District of Oregon
Press releases recorded for this federal judicial district.
Portland Man Sentenced to Seven Years in Federal Prison for Role in Interstate Drug Trafficking ConspiracyRead the Press Release
PORTLAND, Ore. – Gregory Rex Wilson, 52, of Portland, was sentenced today to 84 months in federal prison and five years’ supervised release for distributing heroin and illegally possessing a firearm.
According to court documents, Wilson was part of a drug trafficking organization that transported heroin from El Monte, California to the Portland metropolitan area. The investigation revealed that Wilson was being supplied with heroin by “Chino Antrax,” later identified as co-defendant Pablo Flores. Flores had actively been trafficking heroin to Portland for more than a year. At the time of his arrest on December 12, 2016 in Portland, Wilson had 880 grams of heroin, 100 Xanax pills and a loaded Ruger 9mm pistol in his vehicle. Four additional firearms were later found in a second vehicle owned by Wilson, including one with an obliterated serial number.
On June 12, 2018, Wilson pleaded guilty in this case to one count of possession with intent to distribute heroin and one count of being a felon in possession of firearms. Three of Wilson’s co-defendants, Aaron Ray West, Ricardo Anguiano Cruz, Jr., and Jose Manuel Rodriguez, have also pleaded guilty to related charges. Flores awaits trial.
The case was investigated by the Clackamas County Interagency Task Force (CCITF), FBI, Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration (DEA), and the Portland Police Bureau. It was prosecuted by Matthew J. Semritc, Special Assistant U.S. Attorney for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
California Man Given More than 15 Years in Prison for Trading Cocaine for Machine Gun, Other FirearmsRead the Press Release
MEDFORD, Ore. – Gonzalo Manzo, 33, of Fresno, California, was sentenced today to 188 months in federal prison and three years’ supervised release for conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, in 2017, Manzo coordinated the shipment of a kilogram of cocaine from California to Southern Oregon. Manzo and his co-conspirators sold the cocaine to undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Oregon in exchange for six Colt .38 Super caliber pistols, two Beretta 9mm pistols with silencers, a Glock 9mm machine gun and $21,000 in cash. Manzo intended for the firearms and cash to be transported back to California but agents arrested Manzo and his co-conspirators and the firearms were seized by law enforcement.
Manzo previously pleaded guilty to one count each of conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime on April 27, 2018.
The case was investigated by ATF and prosecuted by Nathan J. Lichvarcik and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Photos 1-3: Firearms received in exchange for cocaine
Photos 4-7: Screenshots from a 2015 YouTube music video depicting Manzo with firearms
Redmond Man Sentenced to Federal Prison for Hash Oil ExplosionRead the Press Release
EUGENE, Ore. – On Wednesday, December 5, 2018, William E. Wild, Sr., 48, of Redmond, Oregon, was sentenced to 120 days in federal prison and three years’ supervised release for endangering human life by manufacturing hash oil, a controlled substance.
According to court documents, on December 12, 2016, law enforcement and first responders responded to an explosion at Wild’s residence in Redmond. The explosion occurred in a detached garage where the defendant had been illegally manufacturing butane hash oil (BHO). The force of the explosion blew out Wild’s garage door. By his own admission, Wild had been smoking a cigarette in close proximity to the lab at the time of the explosion.
Officers on scene reported finding burnt clothing, a pressure cooker, a Pyrex dish, a large bin of marijuana stem bud and seed as well as an amber substance later identified as BHO. Officers also found a grow room adjacent to the garage with more than 20 mature marijuana plants. In total, investigators seized 57 mature marijuana plants; scales; packaging materials and containers; ledgers containing drug amounts, debts and receipts; approximately $20,000 in cash and several pipe bombs in Wild’s home.
Wild and his 18-year-old daughter were present at the time of the explosion, suffered burns and smoke inhalation and were transported by ambulance from the residence. Wild’s daughter was later intubated and flown by air-ambulance to Portland for treatment.
Wild, a first-time offender, previously pleaded guilty to one count of endangering human life on August 16, 2018. A restitution hearing is scheduled for February 7, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in partnership with the Central Oregon Drug Enforcement team (CODE), the Oregon State Police and the Redmond police and fire departments. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Damaged Garage Door Marijuana Plants Pipe BombsFormer Portland Resident Found Guilty of Sexually Exploiting Children While BabysittingRead the Press Release
PORTLAND, Ore. – After deliberating for just 20 minutes, a federal jury returned guilty verdicts against Andrew Franklin Kowalczyk, 44, formerly of Portland, for the repeated sexual abuse and exploitation of three minor female victims.
“Andrew Kowalczyk’s actions have brought unthinkable distress and terror to the lives of his victims and their families. Our two prosecutors, each with many years’ experience handling similar cases, describe Kowalczyk’s conduct as the worst they’ve seen in their careers,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I applaud the unwavering resolve of our trial team, our partner investigators and the victim survivors who persevered against a defendant who attempted every conceivable tactic to delay justice for more than 10 years.”
“I am proud of the people on the FBI's Child Exploitation Task Force, people who work tirelessly to bring justice to victimized children and help put their abusers behind bars. This defendant will never violate our most vulnerable again, and I hope this sentencing sends a strong message to those who would sexually exploit children,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
“Heinous crimes like those committed by the defendant must come to an end,” said Brad Bench, Special Agent in Charge of HSI Seattle. “I’m very proud of the agents and law enforcement partners responsible for removing this dangerous person from our streets. Let this be a warning to others who attempt to harm our children. We will work tirelessly to ensure you are brought to justice.”
According to court documents and information shared during trial, law enforcement first learned of Kowalczyk’s abuse in early 2008. On December 27, 2007, a Des Moines, Washington police officer stopped Kowalczyk for several traffic violations. Kowalcyzk did not own the vehicle he was driving, did not have a driver’s license and gave the officer a false name. After refusing the officer’s request to step out of the vehicle, Kowalczyk fled, leading police on a high-speed chase that was later terminated for public safety reasons.
Kowalczyk was later located at the Northwest Motor Inn in Puyallup, Washington. A records check run on the alias used by Kowalczyk to book his hotel room returned an outstanding arrest warrant for failing to appear in an unlawful use of a weapon case in Washington County, Oregon. Kowalczyk was arrested early the next morning when attempting to leave the hotel in a cab. Officers seized Kowalcyzk’s personal belongings including two pieces of luggage and a backpack.
In January 2008, Des Moines police detectives sought and obtained a state warrant to search computer equipment, a digital camera and digital storage devices found in Kowalczyk’s luggage. The searched returned a tremendous amount of child pornography including a number of images and videos that appeared to be homemade. Numerous videos and images depicted an unidentified male sexually abusing two very young children. Metadata embedded in many of the digital images revealed that they were created using the same camera found in Kowalczyk’s luggage.
Puyallup Police officers later published certain non-pornographic images of the victims and an adult woman found on Kowalczyk’s devices in an attempt to identify the victims. An adult woman, later identified as the victims’ mother, saw the images and contacted Puyallup Police. She confirmed she knew Kowalczyk and that he had regular access to her daughters in Portland. After reviewing some of the images seized, the victims’ mother was able to identify locations where the images were taken.
The victims’ mother told investigators she met Kowalczyk, a friend of her deceased brother, in 2003. In 2005, after the victims’ mother and her children wound up in a domestic violence shelter, Kowalcyzk offered to pay for them to stay in a motel. Between April and the beginning of June 2005, Kowalczyk arranged for the victims’ mother and her children to stay with or adjacent to him in three different Portland motels. Kowalcyzk and the victims’ mother later rented separate apartments.
The victims’ mother frequently left her children alone in Kowalczyk’s care while she searched for work or housing. The victims’ mother believed Kowalczyk treated the victims well, buying them clothing, diapers, shoes, and even a birthday cake for their second birthday and was unaware of the abuse that transpired. The cake—with the victims’ names on it—appeared in some of the non-pornographic images found on Kowalczyk’s devices.
Investigators were later able to track down the Portland motel rooms Kowalczyk rented for the family. Kowalczyk took photos of himself sexually abusing two of the minor victims at each location. He took sexually explicit photos of the third minor victim at his apartment in Southeast Portland. In March 2008, investigators conducted a federal search warrant of a storage locker Kowalczyk rented in Woodlawn, Washington. They found a sofa, a mirror and several shirts depicted in the pornographic images found on Kowalczyk’s devices.
A federal grand jury charged Kowalczyk with a single count of sexual exploitation of children on February 2, 2008. A superseding indictment with eight additional counts of sexual exploitation of children was returned on March 21, 2012. Kowalczyk sought the replacement of counsel more than a dozen times and filed extensive motions to suppress evidence, causing a decade-long delay in bringing the case to trial.
He faces a maximum sentence of 30 years in prison with a 15-year mandatory minimum on each of the nine counts. Kowalczyk will be sentenced in March 2019 before U.S. District Court Judge Michael W. Mosman.
The case was investigated by the FBI, Homeland Security Investigations (HSI), the Portland Police Bureau, and the Puyallup and Des Moines, Washington Police Departments. It was prosecuted by Scott M. Kerin and Gary Y. Sussman, 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. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. 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 www.fbi.gov/tips.
Portland Nurse Charged with Drug TaffickingRead the Press Release
PORTLAND, Ore. – On November 29, 2018, Rene Elene Griffin Nunn, 59, of Vancouver, Washington, made an initial appearance in federal court before U.S. Magistrate Judge Jolie A. Russo.
A one-count indictment alleges Nunn conspired to possess with intent to distribute controlled substances. The indictment also alleges that, between September 2017 and January 2018, Nunn communicated with others about the price and quantity of methamphetamine and heroin, and in February 2018, drove from Vancouver to Portland with approximately 93 grams of heroin in her purse. According to yesterday’s hearing, she is a registered nurse employed at Adventist Medical Center in Portland.
Nunn was released pending trial. A three-day jury trial is scheduled for January 29, 2019 before U.S. District Court Judge Marco A. Hernandez. If convicted, Nunn faces a maximum sentence of 20 years in prison, a $1 million fine and a mandatory minimum three-year term of supervised release.
This case was investigated by U.S. Drug Enforcement Administration (DEA).
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Springfield Man Pleads Guilty to Federal Drug Charge After Shipping Marijuana in Styrofoam Rocks Out of StateRead the Press Release
EUGENE, Ore.—Curran Millican Manzer, 37, of Springfield, Oregon, pleaded guilty today to a single count of possession with intent to the distribute marijuana after repeatedly shipping marijuana out of state.
“Illegal export continues to plague Oregon’s under regulated and insufficiently enforced state laws governing state-licensed marijuana. The extreme overproduction of marijuana in Oregon has prompted many individuals to seek out-of-state distribution opportunities to recoup the costs of both illegal and legal in-state production. Disrupting these interstate distribution channels remains a priority of our office,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
According to court documents, in September 2017, the Springfield Police Department began an investigation after being contacted by United Parcel Service (UPS) regarding several packages Manzer shipped to Oklahoma City, Oklahoma that had a strong marijuana odor. UPS later confirmed that, in October 2017, Manzer sent several additional packages next day air to Oklahoma City also believed to contain marijuana. During the same time period, several packages containing numerous stacks of cash bound in $1,000 increments were sent to Manzer’s home address in Springfield.
In November 2017, Springfield Police obtained a search warrant for all packages sent or received by Manzer via UPS. Shortly thereafter, an officer was conducting surveillance at a UPS store in Springfield when he saw Manzer arrive in a pickup truck with “Curran’s Taxidermy” written on the side. The officer observed Manzer bringing six packages into the store, which he dropped off for next day shipment to Oklahoma. A Springfield Police canine unit responded to the scene and the canine alerted to the packages.
The Springfield Police officer executed a search warrant on the packages and located six large Styrofoam rocks containing 143 pounds of marijuana.
Manzer faces a maximum sentence of 20 years in prison, a $1 million fine and a three-year term of supervised release. He will be sentenced on February 26, 2019 before U.S. District Court Judge Ann Aiken.
As part of the plea agreement, Manzer agrees to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing.
This case was investigated by the Springfield Police Department and the U.S. Drug Enforcement Administration (DEA). It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Portland Man Pleads Guilty to Federal Bribery Charge for Attempting to Bribe ICE Deportation OfficerRead the Press Release
PORTLAND, Ore. – Antonio Oswaldo Burgos, 48, of Portland, pleaded guilty today to one count of bribery of a public official after attempting to bribe a U.S. Immigration and Customs Enforcement (ICE) deportation officer.
“Attempting to bribe a federal law enforcement officer is a serious crime and will be met with equally-serious consequences,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I commend the ICE officer involved in this case for responding to Burgos’ criminal proposition with the utmost level of professionalism and resolve.”
“We rely upon our officers to perform their duties with integrity,” said Brad Bench, Special Agent in Charge for HSI Seattle. “Because of the deportation officer’s actions, Burgos is being brought to justice. This case should send a strong message that those who attempt to coerce a public official will be punished.”
According to court documents, on May 24, 2018, Burgos followed an ICE deportation officer in his vehicle from the ICE office in Portland until the officer stopped in a parking lot in Vancouver, Washington. The defendant offered the officer money to deport his wife who he had met in El Salvador and was in the process of divorcing. The officer declined Burgos’ offer and reported the event to the ICE Office of Professional Responsibility (OPR).
On May 31, 2018, the officer made a recorded call to Burgos with the assistance of an OPR investigation team. Burgos offered to the pay the officer $3,000 to remove his wife from the U.S. On June 5, 2018, the officer and OPR team made a second recorded call on which Burgos again offered to pay the officer for his wife’s removal. Burgos and the officer proceeded to discuss logistics for an in-person meeting.
