District of Oregon

EUGENE, Ore. – Brett Allen McNeal, 37, of Grants Pass, Oregon, was sentenced today to three months in federal prison for distributing oxycodone as part of an interstate opioid-trafficking organization.

The organization was structured around Daniel Cham, a doctor practicing in La Puente, California, who would illegally provide prescriptions for oxycodone, hydrocodone, and other powerful medications in exchange money orders and cash. The narcotics were moved from Southern California through a network of redistributors for eventual sale in Oregon.

“At a time when the opioid crisis continues to worsen in Oregon, some medical providers aim to profit off addiction. The drug trafficking network that grew from Dr. Cham’s criminal activity contributed to the overdose deaths of two people, including a young woman here in Oregon” said Billy J. Williams, U.S. Attorney for the District of Oregon. “This conduct is reprehensible. Criminal organizations who traffic opioids will be dismantled, person-by-person, until every last participant has been prosecuted.”

“Corrupt doctors and dealers who cash in on the opioid epidemic are fueling the cycle of dependence and addiction in our community. In doing so, they put lives at risk and make it that much more difficult for the most vulnerable to overcome the pull of these narcotics,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “This is a health care problem, a crime problem and a societal problem - and one that will take many partners working together to address fully.”

Cham would write prescriptions to individuals both known and unknown to him and to others he knew to be prolific drug dealers and addicts. He regularly sold prescriptions to John Bryden, an Oregon resident, who in turn would sell them to other co-conspirators, including Kevin Grimes, Marcela Cooper, and Austin Alderete, for distribution across Oregon.

McNeal purchased oxycodone from Alderete and sold it for a profit to end users. One of those end users, Jessica Morretti, died of an overdose on April 13, 2012. According to text messages on Moretti’s cell phone from the evening she overdosed, McNeal had provided her with five 30mg oxycodone pills the same day. An analysis of post-mortem toxicology reports indicated that the lethal amount of oxycodone in Moretti’s system could have come from multiple sources, including McNeal.

McNeal admitted to law enforcement that he had purchased 30mg oxycodone pills from Alderete on multiple occasions for $15-20 apiece. Alderete would at a times front McNeal up to 100 oxycodone pills.

McNeal is the sixth defendant overall and last prosecuted in Oregon to be sentenced for their role in the trafficking organization. Other sentenced defendants include:

• Daniel Cham, 49, of Covina, California – 160 months in prison and three years’ supervised release (sentenced in the Central District of California)
• Kevin Grimes, 46, of Calimesa, California – 37 months in prison and three years’ supervised release
• Austin Alderete, 32, no known residence – 21 months in prison and three years’ supervised release
• Maricela Ann Cooper, 27, of Central Point, Oregon – time served in prison and three years’ supervised release
• Laurie Ryan, 59, of Jackson County, Oregon – 18 months’ probation (sentenced in Jackson County Circuit Court)

Tracy Townsend, a high-level co-conspirator of Cham’s from California, remains at large. John Bryden died before being prosecuted.

McNeal previously pleaded guilty to a criminal information charging him with distribution of oxycodone in violation of 21 U.S.C. § 841(a)(1). Upon completion of his prison sentence, he will be on supervised release for three years.

This case was investigated by the FBI and prosecuted by the U.S. Attorney’s Office for the District of Oregon.

Drug abuse affects communities across the nation, and opioid abuse continues to be particularly devastating. The CDC reports that from 1999 to 2016, more than 630,000 people have died from a drug overdoses. In 2016, 66% of drug overdose deaths involved an opioid. Drug overdose is now the leading cause of injury or death in the United States. In Oregon, the total number of deaths related to drug use increased 11 percent between from 2013 to 2017, with 546 known drug related deaths last year.

If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm PST daily.

PORTLAND, Ore. – Carlos Cisneros-Razo, 45, of Milton-Freewater, Oregon, was sentenced today to 60 months in federal prison for dealing methamphetamine. Upon completion of his prison sentence, Cisneros-Razo will be on supervised release for four years.

According to court documents, in May 2017, the Blue Mountain Enforcement Narcotics Team (BENT) purchased distributable quantities of methamphetamine from Cisneros-Razo. On May 31, 2017, BENT executed a search warrant at Cisneros-Razo’s residence and recovered 10.9 grams of methamphetamine in his home and a loaded revolver on his person. Cisneros-Razo admitted to selling methamphetamine to as many as seven people. Cisneros-Razo was illegally present in the District of Oregon.

Cisneros-Razo previously pleaded guilty to one count of possession with intent to distribute methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B) on June 20, 2018.

This case was investigated by BENT and the FBI and prosecuted by the U.S. Attorney’s Office for the District of Oregon.

PORTLAND, Ore. – Diego Sanchez-Lopez, 23, of Clark County, Washington, known locally as the “Froggy Robber,” made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman.

The court previously unsealed a five-count indictment alleging Sanchez-Lopez robbed five Portland-area banks between November 2017 and April 2018. Sanchez-Lopez faces federal bank robbery charges in violation of 18 U.S.C. §§ 2113(a) and (d) for the following events:

• On November 27, 2017, $9,710 was stolen from the Albina Community Bank located at 2002 NE Martin Luther King Jr. Boulevard in Portland.
• On December 27, 2017, $26,000 was stolen from the Wells Fargo Bank located at 8699 SW Main Street in Wilsonville, Oregon.
• On January 11, 2018, $11,580.99 was stolen from the Wells Fargo Bank located at 6785 Beaverton Hillsdale Highway in Beaverton, Oregon.
• On January 30, 2018, $6,720 was stolen from the U.S. Bank located at 52313 Columbia River Highway in Scappoose, Oregon.
• On April 30, 2018, 33,357 was stolen from the Wells Fargo Bank located at 7200 NE Butler Street in Hillsboro, Oregon.

