District of Oregon
Press releases recorded for this federal judicial district.
Umatilla Man Sentenced to 37 Months in Federal Prison for Abusive Sexual Contact with MinorRead the Press Release
PORTLAND, Ore. – Thomas James Adams, 23, of La Grande, Oregon, was sentenced today to 37 months in federal prison for sexually abusing a minor victim on the Umatilla Indian Reservation.
According to court documents, in September 2015, Adams, then 20 years old, visited the 9-year-old minor victim at his family’s home during the Pendleton Round-Up, a local rodeo event. When others in the house were asleep, Adams convinced the minor victim to participate in a series of “dares” or “challenges” that escalated from running around the house naked and peeing outside in the dark to looking at adult pornographic photos on Adam’s cellphone, mutual masturbation and touching each other’s genitals. The young victim reported the sexual contact to his parents, who contacted tribal law enforcement authorities.
The court also ordered Adams to have no contact with the victim or his immediate family, and ordered that he not enter or visit the Umatilla Indian Reservation without approval in advance from his probation officer.
Adams pleaded guilty to one count of abusive sexual contact in violation of 18 U.S.C. §§ 2244(a)(5) and 1152 on January 31, 2018.
The case was investigated by the FBI with the assistance of the Umatilla Tribal Police Department. It was prosecuted by Jennifer Martin, Assistant U.S. Attorney for the District of Oregon.
U.S. Attorney Statement on Release of 2018 HIDTA Marijuana Insight ReportRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon provided the below statement on the release of the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) 2018 Marijuana Insight Report.
“The recent HIDTA Insight Report on marijuana production, distribution, and consumption in Oregon confirms what we already know—it is out of control. The industry’s considerable and negative impacts on land use, water, and underage consumption must be addressed immediately. State officials should respond quickly and in a comprehensive manner to address the many concerns raised by this assessment. To date, we’ve seen insufficient progress from our state officials. We are alarmed by revelations from industry representatives, landowners, and law enforcement partners describing the insufficient and underfunded regulatory and enforcement structure governing both recreational and medical use. A weakly-regulated industry will continue to detract from the livability and health of communities throughout the state.”
“What is often lost in this discussion is the link between marijuana and serious, interstate criminal activity. Overproduction is rampant and the illegal transport of product out of state—a violation of both state and federal law—continues unchecked. My ask continues to be for transparency, responsible regulation, adequate funding, and a willingness to work together. It’s time for the state to wake up, slow down, and address these issues in a responsible and thoughtful manner.”
The Oregon HIDTA program was established by the White House Office of National Drug Control Policy (ONDCP) in June of 1999. In 2015 the program expanded into Idaho and was renamed the Oregon-Idaho HIDTA. The Oregon-Idaho HIDTA consists of 14 counties and the Warm Springs Indian Reservation. Counties in the HIDTA include Oregon’s Clackamas, Deschutes, Douglas, Jackson, Lane, Linn, Malheur, Marion, Multnomah, Umatilla and Washington counties, and Idaho’s Ada, Bannock and Canyon counties.
Portland Man Given Prison, Probation for Video Voyeurism at Local Daycare FacilityRead the Press Release
PORTLAND, Ore. – Jay Walter Jaacks, 50, of Portland, was sentenced today to 34 days in federal prison and five years of probation for placing a concealed video camera in the adult restroom of the Joyful Noise Child Development Center on Southwest First Avenue in Portland.
Jaacks was also ordered to complete 240 hours of community service and is permanently prohibited from entering the daycare facility or having contact with any of its employees.
On or about July 29, 2016, Jaacks concealed a video camera in a small cosmetics bag and placed it in the adult restroom of a daycare facility in Portland. The video camera captured 17 adults, both daycare employees and other parents, in various stages of undress. A daycare employee found the camera and immediately notified law enforcement. Law enforcement officials seized the camera before Jaacks could retrieve it.
All employees and families affiliated with the daycare facility have been notified of Jaacks’ crimes.
Jaacks previously pleaded guilty to 17 misdemeanor counts of video voyeurism on April 23, 2018.
The U.S. Department of Homeland Security Federal Protective Service (FPS) investigated this case. It was prosecuted by Scott Kerin, Assistant U.S. Attorney for the District of Oregon.
Man Convicted of Sexually Assaulting Two Portland Women Given 92 Months in Prison for Illegal ReentryRead the Press Release
PORTLAND, Ore. – Sergio Martinez-Mendoza, 30, was sentenced today to 92 months in federal prison for illegal reentry. Upon completion of his prison sentence, Martinez-Mendoza will be subject to deportation.
“We must stop dangerous criminals with no right to be in the U.S. from returning to our streets and reoffending after completing their state sentences,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Giving ICE notice that a defendant is in custody on state charges is permitted under Oregon state law and could have prevented these horrific crimes. Oregonians deserve and expect more. As evidenced by this case,” continued U.S. Attorney Williams, “effective communication between federal and state law enforcement is imperative to ensure dangerous illegal aliens are identified and deported according to law.”
According to court documents, prior to July 2017, Martinez-Mendoza, a Mexican citizen, had been deported or removed from the U.S. 11 times, most recently in November 2016. After his eleventh illegal reentry, Martinez-Mendoza committed and was convicted of two violent sexual assaults against two adult females in Portland.
On July 24, 2017, Martinez-Mendoza broke into a home in Portland, pulled an adult female victim from her bed, bound her hands and feet, and proceeded to sexually assault her. During the assault, Martinez-Mendoza punched the victim in the head and slammed her face against the floor. Afterward, he stole $20 from the victim’s purse and fled.
A few hours later, Martinez-Mendoza approached a second victim in parking garage and held a knife to her chest. He knocked a cell phone from her hand and forced her into the passenger seat of her car. The victim temporarily escaped from out the passenger door, but Martinez-Mendoza caught up with her, forced her to ground, and repeatedly banged her head against the pavement.
The Multnomah County District Attorney’s Office prosecuted Martinez-Mendoza for these offenses and, in December 2017, he was sentenced to 420 months in prison. Martinez-Mendoza previously pleaded guilty in federal court to one count of illegal reentry on February 22, 2018.
This case was investigated by U.S. Immigration and Customs Enforcement and prosecuted by Leah K. Bolstad, Assistant U.S. Attorney for the District of Oregon.
California Man Sentenced to 150 Months in Federal Prison for Violent Assault Resulting in Serious InjuryRead the Press Release
PORTLAND, Ore. – Victor Joseph Contreras, 23, of Fresno, California, was sentenced today to 150 months in federal prison for charges stemming from a March 2016 shooting death on the Umatilla Indian Reservation.
According to court documents, on March 19, 2016, Contreras and codefendant Julian Darryl James Simpson attended a party on the reservation. As a result of escalating disputes between suspected gang members at the party, Contreras and Simpson were asked to leave.
When other party goers left the house, Contreras and Simpson opened fire on them using semiautomatic pistols. Simpson fired at least one shot at a victim, striking him in the back of the head, and fired additional shots into a nearby car. Contreras, upon hearing the gunshots, fired more than 20 rounds into the crowd of party goers, striking a second victim just above the ankle. The first victim was medically evacuated to a nearby hospital but later died from his injuries. Contreras fled the scene, but was arrested shortly thereafter. Simpson was arrested a week later in Lewiston, Idaho with the firearm used to kill the victim.
Contreras previously pleaded guilty to one count of assault resulting in serious bodily injury and one count of possession of a firearm in furtherance of a crime of violence on July 5, 2017. Upon completion of his prison sentence, Contreras will be on supervised release for 5 years.
Simpson pleaded guilty to second degree murder on October 27, 2017. He was sentenced 25 years in prison followed by a 5-year term of supervised release.
The case was jointly investigated by the FBI and the Umatilla Tribal Police Department, and prosecuted by Scott M. Kerin, Jennifer J. Martin, Paul T. Maloney, and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon.
Oregon Prosecutor Receives DEA Administrator's AwardRead the Press Release
WASHINGTON – Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon, was one of several prosecutors and investigators recognized today by Acting Drug Enforcement Administration (DEA) Administrator Uttam Dhillon for their work investigating a transnational opiate trafficking organization.
Kerin and his colleagues were given the prestigious Administrator’s Award for Outstanding Group Achievement in a ceremony today in Washington.
This case came to the attention of law enforcement as part of “Operational Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other legal drugs, and was significantly aided by the national and international coordination of agencies led by DEA’s Special Operations Division (SOD). The operation started in North Dakota in January 2015 as an overdose investigation. To date, 32 defendants have been charged as a result of the investigation.
This case jointly investigated by DEA; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); U.S. Postal Inspection Service; IRS Criminal Investigations; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police (RCMP); Portland Police Bureau (PPB), Drugs and Vice Division; Portland HIDTA Interdiction Task Force; Oregon State Police (OSP); and the Grand Forks, North Dakota Police Department.
Christopher C. Myers, U.S. Attorney for the District of North Dakota; Assistant U.S. Attorney Kerin; and Trial Attorney Adrienne Rose of the Criminal Division’s Narcotics and Dangerous Drugs Section are prosecuting the case.
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.
Oregon Man Sentenced to 70 Months in Federal Prison for Detonating Explosive Device in Fred Meyer StoreRead the Press Release
PORTLAND, Ore. – Monte Robin Kaija, Jr., 47, of Portland, was sentenced today to 70 months in federal prison for detonating a small explosive device at a Fred Meyer store in Southeast Portland, and later possessing a homemade metal pipe bomb.
According to court documents, on May 21, 2016, the Portland Police Bureau (PPB) received a report of an individual placing a small pipe bomb made of PVC in an aisle of a Fred Meyer store on SE 82nd Avenue in Portland. Portland Fire & Rescue were dispatched to assist PPB with their response. Kaija detonated the device shortly before police arrived on scene, causing damage to a single aisle. Nobody was injured in the explosion, and Kaija fled. While processing the scene, PPB officers identified several fragments of white plastic PVC pipe, pieces of white plastic PVC end caps, electrical tape, and a granular, power-like substance.
After analyzing the materials collected on scene, the Oregon State Police Lab notified PPB that a DNA profile had been collected from a small piece of electrical tape. The DNA profile was matched to Kaija. On August 31, 2016, PPB officers arrested Kaija in a motorhome on SE 96th Avenue in Portland, and discovered a homemade metal pipe bomb in his motorhome. A certified bomb technician assigned to the Portland Metropolitan Explosive Disposal Unit responded to the scene and rendered the device safe. As a convicted felon, he was not allowed to possess the destructive devices.
Kaija previously pleaded guilty to two counts of possession of an unregistered destructive device in violation of 26 U.S.C. §§ 5841, 5861(d), and 5871 on December 12, 2016. Upon completion of his prison sentence, Kaija will be on supervised release for three years.
The PPB and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case. It was prosecuted by Hannah Horsley and Paul T. Maloney, Assistant U.S. Attorneys for the District of Oregon.
Three Gypsy Joker Outlaw Motorcycle Club Members & Associate Indicted for Violent Murder and Kidnapping in Aid of RacketeeringRead the Press Release
WASHINGTON - A federal grand jury in the District of Oregon has returned a four-count indictment charging three members and associates of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) for racketeering, kidnapping and murder. The indictment was returned on June 28, and unsealed today.
The indictment was announced by Principal Deputy Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Billy J. Williams for the District of Oregon; Special Agent in Charge Darek Pleasants of the Bureau of Alcohol, Tobacco, Firearms, and Explosive’s (ATF) Seattle Field Division; and Chief of Police Danielle Outlaw of the Portland Police Bureau (PPB).
