District of Oregon
Press releases recorded for this federal judicial district.
Southern California Man Pleads Guilty After Attempting to Set Fire to Federal Courthouse During Portland ProtestRead the Press Release
PORTLAND, Ore.—A Southern California man pleaded guilty today for attempting to set fire to the Mark O. Hatfield U.S. Courthouse during a protest in Downtown Portland on July 13, 2020.
Kevin Benjamin Weier, 35, of Vista, California, waived indictment and pleaded guilty to one count of depredation of government property.
According to court documents, on July 13, 2020, Weier was present at a protest outside the Hatfield Federal Courthouse in Portland. During the protest, Weier placed a burning piece of wood against the building.
On August 10, 2021, Weier was charged by criminal information with one count of depredation of government property.
Depredation of government property is punishable by up to 10 years in prison, a $250,000 fine, and three years’ supervised release. Weier will be sentenced on November 15, 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.
This case was investigated by the Federal Protective Service and prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Portland Area Identity Thief Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—A Gresham, Oregon man pleaded guilty today for stealing financial and identification documents from more than 100 people in and around Portland.
Robert Loren Finanders, 40, pleaded guilty to unauthorized access device fraud, aggravated identity theft, illegally possessing a firearm as a convicted felon, and possessing with intent to distribute methamphetamine.
According to court documents, between April 2019 and April 2020, Finanders is alleged to have stolen financial and identification documents from dozens of people in the Portland area with the intent to steal money from them and from local businesses. Finanders spent tens of thousands of dollars using stolen credit cards and other personal information. Some of the identity material recovered had been located in wallets and purses stolen from vehicles.
The Portland Police Bureau’s (PPB) East Precinct Street Crimes Unit began investigating Finanders in late September 2019 after finding a fraudulent Oregon driver’s license in the name of an adult victim during an arrest. The license had Finanders’ photo on it in place of the named victim. Investigators learned that around the same time, police officers in Bend, Oregon had arrested Finanders and a co-conspirator after receiving a report of a person using a stolen credit card at a local restaurant.
Bend police searched the vehicle driven by Finanders’ co-conspirator and found a passport, W2s, and a retail credit card matching the name of the victim whose stolen driver’s license was recovered by PPB. A search of Finanders’ Bend hotel room returned several additional W2s in the name of another victim and a victim profile notebook.
PPB officers linked Finanders to additional identity theft crimes in Portland, Gresham, and Lake Oswego, Oregon and, on January 22, 2020, executed a search warrant at his Gresham residence. Officers seized stolen profiles of more than 80 individuals; dozens of stolen and fraudulent identification and personal documents including passports, government-issued identification cards, and driver’s licenses; an embosser; a card reader; stolen mail; additional victim profile notebooks; three handguns; a dismantled AR-15; body armor; and evidence of drug trafficking.
On March 12, 2020, a federal grand jury in Portland returned a nine-count indictment charging Finanders. On April 1, 2020, he was arrested by PPB.
Finanders will be sentenced on December 6, 2021 by U.S. District Court Judge Karin J. Immergut.
As part of his plea agreement, Finanders has agreed to pay restitution in full to his victims.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the PPB East Precinct Street Crimes Unit with assistance from Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the U.S Postal Inspection Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Portland Man Who Struck Sheriff's Deputy in the Face with Motorcycle Helmet After 100 MPH Chase Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—Today, as part of a joint resolution of state and federal criminal cases, a local man was sentenced to federal prison for possessing with intent to distribute methamphetamine, and possessing a firearm as a convicted felon, after fleeing from law enforcement officers at more than 100 miles per hour and striking a sheriff’s deputy in the face with his motorcycle helmet. He was sentenced in state court for second degree assault and assaulting a public safety officer, both felonies.
Marcus Gene St. Clair, 44, of Portland, Oregon, was sentenced to 144 months in federal prison and five years’ supervised release. St. Clair was previously sentenced to 70 months in state prison. He will serve his state and federal prison sentences concurrently in federal prison.
According to court documents, on July 29, 2019, St. Clair fled from Hood River County Sheriff’s Office deputies on a motorcycle at more than 100 miles per hour. A Multnomah County Sheriff’s Office sergeant spotted St. Clair traveling westbound on Interstate-84 toward Portland. St. Clair left I-84 before the sergeant could stop him. The sergeant located St. Clair in a gravel lot off the highway and approach him on foot. Without warning, St. Clair hurled his motorcycle helmet toward the sergeant, striking the sergeant in the face and opening a large gash on his forehead.
Thinking quickly, the deputy pushed St. Clair’s motorcycle over so St. Clair could not flee and drew his gun. St. Clair fled on foot, yelling “I have a gun.” Another deputy deployed a taser, bringing St. Clair to the ground and, after a brief struggle, St. Clair was placed under arrest. Once St. Clair was secured, deputies search his backpack and found a loaded 9mm semi-automatic pistol with a round chambered, $1,440 in cash, and more than 300 grams of methamphetamine. The gun had been reported stolen. The deputies later learned St. Clair was traveling with a revoked driver’s license and had two outstanding felony arrest warrants.
On September 11, 2019, a federal grand jury in Portland indicted St. Clair for possessing with intent to distribute methamphetamine. A Multnomah County grand jury indicted St. Clair on several other offenses, including second degree assault and assaulting a public safety officer. Later, St. Clair was charged by federal criminal information with illegally possessing a firearm as a convicted felon.
On May 14, 2021, St. Clair pleaded guilty in federal court. He was sentenced in state court on June 4, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon and Multnomah County District Attorney Mike Schmidt made the announcement.
This case was investigated by the Multnomah County Sheriff’s Office and the FBI. Assistant U.S. Attorney Gary Sussman and Multnomah County Deputy District Attorney David Hannon prosecuted the cases.
Hoover Criminal Gang Member Sentenced to Federal Prison for Drug and Gun OffensesRead the Press Release
PORTLAND, Ore.—A known Hoover Criminal Gang member and resident of Portland was sentenced to federal prison today for his role in a fentanyl trafficking conspiracy.
Aumontae Wayne Smith, 22, was sentenced to 70 months in federal prison and five years’ supervised release.
According to court documents and testimony, Smith and an unnamed accomplice conspired with one another to distribute counterfeit oxycodone pills containing fentanyl in and around Portland. Investigators seized six firearms from Smith and his accomplice with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Further investigation revealed Smith purchased 16 firearms that were linked to 17 different shootings in the Portland area between April and December 2020.
On April 6, 2021, a federal grand jury in Portland returned an indictment charging Smith with conspiring to distribute and possess with intent to distribute fentanyl, possessing with intent to distribute fentanyl, and possessing a firearm in furtherance of a drug trafficking crime. On April 16, 2021, he voluntarily surrendered to law enforcement.
On May 18, 2021, Smith pleaded guilty to possessing with intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime.
As part of his plea agreement, Smith agreed to forfeit $18,919 in cash, a .40 caliber pistol, and ammunition seized by law enforcement. He also agreed to abandon interest in five additional firearms, including two semi-automatic rifles, and associated ammunition.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Portland Police Bureau, FBI, ATF, Multnomah County Sheriff’s Office, and Homeland Security Investigations. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Former Nike Marketing Manager Sentenced in Scheme to Defraud CompanyRead the Press Release
PORTLAND, Ore.—A former marketing manager at Nike, Inc. was sentenced to more than two-and-a-half years in federal prison today for perpetrating a scheme to defraud his former employer and a childhood friend.
Errol Andam, 47, formerly of Beaverton, Oregon, was sentenced to 31 months in federal prison and 3 years of supervised release. Andam was also ordered to pay more than $1.6 million in restitution. The Internal Revenue Service had already seized $212,838 in criminally-derived proceeds from Andam, and those were forfeited as well.
According to court documents, from 2001 until his termination in 2018, Andam was employed by Nike at its headquarters in Beaverton. Most recently, Andam worked as a manager in the company’s North American Retail Brand Marketing division wherein he managed the design, build-out, and operation of “pop-up” retail venues, temporary Nike shops situated near and tailored to sports competitions and other special events around the U.S.
In the summer of 2016, Andam recruited a childhood friend to establish a company to design and build the pop-up venues as an independent contractor for Nike. Andam used his authority as a manager at Nike to ensure that his friend’s company was consistently awarded the contracts for these jobs. Though he had no formal role in his friend’s company, Andam assumed control of much of the company’s financial operations, managing financial accounts and issuing invoices to Nike.
To conceal his role in the scheme, Andam used an alter ego, “Frank Little,” to invoice Nike and manage the contract company’s account with Square, Inc., a California-based provider of mobile credit-card-processing services. In 2016, Andam also renewed the lapsed registration of an Oregon-based limited liability corporation (LLC) he owned so that he could use the defunct entity as a shell company to funnel the proceeds diverted from Nike and his friend’s company to accounts under his personal control.
Beginning in September 2016, Andam caused credit-card sales at various pop-up venues around the U.S. to be run through card readers associated with a Square account owned by his friend’s company. These proceeds were transferred to Square in California and then to Andam’s LLC bank account in Oregon. Andam represented to both Nike and his friend that the proceeds of these sales were credited against the total amount Nike owed to his friend’s company. In truth, Andam simply pocketed the proceeds and, as “Frank Little,” invoiced Nike for the full cost of the contracted services.
From September 2016 through December 2018, Andam diverted and embezzled nearly $1.5 million in Nike proceeds for his own use. In July 2018, Andam submitted a fake financial statement from his LLC in support of a residential mortgage loan application. The financial statement falsely reflected as revenue checks for $194,000 drawn on a bank account owned by his friend’s business. Andam forged his friend’s signature on one of the checks and withdrew much of that money without his friend’s knowledge.
On February 4, 2021, Andam was charged by criminal information with wire fraud, money laundering, and making false statements on a loan application. On April 12, 2021, he pleaded guilty to all three charges.
This case was investigated by IRS Criminal Investigation and the FBI. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Lane County Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
EUGENE, Ore.—A Lane County, Oregon man was sentenced to federal prison today for distributing large quantities of methamphetamine in Springfield, Oregon.
Delfino Angel Davila-Tamayo, 27, was sentenced to 120 months in federal prison and five years’ supervised release.
According to court documents, in April 2018, Davila-Tamayo was identified as a supplier of methamphetamine in the Springfield area. The next month, Davila-Tamayo sold an informant four pounds of methamphetamine. He was arrested the following day when he went to collect payment from the informant.
Investigators searched Davila-Tamayo’s residence and located a .45 caliber pistol, ammunition, drug packaging materials, and scales. He admitted to selling methamphetamine and carrying the pistol for protection.
After his arrest, Davila-Tamayo was granted pre-trial release and fled. After being on the run for more than a year, he was located and arrested a second time.
On October 16, 2019, a federal grand jury in Eugene returned a three-count indictment charging Davila-Tamayo with distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
On April 28, 2021, Davila-Tamayo pleaded guilty to distribution of methamphetamine. As part of his plea agreement, Davila-Tamayo agreed to voluntarily abandon the .45 caliber pistol and ammunition seized by law enforcement.
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 and the Springfield Police Department. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Money Launderer for Mexican Drug Trafficking Organization Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Mexican National who jointly operated Tienda Mexicana González Bros., a small convenience store and market in Southeast Portland, was sentenced to federal prison today for using the business and its money transmission licenses to launder millions of dollars in drug proceeds on behalf of a Mexico-based drug trafficking organization operating in the Portland Metropolitan Area.
Jesus González Vazquez, 37, of Jalisco, Mexico, was sentenced to 132 months in federal prison and three years’ supervised release.
“Money launderers who help drug trafficking organizations transfer their illegal proceeds are equally culpable for the path of destruction caused by illegal drugs. While drug trafficking organizations can quickly replace low-level couriers and dealers when they are arrested by law enforcement, it’s much harder for these organizations to quickly replace savvy, large volume money launderers like Mr. González Vazquez and his brother Mr. Romo. Mr. González Vazquez’s prosecution and lengthy prison sentence will challenge this organization’s ability to profit from their crimes and sends a strong message that money laundering is a serious crime with significant consequences,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
“Drug cartels thrive on their lust for money and power,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Operating under the guise of a small convenience store, Vazquez funneled millions of drug profits back to Mexico. This sentence is a successful step towards removing the ability of the cartels to collect their profits from the poison they inject into our communities.”
“This case highlights the importance of teaming with our federal and local partners in order to address these and other related large-scale issues,” said Interim Chief Claudio Grandjean of the Gresham Police Department. “The opioid crisis is ravaging so many in our communities across the region and across the country. I’m proud of the part the Gresham Police Department was able to play in holding those accountable who seek to profit from others’ misery.”
According to court documents, beginning in 2018, two men, Samuel Diaz and Faustino Monroy, organized, led, and ran a drug trafficking organization, based in Mexico, responsible for trafficking hundreds of pounds of methamphetamine and heroin into Oregon for distribution. Diaz and Monroy worked closely with two associates, Edgar Omar Quiroz and Gerson Fernando Martinez-Cruz, who ran a Portland distribution cell. At its peak, Quiroz and Martinez-Cruz’s cell was responsible for distributing as much as 77 pounds of methamphetamine and 55 pounds of heroin weekly in and around Portland.
