District of Oregon
Press releases recorded for this federal judicial district.
U.S. Attorney and Oregon Attorney General Partner to Protect Oregonians from COVID-19 FraudRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams and Oregon Attorney General Ellen Rosenblum today announced the formation of a state-federal partnership to protect Oregonians from COVID-19 fraud. Together, the two offices will share information and resources to prevent Oregonians from falling victim to scams and other schemes attempting to exploit the COVID-19 pandemic and public health emergency.
Both offices have civil and criminal enforcement authority and will continue to refer serious allegations regarding COVID-19-related scams, Medicaid fraud, and other consumer fraud to each other for state or federal enforcement, as appropriate. They will also work with other federal, state, local, and tribal partners throughout Oregon to help educate communities about emerging scams and fraud schemes, and share resources related to consumer complaints.
“While Americans work to protect themselves and their loved ones from the ongoing threat of COVID-19, some individuals are actively trying to profit off of the public health emergency. Scammers have devised numerous methods to defraud people, preying on individuals’ fear, emotion, and desire to protect themselves, their families, and their communities,” said U.S. Attorney Williams. “I am pleased to join Attorney General Rosenblum and the Oregon Department of Justice to announce our new consumer protection partnership. Oregonians should have confidence that our offices are doing everything in our power to prevent them from becoming the victim of COVID-19 fraud and abuse.”
“Fraudsters are operating in full force right now—especially preying on Oregonians who may have uncashed stimulus checks, pending unemployment claims, or who may be particularly vulnerable to health care-related scams, like unauthorized tests to detect the coronavirus. By working together with U.S. Attorney Williams, we can use the power of our positions and the resources of our two offices to make sure no Oregonian is taken advantage of. I look forward to working together and with our other wonderful state and local partners, like the new non-profit, Oregon Consumer Justice, who are helping us spread the word about—and put a stop to—COVID-related scams and frauds,” said Attorney General Rosenblum.
In particular, U.S. Attorney Williams and Attorney General Rosenblum encourage Oregonians to be on the lookout for:
- Testing scams—someone trying to sell you an unauthorized COVID-19 cure, vaccine, or testing kit or going door-to-door performing fake tests for money;
- Charity scams—scammers soliciting donations for individuals or areas affected by COVID-19 or charities purportedly working on behalf of COVID-19 victims;
- Price gouging scams—businesses marking up the price of essential consumer goods and selling them at higher prices than what the goods would normally be sold for;
- Identity scams—imposters pretending to be a government official asking you for personal identifying information, access to your bank or unemployment insurance account, or offering to help you access government benefits faster, including economic impact payments.
U.S. Attorney Williams and Attorney General Rosenblum will host a tele-town hall on May 12, 2020, focusing on scam and fraud identification and prevention. The event will be co-hosted by Oregon Consumer Justice and will be open to the public. Event details:
- Date: Tuesday, May 12, 2020
- Time: 10:00-11:00 PDT
- To participate, please dial: (855)-756-7520, Extension 60478#
- If you cannot attend this event live, a recording will be made available online at www.oregonconsumer.gov/COVID-19.
If you or someone you know have been the victim of one of the scams described above or any other COVID-19-related fraud, please contact the Oregon Department of Justice at 1-877-877-9392, or submit a tip online at www.oregonconsumer.gov. If you or someone you know are in immediate danger, please call 911.
Former Aequitas Senior Executive and Chief Financial Officer Indicted for Making False Statements to CreditorRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Nelson Scott Gillis, 66, of Lake Oswego, Oregon, a former senior executive and chief financial officer of Aequitas Management, LLC, and several other Aequitas-owned entities, has been indicted for conspiring to submit false statements to a federally insured creditor in order to obtain $4.2 million for Aequitas as it struggled to survive in January 2016.
According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. To purchase the trade receivables, and for other purposes it fraudulently concealed, Aequitas solicited some investors through the issuance of promissory notes via the Aequitas Commercial Finance (ACF) Private Note program.
Aequitas also borrowed funds from other financial institutions to purchase trade receivables. One of these institutions was Wells Fargo Bank, N.A. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. On or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitas’s behalf. To receive advances on this line of credit, Aequitas had to certify several things, including that it was not experiencing an “event of default” or “potential event of default” on more than $2.5 million in debt held by third parties.
In early January 2016, Gillis and other Aequitas executives were advised that Aequitas was already in default on Private Note obligations exceeding $2.5 million. Despite that advice, on or about January 15, 2016, Gillis signed and, with others, submitted to Wells Fargo an “advance notice,” requesting that Wells Fargo advance $4.2 million to Aequitas under the terms of their loan agreement. As part of this “advance notice”, Gillis certified that “no potential event of default or event of default has occurred or is occurring.”
Gillis faces a maximum sentence of 90 years in prison, fines of $3 million or twice the gross monetary gains or losses resulting from his crimes, and 5 years’ supervised release. He will be arraigned on May 15, 2020, before a U.S. Magistrate Judge.
This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Attorneys for the District of Oregon.
California Con Man Returns to Prison for Running New Fraud Scheme While on Supervised ReleaseRead the Press Release
PORTLAND, Ore.—Bryan Scott Gunn, 45, of Victorville, California, was sentenced today to 63 months in federal prison and three years’ supervised release for orchestrating a fraud scheme that netted more than $344,000 from unknowing victims while he was on federal supervised release.
According to court documents, less than two weeks after completing a 22-month federal prison sentence for a similar fraud scheme, Gunn registered a new fictitious company called Legacy Funding Group. According to a website Gunn created, Legacy Funding Group was a financing company “with access to many private banking institutions and other professional relationships” that “specialized in structured asset based financing and equipment leasing.”
Gunn went to great lengths to make Legacy Funding Group appear legitimate, opening corresponding bank accounts, registering email addresses, falsely claiming to lease high-end commercial office space, and attempting to disassociate his true identity from the company. His scheme worked. In a matter of months, Gunn had successfully cheated 11 clients out of more than $344,000. Gunn convinced his victims, many of whom were in agriculture or agriculture-related industries, to pay him various upfront costs in order to obtain promised financing or loans.
Once he received his clients’ money, Gunn moved it between several bank accounts using cash, cashier’s checks, and temporary checks. His cash withdrawals alone exceeded $100,000. When his clients complained about the lack of financing and demanded their money be returned, Gunn referred them via email to a fictitious legal department. In the end, Gunn did not obtain any financing or loans for his clients and diverted all of their money to personal use.
During sentencing, U.S. District Court Judge Michael W. Mosman ordered Gunn to pay $363,453 in restitution to his victims.
On February 24, 2020, Gunn pleaded guilty to one count each of wire fraud and money laundering.
The case was investigated by IRS-Criminal Investigation and prosecuted by Scott E. Bradford, Assistant U.S. Attorney for the District of Oregon.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Arizona Man Pleads Guilty to In-Custody Assault in Hatfield Federal CourthouseRead the Press Release
PORTLAND, Ore.—Kelvin Valentino McDuffie, 34, of Supai, Arizona, pleaded guilty today for assaulting an in-custody defendant in the Hatfield Federal Courthouse in Portland.
“The safety of incarcerated persons in the custody of the Department of Justice is a top priority for federal law enforcement. The U.S. Marshals Service moved quickly to bring this case to our office so it could be swiftly prosecuted,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Assaults on inmates committed with a sexual motive will continue to be prioritized by our office for prosecution.”
“In this case the victim was subjected to abusive sexual contact without permission. Although her dignity was assaulted, it was not surrendered and I thank the U.S. Attorney and the victim for their steadfast pursuit of justice,” said Russel Burger, U.S. Marshal for the District of Oregon.
According to court documents, on July 26, 2019, Deputy U.S. Marshals escorted McDuffie, an adult female victim, and other male and female inmates into a prisoner elevator inside the federal courthouse. The male and female inmates were separated by a metal chain-link screen and McDuffie was restrained with handcuffs and a belly chain.
As the elevator arrived at a floor, McDuffie reached his fingers through the chain-link screen and struck the victim’s inner thigh and buttocks through her clothing with the intent to abuse, humiliate, harass, and degrade the victim and arouse and gratify his own sexual desire.
McDuffie was in the custody of the U.S. Marshals Service after being arrested in the District of Oregon for an alleged violation of the supervised release that had been imposed following a conviction for assaulting a federal officer in the District of Arizona.
On November 21, 2019, a federal grand jury in Portland returned a two-count indictment charging McDuffie with assault and abusive sexual contact. He pleaded guilty today to assault and will be sentenced on July 7, 2020 before U.S. District Court Judge Marco A. Hernandez. The U.S. Attorney’s Office expects to recommend a sentence of one year and one day in federal prison.
This case was investigated by the U.S. Marshals Service and prosecuted by the U.S. Attorney’s Office for the District of Oregon.
The U.S. Department of Justice and U.S. Attorney’s Office are committed to enforcing the Prison Rape Elimination Act (PREA). PREA was passed, unanimously, by Congress and signed into law in 2003. PREA required the development and promulgation of “national standards for the detection, prevention, reduction, and punishment of prison rape.” These standards, like the law mandating them, are intended to address a serious public safety, public health, and human rights problem—the incidence of sexual violence in our nation’s confinement facilities. To learn more about PREA, please visit: https://bja.ojp.gov/program/prison-rape-elimination-act-prea/overview.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney's Office Joins in Recognizing National Crime Victims' Rights Week, April 19-25, 2020Read the Press Release
PORTLAND—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 those who advocate on their behalf. This year’s observance takes place April 19-25, with the theme: Seek Justice | Ensure Victims’ Rights | Inspire Hope.
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 the rights and dignity of crime victims is central to our mission of ensuring the fair administration of justice. Crime victims are so much more than statistics—they are real people whose lives have been unfairly and, at times, tragically impacted by crime. The courage they demonstrate every day in courtrooms across the country is inspiring to many in law enforcement including myself,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I also want to recognize the bravery and perseverance of victim advocates from all levels of government and in non-profit organizations. They work tirelessly every day to create change and hope for victims in need.”
“While we have made tremendous progress driving down crime and violence across the country, far too many Americans continue to suffer the pain and loss of criminal victimization,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs, which oversees OVC. “This week, we stand by these survivors and their families, and we pledge our ongoing support to the countless men and women who serve them with such extraordinary skill and compassion.”
“Crime victims deserve to know that they have the encouragement and support of the American people,” said OVC Director Jessica E. Hart. “I hope that citizens throughout the nation will take the opportunity this week to remember all victims of crime and their heroic stories of survival. I encourage everyone to also find meaningful ways to express their appreciation to the many committed and compassionate service providers across the country who work tirelessly supporting these survivors.”
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.
Due to the ongoing COVID-19 pandemic, the Justice Department has announced that OVC’s National Crime Victims’ Service Awards Ceremony in Washington, D.C., held annually to honor outstanding individuals and programs that serve victims of crime, has been postponed. To be notified when a new date for this event is announced, please subscribe to OVC’s NCVRW 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.
Beaverton Man Charged in Bank Fraud Scheme Targeting Local Credit Union MembersRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Beaverton, Oregon man has been charged with bank fraud in a scheme involving the impersonation of credit union employees in order to obtain members’ personal financial information.
Winston E. Gray, 30, has been charged by criminal complaint with bank fraud.
According to court documents, on March 30, 2020, a fraud investigator for Rivermark Credit Union in Portland contacted the Portland Police Bureau to report that numerous credit union members had received fraudulent text messages asking them to confirm or deny a recent transaction. When a victim member denied the transaction, they received a phone call from someone purporting to be a credit union employee asking for their debit card number and PIN in order to disable their card.
The personal financial information obtained was used to clone victims’ debit cards and make numerous purchases and ATM withdrawals throughout the Portland metro area. Using a list of fraudulent transactions provided by Rivermark, detectives from Portland Police Bureau and the Beaverton Police Department, with assistance from investigators with OnPoint Credit Union, Bank of America, Unitus Credit Union, and Fred Meyer, obtained video surveillance and photos of the unauthorized transactions from various ATMs and retail establishments.
Surveillance images of the suspect, later alleged to be Gray, were obtained from a Bank of America ATM on NW Cornell Road in Portland. On March 29, 2020, after making a balance inquiry on a victim member’s account, Gray made three consecutive withdrawals of $203 each from the ATM. Gray was later linked to a second fraudulent ATM withdrawal and two fraudulent money order purchases the same day.