On June 6, 2018, Burgos met the officer in a pre-determined location and offered to pay $4,000 for the removal of his wife and his wife’s minor child from a previous relationship. Burgos was arrested on June 29, 2018.
Burgos faces a maximum sentence of 15 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on May 6, 2019 before U.S. District Court Judge Michael H. Simon.
This case was jointly investigated by ICE OPR and Homeland Security Investigations. It is being prosecuted by Rachel K. Sowray and Claire M. Fay, Assistant U.S. Attorneys for the District of Oregon.
Cottage Grove Man Pleads Guilty to Federal Drug Charges After Hash Oil ExplosionRead the Press Release
EUGENE, Ore. – Eric L. Scully, 35, of Cottage Grove, Oregon, pleaded guilty today to endangering human life and illegally possessing and manufacturing marijuana after a November 2017 butane honey oil (BHO) explosion in Cottage Grove.
“Manufacturing hash oil is extremely dangerous and poses a grave risk of injury or death to producers and unknowing, innocent victims. Federal authorities will continue targeting BHO producers and the illicit distribution networks providing them with butane gas. Together with our local partners, we will put an end to this severe public safety threat,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“This investigation highlights the significant dangers that these extraction operations pose,” stated Keith Weis, DEA Special Agent in Charge of the Pacific Northwest Region. He further added, “This explosive event in Cottage Grove’s community was caused by highly reckless criminal activities surrounding butane honey oil (BHO) production, this time we were very lucky that lives were not lost.”
According to court documents, on November 16, 2017, the Cottage Grove Police and Fire Departments responded to an explosion at a storage facility in Cottage Grove. Officers found Scully at a local hospital where he was being treated for serious burn injuries. Investigators later learned that, at the time of the explosion, at least three other individuals were inside the facility.
Two days later, Cottage Grove Police and U.S. Drug Enforcement Administration (DEA) agents executed a search warrant at the storage facility. Inside, they found a large, sophisticated, and unlicensed BHO extraction lab. BHO is a concentrated form of marijuana extracted using highly flammable or combustible solvents. During the search, agents found more than 1,900 pounds of marijuana bud and shake, 728 marijuana plants and over 80 pounds of marijuana extract. Each plant was either mature or had leaves and readily observable root formation.
The investigation determined that while manufacturing BHO, one of Scully’s machines, located in a room containing combustibles, caught fire. The machine and combustibles exploded, injuring Scully and placing the other individuals present at substantial risk of harm.
Scully faces up to 40 years in prison with a five-year mandatory minimum sentence, a $5 million fine and a mandatory four-year term of supervised release. The U.S. Attorney’s Office and defense counsel are jointly recommending a non-binding, 87-month sentence for Scully who will be sentenced on February 21, 2019 before U.S. District Court Judge Michael J. McShane.
As part of the plea agreement, Scully agrees to pay restitution to each victim as determined by the court, including payments for property damage, physical injuries caused by the explosion and the reimbursement of insurance companies. Scully also agreed to forfeit $25,980 in criminal proceeds and a pickup truck and trailer used to facilitate his crimes.
This case was investigated by DEA and the Cottage Grove Police Department. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Tualatin, Oregon Man Pleads Guilty to Money LaunderingRead the Press Release
PORTLAND, Ore.—Ronald Eugene Stover, 64, of Tualatin, Oregon, pleaded guilty today to one count of engaging in monetary transactions in property criminally derived from wire fraud and a scheme to defraud investors.
According to court documents, beginning in 2010, Stover began soliciting short-term loan investments to fund various Xtreme Iron capital projects. Stover claimed to have a long track records of success in real estate development, business and banking and relied heavily on investor introductions made by other professional intermediaries to establish his credibility. Xtreme Iron owned a heavily-leveraged fleet of Caterpillar and John Deere heavy equipment in Frisco, Texas and maintained an office in Wilsonville, Oregon.
At Stover’s urging, investors sent funds to Tri-Core Funding Group, an entity wholly owned and controlled by Stover. Stover falsely claimed the company had a sound business model, strong growth opportunities and manageable debt exposure. In addition to Stover’s many false claims about the business’s health and viability, he advanced many falsehoods about the nature of the investment opportunity including, but not limited to: investor funds would be used exclusively for business purposes, Stover himself would provide additional capital sourcing from his own funds and investors would receive short-term repayment of their loan notes plus interest.
As alleged in the count of conviction, Stover emailed a victim in May 2012, soliciting funds to purchase heavy equipment from Caterpillar. In response to the solicitation, Stover executed a 30-day loan note promising repayment plus interest. The victim wired $175,000 to Tri-Core Funding Group the next day. Unbeknownst to the victim, Stover never intended to use the money as promised. Immediately after receiving the funds, Stover used the funds to make over a year’s worth of mortgage payments on his residence in Tualatin, which was on the brink of foreclosure. Stover never repaid his victim.
Stover faces a maximum sentence of 10 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on February 25, 2019 before U.S. District Court Judge Ann Aiken. As part of the plea agreement, Stover has agreed to pay more than $3.2 million in restitution and nearly $169,000 to satisfy a forfeiture money judgement.
The IRS and FBI investigated this case. It is being prosecuted by Donna Brecker Maddux and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.
Otis, Oregon Man Pleads Guilty to Distributing Child Pornography Using DropboxRead the Press Release
PORTLAND, Ore. – William Borges, 20, of Otis, Oregon, pleaded guilty today to one count of distributing child pornography.
According to court documents, investigators identified Borges in September 2016 as part of an ongoing investigation by the FBI’s Sacramento Field Office into the use of Dropbox, a cloud-based file sharing application, to distribute media depicting the sexual exploitation of children. A federal search warrant issued to Dropbox produced the email address Borges used to create a Dropbox account identified by investigators as containing child pornography. Investigators later matched three video uploads to Dropbox depicting the sexual abuse of young children to the IP address of Borges’ home in Otis. During a search of Borges’ home, he admitted to possessing child pornography and trading images and videos using Kik Messenger and Dropbox.
Borges faces a maximum sentence of 20 years in prison, a $250,000 fine and a lifetime term of supervised release. He will be sentenced on February 11, 2019 before U.S. District Court Judge Ann Aiken.
The FBI Sacramento Child Exploitation Task Force (CETF) and FBI Salem Resident Agency investigated this case. It is being prosecuted by Amy Potter, Assistant U.S. Attorney for the District of Oregon.
The FBI’s CETF conducts sexual exploitation investigations—many of them undercover—in coordination with other federal, state, and local law enforcement agencies. The CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child exploitation.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Opiod Prosecutions Lead to Seizure of Three Million User Doses of Heroin, Oxycodone and Fentanyl Across OregonRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that since the beginning of May 2018, federal law enforcement authorities and their task force partners have seized 158 pounds of heroin, 600 grams of oxycodone, and half a pound of fentanyl.
Combined, the seizures remove nearly three million individual user doses from statewide distribution networks. The enforcement effort has already netted 19 arrests, 17 guilty pleas and nine criminal sentencings of active drug traffickers with numerous cases still pending.
“The opioid addiction crisis continues to impact millions of Americans every year, many of whom have lost loved ones or continue to watch as their friends or family members struggle with addiction,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Bringing this crisis to an end requires all Americans—law enforcement and public health officials as well as ordinary citizens—to take action. Visit www.linesforlife.org or another addiction support organization to learn how you can make a difference in your community.”
“The numbers are heart wrenching,” said Keith Weis, DEA Special Agent in Charge for the Pacific Northwest. “In a time of unprecedented health risks facing our society, we must respond aggressively head-on in a multi-faceted, community-based strategy that includes law enforcement, prevention and treatment specialists all working hand in hand to help our most vulnerable members facing life or death struggles against addiction. Every person lost in this opioid crisis is one too many.”
“Opioid abuse in Oregon involves a dangerous cocktail of street drugs (such as heroin and fentanyl) and prescription meds (such as oxycodone, hydrocodone, and morphine). Whether a person starts down the path to addiction on the street or in a doctor's office, the result is equally devastating to the victim's family and community. Because the impact is so significant, the FBI and our partners are prioritizing our work to identify the dealers and doctors who are driving this epidemic,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
According to the Centers for Disease Control and Prevention (CDC), drug overdoses killed a record 72,000 Americans in 2017. In 2016, 66% of the more than 66,000 overdose deaths involved an opioid. Drug overdose is now the leading cause of death in the U.S. In 2017, the CDC estimated the national economic burden of prescription opioid overdose, abuse, and dependence at $78.5 billion annually.
In Oregon, the total number of deaths related to drug use increased 11 percent from 2013 to 2017, with 546 drug related deaths in 2017 alone. The use of prescription opioids in Oregon continues to grow dramatically. Nearly half of the prescriptions filled at Oregon retail pharmacies in 2017 were for opioids. As a result, Oregon has one of the highest rates of prescription opioid misuse in the country, with an average of three deaths every week from prescription opioid overdose.
On November 2, 2018, DEA released its 2018 National Drug Threat Assessment. The report paints a bleak picture of the state of drug abuse in the U.S. According to the report, controlled prescription drugs are responsible for the largest number of overdose deaths of any illicit drug class and have been since 2011. Between 2013 and 2016, heroin deaths nearly doubled, exacerbated by the increased adulteration of heroin with fentanyl and other synthetic opioids. Of all opioids, the abuse of illicit fentanyl and other synthetic opioids has led to the greatest number of deaths.
The U.S. Attorney’s Office for the District of Oregon works in partnership with federal, state, local and tribal law enforcement agencies to investigate and prosecute drug trafficking cases involving opioids. Recent prosecutions include:
U.S. v. Brett Allen McNeal
Brett Allen McNeal was the final Oregon defendant sentenced for distributing oxycodone as part of a large, interstate opioid-trafficking organization. He was sentenced to three months in federal prison on October 2, 2018.
The organization was structured around Daniel Cham, a doctor practicing in La Puente, California, who would illegally provide prescriptions for oxycodone, hydrocodone, and other powerful medications in exchange money orders and cash. The narcotics were moved from Southern California through a network of redistributors for eventual sale in Oregon.
Cham would write prescriptions to individuals both known and unknown to him and to others he knew to be prolific drug dealers and addicts. He regularly sold prescriptions to John Bryden, an Oregon resident, who in turn would sell them to other co-conspirators, including Kevin Grimes, Marcela Cooper, and Austin Alderete, for distribution across Oregon.
McNeal purchased oxycodone from Alderete and sold it for a profit to end users. One of those end users, Jessica Morretti, died of an overdose on April 13, 2012. According to text messages on Moretti’s cell phone from the evening she overdosed, McNeal had provided her with five 30mg oxycodone pills the same day.
Cham was sentenced on March 14, 2018 in the Central District of California to more than 13 years in federal prison.
This case was investigated by the FBI.
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U.S. v. Christian Jensel Chaidez
Christian Jensel Chaidez was sentenced to 120 months in federal prison on September 4, 2018 for trafficking heroin and other narcotics into Oregon for distribution in the Salem, Oregon metropolitan area. Chaidez was a local affiliate of a Los Angeles, California-based drug trafficking network.
Using intercepted wire calls, investigators learned that a co-defendant would provide Chaidez with quantities of heroin that Chaidez would, in turn, sell in and around Salem. In November and December 2016 investigators used an undercover informant to purchase one half pound of methamphetamine from Chaidez on two different occasions.
By June 2017, when federal prosecutors unsealed a 12-person indictment, the network, which began primarily as a methamphetamine and cocaine distribution organization, was rapidly expanding into the heroin market. The arrests of Chaidez and others have significantly disrupted the distribution of methamphetamine, cocaine, and other narcotics in the Salem area.
This case was investigated by DEA.
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U.S. v. Christopher James Fleet
On September 4, 2018, Christopher James Fleet, 23, of Portland, was sentenced to 84 months in federal prison and five years of supervised release for possessing distribution quantities of methamphetamine and two firearms.
On August 23, 2017, deputies from the Multnomah County Sheriff’s Office (MCSO) Special Investigation Unit were conducting surveillance at a known drug and gang house in Portland. They observed a vehicle parked in front of the house they believed was connected with Fleet, a drug dealer with an outstanding arrest warrant. Upon leaving the house and attempting to drive away, deputies blocked Fleet using unmarked vehicles and approached him wearing marked law enforcement raid vests. After initially refusing to comply with the deputy’s commands to raise his hands and failing to find an escape route, Fleet surrendered.
During the arrest, deputies found a Kel Tec 9mm firearm and distribution quantities of heroin and methamphetamine on Fleet’s person. They also found a locked backpack in Fleet’s vehicle. The backpack was later found to contain .40 caliber Sig Sauer pistol, drug records, and a digital scale.
This case was investigated by the MCSO Special Investigation Unit.
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The Department of Justice has been resolute in its fight to end the opioid addiction crisis. All 94 U.S. Attorney’s Offices have an opioid action plan with strategies specific to their districts. The department has assigned more than 300 federal prosecutors to U.S. Attorney’s Offices and hired more than 400 DEA task force officers.
In July 2018, the department announced the formation of Operation Synthetic Opioid Surge (S.O.S) that seeks to reduce the supply of deadly synthetic opioids in high impact areas. In August 2018, the department and DEA proposed decreases in manufacturing quotas for the six most frequently misused opioids for 2019. In October 2018, the department announced grant awards totaling more than $320 million dollars to help those most impacted by the opioid crisis including crime victims, children, families and first responders.
Deputy Attorney General Names U.S. Attorney Williams Chair of National Marijuana Working GroupRead the Press Release
WASHINGTON—Deputy Attorney General Rod J. Rosenstein today named Billy J. Williams, U.S. Attorney for the District of Oregon, chair of the Attorney General’s Marijuana Working Group. The working group is part of the Attorney General Advisory Committee’s (AGAC) Controlled Substances Subcommittee.