The organization’s numerous sources of supply would import large quantities of illegal drugs that were taken to stash houses throughout the metro area where they were processed and prepared for sale. A large network of local drug dealers would then distribute user quantities of each drug. The organization would routinely change stash locations, rotate vehicles and phones, and pay individual couriers to take time off to avoid detection by law enforcement.
In approximately 2011, González Vazquez moved to Oregon and began working with his co-defendant and brother, Juan Antonio Romo, 46, also of Jalisco, at the González Bros. market. During this time, the market was an authorized agent for Sigue Corporation; Servicio UniTeller, Inc.; and Continental Exchange Solutions/Ria Financial, three large money services businesses known primarily for international money wires. Between January 2015 and October 2019, the majority of money transfers initiated at the market were conducted by González Vazquez and Romo.
On a continuing basis, González Vazquez and Romo would receive the proceeds of the Diaz-Monroy organization’s illegal drug sales in the form of bulk cash delivered by couriers to the González Bros. market. González Vazquez and Romo would wire the money to various DTO contacts throughout Mexico, structuring the transfers into multiple smaller transactions to avoid detection by the money services businesses or financial regulators. According to the government’s evidence, between January 2015 and October 2019, González Vazquez and Romo laundered at least $19 million dollars in drug proceeds from the market.
In addition to laundering the DTO’s proceeds, González Vazquez also performed other illegal functions for the organization, including facilitating the purchase of weapons in the U.S. to smuggle to Mexico, facilitating large drug transactions, assisting the escape of a fugitive to Mexico, assisting various drug dealers obtain false driver’s licenses, and helping DTO associates illegally enter the U.S.
In October 2019, González Vazquez and many of his co-defendants were arrested as part of a coordinated, multi-agency law enforcement operation. Investigators executed federal search warrants at more than a dozen locations throughout the Portland area, seizing 22 pounds of methamphetamine, quantities of heroin and cocaine, and seven firearms. González Vazquez and his co-defendants arrested as part of the takedown joined several others already in state custody on related charges. In total, law enforcement seized 51 firearms, including assault rifles, shotguns, and handguns, from defendants affiliated with the Diaz-Monroy drug trafficking organization.
On October 24, 2019, a federal grand jury in Portland returned a 61-count superseding indictment charging González Vazquez and 41 others for their roles in the drug trafficking and money laundering conspiracy.
On March 24, 2021, González Vazquez pleaded guilty to conspiring to commit money laundering.
During his sentencing, U.S. District Court Judge Michael H. Simon ordered González Vazquez to forfeit all assets seized by law enforcement during the investigation, including body armor, firearms, magazines, several dozen cell phones, and more than $250,000 in criminally-derived proceeds seized by law enforcement.
González Vazquez is the twentieth defendant sentenced for his role in the conspiracy. Defendants have been sentenced to as much as 235 months in prison. 24 defendants are awaiting sentencing and one is pending trial. Diaz, Monroy, and several other defendants are fugitives believed to be in Mexico.
Acting U.S. Attorney Asphaug, Special Agent in Charge Hammer, and Interim Chief Grandjean made the announcement.
This case was investigated by HSI Portland and the Gresham Police Department with assistance from the FBI; U.S. Drug Enforcement Administration; Oregon State Police; Portland Police Bureau; and the Multnomah, Clackamas, and Clark County Sheriff’s Offices. The U.S. Attorney’s Office for the District of Oregon prosecuted the case.
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.
Arizona Accountant Sentenced to Federal Prison for Tax EvasionRead the Press Release
PORTLAND, Ore.—A former certified public accountant and former chief financial officer of a McMinnville, Oregon company was sentenced to federal prison today for evading $99,000 in personal income taxes.
Kent Jensen, 58, was sentenced to 18 months in federal prison and three years’ supervised release.
According to court documents, in 2014 and 2015, Jenson, who also previously worked as an auditor with an international accounting firm and a financial consultant for a business in Milwaukie, Oregon, allegedly set up several nominee companies and nominee bank accounts to conceal most of his personal income from the IRS. Jensen arranged for his financial consulting clients to pay his consulting fees to these nominee companies. He then deposited the funds into nominee bank accounts and used the proceeds for personal expenses. In 2014 and 2015, Jensen submitted false personal income tax returns that substantially underreported his personal income and the taxes owed.
In February 2021, Jensen was charged by criminal information with two counts of felony tax evasion. He pleaded to both charges on April 19, 2021.
During sentencing, U.S. District Court Judge Karin J. Immergut ordered Jensen to pay $99,000 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 and prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Prolific Tax Cheat Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—An Oregon man pleaded guilty today to six felony charges after failing to pay more than $1.7 million in personal income taxes in a complex tax evasion scheme dating back to 2001.
Robert Andrew Lund, of Lebanon, Oregon, pleaded guilty to tax evasion, failure to file personal income tax returns, and stealing food stamp and Medicaid benefits.
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 and taking advantage of personal contacts. 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 grand jury 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 is also charged in a separate federal case with making a false statement in connection with a personal bankruptcy case. All of Lund’s remaining charges will be dismissed as part of his plea agreement.
Lund faces a maximum sentence of 27 years in prison, $950,000 in fines, and three years’ supervised release. He will be sentenced on October 14, 2021 before U.S. District Court Judge Michael H. Simon.
As part of his plea agreement, Lund will 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.
Local Entrepreneur Faces Federal Charges for Covid-Relief FraudRead the Press Release
PORTLAND, Ore.—An indictment was unsealed in federal court today charging a Portland entrepreneur with fraudulently applying for and converting to his personal use loans intended to help small businesses during the COVID-19 pandemic.
Peter Peacock Blood, 57, has been charged with two counts of loan fraud.
According to court documents, Blood is the sole owner and principal officer of two Oregon corporations, Cycle Power Partners, LLC, and Cycle Holdings, LLC. According to tax returns filed in 2019 and 2020, Cycle Power Partners had two or fewer employees and paid less than $6,900 in quarterly wages and other compensation. No quarterly tax returns were filed for Cycle Holdings during this time period.
In April 2020, Blood is alleged to have knowingly made false statements on two separate Paycheck Protection Program loan applications. In these applications, Blood claimed his companies had 10 employees and an average monthly payroll in excess of $116,000. The first application resulted in a loan of more than $332,000; the second yielded a loan of more than $290,000.
If convicted, Blood faces a maximum sentence of 30 years in federal prison, 5 years’ supervised release, and fines of up to $2 million.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration, the Small Business Administration Office of Inspector General, and the FBI. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The Paycheck Protection Program is an economic relief program authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and administered by the Small Business Administration. 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 May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit http://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Fourth Oregon Bull Trout Poacher Sentenced in Federal Court After Coordinated Law Enforcement OperationRead the Press Release
PORTLAND, Ore.—Tyler Glenn Chance Warren, 31, of Pendleton, Oregon, was sentenced to three years’ federal probation, a $1,000 fine, 40 hours of community service, and a three-year fishing ban after illegally taking bull trout from the Metolius River in the Deschutes National Forest.
Warren is the fourth Oregon resident convicted in federal court for illegally taking bull trout from area waters since Operation No Bull, a coordinated anti-poaching law enforcement operation, launched in 2017. Since its inception, the operation has resulted in criminal charges, civil penalties, or citations for more than 30 bull trout poachers in federal, state, and Tribal courts.
According to court documents, on December 3, 2017, Warren and co-defendant Thomas R. Campbell, 30, of Culver, Oregon, illegally took several bull trout from the Metolius River and the Eyerly Property, a portion of protected land adjacent to the Metolius near its confluence with Lake Billy Chinook. The Eyerly Property is held in trust by the U.S. for the Confederated Tribes of Warm Springs and only accessible to tribal members.
On December 4, 2017, Campbell posted a photo on Instagram of himself holding a juvenile bull trout. Another Instagram post showed Warren holding a bull trout on the Metolius. Investigators later found more photos on Campbell’s phone including several that Campbell and Warren had texted to each other on December 3. One of the photos depicted Warren holding a bull trout over a cast iron pan containing steaming fish meat. Another depicted Warren holding a dead bull trout with a beer can wedged in its mouth. Warren transported the fish to his residence in Redmond where he texted Campbell two additional photos of Ziploc bags filled with bull trout fillets. Investigators believe Warren took at least four bull trout from the Metolius on December 3, but the exact number is unknown.
On September 9, 2019, Warren, Campbell, and a third co-defendant, Joshua Alan Hanslovan, 29, of Albany, Oregon, were charged by criminal information with violating the Lacey Act. All three men later waived indictment and pleaded guilty. On November 23, 2020, Campbell was sentenced to five years’ federal probation, a $6,000 fine, and 300 hours of community service ordered to be served on habitat restoration and conservation projects. On June 16, 2021, Hanslovan was sentenced to three years’ federal probation, a three-year angling ban, and 125 hours of community service. On December 7, 2021, a fourth poacher, Tyrone T. Wacker, 42, of Culver, Oregon was sentenced in a separate criminal case to five years’ probation, a three-year angling and hunting ban, a $1,000 fine, and 90 hours of community service.
The fines issued as part of federal sentences in these cases were ordered to be paid to the Lacey Act Reward Account, a fund used to provide monetary awards to those who provide information about wildlife crimes and to pay costs incurred caring for fish, wildlife or plants held as evidence in ongoing investigations.
Bull trout are listed as threatened under the Endangered Species Act and are vulnerable to overfishing. Poaching represents a lethal threat to their recovery. Today, bull trout inhabit less than half of their historic range. Central Oregon’s Metolius River is an important spawning ground for the fish and helps to populate other waters. Bull trout are revered by anglers and are an important Tribal resource.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement; Oregon State Police Fish and Wildlife Division; Confederated Tribes of Warm Springs, Branch of Natural Resources; and U.S. Forest Service Law Enforcement and Investigations. It was prosecuted by Will McLaren and Pam Paaso, Assistant U.S. Attorneys for the District of Oregon.
The U.S. Fish and Wildlife Service is responsible for protecting America’s wildlife from poaching, illegal commercialization, and other kinds of wildlife crime. If you have information related to a wildlife crime, please call 1-844-FWS-TIPS (1-844-397-8477) or email [email protected].
Newport Man Sentenced to Federal Prison for Creating Illegal Video Streaming and Downloading WebsitesRead the Press Release
EUGENE, Ore.—A Newport, Oregon man was sentenced to federal prison today for creating websites to illegally distribute thousands of copyright-protected movies and television shows and evading taxes on the profits of his illicit endeavor.
Talon White, 31, was sentenced to 12 months and one day in federal prison and three years’ supervised release.
According to court documents, in October 2013, investigators received information regarding numerous illegal websites linked to White that allowed paid subscribers to stream and download thousands of copyright-protected movies and television shows. In 2014, the Motion Picture Association of America (MPAA), an organization that assists the motion picture and television industry in protecting its intellectual property rights, demanded White cease and desist his illegal activity. White ignored the demand. Over the next four years, White migrated his illicit business and subscribers from one website to another to avoid detection.
By 2018, White had amassed millions of dollars in subscription fees from his websites. Between February 2018 and September 2018 alone, he collected nearly $3 million in fees. In November 2018, investigators served search and seizure warrants on his house in Newport and several bank accounts. Agents seized $3.9 million from his accounts, $35,000 in cash, and more than $1 million in cryptocurrency. Between 2013 and 2017, White also filed false personal income tax returns, underreporting his income by more than $4.4 million and causing a tax loss to the IRS of more than $1.7 million.
On November 1, 2019, White was charged by criminal information with copyright infringement and tax evasion. On November 25, 2019, White pleaded guilty to both charges.
During sentencing, U.S. District Court Judge Ann L. Aiken ordered White to pay more than $4.3 million in restitution to the MPAA and IRS. White must also forfeit all U.S. currency and cryptocurrency seized from his bank accounts, in addition to his Newport house that was purchased with proceeds of his scheme.
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. Assistant U.S. Attorneys Gavin W. Bruce and Amy Potter prosecuted the case.
Washington State Man Sentenced to 10 Years in Federal Prison After Traveling Across State Lines for Sex with a MinorRead the Press Release
EUGENE, Ore.—A Vancouver, Washington man was sentenced to federal prison today for sending sexually explicit emails and text messages to an undercover law enforcement officer posing online as a 13-year-old girl, and then traveling across state lines for a planned sexual encounter with the child.
Daniel Lee Baldie, 35, was sentenced to 10 years in prison and 25 years’ supervised release.
According to court documents, in January and February 2020, Baldie sent emails and text messages to a Benton County Sheriff’s Office deputy posing online as a 13-year-old girl. Baldie’s emails included requests for a nude photo and descriptions of sexual acts he would engage in with the child. Baldie also sent the deputy a photo of his genitals. As part of the email and text message exchange, Baldie arranged to meet the purported child and bring her back to his residence in Vancouver for a sexual encounter.
On February 7, 2020, law enforcement officers followed Baldie from his residence to a meeting location in Corvallis, Oregon where he was arrested. Baldie admitted he intended to meet the child and take her back to his residence.