In each of the above listed events, Sanchez-Lopez is accused of using a knife to facilitate the robbery. In total, he is alleged to have stolen more than $87,000 from banks insured by the Federal Deposit Insurance Corporation (FDIC).

Sanchez-Lopez was detained pending trial. A four-day jury trial is scheduled for November 27, 2018 before U.S. District Court Judge Michael W. Mosman.

An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

PORTLAND, Ore. – Theodore B. Holbrook, 37, and George J. Arauz, Jr., 45, both of Gresham, Oregon, were sentenced today to 36 months in federal prison for defrauding 50 investors of nearly $2.5 million using a sham energy technology start-up company. Holbrook and Arauz were also ordered to pay more than $2.3 million each in restitution and will be on supervised release for three years after completing their prison sentences.

According to court documents, between 2008 and 2015, Holbrook and Arauz used their companies, Prisidio Capital, LLC, Altius Capital Management, LLC and Altius Capital Opportunities Fund, L.P., to solicit investments to develop energy technologies via a start-up company. In return, they gave investors Prisidio stock certificates and promised to convert these shares into the start-up company’s shares when it went public. In addition to funding the start-up company, Holbrook and Arauz told investors that their money would be invested in other emerging technology companies or the stock market directly.

Instead of using investor money as promised, Holbrook and Arauz diverted it for their own personal use, funding living expenses, travel, cars, credit card bills, medical bills, lulling payments and other expenses to keep the scheme going. The pair did not disclose this diversion of funds to their investors and, instead, actively took steps to conceal it. Holbrook and Arauz sent investors promotional and investment materials to falsely represent the nature and status of their investment.

Holbrook and Arauz both previously pleaded guilty to one count each of wire fraud and money laundering on March 7, 2018 and October 31, 2017, respectively.

This case was investigated by IRS Criminal Investigation. It was prosecuted by Scott E. Bradford, Assistant U.S. Attorney for the District of Oregon.

WASHINGTON – U.S. Attorney Billy J. Williams joined the Department of Justice in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities, including: the Columbia River Inter-Tribal Fish Commission; Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians; Confederated Tribes of the Umatilla Indian Reservation; Confederated Tribes of the Warm Springs Reservation; Coquille Indian Tribe; Cowcreek Band of Umpqua Tribe of Indians; and Klamath Tribes.

“Pursuing justice on behalf of tribal communities and supporting the development and growth of tribal law enforcement agencies, courts, and victim services has been a key focus of the U.S. Attorney’s Office for many years,” said U.S. Attorney Williams. “These awards mark the Justice Department’s continued commitment to ensuring all tribes have the resources necessary to keep their communities safe and effectively enforce the administration of justice on tribal land.”

Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.

In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities.  The awards are intended to help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance.  Recipients will be announced in the near future. 

“With these awards, we are doubling the amount of grant funding devoted to public safety programs and serving victims of crime in Native American communities,” said Principal Deputy Associate Attorney General Jesse Panuccio, who made the announcement during his remarks at the 26th Annual Four Corners Indian Country Conference in Santa Fe, New Mexico.  “There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities.  This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues.  We are committed to reducing violent crime and improving public safety.”

The Four Corners Conference is facilitated annually by U.S. Attorneys from Arizona, Colorado, New Mexico and Utah to provide a forum for discussion of justice-related topics with a large number of populous and diverse tribal nations located in the region.

CTAS awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.   CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.

This announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.

A listing of the announced CTAS awards is available at: go.usa.gov/xP2uc.

PORTLAND, Ore. – Matthew Price, 32, of Portland, was sentenced today to seven months in federal prison and ordered to pay more than $262,000 for willfully failing to file federal income tax returns in four consecutive years.

“Matthew Price attempted to live a double life—advising OLCC officials on how to regulate state-legal marijuana sales, while privately evading his personal and business tax obligations,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Marijuana businesses and business owners are subject to the same federal tax laws as every other business and will be scrutinized for criminal wrongdoing. Tax cheaters will not be tolerated in any industry.”         

According to court documents, in 2010, Price, then 25 years old, came to Portland with the financial backing of a business partner in Colorado to start a state-legal marijuana business in anticipation of Oregon’s full retail legalization. Price had previously been working in a marijuana store in Colorado owned by his business partner. In December 2010, Price began operating a marijuana farmers market in Portland called Cannabliss. In mid-2013, Price and his business partner converted the business to a medical marijuana dispensary. In 2014, the pair opened two additional Cannabliss dispensaries, a second in Portland and one in Eugene, Oregon.

Price failed to file personal income tax returns in four consecutive years between 2011 and 2014, despite retaining the services of three different certified public accountants. Price’s taxable income steadily grew from $42,000 in 2011 to $590,000 in 2014. In 2015, Price was a member of the Oregon Liquor Control Commission’s (OLCC) Recreational Marijuana Technical Advisory Retail Subcommittee. In this capacity, Price, with other retailers, advised the OLCC in its rulemaking process for Oregon Measure 91, the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act.

Price previously pleaded guilty to four counts of willfully failing to file personal income tax returns in violation of 26 U.S.C. § 7203 on May 31, 2018. Upon completion of his prison sentence, Price will be on supervised release for three years with six months of home detention.

The IRS Criminal Investigations investigated this case. It was prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Dominic Caputo, 46, of Clackamas County, Oregon, was indicted today on allegations that, as a civilian program manager for the Oregon National Guard Oregon Sustainment Maintenance Site (OSMS), he submitted false reimbursement requests to the U.S. Army Communications-Electronics Command (CECOM) and misrepresented the operational status of equipment used to maintain a war-ready posture.

The court unsealed a five-count indictment alleging Caputo falsely certified that the refurbishment of equipment was complete or in-process. Caputo’s certifications prompted CECOM to remit payment for more than 1,300 pieces of equipment at a cost of more than $6 million to OSMS with the expectation the equipment was ready to be shipped to other military installations and put back into service, when it was not.