“The defendants allegedly violently kidnapped and murdered Robert Huggins to maintain and advance their positions in the Gypsy Joker Outlaw Motorcycle gang,” said Principal Deputy Assistant Attorney General Cronan. “This indictment is an important step toward dismantling this violent gang, and should send a clear message that the Department of Justice will bring to justice those who commit such heinous crimes on our streets.”
“Pursuing organized criminal organizations and individual members that commit violent crimes and threaten public safety is a top priority for the Department of Justice and the U.S. Attorney’s Office in the District of Oregon,” said U.S. Attorney Williams. “We will use every law enforcement tool available to hold members of criminal organizations accountable for their violent and lawless criminal gang activity.”
“ATF remains committed to combatting violent crime organizations that endanger our communities,” said ATF Special Agent in Charge Pleasants. “ATF will always stand shoulder to shoulder with our law enforcement partners to protect the public.”
“The Portland Police Bureau is proud to be a part of this collaborative effort that resulted in the indictment of people engaged in violent activity,” said Chief Outlaw. “Violent crime deeply affects our community and by working in partnership, we can use effective strategies to locate those individuals who are responsible for violence and hold them accountable.”
Mark Leroy Dencklau, 58, of Woodburn, Oregon; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 37, of Portland are 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. According to the indictment, the defendants are alleged from June 30 to July 1, 2015 to have kidnapped and murdered Robert Huggins, a resident of southeast Portland, Oregon.
According to the indictment, GJOMC oversees several “support clubs” in Oregon and Washington, including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club. The indictment alleges that the three men engaged in the violent actions leading to Huggins’ death for the purpose of maintaining and increasing their positions in the GJOMC criminal enterprise.
Dencklau, Fisher and Pribbernow made their initial appearances before a U.S. Magistrate Judge in Portland on July 9, 10, and 13, 2018, respectively.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the PPB and ATF, with assistance from the Clark County, Washington Sheriff’s Office, the Oregon State Police, and the Oregon and Washington State Crime Labs. Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Leah K. Bolstad of the District of Oregon are prosecuting the case.
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.
Three Gypsy Joker Outlaw Motocycle Club Members & Associate Indicted for Violent Murder and Kidnapping in Aid of RacketeeringRead the Press Release
A federal grand jury in the District of Oregon has returned a four-count indictment charging three members and associates of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) for racketeering, kidnapping and murder. The indictment was returned on June 28, and unsealed today.
The indictment was announced by Principal Deputy Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Billy J. Williams for the District of Oregon; Special Agent in Charge Darek Pleasants of the Bureau of Alcohol, Tobacco, Firearms, and Explosive’s (ATF) Seattle Field Division; and Chief of Police Danielle Outlaw of the Portland Police Bureau (PPB).
“The defendants allegedly violently kidnapped and murdered Robert Huggins to maintain and advance their positions in the Gypsy Joker Outlaw Motorcycle gang,” said Principal Deputy Assistant Attorney General Cronan. “This indictment is an important step toward dismantling this violent gang, and should send a clear message that the Department of Justice will bring to justice those who commit such heinous crimes on our streets.”
“Pursuing organized criminal organizations and individual members that commit violent crimes and threaten public safety is a top priority for the Department of Justice and the U.S. Attorney’s Office in the District of Oregon,” said U.S. Attorney Williams. “We will use every law enforcement tool available to hold members of criminal organizations accountable for their violent and lawless criminal gang activity.”
“ATF remains committed to combatting violent crime organizations that endanger our communities,” said ATF Special Agent Charge Pleasants. “ATF will always stand shoulder to shoulder with our law enforcement partners to protect the public.”
“The Portland Police Bureau is proud to be a part of this collaborative effort that resulted in the indictment of people engaged in violent activity,” said Chief Outlaw. “Violent crime deeply affects our community and by working in partnership, we can use effective strategies to locate those individuals who are responsible for violence and hold them accountable.”
Mark Leroy Dencklau, 58, of Woodburn, Oregon; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 37, of Portland are 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. According to the indictment, the defendants are alleged from June 30 to July 1, 2015 to have kidnapped and murdered Robert Huggins, a resident of southeast Portland, Oregon.
According to the indictment, GJOMC oversees several “support clubs” in Oregon and Washington, including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club. The indictment alleges that the three men engaged in the violent actions leading to Huggins’ death for the purpose of maintaining and increasing their positions in the GJOMC criminal enterprise.
Dencklau, Fisher and Pribbernow made their initial appearances before a U.S. Magistrate Judge in Portland on July 9, 10, and 13, 2018, respectively.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the PPB and ATF, with assistance from the Clark County, Washington Sheriff’s Office, the Oregon State Police, and the Oregon and Washington State Crime Labs. Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Leah K. Bolstad of the District of Oregon are prosecuting the case.
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.
Warm Springs Man Sentenced to 25 Years in Federal Prison for Molesting Minor VictimRead the Press Release
PORTLAND, Ore. – Lawren John Slockish, 36, of Warm Springs, Oregon, was sentenced today to 300 months in federal prison for molesting an 11-year-old girl.
“Sexual abuse of children casts a lifelong shadow on the health of the victims. The Warm Springs Multi-Disciplinary Child Abuse Team brings together tribal police and prosecutors, Child Protective Services, the Indian Health Service, and federal law enforcement authorities to collaboratively investigate these cases in a thorough, compassionate manner ensuring justice for these vulnerable victims” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“This victim showed great courage by coming forward to disclose the abuse, and for that we are very grateful. Her strength will allow us - law enforcement, the community and her family - to keep other children safe,” said Steve Goldman, Assistant Special Agent in Charge of the FBI in Oregon. “The FBI, working with our tribal partners, will do everything to bring justice for the victim with a long-term goal of identifying and addressing child sexual abuse within our community.”
According to court documents, both Slockish and the minor victim are members of the Warm Springs Tribe. One day following the abuse, the child disclosed to her mother that Slockish had touched her breasts and tried to anally sodomize her. The minor victim’s mother notified the Warm Springs police. The child told Warm Springs police officers that the assault was not the first time the defendant had molested her and that he had done so in a similar manner approximately one year prior.
Slockish previously pleaded guilty to one count of abusive sexual contact with a child on January 19, 2017. Upon completion of his prison sentence, Slockish will be on supervised release for life.
The FBI investigated this case with the assistance of the Warm Springs Tribal Police Department. It was prosecuted by Paul T. Maloney, Assistant U.S. Attorney for the District of Oregon.
On March 3, 1994, the FBI initiated “Operation Safe Trails” with the Navajo Department of Law Enforcement in Flagstaff, Arizona. The operation, which would later evolve into the Safe Trails Task Force (STTF) Program, unites FBI and other federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTFs allow participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs, and gaming violations.
Portland Man Indicted for Attempting to Bribe ICE Deportation OfficerRead the Press Release
Downloadable file: INDICTMENT-Burgos-Final.pdf
PORTLAND, Ore. – Antonio Oswaldo Burgos, 48, of Portland, made an initial appearance today in federal court before U.S. Magistrate Judge Paul Papak.
The court unsealed a three-count indictment alleging Burgos, on three separate occasions, attempted to bribe a U.S. Immigration and Customs Enforcement (ICE) deportation officer. Burgos is accused of offering to pay the officer in order to facilitate the deportation of his estranged wife and daughter.
Burgos was released pending trial. A two-day jury trial is scheduled for August 28, 2018 before U.S. District Court Judge Michael H. Simon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was jointly investigated by ICE’s Office of Professional Responsibility and Homeland Security Investigations.
Hillsboro Man Sentenced to More Than 15 Years in Federal Prison for Distribution of Methamphetamine and CockfightingRead the Press Release
Downloadable file: SENTENCING-Ramirez-Final.pdf
PORTLAND, Ore. – On June 28, 2018, Daniel Ramirez, 43, of Hillsboro, Oregon, was sentenced to 188 months in prison for engaging in a conspiracy to distribute methamphetamine and engaging in cockfighting. Ramirez was also ordered to pay a money judgment of $100,000 and will be on supervised release for five years upon completion of his prison sentence.
According to court documents, Ramirez was the leader of a large drug trafficking organization with ties to multiple Mexican drug cartels, including Los Caballeros Templarios (Knights Templar), and was responsible for smuggling significant quantities of methamphetamine from Mexico into Oregon and elsewhere. With the assistance of a series of court authorized wiretaps, law enforcement agents identified more than 50 members of the organization, 35 of whom reside in Oregon. 24 members were indicted in federal court on various drug-related charges. A number of additional defendants were also charged in state court.
On October 15, 2015, and interagency team of law enforcement officers conducted one of the largest takedowns in Oregon history, executing federal search warrants throughout the Portland and Salem, Oregon metro areas. Ramirez was arrested at his home in Hillsboro. During a search of his residence, agents found four firearms and ammunition. After his arrest, Ramirez admitted to receiving between five and ten pounds of methamphetamine every two-to-three weeks from suppliers in Mexico.
While investigating the drug trafficking operation, agents also discovered that Ramirez was heavily involved in cockfighting. He would obtain roosters, attach knives and gaffs to their legs and enter them into wagered fights throughout Oregon.
Ramirez previously pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute methamphetamine and one count of conspiracy to violate the Animal Welfare Act on November 27, 2017.
This case was investigated by the Westside Interagency Narcotics (WIN) team and the FBI. It was prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Joint Law Enforcement Action Clears Entrances to Federal Facility in SW PortlandRead the Press Release
PORTLAND, Ore. – At approximately 5:30am today, federal law enforcement officers arrived at the federal building at 4310 SW Macadam Avenue in Portland and dismantled obstacles blocking access to the facility.
“Freedom of speech and peaceful assembly are sacred rights enjoyed by all Americans and the U.S. Attorney’s Office is committed to protecting these rights. However, when individuals break the law by blocking employees and the public from accessing a federal facility, federal law enforcement will respond to restore normal business operations,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Federal law enforcement officers were able to effectively remove the demonstrators and blockades from in front of the entrances to the facility,” said L. Eric Patterson, Director of the Federal Protective Service. “We will continue to maintain a presence at the facility to ensure a safe reopening and enable employees and the public to safely conduct business at the facility.”
Seven demonstrators were taken into federal custody for failing to comply with directions given by law enforcement officers and blocking the building’s entrances. These violations are Class C misdemeanors under 41 C.F.R. § 102. The demonstrators were temporarily detained and cited by the Federal Protective Service, and then released. All were ordered to appear on the charges before a federal magistrate judge on September 7, 2018, in Portland.
An eighth individual was temporarily detained by federal law enforcement officers after approaching a police line in his vehicle. Shortly after the law enforcement operation began, the individual was spotted in a black SUV traveling near the federal facility. After spotting what appeared to be two rifles in the backseat of the vehicle, officers made contact with the individual and detained him without incident. Three airsoft guns were found in the vehicle. The individual was later released without being charged.
Beginning on June 25, 2018, demonstrators were issued four written and one verbal warning stating that it is unlawful to obstruct a federal facility. 41 C.F.R. § 102-74.390 and § 102-74.450 prohibit the obstruction of entrances, foyers, lobbies, corridors, offices, and parking lots of federal facilities.
Federal law does not restrict demonstrators from gathering on non-federal property adjacent to a federal facility. However, demonstrators are encouraged to review and adhere to all applicable state laws and local regulations.
FPS Officers Clear Entrance to Federal Facility FPS Officers Assemble Prior to Reopening Federal Facility FPS Officers Assemble Prior to Reopening Federal Facility FPS Officers Assemble Prior to Reopening Federal Facility FPS Officers Separate Demonstrators Connected at Wrist by "Sleeping Dragon" Device FPS Officers Separate Demonstrators Connected at Wrist by "Sleeping Dragon" Device FPS Officer Disassembles Demonstration Debris FPS Officers Clear Entrance to Federal Facility Airsoft Guns Found in VehicleIdaho Man Sentenced to 25 Years in Federal Prison for Second Degree MurderRead the Press Release
PORTLAND, Ore. – Julian Darryl James Simpson, 25, of Lewiston, Idaho, was sentenced today to 300 months in federal prison following his conviction for second degree murder. Simpson, an enrolled member of the Confederated Tribes of the Umatilla Indian Reservation, pleaded guilty to this charge on October 27, 2017.