As the investigation continued, detectives linked Gray to additional fraudulent transactions between March 30 and April 8, 2020 at locations throughout the Portland area. After reviewing body-worn camera footage from a previous traffic stop, detectives were able to positively identify Gray as the suspect responsible for the fraudulent bank transactions and obtain his home address.
On April 15, 2020, detectives obtained and served state search warrants on Gray’s Beaverton residence, person, and vehicle.
Detectives seized a Bluetooth card writer used to re-encode magnetic strips on credit cards; blank cards with magnetic strips; handwritten instructions on creating stolen identities and committing credit card fraud; multiple stolen credit cards, debit cards, and driver’s licenses; clothing matching those seen in the surveillance footage; more than $10,000 in cash; a 380 caliber handgun; a box of 380 caliber ammunition; and 26 grams of cocaine from Gray’s residence. Other related items were seized from his person and vehicle.
After conducting the searches, Gray was arrested without incident. Gray made his first appearance in federal court today and was ordered detained.
If convicted, Gray faces a maximum sentence of 30 years in federal prison, 5 years’ supervised release, and a $1 million fine.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Portland Police Bureau, Beaverton Police Department, and Homeland Security Investigations (HSI) and is being prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Law Enforcement Leaders Affirm Importance of Protecting Civil Rights Amid Coronavirus PandemicRead the Press Release
PORTLAND—Today, U.S. Attorney Billy J. Williams and FBI Special Agent in Charge Renn Cannon denounced discrimination and acts of hate targeting Asian Americans, Pacific Islanders, Native Americans, and other racial and ethnic minorities and called on Oregonians to take steps to counter xenophobia throughout the state.
“During these challenging times, Oregonians must come together to stop the spread of both COVID-19 and racial bias,” said U.S. Attorney Williams. “It is categorically false that certain groups of people are more susceptible to carrying the virus based on their real or perceived race or ethnicity. Spreading these untruths puts communities at risk of real physical harm and must stop.”
“The FBI stands watch over all Americans. One of our top priorities is investigation of federal civil rights crimes against any person, including Asian Americans or individuals from East Asian countries,” said Special Agent in Charge Cannon. “We will use all authority granted under federal law to hold those who commit hate crimes accountable.”
The Justice Department will prosecute hate crimes and violations of anti-discrimination laws against Asian Americans, Pacific Islanders, Native Americans, and others to the fullest extent of the law. Attorney General William Barr and Assistant Attorney General for Civil Rights Eric Dreiband have called upon department prosecutors throughout the country to watch for hate-motivated acts of violence.
U.S. Attorney Williams and Special Agent in Charge Cannon urged Oregonians to take the following steps to protect racial and ethnic minority community members from bias and hate:
- Use language supported by public health officials when referring to the global pandemic and the precipitating virus—World Health Organization (WHO) officials have recommended using “coronavirus disease 2019” or “COVID-19” as appropriate descriptors.
- Disseminate accurate COVID-19 information within professional and social networks—U.S. Government officials have warned the public about widespread misinformation and disinformation related to the COVID-19 pandemic. Avoid spreading inaccurate information by relying on trusted sources for news and public health guidance. Examples include: the Centers for Disease Control and Prevention (CDC.gov), the WHO (WHO.int), and the Oregon Health Authority (Oregon.gov/OHA).
- Encourage people you know to report all incidents of bias and hate—There is a significant disparity between hate crimes that actually occur and those reported to law enforcement. It is critical to report hate crimes not only to show support for the individual(s) directly impacted, but also to send a clear message that the community will not tolerate these kinds of crimes. Reporting also enables law enforcement to fully understand the scope of the problem in a community and assign resources toward preventing and addressing crimes of bias and hate.
On March 18, 2020, U.S. Attorney Williams announced the appointment of a COVID-19 civil rights coordinator to lead investigations into known and suspected hate crimes and civil rights violations related to the nation’s ongoing public health emergency.
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 hate crime or other violation of your civil rights, please contact the FBI Portland Field Office by calling (503) 224-4181 or submitting a tip online at tips.fbi.gov.
The U.S. Attorney’s Office COVID-19 civil rights coordinator will be notified of tips submitted via the above reporting methods.
Beaverton Man Charged with Participating in $65 Million Tax Evasion Scheme Involving Area Construction CompaniesRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Beaverton, Oregon man has been charged for his role in one of the largest tax evasion schemes ever prosecuted in the District of Oregon. In this multiyear scheme, contracting companies, subcontracting companies, and their employees evaded more than $65 million in employment and income taxes owed to the IRS.
Victor Hugo Lopez-Diaz, 38, was charged by criminal information with one count of conspiring to commit tax evasion and two counts of filing false tax returns.
“Evading the payment of Medicare, Social Security, and income taxes harms every citizen,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “All business owners and their employees must file accurate tax returns with the IRS and pay all taxes required by law. Those who fail to do so will face significant consequences, including criminal prosecution, prison, and monetary penalties.”
“Employers that willfully concoct elaborate schemes to evade paying employment taxes will be held accountable by the Internal Revenue Service,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “This type of fraud does not go unnoticed by our investigators. Fraud of this variety not only impacts honest taxpayers, but significantly impacts honest competitors who follow the rules. Businesses that seek an unfair competitive advantage by cheating the Treasury of payroll taxes will always be a high priority for IRS-Criminal Investigation.”
According to court documents, from at least 2014 through February 2018, Lopez-Diaz and his conspirators are alleged to have successfully evaded their personal and employment tax obligations by cashing approximately $185 million in payroll checks at a co-conspirator’s check cashing business; using the cash to pay construction workers under the table; and filing false corporation, payroll, and individual tax returns.
Lopez-Diaz and some of his co-conspirators established subcontracting companies to facilitate their tax evasion conspiracy. Along with the owners and operators of local contracting companies, they knowingly hired unlicensed work crews, paid them cash under the table, and evaded payroll taxes by not putting the workers on their regular payroll systems.
Throughout the conspiracy, Lopez-Diaz also functioned as a payroll check casher for other companies. He used an alias, Miguel Lopez, to cash payroll checks and conceal his identity and gave the cash received to the leaders of off-the-books work crews and to contractors who used the cash to pay other employees surreptitiously.
Lopez-Diaz’s first appearance in federal court is scheduled for April 21, 2020.
If convicted, Lopez-Diaz faces a maximum sentence of 11 years in federal prison, three years’ supervised release, and $750,000 in fines.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by IRS-Criminal Investigation and prosecuted by Seth D. Uram and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Makes $850 Million Available to Public Safety Agencies to Aid Covid-19 ResponseRead the Press Release
PORTLAND—This week, the Department of Justice announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. State, local and tribal law enforcement agencies in Oregon are eligible to receive nearly $10 million in supplemental funding.
The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation passed by the Congress and signed by President Trump, will allow eligible state, local and tribal governments to apply immediately to receive these critical funds. The department is moving quickly to make awards, with the goal of having funds available within days.
“In a matter of weeks, I have seen countless examples from across our state and country of law enforcement officers and other public safety professionals going far above and beyond their regular duties to serve our communities in this time of great need,” said U.S. Attorney Billy J. Williams. “I’m pleased to join the department in announcing this much needed funding and will do everything in my power to expedite its distribution to eligible law enforcement agencies here in Oregon.”
“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to the Congress for making these resources available and for the show of support this program represents.”
The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund applicants on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, purchase protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.
2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program recipient agencies are candidates for direct emergency funding. A complete list of jurisdictions eligible for direct funding and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
Jurisdictions not eligible for direct funding are advised to contact the Oregon Criminal Justice Commission to determine how they can receive funding through the state distribution.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Invites Local Nominations for Attorney General's Distinguished Service in Policing AwardRead the Press Release
PORTLAND—U.S. Attorney Billy J. Williams announced today that the Department of Justice is requesting local nominations for the fourth annual Attorney General’s Award for Distinguished Service in Policing. The nomination period is open now and will close on Friday, April 24, 2020 at 5pm PDT.
The Attorney General’s Award for Distinguished Service in Policing recognizes state, local, or tribal sworn, rank-and-file police officers, deputies, and troopers for exceptional efforts and innovations in community policing, criminal investigations, and field operations.
“Law enforcement is the toughest job in America. The challenges our officers face on a daily basis are more complex, more difficult, and more extensive than ever before,” said Attorney General William P. Barr. “We are grateful for every man and woman in blue for their dedication and sacrifice. Among those who have answered the call of public service, several individuals in the past year performed in ways that surpassed even the highest expectations of the profession. I look forward to recognizing these individuals with the fourth annual Attorney General’s Award for Distinguished Service in Policing.”
“Serving alongside state, local, and tribal law enforcement officers, deputies, and troopers in Oregon has been the highest honor of my career,” said U.S. Attorney Williams. “It is entirely fitting that we should recognize the sacrifices they make on a daily basis to keep our communities safe and protect the rights we hold dear as Americans. I look forward to joining Attorney General Barr in recognizing the recipients of this distinguished award.”
Nominations may be submitted by the potential recipient’s supervisors, coworkers, or members of their local community. Nominations may include references and URL links to news sources and promotional or other materials that describe or substantiate the activity, program, or initiative for which the nominee is being nominated. Please note: nominees must have been in a non-supervisory position at the time the nominated event, activity, and/or program occurred to be an eligible candidate for this award.
Nominations must be submitted through an online form. The online application will direct the nominating individuals to complete the following fields:
- Name and rank of nominee(s) (must be rank-and-file officers, deputies, or troopers in a nonsupervisory position), the lead agency name, and the size of population served by the agency
- Name and affiliation of the nominating individual
- Nomination category for the action(s), program(s), or initiative(s) for which the nominee(s) is being nominated (Criminal Investigations, Field Operations, or Innovations in Policing)
- A detailed description of the specific action(s), program(s), or initiative(s) of the nominee(s) for which s/he is being nominated
- Agency point of contact information
Nominations must be submitted by 5pm PDT on Friday, April 24, 2020. In the event that agencies or other nominating parties are unable to access the online nomination form, nomination letters may be sent via email. The nomination letter should be no longer than three pages and should include all of the fields listed above. Nominations submitted in letter format must be sent via email to [email protected] by 5pm PDT on Friday, April 24, 2020.
Detailed information regarding the nomination process for this award is available at www.justice.gov/ag/policing-award.
Please direct all general inquiries to [email protected].
The Dalles Man Sentenced to Seven Years in Federal Prison for Transporting and Possessing Child PornographyRead the Press Release
PORTLAND, Ore.—Jonathan David Murphy, 42, of The Dalles, Oregon, was sentenced today to seven years in federal prison and five years’ supervised release for transporting and possessing child pornography.
According to court documents, in 2017, local and federal law enforcement conducted undercover investigations of online peer-to-peer file sharing programs being used to exchange images of child pornography. Three separate investigations led investigators to an internet protocol (IP) address registered to a home Murphy shared with his fiancée in The Dalles.
In June 2018, investigators executed a federal search warrant at the residence and Murphy consented to an interview. Murphy admitted to using uTorrent, a peer-to-peer file sharing network, to download and share child pornography.
On February 27, 2020, Murphy pleaded guilty to one count each of transportation and possession of child pornography. After his release from prison, Murphy will be required to register as a sex offender.
This case was investigated by the FBI with assistance from the Wasco County Sheriff’s Office and was prosecuted by Natalie Wight, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Gresham Man Indicted for Portland Area Identity Theft CrimesRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Gresham, Oregon man has been indicted for stealing financial and identification documents from dozens of people throughout the Portland Metropolitan Area.
Robert Loren Finanders, 39, is charged in a nine-count indictment unsealed today with aggravated identity theft, counterfeit access device fraud, illegal possession of device-making equipment, and felon in possession of a firearm.
According to court documents, for at least the last year, Finanders is alleged to have stolen financial and identification documents for approximately 100 people in order to steal money from them and from local businesses. Investigators believe Finanders spent tens of thousands of dollars using stolen credit cards and other personal information. Some of the stolen identities appear to have been obtained by breaking into cars to steal wallets and purses.
The Portland Police Bureau’s (PPB) East Precinct Street Crimes Unit began investigating Finanders in late September 2019 after a fraudulent Oregon driver’s license in the name of an adult victim was found 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 ordering food at restaurant using a stolen credit card.
Bend police searched a vehicle being 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. While searching a Bend hotel room shared by Finander and his co-conspirator, officers recovered W2s in the name of another victim and a victim profile notebook.
As the investigation continued, PPB officers linked Finanders to additional identity theft crimes in Portland, Gresham, and Lake Oswego, Oregon. On January 22, 2020, a search warrant was executed at a residence shared by Finanders and his co-conspirator. Officers seized stolen profiles for 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; evidence of drug trafficking; and other items.
