District of Oregon
Press releases recorded for this federal judicial district.
Felon in Possession of Pistol Sentenced to 4 Years in PrisonRead the Press Release
EUGENE, Ore. – Steven Lee Simmons, 37, a resident of Harney County, Oregon, was sentenced on Monday, June 27, 2016, to four years in prison by U.S. District Judge Michael J. McShane, for being a felon in possession of a firearm, specifically a .22 caliber pistol. Simmons pled guilty on March 28, 2016.
On July 13, 2015, employees working at a bar in Burns, Oregon called 911 when Simmons arrived at the bar with a loaded pistol tucked in his waistband and repeatedly announced his threat to kill a man who had assaulted his girlfriend. Before Harney County deputies arrived, Simmons left the bar with his stepmother and with the pistol still in his possession. The stepmother took the pistol from Simmons and he was arrested shortly thereafter. Deputies later retrieved the pistol along with 500 rounds of ammunition.
At the time of his arrest, Simmons had 23 prior convictions and was on state probation. His 11 felony convictions included robbery, burglary, an attempt to elude police, two thefts, two unauthorized use of cars, escape, unlawful possession of methamphetamine, and being a felon in possession of firearms. Simmons also had 17 misdemeanor convictions, including several assaults.
Judge McShane referred to Simmons’ extensive criminal history and risk to reoffend before imposing the four-year prison term and a three-year term of supervision after he is released from prison.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco and Firearms and the Harney County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Harney County District Attorney Tim Colahan.
Grants Pass Man Sentenced for Excavation and Removal of Archaeological ResourcesRead the Press Release
MEDFORD, Ore –Ronnie Lester Bishop, 44, of Grants Pass, Oregon, was sentenced today by U.S. District Judge Ann Aiken, in Medford, Oregon to five years of probation for violating the Archeological Resource Protection Act (ARPA). The sentence was imposed based on defendant’s guilty plea entered on February 8, 2016, to a felony charging him with violating ARPA by excavating, removing and damaging an archaeological resource located on federal land. In entering the guilty plea, Bishop admitted that between April 2013 and June 2014, he violated ARPA by digging on federal land managed by BLM and causing damage to a known archaeological resource. Bishop was documented excavating and removing items from the site on at least 21 different days between April 2013 and June of 2014.
While on probation, Bishop will be banned from lands managed by BLM, U.S. Forest Service, National Park Service, Bureau of Indian Affairs and the U.S. Fish & Wildlife Service. Bishop was ordered to pay $ 9,871.49 in restitution for costs associated with restoring the archaeological site he damaged and perform 150 hours of community service. Bishop also forfeited over 700 archaeological items seized from his residence during a search warrant executed in June 2014.
“These archeological resources are of particular significance to the tribal communities, and the looting of these resources has a harmful impact on those communities,” said U.S. Attorney Williams. “We will aggressively pursue those individuals who commit these violations of law.” ARPA protects archaeological resources on public and Indian lands. It provides felony-level penalties for unauthorized excavation, removal, damage, alteration, or defacement of any archaeological resource, which is defined as material remains of past human life or activities that are at least 100 years old. The archaeological resource at which Bishop committed his crime is located on federal land along the Rogue River which has served as several permanent Native American villages for over 8,000 years.
This case was investigated by the Bureau of Land Management, the Grants Pass Police Department, and the Southern Oregon High Tech Crimes Task Force. Assistant U.S. Attorneys Tim Simmons and Judi Harper prosecuted the case.
Felon Who Possessed Stolen Guns Sentenced to Six Years in Federal PrisonRead the Press Release
EUGENE, Ore. – Anthony Dominic Whiley, 27, a former resident of Douglas County, Oregon, was sentenced by U.S. District Judge Ann Aiken to a six-year prison term for being a felon in possession of firearms. In January 2016, Whiley, pled guilty to possessing three stolen guns after having been previously convicted in 2008 for burglarizing and attempting to burglarize residences in Snohomish County, Washington.
On December 21, 2013, Douglas County deputies responded to a call of burglary in progress at a home in Glide, Oregon. Deputies arrived and arrested a man and woman, but were informed that a third suspect, identified as Whiley, had fled. Later that night, a deputy spotted Whiley walking on a rural road and attempted to arrest him. Whiley ran off the road into a river and fled into the darkness. Three loaded stolen handguns were found near nearby. Whiley was subsequently found and arrested for the burglary a few hours later. In conjunction with the burglary charges brought by the Douglas County District Attorney’s Office, Whiley disclosed where he had hidden ten other stolen firearms.
On February 19, 2014, Whiley was indicted on federal firearm charges. The United States Attorney’s Office and the Douglas County District Attorney’s Office worked together in achieving a joint resolution of Whiley’s federal and state charges.
The investigation of this case was conducted by the Bureau of Alcohol, Firearms and Tobacco and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr. with the assistance of Douglas County District Attorney Rick Wesenberg.
Sentencing in Heroin and Methamphetamine SeizureRead the Press Release
EUGENE, Ore. – Miguel Angel Reyna-Ramos, 38, was sentenced to serve 72 months in federal prison after pleading guilty to possession with intent to distribute 50 grams, or more, of a mixture and substance containing methamphetamine.
The defendant was stopped by police in May 2015 while driving on Interstate 5 near Medford, Oregon. The defendant did not have a driver’s license and also admitted the car he was driving was not registered to him. After the defendant declined consent to search, a narcotics detection dog was deployed. The dog alerted to 2 kilograms of heroin and 8 kilograms of methamphetamine in the car’s luggage compartment.
In handing down the sentence, U. S. District Judge Michael McShane considered the defendant’s background, including his lack of prior arrests, and the nature and circumstances of the crime, including the quantity of methamphetamine and heroin. Judge McShane noted that, as an illegal alien, the defendant would most likely be deported after serving his prison sentence.
This case was investigated by the Oregon State Police and the DEA. Assistant U.S. Attorney William “Bud” Fitzgerald prosecuted the case.
Assistant U.S. Attorney Byron Chatfield Honored by Department of Justice at Executive Office for United States Attorneys Director's Awards CeremonyRead the Press Release
WASHINGTON – Assistant U.S. Attorney Byron Chatfield of the U.S. Attorney’s Office in the District of Oregon was one of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.
The District of Oregon was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
Chatfield was nominated for and received the Director’s Award for Superior Performance as an Assistant United States Attorney (Criminal) for his work in the prosecution of Carson Helicopter, Inc. executives, Steven Metheny and Levi Phillips, and their conspiracy to commit mail and wire fraud and making false statements in defrauding the United States Forest Service. Following a firefighting helicopter crash that caused the deaths of nine people, and severely injured four others, Chatfield led the team who discovered a complex trail of lies made by Metheny and Phillips. His persistence revealed that the defendants submitted helicopter contract bids to the Forest Service with falsified weight and balance charts and that they altered Federal Aviation Administration (FAA) performance charts. These charts were used by the Forest Service in determining whether Carson’s helicopters met minimum contract payload specifications. Contracts in the amount of $51 million were awarded to Carson due to the falsified documents, and it received nearly $19 million dollars before the Forest Service discovered the fraud and cancelled Carson’s contracts.
“Byron Chatfield’s work on this extraordinarily difficult case was exemplary,” said U.S. Attorney Billy J. Williams. “He and the team of investigators spent countless hours unraveling the fraud and tackled challenge after challenge in a scheme extremely complex and masterfully concocted. But because of Byron’s strong belief in justice and his determination to hold the two corportate executives personally responsible for their deceit, the victims' families of this tragedy gained a measure of crucial closure. We as an organization are extremely proud of Byron as a member of the U.S. Attorney family. We salute his courage, dedication, and determination to see that justice is done on a daily basis.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
From left: U.S. Attorney Billy J. Williams and Assistant U.S. Attorney Byron Chatfield
Portland Area Strip Club Operators Found Guilty of Conspiring to Defraud the IRSRead the Press Release
PORTLAND, Or - A federal jury sitting in Portland, Oregon, after a six-day trial, found three family members who ran two strip clubs in the Portland area – Cabaret Lounge I at 503 W Burnside Street and Cabaret Lounge II at 17544 SE Stark Street – guilty of conspiracy to defraud the IRS and charges relating to filing false tax returns.
From 2007 through mid-2011, the defendants’ strip clubs collected more than $1.5 million in cash door charges and dancer stage fees. The defendants maintained a set of books at the Cabaret clubs that did not include the $1.5 million in stage fees and door fees and kept a second set of books, which tracked all of the cash receipts, including the stage and door fees, at the home of David and Marci Kiraz.
IRS Special Agents executed search warrants at the strip clubs and at the residence of David and Marci Kiraz, and seized 85 banker boxes of records and all the files on 11 computers. IRS Special Agents then spent over 600 hours reviewing these records, located the second set of books, and proved David Kiraz filed false tax returns.
David Kiraz reported the business activity of the strip clubs each year on his individual income tax returns. The defendants gave their tax return preparers the false books maintained at the strip clubs, intentionally causing the return preparers to create tax returns for David Kiraz that did not report between $330,000 and $460,000 in door fees and stage fees each year. In this way, the defendants evaded $500,000 in income taxes for tax years 2007 through 2010.
The jury convicted David G. Kiraz, 34, of Happy Valley, his father George D. Kiraz, 56, of Portland, and David’s brother Daniel Kiraz, 31, of Portland, of conspiring to defraud the IRS by filing false federal income tax returns for David Kiraz. The jury also found David Kiraz guilty of three counts of filing false tax returns, George Kiraz guilty of three counts of aiding and assisting in the preparation and filing of false tax returns, and Daniel Kiraz guilty of one count of aiding and assisting in the preparation and filing of a false tax return. The jury acquitted Marci Kiraz, wife of David Kiraz.
Sentencing is scheduled August 30, 2016, before Senior U.S. District Court Judge Robert E. Jones for the District of Oregon in Portland. Each defendant faces a statutory maximum sentence of five years in prison on the charge of conspiracy to defraud the IRS and three years in prison on the charges of filing false tax returns and aiding and assisting in the preparation and filing of false tax returns. They also face a maximum term of three years of supervised release and a maximum fine of $250,000 on each count.
"Every business is required to pay its fair share of taxes," said U.S. Attorney Billy J. Williams. “This office, in partnership with the IRS, will vigorously investigate and prosecute business owners who take advantage of the cash-intensive nature of their businesses to conceal income from the IRS and cheat on their taxes.”
This case was investigated by special agents with IRS-Criminal Investigation in Portland, Oregon and prosecuted by Trial Attorney Leslie A. Goemaat of the Justice Department’s Tax Division and Assistant U.S. Attorneys Seth D. Uram and Quinn P. Harrington for the District of Oregon.
Forest Grove Man Convicted of Foreign Sex Tourism and Child Pornography Charges Following Jury TrialRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced that a federal jury in Portland found Steven Douglas Rockett, 47, of Forest Grove, guilty of producing child pornography outside of the United States, engaging in illicit sexual conduct in a foreign country, five counts of producing or attempting to produce child pornography, and possession of child pornography. U. S. District Judge Michael H. Simon presided over the seven day trial, which concluded on May 24, 2016. It is the first foreign sex tourism trial held in Oregon. A sentencing hearing is scheduled for August 30, 2016.
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 Federal Bureau of Investigation. 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 verdict is a testament to the dedication and hard work of federal, state, and local authorities who diligently followed the evidence in this case,” Williams said. “It is a shining example of interagency cooperation in the hard fight to keep children safe here in Oregon and outside the United States. It is vindication for the courageous child victims who spoke out against their abuser.” Williams added, “This verdict serves notice to all sexual predators that we will pursue you wherever you commit your crimes and wherever you hide – whether on the internet, in the shadows of our community, or abroad.”
The investigation was hindered by Rockett’s use of computer encryption and disc-wiping software. As a result, investigators cannot be certain that they have identified all of Rockett’s child victims.
This case was investigated by the Forest Grove Police Department, the Washington County Sheriff’s Office, the Northwest Regional Computer Forensics Laboratory, the Washington County District Attorney’s Office, and the FBI, and was prosecuted in federal court by Assistant United States Attorneys Paul T. Maloney and Gary Y. 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.
Canby Man Pleads Guilty to Stealing More than $300,000 in Social Security BenefitsRead the Press Release
PORTLAND, Ore. – The grandson of a deceased Social Security beneficiary admitted to stealing more than $300,000 of benefits mistakenly paid to his grandmother following her death. Ricky Lee Carlson, 63, pled guilty to theft of government funds before U.S. District Court Judge Marco Hernandez on Monday, and admitted he committed the theft over a course of 27 years.
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 caused a bank account to be opened 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.
According to the plea agreement, Carlson is agreeing to serve 12 months and one day in jail, although the actual sentence will be determined by Judge Hernandez. Carlson’s sentencing hearing is scheduled for September 7, 2016.
The case was investigated by 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.