On February 11, 2020, Baldie was charged by criminal complaint with traveling with intent to engage in illicit sexual conduct, attempted production of child pornography, and coercion and enticement. On March 30, 2021, he pleaded guilty to attempted coercion and enticement of a minor.
This case was investigated by the Benton County Sheriff’s Office and the FBI. It was prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon and the Benton County District Attorney’s Office
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Portland Man Sentenced to 19 Years in Federal Prison After Second Armed Career Criminal Act ConvictionRead the Press Release
PORTLAND, Ore.—After serving more than 15 years in federal prison for his first conviction under the Armed Career Criminal Act, a Portland man is headed back to federal prison for new drug and firearm offenses committed while on post-prison supervision.
Kelly David Ankeny, Sr., 61, was sentenced to 230 months in federal prison.
According to court documents, in October 2003, after being released from state prison, Ankeny took up residence in a house occupied by his 18-year-old son and his son’s roommates. At the time, Ankeny had prior convictions for second degree robbery, felon in possession of a firearm, and drug trafficking. Before long, Ankeny took over his son’s house, started selling methamphetamine, and obtained several firearms.
Ankeny’s ex-wife and the mother of his 18-year-old son tried to intervene and get Ankeny to leave the home. In response, Ankeny twice threatened her with a firearm. The ex-wife reported Ankeny’s conduct to the Portland Police Bureau who, after obtaining a federal search warrant, entered the home on November 20, 2003. Officers found Ankeny sitting in a recliner near the front door. Ankeny had one loaded handgun tucked beside the cushion of his recliner and a second sitting on an adjacent chair. Three other firearms were found in the house, including a sawed off shotgun and rifle.
On January 13, 2004, Ankeny was indicted by a federal grand jury in Portland for being a felon in possession of a firearm and illegally possessing an unregistered sawed off shotgun. On February 15, 2005, he pleaded guilty to both charges. After serving more than 15 years in federal prison, Ankeny began his term of supervised release on August 14, 2018. Less than one year after being released from prison, Ankeny admitted to using methamphetamine.
On June 25, 2019, several U.S. Probation officers conducted a home visit to Ankeny’s Gresham, Oregon residence. A safe in Ankeny’s room was found to contain more than four pounds of methamphetamine, a pound of heroin, and drug packaging material. During the search, Ankeny became enraged, hit a wall and yelled at the officers. Believing there was excessive danger in arresting Ankeny on the spot, the officers ordered Ankeny to report to the U.S. Probation office later that afternoon. Ankeny failed to appear and cut off his GPS monitoring bracelet.
U.S. Probation sought the assistance of the U.S. Marshals Service and Multnomah County Sheriff’s Office Special Investigations Unit who, over the next two months, attempted to locate and arrest Ankeny. On August 20, 2019, officers identified Ankeny driving a vehicle in east Multnomah County. They waited for Ankeny to enter a residence and developed a tactical plan to arrest him when he returned to this vehicle.
Later that day, Ankeny left the residence and got into his car. A deputy U.S. Marshal used his vehicle to block Ankeny’s car and Ankeny was ordered out at gunpoint. After he failed to comply with the orders, officers broke Ankeny’s driver side window, cut his seat belt, and removed him from the vehicle. A loaded 9mm firearm was found in a backpack, which was on Ankeny’s front passenger seat. Two additional handguns, ammunition, $16,000 in cash, and quantities of methamphetamine and cocaine were located elsewhere in the vehicle.
On September 26, 2019, a federal grand jury in Portland returned an eight-count indictment charging Ankeny with possessing with intent to distribute methamphetamine, heroin, and cocaine; possessing a firearm in furtherance of a drug trafficking crime; and illegally possessing firearms as a convicted felon.
On December 17, 2020, Ankeny pleaded guilty to possessing with intent to distribute methamphetamine and illegally possessing a firearm as a convicted felon.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Marshals Service, Multnomah County Sheriff’s Office, and Oregon State Police Forensic Services Division. It was prosecuted by Thomas H. Edmonds, Assistant U.S. Attorney for the District of Oregon.
Former Grass Seed Company Manager Sentenced to Federal Prison for Schemes to Defraud Simplot and Its CustomersRead the Press Release
PORTLAND, Ore.—The former general manager of the Jacklin Seed Company, a Pacific Northwest producer and marketer of grass seed and turfgrass, was sentenced to federal prison today for conspiring to commit wire fraud and money laundering as part of multiple schemes to defraud Jacklin’s former owner, the J.R. Simplot Company, and its customers.
Christopher Claypool, 53, a resident of Spokane, Washington, was sentenced to three years in federal prison and three years’ supervised release.
Under the terms of his plea agreement, Claypool has already paid nearly $8.3 million in restitution and agreed to forfeit nearly $7.8 million in criminally derived proceeds.
As general manager of Jacklin, Claypool oversaw the company’s product sales to domestic and foreign distributors. Jacklin contracted with independent growers in Oregon for the production of proprietary grass seed varieties and fulfilled orders from a distribution facility in Albany, Oregon. Differences in grass seed yield rates resulted in the over-delivery of some varieties and underproduction of others.
According to court documents, at some point between 2013 and 2015, Claypool and other Jacklin employees realized that growers’ preference for higher-yield grasses was creating substantial shortages of lower-yield varieties Jacklin had contracted to deliver to its customers. Claypool and a colleague who oversaw product fulfillment at the company’s Albany distribution facility recognized that these shortages would either cause Jacklin to fail to deliver on its existing contracts or require Jacklin to pay a premium to growers to acquire necessary inventory, substantially eroding company profits. Claypool and his colleague anticipated that either result would negatively affect their careers.
From January 2015 and continuing until at least the summer of 2019, Claypool and his colleague directed Jacklin employees, at the Albany facility and elsewhere, to fulfill customer orders with different varieties of grass seed than the customers had ordered, to conceal such substitutions from the customers, and to invoice the customers as though no substitutions had taken place. Claypool and his colleague referred to this scheme as “getting creative.”
To conceal the unauthorized substitutions, Claypool and his colleague directed Jacklin employees to package the substitute seed varieties with false and misleading labels. They also directed employees to invoice the customers under the original terms of their contracts, notwithstanding the unauthorized substitutions. As a result of this scheme, Simplot has refunded or credited more than $1.5 million to defrauded buyers.
In addition to the undisclosed seed substitutions, Claypool engaged in several other fraudulent schemes while serving as Jacklin’s general manager. In one scheme, he directed an accomplice to create a limited-liability corporation (LLC) to pose as an independent grass seed broker. Claypool and a colleague conspired to route a portion of Jacklin’s overseas sales through a competing grass-seed seller based in Jefferson, Oregon. The company would, in turn, add its own mark-up to the sales and kick back outsized commissions to Claypool through his accomplice’s LLC. From December 2018 through August 2019, Claypool generated more than $369,000 in fraudulent commissions.
In a third scheme, Claypool conspired with the owner of an independent travel agency in Spokane to inflate the purported costs of Claypool’s international business travel. Claypool traveled overseas extensively for business and had authority to approve his own travel expenses. In lieu of using Simplot’s contract travel agency, Claypool booked his flights through the independent travel agent. The agent booked economy and other lower-cost fares for Claypool, but created fake first-class bookings on the most expensive comparable itineraries in order to generate inflated invoices that he transmitted to Simplot, through Claypool, for payment. In total, the agent overbilled more than $500,000 for international airfare, the majority of which Claypool ultimately received in kickbacks from the agent.
In the most lucrative fraud scheme, Claypool directed Simplot’s payment of more than twelve million dollars in “rebates” and “commissions” to entities that were posing as foreign sales partners but were, in fact, fronts for Claypool’s coconspirators in embezzling those funds. The coconspirators then transmitted part of their ill-gotten gains from accounts in Hong Kong to real estate investments in Hawaii under Claypool’s control. Years later, Claypool sold the real estate and wired the proceeds to investment accounts in Spokane as part of an elaborate money laundering operation.
On February 24, 2021, Claypool was charged by criminal information with conspiracy to commit wire fraud and money laundering. On March 15, 2021, he waived indictment and pleaded guilty to all charges.
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 was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Oregon Man Pleads Guilty for Role in Covid-Relief Fraud SchemeRead the Press Release
PORTLAND, Ore.—An Oregon man pleaded guilty today for his role in a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Russell Anthony Schort, 39, of Myrtle Creek, Oregon, pleaded guilty to bank fraud.
Schort worked with his accomplice, Andrew Aaron Lloyd, 51, of Lebanon, Oregon, to take advantage of the Small Business Administration’s Paycheck Protection Program (PPP), an integral part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March 2020. The CARES Act provided emergency financial assistance to millions of Americans and small businesses suffering from the economic effects of the COVID-19 pandemic.
According to court documents, on May 1, 2020, Lloyd submitted a PPP loan application under Schort’s business name, Schort Lee Construction, to U.S. Bank. Included in the loan application package was a false IRS form 944 listing 2019 wages paid of more than $3 million. The application also included a fake list of fifty-six employees and the wages purportedly paid to each employee.
Based on these false representations, U.S. Bank processed the PPP loan application, resulting in the disbursal of more than $600,000 into Schort’s bank account. Three days later, Schort transferred $307,000 to Lloyd’s bank account, who used the funds to purchase securities through an online brokerage account.
On January 5, 2021, Schort was charged by criminal complaint with wire fraud, bank fraud, and money laundering. On June 8, 2021, he was charged by superseding criminal information with bank fraud.
Schort faces a maximum sentence of 30 years in prison, a $1 million fine, and five years of supervised release. He will be sentenced on October 21, 2021 before U.S. District Court Judge Michael J. McShane.
As part of his plea agreement, Schort has agreed to pay no less than $294,552 in restitution to the U.S. Treasury.
On June 17, 2021, Lloyd pleaded guilty to bank fraud, money laundering, and aggravated identity theft.
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 SBA Office of Inspector General and IRS Criminal Investigation. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the 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.
Hillsboro Man Pleads Guilty in Mail and Identity Theft SchemeRead the Press Release
PORTLAND, Ore.—A Hillsboro, Oregon man pleaded guilty today after 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, pleaded guilty to possessing stolen mail and a counterfeit U.S. Postal Service arrow key, bank fraud, and aggravated identity theft.
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.
With his continued acceptance of responsibility, the U.S. Attorney’s Office will join Daan in jointly recommending a 90 months federal prison sentence to run concurrently with sentences previously imposed in the Multnomah and Washington County Circuit Courts for similar conduct. If the recommended federal sentence is imposed, the Clackamas County District Attorney’s Office will move to dismiss pending charges filed against Daan in the Clackamas County Circuit Court.
Daan will be sentenced on September 29, 2021 before U.S. District Court Judge Michael W. Mosman.
As part of his plea agreement, Daan has agreed to pay restitution in full to his victims and abandon his right to criminally derived proceeds and property seized by law enforcement.
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. This case was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Salem Area Methamphetamine Supplier Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore.—A Salem, Oregon man was sentenced to federal prison today for providing local drug dealers in Salem and Albany, Oregon with methamphetamine and illegally possessing a firearm as a convicted felon.
Frank Defelice, 63, was sentenced to 8 years and four months in federal prison and four years’ supervised release.
According to court documents, in 2016, following a months’ long investigation into local drug trafficking and firearms violations, Defelice was identified by local and federal law enforcement as a major supplier of methamphetamine to drug dealers in Salem and Albany. On January 27, 2017, officers stopped Defelice’s vehicle and arrested him pursuant to a state warrant. Officers found approximately 15 grams of methamphetamine under the driver’s seat of Defelice’s vehicle. Police then searched his home and recovered an additional 324 grams of methamphetamine as well as scales, drug packaging material, a drug ledger, and a loaded .380 caliber semi-automatic handgun. Officers also found and seized more than $37,000 in cash on Defelice’s person and in his residence.
On November 2, 2016, Defelice was charged by criminal complaint with possessing with intent to distribute methamphetamine. Later, on June 21, 2017, a federal grand jury in Eugene returned a five-count indictment charging Defelice with possessing with intent to distribute methamphetamine, possessing a firearm during and in relation to a drug trafficking crime, and possessing a firearm as a convicted felon.
On January 4, 2021, Defelice pleaded guilty to possessing with intent to distribute methamphetamine and possessing a firearm as a convicted felon.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Salem Police Department, Albany Police Department, and U.S. Drug Enforcement Administration. Assistant U.S. Attorney Pamela Paaso prosecuted the case.
Local Adoption Agency Bookkeeper Pleads Guilty in Scheme to Defraud Employer and FamilyRead the Press Release
PORTLAND, Ore.—A Hillsboro, Oregon woman pleaded guilty today for engaging in a multi-year scheme to defraud her employer, a non-profit adoption and surrogacy agency operating in Oregon and Washington, and her extended family.
Melodie Ann Eckland, 55, pleaded guilty to wire fraud, aggravated identity theft, filing a false tax return, and willfully failing to collect or pay payroll taxes.
