District of Oregon
Press releases recorded for this federal judicial district.
Oregon US Attorney's Office Collects over $19 Million in Civil and Criminal Actions in Fiscal Year 2016Read the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced today that the District of Oregon collected $19.1 million in criminal and civil actions in Fiscal Year 2016. Of this amount, $7.5 million was collected in criminal actions and $11.5 million was collected in civil actions.
Additionally, the District of Oregon worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $306,163 in cases pursued jointly. Finally, the District of Oregon, working with partner agencies and divisions, collected $2.39 million in asset forfeiture actions. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. These collections represent more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“The District of Oregon’s Asset Recovery and Money Laundering Division is dedicated to holding accountable those who seek to profit from illegal activities across the state and beyond,” said U.S. Attorney Williams. “Civil and criminal collections demonstrate the significant return on investment that federal law enforcement programs deliver. In fact, our 2016 collections are nearly twice that of our annual operating budget. I want to thank the hardworking public servants in our Asset Recovery and Money Laundering Division” continued Williams, “for their deep commitment to aggressively pursuing financial compensation for victims of crimes, and for protecting government programs from financial exploitation and abuse.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and assistance programs.
The District of Oregon Financial Litigation Unit’s (FLU) efforts to collect restitution for victims of crimes involves regular review of a defendant’s changing financial circumstances and ability to pay. When defendants resist efforts to set up a voluntary and reasonable payment schedule, the FLU pursues wage garnishment, bank accounts, and retirement accounts; depositions; and the seizure and sale of real estate that can be applied to the defendant’s debt.
One example of the district’s recent restitution collection efforts was in the case of U.S.v. Carol Landesman, a Gresham, Oregon psychologist who created false invoices to send to a Catholic diocese for counseling services she did not actually provide. The defendant was ordered to pay restitution in the amount of $113,770, all of which was paid in full at sentencing. Not all cases result in such swift collections, however, and the FLU often spends years pursuing restitution payments from defendants who attempt to hide assets and evade their obligations to fully repay their victims.
One such example of a case requiring ongoing collection efforts over the past year is in the case of U.S. v. Pavel Tokar, who was sentenced in 2006 for fraud and ordered to pay over $90,000 in restitution. After ten years, the defendant had paid less than $10,000 back to his victims. After reviewing several questionable property transactions and scheduling the defendant’s spouse for a deposition to more fully probe the defendant’s financial circumstances, the defendant paid the remaining $81,000 balance in full to avoid further collection efforts.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The single largest civil collection over the past year came from the office’s resolution of a civil fraud case against Holiday Corporation, which operated senior living facilities throughout the country. The investigation, which was prompted by allegations brought by former employees, revealed improper receipt by Holiday of veteran’s benefit payments for care that was not provided, and for care to ineligible veterans. For example, it revealed that Holiday Corporation had falsified information indicating that veterans were entitled to benefits for assistance with their daily living, when in fact those funds were actually paid to Holiday for rent. The settlement agreement included collection of $8.86 million from Holiday.
In another example of civil collections, the U.S. Attorney’s Office and the Oregon State Department of Justice worked jointly to resolve both civil and criminal matters against Tran Pharmacy and its owner for billing Medicare and Medicaid for prescriptions that were filled with generic fish oil capsules. As part of the settlement, the defendant paid over $800,000 to federal and state agencies. One final example includes a civil fraud case against Skamania Public Utility District, which was accused of overstating power line miles to the Bonneville Power Administration (BPA), thereby causing BPA to provide Skamania with a greater discount on its power costs than Skamania was entitled to receive. As part of its settlement, Skamania paid $725,236 to the government.
Oregon Woman Pleads Guilty to Aggravated Identity TheftRead the Press Release
A resident of Portland, Oregon, pleaded guilty today to aggravated identity theft announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and United States Attorney Billy Williams for the District of Oregon.
According to the plea agreement, Roychelle Brown, 45, admitted that she stole personal identifying information of homeless individuals and veterans from her employment at Central City Concern, a program dedicated to helping fight homelessness and joblessness for residents of Portland, Oregon. Brown admitted to collecting the information for individuals she believed had died and providing the stolen identifying information to her sister, Tataneisha White, to use in filing false tax returns claiming fraudulent refunds.
Sentencing is scheduled for March 29, 2017 before the Honorable Robert E. Jones. Brown faces a statutory minimum sentence of 24 months in prison, a period of supervised release, restitution and monetary penalties. In addition, she agreed to pay $2,500 in restitution to Central City Concern to reimburse the non-profit organization for costs incurred as a result of her identity theft. White is currently serving a 37-month prison sentence following her October 2015 guilty plea to conspiracy to file false claims, filing a false claim and theft of government funds. White admitted that she and her co-conspirators, Lori Nicholson, Jasmine Mason, Shawntina Ware and Brandon Leath prepared and filed 227 false income tax returns that claimed a total of more than $1 million in fraudulent refunds. Nicholson pleaded guilty on Nov. 8 and is scheduled to be sentenced on Feb. 22, 2017. Mason pleaded guilty and was sentenced to serve more than two years in prison. Ware pleaded guilty and is scheduled to be sentenced on February 1, 2017. Leath pleaded guilty and was sentenced to serve 24 months in prison.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lori A. Hendrickson and former Trial Attorney Ryan Raybould of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the United States Attorney’s Office for the District of Oregon for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Axis Benefit Administrators Sentenced to 46 Months in Prison for Theft of $3 Million from HRA FundsRead the Press Release
PORTLAND, Ore. – On Wednesday, December 14, 2016, U.S. District Judge Robert E. Jones sentenced Darren Bottinelli, 45, to 46 months in federal prison followed by three years of supervised release. Bottinelli was also ordered to pay $3,093,918 in restitution to his victims.
In March 2016, Bottinelli pled guilty to one count of theft in connection with health care, admitting that between 2009 and 2014 he stole approximately $3 million from individual health reimbursement accounts (HRA) under management by his company, Axis Benefit Administrators, Inc., also known as AXIS Health Partners.
Bottinelli served as the sole shareholder, officer and director of Axis, based in Portland, administering employee health reimbursement and flexible spending accounts for client employers nationwide. According to Axis contracts with employers, the company pledged to post employer contributions to trust accounts for participants who could then seek reimbursement for eligible health expenditures from their account funds.
On March 19, 2014, Bottinelli abruptly closed the Axis office without any communication to client employers or plan participants. As a result, over 3,000 plan participants were unable to access their account funds. Victims reported financial devastation, blocked access to necessary medical treatment and severe emotional trauma as a result of Bottinelli’s theft and failure to provide notice of the company’s closure.
Bottinelli’s client employers included government contractors and other companies who hire hourly and minimum wage contract workers. Some of his clients, including Goodwill Industries of South Texas, Morgan Memorial Goodwill Industries, Job Squad, Cascade Christian Services, VersAbility Resources (formerly known as the Arc of the Virginia Peninsula), and Vets Securing America, employed veterans, mentally and physically disabled adults and other vulnerable individuals.
Bottinelli improperly and repeatedly accessed trust account funds to maintain a luxurious lifestyle, including memberships to exclusive and private clubs, frequent high-end dining, expensive wine purchases, and first class travel.
“Mr. Bottinelli violated the trust placed in him and his company by thousands of honest, hardworking people,” said Billy J. Williams, United States Attorney for the District of Oregon. “These individuals diligently saved a portion of their pay to provide medical care for themselves and their loved ones, only to have their money stolen by Mr. Bottinelli for his own gain. This sentence serves as a reminder,” continued U.S. Attorney Williams, “that those who violate the trust of others under the guise of financial management and security will be vigorously investigated, prosecuted, and punished for their actions.”
“Darren Bottinelli treated these health care reimbursement accounts as his personal ATM without regard for the real hardship that he was causing thousands of hardworking people. These folks lost more than $3 million – money that had been set aside to pay for needed medical care for their families. Today’s prison sentence is a start on making things right, but the suffering he caused these victims will live on for some time,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon.
“Mr. Bottinelli decided to illegally enrich himself at the expense of hard working employees and their employers, and today he was held accountable,” said Jean Ackerman, Regional Director for the U.S. Department of Labor Employee Benefits Security Administration (DOL ESBA). “This case demonstrates how federal agencies work together to vigorously enforce criminal violations committed against employee benefit plans and their participants.”
The case was investigated by DOL ESBA, the FBI, and the U. S. Department of Labor, Office of the Inspector General (USDA OIG). The case was prosecuted by Donna Brecker Maddux, Assistant United States Attorney for the District of Oregon.
Former Oregon State Police Forensic Scientist Sentenced to 36 Months in Prison for Theft of Controlled SubstancesRead the Press Release
PORTLAND, Ore. – On Monday, December 12, 2016, U.S. District Judge Anna J. Brown sentenced former Oregon State Police Forensic Scientist Nika Larsen, 36, of Bend, Oregon to 36 months in federal prison for obtaining controlled substances by misrepresentation, fraud and deception. Following her prison sentence, Larsen will be on one year of supervised release that will include 250 hours of community service.
“An effective criminal justice system requires the highest level of personal integrity from everyone working within the system,” said Billy J. Williams, United States Attorney for the District of Oregon. “If is a single link in this chain is compromised, the equitable administration of justice is at risk. Ms. Larsen’s sentence reflects the severity of her crimes,” continued U.S. Attorney Williams, “and demonstrates our law enforcement community’s commitment to policing its own and protecting the integrity of the justice system.”
In August 2016, Larsen plead guilty to two counts of obtaining controlled substances by misrepresentation, fraud and abuse by using her position as a state forensic scientist to steal controlled substances from evidence items submitted by law enforcement agencies to the Oregon State Police Crime Lab for analysis and testing. Between January 2013 and August 2015, Larsen was found to have stolen over 700 controlled substances in pill form from over 50 separate evidence items. The stolen pills included Morphine, Hydrocodone, Diazepam, Methamphetamine (pill form), Oxycodone and Methadone. Larsen’s offenses occurred primarily in Umatilla and Deschutes Counties at the Oregon State Police Crime Labs in Pendleton and Bend.
The case was investigated by the Oregon State Police and the Oregon Department of Justice, Criminal Justice Division. The case was prosecuted by Pamala R. Holsinger, Assistant United States Attorney for the District of Oregon, and Special Assistant United States Attorney Stephen H. Gunnels from the Deschutes County District Attorney’s Office. Multnomah County Chief Deputy District Attorney Donald N. Rees served as Special Deputy District Attorney for Umatilla County during the case and also represented the Oregon District Attorney’s Association (ODAA).
Daina Vitolins, President of the ODAA, expressed the gratitude of district attorneys statewide to the United States Attorney for Oregon and to the participating district attorneys’ offices for bring this difficult matter to a just close.
Bend Businessman Pleads Guilty to Filing False Tax ReturnRead the Press Release
PORTLAND, Ore. – On Monday, December 12, 2016, Stephen Miles Munson, 72, of Bend, Oregon, pleaded guilty to willfully filing a false tax return. According to court documents, on his 2008 federal income tax return, Munson falsely claimed that he donated 200,000 shares of stock to the University of Oregon and Stanford University. He claimed the shares had an alleged value of $3.2 million. In reality, Munson never made the claimed donations.
On October 8, 2015, Munson was charged in a multi-count indictment with willfully filing a false tax return and bankruptcy fraud. He is a retired U.S. Army Captain with degrees from the University of Oregon and Stanford University. In 1991, Munson started Vulcan Power Company, a geothermal energy company in Bend, Oregon, and served in the company in different capacities, including president and chief executive officer, until 2008. In 2008, he sold a controlling interest in Vulcan Power Company for almost $15 million. On his 2008 federal income tax return, Munson fraudulently claimed that amount as a charitable deduction, and due to his alleged donation, he requested and fraudulently received a $407,019 refund from the Internal Revenue Service for the 2008 tax year. As part of his plea agreement, Munson agreed that the loss to the IRS for the false 2008 tax return was $2,422,202.
In January 2011, Munson entered into voluntary bankruptcy proceedings. According to court records, Munson submitted his false 2008 federal income tax return in support of his bankruptcy and omitted almost $200,000 in assets, more than $200,000 in gifts, more than $7 million in transfers to insiders and affiliates, and a $16,786 state tax refund from his original bankruptcy filings. As part of the plea agreement, Munson agreed that the loss associated with this conduct is approximately $7.5 million.
Sentencing is set for June 9, 2017, at 10:00 a.m. in the United States District Court in Portland, Courtroom 16 before Judge Michael W. Mosman. This case was investigated by the IRS Criminal Investigation Division and the FBI and is being prosecuted by Scott E. Bradford, Assistant United States Attorney for the District of Oregon.
Man Arrested in Springfield, Oregon Sentenced to 57 Months for Firearm PossessionRead the Press Release
EUGENE, Ore. – On December 6, 2016, Troy Joseph Minson, Jr., 28, from Madras, Oregon was sentenced by U.S. District Judge Ann Aiken to 57 months in federal prison for unlawful possession of a firearm. Minson, a convicted felon with outstanding arrest warrants, will be on supervised release for three years following his prison sentence.