On March 12, 2020, a federal grand jury in Portland indicted Finanders in a sealed nine-count indictment. On April 1, 2020, he was arrested by PPB. Finanders made his first appearance in federal court today. A three-day jury trial scheduled to begin on June 2, 2020. The magistrate court took under advisement the issue of whether to detain Finanders pending trial.
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.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the department at www.Justice.gov/Celebrating150Years.
U.S. Attorney Shares Tips for Avoiding COVID-19 Scams Targeting Vulnerable PopulationsRead the Press Release
PORTLAND—Today, U.S. Attorney Billy J. Williams warned of several new fraud schemes seeking to exploit the evolving coronavirus public health emergency by targeting vulnerable populations.
Scammers have already devised numerous methods for defrauding people in connection with COVID-19. They are setting up websites, contacting people by phone and email, and posting disinformation on social media platforms. Some examples of scams linked to COVID-19 include:
- Testing scams: Scammers are selling fake at-home test kits or going door-to-door performing fake tests for money.
- Treatment scams: Scammers are offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19.
- Supply scams: Scammers are creating fake shops, websites, social media accounts, and email addresses claiming to sell medical supplies currently in high demand, such as surgical masks. When consumers attempt to purchase supplies through these channels, fraudsters pocket the money and never provide the promised supplies.
- Provider scams: Scammers are contacting people by phone and email, pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding payment for that treatment.
- Charity scams: Scammers are soliciting donations for individuals, groups, and areas affected by COVID-19.
- Phishing scams: Scammers posing as national and global health authorities, including the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending phishing emails designed to trick recipients into downloading malware or providing personal identifying and financial information.
- App scams: Scammers are creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
- Investment scams: Scammers are offering online promotions on various platforms, including social media, claiming that the products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result. These promotions are often styled as “research reports,” make predictions of a specific “target price,” and relate to microcap stocks, or low-priced stocks issued by the smallest of companies with limited publicly available information.
The U.S. Attorney’s Office urges Oregonians to take the following precautionary measures to protect themselves from known and emerging scams:
- Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
- Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
- Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
- Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
- Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
- Ignore offers for a COVID-19 vaccine, cure, or treatment. Remember, if there is a medical breakthrough, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
- Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
- Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
- Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
- Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
- For the most up-to-date information on COVID-19, visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
On March 19, 2020, U.S. Attorney Williams announced the appointment of a COVID-19 fraud coordinator to lead investigations into known and suspected occurrences of financial fraud related to the nation’s ongoing public health emergency.
If you or someone you know believe you’ve been the target or victim of an outbreak-related fraud scheme, please contact the FBI’s Internet Crime Complaint Center (IC3) by visiting www.IC3.gov. If you or someone you know are in immediate danger, please call 911.
The U.S. Attorney’s Office COVID-19 fraud coordinator will be notified of tips submitted via the above reporting method.
U.S. Attorney's Office Takes Steps to Maintain Mission Amidst Covid-19 Public Health EmergencyRead the Press Release
PORTLAND—Today, U.S. Attorney Billy J. Williams announced a series of steps aimed at protecting consumer financial safety and preventing civil rights violations amidst the coronavirus outbreak.
U.S. Attorney Williams has appointed COVID-19 fraud and civil rights coordinators to lead investigations into known and suspected occurrences of consumer financial fraud and civil rights violations resulting from the nation’s ongoing public health emergency.
“We are aware of instances of consumer fraud and civil rights violations stemming from the COVID-19 public health emergency,” said U.S. Attorney Williams. “While Americans work to protect themselves and their loved ones from the threat of COVID-19, some individuals are actively trying to profit off of this emergency. Equally concerning,” Williams continued, “we have received reports of alleged civil rights violations stemming from the false belief that certain groups of people are more susceptible to carrying or contracting the virus based on their real or perceived race, ethnicity, employment or other demographic characteristics.”
If you or someone you know believe you’ve been the target or victim of an outbreak-related fraud scheme, please contact the FBI’s Internet Crime Complaint Center (IC3) by visiting www.IC3.gov. Crime tips of any kind, including alleged civil rights violations, can be submitted by visiting tips.fbi.gov or calling the FBI Portland Field Office at (503) 224-4181. If you or someone you know are in immediate danger, please call 911.
The U.S. Attorney’s Office COVD-19 fraud and civil rights coordinators will be notified of tips submitted via any of the above reporting methods.
On March 13, 2020, Chief U.S. District Court Judge Marco A. Hernandez issued Standing Order 2020-4, Court Operations in Response to COVID-19. Under the order, most district court proceedings are continued or will be resolved via telephone or video conference. Case-by-case exceptions to this guidance will be considered by the applicable presiding judge after consultation with counsel. The court’s standing order will remain in effect until vacated or amended.
The U.S. Attorney’s Office has taken necessary precautions to protect the health and safety of its staff during this health emergency while continuing to fulfill its public safety mission. Essential law enforcement functions including investigations, the signing and execution of warrants, filing of charges, and case litigation will continue. District of Oregon prosecutors and support staff will continuing working with federal, state, local and tribal law enforcement partners to safeguard our justice system and protect the safety and security of our nation during this difficult time.
“We are immensely grateful for the many public health and medical professionals and first responders on the front lines of protecting our communities from the novel coronavirus,” said U.S. Attorney Williams, “During this time of uncertainty and fear, it is more important than ever that all Americans look out for one another, act out of compassion and generosity, and look for opportunities to help their neighbors. Likewise, federal law enforcement will continue doing our part to keep our communities safe.”
Two Canadian Nationals Sentenced to Federal Prison for Bitcoin FraudRead the Press Release
PORTLAND, Ore.— Karanjit Singh Khatkar, 23, and Jagroop Singh Khatkar, 24, residents of Surrey, British Columbia, Canada, were sentenced today to 24 months in federal prison and three years’ supervised release for conspiring to commit wire fraud and money laundering in a scheme to steal bitcoin from an Oregon resident.
According to the indictment, beginning in October 2017 and continuing until August 2018, the defendants used a Twitter account with the name @HitBTCAssist to trick victims into thinking they were communicating with a customer service representative from HitBTC, a Hong Kong-based online platform used to exchange virtual currency. HitBTC provides its customers with web-based “wallets” to store virtual currency and make transactions.
Using the fraudulent Twitter account, the defendants responded to the Oregon victim’s questions about withdrawing virtual currency from her HitBTC account. The defendants convinced the victim to send information they could use to log on and take over her email, HitBTC and Kraken accounts. Kraken is a U.S.-based online platform that offers services similar to HitBTC.
The defendants initiated transfers of 23.2 bitcoins from the victim’s HitBTC account to Karanjit Khatkar’s Kraken account. Karanjit Khatkar in turn transferred approximately 11.6 in stolen bitcoins to Jagroop Khatkar’s Kraken account.
Two days after illegally accessing the victim’s account, Karanjit Khatkar bought a Mercedes-Benz with $56,598 in Canadian dollars. The Khatkars also traveled to casinos. Karanjit Khatkar gambled with tens of thousands of dollars while staying at high-end casinos in Las Vegas, Nevada.
On July 18, 2019, Karanjit Khatkar was arrested upon arrival at the McCarran International Airport in Las Vegas and later ordered detained pending trial. Jagroop Khatkar appeared voluntarily for his arraignment and change of plea on December 16, 2019.
On December 16, 2019, the Khatkars pleaded guilty to conspiring to commit wire fraud and money laundering. As mandated by their plea agreements, the Khatkars delivered a check of $142,349 as a prepayment of restitution to their victim at their change of plea hearing.
At sentencing, the Khatkars were ordered to pay an additional $42,162 to their victim for a total restitution order of $184,511.
This case was investigated by FBI and prosecuted by Quinn P. Harrington and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the department at www.Justice.gov/Celebrating150Years.
Warm Springs Man Charged with Aggravated Sexual Abuse of Minor, Additional Victims SoughtRead the Press Release
PORTLAND, Ore.—A Warm Springs man has been charged with sexually abusing a minor victim nearly three decades ago on the Warm Springs Indian Reservation.
According to an indictment unsealed today, between January 1993 and January 1998, Austin Smith Sr., 69, a member of the Confederated Tribes of Warm Springs, is alleged to have knowingly engaged in abusive sexual contact with a minor under 12 years old.
Smith is charged with two counts each of abusive sexual contact and sexual abuse and three counts of aggravated sexual abuse. If convicted, he faces a maximum sentence of life in prison.
Smith was arrested on the Warm Springs Indian Reservation and made an initial appearance today in federal court. He was detained pending a six-day jury trial scheduled to begin on May 12, 2020 before U.S. District Court Judge Robert E. Jones.
This case was investigated by FBI Portland’s Safe Trails Task Force and the Warm Springs Tribal Police Department and is being prosecuted by U.S. Attorney’s Office for the District of Oregon.
Investigators are seeking the public’s help to identify additional potential victims who may have had contact with Smith. If you have any reason to believe you or someone you know may be a victim or have additional information about other potential crimes involving this defendant, please contact the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The Safe Trails Task Force (STTF) unites FBI with federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTF allows participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs, and gaming violations.
Three "Felony Lane Gang" Members Charged in Portland Area Bank Fraud SchemeRead the Press Release
FORT LAUDERDALE, Fla.—A federal criminal complaint has been unsealed charging three Florida men affiliated with the “Felony Lane Gang” national criminal organization for their roles in a bank fraud scheme targeting female victims in the Portland, Oregon Metropolitan Area.
Delvin Mills, 26, and Treveon Jordan, 22, both of Lauderdale Lakes, Florida, and Damian Fletcher, 26, of Fort Lauderdale, each face charges of conspiracy to commit bank fraud, bank fraud, and aggravated identity theft.
According to the complaint, Mills, Jordan, and Fletcher are members 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.
Members of the organization appear to target female victims who leave their purses, wallets, and valuables in parked vehicles. After victims exit their vehicles—often to drop off children, run errands, or visit a gym—Felony Lane Gang members quickly break into the vehicle, steal targeted items, and drive away. After stealing purses or wallets, the gang members quickly deploy associates to conduct fraudulent bank or merchant transactions using stolen forms of identification, checks, and credit or debit cards before the victim can alert financial institutions.
The local investigation began after a special agent with Homeland Security Investigations (HSI) learned of a vehicle break-in and theft in Tigard, Oregon. Witnesses allege seeing a man break into a vehicle, steal a victim’s wallet and belongings, and flee in a Jeep Compass sport utility vehicle. During a review of records, Tualatin Police Department, the responding law enforcement agency, learned Jordan had rented the Jeep at Portland International Airport (PDX) one week before the break-in.
With this information, the HSI Special Agent located video surveillance footage of Jordan renting and returning the Jeep at PDX. Jordan appeared to rent the vehicle by himself and return it with two other individuals later identified as Mills and Fletcher. After returning the vehicle, Jordan and Fletcher boarded a flight from PDX to Denver, Colorado. To date, investigators do not know what flight Mills boarded or if he was flying under an assumed name.
The HSI Special Agent later learned that the Jeep had been parked at motel in Northeast Portland during Jordan’s rental period. Further investigation revealed that Mills and Jordan were frequent visitors and usually stayed with an older female. Mills, Jordan and the female, later identified as Linda Marie Lupo, 51, of Deerfield, Florida, had rented rooms at the motel on eight prior occasions over a period of five months.
As the investigation unfolded, HSI began linking the group and the Jeep Compass rental vehicle to numerous unsolved car thefts and instances of bank fraud throughout the Portland area. Lupo and another linked individual, Megan Spurlock, 25, a Washington State resident, were identified as associates of the gang responsible for conducting fraudulent bank and merchant transactions using victims’ stolen bank cards and identification.
To date, this investigation has identified 32 car thefts committed during Mills, Jordan, and Fletcher’s most recent known Oregon crime spree. The thefts occurred in Lake Oswego, West Linn, Tualatin, Clackamas, Happy Valley, Salem, Corvallis, Albany, Springfield, and Beaverton, Oregon, and Vancouver, Washington. In one instance, a handgun was stolen and has not been recovered. The estimated total loss to victims, including banks, during this crime spree exceeds $100,000.
Jordan and Fletcher were arrested on March 9, 2020 in Florida and made their first appearances in federal court in Fort Lauderdale the same day. Detention hearings for both will be held on March 12, 2020 in Fort Lauderdale. Mills is in custody in Florida where he faces local charges. He is expected to make his first appearance in federal court and be transferred to the District of Oregon at a later date.