“I am honored to be named chair of the Marijuana Working Group and look forward to working with Attorney General Sessions, Deputy Attorney General Rosenstein and my fellow U.S. Attorneys on this important policy area,” said U.S. Attorney Williams. “From our statewide summit in February to the release of our district enforcement strategy this summer, we’ve learned a lot from stakeholders representing many diverse interests. There is one thing everyone agrees on: a broad need for stronger regulation. This working group provides a valuable forum for sharing ideas and learning from the experiences of others in an effort to develop innovative, multi-district enforcement strategies to address the many impacts of a nascent industry.”
The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. The AGAC represents the nation’s U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys.
Corvallis Attorney Pleads Guilty to Tax Evasion and Money LaunderingRead the Press Release
PORTLAND, Ore. – Pamela S. Hediger, 55, of Corvallis, Oregon, pleaded guilty today to one count each of attempting to evade or defeat taxes and engaging in monetary transactions with property derived from specified unlawful activity.
“Pamela Hediger used her position of trust to steal large sums of money from her business associates, clients and investors. Her lavish lifestyle and spending reflected her complete disregard for the interests of those she stole from,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Not only did Hediger steal from those she knew, she stole from the U.S. Treasury and her fellow citizens by shamelessly evading her tax obligations.”
“No matter what the source of income, including embezzlement, all income is taxable,” said IRS-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Troy Burrus. “Pamela Hediger’s failure to file income tax returns and evading her tax liability is not a victimless crime since all Americans pay when others swindle the government.”
According to court documents, between 2010 and 2017, Hediger was an attorney, president, and managing shareholder of a law firm in Corvallis. Hediger focused on personal injury cases and independently managed her own client relationships. During her association with the firm, Hediger systematically embezzled funds from the firm’s client trust and business operating accounts, both of which she had signing authority over. The embezzled funds came from insurance proceeds payable to Hediger’s clients.
During 2011, 2012, and 2014, Hediger also knowingly devised a material scheme to defraud two investors in shopping center projects in Seaside, Oregon and Astoria, Oregon. Hediger falsely promised high rates of return and short terms in exchange for their investments. Rather than invest the money as promised, Hediger converted the investment funds to her own use in order to support her lavish lifestyle.
Hediger used the stolen funds for a variety of purposes, including: to pay her mortgage, to fund construction and landscaping projects at her home, to repay individuals who had loaned her money to purchase her share of the law firm and to fund lavish vacations, a timeshare, plastic surgery, automobile expenses and a Hawaiian band for a party. Stolen funds were even used to pay credit card accounts Hediger had opened in the names of relatives and an unsuspecting associate.
To conceal her schemes, Hediger falsified the law firm’s accounting records by mischaracterizing the identity of payees and the purpose of payments, submitted false documentation to support the expenditures and lied to firm employees when questioned about expenditures.
Hediger failed to file income tax returns on nearly $2.2 million between 2011 and 2017, evading more than $471,000 in taxes due.
Hediger faces a maximum sentence of 15 years in prison, a $500,000 fine and three years of supervised release. She will be sentenced on January 10, 2019 before U.S. District Court Judge Anna J. Brown.
This case was investigated by IRS-CI. It is being prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
U.S. Attorney Williams Announces November 2018 Election Day Program and Appoints Distrcit Election OfficerRead the Press Release
PORTLAND, Ore.—United States Attorney Billy J. Williams announced today that Assistant United States Attorney (AUSA) Adrian L. Brown will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018 election.
AUSA Brown has been appointed to serve as the District Election Officer (DEO) for the District of Oregon, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without being stolen because of fraud,” said U.S. Attorney Williams. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process. Ensuring free and fair elections depends in large part on the cooperation of the American electorate,” continued Williams. “It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my office, the FBI, or the Justice Department’s Civil Rights Division.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at ballot drop boxes by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Brown will be on duty in the District of Oregon while the polls are open. She can be reached by the public at the following telephone number: 503-727-1003.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 503-224-4181.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Talent, Oregon Man Pleads Guilty to Distribute Cocaine and Trading Cocaine for FirearmsRead the Press Release
MEDFORD, Ore. – On Monday, October 29, 2018, Jonathan Alan Ochoa, 31, of Talent, Oregon, pleaded guilty to one count each of conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, between July and August 2017, Ochoa agreed and conspired with co-defendants Gonzalo Manzo, Jr. and Rodolfo Quevedo to send more than 500 grams of cocaine from California to Oregon to sell and distribute to others. During this time, Ochoa and Manzo negotiated a sale of cocaine with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in exchange for multiple firearms.
On August 17, 2017, at Manzo’s request, Quevedo transported approximately 1000 grams of cocaine from California and delivered it to Ochoa in the Medford area. The firearms and cash were intended to be transported back to California but agents arrested Ochoa and his co-conspirators and the firearms were seized by law enforcement.
Ochoa faces a maximum sentence of life in prison, a $5 million fine and four years of supervised release. He will be sentenced on February 21, 2019 before U.S. District Court Judge Ann Aiken. Manzo pleaded guilty to the same charges on August 27, 2018. Quevedo also faces criminal charges; his case is pending in federal court.
This case was investigated by ATF and is being prosecuted by Nathan J. Lichvarcik and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Justice Department Funds New District of Oregon Indian Country ProsecutorRead the Press Release
WASHINGTON—In recognition of National Domestic Violence Awareness Month, Deputy Attorney General Rod Rosenstein met with Acting Director of the Office on Violence Against Women (OVW) Katherine Sullivan and other senior Justice officials today to discuss the Violence Against Women Act’s (VAWA) essential focus on criminal justice responses to domestic violence. Deputy Attorney General Rosenstein also announced new OVW funding for the department’s Tribal Special Assistant U.S. Attorney (SAUSA) program.
“There is no place in our society for domestic violence, and holding perpetrators accountable and providing services to victims is a critical part of the Department’s response,” said Deputy Attorney General Rosenstein. “During this National Domestic Violence Awareness Month, I encourage law enforcement, prosecutors, judges, and other criminal justice professionals to speak out about domestic violence and redouble efforts to bring perpetrators to justice. I am especially pleased to announce new funding to support four new Tribal Special Assistant U.S. Attorneys, whose collaboration across the tribal and federal jurisdictional landscape is a model for effective prosecution of violence against women.”
“We are pleased to join Deputy Attorney General Rosenstein in announcing the appointment of a new Tribal Special Assistant U.S. Attorney here in Oregon,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Pursuing justice on behalf of tribal communities is a priority for our office and has been for a long time. We are deeply committed to continuing to work with our tribal law enforcement partners to reduce violent crime in tribal communities, especially crimes against tribal women. We fully expect this position will show positive and meaningful results for the Confederated Tribes of the Umatilla Indian Reservation.”
OVW’s Tribal Special Assistant United States Attorneys (Tribal SAUSAs) Program is another Department initiative supporting innovative prosecutorial collaborations. These prosecutors bring cases in both tribal and federal courts, and help ensure that tribal and federal authorities have a seamless response in prosecuting cases under their jurisdiction. In OVW’s pilot project, Tribal SAUSAs reported a wide range of successes, including prosecution of cases that otherwise may not have been brought.
Today, OVW is announcing new Tribal SAUSA Program awards of $437,500 each to the following four tribes:
• Salt River Pima-Maricopa Indian Community (Arizona);
• Confederated Tribes of the Umatilla Indian Reservation (Oregon);
• Rosebud Sioux Tribe (South Dakota); and
• Confederated Tribes of the Colville Reservation (Washington).
Commemorated in the United States since 1987, National Domestic Violence Awareness Month educates the public, commemorates and honors victims and survivors, and connects service providers across the country. President Trump has continued the tradition of issuing a presidential proclamation to recognize October as National Domestic Violence Awareness Month.
Strengthening criminal justice is the core component of VAWA, and Acting Director Sullivan pointed to the Improving the Criminal Justice Response to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program (ICJR) as the “backbone of VAWA.” ICJR helps communities investigate and prosecute these crimes and keep violent criminals off the street. Since 1997, OVW has made 1,655 ICJR grant awards totaling over $847,000,000. In fiscal year 2018, OVW made 54 ICJR awards totaling $32,610,116.
This funding has supported justice responses including dedicated police and prosecution units, specialized courts, and offender monitoring in 538 communities. For example, Fairfax County in Virginia uses ICJR funding to support a specialized prosecutor for domestic violence and stalking cases and to monitor the enforcement of civil protective orders.
ICJR also funds unique collaborative approaches, such as Family Justice Centers – “one stop shops” housing police, prosecution, and victim services in one place – and multidisciplinary teams that decrease domestic violence homicides. Since 2012 OVW has awarded over $24 million in ICJR funding to reduce domestic violence homicide, including pilot sites, nationwide training, and research. This includes six awards totaling $3,299,977 for fiscal year 2018.
Many victims also face substance abuse issues, and may struggle to access the justice system and get the protection they need. OVW is today announcing an award of $450,000 to the Alliance for HOPE International to train Family Justice Centers to address this complex challenge. The Alliance for HOPE International will partner with the National Center on Domestic Violence, Trauma, and Mental Health.
VAWA was first authorized in 1994 and focused on strengthening the criminal justice response to domestic violence. VAWA was reauthorized in 2000, 2005, and 2013, and each reauthorization included expansions such as addressing elder abuse, combatting stalking, and serving victims of sex trafficking in Indian Country. More information about VAWA is available at www.justice.gov/ovw/legislation.
22 Indicted in Operation Targeting Drug Trafficking Organization Tied to Cartel in Michoacan, MexicoRead the Press Release
PORTLAND, Ore.—Today, the United States Attorney’s Office for the District of Oregon unsealed a nine count indictment charging drug trafficking offenses against 22 members of a criminal organization responsible for trafficking large quantities of methamphetamine, heroin and cocaine in Oregon and Washington State.
Early this morning, FBI, Homeland Security Investigations (HSI – U.S. Department of Homeland Security), the Westside Interagency Narcotics (WIN) Task Force and the Clackamas County Interagency Task Force (CCITF) conducted a multi-agency law enforcement operation leading to the arrest of 17 defendants.
According to the unsealed indictment, a drug cartel based in Michoacan, Mexico distributed methamphetamine, heroin and cocaine to Victor Alvarez Farfan, 43, of Oregon City, Oregon. Farfan and his associates manufactured crystal methamphetamine from liquid form and distributed it to other members of the conspiracy for sale in Hillsboro, Gresham, Portland and Hood River, Oregon, and Tacoma, Washington. Farfan and his associates also distributed heroin and cocaine in the Portland-metro area. John Armas, 41, of Hillsboro, distributed methamphetamine he received from Farfan via a local distribution cell in the Hillsboro area.
“While our country suffers from the effects of pervasive substance abuse, Mexican drug trafficking cartels continue bringing deadly narcotics into our communities. Stopping these transnational organizations requires steadfast and responsive law enforcement partnerships at all levels of government,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Today, thanks to the vigilance and sustained cooperation of law enforcement agencies across Oregon, this cartel’s efforts to maintain their foothold in our communities has been dealt a lasting blow. We will continue pursuing criminal drug traffickers and ensure their actions are met with severe consequences.”
“Meth, heroin and cocaine combine to form a deadly cocktail that fuels a cycle of violence and addiction in our community,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “The FBI and our partners are targeting the power players in these drug trafficking organizations as we work to reduce the flow of guns, drugs and dirty money into Oregon.”
“I commend the collaborative efforts by all of those involved in this important operation,” said Brad Bench, Special Agent in Charge of HSI Seattle. “HSI is committed to dismantling these types of illicit drug trafficking organizations and bringing those involved to justice.”
“We are unrelenting in our work to stop illegal drug traffickers,” said Pat Garrett, Washington County Sheriff. “The teamwork displayed—local, federal and across state lines—makes me thankful for the strong partnerships we have in public safety.”
“This is another clear example of public safety working together to make a difference at every level—city, county, state and federal agencies,” said Craig Roberts, Clackamas County Sheriff. “I can attest that countless front line officers have been working around the clock to hold major drug traffickers accountable for their criminal activities. Our united message is: “don’t bring this to Oregon or we in law enforcement will soon be knocking on your door.”
The nine-count indictment unsealed today alleges members of the organization conspired to possess with the intent to distribute and distribute methamphetamine, heroin, and cocaine; use a communication facility, including cellular telephones, in the commission of a controlled substances felony; and maintain drug-involved premises to manufacture and distribute controlled substances. Other charges include the interstate distribution of drug proceeds and money laundering.
Named defendants include:
- Victor Alvarez Farfan is charged with conspiracy, two counts of possession with intent to distribute methamphetamine, and conspiracy to commit the laundering of monetary instruments.
- John Armas is charged with conspiracy, possession with intent to distribute methamphetamine, and conspiracy to commit the laundering of monetary instruments.
- Silverio Rubio Valdovinos, 35, of Gresham, is charged with conspiracy.
- Eduardo Alvarez Farfan, 24, of Gresham, is charged with conspiracy, possession with intent to distribute cocaine, and conspiracy to commit the laundering of monetary instruments.
- Roberto Carlos Farfan Alvarez, 23, of Oregon City, is charged with conspiracy and possession with intent to distribute methamphetamine.
- Genaro Fernandez Gonzalez, 26, of Salem, Oregon, is charged with conspiracy.
- Randy Eugene Roberts, 51, of Hillsboro, is charged with conspiracy.
- Kathleen Joan Roberts, 53, of Hillsboro, is charged with conspiracy.
- Socorro Elena Gutierrez, 38, of Hillsboro, is charged with conspiracy.
- Taylor Michael McKemie, 55, of Hillsboro, is charged with conspiracy and conspiracy to commit the laundering of monetary instruments.
