in the back of the head.
The methamphetamine sellers provided conflicting accounts of Speedis’ involvement in the shooting. A ballistics analysis later linked a Ruger rifle recovered from Speedis’ family’s residence on the reservation to spent cartridge casings found at the shooting scene. However, no arrests were made following the shooting.
On April 17, 2019, Speedis and his sister engaged in an argument with their cousin on the reservation. When the cousin attempted to leave, Speedis pulled a black semi-automatic pistol from his waistband and fired a single round that traveled through his cousin’s right leg into his left leg.
On April 23, 2019, a federal grand jury in Portland returned a two-count indictment charging Speedis with assault with a deadly weapon and using a firearm in connection with a crime of violence. On August 19, 2020, Speedis was indicted a second time, along with Thompson, on one count each of conspiring with one another to distribute and possess with intent to distribute methamphetamine and interference with commerce by robbery.
One year later, on August 23, 2021, Speedis pleaded guilty to assault with a deadly weapon and conspiring to possess with intent to distribute methamphetamine.
On September 7, 2021, Thompson pleaded guilty to the conspiracy charge. She will be sentenced on December 10, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Umatilla Tribal Police Department and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Jury Convicts Gypsy Joker Outlaw Motorcycle Club Members on Racketeering ChargesRead the Press Release
PORTLAND, Ore.—On November 30, 2021, a federal jury in Portland found two members of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) guilty of kidnapping and murder in aid of racketeering for the 2015 kidnapping and murder of Robert Huggins, a Portland resident and 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, were found guilty 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.
The jury acquitted Erickson and GJOMC national president Kenneth Earl Hause, 64, of Aumsville, Oregon, of racketeering conspiracy.
“Organized crime will not be tolerated in the District of Oregon. Dencklau, Erickson and other members of the Gypsy Joker Outlaw Motorcycle Club prided themselves in using violence to intimidate others and bolster their sense of power and influence. The kidnapping, torture, and murder of Robert Huggins was a gruesome example of the lengths these men were willing to go to exert their authority over rivals and perceived enemies,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “A robust, coordinated law enforcement operation led to their arrest and prosecution. Our community is safer thanks to the dedication of all involved law enforcement agencies.”
“The heinous actions of this criminal organization clearly warranted this guilty verdict,” said Jonathan T. McPherson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Seattle Field Division. “ATF remains committed to combatting organizations like the Gypsy Jokers Outlaw Motorcycle Club that endanger our communities.”
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; Hause; Ryan Anthony Negrinelli, 36, of Gresham, Oregon; and Joseph Duane Folkerts, 61, of Battleground, Washington, were charged by superseding indictment with racketeering conspiracy.
Fisher, Negrinelli, Folkerts, and Pribbernow have all previously pleaded guilty to the conspiracy charge and are awaiting sentencing.
All defendants convicted face a maximum sentence of life in federal prison. Dencklau and Erickson also face mandatory minimum sentences of life in prison.
Acting 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.
Leader of Local Drug Trafficking Organization Pleads GuiltyRead the Press Release
PORTLAND, Ore.—A Mexican national residing in Oregon City, Oregon pleaded guilty today for his leadership role in a conspiracy to traffic large quantities of methamphetamine, heroin and fentanyl from Mexico for resale in Oregon and Washington State.
Victor Alvarez Farfan, 49, pleaded guilty to conspiring to possess with intent to distribute and distribute controlled substances and illegal reentry.
Farfan is the last of 23 defendants charged in the conspiracy to plead guilty. This is Farfan’s second federal conviction in the District of Oregon for drug trafficking and illegal reentry.
According to court documents, Farfan received approximately 20 kilograms of methamphetamine, half a kilogram of heroin and two kilograms of fentanyl from a drug cartel based in Michoacan, Mexico. He and his associates would then resell the methamphetamine and heroin in Hillsboro, Gresham, Portland and Hood River, Oregon, and Tacoma, Washington. Farfan also oversaw the manufacturing of crystal methamphetamine from its liquid form. As part of the conspiracy, one of Farfan’s co-conspirators, Eduardo Alvarez Farfan, 27, of Gresham, provided the two kilograms of fentanyl to a co-conspirator, Noe Antonio Machado-Madrano, 26, who had flown in from Baltimore, Maryland. Investigators arrested Machado-Madrano at a bus station and seized the fentanyl.
On October 17, 2018, a federal grand jury in Portland returned a nine-count indictment charging Farfan and 21 co-defendants with conspiracy to possess with the intent to distribute and distribute methamphetamine, heroin, and cocaine; 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, the Westside Interagency Narcotics (WIN) Task Force and the Clackamas County Interagency Task Force (CCITF) resulted in the arrest of Farfan and 17 co-defendants.
Later, on November 27, 2018, Farfan was charged in a second indictment with illegal reentry.
Farfan faces a maximum sentence of life in prison with a 10-year mandatory minimum sentence and a fine of $10 million or twice the gross gains or losses resulting from his offense. With Farfan’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a sentence of 180 months in federal prison when he is sentenced on February 15, 2022 before U.S. District Court Judge Michael H. Simon.
As part of the plea agreement, Farfan has agreed to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing and pay $100,000 to satisfy a forfeiture money judgment.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case is being 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, the Beaverton Police Department, the Hillsboro Police Department, the Tigard Police Department, the Oregon National Guard Counterdrug Program, and the FBI. CCITF includes representatives from the Clackamas County Sheriff's Office, Clackamas County Community Corrections, Oregon City Police Department, Canby Police Department, FBI and Homeland Security Investigations (HSI).
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.
Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
WASHINGTON— The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In Oregon, three cities were awarded a total of $625,000.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“I am pleased to join Attorney General Garland today in making this important announcement. At a time when many police departments in Oregon and across the country are experiencing reduced or stagnant budgets, I am pleased to see three local agencies receive the funding they need to hire additional officers. Effective community oriented policing programs require, first and foremost, adequate staffing,” said Acting U.S. Attorney Scott Erik Asphaug.
The following cities in Oregon received awards:
- City of Hermiston – $125,000
- City of John Day – $375,000
- City of Reedsport – $125,000
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based response to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit www.cops.usdoj.gov/chp. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
West Linn Man Sentenced to Federal Prison for Role in Real Estate, Agriculture, and Mining Investment SchemesRead the Press Release
PORTLAND, Ore.—A West Linn, Oregon man was sentenced to federal prison today for posing as a successful real estate developer, hemp seed cultivator, and owner of a precious metals mining venture to fraudulently obtain millions of dollars from individual investors and lenders.
David A Shelofsky, 53, was sentenced to 70 months in federal prison and three years’ supervised release.
“David Shelofsky tried every possible ploy to trick investors out of their money, and, unfortunately, was quite successful in doing so,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Federal law enforcement authorities will continue to pursue and prosecute bad actors who seek to steal from well-intentioned investors. Meanwhile, we strongly encourage people to think twice and do extensive research before pursuing unconventional investment opportunities like the ones peddled by this defendant.”
“David Shelofsky promised big returns on an eclectic array of investments, including real estate, precious metals, and hemp seed. In reality, his golden guarantees were nothing more than lies. Victim investors—most of whom have ties to Oregon—lost millions while their money funded Shelofsky’s lavish lifestyle,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
“IRS Criminal Investigation (IRS:CI) is committed to protecting the public from individuals like David Shelofsky who shamelessly steal and defraud,” said Special Agent in Charge Bret Kressin of IRS:CI. “Because financial crimes devastate communities, we will continue to investigate and bring to justice those who commit these crimes.”
According to court documents, beginning in 2013, in Oregon and elsewhere, Shelofsky knowingly and intentionally devised several different investment fraud schemes. Shelofsky falsely told prospective investors and lenders that he had successful real estate development projects in Bend, Oregon and West Linn and a successful hemp seed cultivation and distribution venture in West Linn. During the same time period, Shelofsky and two other individuals formed a precious metals mining operation that purportedly used a proprietary mining technique to extract precious metals from the sand tailings of other mining operations. While the group made minimal efforts to operate the venture, Shelofsky misled several investors about the status of the operation to fraudulently obtain funds.
Shelofsky made repeated and deliberate misrepresentations and false promises about the status and success of his various ventures, the purported returns investors would receive, and the existence of collateral pieces of real estate supposedly backing investments. Shelofsky employed the services of others to further his schemes and establish his credibility, including a lawyer to create legal documents and an assistant to open bank accounts in the names of several limited liability corporations. Shelofsky used investor funds for personal expenses and to support his own high standard of living. Dozens of individual investors and lenders lost millions of dollars as a result of Shelofsky’s schemes.
On June 5, 2020, Shelofsky was charged by criminal complaint with wire fraud and money laundering. Later, on October 20, 2020, a federal grand jury in Portland returned a 17-count indictment charging Shelofsky with wire fraud and money laundering. On August 26, 2021, he pleaded guilty.
A restitution hearing is scheduled for January 7, 2022 before U.S. District Court Judge Michael H. Simon.
Acting U.S. Attorney Asphaug, Special Agent in Charge Ramsey, and Special Agent in Charge Kressin made the announcement.
This case was investigated by the FBI and IRS Criminal Investigation. Assistant U.S. Attorney Claire M. Fay prosecuted the case. Assistant U.S. Attorney Katie DeVilliers served as forfeiture counsel.
Justice Department Awards $177 Million to Assist Crime Victims and Improve Public Safety in American Indian and Alaska Native CommunitiesRead the Press Release
PORTLAND, Ore.—On November 15, 2021, the Department of Justice announced that it will award more than $177 million to improve public safety and serve crime victims in American Indian and Alaska Native communities.
More than $73 million will be awarded to 84 different Tribal communities and commissions under the Coordinated Tribal Assistance Solicitation (CTAS), a streamlined grant application program managed by the Office of Community Oriented Policing Services (COPS Office) and the Office of Justice Programs (OJP). The CTAS program helps tribes apply for Tribal-specific grant programs seeking to enhance law enforcement and justice practices, expand victim services and sustain crime prevention and intervention efforts.
Of this total, $3.5 million will be awarded to three Oregon tribes and one Oregon tribal commission: the Confederated Tribes of the Grand Ronde Community of Oregon, the Coquille Indian Tribe, the Klamath Tribes, and the Columbia River Inter-Tribal Fish Commission.
The COPS Office also awarded $400,000 to Western Oregon University to develop a structured and Tribal-centered approach to enhancing the criminal justice system’s ability to address the tragic and ongoing trend of missing and murdered indigenous persons (MMIP).
The Office for Victims of Crime (OVC) will award an additional $104 million to more 140 tribes and Tribal programs across the country—including two Oregon tribes—under the Crime Victims Fund Tribal Victim Services Set-Aside program. The Cow Creek Bank of Umpqua Tribe of Indians and the Klamath Tribes will each receive $387,817 to fund culturally-appropriate victim services to meet the needs of their communities.
“American Indian and Alaska Native crime victims deserve the same access to services and the same level of support available to survivors in other communities,” said Associate Attorney General Vanita Gupta. “This administration, and this Department of Justice, are committed to fully discharging our responsibilities to Indian nations, especially to those who have experienced the pain and loss that follow victimization. These funds will help establish, expand and enhance services that are vital to recovery and healing.”
“Supporting and enhancing public safety in Tribal communities is a top priority for the U.S. Attorney’s Office in Oregon and has been for many years. We are very pleased to join the COPS Office, OJP, and OVC in announcing these important awards and congratulate all award recipients in Oregon,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
This announcement is part of the Justice Department’s ongoing commitment to increasing engagement, coordination and action on public safety in American Indian and Alaska Native communities.
Albany Drug Dealer Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—An Albany, Oregon man was sentenced to federal prison today for distributing heroin and methamphetamine in and around Linn County, Oregon.
Anthoni Joseph Bassetti, 28, was sentenced to 60 months in federal prison and four years’ supervised release.