Former Deschutes County Sheriff's Office Captain Pleads Guilty to EmbezzlementRead the Press Release
EUGENE, Ore – Former Deschutes County Sheriff’s Office Captain Scott Raymond Beard, 46, of Bend, Oregon, pleaded guilty today to four felony offenses related to an embezzlement scheme where he stole $205,000 in taxpayer funds and laundered some of the tainted cash. The government alleges Beard laundered the cash to pay expenses on behalf of his co-defendant, Krista Jean Mudrick, 35, of Bend, Oregon. Mudrick is also a former employee of the Deschutes County Sheriff’s Office and is charged with making false statements to the FBI and IRS about Beard’s expenditures of the ill-gotten gains. Her case is pending, and she is presumed innocent.
Beard appeared in court today and, pursuant to a plea agreement, pleaded guilty to two counts of theft of funds from a federally funded program, and two counts of money laundering. A related count, passport fraud, was dismissed.
United States District Judge Michael McShane presided over Beard’s guilty plea and will sentence him on August 23, 2016. Beard faces up to twenty years in prison and will pay full restitution to Deschutes County.
This case was investigated by the FBI, IRS-Criminal Investigation, and the Deschutes County Sheriff’s Office. Assistant U.S. Attorney Christopher Cardani is prosecuting the case.
Oregon Woman Pleads Guilty in $1.2 Million Federal Income Tax Refund Fraud SchemeRead the Press Release
WASHINGTON – An Oregon woman pleaded guilty today to one count of conspiracy to defraud the government with respect to claims, one count of wire fraud and one count of aggravated identity theft for running a federal income tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Billy J. Williams of the District of Oregon and Special Agent in Charge Teri Alexander of the Internal Revenue Service – Criminal Investigation (IRS-CI).
Danyelle Calcagno, 41, admitted to filing at least 224 false federal income tax returns that fraudulently claimed a total of $1,220,246 in tax refunds, generally between $3,500 and $7,000 per return. Calcagno filed the fraudulent tax returns using Internet access at Portland-area hotels to disguise the source of filing. Calcagno filed the false tax returns using the names and social security numbers of other individuals obtained directly and through recruiters, including Latisha L. Simmons, 36, of Phoenix, Arizona.
Calcagno directed the IRS to deposit the income tax refunds into bank accounts and onto stored value debit cards that she could access and control in order to divide the proceeds of the fraud and make it more difficult for law enforcement to identify Calcagno as the filer of the false tax returns. Calcagno received at least $25,000 in fraudulently obtained income tax refunds into her own bank accounts.
Calcagno faces a statutory maximum sentence of 10 years in prison on the conspiracy charge, 20 years in prison on the wire fraud charge and a mandatory term of two years in prison on the aggravated identity theft charge, which will be in addition to any other term of imprisonment she receives. Calcagno also faces financial penalties and a term of supervised release. As part of her plea agreement, Calcagno agreed to pay restitution to the IRS in the amount of $742,754.
In October 2015, Simmons was sentenced to 39 months in prison after pleading guilty to one count of wire fraud, one count of false claims against the government and one count of aggravated identity theft. According to her plea agreement, Simmons filed more than 50 false tax returns with the IRS that fraudulently claimed more than $400,000 in refunds.
Acting Assistant Attorney General Ciraolo, U.S. Attorney Williams and Special Agent in Charge Alexander thanked special agents of IRS-CI, who investigated this case and Trial Attorney Leslie A. Goemaat of the Tax Division and Assistant U.S. Attorney Quinn P. Harrington of the District of Oregon, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Oregon Man Pleads Guilty to Threatening Vietnamese Neighbors and Interfering with their Housing RightsRead the Press Release
John Blayne Vangastel, 37, of Klamath Falls, Oregon, pleaded guilty today in the District of Oregon to one count of using threats of force to injure, intimidate and interfere with his neighbors in the enjoyment of their housing rights because they are a family of Vietnamese descent.
According to court documents, on the evening of Dec. 30, 2015, Vangastel, who had been living next door to a family of Vietnamese descent for approximately three months, entered the family’s property without permission. Vangastel admitted that he then forcibly blocked their front commercial gate so that family members could not park their vehicles on their property after returning from work. When one of the family members told Vangastel to let go of the gate and get off of the family’s property, Vangastel told the family member to “push [him] off the property.” He then raised his hand and balled up his fist as though he was going to assault one of the female family members. Vangastel further admitted that he then repeatedly tried to instigate a fight with the rest of the family, threatening to hit them and making comments like, “You are trash;” “You are not even white;” and “You smell like salmon-fish.” He also told the family something to the effect of, “I’ll beat you because you are Asian,” and “You [expletive] Vietnamese – you don’t deserve to live here.”
The incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for 20 years without incident. As a result of Vangastel’s conduct, the family became so fearful that they moved out of their home.
“Our country guarantees all people the right to live in their homes without fearing violence or intimidation because of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Threatening force against people because of where they or their relatives come from violates our civil rights laws and offends our values of human dignity, decency and respect. As this conviction shows, the Department of Justice will continue to aggressively and effectively prosecute hate crimes.”
“This case exemplifies the powerfully negative impact of bigotry and xenophobia,” said U.S. Attorney Bill J. Williams of the District of Oregon. “It is the moral obligation of every citizen to promote tolerance and diversity in our communities so that no one is subjected to intimidation or assault because of their heritage. The U.S. Attorney’s Office, with our partners at the Civil Rights Division, are dedicated to protecting the civil rights of all Oregonians. We will vigorously investigate and prosecute hate crimes to obtain justice for victims of unlawful discrimination.”
A sentencing hearing has not yet been set.
This case is being investigated by the FBI Portland Division’s Medford Resident Agency in cooperation with the Oregon State Police and the Klamath County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney William E. Fitzgerald of the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division’s Criminal Section.
Oregon Man Pleads Guilty to Threatening Vietnamese Neighbors and Interfering with Their Housing RightsRead the Press Release
WASHINGTON – John Blayne Vangastel, 37, of Klamath Falls, Oregon, pleaded guilty today in the District Court of Oregon to one count of using threats of force to injure, intimidate and interfere with his neighbors in the enjoyment of their housing rights because they are a family of Vietnamese descent.
According to court documents, on the evening of Dec. 30, 2015, Vangastel, who had been living next door to a family of Vietnamese descent for approximately three months, entered the family’s property without permission. Vangastel admitted that he then forcibly blocked their front commercial gate so that family members could not park their vehicles on their property after returning from work. When one of the family members told Vangastel to let go of the gate and get off of the family’s property, Vangastel told the family member to “push [him] off the property.” He then raised his hand and balled up his fist as though he was going to assault one of the female family members. Vangastel further admitted that he then repeatedly tried to instigate a fight with the rest of the family, threatening to hit them and making comments like, “You are trash;” “You are not even white;” and “You smell like salmon-fish.” He also told the family something to the effect of, “I’ll beat you because you are Asian,” and “You [expletive] Vietnamese – you don’t deserve to live here.”
The incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for 20 years without incident. As a result of Vangastel’s conduct, the family became so fearful that they moved out of their home.
“This case exemplifies the powerfully negative impact of bigotry and xenophobia,” said Oregon’s U.S. Attorney, Billy J. Williams. “It is the moral obligation of every citizen to promote tolerance and diversity in our communities so that no one is subjected to intimidation or assault because of their heritage. The U.S. Attorney’s Office, with our partners at the Civil Rights Division, are dedicated to protecting the civil rights of all Oregonians. We will vigorously investigate and prosecute hate crimes to obtain justice for victims of unlawful discrimination.”
“Our country guarantees all people the right to live in their homes without fearing violence or intimidation because of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Threatening force against people because of where they or their relatives come from violates our civil rights laws and offends our values of human dignity, decency and respect. As this conviction shows, the Department of Justice will continue to aggressively and effectively prosecute hate crimes.”
A sentencing hearing has not yet been set.
This case is being investigated by the FBI Portland Division’s Medford Resident Agency in cooperation with the Oregon State Police and the Klamath County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney William E. Fitzgerald of the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division’s Criminal Section.
Illegal Interstate Marijuana Operation Results in Money Laundering ConvictionRead the Press Release
EUGENE, Ore. – A local marijuana proprietor, Eric Scully, 32, of Lane County, has pleaded guilty before U.S. District Judge Michael McShane in the District of Oregon for engaging in money laundering and using a fictitious name on a U.S. Postal Service shipping account.
According to the plea agreement, Scully admitted to engaging in a monetary transaction involving more than $10,000 of criminally derived proceeds, as well as creating a fictitious U.S.P.S. Click-N-Ship account for use in shipping packages of marijuana to multiple states. The Information sets forth the details of the underlying illegal marijuana distribution operation, which involved growing large quantities of marijuana in Eugene and then illegally distributing it through a covert mail operation, shipping packages to a number of states that have not passed state laws relating to medical and/or recreational marijuana use. It further details how Scully laundered the proceeds by operating behind the veil of a coffee kiosk purporting to be a legitimate business. Throughout the course of the operation, Scully used the unlawful proceeds gained from interstate marijuana sales to amass a variety of assets that will be criminally forfeited to the government as part of the plea agreement. Scully faces a statutory maximum sentence of 10 years in prison for the money laundering count, and up to five years for the fictitious name count.
Also charged in the case are Joan Scully, 62, and Krystin Livingston, 34, of Lane County. Joan Scully pleaded guilty to structuring deposits of drug proceeds to avoid financial reporting requirements, and Livingston pleaded guilty to using the fictitious U.S.P.S. shipping account. Sentencing for all three defendants will take place on September 8, 2016, at 2:30 p.m. in Eugene.
The Federal Bureau of Investigation and the Interagency Narcotics Enforcement Team (INET), along with assistance from the U.S. Postal Inspection Service, investigated this case. The case is being prosecuted by Assistant U.S. Attorney Nancy M. Olson.
Repeat Felon Sentenced to Federal Prison for Illegally Possessing Gun and MethamphetamineRead the Press Release
EUGENE, Ore. – Justin Longworth, 36, of Lane County, Oregon, was sentenced yesterday by U.S. District Judge Ann Aiken to 94 months in prison for the crimes of felon in possession of a firearm and possession with intent to distribute methamphetamine. Following his release from prison, Longworth will be on supervised release for three years.
On July 8, 2015, Eugene Police Department officers arrested Justin Longworth on a warrant. Officers found an unloaded 9mm pistol, approximately a half-ounce of methamphetamine, a scale, and drug packaging materials in Longworth’s backpack.
Longworth’s prior convictions include felon in possession of a firearm, unlawful use of a weapon, manufacture of a controlled substance, attempt to elude and unauthorized use of a motor vehicle.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Eugene Police Department. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Eugene Con Man Sentenced in $1.4 Million Fraud SchemeRead the Press Release
PORTLAND, Ore. – Yesterday, U.S. District Court Judge Anna J. Brown sentenced Jack Holden, 76, of Eugene, Oregon, to 87 months in prison, restitution of $1,410,760, and a special assessment of $1,500 for his role in a fraudulent biodiesel scheme that spanned three continents. Holden was convicted of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, mail and wire fraud, and money laundering, after a three-week federal trial in October 2015. His codefendant, Lloyd Benton Sharp, aka Kevin Thomas, 81, pled guilty to conspiracy to commit mail and wire fraud in November 19, 2014, and was sentenced to 60 months in prison on April 17, 2015.
Between July 2007 and September 2013, Holden and coconspirator Sharp conspired to defraud 12 investors in a project to produce biodiesel fuel in the West African nation of Ghana. When the investment project failed, Holden and Sharp continued to defraud the same investors by soliciting additional funds for a non-existent project to transport biodiesel fuel from Argentina to Chile, and to build biodiesel refineries in Chile. Holden and Sharp targeted a Christian men’s group in West Linn, Oregon as part of the fraud scheme.
Holden and Sharp falsely told investors that $350,000 was needed to set up a biodiesel plant in Ghana, purchase feedstock for the plant, and bring in an engineer to oversee the operation. They falsely promised that the Ghana refinery would be up and running within two months of receiving the investment funds. Holden and Sharp falsely told investors that if they each made a $50,000 investment, they would each receive a return of $7,000 per month for an indefinite period of time as soon as the biodiesel refinery was operational. They also told victims that their investments would help fund humanitarian projects, like building roads and schools in the poor nation of Ghana. Investors were promised that they could get 100% of their money back at any time. The victims in this case sent investment funds to Holden and Sharp via mail or interstate wire transfers. Rather than using the investment funds to produce and sell biodiesel fuel in Ghana as promised, Holden and Sharp spent the money on their personal expenses.
When investors inquired of Holden and Sharp why the Ghana refinery was not operating, the two claimed they had a more promising investment opportunity in Chile, and that a successful investment in Chile would provide sufficient funds to get the Ghana refinery operational. Holden and Sharp solicited and received additional funds from investors for the Chile projects by falsely promising that for $100,000 they would double their investment and receive a return of funds within 120 days. After the Chile investments were made, Holden and Sharp stole the money, and again used it for their personal benefit.