- Keith Frederick Teufel, 59, of Hillsboro, is charged with conspiracy and possession with intent to distribute methamphetamine.
- Randall Deal Mauel, 47, of Chehalis, Washington, is charged with conspiracy.
- Rene Diaz Gutierrez, 36, of Vancouver, Washington, is charged with conspiracy and possession with intent to distribute methamphetamine.
- Catherine Arlene Cunningham, 51, of Hood River, is charged with conspiracy.
- Kirstie Alexandria Mirelez, 27, of Portland, is charged with conspiracy.
- Jessica Marie Stinnett, 39, of Astoria, Oregon, is charged with conspiracy and possession with intent to distribute methamphetamine.
- Athena Marie Johnson, 48, of Hillsboro, is charged with conspiracy.
15 of the 22 defendants were arraigned in federal court today. The identities of the five remaining defendants remain under seal. All defendants are expected to make their first appearances within one week.
This case is the result of a joint investigation by FBI, HSI, WIN, and CCITF. WIN includes representatives from the Washington County Sheriff's Office, the Beaverton Police Department, the Hillsboro Police Department, the Tigard Police Department, the Oregon National Guard Counterdrug Program, and the FBI. CCITF includes representatives from the Clackamas County Sheriff's Office, Clackamas County Community Corrections, Oregon City Police Department, Canby Police Department, the FBI and DHS/Homeland Security Investigations (HSI). Other agencies assisting with today's takedown include: Oregon State Police, the Multnomah County Sheriff's Office, the Marion County Sheriff’s Office, the Clatsop County Sheriff's Office, the Hood River County Sheriff's Office, the Gresham Police Department, the Salem Police Department, the Port of Portland Police Department, the Portland Police Bureau and the U.S. Drug Enforcement Administration.
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.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Seattle Man Given Federal Prison Sentence for Fraud Involving Former Oregon Department of Energy EmployeeRead the Press Release
PORTLAND, Ore. – Martin J. Shain, 61, of Seattle, Washington, was sentenced today to 46 months in federal prison and three years’ supervised release for engaging in a fraud scheme with a former Oregon Department of Energy Employee. Shain was also ordered to pay more than $520,000 in restitution.
“At the expense of taxpayers, small businesses, and the State of Oregon, Martin Shain and Joseph Colello orchestrated a corrupt scheme to profit off the sale of government tax credits. Corruption schemes involving public employees foster a distrust in government that can take years to restore,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Mr. Shain undermined the process of fair and open competition when he paid kickbacks in exchange for ODOE tax credit sales,” said IRS-Criminal Investigation Special Agent in Charge Darrell Waldon. “IRS-Criminal Investigation is committed to investigating individuals who engage in corruption and tax fraud.”
“Treating a government program as a personal ATM risks the integrity of all public servants who have responsibility for protecting Oregon's resources. The fight against public corruption is a high priority for the FBI, and we look to the public to help us identify those government officials who are taking advantage of their powers and positions," said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
According to court documents, between June 2012 and March 2015, Shain and Joseph Colello, a former employee of the Oregon Department of Energy’s (ODOE) Business Energy Tax Credit (BETC) program, maintained a secret business relationship whereby the two would personally profit from the sale and purchase of Oregon BETCs.
Shain and Colello devised a plan whereby Colello would give Shain the names of BETC sellers and interested buyers—information he had access to as an ODOE employee. Colello would then contact the sellers and buyers to negotiate credit transfers, but made it appear as though the Shain had brokered the deals. Shain created a company in the name of his relative in order to receive commission payments from the sellers of the tax credits and to conceal their earned income from the IRS. Shain charged sellers a 1-2% fee, undercutting brokers who typically charged a 10% fee for facilitating similar transfers. Colello would receive a portion of this fee as a kickback.
Between 2012 and 2015, Shain deposited over $1.3 million in income from the commissions charged to sellers of BETC credits. He would transfer a portion of these funds into a personal account from which he would purchase and issue biweekly cashier’s checks payable to Colello. Over the course of the conspiracy, Shain purchased and issued approximately 58 cashier’s checks to Colello or Colello’s girlfriend. In total, Colello received more than $300,000 in bribe payments for his role in the scheme. Shain failed to report more than $1.34 million in income received brokering tax credit sales on four income tax returns between 2012 and 2015.
Colello pleaded guilty to one count of conspiracy to engage in monetary transactions in property derived from specific unlawful activity, one count of conspiracy to defraud the United States, and one count of filing a false income tax return on March 15, 2018. On April 3, 2018, he was sentenced to 60 months in prison and was ordered to pay more than $81,000 in restitution.
Shain previously pleaded guilty to one count each of conspiracy to defraud the U.S. and tax evasion on June 20, 2018. He will self-surrender to the U.S. Marshals on October 25, 2018.
The case was investigated by IRS Criminal Investigation and the FBI and prosecuted by Claire M. Fay and Scott E. Bradford, Assistant U.S. Attorneys for the District of Oregon.
Retired Lawyer Indicted for Tax Evasion and Making a False StatementRead the Press Release
PORTLAND, Ore. – On October 16, 2018, a federal grand jury in Portland charged retired attorney Bruce L. Lamon, of Hillsboro, Oregon, with evading $744,000 in personal income taxes.
Lamon is charged in a two-count indictment alleging he evaded payment of his taxes for calendar years 2008 through 2013 and failed to disclose rental income in an application to proceed In Forma Pauperis in a civil case he filed in federal court in 2016.
Between 2006 and 2012, Lamon worked as a commercial litigator at a law firm in Honolulu, Hawaii. Lamon retired in 2012 and moved to Hillsboro. Between November 2012 and December 2015, in the District of Oregon, Lamon is alleged to have committed numerous affirmative acts to evade his tax obligations. These acts include but are not limited to titling vehicles in his former spouse’s name and purchasing rental properties with cash using an LLC registered in Hawaii to conceal these assets from the IRS.
This case is being investigated by IRS Criminal Investigation (IRS-CI) and prosecuted by Seth D. Uram, 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.
Two Prineville Men Charged with Conspiracy to Transfer and Unlawful Possession of a Machine GunRead the Press Release
EUGENE, Ore. – A three-count indictment was unsealed in federal court today charging John Widener Jordan, 38, and Michael James Friesen, 32, both of Prineville, Oregon, with conspiracy to transfer and unlawful possession of a machine gun.
According to the indictment, between May and June 2018, Friesen agreed to broker the sale of a Guide Lamp, Model M3A1, .45 ACP caliber machine gun for Jordan. Between May 30 and June 5, Friesen discussed the sale price of the firearm with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) posing as a potential purchaser. Friesen confirmed for the agent that he had seen the firearm function as a machine gun.
On June 6, Friesen met the undercover agent in a motel room in Prineville. Shortly thereafter, Jordan brought the firearm to the motel room and completed the transaction in exchange for $3,000 in cash. Jordan in turn paid Friesen for arranging the sale.
This case was investigated by the ATF and is being prosecuted by Nathan J. Lichvarcik, 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 case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Pendleton Man Found Guilty of Abusive Sexual Contact on the Umatilla Indian ReservationRead the Press Release
PORTLAND, Ore. – On Wednesday, October 17, 2018, a federal jury in Portland found Shane Britton, 43, of Pendleton, Oregon, guilty of abusive sexual contact.
According to court documents and evidence presented at trial, in June 2016, Britton was staying at a residence shared by the victim and her mother on the Umatilla Indian Reservation. The victim and her mother are both enrolled members of the Confederated Tribes of the Umatilla Indian Reservation. Britton is not a tribal member.
During his stay, Britton subjected the victim to a series of unwanted and progressively more invasive physical encounters. In a recorded interview, Britton initially denied the allegation of abusive sexual contact, but later admitted he inappropriately touched the victim. Britton eventually told law enforcement officers that “in no way shape or form did [the victim] do anything wrong or provoke” his abusive conduct.
Britton faces a maximum sentence of two years in prison, a $250,000 fine and five years’ supervised release. He will be sentenced on Wednesday, January 23, 2019, before U.S. District Judge Michael H. Simon.
The FBI investigated this case in partnership with the Umatilla Tribal Police Department. It was prosecuted by Jennifer Martin and Natalie Wight, Assistant U.S. Attorneys for the District of Oregon.
Harrisburg Man Sentenced to Five Years in Federal Prison for Dealing Heroin and Illegally Possessing a FirearmRead the Press Release
EUGENE, Ore. – Shawn Sherman Wilson, Jr., 27, of Harrisburg, Oregon, was sentenced today to 60 months in federal prison and five years’ supervised release for dealing heroin and illegally possessing a firearm.
According to court documents, law enforcement began investigating Wilson in July 2017 after receiving a tip from a confidential source that he was trafficking heroin in and around Eugene. An undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) contacted Wilson and arranged to purchase an ounce of heroin. They agreed to meet on July 24, 2017 in front of Taylor’s Bar & Grill, a popular night spot in Eugene near the University of Oregon.
At the meeting location, the ATF agent entered Wilson’s car, sitting in the front passenger seat. Wilson had a Smith & Wesson 9mm semi-automatic pistol sitting between his legs with the pistol’s handle positioned for easy access. The agent said “I see you got the heat.” Wilson replied, “yeah, while I’m running around town.” Wilson grabbed the firearm and showed it to the agent, telling the agent the firearm belonged to his girlfriend and he was interested in purchasing another.
The ATF agent subsequently completed the heroin purchase, giving Wilson $1,200 in cash. Wilson was later arrested in Douglas County on August 6, 2017. When arrested, Wilson possessed a Smith & Wesson 9mm pistol matching the description of the firearm observed by the undercover agent during the controlled buy.
Wilson previously pleaded guilty to one count each of possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime on May 30, 2018.
This case was investigated by ATF and prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Clark County Man Sentenced to 37 Months in Prison for Fraud Scheme Involving False Clean Energy CompanyRead the Press Release
PORTLAND, Ore. – Isaac Benjamin Voss, 41, of Clark County, Washington, was sentenced today to 37 months in prison and three years’ supervised release for defrauding domestic and foreign investors who believed they were investing in a viable clean energy company.
According to court documents, in 2007, Voss made a deal with a Canadian scientist and entrepreneur to raise funds to support the development of a technology that would derive electricity and petroleum-equivalent fuels from any carbon bearing material. Over a four-year period beginning in 2011, Voss used his company, XFuels, as a vehicle for soliciting investments from individuals abroad and in Oregon, California, and Washington state.
Voss defrauded investors using elaborate marketing materials, including flyers, brochures and a website, containing false information about his company, the technology and the investment opportunity. He claimed that XFuels owned a commercial refinery in Canada and that another was being constructed in Washington state. The plants were said to be using the technology to produce "clean fuel, clean chemicals, [and] clean power from garbage, biomass, and plastic."
To reduce the perceived risk of the venture, Voss told investors that more than 90 percent of the project’s funding would come from other institutional and private lenders and that he had commissioned an independent, third-party feasibility study that guaranteed the project’s commercial viability. In reality, XFuels had not constructed any facilities and the only capital raised was from other individual investors in the U.S. and abroad. Moreover, the feasibility study relied solely on information provided by Voss himself and did not employ any commercially accepted methods to validate the technology.
On numerous occasions, Voss hosted foreign investment seminars during which he told investors that supporting XFuels, with a minimum $500,000 investment, would qualify them for American Employment-Based Fifth Category "EB-5" visas. Voss also falsely claimed he would hold foreign investment funds in escrow until the U.S. government had approved investors’ visa applications. The XFuels project did not qualify for the EB-5 program and all investors’ visa applications were denied, as a result.
Voss previously pleaded guilty to one count of wire fraud on March 8, 2018.
The U.S. Postal Inspection Service, IRS and the Department of Homeland Security investigated this case. It is being prosecuted by Michelle H. Kerin and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.
Troutdale Doctor Sentenced for Purchasing and Administering Foreign-Sourced Botox and JuvadermRead the Press Release
PORTLAND, Ore. – Brenda Roberts, 54, of Troutdale, Oregon, was sentenced today to six months’ probation and 40 hours of community service for illegally purchasing foreign-sourced Botox and Juvaderm on the internet and administering both to patients in her home.
“Purchasing foreign-sourced and unapproved drugs and devices on the internet poses a grave danger to the health and safety patients. Dr. Roberts violated her professional duty to ‘do no harm’ and instead subjected her patients to an incredible risk of injury,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“U.S. consumers rely on FDA oversight to ensure that the drugs and medical devices they use are safe and effective. Rogue health care professionals who obtain foreign unapproved medical products, and dispense and administer those products to their patients, put the health of those patients at significant risk,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to pursue and bring to justice those who choose to put the public’s health at such risk.”
According to court documents, beginning in 2008, Roberts provided medical services from her home in Troutdale as a supplement to her full-time position with an outside medical practice. Roberts would purchase Botox and Juvaderm from websites including BuckaDayPharmacy.com, AllDayChemist.com and FindlandiaPharmacy.com that were manufactured for distribution in foreign countries, but not approved for use in the U.S. Roberts would administer Botox and Juvaderm to clients from her home office.
The Drug Enforcement Administration (DEA) investigated Roberts for dispensing controlled substances over the internet. During their investigation, the DEA learned of Roberts administering Botox to patients in her home and referred the matter to the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) for further investigation. Roberts resolved these claims via a monetary civil settlement with the U.S. Attorney’s Office Civil Division in May 2018.
Roberts previously pleaded guilty to one count of receipt in interstate commerce of adulterated or misbranded drugs or devices and delivery for pay in violation of 21 U.S.C. § 331(c) on June 19, 2018.
This case was investigated by FDA-OCI and DEA and was prosecuted by Donna B. Maddux, Assistant U.S. Attorney for the District of Oregon.