According to court documents, in January 2020, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating Bassetti, a mid-level drug dealer who sold heroin and methamphetamine in and around Linn County. The same month, agents arranged and conducted two undercover drug deals with Bassetti. Following these operations, on March 6, 2020, agents executed a federal search warrant on Bassetti’s Albany residence, seizing user quantities of methamphetamine, heroin, and cocaine and seven firearms.
On March 3, 2020, Bassetti was charged by criminal complaint with distribution of methamphetamine and heroin. Later, on August 27, 2020, he was charged by criminal information with distribution of methamphetamine. On August 9, 2021, he waived indictment and pleaded guilty to the single charge.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by ATF with assistance from the Linn Interagency Narcotics Enforcement Team (LINE), which consists of investigators from the Albany, Lebanon, and Sweet Home police departments, Linn County Sheriff’s Office, Oregon State Police, and Oregon Army National Guard Counter Drug Task Force. Additional assistance was provided by the Corvallis Police Department and Benton County Sheriff’s Office Street Crimes Unit. Assistant U.S. Attorney William M. McLaren prosecuted the case.
Heroin is a leading cause of overdose deaths in the U.S. 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.
Oregon Man Charged with Federal Hate Crime After Attacking Gay ManRead the Press Release
EUGENE, Ore.—A Springfield, Oregon man has been charged with a federal hate crime after using the internet to target and brutally assault a gay man, because of his sexual orientation.
Daniel Andrew McGee, 22, has been charged by criminal complaint with a hate crime. The complaint alleges that McGee attempted to kill the victim.
According to court documents, McGee and his victim met using Grindr, a social media and networking application designed for, and used primarily by, gay men. On July 5, 2021, after agreeing to meet, McGee entered his victim’s apartment and proceeded to assault the man with a wooden club over a period of several minutes. Despite the victim’s pleas for McGee to stop, McGee continued striking the man repeatedly in the head with the club. The victim sustained life-threatening injuries and was transported to a local hospital.
Further investigation revealed that, in the weeks leading up to the attack, McGee used the internet to search for and view graphically violent anti-gay material, including videos of anti-gay attacks. McGee also used the internet to plan the assault, purchasing the weapon and other materials online. In addition, McGee searched online for suggestions about how to get away with murder and how murderers avoid getting caught.
On November 15, 2021, McGee was arrested by the FBI and made his initial appearance in federal court before a U.S. Magistrate Judge. He was ordered detained pending further court proceedings.
Assistant Attorney General Kristen M. Clarke of the Civil Rights Division and 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 Eugene Police Department. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon, and Cameron A. Bell, Trial Attorney for the U.S. Department of Justice’s Civil Rights Division.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Oregon Tax Cheat Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—An Oregon man was sentenced to federal prison today after failing to pay more than $1.7 million in personal income taxes in a complex tax evasion case dating back to 2001.
Robert Andrew Lund, of Lebanon, Oregon, was sentenced to 41 months in federal prison and three years’ supervised release.
According to court documents, in the mid 1980s, after working for several years as a computer engineer and programmer for the Hewlett Packard company, Lund moved to Oregon and started a private computer consulting company called Lund Performance Solutions (LPS). LPS’s clients included large businesses, school districts, and health care companies located throughout the U.S. In 1993, Lund paid $30,000 to an offshore trust promoter to establish layers of trusts to hide his LPS profits from the IRS. From 1994 to 1996, despite LPS being highly profitable, Lund reported almost no income on his personal income tax returns. Soon after, the IRS audited Lund and determined he owed more than $2.7 million in taxes plus penalties.
Lund used his untaxed profits to buy 90 acres of land outside Eugene, Oregon on which he built a 7,000 square foot house that was later appraised at $950,000. Lund, a small aircraft pilot, also built a private landing strip on the property. Lund also purchased the former city hall and post office building in Albany, Oregon, a trailer park with multiple rental units, and two rental houses. Lund ran LPS and several smaller businesses, including a health food store, a bookstore, and a scuba diving equipment and lessons company, from the building in Albany.
Lund challenged his tax assessments in U.S. Tax Court and the Ninth Circuit Court of Appeals. Both affirmed he owed the IRS unpaid taxes. In response, Lund stopped filing tax returns altogether and began creating many limited liability companies (LLC) and trusts to conceal his income and assets. During this time, Lund sought the assistance of a known tax protestor attorney from Georgia named Kyle Weeks. Weeks later surrendered his law license and was convicted for filing false tax returns.
Over the next decade, the IRS sent Lund dozens of letters, bills, and summonses for financial records. Lund replied with his own letters claiming he was not a U.S. citizen and therefore not subject to taxation or the IRS’s authority. During this same time, Lund continued to go to extraordinary lengths to hide his assets and income from the IRS while also stealing from government assistance programs. He repeatedly transferred title to his properties to various straw entities and people; hid rental income by signing leases with the names of at least 16 different LLCs, partnerships, and trusts; applied for and received food stamps and Medicaid benefits; and convinced an employee to open a bank account on behalf of one of Lund’s trusts. On his food stamp and Medicaid applications, Lund boldly claimed to be a part-time handyman earning just $810 a month. In total, Lund stole approximately $70,000 in public benefits, most of which were paid by the federal government.
On June 12, 2019, a federal grand jury in Portland returned an indictment charging Lund with tax evasion, failure to file personal income tax returns, obstructing or impeding the IRS, and theft of government funds. Lund was also charged in a separate federal case with making a false statement in connection with a personal bankruptcy case.
On July 19, 2021, Lund pleaded guilty to tax evasion, failure to file personal income tax returns, and stealing food stamp and Medicaid benefits. All of Lund’s remaining charges were dismissed as part of his plea agreement.
During sentencing, U.S. District Court Judge Michael H. Simon ordered Lund to pay more than $1.7 million in restitution to the IRS and $70,000 to the Oregon Health Authority.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS Criminal Investigation and prosecuted by Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon.
Oregon Man Sentenced to Federal Prison for Illegal Firearm Possession on the Burns Paiute ReservationRead the Press Release
EUGENE, Ore.—A man staying on the Burns Paiute Indian Reservation was sentenced to federal prison today for illegally possessing a shotgun with an obliterated serial number.
Danny Hank Snapp, 31, was sentenced to two years in federal prison and three years’ supervised release.
According to court documents, on September 13, 2020, a woman called the police after hearing screaming and crying, followed by gunshots, from her neighbor’s residence on the Burns Paiute Indian Reservation. When police arrived on scene, they found Snapp’s ex-wife crying and walking in front of the property. Officers entered the house, removed a child, and placed Snapp under arrest. The officers located a revolver hidden in a floor vent and a shotgun with an obliterated serial number. After initially claiming he had set off fireworks, Snapp admitted to firing the revolver into the air.
Snapp and his ex-wife are not members of the Burns Paiute Tribe.
On September 7, 2021, Snapp pleaded guilty to the firearm charge for which he was sentenced today.
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 Bureau of Indian Affairs law enforcement and the Burns Police Department, and prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, and Thomas Weathers, Tribal Prosecutor for the Burns Paiute Tribe.
U.S. Attorney's Office Joins in Recognizing National Native American Heritage Month, November 2021Read the Press Release
PORTLAND, Ore.—On October 29, 2021, President Joseph R. Biden Jr. proclaimed November 2021 as National Native American Heritage Month.
The proclamation honors the perseverance of American Indian and Alaska Native peoples and reaffirms the nation’s commitment to upholding trust and treaty responsibilities, strengthen Tribal sovereignty, and advance Tribal self-determination. The proclamation also recognizes the resilience of native peoples despite a painful history of enduring unjust Federal policies, to include assimilation and termination.
The U.S. Attorney’s Office for the District of Oregon joins its Tribal, federal, state, and local partners in taking this opportunity to celebrate the countless contributions of native peoples past and present and honor the influence they have had on the advancement of our nation.
“The U.S. Attorney’s Office is deeply committed to working with our Tribal partners to build and sustain strong, healthy, and safe native communities. The disproportionately high levels of violence experienced by American Indians and Alaska Native peoples, especially Native American women, is unacceptable and requires urgent law enforcement action,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Pursuing justice on behalf of Tribal communities will always be a top priority for this office.”
The U.S. Attorney’s Office has a proud history of actively engaging in government-to-government relationship building with the nine federally recognized Tribal nations in the District of Oregon. A multi-disciplinary team of prosecutors and victim advocates works tirelessly to bring justice to Tribal crime victims and provide statewide leadership on a variety of pressing law enforcement issues impacting Tribal communities.
In June 2020, the U.S. Attorney’s Office announced the hiring of its first Missing and Murdered Indigenous Persons (MMIP) program coordinator and, in February 2021, released its first annual MMIP program report. MMIP is an important and sensitive issue to Tribal communities. To learn more about the U.S. Attorney’s Office MMIP program, please visit www.justice.gov/usao-or/indian-country/mmip.html.
With Veteran’s Day 2021 approaching, the U.S. Attorney’s Office also recognizes and honors American Indians and Alaska Natives who have served or continue to serve in our nation’s Armed Forces. As President Biden’s proclamation states, for more than 200 years, “Native Americans have defended our country during every major conflict and continue to serve at a higher rate than any other ethnic group” in the U.S.
For more information about the U.S. Attorney’s Office Indian Country Program or to sign up for our Indian Country Quarterly Newsletter, please visit www.justice.gov/usao-or/indian-country.
Portland Man Pleads Guilty to Fraud Charges After Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—A Portland man pleaded guilty today for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Eric Wade Lysne, 35, pleaded guilty to bank and wire fraud.
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.
On May 19, 2021, a federal grand jury in Portland returned a two-count indictment charging Lysne with bank fraud and wire fraud.
Wire fraud is punishable by up to 20 years in prison, a fine of $250,000 or twice a defendant’s gross gains or the victim’s losses, and three years’ supervised release. Bank fraud is punishable by up to 30 years in prison, a $1 million fine, and five year’s supervised release.
Lysne will be sentenced on February 1, 2022 before U.S. District Court Judge Michael H. Simon.
As part of his plea agreement, Lysne has agreed to pay $360,467 in restitution to SBA and forfeit $185,100 seized by law enforcement.
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.
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. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable PPP loans to small businesses for job retention and other expenses. In April 2020, Congress authorized over $300 billion in additional PPP funding.
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.
Tigard Man Indicted for Insurance Fraud Scheme and Obtaining Pandemic Unemployment Assistance for Time in Federal PrisonRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned a two-count indictment charging a Tigard man with perpetrating separate insurance and COVID-relief fraud schemes while on federal supervised release.
Johnell Lee Cleveland aka “Bankroll Johnny”, 40, a resident of Tigard, has been charged with one count each of conspiracy to commit wire fraud and wire fraud.
Cleveland’s co-conspirator, Tanya Renee Morrow, 33, of Las Vegas, Nevada, is also named in the indictment for her role in the insurance fraud scheme.
According to the indictment, in 2018, law enforcement executed multiple search warrants as part of an ongoing investigation of Cleveland, a suspected distributor of counterfeit oxycodone pills in the Portland Metropolitan Area. On March 7, 2018, federal agents arrested Cleveland and seized hundreds of oxycodone pills containing fentanyl; a ballistic vest; seven firearms, including a machine gun; more than $180,000 in cash and more than $100,000 in jewelry from his Portland residence.
On April 2, 2019, Cleveland pleaded guilty to conspiring to possess with intent to distribute and distribution of cyclopropyl fentanyl, possessing an unregistered firearm, and money laundering and, on July 11, 2019, he was sentenced to 57 months in federal prison. At Cleveland’s sentencing, a federal judge signed a forfeiture order, forfeiting items previously seized from Cleveland, including multiple pieces of jewelry.