Caputo faces four counts of wire fraud, and one count of false statements in a document.

Caputo made his initial appearance in federal court today before U.S Magistrate Judge Beckerman and was released pending trial. A 7-day jury trial is scheduled for November 20, 2018 before U.S. District Court Judge Anna J. Brown.

An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

PORTLAND, Ore. – Anthony Wayne Tavoloni, Jr., 45, of Salem, Oregon, was sentenced today to three years’ probation including three months of home detention for assaulting two Transportation Security Administration (TSA) Transportation Security Officers (TSO) at Portland International Airport (PDX).

According to court documents, on August 20, 2017, Tavoloni entered PDX, passed through the customer service and baggage claim areas, and entered the TSA checkpoint and screening zone leading to Concourses D and E. Upon entering the TSA checkpoint, a TSO asked Tavoloni for his boarding pass and identification. He replied, “No.” The TSO asked for Tavoloni’s boarding pass a second time to which he replied, “You really want to do this?” as he stepped toward the TSO. Tavoloni then walked behind the TSO’s table prompting the TSO to jump from her chair, back away from him, and yell, “Stop, Stop, Stop!” Tavoloni grabbed the TSO by her forearms and attempted to wrestle her to the ground.

Alerted, a number of passengers rushed to assist the TSO. Two passengers restrained Tavoloni, while others attempted to separate the TSO from his grip. With multiple TSOs now standing between Tavoloni and the victim, Tavoloni exclaimed “We’re about to have a bad day, do you really want to do this?” to which another TSO replied “No one needs to have a bad day.” Tavoloni then lunged at this TSO, striking him in the face with his hand. Tavoloni was promptly wrestled to the ground and held until Port of Portland Police arrived.

Tavoloni previously pleaded guilty to two counts of assaulting certain officers or employees in violation of 18 U.S.C. § 111(a)(1) on May 21, 2018.

This case was investigated by TSA and the FBI and prosecuted by John Brassell, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Nicholas James Stacy, 24, of Clackamas, Oregon, made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman. He was ordered detained pending trial.

The court unsealed a criminal complaint alleging Stacy possessed in excess of 9,000 videos and 20,000 images depicting child pornography on his iPhone and uploaded at least 94 files containing child pornography to his Gmail account. Stacy’s online activities were first identified by Google and the National Center for Missing and Exploited Children (NCMEC).

Stacy was arrested by the Clackamas County Sheriff’s Office on September 11, 2018 and the investigation is being conducted jointly with the U.S. Department of Homeland Security Homeland Security Investigations (HSI).

HSI and the Clackamas County Sheriff’s Office offer this advice to concerned community members:

Parents who have a child who may have come in contact with Stacy should let the child know that Stacy has been arrested for inappropriate behavior. Parents should tell the child that if Stacy did or said anything inappropriate to the child to let the parents know. If a child discloses an incident that did happen to him or her or that the child observed an inappropriate incident happen to someone else, the parent should not ask the child detailed questions about the incident. Instead, please contact the Clackamas County Sheriff’s Office Tip Line at (503) 723-4949 or call HSI at (360) 693-7712.

A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

PORTLAND, Ore. – David Reichert, 51, of St. Louis, Missouri, was sentenced today to 13 months in federal prison for using his position as a Nike salesman to procure heavily-discounted Nike-brand merchandise for resale by two companies he co-owned with a business partner.

According to court documents, as a Nike Inc. salesman and wholesale account executive, Reichert sold licensed apparel—Nike-brand clothes and accessories emblazoned with team names and logos—to retailers throughout the Midwest. Reichert was authorized to give discounts to his customers on the listed wholesale prices of various merchandise. Such discounts rarely totaled more than 20% for even the largest and most important customers.

In 2008, Reichert and a business partner bought a sportswear retailer in the St. Louis area called Fan-a-Mania, Inc. and incorporated a second called JJL Sports Inc. Fan-a-Mania was a longtime Nike customer whose wholesale account was managed by Reichert. Reichert managed the wholesale accounts of both companies without disclosing his ownership interests to his superiors at Nike. By 2012, Reichert was giving extraordinary and unauthorized discounts averaging more than 57% to both companies—and thus to himself.

Reichert’s discounts for his own companies were nearly three times the discounts extended to any of the 25 other wholesale accounts he managed for Nike.  In total, Reichert’s embezzlement of licensed Nike-brand merchandise cost the company more than $769,000.  In imposing sentence, Senior U.S. District Judge Robert E. Jones emphasized the greed underlying Reichert’s conduct and ordered him to pay full restitution to Nike.

Reichert previously pleaded guilty to two counts of wire fraud on April 25, 2018.

Nike Inc. extensively investigated these crimes before reporting them to the FBI. The FBI then independently investigated the matter. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – In separate criminal cases, two men have been sentenced to federal prison for trafficking illegal narcotics into Oregon for distribution in the Portland and Salem, Oregon metropolitan areas.

Marcial Aguirre, 55, was sentenced today to 135 months in federal prison followed by five years of supervised release for possession with intent to distribute methamphetamine. Aguirre previously pleaded guilty on March 19, 2018.

Christian Jensel Chaidez, 33, of Salem, was sentenced on September 4, 2018 to 120 months in federal prison followed by five years of supervised release for possession with intent to distribute methamphetamine. Chaidez previously pleaded guilty on May 31, 2018.

U.S. v. Marcial Aguirre

According to court documents, Aguirre led a drug trafficking organization responsible for shipping distribution quantities of methamphetamine and cocaine from California for sale in Oregon and Washington state. Aguirre employed three drug runners or “mules” that would transport drugs between states in hidden vehicle compartments. He directed the runners where to pick up the loaded vehicles and where to deliver them.