On August 3, 2014, the Springfield Police Department received a call that the defendant was at a local deli with a gun. Officers responded and attempted to take Minson into custody when he pulled away from them, jumped over a counter and dropped a loaded .22 caliber Beretta pistol onto the ground. A struggle ensued when Minson resisted arrest, but he was eventually apprehended and taken into custody. Minson has prior felony convictions for burglary in the first degree, delivery of methamphetamine and eluding police.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Springfield Police Department, and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, along with the assistance of Jefferson County District Attorney Steven Leriche.
Portland Metro Law Enforcement Partners United Against All Forms of Hate CrimesRead the Press Release
PORTLAND, Ore. – Early last week, the FBI released its annual statistics on hate crimes in the U.S. The report showed a 67 percent increase in hate crimes committed against Muslim Americans in 2015 as well as increases in hate crimes against members of the Jewish, African American, and LGBT communities. Overall, the number of hate crimes reported nationwide increased six percent – a number that does not account for the many hate crimes that go unreported out of shame or fear.
These figures are deeply concerning to members of our law enforcement community in Oregon. Beyond the 2015 statistics, Oregonians may have seen news reports and social media posts about alleged hate crimes and harassment across the country. These reports have caused many in our community to fear for their own or their loved ones’ safety.
“The United States Attorney’s Office, with our local, state, and federal law enforcement partners, wants to reassure community members that we are united in our efforts to combat hate crimes in any form and to repudiate the targeting of individuals because of their actual or perceived race, color, religion, national origin, disability, sexual orientation, gender or gender identity” said Billy J. Williams, United States Attorney for the District of Oregon. “We remain committed to vigorously investigating and prosecuting all hate crimes.”
If you or someone who you know has been a victim of a hate crime, please report this to your local law enforcement authority. If you are concerned about your safety, please call 9-1-1 immediately.
Victims are encouraged to report all hate crimes to their local law enforcement agency and also to the FBI. Links to Oregon police departments and county sheriffs’ offices are listed below:
- List of Oregon Police Departments
- List of Oregon County Sheriffs’ Offices
For crimes committed in Oregon, the FBI Portland Division can be reached at (503) 224-4181. A list of all local FBI offices is available at: https://www.fbi.gov/contact-us/field-offices. Reports to the FBI can also be submitted online from any state via: https://tips.fbi.gov.
Additionally, the Oregon Department of Justice collects reports of hate crimes to ensure these are passed on to the appropriate authority for investigation via the following web form: https://justice.oregon.gov/crimereporting/hatecrime.
If you have questions about your rights or the hate crime reporting process, please contact any of the following law enforcement agencies in the Portland metro area:
- United States Attorney’s Office – District of Oregon: (503) 727-1000
- Oregon Department of Justice: (503) 378-4400
- FBI – Portland Division: (503) 224-4181
- Multnomah County Sheriff’s Office: (503) 823-3333
- Clackamas County Sheriff’s Office: (503) 655-8211
- Washington County Sheriff’s Office: (503) 629-0111
- Portland Police Bureau: (503) 823-0400
- Gresham Police Department: (503) 823-3333
Central Oregon Man Indicted for Carjacking, Kidnapping, and Firearms OffensesRead the Press Release
EUGENE, Ore. – On Wednesday, November 16, 2016, Edwin Enoc Lara, 31, of Redmond, Oregon was indicted by a federal grand jury in Eugene, Oregon for carjacking, kidnapping, and two counts of brandishing a firearm. The defendant’s federal charges are related to an alleged July 2016 carjacking and kidnapping of a female victim in Salem, Oregon and taking her to California.
Lara is currently in custody in Deschutes County, Oregon where he is facing state charges for aggravated murder in connection with the death of Kaylee Sawyer. Lara is also facing separate state charges in Siskiyou County, California including attempted murder and assault.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty. If convicted of the federal charges, Lara faces a mandatory minimum sentence of seven years and up to life in prison on the firearm charges, a maximum sentence of fifteen years for carjacking and twenty years for kidnapping.
This case is being investigated by the FBI in collaboration with the Redmond Police Department, Bend Police Department, Deschutes County Sheriff’s Office, Oregon State Police, and other local law enforcement agencies in California. Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon, is prosecuting the case.
Child Sex Trafficker Sentenced to 13 Years in PrisonRead the Press Release
EUGENE, Ore. – On Tuesday, November 15, 2016, U.S. District Judge Michael J. McShane sentenced Darryl Tyrone Norwood Jr., 29, of Lane County, Oregon, to 160 months in prison for sex trafficking of a minor. Following his prison sentence, Norwood will be on lifetime supervised release.
In February of 2014, the FBI and the Eugene Police Department (EPD) were investigating the solicitation of commercial sexual activity on the website Backpage.com, and identified a sixteen-year-old minor female. On February 27, 2014, an undercover EPD detective posed as a customer, contacted the minor female and purported to arrange for commercial sex at a Eugene hotel. The minor female victim was driven to the hotel by Wayne Ratliff. Both were detained and interviewed by police. Law enforcement learned that the victim had been trafficked by Norwood on and off for a period of four months, and that Ratliff had at times assisted. Both Norwood and Ratliff were arrested and charged in federal court with sex trafficking of a minor. Ratliff was convicted in July 2016 and sentenced to 63 months in prison.
While trafficking the minor female victim, Norwood rented hotel rooms for her to stay and use for commercial sex acts, told her where to post an online solicitation, drove her to locations to engage in sexual activity and bought her a phone. The victim gave all of the proceeds from the sexual encounters to Norwood who knew that she was sixteen years old for most of the time he was trafficking her. Law enforcement also learned that Norwood trafficked several other women, including a female who was convicted in state court for assault.
Norwood engaged in a pattern of threats, manipulation, and controlling behavior toward the women he trafficked. He has prior convictions in Oregon for Assault in the Second Degree in 2007, and Assault in the Fourth Degree in 2014.
“Sex traffickers use violence, threats and power to manipulate and take advantage of vulnerable victims,” said Billy J. Williams, United States Attorney for the District of Oregon. “Stopping sex trafficking throughout Oregon is a top priority for our office. We will continue to work closely with our federal, state and local law enforcement partners to find, convict and punish those responsible for these horrible and degrading crimes. Furthermore, we will continue to do everything possible to prevent these and similar crimes through outreach and education.”
The investigation of this case was a collaborative effort between the FBI and the EPD Special Investigations Unit. The case was prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.
Owner of Clackamas Property Management Companies Sentenced to 33 Months in PrisonRead the Press Release
PORTLAND, Ore. – On Monday, November 14, 2016, U.S. District Judge Marco A. Hernandez sentenced Cody C. Halsey, 37, to 33 months in federal prison followed by three years’ supervised release. Halsey plead guilty in July 2016 to defrauding nearly 250 clients of his former property management companies, Cascade Community Management and Noah and Associates, both of which were located in Clackamas, Oregon. District Judge Hernandez also ordered Halsey to pay restitution of $1,545,487 to his client victims.
Halsey admitted to embezzling $1,545,487 in tenant rents and security deposits entrusted to his property management companies from 2010 through July 2015. He falsified company records and sent clients false account statements to conceal these thefts. According to the Receiver who took over the property management companies after Halsey’s embezzlement came to light, many property owners who were Halsey’s clients experienced severe emotional and financial distress as a result of his crimes.
“This sentence is a significant sanction for violating your clients’ trust,” said Billy J. Williams, United States Attorney for the District of Oregon. “Business owners who are entrusted with their clients’ money have a special obligation to handle it properly. We will continue to work with our partners at the FBI to identify and prosecute those in positions of trust who steal their clients’ money to enrich themselves.”
This case was investigated by the FBI and prosecuted by Seth D. Uram, Assistant United States Attorney for the District of Oregon.
Assistant United States Attorney for Oregon Receives Prestigious John Marshall AwardRead the Press Release
WASHINGTON – On Thursday, November 10, 2016, Attorney General Loretta E. Lynch presented Adrian Brown, Assistant United States Attorney for the District of Oregon, with the prestigious John Marshall Award for Participation in Litigation.
The John Marshall Awards are the Justice Department’s highest awards offered to attorneys for contributions and excellence in specialized areas of legal performance. Assistant U.S. Attorney Brown was recognized along with ten other 2016 John Marshall Award recipients at the 64th Annual Attorney General Awards ceremony hosted by Attorney General Lynch.
Brown and five other colleagues were recognized for their extraordinary work in securing, alongside private plaintiffs, a landmark settlement agreement remedying systematic discrimination in Oregon’s employment service system for people with intellectual and developmental disabilities (I/DD). Through the team’s outstanding oral and written advocacy, a groundbreaking settlement was secured in Lane v. Brown, the nation’s first class-action lawsuit to challenge a state funded and administered employment service system, relying primarily on sheltered workshops, as a violation of the Americans with Disabilities Act (ADA) integration mandate.
Throughout the more than three-year litigation, the team successfully positioned the department and private plaintiffs to obtain a comprehensive settlement agreement providing relief to approximately 7,000 people with I/DD. These individuals include 1,115 adults who have long been relegated to segregated workshops when they were able and wanted to work in traditional jobs in their communities. 4,900 youth with I/DD will now receive employment services to aid in selecting, preparing for, obtaining, and retaining traditional jobs. The team’s accomplishment serves as a model for integrated employment of persons with disabilities nationwide.
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” said Attorney General Lynch. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
“I am honored and delighted that Adrian was recognized today for her outstanding achievements and important contributions to protecting Oregonians with intellectual and developmental disabilities,” said Billy J. Williams, United States Attorney for the District of Oregon. “Adrian is a critical member of our team whose knowledge and creativity contribute significantly to furthering the mission of the Justice Department across Oregon. Her efforts demonstrate our steadfast commitment,” continued U.S. Attorney Williams, “to protecting our most vulnerable citizens from discrimination. I am proud to work alongside such a talented and dedicated public servant.”
Attorney General Lynch recognized 376 Justice Department employees for their distinguished public service at today’s awards ceremony. Forty-seven other individuals outside the department were also honored with their work. The annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice across the country.
Medford Man Pleads Guilty to Threatening the President of the United StatesRead the Press Release
MEDFORD, Ore. – On Monday, November 7, 2016, John Martin Roos, 62, of Medford, plead guilty in United States District Court to threatening to kill the President of the United States. In separate counts, Roos also pled guilty to threatening to shoot FBI agents and possession of an unregistered explosive device.
Roos admitted in court to using racially inflammatory language in a Twitter post in which he threatened to kill President Barack Obama. In a Facebook post, Roos threatened to “snipe” FBI agents “with hunting rifles.”
Roos was arrested last April while parking his truck outside a Veterans Administration (VA) facility in White City, Oregon. The arresting agent found a loaded semi-automatic pistol underneath the driver side floor mat. A search of Roos’ apartment uncovered more firearms and several pipe bombs.
Based on his guilty pleas, Roos faces up to ten years in federal prison. Sentencing is scheduled for March 16, 2017 before United States District Court Judge Michael McShane in Medford. Roos was ordered to remain in custody pending his sentencing.
This case was investigated by the FBI, VA Police Service, Oregon State Police, and Medford Police Department. The case is being prosecuted by William “Bud” Fitzgerald, Assistant United States Attorney for the District of Oregon
Jury Delivers Verdicts in Oregon Standoff TrialRead the Press Release
PORTLAND, Ore. – A federal jury today delivered its verdicts against seven defendants charged with conspiracy, possession of firearms on federal property, and theft during the 41-day armed occupation of the Malheur National Wildlife Refuge. Jurors found Ammon Bundy, Shawna Cox, David Lee Fry, Jeff Wayne Banta, Kenneth Medenbach, and Neil Wampler not guilty on all counts. Jurors found Ryan Bundy not guilty on charges of conspiracy and possession of firearms, but were unable to reach a verdict on the charge of theft.
Co-defendants Jason Blomgren, Brian Cavalier, Blaine Cooper, Eric Flores, Wesley Kjar, Corey Lequieu, Joseph O’Shaughnessy, Ryan Payne, Jon Ritzheimer, Geoffrey Stanek, and Travis Cox previously pled guilty. Co-defendants Dylan Anderson, Sandra Anderson, Sean Anderson, Duane Ehmer, Jason Patrick, Darryl Thorn, and Jake Ryan will stand trial beginning February 14, 2017. Charges against co-defendant Peter Santilli were previously dismissed.
“While we had hoped for a different outcome, we respect the verdict of the jury and thank them for their dedicated service during this long and difficult trial,” said Billy J. Williams, United States Attorney for the District of Oregon. “We strongly believe that this case needed to be brought before a Court, publicly tried, and decided by a jury. Despite the verdict reached, I want to personally thank all of the law enforcement personnel who worked tirelessly to bring about a peaceful resolution to the Malheur occupation. I also want to thank the residents of Burns, Hines, and Harney County and members of the Burns Paiute Tribe for their patience and resolve throughout this process.”