In the summer of 2020, Cleveland sought and obtained a compassionate early release from prison based on the health risks associated with the COVID-19 pandemic and was released on August 4, 2020. Later the same month, Cleveland and Morrow submitted a personal articles insurance policy application to State Farm Insurance for nine pieces of jewelry previously seized by law enforcement. On October 9, 2020, State Farm issued Cleveland and Morrow a policy valued at more than $100,000 without a physical examination of the insured jewelry.
On February 8, 2021, Morrow submitted a burglary report to the Las Vegas Police Department claiming that her Mercedes-Benz C300 sedan and items from her Las Vegas residence had been stolen, including the nine pieces of insured jewelry. Two weeks later, Cleveland emailed State Farm a notarized statement of loss signed by both him and Morrow. Over the next several months, Cleveland and Morrow submitted additional documents and made affirmative statements to State Farm in support of their loss claim.
Beginning in October 2020, while the insurance fraud scheme involving Morrow was ongoing, Cleveland devised a separate scheme to fraudulently obtain Covid-relief funds authorized under the federal Coronavirus Aid, Relief, and Economic Security (CARES) act. The CARES Act, signed into law on March 27, 2020, created the Pandemic Unemployment Assistance (PUA) program, which provided unemployment benefits to individuals not eligible for regular unemployment compensation. PUA claims in Oregon are received and processed by the State of Oregon’s Employment Department.
On October 14, 2020, Cleveland applied for PUA benefits beginning on April 11, 2020 and continuing through September 12, 2020, claiming he was unemployed because of the COVID-19 pandemic. In reality, Cleveland was unemployed due to having been incarcerated during the period of time for which he was seeking employment benefits. Despite these false claims, Cleveland’s application was approved and, between October 2020 and August 2021, he received thousands of dollars in PUA payments.
Cleveland was arrested today and made his initial appearance in federal court before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and ordered detained pending a 4-day jury trial scheduled to begin on January 4, 2021.
If convicted, Cleveland faces a maximum sentence of 20 years in federal prison, 5 years’ supervised release, and a fine of $250,000.
Morrow was also arrested today and will make her first appearance in federal court on November 4, 2021 in Las Vegas.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation and the FBI, with assistance from the Portland Police Bureau and the U.S. Marshals Service. Assistant U.S. Attorney Peter D. Sax is prosecuting the case.
Cleveland and Morrow’s insurance fraud scheme was first discovered by a State Farm insurance claim specialist who alerted federal authorities for further investigation.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Coordinated Law Enforcement Operations Lead to Takedown of Portland-Area Transnational Drug Trafficking CellsRead the Press Release
PORTLAND, Ore.—In August and October 2021, coordinated law enforcement operations targeting two Portland-area transnational drug trafficking cells led to the arrests of the cells’ leaders and more than a dozen associates, and the seizure of approximately 200,000 counterfeit oxycodone pills suspected to contain fentanyl, two pounds of fentanyl powder, 40 pounds of methamphetamine, 45 pounds of heroin, 13 pounds of cocaine, nine firearms, and more than $1.4 million cash in drug proceeds.
“At a time when communities across the country continue to suffer the terrible effects of the opioid addiction crisis, there are some individuals seeking to profit off the pain and anguish of others. The drug trafficking cells targeted by this investigation are among the worst we’ve seen operating in Oregon. Counterfeit oxycodone pills containing fentanyl pose a severe risk of fatal overdose unmatched by any other type of widely available street drug,” said Acting U.S. Attorney Scott Erik Asphaug. “I applaud the many law enforcement agencies who played a role in bringing the leaders and associates of these two cells to justice. Our communities are safer because of your efforts.”
“This investigation resulted in arrests of individuals with ties to Mexico and significant seizures of drugs, including dangerous counterfeit tablets containing fentanyl, guns, and U.S. currency. The DEA worked with several law enforcement partners throughout Oregon, including the Tualatin Police Department, Oregon City Police Department, Tigard Police Department, and Portland Police Bureau. The dismantling of this international drug trafficking organization is an example of how effective law enforcement investigations can be when we work together to make our communities safer,” said Cam Strahm, Assistant Special Agent in Charge of the U.S. Drug Enforcement Administration in Oregon.
The two takedown operations, led by the U.S. Drug Enforcement Administration (DEA), came after a nearly 12-month investigation and the federal indictments of the two cell leaders and more than a dozen key associates. Early in the investigation, authorities believed they were investigating a single drug trafficking cell. As the investigation continued, federal agents discovered that two men—Jesus Miramontes-Castaneda, 31, of Los Angeles, California, and Horacio Luna-Perez, 39, of Hillsboro, Oregon—operated separate drug trafficking cells loosely-affiliated with one another by shared sources of supply and distribution networks.
Both cells acquired large quantities of oxycodone, heroin, methamphetamine, and other illegal drugs from sources of supply in California and elsewhere and used vehicles to transport the bulk narcotics to Oregon. Once in Oregon, the drugs were taken to stash houses where they were processed and prepared for sale. A large network of local drug dealers would then distribute user quantities of each drug. The cells routinely changed stash locations and rotated vehicles and phones to avoid detection by law enforcement.
On August 11, 2021, a federal grand jury in Portland returned a four-count indictment charging Miramontes-Castaneda and five associates with conspiring with one another to traffic large quantities of heroin and methamphetamine from California for distribution in the Portland and Salem, Oregon metropolitan areas. Miramontes-Castaneda’s cell distributed narcotics in Salem and the greater Portland area. Miramontes-Castaneda and several of his associates were arrested during the first takedown operation on August 12, 2021.
On September 14, Luna-Perez and nine associates were charged in a four-count indictment with conspiracy to possess with intent to distribute heroin, fentanyl, and methamphetamine. Similar to Miramontes-Castaneda, Luna-Perez’s cell imported large quantities of counterfeit oxycodone, heroin, and methamphetamine from California for distribution in and around Portland and in Eastern Washington. Luna-Perez’s cell also had ties to drug traffickers in Colorado and California. On October 7, 2021, the second takedown operation targeted Luna-Perez’s cell. Luna-Perez and several associates were arrested during the operation.
Luna-Perez’s brother and trafficking associate—Ricardo Luna-Perez, 41—made his first appearance in the District of Oregon today before a U.S. Magistrate Judge in Portland after his October 26, 2021 arrest in Vancouver, Washington. He was ordered detained pending a ten-day jury trial scheduled to begin on December 7, 2021. Ricardo Luna-Perez is the eighteenth defendant in the Miramontes-Castaneda and Luna-Perez trafficking cells to appear in federal court and be ordered detained pending a jury trial.
Conspiring to distribute and possess with intent to distribute heroin, methamphetamine, or fentanyl of these quantities is punishable by a maximum sentence of life in prison with a mandatory minimum sentence of ten years.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the DEA with assistance from Oregon State Police, Portland Police Bureau, Tigard Police Department, the Clackamas County Interagency Task Force (CCITF) including member agencies the Canby Police Department, Oregon City Police Department, and Tualatin Police Department; and Central Oregon Drug Enforcement (CODE). It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
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.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Fentanyl and heroin are leading causes of overdose deaths in the U.S. 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.
Portland Man Sentenced to Federal Prison for Role in Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for his role in a fraud scheme whereby he and a co-conspirator would steal mail from residential mailboxes and use stolen personal identification information to defraud local banks.
Demontae Sanders, 48, was sentenced to 10 months in federal prison and five years’ supervised release. Restitution will be determined at a later date.
According to court documents, beginning on an unknown date and continuing until at least July 7, 2020, Sanders and an accomplice, Latanya Jenkins, 50, also of Portland, conspired with one another to steal mail from residential mailboxes throughout the Portland Metropolitan Area. Sanders and Jenkins stole checks, credit cards, and other personal identity information that they used to impersonate victims and open accounts at several local credit unions and banks. Sanders and Jenkins used the accounts to defraud these financial institutions.
To further their scheme, Sanders and Jenkins communicated with one another by text and used the internet at Jenkins’ residence to open several bank accounts using stolen information. Sanders and Jenkins collected hundreds of stolen financial documents including bank statements, checks, tax returns, U.S. Passports, and other government-issued identification documents. The pair also stole and cashed an Economic Impact Payment check issued by the U.S. Treasury.
On September 24, 2020, a federal grand jury in Portland returned an 18-count indictment charging Sanders and Jenkins with conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and mail theft. On May 4, 2021, Sanders pleaded guilty to conspiring to commit bank fraud and mail theft.
On August 23, 2021, Jenkins pleaded guilty to conspiring to commit bank fraud, mail theft, and aggravated identity theft. She will be sentenced on December 14, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated jointly by Homeland Security Investigations and the U.S. Postal Inspection Service. Assistant U.S. Attorney Seth D. Uram prosecuted the case.
Local Man Sentenced for Firing Handgun into Federal CourthouseRead the Press Release
PORTLAND, Ore.—A Beavercreek, Oregon man was sentenced today for discharging a firearm into the Mark O. Hatfield United States Courthouse in Downtown Portland on January 8, 2021.
Cody Levi Melby, 40, was sentenced to five years’ federal probation.
“Cody Melby is a disabled combat veteran who, after becoming detached from his mental health support system, made an extraordinarily poor and dangerous decision to fire a gun at the Hatfield Courthouse. Fortunately, nobody was injured during this incident,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “The sentence imposed today will ensure Mr. Melby receives the treatment he needs while also protecting the community.”
“We commend the work of our partners, the Federal Protective Service and U.S. Attorney's Office, in resolving this troubling incident. When appropriate, we are always looking for ways to divert people away from violence and direct them toward rehabilitation. In many cases this happens out of the public eye, but in a situation like this one we want to highlight that a holistic response is sometimes more effective,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, at approximately 7:35pm on January 8, Melby jumped over a security fence at the Hatfield Federal Courthouse and fired several rounds into the building’s exterior with a 9mm handgun. Two courthouse security officers exited the building and approached Melby after observing him on a closed-circuit security camera. Melby told the officers he had a gun and the officers placed him in handcuffs without further incident.
Federal Protective Service officers dispatched to the scene located five spent 9mm bullet casings, three spent bullets, three bullet holes in plywood affixed to the building’s stone columns, and damage to the metal soffit above the building’s main entrance.
After his arrest, Melby was charged by criminal complaint with destruction of government property. Later, on January 21, 2021, a federal grand jury in Portland returned a one-count indictment charging Melby with possession of a firearm in a federal facility. On October 14, 2021, Melby pleaded guilty to the single charge.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Federal Protective Service and FBI. It was prosecuted by Assistant U.S. Attorney Paul Maloney.
Owner of Eugene and Corvallis Indian Restaurants Indicted for Tax EvasionRead the Press Release
EUGENE, Ore.—A federal grand jury in Eugene returned an indictment today charging an Oregon restauranteur with tax evasion and hiding cash from his businesses.
Meeraali Shaik, a Corvallis, Oregon resident and the owner of Evergreen Indian Cuisine, has been charged with one count of tax evasion.
According to court documents, Shaik owned and operated Evergreen Indian Cuisine locations in Eugene and Corvallis. From before 2013 and continuing until 2017, Shaik is alleged to have willfully attempted to evade the assessment of personal income taxes by, among other illegal acts, providing his tax preparer with incomplete bank and income records and false information regarding the cash receipts of his restaurants. Shaik used a portion of the underreported cash receipts to pay mortgage payments on properties in Eugene, Corvallis, and Chandler, Arizona and made wire transfers to a bank account in India.
Shaik will make his initial appearance in federal court before a U.S. Magistrate Judge on November 2, 2021. During his first appearance, Shaik will be arraigned, and a jury trial date will be set.
If convicted, Shaik faces a maximum sentence of five years in federal prison, three years’ supervised release, and a $100,000 fine.