At times, Aguirre would drive ahead or follow the loads into Oregon and meet the runners at local convenience stores in Salem. He would exchange his vehicle with the runner’s vehicle and transfer the loads to various co-conspirators for delivery. Using intercepted wire calls, investigators began to piece together the organizational structure of Aguirre’s network, identifying his co-conspirators and runners.

On September 24, 2016, on a return trip to California, agents stopped the van Aguirre was traveling in, executed an arrest, and seized approximately $74,000 in cash. Over the course of a year-long investigation, investigators seized approximately $229,000 in cash, two vehicles, three firearms, more than one hundred pounds of methamphetamine, and ten pounds of cocaine.

U.S. v. Christian Jensel Chaidez

Chaidez was a local affiliate of a drug trafficking network responsible for importing methamphetamine, heroin, cocaine and marijuana from Los Angeles to Salem. Using intercepted wire calls, investigators learned that a co-defendant would provide Chaidez with quantities of heroin that Chaidez would, in turn, sell in and around Salem. In November and December 2016 investigators used an undercover informant to purchase one half pound of methamphetamine from Chaidez on two different occasions.

By June 2017, when federal prosecutors unsealed a 12-person indictment, the network, which began primarily as a methamphetamine and cocaine distribution organization, was rapidly expanding into the heroin market. The arrests of Chaidez and others have significantly disrupted the distribution of methamphetamine, cocaine, and other narcotics in the Salem area.

Both cases were investigated by the U.S. Drug Enforcement Administration (DEA) and prosecuted by Kemp L. Strickland, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Andre Eugene Shaw, 34, of Portland, was sentenced today to 63 months in federal prison followed by three years of supervised release for extorting child pornographers for money and services.

Shaw previously pleaded guilty to extortion, transmitting extortionate communications in interstate commerce, money laundering and possessing an unregistered short-barreled assault rifle in May 2018. The victims of the extortionate acts and communications were people who produced, traded in or collected child pornography.

According to court documents, the investigation began in July 2014 when an individual arrested for producing and distributing child pornography told investigators that he had been blackmailed by an individual known to him as "Blackhands" for the preceding three years. Blackhands hacked into the victim’s computer, discovered evidence of his illicit activities and sent an email demanding payment of $10,000, or the victim’s life would be "over."

The victim reached an agreement with the extortionist under which the victim would send $1,000 per month via Western Union money transfers to someone known to the victim as "Joe." Joe was later identified as Shaw, who was using the alias Joe Stanis.

Over time, Blackhands began making additional demands of the victim. He directed the victim to recruit people to skim credit cards at restaurants; to buy things for Joe, including firearms, ammunition, credit card skimming equipment, and a ballistic vest; and to pick up extortion payments sent by other victims and give the money to Joe. Joe furnished the victim with false identification documents to use when picking up extortion payments, many of which were sent to the fictitious names via money transfers.

Two years prior to the unnamed victim’s arrest, Blackhands began demanding photos of the victim’s juvenile daughter and later demanded the victim give his daughter to Joe. On two or three different occasions, the victim turned his daughter over to Joe, knowing that Joe or others would use his daughter to produce child pornography. The victim drugged his daughter each time. On the most recent occasion, Blackhands directed the victim to bring certain props

including costumes, make-up, sex toys and a camera. Investigators later found the box of props in the victim’s garage and identified Shaw’s palm print on the outside of the box.

On December 18, 2014, Shaw was arrested on an outstanding state misdemeanor warrant for failure to appear. That same day, FBI agents and task force officers executed a federal search warrant at the residence Shaw shared with his girlfriend in Southeast Portland. Agents seized numerous items including counterfeit driver’s licenses from multiple states; holographic overlays for multiple state driver licenses; a counterfeit "Foreign Sovereign Immunities Act Non-Resident National" identification card that purportedly bore the seal of the U.S. Department of State; supplies and equipment for manufacturing high-quality false identification documents; books on creating a new identity; encrypted compact discs labeled with the names of multiple state departments of motor vehicles as well as the Social Security Administration and U.S. Department of Defense; compact discs labeled with the initials of numerous known extortion victims; numerous firearms, magazines, ammunition, and homemade silencers; and cash and precious metals, including silver coins and bars, gold coins, and $13,344 in U.S. currency.

In total, Shaw extorted more than $100,000 from various victims. Often, the pattern of conduct was similar: Shaw would hack into the victims’ computer, find evidence of their illegal activity and threaten to expose them unless they paid. The full extent of Shaw’s criminal activities remains a mystery, however, because his computer equipment and the discs found in his residence were all heavily encrypted. To date, the government’s attempts to defeat the encryption have been unsuccessful and, as a result, investigators have been unable to definitively say whether Shaw was Blackhands.

At least two of Shaw’s victims are now dead, having taken their own lives after they were contacted by law enforcement officers. At least one young girl—the victim’s daughter—was victimized by Shaw or someone he knew.

This case was investigated by the FBI and prosecuted by Gary Y. Sussman and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

The FBI’s Child Exploitation Task Force (CETF) conducts sexual exploitation investigations – many of them undercover – in coordination with other federal, state, and local law enforcement agencies. The Portland FBI’s CETF consists of agents and task force officers from the Beaverton Police Department, Portland Police Bureau, Tigard Police Department, Hillsboro Police Department, and the Clackamas County Sheriff’s Office. The FBI’s CETF is committed to locating and arresting those who prey on children as well as recovering underage victims of sex trafficking and child exploitation.

Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.

PORTLAND, Ore. – Christopher James Fleet, 23, of Portland, was sentenced today to 84 months in federal prison and five years of supervised release for possessing distribution quantities of methamphetamine and two firearms when arrested by Multnomah County Sheriff’s Office (MCSO) deputies in August 2017.