According to court documents, from at least 2011 and continuing until April 2018, Eckland was employed as a bookkeeper for a local adoption and surrogacy agency. Her duties included maintaining agency books and records, managing payroll, filing employment tax returns, and paying quarterly employment taxes to the IRS. Eckland also provided financial statements to the agency’s board of directors, but did not have signature authority over the organization’s business bank account.
Eckland used her position to steal funds from the agency by making unauthorized wire transfers and writing unauthorized checks to herself. Eckland also transferred agency funds in the form of bonuses to her personal bank account. To conceal her scheme, Eckland maintained two sets of financial records. One version, which she provided to the board of directors, showed the business books as they should have been maintained. The other version showed the true payments she made to herself over the course of her employment.
To cover the money she had stolen, Eckland applied for loans from at least five lending agencies on behalf of the adoption agency, using the names of the agency’s owners without their permission. Eckland altered agency financial records to make it appear as though she owned the agency and was authorized to enter into the loan agreements. Beginning in 2016, Eckland stopped making the agency’s quarterly employment tax payments to the IRS and stopped filing employment tax returns. As a result, the agency owed more than $94,000 in past due employment taxes.
To further conceal her scheme, Eckland stole funds from a bank account opened on behalf of her deceased brother-in-law’s estate. As executor of the estate, Eckland’s husband was tasked with selling his brother’s assets, paying estate bills, and preserving the remaining funds for the benefit of his brother’s children. Eckland forged her husband’s signature on unauthorized estate checks and made unauthorized wire transfers of estate funds to herself. She sent a portion of the more than $123,000 stolen from the estate to the adoption agency’s bank account to conceal her theft of agency funds.
IRS records indicated that Eckland did not report any of the embezzled funds on her federal income tax returns for 2013, 2014, and 2017. In 2015 and 2016, she reported more than $550,000 as “other income,” but failed to pay the taxes due. Between 2013 and 2017, Eckland failed to report more than $675,000 in income, resulting in a tax loss of more than $345,000. As a result of her scheme, Eckland’s victims—including the adoption agency and its owners, her brother-in-law’s estate, and the IRS—suffered a total loss of more than $1.5 million.
On June 2, 2021, Eckland was charged by criminal information with wire fraud, aggravated identity theft, filing a false tax return, and willfully failing to collect or pay payroll taxes.
Eckland faces a maximum sentence of 30 years in prison, a $750,000 fine, and three years’ supervised release. She will be sentenced on November 8, 2021 before U.S. District Court Judge Marco A. Hernandez.
As part of her plea agreement, Eckland has agreed to pay restitution of up to $2.5 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 Hillsboro Police Department. It is being prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
Coos Bay Man Sentenced to 30 Years in Federal Prison for Sexually Exploiting a 3-Year-Old ChildRead the Press Release
EUGENE, Ore.—A Coos Bay, Oregon man was sentenced to federal prison today for producing sexually explicit images and videos of a 3-year-old child.
Keith James Atherton, 33, was sentenced to 30 years in federal prison followed by a life term of supervised release.
According to court documents, on July 13, 2018, an undercover agent from Homeland Security Investigations (HSI) viewed child sexual abuse material streamed on a video chat website. Less than 24 hours later, Atherton was identified as the perpetrator, located, and taken into federal custody. Further investigation revealed that Atherton had produced several sexually explicit images and videos involving a 3-year-old child. Investigators seized more than 10 digital devices from Atherton, containing at least 35,000 images and 8,000 videos depicting the sexual abuse of infants, toddlers, and young children.
On July 18, 2018, a federal grand jury in Eugene returned a three-count indictment charging Atherton with using or attempting to use a minor to produce a visual depiction of sexually explicit conduct and possession and distribution of child pornography. On February 24, 2021, Atherton pleaded guilty to using or attempting to use a minor to produce a visual depiction of sexually explicit conduct.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations with assistance from the Coos Bay Police Department, the Coos County Sheriff’s Office and the Oregon State Police. Assistant U.S. Attorney Jeffrey S. Sweet prosecuted the case with assistance from the Coos County District Attorney’s Office.
Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at www.ice.gov/tips.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Joint Statement on Portland Police Bureau's Rapid Response TeamRead the Press Release
PORTLAND, Ore.—Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon, and Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon, have the issued the following joint statement following the resignation of members of the Portland Police Bureau’s Rapid Response Team.
“Communities across the nation have endured many challenges over the past year as they attempt to address racial inequities in the wake of the murder of George Floyd. In Portland, those challenges included large and sometimes violent demonstrations that strained our local resources and repeatedly placed officers in the difficult position of policing large and sometimes hostile crowds. As law enforcement officials, we recognize that community members and law enforcement officers alike are responsible for their conduct and that our judicial system is designed to address wrongdoing equally, whether by community members or law enforcement officers.
Like all Portlanders, we are proud of our community’s long history of peaceful civic activism and free speech. We are also proud of the federal, state, and local law enforcement officers who continue to respond to Portland demonstrations to ensure all community members can exercise their First Amendment rights safely and without the threat of violence. We urge community members to join law enforcement in helping to ensure all future demonstrations remain peaceful and inclusive.”
Oregon Man Pleads Guilty After Pocketing Millions in Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—An Oregon man pleaded guilty today after fraudulently converting to personal use loans intended to help small businesses during the COVID-19 pandemic.
Andrew Aaron Lloyd, 51, of Lebanon, Oregon, pleaded guilty to bank fraud, money laundering, and aggravated identity theft.
Lloyd took advantage of economic relief programs administered by the Small Business Administration (SBA), including Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP). These programs were authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020. The CARES Act provided emergency financial assistance to millions of Americans and small businesses suffering from the economic effects of the COVID-19 pandemic.
“CARES Act relief programs were designed to help American small businesses weather a historically difficult time in our nation’s economic history. Andrew Lloyd saw an opportunity to profit off the COVID-19 pandemic and did so at the expense of hardworking Americans. Our office will continue to investigate and prosecute anyone who seeks to unfairly enrich themselves from public funds set aside to help those in need,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
“While Americans suffered with the economic collapse that COVID-19 brought to our communities, Lloyd decided to cash in on the catastrophe. As hard working, honest people were forced onto unemployment and into food lines, Lloyd was pouring millions of stolen dollars into brokerage accounts and real estate deals. Thanks to our investigative partnerships, he will now face years in prison,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
“As our country continues to recover from the destructive effects of the COVID-19 pandemic, there are individuals like Andrew Lloyd who opt to do further harm to our country by exploiting the suffering of fellow Americans,” said Corinne Kalve, Acting Special Agent in Charge of IRS Criminal Investigation (IRS:CI). “IRS:CI will continue to pursue those who choose to abuse our financial system and who choose to steal pandemic recovery funds for their own illicit gain.”
“Lying to gain access to economic stimulus funds will be met with justice,” said Weston King, SBA Office of Inspector General Western Region Special Agent in Charge. “SBA OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with 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, in October 2020, federal agents initiated an investigation into Lloyd based on information suggesting he had fraudulently applied for PPP loans and EIDL at multiple financial institutions. Beginning in April 2020, Lloyd began submitting loan applications using numerous business names and personally identifiable information of relatives and business associates without their consent.
Lloyd submitted false documentation to justify the loan amounts requested, including an IRS Form 944 listing the 2019 wages purportedly paid by entities controlled by Lloyd. Total wages allegedly paid by these entities ranged from $3 million to more than $4.7 million. Lloyd’s loan applications also included lists of between 56 and 64 employees and the total wages paid to each. The loan application packages included some of the same information across the different business entities, including the businesses’ physical locations and the names of several dozen employees.
In total, Lloyd submitted nine PPP loan applications, six of which were accepted, resulting in a payout of more than $3.4 million. Lloyd also applied for numerous EIDLs, of which one was accepted, resulting in an additional $160,000 in payments to Lloyd. Upon receipt of the funds, Lloyd purchased real estate and invested in securities. Lloyd transferred more than $1.8 million of the above-described PPP loan funds to his E*TRADE Securities brokerage account. Securities Lloyd purchased using the fraudulently acquired funds substantially increased in value.
In January 2021, agents seized Lloyd’s brokerage account, which included 15,740 shares of Tesla, Inc. purchased with proceeds of his fraud. In March 2021, agents seized another account containing more than $660,000 in securities and cash. The securities and cash seized from Lloyd’s accounts are presently valued at more than $11 million.
On January 5, 2021, Lloyd was charged by criminal complaint with wire fraud, bank fraud, and money laundering. He was arrested and made his first appearance in federal court on January 7, 2021. On June 6, 2021, he was charged by superseding criminal information with bank fraud, money laundering, and aggravated identity theft.
With his continued acceptance of responsibility, the U.S. Attorney’s Office will join Lloyd in jointly recommending a sentence of 61 months in federal prison. He will be sentenced on September 9, 2021 before U.S. District Court Judge Michael J. McShane.
As part of his plea agreement, Lloyd has agreed to pay more than $3.6 million in restitution to the U.S. Treasury. Lloyd also agreed to forfeit more than $11 million in cash and securities and 23 properties that were purchased with PPP funds.
An accomplice of Lloyd’s, Russell Anthony Schort, 39, of Myrtle Creek, Oregon, was charged alongside Lloyd for similar conduct. Schort is scheduled to plead guilty on July 1, 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 SBA Office of Inspector General and IRS Criminal Investigation. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Jury Convicts Portland Man for Role in Drug Robbery and ShootingRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found a local man guilty today for shooting and robbing two marijuana sellers in August 2017.
Ernest Franklin Evans, 39, a Portland resident, was found guilty of Hobbs Act robbery and using, carrying, and discharging a firearm in furtherance of a crime of violence and drug trafficking crime.
According to court documents and trial testimony, on August 3, 2017, an associate of Evans set up a ruse to purchase of 10 pounds of marijuana from two local marijuana sellers. After arriving at an agreed upon location, the two marijuana sellers wheeled out a large black tote full of marijuana. Shortly thereafter, two masked men—Evans and a second associate—came out from behind the corner of a building with guns drawn. Evans had a sawed-off shotgun and his associate had a pistol. Evans shot both marijuana sellers with a sawed-off shotgun and took their marijuana.
Evans was arrested on November 19, 2018, following the execution of a federal search warrant on his Portland residence.
On May 11, 2021, a federal grand jury in Portland returned a two-count superseding indictment charging Evans with robbery and using, carrying, and discharging a firearm during a crime of violence and drug trafficking crime.
Evans faces a maximum sentence of life in prison, a $250,000 fine, and five years’ supervised release.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations with assistance from the Portland Police Bureau; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the FBI. It was prosecuted by Assistant U.S. Attorneys Peter D. Sax and Jeffrey S. Sweet.
Colorado Man Pleads Guilty to Federal Hate Crime After Unprovoked Stabbing of Black ManRead the Press Release
EUGENE, Ore.—A Colorado man pleaded guilty today to a federal hate crime for stabbing a Black man from Ontario, Oregon while the man was sitting in a fast-food restaurant.
Nolan Levi Strauss, 27, pleaded guilty to a hate crime involving an attempt to kill.
According to court documents, on the morning of Dec. 21, 2019, a man walked into an Arby’s Restaurant and adjoining Pilot Travel Center in Ontario where he planned to provide documentation for a pending job application. The man sat in a booth by himself, waiting 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. The man tried to grab Strauss’s hands and take the knife, and, in the process, managed to prevent Strauss from stabbing him 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 before collapsing on the floor. Meanwhile, 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. He later admitted he was trying to kill the man because was he was Black.
As a result of Strauss’s attack, the stabbing victim suffered two lacerations to his neck. He was evaluated in Ontario and subsequently life-flighted to a hospital in Boise, Idaho for emergency surgery.
“The defendant is being held accountable for his vicious, racially-motivated attack on a Black man who was targeted because of the color of his skin,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Racially motivated acts of violence must not be tolerated in our country today. The Civil Rights Division of the Department of Justice will continue to work with our federal, state and local partners to ensure that individuals who commit bias motivated crimes are brought to justice for their actions.”
“This crime serves as a horrifying reminder that racism and bigotry still exist and threaten the safety of communities of color. Hate crimes not only hurt victims, but spread fear across entire communities,” said Acting U.S. Attorney Scott Erik Asphaug for the District of Oregon. “This conviction should send a strong message that federal law enforcement will not tolerate hate-motivated acts of violence and will move swiftly to hold those responsible accountable.”
“Everyone deserves to go to work without fearing they will be a victim of violence because of how they look or how they live. Racist attacks like this one—powered by hate and grounded in ignorance—strike at the heart of our community,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon. “We should all draw strength from our diversity and work together to protect our neighbors.”
On Sept. 17, 2020, a federal grand jury in Eugene returned a single-count indictment charging Strauss with a hate crime involving an attempt to kill.
Strauss faces a maximum sentence of life in prison. He will be sentenced on September 9, 2021 before U.S. District Court Judge Michael J. McShane.
Assistant Attorney General Kristen Clarke 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 Ontario Police Department, Oregon State Police, and the Malheur County District Attorney’s Office. 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 Civil Rights Division.
Local Construction Company Owner Pleads Guilty in Tax Evasion SchemeRead the Press Release
PORTLAND, Ore.—A Beaverton, Oregon man pleaded guilty today for his role in a scheme to use construction subcontracting companies to evade $100 million in payroll and income taxes on wages paid to unlicensed construction workers.