Lupo and Spurlock are charged with multiple counts of bank fraud and aggravated identity theft in a separate criminal case. Both are in custody and awaiting a four-day jury trial scheduled to begin on April 14, 2020.
This case was investigated by HSI with assistance from the West Linn Police Department, Tualatin Police Department, and Clark County Sheriff’s Office. It is being prosecuted by Quinn P. Harrington, 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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the department at www.Justice.gov/Celebrating150Years.
Criminal ComplaintLeader of Salem-Area Drug Distribution Network Sentenced to Ten Years in Federal PrisonRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that the leader of a Salem-area drug distribution network was sentenced to federal prison for his role in a conspiracy to distribute methamphetamine and cocaine in and around Salem, Oregon.
Isaias Alvarado, 38, a Mexican citizen residing in Salem, was sentenced to 120 months in federal prison and five years’ supervised release.
According to court documents, the arrest and prosecution of Alvarado and his associates has significantly disrupted the distribution of methamphetamine and cocaine in the Salem area. Alvarado along with his brother and co-defendant, Isaac Alvarado, 33, also of Salem, were part of a distribution network that purchased drugs in Los Angeles, California for redistribution in Salem. Investigators believe the network had recently begun expanding their operations to include heroin distribution.
On June 13, 2017, investigators conducted a federal search warrant on Alvarado’s Salem residence. The search yielded approximately 1.2 kilograms of methamphetamine, a digital scale, four cell phones, night vision goggles, and bulk ammunition. Investigators also seized five firearms from Alvarado’s bedroom: a Springfield Armory AR-15, a Zastava Arms AK-47, a Remington 12-gauge shotgun, a Century Arms 7.62 x 39mm caliber rifle, a CZ 9mm caliber rifle. Alvarado was arrested without incident.
On May 8, 2019, Alvarado pleaded guilty to one count of conspiring to possess with intent to distribute methamphetamine. During sentencing, U.S. District Court Judge Robert E. Jones ordered Alvarado to forfeit the five firearms seized.
On March 7, 2019, Isaac Alvarado pleaded guilty to one count of possession with intent to distribute methamphetamine. He will be sentenced on March 25, 2020. Seven other members of the Alvarados’ distribution network have been sentenced for related offenses. Sentenced defendants include:
- Luis Ramirez-Valderrama, 42, of Salem—97 months in prison and five years’ supervised release
- Manuel Garcia, 33, of Salem—78 months in prison and five years’ supervised release
- Ruben Rosas-Lozana, 32, a Mexican national residing in Salem—48 months in prison and three years’ supervised release
- Juan Francisco Viveros-Rivera, 34, a Mexican national residing in Salem—40 months in prison and three years’ supervised release
- Christopher Robin Diebel, 40, of Salem—36 months in prison and three years’ supervised release
- Nichole Breanna Smiley, 36, of Salem—time served in prison and five years’ supervised release
- Miguel Angel Garnica-Martinez, 32, of Salem—time served in prison and five years’ supervised release
This case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Kemp Strickland, Assistant U.S. Attorney for the District of Oregon.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Southern California Man Accused of Health Care FraudRead the Press Release
PORTLAND, Ore.—A southern California man who owned and operated local compounding pharmacies has been indicted by a federal grand jury on allegations that he submitted dozens of fraudulent patient attestations in support of reimbursement claims to CVS Caremark, a national pharmacy benefit manager.
Matthew Hogan Peters, 36, of Dana Point, California, made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman. The court unsealed a two-count indictment charging Peters with health care fraud and aggravated identity theft.
According to the indictment, Peters owned and operated Professional Center 205 Pharmacy and Portland Professional Pharmacy, compounding pharmacies located in Southeast Portland. The pharmacies filled prescriptions for, among other things, compounded pain creams, a lucrative line of products. Private and federal healthcare insurance programs reimburse compounding pharmacies for such creams at rates far higher than comparable over-the-counter or bulk-manufactured medications.
CVS Caremark administered prescription drug benefits for many patients the pharmacies served. From April 1, 2014, through May 15, 2015, Peters sought reimbursements of more than $3.4 million from CVS Caremark, which in turn paid him nearly $1.69 million. In mid-2015, CVS Caremark audited Professional Center Pharmacy’s claims for reimbursement and identified approximately 185 claims that lacked records proving customers’ receipt of medications.
Facing possible suspension from CVS Caremark’s network, Peters submitted documentation to explain the discrepancies identified in the audit. This documentation included 41 written attestations, each purporting to bear the electronic signature of an individual patient, confirming that the patient received the prescription in question. Peters is alleged to have created each of their electronic signatures himself.
Peters was released pending a four-day jury trial scheduled for May 5, 2020, before Chief U.S. District Court Judge Marco A. Hernandez.
This case was investigated by the FBI, the Offices of Inspectors General for the Departments of Health and Human Services and Labor, the United States Postal Service Office of Inspector General, the United States Postal Inspection Service, and the Defense Criminal Investigative Service. It is being prosecuted by Ryan W. Bounds and Seth D. Uram, Assistant U.S. Attorneys, and Elizabeth Ballard Colgrove, Special 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 year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Beaverton Man Pleads Guilty to Distributing Child PornographyRead the Press Release
PORTLAND, Ore.—John James Shore, IV, 55, of Beaverton, Oregon, pleaded guilty today to one count of distributing child pornography.
According to court documents, the government’s investigation revealed that Shore used BitTorrent, a peer-to-peer file sharing program, to acquire and distribute child pornography. The program allowed others to freely download Shore’s child pornography from his computer. Investigators from the Benton County Sheriff’s Office identified the Internet Protocol (IP) address for Shore’s home as a source of child pornography and downloaded 350 gigabytes of data from the address between February and July 2018.
In October 2018, FBI agents and task force officers executed a search warrant on Shore’s Beaverton home and seized a personal computer. During an interview shortly after the search, Shore admitted to downloading and watching child pornography.
Shore faces a maximum sentence of 20 years in prison, a $250,000 fine and a life term of supervised release. He will be sentenced on June 8, 2020 before U.S. District Court Judge Karin J. Immergut.
The U.S. Attorney’s Office has recommended that Shore pay restitution in full to his victims as determined and ordered by the court at sentencing. Shore has agreed to forfeit the personal computer used to facilitate his crime.
This case was investigated by the FBI with assistance from the Benton County Sheriff’s Office and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember these materials depict actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at: www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Final Defendant Sentenced to Federal Prison for Role in Interstate Identity Theft SchemeRead the Press Release
PORTLAND, Ore.—On Monday, March 2, 2020, Gary Peck, 44, of Clark County, Washington, was sentenced to 36 months in federal prison and 3 years’ supervised release for his role in a credit card fraud ring that operated in the greater Portland metropolitan area from February 2017 to February 2018.
Peck is the tenth and final defendant sentenced for crimes associated with the scheme. The scheme’s leader and organizer, Jonathan Dominic Coons, 41, of Vancouver, Washington, was sentenced on January 25, 2019, to 75 months in federal prison and three years’ supervised release.
According to court documents, to facilitate the scheme, Coons, Peck, and their co-conspirators manufactured more than 1,100 counterfeit credit and debit cards and used them throughout Oregon, Washington, and Idaho. To create the counterfeit cards, the group embossed stolen credit card and other identifying information on gift cards purchased or stolen from local stores. The majority of stolen information used by the group belonged to individuals residing in Canada and Australia.
The group used the counterfeit credit and debit cards to purchase various items including hotels, rental cars, and merchandise they would in turn sell online or trade for illegal narcotics. The group would organize “shopping” trips, working their way along Interstate 5 and stopping at various shopping centers to use the counterfeit cards. They structured these trips to maximize their use of the cards and avoid detection by law enforcement.
During the investigation, local law enforcement officers obtained and executed a search warrant on Peck and co-defendant Dawn Szabo’s shared residence. Like Peck, Szabo, 42, also of Clark County, had extensive involvement in the scheme and participated in many of the group’s “shopping” trips. Their residence was used as a flophouse where the co-conspirators planned the scheme, manufactured the counterfeit cards, and used drugs.
Sentenced defendants include:
- Jonathan Dominic Coons—75 months in prison and three years’ supervised release
- Mikayla Brewington, 26, of Clark County—54 months in prison and three years’ supervised release
- Samantha Rudd, 25, of Multnomah County, Oregon—54 months in prison and three years’ supervised release
- Dawn Szabo—52 months in prison and three years’ supervised release
- Bryce Sfetku, 30, of Clark County—48 months in prison and three years’ supervised release
- Sarah Epley, 42, of Multnomah County—36 months in prison and three years’ supervised release
- Courtney Foster, 36, of Multnomah County—36 months in prison and three years’ supervised release
- Gary Peck—36 months in prison and 3 years’ supervised release
- Kevin Leighty, 36, of Multnomah County—30 months in prison and three years’ supervised release
- Kimberly Patterson, 33, of Multnomah County—24 months in prison and three years’ supervised release
This case was investigated by the Vancouver Police Department with the assistance of Homeland Security Investigations (HSI), and prosecuted by Rachel K. Sowray and Scott E. Bradford, Assistant U.S. Attorneys for the District of Oregon.
If you or someone you know believes you have been the victim of an identity theft crime, please contact HSI at (866) 347-2423. You can also submit a tip online by visiting: www.ice.gov/webform/hsi-tip-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
PORTLAND—U.S. Attorney Billy J. Williams joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting nearly 10% of older Americans every year. Together with our federal, state, local, and tribal partners, the U.S. Attorney’s Office for the District of Oregon is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, victim services, and public awareness.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the Department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The Department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“Victims of all ages lose billions of dollars annually to fraud schemes and the elderly fall victim to these schemes at far greater rates than the rest of the population. We all need to be vigilant in protecting our own finances, but we also need to watch out for our elderly friends and love ones. Intercede when you learn that a friend or family member is contemplating sending money to someone who has contacted them by telephone or online. Your vigilance will make a difference,” said U.S. Attorney Williams. “Federal law enforcement will continue to do everything we can to stop these bad actors before they can victimize more Americans.”
This interactive map provides information on the elder fraud cases highlighted by today’s sweep announcement.
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Final Defendant Sentenced to Federal Prison for Role in Interstate Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—Lozaro Sopo Lopez, 26, of Miami, Florida, was sentenced today to 40 months in federal prison and three years’ supervised release for his role in a large scheme to defraud banks located in Oregon and elsewhere of more than $900,000.
Sopo Lopez is the seventh defendant sentenced for crimes associated with the scheme beginning in at least January 2017 and continuing until January 2018. Two other co-conspirators have been indicted in the District of Oregon for related criminal conduct, but remain at large.
According to court documents, Sopo Lopez and his co-conspirators recruited individuals to deposit fraudulent checks at various banks. These individuals—referred to as “mules”—were given checks with their names typed or written on them and driven to banks to attempt deposits. Sopo Lopez and his co-conspirators instructed the individuals to use coded messages to communicate their success or failure at the banks.
When the co-conspirators received proceeds from the fraudulent deposits, they would make cash deposits into Florida-based bank accounts. These deposits were structured to avoid detection by law enforcement. Shortly thereafter, other co-conspirators withdrew the cash in Florida. In total, the scheme resulted in an estimated loss of at least $911,444 to various banks and credit unions in Oregon and Washington.
Sentenced defendants include:
- Arley Gonzalez, 34, of Miami, Florida—57 months in prison, three years’ supervised release, and a $64,460 forfeiture money judgement
- Antonio Conde Cabrera, 35, of Miami, Florida—41 months in prison, five years’ supervised release, and a $151,810 forfeiture money judgement
- Miguel Betancourt, 39, of Miami, Florida—33 months in prison, three years’ supervised release, and a $40,820 forfeiture money judgement
- Luis Chavez, 47, of Miami, Florida—39 months in prison, three years’ supervised release, and a $45,735 forfeiture money judgement
- Yusniel Paez Rodriguez, 36, of Miami, Florida—50 months in prison, three years’ supervised release, and a $31,222 forfeiture money judgement
- Ronny Vazquez, 33, of Miami, Florida—37 months in prison, three years’ supervised release, and a $17,698 forfeiture money judgement
During sentencing, U.S. District Court Judge Marco A. Hernandez ordered Sopo Lopez to pay $652,926 in restitution and $22,888 to satisfy a forfeiture money judgement. All sentenced defendants were jointly and severally ordered to pay $652,926 in restitution.