On August 23, 2017, deputies from the MCSO Special Investigation Unit were conducting surveillance at a known drug and gang house in Portland. They observed a vehicle parked in front of the house they believed was connected with Fleet, a drug dealer with an outstanding arrest warrant. Upon leaving the house and attempting to drive away, deputies blocked Fleet using unmarked vehicles and approached him wearing marked law enforcement raid vests. After initially refusing to comply with the deputy’s commands to raise his hands and failing to find an escape route, Fleet surrendered.

During the arrest, deputies found a Kel Tec 9mm firearm and distribution quantities of heroin and methamphetamine on Fleet’s person. They also found a locked backpack in Fleet’s vehicle. The backpack was later found to contain .40 caliber Sig Sauer pistol, drug records, and a digital scale.

Fleet previously pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking offense on May 1, 2018.

This case was investigated by the MCSO Special Investigation Unit and prosecuted by Leah K. Bolstad, Assistant U.S. Attorney for the District of Oregon.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, provided the following statement on the demonstration taking place at the federal building located at 4310 SW Macadam Avenue in Portland on August 30, 2018.

“Last week I met with members of the Interfaith Movement for Immigrant Justice (IMIrJ), an organization that advocates on behalf of immigrant communities. We discussed their concerns on a number of important topics including asylum seekers being held at FCI Sheridan. Today, individuals affiliated with IMIrJ and others have gathered to protest at a federal building in Southwest Portland that houses employees and serves visitors of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), and the Army Corps of Engineers. They have blocked the building’s driveway and main entrance and refused to move when instructed to by federal authorities.”

“As I’ve said before, freedom of speech and peaceful assembly are sacred rights, but we do not support actions that impede the work of federal employees. We acknowledge demonstrators’ concerns and value the conversations we’ve had with IMIrJ and others, but urge them to refrain from blocking access to this building. Failure to abide by federal law will result in arrest.”

PORTLAND, Ore. – U.S. Attorney Billy J. Williams has announced charges against six individuals for their roles in two vast conspiracies to traffic marijuana grown in Portland to Texas, Virginia and Florida.

According to a superseding indictment, Jody Tremayne Wafer, 29, Trent Lamar Knight, 30, and Brittany Lesanta Kizzee, 28, of Houston, Texas; and Raleigh Dragon Lau, 33, and Paul Eugene Thomas, 38, of Portland, are accused of conspiring to manufacture marijuana in Portland, and distributing it in Texas and Virginia.

Wafer, Knight and Kizzee had previously been charged with kidnapping and firearms offenses in December 2017. Thomas had previously been charged with being a felon in possession of a firearm in December 2017.

In a separate indictment, Cole William Griffiths, 30, of Hood River, Oregon, is accused of conspiring to manufacture marijuana in Hood River and shipping it to Florida.

Drug proceeds, in the form of bulk U.S. currency, were returned to Oregon via U.S. mail and passenger luggage on commercial airlines. Based on court documents, Federal authorities have seized approximately 11,000 marijuana plants, 546 pounds of processed marijuana, more than $2.8 million in cash, 51 firearms, 26 vehicles, trailers, and pieces of heavy equipment, and a yacht, and have alleged three houses used as marijuana grow sites are subject to forfeiture, all since August 2017.

“These cases provide clear evidence of what I have repeatedly raised concerns over: Oregon’s marijuana industry is attracting organized criminal networks looking to capitalize on the state’s relaxed regulatory environment” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Dismantling criminal organizations is a key focus of our marijuana enforcement strategy. We will continue to work with our federal, state, local and tribal partners to disrupt overproduction and the illegal export of marijuana out-of-state.”

“DEA will continue to pursue all organized and dangerous interstate marijuana trafficking groups impacting the public’s safety,” said DEA Special Agent in Charge Keith Weis.

“Although the state of Oregon allows for marijuana cultivation and use within state borders, interstate trafficking and distribution remains illegal. IRS-Criminal Investigation will continue to vigorously investigate financial gains obtained through these activities, as we remain committed to the disruption and dismantling of black market marijuana operations,” said Darrell Waldon, Special Agent in Charge of IRS-Criminal Investigation’s Seattle Field Office.

“Through collaboration with our law enforcement partners, hard work and patience, HSI special agents are identifying the criminal organizations producing drugs in Oregon and illegally exporting them out-of-state—and holding them responsible for their illicit activities,” said Brad Bench, Special Agent in Charge for Homeland Security Investigations (HSI) in the Pacific Northwest. “One by one, we’ll seek you out, with our ultimate goal being to dismantle the entire criminal organization.”

“The convergence of guns, drugs and violence with illicit cash are a threat to our community,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “We are working aggressively with our law enforcement partners to address these threats.”

All six defendants are charged with conspiring to manufacture, possess with intent to distribute, and distribute marijuana, and to maintaining drug-involved premises. Other charges include manufacturing and distributing marijuana, money laundering, interfering with commerce by threats and violence, kidnapping, using a firearm during a crime of violence and drug trafficking crime, and felon in possession of a firearm.

Griffiths made an initial appearance in federal court on August 24, 2018 before U.S. Magistrate Judge Youlee Yim You and pleaded not guilty. He was released pending trial. A four-day jury trial is scheduled for October 23, 2018 before U.S. District Court Judge Marco A. Hernandez. The five remaining defendants are expected to make their first appearances at various times over the next three weeks.

As part of this same investigation, the U.S. has also filed a parallel civil complaint alleging that three pieces of real estate in Portland and Lake Oswego are subject to forfeiture because they were used to grow some of the marijuana related to these charges. The three properties are valued at a total of roughly $1.7 million.

An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

This case was investigated by DEA, IRS-CI, HSI and the FBI.

This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.

​ Wafer-Knight-Kizzee-Lau-Thomas Superceding Indictment​

EUGENE, Ore. – A criminal complaint was unsealed today alleging Phillip Allan Beach, 48, of Cottage Grove, Oregon, knowingly and intentionally took possession of a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.