Acting 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. Assistant U.S. Attorney Gavin W. Bruce is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Community and Law Enforcement Leaders to Convene for 6th Annual Building Bridges of Understanding in Our Community EventRead the Press Release
PORTLAND, Ore.—Community members and law enforcement officials from throughout the tri-county area will convene this week for the sixth-annual Building Bridges of Understanding in Our Community event on October 21, 2021 at 6:30pm PDT.
This two-hour virtual event is open to the public and hosted by the Muslim Educational Trust (MET) in Tigard, Oregon. To register, please visit https://conta.cc/3jwOKem.
This year’s theme is “What is Public Safety? Joining together to build bridges, share perspectives, and create solutions.” Criminal justice and community leaders will share perspectives in two moderated panel discussions: “What is public safety and what does it mean to you?” and “A year after George Floyd’s murder: Where are we now?” Each panel discussion will include a question-and-answer period.
Participating organizations include: MET, the U.S. Attorney’s Office for the District of Oregon, the Immigrant and Refugee Community Organization (IRCO), Washington County District Attorney’s Office, Washington County Sheriff’s Office, Clackamas County District Attorney’s Office, City of Portland’s Office of Violence Prevention, Multnomah County Department of Community Justice, Portland Police Bureau, Department of Safety Standards and Training, Oregon Department of Justice, Lake Oswego Police Department, and Beaverton Police Department.
For six consecutive years, leaders from public safety and civil society organizations have come together to build and strengthen trust in one another and to cultivate trust with the communities they serve. The annual event has been held at MET since its inception in the fall of 2016.
To view a video of last year’s event, please visit https://youtu.be/ae3Zj6TNDIY.
The Building Bridges event series is sponsored by the Washington County District Attorney’s Office, Washington County Sheriff’s Office, Washington County Administration, Clackamas County District Attorney’s Office, City of Lake Oswego, Lake Oswego Respond to Racism, Concerned Citizens of West Linn, Latino Network, Ecumenical Ministries of Oregon, IRCO, Muslim Community Center of Portland, Tigard Police Department, Portland Office of Civic Life, Portland Bureau of Transportation, Portland Police Bureau, New Portland Foundation, Portland’s New Portland Policy Commission, Salman Alfarisi Islamic Center of Corvallis, Multnomah County Sheriff’s and District Attorney’s Offices, and the U.S. Attorney’s Office for the District of Oregon.
For media inquiries or to book interviews with steering committee members, please contact Stephen Mayer of the Washington County District Attorney’s Office by emailing [email protected] or calling (971) 708-8219.
Media outlets are also welcome to contact the following steering committee members directly:
- Wajdi Said; Muslim Educational Trust; [email protected]
- J.W. Matt Hennessee; Vancouver Avenue Baptist Church; [email protected]
- Jack Hanna; New Portlanders Foundation; [email protected]
- Linda Castillo; Commissioner for Hispanic Affairs and DEI Manager at IRCO; [email protected]
- Erin Hubert; Multnomah County Sheriff’s Office; [email protected]
- Kevin Barton; Washington County DA; [email protected]
Oregon Marijuana Exporter Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—A former resident of Milwaukie, Oregon pleaded guilty today in federal court for illegally exporting marijuana grown in Oregon to Georgia for resale and laundering the proceeds.
Dante Baldocchi, 29, currently a resident of Altadena, California, waived indictment and pleaded guilty to conspiring to distribute marijuana and commit money laundering.
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.
Baldocchi faces a maximum sentence of 60 years in federal prison with a five-year mandatory minimum, a $5.5 million fine and four years of supervised release. He will be sentenced on January 6, 2022, before U.S. District Court Judge Michael H. Simon.
On September 21, 2021, Lacaden pleaded guilty to conspiring to distribute marijuana. He will be sentenced on December 13, 2021.
Acting 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 is prosecuting the case.
Two Portland Gang Members Face Federal Charges After Illegally Purchasing More than 80 FirearmsRead the Press Release
PORTLAND, Ore.—Two self-identified members of the Unthank Park Hustlers, a local Bloods gang set, are facing federal charges after illegally purchasing 82 firearms from local gun shops since April 2020.
Edward Charles Green and his twin brother Thomas Edward Green III, both 23 and residents of Gresham, Oregon, have been charged by criminal complaint with falsifying information in connection with the acquisition of a firearm and making false statements in a federal firearms licensee (FFL) record.
According to court documents, in May 2021, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) opened an investigation after receiving information from the Gresham Police Department (GPD) and Multnomah County Sheriff’s Office (MCSO) describing several shooting incidents allegedly involving Edward Green and Thomas Green III. At around the same time, ATF agents also received information alleging multiple illegal firearm purchases by the brothers.
On April 5, 2020, Portland Police Bureau (PPB) officers responded to an incident involving the Greens where a gun was fired from one apartment into another on Southeast Alder Street in Portland and later seized a .357 caliber revolver. Less than two weeks later, on April 23, 2020, PPB officers responded to reports of a house struck by gunfire on NE Sumner Street in Portland. Officers observed that the gun appeared to have been fired from inside the Greens’ father’s home, leaving a small hole in their father’s front window. After telling officers he threw a rock through his own window, the brothers’ father changed his explanation and claimed a gun accidentally fired when he was showing his son how to clean it. PPB located and seized three handguns and an AK-47 from the residence. After reviewing Edward Green’s firearm purchase records, ATF agents determined Green had illegally purchased three of the four guns seized.
Between August 25 and August 30, 2020, PPB officers recovered four more firearms illegally purchased by Edward Green. One of the firearms was recovered after officers responded to a shooting incident outside the brothers’ Southeast Portland apartment. Three others were recovered when PPB officers responded to Portland Adventist Hospital to interview a walk-in gunshot victim and observed a vehicle parked outside with obvious signs of gunshot damage. Officers arrested the vehicle’s occupants and located the firearms.
On November 11, 2020, MCSO deputies responded to a Fairview, Oregon car crash caused by gunfire involving Edward Green. Deputies later executed a search warrant on a backpack recovered from Green’s vehicle and found two more pistols Green had illegally purchased and two pounds of packaged marijuana. A few months later, on January 23, 2021, MSCO deputies recovered another firearm illegally purchased by Green during a traffic stop.
In May 2021, GPD officers responded to two separate shooting incidents at a house on SW Lillyben Avenue in Gresham. At the time of the shootings, both Green brothers listed the Lillyben residence on their Oregon driver’s licenses. During the first shooting, on May 12, 2021, an unknown assailant fired several rounds into the house. During the second shooting, on May 21, 2021, a drive-by assailant fired 14 additional rounds into the house. An unknown person in the house fired 30 rounds in response, some of which struck occupied neighboring houses. On June 3, 2021, members of the Metro Safe Streets Task Force executed a search warrant on the residence and found nine empty semi-automatic gun cases, several dozen spent bullets and cartridge casings, 27 firearm and rifle magazines, a range bag with more than 400 spent cartridges, and five receipts for recent gun purchases made by the Green brothers. Forensic analyses of the spent cartridges linked them to at least 10 different shootings in the Portland area between April 6, 2020 and July 11, 2021.
In July and August 2021, two more firearms linked to the Green brothers were recovered by law enforcement. On July 23, 2021, officers from the Beaverton Police Department conducted a traffic stop on a vehicle with no license plates. While searching the vehicle, officers located a .40 caliber pistol purchased by Thomas Green III just four days earlier. On August 30, 2021, PPB officers conducted a traffic stop on a vehicle occupied by four people, one of whom was a known member of the Hoover Criminal Gang. Officers located a .40 caliber pistol in vehicle illegally purchased by Edward Green several months earlier.
In total, between April 5, 2020 and August 30, 2021, area law enforcement officers recovered 12 firearms illegally purchased by the Green brothers. A subsequent review of ATF and State of Oregon records revealed that in an 18-month period beginning April 1, 2020, the brothers illegally purchased 82 firearms from Portland area gun shops.
On September 29, 2021, a coordinated law enforcement operation was conducted on a local apartment occupied by Victor White, a felon and gang associate of the Green brothers. Thomas Green III was found sleeping in the apartment and arrested. Investigators seized two semi-automatic firearms, 16 empty gun boxes, and ammunition from the residence. Green made his first appearance in federal court the same day and was later released to home confinement pending further court proceedings.
Edward Green was arrested today by ATF agents at his father’s residence in Northeast Portland. He made his first appearance in federal court before a U.S. Magistrate Judge and was 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 members of the Metro Safe Streets Task Force including ATF, FBI, GPD, MCSO, and PPB. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal complaint is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Formed in April 2021, the Metro Safe Streets Task Force is a multi-agency initiative focused on investigating and prosecuting gun crimes in Multnomah County. As part of this effort, federally-deputized officers from the Portland Police Bureau, Multnomah County Sheriff’s Office, and Gresham Police Department work with agents from the FBI and ATF to investigate gun crimes after they occur and, where appropriate and supported by evidence, charge those responsible in state or federal court. Prosecutors from the Multnomah County District Attorney’s Office and the U.S. Attorney’s Office for the District of Oregon work closely with task force officers to determine if state or federal charges are warranted and which jurisdiction is most appropriate for adjudication.
Portland Area Heroin Dispatcher Sentenced to Federal Prison for Role in Drug Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—A Portland man with several prior drug trafficking convictions was sentenced to federal prison today for his role in a conspiracy to distribute large quantities of heroin in Oregon and Washington State.
Christian Zepeda-Quezada aka Miguel Agredano, 32, was sentenced to 130 months in federal prison and five years’ supervised release.
According to court documents, Zepeda-Quezada was a heroin dispatcher who used multiple drug dealers to distribute large quantities of heroin in Portland and Vancouver, Washington. In his role as dispatcher for the trafficking network, Zepeda-Quezada took heroin orders from customers by phone and arranged for dealers to hand-deliver the orders directly to the customers. As such, Zepeda-Quezada was insulated from direct exposure and faced less risk of harm than his co-conspirators.
Between January and August 2019, the U.S. Drug Enforcement Administration (DEA) and Clark Vancouver Regional Drug Task Force (CVRDTF) made multiple controlled purchases of heroin from Zepeda-Quezada’s network before obtaining a warrant to search Zepeda-Quezada’s Vancouver residence and other locations. On August 7, 2019, agents seized distribution quantities of heroin and cocaine from Zepeda-Quezada’s residence. Zepeda-Quezada was arrested during the search and ordered detained pending trial.
On August 6, 2019, a federal grand jury in Portland returned a five-count indictment charging Zepeda-Quezada and two co-conspirators—Javier Perez-Alejandre, 22, a California resident, and Angel Umanzor-Ardon, 21, of Portland—with conspiracy to distribute heroin and distribution of heroin.
On June 2, 2021, Zepeda-Quezada pleaded guilty to conspiracy to distribute heroin.
On October 20, 2020, Umanzor-Ardon pleaded guilty to conspiracy to distribute heroin and, on April 28, 2021, he was sentenced to 27 months in federal prison and five years’ supervised release.
Perez-Alejandre remains in custody pending a four-day jury trial scheduled to begin October 18, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by DEA with assistance from CVRDTF. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Heroin is a leading cause of overdose deaths in the U.S. 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.
Takedown of Lane County Drug Trafficking Cell Leads to Largest Seizure of Methamphetamine in Oregon State HistoryRead the Press Release
EUGENE, Ore.—On September 15, 2021, a coordinated law enforcement operation targeting the leader and several associates of a Lane County drug trafficking cell led to the seizure of 384 pounds of methamphetamine, the largest single methamphetamine seizure in Oregon State history and valued at over a million dollars.
The operation, led by the U.S. Drug Enforcement Administration (DEA) with assistance from the Springfield Police Department, Eugene Police Department, and Linn Interagency Narcotics Enforcement Team (LINE) came after the cell’s leader, Martin Manzo-Negrete aka Javier Cardenas-Manzo, a 47-year-old Eugene resident, was charged by federal criminal complaint with possessing with intent to distribute methamphetamine. Manzo-Negrete has a long history of drug trafficking and previously served 14 years in federal prison.