According to court documents, on March 19, 2016, Simpson and codefendant Victor Joseph Contreras attended a party on the Confederated Tribes of the Umatilla Indian Reservation. As a result of escalating disputes between suspected gang members at the party, Simpson and Contreras were asked to leave.
When other party goers left the house, Simpson and Contreras opened fire on them using semiautomatic pistols. Simpson fired at least one shot at a victim, striking him in the back of the head, and fired additional shots into a nearby car. Contreras, upon hearing the gunshots, fired more than 20 rounds into the crowd of party goers, striking a second victim just above the ankle. The first victim was medically evacuated to a nearby hospital but later died from his injuries. Simpson was arrested a week later in Lewiston with the firearm used to kill the victim.
Contreras pleaded guilty to assault resulting in serious bodily injury and possession of a firearm in furtherance of a crime of violence on July 5, 2017. His sentencing is scheduled for July 19, 2018.
The case was jointly investigated by the FBI and the Umatilla Tribal Police Department, and prosecuted by Scott M. Kerin, Jennifer J. Martin, Paul T. Maloney, and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon.
Notice to Vacate Federal Property Issued to "Occupy ICE PDX" Demonstrators in SW PortlandRead the Press Release
PORTLAND, Ore. – At approximately 10:30am today, law enforcement officers from the Federal Protective Service (FPS) began distributing notices to vacate federal property to individuals participating in the “Occupy ICE PDX” demonstration at 4310 SW Macadam Avenue, in Southwest Portland.
“The U.S. Attorney’s Office is working with FPS and ICE to reopen the federal building on Southwest Macadam that serves many critical functions requiring public and employee access. We acknowledge the community’s concerns driving these demonstrations. While demonstrators have a lawful right to assemble and voice their concerns, blocking the building’s driveways or entrances is not permitted under federal law,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
It is unlawful under 41 C.F.R. § 102-74.390 and § 102-74.450 to obstruct the entrances, foyers, lobbies, corridors, offices and parking lots of federal facilities. Under these regulations, demonstrators are not permitted to obstruct the driveway or entrance of the ICE facility located on SW Macadam Avenue.
Federal law does not restrict demonstrators from gathering on non-federal property adjacent to a federal facility. However, demonstrators are encouraged to review and adhere to all applicable state laws and local regulations.
Flyers communicating the notice to vacate were distributed by federal law enforcement officers throughout demonstrators’ encampment and posted at the entrances to the ICE facility.
Individuals who continue to obstruct the entrance of this federal facility will be subject to arrest and prosecution in federal court under the above listed regulations.
FPS provides integrated security and law enforcement services to more than 9,500 federal facilities throughout the U.S. and is the lead law enforcement agency for this action.
Nigerian Leader of Nationwide Identity Theft and IRS Tax Fraud Scheme Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore. – On Wednesday, June 20, 2018, Emmanuel Oluwatosin Kazeem, 35, of Bowie, Maryland and Nigeria, was sentenced to 15 years in prison for leading a vast conspiracy to steal identities and file fraudulent tax returns. He was ordered to pay more than $12 million in restitution and will be subject to deportation when released from prison.
“Emmanuel Kazeem orchestrated one of the largest tax fraud schemes in our nation’s history. The complexity of this case and the incredible effort by law enforcement to bring those responsible to justice cannot be understated,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I want to remind everyone that this case began when vigilant Oregonians notified the IRS when fraudulently tax returns were filed in their names. It only takes one tip to make a difference and bring down a complex criminal organization.”
“IRS-CI vigorously investigates criminals who band together to take advantage of our tax system. Today’s sentencing of Emmanuel Kazeem sends a strong message to those who seek to rob U.S. citizens of their hard earned tax dollars,” said Acting Special Agent in Charge, Brian Payne.
According to court documents and evidence presented at trial, in May 2013, a victim in Medford, Oregon notified the IRS that false federal and Oregon state tax returns were filed electronically using her and her husband’s personal identifying information (PII) including social security numbers and dates of birth.
An IRS investigation led to search warrants of residences in Illinois, Maryland, and Georgia and to numerous email and instant messenger accounts used by Kazeem and other co-conspirators. At a Chicago residence, agents seized approximately 150 prepaid debit cards and $50,000 in money orders. In Maryland and Georgia, agents seized more than 50 electronic devices, 40 money orders in amounts exceeding $29,000, $14,000 in cash and numerous prepaid debit cards containing over $12,000 in fraudulent tax refunds. The search warrants helped agents identify Kazeem as the leader and mastermind of the scheme.
The scheme resulted in the conspirators possessing stolen PII of more than 259,000 victims. Kazeem purchased more than 91,000 identities from a Vietnamese hacker that originated from an Oregon company’s private database. The company provided pre-employment and volunteer background checks for thousands of clients. Kazeem divided the identities into batches and shared them with other co-conspirators. They were in turn used to file fraudulent tax returns between 2012 and 2015.
In carrying out the scheme, Kazeem trained and directed his co-conspirators including his younger brother, Michael Oluwasegun Kazeem, to use stolen PII to obtain thousands of electronic filing PINs to bypass IRS authentication procedures. They acquired over 19,500 E-File PINS during the course of the conspiracy. Kazeem also used taxpayers’ PII to gain unauthorized access into many taxpayers’ IRS transcripts, which contain sensitive personal financial information. Conspirators also used pre-paid debit cards with the victims’ stolen identities to receive direct electronic tax refund deposits from the IRS.
In total, Kazeem was linked to 10,139 fraudulent federal tax returns attempting to get over $91 million dollars in refunds and successfully receiving over $11.6 million dollars. Refunds were withdrawn from the debit cards and at least 2,000 wire transfers totaling over $2.1 million dollars were sent to Nigeria. Over 700 of those wire transfers, totaling more than $690,000, were directly linked to Kazeem.
Kazeem used the conspiracy windfall to place a nearly $200,000 down payment on a newly constructed house and to purchase a $175,000 townhouse, both in Maryland. His average monthly credit card payment during 2012 to 2015 was over $8,300. Kazeem also attempted to use his ill-gotten funds to develop a $6 million dollar, 4-star hotel in Lagos, Nigeria.
In May 2015, Kazeem transferred the townhouse to his sister in Nigeria for $10 and included her on the deed to his Maryland residence, also for $10. He was arrested one day later.
IRS agents determined Kazeem had no verifiable sources of income between 2012 and 2015. In order to disguise the source of the fraudulent refunds, he listed sources of income from bogus employers in reports to both the IRS and immigration authorities. After entering the United States on a student visa from Nigeria, Kazeem engaged in marriage fraud to evade immigration laws. In April 2014, while leading the tax fraud scheme, he filed for naturalization under the Immigration and Nationality Act. Based on the false information provided to U.S. Citizenship and Immigration Services, he was approved. The same year he personally participated in filing over 1,445 fraudulent federal tax returns and received over $3,385,000 from returns paid out by the IRS.
Kazeem was convicted by a federal jury on 19 counts, including mail and wire fraud, aggravated identity theft and conspiracy to commit mail and wire fraud, in Medford on August 4, 2017. Five other co-conspirators, Oluwaseunara Osanyinbi, Oluwatobi Dehinbo, Lateef Animawun, Oluwamuyiwa Olawoye and Michael Kazeem, previously received federal prison sentences for their roles in the same conspiracy.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and Homeland Security Investigations with support provided by the Department of Treasury, Inspector General for Tax Administration, the U.S. State Department, and the Oregon Department of Revenue Policy and Systems Unit. The case is being prosecuted by Byron Chatfield and Gavin Bruce, Assistant U.S. Attorneys for the District of Oregon.
Seattle Man Pleads Guilty to Fraud Conspiracy Involving Former Oregon Department of Energy EmployeeRead the Press Release
PORTLAND, Ore. – Martin J. Shain, 61, of Seattle, Washington, pleaded guilty today to one count each of conspiracy to defraud the U.S. and tax evasion.
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 faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release on each charge. He will be sentenced on September 20, 2018 before U.S. District Court Judge Robert E. Jones.
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.
Portland Couple Accused of Interstate Distribution of Marijuana and Firearms CrimesRead the Press Release
PORTLAND, Ore. – Isaiah Lee Holt, 30, and Marjorie Livingston, 37, residents of Portland, were charged today in a five-count indictment alleging the couple engaged in a conspiracy to distribute marijuana and illegally purchased and possessed firearms.
Holt is charged with one count each of conspiracy to distribute and possess with intent to distribute marijuana, possession with intent to distribute marijuana, possession with intent to distribute cocaine, and felon in possession of a firearm.
Holt made an initial appearance today in federal court before U.S. Magistrate Judge Paul Papak. He will appear at an arraignment and detention hearing on June 21, 2018.
Livingston is charged with one count of conspiracy to distribute and possess with intent to distribute marijuana and one count of making false statements during the purchase of a firearm. She is expected to make her first appearance before a federal magistrate judge on or before June 22, 2018.
According to court documents, in February 2018, Livingston is alleged to have illegally purchased a firearm for Holt, a convicted felon, at a licensed federal firearms dealer located in Portland.
ATF agents obtained a search warrant on Holt and Livingston’s NE Portland residence. On April 4, 2018, while surveilling Holt and the residence, agents contacted Holt and conducted a search of his person. Holt possessed two cell phones, two bundles of cash, two sets of keys, and seven small baggies of cocaine weighing approximately 11.5 grams.
Later the same day, agents conducted a search of the residence where they found materials consistent with drug trafficking including digital scales, small baggies, and Inositol, an agent commonly used for “cutting” cocaine. Subsequent searches of the residence revealed a locked safe containing $46,100 in cash, two large plastic totes containing approximately 14 pounds of marijuana, U.S. Postal Service mailing labels, a heat sealer and food saver bags. Agents also found a Ruger AR-556 rifle, a Taurus 9mm pistol and a loaded M&P Shield .40 caliber firearm with an attached Crimson Trace laser.
Searches conducted of Holt and Livingston’s phones revealed numerous text and picture messages referencing marijuana and bank deposits. Messages were exchanged with phone numbers in North Carolina, Georgia, Texas and Florida. These messages included photos of bulk marijuana, shipping receipts, and bank deposit receipts.
An indictment is only an accusation of a crime; defendants are presumed innocent unless and until proven guilty.
Former Oregon State University Student Charged for Threatening Campus ShootingRead the Press Release
EUGENE. Ore. – Christopher Adam Strahan, 22, a resident of Corvallis, Oregon, was indicted today for threatening a campus shooting at Oregon State University (OSU).
The indictment alleges Strahan threatened to shoot classmates at OSU in a series of tweets on February 27, 2018. He is charged with a single count of making threatening communications in violation of 18 U.S.C. § 875.
Strahan was previously detained as a flight risk and danger to the community when he made his initial appearance in federal court on a criminal complaint on March 27, 2018. Strahan will be arraigned on the indictment on June 27, 2018 before U.S. Magistrate Judge Jolie A. Russo.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who witnesses imminent threats of violence in any form made via internet or another means should call 9-1-1 immediately. Non-emergency tips can be submitted by contacting the FBI’s Portland Field Office at (503) 224-4181 or visiting the SafeOregon website at www.safeoregon.com.