This case was investigated by Homeland Security Investigations (HSI), Vancouver Police Department, and Portland Police Bureau and prosecuted by Julia E. Jarrett and Seth D. Uram, Assistant U.S. Attorneys for the District of Oregon.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Owner of Bend-Based Microbrewery Equipment Company Indicted on Fraud ChargesRead the Press Release
EUGENE, Ore.—A federal grand jury in Eugene returned an indictment last week charging a Bend, Oregon resident with using a microbrewery equipment company to defraud customers of more than $800,000.
The seven-count indictment alleges that Matthew Mulder, 48, used his company, WeCan Brewing Systems, LLC, to solicit payments from 23 customers located throughout the U.S. Mulder’s company supplied custom-built microbrew systems, keg washers, and other industrial brewing products. Many of his customers were microbrewery owners.
According to court documents, beginning in at least 2017, Mulder began soliciting and accepting orders for microbrewery equipment he knew his company was not capable of fulfilling. When asked by various customers for order updates, Mulder falsely stated that the orders were on schedule or near completion.
Mulder would entice customers to make payments by sending emails and text messages that included photos of nearly-completed orders prepared for other customers. Mulder solicited and accepted new customer contracts requiring large down payments that he would in-turn use for personal expenses, to pay off loans, and to pay suppliers.
Mulder made his initial appearance in federal court in Eugene today. He was released pending a jury trial scheduled for April 29, 2020 before U.S. District Court Judge Michael J. McShane.
Mulder faces four counts of wire fraud and three counts of mail fraud. Wire and mail fraud are both punishable by up to 20 years in prison, a $250,000 fine, and three years’ supervised release.
This case was investigated by the FBI and the Bend Police Department and is being prosecuted by Gavin W. Bruce, 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.
Portland Man Sentenced to Prison for Filing False Federal Income Tax ReturnRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Mark Edward Staggs, 64, a resident of Portland, has been sentenced to six months in federal prison and two years’ supervised release for filing a false federal income tax return in 2011. Staggs was also ordered to pay more than $142,000 in restitution to the IRS.
According to court documents, from 2009 through 2019, Staggs owned a used office furniture business in the Portland area. During this time, he received all of his gross income from several large clients in Oregon and California, who paid him with checks. Staggs would travel from Oregon to California to cash the checks at a check cashing service in San Jose, California. His use of a false social security number prompted the check cashing service to file Currency Transaction Reports (CTRs) with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
Staggs kept the cash he received and never deposited it into his business bank account or recorded it in his business records. When the check cashing service began refusing Staggs’ checks, he enlisted two acquaintances to cash the checks on his behalf. Staggs encouraged these acquaintances to lie if anyone questioned them about his scheme. In total, between 2010 and 2013, Staggs failed to report nearly $500,000 of income, resulting in tax loss of $142,583.
On April 9, 2019, Staggs pleaded guilty to one count of filing a false federal income tax return before U.S. District Court Judge Michael H. Simon.
This case was investigated by IRS-Criminal Investigation (IRS-CI) and prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
The U.S. Attorney’s Office and IRS-CI remind Oregonians that tax day is Wednesday, April 15, 2020. For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit: https://www.irs.gov/help-resources.
Josephine County Man Pleads Guilty for Threatening Mass Shooting at YouTube HeadquartersRead the Press Release
MEDFORD, Ore.—William Gregory Douglas, 37, of Cave Junction, Oregon, pleaded guilty today for threatening to shoot YouTube employees at the company’s San Bruno, California headquarters after his account was removed for violating the video-sharing platform’s terms of service.
“Threatening a mass shooting is a serious crime whether or not an individual plans to act. This is a crime that undermines Americans’ fundamental right to live and work without fear,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “We will continue to diligently respond to and prosecute criminal threats of violence to the fullest extent of the law.”
“Using social media outlets to threaten violence of any kind victimizes individuals and undermines the safety of our communities,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “The FBI remains committed to working with our state and local partners to respond quickly to threats and keep our communities free from violence and intimidation.”
According to court documents, sometime on or before August 22, 2018, YouTube removed Douglas’ video channel for violating the platform’s terms of service. In response, on August 23, 2018, Douglas posted five tweets threatening violence against YouTube employees. In one of the tweets, Douglas threatened a “bigger mass casualty” event, appearing to reference a prior shooting incident at YouTube’s headquarters in April 2018 that injured three employees.
Later, on September 8, 2018, Douglas posted a tweet stating “Hey why do you guys keep ignoring me would it be better if I leave you with no other options like your [sic] leaving me…I’m beyond pissed…I wonder how I should deal with this frustration.” Finally, on September 17, 2018, Douglas tweeted a direct threat at one of YouTube’s senior leaders saying “…I’m coming for you today #pray.”
On October 4, 2018, a federal grand jury in Medford, Oregon returned a one-count indictment charging Douglas with cyberstalking. Later, on January 14, 2020, he was charged by criminal information with one count of making interstate communications with the intent to extort. Douglas pleaded guilty today to the latter charge.
As part of the plea agreement, Douglas has agreed to pay restitution in full to his victims as determined and ordered by the court at sentencing.
Douglas faces a maximum sentence of 5 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on May 14, 2020 before U.S. District Court Judge Ann L. Aiken.
This case was investigated by the FBI and prosecuted by Judi R. Harper, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at https://tips.fbi.gov. For immediate threats to life and safety, please call 9-1-1.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our department at www.Justice.gov/Celebrating150Years.
Repeat Offender Sentenced to 90 Months in Federal Prison for Distributing MethamphetamineRead the Press Release
PORTLAND, Ore.—Timothy Ray Vance, 54, of Salem, Oregon, was sentenced to 90 months in federal prison and five years’ supervised release for distributing large quantities of methamphetamine throughout Marion County.
Vance has a long criminal history dating back to 1983. Vance served more than 20 years in prison after being convicted in Marion County Circuit Court in 1994 on two counts of robbery, two counts of burglary, and one count each of kidnapping and theft.
Two months after completing post-prison supervision, in August 2018, Vance was found to be involved in a large methamphetamine distribution network. By October 2018, investigators discovered the network’s source of supply and at least one informant who revealed they had purchased methamphetamine from Vance on ten different occasions. A different informant told investigators that on one occasion, Vance sold them one pound of methamphetamine for $3,200.
In February 2019, Salem Police Department executed a search warrant on Vance’s residence. Investigators located 62.7 grams of methamphetamine, $2,780 in cash, drug packaging materials, and two handguns. Vance was placed under arrest and later released.
In March 2019, investigators learned that Vance was dealing methamphetamine out of a Salem hotel room. Officers conducted a traffic stop of Vance after obtaining a search warrant on his vehicle. During the search, they found 443 grams of methamphetamine, $1,500 in cash, and two additional firearms.
On November 11, 2019, Vance pleaded guilty to one count of possession with intent to distribute methamphetamine. As part of his plea agreement, Vance agreed to abandon four firearms used to facilitate his crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Salem Police Department. It was prosecuted by Lewis S. Burkhart, Assistant U.S. Attorney 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.
U.S. Attorney Statement on Justice Department Sanctuary Jurisdiction Legal ActionRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, provides the below statement on the sanctuary jurisdiction legal action announced today by Attorney General William P. Barr.
“Today, Attorney General Barr announced new legal actions in several states being taken by the Justice Department to address sanctuary jurisdictions. I share the Attorney General’s belief that sanctuary status declarations directly contravene federal immigration law and threaten public safety. In our country, the Congress makes immigration law and has directed federal authorities to enforce it. The notion that states and other jurisdictions can interfere in the sharing of critical public safety information involving criminal conduct ignores the supremacy of federal law. Each year, many preventable crimes are committed when jurisdictions refuse to cooperate with lawful federal immigration enforcement activities.
Oregon sheriffs and other law enforcement officers are caught in the middle of a highly politicized local and national debate over these policies. Many are left to choose whether to violate state or federal law. This is an untenable position for the men and women who work tirelessly to protect our communities. Since 2015, we have worked with our federal, state, and local law enforcement partners here in Oregon to cure this impasse. Our work will continue tomorrow when we will again convene a large group of law enforcement partners to discuss these new lawsuits and other related issues.”
Coos Bay Man Sentenced to Federal Prison for Distributing Methamphetamine and Possessing Sawed-off ShotgunsRead the Press Release
EUGENE, Ore.—Theron Gilbert Gerber, 36, a resident of Coos Bay, Oregon, was sentenced to five years in federal prison followed by a four-year term of supervised release for distributing methamphetamine and unlawfully possessing sawed-off shotguns.
According to court documents, in March 2019, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) learned that Gerber, who had prior state felony convictions, was selling firearms and methamphetamine in the Coos Bay area.
On April 4, 2019, an undercover ATF agent met with Gerber for a firearms purchase. Upon entering Gerber’s home, the agent saw drug paraphernalia and approximately 20 to 25 firearms displayed for sale. During the meeting, Gerber stated, “everything’s for sale for the right price.” Gerber then sold the agent a short-barreled shotgun, a Glock pistol, three magazines, three drum magazines, and 91 rounds of ammunition—all for $600.
The agent arranged a second purchase the following week. On April 11, 2019, the agent again met with Gerber inside his residence. This time, the agent purchased an AK-style rifle for $500 and asked if Gerber would sell methamphetamine. Gerber agreed to sell the agent approximately 13 grams of methamphetamine for $240.
Finally, on April 25, 2019, the agent brokered a third firearm purchase from Gerber. Gerber sold the agent a second sawed-off shotgun, an AR-style pistol, 181 rounds of assorted ammunition, six 30-round AR-style magazines, and a Colt .45 caliber “Night Defender” pistol for $1,500. A short time later, ATF agents executed a search warrant on Gerber’s residence and arrested him.
As part of his plea agreement, Gerber agreed to forfeit the firearms described in the indictment.
On January 6, 2020, Gerber pleaded guilty to one count each of unlawful possession of a short-barreled firearm and distribution of methamphetamine.
This case was investigated by ATF and prosecuted by Nathan J. Lichvarcik and William McLaren, Assistant U.S. Attorneys 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.
Collection of handguns Collection of Firearms Shotgun with Shortened Barrel and Stock Shotgun with Shortened Barrel"Froggy Robber" Sentenced to Federal Prison for Armed Bank RobberyRead the Press Release
PORTLAND, Ore.—Diego Sanchez-Lopez, 25, of Clark County, Washington, known locally as the “Froggy Robber,” was sentenced today to 97 months in federal prison and three years’ supervised release for armed bank robbery.
According to court documents, between November 2017 and April 2018, Sanchez-Lopez stole more than $87,000 from the following six banks in Oregon and Southwest Washington:
- On November 27, 2017, $9,710 was stolen from the Albina Community Bank located at 2002 NE Martin Luther King Jr. Boulevard in Portland.
- On December 27, 2017, $26,000 was stolen from the Wells Fargo Bank located at 8699 SW Main Street in Wilsonville, Oregon.
- On January 11, 2018, $11,580.99 was stolen from the Wells Fargo Bank located at 6785 Beaverton Hillsdale Highway in Beaverton, Oregon.
- On January 30, 2018, $6,720 was stolen from the U.S. Bank located at 52313 Columbia River Highway in Scappoose, Oregon.
- On February 12, 2018, $15,400 was stolen from the Wells Fargo Bank located at 1800 Main Street in Vancouver, Washington.
- On April 30, 2018, 33,357 was stolen from the Wells Fargo Bank located at 7200 NE Butler Street in Hillsboro, Oregon.
During sentencing, U.S. District Court Judge Michael W. Mosman ordered Sanchez-Lopez to pay more than $119,000 in restitution.
Previously, On August 5, 2019, Sanchez-Lopez pleaded guilty to six counts of bank robbery. As a non-citizen and lawful permanent resident, this conviction will subject Sanchez-Lopez to removal from the U.S. by immigration authorities.
This case was investigated by the FBI and prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
U.S. Attorney and Oregon Attorney General Issue Joint Guidance on the Enforcement of Tribal Protection OrdersRead the Press Release
PORTLAND— U.S. Attorney Billy J. Williams and Oregon Attorney General Ellen F. Rosenblum issued joint official guidance today on the enforcement of tribal protection orders.
Tribal protection orders, referred to as foreign restraining orders under state law, are civil orders of protection issued by tribal courts to prevent future domestic violence. State and federal law under the Violence Against Women Act (VAWA) require full faith and credit for these orders, meaning all states must uphold protective orders from any other state and from any tribal nation.