Francisco Mendez, 27, pleaded guilty to conspiracy to commit tax evasion.
According to court documents, between January 2014 and February 2018, Mendez conspired with others to make “under the table” cash payments to unlicensed construction work crews for the purpose of evading payroll and income taxes due on these wages.
As part of the scheme, otherwise legitimate construction companies would bid on residential real estate projects knowing they did not have enough employee-workers to perform all the work required. These companies would supplement their own workforce with independent work crews, some of whom did not possess valid Construction Contractors Board (CCB) licenses. Leaders of unlicensed crews would pay a fee to use another company’s CCB license.
Mendez registered a company, obtained a CCB license in his own name, and began accepting payments from unlicensed work crews for the use of his license. The legitimate construction companies did not put these unlicensed work crews on their regular payroll and, instead, wrote checks payable to Mendez’s company. Mendez cashed these payroll checks at check cashing businesses and made “under the table” cash wage payments to the unlicensed work crews. He further began accepting and cashing payroll checks from construction companies on behalf of other CCB license holding companies.
On May 20, 2021, Mendez was charged by criminal information with one count of conspiracy to commit tax evasion.
Mendez faces a maximum sentence of five years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced on September 13, 2021 before U.S. District Court Judge Karin J. Immergut.
As part of the plea agreement, Mendez has agreed to pay restitution in full to the IRS as identified by the government prior to sentencing and ordered by the court.
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.
Beaverton Man Sentenced for Laser Assault on Federal Officer During Portland ProtestRead the Press Release
PORTLAND, Ore.—A Beaverton, Oregon man was sentenced today for shining a high-powered green laser at a uniformed Federal Protective Service (FPS) officer providing security at the Mark O. Hatfield U.S. Courthouse during a protest in July 2020.
Andrew Steven Faulkner, 25, was sentenced to three years’ federal probation to include six months of home detention and 40 hours of community service.
According to court documents, in the early morning hours of July 5, 2020, Faulkner shined a high-powered green laser at an FPS officer working as a member of the security team at the Hatfield Federal Courthouse. The officer was struck in the eye by the laser and quickly moved to avoid prolonged exposure. The officer was able to identify Faulkner and observed him shining the laser in the direction of other officers. When officers approached Faulkner, he attempted to flee, but was ultimately apprehended. The laser, a SDLaser 303 with a warning label cautioning direct eye exposure, was located in Faulkner’s possession.
On July 6, 2020, Faulkner was charged by criminal information with one count of misdemeanor assault on a federal officer. He pleaded guilty to the charge on January 13, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by FPS and the FBI. Assistant U.S. Attorney Ashley R. Cadotte prosecuted the case.
Baker City Man Pleads Guilty in Covid-Relief Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Baker City, Oregon man pleaded guilty today for fraudulently converting loans intended to help small business during the COVID-19 pandemic to his personal use.
Jeremy Clawson, 32, pleaded guilty to one count of theft of public money.
Clawson took advantage of economic relief programs administered by the Small Business Administration (SBA) through Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program (PPP), 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.
According to court documents, on August 11, 2020, the proceeds of an SBA EIDL totaling $145,200 were deposited into an Umpqua Bank account owned by Jeremy 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. Umpqua Bank investigators detected the unusual activity and reported it to the SBA.
SBA loan documents showed that the loan was made for the benefit of Halperin Manufacturing Company in San Diego, California. Though there is no record of any such company, the loan application listed the company’s owner and claimed it employed 350 people. Investigators contacted the person listed as the owner, but that person denied owning or being affiliated with any such company. The purported owner further stated that the company’s supposed address in San Diego was that individual’s personal residence and not a commercial property with 350 employees.
In early September 2020, investigators learned that, in late August, Clawson had been arrested 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, investigators interviewed Clawson at the Baker County Jail where he was incarcerated on an unrelated charge. 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.
Federal agents seized the Dodge Challenger and approximately $50,000 in cash derived from the fraudulent EIDL pursuant to seizure warrants issued by the federal court and voluntary abandonment of funds in third parties’ possession.
Theft of public money is punishable by up to 10 years in prison, a $250,000 fine, and three years’ supervised release. With Clawson’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a 24-month prison sentence followed by three years’ supervised release. Clawson will be sentenced on September 13, 2021.
As part of the plea agreement, Clawson has agreed to pay $125,200 in restitution to the U.S. Treasury.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the SBA and U.S. Secret Service. It is being prosecuted by the U.S. Attorney’s Office 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.
California Man Sentenced to Federal Prison for Distribution of MethamphetamineRead the Press Release
PORTLAND, Ore.—A Coachella, California man was sentenced to federal prison today for transporting five pounds of methamphetamine from Coachella to Aumsville, Oregon.
Gerardo Figueroa-Felix, 36, was sentenced to 70 months in prison followed by four years’ supervised release.
According to court documents, on January 7, 2019, Marion County Sheriff’s Office deputies responded to a call that squatters had returned to a foreclosed property in Aumsville and that there was methamphetamine inside the house. Deputies had locked the property four days prior in response to a court order. Two deputies approached the house together and spotted a white Chevrolet pickup truck with a California license plate backed into the driveway. As they approached, the deputies saw Figueroa-Felix tying up a tarp near the back of the vehicle.
One of the deputies approached Figueroa-Felix and asked why he was on the property. Figueroa-Felix produced three identification cards with his name and photograph on them. The deputy watched as Figueroa-Felix began to reach his hands into the front pockets of his jacket and ordered him to remove them. The deputy then proceeded to search Figueroa-Felix’s person and located a loaded semi-automatic Ruger 9mm handgun in his left-front pants pocket. The deputy discovered a second loaded handgun tucked into Figueroa-Felix’s waistband. Figueroa-Felix also had a double magazine pouch attached to his belt.
The investigation revealed Figueroa-Felix was a drug mule from Coachella and was paid to transport five pounds of crystal methamphetamine from Southern California to Oregon. He previously sold two pounds of methamphetamine on the Aumsville property and returned that day to sell more. Deputies seized three pounds of methamphetamine and large quantities of live .45 caliber ammunition from his truck along with another handgun.
On March 20, 2019, a federal grand jury in Portland returned a three-count indictment charging Figueroa-Felix with possession with intent to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
On March 8, 2021, Figueroa-Felix pleaded guilty to one count of distribution of methamphetamine.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Marion County Sheriff’s Office, Salem Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by Hannah Horsley and Pamela Paaso, Assistant U.S. Attorneys for the District of Oregon.
Fairview Man Faces Federal Charges for Damaging Government Property During Portland RiotsRead the Press Release
PORTLAND, Ore.—A Fairview, Oregon, man is facing federal charges for causing thousands of dollars in damage to federal property, including the Mark O. Hatfield U.S. Courthouse and the U.S. Immigration and Customs Enforcement (ICE) Portland Field Office, during recent riots in Portland.
Anthony Amoss, 33, has been charged by criminal complaint with three counts of destruction of government property.
According to court documents, federal investigators obtained evidence showing that, during three separate riots, Amoss broke more than a dozen windows at the Hatfield Courthouse and ICE Portland Field Office. In the early morning hours of March 14, 2021, Amoss and others threw several objects at Hatfield Courthouse windows, causing more than $143,000 in damage. On March 20 and April 1, 2021, Amoss threw more than 40 objects at ICE Portland Field Office windows, causing more than $21,000 in damage.
Amoss made his initial appearance in federal court on June 2, 2021 before a U.S. Magistrate Judge and was released pending further court proceedings.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case is being investigated by ICE and the Federal Protective Service and prosecuted by Gregory R. Nyhus, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Two Portland Area Residents Face Federal Charges for Crimes Committed During Portland ProtestsRead the Press Release
PORTLAND, Ore.—In separate criminal cases, two Portland area residents are facing federal charges for crimes committed during recent riots near local federal facilities, including the Mark O. Hatfield U.S. Courthouse and the U.S. Immigration and Customs Enforcement (ICE) Portland Field Office.
Richard Timothy Hernandez, 56, of Portland, has been charged by criminal complaint with three counts of destruction of government property. Rowan McManigal, 19, of Lake Oswego, Oregon, has been charged with conveying false or misleading information about possessing incendiary chemical agents on federal property.
U.S. v. Hernandez
According to court documents, federal investigators obtained evidence showing that, during three separate riots, Hernandez broke more than a dozen windows at the Hatfield Courthouse and ICE Portland Field Office. In the early morning hours of March 14, 2021, Hernandez and others threw 13 objects at Hatfield Courthouse windows, causing more than $143,000 in damage. On March 20 and April 29, 2021, Hernandez threw a total of 74 rocks at ICE Portland Field Office windows, causing more than $21,000 in damage.
U.S. v. McManigal
According to court documents, on December 19, 2020, a group of approximately 30 people gathered at the ICE Portland Field Office and proceeded to vandalize the facility. During the gathering, an individual later identified as McManigal was seen pulling the wiring from the building’s card reader and intercom. McManigal stood in a walkway in front of the building’s main entrance for several minutes before their arrest. A search of McManigal’s belongings returned a hoax explosive device with a hand-drawn hazmat placard. McManigal later confessed the device contained water and that “it was meant to waste people’s time” if they were arrested.
Both defendants made their initial appearances in federal court today before a U.S. Magistrate Judge and were released pending further court proceedings.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
These cases are being investigated by ICE and the Federal Protective Service and prosecuted by Gregory R. Nyhus, Assistant U.S. Attorney 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.
Indianapolis Man Faces Federal Charges for Violent Conduct during Portland RiotsRead the Press Release
PORTLAND, Ore.—An Indianapolis, Indiana, man has been charged with three federal felonies after repeatedly and intentionally jeopardizing the lives of police officers, destroying public property, and encouraging others to commit violence during recent riots in Portland.
Malik Fard Muhammad, 24, has been charged by criminal complaint with possession of unregistered destructive devices, engaging in civil disorder and obstructing law enforcement, and using explosives to commit a federal felony.
According to court documents, Muhammad is alleged to have traveled to Portland with his girlfriend from their home in Indianapolis for the specific purpose of violently engaging in civil disorder during recent area riots. On September 5, 2020, during a large civil disturbance in east Portland, demonstrators threw dangerous objects at police, including commercial grade fireworks, Molotov cocktails, and bottles. At least one demonstrator was seriously burned by a Molotov cocktail thrown in the direction of police. Muhammad was present at this event and provided baseball bats to members of the crowd.
Following Muhammad’s arrest in October 2020, law enforcement seized his cell phone and found messages where he bragged about providing the baseball bats to other rioters. The cell phone also contained a shopping list including common ingredients and supplies used to make a Molotov cocktail. The day after the demonstration, police located a discarded baseball bat with a Goodwill price tag in the area where the event occurred. Police found the Goodwill store where the bat was purchased and obtained surveillance footage showing Muhammad and his girlfriend buying the bats and several “growler” bottles.
On September 21, 2020, during a large demonstration near the Multnomah County Sheriff’s Office Penumbra Kelly Building, law enforcement observed an individual light on fire and throw an object toward the building. One officer observed the burning object flying through the air toward his vehicle, landing approximately 15 feet from a police sound truck. Officers recovered the unexploded device. It consisted of a yellow glass growler with a Goodwill sticker on the bottom, a cloth wick, and an ignitable liquid. It was later determined that the growler was one of the items purchased at Goodwill by Muhammad and his girlfriend. A DNA analysis also linked the growler to Muhammad.
On September 23, 2020, protesters set fire to and broke windows at the Multnomah County Justice Center. When officers advanced toward the crowd, an individual threw a Molotov cocktail in a large yellow growler that landed in front of the officers, shattered, and exploded into a large fireball. While some officers were able to move out of the way, one officer’s leg caught fire. Several videos obtained by law enforcement show Muhammad throwing the explosive device.
On October 11, 2020, police were monitoring a protest involving approximately 250 people in downtown Portland. Members of the group began heavily vandalizing various buildings and parks including the Oregon Historical Society, Portland State University, a Starbucks coffee shop, and a Bank of America branch, among others. Law enforcement observed Muhammad in the crowed dressed in black. Investigators reported observing Muhammad using a metal baton to smash the windows of several buildings and arrested him after a short chase. Muhammad possessed a loaded pistol magazine in his pocket. A loaded pistol matching the magazine found on Muhammad’s person was found discarded near the location of his arrest.
Muhammad’s trip to Portland does not appear to be an isolated event. Investigators obtained evidence that he traveled to Louisville, Kentucky, in August 2020 to meet with anti-government and anti-authority violent extremist groups to conduct firearms and tactical training. Investigators also obtained several public social media posts by Muhammad promoting violence toward law enforcement in other cities including Kenosha, Wisconsin, and Chicago.
Muhammad made his initial appearance in federal court today before a U.S. Magistrate Judge. He was detained pending further court proceedings.