Manzo-Negrete was arrested during the operation and made his first appearance in federal court on September 16, 2021. He was ordered detained pending further court proceedings.
Four of Manzo-Negrete’s associates were also arrested and are facing federal drug charges. They include Eugene residents Gustavo Manzo-Mares, 45; Candice L. Barrett, 52; John C. Willis, 59; and Nathan Lee Daniels, 46. A fifth associate, Frank Buehler, 52, also of Eugene, has been charged, but remains at large.
As part of the operation, law enforcement executed federal search warrants at multiple locations in Lane County. In addition to methamphetamine, they seized 14 firearms—some of which were stolen—and more than $76,000 in cash.
DEA and the Eugene Police Department Street Crimes Unit began investigating the Manzo-Mares cell in October 2020 for its role in trafficking large quantities of methamphetamine from California to Oregon for resale in and around Lane County. The drug trafficking organization transported large quantities of methamphetamine by car from Southern California to Oregon. Once in Oregon, the drugs were stored, divided, and then distributed into the community.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the DEA with assistance from Springfield Police Department, Eugene Police Department Street Crimes Unit, and LINE. Assistant U.S. Attorney Joseph H. Huynh is prosecuting the case.
A criminal complaint is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Bags of seized methamphetamine. Seized firearms. Bags of seized cash.Florida Man Sentenced to Federal Prison for Filing Hundreds of False Tax ReturnsRead the Press Release
PORTLAND, Ore.—A Homestead, Florida man was sentenced to federal prison today for perpetrating a multi-year fraud scheme wherein he filed 745 false tax returns in 19 different states.
Damian O. Barrett, 40, was sentenced to 54 months in federal prison and three years’ supervised release.
“With tax filing season right around the corner, it is important that all Americans who choose to hire a tax preparation professional take the necessary precautions to ensure they are legitimate and have their best interests in mind, said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Misusing personally identifiable information to submit fraudulent tax returns in the names of unknowing clients is a serious crime and be treated as such by our office. We applaud the IRS’s effort to hold Mr. Barrett accountable for his crimes.”
“Mr. Barrett used his specialized knowledge as a tax preparer to obtain false refunds at the cost of honest taxpayers all over the United States. Today’s sentence is a victory for those of us who have been victims of a sophisticated tax refund scheme,” said IRS Criminal Investigation (IRS:CI) Special Agent in Charge Bret Kressin. “IRS:CI continues to prioritize investigating individuals who diminish the integrity of our tax systems to hold them accountable for their fraud.”
According to court documents, Barrett owned two tax preparation companies, Max Tax Experts, LLC and Winngate Tax Services, LLC. Barrett used Max Tax Experts to service and submit tax returns on behalf of legitimate clients. He used Winngate Tax Services to submit false and fraudulent income tax returns. From approximately January 2015 through December 2018, Barrett filed 745 false tax returns to 19 different state taxing authorities. The Oregon Department of Revenue alone received 348 tax returns requesting more than $322,000 in fraudulent refunds. The agency paid out more than $130,000 in fraudulent refunds to Barrett.
To further his scheme, Barrett used the names, social security numbers, and employer identification numbers of various individuals, some of whom were his clients, to submit fraudulent returns. Additionally, he set up bank accounts in the names of some of his victims to receive fraudulent refunds. In total, Barrett sought nearly $900,000 and received more than $234,000 in fraudulent refunds.
In addition to his fraud scheme, in 2016, Barrett intentionally excluded more than $21,000 in income from his personal income tax return, resulting in a tax loss of $5,506. In 2017, Barrett failed to file a personal income tax return, creating an additional tax loss of $68,918.
On August 5, 2020, a federal grand jury in Portland returned a six-count indictment charging Barrett with mail fraud and money laundering. Later, on June 17, 2021, he was charged by superseding criminal information with mail fraud, filing a false tax return, and aggravated identity theft. On July 19, 2021, Barrett pleaded guilty to all three charges in the superseding information.
During sentencing, U.S. District Court Judge Michael H. Simon ordered Barrett to pay more than $234,000 in restitution to 11 state departments of revenue, including the taxing authorities in Arizona, Connecticut, Iowa, Louisiana, Michigan, Missouri, New Jersey, New Mexico, Oklahoma, Oregon, and South Carolina, and more than $74,000 to the IRS.
Acting U.S. Attorney Asphaug and Special Agent in Charge Kressin made the announcement.
This case was investigated by IRS:CI with assistance from the U.S. Postal Inspection Service. Assistant U.S. Attorneys Katherine A. Rykken and Seth D. Uram prosecuted the case.
Leader of Klamath Falls Drug Trafficking Ring Indicted in Federal CourtRead the Press Release
MEDFORD, Ore.—A federal grand jury in Medford has returned an indictment charging the leader and multiple associates of a Klamath Falls, Oregon area drug trafficking ring with conspiring with one another to transport large quantities of methamphetamine and fentanyl from California to Oregon for distribution and sale in and around Klamath Falls.
Juan Jessie Martinez-Gil, 57, a Mexican National residing in Reno, Nevada, has been charged with conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine and fentanyl, distribution of methamphetamine and fentanyl, and attempted distribution of methamphetamine.
Nine of Martinez-Gil’s associates also face federal charges for their roles in the conspiracy. They include:
- Elizabeth Irene Martinez-Agbalog, 47, of Reno, Nevada
- Anthony Wayne Smith, 56, of Midland, Oregon
- Katherine Desiree O'Brien, 42, of Klamath Falls, Oregon
- Larry Ralph Labeau Jr., 57, of Klamath Falls, Oregon
- Bryce Allen Stewart, 57, of Klamath County, Oregon
- Candice Nadine Mckee, 29, of Lakeview, Oregon
- Peter Hill Mitchell, 40, of Lakeview, Oregon
- Cole Edward Reeves, 51, of Klamath Falls, Oregon
- Reynel Heriberto Ramos-Cornejo, 49, a Honduran National residing in Lynwood, California
According to the indictment, between August 1, 2019 and September 2, 2021, Martinez-Gil and his associates conspired with one another to possess and distribute large quantities of methamphetamine and fentanyl in the form of counterfeit Oxycodone pills.
A coordinated law enforcement operation was conducted on September 2, 2021, leading to the arrests of Martinez-Gil and other co-defendants. Federal search warrants were executed on five locations and two vehicles. Over the course of the investigation, law enforcement seized approximately seventeen pounds of methamphetamine and seven-hundred counterfeit oxycodone pills.
Martinez-Gil made his initial appearance in federal court today in Portland before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and ordered detained pending an eight-day jury trial scheduled to begin on December 14, 2021.
All of Martinez-Gil’s co-defendants have made their first appearances in federal court, including Ramos-Cornejo who was arraigned today in Portland.
If convicted, Martinez-Gil faces a maximum sentence of life in federal prison, 5 years’ supervised release, and a fine of $10 million.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Drug Enforcement Administration (DEA) with assistance from the Basin Interagency Narcotics Enforcement Team (BINET), which is made up of members from the Oregon State Police, Klamath Falls Police Department, and the U.S. National Guard. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
The DEA also received assistance from Homeland Security Investigations, the Washoe County Sheriff’s Office, the California Highway Patrol, the Central Point Police Department, the Torrance Police Department, and the Lake County Sheriff’s Office.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
American Expatriate in Monaco Pleads Guilty to Filing a False Tax ReturnRead the Press Release
PORTLAND, Ore.—An American expatriate residing in the Principality of Monaco pleaded guilty today in federal court to filing a false tax return.
Kory Merrill Tarpenning, 59, pleaded guilty to making and subscribing a false federal income tax return.
According to court documents, Tarpenning is a marketing consultant and owner of numerous foreign businesses organized in France and Monaco. His primary line of business is a brand consultant to U.S. companies interested in expanding their business operations to Monaco. Tarpenning also owns several Monegasque consulting companies, including Sirius Group SAM and Sirius Sports Marketing.
In 2014, Tarpenning arranged a sponsorship agreement between Association Sportive de Monaco Football Club SA (AS Monaco), a Monegasque professional soccer club, and Nike European Operations. The agreement was valued at as much as €20 million over its five-year term. Subsequently, AS Monaco executed a contract with Sirius Group to pay Tarpenning a 9% commission on cash payments from Nike and a 6% commission on athleticwear ordered by the team. Between 2014 and 2018, AS Monaco paid Tarpenning at least €2.1 million.
Tarpenning transferred the income from deals with AS Monaco and other companies to joint personal bank accounts in Monaco and the U.S. He used the proceeds to purchase a second home in Eugene, Oregon and to pay for his children’s Monegasque private school. In tax years 2014 through 2018, Tarpenning failed to report more than $1.4 million in wages and business income.
During this same time, Tarpenning also failed to report substantial dividend income from other unrelated business ventures, including companies he owned that operated the Nike Store and Starbucks Coffee in Monaco and a brand consulting firm based in Portland. In tax years 2014 through 2018, Tarpenning failed to report more than $1 million in dividend income.
Altogether, from 2014 to 2018, Tarpenning’s underreporting of income caused a tax loss to the IRS of more than $670,000.
On August 25, 2021, Tarpenning was charged by criminal information with making and subscribing a false federal income tax return.
Tarpenning faces a maximum sentence of three years in prison; a $250,000 fine or twice the gross gains or losses resulting from his offense, whichever is greater; and one year of supervised release. He will be sentenced on January 6, 2022 before U.S. District Court Judge Michael W. Mosman.
As part of the plea agreement, Tarpenning has agreed to pay $670,851 in restitution to the IRS.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Meredith D.M. Bateman is prosecuting the case.
California Man Pleads Guilty for Role in Eastern Oregon Methamphetamine Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—A Vacaville, California man pleaded guilty 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, 33, pleaded guilty to conspiring to possess with intent to distribute and distribute methamphetamine.
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 Murillo brothers’ 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.
Noel Murillo will be sentenced on January 5, 2022 before U.S. District Court Judge Michael H. Simon.
On May 7, 2018, Navarro pleaded guilty to possessing with intent to distribute methamphetamine. He will be sentenced on February 1, 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.
Acting 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 is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Hillsboro Man Sentenced to Federal Prison for Mail and Identity Theft SchemeRead the Press Release
PORTLAND, Ore.—A Hillsboro, Oregon man was sentenced to federal prison today for stealing hundreds of pieces of residential mail throughout the Portland Metropolitan Area and using the personal identity of one local resident to purchase a luxury car.
Dwayne Leroy Daan, 42, was sentenced to 90 months in federal prison and three years’ supervised release.
According to court documents, between February and May 2020, Daan stole more than 800 pieces of mail from residences in Portland, Beaverton, West Linn, Milwaukee, and Hillsboro, Oregon. Some of the mail was stolen using a counterfeit U.S. Postal Service arrow key. On April 20, 2020, Daan used the stolen identity of a local resident to obtain a line of credit and purchase a 2018 Audi for $51,031 from a car dealership in Milwaukee.
On July 16, 2020, a federal grand jury in Portland returned a four-count indictment charging Daan with possessing stolen mail and a counterfeit U.S. Postal Service arrow key. Later, on June 29, 2021, a superseding criminal information added felony charges for bank fraud and aggravated identity theft.
On July 1, 2021, Daan pleaded guilty to possessing stolen mail and a counterfeit U.S. Postal Service arrow key, bank fraud, and aggravated identity theft.
A restitution hearing has been scheduled for December 20, 2021.
As part of a global resolution, Daan's federal prison sentence will run concurrently with a sentence previously imposed in Washington County Circuit Court and a sentence to be imposed in Multnomah County Circuit Court for similar conduct. The Clackamas County District Attorney’s Office will dismiss charges pending against Daan as part of this resolution. Daan will serve his entire sentence in federal prison.