“Protecting public safety and the fair administration of justice requires steadfast partnership among local, state, tribal, and federal law enforcement agencies. When we fail to uphold tribal restraining orders, we leave Native women vulnerable to human trafficking and violence, contributing to the Missing and Murdered Indigenous Women and Persons epidemic,” said U.S. Attorney Williams. “When we grant full faith and credit for tribal restraining orders, we are working collaboratively across jurisdictions to ensure all Oregonians enjoy the same court-ordered protections regardless of who they are, or where they live or travel in the state.”
“We have heard from all levels of law enforcement that there may be confusion nationally and statewide about how to enforce tribal protection orders,” said Attorney General Rosenblum. “We hope that this guidance will help us work together to better protect all victims of domestic violence—especially tribal women who deserve the same protections as other Oregon women. We want to ensure that all law enforcement understands and recognizes what a tribal protection order is and will enforce it.”
The Oregon Department of Justice and U.S. Attorney’s Office will be traveling around the state in March to train law enforcement, prosecutors, advocates, and community members about full faith and credit as part of ODOJ’s RISE program.
A PDF version of today’s memorandum is available on the U.S. Attorney’s Office website at https://www.justice.gov/usao-or/indian-country.
According to findings from the 2010 National Intimate Partner and Sexual Violence Survey published by the National Institute of Justice, 55.5% of Native women have experienced physical violence by an intimate partner in their lifetime, including 8.6% who have experienced domestic violence in the past year. Native women are 1.6 times as likely, compared to Caucasian women, to have experienced domestic violence in the past year.
If you have questions or concerns about the enforcement of tribal protection orders in Oregon or if you are interested in additional training on this topic, please contact Sarah Sabri with the Oregon Department of Justice at [email protected] or Tim Simmons with the U.S. Attorney’s Office for the District of Oregon at [email protected].
Former Weyerhaeuser Employee Pleads Guilty to Mail Fraud, Aggravated Identity Theft, and Tax EvasionRead the Press Release
EUGENE, Ore.—Susan Tranberg, 61, of Eugene, Oregon, pleaded guilty today in federal court to mail fraud, aggravated identity theft and tax evasion after defrauding her former employer, the Weyerhaeuser Company, out of more than $4.5 million.
“Susan Tranberg used her intimate knowledge of the Weyerhaeuser Company to perpetrate a lengthy and complex fraud. She went to great lengths to disguise her actions and mislead her colleagues,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “She then took her scheme a step further by evading paying taxes on her fraudulent gains. Her crimes reflect a complete disdain for her employer and utter contempt for her responsibilities as an American taxpayer.”
“Between 2004 and 2019, Susan Tranberg purported herself as a trustworthy and dedicated employee. In reality she was embezzling more than $4 million dollars,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “She cheated both her employer and the American taxpayers by evading taxes on her embezzled income. The IRS is committed to promoting taxpayer confidence by ensuring every taxpayer pays their fair share regardless of the taxable source.”
According to court documents, beginning as early as June 2004 and continuing to January 2019, Tranberg defrauded Weyerhaeuser out of more than $4.5 million by submitting fraudulent invoices for payment to a fake vendor she created. Tranberg had worked for Weyerhaeuser in Springfield, Oregon in various positions for more than 40 years.
At some point in or before June 2004, Tranberg created a fake timber contract between the company and a vendor she named after her mother, who was unware of the scheme. Over the next 10 years, Tranberg would use her positions in the company’s accounting and finance departments, to request cashier’s checks payable to the fake vendor. During this time period, Tranberg requested and received more than $2.6 million.
In June 2014, Weyerhaeuser transitioned to a new payment processing system. To continue her scheme, Tranberg set up a fake vendor account in the new system and attached a letter purportedly from her mother describing the documentation provided to set up the account. This documentation included a Form SSA-1099 Social Security Statement and a forged Form W-9 Request for Taxpayer Identification Number and Certification.
Between June 2014 and January 2019, Tranberg continued her scheme by forging colleagues’ signatures on check requests and using her colleagues’ computer login credentials without authorization to create requests and approve fraudulent payments. All requested cashier’s checks were sent via private or commercial interstate carrier directly to Tranberg. During these final five years, Tranberg requested and received nearly $1.9 million.
Tranberg faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. In addition, a conviction for aggravated identity theft carries a two-year mandatory minimum sentence required to be served consecutive to any other prison sentence imposed.
As part of her plea agreement, Tranberg has agreed to pay $4,581,218 in restitution to Weyerhaeuser and $807,033 in restitution to the IRS.
This case was investigated by IRS-Criminal Investigation (IRS-CI) and prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Portland Man Sentenced to Federal Prison for Cyber Intrusion of Former EmployerRead the Press Release
PORTLAND, Ore.—On January 22, 2020, Kristopher Ives, 33, of Portland, was sentenced to 12 months and one day in federal prison and three years’ supervised release for illegally accessing the computer network and data of his former employer, Gearbox Studios, after being terminated.
According to court documents, in 2008, Ives began working as a computer programmer for Gearbox Studios, a Portland-based digital marketing agency. Ives eventually became Gearbox Studio’s lead programmer for server architecture and support, a position of trust with access to the computer networks and data of both the company and the company’s clients.
Between February and May 2015, after being terminated from his position, Ives illegally accessed Gearbox’s computers to steal and tamper with data. He used this data to attack Gearbox’s servers and various websites belonging to Gearbox customers. Ives deleted nearly 20,000 products from customer websites and changed prices for various items. Ives also stole names and credit card numbers from these Gearbox customer websites and threatened to release the information unless Gearbox made payment to a bitcoin address.
On October 18, 2019, Ives pleaded guilty to one count of fraud in connection with computers.
This case was investigated by the FBI’s Oregon Cyber Task Force and prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
Any public or private entity suspecting a cyber intrusion or attack should contact the FBI through the Internet Crime Complaint Center at www.ic3.gov or by calling your nearest FBI office.
Vancouver Woman Sentenced to 14 Years in Federal Prison for Drug Trafficking in Two CasesRead the Press Release
PORTLAND, Ore.—Darlene Michelle Sturdevant, 61, of Vancouver, Washington, was sentenced today to 14 years in federal prison and five years’ supervised release for conspiring to possess with intent to distribute methamphetamine and heroin throughout the Portland Metropolitan Area, possessing with intent to distribute heroin, and committing an offense while on release.
According to court documents, in February 2018, Sturdevant was a passenger in a vehicle driven by Rene Elene Griffen Nunn, 60, also of Vancouver, when the two were stopped by the Clackamas County Interagency Task Force (CCITF) and U.S. Drug Enforcement Administration (DEA). Investigators believed Sturdevant and Nunn were driving from Vancouver to Portland to distribute drugs.
A search of the vehicle revealed $155,949, a digital scale, and a notebook in Sturdevant’s backpack and approximately 87 grams of heroin in Nunn’s purse. Investigators returned to Vancouver and searched a residence shared by Sturdevant, Nunn, and others and found an additional 367 grams of heroin and a kilogram of methamphetamine.
Sturdevant was charged with drug trafficking and released pending trial. After pleading guilty in October 2018, DEA learned that Sturdevant was again selling drugs. On January 29, 2019, DEA agents executed a search warrant at Sturdevant’s new residence in Portland and seized approximately 558 grams of heroin, digital sales, a drug ledger, and $27,250.
During sentencing, U.S. District Court Judge Marco A. Hernandez ordered Sturdevant to forfeit $183,199 seized by investigators.
On October 31, 2019, Nunn pleaded guilty to one count of conspiracy to possess with intent to distribute heroin. She will be sentenced on March 4, 2020.
This case was investigated by the DEA and CCITF and was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Oregon Man Sentenced to Prison for Sex Trafficking MinorsRead the Press Release
PORTLAND, Ore.—An Oregon man was sentenced today to 149 months and 12 days in prison, to be followed by a lifetime of supervised release, for sex trafficking minors, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Billy J. Williams of the District of Oregon announced.
Darryl Gartley, 23, pleaded guilty on Aug. 12, 2019, to two counts of sex trafficking minors before U.S. District Court Judge Michael H. Simon of the District of Oregon, who sentenced him earlier today and remanded him to the custody of the U.S. Marshals Service.
According to facts admitted by the defendant during his guilty plea, in the beginning of October 2016, he moved from California to Portland, Oregon. Shortly after moving to Oregon, the defendant met two 15 year old minor females. In or around December 2016 through January 2017, the defendant posted advertisements on Backpage and Craigslist, offering the minors to engage in sexual acts in exchange for money. The advertisements included pictures of the minors both clothed and nude.
This is the defendant’s second conviction for sex trafficking minors. On May 22, 2017, the defendant was sentenced to seven years imprisonment on a state conviction for sex trafficking minors in California.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from the U.S. Marshals Service and the San Diego County Sheriff’s Department. This case is being prosecuted by Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ravi Sinha of the U.S. Attorney’s Office in the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Oregon Man Sentenced to Prison for Sex Trafficking MinorsRead the Press Release
An Oregon man was sentenced today to 149 months and 12 days in prison, to be followed by a lifetime of supervised release, for sex trafficking minors, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Billy J. Williams of the District of Oregon announced.
Darryl Gartley, 23, pleaded guilty on Aug. 12, 2019, to two counts of sex trafficking minors before U.S. District Court Judge Michael H. Simon of the District of Oregon, who sentenced him earlier today and remanded him to the custody of the U.S. Marshals Service.
According to facts admitted by the defendant during his guilty plea, in the beginning of October 2016, he moved from California to Portland, Oregon. Shortly after moving to Oregon, the defendant met two 15 year old minor females. In or around December 2016 through January 2017, the defendant posted advertisements on Backpage and Craigslist, offering the minors for commercial sexual acts. The advertisements included pictures of the minors both clothed and nude.
This is the defendant’s second conviction for sex trafficking minors. On May 22, 2017, the defendant was sentenced to seven years imprisonment on a state conviction for sex trafficking minors in California.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from the U.S. Marshals Service and the San Diego County Sheriff’s Department. This case is being prosecuted by Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ravi Sinha of the U.S. Attorney’s Office in the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Drunken Assault at Sea Nets Federal Prison Sentence for Winchester Bay ResidentRead the Press Release
EUGENE, Ore.—Brandon Michael Vanderploeg, 39, of Winchester Bay, Oregon, was sentenced today to 18 months in federal prison and two years’ supervised release for assaulting his then-girlfriend aboard a fishing vessel in August 2018.
According to court documents, on August 16, 2018, members of the U.S. Coast Guard were dispatched to a situation at sea involving the report of a woman who had been assaulted by her boyfriend onboard a commercial fishing vessel. A coast guard helicopter located the vessel 17 nautical miles off the Oregon Coast. Two members of the coast guard boarded the vessel and made contact with Vanderploeg and the victim.
The victim reported that Vanderploeg had assaulted her on several occasions after leaving Winchester Bay. She specifically reported that Vanderploeg held her down, punched her repeatedly in the face, head-butted her in the nose, and slammed her head down on a tool box. The assault resulted in a three-inch laceration to her right cheek, a depressed nasal fracture, multiple contusions to her knees and arms, and a cervical strain.
During the investigation, the coast guard crew who boarded and conducted a sweep of the vessel, immediately noted a strong smell of alcohol coming from Mr. Venderploeg, who admitted to drinking. Mr. Vanderploeg tested positive for alcohol, registering a blood alcohol concentration (BAC) of .183. An individual operating a commercial vessel is considered intoxicated at a BAC of .04 or more.
On September 30, 2019, Vanderploeg pleaded guilty to assault within the maritime jurisdiction of the U.S. and operating a commercial vessel under the influence of alcohol.
As part of his plea agreement, Vanderploeg agreed to pay restitution in full to his victim as ordered by the court. A restitution hearing will be held at a later date.
This case was investigated by the U.S. Coast Guard Investigative Service (CGIS) and prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
San Diego Man Sentenced to 16 Years in Federal Prison for Traveling to Portland for Sex with MinorRead the Press Release
EUGENE, Ore.—David George Hopkins, 61, San Diego, California, was sentenced today to 200 months in federal prison and a life term of supervised release for traveling with the intent to engage in sex with a minor and other related charges.
Hopkins was previously convicted at trial in February 2019 on one count each of attempting to use a minor to produce a visual depiction of sexually explicit conduct, attempting to coerce or entice a minor, traveling with the intent to engage in illicit sexual conduct and transferring of obscene material to a minor.
According to court documents and information shared at trial, on June 9, 2017, Hopkins traveled from San Diego to Portland, Oregon believing he would be able to have sex with a 13-year-old girl named Paula along with her mother, Norma, and her mother’s friend, Ana, with whom he had been chatting online. Unbeknownst to Hopkins, he had been chatting with an FBI Special Agent acting as both Norma and Paula, and with a person using the alias Ana.