“For many weeks, hundreds of law enforcement officers – federal, state, and local – worked around-the-clock to resolve the armed occupation at the Malheur National Wildlife Refuge peacefully. We believe now – as we did then – that protecting and defending this nation through rigorous obedience to the U.S. Constitution is our most important responsibility,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “Although we are extremely disappointed in the verdict, we respect the court and the role of the jury in the American judicial system.”
The case was investigated by the FBI and prosecuted by Geoffrey Barrow, Ethan Knight, and Craig Gabriel, Assistant United States Attorneys for the District of Oregon.
U.S. Attorney Williams Announces November 2016 Election Day Program and Appoints District Election OfficerRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced today that Assistant United States Attorney (AUSA) Adrian Brown will lead the District of Oregon’s efforts to protect voting rights and address complaints of election fraud and abuse in the upcoming November 8, 2016 general election. As the District Election Officer, AUSA Brown will oversee local implementation of the Justice Department’s nationwide Election Day Program.
“It is the mission of the Department of Justice and all United States Attorney’s Offices to act promptly and aggressively to protect the integrity of our electoral process,” said U.S. Attorney Williams. “Discrimination, voter interference, and election fraud will not be tolerated. I encourage anyone with knowledge of any voting abuses or fraud,” continued Williams, “to immediately contact my office, the FBI, or the Justice Department’s Civil Rights Division.”
The Department of Justice has an important role in deterring election fraud and discrimination wherever such acts occur. The Justice Department’s longstanding Election Day Program furthers these goals and seeks to ensure public confidence in the integrity of the electoral process. The appointment of a District Election Officer within each United States Attorney’s Office gives voters an easy way to report possible election fraud and voting rights violations.
Federal law protects against such crimes as intimidating, bribing, or impersonating voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. The law also contains special protections for the rights of voters and ensures that all voters can vote without the fear of intimidation or harassment. Actions intended to interrupt or intimidate voters violate federal voting rights law. Federal law also protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
To file complaints of election fraud or other voting rights abuses, please contact AUSA Brown at (503) 727-1000 or Special Agent Caleb Williams with the FBI’s Portland Field Office at (503) 224-4181. Additionally, complaints can filed directly with the Justice Department’s Civil Rights Division Voting Section in Washington, DC by phone (800-253-3931 or 202-307-2767), fax (202-307-3961), email ([email protected]), or online form (go.usa.gov/xkvn4).
Portland Strip Club Operators Sentenced to Prison for Tax FraudRead the Press Release
PORTLAND, Ore. – On Tuesday, October 25, 2016, U.S. District Robert E. Jones sentenced David G. Kiraz to 3 years in federal prison and 3 years’ supervised release, George D. Kiraz to 3 years in federal prison and 3 years’ supervised release, and Daniel G. Kiraz to 12 months and one day in federal prison after their trial conviction in May 2016.
All three men were convicted for conspiring to defraud the Internal Revenue Service (IRS). Additionally, David Kiraz was convicted for filing false income tax returns, and George and Daniel Kiraz for aiding and assisting the filing of a false income tax return. Judge Jones also ordered the defendants to pay restitution of $511,754 to the IRS and $137,654 to the Oregon Department of Revenue.
The defendants operated Cabaret Lounge, a strip club located at 503 W Burnside Street in Portland and Cabaret Lounge II, a strip club located at 17544 SE Stark Street in Gresham. From 2007 through 2010 these clubs collected over $1,500,000 in cover charges and dancer stage fees, all in cash. To hide this money from the IRS, the defendants maintained two sets of books, one set that accurately accounted for all cover charges and dancer fees, and another that did not.
For each year alleged in the indictment, the defendants reported their business activity on the individual income tax return of defendant David Kiraz using a Schedule C, “Profit or Loss from Business.” The defendants knowingly provided their tax return preparers only a two-page summary from the false set of books rather than providing the accurate financial information. This resulted in David Kiraz intentionally underreporting $1,501,874 in taxable income, and causing a federal tax loss of $511,754 and a state tax loss of $137,654 for tax years 2007 through 2010.
“These sentences are significant sanctions for serious crimes,” said Billy J. Williams, United States Attorney for the District of Oregon. “Business owners who deal extensively in cash have the same legal obligation to pay their fair share of taxes as does everyone else. The U.S. Attorney’s Office and IRS,” continued Williams, “will continue to work together to identify and prosecute those who cheat the tax system.”
“Skimming cash and keeping two sets of books cheats not only the United States, but also honest taxpayers that play by the rules and pay their fair share of taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “The Department and the IRS will continue to make the investigation and prosecution of tax evaders like David, George and Daniel Kiraz, a top priority.”
“Our nation’s tax system funds many government services to include our military, infrastructure, and other vital services, so essentially, the Kiraz’s weren’t just cheating the IRS, they were cheating the men and women of our armed forces, anyone who drives our highways, and those who rely on any number of social services for their wellbeing,” said Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “Moreover, besides depriving the U.S. Treasury, tax scoffs shift their tax burden to every taxpayer who pays an honest tax, essentially robbing each and every one of us.”
This case was investigated by IRS Criminal Investigations. It was prosecuted by Quinn P. Harrington and Seth D. Uram, Assistant United States Attorneys for the District of Oregon, and by Department of Justice Tax Division Trial Attorney Leslie A. Goemaat.
Department of Justice Awards over $700,000 to Portland State University Law Enforcement and Justice InitiativesRead the Press Release
PORTLAND, Ore. – The Department of Justice (DOJ) has announced grant program awards in excess of $700,000 will be given to Portland State University (PSU) in support of four campus law enforcement and community justice initiatives. The awards recognize and support the work of both law enforcement and universities in developing new and innovative ways of administering justice programs on and off campus.
The funded programs vary in size, scope and subject matter. A $400,000 grant has been awarded by the DOJ Office on Violence Against Women (OVW) in support of a research partnership between PSU, the Center for Court Innovation, Multnomah County Family Court, and additional community partners. The goal of the project is to generate culturally responsive practices and policies related to procedural justice for survivors of domestic violence.
“We’re thrilled to be conducting one of the very first DOJ grant projects of this kind in the family court setting,” said Anna Rockhill, a senior research associate at PSU’s School of Social Work and co-principal investigator on the project. “We hope to deepen our understanding of the needs of a variety of different cultural and linguistic minority groups and turn those insights into concrete practice and policy recommendations.”
The DOJ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) will give $250,000 to PSU to expand an initiative aimed at reducing sexual violence on college campuses. The additional award will augment a three-year $750,000 award received in 2015-2016 to develop a "situation-based" prevention approach to address campus sexual assault.
In the first phase of the project, PSU College of Liberal Arts and Sciences psychology professor Keith L. Kaufman and co-investigator Sarah McMahon of Rutgers University will tailor Kaufman’s four-step “Situational Prevention Approach” to help identify and address risk factors that can lead to sexual assault. Phase one sites include PSU, Rutgers, and Portland Community College. In the second phase, they will use the resulting implementation manual to guide five additional campuses’ use of the approach and gather feedback to finalize it for national dissemination. The five phase two campuses are: Penn State University, Catholic University, Fairleigh Dickinson University, Northern Virginia Community College, and Linfield College. The new, supplemental award will allow for the inclusion of all five colleges and universities in the critical second phase of the development process.
“Having more campus participants will allow us to strengthen the Campus Situational Prevention Approach to more fully realize its potential to address campus sexual assault,” Kaufman said.
The National Institute of Justice (NIJ), the Justice Department’s lead research and evaluation organization, seeks to improve knowledge and understanding of crime and justice issues through science. NIJ has awarded PSU nearly $40,000 to support National Archive of Criminal Justice Data (NACJD) evaluation and analysis to help criminal justice agencies make informed decisions about the types of research programs they invest and participate in.
Finally, the PSU Campus Public Safety Office will receive $20,000 as part of the Justice Department’s Body-Worn Camera Program.
Each year, the Justice Department offers hundreds of funding opportunities to support law enforcement and public safety activities in state, local and tribal jurisdictions; to assist victims of crime; to provide training and technical assistance; to conduct research; and to implement programs that improve the criminal, civil, and juvenile justice systems. To learn more about DOJ grant opportunities, please visit: www.justice.gov/business/grants.
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About Portland State University
As Oregon's only urban public research university, Portland State offers tremendous opportunity to 29,000 students from all backgrounds. Our mission to "let knowledge serve the city" reflects our dedication to finding creative, sustainable solutions to local and global problems. Our location in the heart of Portland, one of America's most dynamic cities, gives our students unmatched access to career connections and an internationally acclaimed culture scene. U.S. News & World Report ranks us among the nation's top 10 most innovative universities.
Repeat Offender Receives Prison Sentence for Identity Theft and Bank FraudRead the Press Release
PORTLAND, Ore. – On Wednesday, October 19, 2016, a South Korean native with previous federal convictions was sentenced to 39 months in prison for bank fraud, identity theft, and illegal reentry into the United States. Chae Sun Kim, 62, who pled guilty to the charges in March 2016, was sentenced by U.S. District Court Judge Robert E. Jones.
According to court records, between April and May of 2015, Kim and an associate created a Republic of Korea passport using a fictitious name to open numerous bank accounts in the Portland metropolitan area. Using the false identities, Kim opened the accounts using his name and the name of his business, King Blackbox. Subsequent activity with these bank accounts by Kim and others resulted in a loss of more than $18,000 to at least six banks. When executing a search warrant at Kim’s Las Vegas residence, agents found equipment and paraphernalia capable of producing hundreds of fraudulent identifications as well as identification documents in other people’s names.
In 2002, Kim was convicted in the Western District of Washington for conspiracy to defraud the United States, Social Security number fraud, and visa fraud, and was sentenced to 63 months in prison. He was deported in 2007.
Judge Jones ordered Kim to pay $48,718.49 in restitution, including $30,000 to the U.S. Department of Homeland Security (DHS). Judge Jones concluded the sentencing hearing by calling Kim a “crook” and telling him that he cannot return to the United States. Kim assured the court he would not return.
The case was investigated by DHS, Homeland Security Investigations, and the Social Security Administration Office of the Inspector General, Office of Investigations. The case was prosecuted by Helen Cooper, Special Assistant United States Attorney as part of a partnership venture between the SSA Office of the General Counsel, Seattle Region and the United States Attorney’s Office in Portland, Oregon.
Justice Department Sues to Stop Oregon Woman from Promoting Religious Non-Profit Corporation SchemeRead the Press Release
WASHINGTON – The United States has sued an Oregon City, Oregon woman to bar her from promoting an alleged tax fraud scheme, the Justice Department announced today. The government’s complaint alleges that Priscilla E. Schrock promotes the formation and use of “Religious Non-Profit Corporations” (RNPCs), which Schrock falsely informs her customers are exempt from tax laws. According to the complaint, Schrock claims that by assigning income to the RNPC, the customer can avoid paying federal income tax on their income. Schrock also tells her customers that transferring assets to an RNPC protects the assets from the Internal Revenue Service (IRS) collection action, the complaint alleges. The suit asks the court to bar Schrock from promoting and selling the scheme and to order her to provide a list of her customers’ names, addresses, telephone numbers and email addresses to the Justice Department.
According to the complaint, Schrock promotes the scheme through an Oregon City based entity called South Beach Missions. The complaint also alleges that the U.S. District Court for the District of Oregon previously enjoined a similar scheme that John D. Fitzgerald promoted. According to the complaint, Fitzgerald and Schrock are friends and some of Fitzgerald’s former customers are now Schrock’s customers.
According to the complaint, Schrock and South Beach Missions know or have reason to know the statements they make about RNPCs, aka corporations sole, are false sham non-profit corporations. The IRS has issued guidance regarding sham non-profits and advised the public to be aware of tax evasion schemes that misuse corporation sole laws. The IRS has specifically advised that “[a] taxpayer cannot use a corporation sole created to avoid or evade income taxes as a means to exclude the taxpayer’s personal income from tax.”
Abusive tax schemes and return preparer fraud are on the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Former Government Employee Convicted of Defrauding Department of Veterans AffairsRead the Press Release
PORTLAND, Ore. – A former employee of the Deschutes County District Attorney’s Office and the Oregon Department of Justice was sentenced this week to probation for his theft of more than $56,000 from the U.S. Department of Veterans Affairs (VA), the U.S. Department of Agriculture (USDA), and the U.S. Department of Health and Human Services (HHS). Bruce A. Endicott, 34, pled guilty last June to one count of theft of government funds from a six-count indictment. Endicott’s guilty plea was pursuant to a plea agreement, and included Endicott’s admissions to conduct over a course of three years that supported all six counts of the indictment. On Tuesday, U.S. District Court Judge Robert E. Jones sentenced Endicott to a three-year term of probation, 250 hours of community service, and payment of full restitution.