Between the Ghana and Chile projects, 12 investors lost approximately $1.47 million.
U.S. Attorney Billy J. Williams said, “Individuals who use deception to bilk investors out of their hard-earned money in fraud schemes such as this will be prosecuted to the full extent of the law. We are grateful to the U.S. Postal Inspection Service and the Oregon Division of Financial Regulation for their vigilance in prosecuting this case and in protecting the public from fraud.”
Tony Galetti, Inspector in Charge, Seattle Division, U.S. Postal Inspection Service stated, “The U.S. Postal Inspection Service makes consumer fraud investigations one of our top priorities. The cooperation between the Oregon Division of Financial Regulation, the U.S. Attorney’s Office, and the U.S. Postal Inspection Service in the prosecution of Holden and Sharp resulted in a great victory for Oregon consumers. The fraud perpetrated by the defendants in this case is the worst kind of fraud, in that they exploited the trust of innocent victims, in some cases stealing life savings. The U.S. Postal Inspection Service continues, in collaboration with our regulatory and law enforcement partners, to tirelessly identify and root out consumer fraud involving the U.S. Mail which affects the American public.”
The case was investigated by the U.S. Postal Inspection Service and the Oregon Division of Financial Regulation (formerly DFCS). Assistant U.S. Attorneys Claire M. Fay and Donna B. Maddux prosecuted the case.
United States Recovers over $8 Million in False Claims Act Settlements for Fraud Against the VA and MedicareRead the Press Release
PORTLAND, Ore. – United States Attorney Billy J. Williams announced that Holiday Acquisition Corp. and Fortress Investment Group, LLC (collectively Holiday) agreed to pay $8.86 million to resolve alleged False Claims Act violations for submitting false claims to the United States Department of Veterans Affairs (VA) to qualify veterans or a surviving spouse of a veteran for monthly benefits from the Aid and Attendance Program, announced U.S. Attorney Billy Williams.
The settlement resolves a lawsuit brought under the qui tam provisions of the False Claims Act by Sheila and Louis Rose, who worked as managers at several of the Holiday Retirement properties. The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Under the civil settlement announced yesterday, Mr. and Mrs. Rose will receive approximately $1.5 million out of the federal share of the recovery. The lawsuit is captioned United States of America ex rel. Sheila Rose and Louis Rose v. Fortress Investment Group, LLC. et al., Case Number 3:13-cv-00314-MO.
The Holiday suit alleged that the defendants violated the False Claims Act by engaging in a number of fraud schemes related to VA program benefits. Specifically, the Relators allege that the named defendants knowingly assisted veterans or their surviving spouses in completing and submitting false claims for veteran’s benefits under the Aid and Attendance and Housebound Benefits program. The named defendants expressly denied the allegations in the suit and did not admit any liability in reaching the settlement.
The Holiday settlement was based on a claim in the suit which alleged that false statements were made about the services provided by the defendants’ facilities which caused the VA to determine a veteran was eligible for aid and attendance benefits, when in fact, the veteran was not eligible and the benefits should not have been paid.
“Pursuing corporations who engage in fraud remains a top priority of the U.S. Attorney’s Office and the Department of Justice,” said U.S. Attorney Billy Williams. “We are committed to holding them accountable for profiting at the expense of taxpayers and taking advantage of our nation’s veterans.”
This settlement illustrates the government’s emphasis in combating fraud and followed shortly after another settlement in a health care fraud case against Hung Viet Tran. In March 2016, Tran paid $825,000 to resolve Medicare and Medicaid fraud claims. The scheme involved billing for prescription drugs that he never dispensed, dispensing generic medications and billing for the more expensive brand name, and dispensing Costco brand fish oil but billing for brand name prescription Omega 3 fatty acids. In addition to the settlement amount, Tran will also be excluded from participating in all Federal health care programs for fifteen years. The Tran settlement was a joint investigation with the U.S. Attorney’s Office for the District of Oregon and the Oregon Department of Justice - Medicaid Fraud Unit. The state Department of Justice prosecuted the criminal case and the U.S. Attorney’s Office prosecuted and settled the civil matter.
“Nationally, losses caused by fraud amount to tens of billions of dollars every year,” said Williams. “These settlements are an example of the hard working lawyers in this office and our resolve to hold accountable those who commit fraud. For that reason, we will work with our state and federal partners to uncover these fraudulent activities and recover those losses through the False Claims Act.”
The Holiday matter was investigated by the U.S. Attorney’s Office for the District of Oregon and the Department of Veteran’s Affairs, Office of Inspector General.
Both of these civil fraud investigations and settlements were resolved through the efforts of the Affirmative Civil Enforcement (ACE) Unit in the United States Attorney’s Office. The ACE Unit is led by Division Chief Katie Lorenz and Assistant United States Attorney Neil J. Evans.
Two Malaysian Men Sentenced to Federal Prison for Smuggling Endangered Wildlife into U.S.Read the Press Release
PORTLAND, Ore. - Two Malaysian nationals pled guilty to conspiring to smuggle wildlife today after they used mail parcels to smuggle five orangutan skulls and nine other protected species of wildlife, including bear claws and macaque skulls, into the District of Oregon.
Eoin Ling Churn Yeng, 35, and Galvin Yeo Siang Ann, 33, both Malaysian citizens, admitted before U.S. District Judge Robert E. Jones to conspiring to smuggle wildlife into the District of Oregon from 2008 through 2015. Following their guilty pleas the Court immediately sentenced them to six months in prison and fines totaling $25,000.00. Each defendant was also ordered to perform 240 hours of community service and will be required to serve one year of supervised release after his prison term.
The investigation into Ling and Yeo began in 2013, when a routine search of an international package revealed a helmeted hornbill mandible that was being shipped to a residence in Forest Grove, Oregon. Helmeted hornbills are listed as endangered under the Endangered Species Act (ESA) and protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Agents with the U.S. Fish and Wildlife Service (Service) initiated an undercover operation named “Operation Pongo,” for the orangutan genus Pongo. The investigation revealed that Ling and Yeo were co-owners of an online business that has smuggled approximately $95,000 worth of endangered wildlife into the U.S. since 2004.
Undercover Service agents communicated with Ling and Yeo and purchased three orangutan skulls, four helmeted hornbill skulls, one CITES-protected rhino hornbill head, one ESA-protected babirusa (wild pig) skull, one CITES-protected langur skull, and one ESA-protected dugong (marine mammal) rib over the course of the operation. In December 2015, Ling and Yeo traveled to Portland to meet an associate, but agents with Service and the National Oceanic and Atmospheric Administration arrested them soon after their arrival.
“I commend all the agencies that played a role in this successful investigation and prosecution,” said U.S. Fish and Wildlife Service Deputy Chief Edward Grace. “Orangutans are one of the rarest great ape species on Earth, and the desire to possess a skull from one as tourist art or trophy in someone's collection will not be tolerated. The Service will continue to fully investigate and bring to justice those individuals who continue to perpetrate criminal acts involving orangutans and other protected wildlife species.”
Operation Pongo was conducted by the U.S. Fish and Wildlife Service, which received assistance from the Office of International Affairs, Environmental Crimes Section of the Environment and Natural Resources Division, U.S. State Department, FBI Legal Attaché in Kuala Lumpur, National Oceanic and Atmospheric Administration, Bureau of Land Management, and the Multnomah County Sheriff’s Office. The case was prosecuted by Assistant U. S. Attorney Ryan W. Bounds.
Ontario Oregon Felon Sentenced to 60 Months for Possessing a FirearmRead the Press Release
EUGENE, Ore. – On April 19, 2016, Clemente Pineda, 28, of Ontario, Oregon, was sentenced by U.S. District Judge Ann Aiken to 60 months in federal prison for unlawful possession of a firearm. Upon his release from prison, Pineda will be on supervised release for three years.
On May 5, 2015, at an apartment complex in Ontario, Oregon, Pineda pulled out a firearm and pointed it at a man who was harassing a woman. Police officers responded to the disturbance and eventually located Pineda’s .357 caliber revolver submerged in a bathroom toilet in one of the apartments. Officers determined that Pineda was a felon and that the firearm had previously been stolen. Pineda has a history of gang association and has been convicted of robbery and burglary in the second degree.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ontario Police Department, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Oregon Man Convicted for Unlawfully Occupying Federal LandRead the Press Release
EUGENE, Ore. - On April 18, 2016 a federal jury in Eugene, Oregon, convicted Kenneth Medenbach, 63, of Crescent, Oregon, for unlawful occupying federal lands managed by the U.S. Bureau of Land Management (BLM).
In May 2015, Medenbach delivered a letter to BLM claiming “adverse possession” of 320 acres of federal public lands in Josephine County, Oregon. Medenbach erected a small cabin on public lands along a BLM road and refused to remove it despite repeated warnings by BLM. BLM regulations provide that a person may not camp or occupy the same site for more than 14 days without authorization. Medenbach was later charged with unlawful occupation and illegal camping.
Medenbach argued that the public land he was occupying did not belong to the United States because the federal government did not have constitutional authority to possess public lands in Oregon. Medenbach also argued that federal courts did not have authority to interpret the U.S. Constitution. U.S. District Judge Michael McShane rejected both legal claims and the jury convicted him on both of the charges at trial. Judge McShane ordered the removal of Medenbach’s illegal cabin after the jury verdict.
Medenbach, will be sentenced on August 1, 2016. He faces up to one year in prison and a $1,000 fine.
This case was investigated by the U.S. Bureau of Land Management and prosecuted by Assistant U. S. Attorney Douglas W. Fong.
Drug Trafficker Pleads GuiltyRead the Press Release
EUGENE, Ore. – On April 7, 2016 Rafael Zapien, 23, a Mexican citizen, pleaded guilty before U.S. District Judge Ann Aiken, to possessing heroin and methamphetamine with the intent to distribute.
On August 4, 2014, a Benton County deputy sheriff stopped a vehicle being driven by Zapien on Highway 20 for speeding and suspicion of drunk driving. A drug detection dog later alerted on a plastic container inside the vehicle’s center console that contained one pound of heroin and four pounds of methamphetamine. Zapien’s fingerprints were on the container.
Zapien’s sentencing hearing is scheduled on September 7, 2016; he is faces a maximum sentence of twenty years in prison.
The investigation of this case was conducted by the DEA and Benton County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr. with the assistance of the Benton County District Attorney John Haroldson and Deputy District Attorney Carrie Wineland.
Former Eugene Property Manager Pleads Guilty to Wire FraudRead the Press Release
EUGENE, Ore. – Eugene property manager, Terry Shockley, 63, pleaded guilty before U.S. District Judge Ann Aiken today for engaging in a scheme to defraud clients and investors through his now-defunct property management company, TS Property Management (TSPM).
According to the plea agreement, Terry Shockley admitted to engaging in a scheme to defraud the clients of and investors in TS Property Management, resulting in a loss of over $3.5 million to his victims. The plea agreement sets forth the details of the scheme, which included operating the company under material false pretenses such as statements claiming that certain amounts were held in trust for clients, statements about the financial health of the company, and lulling statements to the Oregon Real Estate Agency in an attempt to convince the state regulator that nothing was wrong and the business was financially sound. In reality, Shockley had been experiencing financial issues since at least as early as December 2012 and was operating under substantial debt.
Shockley faces a statutory maximum sentence of 20 years in prison for each count of wire fraud. According to the plea agreement, Shockley has agreed to entry of a restitution order taking into account the full amount of his victims’ losses. Shockley will be sentenced on September 6, 2016 at 10:00 a.m.
The Federal Bureau of Investigation, with assistance from the Oregon Real Estate Agency, investigated this case and it is being prosecuted by Assistant U.S. Attorney Nancy M. Olson.
Former Oregon Resident Sentenced to Prison for Role in One Million Dollar Tax Fraud SchemeRead the Press Release
WASHINGTON – A former resident of Portland, Oregon was sentenced to 37 months in prison today for her role in a tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Tataneisha White, 43, admitted to conspiring with multiple individuals, including Jasmine Mason, Shawntina Ware and Brandon Leath, all of Portland, to file more than 227 false income tax returns claiming more than $1 million in fraudulent refunds. The false information on the tax returns included fictitious W-2 wages and inflated withholding amounts to generate tax refunds ranging from $1,000 to $12,000. White also admitted that she and her co-conspirators shared personal identifying information and employer information with each other to file the false returns. White directed the Internal Revenue Service (IRS) to divide the fraudulently obtained tax refunds between bank accounts and debit cards controlled by White and others, including friends and family members of White and her co-conspirators. In October 2015, White pleaded guilty to one count of conspiracy to file false claims, one count of filing a false claim and one count of theft of government funds.