Hopkins and Ana began chatting online in 2012, and during one of the conversations, Hopkins raised the topic of having sex with a minor female in Peru and sent Ana a photo of what was purportedly him receiving oral sex from a minor.
In February 2017, Hopkins again contacted Ana and they began communicating using Skype and Facebook. In their first few conversations after reconnecting, Hopkins disclosed more details about his sexual relations with a minor in Peru. He also claimed to have had similar illicit contact with a minor in Panama. Hopkins later wrote, “did it bother u i [sic] had sex with young girls?” Hopkins did not present his conduct as a fantasy and Ana did not believe it was.
Concerned by the information shared with her, Ana reported Hopkins to the Eugene Police Department who referred the matter to the FBI. In March 2017, Ana met with an FBI Special Agent and agreed to cooperate with an investigation of Hopkins.
Ana continued chatting with Hopkins and their conversations grew increasingly more detailed and graphic as Hopkins shared information about his claimed past sexual experiences with minors and his desire to continue such behavior. In one conversation, Ana mentioned her fictitious Peruvian friend Norma. Hopkins asked if they could all have sex together. Ana also mentioned that Norma had a daughter named Paula. Hopkins also expressed an interest in having sex with Paula.
Ana told Hopkins that Norma had agreed to let him have sex with Paula. Shortly thereafter, Hopkins began communicating directly with Norma, the FBI Special Agent. The conversation quickly turned sexual and they discussed Hopkins flying to Oregon. In subsequent conversations, Hopkins began asking Norma about having sex with Paula, and, later, began communicating online directly with Paula. Hopkins chatted with Paula about having sex with her, describing in detail what he wanted to do. Hopkins sent Paula a picture of his genitals, and asked her to send him a picture of hers.
In June 2017, Hopkins flew from San Diego to Portland with intent to engage in sexual conduct with Paula. He was met and arrested by the FBI at Portland International Airport upon his arrival. His luggage was searched and Hopkins had brought with him stockings and underwear for Paula. Hopkins’ claims of abusing children have not been corroborated. He was indicted by a federal grand jury in Eugene on June 20, 2018.
This case was investigated by the FBI with assistance from the Eugene Police Department. It was prosecuted by Amy Potter and Jeff Sweet, Assistant U.S. Attorneys for the District of Oregon.
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.
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 https://tips.fbi.gov.
Canadian National Pleads Guilty to Drug Charge After Maritime Arrest in International Waters off Oregon CoastRead the Press Release
PORTLAND, Ore.—John Philip Stirling, 65, a Canadian citizen, pleaded guilty in federal court today to one count of possession with intent to distribute methamphetamine under the Maritime Drug Law Enforcement Act (MDLEA).
According to court documents, on April 9, 2019, while on a routine patrol, the U.S. Coast Guard Cutter Alert detected a sailing vessel traveling north 225 nautical miles from Newport, Oregon. The vessel, named Mandalay, had a home port of Seattle, Washington and visible U.S. registration numbers. When Coast Guard personnel attempted to communicate with Stirling, he went below deck and would only respond via VHF radio. Once Coast Guard personnel determined the Mandalay was a vessel within the jurisdiction of the U.S., they boarded and found Stirling to be the vessel’s sole occupant.
Stirling stated he did not have vessel documentation and refused to produce identification. Upon further questioning, Sterling’s speech began to deteriorate and he displayed signs of a possible drug overdose. Coast Guard personnel administered medical aid to Stirling and evacuated him by helicopter to Astoria, Oregon. He was later transported by ambulance to Adventist Health Portland for additional treatment.
Coast Guard personnel conducted a search of the Mandalay and discovered 28 seven-gallon jugs containing liquid methamphetamine.
Under the MDLEA, Stirling faces a maximum sentence of life in prison, a $10 million fine and five years of supervised release. Pursuant to the plea agreement, the government will recommend Stirling be sentenced to 87 months in prison. He will be sentenced on April 20, 2020 before U.S. District Court Judge Michael W. Mosman.
As part of the plea agreement, Stirling has agreed to forfeit the Mandalay.
This case was investigated by the U.S. Coast Guard Investigative Service (CGIS) and Homeland Security Investigations (HSI).
Oregon Military Department Employee Pleads Guilty to Making False StatementsRead the Press Release
PORTLAND, Ore.—Dominic Caputo, 48, of Clackamas County, Oregon, pleaded guilty today to making false statements while employed as a civilian program manager for the Oregon National Guard Oregon Sustainment Maintenance Site (OSMS).
According to court documents, the Oregon National Guard (ONG) operates and maintains the OSMS at Camp Withycombe, an Oregon Military Department installation in Clackamas County. OSMS supports readiness and training of the U.S. Military by refurbishing out-of-service electronic equipment owned by the U.S. Department of Defense. In the event of an emergency or declaration of war, OSMS deploys refurbished equipment to other military bases or installations. During the time alleged in the Indictment and until 2015, OSMS was the only maintenance site in the United States capable of repairing and rebuilding certain engines in support of the federal military supply system.
From 2010 to 2014, Caputo served as a civilian program manager for the OSMS Power Division where he directed, controlled, and supervised the rebuilding and repair of small and large engines, generators, tires and other types of equipment. Caputo was responsible for certifying completed work and submitting claims to the U.S. Army Communications-Electronics Command (CECOM) under the National Maintenance and RESET Programs.
In Fiscal Year 2014, Caputo billed CECOM more than $675,000 for the repair and rebuilding of John Deere Diesel Engines despite the work having not been performed. More than 60 of the engines had already been repaired and billed to CECOM in prior fiscal years. For those engines, Caputo directed Power Division employees to remove and replace original serial numbers and identifying engine plates from the engines to conceal the duplicate billing.
In June 2014, Caputo willingly and knowingly prepared a work order and run test data indicating that the falsified repair work on an engine had been performed. Caputo submitted this false information to CECOM. Caputo’s employment with OSMS was terminated in November 2014 when his fraud was revealed.
In September 2018, a federal grand jury in Portland indicted Caputo for misrepresenting the operational status of military equipment used to maintain a war-ready posture.
Caputo faces a maximum sentence of five years in prison, a $100,000 fine and three years of supervised release. He will be sentenced on May 4, 2020 before U.S. District Court Judge Karin J. Immergut.
As part of the plea agreement, Caputo has agreed to pay more than $2.6 million in restitution to CECOM.
This case was investigated by the FBI, the U.S. Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS), and the U.S. Army Criminal Investigation Command (CID). It is being prosecuted by Michelle Kerin, Assistant U.S. Attorney for the District of Oregon.
U.S. Attorney's Office Collects over $8.2 Million in Civil and Criminal Actions and Restitution Payments in Fiscal Year 2019Read the Press Release
PORTLAND—U.S. Attorney Billy J. Williams announced today that the District of Oregon collected more than $8.2 million in criminal and civil actions and restitution payments made to victims in Fiscal Year 2019.
The U.S. Attorney’s Office, working with partner agencies and divisions, collected $2,925,024 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
As a whole, the Justice Department collected $9.3 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2019.
An example of the district’s collection efforts was in U.S. v. Jiang. In April 2019, Quan Jiang pleaded guilty to one count of trafficking in counterfeit trademarks for his role in smuggling into the U.S. and obtaining refunds for thousands of fake and altered Apple iPhones. Jiang imported more than 2,000 inoperable counterfeit iPhones and ultimately obtained approximately 1,500 genuine replacement iPhones, each with an approximate resale value of $600. On October 21, 2019, Jiang was sentenced to 37 months’ imprisonment and three years’ supervised release. In addition, he was ordered to pay $200,000 in restitution to Apple, which he remitted to the court prior to sentencing pursuant to his plea agreement with the government.
A second example is U.S. v. Med-Tech Resource LLC. From 2013 to 2015, Med-Tech defrauded the U.S. by intentionally misrepresenting the value and classification of emergency medical supply goods it imported from China. Med-Tech knowingly and repeatedly filed entry papers with U.S. Customs and Border Protection that misclassified and understated by half the value of the goods it imported, thereby fraudulently reducing the duties and fees it owed on those goods. Med-Tech paid $238,654 as part of a civil settlement to resolve claims against it under the False Claims Act. Med-Tech’s president, Michael Modrich, pleaded guilty to two counts of wire fraud, and was sentenced 18 months in prison and ordered to pay a $26,610 fine.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Houston Man Sentenced to 84 Months in Federal Prison for Leading Interstate Marijuana Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—Jody Tremayne Wafer, 30, of Houston, Texas, was sentenced today to 84 months in federal prison and three years’ supervised release for organizing and leading a conspiracy to traffic marijuana grown in Portland to Texas.
According to court documents, drug proceeds, in the form of bulk U.S. currency, were returned to Oregon via U.S. mail and passenger luggage on commercial airlines. As part of this investigation, federal authorities have seized approximately 11,000 marijuana plants, 546 pounds of processed marijuana, more than $2.8 million in cash, 51 firearms, 26 vehicles, trailers, pieces of heavy equipment, a yacht, and three houses used as marijuana grow sites, all since August 2017.
On October 2, 2019, Wafer pleaded guilty to one count each of conspiring to manufacture, possess with intent to distribute, and distribute marijuana, maintaining drug-involved premises and using and carrying a firearm during and in relation to a drug trafficking crime.
During sentencing, U.S. District Court Judge Robert E. Jones ordered Wafer to forfeit any criminally-derived proceeds and property used to facilitate his crimes.
Co-defendants Trent Lamar Knight, 31, and Brittany Lesanta Kizzee, 29, also of Houston; Paul Eugene Thomas, 39, and Raleigh Dragon Lau, 33, both of Portland; and Cole William Griffiths, 31, of Hood River, Oregon have all pleaded guilty on related charges. Knight and Kizzee with be sentenced on January 22, 2020 and February 6, 2020, respectively; Lau and Thomas will be sentenced on February 19 and 13, 2020, respectively; and Griffiths will be sentenced on March 5, 2020.
This case was investigated by the U.S. Drug Enforcement Administration, IRS Criminal Investigation, Homeland Security Investigations and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Two Portland Residents Indicted for Illegally Possessing Same Stolen HandgunRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that two Portland residents have been charged with unlawfully possessing the same stolen handgun.
Christopher Eugene Miller, 28, and Kebrin Larry Jones, 27, are charged in a two-count indictment with unlawfully possessing a stolen Taurus model PT-845, .45 caliber handgun.
Miller and Jones join Desmond Boris Washington, 34, also of Portland, who was previously charged in a separate criminal case for unlawfully possessing the same handgun. All three defendants are convicted felons and not permitted to possess firearms.
Agents recovered the stolen firearm while executing a search warrant on Washington’s Portland residence. All three defendants memorialized their unlawful possession of firearms in a publicly-available music video posted to YouTube.
Miller was arraigned today by U.S. Magistrate Judge Stacie F. Beckerman. Miller and Jones, who was arraigned separately last week, were both ordered detained pending trial. Washington was arraigned in November 2018 and awaits a three-day trial beginning March 3, 2020.
This case was investigated by Homeland Security Investigations and is being prosecuted by the U.S. Attorney's Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
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.
Oregon Department of Corrections Officer and Co-Conspirator Indicted on Drug ChargesRead the Press Release
PORTLAND, Ore.—Richard Steven Alberts, II, 31, an Oregon Department of Corrections Officer and resident of Sherwood, Oregon, made an initial appearance today in federal court before U.S. Magistrate Judge John Jelderks.
The court unsealed a 3-count indictment charging Alberts and co-conspirator Joseph Lucio Jimenez, 27, of Gresham, Oregon, with conspiracy to distribute controlled substances and distribution of heroin. Alberts and Jimenez are alleged to have conspired with one another and others to distribute methamphetamine and heroin into the Coffee Creek Correctional Facility in Wilsonville, Oregon, where Alberts is employed.
The Oregon Department of Corrections previously placed Alberts on administrative leave pending this investigation.
Alberts was released pending trial. A jury trial is scheduled for February 25, 2020 before U.S. District Court Judge Michael H. Simon.
Jimenez was in pre-trial custody on an unrelated felon in possession of a firearm charge when he was indicted in this case. He will remain in custody and make his first appearance on these new charges at a later date.