U.S. Attorney Statement on Joint Dismissal of Springfield Veterans Affairs CaseRead the Press Release
PORTLAND, Ore. – Today, the U.S. Attorney’s Office and the U.S. Department of Veterans Affairs (VA) announced that a joint stipulation of dismissal has been reached with Springfield, Oregon veteran Michael Williamson.
Mr. Williamson is a U.S. Air Force Veteran with a 100% disability rating due to his diagnosis of amyotrophic lateral sclerosis (“ALS”). The VA has contracted for Mr. Williamson’s in-home care for 19 years. Unfortunately, late last year his contracted provider abruptly submitted a 90-day notice to discontinue his care, citing safety concerns. After Mr. Williamson filed suit, the VA in coordination with the U.S. Attorney’s Office worked collaboratively with Mr. Williamson and his attorneys from Disability Rights Oregon, to find additional options for in-home providers that could meet the high level of care needed in this case.
“We are pleased to announce that the VA and Mr. Williamson have reached a joint agreement to dismiss this case,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The parties have worked hard to reach consensus on this matter. He is an honored veteran and deserving of thoughtful and attentive care.”
“I’m pleased we were able to achieve a successful outcome that honored our veteran and his family’s wishes while also providing a safe environment for his care,” said David Whitmer, Interim Medical Center Director, Roseburg VA Healthcare System. “Because of the complex care needed by an ALS patient, this took some time to negotiate and ensure a home based solution that could meet all of the requirements.”
Deputy Attorney General Recognizes Oregon Appellate ChiefRead the Press Release
WASHINGTON – Kelly Zusman, Appellate Unit Chief for the U.S. Attorney’s Office in the District of Oregon, was one of 162 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorney’s (EOUSA) Director James Crowell, IV at the 34th Director’s Awards Ceremony today in Washington, D.C.
The District of Oregon was one of 35 districts represented at the ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In addressing the award recipients and guests, Deputy Attorney General Rod Rosenstein said, "Today’s honorees earned the esteem of their colleagues. But most importantly, they earned the gratitude of our fellow citizens — the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work."
Ms. Zusman was recognized for her outstanding performance in representing the U.S. before the U.S. Court of Appeals for the Ninth Circuit in U.S. v. Mohamud.
On November 26, 2010, Mohamed Mohamud flipped a switch believing it would detonate a bomb planted at the holiday tree lighting ceremony in downtown Portland, Oregon. Fortunately, there was no bomb as Mohamud was the subject of an FBI sting. A jury convicted Mohamud of attempting to detonate a weapon of mass destruction. Litigation was extensive and several novel and complex issues were raised on appeal.
Most significantly, the defendant challenged the constitutionality of the Foreign Intelligence Surveillance Amendment Act (FAA). The government’s briefing involved over 300 pages of classified and unclassified submissions and a 30,000 page record. After extensive preparation, including moots before the Criminal Division and the National Security Division, Ms. Zusman argued the case in July 2016. The conviction and sentence were later affirmed and the FAA found to be constitutional. The ruling was a significant victory for national security.
"Kelly’s dedicated service to the District of Oregon and the United States is beyond reproach. She’s nationally recognized for her appellate expertise and locally cherished for her leadership, unwavering support of coworkers, and persistent can-do attitude," said Billy J. Williams, U.S. Attorney for the District of Oregon.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Oregon Woman Pleads Guilty for Role in Forced Labor and Visa Fraud Scheme Involving Thai Restaurant WorkersRead the Press Release
WASHINGTON – Tanya Jumroon, also known as Thunyarax Phatanakit Jumroon, 59, of Beaverton, Oregon, and a naturalized citizen originally from Thailand, pleaded guilty today in a U.S. District Court in Portland, Oregon, to financially benefitting from forced labor, visa fraud conspiracy, and filing a false federal income tax return, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Billy J. Williams of the District of Oregon, Special Agent in Charge Renn Cannon of the FBI in Oregon, and Special Agent in Charge Darrell Waldon of Internal Revenue Service (IRS) Criminal Investigation’s Seattle Field Office. Jumroon waived indictment by a federal grand jury and pleaded guilty to an information filed by the United States Attorney’s Office and the Civil Rights Division.
According to the defendant’s plea agreement, admissions in court, and other court documents, between 2011 and 2014, the defendant, her then-husband, Paul Jumroon, and other associates fraudulently obtained E-2 visas to bring Thai nationals into the United States to provide cheap labor at two restaurants located in Lake Oswego, Oregon, and Ridgefield, Washington. The restaurants were owned and operated by the defendant and Jumroon at the time, but have since been sold and are under new ownership.
Paul Jumroon used the fraudulently obtained E-2 visas to entice four forced labor victims to come to the United States from Thailand. After the victims arrived, Jumroon used inflated travel expenses, debt manipulation, threats of deportation, serious financial and reputational harm, verbal abuse, and control over identification documents, among other means, to compel them to work 12 hours a day, six to seven days a week, for minimal pay at the restaurants he co-owned and operated with the defendant. The defendant witnessed Paul Jumroon’s mistreatment of two of the victims, and she benefitted financially from the victims’ forced labor at the restaurants. As part of the defendant’s guilty plea, she agreed to pay the four victims a combined $131,391.95 in restitution for their unpaid labor in connection with the forced labor scheme.
The defendant further admitted to filing multiple false tax returns with the IRS by failing to report cash income earned from the restaurants between 2012 and 2015. As part of the plea agreement, the defendant agreed to pay tax due and owing in the amount of $120,384 to the IRS.
“The Justice Department remains committed to combatting human trafficking, holding those who choose to exploit vulnerable individuals accountable, punishing those who profit from these crimes, and securing restitution for exploited victims” said Acting Assistant Attorney General Gore of the Civil Rights Division. “Today’s guilty plea exemplifies the hard work of the Civil Rights Division, in coordination with the U.S. Attorney’s Office, to honor that commitment.”
“Human trafficking schemes are seldom carried out by a single person. Tanya Jumroon profited off of her then-husband’s actions while turning a blind eye,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “In too many of these cases, we later learn that someone close by could have taken action to stop the abuse and intimidation of others and did not. I implore all Oregonians to remain vigilant and watch for the signs of human trafficking in their communities. Your attention and perceptiveness could help a victim in need.”
"These victims believed the Jumroons were offering them a chance at a better life. When they arrived in the U.S., however, they faced false promises, forced labor and abuse. Victims such as these often live in the shadows and find it difficult to get the help they need. We are grateful for the community members who were able to bring this case to our attention so we could work together to bring an end to the physical, psychological and financial exploitation," said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
“Forced labor schemes, such as the one employed by the Jumroons, are deplorable crimes that have no place in today’s society,” said Darrell Waldon, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “Falsely reporting income and expenses associated with such schemes will continue to be vigorously investigated by IRS-CI Special Agents.”
The defendant faces a maximum of 20 years in prison for financially benefitting from forced labor, five years in prison for visa fraud conspiracy, and three years in prison for filing a false tax return. Her sentencing is scheduled for Oct. 24 before United States District Judge Anna J. Brown.
Co-defendant Paul Jumroon previously pleaded guilty on Feb. 14 to forced labor, visa fraud conspiracy, and filing a false federal income tax return. His sentencing is scheduled for Oct. 18, also before Judge Brown.
Attorney General Sessions issued a proclamation on January 31 commemorating January as National Slavery and Human Trafficking Prevention Month.
The District of Oregon is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
This prosecution is the result of the joint investigation by the Federal Bureau of Investigation, Homeland Security Investigations, Internal Revenue Service Criminal Investigation and Department of State’s Diplomatic Security Service, with assistance from the Department of Labor’s Wage and Hour Division and Portland Police Bureau. The case is being prosecuted by Assistant U.S. Attorneys Hannah Horsley and Scott Bradford of the District of Oregon, and Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Man Sentenced to 78 Months in Federal Prison for Sex Trafficking and Illegal Firearm PossessionRead the Press Release
EUGENE, Ore. – Anthony Ballard Jones, 36, was sentenced today to 78 months in federal prison for the interstate transport of individuals for prostitution and being a felon in possession of a firearm. Jones will serve a five year term of supervised release upon the conclusion of his prison sentence.
According to court documents, Jones transported two adult female victims from Idaho to Oregon so they could engage in commercial sex acts. His first victim had been with Jones for approximately eight months prior to Jones’ arrest, and Jones met his second victim in Boise, Idaho, in March 2015. She was homeless at the time, and Jones offered her drugs and convinced her that prostitution could make her rich. After originally telling Jones that she did not want to engage in prostitution, she later agreed to do so.
Jones would talk menacingly about “regulating” his victims and keeping them “in check” in order to intimidate them. On March 7, 2015, at a motel in Eugene, a planned commercial sex act fell apart when the second victim decided not to participate. The John became upset, started tearing at the second victim’s clothing, and threatened to return with a gun. After this incident, Jones threatened to leave the second victim stranded in Oregon if she did not continue to engage in prostitution. The police investigated the disturbance at the motel and subsequently contacted Jones. Jones, a convicted felon, was found in possession of a pistol and was arrested.
Jones previously pleaded guilty to one count each of interstate transport for prostitution and felon in possession of a firearm on Tuesday, November 21, 2017.
This case was investigated by the FBI and Eugene Police Department, and prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Bank of Oswego Executives Sentenced to Federal Prison After Jury Conviction for FraudRead the Press Release
PORTLAND, Ore. – Today in federal court, Dan Heine and Diana Yates were sentenced to 24 and 18 months in prison, respectively, for bank fraud and falsifying bank entries, reports, and transactions.
A jury convicted Heine and Yates, former executives at the Bank of Oswego in Lake Oswego, Oregon, of one count each of conspiracy to commit bank fraud and twelve counts each of falsifying bank entries, reports, and transactions in a trial ending in November 2017.
“Dan Heine and Diane Yates orchestrated one of the largest and most complex bank fraud schemes in Oregon’s history. Their selfish acts of greed are deplorable,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “While we urged the court to impose longer sentences, these sentences still serve as a warning to bank executives and others entrusted with fiduciary responsibilities. We will continue to work with federal investigators to protect investors and ensure the trustworthiness of our financial institutions.”
“For centuries, the American banking system has served as the bedrock of the U.S. economy. Honest bankers are critical to our financial system. By addressing lies and conspiracies at the Bank of Oswego, the FBI and Department of Justice have helped re-establish the integrity of the financial system we all rely on,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
Dan Heine, a co-founder of the bank, was president, Chief Executive Officer (CEO) and member of the board of directors from September 2004 through September 2014. Diana Yates was executive vice president, Chief Financial Officer (CFO), and secretary of the board of directors from 2004 through March 2012. During the conspiracy Heine and Yates concealed the true financial condition of the bank to regulators and the board of directors by falsely reporting that the bank had title to a property in a straw buyer transaction, falsely reporting that delinquent loans were paid, and falsely reporting the sale of bank owned property.
A forfeiture and restitution hearing has been scheduled for August 7, 2018. The case was investigated by the FBI and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) and prosecuted by Claire Fay, Quinn Harrington, and Michelle Kerin, Assistant U.S. Attorneys for the District of Oregon.
Nine Corvallis-Area Residents Charged with Perpetrating Credit Card Fraud Funding Marijuana BusinessRead the Press Release
EUGENE, Ore. – Nine defendants residing in and around Corvallis, Oregon face conspiracy charges related to a credit card “bust-out” fraud scheme and an interstate marijuana distribution operation funded by the fraud.
A credit card “bust-out” is a fraud scheme that begins with perpetrators obtaining credit cards and accumulating large balances. Payments are then made from co-conspirator bank accounts, reducing the credit card balances and allowing for additional purchases. After numerous purchases and payments are made, a co-conspirator would report the payments as unauthorized to their banks. Banks then seek and obtain reimbursement from the credit card companies and deposit those funds back into the co-conspirator’s bank accounts. No further payments are made on the credit cards, resulting in losses to those institutions that often exceed a card’s spending limit.