In addition to the prison term, U.S. District Judge Robert E. Jones ordered White to serve three years of supervised release and pay restitution to the IRS in the amount of $626,750. Mason and Leath previously pleaded guilty to similar charges and were sentenced to 32 months and 24 months in prison, respectively. Ware also pleaded guilty and is scheduled to be sentenced on July 27.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division, who are prosecuting the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the District of Oregon for their valuable assistance.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Don't be Fooled by ScammersRead the Press Release
PORTLAND, Ore. - This April Fool’s Day, don’t get fooled by scammers pretending to be from the FBI, Internal Revenue Service (IRS), U.S. Marshals Service, or any other federal agency.
Law enforcement officials are aware of a recent wave of scam attempts. Callers identify themselves as a federal officer and typically instruct people to wire “settlement” money to avoid arrest. These phone calls are fraudulent. Federal agencies do not call or email individuals, threatening them to send money.
There are many versions of this government impersonation scam, but they are all variations of the same tactic. The type of scam has been around for years and targets people across the nation. In 2016 reports have streamed in to law enforcement about attempts to scam residents throughout the country.
If you have been targeted by government-impersonating scammers, the sooner you report it, the better are the chances that law enforcement will be successful in their investigation. Here’s how to report specific scam attempts:
FBI Impersonation
Scams impersonating the FBI have been around for years and continue today—sometimes citing current FBI Director James Comey or a local field office Special Agent in Charge. The FBI first warned the public in 2008 that “the fraudulent e-mails give the appearance of legitimacy due to the usage of pictures of the FBI Director, seal, letterhead, and/or banners.”
FBI Impersonation: Call your local FBI office Portland Division: 503-224-4181
IRS Impersonation
Earlier this month, the Treasury Inspector General for Tax Administration (TIGTA) warned that criminals continue to impersonate IRS agents, resulting in reports of more than one million fraudulent contacts since October 2013 and more than 5,500 victims who have collectively lost approximately $29 million.
IRS Impersonation: Fill out the “IRS Impersonation scam” form on TIGTA’s website: https://www.treasury.gov/tigta/contact_report_scam.shtml
Jacqueline Siegel - (503) 265-3525
TIGTA
U.S. Marshals Impersonation and Jury Service Scam
Earlier this week, the United States Courts warned that scammers are now more sophisticated, using official-sounding call centers and citing designated court hearing times. The U.S. Marshals Service has also received complaints of specific officer names or badge numbers being cited by scammers.
Marshal Impersonation: Call your local U.S. Marshals Service office: In Oregon: 503-326-2209
In addition, all types of fraud schemes and scams can always be reported to the Internet Crime Complaint Center (IC3) at www.ic3.gov. The following information is helpful to report:
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Header information from e-mail messages;
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Identifiers for the perpetrator(e.g., name, Web site, bank account, e-mail addresses);
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Details on how, why, and when you believe you were defrauded;
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Actual and attempted loss amounts;
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Details about the government impersonation; and
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Other relevant information you believe is necessary to support your complaint.
Filing a complaint through IC3’s website allows analysts from the FBI to identify leads and patterns from the hundreds of complaints that are received daily. The sheer volume of complaints allows that information to come into view among disparate pieces, which can lead to stronger cases and help zero in on the major sources of criminal activity. The IC3 then refers the complaints, along with their analyses, to the relevant law enforcement agency for follow-up.
The public can learn about other common scams by visiting http://www.fbi.gov/scams-safety/frauds-from-a-to-z, and learn about ways to reduce their risk of being scammed: http://www.fbi.gov/scams-safety/fraud/internet_fraud.
If you receive a scam phone call, you may also contact the FCC - Federal Communications Commission at the number and website below:
FCC Consumer Center: 1-888-225-5322
FCCWebsite;
https://consumercomplaints.fcc.gov/hc/en-us
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Federal Indictment Charges Defendant with Drug Trafficking & Firearms Charges Linked to Murder of Seaside Police SergeantRead the Press Release
PORTLAND, Ore. – Jamie Lee Jones, 44, a former resident of Nevada, was indicted today on drug trafficking, firearms, and witness tampering charges, announced U.S. Attorney Billy J. Williams. Jones was living in Seaside in early February 2016, during the time of the alleged offense conduct. The indictment charges Jones with possession with intent to distribute methamphetamine; felon in possession of a firearm; two counts of tampering with a witness by physical force or threat; and use and carry of a firearm during and in relation to a crime of violence. The defendant is currently in custody. Trial will be scheduled at defendant’s initial appearance and arraignment on the federal indictment.
The federal charges arise after a two-month, multi-agency investigation tracing the firearm used in the February 5, 2016, homicide of Seaside Police Sergeant Jason Goodding. As alleged in the indictment, Jones is accused of tampering with two witnesses by using physical force and the threat of physical force against them with the intent of hindering or preventing the witnesses from communicating information to law enforcement regarding the federal offense of being a felon in possession of a firearm, and the use of that firearm by another to shoot and kill a law enforcement officer. Specifically, Jones is accused of threatening to kill a witness, striking a witness, and discharging a firearm near both witnesses, all with the intent to hinder or prevent them from communicating information to law enforcement.
Douglas Dawson, Special Agent in Charge of the ATF in Oregon stated, “The ATF remains committed in our partnership with state and local law enforcement, holding responsible anyone who threatens the safety of our community.”
The use of a firearm count carries a 10-year mandatory minimum, a maximum sentence of life in prison and a fine of $250,000. An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The agencies participating in the investigation are the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Clatsop County Sheriff’s Office, the Clatsop County Major Crimes Team, the Cannon Beach Police Department, the Astoria Police Department, the Oregon State Police, the Clatsop County District Attorney’s Office, and the U.S. Attorney’s Office, District of Oregon.
The case is being prosecuted by Assistant U.S. Attorney Leah K. Bolstad.
The indictment can be found attached below.
Milwaukie Man Pleads Guilty to Stealing from his Disabled CousinRead the Press Release
PORTLAND, Ore. – The former legal guardian for his cognitively disabled cousin, pled guilty for stealing more than $570,000 in annuity payments that were intended for the cousin’s care. Michael R. Braun, 67, pled guilty to wire fraud before U.S. District Court Judge Anna Brown, and admitted committing the theft for approximately 12 years. His sentencing hearing is scheduled for August 15, 2016.
According to court records, Braun was appointed as A.M.’s legal guardian in 1984, following the death of A.M.’s parents, when A.M. was in his 20s. At that time, A.M. was the beneficiary of monthly annuity payments from the Defense Finance and Accounting Services (DFAS) with payments ranging from $1,500 - $2,709 each month. As A.M.’s legal guardian, Braun was required to use the annuity payments for A.M.’s care and to advise DFAS if he was no longer A.M.’s legal guardian.
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 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.
Between January 1990 and December 2012, Braun received $573,604 in annuity payments which he converted to his own use.
The case was investigated by the Washington County Sheriff’s Office. 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.
See the attached indictment below for additional information.
Drug Trafficker Accomplice Sentenced to Five Years in PrisonRead the Press Release
EUGENE, Ore. – Nikita Rose Garcia, 28, a former resident of Douglas County, Oregon, was sentenced yesterday to five years in prison and four years of supervised release by U.S. District Judge Ann Aiken for aiding in the distribution of more than 50 grams of methamphetamine. Garcia previously pleaded guilty in November 2015 for assisting another individual who was armed with a firearm in the distribution of 1.244 kilograms of methamphetamine in Douglas and Benton Counties.
On August 6, 2014, a Benton County Sheriff’s deputy attempted to stop a car in which Garcia was a passenger near Monroe, Oregon. The driver attempted to elude the deputy by driving at speeds over 100 mph. The car crashed through a fence and collided with a piece of farm equipment. The driver fled and avoided arrest, but Garcia was apprehended. In the car, deputies found methamphetamine and a loaded pistol.
On September 15, 2014, U.S. Marshals arrested the alleged driver, Greyson Scott Lindenfelser, on federal drug and firearm charges and Oregon kidnapping and drug charges outside a motel in Creswell, Oregon. On January 21, 2015, a federal grand jury indictment charged Lindenfelser with being a felon in possession of a stolen firearm, possessing a firearm to further a drug trafficking crime, and distribution of methamphetamine. He has pleaded not guilty and is pending trials in federal and Douglas County courts.
This case was jointly investigated by the Drug Enforcement Administration, Douglas County Interagency Narcotics Team, Benton County Sheriff’s Office, and the Corvallis Police Department, and resulted in the seizure of a total of 1.913 kilograms of methamphetamine, two pistols and 37 hydrocodone tablets.
The case was prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr., with the assistance of Benton County District Attorney John Haroldson and Douglas County District Attorney Rick Wesenberg.
Owner of Axis Benefits Administrators Pleads Guilty to Theft of $3 Million Dollars from Health Care Reimbursement Trust Account FundsRead the Press Release
Portland, Ore. – Darrin Bottinelli, 45, of Portland, Oregon, pled guilty Thursday, March 17, 2016, before U.S. District Judge Robert E. Jones to one count of theft in connection with health care. Bottinelli admitted in his plea agreement that between 2009 and 2014 he stole approximately $3 million dollars from individual health reimbursement accounts (HRAs) 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, which held its principle place of business in Portland. Axis administered employee health reimbursement or flexible spending accounts for their client employers. According to Axis contracts with employers, Axis pledged to post employer contributions to trust accounts for employee plan participants. These plan participants could then seek reimbursement for eligible health expenditures from their account funds.
Between 2009 and 2014,the defendant improperly and repeatedly accessed trust account funds for his own personal use. On March 19, 2014, Bottinelli abruptly closed the Axis office without any communication to client employers or plan participants. As a result, approximately four thousand plan participants were unable to access their account funds. Individual victim losses range from $22,500 to less than $10.
The maximum sentence for theft in connection with health care is ten years of imprisonment, a $250,000 fine, and three years of supervised release. Sentencing is currently scheduled for September 14, 2016.
This case was investigated by the U. S. Department of Labor, Employee Benefits Security Administration, the Federal Bureau of Investigation, and the U. S. Department of Labor – Office of Inspector General. The case is being handled by Assistant United States Attorney Donna Brecker Maddux.
U.S. Attorney Billy J. Williams Statement Department of Justice Inspector General's InvestigationRead the Press Release
PORTLAND, Ore. - The Office of the Inspector General for the U.S. Department of Justice, in consultation with the United State Attorney’s Office for the District of Oregon, is conducting an investigation regarding the actions of the FBI Hostage Rescue Team (HRT) in connection with the events on January 26, 2016. Because the investigation is ongoing, there will be no further comment until the investigation is fully concluded.
Please see link to U.S. Department of Justice, Office of the Inspector General: https://www.oig.justice.gov/press/2016/2016-03-08.pdf
Man Sentenced to Prison for Facebook ThreatsRead the Press Release
EUGENE, Ore. – Timothy Loren McCoy Fleming, 24, a transient with no permanent residence, was sentenced yesterday, March 7, 2016, to 18 months in federal prison for transmitting a threat in interstate commerce. Fleming pled guilty last September to communicating a threat in interstate commerce, via Facebook, to kill or injure a police officer.
According to a sentencing memorandum filed by the U. S. Attorney’s Office, in January 2015, the Albany Police Department in Albany, Oregon received a call from Fleming’s sister, reporting that Fleming had posted Facebook threats to kill a police officer at Albany city hall. Fleming’s posts included statements like “stash the salvation in my pocket, safety off, trigger finger cold and willing,” and “walk into Albany city hall, smile at the uniform as I pass him in the hall, turn round, salvation speaks, a roaring sound, uniform goes down, no armor on the head makes a corrupt cop dead.”
Fleming’s Facebook postings included a picture of a hand holding a pistol and a picture of the front door of Albany city hall. When police apprehended Fleming, he was carrying an inoperable pellet gun that matched the pistol in the Facebook posting.
Before being sentenced, Fleming apologized to the Albany Police and FBI. Judge Michael McShane cited Fleming’s mental illness, homelessness and inoperable gun as factors warranting less prison time. Judge McShane ordered Fleming to participate in a mental health treatment program and to stay at a residential reentry center upon his release from prison.
This case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney William “Bud” Fitzgerald was the prosecutor.
Lincoln County Drug Dealer Sentenced to 72 Months in PrisonRead the Press Release
EUGENE, Ore. – Zak Harris, 33, of Lincoln County, Oregon, was sentenced on Thursday, March 3, 2016, by U.S. District Judge Ann Aiken to 72 months in prison for possession with intent to distribute methamphetamine and felon in possession of a firearm. Following his release from prison, Harris will be on supervised release for four years.
On February 21, 2013, law enforcement in Lincoln County located Harris and three other people in a beach house with drugs and firearms. They also found a box buried on public property belonging to Harris, which contained methamphetamine, a firearm and a small quantity of heroin. The investigation revealed defendant had been selling methamphetamine in the local community. Harris has three prior convictions for delivery of controlled substances.