Acting 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 with assistance from Homeland Security Investigations, the Portland Police Bureau, West Linn Police Department, and Hillsboro Police Department. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon with assistance from the Multnomah, Clackamas, and Washington County District Attorney’s Offices.
Willamette Valley Grass Seed Company Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—A Willamette Valley wholesale grass seed distributor pleaded guilty today in federal court for knowingly concealing a scheme to defraud the Jacklin Seed Company, then a subsidiary of the J.R. Simplot Company.
ProSeeds Marketing, Inc., a company based in Jefferson, Oregon, pleaded guilty to one count of misprision of felony.
According to court documents, ProSeeds had a longstanding commercial relationship with the Jacklin Seed Company and routinely contracted with Jacklin for the purchase and sale of grass seed. These contracts were typically negotiated with a Jacklin employee acting under the supervision of Christopher Claypool, Jacklin’s general manager. In March 2021, Claypool, 53, of Spokane, Washington, was convicted of wire fraud and money laundering for perpetrating multiple schemes to defraud Jacklin. Claypool was later sentenced to three years in federal prison.
Beginning in December 2018, Claypool and the Jacklin employee conspired to divert a portion of the overseas sales Claypool negotiated on behalf of Jacklin so that Claypool and the employee could collect commissions on those sales. As part of this scheme, Claypool incorporated Green Pyramid, LLC to pose as an independent grass seed broker and accept payment of the fraudulent commissions.
In furtherance of the scheme, the Jacklin employee whom Claypool supervised arranged for ProSeeds to book sales diverted from Jacklin with mark-ups dictated by Claypool. The bulk of these mark-ups were then kicked back to Claypool. ProSeeds participated in the scheme with the aim of creating an overseas customer base. Nevertheless, the company intended to and did conceal Claypool’s scheme.
From December 2018 to August 2019, ProSeeds booked twelve diverted and bogus sales, generating more than $474,000 in mark-ups on Jacklin seed. Although the bulk of the mark-ups went to Claypool and his subordinate, ProSeeds retained more than $78,000 in revenue from the transactions.
On September 14, 2021, ProSeeds was charged by criminal information with misprision of felony. The company faces a maximum sentence of five years’ probation and a $500,000 fine. ProSeeds will be sentenced on November 29, 2021, before U.S. District Court Judge Karin J. Immergut.
As part of the plea agreement, ProSeeds has agreed to pay $78,775 in restitution to Simplot.
Acting 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 Employee Who Accessed Child Pornography Aboard Government Research Vessel Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore.—A federal government employee who accessed and possessed child pornography while working aboard a National Oceanic and Atmospheric Administration (NOAA) scientific research vessel was sentenced to federal prison today.
Johnny Dale Hale, 44, was sentenced to 24 months in prison and five years’ supervised release. He was also ordered to pay $4,000 in restitution to his victims.
According to court documents, in late 2016, Hale, a decorated veteran, was working as a crew member aboard the Bell M. Shimada, a NOAA scientific research vessel. On or about November 15, 2016, the vessel was experiencing technical connectivity issues and the information technology team began running diagnostics. While troubleshooting, an electronics technician discovered two new folders on the ship’s server containing what he believed to be child pornography.
Diagnostics showed that Hale’s unique employee access card was associated with the time and date the folders were initially accessed. Additionally, Hale used two different vessel workstations to access the server at the exact time the folders were created. The vessel’s senior security engineer alerted the U.S. Department of Commerce to the discovery.
Special agents and a forensic analyst reviewed the suspect folders and discovered 109 pornographic web links and confirmed the presence of child pornography. Approximately 33 images of child pornography were in one of the suspect folders, with images from at least four series of photographs of previously-identified child pornography victims.
On June 21, 2017, a federal grand jury in Eugene returned an indictment charging Hale with possession of child pornography. On April 23, 2021, he pleaded guilty to that charge.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Department of Commerce Office of Inspector General, NOAA Office of Law Enforcement, and the FBI. Assistant U.S. Attorney William M. McLaren prosecuted the case.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oregon Tribes Among 12 Selected for Participation in Program Enhancing Tribal Access to National Crime Information DatabasesRead the Press Release
WASHINGTON—The Department of Justice has selected an additional 12 federally recognized tribes to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division and the states.
“Timely access to federal criminal information can help protect domestic violence victims, place foster children in safe conditions, solve crimes, and apprehend fugitives on tribal land, among other important uses,” said Deputy Attorney General Lisa O. Monaco. “Increasing tribal access to criminal databases is a priority of the Justice Department and this Administration, and essential to many tribal government efforts to strengthen public safety in their communities.”
“Tribal law enforcement agencies have long sought access to federal criminal databases to obtain important information that can be used to prevent violent crime in tribal communities. We are pleased that the Confederated Tribes of the Warm Springs Reservation and Cow Creek Band of Umpqua have been selected for participation in the TAP program and look forward to more Oregon tribes being added in the future. The Justice Department and U.S. Attorney’s Office for the District of Oregon are deeply committed to keeping Oregon tribal communities safe,” said Acting U.S. Attorney Scott Erik Asphaug.
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems. With these additional tribes, there are now 108 federally recognized Tribes participating in TAP.
TAP has been an important resource for the department’s Missing and Murdered Indigenous Persons Initiative and the Presidential Task Force on Missing and Murdered American Indians and Alaska Natives known as Operation Lady Justice. The Department of Justice began TAP in 2015 in response to concerns raised by tribal leaders about the need to have direct access to federal systems.
Using TAP, tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The following tribes have been newly selected for participation in TAP:
- Confederated Tribes of the Warm Springs Reservation
- Cow Creek Band of Umpqua
- Fort Belknap Indian Community
- Grand Traverse Band of Ottawa and Chippewa
- Havasupai Tribe
- Lower Brule Sioux Tribe
- Menominee Tribe
- Mille Lacs Band of Ojibwe
- Muckleshoot Tribe
- Passamaquoddy Tribe
- Shingle Springs Band of Miwok
- United Keetoowah Band of Cherokee
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).
For more information on TAP, visit http://www.justice.gov/tribal/tribal-access-program-tap.
Baker City Man Sentenced to Federal Prison for Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—A Baker City, Oregon man was sentenced to federal prison today for fraudulently converting to his own personal use federal money intended to help small businesses during the COVID-19 pandemic.
The parties stipulated to a two-year prison sentence for Jeremy Clawson, 32. At their joint recommendation, however, U.S. District Court Chief Judge Marco A. Hernandez reduced the sentence to ten months to account for the time Clawson had already served in Oregon state custody. Chief Judge Hernandez also ordered Clawson to serve a term of three years’ supervised release following his federal prison term.
“Recent federal relief programs, like those authorized by the CARES Act, were designed to help Americans and American small businesses navigate the economic fallout of the COVID-19 pandemic. Mr. Clawson saw the swift rollout of these programs as an opportunity to enrich himself at the expense of Americans in need. I want to thank the U.S. Secret Service and U.S. Small Business Administration Office of Inspector General for their steadfast partnership and commitment to bringing Mr. Clawson to justice,” said Acting U.S. Attorney Scott Erik Asphaug.
“This case shows the American people that their law enforcement and Attorney’s Office are taking CARES act fraud seriously,” said Justin Bourne, Resident Agent in Charge of the Secret Service Portland Resident Office. “This investigation is a prime example of the Secret Service’s investigative mission; to protect the United States financial infrastructure. This case illustrates the strong partnership between the Secret Service, U.S. Small Business Administration Office of Inspector General, the Baker City Police Department and the U.S. Attorney’s Office.”
“Lying to gain access to economic stimulus funds for personal gain will be met with justice,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to court documents, Clawson stole economic relief funds distributed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDLs) program, as authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.
On August 11, 2020, the proceeds of an SBA EIDL totaling $145,200 were deposited into an Umpqua Bank account owned by Clawson and his girlfriend. Shortly after receiving the deposit, Clawson began making multiple large cash withdrawals at the drive-through window of an Umpqua Bank in Baker City. On August 17, 2020, Clawson withdrew $49,905 in the form of a cashier’s check to purchase a 2016 Dodge Challenger.
SBA loan documents showed that the EIDL had been extended to the Halperin Manufacturing Company of San Diego, California. Though there is no record of any such company, the loan application listed an actual San Diego resident as the company’s owner and claimed it employed 350 people. Investigators contacted the purported owner, but that person denied owning or being affiliated with any such company and confirmed that the company’s supposed address in San Diego was the individual’s personal residence.
In early September 2020, investigators learned that Clawson had been arrested in late August by the Baker City Police Department for driving under the influence, reckless driving, driving with a suspended license, and attempting to elude the police. Clawson was driving the 2016 Dodge Challenger at the time of his arrest. Clawson later told authorities that he had received a large inheritance from his father, including $30,000 in cash he had on his person during a subsequent arrest.
On September 11, 2020, federal investigators interviewed Clawson at the Baker County Jail, where he was detained on the state charges. Clawson claimed to have received the $145,200 from a woman with whom he had an online dating relationship. He further claimed that he didn’t know what to do with the money and, after he stopped communicating with the woman, began spending the money himself. Clawson admitted to using the SBA money to purchase the Dodge Challenger and several other vehicles.
On December 21, 2020, Clawson was charged by criminal complaint with theft of government property. Later, on February 2, 2021, a federal grand jury in Portland returned a single-count indictment charging Clawson with theft of public money. On June 8, 2021, he pleaded guilty.
During sentencing, Chief Judge Hernandez ordered Clawson to pay $125,200 in restitution to the SBA.
Clawson has been in custody since his arrest in August 2020.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Secret Service in cooperation with the SBA Office of Inspector General and Baker City Police Department. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Local Man Pleads Guilty for Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Portland man pleaded guilty today for perpetrating a bank fraud scheme whereby he used 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, waived indictment and pleaded guilty to bank fraud.
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. Zamanizadeh forged the property owner’s signature on a statement verifying the property transfer as required by the mortgage lender and title company processing the loan. Based on Zamanizadeh’s false representations, the mortgage company approved the loan and transferred the funds to Zamanizadeh’s bank account.
On June 14, 2021, Zamanizadeh was charged by criminal information with bank fraud and aggravated identity theft.
Bank fraud is punishable by up to 30 years in prison, a $1 million fine, and three years’ supervised release.
Zamanizadeh will be sentenced on January 4, 2022 before U.S. District Court Judge Anna J. Brown.
As part of the plea agreement, Zamanizadeh has agreed to pay $400,000 in restitution to his victim and has transferred a second residential property in Clark County, Washington back to the victim.
Acting 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 FBI and is being prosecuted by Katherine A. Rykken, Assistant U.S. Attorney for the District of Oregon.
Leader of International Firearm Trafficking Conspiracy Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—A Mexican national residing in Portland pleaded guilty today for his leadership role in a conspiracy to illegally obtain high-powered semi-automatic rifles and high-grade firearms in and around the Portland area and smuggle them into Mexico for use by the Jalisco New Generation Cartel (CJNG).
David Acosta-Rosales, 51, pleaded guilty to conspiracy to make false statements in connection with the acquisition of firearms.
According to court documents, since at least September 2019, Acosta-Rosales served as the leader of a high-volume gun trafficking cell operating in the Portland area. In this role, Acosta-Rosales received orders and requests for high-powered semi-automatic rifles, high-grade firearms, and explosive devices from co-conspirators in Mexico affiliated with CJNG. Acosta-Rosales received hundreds of thousands of dollars to operate the scheme, recruited numerous straw purchasers to make illegal gun purchases, obliterated serial numbers on the guns, and organized the transfer and transportation of the guns from Oregon to Mexico. In total, the conspiracy involved the transfer of more than 100 guns to Mexico.