U.S. Attorney Williams Announces Progress in Making Community Safe Through Project Safe NeighborhoodRead the Press Release
PORTLAND, Ore.—One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the department’s violent crime reduction strategy.
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.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“Keeping our communities safe is the most sacred duty of law enforcement officials at all levels of government. It remains a key focus of the U.S. Attorney’s Office and the entire federal law enforcement community,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The revitalized PSN program focuses federal resources in support of our state, local and tribal partners’ ongoing effort to reduce violent crime in Oregon. Over the past year, we’ve seen many of the district’s most violent criminals brought to justice as a result of this program.”
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
The U.S. Attorney’s Office for the District of Oregon works in partnership with federal, state, local and tribal law enforcement agencies to investigate and prosecute the district’s most violent offenders under the PSN program. Recent prosecutions include:
U.S. v. Dencklau et al.
On June 28, 2018, a federal grand jury in Portland returned a four-count indictment charging three members and associates of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) for racketeering, kidnapping and murder.
Mark Leroy Dencklau, 58, of Woodburn, Oregon; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 37, of Portland were charged with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death and conspiracy to commit kidnapping, resulting in death. Between June 30 and July 1, 2015, the defendants are alleged to have kidnapped, tortured, and murdered Robert Huggins, a resident of southeast Portland.
Huggins was a former treasurer of a local GJOMC chapter. The indictment alleges Dencklau, Fisher and Pribbernow engaged in the violent actions leading to Huggins’ death for the purpose of maintaining and increasing their positions in the GJOMC criminal enterprise.
A 10-day jury trial is scheduled for December 11, 2018.
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U.S. v. Brockner
On August 14, 2018, Jesse Lee Brockner, 32, of Portland, was sentenced to 120 months in prison and three years’ supervised release for armed bank robbery and possessing a firearm in furtherance of a crime of violence.
In August 2017, three men burglarized and stole a vehicle from a barn in Yamhill County, Oregon. Two of the suspects fled in a moving truck and a third in the stolen vehicle. After Yamhill County Sheriff deputies located, arrested and interviewed the two suspects who fled in the moving truck, they identified Brockner as the third suspect. During a search of the moving truck, deputies found a backpack containing approximately $4,000, drug paraphernalia, and Brockner’s driver’s license.
Later the same morning, Brockner robbed a U.S. Bank branch in Beaverton, Oregon wearing a welding mask and holding a firearm. During the robbery, Brockner made numerous threats of physical violence and pointed a handgun at the teller. A witness observed Brockner walk through a parking lot adjacent to the bank and enter a vehicle matching the description of the stolen vehicle.
Approximately two hours later, an FBI Task Force Officer with the Portland Police Bureau (PPB) observed a vehicle matching the stolen vehicle’s description in Southeast Portland. After confirming Brockner’s identity, multiple marked PPB patrol units responded to assist the Task Force Officer. A high risk traffic stop was attempted and led to a vehicle pursuit. The pursuit ended in a crash and an officer involved shooting in Northeast Portland. Brockner was arrested and transported to a local hospital to receive medical attention.
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U.S. v. Manzo
On August 27, 2018, Gonzalo Manzo, Jr., 33, of Fresno, California, pleaded guilty to one count each of conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
In 2017, Manzo coordinated the shipment of a kilogram of cocaine from California to Southern Oregon. Manzo and his co-conspirators sold the cocaine to undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Oregon in exchange for firearms and $21,000 in cash. Manzo intended for the firearms and cash to be transported back to California but agents arrested Manzo and his co-conspirators and the firearms were seized by law enforcement.
Manzo will be sentenced on December 11, 2018.
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U.S. v. Fleet
On September 4, 2018, Christopher James Fleet, 23, of Portland, was sentenced to 84 months in federal prison and five years of supervised release for possessing distribution quantities of methamphetamine and two firearms.
On August 23, 2017, deputies from the Multnomah County Sheriff’s Office Special Investigation Unit were conducting surveillance at a known drug and gang house in Portland. They observed a vehicle parked in front of the house they believed was connected with Fleet, a drug dealer with an outstanding arrest warrant. Upon leaving the house and attempting to drive away, deputies blocked Fleet using unmarked vehicles and approached him wearing marked law enforcement raid vests. After initially refusing to comply with the deputy’s commands to raise his hands and failing to find an escape route, Fleet surrendered.
During the arrest, deputies found a Kel Tec 9mm firearm and distribution quantities of heroin and methamphetamine on Fleet’s person. They also found a locked backpack in Fleet’s vehicle. The backpack was later found to contain .40 caliber Sig Sauer pistol, drug records, and a digital scale.
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These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
Justice Department Awards Nearly $320 Million to Combat Opioid Addiction CrisisRead the Press Release
WASHINGTON – To mark the beginning of National Substance Abuse Prevention Month, U.S. Attorney Billy J. Williams joined the Department of Justice in announcing grant awards of nearly $320 million to combat the opioid crisis in America. The awards will directly help those most impacted by the deadliest drug crisis in American history, including crime victims, children, families and first responders.
"President Trump has made ending the opioid crisis a priority for this administration, and under his leadership, the Department of Justice has taken historic action," said Attorney General Jeff Sessions. "Today we are announcing our next steps: investing $320 million into all three parts of the President’s comprehensive plan to end the epidemic: prevention, treatment, and enforcement. We are attacking this crisis from every angle—and we will not let up until we bring it to an end."
"The opioid addiction crisis cannot be solved by any one agency or jurisdiction. It requires a coordinated effort of governments, law enforcement agencies, community organizations, and individual citizens, working together to solve problems, big and small," said U.S. Attorney Williams. "These awards are an important step in the right direction and will expand the reach of innovative programs across the state."
Approximately $6.3 million of the $320 million awarded by the Department’s Office of Justice Programs (OJP) will support local governments and a professional consortium in Oregon. A complete breakdown of the grant funding can be found here.
Summary of Oregon Awards
Comprehensive Opioid Abuse Site-based Program ($162 million awarded)
Helps jurisdictions plan and implement programs aimed at reducing opioid abuse and mitigating its impact on crime victims
Marion County – $1,399,562
Clackamas County – $900,000
Helping Children and Youth Impacted by Opioids ($46.6 million awarded)
Helps children and youth impacted by the opioid crisis
Clackamas County – $1,000,999
Drug Courts ($81.2 million awarded)
Assists adult, juvenile and family drug courts and veterans treatment courts
City of Beaverton – $500,000
Washington County – $945,454
Lane County – $550,000
Northwest Professional Consortium Inc. – $856,308
Paul Coverdell Forensic Science Improvement Grant Program ($17 million awarded)
Addresses the dramatic increase in deaths and backlogs of seized drugs resulting from the crisis
Washington County – $156,000
Two important anti-drug events occur in October: Red Ribbon Week and National Prescription Drug Takeback Day. Red Ribbon Week, October 23-31, encourages students, parents, schools and communities to promote drug-free lifestyles. The Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on October 27 gives Americans and easy and anonymous way to dispose of unwanted prescription drugs, helping to prevent overdose deaths and drug addictions before they start.
In 2017, more than 72,000 Americans lost their lives to drug overdoses, an increase from the 64,000 overdose deaths in 2016, according to the Centers for Disease Control and Prevention. The majority of these deaths can be attributed to opioids, including fentanyl. Drug overdose is now the leading cause of injury or death in the United States. In Oregon, the total number of deaths related to drug use increased 11 percent between from 2013 to 2017, with 546 known drug related deaths last year.
OJP provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.
Final Oregon Defendant Sentenced in Interstate Opioid Trafficking SchemeRead the Press Release
EUGENE, Ore. – Brett Allen McNeal, 37, of Grants Pass, Oregon, was sentenced today to three months in federal prison for distributing oxycodone as part of an interstate opioid-trafficking organization.
The organization was structured around Daniel Cham, a doctor practicing in La Puente, California, who would illegally provide prescriptions for oxycodone, hydrocodone, and other powerful medications in exchange money orders and cash. The narcotics were moved from Southern California through a network of redistributors for eventual sale in Oregon.
“At a time when the opioid crisis continues to worsen in Oregon, some medical providers aim to profit off addiction. The drug trafficking network that grew from Dr. Cham’s criminal activity contributed to the overdose deaths of two people, including a young woman here in Oregon” said Billy J. Williams, U.S. Attorney for the District of Oregon. “This conduct is reprehensible. Criminal organizations who traffic opioids will be dismantled, person-by-person, until every last participant has been prosecuted.”
“Corrupt doctors and dealers who cash in on the opioid epidemic are fueling the cycle of dependence and addiction in our community. In doing so, they put lives at risk and make it that much more difficult for the most vulnerable to overcome the pull of these narcotics,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “This is a health care problem, a crime problem and a societal problem - and one that will take many partners working together to address fully.”
Cham would write prescriptions to individuals both known and unknown to him and to others he knew to be prolific drug dealers and addicts. He regularly sold prescriptions to John Bryden, an Oregon resident, who in turn would sell them to other co-conspirators, including Kevin Grimes, Marcela Cooper, and Austin Alderete, for distribution across Oregon.
McNeal purchased oxycodone from Alderete and sold it for a profit to end users. One of those end users, Jessica Morretti, died of an overdose on April 13, 2012. According to text messages on Moretti’s cell phone from the evening she overdosed, McNeal had provided her with five 30mg oxycodone pills the same day. An analysis of post-mortem toxicology reports indicated that the lethal amount of oxycodone in Moretti’s system could have come from multiple sources, including McNeal.
McNeal admitted to law enforcement that he had purchased 30mg oxycodone pills from Alderete on multiple occasions for $15-20 apiece. Alderete would at a times front McNeal up to 100 oxycodone pills.
McNeal is the sixth defendant overall and last prosecuted in Oregon to be sentenced for their role in the trafficking organization. Other sentenced defendants include:
- Daniel Cham, 49, of Covina, California – 160 months in prison and three years’ supervised release (sentenced in the Central District of California)
- Kevin Grimes, 46, of Calimesa, California – 37 months in prison and three years’ supervised release
- Austin Alderete, 32, no known residence – 21 months in prison and three years’ supervised release
- Maricela Ann Cooper, 27, of Central Point, Oregon – time served in prison and three years’ supervised release
- Laurie Ryan, 59, of Jackson County, Oregon – 18 months’ probation (sentenced in Jackson County Circuit Court)
Tracy Townsend, a high-level co-conspirator of Cham’s from California, remains at large. John Bryden died before being prosecuted.
McNeal previously pleaded guilty to a criminal information charging him with distribution of oxycodone in violation of 21 U.S.C. § 841(a)(1). Upon completion of his prison sentence, he will be on supervised release for three years.
This case was investigated by the FBI and prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Drug abuse affects communities across the nation, and opioid abuse continues to be particularly devastating. The CDC reports that from 1999 to 2016, more than 630,000 people have died from a drug overdoses. In 2016, 66% of drug overdose deaths involved an opioid. Drug overdose is now the leading cause of injury or death in the United States. In Oregon, the total number of deaths related to drug use increased 11 percent between from 2013 to 2017, with 546 known drug related deaths last year.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm PST daily.
Milton-Freewater Man Sentenced to 60 Months in Federal Prison for Dealing MethamphetamineRead the Press Release
PORTLAND, Ore. – Carlos Cisneros-Razo, 45, of Milton-Freewater, Oregon, was sentenced today to 60 months in federal prison for dealing methamphetamine. Upon completion of his prison sentence, Cisneros-Razo will be on supervised release for four years.
According to court documents, in May 2017, the Blue Mountain Enforcement Narcotics Team (BENT) purchased distributable quantities of methamphetamine from Cisneros-Razo. On May 31, 2017, BENT executed a search warrant at Cisneros-Razo’s residence and recovered 10.9 grams of methamphetamine in his home and a loaded revolver on his person. Cisneros-Razo admitted to selling methamphetamine to as many as seven people. Cisneros-Razo was illegally present in the District of Oregon.
Cisneros-Razo previously pleaded guilty to one count of possession with intent to distribute methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B) on June 20, 2018.
This case was investigated by BENT and the FBI and prosecuted by the U.S. Attorney’s Office for the District of Oregon.
"Froggy Robber" Indicted in Federal Court on Five ChargesRead the Press Release
PORTLAND, Ore. – Diego Sanchez-Lopez, 23, of Clark County, Washington, known locally as the “Froggy Robber,” made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman.
The court previously unsealed a five-count indictment alleging Sanchez-Lopez robbed five Portland-area banks between November 2017 and April 2018. Sanchez-Lopez faces federal bank robbery charges in violation of 18 U.S.C. §§ 2113(a) and (d) for the following events:
- 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 April 30, 2018, 33,357 was stolen from the Wells Fargo Bank located at 7200 NE Butler Street in Hillsboro, Oregon.
In each of the above listed events, Sanchez-Lopez is accused of using a knife to facilitate the robbery. In total, he is alleged to have stolen more than $87,000 from banks insured by the Federal Deposit Insurance Corporation (FDIC).
Sanchez-Lopez was detained pending trial. A four-day jury trial is scheduled for November 27, 2018 before U.S. District Court Judge Michael W. Mosman.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Two Gresham Men Sentenced to Federal Prison for Defrauding Investors of $2.5 MillionRead the Press Release
PORTLAND, Ore. – Theodore B. Holbrook, 37, and George J. Arauz, Jr., 45, both of Gresham, Oregon, were sentenced today to 36 months in federal prison for defrauding 50 investors of nearly $2.5 million using a sham energy technology start-up company. Holbrook and Arauz were also ordered to pay more than $2.3 million each in restitution and will be on supervised release for three years after completing their prison sentences.