The investigation of this case was conducted by the Lincoln City Police Department, the Oregon State Police, the Toledo Police Department and the Eugene, Oregon office of the ATF. The case was prosecuted by Assistant U.S. Attorney Amy Potter.
Ontario Drug Dealer and Former Gang Member Sentenced to 60 Months in PrisonRead the Press Release
EUGENE, Ore. – Humberto Rodriguez, 33, of Malheur County, Oregon, was sentenced on Thursday, March 3, 2016, by U.S. District Judge Ann Aiken to 60 months in prison for possession with intent to distribute methamphetamine and felon in possession of a firearm. Following his release from prison, Rodriguez will be on supervised release for four years.
On April 10, 2012, an Oregon State Police Trooper stopped a vehicle in which Humberto Rodriguez was a passenger. Rodriguez was on probation and was asked to step from the vehicle, at which time he attempted to flee. He was immediately apprehended and approximately one ounce of methamphetamine was found on his person. A firearm was also recovered in the vehicle within his arm’s reach.
At the time of his arrest, Rodriguez was a member of a Surenos affiliated gang. He has prior felony convictions which include delivery of a controlled substance, transporting a controlled substance and felon in possession of a firearm.
The investigation of this case was conducted by the Oregon State Police, the Boise, Idaho office of the ATF and the Ontario Police Department. The case was prosecuted by Assistant U.S. Attorneys Jeffrey Sweet and Amy Potter.
Deschutes County Sheriff's Office Captain Indicted for Stealing $200,000Read the Press Release
EUGENE, Ore – A federal grand jury sitting in Eugene, Oregon has indicted a captain employed by the Deschutes County Sheriff’s Office. Scott Raymond Beard, 45, of Bend, Oregon, was charged with various offenses related to allegations that he used his position to embezzle and steal more than $200,000 in taxpayer funds. The indictment further alleges that Beard laundered some of the ill-gotten gains by conducting financial transactions to pay expenses on behalf of his co-defendant, Krista Jean Mudrick, 35, of Bend, Oregon. Mudrick is a former employee of the Deschutes County Sheriff’s Office and is charged with making false statements to the FBI and IRS about Beard’s expenditures of the ill-gotten gains.
Beard was arrested by FBI and IRS-Criminal Investigations today in Bend and is scheduled to make his initial appearance before U.S. Magistrate Judge Thomas Coffin in Eugene on Monday, February 22, 2016. Additionally, Mudrick has been issued a summons requiring her presence at an arraignment on Monday, February 22 in Eugene at 1:30.
Beard is charged with two counts of theft of funds from a federally funded program, which if convicted, carries a maximum penalty of ten years in prison; two counts of money laundering, which if convicted, carries a maximum penalty of ten years in prison; and, one count of passport fraud, which if convicted, carries a maximum penalty of five years in prison.
Mudrick is charged with one count of false statement to federal law enforcement agents, which if convicted, carries a maximum penalty of five years in prison.
“Most men and women in law enforcement dedicate their lives to public service and strive every day to always do the right thing as public servants,” said U.S. Attorney Billy J. Williams. “When an investigation shows that a member of law enforcement is violating the public trust by stealing the people's money, we will vigorously prosecute and seek justice for such conduct. Public trust in law enforcement is earned, and must be protected through accountability.”
“The public rightly expects that their law enforcement officers live and work by a strong set of core values – honesty, integrity and respect,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “The FBI will always aggressively pursue allegations of public corruption to ensure we maintain the public’s trust in law enforcement.”
“Throughout my career in federal law enforcement, I have gained a great deal of admiration for those that carry the badge and serve our communities and our nation, the vast majority of whom do so with fierce dedication, honor, and respect for the law. We take it personally when one of our own is alleged to have not lived up to the oath they made to uphold the law and the virtue of our profession,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation.
An indictment is only an allegation of criminal activity. Defendants Beard and Mudrick are presumed innocent unless and until proven guilty beyond a reasonable doubt. A link to the indictment here.
This case was investigated by the FBI, IRS-Criminal Investigation, and the Deschutes County Sheriff’s Office. Assistant U.S. Attorney Christopher Cardani is prosecuting the case.
Ashland Man Sentenced to 2 Years Federal Prison for Money Laundering Profits from Marijuana SalesRead the Press Release
MEDFORD, Ore. - On Wednesday, February 17, 2016, U.S. District Judge Ann Aiken sentenced Jonathan Robert Quaccia, 35, originally of Ashland, Oregon, to two years in federal prison for conspiracy to commit money laundering. The Court ordered the defendant to serve three years of supervised release upon his release from prison term and complete 500 hours of community service.
From 2012 to December 2014, defendant shipped marijuana from California to New York and Georgia for sale. Deposits of the proceeds from the marijuana sales were made in New York and Georgia into bank accounts held by Southern Oregon residents. The Oregon residents were recruited by Quaccia and co-defendant Matthew Correa. Those individuals then withdrew the marijuana proceeds from the Oregon bank accounts and gave the money to Correa, who delivered the money to Quaccia in California. This scheme was designed to promote the manufacture and distribution of marijuana and to conceal the nature, source and ownership of the marijuana proceeds. The amounts deposited and withdrawn were kept under $10,000 to avoid detection. Bank records show $2.2 million in marijuana proceeds were deposited in New York and Georgia, and $2,075,000 withdrawn in Oregon in at least 262 transactions.
Quaccia was residing in McKinleyville, CA, during the time of the offense. He has no previous criminal history.
This case was investigated jointly by the U.S. Drug Enforcement Administration and the Humboldt County Drug Task Force, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Medford Felon Sentenced to 10 Years Federal Prison for Possessing FirearmRead the Press Release
MEDFORD, Ore. - On Wednesday, February 17, 2016, U.S. District Judge Ann Aiken sentenced Carl Gene Dunlap, 40, of Medford, Oregon, to 10 years in federal prison, following his conviction for being a felon in possession of a firearm. Dunlap’s 10-year sentence is the maximum allowed under federal law. Dunlap was also ordered to serve three years of supervised release after he completes his prison term.
On January 13, 2014, near Central Point, Oregon, Dunlap was showing off a 9mm handgun to an acquaintance when it accidentally discharged, striking the person in the groin. Dunlap fled the scene. The wounded person was rushed to the hospital and survived the gunshot, but did not identify Dunlap as the shooter. Jackson County Sheriff’s deputies collected the spent shell casing and bullet that had passed through the victim. Later that evening, Dunlap was arrested on an unrelated probation violation warrant. That arrest followed a chase in which Dunlap jumped from a moving vehicle and attempted to elude the police on foot. Weeks later, Medford police recovered a 9mm handgun at a Medford motel. The Bureau of Alcohol Tobacco and Firearms Forensic Laboratory matched the spent shell casing found at the scene of the earlier shooting to the seized firearm. Additional investigation revealed Dunlap as the shooter.
Dunlap’s prior felony convictions include coercion, third degree assault, robbery in the third degree, felony attempt to elude, felon in possession of a firearm, unlawful use of a motor vehicle, and 12 separate convictions for possession of methamphetamine. Dunlap also has 17 misdemeanor convictions which include fourth degree assault, resisting arrest, menacing, recklessly endangering another, and misdemeanor attempt to elude.
This case was investigated jointly by the Jackson County Sheriff’s Office, Medford Police Department, Central Point Police Department, and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Additional Federal Charges Brought in Nationwide Identity Theft and IRS Tax Refund SchemeRead the Press Release
MEDFORD, Ore. - Federal law enforcement agents arrested Michael Oluwasegun Kazeem, 22, in Georgia based on an Oregon federal grand jury indictment unsealed today. Kazeem, a resident of both Nigeria and Atlanta, Georgia, is charged with mail fraud, aggravated identity theft and conspiring to commit mail fraud with his brother, Emmanuel Oluwatosin Kazeem, 32, of Bowie, Maryland, and Oluwamuyiwa Abolad Olawoye, 29, of Marietta, Georgia.
Michael Kazeem made an initial appearance in Georgia and will be arraigned in the District of Oregon at a date to be set by the Court.
The indictment alleges that, beginning at least as early as tax year 2012, Michael Kazeem, along with his brother and Olawoye and others, engaged in an identity theft conspiracy, in Oregon and elsewhere, involving a scheme to obtain millions of dollars in fraudulent tax refunds from the Internal Revenue Service. The allegations of the indictment detail how Michael Kazeem and his co-conspirators carried out a complex fraudulent scheme involving the use of stolen personal identifying information (PII), falsified wage and withholding information, fraudulently generated electronic filing PINs, disposable email addresses to conceal the co-conspirators’ identities, and the receipt of fraudulent tax refunds through prepaid debit cards. In addition, it describes for the first time allegations brought involving the unauthorized access into the IRS system to obtain taxpayer transcript information. Specifically, Michael Kazeem and his co-conspirators used stolen PII for unauthorized online access to obtain over 1,200 taxpayer transcripts through the IRS “Get Transcript” application process, which was discontinued by the IRS in May 2015. Both Emmanuel Kazeem and Olawoye were previously charged in the District of Oregon, along with Lateef Aina Animawun, 35, Oluwatobi Rueben Dehinbo, 30, and Oluwaseunara Temitope Osanyinbi, 35, with obtaining stolen personal identifying information of taxpayers and submitting false federal tax returns.
“Pursuing those involved in identity theft remains one of our highest priorities,” said U.S. Attorney Billy J. Williams. “Oregonians, as well as others, have been continually victimized by those who unlawfully obtain personal identifying information. It is used to commit fraud, including tax refund fraud, inflicting chaos in the lives of innocent taxpayers long afterward. The U.S. Attorney’s office will continue to pursue those involved in this type of illegal activity and they will be held fully accountable.”
In total, Michael Kazeem and his co-conspirators are alleged to have unlawfully obtained the PII of over 250,000 taxpayers and filed over 2,900 false federal tax returns seeking over $25 million in fraudulent refunds. Although the IRS rejected millions of dollars of fraudulently claimed refunds, the indictment alleges that the defendants successfully obtained $4.7 million in illegal refunds.
“The Federal Trade Commission reported recently that Oregon jumped to third in the nation for reported incidences of identity theft. We know that tax refund fraud cases are a major contributor of the increase of reported identity theft,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “The arrest of Michael Kazeem is a firm indication of the determined efforts of IRS CI and the U.S. Attorney’s Office to reverse that trend here in Oregon and to provide some relief to the victims of this incredibly invasive crime.”
The indictment, which may be viewed here, charges Michael Kazeem with one count of conspiracy to commit mail fraud, seven counts of mail fraud and seven counts of aggravated identity theft. The fraud and conspiracy charges are each punishable by up to 30 years in federal prison and a fine of up to $1 million. If convicted of the aggravated identity theft charges, there is a mandatory minimum penalty of two years in federal prison for each count of conviction. An indictment is only an allegation of a crime and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation, with support provided by the Department of Treasury, Inspector General for Tax Administration, the United States Postal Inspection Service, the U.S. State Department, Homeland Security Investigations, Medford, Oregon, U.S. Citizenship Immigration Services, Atlanta, Georgia and the Atlanta Police Department. This case is being prosecuted by District of Oregon Assistant U.S. Attorneys Byron Chatfield and Nancy Olson.
Taxpayers are reminded to be vigilant in the protection of their personal identifying information. Anyone interested in more information on preventing or reporting suspected identity theft should review the Internal Revenue Service’s website at http://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft.
Wood Village Resident Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – Guadalupe Ortiz Carrillo, 33, a resident of Wood Village, Oregon, was sentenced by U.S. District Judge Marco A. Hernandez to 125 months in prison following his federal conviction for engaging in a conspiracy to distribute and possess methamphetamine and heroin. When the defendant is released from prison, he is required to serve three years of supervised release.
On July 17, 2014, the defendant was arrested after he arranged to have a runner deliver four pounds of methamphetamine to an undercover police officer. The investigation revealed that the runner had been working for the defendant for a year and a half and was paid $500 a week to store and deliver methamphetamine and heroin at the behest of the defendant. Officers subsequently searched the residences of the defendant and the runner and found an additional six pounds of methamphetamine, over three-quarters of a pound of heroin, $10,524 in cash, scales, and drug packaging materials.
On July 7, 2015, the defendant pled guilty to engaging in a conspiracy to distribute and possess with the intent to distribute methamphetamine and heroin.
“Methamphetamine and heroin have been identified as two of the region’s most serious drug threats,” stated U.S. Attorney Billy J. Williams. “This case is another example of our continued dedication to work with our federal and local law enforcement partners to hold significant drug dealers accountable for poisoning our community.”
According to the Oregon High Intensity Drug Trafficking Area (HIDTA) Program:
Methamphetamine in the form of crystal methamphetamine, or “ice,” continues to be readily available and widely used throughout the Oregon HIDTA and represents the region’s most serious drug threat. Methamphetamine is a highly addictive central nervous system stimulant that is abused for its euphoric and stimulant effects. Chronic methamphetamine abusers exhibit violent behavior, confusion, insomnia and psychotic characteristics such as hallucinations and paranoia. Methamphetamine-related crime, such as identity theft, abused and neglected children, and other serious person and property crimes, continues to occur at a palpable rate and is prevalent throughout the HIDTA region.