As alleged in the criminal complaint, in May 2015, an evidence coordinator at the Cottage Grove Police Department (CGPD) reported to their supervisor that Beach accessed the department’s evidence locker more frequently than other officers and seemed to do so for no apparent purpose. The coordinator said that Beach would repeatedly access the same evidence bag. A CGPD commander later examined the bag and observed that it was open and two plastic bags inside containing several ounces of methamphetamine crystals had been sliced open.

In June 2015, CGPD began an investigation of Beach’s conduct and placed two hidden cameras inside the evidence locker. On June 11, 2015, Beach was recorded on video entering the locker without signing the evidence log and accessing the evidence bag previously examined by the commander. The video shows Beach taking a small plastic baggie from his pants pocket and using it to take a small portion of meth from the evidence bag. Investigators later weighed the evidence bag and found a 7.3 gram reduction in weight.

CGPD’s investigation revealed that between March 2010 and June 2015, Beach accessed numerous pieces of drug evidence from multiple cases. For example, Beach would indicate at times that he was taking drugs from the secured evidence locker to send to the crime lab for testing, but no drugs were sent. On at least one occasion, Beach is alleged to have replaced methamphetamine he had taken from an evidence bag with salt to conceal his actions.

Beach made an initial appearance today in federal court before U.S. Magistrate Judge Jolie A. Russo. He entered a not-guilty plea and was released pending trial.

A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

MEDFORD, Ore. – Gonzalo Manzo, Jr., 33, of Fresno, California, pleaded guilty today to one count each of conspiracy to distribute and possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.

According to court documents, in 2017, Manzo coordinated the shipment of a kilogram of cocaine from California to Southern Oregon. Manzo and his co-conspirators sold the cocaine to undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Oregon in exchange for firearms and $21,000 in cash. Manzo intended for the firearms and cash to be transported back to California but agents arrested Manzo and his co-conspirators and the firearms were seized by law enforcement.

Manzo faces a maximum sentence of life in prison, a $5 million fine and four years of supervised release. He will be sentenced on January 24, 2019 before U.S. District Court Judge Ann Aiken. Co-defendants Jonathan Ochoa and Rodolfo Quevedo also face criminal charges; their cases are pending in federal court.

The case was investigated by ATF and is being prosecuted by Nathan J. Lichvarcik and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.

The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

MEDFORD, Ore. – Donald Courtney Biggs, 40, of Medford, Oregon, was sentenced today to 188 months in federal prison for surreptitiously recording minor church members in various stages of undress while employed as a youth pastor at Mountain Christian Fellowship in Medford.

According to court documents, the Medford Police Department (MPD) began investigating Biggs in December 2014 for allegedly sending inappropriate text messages to a minor female who he worked with at the church. After authorities discovered Biggs had exchanged similar text messages with additional minor females and confessed to church administrators that he videotaped an adult changing at his house, they obtained a warrant to search Biggs’ home.

The search uncovered multiple electronic devices containing videos of minors and adults undressing and getting into and out of a shower in Biggs’ home. Biggs concealed a video camera behind a light switch in a bathroom in his home in Jacksonville, Oregon used by minor and adult females during youth events hosted at his house. The camera captured victims nude as they were using the toilet, changing clothes, and showering. In a similar manner, Biggs also concealed videos cameras in bathrooms on church retreats to Huntington Beach and Lake Shasta, California.

Biggs later admitted to secretly recording many of the girls in his youth group at his house, the church, and at several different church events. He also admitted to designing activities that required youth group members to change clothes and sometimes shower.

Biggs was charged on November 2, 2017 with nine counts of using or attempting to use a minor to produce a visual depiction of sexually explicit conduct and three counts of transportation with intent to engage in criminal sexual activity with a minor for illicit acts involving nine different minor victims.

Biggs pleaded guilty to a single count of transportation with intent to engage in criminal sexual activity with a minor on February 22, 2017. Upon completion of his prison sentence, Biggs will be on supervised release for life.

This case was investigated by the FBI, MPD, and the Southern Oregon High Tech Crimes Task Force. It was prosecuted by Judi Harper, Amy Potter, and Pamela Paaso, Assistant U.S. Attorneys for the District of Oregon.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.

PORTLAND, Ore. – Stephen Gregory Rowell, 37, of Portland, was sentenced today to 147 months in federal prison for dealing methamphetamine in Portland. Upon completion of his prison sentence, Rowell will be on supervised release for 5 years.

Rowell previously pleaded guilty on April 25, 2018 to one count of possession with intent to distribute methamphetamine.     

According to court documents, on November 15, 2016, Rowell was arrested and found in possession of at least 180 grams of methamphetamine that were intended for further distribution.  At the time of his 2016 arrest, Rowell was on federal pretrial supervision following his arrest and indictment for distributing methamphetamine on June 24, 20l5. Today’s sentencing resolved both cases.

The Clackamas County Interagency Taskforce, Oregon City Police Department, and Clackamas County Sheriff’s Office investigated this case. It was prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Pavel Ryzhenkov, 32, of Sacramento, California, pleaded guilty today to one count of trafficking in counterfeit goods.

According to court documents, between December 2015 and September 2017, Ryzhenkov sold counterfeit air bag covers on eBay. He purchased the counterfeit covers from manufacturers in China and in turn advertised and sold them as genuine with the trademarks of various auto manufacturers, including Audi, BMW, Chevrolet, Dodge, Ford, Honda, Infiniti, Lexus, Mercury, Nissan, Subaru, Toyota, and Volkswagen.

Air bag covers made by unauthorized manufacturers can malfunction causing serious injury or death. Upon deployment of an air bag in a crash, counterfeit air bag covers can shatter, sending shrapnel into a vehicle’s passenger compartment.