According to court documents, between 2008 and 2015, Holbrook and Arauz used their companies, Prisidio Capital, LLC, Altius Capital Management, LLC and Altius Capital Opportunities Fund, L.P., to solicit investments to develop energy technologies via a start-up company. In return, they gave investors Prisidio stock certificates and promised to convert these shares into the start-up company’s shares when it went public. In addition to funding the start-up company, Holbrook and Arauz told investors that their money would be invested in other emerging technology companies or the stock market directly.
Instead of using investor money as promised, Holbrook and Arauz diverted it for their own personal use, funding living expenses, travel, cars, credit card bills, medical bills, lulling payments and other expenses to keep the scheme going. The pair did not disclose this diversion of funds to their investors and, instead, actively took steps to conceal it. Holbrook and Arauz sent investors promotional and investment materials to falsely represent the nature and status of their investment.
Holbrook and Arauz both previously pleaded guilty to one count each of wire fraud and money laundering on March 7, 2018 and October 31, 2017, respectively.
This case was investigated by IRS Criminal Investigation. It was prosecuted by Scott E. Bradford, Assistant U.S. Attorney for the District of Oregon.
Justice Department Will Award up to $246 Million in Grants to Improve Public Safety in American Indian and Alaska Native CommunitiesRead the Press Release
WASHINGTON – U.S. Attorney Billy J. Williams joined the Department of Justice in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities, including: the Columbia River Inter-Tribal Fish Commission; Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians; Confederated Tribes of the Umatilla Indian Reservation; Confederated Tribes of the Warm Springs Reservation; Coquille Indian Tribe; Cowcreek Band of Umpqua Tribe of Indians; and Klamath Tribes.
“Pursuing justice on behalf of tribal communities and supporting the development and growth of tribal law enforcement agencies, courts, and victim services has been a key focus of the U.S. Attorney’s Office for many years,” said U.S. Attorney Williams. “These awards mark the Justice Department’s continued commitment to ensuring all tribes have the resources necessary to keep their communities safe and effectively enforce the administration of justice on tribal land.”
Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.
In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities. The awards are intended to help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Recipients will be announced in the near future.
“With these awards, we are doubling the amount of grant funding devoted to public safety programs and serving victims of crime in Native American communities,” said Principal Deputy Associate Attorney General Jesse Panuccio, who made the announcement during his remarks at the 26th Annual Four Corners Indian Country Conference in Santa Fe, New Mexico. “There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities. This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues. We are committed to reducing violent crime and improving public safety.”
The Four Corners Conference is facilitated annually by U.S. Attorneys from Arizona, Colorado, New Mexico and Utah to provide a forum for discussion of justice-related topics with a large number of populous and diverse tribal nations located in the region.
CTAS awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs. CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.
This announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of the announced CTAS awards is available at: go.usa.gov/xP2uc.
Portland Marijuana Business Owner Receives Federal Prison Sentence for Tax CrimesRead the Press Release
PORTLAND, Ore. – Matthew Price, 32, of Portland, was sentenced today to seven months in federal prison and ordered to pay more than $262,000 for willfully failing to file federal income tax returns in four consecutive years.
“Matthew Price attempted to live a double life—advising OLCC officials on how to regulate state-legal marijuana sales, while privately evading his personal and business tax obligations,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Marijuana businesses and business owners are subject to the same federal tax laws as every other business and will be scrutinized for criminal wrongdoing. Tax cheaters will not be tolerated in any industry.”
According to court documents, in 2010, Price, then 25 years old, came to Portland with the financial backing of a business partner in Colorado to start a state-legal marijuana business in anticipation of Oregon’s full retail legalization. Price had previously been working in a marijuana store in Colorado owned by his business partner. In December 2010, Price began operating a marijuana farmers market in Portland called Cannabliss. In mid-2013, Price and his business partner converted the business to a medical marijuana dispensary. In 2014, the pair opened two additional Cannabliss dispensaries, a second in Portland and one in Eugene, Oregon.
Price failed to file personal income tax returns in four consecutive years between 2011 and 2014, despite retaining the services of three different certified public accountants. Price’s taxable income steadily grew from $42,000 in 2011 to $590,000 in 2014. In 2015, Price was a member of the Oregon Liquor Control Commission’s (OLCC) Recreational Marijuana Technical Advisory Retail Subcommittee. In this capacity, Price, with other retailers, advised the OLCC in its rulemaking process for Oregon Measure 91, the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act.
Price previously pleaded guilty to four counts of willfully failing to file personal income tax returns in violation of 26 U.S.C. § 7203 on May 31, 2018. Upon completion of his prison sentence, Price will be on supervised release for three years with six months of home detention.
The IRS Criminal Investigations investigated this case. It was prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Oregon Military Department Employee Charged with Wire Fraud and Making False StatementsRead the Press Release
PORTLAND, Ore. – Dominic Caputo, 46, of Clackamas County, Oregon, was indicted today on allegations that, as a civilian program manager for the Oregon National Guard Oregon Sustainment Maintenance Site (OSMS), he submitted false reimbursement requests to the U.S. Army Communications-Electronics Command (CECOM) and misrepresented the operational status of equipment used to maintain a war-ready posture.
The court unsealed a five-count indictment alleging Caputo falsely certified that the refurbishment of equipment was complete or in-process. Caputo’s certifications prompted CECOM to remit payment for more than 1,300 pieces of equipment at a cost of more than $6 million to OSMS with the expectation the equipment was ready to be shipped to other military installations and put back into service, when it was not.
Caputo faces four counts of wire fraud, and one count of false statements in a document.
Caputo made his initial appearance in federal court today before U.S Magistrate Judge Beckerman and was released pending trial. A 7-day jury trial is scheduled for November 20, 2018 before U.S. District Court Judge Anna J. Brown.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Salem Man Sentenced for Assaulting TSA Security Officers at Portland International AirportRead the Press Release
PORTLAND, Ore. – Anthony Wayne Tavoloni, Jr., 45, of Salem, Oregon, was sentenced today to three years’ probation including three months of home detention for assaulting two Transportation Security Administration (TSA) Transportation Security Officers (TSO) at Portland International Airport (PDX).
According to court documents, on August 20, 2017, Tavoloni entered PDX, passed through the customer service and baggage claim areas, and entered the TSA checkpoint and screening zone leading to Concourses D and E. Upon entering the TSA checkpoint, a TSO asked Tavoloni for his boarding pass and identification. He replied, “No.” The TSO asked for Tavoloni’s boarding pass a second time to which he replied, “You really want to do this?” as he stepped toward the TSO. Tavoloni then walked behind the TSO’s table prompting the TSO to jump from her chair, back away from him, and yell, “Stop, Stop, Stop!” Tavoloni grabbed the TSO by her forearms and attempted to wrestle her to the ground.
Alerted, a number of passengers rushed to assist the TSO. Two passengers restrained Tavoloni, while others attempted to separate the TSO from his grip. With multiple TSOs now standing between Tavoloni and the victim, Tavoloni exclaimed “We’re about to have a bad day, do you really want to do this?” to which another TSO replied “No one needs to have a bad day.” Tavoloni then lunged at this TSO, striking him in the face with his hand. Tavoloni was promptly wrestled to the ground and held until Port of Portland Police arrived.
Tavoloni previously pleaded guilty to two counts of assaulting certain officers or employees in violation of 18 U.S.C. § 111(a)(1) on May 21, 2018.
This case was investigated by TSA and the FBI and prosecuted by John Brassell, Assistant U.S. Attorney for the District of Oregon.
Clackamas Man Accused of Possessing and Transporting Child PornographyRead the Press Release
PORTLAND, Ore. – Nicholas James Stacy, 24, of Clackamas, Oregon, made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman. He was ordered detained pending trial.
The court unsealed a criminal complaint alleging Stacy possessed in excess of 9,000 videos and 20,000 images depicting child pornography on his iPhone and uploaded at least 94 files containing child pornography to his Gmail account. Stacy’s online activities were first identified by Google and the National Center for Missing and Exploited Children (NCMEC).
Stacy was arrested by the Clackamas County Sheriff’s Office on September 11, 2018 and the investigation is being conducted jointly with the U.S. Department of Homeland Security Homeland Security Investigations (HSI).
HSI and the Clackamas County Sheriff’s Office offer this advice to concerned community members:
Parents who have a child who may have come in contact with Stacy should let the child know that Stacy has been arrested for inappropriate behavior. Parents should tell the child that if Stacy did or said anything inappropriate to the child to let the parents know. If a child discloses an incident that did happen to him or her or that the child observed an inappropriate incident happen to someone else, the parent should not ask the child detailed questions about the incident. Instead, please contact the Clackamas County Sheriff’s Office Tip Line at (503) 723-4949 or call HSI at (360) 693-7712.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
2013 image of Nicholas Stacy March 2018 Image of Nicholas Stacy Current Image of Nicholas StacyFormer Nike Salesman Sentenced to 13 Months in Prison for Selling Discounted Merchandise to Own CompaniesRead the Press Release
PORTLAND, Ore. – David Reichert, 51, of St. Louis, Missouri, was sentenced today to 13 months in federal prison for using his position as a Nike salesman to procure heavily-discounted Nike-brand merchandise for resale by two companies he co-owned with a business partner.
According to court documents, as a Nike Inc. salesman and wholesale account executive, Reichert sold licensed apparel—Nike-brand clothes and accessories emblazoned with team names and logos—to retailers throughout the Midwest. Reichert was authorized to give discounts to his customers on the listed wholesale prices of various merchandise. Such discounts rarely totaled more than 20% for even the largest and most important customers.
In 2008, Reichert and a business partner bought a sportswear retailer in the St. Louis area called Fan-a-Mania, Inc. and incorporated a second called JJL Sports Inc. Fan-a-Mania was a longtime Nike customer whose wholesale account was managed by Reichert. Reichert managed the wholesale accounts of both companies without disclosing his ownership interests to his superiors at Nike. By 2012, Reichert was giving extraordinary and unauthorized discounts averaging more than 57% to both companies—and thus to himself.
Reichert’s discounts for his own companies were nearly three times the discounts extended to any of the 25 other wholesale accounts he managed for Nike. In total, Reichert’s embezzlement of licensed Nike-brand merchandise cost the company more than $769,000. In imposing sentence, Senior U.S. District Judge Robert E. Jones emphasized the greed underlying Reichert’s conduct and ordered him to pay full restitution to Nike.
Reichert previously pleaded guilty to two counts of wire fraud on April 25, 2018.
Nike Inc. extensively investigated these crimes before reporting them to the FBI. The FBI then independently investigated the matter. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Two Men Given Federal Prison Sentences for Trafficking Drugs into OregonRead the Press Release
PORTLAND, Ore. – In separate criminal cases, two men have been sentenced to federal prison for trafficking illegal narcotics into Oregon for distribution in the Portland and Salem, Oregon metropolitan areas.
Marcial Aguirre, 55, was sentenced today to 135 months in federal prison followed by five years of supervised release for possession with intent to distribute methamphetamine. Aguirre previously pleaded guilty on March 19, 2018.
Christian Jensel Chaidez, 33, of Salem, was sentenced on September 4, 2018 to 120 months in federal prison followed by five years of supervised release for possession with intent to distribute methamphetamine. Chaidez previously pleaded guilty on May 31, 2018.
U.S. v. Marcial Aguirre
According to court documents, Aguirre led a drug trafficking organization responsible for shipping distribution quantities of methamphetamine and cocaine from California for sale in Oregon and Washington state. Aguirre employed three drug runners or “mules” that would transport drugs between states in hidden vehicle compartments. He directed the runners where to pick up the loaded vehicles and where to deliver them.
At times, Aguirre would drive ahead or follow the loads into Oregon and meet the runners at local convenience stores in Salem. He would exchange his vehicle with the runner’s vehicle and transfer the loads to various co-conspirators for delivery. Using intercepted wire calls, investigators began to piece together the organizational structure of Aguirre’s network, identifying his co-conspirators and runners.
On September 24, 2016, on a return trip to California, agents stopped the van Aguirre was traveling in, executed an arrest, and seized approximately $74,000 in cash. Over the course of a year-long investigation, investigators seized approximately $229,000 in cash, two vehicles, three firearms, more than one hundred pounds of methamphetamine, and ten pounds of cocaine.
U.S. v. Christian Jensel Chaidez
Chaidez was a local affiliate of a drug trafficking network responsible for importing methamphetamine, heroin, cocaine and marijuana from Los Angeles to Salem. Using intercepted wire calls, investigators learned that a co-defendant would provide Chaidez with quantities of heroin that Chaidez would, in turn, sell in and around Salem. In November and December 2016 investigators used an undercover informant to purchase one half pound of methamphetamine from Chaidez on two different occasions.
By June 2017, when federal prosecutors unsealed a 12-person indictment, the network, which began primarily as a methamphetamine and cocaine distribution organization, was rapidly expanding into the heroin market. The arrests of Chaidez and others have significantly disrupted the distribution of methamphetamine, cocaine, and other narcotics in the Salem area.
Both cases were investigated by the U.S. Drug Enforcement Administration (DEA) and prosecuted by Kemp L. Strickland, Assistant U.S. Attorney for the District of Oregon.
Portland Man Sentenced to 63 Months in Federal Prison for Extorting Child PornographersRead the Press Release
PORTLAND, Ore. – Andre Eugene Shaw, 34, of Portland, was sentenced today to 63 months in federal prison followed by three years of supervised release for extorting child pornographers for money and services.
Shaw previously pleaded guilty to extortion, transmitting extortionate communications in interstate commerce, money laundering and possessing an unregistered short-barreled assault rifle in May 2018. The victims of the extortionate acts and communications were people who produced, traded in or collected child pornography.