Oregon and Idaho law enforcement officers surveyed in 2015 indicated methamphetamine remains a significant threat due to its level of use and availability; nexus to other crimes such as violent activity and property crime; societal impact; and connection to drug trafficking organizations, primarily MNDTOs [multi-national drug trafficking organizations]. Of law enforcement agencies surveyed, 62 percent reported methamphetamine as the greatest Oregon HIDTA Program drug threat to their area, with the majority indicating methamphetamine as the drug that contributes most to violent crime (88%) and property crime (69%). Furthermore, over 60 percent of officers ranked methamphetamine as the drug that serves as the primary funding source for major criminal activity.
Threat Assessment and Counter-Drug Strategy, Program Year 2016, Oregon HIDTA Program, at 12-13 (June 2015).
Heroin availability has increased in the Oregon HIDTA region since 2007, fueling a rise in the volume of heroin seized, number of new users and associated overdoses. Evaluation of recent indicators suggests that heroin availability and use has reached a critical level and represents a close second to methamphetamine as the region’s most serious drug threat.
Id. at 20.
This case was investigated by the Department of Homeland Security Investigations and the Portland Police Bureau’s Drugs and Vice Division. The case was prosecuted by Assistant United States Attorney Scott Kerin.
Additional Occupiers in the Armed Takeover of the Malheur National Wildlife Refuge Scheduled to Make Initial Appearances on Federal Conspiracy ChargesRead the Press Release
PORTLAND, Ore – Billy J. Williams, United States Attorney for the District of Oregon, announced that nine additional individuals have been charged by federal indictment and seven have been arrested today in relation to the occupation of the Malheur National Wildlife Refuge in Burns, Oregon. The defendants, listed below are scheduled to make appearances in federal court, throughout six different states, today and tomorrow. Two of the defendants remain at large. Each defendant is charged in the indictment with one felony count of conspiracy to impede officers of the United States from discharging their official duties through the use of force, intimidation, or threats.
The indictment charges the defendants below:
Blaine Cooper, 36, of Humboldt, Arizona
Wesley Kjar, 32, of Utah
Corey Lequieu, 44, of Fallon, Nevada
Neil Wampler, 68, of Los Osos, California
Jason Charles Blomgren, 41, of Murphy, North Carolina
Darryl William Thorn, 31, of Marysville, Washington
Eric Lee Flores, 22, of Tuallip Washington
All defendants are presumed innocent until proven guilty. See the indictment attached.
The case is being prosecuted by Assistant U.S. Attorneys Ethan Knight and Geoffrey Barrow.
Attorney General Lynch to Travel to Portland as Part of National Community Policing TourRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch will travel to Portland in the coming months as part of her national Community Policing Tour. In this phase, the Attorney General will visit six jurisdictions around the country that have excelled in each of the six pillars discussed in the President’s Task Force on 21st Century Policing final report: (1) Building Trust and Legitimacy; (2) Policy and Oversight; (3) Technology and Social Media; (4) Community Policing and Crime Reduction; (5) Officer Training and Education; and (6) Officer Safety and Wellness. The Attorney General is kicking off her tour THURSDAY, FEBRUARY 11, and FRIDAY, FEBRUARY 12, in Miami-Dade County, Florida, to highlight Pillar 1—Building Trust and Legitimacy. In addition to Miami-Dade County, Florida, and Portland, Attorney General Lynch will also visit Indianapolis, Indiana; Fayetteville, North Carolina; Phoenix, Arizona; and Los Angeles, California. The stop in Portland will highlight Pillar 4—Community Policing and Crime Reduction.
“One of my top priorities as Attorney General is strengthening relationships between law enforcement officers and the communities we serve and protect,” said Attorney General Loretta Lynch. “During the second phase of my community policing tour, I will be highlighting some of the innovative efforts underway around the country to build trust, foster cooperation, and enhance public safety. I look forward to meeting with law enforcement officers, local leaders, and residents in the weeks and months ahead to discuss how we can ensure that every American benefits from neighborhoods that are supportive, safe, and strong.”
We are honored to have the Attorney General visit as part of her national community policing tour,” said U.S. Attorney Billy J. Williams of the District of Oregon. “Portland is making progress towards community trust building and enhancing public safety. The city is not unique in experiencing some of the same challenges felt by other communities, including unaddressed mental health needs, racial and ethnic inequities, and gun violence. These issues are being faced head-on with strong partnerships between police and community partners to develop collaborative solutions for stronger, safer, and healthier neighborhoods. We are pleased to highlight the good work done thus far, and will use the visit to further the goals of building community safety and constitutional policing.”
The Attorney General’s national Community Policing Tour builds on President Obama’s commitment to engage with law enforcement and other members of the community to implement key recommendations from the President’s Task Force on 21st Century Policing final report. The first phase of the tour launched on May 19, 2015, in Cincinnati, Ohio, and also included visits to Birmingham, Alabama; Pittsburgh, Pennsylvania; East Haven, Connecticut; Seattle, Washington; and Richmond, California.
Additional details may be found at: http://justice.gov/ag/community-policing-tour
Beavercreek Business Owner Charged with Embezzling $95,550 from Employee Retirement Savings PlanRead the Press Release
PORTLAND, Ore. – Charles W. Buller, 63, of Beavercreek, Oregon, has been charged by federal indictment with embezzling $95,550 from an employee retirement savings plan he controlled. The indictment alleges that Buller was the President and sole owner of Park Place Wood Products, Inc., based in Oregon City, Oregon. Park Place made high-end cabinetry for homes and businesses and in a typical year employed between 10 and 20 people.
Park Place maintained a retirement savings benefit plan for its employees and from July 2011 to December 2012, Buller, as the sole trustee of the plan, allegedly drew eight checks totaling $95,550 on the retirement plan account and converted the money to his own use.
“Employees of small businesses contribute to retirement plans relying on the money being there when they retire, and business owners have a special responsibility to maintain those plans solely for the benefit of their employees” said U.S. Attorney Billy J. Williams. “This office, in partnership with the Department of Labor, will vigorously investigate and prosecute business owners who take money out of their employees’ pockets in this manner.”
This case was investigated by the U. S. Department of Labor, Employee Benefits Security Administration. The case is being handled by Assistant U. S. Attorney Seth D. Uram.
You can download the Indictment attached below.
Statement by Bill Williams in Regards to the Malheur National Wildlife Refuge Occupation and Related ArrestsRead the Press Release
Statement by Bill Williams
U.S. Attorney
District of Oregon
January 27, 2016
Good Morning. My name is Bill Williams, and I am the U.S. Attorney for Oregon.
I have been coming to Harney County on behalf of the US Attorney's Office for the last 15 years. I am keenly aware of the concerns that are important to this community. I have seen first-hand the passion that folks in this community have for the way of life that is so special. Clearly, this has been disrupted by this armed occupation.
The FBI, the Harney County Sheriff’s Office, OSP, Oregon Sheriff's Association, and numerous law enforcement agencies from around the state have been working very hard to resolve this situation in a peaceful manner, to stop the threats to public safety, and to end the significant disruption this has caused to the people of this county.
We continue working towards resolution, and will do so with the primary goal of restoring normalcy to this community, and highlighting the already existing cooperative efforts of local and federal partners in addressing their own issues.
There are currently eight people in custody - - seven in Oregon and one in Arizona. They will all make an initial appearance before a federal magistrate today. At some time in the future, the defendant in Arizona will come to Oregon for future court proceedings.
As the FBI announced last night, these eight people were arrested for the federal felony offense of “conspiracy to impede officers of the United States from discharging their official duties through the use of force, intimidation, or threats.”
This is an ongoing investigation, and we will not be commenting on the case, instead we will let the publicly filed documents in the case speak for themselves.
In closing, I want to thank the federal, state, local, and tribal law enforcement officers and agents who are working very well together to support this community and this effort.
I also want to again thank the people of Harney County and the Burns Paiute Tribe for their patience…and their passion for returning this community to normalcy.
We will continue working around the clock until this matter is appropriately resolved.
Malheur National Wildlife Refuge Protestors Appear Before Federal Magistrate on Conspiracy ChargesRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced that the individuals arrested overnight in the occupation of the Malheur National Wildlife Refuge in Burns, Oregon, appeared in court today for an initial appearance before Magistrate Judge Stacie F. Beckerman. Each defendant is charged in a criminal complaint with one felony count of conspiracy to impede officers of the United States from discharging their official duties through the use of force, intimidation, or threats. The defendants are Ammon Edward Bundy, 40, of Emmett, Idaho; Ryan C. Bundy, 43, of Bunkerville, Nevada; Brian Cavalier, 44, of Bunkerville, Nevada; Shawna Cox, 59, of Kanab, Utah; Ryan Waylen Payne, 32, of Anaconda, Montana; Joseph Donald O'Shaughnessy, 45, of Cottonwood, Arizona; and Peter Santilli, 50, of Cincinnati, Ohio. Each defendant entered a plea of not guilty to the charge.
Judge Beckerman ordered all seven defendants to remain in federal custody pending a detention hearing on Friday, January 29th at 1:30 p.m.
An eighth person, Jon Eric Ritzheimer, 32, of Peoria, Arizona, self-surrendered to police on January 26, 2016, and appeared before a magistrate judge today in Phoenix, Arizona to face a felony charge of conspiracy to impede officers of the United States from discharging their official duties through the use of force, intimidation, or threats. His detention hearing is scheduled for February 2, 2016 in Phoenix, Arizona.
All defendants are presumed innocent until proven guilty. The criminal complaint and affidavit is attached below.
The case is being prosecuted by Assistant U.S. Attorneys Ethan Knight and Geoffrey Barrow.
bundy_et_al_redacted_complaint.pdf (2.83 MB)
Guilty Plea in Heroin and Methamphetamine SeizureRead the Press Release
EUGENE, Ore. – Miguel Angel Reyna-Ramos, 37, pled guilty today in U. S. District Court to possession with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine. The defendant is facing a maximum sentence of 40 years in prison and a mandatory minimum sentence of five years.
A stipulation filed with the court states that on May 29, 2015, an Oregon State Police (OSP) trooper stopped a car driven by Reyna near milepost 35 on Interstate Highway 5. Reyna did not possess a driver’s license but produced an expired Oregon ID Card which the trooper could not authenticate. The car Reyna was driving was not registered to him and Reyna declined consent to search the car, so the OSP trooper deployed a narcotics detection dog. The dog alerted to four pounds of heroin and nineteen pounds of methamphetamine in the luggage compartment of the vehicle. Reyna was arrested and the car was impounded.
The defendant remains in federal custody pending a sentencing hearing on May 5, 2016, before U. S. District Judge Michael McShane.
This case was investigated by the Oregon State Police and the DEA. Assistant U.S. Attorney William “Bud” Fitzgerald is prosecuting the case.
Prominent Bend Plumber Sentenced for Filing False Tax ReturnsRead the Press Release
PORTLAND, Ore. – On Tuesday, January 5, 2015, U.S. District Court Chief Judge Ann Aiken sentenced Gary L. Ford, 55, of Bend, Oregon, today to 18 months in prison for filing false tax returns in 2007, 2008, and 2009. Judge Aiken also sentenced Ford to serve one year of supervised release and ordered him to pay $580,454 in restitution, representing the amount Ford failed to report to the IRS.
According to court documents, since 1992 Gary Ford has been the sole proprietor of Summit Plumbing in Bend, Oregon, specializing in new residential construction in Central Oregon. Ford’s company routinely undercut competitor’s bids. This imbalance in the marketplace greatly benefitted Ford’s business. In 2007, on a loan application for a new $1.2 million vacation home in the PGA West golf club and resort in La Quinta, CA, Ford claimed he earned $26,500 per month. Ford’s spending habits supported this claim. In 2009 alone, he spent more than $900,000 on personal expenses, $355,000 on real estate, and $280,000 on other investments. These were Ford’s personal expenses in excess of his business expenses.
Meanwhile, Ford filed tax returns claiming he lived at or below the poverty line, even going so far as to claim refunds for the years in question. In reality, between 2006 and 2009, Ford failed to report almost $1.7 million in income and to pay more than $580,000 in federal income taxes. In fact, in most years, Ford paid more in interest on his three properties than he claimed as income. Ford evaded his full tax obligation by simply failing to include as income monies received from customers who did not issue him a Form 1099. In other words, the only income Ford reported was the payments that his customers independently reported to the IRS.
“Mr. Ford’s case is an example of what happens when someone selfishly puts their own unfettered wants above the common good and the law,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “Mr. Ford accumulated properties and spent lavishly while utterly shirking his civic duty to pay an honest tax. Not only that, but he left many competitors in the lurch as he undercut their bids due to the simple fact that knowing he would not be paying his taxes allowed him to recklessly offer lower bids. That’s not fair, that’s not just, and IRS CI will always fight to ensure everyone on the playing field is playing by the same rules.”