According to court records and the government’s sentencing memorandum which included a detailed timeline of events, Endicott began receiving service-connected disability benefits through the VA in 2005, following his three years of Navy service in San Diego, Calif. In June 2012, Endicott filed an additional claim with the VA for Individual Unemployability (IU) benefits, claiming he was unemployed and unable to be employed due to his service-connected disabilities that included mental and physical impairments. Endicott also submitted a statement to the VA in February 2013, that stated he had not worked within the past 12 months, when in fact, Endicott was currently working at the Oregon Department of Justice under a second Social Security number that he had not disclosed to the VA. Based on Endicott’s false statements and concealments, the VA awarded him additional benefits and advised him to notify the VA immediately if he became employed.
Endicott left the Oregon Department of Justice in December of 2013, and began working for the Deschutes County District Attorney’s Office, and again failed to notify the VA he was working.
After Endicott left the District Attorney’s Office in May 2014, he applied for welfare benefits through the Oregon Department of Human Services (Oregon DHS), using the second Social Security number, and claimed to have no income. Endicott failed to disclose to Oregon DHS that he was receiving approximately $2,700 per month in VA benefits. Based on Endicott’s false statements and concealments, Oregon DHS awarded him Supplemental Nutrition Assistance Program (SNAP) (also known as food stamps) and Temporary Assistance to Needy Family (TANF) benefits.
In February 2015, Endicott submitted a statement to the VA regarding his IU claim, in which he failed to disclose his former employment with the Deschutes County District Attorney’s Office, and falsely asserted that he had not worked in the past 12 months. As a result of his false statements and concealments, the VA continued to pay his IU benefits. Between June 2012 and October 2015, Endicott received approximately $47,947 in IU benefits, $5,996 in SNAP benefits, and $2,770 in TANF benefits to which he was not entitled.
In their argument for jail, the government noted the ongoing and repeated nature of Endicott’s fraud, his purchase of a $65,000 truck instead of paying past-due child support and restitution, the burden of his repeated false claims on the VA and Oregon DHS systems, and the detrimental affect his fraud had on truly deserving veterans whose benefits were delayed due to his conduct. Judge Jones warned Endicott that despite receiving probation, further wrongdoing would result in a much harsher sentence. As a condition of his probation, Endicott was ordered to participate in a mental health treatment program.
The case was investigated by the Criminal Investigations Division of the VA Office of Inspector General, Oregon DHS, and the Social Security Administration Office of the Inspector General, Office of Investigations. The case was prosecuted by Helen Cooper, Special Assistant United States Attorney, as part of a partnership venture between the SSA Office of the General Counsel, Seattle Region and the United States Attorney’s Office in Portland, Oregon.
Assistant U.S. Attorney Recognized for Work on Carson Helicopters Crash InvestigationRead the Press Release
WASHINGTON – On October 20, 2016, Byron Chatfield, Assistant United States Attorney for the District of Oregon, received an Award of Excellence in Investigation from the Council of Inspectors General on Integrity and Efficiency (CIGIE) for his work on the investigation and prosecution of two corporate executives linked to a fatal 2008 wildland fire helicopter crash in the Shasta-Trinity National Forest near Weatherville, Calif.
On August 5, 2008, in the midst of the Iron Complex Fire, deteriorating weather conditions made it necessary to evacuate backcountry firefighters to safety. A helicopter owned and operated by Carson Helicopters, Inc. of Medford, Ore. was dispatched to the location. On a third pick-up attempt, the aircraft, overweight with fuel and passengers, crashed, killing nine and injuring four others. The crash was the deadliest wildland fire aviation disaster in United States history.
Assistant U.S. Attorney Chatfield, along with five other federal investigators, embarked on a seven-year investigation of the crash that led to the conviction and sentencing of two Carson Helicopter executives. The investigation proved that the executives had falsified documents detailing weight capacities and balance charts of their aircraft in order to win more $51 million in Forest Service contracts. All told, the investigation team conducted 246 witness interviews in five different countries, issued 84 trial subpoenas, executed 3 computer forensic exams, and amassed over 129,000 pages of evidentiary discovery.
“I applaud Byron and his colleagues’ extraordinary efforts to investigate, prosecute, and convict those responsible for this unthinkable tragedy” said Billy J. Williams, United States Attorney for the District of Oregon. “The work of Byron and team” continued U.S. Attorney Williams, “demonstrates the tremendous lengths those in our law enforcement community will go to bring justice to individuals responsible for similar acts of fraud.”
To learn more about the investigation and prosecution of this case, please visit: go.usa.gov/xk49g.
CIGIE is an independent entity established within the United States Executive Branch to address integrity, economy, and effectiveness issues that transcend individual government agencies and aid in the establishment of a professional, well-trained, and highly-skilled workforce in the Offices of Inspectors General. To learn more about CIGIE, please visit www.ignet.gov.
Klamath Falls Man Sentenced for Threatening Vietnamese Neighbors and Interfering with their Right to Live in HomeRead the Press Release
MEDFORD, Ore. – On Friday, October 14, 2016, U.S. Magistrate Judge Mark D. Clarke sentenced John Blayne Vangastel, 37, of Klamath Falls, to five years of probation following his guilty plea to one count of using force or threat of force to intimidate and interfere with the housing rights of his neighbors because of their Vietnamese descent.
According to court documents, on the evening of December 30, 2015, Vangastel, who had been living next door to the victims for approximately three months, entered the family’s property without permission. Vangastel then forcibly blocked the family’s front gate so they could not park their vehicles on the property after returning home from work. When one of the family members told Vangastel to let go of the gate and leave the property, Vangastel told the victim he would have to “push [him] off the property.” Vangastel then raised his hand in a balled fist as though he was going to physically assault one of the female family members. He further admitted to instigating a fight with the entire family, threatening to hit them, and making racially-charged comments.
The December 2015 incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for twenty years without incident. As a result of Vangastel’s conduct and out of fear of continued abuse, the family moved from their home.
“The United States Attorney’s Office is committed to protecting the civil rights and freedoms of all Oregonians,” said Billy J. Williams, United States Attorney for the District of Oregon. “Criminal threats of violence that target people and communities because of their national origin threaten the core values that define a fair and just society. We will continue to partner with the Justice Department’s Civil Rights Division to aggressively and effectively prosecute hate crimes throughout the state.”
“Everyone in this country has the right to peacefully occupy their homes without fear of violence or intimidation on account of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Harassing and threatening force against innocent individuals because of where they or their relatives were born is an affront to the fundamental values of this nation, and the Civil Rights Division will continue to prosecute individuals who commit violence motivated by such bias.”
This case was investigated by the Medford Resident Agency of the FBI’s Portland Division in cooperation with the Oregon State Police and Klamath County District Attorney’s Office. The case was prosecuted by William E. Fitzgerald, Assistant United States Attorney for the District of Oregon, and Special Litigation Counsel Fara Gold of the Justice Department Civil Rights Division’s Criminal Section.
Felon Sentenced for Possessing Firearm and Transporting an Individual for the Purpose of ProstitutionRead the Press Release
EUGENE, Ore. – On Wednesday, October 12, 2016, U.S. District Judge Ann Aiken sentenced Barry Phillip Armstrong, 34, of Los Angeles, to 84 months in prison for felon in possession of a firearm and interstate transportation for prostitution. Following his prison sentence, Armstrong will be on supervised release for three years.
Armstrong was contacted by the Eugene Police Department on May 4, 2015, at a hotel in Eugene. Officers determined that Armstrong was acting as a pimp to a female who was engaging in commercial sex, and that Armstrong had transported her from California to Oregon for prostitution. A firearm was later located in a hidden compartment in Armstrong’s vehicle.
Based on Armstrong’s multiple prior felony convictions, he was charged with felon in possession of a firearm. Armstrong was on probation for a similar prostitution conviction in California at the time of his most recent offense. Other prior felony convictions include assault by means likely to produce great bodily injury.
The investigation of this case was a collaborative effort between the Eugene Police Department and the FBI. The case was prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.
Department of Justice Awards over $500,000 to Oregon Law Enforcement Agencies for Body-Worn Camera ProgramsRead the Press Release
WASHINGTON – On Monday, September 26, 2016, Attorney General Loretta E. Lynch announced awards to establish and enhance law enforcement body-worn camera programs across the United States. Four Oregon law enforcement agencies are among 106 state, city, tribal, and municipal law enforcement organizations to receive funding from the grant program.
Washington County, Marion County, the City of Hillsboro, and Portland State University will receive a combined $511,864 dollars from the Body-Worn Camera Program. The program was launched in 2015 in response to a recommendation by the President’s Task Force on 21st Century Policing. Research conducted by the Justice Department’s Bureau of Justice Assistance (BJA) has shown that law enforcement use of body-worn camera programs improve interactions with the public. Over a two-year period, BJA has provided over $41 million to body-worn camera pilot implementation programs.
Billy J. Williams, United States Attorney for the District of Oregon, commended the local recipients of program funding and other Oregon law enforcement agencies committed to leveraging technology to strengthen relationships with their communities. “The principles of community-oriented policing,” Williams said, “require those of us in law enforcement to seek out new and innovative ways to build accountability with those we serve. Body-worn cameras and the local policies and procedures supporting them are an important tool to increase transparency and improve evidence collection both in Oregon and across the country.”
“The body-worn camera federal grant program,” said Patrick Garrett, Washington County Sheriff, “will greatly help our organization test, develop, and implement body camera technology to enhance a deputy’s ability to gather evidence, increase transparency, and bolster public confidence. I am very grateful to the U.S. Attorney’s Office and Department of Justice,” Garrett continued, “for helping us implement this important program.”
“By outfitting our officers with body-worn cameras,” said Lee Dobrowolski, City of Hillsboro Police Chief, “we can demonstrate our commitment to transparency, build trust within the community, and document the good work our officers do every day.”
The Body-Worn Camera Program is funded under the Justice Department’s Office of Justice Programs (OJP). OJP provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. More information about OJP and its components can be found at www.ojp.gov.
Department of Justice Awards over $4.2 Million to Improve Public Safety and Victim Services for American Indians in OregonRead the Press Release
WASHINGTON – On Monday, September 26, 2016, the Department of Justice announced the recipients of grants aimed at improving public safety, supporting victims, and strengthening legal institutions for American Indians and Alaska Natives. Five Oregon tribes and one tribal consortia are among the 131 grantees receiving funding under the Coordinated Tribal Assistance Solicitation (CTAS).
The Burns Paiute Tribe, the Confederated Tribes of the Grand Ronde Community of Oregon, the Confederated Tribes of the Umatilla Indian Reservation, the Coquille Indian Tribe, the Klamath Tribes, and the Columbia River Inter-Tribal Fish Commission will receive a combined $4,220,070 across six different Justice Department grant programs. Each of the six grant programs target a unique aspect of public safety and the administration of justice in tribal communities, including community-oriented policing, alcohol and substance abuse, violence against women, corrections and correctional alternatives, and juvenile justice.
“Research shows that tribal communities live with disproportionate rates of violence and victimization,” said Billy J. Williams, United States Attorney for the District of Oregon. “These awards are a positive step toward ensuring that all Oregonians have access to community justice programs that are adequately funded, effective, and culturally relevant.”
The Justice Department’s CTAS program provides a single application for tribal-specific grant programs and aims to streamline support provided by its Office of Community Oriented Policing Services, Office of Justice Programs, and Office on Violence Against Women. Since 2010, under CTAS, more than 1,600 grants totaling more than $726 million have been awarded to tribal communities across the country. To learn more about CTAS, please visit www.justice.gov/tribal/grants.
U.S. Attorney and Distinguished Guests Attend Inaugural Community Policing Awards CeremonyRead the Press Release
WASHINGTON – On Thursday, October 6, 2016, Billy J. Williams, United States Attorney for the District of Oregon, Captain Kevin Modica from the Portland Police Bureau, and Reverend Dr. LeRoy Haynes Jr. from the Albina Ministerial Alliance attended the inaugural Distinguished Service in Community Policing Awards Ceremony at the Justice Department’s headquarters in Washington, D.C.
U.S. Attorney Williams praised his guests’ hard work and commitment to community policing throughout the Portland area. “Community policing is founded in the commitment of both law enforcement and citizens working together to build trust and safer neighborhoods. I admire Captain Modica and Rev. Dr. Haynes’s leadership in building bridges between our law enforcement agencies and the communities they serve. True community-oriented policing,” Williams continued, “is not a goal that can be achieved overnight, but with the hard work of these two men and others in our community, I am confident that our work will be a success.”
Attorney General Loretta E. Lynch and Deputy Attorney General Sally Q. Yates delivered remarks at the inaugural event, along with Ronald Davis, Director of the DOJ Office of Community Oriented Policing Services (COPS). The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local or tribal sworn police officers and deputies who exemplify remarkable achievements in innovative community policing strategies, criminal investigations, and field operations.
The awards ceremony was held in conjunction with National Community Policing Week. During the week of October 2-8, 2016, the Justice Department will host nearly 400 events to support community policing efforts around the country. To learn more, please visit go.usa.gov/xkxEU.