Muhammad is also under indictment in Multnomah County Circuit Court for 26 state felonies including attempted aggravated murder, first degree attempted murder, unlawfully manufacturing an explosive device, first degree criminal mischief, riot, and unlawfully possessing a firearm.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
The Portland Police Bureau, FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives are investigating the case. Assistant U.S. Attorney Adam E. Delph is prosecuting the case.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Oregon Man Faces Federal Charges for COVID-Relief Fraud SchemeRead the Press Release
PORTLAND, Ore.—An indictment was unsealed on Wednesday charging a Portland, Oregon, man with fraudulently converting to personal use loans intended to help small businesses during the COVID-19 pandemic.
Eric Wade Lysne, 29, has been charged with one count each of wire and bank fraud.
The indictment alleges that, since April 2020, Lysne has 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 EIDLs and PPP loans. In order to give Paradigm the appearance of a legitimate business, Lysne applied for and received an IRS Employer Identification Number in April 2020 and registered the business with the Oregon Secretary of State the following month.
In May 2020, Lysne applied for an EIDL, falsely claiming Paradigm employed 10 individuals in the agriculture sector and realized gross revenues of nearly $1 million in the twelve months ending on January 31, 2020, and that he, as the applicant, had not been convicted of any felonies in the last five years. (In fact, Lysne had been in prison for most of that twelve-month period as the result of a felony conviction in Washington County in May 2019.) 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 extensive cash withdrawals.
In April 2021, Lysne applied to SBA for an increase in his EIDL balance, seeking to borrow an additional $302,600. That application remains pending as of Lysne’s indictment.
Lysne also applied last May for a PPP loan of $50,000 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 to Lysne.
Lysne made his initial appearance in federal court yesterday before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and released pending a three-day jury trial scheduled to begin on July 27, 2021.
Wire fraud is punishable by up to 20 years in prison and a fine of up to twice the victim’s losses. Bank Fraud is punishable by up to 30 years in prison and a $1 million fine.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
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.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Eugene Man Indicted for Stalking and Mailing Threatening LettersRead the Press Release
EUGENE, Ore.—A federal grand jury in Eugene has returned an indictment charging a Eugene man with stalking and mailing threatening letters to a former teacher.
Gary Franklin, 57, has been charged with stalking and using the U.S. Postal Service to mail threatening communications.
According to court statements, Franklin sent two letters to an adult female victim between December 2020 and May 2021. The first letter contained a printout of what appeared to be a deceased, mutilated female. Handwritten wording above and below the image included racial and sexual orientation slurs and stated, “What I’d like to do to you.” The second letter contained another photograph of a deceased, mutilated female. The handwritten wording around the image stated that the photograph represented Franklin’s fantasy of what he wanted to do to the victim.
A forensic analysis conducted by the Oregon State Police Laboratory found Franklin’s fingerprints on the first letter. In May 2021, the FBI subsequently executed a search warrant on Franklin’s Eugene residence, revealing a collection of knives, violent literature, and white supremacist memorabilia. Franklin was arrested without incident.
Franklin made his initial appearance in federal court on May 21, 2021 before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and scheduled for a jury trial to begin on July 27, 2021. On May 24 and 25, 2021, a U.S. Magistrate Judge held detention hearings for Franklin and detained him pending the jury trial.
If convicted, Franklin faces a maximum sentence of 5 years in federal prison for each count, one year of 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 and U.S. Postal Inspection Service. Assistant U.S. Attorney Adam E. Delph is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Stalking is a serious federal crime involving a pattern of behavior directed at a specific person that would cause a reasonable person to fear for their safety. For more information about stalking, including resources for victims, please visit the Stalking Prevention, Awareness, & Resource Center (SPARC) at www.stalkingawareness.org.
Anyone with information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
For immediate threats to life and safety, please call 9-1-1.
Former Klamath Falls Police Officer Faces Federal Charges for Stealing Methamphetamine and Fentanyl from Evidence RoomRead the Press Release
MEDFORD, Ore.—A two-count indictment was unsealed today charging a former Klamath Falls, Oregon police officer for stealing methamphetamine and fentanyl from an evidence room.
Thomas Dwayne Reif, 27, has been charged with two counts of possessing a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.
According to the indictment, 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.
Reif made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and released pending a jury trial scheduled to begin on August 3, 2021.
If convicted, Reif faces a maximum sentence of four years in federal prison, one year of 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 Federal Bureau of Investigation with Oregon State Police and 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.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Portland Resident Sentenced to Federal Prison After Trial Conviction for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today after being convicted at trial in October 2021 for illegally possessing a stolen firearm as a convicted felon.
Desmond Boris Washington, 35, was sentenced to 4 years in federal prison and 3 years’ supervised release.
According to court documents, on October 10, 2018, Homeland Security Investigations (HSI) agents and Portland Police Bureau officers executed four premises search warrants in the Portland area as part of a federal investigation into the armed robbery of two marijuana dealers. Washington, while not a target of the investigation, resided at one of the apartments searched. During the search, a Portland police officer observed a silver and black Taurus handgun in an open dresser drawer. In the same drawer, agents found a gold dental grill, necklaces, and a pendant with the name “I5daP,” a moniker used by Washington. Investigators later obtained several publicly available photographs and videos showing Washington wearing the dental grill and necklaces.
As the investigation continued, agents found additional evidence linking Washington to the handgun. A DNA test found DNA profiles from four different individuals, including Washington, on the gun. Washington’s public Facebook profile photo showed him holding what appeared to be the same gun. Washington also posted a series of music videos to YouTube showing him and several other convicted felons with the gun.
On November 6, 2018, a federal grand jury in Portland returned a single-count indictment charging Washington with illegally possessing a firearm as a convicted felon. He was convicted on the charge in a jury trial ending October 30, 2021.
On December 4, 2019, two other Portland residents, Christopher Eugene Miller, 30, and Kebrin Larry Jones, 28, were indicted for illegally possessing the same stolen Taurus handgun. Jones later guilty to the charge and, on September 1, 2020, was sentenced to 17 months in federal prison and three years supervised release. Miller is in pre-trial custody pending a three-day jury trial scheduled to begin on June 28, 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 the Portland Police Bureau and is being prosecuted by the U.S. Attorney's Office for the District of Oregon.
The case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Clackamas County Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
PORTLAND, Ore.—A Boring, Oregon man was sentenced to federal prison today for distributing illegal narcotics in and around the Portland Metropolitan Area.
Thomas Lewis Ogden, 55, was sentenced to 10 years in federal prison and three years’ supervised release.
According to court documents, on several occasions investigators from the Multnomah County Sheriff’s Office completed controlled buys of illegal narcotics from Ogden at his residence in Clackamas County. On December 11, 2019, investigators executed a search warrant on Ogden’s residence and seized a kilogram of methamphetamine, 150 grams of heroin, and approximately 35 pounds of marijuana. While searching Ogden’s truck, the investigators found a. 38 caliber revolver in the driver’s seat as well as drug paraphernalia, packaging materials, digital scales, and a stun gun.
On December 18, 2019, a federal grand jury in Portland returned a 5-count indictment charging Ogden with possession with intent to distribute methamphetamine and heroin, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm.
On January 15, 2021, Ogden 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 the Multnomah County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Kemp L. Strickland.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hoover Criminal Gang Member Pleads Guilty to Drug and Gun ChargesRead the Press Release
PORTLAND, Ore.—A known Hoover Criminal Gang member and resident of Portland pleaded guilty today to federal gun and drug charges for his role in a fentanyl trafficking conspiracy.
Aumontae Wayne Smith, 22, pleaded guilty to possessing with intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents and testimony, Smith and an unnamed accomplice conspired with one another to distribute counterfeit oxycodone pills containing fentanyl in and around Portland. Investigators seized six firearms from Smith and his accomplice with the assistance of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Further investigation revealed Smith purchased 16 firearms that were linked to 17 different shootings in the Portland area between April and December 2020.
On April 6, 2021, a federal grand jury in Portland returned an indictment charging Smith with conspiring to distribute and possess with intent to distribute fentanyl, possessing with intent to distribute fentanyl, and possessing a firearm in furtherance of a drug trafficking crime. On April 16, 2021, he voluntarily surrendered to law enforcement.
With continued and early acceptance of responsibility, the U.S. Attorney’s Office will join Smith in jointly recommending a sentence of 70 months in prison when he is sentenced on August 9, 2021 before U.S. District Court Chief Judge Marco A. Hernandez.
This case was investigated by the Portland Police Bureau, FBI, and ATF. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Opioid abuse affects communities across the nation. The Centers for Disease Control and Prevention reports that in 2019, its most recent data, there were 70,630 drug overdose deaths in the U.S. Opioids and synthetic opioids were alone responsible for 49,860 overdose deaths or nearly 71% of all overdoses. Drug overdose is now the leading cause of injury or death in the United States.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male.
The availability of illicit fentanyl in Oregon has presented public safety and health officials with a host of new challenges, including a dramatic increase in overdose deaths. Fentanyl-related overdose deaths in Oregon have doubled between 2016 and 2019.
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.
Sinaloa-based Narcotics Distributor Designated under the Kingpin Act for Trafficking Fentanyl, Heroin, and Methamphetamine in OregonRead the Press Release
PORTLAND, Ore.—Acting U.S. Attorney Scott Erik Asphaug announced the unsealing of an indictment today against a Sinaloa-based drug trafficker for his role in trafficking fentanyl, heroin, and methamphetamine from Mexico to the Pacific Northwest.
Efrain Mendivil Figueroa, 41, of Sinaloa, Mexico, has been charged with conspiracy to distribute heroin, methamphetamine, and fentanyl and conspiracy to commit money laundering.
The announcement of charges against Figueroa follows the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designation of Figueroa as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). OFAC identified Figueroa as a fentanyl, heroin, methamphetamine, and cocaine distributor and transportation coordinator for the Jesus Gonzalez Penuelas Drug Trafficking Organization (aka “Gonzalez Penuelas DTO”). OFAC also designated the construction company City Plaza, Sociedad Anonima de Capital Variable, based in Guasave, Sinaloa for being owned or controlled by Figueroa. According to OFAC, the Gonzales Penuelas DTO is one of the largest raw opium gum and heroin sources of supply in northern Mexico, and increasingly a major distributor of fentanyl.
“Efrain Figueroa’s drug trafficking organization has deep ties in the Pacific Northwest. Our charges allege he is a long-term, active trafficker of heroin, methamphetamine, and fentanyl from Mexico to Oregon. Together, these drugs, particularly fentanyl, have caused immeasurable harm to the public safety and health of communities throughout our state,” said Acting U.S. Attorney Asphaug. “We applaud OFAC for designating Jesus Gonzalez Penuelas as a Significant Foreign Narcotics Kingpin and Figueroa as a Specially Designated Narcotics Trafficker under the Kingpin Act for the significant danger they pose to the U.S. and its citizens.”
“This bold action highlights the DEA’s ability and intention of holding accountable the dangerous Mexican Drug Trafficking Organizations who reside within our borders, but also those operating in Mexico who believe they are untouchable,” said DEA Special Agent in Charge Frank Tarentino. “DEA makes it a priority to identify and target drug traffickers who flood our city streets with poison and deny these drug trafficking organizations the profits of their illegal trade responsible for fueling the opioid epidemic. We will continue to work closely with our international partners to bring Efrain Figueroa to justice and dismantle drug cartels like Gonzales Penuelas DTO.”
“Fentanyl, particularly in the form of counterfeit prescription pills, is the region’s emerging drug threat and poses a significant danger to our communities. The increase in fentanyl supply and use over the past 2 ½ years in Oregon is reflected in the number of law enforcement trafficking investigations, drug seizures, overdose hospitalizations and, tragically, overdose deaths,” said Oregon-Idaho HIDTA Executive Director, Chris Gibson. “The Oregon-Idaho HIDTA will continue to support the cooperative efforts of our treatment, prevention and law enforcement partners with the ultimate goal of reducing the demand for and supply of the dangerous drugs that sadly wreak havoc in the lives of an increasing number of Oregonians.”
According to the indictment, beginning in at least August 2018, Figueroa and several associates are alleged to have conspired with one another to possess and distribute heroin, methamphetamine, and fentanyl in Oregon and elsewhere. As part of their drug trafficking scheme, the group maintained various locations for the purpose of storing and packaging narcotics and used vehicles to transport and distribute product. The group would also smuggle bulk quantities of U.S. currency across state and international borders to facilitate drug transactions and engaged in money laundering to conceal their trafficking proceeds.
Acting U.S. Attorney Asphaug and Special Agent in Charge Tarantino made the announcement.
This case was investigated by the Drug Enforcement Administration (DEA) and the High Intensity Drug Trafficking Area (HIDTA) Interdiction Taskforce with assistance from the FBI and Homeland Security Investigations. It is being prosecuted by Steven T. Mygrant, Assistant U.S. Attorney for the District of Oregon.
The Oregon HIDTA program was established by the White House Office of National Drug Control Policy in June of 1999. In 2015 the program expanded into Idaho and was renamed the Oregon-Idaho HIDTA. The Oregon-Idaho HIDTA consists of 16 counties, including Oregon’s Clackamas, Deschutes, Douglas, Jackson, Josephine, Lane, Linn, Malheur, Marion, Multnomah, Umatilla and Washington counties, and Idaho’s Ada, Bannock, Canyon, and Kootenai counties.