This case was investigated by Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Scott E. Bradford.
Justice Department Reaches Landmark Settlement Agreement with State of Oregon Regarding Americans with Disabilities ActRead the Press Release
WASHINGTON – In a Dec. 29, 2015, order, the U.S. District Court for the District of Oregon approved a settlement agreement between the Justice Department, a class of private plaintiffs and the state of Oregon, which resolved the department’s and the class plaintiffs’ claims against the state under the Americans with Disabilities Act (ADA). The agreement will impact approximately 7,000 Oregonians with intellectual and developmental disabilities (I/DD) who can and want to work in typical employment settings in the community. The private plaintiffs were represented by the Center for Public Representation, Disability Rights Oregon and the law firms of Miller Nash Graham & Dunn LLP and Perkins Coie LLP. The agreement resolves a class action lawsuit by private plaintiffs in which the department intervened. The parties’ settlement agreement was approved by U.S. Magistrate Judge Janice Stewart of the District of Oregon, who presided over the lawsuit.
In the department’s lawsuit, it alleged that Oregon’s employment services system unnecessarily placed people with I/DD in, or at risk of entering, sheltered workshops instead of in integrated jobs in the community, in violation of the ADA. As interpreted by the Supreme Court’s landmark decision in Olmstead v. L.C., the ADA affords individuals with disabilities the right to receive services in the most integrated setting appropriate to their needs. Sheltered workshops are segregated facilities that exclusively or primarily employ people with disabilities. They are usually large, institutional facilities in which people with disabilities have little or no contact with non-disabled persons besides paid staff. People with I/DD in sheltered workshops typically earn wages that are well below minimum wage, sometimes pennies per hour. By contrast, supported employment services assist people with I/DD to prepare for, gain and succeed in integrated employment at competitive wages. Approximately 450,000 people with I/DD across the country spend their days in segregated sheltered workshops and facility-based day programs. Approximately 1,900 Oregonians with disabilities currently receive services in sheltered workshops. Since the initiation of the lawsuit, approximately 3,900 Oregonians with disabilities have received services in sheltered workshops, and historically hundreds of students have transitioned each year from Oregon public schools directly into sheltered workshops.
The agreement calls for 1,115 people in sheltered workshops to receive jobs in the community at competitive wages over the next seven years. In addition, 7,000 people will receive employment services that will afford them the opportunity to work in the community, including at least 4,900 youth ages 14 to 24 years old, who are exiting school. At least half of the youth served will receive an Individual Plan of Employment, which sets forth the services and supports necessary to achieve competitive employment, from Oregon’s vocational rehabilitation system.
The settlement resolves the first class action lawsuit in the nation to challenge a state funded and administered employment service system, including sheltered workshops, as a violation of the ADA’s integration mandate. The class action, Lane v. Kitzhaber (since renamed Lane v. Brown), was filed in January 2012 by eight named individuals and United Cerebral Palsy of Oregon and Southwest Washington, on behalf of themselves and other individuals with I/DD who are in Oregon sheltered workshops or have been referred to sheltered workshops. In March 2013, the Department of Justice moved to intervene in the lawsuit, seeking to vindicate the rights of thousands of individuals with I/DD across Oregon. The department’s claims included that Oregon violated the ADA by unnecessarily segregating adults with I/DD in sheltered workshops and by placing Oregon youth with I/DD at unnecessary risk of segregation in sheltered workshops.
“Work is fundamental to contributing to and being fully included in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “People with disabilities deserve opportunities to work alongside their friends, peers and neighbors without disabilities and to earn fair wages, access equal opportunities for advancement and to achieve social and economic independence. We are pleased that the state of Oregon has fully embraced integrated employment services for people with disabilities, and we look forward to seeing the ways in which thousands of Oregonians with intellectual and developmental disabilities will contribute, grow and advance in typical workplaces throughout the state.”
“Individuals with intellectual and developmental disabilities are valuable members of our community,” said U.S. Attorney Billy J. Williams of the District of Oregon. “They contribute to our workforce, our diversity, and they enrich our environment. We have an obligation to remove barriers to their full participation in society. The final approval of the settlement agreement by the court is a great step toward ensuring that sheltered workshops in Oregon will no longer be used to unnecessarily segregate the intellectually and developmentally disabled.”
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to his or her needs. Please visit www.ada.gov/olmstead to learn more about the division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the other laws enforced by the Civil Rights Division.
Justice Department Reaches Landmark Settlement Agreement with State of Oregon Regarding Americans with Disabilities ActRead the Press Release
In a Dec. 29, 2015, order, the U.S. District Court for the District of Oregon approved a settlement agreement between the Justice Department, a class of private plaintiffs and the state of Oregon, which resolved the department’s and the class plaintiffs’ claims against the state under the Americans with Disabilities Act (ADA). The agreement will impact approximately 7,000 Oregonians with intellectual and developmental disabilities (I/DD) who can and want to work in typical employment settings in the community. The private plaintiffs were represented by the Center for Public Representation, Disability Rights Oregon and the law firms of Miller Nash Graham & Dunn LLP and Perkins Coie LLP. The agreement resolves a class action lawsuit by private plaintiffs in which the department intervened. The parties’ settlement agreement was approved by U.S. Magistrate Judge Janice Stewart of the District of Oregon, who presided over the lawsuit.
In the department’s lawsuit, it alleged that Oregon’s employment services system unnecessarily placed people with I/DD in, or at risk of entering, sheltered workshops instead of in integrated jobs in the community, in violation of the ADA. As interpreted by the Supreme Court’s landmark decision in Olmstead v. L.C., the ADA affords individuals with disabilities the right to receive services in the most integrated setting appropriate to their needs. Sheltered workshops are segregated facilities that exclusively or primarily employ people with disabilities. They are usually large, institutional facilities in which people with disabilities have little or no contact with non-disabled persons besides paid staff. People with I/DD in sheltered workshops typically earn wages that are well below minimum wage, sometimes pennies per hour. By contrast, supported employment services assist people with I/DD to prepare for, gain and succeed in integrated employment at competitive wages. Approximately 450,000 people with I/DD across the country spend their days in segregated sheltered workshops and facility-based day programs. Approximately 1,900 Oregonians with disabilities currently receive services in sheltered workshops. Since the initiation of the lawsuit, approximately 3,900 Oregonians with disabilities have received services in sheltered workshops, and historically hundreds of students have transitioned each year from Oregon public schools directly into sheltered workshops.
The agreement calls for 1,115 people in sheltered workshops to receive jobs in the community at competitive wages over the next seven years. In addition, 7,000 people will receive employment services that will afford them the opportunity to work in the community, including at least 4,900 youth ages 14 to 24 years old, who are exiting school. At least half of the youth served will receive an Individual Plan of Employment, which sets forth the services and supports necessary to achieve competitive employment, from Oregon’s vocational rehabilitation system.
The settlement resolves the first class action lawsuit in the nation to challenge a state funded and administered employment service system, including sheltered workshops, as a violation of the ADA’s integration mandate. The class action, Lane v. Kitzhaber (since renamed Lane v. Brown), was filed in January 2012 by eight named individuals and United Cerebral Palsy of Oregon and Southwest Washington, on behalf of themselves and other individuals with I/DD who are in Oregon sheltered workshops or have been referred to sheltered workshops. In March 2013, the Department of Justice moved to intervene in the lawsuit, seeking to vindicate the rights of thousands of individuals with I/DD across Oregon. The department’s claims included that Oregon violated the ADA by unnecessarily segregating adults with I/DD in sheltered workshops and by placing Oregon youth with I/DD at unnecessary risk of segregation in sheltered workshops.
“Work is fundamental to contributing to and being fully included in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “People with disabilities deserve opportunities to work alongside their friends, peers and neighbors without disabilities and to earn fair wages, access equal opportunities for advancement and to achieve social and economic independence. We are pleased that the state of Oregon has fully embraced integrated employment services for people with disabilities, and we look forward to seeing the ways in which thousands of Oregonians with intellectual and developmental disabilities will contribute, grow and advance in typical workplaces throughout the state.”
“Individuals with intellectual and developmental disabilities are valuable members of our community,” said U.S. Attorney Billy J. Williams of the District of Oregon. “They contribute to our workforce, our diversity, and they enrich our environment. We have an obligation to remove barriers to their full participation in society. The final approval of the settlement agreement by the court is a great step toward ensuring that sheltered workshops in Oregon will no longer be used to unnecessarily segregate the intellectually and developmentally disabled.”
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to his or her needs. Please visit www.ada.gov/olmstead to learn more about the division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the other laws enforced by the Civil Rights Division.
Oregon Settlement Agreement
Billy J. Williams Appointed to Serve as U.S. AttorneyRead the Press Release
PORTLAND, Ore. – Attorney General Loretta Lynch appointed Billy J. Williams as United States Attorney for the District of Oregon, effective on December 12, 2015. U.S. Attorney Williams will serve in an interim capacity pursuant to the Attorney General's authority to appoint under 28 U.S.C. Section 546.
Billy Williams has served as the Acting United States Attorney, for the District of Oregon since May of 2015. He has been with the U.S. Attorney’s Office since October of 2000. Prior to his role as Acting United States Attorney, he served as the First Assistant, Chief of the Criminal Division, Chief of the Violent Crimes Unit, and as the Indian Country AUSA/Tribal Liaison.
Prior to his federal service, Williams served as a Sr. Deputy District Attorney in Multnomah County, where he supervised the Career Criminal Unit, and over his career prosecuted major crimes of violence, including aggravated murder, adult and child sex offenses, domestic violence, narcotics trafficking, vehicular homicide crimes, as well as investigations of officer-involved shootings.
Williams received his law degree in 1989 at the Willamette University College of Law.
Departments of Justice, Homeland Security and Labor Announce Selection of Phase II Anti-Trafficking Coordination TeamsRead the Press Release
WASHINGTON – The U.S. Departments of Justice, Homeland Security and Labor announced today the selection of six new Anti-Trafficking Coordination Teams. These teams will lead Phase II of the ACTeam Initiative, an interagency effort to streamline federal criminal investigations and prosecutions of human trafficking offenses.
The six new ACTeams will be based in Cleveland; Minneapolis; Newark, New Jersey; Portland, Maine; Portland, Oregon; and Sacramento, California. Each team will serve under the leadership of the local U.S. Attorney and the highest-ranking federal investigative agents in the regional field offices of the FBI, U.S. Immigration and Customs Enforcement (ICE) and Department of Labor.
“Human trafficking robs victims of their liberty, exploits them for labor and for sex, and infringes not only on their rights, but on their essential humanity,” said Attorney General Loretta Lynch. “Through the ACTeam Initiative, we are harnessing resources across the federal government to ensure that our multi-agency fight against human trafficking is as comprehensive and effective as possible. In the days and months ahead, the Department of Justice will continue to work alongside our federal partners to prosecute wrongdoing, support survivors, and bring this devastating crime to an end.”
"The Anti-Trafficking Coordination Team (ACTeam) Initiative is an important tool in our collective ability to combat sex trafficking, forced labor and domestic servitude here in the United States,” said Secretary Jeh C. Johnson of Homeland Security. “It highlights our commitment to increase capacity to rescue victims and bring perpetrators of these terrible crimes to justice. Our collective efforts are amplified when we work together in furtherance of shared missions like this. And, through DHS’s Blue Campaign, we will remain focused on ending human trafficking in the United States.”
“A trafficking victim shouldn’t have to spend time trying to determine whether they have a Department of Labor issue or a Department of Justice issue,” said Secretary Thomas Perez of the Department of Labor. “Their basic rights are being violated, and we can accomplish so much more to redress those crimes when we work together. The Anti-Trafficking Coordination Team Initiative, by bringing our respective departments’ collective resources and expertise to bear, is helping us build a whole even greater than the sum of our individual parts.”
“Human trafficking is a modern day form of slavery that destroys lives and exploits the most vulnerable in our society,” said Director James B. Comey of the FBI. “These Anti-Trafficking Coordination Teams are the most effective way to investigate human trafficking by allowing us to work in a collaborative, victim-oriented manner.”
The new teams were selected by unanimous consensus of the Federal Enforcement Working Group after a rigorous, competitive and nationwide selection process. The group includes subject matter experts from the Department of Justice (including the Civil Rights Division’s Human Trafficking Prosecution Unit, the Executive Office of U.S. Attorneys and the FBI’s Civil Rights Unit); the Department of Homeland Security (including ICE and Homeland Security Investigations’ Human Smuggling and Trafficking Unit); and the Department of Labor (including the Office of the Inspector General and the Wage and Hour Division).