Methamphetamine Dealers Sentenced to PrisonRead the Press Release
EUGENE, Ore. – On Tuesday, October 4, 2016, U.S. District Judge Ann Aiken sentenced Julio Cabrera-Cardoza, 34, to 60 months in prison for possession with intent to distribute methamphetamine. Following his release from prison, Cabrera-Cardoza will be on supervised release for four years. On December 11, 2015, Judge Aiken sentenced Cabrera-Cardoza’s co-defendant, Haven Penselin, 55, to 60 months in prison and five years of supervised release for possession with intent to distribute methamphetamine and felon in possession of a firearm.
On May 23, 2013, an undercover officer arranged to purchase a pound of methamphetamine from Penselin. Penselin and Cabrera-Cardoza arrived at the agreed upon location and were contacted and searched. Cabrera-Cardoza had a pistol and two pounds of methamphetamine, one on his person and one in his vehicle. Penselin had a pistol, a scale, and packaging material in his vehicle. Cabrera-Cardoza, a repeat offender, was convicted in 2007 for possession of a controlled substance with intent to deliver.
The investigation of this case was a collaborative effort between the DEA, Springfield Police Department, and Linn County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
U.S. Attorney's Office Hosts Peer Court Training for High School Students from Chemawa Indian SchoolRead the Press Release
PORTLAND, Ore. – On September 26, 2016, Billy J. Williams, United States Attorney for the District of Oregon, welcomed 45 high school students from the Chemawa Indian School’s Youth Peer Court Program to the U.S. Attorney’s Office in Portland for a day of interactive training on the principles of restorative justice. The Chemawa Youth Peer Court is a program designed to divert young, first-time offenders away from formal juvenile court proceedings into an informal peer-based process in a culturally appropriate setting.
The program is designed to incorporate components of restorative justice to hold youth accountable for their offenses and prevent future delinquency. The juvenile offenders assume responsibility for their behavior and accept the consequences of their actions through community service work, a punishment sanctioned by a peer court jury, and by serving on a future peer court jury themselves.
U.S. Attorney Williams said that “in addition to giving the students a second chance, and a meaningful opportunity to make reparation, the Chemawa Youth Peer Court promotes self-esteem, motivation for self-improvement, and respect for the opinions of others. It also provides valuable challenges and opportunities for the peer court jurors to experience self-government and responsible citizenship.”
The distinguished faculty for the training included Warm Springs Tribal Judge Lisa Lomas, Tribal Prosecutor Nancy Seyler, and Tribal Juvenile Prosecutor Cecelia Collins; Marion County Deputy District Attorney David Wilson and Deputy Sheriff David White; Mr. Don Kelley, a Silverton-based attorney who brings more than a decade of volunteer experience with the Silverton Peer Court; Lewis and Clark Law School students Dayna Jones, Nic Sanchez, and Katie Gargan from the Native American Law Student Association; and the Chemawa Indian School’s Peer Court Coordinator Cynthia Schaeffer and Vice Principals Ryan Cox and Joel Chavez. Assistant United States Attorneys Suzanne Hayden, Jennifer Martin, and Paul Maloney organized the training and also served as faculty.
The Chemawa Indian School in Keizer, Oregon, is one of four off-reservation boarding schools for American Indians and Alaska Natives in the nation. Over 300 students from 19 states and more than 13 federally-recognized tribes attend the Chemawa Indian School. For more information about the school, please visit www.chemawa.bie.edu.
Gervais Man Sentenced to Seven Years in Prison in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – On Thursday, September 22, 2016, U.S. District Judge Michael H. Simon sentenced Adam Michael Groat, 28, of Gervais to seven years in federal prison and a life term of supervised release after Groat’s previous pleas of guilty to three counts of distributing child pornography, three counts of receiving child pornography, and one count of possession of child pornography.
Separate investigations by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI) revealed that Groat repeatedly traded numerous images of child pornography with various people online. The HSI investigation revealed that Groat traded child pornography with an offender in Arizona who was the subject of another investigation. The FBI investigation revealed that Groat traded child pornography with a woman in Texas who was also the subject of another investigation. Forensic examinations of Groat’s computer equipment revealed hundreds of child pornography images and videos, including materials depicting prepubescent minors engaged in bestiality and sadomasochistic conduct.
At the sentencing hearing, Judge Simon noted that trading in child pornography has the effect of normalizing the sexual abuse of children. He recognized the continuing harm to the children depicted in the images and video, and noted that the proliferation of child pornography assures that child sexual abuse will continue. Judge Simon also stated that a civilized society must protect its most vulnerable members – its children.
Judge Simon imposed a lengthy and stringent list of conditions with which Groat must comply while on supervised release. These include limitations on contact with minors, a requirement to undergo mental health and sex offender treatment, restrictions on where Groat may work and reside, and restrictions on computer usage and access to the Internet. Groat will also be required to register as a sex offender. Groat said he was “truly sorry and regretful” for his conduct.
“Trading in images of the sexual abuse of children is criminal, despicable, and cannot be tolerated in a civil society,” said Billy J. Williams, United States Attorney for the District of Oregon. “The children shown in the images are victimized anew each time images of their abuse are uploaded, downloaded, traded, or viewed,” he added. “By actively trading in those images, Adam Groat prolonged the harm each of the victims suffered,” Williams noted. Groat’s sentence “should serve as a stern warning to anyone inclined to trade in child pornography that such actions cause serious harm and will result in serious consequences.”
The investigation was conducted by HSI and the FBI. This case was prosecuted by Special Assistant U.S. Attorney Bumjoon Park and Assistant U.S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Portland Metro Event Aimed to Build Relationships and Trust Between Public Safety and Community LeadersRead the Press Release
TIGARD, Ore. – On Thursday, September 22, 2016, leaders from public safety agencies and civil society organizations from across the Portland metropolitan area met to discuss barriers to building community trust and identify strategies for overcoming these challenges. The one-day summit was held at the Muslim Educational Trust (MET) in Tigard.
The event was the culmination of efforts by a diverse steering committee, established with the core purpose of developing trust and relationships in our communities amidst heightened tension and political rhetoric.
“The erosion of public trust in police, prosecutors, and judges within our judicial system poses a significant impediment to community trust, as well as the safety of community members and our law enforcement partners across the nation,” said Billy J. Williams, United States Attorney for the District of Oregon. “Oregon is not immune to the issues that create and perpetuate this lack of trust. This event is another step forward in building these critical relationships and ensuring the safety of all Oregon communities, and the law enforcement personnel who serve honorably to protect us.”
A series of panel discussions featured representatives from public safety and civil society organizations from across the region, including the Urban League of Portland, Latino Network, Unite Oregon, Catholic Charities of Portland, Portland Police Bureau, Washington County District Attorney’s Office, Washington County Sheriff’s Office, and U.S. Immigration and Customs Enforcement. Opening remarks were provided by MET President Wajdi Said and Washington County Sheriff Pat Garrett. The event’s keynote speaker was Dr. Shariff Abdullah, founder and president of the Commonway Institute.
For more information about the event, please contact MET Director of Public Relations Rania Ayoub at [email protected], Washington County Sheriff Pat Garrett at [email protected], or Assistant U.S. Attorney Suzanne Hayden at [email protected].
Methamphetamine Dealer Sentenced to PrisonRead the Press Release
EUGENE, Ore. – On Tuesday, September 20, 2016, Robert Dewane Lacey, 47, was sentenced to 49 months in prison by U.S. District Judge Michael J. McShane for possession with intent to distribute methamphetamine. Following his release from prison, Lacey will be on supervised release for three years.
On March 5, 2015, a Springfield Police Officer stopped a vehicle being driven by Lacey. The defendant initially lied about his identity before disclosing his true name and admitting that he was wanted. The vehicle was searched and several ounces of methamphetamine were located, along with more than $20,000 cash. Lacey has prior convictions including transporting or selling a controlled substance, felon in possession of a firearm, and second-degree burglary. Lacey’s 49-month federal sentence is in addition to a 14-month sentence he served on an unrelated state case.
Investigation of the case was a collaborative effort between the Springfield Police Department and the DEA. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Investigators, Prosecutors Combat Financial FraudRead the Press Release
SALEM, Ore. – For the 16th consecutive year, a unique financial crimes conference is being held in Oregon. The Financial Crimes & Digital Evidence Conference brings together fraud fighters from across the country to educate and build networks in an effort to effectively combat financial fraud.
On September 20, 2016, attendees will gather for a three-day conference at the Salem Convention Center to sharpen their financial fraud investigation and prosecution skills. Speakers will address emerging trends in financial and digital crime, including digital forensics, business email compromise scams, cyber credit card fraud, and tax refund schemes. Attendees will learn from case studies in the financial exploitation of elders, real estate fraud, and insurance scams. State and federal agencies will highlight the investigation resources their agencies offer in an effort to encourage partnership and improve outcomes.
Financial fraud results in billions of dollars of losses annually in the United States. Fraud investigators and prosecutors in Oregon are determined to reduce harm to consumers and to hold more offenders accountable.
The 2016 Financial Crimes & Digital Evidence Conference is sponsored by the U.S. Attorney’s Office and the Oregon Department of Justice. Event programming was developed by the Financial Crimes and Digital Evidence Planning Committee, comprised of federal, state, and local law enforcement, prosecution, and fraud investigation leaders and private sector partners.
The conference is open to all city, county, state, and federal law enforcement officers and prosecutors and other fraud investigation, auditing, and security personnel from both the public and private sectors who assist in the investigation of financial crime. For more information, please contact Donna Maddux at [email protected] or visit www.financialcrimesconference.com.
Convicted Sex Offender Sentenced to Ten Years in Prison in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – On Monday, September 19, 2016, U.S. District Judge Marco H. Hernandez sentenced Samuel Ira Dowell to 10 years in federal prison and 15 years’ supervised release after the defendant pleaded guilty to possession of child pornography. Dowell, 31, was on post-prison supervision following an Oregon state conviction for attempted first-degree sexual abuse when he committed the offense for which he was sentenced.
In the federal case, Dowell met a 13-year-old girl on an Internet website and exchanged sexually explicit correspondence with her online and by telephone for a period of time. They spoke of meeting in person, engaging in various sexual activities, and having children together. Dowell’s activities came to light after the victim’s mother discovered their communications and reported them to her local police department. Investigators identified Dowell and learned that he was a convicted sex offender living in Oregon. During a home visit, Dowell’s probation officer discovered evidence of his communications with the victim. A forensic examination of the defendant’s computer equipment revealed sexually explicit images and videos of the victim and other children. Dowell and the victim, who lives in another state, never met in person.
Judge Hernandez described the nature and circumstances of the offense as “horrible,” and Dowell’s history and character as “deeply disturbing.” Seeing Dowell as a danger to the community, particularly to children, Judge Hernandez imposed a lengthy and stringent list of conditions with which Dowell must comply while on supervised release. These include prohibitions on contact with minors (including the victim and her family), a requirement to undergo mental health and sex offender treatment, restrictions on where Dowell may work and reside, and restrictions on computer usage and access to the Internet. Dowell, who told Judge Hernandez that he was prepared to accept the consequences of his actions, will also be required to register as a sex offender.
“The defendant’s conduct in this case is alarming,” said Billy J. Williams, United States Attorney for the District of Oregon. “Dowell is a convicted sex offender who took advantage of a vulnerable adolescent girl he met online and continued to exploit her, even after her mother attempted to intervene. This sentence,” continued U.S. Attorney Williams, “is a significant sanction for very troubling behavior that we, as a society, are simply not willing to tolerate.”
The investigation was a collaborative effort on the part of the local police department in the victim’s hometown, the Multnomah County Department of Community Justice, the Multnomah County Sheriff’s Office, and the U.S. Department of Homeland Security, Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
National Prescription Opioid and Heroin Epidemic Awareness Week to Examine Oregon EpidemicRead the Press Release
PORTLAND, Ore. – On Wednesday, September 21, 2016, leaders from local, state, and federal law enforcement and public health agencies will co-host “Taking Stock,” a roundtable discussion examining Oregon’s prescription opioid and heroin epidemic.
“The Department of Justice plays a critical role in building community coalitions to fight this epidemic, said Billy J. Williams, United States Attorney for the District of Oregon. This country is facing a crisis of heroin and opioid overdose deaths. We cannot arrest our way out of an epidemic that is causing such preventable loss of life. We must work together in Oregon to save lives through innovative partnerships between public safety and health. This event is a step forward in our effort to support a coordinated response across all elements of government and the private sector to address not only drug enforcement, but also prevention and treatment.”
The U.S. Attorney’s Office, Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and the Oregon Department of Justice will meet with local law enforcement and public health leaders to discuss issues surrounding the crisis. Opening remarks will be provided by U.S. Attorney Williams and Oregon Attorney General Ellen Rosenblum. Participants will also have the opportunity to hear perspectives from the Oregon Medical Examiner’s Office, the Oregon High Intensity Drug Trafficking Area Program (HIDTA), the Tri-County Public Health Departments, Lines for Life, and the DEA.