On October 6, 2020, a federal grand jury in Portland returned a 52-count indictment charging Acosta-Rosales and 10 associates with conspiracy, making false statements in connection with the acquisition of firearms, possessing and receiving firearms with obliterated serial numbers, and smuggling goods from the United States.
Acosta-Rosales faces a maximum sentence of 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced on December 6, 2021 before U.S. District Court Judge Karin J. Immergut.
As part of his plea agreement, Acosta-Rosales has agreed to forfeit any criminally-derived assets involved in the commission of his crimes identified by the government prior to sentencing.
Seven of Acosta-Rosales’ co-conspirators have pleaded guilty and are awaiting sentencing. The remaining three are pending trial.
Acting 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. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Colorado Man Sentenced to 16 Years in Federal Prison for Unprovoked Stabbing of Black ManRead the Press Release
EUGENE, Ore.— A Colorado man was sentenced to federal prison today for stabbing a Black man from Ontario, Oregon, while the man was sitting in a fast-food restaurant.
Nolan Levi Strauss, 27, was sentenced to 16 years in federal prison and five years’ supervised release.
“This defendant is being held accountable for his brutal and racially-motivated attack against a Black man carried out because of the color of his skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Racially motivated attacks have no place in our society, and the Civil Rights Division will continue to vigorously enforce federal laws that prohibit bias motivated violence.”
“We hope the lengthy sentence imposed today will bring some measure of peace and closure for the man viciously attacked by Nolan Strauss,” said Acting U.S. Attorney Scott Erik Asphaug for the District of Oregon. “The sentence should also send a clear message to anyone contemplating similar acts of violence: hatred and bigotry will not be tolerated.”
“All Oregonians should be able to live and work without fear that their skin color will mark them for violence,” said Special Agent in Charge Kieran L. Ramsey of the FBI Oregon Field Office. “Beyond the physical and emotional damage done to a victim, such violence can infect an entire community with divisiveness and despair. This is not the kind of place that any of us want to raise our families, and we stand with the entire community in saying this is not acceptable and we will not allow it.”
According to court documents and statements made at the sentencing hearing, on the morning of Dec. 21, 2019, Strauss was at a Pilot Travel Center in Ontario, Oregon, when he saw a Black man walk into the adjoining Arby’s Restaurant. Strauss did not know the man and had never seen him before, but he decided he wanted to kill the man, because he was Black. The man was at the Arby’s to provide documentation for a pending job application. He sat in a booth by himself and waited to meet with the restaurant manager, when Strauss entered the building and approached the man from behind.
Suddenly, unprovoked and without warning, Strauss stabbed the man twice in the neck, cutting his jugular vein and causing blood to rush out of the man’s neck. The man struggled to wrest the knife from Strauss, certain that he would die if he was stabbed again. A maintenance worker approached Strauss and directed him to drop the knife several times. Finally, the stabbing victim broke free from Strauss’s grip and ran to the other side of the restaurant where he collapsed on the floor, his clothes soaked with blood. While employees tried to provide first aid to the victim and his life-threatening injuries, the maintenance worker used a belt to secure Strauss’s hands behind his back and waited for police to arrive.
While they waited, the worker asked Strauss why he stabbed the man. Strauss replied, “Because he was Black, and I don’t like Black people.” Strauss was arrested at the scene. In two interviews with the police later that day, Strauss explained his beliefs about Black people, describing them as manipulative, lacking morality, and “not good people.” As Strauss told police, the color of the victim’s skin was Strauss’s “only problem with him.”
As a result of Strauss’s attack, the stabbing victim suffered two large lacerations to his neck. He was evaluated in Ontario and subsequently life-flighted to a hospital in Boise, Idaho, for emergency surgery.
On Sept. 17, 2020, a federal grand jury in Eugene returned a one-count indictment charging Strauss with a hate crime involving an attempt to kill. On June 17, 2021, he pleaded guilty to the charge.
This case was investigated by the FBI with assistance from the Ontario Police Department, Oregon State Police and the Malheur County District Attorney’s Office. It was prosecuted by Trial Attorney Cameron A. Bell for the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Gavin W. Bruce for the District of Oregon.
Texas Man Pleads Guilty to Assaulting Deputy U.S. Marshal with Hammer During Portland ProtestRead the Press Release
PORTLAND, Ore.—A Texas man pleaded guilty today for assaulting a Deputy U.S. Marshal with a construction hammer during a July 2020 protest in Downtown Portland.
Jacob Michael Gaines, 24, pleaded guilty to assaulting a federal officer with a deadly or dangerous weapon.
“We are very fortunate Mr. Gaines did not severely injure or kill the Deputy U.S. Marshal who confronted him outside the federal courthouse last summer. Assaulting a federal officer with a deadly weapon is a very serious crime and will be handled by our office accordingly,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
“Anyone who assaults or tries to hurt a U.S. Marshals Service employee should expect to be charged. Mr. Gaines could have killed the deputy he struck with a construction hammer, and we’re grateful to the US Attorney’s Office for seeing this case through to its conclusion,” said Peter Cajigal, Acting U.S. Marshal for the District of Oregon.
“We’re pleased to see resolution following the violent acts committed at the Hatfield Courthouse last summer and hope this verdict can help set the stage for peaceful protest conduct in the future,” said Gabriel Russell, Assistant Director for Field Operations, Eastern Zone, Federal Protective Service.
According to court documents, at approximately 1:00am on July 11, 2020, Gaines was observed using a hammer to break through a barricaded entrance at the Hatfield Federal Courthouse. At the time, federal law enforcement personnel were staged inside the courthouse to protect the facility and respond to incidents. After Gaines drove a hole through the plywood barrier, Deputy U.S. Marshals exited the door to prevent him from trespassing into the closed building.
As the marshals were exiting the barricaded door, Gaines struck a Deputy U.S. Marshal three times with the hammer. The deputy deflected the blows to prevent serious injury, but in process was struck in the left shoulder, lower neck, and upper back. While being struck, the deputy managed to hold onto Gaines while other officers handcuffed him and placed him under arrest.
On July 12, 2020, Gaines was charged by criminal complaint with one count of assaulting a federal officer with a deadly weapon. Later, on July 16, 2020, a federal grand jury in Portland indicted Gaines on the same charge. Gaines has been held in custody since his arrest the night of the incident.
Gaines faces a maximum sentence of 20 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on December 13, 2021 before U.S. District Court Judge Karin J. Immergut.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
The case was investigated by the U.S. Marshals Service and Federal Protective Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
California Man Sentenced for Role in Scheme to Smuggle Endangered and Vulnerable Turtles from the U.S. to ChinaRead the Press Release
EUGENE, Ore.— A Chinese national residing in Los Angeles was sentenced in federal court today for his role in a scheme to purchase hundreds of endangered and vulnerable turtles in the U.S. and smuggle them via U.S. mail and commercial airline flights to China.
Yuan Xie, 30, was sentenced to 5 years’ federal probation, 500 hours of community service, and a $15,000 fine payable to the Lacey Act Reward Fund.
According to court documents, beginning in at least May 2017 and continuing until October 2018, Xie conspired with another Chinese national, Xiao Dong Qin, 35, of Shanghai, China, to purchase more than 769 live turtles from reptile dealers in Alabama, California, Florida, Kentucky, Michigan, New Jersey, Nevada, North Carolina, and South Carolina. All of the turtles purchased and smuggled by Xie are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
A two-year investigation by the U.S. Fish and Wildlife Service (USFWS) revealed that in an 18-month period, Xie facilitated the purchase and transportation of approximately 134 Florida box turtles, 178 eastern box turtles, 127 North American wood turtles, 220 spotted turtles, 77 diamondback terrapins, 25 three-toed box turtles, seven yellow-blotched map turtles, and one Blanding’s turtle from his former residence in Eugene, Oregon. USFWS investigators determined the cost of the turtles involved in this investigation exceeded $150,000 and estimated the market value was more than double that amount in the Chinese pet trade.
In November 2018, Xie was arrested by USFWS agents at his residence in Los Angeles.
On November 16, 2018, Xie was charged by criminal complaint with one count of conspiracy to smuggle goods from the U.S. in violation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). On May 6, 2021, he waived indictment and pleaded guilty to the single charge.
As part of the plea agreement, Xie has agreed to pay $2,233 in restitution to a rehabilitation facility near Chicago and The Turtle Conservancy near Los Angeles for costs associated with the care of turtles intercepted by law enforcement.
Qin was sentenced on February 27, 2020 to two years’ probation and paid nearly $8,000 in restitution.
This case was investigated by USFWS with assistance from the U.S. Postal Inspection Service. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Portland Man Sentenced to Federal Prison for Arson During Protest at Multnomah County Justice CenterRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for committing arson at the Multnomah County Justice Center during a protest in May 2020.
Edward Thomas Schinzing, 33, was sentenced to 15 months in federal prison and three years’ supervised release.
“Edward Schinzing’s destructive action put Multnomah County employees and inmates in danger. The perceived anonymity of a crowd will not protect rioters who commit violent crimes under the guise of peaceful protest. Federal law enforcement will continue to vigorously investigate and prosecute crimes committed during local riots,” said Acting U.S. Attorney Scott Erik Asphaug.
“Actions such as those Mr. Schinzing took go far beyond one’s right to protest and endangered the lives of those working at and housed in the Justice Center. This sentence is well deserved. ATF has investigated, and will continue to vigorously investigate, violent criminal acts such as these,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson.
“The night of the arson, there were hundreds of people in the Justice Center, including almost 300 inmates. Edward Schinzing deserves to be held accountable for his choices that night—choices grounded in a complete disregard for the lives of others,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, on May 29, 2020, Schinzing marched with a group of protesters to the Multnomah County Justice Center. When the group arrived, several people broke windows and entered the building. Three civilian Multnomah County employees were working inside the Corrections Records Officer when the windows were broken and quickly fled for safety.
Schinzing was among those who entered the building. Some in the group spray-painted portions of the office; damaged computers and other office equipment, furniture, and interior windows; and started fires. Schinzing, who was identified on surveillance cameras by a distinctive tattoo of his last name across his upper back, spread a fire started near the front of the office by igniting papers and moving them into the drawer of another cubicle.
A few minutes later, the building’s sprinkler system activated, extinguishing the fire, and law enforcement officers secured the building. At the time of the fire, the Multnomah County Detention Center, located in the Justice Center complex, housed approximately 289 inmates.
On August 5, 2020, a federal grand jury in Portland returned an indictment charging Schinzing with arson. On September 30, 2020, he pleaded guilty to the single charge.
As part of his plea agreement, Schinzing has agreed to pay restitution to Multnomah County as determined by the government and ordered by the court. A final order of restitution will be issued by the court within 90 days.
Acting U.S. Attorney Asphaug, ATF Special Agent in Charge McPherson, and FBI Special Agent in Charge Ramsey made the announcement.
This case was investigated by ATF and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Former Chiropractor Sentenced to Federal Prison for Distribution of OxycodoneRead the Press Release
PORTLAND, Ore.—A Clackamas, Oregon man was sentenced to federal prison today for distributing oxycodone pills acquired from dozens of fraudulent prescriptions, one of which led to the overdose death of Starlin Swan, a 26-year-old woman.
Mark Steven Gardner, 33, was sentenced by the Honorable Michael W. Mosman to 50 months in federal prison followed by 3 years of supervised release.
“The opioid epidemic has cost more than 500,000 American lives. The death toll in this country is staggering and the tragic loss that surviving family members must endure is devastating. This prosecution represents our office’s firm commitment to hold those accountable who unlawfully distribute controlled substances that results in death.” said Acting United States Attorney, Scott Erik Asphaug.