According to court documents, the investigation began in July 2014 when an individual arrested for producing and distributing child pornography told investigators that he had been blackmailed by an individual known to him as "Blackhands" for the preceding three years. Blackhands hacked into the victim’s computer, discovered evidence of his illicit activities and sent an email demanding payment of $10,000, or the victim’s life would be "over."
The victim reached an agreement with the extortionist under which the victim would send $1,000 per month via Western Union money transfers to someone known to the victim as "Joe." Joe was later identified as Shaw, who was using the alias Joe Stanis.
Over time, Blackhands began making additional demands of the victim. He directed the victim to recruit people to skim credit cards at restaurants; to buy things for Joe, including firearms, ammunition, credit card skimming equipment, and a ballistic vest; and to pick up extortion payments sent by other victims and give the money to Joe. Joe furnished the victim with false identification documents to use when picking up extortion payments, many of which were sent to the fictitious names via money transfers.
Two years prior to the unnamed victim’s arrest, Blackhands began demanding photos of the victim’s juvenile daughter and later demanded the victim give his daughter to Joe. On two or three different occasions, the victim turned his daughter over to Joe, knowing that Joe or others would use his daughter to produce child pornography. The victim drugged his daughter each time. On the most recent occasion, Blackhands directed the victim to bring certain props
including costumes, make-up, sex toys and a camera. Investigators later found the box of props in the victim’s garage and identified Shaw’s palm print on the outside of the box.
On December 18, 2014, Shaw was arrested on an outstanding state misdemeanor warrant for failure to appear. That same day, FBI agents and task force officers executed a federal search warrant at the residence Shaw shared with his girlfriend in Southeast Portland. Agents seized numerous items including counterfeit driver’s licenses from multiple states; holographic overlays for multiple state driver licenses; a counterfeit "Foreign Sovereign Immunities Act Non-Resident National" identification card that purportedly bore the seal of the U.S. Department of State; supplies and equipment for manufacturing high-quality false identification documents; books on creating a new identity; encrypted compact discs labeled with the names of multiple state departments of motor vehicles as well as the Social Security Administration and U.S. Department of Defense; compact discs labeled with the initials of numerous known extortion victims; numerous firearms, magazines, ammunition, and homemade silencers; and cash and precious metals, including silver coins and bars, gold coins, and $13,344 in U.S. currency.
In total, Shaw extorted more than $100,000 from various victims. Often, the pattern of conduct was similar: Shaw would hack into the victims’ computer, find evidence of their illegal activity and threaten to expose them unless they paid. The full extent of Shaw’s criminal activities remains a mystery, however, because his computer equipment and the discs found in his residence were all heavily encrypted. To date, the government’s attempts to defeat the encryption have been unsuccessful and, as a result, investigators have been unable to definitively say whether Shaw was Blackhands.
At least two of Shaw’s victims are now dead, having taken their own lives after they were contacted by law enforcement officers. At least one young girl—the victim’s daughter—was victimized by Shaw or someone he knew.
This case was investigated by the FBI and prosecuted by Gary Y. Sussman and Julia E. Jarrett, 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.
The FBI’s Child Exploitation Task Force (CETF) conducts sexual exploitation investigations – many of them undercover – in coordination with other federal, state, and local law enforcement agencies. The Portland FBI’s CETF consists of agents and task force officers from the Beaverton Police Department, Portland Police Bureau, Tigard Police Department, Hillsboro Police Department, and the Clackamas County Sheriff’s Office. The FBI’s CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child exploitation.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Portland Man Sentenced to Seven Years in Federal Prison for Drg and Firearm OffensesRead the Press Release
PORTLAND, Ore. – Christopher James Fleet, 23, of Portland, was sentenced today to 84 months in federal prison and five years of supervised release for possessing distribution quantities of methamphetamine and two firearms when arrested by Multnomah County Sheriff’s Office (MCSO) deputies in August 2017.
On August 23, 2017, deputies from the MCSO Special Investigation Unit were conducting surveillance at a known drug and gang house in Portland. They observed a vehicle parked in front of the house they believed was connected with Fleet, a drug dealer with an outstanding arrest warrant. Upon leaving the house and attempting to drive away, deputies blocked Fleet using unmarked vehicles and approached him wearing marked law enforcement raid vests. After initially refusing to comply with the deputy’s commands to raise his hands and failing to find an escape route, Fleet surrendered.
During the arrest, deputies found a Kel Tec 9mm firearm and distribution quantities of heroin and methamphetamine on Fleet’s person. They also found a locked backpack in Fleet’s vehicle. The backpack was later found to contain .40 caliber Sig Sauer pistol, drug records, and a digital scale.
Fleet previously pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking offense on May 1, 2018.
This case was investigated by the MCSO Special Investigation Unit and prosecuted by Leah K. Bolstad, Assistant U.S. Attorney for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Statement on Demonstration at Federal Facility in Southwest PortlandRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, provided the following statement on the demonstration taking place at the federal building located at 4310 SW Macadam Avenue in Portland on August 30, 2018.
“Last week I met with members of the Interfaith Movement for Immigrant Justice (IMIrJ), an organization that advocates on behalf of immigrant communities. We discussed their concerns on a number of important topics including asylum seekers being held at FCI Sheridan. Today, individuals affiliated with IMIrJ and others have gathered to protest at a federal building in Southwest Portland that houses employees and serves visitors of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), and the Army Corps of Engineers. They have blocked the building’s driveway and main entrance and refused to move when instructed to by federal authorities.”
“As I’ve said before, freedom of speech and peaceful assembly are sacred rights, but we do not support actions that impede the work of federal employees. We acknowledge demonstrators’ concerns and value the conversations we’ve had with IMIrJ and others, but urge them to refrain from blocking access to this building. Failure to abide by federal law will result in arrest.”
Six Indicted in Interstate Marijuana Trafficking ConspiracyRead the Press Release
PORTLAND, Ore. – U.S. Attorney Billy J. Williams has announced charges against six individuals for their roles in two vast conspiracies to traffic marijuana grown in Portland to Texas, Virginia and Florida.
According to a superseding indictment, Jody Tremayne Wafer, 29, Trent Lamar Knight, 30, and Brittany Lesanta Kizzee, 28, of Houston, Texas; and Raleigh Dragon Lau, 33, and Paul Eugene Thomas, 38, of Portland, are accused of conspiring to manufacture marijuana in Portland, and distributing it in Texas and Virginia.
Wafer, Knight and Kizzee had previously been charged with kidnapping and firearms offenses in December 2017. Thomas had previously been charged with being a felon in possession of a firearm in December 2017.
In a separate indictment, Cole William Griffiths, 30, of Hood River, Oregon, is accused of conspiring to manufacture marijuana in Hood River and shipping it to Florida.
Drug proceeds, in the form of bulk U.S. currency, were returned to Oregon via U.S. mail and passenger luggage on commercial airlines. Based on court documents, 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, and pieces of heavy equipment, and a yacht, and have alleged three houses used as marijuana grow sites are subject to forfeiture, all since August 2017.
“These cases provide clear evidence of what I have repeatedly raised concerns over: Oregon’s marijuana industry is attracting organized criminal networks looking to capitalize on the state’s relaxed regulatory environment” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Dismantling criminal organizations is a key focus of our marijuana enforcement strategy. We will continue to work with our federal, state, local and tribal partners to disrupt overproduction and the illegal export of marijuana out-of-state.”
“DEA will continue to pursue all organized and dangerous interstate marijuana trafficking groups impacting the public’s safety,” said DEA Special Agent in Charge Keith Weis.
“Although the state of Oregon allows for marijuana cultivation and use within state borders, interstate trafficking and distribution remains illegal. IRS-Criminal Investigation will continue to vigorously investigate financial gains obtained through these activities, as we remain committed to the disruption and dismantling of black market marijuana operations,” said Darrell Waldon, Special Agent in Charge of IRS-Criminal Investigation’s Seattle Field Office.
“Through collaboration with our law enforcement partners, hard work and patience, HSI special agents are identifying the criminal organizations producing drugs in Oregon and illegally exporting them out-of-state—and holding them responsible for their illicit activities,” said Brad Bench, Special Agent in Charge for Homeland Security Investigations (HSI) in the Pacific Northwest. “One by one, we’ll seek you out, with our ultimate goal being to dismantle the entire criminal organization.”
“The convergence of guns, drugs and violence with illicit cash are a threat to our community,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “We are working aggressively with our law enforcement partners to address these threats.”
All six defendants are charged with conspiring to manufacture, possess with intent to distribute, and distribute marijuana, and to maintaining drug-involved premises. Other charges include manufacturing and distributing marijuana, money laundering, interfering with commerce by threats and violence, kidnapping, using a firearm during a crime of violence and drug trafficking crime, and felon in possession of a firearm.
Griffiths made an initial appearance in federal court on August 24, 2018 before U.S. Magistrate Judge Youlee Yim You and pleaded not guilty. He was released pending trial. A four-day jury trial is scheduled for October 23, 2018 before U.S. District Court Judge Marco A. Hernandez. The five remaining defendants are expected to make their first appearances at various times over the next three weeks.
As part of this same investigation, the U.S. has also filed a parallel civil complaint alleging that three pieces of real estate in Portland and Lake Oswego are subject to forfeiture because they were used to grow some of the marijuana related to these charges. The three properties are valued at a total of roughly $1.7 million.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by DEA, IRS-CI, HSI and the FBI.
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.
Wafer-Knight-Kizzee-Lau-Thomas Superceding Indictment
Griffiths IndictmentFormer Cottage Grove Police Officer Accused of Stealing Meth from Evidence LockerRead the Press Release
EUGENE, Ore. – A criminal complaint was unsealed today alleging Phillip Allan Beach, 48, of Cottage Grove, Oregon, knowingly and intentionally took possession of a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.
As alleged in the criminal complaint, in May 2015, an evidence coordinator at the Cottage Grove Police Department (CGPD) reported to their supervisor that Beach accessed the department’s evidence locker more frequently than other officers and seemed to do so for no apparent purpose. The coordinator said that Beach would repeatedly access the same evidence bag. A CGPD commander later examined the bag and observed that it was open and two plastic bags inside containing several ounces of methamphetamine crystals had been sliced open.
In June 2015, CGPD began an investigation of Beach’s conduct and placed two hidden cameras inside the evidence locker. On June 11, 2015, Beach was recorded on video entering the locker without signing the evidence log and accessing the evidence bag previously examined by the commander. The video shows Beach taking a small plastic baggie from his pants pocket and using it to take a small portion of meth from the evidence bag. Investigators later weighed the evidence bag and found a 7.3 gram reduction in weight.
CGPD’s investigation revealed that between March 2010 and June 2015, Beach accessed numerous pieces of drug evidence from multiple cases. For example, Beach would indicate at times that he was taking drugs from the secured evidence locker to send to the crime lab for testing, but no drugs were sent. On at least one occasion, Beach is alleged to have replaced methamphetamine he had taken from an evidence bag with salt to conceal his actions.
Beach made an initial appearance today in federal court before U.S. Magistrate Judge Jolie A. Russo. He entered a not-guilty plea and was released pending trial.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Complaint - BeachCalifornia Man Pleads Guilty to Conspiracy to Distribute Cocaine and Trading Cocaine for FirearmsRead the Press Release
MEDFORD, Ore. – Gonzalo Manzo, Jr., 33, of Fresno, California, pleaded guilty today to one count each of conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, in 2017, Manzo coordinated the shipment of a kilogram of cocaine from California to Southern Oregon. Manzo and his co-conspirators sold the cocaine to undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Oregon in exchange for firearms and $21,000 in cash. Manzo intended for the firearms and cash to be transported back to California but agents arrested Manzo and his co-conspirators and the firearms were seized by law enforcement.
Manzo faces a maximum sentence of life in prison, a $5 million fine and four years of supervised release. He will be sentenced on January 24, 2019 before U.S. District Court Judge Ann Aiken. Co-defendants Jonathan Ochoa and Rodolfo Quevedo also face criminal charges; their cases are pending in federal court.
The case was investigated by ATF and is being prosecuted by Nathan J. Lichvarcik and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Former Medford Youth Pastor Sentenced to More Than 15 Years in Federal Prison for Secretly Videotaping MinorsRead the Press Release
MEDFORD, Ore. – Donald Courtney Biggs, 40, of Medford, Oregon, was sentenced today to 188 months in federal prison for surreptitiously recording minor church members in various stages of undress while employed as a youth pastor at Mountain Christian Fellowship in Medford.
According to court documents, the Medford Police Department (MPD) began investigating Biggs in December 2014 for allegedly sending inappropriate text messages to a minor female who he worked with at the church. After authorities discovered Biggs had exchanged similar text messages with additional minor females and confessed to church administrators that he videotaped an adult changing at his house, they obtained a warrant to search Biggs’ home.
The search uncovered multiple electronic devices containing videos of minors and adults undressing and getting into and out of a shower in Biggs’ home. Biggs concealed a video camera behind a light switch in a bathroom in his home in Jacksonville, Oregon used by minor and adult females during youth events hosted at his house. The camera captured victims nude as they were using the toilet, changing clothes, and showering. In a similar manner, Biggs also concealed videos cameras in bathrooms on church retreats to Huntington Beach and Lake Shasta, California.
Biggs later admitted to secretly recording many of the girls in his youth group at his house, the church, and at several different church events. He also admitted to designing activities that required youth group members to change clothes and sometimes shower.
Biggs was charged on November 2, 2017 with nine counts of using or attempting to use a minor to produce a visual depiction of sexually explicit conduct and three counts of transportation with intent to engage in criminal sexual activity with a minor for illicit acts involving nine different minor victims.
Biggs pleaded guilty to a single count of transportation with intent to engage in criminal sexual activity with a minor on February 22, 2017. Upon completion of his prison sentence, Biggs will be on supervised release for life.