As alleged in the complaint, conspirators opened numerous credit cards, defrauding financial institutions of over $1 million. Proceeds from the fraud were allegedly used to establish and operate illegal marijuana grows and fund a state-licensed marijuana retail business, the Corvallis Cannabis Club located in Corvallis. Some of the marijuana grown in Corvallis is alleged to have been transported and sold outside of Oregon.
Three defendants were arrested today and will make their first appearance before U.S. Magistrate Judge Jolie A. Russo in Eugene on Wednesday, June 13, 2018.
A criminal charge is only an accusation of a crime; defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, Drug Enforcement Administration, and U.S. Postal Inspection Service with the assistance of Oregon State Police and the Corvallis and Philomath Police Departments. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Final Defendant Sentenced for Armed Takeover of Malheur National Wildlife RefugeRead the Press Release
PORTLAND, Ore. – Blaine Cooper aka Stanley Blaine Hicks, 38, of Humboldt, Arizona, was sentenced today to time served in prison for his role in the 41-day armed occupation of the Malheur National Wildlife Refuge beginning in January 2016.
Cooper is the eighteenth and final defendant sentenced for crimes associated with the occupation. Eleven defendants pleaded guilty to felony conspiracy to impede officers of the U.S. Four other defendants were convicted of felonies by a federal jury in a trial ending in March 2017. Three additional defendants pleaded guilty to misdemeanor trespassing. Seven defendants, including occupation leaders Ammon and Ryan Bundy, were acquitted of all charges in a trial ending in November 2016.
“I firmly believe that our communities and state are stronger because of our shared experience responding to and litigating the armed occupation of the Malheur National Wildlife Refuge,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I want to sincerely thank the countless federal, state, local, and tribal law enforcement officials that played a role in bringing these eighteen defendants to justice. Our message is clear,” continued Williams, “taking up arms because you don’t like how things are done will never be accepted as a lawful way to protest here in Oregon or elsewhere.”
“The U.S. Constitution granted Americans both rights and responsibilities. With state, local and tribal partners, the FBI responded to this armed takeover by defending the rule of law and protecting the people of Harney County. We stand with Oregonians committed to finding peaceful solutions and will always work to protect our communities from violent conflict,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
Beginning on January 2, 2016, Ammon Bundy, Ryan Bundy, and several dozen followers, seized the Malheur National Wildlife Refuge near Burns, Oregon in Harney County. For forty-one days, the armed occupiers prevented federal officials from performing their official duties at the refuge by force, threats, and intimidation. The Bundys and several other occupiers, were arrested on January 26, 2016 on U.S. Highway 395 near Burns en route to a community meeting in John Day, Oregon. The occupation officially ended on February 11, 2016 when the last four occupiers turned themselves in to federal authorities.
Summary of sentences imposed:
Dylan Anderson, 37, of Provo, Utah, was sentenced to one year of probation and $1,000 restitution after pleading guilty to one count of misdemeanor trespassing.
Sandra Anderson, 50, of Riggins, Idaho, was sentenced to one year of probation and $1,000 restitution after pleading guilty to one count of misdemeanor trespassing.
Sean Anderson, 50, of Riggins, Idaho, was sentenced to one year of probation and $1,000 restitution after pleading guilty to one count of misdemeanor trespassing.
Jason Blomgren, 44, of North Carolina, was sentenced to two years’ probation and $3,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Brian Cavalier, 47, of Bunkerville, Nevada, was sentenced to time served in prison, two years’ supervised release, and $7,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Blaine Cooper, 38, of Humboldt, Arizona was sentenced to time served in prison and $7,000 restitution after pleading guilty to one count of conspiracy to impede officers of the U.S.
Travis Cox, 23, of Bend, Oregon, was sentenced to two years’ probation and $3,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Duane Ehmer, 47, of Irrigon, Oregon, was sentenced to one year and one day in prison, three years’ supervised release, and $10,000 restitution after being found guilty on one count of depredation of government property and one count each of misdemeanor trespassing and tampering with vehicles and equipment.
Eric Flores, 24, of Tulalip, Washington, was sentenced to two years’ probation with home detention after pleading guilty to one count of conspiracy to impede officers of the U.S.
Wesley Kjar, 34, of Manti, Utah, was sentenced to 250 hours of community service, two years’ probation, and $3,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Corey Lequieu, 47, of Fallon, Utah, was sentenced to 30 months in prison and three years’ supervised release after pleading guilty to one count of conspiracy to impede officers of the U.S.
Joseph O’Shaughnessy, 46, of Cottonwood, Arizona, was sentenced to time served in prison, two years’ supervised release, and $7,000 restitution after pleading guilty to one count of conspiracy to impede officers of the U.S.
Jason Patrick, 46, of Bonaire, Georgia, was sentenced to 21 months in prison, three years’ supervised release, and $10,000 restitution after being found guilty on one count of conspiracy to impede officers of the U.S. and one count each of misdemeanor trespassing, tampering with vehicles and equipment, and destruction and removal of property.
Ryan Payne, 34, of Anaconda, Montana, was sentenced to 37 months in prison, three years’ supervised release, and $10,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
John Ritzheimer, 34, of Peoria, Arizona, was sentenced to one year and one day in prison, one year in a residential reentry center, three years’ supervised release, and $10,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Jake Ryan, 29, of Plains, Montana, was sentenced to 12 months in prison, three years’ supervised release, and $10,000 restitution after being found guilty on one count of depredation of government property and one count each of misdemeanor trespassing and tampering with vehicles and equipment.
Geoffrey Stanek, 28, of Lafayette, Oregon, was sentenced to two years’ probation after pleading guilty to one count of conspiracy to impede officers of the U.S.
Darryl Thorn, 33, of Monument, Oregon, was sentenced to 18 months in prison and $5,000 restitution after being found guilty of one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility and one count each of misdemeanor trespassing, tampering with vehicles and equipment, and destruction and removal of property.
The case was investigated by the FBI and prosecuted by Geoffrey Barrow, Ethan Knight, and Craig Gabriel, Assistant U.S. Attorneys for the District of Oregon.
Oregon Man Sentenced to More Than 12 Years in Federal Prison for Assault and Firearms ChargesRead the Press Release
PORTLAND, Ore. – Nicholas James Cantrell, 28, was sentenced today to 151 months in federal prison for unlawfully possessing a firearm and assaulting a Multnomah County Sheriff deputy while being held on a federal detainer at the Multnomah County Detention Center (MCDC).
According to court documents, Cantrell was arrested and booked into MCDC after fleeing Gresham Police and abandoning a bag containing a firearm and a digital scale. While in custody for the federal firearm charge, Cantrell assaulted a jail deputy by repeatedly punching, choking, and slamming the deputy’s head against the floor until the deputy lost consciousness.
Cantrell previously pleaded guilty to one count each of being a felon in possession of a firearm and assault on certain officers or employees on February 13, 2018.
The case was jointly investigated by the United States Marshals Service, Alcohol, Tobacco, Firearms, and Explosives (ATF), Gresham Police Department, and the Multnomah County Sheriff’s Office and prosecuted by Jane Shoemaker and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon.
Dyno-Nobel, Inc. Ordered to Pay $250,000 for Failing to Notify Federal Authorities of Anhydrous Ammonia DischargesRead the Press Release
PORTLAND, Ore. – Today in federal court, U.S. District Judge Michael H. Simon ordered Dyno Nobel, Inc., the owner of a urea plant near St. Helens, Oregon, to pay $250,000 for violating section 103(b) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), following a series of large-scale ammonia discharges in July and August 2015. Dyno Nobel will also serve a two-year term of probation for the class-E felony.
According to Dyno Nobel’s plea agreement with the government, the company’s St. Helens plant discharged more than six tons of anhydrous ammonia vapor—a hazardous substance—into the air over the course of a three-day period starting on July 30, 2015. A subsequent investigation revealed that several failed attempts to restart the urea plant had caused a series of massive discharges from the facility, triggering numerous complaints of foul odors, eye irritation, and difficulty breathing from citizens of nearby Columbia City, Oregon.
Although Dyno Nobel personnel knew that excessive ammonia emissions were occurring, no effort was made to alert the authorities at the National Response Center until August 7, 2015—more than a week after the first discharge. Federal law requires such reports to be made “immediately.”
Dyno Nobel, Inc. is a Delaware corporation and wholly owned subsidiary of IPL Group. The company previously pleaded guilty to the violation on February 23, 2018.
This case was investigated by EPA Criminal Investigations; it was prosecuted by Assistant U.S. Attorney Ryan W. Bounds and Special Assistant U.S. Attorney Karla Gebel Perrin.
Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
PORTLAND, Ore. – Attorney General Jeff Sessions and Billy J. Williams, U.S. Attorney for the District of Oregon, announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. The District of Oregon will receive one prosecutor in each of the three targeted areas. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
“Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
“The mission of the U.S. Attorney’s Office is to pursue justice and ensure public safety. Adding three new prosecutors to our staff will help us extend the reach of our mission across the state,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Reducing violent crime, enforcing immigration law, and attacking health care fraud that fuels the opioid epidemic are central to achieving our mission. Expanding our staff in each of these priority areas will have an immediate, positive impact on the lives of Oregonians.”
Warm Springs Woman Sentenced to 13 Years in Federal Prison for Assault with Intent to Commit MurderRead the Press Release
PORTLAND, Ore. – Rhyan Leigh Smith, 26, of Warm Springs, Oregon, was sentenced today to 13 years in federal prison for assault with intent to commit murder of two family members and using a firearm in furtherance of a crime of violence.
“The defendant’s violent conduct towards family members is inexplicable and indefensible,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “This kind of violence is an attack on the victims and the members of the Warm Springs community. Let us hope that the sentence imposed brings some measure of solace and closure to the victims of these crimes, and healing to the community.”
According to court documents, in the early morning hours of March 16, 2016, Smith returned to a house she had periodically resided in with five of her family members. At approximately 8:00 a.m., Smith retrieved a pistol she had taken from the owner without permission. Smith conversed briefly with a family member in doorway of the family member’s bedroom before shooting him five times. A second family member heard the gunshots and tried to stop Smith, but Smith shot her multiple times. Both victims suffered life-threatening injuries.
The Warm Springs Police Department and the FBI responded to the house and found Smith hiding in sagebrush near the house with an AR-15 rifle. Investigators later found a camouflage rifle bag with multiple AR-15 magazines, loose ammunition and a 9mm pistol in a vehicle at the house.
Smith previously pleaded guilty to two counts of assault with the intent to commit murder and one count of possession of a firearm in furtherance of a crime of violence on Wednesday, February 7, 2018.
This case was investigated by the FBI and the Warm Springs Police Department and prosecuted by William Narus and Craig Gabriel, Assistant U.S. Attorneys for the District of Oregon.
On March 3, 1994, the FBI initiated “Operation Safe Trails” with the Navajo Department of Law Enforcement in Flagstaff, Arizona. The operation, which would later evolve into the Safe Trails Task Force (STTF) Program, unites FBI and other federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTFs allow participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs, and gaming violations.
Southern California Drug Trafficker Sentenced to 17 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – Francisco Nuno-Urenda, 41, of Los Angeles, California, was sentenced today to 17 years in federal prison for his role in a drug trafficking scheme that brought distribution quantities of methamphetamine, marijuana, cocaine, and heroin into Oregon. Nuno-Urenda was also ordered to pay $75,000 and will be on supervised release for five years at the conclusion of his prison sentenced.