The roundtable discussion will take place at the Oregon Department of Justice in Portland from 8:00AM to 12:00PM. Members of Oregon’s law enforcement and public health communities are invited to attend. For event information, please contact Suzanne Hayden, Assistant U.S. Attorney, at [email protected] or (503) 727-1000.
This event is being held in conjunction with the National Prescription Opioid and Heroin Epidemic Awareness Week to raise awareness of the growing epidemic of opioid and heroin abuse in the U.S. For more information, please visit http://go.usa.gov/xKwCG.
Nevada Woman Sentenced for Stealing Deceased Mother's Social Security BenefitsRead the Press Release
PORTLAND, Ore. – On Monday, September 12, 2016, the daughter of a deceased Social Security beneficiary was sentenced to probation for stealing more than $48,000 of benefits mistakenly paid to her mother following her death. Michelle Lee Cox, 43, pled guilty to theft of government funds in May, and was sentenced by U.S. District Court Judge Michael H. Simon on Monday to five years’ probation.
According to court records, Cox’s mother was receiving Social Security benefits at the time of her death in 2009, at the age of 70. The mother’s death was properly recorded in government records, but Treasury checks continued to be mailed each month to the residence the mother shared with Cox. Cox deposited the checks to an account she had jointly owned with her mother and converted the funds to her own use. When Cox moved to Nevada in 2013, she directed the Social Security Administration (SSA) to electronically deposit the benefits to the bank account.
Among Cox’s conditions of probation were several financial conditions and the requirement that Cox participate in a mental health treatment program approved by her probation officer. Cox was also ordered to pay full restitution to the SSA in the amount of $48,700, and to perform 200 hours of community service.
The case was investigated by the SSA Office of the Inspector General, Office of Investigations, and was prosecuted by Special Assistant U.S. Attorney Helen Cooper as part of a partnership venture between the SSA Seattle Region, SSA Office of the General Counsel, and the U.S. Attorney’s Office in Portland, Oregon.
Former Deschutes County Sheriff Captain Sentenced to Five Years in Prison for Theft of Public Funds and Money LaunderingRead the Press Release
EUGENE, Ore. – On Thursday, September 8, 2016, Scott Raymond Beard, 46, a former Deschutes County Sheriff Captain and resident of Deschutes County, Oregon, was sentenced to five years in prison by U.S. District Judge Michael J. McShane for stealing over $200,000 in public funds he was entrusted to manage. At least sixty-three times over a two-year period, Beard falsified records to steal money designated for use in combating drug crimes.
At the sentencing hearing, Deschutes County Sheriff Shane Nelson attested to the damage Beard’s abuse of trust caused to the community, and to the men and women working in law enforcement. Sheriff Nelson explained that Beard “betrayed the ideals of the law enforcement profession. He was in a position of absolute trust, and he abused this trust for his own gain.”
Judge McShane acknowledged the importance of citizens being able to have complete trust in those called to serve their communities as police officers. When imposing the sentence, he admonished Beard that the community has to know that this conduct will not be tolerated. Judge McShane pointed to Beard’s pervasive violation of the public trust placed in him by Sheriff Nelson, fellow law enforcement officers, state prosecutors, and his own community. Judge McShane further ordered Beard to serve three years of supervised release after he completes his prison term.
During the investigation, Beard told federal agents that he donated $10,000 of the stolen money to a South African orphanage. Orphanage records show that his actual donation was less than $92. In reality, Beard laundered the money through the bank account of his mistress, Krista Jean Mudrick, showering her with cash to support a lifestyle that included vacations and multiple cosmetic surgeries for Mudrick.
The sentencing followed Beard’s May 2016 guilty plea to two counts of theft concerning programs receiving federal funds and two counts of money laundering. An audit ordered by newly appointed Sheriff Nelson uncovered Beard’s crimes. After a federal grand jury returned an indictment against Beard and Mudrick, the Sheriff’s office fired him. Mudrick has also been federally charged with making materially false statements to federal agents investigating Beard’s crimes.
U.S. Attorney Billy J. Williams said “Law enforcement officers who steal public funds harm the entire community. We rely on the honesty and integrity of every law enforcement officer to do the right thing. Beard’s greed undermined the good work done by his fellow officers and this sentence sends a clear signal that crimes committed by law enforcement officers will be prosecuted to the full extent of the law.” Special Agent in Charge Darrell Waldon of IRS Criminal Investigation commented that “Criminals are sentenced to prison every day for actions driven by greed, but the level of greed that Beard sunk to is really beyond belief. This is an individual who, as a member of the law enforcement community, took an oath to uphold the law.”
The FBI and IRS-CI jointly investigated this case and it was prosecuted by Assistant U.S. Attorneys Christopher Cardani and Frank R Papagni, Jr.
Local Business Leader Sentenced to Two Counts of Wire FraudRead the Press Release
EUGENE, Ore. – On Tuesday, September 6, 2016, U.S. District Judge Ann Aiken sentenced Terry Shockley, 63, to fifty-one months in prison following his April 2016 guilty plea to two counts of wire fraud. Shockley admitted to defrauding clients and investors through his now-defunct property management company, TS Property Management (TSPM).
Over the past two decades, TSPM grew to be a trusted rental and property management resource for Eugene property owners and students alike. When payments Shockley owed his clients began to run late and complaints were made to the Oregon Real Estate Agency, the true financial health of the company began to unravel. The investigation revealed that Shockley struggled with financial issues and was operating under insurmountable debt. He ran TSPM like a Ponzi scheme and also used client money to fund the purchase of a second home in La Pine, Oregon, as well as other lifestyle expenses.
TSPM was an influential local business in Eugene and attracted clients and investors not only from Lane County, Oregon, but from across the country and internationally. U.S. Attorney Billy J. Williams said, “The collapse of TSPM sent shockwaves throughout the Eugene community as property owners learned that a trusted adviser had taken advantage of their faith in his business and in him. This sentence reflects the severity of the defendant’s crimes and the degree to which he exploited individuals in his community and elsewhere for his own financial gain.”
Shockley admitted that his actions resulted in the loss of over $4.5 million to his clients and investors and agreed to entry of a restitution order reflecting those losses. He also admitted to specific details of his scheme, which included operating the company under materially false pretenses while claiming that client money was held in trust and that TSPM was thriving financially.
The case was investigated by the FBI and the Oregon Real Estate Agency and prosecuted by Assistant U.S. Attorney Nancy M. Olson.
Child Sexual Predator Sentenced to 60 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – On Thursday, September 8, 2016, U.S. District Judge Michael H. Simon sentenced Steven Douglas Rockett to 60 years in federal prison followed by a life term of supervised release. Rockett, 47, was convicted by a federal jury in Portland, Oregon for producing child pornography outside the United States, engaging in illicit sexual conduct in foreign places, producing and attempting to produce child pornography (five counts), and possession of child pornography after a seven-day trial in May of this year.
Prosecutors presented victim impact statements from Filipino child victims as well as statements from Rockett’s victims in Oregon. The prosecutors urged the Court to impose a sentence of no less than 60 years – 45 consecutive to Rockett’s 52.5-year sentence in Oregon State court for crimes committed against a number of different victims. Rockett’s attorneys requested the mandatory minimum sentence of 15 years, imposed to run concurrently with Rockett’s state sentence, which is presently on appeal. “One of civil society’s most important duties and obligations is to protect the most vulnerable among us. Children are the most vulnerable,” observed Judge Simon before agreeing with the prosecution’s recommendation and sentencing Rockett to 60 years – 45 to be served consecutive to the Rockett’s state sentence.
Judge Simon noted that these were “extremely serious offenses.” He expressed doubt that Rockett could refrain from committing further crimes if released from prison. Judge Simon imposed a sentence designed to ensure that Rockett would not harm any other children stating, “I don’t think you are capable of restraining yourself.”
The evidence presented at trial established that Rockett traveled to the Philippines, where he sexually abused Filipino children, and produced or attempted to produce child pornography depicting them. The evidence also established that Rockett solicited children (either directly or through a parent) both in the Philippines and in Oregon, to take and send him sexually explicit images of themselves. In addition, Rockett surreptitiously recorded children undressing and showering at his residence in Forest Grove, at a former residence in Aloha, and in hotel rooms in the Philippines.
The investigation was a collaborative effort on the part of the Forest Grove Police Department, the Washington County Sheriff’s Office, and the FBI. Investigators executed search warrants at Rockett’s residence, and seized computer equipment and digital data storage devices. Investigators found a pin-hole camera hidden in a wall in a guest bathroom, which Rockett used to record images of naked children. Another spy camera, hidden inside a clock radio, contained surreptitious video recordings of naked Filipino children in the bathroom and shower of Rockett’s hotel room. Rockett appeared in some of the videos.
FBI Special Agents traveled to Cebu City, Philippines, where they identified and interviewed some of the victims depicted in the videos, and some of the children who Rockett solicited to send him sexually explicit images. The jury heard testimony from seven victims who were sexually abused or exploited by Rockett in Oregon and overseas. The jury deliberated several hours before reaching their verdict.
“This sentence is a just and deserving punishment for a dangerous sexual predator, and reflects the life-long impact his conduct will have on his victims,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I am grateful for the dedication and collaboration between the federal government and our state and local partners who diligently followed the evidence in this case, and for their continued efforts to keep children safe here in Oregon and outside the United States.” Williams added, “We will not tolerate American citizens traveling abroad to sexually abuse children. Child sexual predators like Steven Rockett must understand that the sexual exploitation of children carries severe consequences, as Judge Simon’s sentence clearly demonstrates.”
“Effectively, Steven Rockett will, rightfully, live the rest of his life behind bars. I would ask the community to remember that the innocent children who suffered his abuse will also pay a heavy price for many years to come,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “No child deserves to live a life of violence and violation, and it is our responsibility to bring justice to them and their families.”
This case was investigated by the Forest Grove Police Department, the Washington County Sheriff’s Office, the FBI, the Northwest Regional Computer Forensics Laboratory, and the Washington County District Attorney’s Office. Assistant U.S. Attorneys Paul T. Maloney and Gary Y. Sussman prosecuted the case in federal court.
This case stemmed from a coordinated investigation by members of the FBI Child Exploitation Task Force and was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Canby Man Sentenced to Prison for Stealing More Than $294,000 in Social Security BenefitsRead the Press Release
PORTLAND, Ore. – On Wednesday, September 7, 2016, the grandson of a deceased Social Security beneficiary was sentenced to prison for stealing more than $294,000 of benefits mistakenly paid to his grandmother following her death. Ricky Lee Carlson, 63, pled guilty to theft of government funds in May, and was sentenced by U.S. District Court Judge Marco A. Hernandez to 12 months and one day in prison.
According to court records, Carlson’s grandmother was using two different names and Social Security numbers at the time of her death in 1986. The Social Security Administration (SSA) was notified of the death under one identity, but her benefits continued to be paid each month under the other identity. In April 1995, Carlson opened a bank account in his grandmother’s name, and directed SSA to deposit her benefits into that account. Carlson then converted the funds to his own use by writing checks payable to himself, paying bills, and making ATM withdrawals. Between March 1986 and December 2013, Social Security benefits in the amount of $303,960.60 were improperly paid on the grandmother’s behalf. When SSA discovered the theft, only $9,518 remained in the account.
Carlson was ordered to surrender to the Bureau of Prisons to begin his sentence on January 17, 2017. The court also ordered him to pay restitution to SSA for the full amount of benefits stolen, and to serve a three-year term of supervised release.
The case was investigated by the SSA Office of the Inspector General, Office of Investigations, and was prosecuted by Special Assistant U.S. Attorney Helen Cooper as part of a partnership venture between the SSA Seattle Region, SSA Office of the General Counsel, and the U.S. Attorney’s Office in Portland, Oregon.
Leader of Heroin Conspiracy Sentenced to over 12 Years in PrisonRead the Press Release
PORTLAND, Ore. – On Tuesday, August 30, 2016, U.S. District Judge Robert E. Jones sentenced Christopher Guillen-Robles to 151 months in prison followed by five years of supervised release, and entered a money judgment of $150,000 against the defendant. The sentencing followed the defendant’s earlier guilty pleas to conspiracy to distribute and possess with intent to distribute heroin and conspiracy to commit money laundering.
Agents of the U.S. Drug Enforcement Administration (DEA) and other partner agencies arrested Guillen-Robles and over 20 co-defendants in February 2015 after an investigation which began in mid-2014. Through a complex investigation, involving a lengthy set of wiretaps, agents determined that Guillen-Robles led a drug trafficking group that was importing black tar heroin from the state of Nayarit in Mexico to the Portland area and then distributing it to other cells operating in Oregon. The group was also involved in significant money laundering through bulk cash smuggling, wire transfers, and bank deposits, with the cash proceeds of heroin distribution eventually going to Mexico. The investigation involved several large seizures of heroin and cash.