The new ACTeams will collaborate with the human-trafficking subject matter experts in the Federal Enforcement Working Group to implement a strategic action plan in their respective districts. Over the next two years, teams are expected to develop high-impact federal investigations and prosecutions, dismantle human-trafficking networks, vindicate the rights of human-trafficking victims and bring traffickers to justice.
“We are honored that the District of Oregon has been selected as an ACTeam,” said United States Attorney Billy J. Williams. “We have a fantastic team of agents and prosecutors who are dedicated to identifying and fighting human trafficking in all forms. We have been working closely with our partners at the FBI, HSI/ICE, the Department of Labor, and the Civil Rights Division at DOJ, with positive results, and are excited to enhance our ability to rescue victims and prosecute traffickers through this intensive and collaborative national initiative.”
“We believe that human trafficking is a form of modern day slavery that – rightly – demands our attention,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “That we were chosen to receive one of the Anti-Trafficking Coordination teams is testament to the fact that we have both a significant need and established partnerships already in place to take on this challenge. The victims deserve nothing less.”
“Trafficking victims need all of us in law enforcement to hear their cries for help,” said Brad Bench, Special Agent in Charge for Homeland Security Investigations (HSI) in Seattle. “No one should be forced to live in a world of fear, isolation and servitude --particularly in our country, which prides itself on its freedoms. Our collective team efforts will enable us to rescue more victims and ensure the perpetrators of these crimes are brought to justice.”
Launched in 2011 by the Attorney General and Secretaries of Labor and Homeland Security, the ACTeam Initiative established six Phase I ACTeams in Atlanta; El Paso, Texas; Kansas City, Missouri; Los Angeles; Memphis, Tennessee; and Miami. In these ACTeam districts, prosecutions of forced labor, international sex trafficking and adult sex trafficking rose even more markedly than they did nationally. For instance, the number of defendants convicted rose 86 percent in ACTeam districts, compared to 14 percent in non-ACTeam districts, and 26 percent nationwide. Based on this demonstrated record of success, Attorney General Lynch, Labor Secretary Perez and Homeland Security Secretary Johnson launched Phase II of the ACTeam Initiative earlier this year. The fight against human trafficking remains a top priority for the three officials and they have committed to collaborating with other governmental and non-governmental partners to continue to enhance their anti-trafficking efforts.
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Oregon Couple Sentenced to Prison for Tax CrimesRead the Press Release
EUGENE, Ore. – Billy J. Williams, Acting U.S. Attorney for the District of Oregon, announced that a Coos County couple was sentenced yesterday to federal prison for tax crimes they were convicted of in October 2014.
Ronald Joling, 72, and Dorothea Joling, 73, both of Coquille, Oregon, were found guilty of conspiracy to defraud the United States by obstructing the Internal Revenue Service (IRS) in its attempt to collect a substantial tax debt owed by the Jolings. Ronald Joling was additionally convicted of tax evasion and filing false income tax returns.
Evidence at trial detailed the Jolings’ illegal efforts over close to twenty years to keep the IRS and the Oregon Department of Revenue from collecting almost $2 million they owed in back taxes, penalties and interest. The Jolings’ efforts to thwart the IRS included their use of sham trusts, a corporation sole, bank accounts in the names of nominees, a warehouse bank, bogus money orders, bills of exchange, bonds, and filing false tax returns with the IRS. When those efforts failed, the Jolings resorted to intimidation tactics and threats. Witnesses testified at trial that in response to attempts to collect taxes owed, the Jolings threatened them with arrest, criminal prosecution and lawsuits. In one instance, the Jolings took out a newspaper advertisement in the Coquille Valley Sentinel accusing a local government employee of malfeasance just for performing her job. The Jolings also filed retaliatory bogus liens against federal judges, the federal court clerk’s office, and federal prosecutors who were involved in the criminal case. A federal grand jury has indicted the Jolings for filing these liens and that separate criminal case is pending.
Rather than pay their taxes, the Jolings spent about $750,000 on a motel and restaurant in Coquille and tracts of land in Linn County. They attempted to conceal their interest in these properties from the IRS by placing them in sham trusts.
After the Jolings were convicted at trial in October 2014, Chief U. S. Judge Ann Aiken ordered them to return to court in April 2015 for sentencing. The Jolings refused and instead fled Oregon. Arrest warrants were issued, and in October 2015 the United States Marshals Service located and apprehended the Jolings in Clarkdale, Arizona.
At yesterday’s hearing Judge Aiken ordered Ronald Joling to serve 97 months and Dorothea Joling to serve 48 months in prison. Each defendant must also pay more than $1.2 million to the IRS in outstanding federal taxes.
Acting U.S. Attorney Williams noted, “This is an egregious case. Not only did the Jolings refuse to pay their fair share of taxes like the rest of us, they retaliated against federal employees who were just doing their jobs. After a jury convicted them at trial, they cowardly refused to show up for sentencing and fled the state. They were fugitives for six months, requiring additional resources to locate and arrest them in Arizona. They are now in custody and will serve their appropriately lengthy sentences.”
This case was investigated by the IRS, Criminal Investigation, with assistance from the U.S. Marshal’s Service. It was prosecuted by Assistant U.S. Attorneys Scott E. Bradford and Chris Cardani.
To the Citizens of Harney County, OregonRead the Press Release
As the Acting United States Attorney for the District of Oregon, I write to the citizens of Harney County to address ongoing attempts by outside individuals and organizations that are making statements and using social media to express views which are clearly contrary to what occurred publicly in an open courtroom. I understand that there are some individuals and organizations who object to the Hammonds returning to prison to serve the remainder of their sentences mandated by statute. I respect their right to peacefully disagree with the prison terms imposed. However, any criminal behavior contemplated by those who may object to the court's mandate that harms someone will not be tolerated and will result in serious consequences. The following is a summary of the facts in United States v. Dwight and Steven Hammond, including the actions and positions taken by this office throughout the course of the case.
Five years ago, a federal grand jury charged Dwight and Steven Hammond with committing arson on public lands, and endangering firefighters. The charges came after the Hammonds rejected an offer to settle the case by pleading guilty to lesser charges and sentences.
Three years ago, after a two-week trial in Pendleton, Oregon, a jury found 70-year old Dwight and his son, 43-year old Steven Hammond, guilty of committing arson on public lands in 2001. Steven Hammond was also found guilty of committing a second arson in 2006. They were found not guilty of other arson charges, and while the jury was deliberating on the remaining charges, the Hammonds negotiated for the dismissal of those charges and a promise from the U.S. Attorney to recommend the minimum sentence mandated by law. The Hammonds assured the trial judge that they knew the law required they serve no less than five years in prison. The U.S. Attorney also agreed they should remain free until sentencing.
The Hammonds had long ranched private and public lands in Eastern Oregon. Although they leased public lands for grazing, they were not permitted to burn the lands without prior authorization from the BLM. In 1999, a BLM employee reminded Steven Hammond of this after he started a fire that escaped onto public land.
At trial, jurors heard from a hunting guide, a hunter and the hunter’s father, who saw the Hammonds illegally, slaughter a herd of deer on public land. At least seven deer were shot with others limping or running from the scene. Less than two hours later, the hunting guide and the hunter and his father, were forced to abandon their campsite because a fire was burning in the area where the deer had been shot. The hunting guide’s testimony and photographs established fires were burning hours before Steven Hammond called the BLM and said he was going to do a burn of invasive species in the area.
A teenage relative, who was with the Hammonds in 2001 when those fires were set, told the jury that he was handed a box of “Strike Anywhere” matches, and Steven Hammond told him to drop lit matches on the ground so as to “light up the whole country on fire.” He did as instructed and the resulting eight to ten foot flames spread quickly. Fearing for his life he was forced to take shelter in a creek. The jury heard evidence that once back at the ranch, Dwight and Steven told him to “keep his mouth shut,” and that “nobody needed to know about the fire.” The fires destroyed evidence of the deer slaughter and took 139 acres of public land out of public use for two years.
The evidence at trial convinced the jury beyond a reasonable doubt that the Hammonds were guilty of the federal crime of arson; that is, maliciously damaging United States property by fire. The jury was neither asked if the Hammonds were terrorists, nor were defendants ever charged with or accused of terrorism. Suggesting otherwise is simply flat-out wrong.
The jury also found Steven Hammond guilty of committing a second arson in 2006. That summer, BLM firefighters were battling several significant fires caused by lightning strikes. The Harney County Fire Marshal imposed a burn ban and a “red flag” warning was in effect. Despite the burn ban, and knowing that firefighters were in the area, Steven Hammond set fires at night without notifying anyone. He did so to save his winter feed. After seeing the fires, the firefighters moved to a safer location. When confronted by a firefighter the next day, Steven Hammond admitted setting the fires, and made no apology for doing so.
The crimes that the jury found the Hammonds committed carried five-year congressionally-mandated minimum sentences. In October 2012, U.S. District Court Judge Michael R. Hogan imposed sentences below what the law required. The U.S. Attorney's Office appealed the sentences imposed by Judge Hogan because they were not the sentences mandated by Congress for the crimes committed. The Ninth Circuit Court of Appeals agreed, and reversed the Hammonds’ sentences. The cases were sent back to the District Court with the directive that the statute’s mandate be followed. The Supreme Court upheld the Ninth Circuit’s decision, and in October 2015, Chief Judge Ann Aiken imposed the five-year prison terms. The U.S. Attorney agreed to allow the Hammonds to self-surrender after the holidays.
Much has been said and written by persons who were not in the Pendleton courtroom during the trial or in Eugene during the sentencing hearings. Much of it is inaccurate. For example, the federal prosecutor has never called the Hammonds terrorists, an allegation made by some of the Hammonds’ supporters. As Acting U.S. Attorney, I do not consider them to be terrorists. At the sentencing hearings, the federal prosecutor described the Hammonds’ contributions to their community and urged the court not to impose the higher sentences recommended by the U.S. Probation office. The prosecutor also assured the court that the sentences mandated by Congress were neither cruel nor unusual given the seriousness of the crimes and the safety threat posed to the hunters (in 2001) and the firefighters (in 2006). The Hammonds received a fair trial, they were found guilty in Pendleton, Oregon, by a jury of their peers, and they ultimately received lawful sentences mandated by Congress.
As Americans, we have the privilege of being served by the finest judicial system in the world. Despite suggestions to the contrary, what took place during this case was a process that followed the time-honored fundamental principles of the rule of law— from the investigation, negotiations, a public trial with the presentation of lawfully admitted evidence, the jury's findings, judicial findings, appellate rulings, to the final imposition of sentence. We stand by the ultimate resolution of this case.
Oregon U.S. Attorney's Office Collects $9,015,581.57 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
PORTLAND, Ore. - Acting U.S. Attorney Billy J. Williams announced today that the District of Oregon collected $8,495,950.20 in criminal and civil actions in Fiscal Year 2015. This includes work that Oregon conducted with other U.S. Attorney’s Offices and components of the Department of Justice to collect $2,401,688.23 in cases pursued jointly with these offices.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“The work done by the Asset Recovery and Money Laundering Division of the Oregon U.S. Attorney’s Office is critically important to the mission of the Department of Justice,” said Acting U.S. Attorney Billy Williams. “It handles thousands of cases annually, and through persistent investigations uncovers leads to hidden assets, successfully garnishes wages, and works out payment plans with cooperative civil and criminal debtors. This dedication results in the collection of millions of dollars for crime victims and protects scarce taxpayer resources each year.”
One of the larger recoveries in the District of Oregon last year was in United States v. Rachel Lee, a “sweetheart swindle” case in which a family of swindlers executed a complex, decade-long $15.5 million fraud and money laundering scheme against a vulnerable timber heir. After gaining his confidence (and access to his financial accounts), the defendants callously spent the victim’s assets on a luxury lifestyle. Over $1.9 million was recovered for the victim during the last fiscal year, and rigorous recovery efforts in the case continue.
Another large recovery came in United States v. Schrader, a case in which the defendant, a senior vice president at his company, submitted over $1.4 million in fraudulent expense reports to his accounting department. To date, over $701,000 has been recovered for the victim, largely from the sale of rental properties the defendant owned. This recovery came despite the defendant’s attempts to thwart the government’s ability to sell and distribute certain property proceeds to his victim. The day after defendant’s sentencing, his attorneys contacted prosecutors to inform them that one of the properties was owned equally by the defendant and an associate, and to request that only fifty percent of the sale proceeds be applied to the defendant’s restitution obligation. After confirming that the defendant’s associate was not listed in county property records, prosecutors refused the request, and later learned from the defendant’s associate that the defendant had approached him just days earlier to ask him to sign and backdate an “ownership contract.” The U.S. Attorney’s Office was ultimately able to return the full proceeds from the sale of the property to the defendant’s victim.
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 United States 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 victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals 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.
Additionally, the U.S. Attorney’s office in the District of Oregon, working with partner agencies and divisions, collected $3,012,629.00 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. During FY 2015, $2,492,997.63 was returned to victims through the Asset Forfeiture Fund.