According to court documents, Nuno-Urenda was a drug trafficker based in California who sourced drugs from Mexico and shipped them throughout the U.S. He supplied numerous drug trafficking organizations including a network that operated in the Portland metropolitan area. Nuno-Urenda was indicted along with 15 other codefendants, most of whom were lower level conspirators. Investigators determined that Nuno-Urenda maintained contact with approximately 15 suppliers in Mexico who were connected to two or three different Mexican drug cartels.
Nuno-Urenda previously pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine on Thursday, February 15, 2018.
This case was investigated by the FBI and was prosecuted by Kemp L. Strickland, Assistant U.S. Attorney for the District of Oregon.
Portland Man Sentenced to Eight Years in Federal Prison for Dealing HeroinRead the Press Release
Downloadable file: SENTENCING-Ruggles-Final.pdf
PORTLAND, Ore. –Joshua Paul Ruggles, 34, of Portland, was sentenced today to eight years in federal prison for possession with intent to distribute heroin.
According to court documents, on March 11, 2017, a Portland Police Bureau (PPB) officer responded to a report of a car prowler at the Pine Point Apartments on Southeast Pine Street in Portland. The 9-1-1 caller reported seeing a man who was not a resident of the complex rummaging through a minivan with a flashlight. When the officer arrived on scene, he observed a minivan with two male suspects inside. As one of the suspects, later identified as Ruggles, began to walk away from the minivan, the officer instructed him to stop and talk. Ruggles replied that he hadn’t done anything and continued walking away. The officer observed Ruggles holding an unknown dark object and reaching for his waistband.
The officer detained Ruggles and asked if he had any weapons on him. Ruggles declined. After finding brass knuckles on his person, the officer arrested Ruggles for carrying a concealed weapon. During a subsequent search, officers found $856 in cash in Ruggle’s right front pocket and several baggies of methamphetamine and heroin labeled for sale, a digital scale with drug residue, and a small loaded handgun in his groin area.
Ruggles previously pleaded guilty to one count of possession with intent to distribute heroin on December 14, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with assistance from PPB. It was prosecuted by Leah K. Bolstad, Assistant U.S. Attorney for the District of Oregon.
Portland Man Sentenced to 220 Months in Federal Prison for Distribution of Methamphetamine (Photo)Read the Press Release
Downloadable file: Backpack Contents
Downloadable file: Backpack
Downloadable file: SENTENCING-Carpenter-Final-Updated.pdfPORTLAND, Ore. – On May 21, 2018, Jeramy Theodore Carpenter, 35, of Portland, was sentenced to 220 months in federal prison for conspiracy to possess with intent to distribute methamphetamine.
According to court documents, on September 15, 2016, Carpenter and a co-conspirator arranged to sell two ounces of methamphetamine for $800. With Carpenter hiding in the back seat of a sport-utility vehicle, the co-conspirator drove to an agreed upon location to meet their buyer. The buyer entered the vehicle and sat in the front passenger seat. Carpenter raised up from the back seat and struck the buyer multiple times in the back of the head with a firearm, asking “Where’s my money?” After further interrogation, the victim persuaded Carpenter and the co-conspirator to drop him off to retrieve the money from a safe deposit box. The victim escaped and called police.
Multnomah County Sheriff deputies applied for and obtained a search warrant to search Carpenter’s garage and the vehicles associated with him and his co-conspirator. While searching the garage, they discovered plastic wrap from a used or discarded kilogram of methamphetamine, drug records, a money counter, and a backpack containing Carpenter’s wallet, identification, and prescription medications. Carpenter’s backpack also contained over 1,100 grams of methamphetamine, a digital scale, two firearms, three pairs of brass knuckles, and $1,000 in cash. Deputies found a third firearm in Carpenter’s vehicle and fourth in his spouse’s vehicle.
Carpenter previously pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine on January 22, 2018.
This case was investigated by the Multnomah County Sheriff’s Office Special Investigation Unit (SIU) and prosecuted by Leah K. Bolstad, Assistant U.S. Attorney for the District of Oregon.
Oregon Missionary Found Guilty of Sexually Abusing Six Cambodian Children at OrphanageRead the Press Release
A Coos Bay, Oregon man, who was a Christian missionary running an orphanage in Phnom Penh, Cambodia, was found guilty by a federal jury of six counts of engaging in illicit sexual conduct in a foreign place, traveling with the intent to engage in illicit sexual conduct and aggravated sexual abuse.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Billy J. Williams of the District of Oregon, and Special Agent in Charge Loren G. Cannon of the FBI, Portland Division, made the announcement after the verdict was accepted by U.S. District Judge Michael J. McShane of the District of Oregon.
Daniel Stephen Johnson, 40, was charged in December 2014 after serving a one-year sentence in Cambodia for sexually abusing some of the same victims. According to evidence at trial, Johnson was a Christian missionary who traveled between the United States and Cambodia, along with other countries in Southeast Asia. He started an orphanage in Phnom Penh, Cambodia, that housed several Cambodian children. Over a period of years beginning in 2005, Johnson engaged in sexual abuse and attempted to sexually abuse at least nine children who resided at his orphanage. The victims ranged in age from eight to 17-years-old. The sexual abuse continued until December 2013 when Johnson was arrested by the Cambodian National Police. Based on disclosures made by children at the orphanage, Cambodian officials charged Johnson and detained him pending trial. In May 2014, Johnson was convicted by a Cambodian judge of performing indecent acts on one or more children at the orphanage and sentenced to one year in prison. Following his release from prison, Johnson was escorted back to the United States by the FBI. He will be sentenced on Aug. 22 before U.S. District Court Judge Michael J. McShane.
“While Stephen Johnson held himself out as a selfless missionary helping orphans in Cambodia, in reality he exploited that cover to sexually abuse the children entrusted to his care,” said Acting Assistant Attorney General John Cronan. “Today’s conviction is a testament both to the courage of the victims, who traveled to the United States to provide critical testimony against their abuser, and to the steadfast commitment of our prosecutors and law enforcement partners to seeing that Johnson be held to account for his terrible crimes.”
“The despicable nature of this defendant’s conduct is beyond understanding,” said U.S. Attorney Williams. “Whether you are abusing children in this country or abroad, you will be pursued and held accountable in a court of law. The fact that this defendant abused children under the guise of being a missionary and orphanage operator is appalling.”
“Daniel Johnson’s promises of charity and a better life were nothing more than lies as he dragged these children into his dark world of abuse,” said FBI Special Agent in Charge Cannon. “This case should serve as warning to those predators who believe they can hide their crimes – whether here at home or half-a-world-away. We will always stand with the victims, and we will always work to bring justice in their names.”
According to evidence presented at trial, while in custody awaiting trial, Johnson made multiple efforts to tamper with witnesses and obstruct justice. Johnson contacted his victims online, encouraging them to lie and offering money and gifts. One message, sent via his relative’s Facebook account to an adult in Cambodia, discussed visiting a victim’s family and encouraging them to convince the victim to retract their statement, potentially in exchange for $10,000. Another message explains the need for a victim to say they were under duress and “pushed by police” to thumbprint a document.
The FBI investigated the case. Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Jeffrey S. Sweet and Ravi Sinha of the District of Oregon prosecuted the case with assistance from Assistant U.S. Attorney Amy E. Potter for the District of Oregon. The Criminal Division’s Office of International Affairs also provided assistance in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oregon Man Found Guilty of Sexually Abusing Children at Orphanage in CambodiaRead the Press Release
EUGENE, Ore. – A federal jury found Daniel Stephen Johnson, 40, of Coos Bay, Oregon, guilty today of repeatedly sexually abusing children who lived at an orphanage operated by the defendant in Cambodia. The verdict marks the end of the second foreign sexual exploitation trial held in the District of Oregon.
Johnson was convicted on six counts of engaging in illicit sexual conduct in a foreign place and one count each of travel with intent to engage in illicit sexual conduct and aggravated sexual assault with children.
“The despicable nature of this defendant’s conduct is beyond understanding. Whether you are abusing children in this country or abroad, you will be pursued and held accountable in a court of law,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The fact that this defendant abused children under the guise of being a missionary and orphanage operator is appalling.”
“Daniel Johnson’s promises of charity and a better life were nothing more than lies as he dragged these children into his dark world of abuse,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “This case should serve as a warning to those predators who believe they can hide their crimes – whether here at home or half-a-world-away. We will always stand with the victims, and we will always work to bring justice in their names.”
According to court documents and information shared during trial, between November 2005 and his arrest in December 2013, Johnson systematically and repeatedly molested children who lived at an unlicensed orphanage he operated in Phnom Penh, Cambodia. To date, nine Cambodian victims—who ranged in age from seven to 18 years old at the time of abuse—have disclosed Johnson’s abuse or attempted abuse.
Victims describe a pattern of molestation that includes, among other things, Johnson making them perform oral sex on him and anally raping them. Multiple victims said they were, on numerous occasions, awoken to Johnson abusing them. Following the abuse, Johnson would sometimes provide his impoverished victims with small amounts of money or food. On one occasion, Johnson gave a victim the equivalent of $2.50 in Cambodian currency.
In 2013, a warrant was issued for Johnson’s arrest on an unrelated case by officials in Lincoln County, Oregon. Local law enforcement officers worked with the FBI to locate Johnson overseas. The FBI in turn worked with the U.S. Department of State to revoke Johnson’s passport based on the Oregon warrant. Through the work of the FBI, Action Pour Les Enfants, a non-governmental organization dedicated to ending child sexual abuse and exploitation in Cambodia, and the Cambodian National Police (CNP), Johnson was located in Phnom Penh.
On December 9, 2013, CNP arrested Johnson. Based on disclosures made by children at the orphanage, Cambodian officials charged Johnson and detained him pending trial. In May 2014, Johnson was convicted by a Cambodian judge of performing indecent acts on one or more children at the orphanage and sentenced to a year in prison. Following his release from prison, Johnson was escorted back to the U.S. by the FBI.
Based on the sexual-abuse allegations against him, the FBI undertook a lengthy investigation of Johnson. During the course of their investigation, agents interviewed more than a dozen children and adults who had resided at the orphanage. Many of the interviews were audio- and video-taped and, in several instances, conducted in Cambodia by trained child-forensic interviewers. Some victims were interviewed multiple times before disclosing Johnson’s abuse.
Johnson was indicted by a federal grand jury in Eugene, Oregon on December 20, 2014 on one count of engaging in illicit sexual conduct in a foreign place. Seven additional charges were added by superseding indictment on May 17, 2017.
While in custody awaiting trial, Johnson made multiple efforts to tamper with witnesses and obstruct justice. Johnson contacted his victims online, encouraging them to lie and offering money and gifts. One message, sent via his relative’s Facebook account to an adult in Cambodia, discussed visiting a victim’s family and encouraging them to convince the victim to retract their statement, potentially in exchange for $10,000. Another message explains the need for a victim to say they were under duress and “pushed by police” to thumbprint a document.
Johnson faces a maximum sentence of life in prison and is subject to a 30 year mandatory minimum. He will be sentenced on Wednesday, August 22, 2018 before U.S. District Court Judge Michael J. McShane.
This case was investigated by the FBI. It was prosecuted by Jeffrey S. Sweet and Ravi Sinha, Assistant U.S. Attorneys for the District of Oregon, and Lauren E. Britsch, Trial Attorney for the Justice Department’s Child Exploitation and Obscenity Section. Amy E. Potter, Assistant U.S. Attorney for the District of Oregon, assisted with the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney's Office Joins in Recognizing National Police Week, May 13-19, 2018Read the Press Release
PORTLAND, Ore. – Attorney General Jeff Sessions and Billy J. Williams, U.S. Attorney for the District of Oregon, recognize the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
“Working with federal, state, local, and tribal law enforcement officers in Oregon is a distinct honor and one of the highlights of my job,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “During National Police Week, we honor the 93 men and women who lost their lives protecting their communities as well as the countless others who continue to serve with unfailing dedication and an unwavering commitment to excellence. Supporting police and fostering strong relationships between our communities and law enforcement is top priority for the U.S. Attorney’s Office.”