“Mr. Ryzhenkov did not disclose the origin of the counterfeit air bag covers and thereby caused consumers to unknowingly operate vehicles not equipped with properly functioning air bags, posing a serious risk to their safety,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

“Counterfeit products pose real safety risks. In this case, counterfeit air bag covers could mean the difference between life and death,” said Brad Bench, special agent in charge of Homeland Security Investigations (HSI) Seattle, which oversees the agency’s Portland office that conducted this investigation. “This investigation represents HSI’s commitment to protecting consumers. No one wants to be behind the wheel when an air bag doesn’t function properly.” 

Ryzhenkov faces a maximum sentence of 10 years in prison, a $2 million fine and three years of supervised release. He will be sentenced on December 12, 2018 before U.S. District Court Judge Michael H. Simon.

HSI in Portland, Oregon, investigated this case. It is being prosecuted by Quinn Harrington and Scott Bradford, Assistant U.S. Attorneys for the District of Oregon.

Consumers who have had their air bags or air bag covers serviced by a repair shop that is not part of a new car dealership or who have purchased an air bag or air bag cover online should contact their auto manufacturer to have their vehicle inspected and their air bag or air bag cover replaced if necessary. The responsibility for replacing a counterfeit air bag or air bag cover will vary depending on the circumstances surrounding the original installation of the part. More information can be found on the National Highway Traffic Safety Administration’s website at www.nhtsa.gov.

PORTLAND, Ore. – Wilfredo Reyes, 60, of Portland, was sentenced today to three years’ probation including eight months of home detention for falsely reporting a suspicious package on a TriMet MAX train.

According to court records, on June 9, 2017, Reyes called 9-1-1 to report a suspicious package with protruding wires on a MAX train in Portland. During the call, he intentionally conveyed false and misleading information that led the Portland Bureau of Emergency Communications and local law enforcement to believe an explosive had been planted on the MAX train. TriMet police and more than 40 officers from multiple agencies responded to the scene. The Metropolitan Explosive Disposal Unit rendered the device safe and concluded that it did not contain a bomb.

Surveillance cameras revealed that Reyes boarded the train with a backpack, placed it in a seat, walked to another part of the train, and then proceeded to call 9-1-1. He was interviewed by officers at the scene and initially denied being the caller. After the backpack was determined not to contain a bomb, officers found items in it with Reyes's name on them. He was arrested and admitted to owning the backpack and arranging the contents to look like a bomb.

Reyes’ conduct caused a substantial disruption to multiple law enforcement agencies and local businesses. Two business near the Hollywood/NE 42nd Avenue MAX station were evacuated. The station, several streets, and the westbound lanes of Interstate 84 were closed during the investigation.      

Reyes previously pleaded guilty to one count of conveying a hoax bomb threat in violation of 18 U.S.C. § 1038(a) on April 26, 2018.

The Portland FBI Joint Terrorism Task Force investigated this case in coordination with its first response partners Portland Police Bureau, Portland Fire and Rescue and TriMet. The case was prosecuted by Hannah Horsley, Assistant U.S. Attorney for the District of Oregon.

PORTLAND, Ore. – Jesse Lee Brockner, 32, of Portland, was sentenced today to 120 months in federal prison for armed bank robbery and possessing a firearm in furtherance of a crime of violence. Upon completion of his prison sentence, Brockner will be on supervised release for three years.

According to court records, on August 30, 2017, three men burglarized a barn in Yamhill County, Oregon, stealing the victim’s vehicle. Two of the suspects fled in the moving truck and a third in the victim’s vehicle. After Yamhill County Sheriff deputies located, arrested and interviewed the two suspects who fled in the moving truck, they identified Brockner as the third suspect. During a search of the moving truck, deputies found a backpack containing approximately $4,000, drug paraphernalia, and Brockner’s driver’s license.

Later the same morning, Brockner robbed a U.S. Bank branch in Beaverton, Oregon wearing a welding mask and holding a firearm. While executing the robbery, Brockner made numerous threats of physical violence and pointed a handgun at the victim teller. A witness observed Brockner walk through a parking lot adjacent to the bank and enter a vehicle matching the description of the vehicle stolen earlier that morning from the barn in Yamhill County.

Approximately two hours later, an FBI Task Force Officer with the Portland Police Bureau (PPB) observed a vehicle matching the description of the stolen vehicle on the 3900 block of SE Powell Boulevard in Portland. After confirming Brockner’s identity, multiple marked PPB patrol units responded to assist the Task Force Officer. A high risk traffic stop was attempted and led to a vehicle pursuit. The pursuit ended in a crash and an officer involved shooting at NE 55th Avenue between East Burnside Street and NE Couch Street in Portland. Brockner was arrested and transported to Legacy Emanuel Hospital to receive medical attention.           

Brockner previously pleaded guilty to one count of armed bank robbery in violation of 18 U.S.C. §§ 2113(a) and (d) and one count of brandishing a firearm in furtherance of a crime of violence in violation of 18 U.S.C. § 924(c) on May 2, 2018.

This case was investigated by the FBI and prosecuted by Craig Gabriel, Benjamin Tolkoff and John Brassell, Assistant U.S. Attorneys for the District of Oregon.

The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

WASHINGTON – Joseph Mahmoud Dibee, 50, of Seattle, Washington, an accused domestic terrorist and 12-year fugitive, has been apprehended and returned to the United States to face federal criminal charges in Oregon, California and Washington State.

Assistant Attorney General for National Security John C. Demers, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division, U.S. Attorney Billy J. Williams for the District of Oregon, and Special Agent in Charge Renn Cannon of the FBI in Oregon made the announcement.

“Whatever the motivation, terrorism is simply unacceptable,” said Assistant Attorney General Demers. “Domestic terrorism is no exception. Because of the close cooperation between our international and intergovernmental partners, Dibee will now face the consequences for his crimes. This should send a clear message to all other criminals on the run: no matter how long it takes, we will find you and we will bring you to justice.”