This case was investigated by the FBI, Oregon State Police, and Oregon Department of Corrections Office of Inspector General, and is being prosecuted by Craig Gabriel and Scott Bradford, Assistant U.S. Attorneys for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
North Carolina Man Residing in Deschutes National Forest Sentenced for Failing to Register as a Sex OffenderRead the Press Release
EUGENE, Ore.—A North Carolina man illegally residing in the Deschutes National Forest was sentenced to federal prison today after months of failing to register as a sex offender.
Russell Joseph Szkolnyj, 51, of Wake County, North Carolina was sentenced to 18 months in federal prison and five years’ supervised release.
According to court documents, in 2006, Szkolnyj was convicted of indecent liberties with a six-year-old child and ordered to register as a sex offender. He was later convicted in 2009 and 2012 for failing to register in North Carolina. By May 2018, Szkolnyj had once again failed to register prompting the Wake County, North Carolina Sheriff’s Office to seek and obtain a warrant for his arrest.
Sometime thereafter, Szkolnyj relocated to Oregon and, in July 2018, was advised by John Day, Oregon police officers of his need to register. Ten days later, Szkonyj, who still had failed to register, was contacted by Bend, Oregon police officers investigating the theft of a paddleboard in a public park. Szkolnyj gave the officers a false name and was ultimately convicted for the theft and sentenced to probation.
On November 2018, Szkolnyj was found to be residing in the Deschutes National Forest. U.S. Forest Service law enforcement officers advised Szkonyj that he could not reside on public land and must immediately vacate the forest. The officers discovered that Szkonyj was still not registered as a sex offender and referred the matter to the U.S. Marshals Service and U.S. Attorney’s Office for prosecution.
The U.S. Marshals Service investigation determined that by January 2019, Szkolnyj was staying in Hood River, Oregon and likely heading toward Portland. The Marshals worked closely with several local law enforcement agencies along the Interstate 84 corridor and in the Portland Metropolitan area to locate and track Szkolnyj. Szkolnyj was arrested by Hillsboro, Oregon police officers on February 23, 2019. At the time of his arrest, Szkolnyj had been in at least five Oregon counties over an 8-month period while failing to register as a sex offender.
On September 5, 2019, Szkolnyj pleaded guilty to one count of failing to register as a sex offender.
This case was investigated by the U.S. Forest Service and the U.S. Marshals Service with assistance from the Hillsboro and Hood River Police Departments. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
State Department Employee and Spouse Indicted for Trafficking in Counterfeit Goods from U.S. EmbassyRead the Press Release
WASHINGTON— A U.S. Department of State employee and his spouse were arrested today for their role in an international conspiracy to traffic in counterfeit goods from the U.S. Embassy in Seoul, Korea.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Billy J. Williams of the District of Oregon and Deputy Assistant Secretary Ricardo Colón of the Department of State Diplomatic Security Service made the announcement.
Gene Leroy Thompson Jr., 53, and Guojiao “Becky” Zhang, 39, were indicted by a grand jury in Eugene, Oregon, and charged with conspiracy and trafficking in counterfeit goods. According to the indictment and other court documents, from September 2017 through December 2019, Thompson Jr. and Zhang allegedly sold counterfeit Vera Bradley handbags from e-commerce accounts to persons throughout the United States.
Thompson Jr. is employed by the U.S. Department of State as an Information Programs Officer at the U.S. Embassy in Seoul, Korea. Thompson Jr. used his State Department computer to create numerous accounts on a variety of e-commerce platforms, all from within a secure space within the Embassy designed to protect classified information. Once Thompson Jr. created these accounts, Zhang took primary responsibility for operating the accounts, communicating with customers, and procuring merchandise to be stored in the District of Oregon. Thompson Jr. and Zhang also directed a co-conspirator in the District of Oregon to ship items to purchasers across the United States.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
The Diplomatic Security Service Office of Special Investigations investigated the case with assistance from the U.S. Postal Inspection Service. Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Amy Potter of the District of Oregon are prosecuting the case.
U.S. v. Thompson et. al. IndictmentState Department Employee and Spouse Indicted for Trafficking in Counterfeit Goods from U.S. EmbassyRead the Press Release
A U.S. Department of State employee and his spouse were arrested today for their role in an international conspiracy to traffic in counterfeit goods from the U.S. Embassy in Seoul, Korea.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Billy J. Williams of the District of Oregon and Deputy Assistant Secretary Ricardo Colón of the Department of State Diplomatic Security Service made the announcement.
Gene Leroy Thompson Jr., 53, and Guojiao “Becky” Zhang, 39, were indicted by a grand jury in Eugene, Oregon, and charged with conspiracy and trafficking in counterfeit goods. According to the indictment and other court documents, from September 2017 through December 2019, Thompson Jr. and Zhang allegedly sold counterfeit Vera Bradley handbags from e-commerce accounts to persons throughout the United States.
Thompson Jr. is employed by the U.S. Department of State as an Information Programs Officer at the U.S. Embassy in Seoul, Korea. Thompson Jr. used his State Department computer to create numerous accounts on a variety of e-commerce platforms, all from within a secure space within the Embassy designed to protect classified information. Once Thompson Jr. created these accounts, Zhang took primary responsibility for operating the accounts, communicating with customers, and procuring merchandise to be stored in the District of Oregon. Thompson Jr. and Zhang also directed a co-conspirator in the District of Oregon to ship items to purchasers across the United States.
An indictment is merely an accusation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Diplomatic Security Service Office of Special Investigations investigated the case with assistance from the U.S. Postal Inspection Service. The Criminal Division’s Office of International Affairs provided assistance. Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Amy Potter of the District of Oregon are prosecuting the case.
Two Canadian Nationals Plead Guilty for Bitcoin FraudRead the Press Release
PORTLAND, Ore.— Karanjit Singh Khatkar, 23, and Jagroop Singh Khatkar, 24, residents of Surrey, British Columbia, Canada, pleaded guilty today for conspiring to commit wire fraud and money laundering in a scheme to steal bitcoin from an Oregon resident.
According to the indictment, beginning in October 2017 and continuing until August 2018, the defendants used a Twitter account with the name @HitBTCAssist to trick victims into thinking they were communicating with a customer service representative from HitBTC, a Hong Kong-based online platform used to exchange virtual currency. HitBTC provides its customers with web-based “wallets” to store virtual currency and make transactions.
Using the fraudulent Twitter account, the defendants responded to the Oregon victim’s questions about withdrawing virtual currency from her HitBTC account. The defendants convinced the victim to send information they could use to log on and take over her email, HitBTC and Kraken accounts. Kraken is a U.S.-based online platform that offers services similar to HitBTC.
The defendants initiated transfers of 23.2 bitcoins from the victim’s HitBTC account to Karanjit Khatkar’s Kraken account. Karanjit Khatkar in turn transferred approximately 11.6 in stolen bitcoins to Jagroop Khatkar’s Kraken account. The stolen bitcoins have an estimated present value of approximately $160,254.
On July 18, 2019, Karanjit Khatkar was arrested upon arrival at the McCarran International Airport in Las Vegas, Nevada and later ordered detained pending trial. Jagroop Khatkar appeared out-of-custody for today’s change of plea hearing.
Conspiring to commit wire fraud and money laundering are punishable by 20 years and 10 years in prison, respectively, a $250,000 fine or twice the pecuniary gains or losses resulting from the offense if over $250,000, and three years’ supervised release. Both defendants will be sentenced on March 17, 2020 before U.S. District Court Judge Michael H. Simon.
As mandated by their plea agreements, the Khatkars delivered a check of $142,349 as a prepayment of restitution to their victim at the change of plea hearing. This prepayment along with the $6,000 in U.S currency and $230 in Canadian currency seized by law enforcement equal the value of the bitcoins stolen from the victim. The Khatkars have agreed to pay restitution in full to their victim, which may exceed the prepayment amount, as ordered by the court at sentencing.
This case was investigated by FBI and is being prosecuted by Quinn P. Harrington and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.
Portland Man Pleads Guilty to Interstate Distribution of Marijuana, Money Laundering, and Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—Portland resident Isaiah Holt, 31, pleaded guilty today to conspiring to distribute and possess with intent to distribute marijuana and cocaine, money laundering, and illegally possessing a firearm as a convicted felon. Holt is a licensed electrician, motivational speaker, and fitness coach.
According to court documents, beginning in July 2016 and continuing until his arrest in April 2018, Holt used his association with a licensed marijuana producer in Portland to divert state-legal marijuana into the black market. Holt sold marijuana in-person to out-of-state customers traveling to Oregon and by mail to remote customers using the U.S. Postal Service.
Holt recruited two individuals to use their bank accounts to receive and launder proceeds of his marijuana sales. Out-of-state customers would send Holt mailing addresses and deposit payments into bank accounts in the names of various third-party associates. Holt would then direct these associates to withdraw the money from their accounts on his behalf. He used the cash to purchase multiple vehicles that he registered in his girlfriend and co-defendant’s name, Marjorie Livington. Holt also directed Livingston, 39, of Portland, to purchase and register firearms for him using her name.
On April 4, 2018, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) obtained and executed a search warrant on Holt and Livingston’s Northeast Portland residence. Agents found 11.5 grams of cocaine and nearly $2,000 in cash on Holt’s person and drug packaging materials, shipping labels, 14 pounds of marijuana, three firearms, and $46,100 in cash in the residence.
After his arrest and federal indictment, Holt continued to distribute cocaine. From April to August 2019, law enforcement conducted three controlled purchases of cocaine from Holt. While on his way to a fourth pre-arranged buy, Holt eluded a marked police car and later fled on foot, discarding approximately two ounces of cocaine along the way. In total, law enforcement purchased or recovered from Holt approximately 158 grams of cocaine during these purchases.
Conspiring to distribute and possess with intent to distribute marijuana and cocaine is punishable by up to 20 years in prison, a $1 million fine, and three years’ supervised release. Money laundering is punishable by up to 20 years in prison, a $500,000 fine or twice the value of property involved, and three years’ supervised release. Illegally possessing a firearm as a convicted felon is punishable by up to 10 years in prison, a $250,000 fine, and three years’ supervised release.
Holt will be sentenced on March 9, 2020 by U.S. District Court Chief Judge Michael W. Mosman.
As part of his plea agreement, Holt has agreed to forfeit one Smith & Wesson .40 caliber pistol, one Ruger AR-556 5.56 caliber rifle, one Taurus 9mm pistol, all seized ammunition, and $46,100 in cash. He has also agreed to pay $32,600 to satisfy a forfeiture money judgement.
Livingston was indicted alongside Holt for conspiring to distribute and possess with intent to distribute marijuana and making false statements during the purchase of a firearm. She is scheduled to plead guilty to the firearms charge on December 16, 2019.
The case was investigated by ATF, U.S. Drug Enforcement Administration, and the Portland Police Bureau. It is being prosecuted by Julia Jarrett and Leah Bolstad, Assistant U.S. Attorneys 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.
Bend Man Sentenced to Federal Prison After Hash Oil ExplosionRead the Press Release
PORTLAND, Ore.—David Carl Paulsen, 33, of Bend, Oregon, was sentenced today to 12 months and one day in federal prison and two years’ supervised release for illegally manufacturing and possessing marijuana during a March 2018 butane honey oil (BHO) explosion in Bend.
According to court documents, on March 18, 2018, Bend police officers responded to an explosion at a residence where David Paulsen lived with his wife, Jennifer Paulsen, 34, and their three-year-old daughter. Witnesses reported that, following the explosion, the Paulsens were running around their house, putting items in their truck and car, and telling neighbors not to call the police. Witnesses also reported that David Paulsen gave his daughter to a neighbor and told the neighbor to tell police that she had been with the neighbor during the explosion. Both Paulsens suffered severe burns.
During a search of the residence, investigators discovered more than 34 pounds of marijuana, multiple butane cans, and a BHO extraction device. BHO is a concentrated form of marijuana extracted using highly flammable or combustible solvents. Investigators believe David Paulsen was operating an illegal and unlicensed open flame BHO lab in his house, which caused the explosion.
On July 18, 2018, the Paulsens were charged by a federal grand jury with manufacturing or possessing with intent to manufacture, distribute, or dispense marijuana and endangering a human life while illegally manufacturing a controlled substance.
On September 18, 2019, David Paulsen pleaded guilty to one count of manufacturing or possessing with the intent to manufacture, distribute, or dispense marijuana. Prior to David Paulsen’s sentencing in federal court, Jennifer Paulsen pleaded guilty and was sentenced for unlawful delivery of marijuana in Deschutes County Circuit Court. The government moved to dismiss Jennifer Paulsen’s federal charges during her husband’s sentencing.
This case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Bend Police Department. It was prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.