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
The names of all 93 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. One District of Oregon officer was added this year: John Edward Lawrence, City of Bend Police Department, End of Watch: December 4, 2014.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
For more information about other National Police Week events, please visit www.policeweek.org.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
Former Lake Oswego Financial Advisor Pleads Guilty to Defrauding InvestorsRead the Press Release
PORTLAND, Ore. – Shayne Kniss, 42, formerly of Lake Oswego, Oregon, pleaded guilty today to one count of wire fraud for defrauding clients of his investment firm, Iris Capital Management Group, LLC (Iris Capital).
“Investment advisors are legally required to act in the best interest of the clients. This defendant did the exact opposite.” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Kniss lied to and took advantage of his clients, many of whom were over 65, to fund his own personal pursuits.”
“Kniss treated these victims - and their savings accounts - like his personal ATM,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “If you - or senior citizens in your family - are considering investments of any kind, make sure you do your research. Only invest with reputable firms and, if the promised returns sound too good to be true, they likely are.”
According to court documents, Kniss founded Iris Capital in October 2010 and offered real estate based investments in several different funds to investors. Through various means, including brochures, private placement memoranda, emails, and personal presentations, Kniss misrepresented how he would manage investor funds.
Between February 2011 and April 2013, 47 people invested approximately $4.3 million in Kniss’s funds. Kniss commingled investor money among the funds, used new investments to make payments to prior investors, and used more than $500,000 for person use, including investing in a retail marijuana enterprise.
Kniss faces a maximum sentence of 20 years in prison, a $250,000 fine or twice the gross financial gains or losses resulting from the offense if greater than $250,000, and three years of supervised release. He will be sentenced on Wednesday, August 22, 2018 before U.S. District Court Judge Michael W. Mosman.
The FBI investigated this case. It is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Two Oregon Men Plead Guilty to Firearms OffensesRead the Press Release
PORTLAND, Ore. – In separate criminal cases, two Oregon men pleaded guilty today in federal court to possessing a firearm in furtherance of a crime of violence or drug trafficking crime in violation of 18 U.S.C. § 924(c).
Jess L. Brockner, 32, pleaded guilty to one count each of possessing a firearm in furtherance of a crime of violence and bank robbery. Christopher J. Fleet, 23, of Portland, pleaded guilty to one count each of possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute heroin.
U.S. v. Brockner
According to court records, on August 30, 2017, three men burglarized a barn in Yamhill County, Oregon, stealing the victim’s vehicle and filling a rented moving truck with the victim’s belongings. Two of the suspects fled in the moving truck and a third in the victim’s vehicle. After Yamhill County Sheriff deputies 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 located 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 faces a maximum sentence of life in prison and is subject to a seven-year mandatory minimum, a $250,000 fine, and up to five years’ supervised release. He will be sentenced on Tuesday, August 14, 2018 before U.S. District Court Judge Michael W. Mosman.
This case is being prosecuted by Benjamin Tolkoff and John Brassell, Assistant U.S. Attorneys for the District of Oregon.
U.S. v. Fleet
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.
Fleet faces a maximum sentence of life in prison and is subject to a five-year mandatory minimum, a $1,000,000 fine, and up to five years’ supervised release. He will be sentenced on Wednesday, September 5, 2018 before U.S. District Court Judge Anna J. Brown.
This case is being prosecuted by Leah K. Bolstad, Assistant U.S. Attorney for the District of Oregon.
Both cases 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.
Fifth Nigerian Co-Conspirator Sentenced to Federal Prison in Nationwide Identity Theft and IRS Tax Fraud SchemeRead the Press Release
EUGENE, Ore. – On April 30, 2018, U.S. District Court Judge Ann Aiken sentenced Oluwamuyiwa Abolad Olawoye, 32, a Nigerian citizen and recent resident of Georgia, to 108 months in federal prison for his role in a conspiracy to commit mail and wire fraud and aggravated identity theft. Olawoye’s sentence includes a two-year mandatory minimum for possessing or using a victim’s identity to commit fraud. He was also ordered to pay more than $3.2 million in restitution and will be subject to deportation when released from prison.
Four other co-conspirators, Oluwaseunara Osanyinbi, Oluwatobi Dehinbo, Lateef Animawun and Michael Kazeem, previously received federal prison sentences for their roles in the same conspiracy. In August 2017, the conspiracy’s leader, Emmanuel Kazeem, was convicted by a federal jury of 19 counts of mail and wire fraud, aggravated identity theft, and conspiracy to commit mail and wire fraud and will be sentenced on May 17, 2018.
IRS agents recovered over 111,000 stolen taxpayer identities from Olawoye’s email and instant messenger accounts. More than 13,000 identities were from an Oregon company’s database that included over 5,500 Oregon residents. Olawoye received the database identities directly from Kazeem and obtained thousands of additional stolen identities from other unknown sources. In total, Olawoye was linked to more than 1,300 fraudulent federal tax returns seeking over $11.5 million. A review of his email account showed he wired over $387,000 in tax refund proceeds overseas.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and Homeland Security Investigations with support provided by the Department of Treasury, Inspector General for Tax Administration, the U.S. State Department, and the Oregon Department of Revenue Policy and Systems Unit. The case is being prosecuted by Byron Chatfield and Gavin Bruce, Assistant U.S. Attorneys for the District of Oregon.
Portland Man Pleads Guilty to Hoax Bomb Threat on MAX TrainRead the Press Release
PORTLAND, Ore. – Wilfredo Reyes, 60, of Portland, pleaded guilty today in federal court to 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 in fact 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 faces a maximum sentence of five years in prison, a $250,000 fine, and three years’ supervised release. He will be sentenced on Tuesday, August 14, 2018 before U.S. District Court Judge Anna J. Brown.
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 is being prosecuted by Hannah Horsley, Assistant U.S. Attorney for the District of Oregon.
Portland Man Pleads Guilty to 17 Counts of Video Voyeurism at Local Daycare FacilityRead the Press Release
PORTLAND, Ore. – On Monday, April 23, 2018, Jay Walter Jaacks, 50, of Portland, pleaded guilty to 17 misdemeanor counts of video voyeurism for placing a concealed video camera in the adult restroom of a Portland daycare facility.
"This defendant’s actions are inexcusable and grossly invaded the privacy of employees and fellow parents at a daycare facility where he took his own children," said Billy J. Williams, U.S. Attorney for the District of Oregon. "I hope this prosecution will deter others from illegally violating the privacy of others for their own personal satisfaction."
"The safety, privacy, and security of everyone working and doing business within our Federal workplaces are paramount to our efforts," said Federal Protective Service Region 10, Deputy Regional Director, Patrick Zitny. "The successful prosecution of this case is a tribute to the efforts and close coordination between the Federal Protective Service and the U.S. Attorney’s Office."
On or about July 29, 2016, Jaacks concealed a video camera in a small cosmetics bag and placed it in the adult restroom of a daycare facility in Portland. The video camera captured 17 adults, both daycare employees and other parents, in various stages of undress. A daycare employee found the camera and immediately notified law enforcement. Law enforcement officials seized the camera before Jaacks could retrieve it.
Jaacks faces a maximum sentence of one year in prison, a $100,000 fine, and one year of supervised release on each count. He will be sentenced on Monday, July 30, 2018 before U.S. District Court Judge Marco A. Hernandez.
The U.S. Department of Homeland Security Federal Protective Service (FPS) investigated this case. It is being prosecuted by Scott Kerin, Assistant U.S. Attorney for the District of Oregon.
Carl Zeiss Vision, Inc. Fined $750,000 for Repeatedly Discharging Hazardous Waste into Public Sewer SystemRead the Press Release
PORTLAND, Ore. – Today in federal court, U.S. District Court Judge Michael H. Simon ordered Carl Zeiss Vision, Inc. to pay $750,000 in criminal fines for repeatedly discharging untreated wastewater from its lens-manufacturing facility in Clackamas, Oregon to the Kellogg Creek Wastewater Treatment Plant.
“The Justice Department will not tolerate any business, corporation, or individual that bypasses federal environmental laws to seek a competitive advantage or to maximize profits,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “We will continue to aggressively prosecute individuals and corporations whose illegal conduct threatens our region’s natural resources and public health.”
“Our laws are designed to keep communities safe and protect our natural resources by requiring companies to take appropriate steps in managing hazardous chemicals,” said Susan Bodine, Assistant Administrator for the Environmental Protection Agency (EPA) Office of Enforcement and Compliance Assurance. “Companies that fail to comply with the law out of negligence or that seek economic advantage will be held responsible for their actions.”
According to court documents, over a multi-year period, Zeiss knowingly discharged a variety of hazardous substances to the Clackamas County sewer system.
In May 2012, Clackamas Water Environmental Services sent Zeiss a “Non-Residential Questionnaire” or industrial user survey as required by the Clean Water Act. In response, the company falsely described its wastewater as being 200 gallons per day of “green lens cleaner” that required no pretreatment. In reality, Zeiss regularly discharged cadmium-and-lead alloys, acidic lens polish, and potassium hydroxide the company attempted to neutralize with hydrochloric and muriatic acids.
In March and June 2015, EPA’s Criminal Investigation Division installed pH probes in the sewer line coming from the Zeiss manufacturing facility. These probes detected regular unlawful discharges. Investigators recorded unlawful waste discharges (with excessively high or low pH levels) on two-thirds of the days monitored. The government estimates Zeiss avoided $382,000 in proper disposal costs over the period of the offense. By failing to disclose its discharges to Clackamas County, the company operated completely outside pretreatment regulations for years.
Carl Zeiss Vision, Inc. is a subsidiary of the Zeiss International based in Oberkochen, Germany. The company previously pleaded guilty on January 4, 2018 to one count of violating the wastewater pretreatment requirements outlined in Section 1319(c)(1)(A) of the Clean Water Act.
This case was investigated by EPA Criminal Investigations and prosecuted by Assistant U.S. Attorney Ryan W. Bounds and Special Assistant U.S. Attorney Karla Gebel Perrin.
Bend Man Pleads Guilty to Fraud Scheme Involving Consumer Aviation CompanyRead the Press Release
EUGENE, Ore. – Fred Schrameck II aka Rick Schrameck, 73, of Bend, Oregon, pleaded guilty today to a single count of wire fraud for a scheme involving his consumer aviation company, Aircraft Completion Services LLC (ACS).
According to court documents, Schrameck and others solicited customers to purchase and help build experimental aircraft, including the EPIC LT, using three companies, Aircraft Investor Resources LLC (AIR), Epic Air LLC (EPIC), and ACS. According to purchase agreements, customers paid more than $1.4 million for the Bend-manufactured aircraft.
Schrameck gave customers Airframe Purchase Agreements and Aircraft Completion Assistance Agreements that misrepresented how the customers’ funds were being used. Without his customers’ knowledge, Schrameck used the funds for other projects, to complete existing EPIC LT aircraft, and to support his own lavish lifestyle.
Schrameck faces a maximum sentence of 20 years in prison, a $250,000 fine, and three years’ supervised release. He will be sentenced on Tuesday, August 14, 2018 before U.S. District Court Judge Ann Aiken.
This case was investigated by the FBI and IRS Criminal Investing (IRS-CI) and is being prosecuted by Scott E. Bradford, Assistant U.S. Attorney for the District of Oregon.