“We will always continue in our mission to locate and bring to justice those who threaten our national security or seek to harm the American people,” said FBI Assistant Director McGarrity. “We thank all of the agents, analysts, and the U.S. Attorney’s Office, who have worked tirelessly on this case over the years.”

“More than two decades ago, a loosely affiliated group of environmental extremists set out to express their views using force, violence, sabotage, mass destruction, intimidation, and coercion,” said U.S. Attorney Williams. “Thankfully no innocent lives were taken by these senseless acts. Today we recognize the FBI’s unwavering pursuit of justice in returning longstanding fugitive Joseph Dibee. Dibee will now, as many of his co-conspirators have before, face the consequences of his actions. Using violent means to express one’s views will never be tolerated nor forgotten. We will bring every last person responsible for these crimes to justice.”

“Every act of violence comes with a choice—a choice to do harm,” said FBI Special Agent in Charge Cannon. “A choice to do what may be irreparable damage to a family, a business, or a researcher’s life work. A choice to risk the lives of the firefighters who will respond to an incident. Most of the defendants in the FBI's long-running Operation BACKFIRE investigation have answered for those decisions they made with significant prison sentences and millions of dollars in fines. Mr. Dibee, who traveled the world to avoid capture, will now, finally, have to answer to the allegations of violence he faces.”

Dibee, an American citizen, is charged in the District of Oregon with one count of conspiracy to commit arson, one count of conspiracy to commit arson and destruction of an energy facility, and one count of arson. He also faces one count each of conspiracy to commit arson, possession of an unregistered firearm, and possession of a destructive device in furtherance of a crime of violence in the Western District of Washington and one count each of conspiracy to commit arson, arson of a government building, and possession of a destructive device in furtherance of a crime of violence in the Eastern District of California.

Dibee will make an initial appearance in federal court today at 1:30 p.m. before a federal magistrate judge in the District of Oregon. The government will seek his continued detention.

According to court documents, federal authorities learned Dibee was traveling through Central America on his way to Russia with a planned stop in Cuba. With the assistance of the Cuban authorities, particularly the Ministries of the Interior and Exterior, the U.S. Department of State, the U.S. Department of Homeland Security including the U.S. Coast Guard and U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations and the U.S. Embassy in Havana, the FBI arranged for Cuban authorities to detain Dibee before he boarded a plane bound for Russia, and return him to the United States. Dibee fled the United States in December 2005.

In 2006, a federal grand jury in Oregon indicted Dibee and 11 coconspirators as part of Operation BACKFIRE, a long-running FBI domestic terrorism investigation. The conspirators, known as “The Family,” have been linked to more than 40 criminal acts ranging from vandalism to arson between 1995 and 2001, causing more than $45 million in damages.

Many of the Dibee’s crimes were linked to the Earth Liberation Front (ELF) or the Animal Liberation Front (ALF). Dibee’s “captured” poster can be seen at https://www.fbi.gov/wanted/dt/joseph-mahmoud-dibee.

One fugitive remains at large from Operation BACKFIRE. Josephine Sunshine Overaker, an American citizen believed to be either 43 or 46 years old, fled to Europe in late 2001. Overaker faces 19 felony charges including conspiracy to commit arson, conspiracy to commit arson and destruction of an energy facility, attempted arson, and arson in the District of Oregon, the Western District of Washington, and the District of Colorado. Overaker speaks fluent Spanish and may seek employment as a firefighter, midwife, sheep tender, or masseuse. The FBI continues to offer a reward of up to $50,000 for information leading to her arrest.

An indictment is only an accusation of a crime and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is being prosecuted by Assistant U.S. Attorneys Geoffrey Barrow of the District of Oregon, Andrew Friedman and Thomas Woods of the Western District of Washington and Heiko Coppola of the Eastern District of California, along with Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.

PORTLAND, Ore. – A federal jury today acquitted W. Joseph Astarita, a member of the FBI’s Hostage Rescue Team (HRT) based in Quantico, Virginia, on charges of making false statements and obstruction of justice.

"We thank the jury for their dedicated service and for giving full consideration to an important case. We strongly believe this case needed to be brought before the court and decided by a jury," said Billy J. Williams, U.S. Attorney for the District of Oregon. "Our system of justice relies on the absolute integrity of law enforcement officials at all levels of government."

"The OIG respects the jury’s verdict. We will continue to investigate allegations of misconduct by Department of Justice employees to ensure the integrity of our law enforcement components," said Michael E. Horowitz, U.S. Department of Justice Inspector General. "We also would like to thank the Deschutes County Sheriff’s Office and the Major Incident Team for their assistance with this investigation."

Astarita was one of a number of FBI agents assigned to the armed occupation of the Malheur National Wildlife Refuge and was present during the shooting of Robert LaVoy Finicum on January 26, 2016, in Harney County, Oregon.

Astarita was accused of knowingly and willfully making false statements to FBI Supervisory Special Agents. Specifically, Astarita told his supervisors he had not fired his weapon during the attempted arrest of Finnicum.

A federal grand jury charged Astarita with three counts of making false statements in violation of 18 U.S.C. § 1001 and two counts of obstruction of justice in violation of 18 U.S.C. § 1521(b)(3) on June 20, 2017. One count each of making false statements and obstruction of justice were dismissed pre-trial.

The verdicts concludes a three-week trial during which jurors heard testimony from FBI agents, state and local law enforcement officers, forensic scientists and ballistics experts.

The Department of Justice Office of the Inspector General investigated this case in partnership with the U.S. Attorney’s Office for the District of Oregon. The case was prosecuted by Gary Y. Sussman and Paul T. Maloney, Assistant U.S. Attorneys for the District of Oregon.

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.

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, 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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, 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.

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.

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.”

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.

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.  

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.

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.

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.

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.