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.
Opioid abuse affects communities across the nation. The Centers for Disease Control and Prevention reports that in 2019, its most recent data, there were 70,630 drug overdose deaths in the U.S. Opioids and synthetic opioids were alone responsible for 49,860 overdose deaths or nearly 71% of all overdoses. Drug overdose is now the leading cause of injury or death in the United States.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male.
The availability of illicit fentanyl in Oregon has presented public safety and health officials with a host of new challenges, including a dramatic increase in overdose deaths. Fentanyl-related overdose deaths in Oregon have doubled between 2016 and 2019. In 2020, most fentanyl seized in Oregon was in the form of counterfeit prescription pills, such as Oxycodone, commonly referred to as M-30s.
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.
Counterfeit Oxycodone Seized in Portland Metro Area Counterfeit Oxycodone Seized in Portland Metro Area Counterfeit Oxycodone (M-30) Seized in Jackson CountyBeaverton Man Indicted in Streaming Service Fraud SchemeRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a Beaverton, Oregon, man for his role in a scheme to steal and resell customer account credentials for popular internet streaming services including Netflix, HBO Max, and Spotify Premium.
Samuel Joyner, 30, has been charged with conspiracy to commit computer and access device fraud, trafficking and use of unauthorized access devices, and possession of fifteen or more unauthorized access devices.
“I applaud the thorough investigative effort and international law enforcement coordination resulting in these charges and today’s arrest of Mr. Joyner. Hacking and access device fraud are serious crimes that significantly impact companies large and small. Our office will continue to prioritize these and other internet crimes,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
“Cyber crime shows how small of a world we live in these days. The subjects and the victims can live next door or half a world away. In this instance, FBI agents in Omaha, Nebraska, launched an investigation that would stretch all the way to Australia and back to Oregon. Without their hard work, we wouldn't have this successful arrest today,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon. “As for consumers - this is a good reminder to check your accounts and change passwords to unique and complex passphrases.”
“This investigation spanned across the Pacific to our shores in Australia, showing that while crimes may be borderless, our law enforcement response is united across countries. Following a referral of information from our FBI law enforcement partners, the Australian Federal Police arrested, charged and secured a conviction against a Sydney man, and we also seized more than a million dollars’ worth of cryptocurrency assets which were the proceeds of his crime,” Australian Federal Police cybercrime operations case officer Joanna Kondos said. “Cybercrime is not a victimless crime – this case uncovered stolen account details from millions of people around the world, and we work to investigate these crimes on behalf of those who have had their personal details scammed for someone else’s profit.”
According to the indictment, between February 2018 and March 2019, Joyner and an accomplice, Evan McMahon, 23, of Sydney, Australia, conspired with one another to create and operate an online service called AccountBot. AccountBot offered a paid subscription service where customers could obtain account credentials to access popular internet streaming services at a greatly reduced rate.
Joyner and McMahon illegally acquired usernames and passwords to the various streaming services through credential stuffing attacks, a computer hacking technique where individuals obtain large sets of account credentials, often made available as a result of large data breaches, and, using an automated tool, repeatedly enter credentials into a website or internet-based service to verify their authenticity. Verified credentials obtained via credential stuffing can then be used to access online user accounts without authorization.
AccountBot customers paid a fee, ranging from $1.79 to $24.99, depending on the type of service and access duration needed. These customers paid Joyner and McMahon in fiat or cryptocurrency. Joyner and McMahon were equal partners of AccountBot, but fulfilled distinct tasks. McMahon was primarily responsible for drafting computer code for the service’s website and managing customer payments. Joyner acquired the majority of stolen user credentials and was responsible for AccountBot customer service.
By March 2019, AccountBot purported to have over 52,000 different registered customers and more than 217,000 unique sets of stolen account credentials.
Joyner was arrested without incident today by the FBI and made his initial appearance in federal court before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and released pending a five-day jury trial scheduled to begin on July 13, 2021.
Conspiracy to commit computer and access device fraud is punishable by up to five years in federal prison. Trafficking and use of unauthorized access devices and possession of fifteen or more unauthorized access devices are each punishable by up to 10 years in federal prison.
McMahon was prosecuted for similar offenses in the District Court of New South Wales in Sydney. In April 2021, he was sentenced to two years and two months to be served by way of intensive corrections order, the most serious, non-custodial sentence imposed in New South Wales.
Acting U.S. Attorney Asphaug and Special Agent in Charge Ramsey made the announcement.
This case was investigated by the FBI and Australian Federal Police. Assistant U.S. Attorney Quinn P. Harrington is prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Malicious cyber activity threatens the public’s safety and our national and economic security. The FBI is the lead federal agency for investigating cyber attacks and intrusions, collecting and sharing intelligence and engaging with victims while working to unmask those committing malicious cyber activities, wherever they are. Learn more about what you can do to protect yourself from cyber criminals, how you can report cyber crime, and the FBI’s efforts in combating the evolving cyber threat.
U.S. Attorney's Office Recognizes National Police Week, May 9-15, 2021Read the Press Release
PORTLAND, Ore.— In honor of National Police Week, Acting U.S. Attorney Scott Erik Asphaug recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“National Police Week is a time-honored tradition that affords all Americans the opportunity to recognize and celebrate the accomplishments of law enforcement officers across the country. It also gives us the opportunity to reflect on the tremendous personal sacrifice made by officers and their families every day to keep our communities safe,” said Acting U.S. Attorney Asphaug. “I am personally very thankful for our law enforcement officers here in Oregon for their continued partnership with our office. We could not do the work we do without your steadfast dedication and service.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 PM EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at www.youtube.com/user/TheNLEOMF
The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
California Man Pleads Guilty 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 pleaded guilty 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, pleaded guilty today to one count of conspiring to smuggle goods from the U.S.
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.
Xie faces a maximum sentence of ten years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on August 12, 2021 before U.S. District Court Judge Michael J. McShane.
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 is being prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Turtles 01 Turtles 02 Turtles 03 Turtles 04Beaverton Woman Charged in April 13, 2021 Arson at Portland Police Association BuildingRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging a Beaverton, Oregon, woman with arson after she allegedly set fire to the Portland Police Association building during a riot on April 13, 2021.
Alma Raven-Guido, 19, has been charged with one count of arson.
According to the indictment, Raven-Guido maliciously damaged the Portland Police Association building on North Lombard Street in Portland with fire.
Raven-Guido was arrested without incident by the FBI on May 5, 2021, and made her initial appearance in federal court today before a U.S. Magistrate Judge. She was arraigned, pleaded not guilty, and ordered released pending further court proceedings.
Arson is punishable by up to 20 years in federal prison with a mandatory minimum sentence of 5 years.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Portland Police Bureau with assistance from the FBI and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Craig Gabriel and Jaclyn Jenkins are prosecuting the case.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
U.S. Attorney's Office Joins in Recognizing Missing and Murdered Indigenous Persons Awareness Day, May 5, 2021Read the Press Release
PORTLAND, Ore.—On May 4, 2021, President Joseph R. Biden Jr. proclaimed today, May 5, 2021, as Missing and Murdered Indigenous Persons Awareness Day.
The proclamation reaffirmed the nation’s commitment to solving all missing and murdered Indigenous persons cases and addressing the underlying causes of these crimes, including sexual violence, human trafficking, domestic violence, violent crime, systemic racism, economic disparities, and substance use and addition.
The U.S. Attorney’s Office for the District of Oregon joins its Tribal, federal, state, and local law enforcement partners in taking this opportunity to highlight the importance of supporting Tribal crime victims and synthesizing investigative leads and information across government and law enforcement agencies.
“The first step in seeking justice for missing and murdered Tribal victims is acknowledging the historical indifference to and neglect of these tragic cases. A lack of data and jurisdictional gaps have caused many solvable cases to go unsolved” said Acting U.S. Attorney Scott Erik Asphaug. “Today’s commemoration reminds us of the hard work still to be done. We must not stop until we give every missing and murdered Tribal victim a voice and bring some degree of peace and comfort to their families.”
In June 2020, the U.S. Attorney’s Office announced the hiring of its first Missing and Murdered Indigenous Persons (MMIP) program coordinator. In February 2021, the office released its first annual MMIP program report, summarizing what is known about missing and murdered Indigenous people in Oregon and outlining the office’s plans and goals for the year ahead. The report was the first of its kind produced by a U.S. Attorney’s Office. Recently, the office began working with the Confederated Tribes of Warm Springs to develop a Tribal Community Response Plan as part of a Department of Justice pilot project.
MMIP is an important and sensitive issue to Tribal communities. Addressing MMIP in Indian Country is particularly challenging due to jurisdictional issues, lack of coordination and inadequate resources. However, for the first time in U.S. history, a national federal strategy—formalized by legislation, executive order, and departmental directive—is in place to address MMIP issues.
If you or someone you know have information about missing or murdered Indigenous people in Oregon, please contact the FBI Portland Field Office by calling (503) 224-4181 or by visiting tips.fbi.gov.
If you have questions about the U.S. Attorney’s Office MMIP program, please contact MMIP program coordinator Cedar Wilkie Gillette by emailing [email protected] or by calling (503) 727-1000.
Portland Man Pleads Guilty for Role in Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Portland man pleaded guilty 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, pleaded guilty to conspiring to commit bank fraud and mail theft.
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.
Sanders faces a maximum sentence of 35 years in prison; a $1.25 million fine or twice his criminally derived gains, whichever is larger; and five years of supervised release. He will be sentenced on July 20, 2021 before U.S. District Court Judge Anna J. Brown.
As part of the plea agreement, Sanders has agreed to pay restitution in full to his victims as identified by the government and ordered by the court.
Jenkins is on pre-trial release pending a three-day jury trial scheduled to begin on June 8, 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.
New Mexico Man Sentenced to 10 Years in Federal Prison for Stalking and Threatening to Kill Ex-Wife and FamilyRead the Press Release
PORTLAND, Ore.—An Albuquerque, New Mexico man was sentenced to federal prison today after spending years abusing, terrorizing, and threatening to kill his ex-wife, former mother-in-law, and young daughters.
Oscar Adrian Marquez, 46, was sentenced to 120 months in federal prison and three years’ supervised release.
“Oscar Marquez is a serial abuser and perpetrator of domestic violence. Over a period of many years, he physically and emotionally tormented his spouses, daughters, and their extended families. I applaud the Portland Police Bureau’s quick and heroic efforts to arrest Marquez before he could inflict further and potentially deadly harm on his family,” said Scott Asphaug, Acting U.S. Attorney for the District of Oregon.
“I’m grateful that this violent abuser is being held accountable for his actions,” said Portland Police Chief Chuck Lovell. “My thanks go to the Portland officers who acted so quickly and professionally, and to the FBI and the U.S. Attorney’s Office for their hard work investigating and bringing this case to successful prosecution.”
“The stalking and violent threats were purely about control for Mr. Marquez, just as the abuse had been. His ex-wife and children suffered for years, and despite every effort to escape, they lived with the fear that he would find them. I am hopeful that today's lengthy sentence will, hopefully, allow them the peace to move forward with their lives,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, Marquez’s history of abusing women spans more than 20 years, including the physical and emotional abuse of his first wife and their young daughter. This abuse continued into his daughter’s adolescent and young-adult years when Marquez would lock her in her bedroom for hours and beat her with a belt. As an adult, his daughter went to great lengths to hide from her father and, in 2018, secured a 40-year protective order against him.
Marquez remarried in 2001 and has two teenage daughters with his second wife. Marquez continued his abuse with his new family. In 2007, Marquez was convicted on two domestic violence charges after punching his second wife in the face while she was holding their then-three-year-old daughter. The final straw for his second wife came in August 2013, when Marquez physically assaulted her and trapped her and her daughters in separate bedrooms. In their divorce proceedings, Marquez’s second wife was given sole custody of their children and Marquez’s limited visitation rights were later revoked.
In the summer of 2014, Marquez kidnapped his two youngest daughters and fled to Mexico, resulting in an international amber alert. Marquez and the children were found several days later at a U.S.-Mexico border crossing. He was arrested and later convicted for the kidnapping. A new protective order was issued in October 2014, barring Marquez’s contact with his second wife and youngest daughters. Marquez repeatedly violated this new order. Thereafter, from January 2014 through July 2019, Marquez engaged in an increasingly aggressive course of conduct to intimidate and harass his second wife and her family.
In 2017, Marquez’s second wife changed her name and moved to Portland with her teenage daughters after learning of Marquez’s intent to murder her and her family. She provided a picture of Marquez to her daughters’ new school and advised them of the threat he posed to their family. In July 2018, Marquez posted a note on his mother-in-law’s fence in New Mexico threatening that he was on his way to find her daughter. In July 2019, Marquez obtained his second wife’s new name and Portland address via an online people-finding service.
On July 29, 2019, Marquez’s second wife observed him driving slowly past her Portland home in a vehicle with New Mexico license plates. She barricaded her teenage daughters into a room, contacted the Portland Police Bureau, and prepared for a confrontation with Marquez. While a Portland police officer was writing a report at their home, Marquez again drove past the residence. Several Portland police officers quickly conducted a traffic stop and arrested Marquez. Inside his vehicle, they located a replica Glock handgun, a face mask, gloves, several digital devices, and more than $2,000 in cash.