Former Oregon City School District Teaching Aid Sentenced to 28 Years in Prison for Production of Child PornographyRead the Press Release
PORTLAND, Ore. – James Ian McGlothlin, 41, of Portland, was sentenced today to 28 years in federal prison followed by a life term of supervised release for the production of child pornography involving two very young children.
McGlothlin’s federal sentence will run concurrently with a sentence imposed in Clackamas County Circuit Court on March 2, 2018. McGlothlin was sentenced in Clackamas County to 225 months in prison after pleading guilty to three counts of first-degree sexual abuse stemming from his work with disabled children as an instructional assistant for the Oregon City School District.
“Producing child pornography is an appalling crime,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “It is unthinkable that someone would prey upon infants, toddlers, and disabled children, yet that is exactly what James McGlothlin did. He was supposed to be safeguarding his victims, but he took advantage of them instead for his own sexual gratification.” Williams added, “Hopefully, this sentence will help ensure that McGlothlin will not be in a position to sexually abuse children again.”
“Those who exploit their access to children to gratify their own perverse sexual desires are on notice that there will be serious consequences for those actions,” said Brad Bench, Special Agent in Charge for Homeland Security Investigations (HSI) Seattle. “When individuals who are entrusted to serve as role models for our children violate that trust, there will be zero tolerance. HSI will continue to work closely with its local law enforcement partners to target those involved in the sexual exploitation of children to ensure they are held accountable for their crimes.”
According to court documents, investigators first learned of McGlothlin’s actions while investigating an online bulletin board service used to advertise and distribute child pornography. On February 16, 2016, federal agents and members of the Interagency Child Exploitation Prevention Team (INTERCEPT) executed a search warrant at McGlothlin’s residence, where they seized computer equipment, phones, and other digital devices. Forensic examinations of the seized computers revealed thousands of files containing child pornography, including videos and images McGlothlin created himself. One of the victims was an infant. Another was a very young child.
Investigators found evidence that McGlothlin sexually abused a number of disabled children he worked with as an instructional assistant in Oregon City. Investigators also found documents McGlothlin wrote which describe, in graphic detail, how he planned to, rehearsed, and sexually abused children.
This case was investigated by the INTERCEPT Task Force, a partnership between the Clackamas and Multnomah County Sheriff’s Offices, U.S. Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the FBI, the U.S. Marshals Service, and the U.S. Attorney’s Office. It was prosecuted by Assistant U.S. Attorney Gary Sussman, Project Safe Childhood Coordinator 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.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Two Portland Marijuana Proprietors Accused of Tax CrimesRead the Press Release
PORTLAND, Ore. – Today in separate criminal informations, tax charges were filed in federal court against two Portland-based marijuana business owners. Nathan Wheeler, 42, of Portland, was charged with one count each of wire fraud and tax evasion. Matthew Price, 32, also of Portland, faces four counts of willfully failing to file income tax returns.
According to court documents, Wheeler, a certified public accountant, is alleged to have engaged in a scheme to defraud clients and investors of more than $4.4 million while also evading income taxes. Wheeler and others operated Bridge City Advisors, LLC, offering accounting, investment, and legal services to clients throughout Portland. Wheeler also held an Oregon medical marijuana license to grow and distribute marijuana. He is accused of using investor funds, without their knowledge or consent, in part, to build and expand his marijuana enterprise. In carrying out his fraud, he sometimes prepared false account statements to keep clients from discovering the unauthorized use of funds.
Beginning in August 2013, Price was part owner and operator of a Portland-based medical marijuana dispensary. In 2014, Price and his business partner opened two additional retail locations, a second in Portland and one in Eugene, Oregon. Between 2011 and 2014, Price allegedly received substantial income from the business and a marijuana farmers’ market he previously owned and operated. During this four-year period, Price is accused of failing to file individual income tax returns, resulting in a tax loss of nearly $263,000.
Both defendants are expected to make their first appearance in federal court on Wednesday, April 25, 2018.
A criminal charge is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
U.S. Attorney's Office Joins in Recognizing National Crime Victims' Rights Week, April 8-14, 2018Read the Press Release
PORTLAND, Ore. – Every April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW) to honor crime victims, promote their rights and recognize those who advocate on their behalf. This year’s NCVRW will be held April 8-14, 2018 with the theme of Expand the Circle: Reach All Victims.
The U.S. Attorney’s Office joins its federal, state, local and tribal law enforcement partners in taking this opportunity to highlight the importance of providing necessary services at the earliest possible stage of victimization and litigation. Early intervention helps prevent further victimization and encourages victim involvement in the criminal justice system, mitigating the cycle of violence and restoring hope for the future.
"In law enforcement, we are sworn to serve and protect," Attorney General Sessions said. "We carry out this oath every day by protecting the rights of law abiding people from criminals and by achieving justice for crime victims. This week, we remember the millions of Americans who have been victimized by criminals and we thank those who have gone above and beyond the call of duty in their service to those victims. As we do so, we recommit ourselves to fulfilling our oath and to reducing crime in America."
“According to Bureau of Justice statistics, victims experience more than five million crimes of violence and nearly 15 million property crimes annually. Sadly, odds are most Americans have been a victim of crime or know someone personally who has,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Now more than ever, victims of crime deserve a voice. They deserve to know that others stand with them and recognize their courage.”
“So often in this country when we talk about crime, the focus is on those who are breaking the law, including significant attention paid to the criminal’s life, arrest and punishment. For the men and women of the FBI, though, any given case is about much more than just handcuffs and court appearances. Our compassion for the victims is at the core of who we are and why we do what we do. For us, the rights and needs of the trafficked child, armed robbery victim or senior citizen who lost his life savings are just as important - if not more so – than the story of the person who caused such harm,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
This year’s theme—Expand the Circle: Reach All Victims—highlights how the investment of communities in crime victims expands the opportunity for victims to disclose their victimization, connect with services and receive the support they need. The theme also acknowledges the many barriers facing victims of crime especially those with disabilities, LGBTQ victims, older adults, speakers with limited English proficiency, American Indians and Alaska Natives, and others from historically marginalized communities.
OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s events and in other victim-related observances throughout the year. The Justice Department will host OVC’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 13, 2018 to honor outstanding individuals and programs that serve victims of crime. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov.
If you or someone you know has been a victim of a crime, please contact your local law enforcement agency or your nearest FBI office immediately. The FBI Portland Field Office can be reached at (503) 224-4181.
Beaverton Man Sentenced for Impersonating U.S. Intelligence Official in Letter to Iraqi Prime MinisterRead the Press Release
PORTLAND, Ore. – Wathiq Al-Ibraheemi, 34, of Beaverton, Oregon, was sentenced today to two years of probation for the unauthorized use of an official insignia.
According to court documents, in November 2015, Al-Ibraheemi wrote a letter to the Prime Minister of Iraq, Haider al-Abadi, on false letterhead of the U.S. Office of the Director of National Intelligence (ODNI). In the letter, Al-Ibraheemi, using the alias William J. Peterson, urged the Iraqi Prime Minister to replace the director of the Iraqi National Intelligence Service. Al-Ibraheemi signed the letter as the Middle East Section Chief of ODNI’s Office of the Deputy Director for Intelligence Integration. The Office of the Inspector General of the Intelligence Community later confirmed for the FBI that the letter was a fraudulent document.
Al-Ibraheemi served as an interpreter for the U.S. Military in Iraq during Operation Iraqi Freedom. He immigrated to the U.S. in 2009 under the Significant Public Benefit Parole Program and was sponsored by a U.S. Army officer with whom he had served in Iraq. Al-Ibraheemi settled in Beaverton in 2012 and enrolled as an engineering student at Portland State University.
This case was investigated by the FBI and prosecuted by Craig Gabriel, Assistant U.S. Attorney for the District of Oregon.
Bandon Educational Assistant and Coach Pleads Guilty to Child Pornography ChargesRead the Press Release
MEDFORD, Ore. – On Monday, April 9, 2018, Sean Jeffrey Haga, 32, of Bandon, Oregon, pleaded guilty to one count of child sexual exploitation.
On June 17, 2016, Haga shared child pornography online using Kik Messenger with an undercover FBI task force officer. Haga told the undercover officer that he wanted to travel to have sex with the officer’s minor daughter and that he possessed photos of himself sexually abusing a minor victim. Haga sent multiple pictures depicting the abuse to the undercover officer.
The FBI worked through the night to identify the person associated with the online user ID, the location from which it was being used, and the identity of the resident at that location. Based on the information collected, FBI agents in the Medford Resident Agency were able to obtain search and arrests warrants. Haga was arrested on June 18, 2016 without incident.
Haga was formerly employed as an educational assistant, track coach and basketball coach in the Bandon School District.
Haga faces a maximum sentence of 30 years in prison, a $250,000 fine and a five-year term of supervised release. He is also subject to a 15-year mandatory minimum prison sentence. Haga will be sentenced on July 19, 2018 before U.S. District Court Judge Anne L. Aiken.
This case was investigated by the FBI and prosecuted by Amy Potter, Assistant U.S. Attorney for the District of Oregon.
Former Lake Oswego Financial Advisor Accused of Defrauding InvestorsRead the Press Release
PORTLAND, Ore. – Shayne Kniss, 42, formerly of Lake Oswego, Oregon, was charged today in federal court with defrauding clients of his investment firm, Iris Capital Management.
The criminal information alleges that Kniss offered clients, many of whom were 65 or older, four investment funds composed of residential properties in the greater Portland area that would be rehabilitated, upgraded and resold at a substantial profit. Between February 2011 and April 2013, 47 people invested over $4.3 million in the funds. The information alleges Kniss commingled investor money among the funds, used new investments to make payments to prior investors, and used more than $500,000 of investor funds for personal use, including investing in a retail marijuana enterprise.
Kniss will make his first appearance before a U.S. Magistrate Judge in Portland where a plea will be entered and a trial date set.
A criminal charge is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Portland Woman Given 15 Months in Prison for Tax EvasionRead the Press Release
PORTLAND, Ore. – Anna Ngo, 57, of Portland, was sentenced today to 15 months in prison and ordered to pay nearly $500,000 in restitution for a tax evasion scheme involving two local businesses. Ngo previously pleaded guilty to one count of tax evasion in violation of 26 U.S.C. §7201 on December 14, 2017.
“As a business owner, Ms. Ngo had a legal obligation to pay her fair share of taxes and she failed to do so,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Tax evasion is a serious crime that victimizes all Americans. The U.S. Attorney’s Office will continue to pursue similar prosecutions in an effort to preserve the fairness and integrity of our tax system.”
“With the April 17th tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said Troy A. Burrus, Acting Special Agent in Charge of the IRS Seattle Field Office.
According to court documents, Ngo evaded payment of her tax liabilities in 2004, 2005, 2007 and 2008 by placing two of her businesses, Hot Rocks Beauty Salon and Beyond Hair Nails Spa, in the names of nominees with the cooperation of her niece. Ngo told the IRS she did not own the businesses. Additionally, Ngo filed fraudulent income tax returns upon which she failed to report income from the two businesses.
An investigation revealed that Ngo evaded payment of her outstanding tax liability. Her evasion included “quitclaiming,” or relinquishing ownership of rental property she owned to her son shortly before federal income tax liens were filed in 2011. Investigators also found that Ngo spent significant amounts of money at electronic stores, including $126,900 in 2011 alone, despite owing significant taxes and being aware of the liability. Multiple audits revealed that Ngo owes more than $502,000 in taxes, penalties and interest for 2004, 2005, 2007 and 2008.
This case was investigated by IRS Criminal Investigation and prosecuted by Clemon D. Ashley, Assistant U.S. Attorney for the District of Oregon.