U.S. Attorney Billy J. Williams said, “This case demonstrates the sophistication and means by which Nayarit-based enterprises have flooded the Portland area with black tar heroin and the immense monetary profits involved in their illegal drug activity. It comes at a time when Oregon and the rest of the United States are experiencing an epidemic of opiate addiction, abuse, and overdose deaths. The sentence recognizes the seriousness of this activity and the importance of the investigation and prosecution.”
The investigation was led by DEA Portland with significant contributions made by the drug teams of the Portland Police Bureau Drugs and Vice Division, Clackamas County Interagency Task Force, Westside Interagency Narcotics Team, and U.S. Department of Homeland Security.
The case was prosecuted by Assistant U.S. Attorneys Thomas H. Edmonds and Steven T. Mygrant.
Milwaukie Man Sentenced to Prison for Stealing from his Disabled CousinRead the Press Release
PORTLAND, Ore. – The former legal guardian for his cognitively disabled cousin, was sentenced to 30 months’ imprisonment for stealing more than $570,000 in annuity payments that were intended for the cousin’s care. Michael R. Braun, 68, was sentenced by U.S. District Court Judge Anna Brown on Monday for his commission of wire fraud that was ongoing for more than 22 years. Braun was also ordered to pay $573,604 restitution and serve a three-year term of supervised release.
According to court records, prior to 1984, Braun’s cognitively-disabled cousin, A.M., was residing with his parents in California. A.M.’s father was a retired Navy commander, and had purchased an annuity through the Defense Finance and Accounting Services (DFAS) on behalf of A.M. in the event of the father’s death. In 1984, when A.M. was 22 years-old, both of A.M.’s parents died within a few months of each other. Braun, then 37 years old, was appointed as the legal guardian of A.M., and brought A.M. to Oregon. As A.M.’s legal guardian, Braun became the recipient of the DFAS annuity payments on A.M.’s behalf, and was required to use the payments for A.M.’s care, and to notify DFAS if he was no longer A.M.’s guardian.
Shortly after bringing A.M. to Oregon in 1984, defendant placed A.M. in the Fairview Training Center, and defendant thereafter had limited contact with him. Social service notes from 1984 state that "The Brauns are [A.M.’s] only family and are very concerned and active people." Case-worker notes in 1989 state that Braun had not been very involved with A.M.
In 1990, Braun was discharged as A.M.’s guardian by the Circuit Court of Washington County; however, Braun failed to notify DFAS that he had been removed as A.M.’s legal guardian. Between January 1990 and February 2013, Braun submitted a Certificate of Eligibility to DFAS each year certifying he was A.M.’s legal guardian, when in fact he knew he was not and knew he was not using the annuity payments for A.M.’s care. Additionally, in 1998, Braun directed DFAS to deposit A.M.’s annuity payments directly into Braun’s bank account. As a result of Braun’s repeated false statements and concealments, DFAS continued to deposit A.M.’s annuity payments each month into Braun’s own bank account, with the payments ranging from $1,500 to $2,700.
Between January 1990 and December 2012, Braun received $573,604 in annuity payments which he converted to his own use.
A.M. has resided in residential facilities for the past 30 years with only Social Security benefits as income.
According to court records, A.M.’s current guardian was alerted to the fraud when A.M. received a notice from the Internal Revenue Service advising A.M. that taxes were owed on A.M.’s income. After further inquiry, the guardian learned of the substantial annuity payments that A.M. had not received and notified police.
Braun pleaded guilty to the theft in March and argued for a probationary sentence with home detention.
In its court filings, the government argued for a prison sentence, stating that Braun’s criminal conduct was ongoing for more than 22 years, and that since his guardianship of A.M. was terminated in 1990, he had stolen his cousin’s benefits more than 250 times as he repeatedly converted A.M.’s funds to his own use each month. The government further argued that Braun had taken advantage of his cousin’s vulnerability and inability to communicate while betraying the trust of his cousin, uncle, and DFAS.
The government further stated "one of a parent’s greatest fears is whether a surviving child will be properly cared for in the event of the parent’s death. Defendant’s uncle took great measures to ensure that his son – who would require life-long care – had sufficient funds and a trusted family member to care for him. In return, defendant abandoned his cousin financially as well as emotionally, at a time when A.M. had no other family to care for him."
During the sentencing proceedings, the court heard from A.M.’s current Guardian Care Manager who stated he was saddened by the many missed possibilities for A.M. because of his limited resources, and questioned the quality of life A.M. could have had if he had received the funds that were intended for his special needs.
While imposing the sentence, Judge Brown described the repetitive nature of the offense and stated that she had "not seen anything comparable" to Braun’s fraud during her years as a judge and seeing many fraudulent schemes. Judge Brown also stated that the extraordinary breach of trust warranted a prison sentence, and that a probationary sentence would not reflect the seriousness of the offense.
The case was investigated by the Washington County Sheriff’s Office, and prosecuted by Special Assistant United States Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.
Former Oregon State Police Forensic Scientist Pleads Guilty to Stealing Controlled Substances by Fraud and DeceptionRead the Press Release
PORTLAND, Ore – U. S. Attorney Billy J. Williams, Deschutes County District Attorney John Hummel and the Oregon District Attorneys Association, announced that former Oregon State Police Forensic Scientist Nika Larsen, 36, of Bend, Oregon, pleaded guilty today in federal court, to using her position as a Forensic Scientist to steal controlled substances from evidence items submitted by law enforcement agencies to the Oregon State Police Crime Lab for analysis and testing. Facts of the crime are set forth in court documents filed today. This prosecution resolves any potential state charges stemming from this criminal conduct.
Larsen appeared in court today and, pursuant to a plea agreement, pleaded guilty to two counts of obtaining a controlled substance by misrepresentation, fraud and deception. U. S. District Judge Anna J. Brown presided over Larsen’s guilty plea and will sentence her on December 12, 2016 at 2:00 p.m. The parties are jointly recommending the Judge impose a 36-month term of incarceration followed by a term of supervised release with conditions, including community service.
The case was investigated by the Oregon State Police and the Oregon Department of Justice, Criminal Justice Division. Assistant U.S. Attorney Pamala R. Holsinger and Special Assistant U.S. Attorney Stephen H. Gunnels (Deschutes County District Attorney’s Office) are prosecuting the case. Multnomah County Chief Deputy District Attorney Donald N. Rees served as a Special Deputy District Attorney for Umatilla County during the case and also represented the Oregon District Attorneys Association.
Former Southern Oregon Gymnastics Coach Sentenced to 25 Years in Prison for Sexual Exploitation of MinorsRead the Press Release
MEDFORD, Ore – Jeffrey Scott Bettman, 57, of Medford, Oregon, was sentenced yesterday by U.S. District Judge Ann Aiken to 25 years in prison, based on his January 2016 guilty pleas to eleven counts of sexual exploitation of a minor, and one count of distribution, receipt and possession of child pornography. At the sentencing hearing, some of Bettman’s former gymnasts and their parents testified about the emotional trauma Bettman’s crimes caused them. At the conclusion of the hearing, Judge Aiken followed the prosecution recommendation and sentenced Bettman to 25 years in prison, to be followed by supervised release for the rest of his life. The court also ordered the forfeiture of the laptop computers, camera and other equipment Bettman used to commit his crimes.
Bettman, who worked as a gymnastics coach for over 36 years in Oregon and California first came to the attention of law enforcement during an online undercover investigation in which he offered to share images of child pornography that he downloaded from the internet. On November 2, 2012, a search warrant was executed at Bettman’s residence. Bettman admitted that he worked on the side as a photographer and had secretly recorded his young gymnasts with a hidden camera while they were changing for photo shoots. During a review of DVDs seized from Bettman’s residence, law enforcement discovered 469 hidden camera videos of 49 identified gymnastic students ranging in age from 8-16 years old, along with 220 still images created from the videos. Most of the victims were completely nude during the changing process, and the still images made by Bettman focused on the victims’ genitalia.
Bettman also admitted that he possessed, received and distributed images of child pornography via the internet. While there was no evidence that Bettman distributed the pornographic images of the gymnasts he covertly videotaped, Bettman admitted that he did distribute images of child pornography that he downloaded from the internet.
“People in positions of trust have a special duty to protect our children, and Bettman, a gymnastics coach, violated that duty,” said Billy J. Williams, United States Attorney for the District of Oregon. “Thanks to the dedication of an amazing team of law enforcement agents, and Assistant U. S. Attorneys working with dedicated victim-witness advocates from the U.S. Attorney’s Office, defendant, Bettman, finally faced his day of reckoning for two decades of horrific sexual abuse conduct. People who abuse children are too often able to manipulate and scare their victims in order to avoid detection. The sentence handed down by the Honorable Judge Ann Aiken should send a clear message to everyone in the community—abuse our vulnerable children and you will be held accountable.”
This case was investigated by the Southern Oregon High Tech Crimes Task Force, the Medford, Grants Pass and Klamath Police Departments, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Judith Harper and Amy Potter prosecuted the case.
Mail Theft and Bank Fraud Scheme Results in Federal Prison SentenceRead the Press Release
MEDFORD, Ore. – Christopher Alan Page, 32, of Talent, Oregon was sentenced Thursday to 36 months in federal prison by U.S. District Judge Michael J. McShane after his convictions for bank fraud, aggravated identity theft and unlawful possession of ammunition by a felon. The sentence included a mandatory consecutive term of two years’ imprisonment required by federal law because a victim’s identification was possessed or used in committing bank fraud. Page was also ordered to pay over $50,000 in restitution.
In February 2015, Page stole mail from more than 100 mailboxes in rural Josephine County, Oregon. Page was identified when a citizen confronted Page while he was in the process of stealing mail and took video of the confrontation with his cell phone. When Page was arrested, the police seized multiple credit cards and checks in the names of numerous mail theft victims. Authorities also seized large quantities of stolen mail, fraudulent debit/credit cards, stolen identity profiles, a credit card embossing machine, a credit card reader and several boxes of ammunition. Authorities also found a victim profile list, containing personal identifying information, that Page had created
The investigation determined that Page attempted to steal more than $275,000 in 54 separate fraudulent credit card transactions made using his Square, Inc. account, although most of those transactions were identified as fraudulent before Page was able to obtain the funds. Page has prior criminal convictions for burglaries, unauthorized use of a vehicle, recklessly endangering another person, possession of heroin and attempting to elude police on several occasions.
This case was investigated by the Grants Pass Department of Public Safety and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Byron Chatfield.
PORTLAND, Ore. - U.S. Attorney Billy J. Williams recognizes the Oregon Health Authority’s Performance PlanRead the Press Release
http://www.oregon.gov/oha/bhp/Pages/Oregon-Performance-Plan.aspx
“The Oregon Health Authority’s implementation of the Performance Plan expands services and opportunities for adults with serious and persistent mental illness,” said U.S. Attorney Billy J. Williams. “The Plan will assist individuals to live in the most integrated setting appropriate to their needs, achieve positive outcomes, and prevent unnecessary institutionalization. Additionally, we hope that these services will assist Oregon Sheriffs and local law enforcement in reducing the number of volatile interactions with persons with SPMI, and help in diverting them to effective community services. We thank the State for its cooperation throughout this unique collaborative process and for its commitment to improve the lives of all Oregonians.”
Federal Indictments Charge 21 Defendants with Trafficking of Prescription OpiatesRead the Press Release
Update (4/23/2018):
In March 2018, the U.S. Attorney’s Office dismissed all charges against the following defendants:
Rawshetta Tyneshia Patterson
Audrey Marie Zimmerman
James Edward Gill, Jr.
Renee Smith
Chrystal Jimelle Davis
PORTLAND, Ore. – A federal grand jury sitting in Portland, Oregon returned a 39-count indictment against Julie Ann Demille, 58, of Clackamas, Oregon, a nurse practitioner licensed in Oregon, Osasuyi Kenneth Idumwonyi, 55, of Spring, Texas, her office manager, and a total of 17 other coconspirator defendants in a case involving a conspiracy to engage in the illegal dispensation and distribution of the prescription opiates oxycodone and hydrocodone from the Fusion Wellness Clinic located at 2442 SE 101st Avenue, Suite 205, Portland, Oregon 97233. In a second related case, Idumwonyi and two other coconspirators were charged separately with conspiracies to distribute oxycodone. (See charging documents attached; list of defendants and ages at end of this release.)
The indictments state that the Fusion Wellness Clinic was a business established by Idumwonyi and Demille, from which Demille began issuing controlled substance prescriptions in January of 2015. Idumwonyi was living in Spring, Texas during the time of the offense conduct and flew weekly from Houston to Portland to assist with running the clinic operations. Demille lived at a residence in Estacada, Oregon during the time of the offense conduct. In addition to the overall conspiracy to dispense and distribute prescription opiates, the defendants are charged with multiple counts of distribution of oxycodone. Demille is also charged with two counts of making false statements to the Drug Enforcement Administration. Demille, Idumwonyi, and numerous other defendants charged in the two indictments, were arrested on Wednesday morning, July 27, 2016.