In November 2015, Gardner, a chiropractor, stole a prescription pad from a physician with whom he shared his Portland office building. Over the next four months, Gardner used the doctor’s name to forge fraudulent oxycodone prescriptions. Gardner instructed others to fill the prescriptions at times when he knew the doctor’s office, to which he had access, was closed. Gardner would then enter the doctor’s office, answer the doctor’s office phone, and pose as the doctor to verify the authenticity of the prescriptions when contacted by pharmacies. The individuals filling the prescriptions would typically give Gardner half of the pills received.
On January 8, 2016, Gardner called 911 to report finding a female friend unresponsive. Paramedics arrived on scene and found Ms. Swan deceased. A subsequent autopsy and toxicology examination revealed that Ms. Swan had died of an oxycodone overdose.
On the afternoon before Ms. Swan’s death, Gardner forged a prescription for Ms. Swan for 90 30mg pills of oxycodone. The prescription was filled the same day, although the pharmacy only filled it for 60 oxycodone pills.
In total, Gardner forged 48 prescriptions for 25 different recipients, including some scripts that were written after the overdose death of Ms. Swan. A total of 2,352 30mg oxycodone pills were fraudulently dispersed because of Gardner’s scheme. Following the discovery of the script forgeries, Gardner was stripped of his chiropractic license.
On May 15, 2019, a federal grand jury in Portland returned a three-count indictment charging Gardner with distribution of oxycodone resulting in death; distribution of oxycodone; and acquiring or obtaining a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge. On April 19, 2021, he pleaded guilty to unlawful distribution of oxycodone.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement. This case was investigated by the U.S. Drug Enforcement Administration with assistance from the Clackamas County Sheriff’s Office, and Homeland Security Investigations. It was prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.
West Linn Man Pleads Guilty for Role in Real Estate, Agriculture, and Mining Investment SchemesRead the Press Release
PORTLAND, Ore.—A West Linn, Oregon man pleaded guilty today for posing as a successful real estate developer, hemp seed cultivator, and owner of a precious metals mining venture to fraudulently obtain millions of dollars from individual investors and lenders.
David A. Shelofsky, 53, pleaded guilty to one count each of wire fraud and money laundering.
According to court documents, beginning in 2013, in Oregon and elsewhere, Shelofsky knowingly and intentionally devised several different investment fraud schemes. Shelofsky falsely told prospective investors and lenders that he had successful real estate development projects in Bend, Oregon and West Linn and a successful hemp seed cultivation and distribution venture in West Linn. During the same time period, Shelofsky and two other individuals formed a precious metals mining operation that purportedly used a proprietary mining technique to extract precious metals from the sand tailings of other mining operations. While the group made minimal efforts to operate the venture, Shelofsky misled several investors about the status of the operation to fraudulently obtain funds.
Shelofsky made repeated and deliberate misrepresentations and false promises about the status and success of his various ventures, the purported returns investors would receive, and the existence of collateral pieces of real estate supposedly backing investments. Shelofsky employed the services of others to further his schemes and establish his credibility, including a lawyer to create legal documents and an assistant to open bank accounts in the names of several limited liability corporations. Shelofsky used investor funds for personal expenses and to support his own high standard of living. Dozens of individual investors and lenders lost millions of dollars as a result of Shelofsky’s schemes.
On June 5, 2020, Shelofsky was charged by criminal complaint with wire fraud and money laundering. Later, on October 20, 2020, a federal grand jury in Portland returned a 17-count indictment charging Shelofsky with wire fraud and money laundering.
Shelofsky faces a maximum sentence of 30 years in prison; a $500,000 fine or twice the gross pecuniary gains or losses resulting from his offense, whichever is greater; and three years of supervised release. He will be sentenced on November 12, 2021 before U.S. District Court Judge Michael H. Simon.
As part of the plea agreement, Shelofsky has agreed to pay no less than $3.3 million in restitution to his victims and forfeit any criminally derived proceeds identified by the government prior to sentencing. Under the terms of the plea agreement, the government can and will argue for a restitution order greater than $3.3 million, but not to exceed $16 million.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS Criminal Investigation and the FBI. Assistant U.S. Attorney Claire M. Fay is prosecuting the case.
Bend Resident and Affiliated Residential Care Company Agree to Pay $2.9 Million to Settle Health Care Fraud AllegationsRead the Press Release
PORTLAND, Ore.—A Bend, Oregon resident and his residential care company have agreed to pay $2.9 million to settle allegations by United States and the State of Oregon that the company submitted false reimbursement claims to the Oregon Medicaid program.
Kevin Cox, 51, and At Home Care LLC, doing business as At Home Care Group (AHCG), will pay $1.86 million to the United States and $1.04 million to the State of Oregon.
AHCG also waived indictment and pleaded guilty today in Deschutes County Circuit Court to two counts of making a false claim for health care payment.
“Individuals and companies who submit false claims to federally-backed state health care programs increase health care costs for everyone,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “We take health care fraud very seriously and will continue to hold accountable those who undermine the integrity of these important programs.”
“This national pandemic has put an unprecedented strain on our health care system. There is never a time for Medicaid providers to enrich themselves with fraudulent schemes—but now is certainly not the time. This case shows you that we will work aggressively with our federal law enforcement partners to investigate and prosecute providers that victimize our most vulnerable Oreognians and the programs that serve them,” said Attorney General Ellen F. Rosenblum.
“Health care providers should regard Medicaid as a lifeline for vulnerable beneficiaries in need of wellness services, not as a financial reserve for personal enrichment,” stated Steven Ryan, Special Agent in Charge with the U.S. Department of Health and Human Services. “To assist in preserving Federal health care programs, our agency and law enforcement partners investigate and cease wrongful activity that compromises their funds.”
AHCG provided in-home medical and non-medical care to individuals in Oregon. The United States and State of Oregon contend that, between March 2013 and September 2018, AHCG altered caregiver scheduling calendars and billed the Oregon Medicaid program for hours of in-home care not actually performed.
As part of the settlement, AHCG and Cox will be excluded from participating in Medicare, Medicaid, and all other federal health care programs for 15 and 8 years, respectively.
Acting U.S. Attorney Asphaug and Attorney General Rosenblum made the announcement.
This settlement was the result of a coordinated investigation by the U.S. Attorney’s Office for the District of Oregon, U.S. Department of Health and Human Services Office of Inspector General, Oregon Department of Justice Medicaid Fraud Unit, and Oregon Health Authority. The United States was represented in this matter by Alexis Lien, Assistant U.S. Attorney for the District of Oregon. Senior Assistant Attorney General Elizabeth Ballard Colgrove led this case for the Oregon Department of Justice.
The claims resolved by this settlement, except for those admitted in AHCG’s guilty plea, are allegations only, and there has been no determination or admission of liability.
Former Klamath Falls Police Officer Pleads Guilty for Stealing Methamphetamine and Fentanyl from Evidence RoomRead the Press Release
MEDFORD, Ore.—A former Klamath Falls police officer pleaded guilty today in federal court after stealing methamphetamine and fentanyl from an evidence room.
Thomas Dwayne Reif, 28, pleaded guilty to possession of a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.
According to court documents, on or about November 27, 2020, Reif is alleged to have entered the Klamath Falls Police Department’s temporary evidence room using an unauthorized key and removed an evidence item containing methamphetamine and fentanyl. Reif briefly left the evidence room before returning the evidence item to the evidence locker and leaving the facility.
Shortly thereafter, Reif overdosed while operating his police car. The car jumped a median, travelled into oncoming traffic, and caused a multiple-vehicle accident. Reif was rushed to the hospital and successfully revived by medical personnel. Toxicology reports showed that Reif was under the influence of substances including methamphetamine and fentanyl.
Investigators searched the personal locker assigned to Reif at the Klamath Falls Police Department. Inside the locker, investigators found that Reif had concealed an evidence bag containing methamphetamine.
On May 20, 2021, a federal grand jury in Medford returned a two-count indictment charging Reif with possession of a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.
Reif faces a maximum sentence of four years in prison, a $250,000 fine and one year of supervised release. He will be sentenced on November 23, 2021 before U.S. District Court Judge Michael J. McShane.
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 Oregon State Police. It is being prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon. Klamath Falls Police Department cooperated and provided assistance throughout the investigation.
Portland Woman Pleads Guilty for Role in Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.— A Portland woman pleaded guilty today for her role in a fraud scheme whereby she and a co-conspirator would steal mail from residential mailboxes and use stolen personal identification information to defraud local banks.
Latanya Jenkins, 50, pleaded guilty to conspiring to commit bank fraud, mail theft, and aggravated identity theft.
According to court documents, beginning on an unknown date and continuing until at least July 7, 2020, Jenkins and an accomplice, Demontae Sanders, 48, also of Portland, conspired with one another to steal mail from residential mailboxes throughout the Portland Metropolitan Area. Jenkins and Sanders stole checks, credit cards, and other personal identity information that they used to impersonate victims and open accounts at several local credit unions and banks. The pair used the accounts to defraud these financial institutions.
To further their scheme, Jenkins and Sanders communicated with one another by text and used the internet at Jenkins’ residence to open several bank accounts using stolen information. Together, they collected hundreds of stolen financial documents including bank statements, checks, tax returns, U.S. Passports, and other government-issued identification documents. They also stole and cashed an Economic Impact Payment check issued by the U.S. Treasury.
On September 24, 2020, a federal grand jury in Portland returned an 18-count indictment charging Jenkins and Sanders with conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and mail theft.
Jenkins faces a maximum sentence of 37 years in prison; a $1.5 million fine or twice her criminally derived gains, whichever is larger; and five years of supervised release. Aggravated identity theft carries a mandatory two-year prison sentence. She will be sentenced on December 14, 2021 before U.S. District Court Judge Anna J. Brown.
As part of the plea agreement, Jenkins has agreed to pay restitution in full to her victims as identified by the government and ordered by the court.
Sanders pleaded guilty to the same charges on May 4, 2021. He will be sentenced on November 11, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
Homeland Security Investigations and the U.S. Postal Inspection Service jointly investigated this case. Assistant U.S. Attorney Seth D. Uram is prosecuting the case.
Nevada Man Pleads Guilty for Tribal FraudRead the Press Release
PORTLAND, Ore.—A Nevada resident and former manager of the Warm Springs Construction Enterprise (WSCE) pleaded guilty today in federal court for his role in a fraud scheme targeting the Confederated Tribes of Warm Springs.
Thomas Valentino Adams pleaded guilty to theft of funds from a Tribal organization.
According to court documents, the Warm Springs Economic Development Corporation (WSEDC), also known as Warm Springs Ventures (WSV), is a Tribal organization owned and operated by the Warm Springs Tribes. WSV operates as the management organization for several Tribal business entities, including WSCE.
Adams and an accomplice; Roderick Ariwite, the former CEO of WSEDC, Adams’ manager at WSCE, and resident of the Fort Hall Reservation in Idaho; created a construction company called Warbonnet Construction Services LLC. While drawing tribal salaries and travel reimbursements, Adams and Ariwite engaged in work projects for Warbonnet. In 2018, Adams and Ariwite used tribal funds to hire a subcontractor for a Warbonnet project and submitted vouchers for expenses they incurred they took on behalf of themselves and Warbonnet, which were reimbursed with tribal funds. In total, Adams and Ariwite’s scheme cost the Warm Springs Tribes more than $50,000.
On September 24, 2020, a federal grand jury in Portland returned a six-count indictment charging Adams and Ariwite with conspiracy and theft of funds from a Tribal organization.
Adams faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on November 15, 2021 before U.S. District Court Judge Michael W. Mosman.
Adams has agreed to pay $4,859 in restitution to the Warm Springs Tribes.
Ariwite is on pre-trial release pending a three-day jury trial scheduled to begin on September 14, 2021.
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 Warm Springs Police Department. It was prosecuted by Meredith Bateman and Seth Uram, Assistant U.S. Attorneys for the District of Oregon.