On January 14, 2020, a federal grand jury in Portland returned a five-count indictment charging Marquez with cyberstalking, stalking, and interstate violation of a protection order. In November 2020, Marquez was convicted at trial on all charges.
During his trial, prosecutors learned that Marquez attempted to intimidate a government witness while in custody and lied under oath during his trial testimony. Prosecutors sought and obtained sentencing enhancements for this conduct.
During sentencing, U.S. District Court Judge Michel W. Mosman ordered Marquez to pay $10,818 in restitution to his victims.
Acting U.S. Attorney Asphaug made this announcement with Chief Lovell and Special Agent in Charge Ramsey.
This case was jointly investigated by the Portland Police Bureau and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
All forms of stalking, including cyberstalking, are serious crimes prohibited by the federal Violence Against Women Act (VAWA). In 2013, an amendment to VAWA made it illegal to use any computer or electronic communication service to conduct activity placing a person in reasonable fear of death or serious bodily injury, or that causes substantial emotional distress.
Anyone with information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
For immediate threats to life and safety, please call 9-1-1.
Klamath Falls Man Pleads Guilty to Cashing More than 40 Years' Worth of Deceased Relative's Social Security ChecksRead the Press Release
MEDFORD, Ore.—A Klamath Falls, Oregon man pleaded guilty today after cashing more than $458,000 worth of social security checks issued in the name of his deceased aunt.
George Doumar, 74, pleaded guilty to one count of theft of government funds.
According to court documents, in February 2020, the Social Security Administration’s (SSA) Office of Anti-Fraud Programs identified a 114-year-old supercentenarian who appeared to be the second-oldest living person in the U.S. receiving Social Security retirement benefits. The last known update to the recipient’s SSA benefit record was in July 1989, when the recipient’s address was updated to Frontier Parcel & Fax Service on S. 6th Street in Klamath Falls.
In March 2020, an investigator with SSA-OIG interviewed two of the benefit recipient’s nieces. Both nieces claimed that their aunt died in the 1960s or 1970s and recalled attending her funeral in Brooklyn, New York, where she had reportedly lived her entire life. According to one niece, their aunt did not have any children and was not married. She recalled that Doumar was named the sole beneficiary of her aunt’s insurance payout.
Investigators soon discovered that Doumar himself was an active Social Security beneficiary and received his checks at the same address on S. 6th Street in Klamath Falls. According to SSA records, Doumar purchased the property on S. 6th Street seven days prior to the address on his aunt’s benefit record being changed to the same address.
On June 16, 2020, SSA-OIG investigators obtained a copy of the aunt’s death certificate from the New York City Department of Health & Mental Hygiene, confirming that she had died on March 7, 1971 in Brooklyn. Investigators determined that Doumar had added his aunt to he and his wife’s shared checking account in 1989. His aunt’s Social Security checks were often bundled in deposits with other checks made payable to Doumar.
Investigators obtained bank surveillance footage from February 2020 that showed a man, who appeared to match Doumar’s physical description, depositing one of his aunt’s retirement checks. On July 14, 2020, investigators from SSA-OIG and USPIS interviewed Doumar at his Klamath Falls residence. When asked about his aunt, Doumar sighed, slumped his head, and stated, “that’s a long story…what happened was, well she’s passed and yes, I’ve been collecting her Social Security.”
On August 11, 2020, Doumar was charged by criminal complaint with theft of government funds and mail theft.
Doumar faces a maximum sentence of ten years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on August 3, 2021 before U.S. District Court Judge Michael J. McShane.
As part of the plea agreement, Doumar has agreed to pay $458,992 restitution to the SSA and $1,200 to the IRS.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
The SSA-OIG and USPIS jointly investigated this case. It is being prosecuted by Special Assistant U.S. Attorney Rachel Sowray.
Felony Lane Gang Member Sentenced in Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Fort Lauderdale, Florida man was sentenced to federal prison today for his role in a bank fraud and identity theft scheme targeting female victims in the Portland Metropolitan Area.
Damian Fletcher, 27, was sentenced to three years in federal prison and three years’ supervised release.
According to court documents, Fletcher is a member of the Felony Lane Gang, an interstate criminal organization based in Florida that travels to locations throughout the U.S. to commit vehicle break-in and fraud sprees. The organization targets female victims who leave their purses, wallets, and valuables in parked cars. After victims exit their vehicles—often to drop off children, run errands, or visit a gym—Felony Lane Gang members break into the vehicle to steal targeted items. After the theft, conspirators quickly deploy associates to conduct fraudulent bank or merchant transactions using stolen identification, checks, and credit or debit cards.
In the fall of 2019, Fletcher and five co-conspirators traveled to Portland to target local victims. Once Fletcher and his partners stole items from a vehicle, they checked to see if one of several female co-conspirators resembled the victim. If one of their female co-conspirators could impersonate the victim, they would attempt to cash fraudulent checks written in the impersonated victim’s name. The conspirators would cash checks at various local banks, using the outer-most lane of each bank’s drive-up teller window to avoid detection.
Investigators identified 32 vehicle thefts and 22 instances of bank fraud committed during Fletcher’s most recent known Oregon crime spree. In total, this spree resulted in a financial loss of more than $98,000. Fletcher was arrested on March 9, 2020 in Florida.
On June 6, 2020, a federal grand jury in Portland returned a 14-count superseding indictment charging Fletcher and five co-defendants with conspiring to commit bank fraud, bank fraud, and aggravated identity theft.
On January 7, 2021, Fletcher pleaded guilty to conspiring to commit bank fraud and aggravated identity theft.
During sentencing, U.S. District Court Judge Michael W. Mosman ordered Fletcher to pay $98,733 in restitution.
Co-defendants Delvin Mills, 29, of Lauderdale Lakes, Florida; Megan Spurlock, 27, a Washington State resident; and Linda Marie Lupo, 52, of Deerfield, Florida; have all pleaded guilty and are awaiting sentencing.
Co-defendants Justin Curry, 28 of Fort Lauderdale, and Treveon Donte Jordan, 23, of Lauderdale Lakes, are on pre-trial release pending a four-day jury trial scheduled to being on June 15, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations with assistance from the West Linn Police Department, Tualatin Police Department, and Clark County Sheriff’s Office. It was prosecuted by Seth D. Uram and Quinn P. Harrington, Assistant U.S. Attorneys for the District of Oregon.
Beaverton Man Charged with Child Exploitation Crimes After Stalking and Exploiting Australian Minor Using Social MediaRead the Press Release
PORTLAND, Ore.—A local man has been charged with federal child exploitation crimes after using various social media applications, including Snapchat and TikTok, to stalk and sexually exploit a minor victim from Australia, announced Acting U.S. Attorney Scott Erik Asphaug.
Jorge Rosales, 25, of Beaverton, Oregon, has been charged by criminal complaint with sexually exploiting children, distributing and possessing child pornography, cyberstalking, and enticing a minor online.
“This case demonstrates the extraordinary lengths sexual predators will go to victimize children. It also demonstrates the tenacity and reach of law enforcement when investigating these heinous crimes,” said Acting U.S. Attorney Asphaug. “I applaud the incredible investigative efforts of our domestic and international law enforcement partners to identify this defendant and see to it that his ability to victimize vulnerable children across the globe ends immediately.”
“Protecting our children from predators lurking on the internet is truly a global challenge, requiring coordination with our international law enforcement partners” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest. “HSI will continue to pursue online predators that exploit popular apps such as Snapchat and TikTok to lure innocent children.”
According to court documents, in April 2021, a special agent from HSI received an investigative referral from INTERPOL and the Australian Federal Police related to the sexual exploitation of a then-nine-year-old victim in Australia. According to the Australian authorities, in 2016 or 2017, an individual later identified as Rosales began communicating with the minor victim using Musical.ly, a social media application now known as TikTok. Rosales claimed he was a 36-year-old male named Alex.
Over a period of months, Rosales engaged the minor in a series of progressively more sexually explicit conversations even after the minor told him she was nine years old. Rosales sent the minor sexually explicit photos and videos to demonstrate how she could engage in various sex acts. These materials included photos and videos of older men having sex with toddlers and young girls. Rosales encouraged the victim to produce and send him sexually explicit photos and videos of herself. When the victim declined, he threatened to turn her friends and family against her, and, in at least one instance, sent her photos of animals beaten until injured. Eventually, the minor victim sent naked photos of herself to Rosales.
Rosales later began communicating with the minor victim using Snapchat, wherein he would send her videos of himself masturbating. He claimed he could see where the victim lived on Snap Map, a Snapchat feature where users can see the location of various Snaps, and threatened to come get her if she didn’t continue sending him explicit photos. These threats prompted the victim to send Rosales additional naked photos and videos, which she produced at his request.
Eventually, after receiving many similar requests from Rosales, the minor victim blocked Rosales’ accounts. In response, over a period of several years, Rosales created and used dozens of new social media accounts to stalk and torment the minor victim. Rosales began following several of the victim’s friends on TikTok. On one occasion, one of the victim’s friends followed a link posted by Rosales that led to a website displaying photos of young naked girls. The website included some of the photos the minor victim had sent to Rosales several years earlier.
Australian investigators obtained and sent to HSI the TikTok subscriber record for the first account Rosales used to communicate with the minor victim. This record included IP addresses later matched to Rosales’ mobile phone and Beaverton residence. Investigators from HSI searched the National Center for Missing & Exploited Children’s CyberTipline Reports and found 13 reports connected to Rosales’ mobile phone and home internet connection. These reports indicated that Rosales had used several social media platforms, including Snapchat, TikTok, Twitter, and Instagram, to distribute photos and videos depicting child sexual abuse to other users between September 2019 and November 2020. HSI investigators also discovered a parallel investigation into Rosales’ conduct being conducted by the Hillsboro Police Department.
Rosales was arrested on April 21, 2021, and made his initial appearance in federal court today before U.S. Magistrate Judge John V. Acosta. He was ordered detained pending further court proceedings.
This case was investigated by HSI and the Hillsboro Police Department with assistance from INTERPOL, the Australian Federal Police, and the Victoria Police in Victoria, Australia. It is being prosecuted by Gary Y. Sussman, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423or submit a tip online at www.ice.gov/tips.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Attorney's Office Joins in Recognizing 40th Annual National Crime Victims' Rights Week, April 18-24, 2021Read the Press Release
PORTLAND, Ore.—Every April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW) to honor crime victims, promote their rights and recognize victim advocates. This year’s observance, the 40th annual commemoration, takes place April 18-24, 2021 with the theme: Support Victims | Build Trust | Engage Communities.
The U.S. Attorney’s Office joins its federal, state, local and tribal law enforcement partners in taking this opportunity to highlight the importance of providing necessary services at the earliest possible stage of victimization and litigation. Early intervention helps prevent further victimization and encourages victim involvement in the criminal justice system, mitigating the cycle of violence and restoring hope for the future.
“Protecting victims’ rights in all phases of the federal judicial process is a top priority for the U.S. Attorney’s Office. National Crime Victims’ Rights Week affords us the opportunity to reaffirm our ongoing commitment to crime victims,” said Acting U.S. Attorney Scott Erik Asphaug. “The courage victims show every day in courtrooms across the country motivates all of us in law enforcement to continue vigorously advocating on their behalf.”
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local, and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s virtual events and in other victim-related observances throughout the year. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov. For ongoing updates from OVC and ideas throughout the year on how you can support victims, please subscribe to OVC’s email notifications at https://ovc.ncjrs.gov/ncvrw/subscribe/.
If you or someone you know are in immediate danger, please call 911. If you believe you’ve been the target or victim of a crime, please contact your local law enforcement agency or your nearest FBI field office immediately. The FBI Portland Field Office can be reached at (503) 224-4181 or by submitting tips online at tips.fbi.gov.
North Bend Man Arrested and Charged with Sexually Exploiting a Child, Additional Potential Victims SoughtRead the Press Release
PORTLAND, Ore.—Acting U.S. Attorney Scott Erik Asphaug announced today that a North Bend, Oregon, man has been charged with sexually exploiting a minor female victim.
On April 15, 2021, a federal grand jury in Eugene returned a three-count indictment charging Shannon Stacey Weatherbee, 47, with sexual exploitation of children.
According to the indictment, beginning around July 2017, Weatherbee is alleged to have knowingly coerced a minor female to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. These visual depictions were transmitted online.
On April 16, 2021, investigators arrested Weatherbee while executing a search warrant on his North Bend residence.
Weatherbee made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and ordered detained pending a jury trial scheduled to begin on June 22, 2021.
This case is being investigated by the FBI with assistance from the North Bend Police Department. It is being prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about possible crimes committed by Weatherbee, or the physical or online exploitation of any children, are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
If a child discloses an incident that did happen to him or her, or that they observed happen to someone else, the parent should not ask the child detailed questions about the incident. Instead, please contact your local law enforcement agency or the FBI immediately.
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.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.