The federal charges arise after a 15-month, DEA led investigation in coordination with the Oregon State Board of Nursing. As alleged in the indictment, Demille and Idumwonyi are accused of working together to provide oxycodone and hydrocodone prescriptions for a $200 per visit cash fee, to coconspirator defendants, outside the scope of professional practice and not for a legitimate medical purpose. During the time the Fusion Wellness Clinic was in operation, Demille prescribed opiates to approximately 400 clinic customers.
“The unlawful dispensation and distribution of any controlled substances, especially addictive opiates such as oxycodone and hydrocodone, is a priority for the Department of Justice,” said U.S. Attorney Billy J. Williams. “We are committed to our partnership with federal, state, and local law enforcement, as well as state regulatory authorities, to hold responsible anyone who threatens the safety of our community through such conduct.”
“Rogue pain clinics facilitate the destruction of lives through drug abuse, addiction and even death,” said DEA Special Agent in-Charge Keith Weis. “This is a national crisis as we are losing record numbers of Americans from prescription drugs, heroin, and fentanyl overdoses. DEA works every day to attack those drug traffickers who prey on victims of addiction and facilitate drug trafficking-related violence in our communities.”
There is Crisis Line assistance available 24/7 for anyone in an addiction or mental health crisis who needs support or help finding an addiction or mental health provider in the Tri-County area as follows:
Multnomah County Crisis Line, 503-988-4888
Clackamas County 503-742-5335
Washington County 503-291-9111
Lines for Life is a 24-hour referral service at 800-273-8255, or http://www.linesforlife.org.
DEA is working to educate local communities as part of a DEA 360 Strategy. This strategy involves not only enforcement, but engaging with drug manufacturers, wholesalers, doctors and nurse practitioners to increase awareness of the opioid epidemic and encourage responsible prescribing. In addition, DEA is working with community partners to empower them with the tools to fight this epidemic. These partners include parents, caregivers, schools, after school organizations, faith-based organizations, the local business community and workplace, social services, the media, and prevention and treatment professionals, among others.
Local citizens can also assist DEA with tips by texting anonymously TIP411 (847411) and beginning your message with TIPDEA.
The unlawful dispensation and distribution of oxycodone and hydrocodone carries a maximum sentence of 20 years in prison and a fine of $250,000. An indictment is only an accusation of a crime, and all defendants are presumed innocent unless and until proven guilty.
The agencies participating in the investigation are the Drug Enforcement Administration, the Portland Police Bureau, and the United States Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Ehlers.
Defendants / Ages / Community of Residence:
Julie Ann Demille
58
Clackamas, OR
Osasuyi Kenneth Idumwonyi
55
Spring, TX
Brandi Elaine Elwood
33
Portland, OR
Jermaine Lamar Scott
39
Beaverton, OR
Brandon La’Chon White
45
Portland, OR
Preston Bethoven Thomas
37
Portland, OR
Ann Leashell Preston
45
Portland, OR
Rawshetta Tyneshia Patterson
35
Portland, OR
Leron Lamar Richards
32
Vancouver, WA
Jeron Lamont Richards
32
Portland, OR
Audrey Marie Zimmerman
30
Portland, OR
James Edward Gill, Jr.
33
Portland, OR
Renee Smith
54
Portland, OR
Arthur Allen Hayes, Jr.
36
Portland, OR
Ruben Lewis, IV
42
Portland, OR
Chrystal Jimelle Davis
32
Gresham, OR
Frederick Lee Washington
60
Portland, OR
Martin Andrew Menefee
34
Portland, OR
John Edward Cox, Jr.
55
Portland, OR
DeWayne Taylor
63
Portland, OR
Ophthalmology Biller Pleads Guilty to Healthcare Fraud and Conspiring to Defraud the Internal Revenue ServiceRead the Press Release
PORTLAND, Ore. – The former practice manager for Eye Care Services, Inc. appeared in federal court yesterday and admitted to his role in defrauding Medicare and other public and private health care plans and conspiring to defraud the Internal Revenue Service (IRS). Anthony Curtis Neal, 40, pled guilty to health care fraud and conspiracy to defraud the IRS before U.S. District Judge Robert E. Jones and admitted that he, along with his deceased father, Dr. Dean Neal, committed health care fraud and tax related crimes between 2007 and 2014. According to the plea agreement, the government will be seeking a sentence of imprisonment and restitution to Medicare, private insurers and the IRS. The actual sentence will be determined by Judge Jones at Anthony Neal’s sentencing hearing which is scheduled for January 4, 2017.
Court records indicate that Anthony Neal worked as the practice manager for Eye Care Services Inc., dba 20/20 Eye Care, an ophthalmology clinic located at 500 NW 20th Suite 100, Gresham, Oregon. Neal worked in conjunction with his father, Dr. Dean Neal, the long-time primary doctor at Eye Care Services (ECS). In addition to serving as the practice manager, Neal was primarily responsible for the insurance billing services. He, along with his father, managed the practice, established testing protocols for patients, and set all business related polices.
Anthony Neal admitted the health care fraud scheme involved three false and fraudulent components: billings for medically unnecessary tests, up-coded billings, and double billings. To increase income, ECS required that many patients receive a battery of diagnostic tests, many of which were not medical necessity. Claims for these medically unnecessary tests were submitted to Medicare and private insurers for reimbursement. Neal also engaged in a practice of up-coding certain tests by claiming ECS was entitled to a higher than warranted reimbursement rate. Finally, ECS was supposed to be paid one amount for tests performed on both eyes, but it fraudulently submitted bills to health insurance plans that resulted in ECS being paid twice, once for each eye. The government alleges the loss attributable to the health care fraud scheme is $1,702,567.89.
As to the conspiracy to defraud the IRS, Anthony Neal admitted to conspiring to conceal ECS income from the IRS and he failed to report business or personal income to the IRS for tax years 2006 – 2013. The government alleges the loss attributable to the tax conspiracy scheme is $817,378.77.
The case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General, the FBI, and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Donna Brecker Maddux and Seth Uram.
Heroin Dealers Sentenced to PrisonRead the Press Release
EUGENE, Ore. – Nicholas Jacobson and his twin brother Matthew Jacobson, 30, of Jackson County Oregon, were sentenced to prison on Wednesday, July 20, 2016, by U.S. District Judge Ann Aiken for conspiracy to distribute 100 grams or more of heroin. Nicholas Jacobson was sentenced to 97 months in prison, and Matthew Jacobson was sentenced to 78 months in prison. Following their release from prison, both defendants will be on supervised release for five years.
In July 2014, the Douglas Interagency Narcotics Team (DINT) and the DEA began investigating the Jacobson brothers who were well known to DINT as having been involved in dealing heroin in Douglas and Jackson counties for years. Assisted by a confidential informant, DINT and the DEA began making controlled buys of heroin from the Jacobson brothers, who lived in Jackson County on a large rural property.
A search warrant was executed at the Jacobsons’ property in Jackson County on October 9, 2014. Approximately four pounds of heroin and $20,000 was located, along with body armor, night vision googles and 17 firearms. The firearms—most of which were loaded—included multiple assault rifles and pistols, along with extended capacity magazines. Most of the heroin and firearms were located in the main residence where Nicholas lived, although a large amount of heroin paraphernalia, $1237 and two pistols were located in Matthew’s trailer. Law enforcement determined that the brothers worked together to deal heroin but that Nicholas had more involvement than Matthew.
Within a month after being charged in federal court and placed on pre-trial release, the Jacobsons absconded. They were arrested four months later in Medford, Oregon at a residence where officers also found approximately six ounces of heroin and $10,000.
The investigation of this case was conducted by the Douglas Interagency Narcotics Team and the Drug Enforcement Administration, with assistance by the Medford Area Drug and Gang Enforcement Task Force. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Career Offender Sentenced to 15 Years Federal PrisonRead the Press Release
PORTLAND, Ore. –U.S. District Judge Robert E. Jones sentenced Todd Alan Nelson, 51, of Salem, Oregon, on July 12, 2016, to a mandatory minimum of 10 years in prison for possession with the intent to distribute methamphetamine, followed by a consecutive five-year mandatory minimum sentence for possession of a firearm during and in relation to a drug offense, for a total of 15 years in prison. The court also ordered Nelson to serve 10 years of supervised release when released from custody.
In October 2014, DEA agents and detectives with the Salem Police Department identified Nelson as a source of supply for methamphetamine. In December2014, agents obtained search warrants to search Nelson’s car, house and a storage locker located in Keizer, Oregon. Nelson’s car contained over 1,981 grams of methamphetamine, scales, $9,700 in cash, and a 9mm handgun with an obliterated serial number. Inside Nelson’s home they found more methamphetamine, packaging materials, a stolen 9mm Sig Sauer P225, and scales. In the storage locker, agents seized several additional pounds of methamphetamine, packaging materials and a loaded 9mm Czech 75d handgun. In all, agents seized approximately 17 pounds of methamphetamine and three handguns.
Nelson meets the criteria for a career offender under the United States Sentencing Guidelines because he committed new drug trafficking and violent offenses and has two prior drug delivery convictions from 2003 and 2006. At the time of his arrest for the current offense, he was being supervised by the Marion County Circuit Court due to a prior conviction.
The investigation of the case was led by the DEA, through its Salem DEA Drug Task Force, and the Salem Police Department. The case was prosecuted by Assistant U.S. Attorney Kemp Strickland.
Bandon High School Education Assistant Indicted for Producing and Distributing Child PornographyRead the Press Release
MEDFORD, Ore. – Sean Jeffrey Haga, 31 of Bandon, Oregon, was indicted by a federal grand jury and charged with two counts of sexual exploitation of children, one count of transportation of child pornography, and a forfeiture allegation. If convicted of sexual exploitation of children, the maximum penalty is 30 years in prison and a 15-year mandatory minimum. Transportation of child pornography carries a maximum sentence of 20 years in prison and a five-year mandatory minimum sentence.
Haga is employed as an Educational Assistant at Bandon High School. He also works as Bandon High School’s track coach and Bandon Junior High School’s Basketball coach. The defendant is scheduled to be in Federal Court for an initial appearance on the charges on Monday, July 11, 2016.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and Assistant U.S. Attorney Judith Harper is handling the prosecution of this case.
Redmond Man Pleads Guilty to Stealing Federal BenefitsRead the Press Release
PORTLAND, Ore. – A former employee of the Deschutes County District Attorney’s Office and the Oregon Department of Justice appeared in federal court this week and admitted to stealing more than $55,000 from the Department of Veterans Affairs, U.S. Department of Agriculture, and U.S. Department of Health and Human Services. Bruce A. Endicott, 34, pled guilty to theft of government funds before U.S. District Court Judge Robert E. Jones on Tuesday, and admitted he committed the theft over a course of more than three years.
According to court records, Endicott began receiving service-connected disability benefits through the Department of Veterans Affairs (VA) in 2005. In June 2012, Endicott filed an additional claim with the VA for Individual Unemployability benefits, claiming he was unemployed and unable to be employed due to his service-connected disabilities that included physical and mental impairments. Endicott also submitted a statement to the VA in February 2013, that stated he had not worked within the past 12 months. In fact, Endicott was currently working at the Oregon Department of Justice under a second Social Security number that he had not disclosed to the VA. Based on Endicott’s false statements and concealments, the VA awarded him additional benefits and advised him to notify the VA immediately if he became employed.
Endicott left the Oregon Department of Justice in December of 2013 and began working for the Deschutes County District Attorney’s Office, and again failed to notify the VA he was working.
After Endicott left the District Attorney’s Office in May 2014, he applied for welfare benefits through the Oregon Department of Human Services (DHS), using the second Social Security number, and claimed to have no income. Endicott failed to disclose to DHS that he was receiving approximately $2,700 per month in VA benefits. Based on Endicott’s false statements and concealments, DHS awarded him Supplemental Nutrition Assistance Program (SNAP) (formerly known as food stamps) and Temporary Assistance to Needy Family (TANF) benefits.
In February 2015, Endicott submitted a statement to the VA regarding his Individual Unemployability (IU) claim, in which he failed to disclose his former employment with the Deschutes County District Attorney’s Office, and asserted that he had not worked in the past 12 months. As a result of his false statements and concealments, the VA continued to pay his IU benefits.
Between June 2012 and October 2015, Endicott received approximately $47,947 in IU benefits, $5,996 in SNAP benefits, and $2,770 in TANF benefits to which he was not entitled.
According to the plea agreement, the government will be seeking a 30-day term of imprisonment. The actual sentence will be determined by Judge Jones at Endicott’s sentencing hearing which is scheduled for October 5, 2016.
The case was investigated by the Criminal Investigations Division of the Veterans Affairs Office of Inspector General, the Oregon Department of Human Services, and the Social Security Administration Office of the Inspector General, Office of Investigations. The case is being prosecuted by Special Assistant United States Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.