This case was investigated by the FBI, MPD, and the Southern Oregon High Tech Crimes Task Force. It was prosecuted by Judi Harper, Amy Potter, and Pamela Paaso, 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. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. 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 www.fbi.gov/tips.
Portland Man Sentenced to More Than 12 Years in Prison for Dealing Meth While on Federal Pretrial ReleaseRead the Press Release
PORTLAND, Ore. – Stephen Gregory Rowell, 37, of Portland, was sentenced today to 147 months in federal prison for dealing methamphetamine in Portland. Upon completion of his prison sentence, Rowell will be on supervised release for 5 years.
Rowell previously pleaded guilty on April 25, 2018 to one count of possession with intent to distribute methamphetamine.
According to court documents, on November 15, 2016, Rowell was arrested and found in possession of at least 180 grams of methamphetamine that were intended for further distribution. At the time of his 2016 arrest, Rowell was on federal pretrial supervision following his arrest and indictment for distributing methamphetamine on June 24, 20l5. Today’s sentencing resolved both cases.
The Clackamas County Interagency Taskforce, Oregon City Police Department, and Clackamas County Sheriff’s Office investigated this case. It was prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.
Sacramento Man Pleads Guilty to Selling Counterfeit Air Bag Covers and Nameplate BadgesRead the Press Release
PORTLAND, Ore. – Pavel Ryzhenkov, 32, of Sacramento, California, pleaded guilty today to one count of trafficking in counterfeit goods.
According to court documents, between December 2015 and September 2017, Ryzhenkov sold counterfeit air bag covers on eBay. He purchased the counterfeit covers from manufacturers in China and in turn advertised and sold them as genuine with the trademarks of various auto manufacturers, including Audi, BMW, Chevrolet, Dodge, Ford, Honda, Infiniti, Lexus, Mercury, Nissan, Subaru, Toyota, and Volkswagen.
Air bag covers made by unauthorized manufacturers can malfunction causing serious injury or death. Upon deployment of an air bag in a crash, counterfeit air bag covers can shatter, sending shrapnel into a vehicle’s passenger compartment.
“Mr. Ryzhenkov did not disclose the origin of the counterfeit air bag covers and thereby caused consumers to unknowingly operate vehicles not equipped with properly functioning air bags, posing a serious risk to their safety,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Counterfeit products pose real safety risks. In this case, counterfeit air bag covers could mean the difference between life and death,” said Brad Bench, special agent in charge of Homeland Security Investigations (HSI) Seattle, which oversees the agency’s Portland office that conducted this investigation. “This investigation represents HSI’s commitment to protecting consumers. No one wants to be behind the wheel when an air bag doesn’t function properly.”
Ryzhenkov faces a maximum sentence of 10 years in prison, a $2 million fine and three years of supervised release. He will be sentenced on December 12, 2018 before U.S. District Court Judge Michael H. Simon.
HSI in Portland, Oregon, investigated this case. It is being prosecuted by Quinn Harrington and Scott Bradford, Assistant U.S. Attorneys for the District of Oregon.
Consumers who have had their air bags or air bag covers serviced by a repair shop that is not part of a new car dealership or who have purchased an air bag or air bag cover online should contact their auto manufacturer to have their vehicle inspected and their air bag or air bag cover replaced if necessary. The responsibility for replacing a counterfeit air bag or air bag cover will vary depending on the circumstances surrounding the original installation of the part. More information can be found on the National Highway Traffic Safety Administration’s website at www.nhtsa.gov.
Portland Man Sentenced to Home Detention, Probation for Hoax Bomb Threat on MAX TrainRead the Press Release
PORTLAND, Ore. – Wilfredo Reyes, 60, of Portland, was sentenced today to three years’ probation including eight months of home detention for falsely reporting a suspicious package on a TriMet MAX train.
According to court records, on June 9, 2017, Reyes called 9-1-1 to report a suspicious package with protruding wires on a MAX train in Portland. During the call, he intentionally conveyed false and misleading information that led the Portland Bureau of Emergency Communications and local law enforcement to believe an explosive had been planted on the MAX train. TriMet police and more than 40 officers from multiple agencies responded to the scene. The Metropolitan Explosive Disposal Unit rendered the device safe and concluded that it did not contain a bomb.
Surveillance cameras revealed that Reyes boarded the train with a backpack, placed it in a seat, walked to another part of the train, and then proceeded to call 9-1-1. He was interviewed by officers at the scene and initially denied being the caller. After the backpack was determined not to contain a bomb, officers found items in it with Reyes's name on them. He was arrested and admitted to owning the backpack and arranging the contents to look like a bomb.
Reyes’ conduct caused a substantial disruption to multiple law enforcement agencies and local businesses. Two business near the Hollywood/NE 42nd Avenue MAX station were evacuated. The station, several streets, and the westbound lanes of Interstate 84 were closed during the investigation.
Reyes previously pleaded guilty to one count of conveying a hoax bomb threat in violation of 18 U.S.C. § 1038(a) on April 26, 2018.
The Portland FBI Joint Terrorism Task Force investigated this case in coordination with its first response partners Portland Police Bureau, Portland Fire and Rescue and TriMet. The case was prosecuted by Hannah Horsley, Assistant U.S. Attorney for the District of Oregon.
Portland Man Sentenced to 10 Years in Federal Prison for Armed Bank RobberyRead the Press Release
PORTLAND, Ore. – Jesse Lee Brockner, 32, of Portland, was sentenced today to 120 months in federal prison for armed bank robbery and possessing a firearm in furtherance of a crime of violence. Upon completion of his prison sentence, Brockner will be on supervised release for three years.
According to court records, on August 30, 2017, three men burglarized a barn in Yamhill County, Oregon, stealing the victim’s vehicle. Two of the suspects fled in the moving truck and a third in the victim’s vehicle. After Yamhill County Sheriff deputies located, arrested and interviewed the two suspects who fled in the moving truck, they identified Brockner as the third suspect. During a search of the moving truck, deputies found a backpack containing approximately $4,000, drug paraphernalia, and Brockner’s driver’s license.
Later the same morning, Brockner robbed a U.S. Bank branch in Beaverton, Oregon wearing a welding mask and holding a firearm. While executing the robbery, Brockner made numerous threats of physical violence and pointed a handgun at the victim teller. A witness observed Brockner walk through a parking lot adjacent to the bank and enter a vehicle matching the description of the vehicle stolen earlier that morning from the barn in Yamhill County.
Approximately two hours later, an FBI Task Force Officer with the Portland Police Bureau (PPB) observed a vehicle matching the description of the stolen vehicle on the 3900 block of SE Powell Boulevard in Portland. After confirming Brockner’s identity, multiple marked PPB patrol units responded to assist the Task Force Officer. A high risk traffic stop was attempted and led to a vehicle pursuit. The pursuit ended in a crash and an officer involved shooting at NE 55th Avenue between East Burnside Street and NE Couch Street in Portland. Brockner was arrested and transported to Legacy Emanuel Hospital to receive medical attention.
Brockner previously pleaded guilty to one count of armed bank robbery in violation of 18 U.S.C. §§ 2113(a) and (d) and one count of brandishing a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c) on May 2, 2018.
This case was investigated by the FBI and prosecuted by Craig Gabriel, Benjamin Tolkoff and John Brassell, Assistant U.S. Attorneys for the District of Oregon.
The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Oregon Domestic Terrorism Suspect in Custody After 12 Years on the RunRead the Press Release
WASHINGTON – Joseph Mahmoud Dibee, 50, of Seattle, Washington, an accused domestic terrorist and 12-year fugitive, has been apprehended and returned to the United States to face federal criminal charges in Oregon, California and Washington State.
Assistant Attorney General for National Security John C. Demers, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division, U.S. Attorney Billy J. Williams for the District of Oregon, and Special Agent in Charge Renn Cannon of the FBI in Oregon made the announcement.
“Whatever the motivation, terrorism is simply unacceptable,” said Assistant Attorney General Demers. “Domestic terrorism is no exception. Because of the close cooperation between our international and intergovernmental partners, Dibee will now face the consequences for his crimes. This should send a clear message to all other criminals on the run: no matter how long it takes, we will find you and we will bring you to justice.”
“We will always continue in our mission to locate and bring to justice those who threaten our national security or seek to harm the American people,” said FBI Assistant Director McGarrity. “We thank all of the agents, analysts, and the U.S. Attorney’s Office, who have worked tirelessly on this case over the years.”
“More than two decades ago, a loosely affiliated group of environmental extremists set out to express their views using force, violence, sabotage, mass destruction, intimidation, and coercion,” said U.S. Attorney Williams. “Thankfully no innocent lives were taken by these senseless acts. Today we recognize the FBI’s unwavering pursuit of justice in returning longstanding fugitive Joseph Dibee. Dibee will now, as many of his co-conspirators have before, face the consequences of his actions. Using violent means to express one’s views will never be tolerated nor forgotten. We will bring every last person responsible for these crimes to justice.”
“Every act of violence comes with a choice—a choice to do harm,” said FBI Special Agent in Charge Cannon. “A choice to do what may be irreparable damage to a family, a business, or a researcher’s life work. A choice to risk the lives of the firefighters who will respond to an incident. Most of the defendants in the FBI's long-running Operation BACKFIRE investigation have answered for those decisions they made with significant prison sentences and millions of dollars in fines. Mr. Dibee, who traveled the world to avoid capture, will now, finally, have to answer to the allegations of violence he faces.”
Dibee, an American citizen, is charged in the District of Oregon with one count of conspiracy to commit arson, one count of conspiracy to commit arson and destruction of an energy facility, and one count of arson. He also faces one count each of conspiracy to commit arson, possession of an unregistered firearm, and possession of a destructive device in furtherance of a crime of violence in the Western District of Washington and one count each of conspiracy to commit arson, arson of a government building, and possession of a destructive device in furtherance of a crime of violence in the Eastern District of California.
Dibee will make an initial appearance in federal court today at 1:30 p.m. before a federal magistrate judge in the District of Oregon. The government will seek his continued detention.
According to court documents, federal authorities learned Dibee was traveling through Central America on his way to Russia with a planned stop in Cuba. With the assistance of the Cuban authorities, particularly the Ministries of the Interior and Exterior, the U.S. Department of State, the U.S. Department of Homeland Security including the U.S. Coast Guard and U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations and the U.S. Embassy in Havana, the FBI arranged for Cuban authorities to detain Dibee before he boarded a plane bound for Russia, and return him to the United States. Dibee fled the United States in December 2005.
In 2006, a federal grand jury in Oregon indicted Dibee and 11 coconspirators as part of Operation BACKFIRE, a long-running FBI domestic terrorism investigation. The conspirators, known as “The Family,” have been linked to more than 40 criminal acts ranging from vandalism to arson between 1995 and 2001, causing more than $45 million in damages.
Many of the Dibee’s crimes were linked to the Earth Liberation Front (ELF) or the Animal Liberation Front (ALF). Dibee’s “captured” poster can be seen at https://www.fbi.gov/wanted/dt/joseph-mahmoud-dibee.
One fugitive remains at large from Operation BACKFIRE. Josephine Sunshine Overaker, an American citizen believed to be either 43 or 46 years old, fled to Europe in late 2001. Overaker faces 19 felony charges including conspiracy to commit arson, conspiracy to commit arson and destruction of an energy facility, attempted arson, and arson in the District of Oregon, the Western District of Washington, and the District of Colorado. Overaker speaks fluent Spanish and may seek employment as a firefighter, midwife, sheep tender, or masseuse. The FBI continues to offer a reward of up to $50,000 for information leading to her arrest.
An indictment is only an accusation of a crime and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being prosecuted by Assistant U.S. Attorneys Geoffrey Barrow of the District of Oregon, Andrew Friedman and Thomas Woods of the Western District of Washington and Heiko Coppola of the Eastern District of California, along with Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.Jury Delivers Verdicts in Trial of FBI Special AgentRead the Press Release
PORTLAND, Ore. – A federal jury today acquitted W. Joseph Astarita, a member of the FBI’s Hostage Rescue Team (HRT) based in Quantico, Virginia, on charges of making false statements and obstruction of justice.
"We thank the jury for their dedicated service and for giving full consideration to an important case. We strongly believe this case needed to be brought before the court and decided by a jury," said Billy J. Williams, U.S. Attorney for the District of Oregon. "Our system of justice relies on the absolute integrity of law enforcement officials at all levels of government."
"The OIG respects the jury’s verdict. We will continue to investigate allegations of misconduct by Department of Justice employees to ensure the integrity of our law enforcement components," said Michael E. Horowitz, U.S. Department of Justice Inspector General. "We also would like to thank the Deschutes County Sheriff’s Office and the Major Incident Team for their assistance with this investigation."
Astarita was one of a number of FBI agents assigned to the armed occupation of the Malheur National Wildlife Refuge and was present during the shooting of Robert LaVoy Finicum on January 26, 2016, in Harney County, Oregon.
Astarita was accused of knowingly and willfully making false statements to FBI Supervisory Special Agents. Specifically, Astarita told his supervisors he had not fired his weapon during the attempted arrest of Finnicum.
A federal grand jury charged Astarita with three counts of making false statements in violation of 18 U.S.C. § 1001 and two counts of obstruction of justice in violation of 18 U.S.C. § 1521(b)(3) on June 20, 2017. One count each of making false statements and obstruction of justice were dismissed pre-trial.
The verdicts concludes a three-week trial during which jurors heard testimony from FBI agents, state and local law enforcement officers, forensic scientists and ballistics experts.
The Department of Justice Office of the Inspector General investigated this case in partnership with the U.S. Attorney’s Office for the District of Oregon. The case was prosecuted by Gary Y. Sussman and Paul T. Maloney, Assistant U.S. Attorneys for the District of Oregon.